No.

Conditions with initial filings due during construction / prior to

commencing operations

CPCN

OC2

OC49

Temp

Pump1

Pump2

Tanks

Deact

National Energy Board

478

121

(cont)

ii)

At least 3 months prior to applying for leave to open Line 2

, a supplement to

the report described in b)i) that provides verification of any third party liability

insurance coverage, a copy of the insurance certificate, and a summary of the

insurance policy's key features. This summary must include: limits on insurance

coverage, deductible amounts, the risks and perils and properties covered by the

insurance policy, the exclusions from coverage, Trans Mountain's obligations,

effective dates, and names of insurers and reinsurers.

iii)

With its first leave to open application for Line 2

, a report describing the steps

it took to eliminate any deficiencies in its Financial Assurances Plan that were

identified in the independent third party report referenced in b)i) and the NEB's

subsequent review.

iv)

On or before 31 January of each year after commencing operations

, a letter

signed by an officer of the company verifying that all components of the

Financial Assurances Plan remain as the NEB approved and sufficient to meet

the financial assurance coverage levels described in ii).

v)

At least 2 months prior to any intended change(s) to the Financial Assurances

Plan during the Projects operations phase

, a letter, for approval, detailing the

intended change(s) and how the change(s) provides the same or greater level

of protection.

vi)

Within 30 days after accessing any component of the Financial Assurances

Plan

, a report detailing the component accessed, the reason for accessing it, and

Trans Mountain’s plan to ensure that it continues to meet the requirements of its

NEB-approved Financial Assurances Plan.

X

X

X

X

X

122

Changing pipeline segment operating conditions (Hinton to Hargreaves;

Darfield to Black Pines)

Trans Mountain must file with the NEB for approval,

at least 6 months prior to

applying for leave to open Line 2

, the following:

a) An engineering assessment in accordance with CSA Z662 for the above two

pipeline segments which Trans Mountain proposes to change from operating on

the existing TMPL to the proposed Line 2.

The engineering assessment must demonstrate that the two pipeline segments are

fit for their intended service under the operating conditions of Line 2, and that they

meet all relevant requirements of CSA Z662. The engineering assessment must

include a schedule of planned integrity monitoring activities.

b) A certificate with a supporting report issued by an independent certification

body,

88

stating unconditionally that the 43-kilometre-long, 762 millimetre

outside diameter (NPS 30) pipeline segment from Darfield to Black Pines,

British Columbia is fit for its intended service under the operating conditions

89

of Line 2.

The supporting report must include the qualifications of the independent

certification body and the justification used to grant the certificate

X

1

2

88 For Conditions 19, 122 and 152, an” independent certification body” is an internationally recognized company or organization, such as Lloyd’s Register

or Det Norske Veritas, which is able to certify compliance to statutory requirements. The independent certification body must have expertise in

pipeline integrity. The NEB reserves the right to accept or reject the certificate. In addition, the NEB’s decision is not contingent on the results of the

certificate.

89 For Conditions 19, 122 and 152, “operating conditions” must include the Project-specific operating conditions, possible transient flow conditions, slack

flow conditions, and effects on operating pressure due to temperature changes.