ENBRIDGE GAS ESTIMATED OBPS COMPLIANCE OBLIGATION

1. On October 31, 2018 the Greenhouse Gas Emissions Information Production Order

   (the “Order”) was published in Canada Gazette II.1 On December 20, 2018, ECCC released the Regulatory Proposal for the Output-Based Pricing System Regulations under the Greenhouse Gas Pollution Pricing Act (the “Regulatory Proposal”).2 On June 28, 2019, the Output-Based Pricing System Regulations (the “OBPS regulations”) were published in Canada Gazette II.3 Based on OBPS regulations, the annual compliance obligation under OBPS is calculated as follows:

   Compliance Obligation (tCO2e) =
   Annual Facility Emissions – Annual Facility Emissions Limit

   Where:
   Annual Facility Emissions (tCO2e) =
   Total Annual Facility Emissions4 (Gas Transmission pipeline system)

   Annual Facility Emissions Limit (tCO2e) =
   OBS (tCO2e/production units) × Annual Production (production units)

2. For forecasting purposes, the annual facility emissions limit was calculated by using ECCC’s Output-Based Standard (“OBS”) for the natural gas transmission sector of

1 SOR/2018-214 available at http://gazette.gc.ca/rp-pr/p2/2018/2018-10-31/html/sor-dors214-eng.html , as amended on December 20, 2018 by SOR/2018-277 available at http://gazette.gc.ca/rp-pr/p2/2018/2018- 12-20-x2/html/sor-dors277-eng.html

2 Available at https://www.canada.ca/content/dam/eccc/documents/pdf/climate-change/pricing- pollution/obps-regulatory-proposal-en.pdf

3 SOR/2019-266 available at http://www.gazette.gc.ca/rp-pr/p2/2019/2019-07-10/html/sor-dors266- eng.html

4 Excluding emissions covered by ECCC’s Regulations Respecting Reduction in the Release of Methane and Certain Volatile Organic Compounds (Upstream Oil and Gas Sector).