Schedule A to the Memorandum of Understanding. Between the Oil and Gas Commission and British Columbia Safety Authority

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Schedule A to the Memorandum of Understanding Between the Oil and Gas Commission and British Columbia Safety Authority Joint Regulation of Pipeline System Unfired Pressure Vessel Clarification of MOU Responsibilities Page MOU Responsibilities... 3 Attachment A - Document purpose, application and definitions... 5 Attachment B - Definitions... 7 Attachment C Piping and unfired pressure vessel component system... 9 Attachment D Prefabricated skid packages... 10 Attachment E Compressor and pump station (field construction)... 11 Attachment F Unfired pressure vessel component... 11 Page 1 of 12

Page 2 of 12

MOU Responsibilities The Oil and Gas Commission (OGC) is responsible for the design, construction, maintenance, operation and abandonment of the pipeline system. This includes all installations and items listed under Attachment A - Document purpose, application and definitions. The OGC considers the following as pipeline components: 1. all skid packages manufactured in a plant and transported to the worksite consisting of at least one unfired pressure vessel and piping such as a dehydrator or filter pot; 2. all skid mounted equipment consisting of at least one unfired pressure vessel and piping which is assembled in a shop and shipped as a package for transportation to the site for installation such as a compressor or pump; and 3. all unfired pressure vessels. The British Columbia Safety Authority (BCSA) is responsible for the oversight of the assembly, manufacture, construction, testing, installation, operation, use, disposal, maintenance, and repair of components 1, 2 and 3 as listed above, when they are used in a pipeline system. BCSA responsibility for unfired pressure vessels pipeline system components are: 1. pipeline system: a. skid mounted piping between the inlet and outlet flanges on all skid packages and skid mounted equipment that contain at least one unfired pressure vessel; b. unfired pressure vessels and its fittings; 2. field constructed compressor or pump stations; a. unfired pressure vessels and their fittings to the inlet and outlet nozzles or flanges connecting piping to the pressure vessel but does not include a valve; and 3. other installations; a. unfired pressure vessels and its fittings to the inlet and outlet flanges connecting piping to the pressure vessel but does not include a valve. For greater certainty, the pipeline components under the authority of the BCSA must conform to the following codes: 1. piping - ASME B 31.3; 2. pressure vessels CSA B51; 3. if inspected by a BCSA Safety Officer during construction the components (anything on skid package) shall be inspected in accordance with be CSA B51; and 4. piping must be registered and a construction data report for piping systems shall be completed in accordance with CSA B 51 Figure D.5. Page 3 of 12

For greater certainty, the British Columbia Safety Authority has exempted registration requirements for: 1. categories A, B, C and G (pipe fittings, flanges, valves and pressure relief devices) are not required to be registered. with a CRN; and 2. piping 88.9 mm (3 NPS) or less does not require registration. For greater certainty, piping in a skid package conveying oil or any of its derivatives and oilfield water are not within the jurisdiction of the BCSA unless the piping is operated at temperatures exceeding 121 C or a working pressure greater than 1100 kpa. Page 4 of 12

Attachment A Document purpose, application and definitions The purpose of this document is to assist with interpreting the relationship between the Pipeline Act, Pipeline Regulation, Sour Pipeline Regulation and the Safety Standards Act and Power Engineers, Boiler, Pressure Vessel and Refrigeration Safety Regulation. The document provides sketches of four installations as general information for assistance only. The simplified illustrations are not intended to replace the requirements and details in the applicable acts, regulations, and adopted standards. Definitions of selected items are included under Attachment B - Definitions on page 6 of this document. Note: 1) This document applies to the design, construction, operation, maintenance and abandonment of all oil and gas industry pipeline systems that are designed to convey liquid hydrocarbons, including crude oil, multiphase fluid, condensate, liquid petroleum products, natural gas liquids, liquefied petroleum gas, and producing field water, producing field steam, carbon dioxide used in oil field enhancement recovery schemes and natural gas, liquefied natural gas, manufactured gas, synthetic natural gas and solids pipelines in BC. This includes all branches, extensions, tanks, reservoirs, pumps, racks and loading facilities, property and works connected with the pipelines such as, but not limited to, the following; a) for oil industry fluids, piping and equipment in offshore pipelines, onshore pipelines, tank farms, pump stations, pressure regulating station, measuring station, oil pump stations, pipeline tank farms, pipeline terminals and pipe type storage vessels; b) for gas industry fluids, piping and equipment in offshore pipelines, onshore pipelines, compressor stations, measuring stations, pressure regulating stations, gas compressor stations, and gas storage lines including pipe type and bottle type gas storage vessels; c) for carbon dioxide pipeline systems, piping and equipment in onshore pipelines, pressure regulating stations, and measuring stations; d) for producing field water pipeline systems, piping and equipment in onshore pipelines, offshore pipelines pump stations and storage or disposal tanks; e) for solids pipeline systems, packing and equipment in onshore pipelines, offshore pipeline, pump stations, regulating stations, metering stations, and storage tanks; and f) for liquefied natural gas, facilities for the liquefaction of natural gas and facilities for the storage, vaporization, transfer, handling, truck transport of liquefied natural gas, facilities that load or unload liquefied natural gas from a marine vessel including interconnecting piping between the loading/unloading arms flange in the storage tanks, other piping and appurtenances on the pier or jetty Page 5 of 12

itself, and it includes all containers for the storage of liquefied natural gas, including those with insulation systems applying a vacuum. 2) This document does not apply to the following; a) piping in a gas distribution system at working pressures less than 700 kpa; b) a boiler; c) transportation of liquefied natural gas by railcar or marine vessel; d) facilities designed to allow the use of liquefied natural gas as a fuel for highway vehicles, railway locomotives, or marine vessels; e) a pipeline within National Energy Board jurisdiction; and f) a gas or fuel oil pipeline wholly situated within the property of a consumer. 3) Design and licensing requirements of the wellhead are not covered in this document. a) The outlet valve on the wellhead is considered part of the wellhead, and b) the pipeline system commences at the wellhead outlet valve. 4) Pig traps or scraper traps are part of the pipeline system and must be designed, constructed, tested, operated, maintained and abandoned in accordance with the requirements of CSA Z662. See attachments C through F for responsibility diagrams. Page 6 of 12

Attachment B Definitions Unfired Pressure Vessel means a vessel and its fittings, other than a boiler, (a) that is capable of being used to contain, store, distribute, transfer, distil, process or otherwise handle gas, vapour or liquids under pressure, and (b) with no direct connection to a heat source provided by the combustion of fuel. Pipeline Act "company pipeline" or "line" means a pipeline to transport oil, gas, solids or water that a company under this Act is authorized to construct or operate, and includes all branches, extensions, tanks, reservoirs, pumps, racks and loading facilities; interstation systems of communication by telephone, telegraph or radio; property and works connected with it; "pipeline" means a continuous conduit between 2 geographical locations through which oil, gas or solids is transported under pressure, and includes: (a) a company pipeline; (b) all gathering and flow lines used in oil and gas fields to transmit oil and gas; (c) all water injection pipelines or other pipelines used to transmit water at working pressures in excess of 3 500 kpa in oil and gas fields; and (d) all transmission lines used to transmit gas at working pressures in excess of 700 kpa, gauge, from a company pipeline to the distribution system of a public utility or a gas utility, but does not include piping used in a gas distribution main as defined in regulations made under the Safety Standards Act; Canadian Standards Association Z662-07 Oil and gas pipeline systems Component a pressure-retaining member of the piping, other than pipe. Compressor station a facility used primarily to increase the pressure in a gas pipeline system, including: (a) piping; (b) auxiliary devices such as compressors, drivers, control instruments, enclosures, ventilating equipment, and utilities; and (c) any associated buildings other than residences. Fabricated assembly an arrangement of piping that is joined together prior to installation in the pipeline system and contains at least two components that are separated by a distance of less than 10 pipe diameters. Pipe a tubular product made to a pipe specification or standard, or tubing that is allowed by this Standard to be used as pipe. Page 7 of 12

Pipeline those items through which oil or gas industry fluids are conveyed, including pipe, components, and any appurtenances attached thereto, up to and including the isolating valves used at stations and other facilities. Piping a portion of a pipeline system, consisting of pipe or pipe and components. Holder, pipe-type any pipe or group of interconnected pipes installed at one location and used for the sole purpose of storing gas. Page 8 of 12

Attachment C Piping and unfired pressure vessel component system Piping and Unfired Pressure Vessel Component System Pressure Relief/Safety Valves Unfired Pressure Vessel Responsibility Attachment C Flange and valve Unfired Pressure Vessel Component OGC responsibility includes valve and valve flanges from first sealing interface with BCSA BCSA responsibility includes PSVs and nozzle and flange to first sealing interface with OGC BCSA responsibility all Inlet and outlet flanges on unfired pressure vessels and its fittings Pressure Relief/Safety Valves Unfired Pressure Vessel Component Page 9 of 12

Attachment D Prefabricated skid packages Unfired Pressure Vessel Responsibility Attachment D Prefabricated Skid Package OGC responsibility includes valve and valve flanges from first sealing interface with BCSA BCSA responsibility includes PSVs and nozzle and flange to first sealing interface with OGC Compressor, Pump Skid Package or Other Skid Package containing an unfired pressure vessel Dehydrator Line heater BCSA responsibility all inlet and outlet flanges on all skid packages and skid mounted equipment that contain at least one unfired pressure vessel. Includes all interconnecting piping within skid package. Page 10 of 12

Attachment E Compressor and pump station (field construction) Unfired Pressure Vessel Responsibility Attachment E Compressor and Pump Station (Field Construction) BCSA responsibility all Inlet and outlet flanges on unfired pressure vessels and its fittings Unfired Pressure Vessel Component Unfired Pressure Vessel Component Pressure Relief/Safety Valves Pressure Relief/Safety Valves OGC responsibility includes valve and valve flanges from first sealing interface with BCSA BCSA responsibility includes PSVs and nozzle and flange to first sealing interface with OGC Attachment F Unfired pressure vessel component Page 11 of 12

Unfired Pressure Vessel Responsibility Attachment F Unfired Pressure Vessel Component OGC responsibility includes valve and valve flanges from first sealing interface with BCSA BCSA responsibility includes PSVs and nozzle and flange to first sealing interface with OGC Pressure Relief/Safety Valves Unfired Pressure Vessel Component BCSA responsibility all Inlet and outlet flanges on unfired pressure vessels and its fittings Page 12 of 12