August 1 0 , 2020 Northern Border Pipeline Com pany 700 Louisiana - PDF document

August 1 0 , 2020 Northern Border Pipeline Com pany 700 Louisiana Street, Suite 700 Houston, TX 77002-2700 John A. Roscher Director, Rates & Tariffs Ms. Kimberly D. Bose, Secretary tel 832.320.5675 Federal Energy Regulatory Commission em ail John_Roscher@tcenergy.com 888 First Street, N.E. w eb www.northernborder.com Washington, D.C. 20426 Re: Northern Border Pipeline Company Presentation from August 6, 2020 Technical Conference Docket No. RP20-859-000 Dear Ms. Bose, Attached please find Northern Border Pipeline Company’s presentation from the technical conference held on August 6, 2020, in the above-captioned docket. Respectfully submitted, NORTHERN BORDER PIPELINE COMPANY By: TransCanada Northern Border Inc., Its Operator John A. Roscher Director, Rates & Tariffs Enclosures

Northern Border Pipeline Company FERC Technical Conference | RP20-859-000 August 6, 2020

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Agenda • Review the need for the Proposal • Recognition of Increasing Btu Levels • Impacts of High Btu Gas • Discuss Proposal • Safe Harbor • Option To Post An Upper Btu Limit • No Hard Cap Btu Limit • Pairing Option • Scenarios

Need for the Proposal • Need for the proposal is as great today as when it was filed • Increasing system Btu levels • Decreasing receipts from the WCSB • Increasing receipts from the Bakken Supply Basin • Higher Btu gas from the Bakken Supply Basin Impacts of Increasing System Btu Levels • • Effects and safety concerns on commercial end users, local distribution companies, electric generators, and Northern Border’s facilities • Northern Border’s tariff currently does not have a stated upper Btu limit or other provisions that would allow Northern Border to manage these issues

Increasing System Btu Levels • Northern Border has experienced increasing blended Btu levels (from 1080 to ~1120 range) at Glen Ullin as a result of Bakken receipts overtaking WCSB receipts. • Increased higher Btu Bakken receipts have resulted in blended system Btu levels in excess of 1100 on a more frequent basis. • If Bakken production continues to displace Canadian supply, as projected, the result will be a permanent system Btu level in excess of 1100. Northern Border Illustrative Btu Level Sensitivity Composition Bakken Receipts (Bcf/d) 1,122 122 1,091 091 1,064 064 1.3 1.6 2.0 2.4 3 1,200 2.5 1,000 1,075 1,055 1,060 1,068 1,075 Bakken Btu 0. 0.7 2 800 1,100 1,069 1,077 1,088 1,100 1.3 1. 1.5 600 2 1,140 1,091 1,103 1,122 1,140 1 400 1.7 1. 1.1 1. 0.5 200 1,160 1,102 1,117 1,138 1,160 0.4 0. 0 0 Assumes: PoM BTU of 1,030 & NBPL capacity of 2.4 Bcf/d 20 2016 16 20 2019 19 Futu ture P Possibility ty WC WCSB Bakke kken Bt Btu

Bakken Growth

Increasing Btu Levels

Bakken Region Interconnects – Increasing Capacity

Need for the gas quality revisions hasn’t changed since the May 1, 2020 Filing • Continues to be necessary and is becoming more urgent as flow dynamics and Btu levels change. • At trough of COVID-19 and Economic disruptions system Btu levels were approximately 1082. • As Bakken flows have returned, Btu levels have reached 1095. • This includes receipts of ~100,000 MMBtu per day from Bison pipeline at 980 Btu. • Kurtz Flow Contracts End January 2021

Recognition of Need to Address Increasing Btu levels • Pipelines downstream of Northern Border have rejected gas shipped on Northern Border’s system due to gas quality concerns. • In June 2018, Northern Border advised interconnecting parties of scheduled maintenance of a gas processing plant upstream of Northern Border and, as a result, Northern Border was seeing higher Btu values on the pipeline. • Higher Btu content gas was received at the Joliet point which delivers to Vector Pipeline L.P. • Joliet point deliveries were curtailed from 268,000 Dth/d to an average of 76,000 Dth/d for a 31 day period during June/July 2018. • Midwestern Gas Transmission Company made several postings from June 23, 2018 – June 27, 2018 regarding restrictions due to high Btu content at the Channahon point where it receives gas from Northern Border. • Channahon point deliveries were curtailed from 339,240 Dth/d to 90,000 Dth/d. • In March 2020, Vector Pipeline was unable to blend its gas stream to meet its tariff requirement of an upper limit of 1100 Btu/cf due to increased nomination containing high Btu content. Vector requested that Northern Border curtail flows by 50 percent for a portion of the Gas Day from March 28, 2020 – March 30, 2020.

Recognition of Need to Address Increasing Btu levels • Ethane Content – The ability to maintain a blended stream of 1100 Btu helps Northern Border stay within its equipment manufacturers’ specifications for Ethane content. • Interconnecting Pipeline Limits – Multiple delivery points have an 1100 hard cap upper Btu limit. Pipeli Pip line Tariff B Btu L u Limits Northern Natural Gas 950 – No upper limit ANR Pipeline Company 967 – 1200 Natural Gas Pipeline Company of America LLC (Amarillo Line) 950 – 1065 Midwestern Gas Transmission Company 967 – 1100 Vector Pipeline L.P. 962 – 1100 Guardian Pipeline, L.L.C. 950 – 1100 Horizon Pipeline Company, L.L.C. 950 – Ability to post upper limit Northern Border Pipeline Company 967 – No upper limit

Recognition of Need to Address Increasing Btu levels • North Dakota Pipeline Authority has recognized Btu management is becoming increasingly more important for Bakken gas • May 22, 2018 – Williston Basin Petroleum Conference • September 26, 2018 – N.D. Petroleum Council Annual Meeting • WBI Energy Transmission’s 2020 Tioga to Emerson Project open season • “[A] lower gross heating value may be required for the Project to ensure that natural gas deliveries can meet the gas quality specifications of the downstream interconnecting pipelines. WBI Energy requests that shippers provide the estimated heating value of the gas they desire to deliver to the Project….” • Ten intervenors filed comments in support of the Northern Border Filing • Supporters representing the owners and operators of distribution facilities and end-use equipment expressed concern that higher Btu gas transported on the Northern Border pipeline system and delivered to them causes operational and safety concerns. The utility operating companies and local distribution companies that intervened provide • energy sourced through Northern Border whether electricity or gas, to millions of retail and industrial consumers in at least twelve states.

Impacts of High Btu Gas • Impacts and Safety Concerns on Commercial End Users, Local Distribution Companies, and Electric Generators • Power generation facilities are designed for a specific gas composition, and higher BTU gas can lead to premature turbine hot section failures and reduced service life. • Facilities with open burners, such as glass plants, do not tolerate higher BTU changes well due to tight tolerance of process temperatures and burner design. • Higher content of heavy hydrocarbons increases production of NOX, leading to failed emissions tests. • Reciprocating engines, such as generators, are susceptible to detonation when energy content rises, which reduces component life within the engine. • Carbon monoxide production from the incomplete combustion of the gas • Damage to appliances due to burner design for lower BTU gas • Impacts and Safety Concerns on Northern Border’s Assets Higher Btu levels on Northern Border are closely-correlated with higher ethane levels • Higher levels of ethane reduce turbine hot section life, unit reliability, and time between overhauls. • • Operates 13 Siemens RB211 or Avon compressors with an upper ethane limit of 12-13%. • 13 of 16 Bakken receipts points have ethane levels above manufactures recommendations ranging from 13.9 – 24.5% • Gas Quality Policy Statement does not require that a pipeline operate its pipeline imprudently until it fails. • Instead, it states, “Gas quality, as discussed in this policy statement, is concerned with the impact of non-methane hydrocarbons on the safe and efficient operation of pipelines, distribution facilities and end-user equipment.