Document:

International Joint Tariff Agreement

 Exhibit 10.1 
 INTERNATIONAL JOINT TARIFF AGREEMENT 
 This International Joint
Tariff Agreement (“Agreement”) is entered into this 6th day of May, 2011 (the “Effective Date”), by and between Enbridge Pipelines Inc., a body corporate continued under the laws of Canada with offices in Calgary,
Alberta (“EPI”) and Enbridge Energy, Limited Partnership, a Delaware limited partnership with offices in Houston, Texas (“EELP”). EPI and EELP are referred to herein individually as a “Party” and
collectively as the “Parties.” 
 WHEREAS, EPI owns and operates a common carrier pipeline system transporting crude
petroleum from Edmonton, Alberta and Hardisty, Alberta to the International Boundary between Canada and the United States near Gretna, Manitoba and receipt and delivery points in Ontario (the “EPI Pipeline System”); and 

WHEREAS, EELP owns and operates a common carrier pipeline system transporting crude petroleum from the International Boundary between
Canada and the United States near Neche, North Dakota to multiple delivery points including, but not limited to, Clearbrook, Minnesota, Chicago, Illinois, and via an extension to West Seneca, New York (the “EELP Pipeline System”);
and 
 WHEREAS, an affiliate of EPI has historically provided services to EEP since its formation in respect of rate design,
tariff negotiations, shipper contacts and the like and such services are presently performed by Enbridge Employee Services, Inc. and Enbridge (U.S.) Inc. and certain of their affiliates pursuant to a General and Administrative Services Agreement
dated as of October 17, 2001; and 
 WHEREAS, EPI and EELP desire to cooperate in providing efficient, cost-effective
pipeline transportation service from the various origins of the EPI Pipeline System in Western Canada to the various destinations of the EELP Pipeline System as depicted on the map included as Attachment 1; and 

 WHEREAS, pursuant to that end, the Parties desire to initiate and maintain in place an
international joint tariff for movements through their respective pipeline systems; 
 NOW, THEREFORE, for and in consideration
of the mutual benefits to the Parties hereto, EPI and EELP hereby agree as follows: 
  

	1.	Definitions 

  

	 	(a)	“Affiliated Entity” means, with respect to either Party, any other Person directly or indirectly controlling, controlled by, or under common control
with such Party. For purposes of this definition, the term “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of any Person whether through the ownership of
voting securities or by contract or otherwise. 

  

	 	(b)	“Allowance Oil” has the meaning given to it in the CTS. 

  

	 	(c)	“Applicable Law” shall mean all applicable laws, statutes, directives, codes, ordinances, rules, regulations, municipal by-laws, judicial, arbitral,
administrative, ministerial, departmental or regulatory judgments, orders, decisions rulings or awards, consent orders, consent decrees and policies of any Government Authority. 

 

	 	(d)	“CTS” means the Competitive Toll Settlement between EPI and the Canadian Association of Petroleum Producers dated July 1, 2011 and filed with the
NEB on May 2, 2011. 

 “ 

  
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	 	(e)	“FERC” means the United States Federal Energy Regulatory Commission. 

 

	 	(f)	“Governmental Authority” means any government, any governmental, administrative or regulatory entity, authority, commission, board, agency,
instrumentality, bureau or political subdivision and any court, tribunal or judicial or arbitral body (whether U.S. or foreign and whether national, federal, state, provincial or local, or in the case of an arbitral body, whether governmental,
public or private). 

  

	 	(g)	“International Joint Tariffs” means the International Joint Tariff (or Tariffs) containing the International Joint Tariff Rules and the International
Joint Tariff Rates as established under this Agreement. 

  

	 	(h)	“NEB” or “Board” means the Canadian National Energy Board. 

 

	 	(i)	“Person” means an individual, partnership, limited liability company, corporation, trust, estate, unincorporated association, nominee, joint venture or
other entity. 

  

	 	(j)	“U.S. Agreements” means: 

  

	 	(1)	The Facilities Surcharge Mechanism which includes recovery of the following: 

 

	 	(i)	Various shipper requested projects; 

  

	 	(ii)	Southern Access Mainline Expansion Surcharge Terms (Exhibit III of Offer of Settlement, Docket No. OR06-3-000); 

 

	 	(iii)	Line 17 (Toledo) Expansion Project – FERC Docket No. OR04-2; 

  
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	 	(iv)	Alberta Clipper Project – FERC Docket No. OR08-10; and 

  

	 	(2)	SEP II expansion surcharge; 

  

	 	(3)	Terrace Toll Agreement Statement of Principles dated October 21, 1998; and the 

 

	 	(4)	350 Centistoke Agreement (1998 Offer of Settlement). 

  

	 	(k)	  

  

	2.	Term 

 Subject to
acceptance of the International Joint Tariff(s) by the NEB and FERC, this Agreement shall have an initial term of ten (10) years from July 1, 2011 until June 30, 2021, and shall thereafter continue in effect for successive one-year
terms (the initial term and all such extensions collectively being the “Term”), provided that either Party may, by not less than ninety (90) days’ advance written notice, terminate this Agreement as of the last day of the
initial term or any one-year extension thereof. 
 Notwithstanding the above, in the event that (1) the CTS itself is
terminated prior to the expiration of its term or (2) the NEB or the FERC (as applicable) rejects or orders modification of the International Joint Tariff(s), this Agreement will be deemed to be terminated as of the earlier of the date of
termination of the CTS or the date of such order of the NEB or FERC. 
  

	3.	International Joint Tariff Administrator 

 (a) For purposes of this Agreement, the “International Joint Tariff Administrator” shall be EPI. The duties of the International Joint Tariff Administrator under this Agreement are: (i) to
prepare and submit International Joint Tariff filings to the FERC and the NEB; (ii) to coordinate and administer the International Joint Tariffs; (iii) to accept shipper nominations for transportation under the International Joint Tariffs;
(iv) to prepare invoices for shippers under the 

  
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International Joint Tariffs; (v) to collect receivables, including any Allowance Oil, from shippers under the International Joint Tariffs as provided under the terms of the CTS; and
(vi) to distribute International Joint Tariff revenues to the Parties in accordance with the terms of this Agreement. The costs of administering the International Joint Tariff(s) are recovered under the existing service agreements between EPI
and EELP as amended from time to time. 
 (b) EELP hereby agrees to indemnify and hold EPI harmless from and against any and all liability,
claim, loss, damages, penalty, cost or expense, including reasonable attorneys’ fees and expenses, incurred by EELP as a result of or in connection with EPI’s non-performance, negligence or other misfeasance in performing its duties as
International Joint Tariff Administrator under this Agreement. 
  

	4.	International Joint Tariffs 

  

	(a)	From and after the Effective Date of this Agreement and throughout the Term of this Agreement, the International Joint Tariff Administrator shall be authorized to file,
and shall file and maintain on file with the FERC and the NEB, on behalf of itself and all other Parties to this Agreement, international joint tariff rates applicable to transportation of crude petroleum from all EPI receipt points to various
delivery points on EELP’s Pipeline System (the “International Joint Tariff Rates”). Subject to the requirements of Applicable Law and valid orders of any Governmental Authority having jurisdiction, the International Joint
Tariff Rates shall at all times be determined in accordance with Attachment 2 hereto. 

  

	(b)	 From and after the Effective Date and throughout the Term of this Agreement, the International Joint Tariff Administrator shall be authorized to file,
and shall file and maintain on file with the FERC and the NEB on behalf of itself and the other Party to this 

  
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Agreement, a rules and regulation tariff applicable to transportation of crude petroleum from receipt points on EPI’s Pipeline System in Western Canada to various delivery points on
EELP’s Pipeline System (the “International Joint Tariff Rules”). Subject to the requirements of Applicable Law and valid orders of any Governmental Authority having jurisdiction, transportation under the International Joint
Tariff shall initially be governed by the applicable EPI and EELP Rules and Regulation Tariffs on file and in effect with the NEB and FERC. The applicable rules and regulations tariffs are attached hereto as Attachment 3. Any amendments, supplements
or restatements of the International Joint Tariff Rules shall be subject to the prior written approval of both Parties and to requirements of Applicable Law. Subject to the terms of this Agreement, each Party retains the right to use its own
pipeline facilities as an individual carrier facility and shall be fully responsible for the operation and maintenance of its respective pipeline system. Nothing in this Agreement is meant to restrict a Party’s right and obligation to set
operating parameters for its own pipeline facilities, provided such parameters are consistent with the International Joint Tariff Rules then in effect. 

 

	(c)	Nothing in this Agreement shall affect or impair the ability of either Party to independently establish tariffs and tariff rates with respect to any services other than
transportation of crude petroleum from EPI’s Pipeline System to delivery points on EELP’s Pipeline System pursuant to this Agreement. 

  

	(d)	Subject to the requirements of Applicable Law and valid orders of any Governmental Authority having jurisdiction, the Parties agree to support, maintain, and keep in
place the International Joint Tariffs filed by the International Joint Tariff Administrator under this Agreement throughout the Term of this Agreement. 

  
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	(e)	The Parties each agree to file, maintain, and keep in place local tariffs for movements through their portion of the pipeline facilities from various EPI receipt points
to various delivery points on EELP’s Pipeline System designed in accordance with the terms of the CTS throughout the Term of this Agreement. 

  

	(f)	Any changes to the International Joint Tariff Rates as determined under Section 4(a) of this Agreement, and any changes to the division of revenues as determined
under Section 5 of this Agreement, shall be made only with the agreement in writing of both Parties to this Agreement. In the event of an agreement to change the International Joint Tariff Rates, the International Joint Tariff Administrator
shall promptly file such revised International Joint Tariff Rates with the FERC and the NEB. 

  

	5.	Division of Revenues 

  

	(a)	The division of revenues between EPI and EELP with respect to any International Joint Tariff Rates on file pursuant to this Agreement shall be determined on the basis
of the proportions set forth in Attachment 4 hereto; provided, however, that if at any time the FERC or the NEB shall require an International Joint Tariff Rate to be reduced below the level contemplated by this Agreement solely because of a change
in the underlying local rate of one or more of the Parties, any such reduction shall be reflected solely in the division of the Party or Parties whose local rate was the cause of the change; provided further that nothing in this Agreement shall
prevent EELP from increasing its underlying local rate in accordance with applicable FERC regulations or orders, or from collecting the full amount of revenue resulting from such local rate increases in accordance with Attachment 4.

  
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	(b)	The International Joint Tariff Administrator shall, within thirty (30) days after the end of each month of the Term of this Agreement, notify each Party of all
amounts collected from shippers under the International Joint Tariffs in that calendar month and remit to each Party an amount equal to that Party’s division of those revenues as provided in this Agreement. The International Joint Tariff
Administrator shall provide each Party with a copy of all billings for and correspondence with any shipper regarding transportation under the International Joint Tariffs. 

 

	6.	Regulation 

  

	(a)	Transportation under the International Joint Tariffs shall be treated as common carrier pipeline movements and shall be subject to the National Energy Board Act and the
Interstate Commerce Act (the “ICA”) as administered by the NEB and FERC respectively. Each Party agrees to operate and maintain its respective pipeline facilities in such a manner as to allow for fulfillment of the Parties’
obligations under the NEB Act and the ICA as administered by the NEB and FERC with respect to the International Joint Tariffs. The Parties shall cooperate, each at its own expense, in the filing of any applications for governmental or regulatory
approvals necessary for the matters set forth herein. 

  

	(b)	This Agreement is subject to all Applicable Law and the valid orders of any Governmental Authority. 

 

	(c)	In the event that a protest or complaint is filed with the NEB or FERC pertaining to either the International Joint Tariffs or either Party’s underlying local
tariffs in effect during the Term of this Agreement, then: 

  
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	 	(i)	with respect to a challenged rate or a term or condition in an underlying local tariff, the Party that filed the applicable local tariff shall be solely responsible for
defending the challenged rate, term or condition and remitting any reparations or refunds found or agreed to be owed on the basis of shipments made under that Party’s local tariff; 

 

	 	(ii)	with respect to shipments made under the International Joint Tariffs, any reparations or refunds found or agreed to be owed based on a determination that a Party’s
underlying local tariff rate was improper shall be remitted by that Party; 

  

	 	(iii)	in the event that an underlying local rate is reduced by the FERC or the NEB such that the sum of the underlying local rates is less than the International Joint Tariff
Rates then in effect for the same movement, then the International Joint Tariff Administrator shall file a revision of the International Joint Tariff Rates such that the International Joint Tariff Rates do not exceed the sum of the applicable
underlying local rates; and 

  

	 	(iv)	in the event a protest or complaint is filed against the International Joint Tariff Rates or the International Joint Tariff Rules directly, then the Parties shall
jointly determine whether to defend the challenged International Joint Tariffs or whether, alternatively, to terminate this Agreement. If the Parties determine to defend the challenged International Joint Tariffs, then all costs involved in doing so
and any reparations or refunds shall be paid by the Parties in the same proportion as their division of the relevant International Joint Tariff revenues. 

  

	(d)	Each Party agrees not to, and to cause its Affiliated Entities not to, file a protest or complaint against, or aid any third person in any protest or complaint against,
any International Joint Tariff contemplated by this Agreement or any underlying local tariff of either Party. 

  
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	7.	Audit 

 EELP shall
have the right to have its Internal Audit group audit the calculations referred to in Attachment 4 for a period of eighteen (18) months after the issuance of the completion of such calculations, such audit to be conducted during the
International Joint Tariff Administrator’s regular business hours upon not less than sixty (60) business days’ prior notice to the International Joint Tariff Administrator. If as a result of any such audit it is determined that there
has been a mistake in such calculations, then EELP shall promptly pay to the International Joint Tariff Administrator the amount of any underpayment by EELP and the International Joint Tariff Administrator shall promptly pay to EELP the amount of
any overpayment by EELP. 
  

	8.	Confidentiality 

Each Party shall keep the terms and conditions of this Agreement confidential, and shall not disclose such terms and conditions to any
third person without the prior consent of the other Party, except: 
  

	(a)	when and to the extent such disclosure is required by Applicable Law or the valid order of any Governmental Authority, provided that any available confidentiality
protection pursuant to Applicable Law is invoked by the disclosing Party; 

  

	(b)	to an Affiliated Entity of the disclosing Party, provided that such Affiliated Entity is otherwise eligible to receive such information and agrees to be bound by the
provisions hereof as if it were a Party hereto; 

  
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	(c)	to a third person to which such Party has been permitted to assign an interest hereunder or a portion thereof, provided that a binding covenant not to disclose such
information to any other third person is obtained from such third person prior to disclosure; 

  

	(d)	to the technical, legal, financial or other professional consultants of such Party which require such information to provide their services to such Party or to a bank
or other financial institution from which such Party is attempting to obtain financing, provided that a binding covenant not to disclose such information to any other third person is obtained from such consultant or financier, as the case may be,
prior to disclosure; and 

  

	(e)	for the purpose of enforcing the obligation of either Party under this Agreement. 

 

	9.	Beneficiaries 

This Agreement is solely for the benefit of the Parties and their respective successors and permitted assigns and shall not otherwise be
deemed to confer upon or give to any third party, including without limitation any creditor, any remedy, claim, liability, reimbursement, cause of action, or other right. 

 

	10.	Assignment 

 This
Agreement may not be assigned in whole or in part by either Party without the prior written consent of the other Party, which consent shall not be unreasonably withheld. Such consent shall not be required in the event of an assignment by a Party to
an Affiliated Entity or any entity into which or with which such Party may be merged, converted or consolidated, or which may succeed to or acquire all or substantially all of such Party’s assets. 

  
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	11.	Governing Law 

This Agreement shall be interpreted and governed according to the laws of Alberta, without regard to principles of conflict of laws that,
if applied, might require the application of the laws of another jurisdiction. 
  

	12.	Entirety 

 This
Agreement constitutes the entire agreement of the Parties with respect to the subject matter hereof and supersedes all prior negotiations and understandings, whether oral or written, with respect thereto. This Agreement may not be amended or
modified other than by an agreement in writing signed by all Parties. 
  

	13.	Severability 

 If
any provision of this Agreement is held to be illegal, invalid or otherwise unenforceable under present or future Applicable Law, and if the rights or obligations of either Party under this Agreement will not be materially and adversely affected
thereby, (i) such provision will be fully severable; (ii) this Agreement will be construed and enforced as if such illegal, invalid or otherwise unenforceable provision had never comprised a part hereof; (iii) the remaining provisions
of this Agreement will remain in full force and effect and will not be affected by the illegal, invalid or otherwise unenforceable provision or by its severance herefrom; and (iv) in lieu of such illegal, invalid or otherwise unenforceable
provision, there will be added automatically as a part of this Agreement a legal, valid and enforceable provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible. 

 

	14.	Notices 

 All
notices, demands, requests, or other communications delivered pursuant to this Agreement shall be in writing and shall be sent to the following addressees: 
 Enbridge Pipelines Inc. 
 Attention: President 

Suite 3000, 425 1st Street, SW 
 Calgary, Alberta 
 T2P 3L8 

  
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 Enbridge Energy, Limited Partnership 

President 
 1100
Louisiana Street, Suite 3300 
 Houston, Texas 
 77002 
 All notices, demands, requests or other communications delivered pursuant to this
Agreement shall be effective when received by the other Party. Either Party may change the address and/or person to which notices, demands, requests or other communications are to be sent upon written notice to the other Party. 

 

	15.	General 

 A.
Nothing in this Agreement shall be deemed or construed to create a partnership or joint venture of or between the Parties hereto. 
 B. The captions and headings in this Agreement are included solely for convenience and shall not be considered or given any effect in construing this Agreement. 

C. The provisions of Section 7 with respect to audit rights and Section 8 with respect to confidentiality shall survive the
termination of this Agreement. 
 D. This Agreement may be executed in one or more counterparts, each of which shall be deemed
an original instrument, but all such counterparts together shall constitute one agreement. 

  
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 IN WITNESS WHEREOF, the duly authorized representatives of the Parties have executed this Agreement as of
the date first above written. 
  

			
	ENBRIDGE PIPELINES INC.
		
	Per:	 	/s/ William G. Ross
	William G. Ross Vice President, Finance
		
	Per:	 	/s/ R.T. Schwartz
	R.T. Schwartz, Vice President

 Liquid Pipelines Law & Deputy General Counsel 
 ENBRIDGE ENERGY, LIMITED PARTNERSHIP 
 By: Enbridge Pipelines (Lakehead) L.L.C., its
General Partner 
  

			
		
	Per:	 	/s/ Mark A. Maki
	Mark A. Maki, Vice President,
	Finance and Accounting
		
	Per:	 	/s/ Bruce A. Stevenson
	Bruce A. Stevenson
	Secretary

  
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 Attachment 1 
 Map Depicting EPI and EELP Pipeline Systems 

  
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 Attachment 2 
 Determination of International Joint Tariff Rates 
  

	1.	The International Joint Tariff Rates will be supported by each of the carriers, EPI and EELP, filing local tariffs with the applicable regulator (NEB and FERC
respectively) that are established under the applicable rules and orders of the respective agency as modified from time to time and any settlement agreements that have not otherwise been suspended during the Term of this Agreement.

  

	2.	 Subject to the requirements of Applicable Law and valid orders of any Governmental Authority having jurisdiction, the initial International Joint
Tariff Rates (IJT) will be the amounts set forth in Attachment 3, which were derived based on the Hardisty, Alberta to Chicago, Illinois heavy crude equivalent toll of $3.85 per barrel. Starting July 1, 2012, the IJT rate will be escalated as
of July 1st of each year during the Term of this
Agreement by 75 % of the average annual Canada Gross Domestic Producer Implicit Price Index (GDPP), which is published by Statistics Canada on or about February 28th, for the prior calendar year. In addition to the IJT, shippers will be required to pay an outstanding amount surcharge
for a 24 month period in accordance with the terms of the CTS. Further adjustments will be made as required under the CTS. 

  

	3.	 The International Joint Tariff Rates will be filed with the NEB and FERC each year to become effective July 1st of the applicable year. 

  
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 Attachment 3 
 Form of International Joint Tariff Rules 
  

							
	 NEB No. 317
	 		  	 	FERC No. 45.0.0	  
		 		  	 	FERC ICA Oil Tariff	  

 

 
 ENBRIDGE PIPELINES INC. 
 IN CONNECTION WITH 
 ENBRIDGE ENERGY, LIMITED PARTNERSHIP 

INTERNATIONAL JOINT RATE TARIFF 
 APPLYING ON 
 CRUDE PETROLEUM, CONDENSATES AND NATURAL GAS LIQUIDS 

FROM 
 POINTS
IN THE PROVINCES OF ALBERTA, SASKATCHEWAN, MANITOBA, 
 TO 

POINTS IN THE PROVINCE OF ONTARIO AND POINTS IN THE STATES OF ILLINOIS, INDIANA, 

MICHIGAN, MINNESOTA, NEW YORK, AND WISCONSIN 
 USING JOINT ROUTING AS DEPICTED ON PAGE 5 OF THIS TARIFF 
  

 
 The transportation rates listed in this tariff
are subject to the Rules and Regulations published by: 
 Enbridge Pipelines Inc., NEB (National Energy Board) Tariffs Nos. 248, 260 and 282,
and supplements thereto and reissues thereof, on file with the National Energy Board, for transportation within Canada. 
 Enbridge Energy,
Limited Partnership FERC Tariff Nos. 41.1.0 and 42.1.0, and supplements thereto and reissues thereof, for transportation within the United States. 
  

 
 The provisions published herein will, if
effective, not result in an effect on the quality of the human environment. 
  

 

			
	 ISSUED: May 2, 2011
	  	EFFECTIVE: 7 a.m. (MST) on July 1, 2011
		
	 ISSUED BY:
 Shauna Bates
 Director, Regulatory, Planning and Analysis

Enbridge Pipelines Inc.
  

3000 Fifth Avenue Place, 425 – 1st Street S.W.
 Calgary, AB Canada T2P 3L8
	  	 COMPILED BY:
 Lisa Fiege
 Regulatory Strategy and Compliance

Enbridge Pipelines Inc.
 Tel. (403) 718-3522
 Fax: (403) 508-3140

 E-mail: Enbridge-Tariffs@enbridge.com 

  
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	 NEB No. 317
	  	 	FERC No. 45.0.0	  
		  	 	Page 2	  

  

 The rates listed in this tariff are payable in United States currency and are applicable on the
International movement of Crude Petroleum, Condensates and Natural Gas Liquids tendered to Enbridge Pipelines Inc. at established receiving points in Canada for delivery to established delivery points in the United States and Canada. 

TRANSPORTATION RATES 

Commodities shall be classified on the basis of the density and viscosity of such commodities at the time of receipt by Enbridge Pipelines Inc. and
assessed a transportation rate as listed in the transportation rate tables below. Density shall be based on 15°C. Viscosity shall be based on Enbridge Pipelines Inc.’s reference line temperature at the time of receipt. Where the density of
a commodity falls within the density range of one commodity classification and the viscosity of the commodity falls within the viscosity range of another commodity classification, then the commodity shall be deemed to be in the commodity
classification with the higher transportation rate. 
 NATURAL GAS LIQUIDS (NGL) - A commodity having a maximum
absolute vapor pressure of 1,250 kilopascals at 37.8°C and a density of up to but not including 600 kilograms per cubic meter (kg/m3) and a viscosity of up to but not including 0.4 square millimeters per second (mm2/s) will be classified as Natural Gas Liquids. 

CONDENSATES (CND) - A commodity having a density from 600 kg/ m3 up to but not including 800 kg/ m3 and a viscosity of 0.4 mm2/s up to but not including 2 mm2/s will be classified as Condensates. 

LIGHT CRUDE PETROLEUM (LIGHT) - A commodity having a density from 800 kg/m3 up to but not including 876 kg/m3 and a viscosity from 2 mm2/s up to but not including 20 mm2/s will be classified as Light Crude Petroleum. 

MEDIUM CRUDE PETROLEUM (MEDIUM) - A commodity having a density from 876 kg/m3 up to but not including 904 kg/m3 and a viscosity from 20 mm2/s up to but not including 100 mm2/s will be classified as Medium Crude Petroleum. 

HEAVY CRUDE PETROLEUM (HEAVY) - A commodity having a density from 904 kg/m3 to 940 kg/m3 inclusive and a viscosity from 100 up to and including 350 mm2/s will be classified as Heavy Crude Petroleum. 
 The following tables provide rates including Transmission Charges, Commodity Transmission Surcharges, Outstanding Amount Surcharge and Terminalling charges. Tankage Charges and Oil Allowance are not
included. 

					
	 NEB No. 317
	  	 	FERC No. 45.0.0	  
		  	 	Page 3	  

  

 JOINT TRANSPORTATION RATES FOR ENBRIDGE PIPELINES INC AND 

ENBRIDGE ENERGY LIMITED PARTNERSHIP 
  

																							
	JOINT TRANSPORTATION RATES IN US DOLLARS PER CUBIC METER	  
			
	 FROM
	  	 TO
	  	RATE	 
	  	  	NGL	 	  	CND	 	  	LIGHT	 	  	MEDIUM	 	  	HEAVY	 
	 Edmonton

Terminal,

Alberta
	  	Clearbrook, Minnesota	  	 	—  	  	  	 	12.9405	  	  	 	13.7805	  	  	 	14.7548	  	  	 	16.4616	  
	  	Superior, Wisconsin	  	 	14.6849	  	  	 	15.4358	  	  	 	16.2758	  	  	 	17.4400	  	  	 	19.4761	  
	  	Lockport, Illinois	  	 	—  	  	  	 	21.1172	  	  	 	21.9572	  	  	 	23.5856	  	  	 	26.4384	  
	  	Mokena, Illinois	  	 	—  	  	  	 	21.1172	  	  	 	21.9572	  	  	 	23.5856	  	  	 	26.4384	  
	  	Flanagan, Illinois	  	 	—  	  	  	 	21.1172	  	  	 	21.9572	  	  	 	23.5856	  	  	 	26.4384	  
	  	Griffith, Indiana	  	 	—  	  	  	 	21.1172	  	  	 	21.9572	  	  	 	23.5856	  	  	 	26.4384	  
	  	Stockbridge, Michigan	  	 	—  	  	  	 	23.2534	  	  	 	24.0934	  	  	 	25.8926	  	  	 	29.0453	  
	  	Rapid River, Michigan	  	 	17.5191	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  
	  	Marysville, Michigan	  	 	21.7668	  	  	 	23.2534	  	  	 	24.0934	  	  	 	25.8926	  	  	 	29.0453	  
	  	Corunna or Sarnia Terminal, Ontario	  	 	22.0993	  	  	 	23.5878	  	  	 	24.4359	  	  	 	26.2447	  	  	 	29.4082	  
	  	Nanticoke, Ontario	  	 	—  	  	  	 	25.6750	  	  	 	26.7046	  	  	 	28.6948	  	  	 	32.1760	  
	  	West Seneca, New York	  	 	—  	  	  	 	25.9846	  	  	 	27.0351	  	  	 	29.0706	  	  	 	32.6322	  
	 Hardisty
 Terminal,
 Alberta
	  	Clearbrook, Minnesota	  	 	—  	  	  	 	—  	  	  	 	12.3046	  	  	 	13.1609	  	  	 	14.6610	  
	  	Superior, Wisconsin	  	 	—  	  	  	 	—  	  	  	 	14.7999	  	  	 	15.8461	  	  	 	17.6755	  
	  	Lockport, Illinois	  	 	—  	  	  	 	—  	  	  	 	20.4813	  	  	 	21.9917	  	  	 	24.6378	  
	  	Mokena, Illinois	  	 	—  	  	  	 	—  	  	  	 	20.4813	  	  	 	21.9917	  	  	 	24.6378	  
	  	Flanagan, Illinois	  	 	—  	  	  	 	—  	  	  	 	20.4813	  	  	 	21.9917	  	  	 	24.6378	  
	  	Griffith, Indiana	  	 	—  	  	  	 	—  	  	  	 	20.4813	  	  	 	21.9917	  	  	 	24.6378	  
	  	Stockbridge, Michigan	  	 	—  	  	  	 	—  	  	  	 	22.6175	  	  	 	24.2987	  	  	 	27.2447	  
	  	Rapid River, Michigan	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  
	  	Marysville, Michigan	  	 	—  	  	  	 	—  	  	  	 	22.6175	  	  	 	24.2987	  	  	 	27.2447	  
	  	Corunna or Sarnia Terminal, Ontario	  	 	—  	  	  	 	—  	  	  	 	22.9600	  	  	 	24.6507	  	  	 	27.6077	  
	  	Nanticoke, Ontario	  	 	—  	  	  	 	—  	  	  	 	25.2287	  	  	 	27.1009	  	  	 	30.3754	  
	  	West Seneca, New York	  	 	—  	  	  	 	—  	  	  	 	25.5592	  	  	 	27.4767	  	  	 	30.8316	  

					
	 NEB No. 317
	  	 	FERC No. 45.0.0	  
		  	 	Page 4	  

  

																							
	JOINT TRANSPORTATION RATES IN US DOLLARS PER CUBIC METER	  
			
	 FROM
	  	 TO
	  	RATE	 
	  	  	NGL	 	  	CND	 	  	LIGHT	 	  	MEDIUM	 	  	HEAVY	 
	 Kerrobert
 Station,
 Saskatchewan
	  	Clearbrook, Minnesota	  	 	—  	  	  	 	—  	  	  	 	10.8203	  	  	 	—  	  	  	 	12.8501	  
	  	Superior, Wisconsin	  	 	12.0207	  	  	 	—  	  	  	 	13.3156	  	  	 	—  	  	  	 	15.8646	  
	  	Lockport, Illinois	  	 	—  	  	  	 	—  	  	  	 	18.9970	  	  	 	—  	  	  	 	22.8269	  
	  	Mokena, Illinois	  	 	—  	  	  	 	—  	  	  	 	18.9970	  	  	 	—  	  	  	 	22.8269	  
	  	Flanagan, Illinois	  	 	—  	  	  	 	—  	  	  	 	18.9970	  	  	 	—  	  	  	 	22.8269	  
	  	Griffith, Indiana	  	 	—  	  	  	 	—  	  	  	 	18.9970	  	  	 	—  	  	  	 	22.8269	  
	  	Stockbridge, Michigan	  	 	—  	  	  	 	—  	  	  	 	21.1332	  	  	 	—  	  	  	 	25.4338	  
	  	Rapid River, Michigan	  	 	14.8549	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  
	  	Marysville, Michigan	  	 	19.1026	  	  	 	—  	  	  	 	21.1332	  	  	 	—  	  	  	 	25.4338	  
	  	Corunna or Sarnia Terminal, Ontario	  	 	19.4351	  	  	 	—  	  	  	 	21.4757	  	  	 	—  	  	  	 	25.7968	  
	  	Nanticoke, Ontario	  	 	—  	  	  	 	—  	  	  	 	23.7443	  	  	 	—  	  	  	 	28.5645	  
	  	West Seneca, New York	  	 	—  	  	  	 	—  	  	  	 	24.0749	  	  	 	—  	  	  	 	29.0207	  
	 Regina

Terminal,

Saskatchewan
	  	Clearbrook, Minnesota	  	 	—  	  	  	 	—  	  	  	 	7.8432	  	  	 	—  	  	  	 	9.2181	  
	  	Superior, Wisconsin	  	 	—  	  	  	 	—  	  	  	 	10.3385	  	  	 	—  	  	  	 	12.2326	  
	  	Lockport, Illinois	  	 	—  	  	  	 	—  	  	  	 	16.0199	  	  	 	—  	  	  	 	19.1949	  
	  	Mokena, Illinois	  	 	—  	  	  	 	—  	  	  	 	16.0199	  	  	 	—  	  	  	 	19.1949	  
	  	Flanagan, Illinois	  	 	—  	  	  	 	—  	  	  	 	16.0199	  	  	 	—  	  	  	 	19.1949	  
	  	Griffith, Indiana	  	 	—  	  	  	 	—  	  	  	 	16.0199	  	  	 	—  	  	  	 	19.1949	  
	  	Stockbridge, Michigan	  	 	—  	  	  	 	—  	  	  	 	18.1561	  	  	 	—  	  	  	 	21.8018	  
	  	Rapid River, Michigan	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  
	  	Marysville, Michigan	  	 	—  	  	  	 	—  	  	  	 	18.1561	  	  	 	—  	  	  	 	21.8018	  
	  	Corunna or Sarnia Terminal, Ontario	  	 	—  	  	  	 	—  	  	  	 	18.4986	  	  	 	—  	  	  	 	22.1648	  
	  	Nanticoke, Ontario	  	 	—  	  	  	 	—  	  	  	 	20.7673	  	  	 	—  	  	  	 	24.9325	  
	  	West Seneca, New York	  	 	—  	  	  	 	—  	  	  	 	21.0978	  	  	 	—  	  	  	 	25.3887	  
	 Cromer

Terminal,

Manitoba
  
	  	Clearbrook, Minnesota	  	 	—  	  	  	 	—  	  	  	 	5.6927	  	  	 	6.0199	  	  	 	6.5944	  
	  	Superior, Wisconsin	  	 	7.4059	  	  	 	—  	  	  	 	8.1880	  	  	 	8.7051	  	  	 	9.6089	  
	  	Lockport, Illinois	  	 	—  	  	  	 	—  	  	  	 	13.8694	  	  	 	14.8507	  	  	 	16.5712	  
	  	Mokena, Illinois	  	 	—  	  	  	 	—  	  	  	 	13.8694	  	  	 	14.8507	  	  	 	16.5712	  
	  	Flanagan, Illinois	  	 	—  	  	  	 	—  	  	  	 	13.8694	  	  	 	14.8507	  	  	 	16.5712	  
	  	Griffith, Indiana	  	 	—  	  	  	 	—  	  	  	 	13.8694	  	  	 	14.8507	  	  	 	16.5712	  
	  	Stockbridge, Michigan	  	 	—  	  	  	 	—  	  	  	 	16.0056	  	  	 	17.1577	  	  	 	19.1781	  
	  	Rapid River, Michigan	  	 	10.2401	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  
	  	Marysville, Michigan	  	 	14.4878	  	  	 	—  	  	  	 	16.0056	  	  	 	17.1577	  	  	 	19.1781	  
	  	Corunna or Sarnia Terminal, Ontario	  	 	14.8202	  	  	 	—  	  	  	 	16.3480	  	  	 	17.5098	  	  	 	19.5410	  
	  	Nanticoke, Ontario	  	 	—  	  	  	 	—  	  	  	 	18.6167	  	  	 	19.9599	  	  	 	22.3088	  
	  	West Seneca, New York	  	 	—  	  	  	 	—  	  	  	 	18.9473	  	  	 	20.3357	  	  	 	22.7650	  

			
	NEB No. 317	  	    FERC No. 45.0.0
		  	    Page 5

  

 NOTES: 
 TANKAGE: For the applicable Tankage charges in Canada and the United States, refer to Enbridge Pipelines Inc’s NEB Tariff No. 316, Enbridge Pipelines Inc’s NEB RT Tariff
No. 11-2, and Enbridge Energy, Limited Partnership’s FERC Tariff No 43.7.0. 
 OUTSTANDING AMOUNT SURCHARGE: The transportation
rates include the Outstanding Amount Surcharge (OAS) of $0.422 per cubic metre for movements of heavy crude from Hardisty, Alberta to the U.S. border near Gretna, Manitoba and is adjusted for distance and commodity type. The OAS will be recovered
through tolls for the 24 month period from July 1, 2011 to June 30, 2013. 
 JOINT ROUTING: 

Receipt Points in the provinces of Alberta, Saskatchewan, Manitoba to delivery points in the states of Illinois, Indiana, Michigan, Minnesota

 Enbridge Pipelines Inc. — Edmonton or Hardisty, Alberta, Kerrobert or Regina, Saskatchewan or Cromer, Manitoba to the International
Border near Gretna, Manitoba, connecting to; 
 Enbridge Energy, Limited Partnership — International Border near Neche, North Dakota to
Clearbrook, Minnesota, Superior, Wisconsin, Lockport, Illinois, Mokena, Illinois, Griffith, Indiana, Stockbridge, Michigan, Rapid River, Michigan or Marysville, Michigan. 
 Receipt Points in the provinces of Alberta, Saskatchewan, Manitoba to delivery points in the province of Ontario 
 Enbridge Pipelines Inc. — Edmonton or Hardisty, Alberta, Kerrobert or Regina, Saskatchewan or Cromer, Manitoba to the International Border near Gretna, Manitoba, connecting to; 

Enbridge Energy, Limited Partnership — International Border near Neche, North Dakota to the International Border near Marysville, Michigan,
connecting to; 
 Enbridge Pipelines Inc. — International Border near Sarnia, Ontario to Corunna or Sarnia Terminal, Ontario or Nanticoke,
Ontario. 
 Receipt Points in the provinces of Alberta, Saskatchewan, Manitoba to delivery points in the state of New York 

Enbridge Pipelines Inc. — Edmonton or Hardisty, Alberta, Kerrobert or Regina, Saskatchewan or Cromer, Manitoba to the International Border near
Gretna, Manitoba, connecting to; 
 Enbridge Energy, Limited Partnership — international Border near Neche, North Dakota to the
International Border near Marysville, Michigan, connecting to; 
 Enbridge Pipelines Inc. — International Border near Sarnia Ontario to the
International Border near Chippawa, Ontario, connecting to; 
 Enbridge Energy, Limited Partnership — International Border near Grand
Island, New York to West Seneca, New York. 
 EXCEPTIONS: 
 For exceptions to Enbridge Pipelines Inc., Rules and Regulations and Enbridge Energy, Limited Partnership, Rules and Regulations, see the following: 

 

	1)	 Exception to Enbridge Energy, Limited Partnership’s Rules and Regulations FERC No. 41.1.0 Item 9 (h) and FERC No. No. 42.1.0
Item 10 (i). For the purposes of this international joint tariff, Enbridge Pipelines Inc. shall collect in kind a percentage, in the amount of 1/10th of 1 percent of all hydrocarbons physically delivered at the designated Regular Delivery Point.

  

	2)	Exception to Enbridge Energy, Limited Partnership’s Rules and Regulations FERC No. 41.1.0 Item 7 (a) and FERC No. No. 42.1.0 Item 8 (c).
For the purposes of this international joint tariff, Enbridge Pipelines Inc. shall charge a shipper the rate for the transportation of Crude Petroleum that is in effect on the date of delivery at the designated Regular Delivery Point for such Crude
Petroleum. 

     NEB No. 248 

    Cancels NEB No. 226 
  

 ENBRIDGE PIPELINES INC. 

 
  
 REFINED PETROLEUM PRODUCTS TARIFF 
  

 
 RULES AND REGULATIONS

 Governing the 
 TRANSPORTATION 
 of 

REFINED PETROLEUM PRODUCTS 
  

 

p Denotes changes in wording from NEB No. 226 

 
  
 EFFECTIVE AUGUST 1, 2003 
  

 
  

			
	ISSUED BY	  	
	Richard Bird	  	COMPILED BY
	President	  	Regulatory Affairs Department
	Enbridge Pipelines Inc.	  	Enbridge Pipelines Inc.
	Suite 3000	  	
	425 – 1 Street S.W.	  	Tel.: (403)231-5765
	Calgary, Alberta	  	p Fax.: (403)508-3140
	T2P 3L8	  	p Email: thea.fennema@enbridge.com

     PAGE TWO 

    NEB No. 248 
  

 RULES AND REGULATIONS 

 

	1.	DEFINITIONS 

 As used in
this tariff, the following terms have the following meanings: 
 “API” means American Petroleum Institute.

 “ASTM” means American Society for Testing and Materials. 

“Carrier” means Enbridge Pipelines Inc. 
 “Crude Petroleum” means the direct liquid product of oil wells, oil processing plants, the indirect liquid petroleum products of oil or gas wells, oil sands, or a mixture of such
products, but does not include Natural Gas Liquids or Refined Petroleum Products. 
 “Density” means mass per
unit volume at 15 degrees Celsius expressed in kilograms per cubic metre. 

p “Financial Assurances”
means the financial assurances provided by the Shipper and accepted by the Carrier in accordance 
 with Rule 20. 

“Force Majeure” means an event which is unforeseen and beyond the control of the Shipper that either prevents the Shipper
from delivering the affected volume to Carrier or prevents the Shipper from accepting delivery of the affected volume from Carrier. The following are the only instances that will be recognized as Force Majeure events: earthquakes; floods;
landslides; civil disturbances; sabotage; the acts of public enemies; war; blockades; insurrections; riots; epidemics; the act of any government or other authority or statutory undertaking; the inability to obtain or the curtailment of electric
power, water or fuel; strikes, lockouts or other labour disruptions; fires; explosions; breakdowns or failures of pipe, plant, machinery or equipment; and contamination or poisoning of catalyst and/or solvent or biological treatment facilities. For
greater certainty, a lack of funds; the availability of a more attractive market; Shipper’s inability to purchase Refined Petroleum Products; or inefficiencies in operations do not constitute events of Force Majeure. 

“Kilopascal” is equivalent to 0.145 037 7 pounds per square inch. 

“Natural Gas Liquids” means the indirect liquid petroleum products of oil or gas wells having an absolute vapour pressure
in excess of 103 kilopascals. 
 “NEB” means the National Energy Board. 

“Non-Performance Penalty” means the charge and cost referred to in Rule 19(a). 

“Refined Petroleum Products” means the products of a refinery tendered as motor gasoline, aviation fuels, kerosene,
diesel fuel and domestic heating oil falling within specifications established in the Carrier’s tariff respecting Refined Petroleum Products. 
 “Regular Delivery Point” means a location for the delivery of Refined Petroleum Products as provided for in the Carrier’s tariff for Tolls Applying on Crude Petroleum, Natural Gas
Liquids and Refined Petroleum Products. 
 “Regular Receiving Point” means a location for the receipt of Refined
Petroleum Products as provided for in the Carrier’s tariff for Tolls Applying on Crude Petroleum, Natural Gas Liquids and Refined Petroleum Products. 
 p “Shipper” means the party that contracts with the Carrier for the transportation of Refined Petroleum Products under the
terms of this tariff, and that has satisfied the Carrier of that party’s capacity to perform its financial obligations that may arise from the transportation of its Refined Petroleum Products under the terms of this tariff, and includes a
transferee of a Shipper’s rights and obligations, as approved in accordance with Rule 16(c). 
 “Tender”
means an offer by a Shipper to the Carrier in accordance with this tariff for the transportation of a stated quantity of Refined Petroleum Products from a Regular Receiving Point to a Regular Delivery Point. 

“Working Stock” means the volume of Petroleum required by the Carrier for operational and scheduling purposes as
specified from time to time by the Carrier. 
  
  

 

	2.	COMMODITY 

 This tariff
applies to the transportation of Refined Petroleum Products by the Carrier. 
  

 
  

	3.	ORIGIN AND DESTINATION FACILITIES 

 (a) Subject to the further provisions of this tariff, the Carrier will only accept Refined Petroleum Products for transportation: 
 (i) at Regular Receiving Points; (ii) when the Refined Petroleum Products have been specified to be delivered to one or more Regular Delivery Points; and (iii) when the party taking delivery of
the Refined Petroleum Products has been specified in writing to the Carrier. 
 (b) Except where the Carrier provides such
facilities, the Carrier will only accept Refined Petroleum Products for transportation when the Shipper has provided the necessary facilities satisfactory to the Carrier at the specified Regular Receiving Point and Regular Delivery Point for such
Refined Petroleum Products. 

     PAGE THREE 

    NEB No. 248 
  

 RULES AND REGULATIONS 

 

	4.	SPECIFICATIONS AS TO QUALITY 

 (a) A Shipper shall not deliver to the Carrier and the Carrier shall not be obligated to accept Refined Petroleum Products that, as determined by the Carrier, have on receipt: 

(i) a temperature greater than 38 degrees Celsius; (ii) a Reid vapour pressure in excess of 103 kilopascals; (iii) a free water
HAZE Test of six or greater; (iv) a kinematic viscosity in excess of 4.3 square millimetres per second at 37.8 degrees Celsius; (v) a colour darker than colour No. 3 as specified in accordance with ASTM D 1500 or the latest revision
to such Standard except that gasolines to which artificial colouring has been added will be accepted for transportation regardless of colour; or (vi) physical or chemical characteristics that may render such Refined Petroleum Products not
readily transportable by the Carrier or that may materially affect the quality of other commodities transported by the Carrier or that may otherwise cause disadvantage to the Carrier. 

(b) A Shipper shall, as required by the Carrier, provide to the Carrier a certificate with respect to the specifications of the Refined
Petroleum Products to be received by the Carrier from such Shipper. If a Shipper fails to provide the Carrier with such certificate, then the Carrier shall not be obligated to accept the Shipper’s Refined Petroleum Products. 

(c) A Shipper shall, if requested by the Carrier, provide and inject corrosion inhibitor compound of a type and amount that is
satisfactory to the Carrier into Refined Petroleum Products to be received by the Carrier from such Shipper. 
 (d) If the
Carrier determines that a Shipper does not comply with the provisions of paragraph (a) or (c) of Rule 4 of this tariff, then such Shipper shall remove its Refined Petroleum Products from the facilities of the Carrier as directed by the
Carrier. 
 (e) If a Shipper fails to remove its Refined Petroleum Products from the facilities of the Carrier as directed by the
Carrier, then the Carrier shall have the right to remove and sell such Refined Petroleum Products in such lawful manner as deemed appropriate by the Carrier. The Carrier shall pay from the proceeds of such sale all costs incurred by the Carrier with
respect to the storage, removal and sale of such Refined Petroleum Products. The remainder of such proceeds, if any, shall be held by the Carrier for the Shipper and any other party lawfully entitled to such proceeds. 

 
  
  

	5.	BUFFER AND INTERFACE 

 (a)
A Shipper shall, if requested by the Carrier, supply Petroleum as buffer material of a type and amount that is satisfactory to the Carrier. The Shipper shall, unless otherwise agreed to with the Carrier, accept at the designated Regular Delivery
Point for its Refined Petroleum Products the volume of buffer material determined by the Carrier to be applicable to the transportation of such Refined Petroleum Products. 
 (b) A Shipper shall accept, at the designated Regular Delivery Point for its Refined Petroleum Products, the volume of interface material associated with the transportation of such Refined Petroleum
Products as determined by the Carrier. 
 (c) Except as otherwise provided for in this tariff, the Carrier’s tariff applying
on the transportation of Crude Petroleum shall apply to buffer material transported with Refined Petroleum Products. 
  

 
  

	6.	CHANGES IN QUALITY AND SEGREGATION 

 (a) The Carrier shall endeavour to deliver substantially the same type of Refined Petroleum Products as that received from a Shipper, however the Carrier shall not be obligated to make delivery of the
identical Refined Petroleum Products received by the Carrier. 
 (b) If Refined Petroleum Products tendered to the Carrier are of
a kind or quality that is not currently being transported by the Carrier, then the Carrier shall, at the request of the Shipper of such Refined Petroleum Products and subject to the operating conditions of the facilities of the Carrier, endeavour to
segregate such Refined Petroleum Products during transportation by the Carrier. In such circumstances, the Shipper shall, at the request of the Carrier, make such Refined Petroleum Products available in such quantities and at such times as may be
necessary to permit such segregated movements. 
 (c) Subject to paragraph (a) of Rule 13 of this tariff, the Carrier shall
not be liable for any damage, loss or consequential loss resulting from a change in the density or other quality of a Shipper’s Refined Petroleum Products as a result of the Carrier’s transportation of such Refined Petroleum Products,
including without limitation the mixing of Refined Petroleum Products with other Petroleum in the facilities of the Carrier. 

     PAGE FOUR 

    NEB No. 248 
  

 RULES AND REGULATIONS 

 

	7.	TENDERS, RATES AND VOLUMES 

(a) Tenders shall be submitted to the Carrier in accordance with the notice of shipment format prescribed by the Carrier no later than the
time and date set out in the Carrier’s monthly nomination schedule. The Carrier shall notify all shippers of the monthly nomination schedule applicable for the calendar year. Notice of any amendment to a monthly nomination date shall be
provided by the Carrier to all shippers at minimum 24 hours in advance of the proposed change in nomination date. 
 (b) Where
applicable, such Tenders shall include the amounts of Petroleum to be used as buffer material with such Refined Petroleum Products. The Carrier may, subject to the availability of space and the operating conditions of the facilities of the Carrier,
accept Tenders or revised Tenders after such time. 
 (c) A Shipper shall, upon notice from the Carrier, provide written third
party verification as required by the Carrier in support of such Shipper’s Tender. The Carrier shall not be obligated to accept a Shipper’s Refined Petroleum Products where such verification is, in the sole discretion of the Carrier,
unacceptable to the Carrier. 
 (d) The Carrier shall not be obligated to accept a Shipper’s Refined Petroleum Products if
the volume of such Refined Petroleum Products is less than the minimum volume or if the rate at which such Refined Petroleum Products are received by the Carrier is less than or greater than the rates specified from time to time by the Carrier for
each Regular Receiving Point. 
 (e) The Carrier shall not be obligated to make a delivery of a Shipper’s Refined Petroleum
Products of less than the minimum volume or at a rate less than or greater than the rates specified from time to time by the Carrier for each Regular Delivery Point. 
 (f) A Shipper shall supply its share of Working Stock by types and volumes as determined from time to time by the Carrier. 
 (g) Tenders received by the Carrier acting for Enbridge Energy, Limited Partnership for transportation within the United States of America shall be subject to the rates, rules and regulations applicable
to transportation by Enbridge Energy, Limited Partnership, which shall invoice the Shipper for such transportation. 
  

 
  

	8.	APPLICATION OF TOLLS 

 (a)
The Carrier shall charge a Shipper the Carrier’s toll for the transportation of Refined Petroleum Products on the volume of Refined Petroleum Products transported by the Carrier. 

(b) The Carrier shall charge a Shipper, on the volume of buffer material transported with such Shipper’s Refined Petroleum Products,
the Carrier’s toll for the transportation of Crude Petroleum. 
 (c) The Carrier shall charge a Shipper the Carrier’s
toll for the transportation of Refined Petroleum Products and the Carrier’s toll for the transportation of Crude Petroleum that are in effect on the date of delivery at the designated Regular Delivery Point for such Shipper’s Refined
Petroleum Products. 
  
  

 

	9.	PAYMENT OF TOLLS AND LIEN FOR UNPAID CHARGES 

 p(a) A Shipper shall pay all charges and costs as provided for in this tariff or otherwise lawfully due to the Carrier relating to the transportation of
the Shipper’s Refined Petroleum Products by the Carrier. The Shipper shall pay such charges and costs upon receipt of the Carrier’s invoice respecting such charges and costs. If required by the Carrier, the Shipper shall pay such charges
and costs before delivery, or before acceptance of a transfer, of the Shipper’s Refined Petroleum Products by the Carrier. 

p(b) The Carrier shall have a general lien on all of a Shipper’s Refined
Petroleum Products that are in the possession of the Carrier to secure the payment of all charges and costs accruing or due relating to the transportation of the Shipper’s Refined Petroleum Products by the Carrier. The general lien provided
herein shall be in addition to any lien or security interest otherwise provided by law or contract. The Carrier may withhold the Shipper’s Refined Petroleum Products from delivery, and may exercise any other rights and remedies provided at law
or by contract, until all such charges and costs have been paid. 
 (c) If charges for the transportation of a Shipper’s
Petroleum remain unpaid for ten days after notice of demand for payment of such charges is made to such Shipper by the Carrier, then the Carrier shall have the right to remove and sell any or all of such Shipper’s Refined Petroleum Products
that are in the possession of the Carrier in such lawful manner as deemed appropriate by the Carrier. 
 (d) The Carrier shall
pay from the proceeds of such sale all charges and costs accruing or due relating to the transportation of such Shipper’s Refined Petroleum Products by the Carrier and all costs incurred by the Carrier with respect to the storage, removal and
sale of such Shipper’s Petroleum. The remainder of such proceeds, if any, shall be held by the Carrier for the Shipper and any other party lawfully entitled to such proceeds. 

p(e) When required, the Carrier shall, with or without notice to the Shipper, appoint
agent(s) to retain possession of the Shipper’s Refined Petroleum Products on behalf of the Carrier for the purpose of enforcing the general lien described in this Rule. The Carrier hereby advises that it has appointed Enbridge Energy, Limited
Partnership as one agent appointed to hold possession of the Shipper’s Refined Petroleum Products for the purpose of enforcing its general lien. 

     PAGE FIVE 

    NEB No. 248 
  

 RULES AND REGULATIONS 

 

	10.	MEASURING, TESTING AND DEDUCTIONS 

 (a) The Carrier shall gauge or meter, or cause to be gauged or metered, a Shipper’s Refined Petroleum Products upon receipt and delivery by the Carrier. The Shipper or the designate of the Shipper
may be present at such gauging or metering. If tank gauges are used, the volume of Refined Petroleum Products shall be computed from tank tables on a 100 percent volume basis. The Carrier shall have the right to enter the premises where Refined
Petroleum Products are received or delivered by the Carrier and shall be granted access to all facilities for the purpose of gauging or metering and to make any examination, inspection, measurement or test as required by the Carrier to verify the
accuracy of such facilities and the quality of such Shipper’s Refined Petroleum Products. 
 (b) The Carrier shall correct
the density and volume of Refined Petroleum Products received and delivered by the Carrier from the actual temperature of such Refined Petroleum Products to 15 degrees Celsius by use of API 2540 Petroleum Measurement Standards or the latest revision
to such Standards. 
 (c) The Carrier shall correct the metered volume of Refined Petroleum Products for compressibility by the
use of API Manual of Petroleum Measurement Standards, Chapter 11.2.1 M or the latest revision to such Chapter. 
 (d) The Carrier
shall, as deemed necessary by the Carrier, determine the kinematic viscosity of Refined Petroleum Products received by the Carrier in accordance with ASTM D 445 or the latest revision to such standard or such other test as may be agreed to by the
Carrier and the Shipper. 
 (e) The results of all such gauging, metering and testing by the Carrier shall be final. 

 
  
  

	11.	EVIDENCE OF RECEIPTS AND DELIVERIES 

 The Carrier shall evidence the receipt and delivery of Refined Petroleum Products by tickets showing the volume, type, temperature, density and any other data with respect to such Refined Petroleum
Products as may be specified from time to time by the Carrier. Such tickets shall be signed by the Shipper, or the designate of the Shipper, and the Carrier. 
  

 
  

	12.	DELIVERY AND ACCEPTANCE 

(a) A Shipper or the designate of the Shipper shall accept such Shipper’s Refined Petroleum Products upon arrival at the designated
Regular Delivery Point for such Refined Petroleum Products. 
 (b) If a Shipper fails to remove its Refined Petroleum Products
from the facilities of the Carrier in accordance with the provisions of paragraph (a) of Rule 12 of this tariff, then the Carrier shall have the right to remove and sell such Refined Petroleum Products in such lawful manner as deemed
appropriate by the Carrier. The Carrier shall pay from the proceeds of such sale all costs incurred by the Carrier with respect to the storage, removal and sale of such Refined Petroleum Products. The remainder of such proceeds, if any, shall be
held by the Carrier for the Shipper and any other party lawfully entitled to such proceeds. 
  

 
  

	13.	LIABILITY OF THE CARRIER 

(a) Except where caused by the direct negligence of the Carrier, the Carrier shall not be liable to a Shipper for any delay, damage, loss
or consequential loss resulting from any cause while the Carrier is in possession or control of such Shipper’s Refined Petroleum Products, including without limitation the breakdown of the facilities of the Carrier. 

(b) If damage or loss to Petroleum results from any cause other than the direct negligence of the Carrier while the Carrier is in
possession or control of such Petroleum then the Carrier may apportion the cost of such damage or loss on a pro rata basis among all Shippers. Each Shipper’s share of such cost shall be determined by the Carrier based on the proportion of the
volume of the Shipper’s Refined Petroleum Products in the possession of the Carrier on the date of such loss to the total volume of Petroleum in the possession of the Carrier on the date of such loss. 

 
  
  

	14.	INDEMNIFICATION BY THE SHIPPER 

 A Shipper shall indemnify the Carrier for any damage, loss, costs or consequential loss incurred by the Carrier or any other party as a result of such Shipper’s failure to comply with any provision
of this tariff. 
  
  

 

	15.	APPORTIONMENT AND SUBSTITUTION 

 (a) If more Refined Petroleum Products, Natural Gas Liquids and associated buffer material are tendered than can be transported by the Carrier, then the Carrier shall apportion such tenders among all such
Shippers on the basis of such current tenders and the current operating conditions of the facilities of the Carrier applicable to the transportation of Refined Petroleum Products and Natural Gas Liquids. 

(b) Subject to allocations to priority destinations designated by the NEB, the Carrier shall apportion each such Shipper a pro rata share
of the capacity of such facilities of the Carrier based on such current tenders. 

     PAGE SIX 

    NEB No. 248 
  

 RULES AND REGULATIONS 

 

	16.	REQUESTED CHANGE BY THE SHIPPER 

 (a) Subject to the operating conditions of the facilities of the Carrier, the Carrier may, upon the written request of a Shipper, allow a Shipper to change: 

(i) the designated Regular Receiving Point for its Refined Petroleum Products; (ii) the designated volume and type of its Refined
Petroleum Products to be received at a designated Regular Receiving Point; (iii) the designated Regular Delivery Point for its Refined Petroleum Products; (iv) the designated volume and type of its Refined Petroleum Products to be
delivered to a designated Regular Delivery Point; and (v) the party designated to take delivery of its Refined Petroleum Products. 
 (b) The Carrier may allow a Shipper to transfer, in such manner as may be specified by the Carrier from time to time, such Shipper’s rights and obligations under this tariff respecting its Refined
Petroleum Products to another Shipper. 
 p(c) A transfer of a Shipper’s
rights and obligations under Rule 16(b) of this tariff respecting its Refined Petroleum Products will not be binding or effective on the Carrier until the Carrier has provided a notice of acceptance to the transferor and transferee. The Carrier will
not provide a notice of acceptance of a transfer until such time as the transferee has satisfied the Carrier of its capacity to undertake the transferor’s obligations and has provided any Financial Assurances requested by the Carrier in
accordance with Rule 20 of this tariff. 
  
  

 

	17.	ADVERSE CLAIMS AGAINST REFINED PETROLEUM PRODUCTS 

 (a) A Shipper shall not Tender or deliver to the Carrier Refined Petroleum Products which are involved in litigation, the ownership of which may be in dispute or which are encumbered by a lien or charge
of any kind unless the Shipper provides written notification to the Carrier of such litigation, dispute, lien or charge not less than 20 days before such Tender is made to the Carrier. 

(b) The Carrier shall not be obligated to accept Refined Petroleum Products that are involved in litigation, the ownership of which may be
in dispute or which are encumbered by a lien or charge of any kind. 
 (c) A Shipper shall advise the Carrier in writing if, at
any time while the Shipper’s Refined Petroleum Products are in the possession of the Carrier, such Refined Petroleum Products become involved in litigation, the ownership of such Refined Petroleum Products become in dispute or such Refined
Petroleum Products become encumbered by a lien or charge of any kind. 
 (d) A Shipper shall, upon demand from the Carrier,
provide a bond or other form of indemnity satisfactory to the Carrier protecting the Carrier against any liability or loss that may arise as a result of such Shipper’s Refined Petroleum Products that are involved in litigation, the ownership of
which may be in dispute or which are encumbered by a lien or charge of any kind. 
  

 
  

	18.	CLAIMS, SUITS AND TIME FOR FILING 

 (a) A Shipper shall advise the Carrier in writing of any claim for delay, damage or loss resulting from the transportation of such Shipper’s Refined Petroleum Products by the Carrier within 30 days
of delivery of such Refined Petroleum Products by the Carrier or, in the case of a failure to make delivery, then within 30 days after a reasonable time for delivery has elapsed. 

(b) A Shipper shall institute any action arising out of any claim against the Carrier within 180 days from the date that written notice is
given by the Carrier to such Shipper that the Carrier has disallowed such claim or any part of such claim. 
 (c) If a Shipper
fails to comply with the provisions of paragraph (a) or paragraph (b) of Rule 18 of this tariff, then such Shipper waives all rights it has to bring an action against the Carrier with respect to such claim. 

 
  
  

	19.	NON-PERFORMANCE 

 (a) In
months of apportionment, all nominations which are apportioned shall have the Non-Performance Penalty applied to that portion of shortfall in receipts by a Shipper that exceeds five (5) percent of that Shipper’s apportioned volume.
However, the Non-Performance Penalty will not be applied to that portion of shortfalls caused by Force Majeure events; Carrier imposed restrictions on feeder pipeline deliveries into the Carrier; or any carry over volumes. 

(b) The Shipper shall provide the Carrier with written notice of the Force Majeure event within four business days of the event. Such
notice shall state the nature of the event, the estimated duration of the event, and the volume affected. The Shipper shall use reasonable diligence to remedy the Force Majeure event as quickly as reasonably practicable and shall keep Carrier
informed as to the progress in the efforts to remedy the event; provided the Shipper shall not be required to settle strikes, lockouts or other labour disruptions contrary to its wishes. 

(c) At any time up to thirty (30) calendar days following the receipt of the notice referred to in Rule 19(b) the Carrier will issue
written notice to the Shipper informing the Shipper in the event the Carrier disputes all or a portion of the Shipper’s claim of Force Majeure. The Carrier shall invoice the Shipper for the amount of the Non-Performance Penalty calculated in
accordance with Rule 19(a) and the Shipper shall be obligated to make payment of the invoiced amount. 
 (d) The Carrier shall
publish, on at least a monthly basis, a summary of all Force Majeure notices issued pursuant to Rule 19(b) and 19(c), which shall contain only the name of the Shipper claiming Force Majeure, volume affected, the amount of the Non- Performance
Penalty disputed and/or undisputed, and the status of all disputed claims. 

     PAGE SEVEN 

    NEB No. 248 
  

 RULES AND REGULATIONS 

 

	p20.	FINANCIAL ASSURANCES 

 (a)
At any time, upon the request of the Carrier, any prospective or existing Shipper shall provide information to the Carrier that will allow the Carrier to determine the prospective or existing Shipper’s capacity to perform any financial
obligations that could arise from the transportation of that Shipper’s Refined Petroleum Products under the terms of this tariff, including the payment of transportation charges, equalization obligations and the value of the allowance oil and
negative Shipper’s balance positions. The Carrier shall not be obligated to accept Refined Petroleum Products for transportation from an existing or prospective Shipper if the Shipper or prospective Shipper fails to provide the requested
information to the Carrier within ten (10) days of the Carrier’s written request, or if the Carrier’s review of the requested information reveals that the existing or prospective Shipper does not have the capacity to perform any
financial obligations that could arise from the transportation of that Shipper’s Refined Petroleum Products under the terms of this tariff, including the payment of transportation charges, equalization obligations and the reasonably determined
value of the allowance oil and negative Shipper’s balance positions. 
 (b) Subject to the provisions of Rule 20(c), the
Carrier, upon notice to the Shipper, may only require one or more of the following Financial Assurances for the payment of all charges and costs as provided for in this tariff, or otherwise lawfully due to the Carrier, to be provided at the expense
of the Shipper: 
 (i) prepayment; (ii) a letter of credit in favour of Carrier in an amount sufficient to ensure payment of
all costs and charges that could reasonably accrue due to the Carrier, in a form and from an institution acceptable to Carrier; (iii) a guarantee in an amount sufficient to ensure payment of all such costs and charges that could reasonably
accrue due to the Carrier, in a form and from a third party acceptable to Carrier; or (iv) such other enforceable collateral security, including but not limited to security agreements over assets of the Shipper, in a form acceptable to the
Carrier (the “Financial Assurances”). 
 (c) In the event that the Carrier reasonably determines that: 

(i) the existing or prospective Shipper’s financial condition is or has become impaired or unsatisfactory; (ii) any Financial
Assurances previously provided by a Shipper no longer provide adequate security for the performance of the Shipper’s obligations that could arise from the transportation of its Refined Petroleum Products under the terms of this tariff; or
(iii) the Carrier otherwise determines that it is necessary to obtain Financial Assurances from the Shipper, 
 then the
Shipper shall provide Financial Assurances for the payment of the charges and costs as provided for in this tariff or otherwise lawfully due to the Carrier relating to the transportation of the Shipper’s Refined Petroleum Products by the
Carrier. For the purpose of this tariff, and without limiting the generality of the charges and costs lawfully due to the Carrier relating to the transportation of the Shipper’s Refined Petroleum Products, those charges and costs shall include
transportation charges, equalization obligations, negative Shipper’s balance positions and the allowance oil. The Carrier shall not be obligated to accept Refined Petroleum Products for transportation from an existing or prospective Shipper if
the Shipper or prospective Shipper fails to deliver the Financial Assurances to Carrier within ten (10) days of Shipper’s receipt of Carrier’s written request for such Financial Assurances. 

 NEB No. 260 
 Cancels NEB No. 256 
 ENBRIDGE PIPELINES INC. 

 
  
 NATURAL GAS LIQUIDS TARIFF 
  

 
 RULES AND REGULATIONS

 Governing the 
 TRANSPORTATION 
 of 

NATURAL GAS LIQUIDS 
  

 

p Denotes changes in wording from NEB No. 256 

 
  
 EFFECTIVE: JANUARY 16, 2004 
  

 
  

			
	 ISSUED BY
 Richard Bird
 President

Enbridge Pipelines Inc.
	  	 COMPILED BY
 Regulatory Affairs Department
 Enbridge Pipelines Inc.

	 Suite 3000
 425 – 1 Street S.W.
 Calgary, Alberta

T2P 3L8
	  	 Tel.: (403)231-5907
 Fax: (403)508-3140
 email: linda.coyle@enbridge.com

     PAGE TWO 

    NEB No. 260 
  

 RULES AND REGULATIONS 

 

	1.	DEFINITIONS 

 As used in
this tariff, the following terms have the following meanings: 
 “API” means American Petroleum Institute.

 “ ASTM” means American Society for Testing and Materials. 

“Carrier” means Enbridge Pipelines Inc. 
 “Crude Petroleum” means the direct liquid product of oil wells, oil processing plants, the indirect liquid petroleum products of oil or gas wells, oil sands, or a mixture of such
products, but does not include Natural Gas Liquids or Refined Petroleum Products. 
 “Density” means mass per
unit volume at 15 degrees Celsius expressed in kilograms per cubic metre. 
 “Financial Assurances” means the
financial assurances provided by the Shipper and accepted by the Carrier in accordance with Rule 21. 
 “Force
Majeure” means an event which is unforeseen and beyond the control of the Shipper that either prevents the Shipper from delivering the affected volume to Carrier or prevents the Shipper from accepting delivery of the affected volume from
Carrier. The following are the only instances that will be recognized as Force Majeure events: earthquakes; floods; landslides; civil disturbances; sabotage; the acts of public enemies; war; blockades; insurrections; riots; epidemics; the act of any
government or other authority or statutory undertaking; the inability to obtain or the curtailment of electric power, water or fuel; strikes, lockouts or other labour disruptions; fires; explosions; breakdowns or failures of pipe, plant, machinery
or equipment; and contamination or poisoning of catalyst and/or solvent or biological treatment facilities. For greater certainty, a lack of funds; the availability of a more attractive market; Shipper’s inability to purchase NGL; or
inefficiencies in operations do not constitute events of Force Majeure. 

p “Kind” means for the purposes of Rule 4, any individual
component or mixture of propane, normal butane, iso-butane, and condensates, as the case may be, having an absolute vapour pressure of greater than 103 kilopascals and less than 1250 kilopascals at 37.8 degrees Celsius. 

“Natural Gas Liquids” means the indirect liquid petroleum products of oil or gas wells having an absolute vapour pressure
in excess of 103 kilopascals. 
 “NEB” means the National Energy Board. 

“NGL” means Natural Gas Liquids. 
 “Non-Performance Penalty” means the charge and cost referred to in Rule 19(a). 
 “Petroleum” means Crude Petroleum, Natural Gas Liquids and Refined Petroleum Products. 
 “Refined Petroleum Products” means the products of a refinery tendered as motor gasoline, aviation fuels, kerosene, diesel fuel and domestic heating oil falling within specifications
established in the Carrier’s tariff respecting Refined Petroleum Products. 
 “Regular Delivery Point”
means a location for the delivery of Natural Gas Liquids as provided for in the Carrier’s tariff for Tolls Applying on Crude Petroleum, Natural Gas Liquids and Refined Petroleum Products. 

“Regular Receiving Point” means a location for the receipt of Natural Gas Liquids as provided for in the Carrier’s
tariff for Tolls Applying on Crude Petroleum, Natural Gas Liquids and Refined Petroleum Products. 
 “Shipper”
means the party that contracts with the Carrier for the transportation of Natural Gas Liquids under the terms of this tariff, and that has satisfied the Carrier of that party’s capacity to perform its financial obligations that may arise
from the transportation of its NGL under the terms of this tariff, and includes a transferee of a Shipper’s rights and obligations, as approved in accordance with Rule 16(c). 

“Tender” means an offer by a Shipper to the Carrier in accordance with this tariff for the transportation of a stated
quantity of Natural Gas Liquids from a Regular Receiving Point to a Regular Delivery Point. 
 “Working Stock”
means the volume of Petroleum required by the Carrier for operational and scheduling purposes as specified from time to time by the Carrier. 
  

 
  

	2.	COMMODITY 

 This tariff
applies to the transportation of NGL by the Carrier. 
  
  

 

	3.	ORIGIN AND DESTINATION FACILITIES 

 (a) Subject to the further provisions of this tariff, the Carrier will only accept NGL for transportation: 
 (i) at Regular Receiving Points; (ii) when the NGL has been specified to be delivered to one or more Regular Delivery Points; and (iii) when the party taking delivery of the NGL has been
specified in writing to the Carrier. 
 (b) Except where the Carrier provides such facilities, the Carrier will only accept NGL
for transportation when the Shipper has provided the necessary facilities or evidence of other arrangements satisfactory to the Carrier, at the specified Regular Receiving Points and Regular Delivery Points for such NGL, associated buffer and
interface material. 

     PAGE THREE 

    NEB No. 260 
  

 RULES AND REGULATIONS 

 

	4.	SPECIFICATIONS AS TO QUALITY 

 (a) A Shipper shall not deliver to the Carrier and the Carrier shall not be obligated to accept NGL that, as determined by the Carrier, has on receipt at each Regular Receiving Point: 

p (i) a composition that does not meet the definition of Kind;
(ii) a temperature greater than 38 degrees Celsius; (iii) an absolute vapour pressure in excess of 1250 kilopascals at 37.8 degrees Celsius; (iv) a copper strip corrosion in excess of 2a; (v) a particulate concentration greater
than 5 milligrams per litre; (vi) indication of free water at the Carrier’s pipeline operating temperatures; (vii) any organic chlorides; or (viii) physical or chemical characteristics that may render such NGL not readily
transportable by the Carrier or that may materially affect the quality of other commodities transported by the Carrier or that may otherwise cause disadvantage to the Carrier. 
 (b) A Shipper shall, if requested by the Carrier, provide and inject corrosion inhibitor compound of a type and amount that is satisfactory to the Carrier into NGL to be received by the Carrier from such
Shipper. 
 (c) If the Carrier determines that a Shipper does not comply with the provisions of paragraph (a) or (b) of
Rule 4 of this tariff, then such Shipper shall remove its NGL from the facilities of the Carrier as directed by the Carrier. 

(d) If a Shipper fails to remove its NGL from the facilities of the Carrier as directed by the Carrier, then the Carrier shall have the
right to remove and sell such NGL in such lawful manner as deemed appropriate by the Carrier. The Carrier shall pay from the proceeds of such sale all costs incurred by the Carrier with respect to the storage, removal and sale of such NGL. The
remainder of such proceeds, if any, shall be held by the Carrier for the Shipper and any other party lawfully entitled to such proceeds. 
  

 
  

	5.	BUFFER AND INTERFACE 

 (a)
A Shipper shall, if requested by the Carrier, supply Petroleum as buffer material of a type and amount that is satisfactory to the Carrier. The Shipper shall accept at Regular Delivery Points satisfactory to the Carrier the volume of buffer and
interface materials applicable to the transportation of tendered NGL as determined by the Carrier. 
 (b) Except as otherwise
provided for in this tariff, the Carrier’s tariff applying on the transportation of Crude Petroleum shall apply to buffer material transported with NGL. 
  

 
  

	6.	COMMON STREAM SERVICE 

(a) NGL accepted for transportation is subject to changes in composition and quality while in transit due to, without limitation, the
mixing with other NGL or mixing with other Petroleum in the facilities of the Carrier or facilities of a third party. Delivery shall be made to the Shipper out of a common stream of NGL at Regular Delivery Points. Carrier shall at no time be under
any obligation to provide to a Shipper individual batch segregated transportation service. 
 (b) Subject to paragraph
(a) of Rule 13 of this Tariff, the Carrier shall not be liable for any damage, loss or consequential loss resulting from discoloration, contamination, or deterioration of NGL including, but not limited to, change in density, vapour pressure,
quantity or value as may result from its mixture while in transit with other NGL or Petroleum in the facilities of the Carrier or facilities of a third party. 
  

 
  

	7.	TENDERS, RATES AND VOLUMES 

(a) Tenders shall be submitted to the Carrier in accordance with the notice of shipment format prescribed by the Carrier no later than the
time and date set out in the Carrier’s monthly nomination schedule. The Carrier shall notify all shippers of the monthly nomination schedule applicable for the calendar year. Notice of any amendment to a monthly nomination date shall be
provided by the Carrier to all shippers at minimum 24 hours in advance of the proposed change in nomination date. 
 (b) Where
applicable, such Tenders shall include the amounts of Petroleum to be used as buffer material with such NGL. The Carrier may, subject to the availability of space and the operating conditions of the facilities of the Carrier, accept Tenders or
revised Tenders after such time. 
 (c) A Shipper shall, upon notice from the Carrier, provide written third party verification
as required by the Carrier in support of such Shipper’s Tender. The Carrier shall not be obligated to accept a Shipper’s NGL where such verification is, in the sole discretion of the Carrier, unacceptable to the Carrier. 

(d) The Carrier shall not be obligated to accept a Shipper’s NGL if the volume of such NGL is less than the minimum volume or if the
rate at which such NGL is received by the Carrier is less than or greater than the rates specified from lime to time by the Carrier for each Regular Receiving Point. 
 (e) The Carrier shall not be obligated to make a delivery of a Shipper’s NGL of less than the minimum volume or at a rate less than or greater than the rates specified from time to time by the
Carrier for each Regular Delivery Point. 

     PAGE FOUR 

    NEB No. 260 
  

 RULES AND REGULATIONS 

 

	7.	TENDERS, RATES AND VOLUMES (CONTINUED) 

 (f) A Shipper shall supply its share of Working Stock by types and volumes as determined from time to time by the Carrier. 
 (g) Tenders received by the Carrier acting for Enbridge Energy, Limited Partnership for transportation within the United States of America shall be subject to the rates, rules and regulations applicable
to transportation by Enbridge Energy, Limited Partnership, which shall invoice the Shipper for such transportation. 
  

 
  

	8.	APPLICATION OF TOLLS 

 (a)
The Carrier shall charge a Shipper the Carrier’s toll for the transportation of NGL on the volume of NGL transported by the Carrier and the volume of Petroleum blended with such NGL. 

(b) The Carrier shall charge a Shipper, on the volume of buffer material transported with such Shipper’s NGL, the Carrier’s toll
for the transportation of Crude Petroleum. 
 (c) The Carrier shall charge a Shipper the Carrier’s toll for the
transportation of NGL and the Carrier’s toll for the transportation of Crude Petroleum that are in effect on the date of delivery at the designated Regular Delivery Point for such Shipper’s NGL. If the designated delivery location for a
Shipper’s NGL is a designated Regular Delivery Point of Enbridge Energy, Limited Partnership, then the Carrier shall charge such Shipper the Carrier’s toll for the transportation of NGL and the Carrier’s applicable toll for the
transportation of Crude Petroleum that are in effect on the date of such delivery. 
  

 
  

	9.	PAYMENT OF TOLLS AND LIEN FOR UNPAID CHARGES 

 (a) A Shipper shall pay all charges and costs as provided for in this tariff, or otherwise lawfully due to the Carrier, relating to the transportation of the Shipper’s NGL by the Carrier. The Shipper
shall pay such charges and costs upon receipt of the Carrier’s invoice respecting such charges and costs. If required by the Carrier, the Shipper shall pay such charges and costs before delivery, or before acceptance of a transfer, of the
Shipper’s NGL by the Carrier. 
 (b) The Carrier shall have a general lien on all of a Shipper’s NGL that is in the
possession of the Carrier to secure the payment of all charges and costs accruing or due relating to the transportation of the Shipper’s NGL by the Carrier. The general lien provided herein shall be in addition to any lien or security interest
otherwise provided by law or contract. The Carrier may withhold the Shipper’s NGL from delivery, and may exercise any other rights and remedies provided at law or by contract, until all such charges and costs have been paid. 

(c) If charges for the transportation of a Shipper’s Petroleum remain unpaid for ten days after notice of demand for payment of such
charges is made to such Shipper by the Carrier, then the Carrier shall have the right to remove and sell any or all of such Shipper’s NGL that is in the possession of the Carrier in such lawful manner as deemed appropriate by the Carrier.

 (d) The Carrier shall pay from the proceeds of such sale all charges and costs accruing or due relating to the transportation
of such Shipper’s Petroleum by the Carrier and all costs incurred by the Carrier with respect to the storage, removal and sale of such Shipper’s NGL. The remainder of such proceeds, if any, shall be held by the Carrier for the Shipper and
any other party lawfully entitled to such proceeds. 
 (e) When required, the Carrier shall, with or without notice to the
Shipper, appoint agent(s) to retain possession of the Shipper’s NGL on behalf of the Carrier for the purpose of enforcing the general lien described in this Rule. The Carrier hereby advises that it has appointed Enbridge Energy, Limited
Partnership as one agent appointed to hold possession of the Shipper’s NGL for the purpose of enforcing its general lien. 
  

 
  

	10.	MEASURING, TESTING AND DEDUCTIONS 

 (a) The Carrier shall meter, or cause to be metered, a Shipper’s NGL upon receipt and delivery by the Carrier. The Shipper or the designate of the Shipper may be present at such metering. The Carrier
shall have the right to enter the premises where NGL is received or delivered by the Carrier and shall be granted access to all facilities for the purpose of metering and to make any examination, inspection, measurement or test as required by the
Carrier to verify the accuracy of such facilities and the quality of such Shipper’s NGL. 
 (b) The Carrier shall correct
the density and volume of NGL received and delivered by the Carrier from the actual temperature of such NGL to 15 degrees Celsius by use of ASTM-IP Petroleum Measurement Tables 53 and 54, Metric Edition, or the latest revision to such Tables.

 (c) The Carrier shall correct the metered volume of NGL for compressibility by the use of API Manual of Petroleum Measurement
Standards, Chapter 11.2.2 M or the latest revision to such Chapter. 
 (d) The Carrier shall determine the equilibrium vapour
pressure of NGL as required by the Carrier for volume corrections. 
 (e) The Carrier shall determine the absolute vapour
pressure of NGL by the use of ASTM D 1267 or the latest revision to such Standard. 

 PAGE FIVE 
 NEB No. 260 
 RULES AND REGULATIONS 

 

	10.	MEASURING, TESTING AND DEDUCTIONS (CONTINUED) 

  

 (f) The Carrier shall, as deemed necessary by the Carrier, adjust the measured volume of
NGL for shrinkage resulting from the 
 blending or other addition of Crude Petroleum with NGL in accordance with API Bulletin
2509 C or the latest revision to such 
 Bulletin. 
 (g) The Carrier shall determine the copper strip corrosion of NGL by the use of ASTM D 1838 or the latest revision to such 
 Standard. 
 (h) The results of all such metering and testing by the Carrier shall
be final. 
  
  

 

	11.	EVIDENCE OF RECEIPTS AND DELIVERIES 

 The Carrier shall evidence the receipt and delivery of NGL by tickets showing the volume, type, temperature, vapour and meter pressure, density and any other data with respect to such NGL as may be
specified from time to time by the Carrier. Such tickets shall be signed by the Shipper, or the designate of the Shipper, and the Carrier. 
  

 
  

	12.	DELIVERY AND ACCEPTANCE 

(a) A Shipper or the designate of the Shipper shall accept such Shipper’s NGL upon arrival at the designated Regular Delivery Point
for such NGL. 
 (b) If a Shipper fails to remove its NGL from the facilities of the Carrier in accordance with the provisions of
paragraph (a) of Rule 12 of this tariff, then the Carrier shall have the right to remove and sell such NGL in such lawful manner as deemed appropriate by the Carrier. The Carrier shall pay from the proceeds of such sale all costs incurred by
the Carrier with respect to the storage, removal and sale of such NGL. The remainder of such proceeds, if any, shall be held by the Carrier for the Shipper and any other party lawfully entitled to such proceeds. 

 
  
  

	13.	LIABILITY OF THE CARRIER 

(a) Except where caused by the direct negligence of the Carrier, the Carrier shall not be liable to a Shipper for any delay, damage, loss
or consequential loss resulting from any cause while the Carrier is in possession or control of such Shipper’s NGL, including without limitation the breakdown of the facilities of the Carrier. 

(b) If damage or loss to Petroleum results from any cause other than the direct negligence of the Carrier while the Carrier is in
possession or control of such Petroleum, then the Carrier may apportion the cost of such damage or loss on a pro rata basis among all Shippers. Each Shipper’s share of such cost shall be determined by the Carrier based on the proportion of the
volume of the Shipper’s NGL in the possession of the Carrier on the date of such loss to the total volume of Petroleum in the possession of the Carrier on the date of such loss. 

 
  
  

	14.	INDEMNIFICATION BY THE SHIPPER 

 A Shipper shall indemnify the Carrier for any damage, loss, costs or consequential loss incurred by the Carrier or any other party as a result of such Shipper’s failure to comply with any provision
of this tariff. 
  
  

 

	15.	APPORTIONMENT AND SUBSTITUTION 

 (a) If more Refined Petroleum Products, Natural Gas Liquids and associated buffer material are tendered than can be transported by the Carrier, then the Carrier shall apportion such tenders among all such
Shippers on the basis of such current tenders and the current operating conditions of the facilities of the Carrier applicable to the transportation of Refined Petroleum Products and Natural Gas Liquids. 

(b) Subject to allocations to priority destinations designated by the NEB, the Carrier shall apportion each such Shipper a pro rata share
of the capacity of such facilities of the Carrier based on such current tenders. 
  

 
  

	16.	REQUESTED CHANGE BY THE SHIPPER 

 (a) Subject to the operating conditions of the facilities of the Carrier, the Carrier may, upon the written request of a Shipper, allow a Shipper to change: 

(i) the designated Regular Receiving Point for its NGL; (ii) the designated volume of its NGL to be received at a designated Regular
Receiving Point; (iii) the designated Regular Delivery Point for its NGL; (iv) the designated volume of its NGL to be delivered to a designated Regular Delivery Point; and (v) the party designated to take delivery of its NGL.

 (b) The Carrier may allow a Shipper to transfer, in such manner as may be specified by the Carrier from time to time, such
Shipper’s rights and obligations under this tariff respecting its NGL to another Shipper. 

 PAGE SIX 
 NEB No. 260 
 RULES AND REGULATIONS 

 

	16.	REQUESTED CHANGE BY THE SHIPPER (CONTINUED) 

  

 (c) A transfer of a Shipper’s rights and obligations under Rule 16(b) of this
tariff respecting its NGL will not be binding or effective on the Carrier until the Carrier has provided a notice of acceptance to the transferor and transferee. The Carrier will not provide a notice of acceptance of a transfer until such time as
the transferee has satisfied the Carrier of its capacity to undertake the transferor’s obligations and has provided any Financial Assurances requested by the Carrier in accordance with Rule 21 of this tariff. 

 
  
  

	17.	ADVERSE CLAIMS AGAINST NGL 

(a) A Shipper shall not Tender or deliver to the Carrier NGL which is involved in litigation, the ownership of which may be in dispute or
which is encumbered by a lien or charge of any kind unless the Shipper provides written notification to the Carrier of such litigation, dispute, lien or charge not less than 20 days before such Tender is made to the Carrier. 

(b) The Carrier shall not be obligated to accept NGL that is involved in litigation, the ownership of which may be in dispute or which is
encumbered by a lien or charge of any kind. 
 (c) A Shipper shall advise the Carrier in writing if, at any time while the
Shipper’s NGL is in the possession of the Carrier, such NGL becomes involved in litigation, the ownership of such NGL becomes in dispute or such NGL becomes encumbered by a lien or charge of any kind. 

(d) A Shipper shall, upon demand from the Carrier, provide a bond or other form of indemnity satisfactory to the Carrier protecting the
Carrier against any liability or loss that may arise as a result of such Shipper’s NGL that is involved in litigation, the ownership of which may be in dispute or which is encumbered by a lien or charge of any kind. 

 
  
  

	18.	CLAIMS, SUITS AND TIME FOR FILING 

 (a) A Shipper shall advise the Carrier in writing of any claim for delay, damage or loss resulting from the transportation of such Shipper’s NGL by the Carrier within 30 days of delivery of such NGL
by the Carrier or, in the case of a failure to make delivery, then within 30 days after a reasonable time for delivery has elapsed. 
 (b) A Shipper shall institute any action arising out of any claim against the Carrier within 180 days from the date that written notice is given by the Carrier to such Shipper that the Carrier has
disallowed such claim or any part of such claim. 
 (c) If a Shipper fails to comply with the provisions of paragraph (a) or
paragraph (b) of Rule 18 of this tariff, then such Shipper waives all rights it has to bring an action against the Carrier with respect to such claim. 
  

 
  

	19.	NON-PERFORMANCE 

 (a) In
months of apportionment, all nominations which are apportioned shall have the Non-Performance Penalty applied to that portion of shortfall in receipts by a Shipper that exceeds five (5) percent of that Shipper’s apportioned volume.
However, the Non-Performance Penalty will not be applied to that portion of shortfalls caused by Force Majeure events; Carrier imposed restrictions on feeder pipeline deliveries into the Carrier; or any carry over volumes. 

(b) The Shipper shall provide the Carrier with written notice of the Force Majeure event within four business days of the event. Such
notice shall state the nature of the event, the estimated duration of the event, and the volume affected. The Shipper shall use reasonable diligence to remedy the Force Majeure event as quickly as reasonably practicable and shall keep Carrier
informed as to the progress in the efforts to remedy the event; provided the Shipper shall not be required to settle strikes, lockouts or other labour disruptions contrary to its wishes. 

(c) At any time up to thirty (30) calendar days following the receipt of the notice referred to in Rule 19(b) the Carrier will issue
written notice to the Shipper informing the Shipper in the event the Carrier disputes all or a portion of the Shipper’s claim of Force Majeure. The Carrier shall invoice the Shipper for the amount of the Non-Performance Penalty calculated in
accordance with Rule 19(a) and the Shipper shall be obligated to make payment of the invoiced amount. 
 (d) The Carrier shall
publish, on at least a monthly basis, a summary of all Force Majeure notices issued pursuant to Rule 19(b) and 19(c), which shall contain only the name of the Shipper claiming Force Majeure, volume affected, the amount of the Non- Performance
Penalty disputed and/or undisputed, and the status of all disputed claims. 

 PAGE SEVEN 
 NEB No. 260 
  

 RULES AND REGULATIONS 

 

	20.	COMPONENT MEASUREMENT AND BALANCING 

 (a) Subject to paragraph (b) of this Rule, the acceptance by Carrier of any NGL for transportation shall be on the condition that NGL component measurement and balancing shall be the responsibility
of the Shippers and shall not be provided for by the Carrier. 
 (b) In the event that a Shipper requests transportation service
and is unable to arrange for component measurement and balancing as contemplated in paragraph (a) of this Rule, such Shipper may notify the Carrier in writing of its inability to make such arrangements. 

(c) Upon receipt of a notice referred to in paragraph (b) of this Rule, Carrier shall implement in a timely manner a method by which
components of tendered NGL will be measured and reported to Shippers and shall endeavour to provide or arrange for a method by which components of tendered NGL will be balanced. 

 
  
  

	21.	FINANCIAL ASSURANCES 

 (a)
At any time, upon the request of the Carrier, any prospective or existing Shipper shall provide information to the Carrier that will allow the Carrier to determine the prospective or existing Shipper’s capacity to perform any financial
obligations that could arise from the transportation of that Shipper’s NGL under the terms of this tariff, including the payment of transportation charges, equalization obligations and the value of the allowance oil and negative Shipper’s
balance positions. The Carrier shall not be obligated to accept NGL for transportation from an existing or prospective Shipper if the Shipper or prospective Shipper fails to provide the requested information to the Carrier within ten (10) days
of the Carrier’s written request, or if the Carrier’s review of the requested information reveals that the existing or prospective Shipper does not have the capacity to perform any financial obligations that could arise from the
transportation of that Shipper’s NGL under the terms of this tariff, including the payment of transportation charges, equalization obligations and the reasonably determined value of the allowance oil and negative Shipper’s balance
positions. 
 (b) Subject to the provisions of Rule 21(c), the Carrier, upon notice to the Shipper, may only require one or more
of the following Financial Assurances for the payment of all charges and costs as provided for in this tariff, or otherwise lawfully due to the Carrier, to be provided at the expense of the Shipper: 

(i) prepayment; (ii) a letter of credit in favour of Carrier in an amount sufficient to ensure payment of all costs and charges that
could reasonably accrue due to the Carrier, in a form and from an institution acceptable to Carrier; (iii) a guarantee in an amount sufficient to ensure payment of all such costs and charges that could reasonably accrue due to the Carrier, in a
form and from a third party acceptable to Carrier; or (iv) such other enforceable collateral security, including but not limited to security agreements over assets of the Shipper, in a form acceptable to the Carrier (the “Financial
Assurances”). 
 (c) In the event that the Carrier reasonably determines that: 

(i) the existing or prospective Shipper’s financial condition is or has become impaired or unsatisfactory; (ii) any Financial
Assurances previously provided by a Shipper no longer provide adequate security for the performance of the Shipper’s obligations that could arise from the transportation of its NGL under the terms of this tariff; or (iii) the Carrier
otherwise determines that it is necessary to obtain Financial Assurances from the Shipper, then the Shipper shall provide Financial Assurances for the payment of the charges and costs as provided for in this tariff or otherwise lawfully due to the
Carrier relating to the transportation of the Shipper’s NGL by the Carrier. For the purpose of this tariff, and without limiting the generality of the charges and costs lawfully due to the Carrier relating to the transportation of the
Shipper’s NGL, those charges and costs shall include transportation charges, equalization obligations, negative Shipper’s balance positions and the allowance oil. The Carrier shall not be obligated to accept NGL for transportation from an
existing or prospective Shipper if the Shipper or prospective Shipper fails lo deliver the Financial Assurances to Carrier within ten (10) days of Shipper’s receipt of Carrier’s written request for such Financial Assurances.

 NEB No. 282 
 Cancels NEB No. 278 
 ENBRIDGE PIPELINES INC. 

 
  
 CRUDE PETROLEUM TARIFF 
  

 
 RULES AND REGULATIONS

 Governing the  
 TRANSPORTATION 
 of 

CRUDE PETROLEUM 
  

 

p Denotes changes in wording from NEB No. 278 

 
  
 EFFECTIVE MARCH 10, 2008 
  

 
  

			
	 ISSUED BY
 Ralph J.W. Fischer
 Director, Planning & Analysis
	  	 COMPILED BY
 Angelese R. Hood
 Regulatory Strategy & Compliance

		
	 Enbridge Pipelines Inc.
 Suite 3000
 425 - 1 Street S.W.

Calgary, AB T2P 3L8
	  	 Tel.: (403)718-3425
 Fax: (403)508-3140

 PAGE 2 
 NEB No. 282 
  

 RULES AND REGULATIONS 

 

	1.	DEFINITIONS 

 As used in
this tariff, the following terms have the following meanings:  
 “API” means American Petroleum
Institute.  
 “ASTM” means American Society for Testing and Materials.  

“Carrier” means Enbridge Pipelines Inc. 
 “Crude Petroleum” means the direct liquid product of oil wells, oil processing plants, the indirect liquid petroleum products of oil or gas wells, oil sands, or a mixture of such
products, but does not include Natural Gas Liquids or Refined Petroleum Products. 
 “Density” means mass per
unit volume at 15 degrees Celsius expressed in kilograms per cubic metre. 
 “Financial Assurances” means the
financial assurances provided by the Shipper and accepted by the Carrier in accordance with Rule 19. 
 “Force
Majeure” means an event, which is unforeseen, and beyond the control of the Shipper that either prevents the Shipper from delivering the affected volume to Carrier or prevents the Shipper from accepting delivery of the affected volume from
Carrier. The following are the only instances that will be recognized as Force Majeure events: earthquakes; floods; landslides; civil disturbances; sabotage; the acts of public enemies; war; blockades; insurrections; riots; epidemics; the act of any
government or other authority or statutory undertaking; the inability to obtain or the curtailment of electric power, water or fuel; strikes, lockouts or other labour disruptions; fires; explosions; breakdowns or failures of pipe, plant, machinery
or equipment; and contamination or poisoning of catalyst and/or solvent or biological treatment facilities. For greater certainty, a lack of funds; the availability of a more attractive market; Shipper’s inability to purchase Crude Petroleum;
or inefficiencies in operations do not constitute events of Force Majeure. 
 “Kilopascal” is equivalent to
0.1450377 pounds per square inch. 
 “Natural Gas Liquids” means the indirect liquid petroleum products of oil
or gas wells having an absolute vapour pressure in excess of 103 kilopascals. 
 “NEB” means the National Energy
Board. 
 “Non-Performance Penalty” means the charge and cost referred to in Rule 18(a). 

“Petroleum” means Crude Petroleum, Natural Gas Liquids and Refined Petroleum Products. 

“Refined Petroleum Products” means the products of a refinery tendered as motor gasoline, aviation fuels, kerosene,
diesel fuel and domestic heating oil falling within specifications established in the Carrier’s tariff respecting Refined Petroleum Products. 
 “Regular Delivery Point” means a location for the delivery of Crude Petroleum as provided for in the Carrier’s tariff for Tolls Applying on Crude Petroleum, Natural Gas Liquids and
Refined Petroleum Products. 
 “Regular Receiving Point” means a location for the receipt of Crude Petroleum as
provided for in the Carrier’s tariff for Tolls Applying on Crude Petroleum, Natural Gas Liquids and Refined Petroleum Products. 
 “Retention Stock” means the volume of Petroleum required by the Carrier for operational and scheduling purposes as specified from time to time by the Carrier and includes working stock,
tank bottoms and idle loopfill. 
 “Shipper” means the party that contracts with the Carrier for the
transportation of Crude Petroleum under the terms of this tariff, and that has satisfied the Carrier of that party’s capacity to perform its financial obligations that may arise from the transportation of its Crude Petroleum under the terms of
this tariff, and includes a transferee of a Shipper’s rights and obligations, as approved in accordance with Rule 15(c). 

“Tender” means an offer by a Shipper to the Carrier in accordance with this tariff for the transportation of a stated
quantity of Crude Petroleum from a Regular Receiving Point to a Regular Delivery Point. 

 PAGE 3 
 NEB No. 282 
  

 RULES AND REGULATIONS 

 

	2.	COMMODITY 

 This tariff
applies to the transportation of Crude Petroleum by the Carrier. 
  

	3.	ORIGIN AND DESTINATION FACILITIES 

  

	 	a.	Subject to the further provisions of this tariff, the Carrier will only accept Crude Petroleum for transportation: 

 

	 	i.	at Regular Receiving Points; 

  

	 	ii.	when the Crude Petroleum has been specified to be delivered to one or more Regular Delivery Points; and 

 

	 	iii.	when the party taking delivery of the Crude Petroleum has been specified in writing to the Carrier. 

 

	 	b.	Except where the Carrier provides such facilities, the Carrier will only accept Crude Petroleum for transportation when the Shipper has provided the necessary
facilities satisfactory to the Carrier at the specified Regular Delivery Point for such Crude Petroleum. 

  

	4.	SPECIFICATIONS AS TO QUALITY 

  

	 	a.	A Shipper shall not deliver to the Carrier and the Carrier shall not be obligated to accept Crude Petroleum that, as determined by the Carrier, has on receipt:

  

	 	i.	a temperature greater than 38 degrees Celsius; 

  

	 	ii.	a Reid vapour pressure in excess of 103 kilopascals; 

  

	 	iii.	sediment and water in excess of 0.5 percent by volume; 

  

	 	iv.	a density in excess of 940 kilograms per cubic metre at 15 degrees Celsius; 

 

	 	v.	a kinematic viscosity in excess of 350 square millimetres per second determined at the Carrier’s reference line temperature; 

 

	 	vi.	any organic chlorides; or 

  

	 	vii.	physical or chemical characteristics that may render such Crude Petroleum not readily transportable by the Carrier or that may materially affect the quality of other
commodities transported by the Carrier or that may otherwise cause disadvantage to the Carrier. 

  

	 	b.	A Shipper shall, as required by the Carrier, provide to the Carrier a certificate with respect to the specifications of Crude Petroleum to be received by the Carrier
from such Shipper. If a Shipper fails to provide the Carrier with such certificate, then the Carrier shall not be obligated to accept the Shipper’s Crude Petroleum. 

 

	 	c.	If the Carrier determines that a Shipper does not comply with the provisions of paragraph (a) of Rule 4 of this tariff, then such Shipper shall remove its Crude
Petroleum from the facilities of the Carrier as directed by the Carrier. 

  

	 	d.	If a Shipper fails to remove its Crude Petroleum from the facilities of the Carrier as directed by the Carrier, then the Carrier shall have the right to remove and sell
such Crude Petroleum in such lawful manner as deemed appropriate by the Carrier. The Carrier shall pay from the proceeds of such sale all costs incurred by the Carrier with respect to the storage, removal and sale of such Crude Petroleum. The
remainder of such proceeds, if any, shall be held by the Carrier for the Shipper and any other party lawfully entitled to such proceeds. 

 PAGE 4 
 NEB No. 282 
  

 RULES AND REGULATIONS 

 

	5.	CHANGES IN QUALITY AND SEGREGATION 

  

	 	a.	The Carrier shall endeavour to deliver substantially the same type of Crude Petroleum as that received from a Shipper, however the Carrier shall not be obligated to
make delivery of the identical Crude Petroleum received by the Carrier. 

  

	 	b.	If Crude Petroleum tendered to the Carrier is of a kind or quality that is not currently being transported by the Carrier, then the Carrier shall, at the request of the
Shipper of such Crude Petroleum and subject to the operating conditions of the facilities of the Carrier, endeavour to segregate such Crude Petroleum during transportation by the Carrier. In such circumstances, the Shipper shall, at the request of
the Carrier, make such Crude Petroleum available in such quantities and at such times as may be necessary to permit such segregated movements. 

  

	 	c.	Subject to paragraph (a) of Rule 12 of this tariff, the Carrier shall not be liable for any damage, loss or consequential loss resulting from a change in the density or
other quality of a Shipper’s Crude Petroleum as a result of the Carrier’s transportation of such Crude Petroleum, including without limitation the mixing of Crude Petroleum with other Petroleum in the facilities of the Carrier.

  

	6.	TENDERS, RATES, VOLUMES AND TENDER DISCLOSURE 

  

	 	a.	Tenders shall be submitted to the Carrier in accordance with the notice of shipment format prescribed by the Carrier no later than the time and date set out in the
Carrier’s monthly nomination schedule. The Carrier shall notify all shippers of the monthly nomination schedule applicable for the calendar year. Notice of any amendment to a monthly nomination date shall be provided by the Carrier to all
shippers at minimum 24 hours in advance of the proposed change in nomination date. 

  

	 	b.	The Carrier may, subject to the availability of space and the operating conditions of the facilities of the Carrier, accept Tenders or revised Tenders after such time.
The Carrier may publicly disclose the volume of each Shipper’s Crude Petroleum tendered to the Carrier by the categories of: 

  

	 	i.	light or medium crude petroleum; 

  

	 	ii.	heavy crude petroleum; 

  

	 	iii.	synthetics; or 

  

	 	iv.	condensate. 

 The
Carrier may also publicly disclose the identity of each feeder pipeline respecting such volumes of Crude Petroleum. 
  

	 	c.	A Shipper shall, upon notice from the Carrier, provide written third party verification as required by the Carrier in support of such Shipper’s Tender. The Carrier
shall not be obligated to accept a Shipper’s Crude Petroleum where such verification is, in the sole discretion of the Carrier, unacceptable to the Carrier. 

 

	 	d.	The Carrier shall not be obligated to accept a Shipper’s Crude Petroleum if the volume of such Crude Petroleum is less than the minimum volume or if the rate at
which such Crude Petroleum is received by the Carrier is less than or greater than the rates specified from time to time by the Carrier for each Regular Receiving Point. 

 

	 	e.	The Carrier shall not be obligated to make a delivery of a Shipper’s Crude Petroleum of less than the minimum volume or at a rate less than or greater than the
rates specified from time to time by the Carrier for each Regular Delivery Point. 

  

	 	f.	A Shipper shall supply its share of Retention Stock by types and volumes as determined from time to time by the Carrier. 

 

	 	g.	Tenders received by the Carrier acting for Enbridge Energy, Limited Partnership for transportation within the United States of America shall be subject to the rates,
rules and regulations applicable to transportation by Enbridge Energy, Limited Partnership, which shall invoice the Shipper for such transportation. 

 PAGE 5 
 NEB No. 282 
  

 RULES AND REGULATIONS 

 

	7.	APPLICATION OF TOLLS 

 The
Carrier shall charge a Shipper the Carrier’s toll for the transportation of Crude Petroleum that is in effect on the date of delivery at the designated Regular Delivery Point for such Crude Petroleum. If the designated delivery location for a
Shipper’s Crude Petroleum is a designated Regular Delivery Point of Enbridge Energy, Limited Partnership, then the Carrier shall charge such Shipper the Carrier’s toll for the transportation of Crude Petroleum that is in effect on the date
of such delivery. 
  

	8.	PAYMENT OF TOLLS AND LIEN FOR UNPAID CHARGES 

  

	 	a.	A Shipper shall pay all charges and costs as provided for in this tariff or otherwise lawfully due to the Carrier relating to the transportation or other handling of
the Shipper’s Crude Petroleum by the Carrier. The Shipper shall pay such charges and costs upon receipt of the Carrier’s invoice respecting such charges and costs. If required by the Carrier, the Shipper shall pay such charges and costs
before delivery, or before acceptance of a transfer, of the Shipper’s Crude Petroleum by the Carrier. 

  

	 	b.	The Carrier shall have a general lien on all of a Shipper’s Crude Petroleum that is in the possession of the Carrier to secure the payment of all charges and costs
accruing or due relating to the transportation or other handling of the Shipper’s Petroleum by the Carrier. The general lien provided herein shall be in addition to any lien or security interest otherwise provided by law or contract. The
Carrier may withhold the Shipper’s Crude Petroleum from delivery and may exercise any other rights and remedies provided at law or by contract, until all such charges and costs have been paid. 

 

	 	c.	If charges for the transportation of Shipper’s Petroleum remain unpaid for ten days after notice of demand for payment of such charges is made to such Shipper by
the Carrier, then the Carrier shall have the right to remove and sell any or all of such Shipper’s Crude Petroleum that is in the possession of the Carrier in such lawful manner as deemed appropriate by the Carrier. 

 

	 	d.	The Carrier shall pay from the proceeds of such sale all charges and costs accruing or due relating to the transportation of such Shipper’s Petroleum by the
Carrier and all costs incurred by the Carrier with respect to the storage, removal and sale of such Shipper’s Crude Petroleum. The remainder of such proceeds, if any, shall be held by the Carrier for the Shipper and any other party lawfully
entitled to such proceeds. 

  

	 	e.	When required, the Carrier shall, with or without notice to the Shipper, appoint agent(s) to retain possession of the Shipper’s Crude Petroleum on behalf of the
Carrier for the purpose of enforcing the general lien described in this Rule. The Carrier hereby advises that it has appointed Enbridge Energy, Limited Partnership as one agent appointed to hold possession of the Shipper’s Crude Petroleum for
the purpose of enforcing its general lien. 

  

	9.	MEASURING, TESTING AND DEDUCTIONS 

  

	 	a.	The Carrier shall gauge or meter, or cause to be gauged or metered, a Shipper’s Crude Petroleum upon receipt and delivery by the Carrier. The Shipper or the
designate of the Shipper may be present at such gauging or metering. If tank gauges are used, the volume of Crude Petroleum shall be computed from tank tables on a 100 percent volume basis. The Carrier shall have the right to enter the premises
where Crude Petroleum is received or delivered by the Carrier and shall be granted access to all facilities for the purpose of gauging or metering and to make any examination, inspection, measurement or test as required by the Carrier to verify the
accuracy of such facilities and the quality of such Shipper’s Crude Petroleum. 

  

	 	b.	The Carrier shall correct the density and volume of Crude Petroleum received and delivered by the Carrier from the actual temperature of such Crude Petroleum to 15
degrees Celsius by use of API 2540 Petroleum Measurement Standards or the latest revision to such Standards. 

 PAGE 6 
 NEB No. 282 
  

 RULES AND REGULATIONS 

 

	 	c.	The Carrier shall correct the metered volume of Crude Petroleum for compressibility by the use of API Manual of Petroleum Measurement Standards, Chapter 11.2.1 M or the
latest revision to such Chapter. 

  

	 	d.	The Carrier shall determine the percentage of sediment and water in Crude Petroleum by the use of a centrifuge or other method agreed to by the Carrier and the Shipper.
The Carrier shall deduct the amount of sediment and water from the corrected volume of such Crude Petroleum. 

  

	 	e.	The Carrier shall, as deemed necessary by the Carrier, adjust the measured volume of Crude Petroleum for shrinkage in accordance with API Bulletin 2509 C or the latest
revision to such Bulletin. 

  

	 	f.	The Carrier shall, as deemed necessary by the Carrier, determine the kinematic viscosity of Crude Petroleum received by the Carrier in accordance with ASTM D 445 or the
latest revision to such Standard or such other test as may be agreed to by the Carrier and the Shipper. 

  

	 	g.	The results of all such gauging, metering and testing by the Carrier shall be final. 

 

	10.	EVIDENCE OF RECEIPTS AND DELIVERIES 

 The Carrier shall evidence the receipt and delivery of Crude Petroleum by tickets showing the volume, type, temperature, density, sediment and water and any other data with respect to such Crude Petroleum
as may be specified from time to time by the Carrier. Such tickets shall be signed by the Shipper, or the designate of the Shipper, and the Carrier. 
  

	11.	REMOVAL, DELIVERY AND ACCEPTANCE 

  

	 	a.	A Shipper or the designate of the Shipper shall accept such Shipper’s Crude Petroleum upon arrival at the designated Regular Delivery Point for such Crude
Petroleum, or as otherwise directed by the Carrier. 

  

	 	b.	If a Shipper fails to remove its Crude Petroleum from the facilities of the Carrier in accordance with the provisions of paragraph (a) of Rule 11 of this tariff,
and a disruption of Carrier’s operations results, Shipper shall be solely responsible for all costs or losses to Carrier associated with such disruption, including loss of revenue resulting therefrom, unless the non-removal of such Crude
Petroleum is due to the direct negligence of Carrier. 

  

	 	c.	If the Crude Petroleum is not removed from Carrier’s facilities and the Carrier determines, in its sole discretion, that a disruption of Carrier’s operations
may result, Carrier shall provide Shipper with twenty- four (24) hours’ notice to remove specified Crude Petroleum of the Shipper from the Carrier’s facilities. Should Shipper not remove the specified Crude Petroleum from the
Carrier’s facilities within said notice period, then the Carrier shall have the right to remove and sell any or all of such Shipper’s Crude Petroleum that is in the possession of the Carrier in such lawful manner as deemed appropriate by
the Carrier. 

  

	 	d.	The Carrier shall pay from the proceeds of such sale all charges and costs accruing or due relating to the disruption of the Carrier’s operations and all costs
incurred by the Carrier with respect to the storage, removal and sale of such Shipper’s Crude Petroleum. The remainder of such proceeds, if any, shall be held by the Carrier for the Shipper and any other party lawfully entitled to such
proceeds. 

  

	 	e.	When required, the Carrier shall, with or without notice to the Shipper, appoint agent(s) to retain possession of the Shipper’s Crude Petroleum on behalf of the
Carrier for the purpose of enforcing this Rule. The Carrier hereby advises that it has appointed Enbridge Energy, Limited Partnership as one agent appointed to hold possession of the Shipper’s Crude Petroleum for the purpose of enforcing this
Rule. 

 PAGE 7 
 NEB No. 282 
  

 RULES AND REGULATIONS 

 

	12.	LIABILITY OF THE CARRIER 

  

	 	a.	Except where caused by the direct negligence of the Carrier, the Carrier shall not be liable to a Shipper for any delay, damage, loss or consequential loss resulting
from any cause while the Carrier is in possession or control of such Shipper’s Crude Petroleum, including without limitation the breakdown of the facilities of the Carrier. 

 

	 	b.	If damage or loss to Petroleum results from any cause other than the direct negligence of the Carrier while the Carrier is in possession or control of such Petroleum,
then the Carrier may apportion the cost of such damage or loss on a pro rata basis among all Shippers. Each Shipper’s share of such cost shall be determined by the Carrier based on the proportion of the volume of the Shipper’s Crude
Petroleum in the possession of the Carrier on the date of such loss to the total volume of Petroleum in the possession of the Carrier on the date of such loss. 

 

	13.	INDEMNIFICATION BY THE SHIPPER 

  

	 	a.	A Shipper shall indemnify the Carrier for any damage, loss, costs or consequential loss incurred by the Carrier or any other party as a result of such Shipper’s
failure to comply with any provision of this tariff. 

  

	14.	APPORTIONMENT 

  

	 	a.	If more Crude Petroleum is tendered than can be transported by the Carrier, then the Carrier shall apportion such tenders among all such Shippers on the basis of such
current tenders and the current operating conditions of the facilities of the Carrier applicable to the transportation of Crude Petroleum. 

  

	 	b.	Subject to allocations to priority destinations designated by the NEB, the Carrier shall apportion each such Shipper a pro rata share of the capacity of such facilities
of the Carrier based on such current tenders. Where blending of Crude Petroleum can achieve an increase in the capacity of the facilities of the Carrier, such increase in capacity shall be apportioned on a pro rata basis first to Shippers tendering
such blends with any remaining increase in capacity apportioned on a pro rata basis to all other tenders. 

  

	15.	REQUESTED CHANGE BY THE SHIPPER 

  

	 	a.	Subject to the operating conditions of the facilities of the Carrier, the Carrier may, upon the written request of a Shipper, allow a Shipper to change:

  

	 	i.	the designated Regular Receiving Point for its Crude Petroleum; 

  

	 	ii.	the designated volume and type of its Crude Petroleum to be received at a designated Regular Receiving Point; 

 

	 	iii.	the designated Regular Delivery Point for its Crude Petroleum; 

  

	 	iv.	the designated volume and type of its Crude Petroleum to be delivered to a designated Regular Delivery Point; and 

 

	 	v.	the party designated to take delivery of its Crude Petroleum. 

  

	 	b.	The Carrier may allow a Shipper to transfer, in such manner as may be specified by the Carrier from time to time, such Shipper’s rights and obligations under this
tariff respecting its Crude Petroleum to another Shipper. 

  

	 	c.	A transfer of a Shipper’s rights and obligations under Rule 15(b) under this tariff respecting its Crude Petroleum will not be binding or effective on the Carrier
until the Carrier has provided a notice of acceptance to the transferor and transferee. The Carrier will not provide a notice of acceptance of a transfer until such time as the transferee has satisfied the Carrier of its capacity to undertake the
transferor’s obligations and has provided any Financial Assurances requested by the Carrier in accordance with Rule 19 of this tariff. 

 PAGE 8 
 NEB No. 282 
  

 RULES AND REGULATIONS 

 

	16.	ADVERSE CLAIMS AGAINST CRUDE PETROLEUM 

  

	 	a.	A Shipper shall not Tender or deliver to the Carrier Crude Petroleum which is involved in litigation, the ownership of which may be in dispute or which is encumbered by
a lien or charge of any kind unless the Shipper provides written notification to the Carrier of such litigation, dispute, lien or charge not less than 20 days before such Tender is made to the Carrier. 

 

	 	b.	The Carrier shall not be obligated to accept Crude Petroleum that is involved in litigation, the ownership of which may be in dispute or which is encumbered by a lien
or charge of any kind. 

  

	 	c.	A Shipper shall advise the Carrier in writing if, at any time while the Shipper’s Crude Petroleum is in the possession of the Carrier, such Crude Petroleum becomes
involved in litigation, the ownership of such Crude Petroleum becomes in dispute or such Crude Petroleum becomes encumbered by a lien or charge of any kind. 

 

	 	d.	A Shipper shall, upon demand from the Carrier, provide a bond or other form of indemnity satisfactory to the Carrier protecting the Carrier against any liability or
loss that may arise as a result of such Shipper’s Crude Petroleum that is involved in litigation, the ownership of which may be in dispute or which is encumbered by a lien or charge of any kind. 

 

	17.	CLAIMS, SUITS AND TIME FOR FILING 

  

	 	a.	A Shipper shall advise the Carrier in writing of any claim for delay, damage or loss resulting from the transportation of such Shipper’s Crude Petroleum by the
Carrier within 30 days of delivery of such Crude Petroleum by the Carrier or, in the case of a failure to make delivery, then within 30 days after a reasonable time for delivery has elapsed. 

 

	 	b.	A Shipper shall institute any action arising out of any claim against the Carrier within 180 days from the date that written notice is given by the Carrier to such
Shipper that the Carrier has disallowed such claim or any part of such claim. 

  

	 	c.	If a Shipper fails to comply with the provisions of paragraph (a) or paragraph (b) of Rule 17 of this tariff, then such Shipper waives all rights it has to
bring an action against the Carrier with respect to such claim. 

  

	18.	NON-PERFORMANCE 

  

	 	a.	In months of apportionment, all nominations, which are apportioned, shall have the Non-Performance Penalty applied to that portion of shortfall in receipts by a Shipper
that exceeds five (5) percent of that Shipper’s apportioned volume. However, the Non-Performance Penalty will not be applied to that portion of shortfalls caused by Force Majeure events; Carrier imposed restrictions on feeder pipeline
deliveries into the Carrier; or any carry over volumes. 

  

	 	b.	The Shipper shall provide the Carrier with written notice of the Force Majeure event within four business days of the event. Such notice shall state the nature of the
event, the estimated duration of the event, and the volume affected. The Shipper shall use reasonable diligence to remedy the Force Majeure event as quickly as reasonably practicable and shall keep Carrier informed as to the progress in the efforts
to remedy the event; provided the Shipper shall not be required to settle strikes, lockouts or other labour disruptions contrary to its wishes. 

  

	 	c.	At any time up to thirty (30) calendar days following the receipt of the notice referred to in Rule 18(b) the Carrier will issue written notice to the Shipper
informing the Shipper in the event the Carrier disputes all or a portion of the Shipper’s claim of Force Majeure. The Carrier shall invoice the Shipper for the amount of the Non-Performance Penalty calculated in accordance with Rule 18(a) and
the Shipper shall be obligated to make payment of the invoiced amount. 

 PAGE 9 
 NEB No. 282 
  

 RULES AND REGULATIONS 

 

	 	d.	The Carrier shall publish, on at least a monthly basis, a summary of all Force Majeure notices issued pursuant to Rule 18(b) and 18(c), which shall contain only the
name of the Shipper claiming Force Majeure, volume affected, the amount of the Non-Performance Penalty disputed and/or undisputed, and the status of all disputed claims. 

 

	19.	FINANCIAL ASSURANCES 

  

	 	a.	At any time, upon the request of the Carrier, any prospective or existing Shipper shall provide information to the Carrier that will allow the Carrier to determine the
prospective or existing Shipper’s capacity to perform any financial obligations that could arise from the transportation or other handling of that Shipper’s Crude Petroleum under the terms of this tariff, including the payment of
transportation or other handling charges, equalization obligations and the value of the allowance oil and negative Shipper’s balance positions. The Carrier shall not be obligated to accept Crude Petroleum for transportation from an existing or
prospective Shipper if the Shipper or prospective Shipper fails to provide the requested information to the Carrier within ten (10) days of the Carrier’s written request, or if the Carrier’s review of the requested information reveals
that the existing or prospective Shipper does not have the capacity to perform any financial obligations that could arise from the transportation of that Shipper’s Crude Petroleum under the terms of this tariff, including the payment of
transportation charges, equalization obligations and the reasonably determined value of the allowance oil and negative Shipper’s balance positions. 

  

	 	b.	Subject to the provisions of Rule 19(c), the Carrier, upon notice to the Shipper, may only require one or more of the following Financial Assurances for the payment of
all charges and costs as provided for in this tariff, or otherwise lawfully due to the Carrier, to be provided at the expense of the Shipper: 

  

	 	i.	prepayment; 

  

	 	ii.	a letter of credit in favour of Carrier in an amount sufficient to ensure payment of all costs and charges that could reasonably accrue due to the Carrier, in a form
and from an institution acceptable to Carrier; 

  

	 	iii.	a guarantee in an amount sufficient to ensure payment of all such costs and charges that could reasonably accrue due to the Carrier, in a form and from a third party
acceptable to Carrier; or 

  

	 	iv.	such other enforceable collateral security, including but not limited to security agreements over assets of the Shipper, in a form acceptable to the Carrier (the
“Financial Assurances”). 

  

	 	c.	In the event that the Carrier reasonably determines that: 

  

	 	i.	the existing or prospective Shipper’s financial condition is or has become impaired or unsatisfactory; 

 

	 	ii.	any Financial Assurances previously provided by a Shipper no longer provide adequate security for the performance of the Shipper’s obligations that could arise
from the transportation of its Crude Petroleum under the terms of this tariff; or 

  

	 	iii.	the Carrier otherwise determines that it is necessary to obtain Financial Assurances from the Shipper, 

then the Shipper shall provide Financial Assurances for the payment of the charges and costs as provided for in this tariff or otherwise
lawfully due to the Carrier relating to the transportation of the Shipper’s Crude Petroleum by the Carrier. For the purpose of this tariff, and without limiting the generality of the charges and costs lawfully due to the Carrier relating to the
transportation of the Shipper’s Crude Petroleum, those charges and costs shall include transportation charges, equalization obligations, negative Shipper’s balance positions and the allowance oil. The Carrier shall not be obligated to
accept Crude Petroleum for transportation from an existing or prospective Shipper if the Shipper or prospective Shipper fails to deliver the Financial Assurances to Carrier within ten (10) days of Shipper’s receipt of Carrier’s
written request for such Financial Assurances. 

 PAGE 10 
 NEB No. 282 
  

 RULES AND REGULATIONS 

 

	20.	in addition to these Rules & Regulations, Enbridge Pipelines Inc. Crude Petroleum Tariff also incorporates the following practices:

  

			
	 a.      Practice applicable to automatic balancing
	  	p Effective Date: January 6, 2006
		
	 b.      Practice applicable to in-line transfers
	  	Effective Date: January 1, 2004

 Copies of Carrier’s Practices and supporting documents are available on-line at: 

http://www.enbridge.com/pipelines/about/tariffs-and-tolls.php or 

through the Carrier’s Shipper Services group, located at: 

#3000, 425 – 1st Street, SW 

Calgary, AB T2P 3L8 
 Canada 
 Phone number: (403) 508-3135 

			
	FERC ICA Oil Tariff	  	 FERC No. 41.1.0
 (Issued in lieu of FERC No. 41.0.0 which was withdrawn)

		  	Cancels FERC No. 33

 

 
 ENBRIDGE ENERGY, LIMITED PARTNERSHIP 

RULES AND REGULATIONS 
 GOVERNING THE TRANSPORTATION OF 
 CRUDE PETROLEUM 

BY PIPELINE 
  

 
 GENERAL APPLICATION

 The Rules and Regulations published herein apply only under tariffs making specific reference by FERC number to this tariff; such
reference will include supplements hereto and successive issues hereof. Specific rules and regulations published in individual tariffs will take precedence over Rules and Regulations published herein. 

 
  
 [C] Issued on 14 days notice under authority of 18 C.F.R. 341.14. This tariff is conditionally accepted subject to refund pending a 30 day review period. 

 
  
 [N] This is a baseline tariff filed in compliance with FERC Order 714, 124 FERC ¶ 61,270 (2008). 
  

 
 [N] Issued on less than one day’s notice
under authority of 18 CFR 341.14. This tariff publication is conditionally accepted subject to refund pending a 30-day review period. 
  

 
 The provisions published herein will, if
effective, not result in an effect on the quality of the human environment. 
  

 
  

			
	 ISSUED: AUGUST 2, 2010

 
	 	 EFFECTIVE: AUGUST 2, 2010

 

		
	 ISSUED BY:
 Ralph Fischer
 [W] Director, Planning & and
Analysis
 Enbridge Pipelines Inc.
 [W] Suite 3000 Fifth Avenue Place
 425 – 1st Street SW

Calgary, AB Canada T2P 3L8
	 	 COMPILED BY:
 [W] Candace Tracey Darren Hoeving
 [W] Regulatory Strategy
& and Compliance
 Enbridge Pipelines Inc.

[W] Tel. (403) 663 6677 767-3709
 Fax: (403) 508-3140

 [N] E-mail: Enbridge-Tariffs@enbridge.com 

 FERC No. 41.1.0 

Page 2 
  

 RULES AND REGULATIONS 
 1. DEFINITIONS 
  
 As used in this tariff, the following terms have the following meanings: 
 “API”
means American Petroleum Institute. 
 “ASTM” means American Society for Testing and Materials. 

“Carrier” means Enbridge Energy, Limited Partnership. 
 “Celsius” (°C) is equivalent to the Fahrenheit Temperature minus 32 divided by the factor 1.8. 
 “Crude Petroleum” means the direct liquid product of oil wells, oil processing plants, the indirect liquid petroleum products of oil or gas wells, oil sands, or a mixture of such
products, but does not include Natural Gas Liquids or Refined Petroleum Products. 
 “Cubic Metre” means 264.172 0 United
States gallons and 6.289 811 barrels at a temperature of 15 degrees Celsius. 
 “Density” means mass per unit volume at 15
degrees Celsius expressed in kilograms per cubic metre. 
 “FERC” means the Federal Energy Regulatory Commission. 

“Force Majeure” means an event which is unforeseen, and beyond the control of the Shipper, that either prevents the Shipper from
delivering the affected volume to Carrier or prevents the Shipper from accepting delivery of the affected volume from Carrier. The following are the examples of Force Majeure events: earthquakes; floods; landslides; civil disturbances; sabotage; the
acts of public enemies; war; blockades; insurrections; riots; epidemics; the act of any government or other authority or statutory undertaking; the inability to obtain or the curtailment of electric power; water or fuel; strikes; lockouts; or other
labor disruptions; fires; explosions; breakdowns or failures of pipe; plant; machinery or equipment; and contamination or poisoning of catalyst and/or solvent or biological treatment facilities. For greater certainty, a lack of funds; the
availability of a more attractive market; Shipper’s inability to purchase Crude Petroleum; or inefficiencies in operations do not constitute events of Force Majeure. 
 “Financial Assurances” means the financial assurances provided by the Shipper and accepted by the Carrier in accordance with Rule 18. 

“Kilopascal” is equivalent to 0.145 037 7 pounds per square inch. 
 “Natural Gas Liquids” means the indirect liquid petroleum products of oil or gas wells having an absolute vapor pressure in excess of 103 kilopascals. 

“Non-Performance Penalty Revenue” means the amount collected in excess of the transportation tariff revenue that otherwise would have
been collected if the Shipper had transported 100% of its binding nomination.  
 “Petroleum” means Crude Petroleum,
Natural Gas Liquids and Refined Petroleum Products. 
 “Refined Petroleum Products” means the products of a refinery tendered
as motor gasoline, aviation fuels, kerosene, diesel fuel and domestic heating oil. 
 “Regular Delivery Point” means a location
for the delivery of Crude Petroleum as provided for in the Carrier’s Local Tariff Applying On Crude Petroleum And Natural Gas Liquids. 

“Regular Receiving Point” means a location for the receipt of Crude Petroleum as provided for in the Carrier’s Local Tariff
Applying On Crude Petroleum And Natural Gas Liquids. 
 “Retention Stock” means the volume of Petroleum required by the Carrier
for operational and scheduling purposes as specified from time to time by the Carrier and includes working stock, tank bottoms and idle loopfill. 
 “Shipper” means the party that contracts with the Carrier for the transportation of Crude Petroleum under the terms of this tariff, and that has satisfied the Carrier of that party’s
capacity to perform its financial obligations that may arise from the transportation of its Crude Petroleum under the terms of this tariff, and includes a transferee of a Shipper’s rights and obligations, as approved in accordance with Rule
15(c). 
 “Tender” means an offer by a Shipper to the Carrier in accordance with this tariff for the transportation of a stated
quantity of Crude Petroleum from a Regular Receiving Point to a Regular Delivery Point. 
 2. COMMODITY 

 
 This tariff applies to the transportation of
Crude Petroleum by the Carrier. 

 FERC No. 41.1.0 

Page 3 
  

 3. ORIGIN AND DESTINATION FACILITIES 

 
  

	(a)	Subject to the further provisions of this tariff, the Carrier will only accept Crude Petroleum for transportation: 

 

	 	(i)	at Regular Receiving Points; 

  

	 	(ii)	when the Crude Petroleum has been specified to be delivered to one or more Regular Delivery Points; and 

 

	 	(iii)	when the party taking delivery of the Crude Petroleum has been specified in writing to the Carrier. 

 

	(b)	Except where the Carrier provides such facilities, the Carrier will only accept Crude Petroleum for transportation when the Shipper has provided the necessary
facilities satisfactory to the Carrier at the specified Regular Delivery Point for such Crude Petroleum. 

 4. SPECIFICATIONS
AS TO QUALITY 
  
  

	(a)	A Shipper shall not deliver to the Carrier and the Carrier shall not be obligated to accept Crude Petroleum that, as determined by the Carrier, has on receipt:

  

	 	(i)	a temperature greater than 38 degrees Celsius; 

  

	 	(ii)	a Reid vapor pressure in excess of 103 kilopascals; 

  

	 	(iii)	sediment and water in excess of 0.5 percent by volume; 

  

	 	(iv)	a density in excess of 940 kilograms per cubic metre at 15 degrees Celsius; 

 

	 	(v)	a kinematic viscosity in excess of 350 square millimetres per second determined at the Carrier’s reference line temperature; 

 

	 	(vi)	any organic chlorides; or 

  

	 	(vii)	physical or chemical characteristics that may render such Crude Petroleum not readily transportable by the Carrier or that may materially affect the quality of other
commodities transported by the Carrier or that may otherwise cause disadvantage to the Carrier. 

  

	(b)	A Shipper shall, as required by the Carrier, provide to the Carrier a certificate with respect to the specifications of Crude Petroleum to be received by the Carrier
from such Shipper. If a Shipper fails to provide the Carrier with such certificate, then the Carrier shall not be obligated to accept the Shipper’s Crude Petroleum. 

 

	(c)	If the Carrier determines that a Shipper does not comply with the provisions of paragraph (a) of Rule 4 of this tariff, then such Shipper shall remove its Crude
Petroleum from the facilities of the Carrier as directed by the Carrier. 

  

	(d)	If a Shipper fails to remove its Crude Petroleum from the facilities of the Carrier in accordance with the provisions of paragraph (c) of Rule 4 of this tariff,
then the Carrier shall have the right to remove and sell such Crude Petroleum in such lawful manner as deemed appropriate by the Carrier. The Carrier shall pay from the proceeds of such sale all costs incurred by the Carrier with respect to the
storage, removal and sale of such Crude Petroleum. The remainder of such proceeds, if any, shall be held by the Carrier for the Shipper and any other party lawfully entitled to such proceeds. 

5. CHANGES IN QUALITY AND SEGREGATION 

 
  

	(a)	The Carrier shall endeavor to deliver substantially the same type of Crude Petroleum as that received from a Shipper, however the Carrier shall not be obligated to make
delivery of the identical Crude Petroleum received by the Carrier. 

  

	(b)	If Crude Petroleum tendered to the Carrier is of a kind or quality that is not currently being transported by the Carrier, then the Carrier shall, at the request of the
Shipper of such Crude Petroleum and subject to the operating conditions of the facilities of the Carrier, endeavor to segregate such Crude Petroleum during transportation by the Carrier. In such circumstances, the Shipper shall, at the request of
the Carrier, make such Crude Petroleum available in such quantities and at such times as may be necessary to permit such segregated movements. 

  

	(c)	Subject to paragraph (a) of Rule 12 of this tariff, the Carrier shall not be liable for any damage, loss or consequential loss resulting from a change in the
density or other quality of a Shipper’s Crude Petroleum as a result of the Carrier’s transportation of such Crude Petroleum, including without limitation the mixing of Crude Petroleum with other Petroleum in the facilities of the Carrier.

 FERC No. 41.1.0 

Page 4 
  

 6. TENDERS AND QUANTITIES 

 
  

	(a)	Tenders shall be submitted to the Carrier or Enbridge Pipelines Inc., acting for the Carrier for such purpose, in accordance with the notice of shipment format
prescribed by the Carrier no later than the time and date set out in the Carrier’s monthly nomination schedule. The Carrier shall notify all shippers of the monthly nomination schedule applicable for the calendar year. Notice of any amendment
to a monthly nomination date shall be provided by the Carrier to all shippers at minimum 24 hours in advance of the proposed change in nomination date. The Carrier may, subject to the availability of space and the operating conditions of the
facilities of the Carrier, accept Tenders or revised Tenders after such time. 

  

	(b)	A Shipper shall, upon notice from the Carrier, provide written third party verification as required by the Carrier in support of such Shipper’s Tender. The Carrier
shall not be obligated to accept a Shipper’s Crude Petroleum where such verification is, in the sole discretion of the Carrier, unacceptable to the Carrier. 

 

	(c)	The Carrier shall not be obligated to accept a Shipper’s Crude Petroleum if the volume of such Crude Petroleum is less than the minimum volume or if the receipt
flow rate at which such Crude Petroleum is received by the Carrier is less than or greater than the receipt flow rates specified from time to time by the Carrier for each Regular Receiving Point. 

 

	(d)	The Carrier shall not be obligated to make a delivery of a Shipper’s Crude Petroleum of less than the minimum volume or at a delivery flow rate less than or
greater than the delivery flow rates specified from time to time by the Carrier for each Regular Delivery Point. 

  

	(e)	A Shipper shall supply its share of Retention Stock by types and volumes as determined from time to time by the Carrier. 

7. APPLICATION OF RATES 
  

 

	(a)	The Carrier shall charge a Shipper the Carrier’s rate for the transportation of Crude Petroleum that is in effect on the earlier date of receipt of such Crude
Petroleum by the Carrier, or Enbridge Pipelines Inc. 

  

	(b)	Pursuant to FERC 18 C.F.R. 341.10, the existing rates between points named in the tariff will be applied to transportation movements from existing intermediate
receiving points not named in the tariff to Regular Delivery Points, and from Regular Receiving Points to existing intermediate delivery points not named in the tariff. 

 8. PAYMENT OF RATES AND LIEN FOR UNPAID CHARGES 
  

 

	(a)	A Shipper shall pay all charges and costs as provided for in this tariff or otherwise lawfully due to the Carrier relating to the transportation or other handling of
the Shipper’s Crude Petroleum by the Carrier. The Shipper shall pay such charges and costs upon receipt of the Carrier’s invoice respecting such charges and costs. If required by the Carrier, the Shipper shall pay such charges and costs
before delivery, or before acceptance of a transfer, of the Shipper’s Crude Petroleum by the Carrier. 

  

	(b)	The Carrier shall have a general lien on all of a Shipper’s Crude Petroleum that is in the possession of the Carrier to secure the payment of all charges and costs
accruing or due relating to the transportation or other handling of the Shipper’s Petroleum by the Carrier. The general lien provided herein shall be in addition to any lien or security interest otherwise provided by law or contract. The
Carrier may withhold the Shipper’s Crude Petroleum from delivery and may exercise any other rights and remedies provided at law or by contract, until all such charges and costs have been paid. 

 

	(c)	If charges for the transportation of a Shipper’s Petroleum remain unpaid for ten days after notice of demand for payment of such charges is made to such Shipper by
the Carrier, then the Carrier shall have the right to remove and sell any or all of such Shipper’s Crude Petroleum that is in the possession of the Carrier in such lawful manner as deemed appropriate by the Carrier. 

 

	(d)	The Carrier shall pay from the proceeds of such sale all charges and costs accruing or due relating to the transportation of such Shipper’s Petroleum by the
Carrier and all costs incurred by the Carrier with respect to the storage, removal and sale of such Shipper’s Crude Petroleum. The remainder of such proceeds, if any, shall be held by the Carrier for the Shipper and any other party lawfully
entitled to such proceeds. 

 FERC No. 41.1.0 

Page 5 
  

	(e)	When required, the Carrier shall, with or without notice to the Shipper, appoint agent(s) to retain possession of the Shipper’s Crude Petroleum on behalf of the
Carrier for the purpose of enforcing the general lien described in this Rule. The Carrier hereby advises that it has appointed Enbridge Pipelines Inc. as one agent appointed to hold possession of the Shipper’s Crude Petroleum for the purpose of
enforcing its general lien. 

 9. MEASURING, TESTING AND DEDUCTIONS 

 
  

	(a)	The Carrier shall gauge or meter, or cause to be gauged or metered, a Shipper’s Crude Petroleum upon receipt and delivery by the Carrier. The Shipper or the
designate of the Shipper may be present at such gauging or metering. If tank gauges are used, the volume of Crude Petroleum shall be computed from tank tables on a 100 percent volume basis. The Carrier shall have the right to enter the premises
where Crude Petroleum is received or delivered by the Carrier and shall be granted access to all facilities for the purpose of gauging or metering and to make any examination, inspection, measurement or test as required by the Carrier to verify the
accuracy of such facilities and the quality of such Shipper’s Crude Petroleum. 

  

	(b)	The Carrier shall correct the density and volume of Crude Petroleum received and delivered by the Carrier from the actual temperature of such Crude Petroleum to 15
degrees Celsius by use of API 2540 Petroleum Measurement Standards or the latest revision to such Standards. 

  

	(c)	The Carrier shall correct the metered volume of Crude Petroleum for compressibility by the use of API Manual of Petroleum Measurement Standards, Chapters 11.2.1 M or
11.2.1 or the latest revision to such Chapters. 

  

	(d)	The Carrier shall determine the percentage of sediment and water in Crude Petroleum by the use of a centrifuge or other method agreed to by the Carrier and the Shipper.
The Carrier shall deduct the amount of sediment and water from the corrected volume of such Crude Petroleum. 

  

	(e)	The Carrier shall, as deemed necessary by the Carrier, adjust the measured volume of Crude Petroleum for shrinkage in accordance with API Bulletin 2509 C or the latest
revision to such Bulletin. 

  

	(f)	The Carrier shall, as deemed necessary by the Carrier, determine the kinematic viscosity of Crude Petroleum received by the Carrier in accordance with ASTM D 445 or the
latest revision to such Standard or such other test as may be agreed to by the Carrier and the Shipper. 

  

	(g)	The results of all such gauging, metering and testing by the Carrier shall be final. 

 

	(h)	The Carrier shall deduct, as allowance oil, 1/20 of 1 percent of the volume of Crude Petroleum delivered to the Shipper to cover losses inherent in the transportation
of Crude Petroleum by the pipeline. 

 10. EVIDENCE OF RECEIPTS AND DELIVERIES 

 
 The Carrier shall evidence the receipt and
delivery of Crude Petroleum by tickets showing the volume, type, temperature, density, sediment and water and any other data with respect to such Crude Petroleum as may be specified from time to time by the Carrier. Such tickets shall be signed by
the Shipper, or the designate of the Shipper, and the Carrier. 
 11. REMOVAL, DELIVERY AND ACCEPTANCE 

 
  

	(a)	A Shipper or the designate of the Shipper shall accept such Shipper’s Crude Petroleum upon arrival at the designated Regular Delivery Point for such Crude
Petroleum, or as otherwise directed by the Carrier. 

  

	(b)	If a Shipper fails to remove its Crude Petroleum from the facilities of the Carrier in accordance with the provisions of paragraph (a) of Rule 11 of this tariff,
and a disruption of Carrier’s operations results, Shipper shall be solely responsible for all costs or losses to Carrier associated with such disruption, including loss of revenue resulting there from, unless the non-removal of such Crude
Petroleum is due to the direct negligence of Carrier. 

 FERC No. 41.1.0 

Page 6 
  

	(c)	If the Crude Petroleum is not removed from Carrier’s facilities and the Carrier determines, in its sole discretion, that a disruption of Carrier’s operations
may result, Carrier shall provide Shipper with twenty-four (24) hours’ notice to remove specified Crude Petroleum of the Shipper from the Carrier’s facilities. Should Shipper not remove the specified Crude Petroleum from the
Carrier’s facilities within said notice period, then the Carrier shall have the right to remove and sell any or all of such Shipper’s Crude Petroleum that is in the possession of the Carrier in such lawful manner as deemed appropriate by
the Carrier. 

  

	(d)	The Carrier shall pay from the proceeds of such sale all charges and costs accruing or due relating to the disruption of the Carrier’s operations and all costs
incurred by the Carrier with respect to the storage, removal and sale of such Shipper’s Crude Petroleum. The remainder of such proceeds, if any, shall be held by the Carrier for the Shipper and any other party lawfully entitled to such
proceeds. 

  

	(e)	When required, the Carrier shall, with or without notice to the Shipper, appoint agent(s) to retain possession of the Shipper’s Crude Petroleum on behalf of the
Carrier for the purpose of enforcing this Rule. The Carrier hereby advises that it has appointed Enbridge Pipelines Inc. as one agent appointed to hold possession of the Shipper’s Crude Petroleum for the purpose of enforcing this Rule.

 12. LIABILITY OF THE CARRIER 

 
  

	(a)	Except where caused by the direct negligence of the Carrier, the Carrier shall not be liable to a Shipper for any delay, damage, loss or consequential loss resulting
from any cause while the Carrier is in possession or control of such Shipper’s Crude Petroleum, including without limitation the breakdown of the facilities of the Carrier. 

 

	(b)	If damage or loss to Petroleum results from any cause other than the direct negligence of the Carrier while the Carrier is in possession or control of such Petroleum,
then the Carrier may apportion the cost of such damage or loss on a pro rata basis among all Shippers. Each Shipper’s share of such cost shall be determined by the Carrier based on the proportion of the volume of the Shipper’s Crude
Petroleum in the possession of the Carrier on the date of such loss to the total volume of Petroleum in the possession of the Carrier on the date of such loss. 

 13. IDEMNIFICATION BY THE SHIPPER 
  
 A Shipper shall indemnify the Carrier for any damage, loss, costs or consequential loss incurred by the Carrier or any other party as a result of such Shipper’s failure to comply with any provision
of this tariff. 
 14. APPORTIONMENT 

 
  

	(a)	If more Crude Petroleum is tendered than can be transported by the Carrier, then the Carrier shall apportion such tenders on a pro rata basis among all such Shippers on
the basis of such current tenders and the current operating conditions of the facilities of the Carrier applicable to the transportation of Crude Petroleum. 

 

	(b)	Where blending of Crude Petroleum can achieve an increase in the capacity of the facilities of the Carrier, such increase in capacity shall be apportioned on a pro rata
basis first to Shippers tendering such blends with any remaining increase in capacity apportioned on a pro rata basis to all other tenders. 

  

	(c)	In months of apportionment, all nominations, which are apportioned, shall have the Non-Performance Penalty applied to that portion of shortfall in receipts by a Shipper
that exceeds five (5) percent of that Shipper’s apportioned volume. However, the Non-Performance Penalty will not be applied to that portion of shortfalls caused by Force Majeure events; Carrier imposed restrictions on feeder pipeline
deliveries into the Carrier; or any carry over volumes. 

  

	(d)	The Shipper shall provide the Carrier with written notice of the Force Majeure event within four business days of the event. Such notice shall state the nature of the
event, the estimated duration of the event, and the volume affected. The Shipper shall use reasonable diligence to remedy the Force Majeure event as quickly as reasonably practicable and shall keep Carrier informed as to the progress in the efforts
to remedy the event; provided the Shipper shall not be required to settle strikes, lockouts or other labour disruptions contrary to its wishes. 

  

	(e)	At any time up to thirty (30) calendar days following the receipt of the notice referred to in Rule 14(e) the Carrier will issue written notice to the Shipper
informing the Shipper in the event the Carrier disputes all or a portion of the Shipper’s claim of Force Majeure. The Carrier shall invoice the Shipper for the amount of the Non-Performance Penalty calculated in accordance with Rule 14(d) and
the Shipper shall be obligated to make payment of the invoiced amount. 

 FERC No. 41.1.0 

Page 7 
  

	(f)	The Non-Performance Penalty shall be US $2.70 per barrel; which is equivalent to US $17.00 per cubic meter. 

 

	(g)	The Non-Performance Penalty Revenue, plus interest calculated in accordance with the Commission’s regulations (18 C.F.R. § 340.1 (c)), shall be accounted for
in a separate account. 

  

	(h)	The Non-Performance Penalty Revenue plus interest shall be refunded on a quarterly basis to those Shippers who did not incur the Non-Performance Penalty in the previous
calendar quarter. 

 15. REQUESTED CHANGES BY THE SHIPPER 

 
  

	(a)	Subject to the operating conditions of the facilities of the Carrier, the Carrier may, upon the written request of a Shipper, allow a Shipper to change:

  

	 	(i)	the designated Regular Receiving Point for its Crude Petroleum; 

  

	 	(ii)	the designated volume and type of its Crude Petroleum to be received at a designated Regular Receiving Point; 

 

	 	(iii)	the designated Regular Delivery Point for its Crude Petroleum; 

  

	 	(iv)	the designated volume and type of its Crude Petroleum to be delivered to a designated Regular Delivery Point; 

 

	 	(v)	the party designated to take delivery of its Crude Petroleum. 

  

	(b)	The Carrier may allow a Shipper to transfer, in such a manner as may be specified by the Carrier from time to time, such Shipper’s rights and obligations under
this tariff respecting its Crude Petroleum to another Shipper. 

  

	(c)	A transfer of a Shipper’s rights and obligations under Rule 15(b) of this tariff respecting its Crude Petroleum will not be binding or effective on the Carrier
until the Carrier has provided a notice of acceptance to the transferor and transferee. The Carrier will not provide a notice of acceptance of a transfer until such time as the transferee has satisfied the Carrier of its capacity to undertake the
transferor’s obligations and has provided any Financial Assurances requested by the Carrier in accordance with Rule 18 of this tariff. 

 16. ADVERSE CLAIMS AGAINST CRUDE PETROLEUM 
  

 

	(a)	A Shipper shall not Tender or deliver to the Carrier Crude Petroleum which is involved in litigation, the ownership of which may be in dispute or which is encumbered by
a lien or charge of any kind unless the Shipper provides written notification to the Carrier of such litigation, dispute, lien or charge not less than 20 days before such Tender is made to the Carrier. 

 

	(b)	The Carrier shall not be obligated to accept Crude Petroleum that is involved in litigation, the ownership of which may be in dispute or which is encumbered by a lien
or charge of any kind. 

  

	(c)	A Shipper shall advise the Carrier in writing if, at any time while the Shipper’s Crude Petroleum is in the possession of the Carrier, such Crude Petroleum becomes
involved in litigation, the ownership of such Crude Petroleum becomes in dispute or such Crude Petroleum becomes encumbered by a lien or charge of any kind. 

 

	(d)	A Shipper shall, upon demand from the Carrier, provide a bond or other form of indemnity satisfactory to the Carrier protecting the Carrier against any liability or
loss that may arise as a result of such Shipper’s Crude Petroleum that is involved in litigation, the ownership of which may be in dispute or which is encumbered by a lien or charge of any kind. 

17. CLAIMS, SUITS AND TIME FOR FILING 

 
  

	(a)	A Shipper shall advise the Carrier in writing of any claim for delay, damage or loss resulting from the transportation of such Shipper’s Crude Petroleum by the
Carrier within nine months of delivery of such Crude Petroleum by the Carrier or, in the case of a failure to make delivery, then within nine months after a reasonable time for delivery has elapsed. 

 

	(b)	A Shipper shall institute any action arising out of any claim against the Carrier within two years from the date that written notice is given by the Carrier to such
Shipper that the Carrier has disallowed such claim or any part of such claim. 

 FERC No. 41.1.0 

Page 8 
  

	(c)	If a Shipper fails to comply with the provisions of paragraph (a) or paragraph (b) of Rule 17 of this tariff, then such Shipper waives all rights it has to
bring an action against the Carrier with respect to such claim. 

 18. FINANCIAL ASSURANCES 

 
  

	(a)	At any time, upon the request of the Carrier, any prospective or existing Shipper shall provide information to the Carrier that will allow the Carrier to determine the
prospective or existing Shipper’s capacity to perform any financial obligations that could arise from the transportation or other handling of that Shipper’s Crude Petroleum under the terms of this tariff, including the payment of
transportation or other handling charges, equalization obligations and the value of the allowance oil and negative Shipper’s balance positions. The Carrier shall not be obligated to accept Crude Petroleum for transportation from an existing or
prospective Shipper if the Shipper or prospective Shipper fails to provide the requested information to the Carrier within ten (10) days of the Carrier’s written request, or if the Carrier’s review of the requested information reveals that
the existing or prospective Shipper does not have the capacity to perform any financial obligations that could arise from the transportation of that Shipper’s Crude Petroleum under the terms of this tariff, including the payment of
transportation charges, equalization obligations and the reasonably determined value of the allowance oil and negative Shipper’s balance positions. 

  

	(b)	Subject to the provisions of Rule 18(c), the Carrier, upon notice to the Shipper, may only require one or more of the following Financial Assurances for the payment of
all charges and costs as provided for in this tariff, or otherwise lawfully due to the Carrier, to be provided at the expense of the Shipper: 

  

	 	(i)	prepayment; 

  

	 	(ii)	a letter of credit in favour of Carrier in an amount sufficient to ensure payment of all costs and charges that could reasonably accrue due to the Carrier, in a form
and from an institution acceptable to Carrier; 

  

	 	(iii)	a guaranty in an amount sufficient to ensure payment of all such costs and charges that could reasonably accrue due to the Carrier, in a form and from a third party
acceptable to Carrier; or 

  

	 	(iv)	such other enforceable collateral security, including but not limited to security agreements over assets of the Shipper, in a form acceptable to the Carrier (“the
Financial Assurances”). 

  

	(c)	In the event that the Carrier reasonably determines that: 

  

	 	(i)	the existing or prospective Shipper’s financial condition is or has become impaired or unsatisfactory 

 

	 	(ii)	any Financial Assurances previously provided by a Shipper no longer provide adequate security for the performance of the Shipper’s obligations that could arise
from the transportation of its Crude Petroleum under the terms of this tariff; or 

  

	 	(iii)	the Carrier otherwise determines that it is necessary to obtain Financial Assurances from the Shipper, then the Shipper shall provide Financial Assurances for the
payment of the charges and costs as provided for in this tariff or otherwise lawfully due to the Carrier relating to the transportation of the Shipper’s Crude Petroleum by the Carrier. For the purpose of this tariff, and without limiting the
generality of the charges and costs lawfully due to the Carrier relating to the transportation of the Shipper’s Crude Petroleum, those charges and costs shall include transportation charges, equalization obligations, negative Shipper’s
balance positions and the allowance oil. The Carrier shall not be obligated to accept Crude Petroleum for transportation from an existing or prospective Shipper if the Shipper or prospective Shipper fails to deliver the Financial Assurances to
Carrier within ten (10) days of Shipper’s receipt of Carrier’s written request for such Financial Assurances. 

  

 
 19. In addition to these Rules &
Regulations, Enbridge Energy Inc., Limited Partnership Crude Petroleum Tariff also incorporates the following practices: 
  

			
	(a) Practice applicable to automatic balancing	 	Effective Date: January 6, 2006.
	(b) Practice applicable to in-line transfers	 	Effective Date: January 1, 2004.

 Copies of Carrier’s Practices and supporting documents are available on-line at: 

[W] www.enbridgcpartners.com/AboutUs/PipelineTariffsAndTolls.asp 
 http://www.enbridgeus.com/Main.aspx?id=1116&tmi=210&tmt=l 

 FERC No. 41.1.0 

Page 9 
  

 Or through the Carrier’s Shipper Services group: phone number: [W]
(403) 508-3135 231-5721. 
 Symbols: 
 [C] – Cancel 
 [N] – New 
 [W] – Change in wording only 

			
	FERC ICA Oil Tariff	  	 FERC No. 42.1.0
 (Issued in lieu of FERC No. 42.0.0 which was withdrawn)

		  	Cancels FERC No. 21

 

 
 ENBRIDGE ENERGY, LIMITED PARTNERSHIP 

RULES AND REGULATIONS 
 GOVERNING THE TRANSPORTATION OF 
 NATURAL GAS LIQUIDS 

BY PIPELINE 
  

 
 GENERAL APPLICATION

 The Rules and Regulations published herein apply only under tariffs making specific reference by FERC number to this tariff; such
reference will include supplements hereto and successive issues hereof. Specific rules and regulations published in individual tariffs will take precedence over Rules and Regulations published herein. 

 
  
 [C] This tariff is issued on 10 days notice under authority of 18 C.F.R. 341.14. This publication is conditionally accepted subject to refund pending a 30 day review period. 

 
  
 [N] This is a baseline tariff filed in compliance with FERC Order 714, 124 FERC ¶ 61,270 (2008). 
  

 
 [N] Issued on less than one day’s notice
under authority of 18 CFR 341.14. This tariff publication is conditionally accepted subject to refund pending a 30-day review period. 
  

 
 The provisions published herein will, if
effective, not result in an effect on the quality of the human environment. 
  

 
  

			
	 ISSUED: AUGUST 2, 2010

 
	 	 EFFECTIVE: AUGUST 2, 2010

 

		
	ISSUED BY:	 	COMPILED BY:
	 [W] Dan C. Tutcher Ralph Fischer

[W] President Director, Planning and Analysis

[W] Enbridge Pipelines (Lakehead) L.L.C. Inc.

[C] General Partner 
 [Wl Suite 3300, 1100 Louisiana 3000 Fifth Avenue Place
 [N]
425 – 1st Street SW

[W] Houston, TX 77002 Calgary, AB Canada T2P 3L8

[C] Tel. (713) 650 8900
	 	 [W] Claudia Schrull Darren Hoeving

[N] Regulatory Strategy and Compliance
 [W] Enbridge Pipelines (Lakehead) L.L.C. Inc.
 [C]
General Partner
 [C] Suite 3300, 1100 Louisiana

[C] Houston, TX 77002
 [W] Tel. (713)821 2045 (403) 767-3709
 [N] Fax: (403)
508-3140

 [N] E-mail: Enbridge-Tariffs@enbridge.com 

 FERC No. 42.1.0 

Page 2 
  

 RULES AND REGULATIONS 
 1. DEFINITIONS 
  
 As used in this tariff, the following terms have the following meanings: 
 “API”
means American Petroleum Institute. 
 “ASTM” means American Society for Testing and Materials. 

“Carrier” means Enbridge Energy, Limited Partnership. 
 “Celsius” (°C) is equivalent to the Fahrenheit Temperature minus 32 divided by the factor 1.8. 
 “Crude Petroleum” means the direct liquid product of oil wells, oil processing plants, the indirect liquid petroleum products of oil or gas wells, oil sands, or a mixture of such
products, but does not include Natural Gas Liquids or Refined Petroleum Products. 
 “Cubic Metre” means 264.172 0 United
States gallons and 6.289 811 barrels at a temperature of 15 degrees Celsius. 
 “Density” means mass per unit volume at 15
degrees Celsius expressed in kilograms per cubic metre.  
 “FERC” means the Federal Energy Regulatory Commission.

 “Financial Assurances” means the financial assurances provided by the Shipper and accepted by the Carrier in accordance with
Rule 20. 
 “Intermediate Break-out Location” means Superior, Wisconsin or such other Intermediate Break-out Locations as may
be specified from time to time by the Carrier. 
 “In-transit privileges” means the right of Shippers of Natural Gas Liquids to
transit, without additional charge from the Carrier, non-Carrier owned or operated facilities. 
 “IP” means Institute of
Petroleum. 
 “Kilopascal” is equivalent to 0.145 037 7 pounds per square inch. 

“Kind” means for the purposes of Rule 4, any individual component or mixture of propane, normal butane, iso-butane, and condensates, as
the case may be, having an absolute vapour pressure of greater than 103 kilopascals and less than 1,250 kilopascals at 37.8 degrees Celsius. 

“Natural Gas Liquids” means the indirect liquid petroleum products of oil or gas wells having an absolute vapor pressure in excess of
103 kilopascals. 
 “NGL” means Natural Gas Liquids. 
 “Petroleum” means Crude Petroleum, Natural Gas Liquids and Refined Petroleum Products. 
 “Refined Petroleum Products” means the products of a refinery tendered as motor gasoline, aviation fuels, kerosene, diesel fuel and domestic heating oil. 

“Regular Delivery Point” means a location for the delivery of Natural Gas Liquids as provided for in the Carrier’s Local Tariff
Applying on Crude Petroleum and Natural Gas Liquids. 
 “Regular Receiving Point” means a location for the receipt of Natural
Gas Liquids as provided for in the Carrier’s Local Tariff Applying on Crude Petroleum and Natural Gas Liquids. 
 “Retention
Stock” means the volume of Petroleum required by the Carrier for operational and scheduling purposes as specified from time to time by the Carrier and includes working stock, tank bottoms and idle loopfill. 

“Shipper” means the party that contracts with the Carrier for the transportation of Natural Gas Liquids under the terms of this tariff,
and that has satisfied the Carrier of that party’s capacity to perform its financial obligations that may arise from the transportation of its NGL under the terms of this tariff, and includes a transferee of a Shipper’s rights and
obligations, as approved in accordance with Rule 16(c). 
 “Tender” means an offer by a Shipper to the Carrier in accordance
with this tariff for the transportation of a stated quantity of Natural Gas Liquids from a Regular Receiving Point to a Regular Delivery Point. 

 FERC No. 42.1.0 

Page 3 
  

 2. COMMODITY 

 
 This tariff applies to the transportation of NGL
by the Carrier. 
 3. ORIGIN AND DESTINATION FACILITIES AND TRANSIT PRIVILEGES 

 
  

	(a)	Subject to the further provisions of this tariff, the Carrier will only accept NGL for transportation: 

 

	 	(i)	at Regular Receiving Points; 

  

	 	(ii)	when the NGL has been specified to be delivered to one or more Regular Delivery Points; and 

 

	 	(iii)	when the party taking delivery of the NGL has been specified in writing to the Carrier. 

 

	(b)	Except where the Carrier provides such facilities, the Carrier will only accept NGL for transportation when the Shipper has provided the necessary facilities or
evidence of other arrangements satisfactory to the Carrier at the specified Regular Receiving Point, Regular Delivery Point and at Intermediate Break-out Locations for such NGL, associated buffer and interface material. 

 

	(c)	NGL transported by the Carrier from the International Boundary (near Neche, North Dakota) to the International Boundary (near Marysville, Michigan) shall be accorded
in-transit privileges while transiting the non-Carrier owned or operated storage facilities at Superior, Wisconsin or both such storage facilities and the non-Carrier owned or operated depropanizing facilities at Superior, Wisconsin. Possession and
control of NGL shall be that of the Shipper while NGL are transiting such facilities. 

  

	(d)	The Carrier shall maintain records of all aspects of transportation accorded in-transit privileges. 

 

	(e)	Shipper may request Carrier to arrange or otherwise provide for break-out storage facilities at the Intermediate Break-out Location provided that long-term need, use
and economic viability of such facilities is demonstrated and Shipper provides financial support assurances satisfactory to the Carrier for such facilities. 

 4. SPECIFICATIONS AS TO QUALITY 
  

 

	(a)	A Shipper shall not deliver to the Carrier and the Carrier shall not be obligated to accept NGL that, as determined by the Carrier, has on receipt at each Regular
Receiving Point: 

  

	 	(i)	a composition that does not meet the definition of Kind; 

  

	 	(ii)	a temperature greater than 38 degrees Celsius; 

  

	 	(iii)	an absolute vapor pressure in excess of 1,250 kilopascals at 37.8 degrees Celsius; 

 

	 	(iv)	a copper strip corrosion in excess of 2a; 

  

	 	(v)	a particulate concentration greater than 5 milligrams per liter; 

  

	 	(vi)	indication of free water at the Carrier’s pipeline operating temperatures; 

 

	 	(vii)	any organic chlorides; or 

  

	 	(viii)	physical or chemical characteristics that may render such NGL not readily transportable by the Carrier or that may materially affect the quality of other commodities
transported by the Carrier or that may otherwise cause disadvantage to the Carrier. 

  

	(b)	A Shipper shall, as required by the Carrier, provide to the Carrier a certificate with respect to the specifications of NGL to be received by the Carrier from such
Shipper. If a Shipper fails to provide the Carrier with such certificate, then the Carrier shall not be obligated to accept the Shipper’s NGL. 

  

	(c)	A Shipper shall, if requested by the Carrier, provide and inject corrosion inhibitor compound of a type and amount that is satisfactory to the Carrier into NGL to be
received by the Carrier from such Shipper. 

  

	(d)	If the Carrier determines that a Shipper does not comply with the provisions of paragraph (a) or (c) of Rule 4 of this tariff, then such Shipper shall remove
its NGL from the facilities of the Carrier as directed by the Carrier. 

  

	(e)	If a Shipper fails to remove its NGL from the facilities of the Carrier in accordance with the provisions of paragraph (d) of Rule 4 of this tariff, then the
Carrier shall have the right to remove and sell such NGL in such lawful manner as deemed appropriate by the Carrier. The Carrier shall pay from the proceeds of such sale all costs incurred by the Carrier with respect to the storage, removal and sale
of such NGL. The remainder of such proceeds, if any, shall be held by the Carrier for the Shipper and any other party lawfully entitled to such proceeds. 

 FERC No. 42.1.0 

Page 4 
  

 5. BUFFER AND INTERFACE 

 
 The Shipper shall accept at the Intermediate
Break-out Locations and at designated Regular Delivery Points the volume of buffer and interface material applicable to the transportation of tendered NGL as determined by the Carrier. 
 6. COMMON STREAM SERVICE 
  

 

	(a)	NGL accepted for transportation is subject to changes in composition and quality while in transit due to, without limitation, the mixing with other NGL or mixing with
other Petroleum in the facilities of the Carrier or the facilities of a third party. Delivery shall be made to the Shipper out of a common stream of NGL at Regular Delivery Points. Carrier shall at no time be under any obligation to provide to a
Shipper individual batch segregated transportation service. 

  

	(b)	Subject to paragraph (a) of Rule 13 of this Tariff, the Carrier shall not be liable for any damage, loss or consequential loss resulting from discoloration,
contamination, or deterioration of NGL including, but not limited to, change in density, vapour pressure, quantity or value as may result from its mixture while in transit with other NGL or Petroleum in the facilities of the Carrier or facilities of
a third party. 

 7. TENDERS AND QUANTITIES 

 
  

	(a)	Tenders shall be submitted to the Carrier or Enbridge Pipelines Inc., acting for the Carrier for such purpose, in accordance with the notice of shipment format
prescribed by the Carrier no later than the time and date set out in the Carrier’s monthly nomination schedule. The Carrier shall notify all shippers of the monthly nomination schedule applicable for the calendar year. Notice of any amendment
to a monthly nomination date shall be provided by the Carrier to all shippers at minimum 24 hours in advance of the proposed change in nomination date. Where applicable, such Tenders shall include the amounts of Petroleum to be used as buffer
material with such NGL. The Carrier may, subject to the availability of space and the operating conditions of the facilities of the Carrier, accept Tenders or revised Tenders after such time. 

 

	(b)	A Shipper shall, upon notice from the Carrier, provide written third party verification as required by the Carrier in support of such Shipper’s Tender. The Carrier
shall not be obligated to accept a Shipper’s NGL where such verification is, in the sole discretion of the Carrier, unacceptable to the Carrier. 

  

	(c)	The Carrier shall not be obligated to accept a Shipper’s NGL if the volume of such NGL is less than the minimum volume or if the receipt flow rate at which such
NGL is received by the Carrier is less than or greater than the receipt flow rates specified from time to time by the Carrier for each Regular Receiving Point. 

 

	(d)	The Carrier shall not be obligated to make a delivery of a Shipper’s NGL of less than the minimum volume or at a delivery flow rate less than or greater than the
delivery flow rates specified from time to time by the Carrier for each Regular Delivery Point. 

  

	(e)	A Shipper shall supply its share of Retention Stock by types and volumes as determined from time to time by the Carrier 

8. APPLICATION OF RATES 
  

 

	(a)	The Carrier shall charge a Shipper the Carrier’s rate for the transportation of NGL on the volume of NGL transported by the Carrier and the volume of Petroleum
blended with such NGL. 

  

	(b)	The carrier shall charge a Shipper, on the volume of buffer material transported with such Shipper’s NGL, the Carrier’s rate for transportation of Crude
Petroleum. 

  

	(c)	The Carrier shall charge a Shipper the Carrier’s rate for the transportation of NGL and the Carrier’s rate for the transportation of Crude Petroleum that are
in effect on the respective dates of receipt at the designated Regular Receiving Point for such Shipper’s NGL and buffer material. If the designated receiving point for a Shipper’s NGL is a designated regular receiving point of Enbridge
Pipelines Inc., then the Carrier shall charge such Shipper the Carrier’s rate for the transportation of NGL and the Carrier’s rate for the transportation of Crude Petroleum that are in effect on the date of such receipt.

 FERC No. 42.1.0 

Page 5 
  

	(d)	Pursuant to FERC 18 C.F.R. 341.10, the existing rates between points named in the tariff will be applied to transportation movements from existing intermediate
receiving points not named in the tariff to Regular Delivery Points, and from Regular Receiving Points to existing intermediate delivery points not named in the tariff. 

 9. PAYMENT OF RATES AND LIEN FOR UNPAID CHARGES 
  

 

	(a)	A Shipper shall pay all charges and costs as provided for in this tariff or otherwise lawfully due to the Carrier relating to the transportation of the Shipper’s
NGL by the Carrier. The Shipper shall pay such charges and costs upon receipt of the Carrier’s invoice respecting such charges and costs. If required by the Carrier, the Shipper shall pay such charges and costs before delivery, or before
acceptance of a transfer, of the Shipper’s NGL by the Carrier. 

  

	(b)	The Carrier shall have a general lien on all of a Shipper’s NGL that is in the possession of the Carrier to secure the payment of all charges and costs accruing or
due relating to the transportation of the Shipper’s Petroleum by the Carrier. The general lien provided herein shall be in addition to any lien or security interest otherwise provided by law or contract. The Carrier may withhold the
Shipper’s NGL from delivery and may exercise any other rights and remedies provided at law or by contract, until all such charges and costs have been paid. 

 

	(c)	If charges for the transportation of a Shipper’s Petroleum remain unpaid for ten days after notice of demand for payment of such charges is made to such Shipper by
the Carrier, then the Carrier shall have the right to remove and sell any or all of such Shipper’s NGL that is in the possession of the Carrier in such lawful manner as deemed appropriate by the Carrier. 

 

	(d)	The Carrier shall pay from the proceeds of such sale all charges and costs accruing or due relating to the transportation of such Shipper’s Petroleum by the
Carrier and all costs incurred by the Carrier with respect to the storage, removal and sale of such Shipper’s NGL. The remainder of such proceeds, if any, shall be held by the Carrier for the Shipper and any other party lawfully entitled to
such proceeds. 

  

	(e)	When required, the Carrier shall, with or without notice to the Shipper, appoint agent(s) to retain possession of the Shipper’s NGL on behalf of the Carrier for
the purpose of enforcing the general lien described in this Rule. The Carrier hereby advises that it has appointed Enbridge Pipelines Inc. as one agent appointed to hold possession of the Shipper’s for the purpose of enforcing its general lien.

 10. MEASURING, TESTING AND DEDUCTIONS 

 
  

	(a)	The Carrier shall meter, or cause to be metered, a Shipper’s NGL upon receipt and delivery by the Carrier. The Shipper or the designate of the Shipper may be
present at such metering. The Carrier shall have the right to enter the premises where NGL is received or delivered by the Carrier and shall be granted access to all facilities for the purpose of metering and to make any examination, inspection,
measurement or test as required by the Carrier to verify the accuracy of such facilities and the quality of such Shipper’s NGL. 

  

	(b)	The Carrier shall correct the density and volume of NGL received and delivered by the Carrier from the actual temperature of such NGL to 15 degrees Celsius by use of
ASTM-IP Petroleum Measurement Tables 53 and 54, Metric Edition, or the latest revision to such Tables. 

  

	(c)	The Carrier shall correct the metered volume of NGL for compressibility by the use of API Manual of Petroleum Measurement Standards, Chapter 11.2.2M or the latest
revision to such Chapter. 

  

	(d)	The Carrier shall determine the equilibrium vapor pressure of NGL as required by the Carrier for volume corrections. 

 

	(e)	The Carrier shall determine the absolute vapor pressure of NGL by the use of ASTM D 1267 or the latest revision to such Standard. 

 

	(f)	The Carrier shall, as deemed necessary by the Carrier, adjust the measured volume of NGL for shrinkage resulting from the blending or other addition of Crude Petroleum
with NGL in accordance with API Bulletin 2509 C or the latest revision to such Bulletin. 

  

	(g)	The Carrier shall determine the copper strip corrosion of NGL by the use of ASTM D 1838 or the latest revision to such Standard. 

 FERC No. 42.1.0 

Page 6 
  

	(h)	The results of all such metering and testing by the Carrier shall be final. 

 

	(i)	The Carrier shall deduct, as allowance oil, 1/20 of 1 percent of the volume of NGL delivered to the Shipper to cover losses inherent in the transportation by the
pipeline. 

 11. EVIDENCE OF RECEIPTS AND DELIVERIES 

 
 The Carrier shall evidence the receipt and
delivery of NGL by tickets showing the volume, type, temperature, vapour and meter pressure, density and any other data with respect to such NGL as may be specified from time to time by the Carrier. Such tickets shall be signed by the Shipper, or
the designate of the Shipper, and the Carrier. 
 12. DELIVERY AND ACCEPTANCE 

 
  

	(a)	A Shipper or the designate of the Shipper shall accept such Shipper’s NGL upon arrival at the designated Regular Delivery Point for such NGL.

  

	(b)	If a Shipper fails to remove its NGL from the facilities of the Carrier in accordance with the provisions of paragraph (a) of Rule 12 of this tariff, then the
Carrier shall have the right to remove and sell such NGL in such lawful manner as deemed appropriate by the Carrier. The Carrier shall pay from the proceeds of such sale all costs incurred by the Carrier with respect to the storage, removal and sale
of such NGL. The remainder of such proceeds, if any, shall be held by the Carrier for the Shipper and any other party lawfully entitled to such proceeds. 

 13. LIABILITY OF THE CARRIER 
  

 

	(a)	Except where caused by the direct negligence of the Carrier, the Carrier shall not be liable to a Shipper for any delay, damage, loss or consequential loss resulting
from any cause while the Carrier is in possession or control of such Shipper’s NGL, including without limitation the breakdown of the facilities of the Carrier. 

 

	(b)	If damage or loss to Petroleum results from any cause other than the direct negligence of the Carrier while the Carrier is in possession or control of such Petroleum,
then the Carrier may apportion the cost of such damage or loss on a pro rata basis among all Shippers. Each Shipper’s share of such cost shall be determined by the Carrier based on the proportion of the volume of the Shipper’s NGL in the
possession of the Carrier on the date of such loss to the total volume of Petroleum in the possession of the Carrier on the date of such loss. 

 14. IDEMNIFICATION BY THE SHIPPER 
  
 A Shipper shall indemnify the Carrier for any damage, loss, costs or consequential loss incurred by the Carrier or any other party as a result of such Shipper’s failure to comply with any provision
of this tariff. 
 15. APPORTIONMENT AND SUBSTITUTION 

 
  

	(a)	If more Refined Petroleum Products, NGL and associated buffer material are tendered than can be transported by the Carrier, then the Carrier shall apportion such
tenders on a pro rata basis among all such Shippers on the basis of such current tenders and the current operating conditions of the facilities of the Carrier applicable to the transportation of Refined Petroleum Products and NGL.

  

	(b)	If a Shipper fails, without reasonable cause in the judgment of the Carrier, to ship its apportioned volume of Refined Petroleum Products and NGL within the month of
apportionment, then the Carrier shall limit the total volume of Refined Petroleum Products and NGL accepted by the Carrier from such Shipper in each of the next three months in which apportionment of Refined Petroleum Products and NGL occurs to not
more than the total volume of Refined Petroleum Products and NGL received by the Carrier from such Shipper in the month of non-performance. 

  

	(c)	A Shipper may substitute Crude Petroleum for NGL by revising its Tender of NGL and its Tender of Crude Petroleum provided that: 

 

	 	(i)	such revision does not cause the Shipper to exceed its original Tender of Crude Petroleum; and 

 

	 	(ii)	as determined by the Carrier, such revision does not increase Crude Petroleum apportionment. 

 FERC No. 42.1.0 

Page 7 
  

 16. REQUESTED CHANGES BY THE SHIPPER 

 
  

	(a)	Subject to the operating conditions of the facilities of the Carrier, the Carrier may, upon the written request of a Shipper, allow a Shipper to change:

  

	 	(i)	the designated Regular Receiving Point for its NGL; 

  

	 	(ii)	the designated volume of its NGL to be received at a designated Regular Receiving Point; 

 

	 	(iii)	the designated Regular Delivery Point for its NGL; 

  

	 	(iv)	the designated volume of its NGL to be delivered to a designated Regular Delivery Point; and 

 

	 	(v)	the party designated to take delivery of its NGL. 

  

	(b)	The Carrier may allow a Shipper to transfer, in such a manner as may be specified by the Carrier from time to time, such Shipper’s rights and obligations under
this tariff respecting its NGL to another Shipper. 

  

	(c)	A transfer of a Shipper’s rights and obligations under Rule 16(b) of this tariff respecting its NGL will not be binding or effective on the Carrier until the
Carrier has provided a notice of acceptance to the transferor and transferee. The Carrier will not provide a notice of acceptance of a transfer until such time as the transferee has satisfied the Carrier of its capacity to undertake the
transferor’s obligations and has provided any Financial Assurances requested by the Carrier in accordance with Rule 20 of this tariff. 

 17. ADVERSE CLAIMS AGAINST NGL 
  

 

	(a)	A Shipper shall not Tender or deliver to the Carrier NGL which is involved in litigation, the ownership of which may be in dispute or which is encumbered by a lien or
charge of any kind unless the Shipper provides written notification to the Carrier of such litigation, dispute, lien or charge not less than 20 days before such Tender is made to the Carrier. 

 

	(b)	The Carrier shall not be obligated to accept NGL that is involved in litigation, the ownership of which may be in dispute or which is encumbered by a lien or charge of
any kind. 

  

	(c)	A Shipper shall advise the Carrier in writing if, at any time while the Shipper’s NGL is in the possession of the Carrier, such NGL becomes involved in litigation,
the ownership of such NGL becomes in dispute or such NGL becomes encumbered by a lien or charge of any kind. 

  

	(d)	A Shipper shall, upon demand from the Carrier, provide a bond or other form of indemnity satisfactory to the Carrier protecting the Carrier against any liability or
loss that may arise as a result of such Shipper’s NGL that is involved in litigation, the ownership of which may be in dispute or which is encumbered by a lien or charge of any kind. 

18. CLAIMS, SUITS AND TIME FOR FILING 

 
  

	(a)	A Shipper shall advise the Carrier in writing of any claim for delay, damage or loss resulting from the transportation of such Shipper’s NGL by the Carrier within
nine months of delivery of such NGL by the Carrier or, in the case of a failure to make delivery, then within nine months after a reasonable time for delivery has elapsed. 

 

	(b)	A Shipper shall institute any action arising out of any claim against the Carrier within two years from the date that written notice is given by the Carrier to such
Shipper that the Carrier has disallowed such claim or any part of such claim. 

  

	(c)	If a Shipper fails to comply with the provisions of paragraph (a) or paragraph (b) of Rule 18 of this tariff, then such Shipper waives all rights it has to
bring an action against the Carrier with respect to such claim. 

 19. COMPONENT MEASUREMENT AND BALANCING 

 
  

	(a)	Subject to paragraph (b) of this Rule, the acceptance by Carrier of any NGL for transportation shall be on the condition that NGL component measurement and
balancing shall be the responsibility of the Shippers and shall not be provided for by the Carrier. 

 FERC No. 42.1.0 

Page 8 
  

	(b)	In the event that a Shipper requests transportation service and is unable to arrange or provide for component measurement and balancing as contemplated in paragraph
(a) of this Rule, such Shipper may notify the Carrier in writing of its inability to make such arrangements. 

  

	(c)	Upon receipt of a notice referred to in paragraph (b) of this Rule, Carrier shall implement in a timely manner a method by which components of tendered NGL will be
measured and reported to Shippers and shall endeavor to provide or arrange for a method by which components of tendered NGL will be balanced. 

 20. FINANCIAL ASSURANCES 
  

 

	(a)	At any time, upon the request of the Carrier, any prospective or existing Shipper shall provide information to the Carrier that will allow the Carrier to determine the
prospective or existing Shipper’s capacity to perform any financial obligations that could arise from the transportation of that Shipper’s NGL under the terms of this tariff, including the payment of transportation charges, equalization
obligations and the value of the allowance oil and negative Shipper’s balance positions. The Carrier shall not be obligated to accept NGL for transportation from an existing or prospective Shipper if the Shipper or prospective Shipper fails to
provide the requested information to the Carrier within ten (10) days of the Carrier’s written request, or if the Carrier’s review of the requested information reveals that the existing or prospective Shipper does not have the
capacity to perform any financial obligations that could arise from the transportation of that Shipper’s NGL under the terms of this tariff, including the payment of transportation charges, equalization obligations and the reasonably determined
value of the allowance oil and negative Shipper’s balance positions. 

  

	(b)	Subject to the provisions of Rule 20(c), the Carrier, upon notice to the Shipper, may only require one or more of the following Financial Assurances for the payment of
all charges and costs as provided for in this tariff, or otherwise lawfully due to the Carrier, to be provided at the expense of the Shipper: 

  

	 	(i)	prepayment; 

  

	 	(ii)	a letter of credit in favor of Carrier in an amount sufficient to ensure payment of all costs and charges that could reasonably accrue due to the Carrier, in a form and
from an institution acceptable to Carrier; 

  

	 	(iii)	a guaranty in an amount sufficient to ensure payment of all such costs and charges that could reasonably accrue due to the Carrier, in a form and from a third party
acceptable to Carrier; or 

  

	 	(iv)	such other enforceable collateral security, including but not limited to security agreements over assets of the Shipper, in a form acceptable to the Carrier (“the
Financial Assurances”). 

  

	(c)	In the event that the Carrier reasonably determines that: 

  

	 	(i)	the existing or prospective Shipper’s financial condition is or has become impaired or unsatisfactory; 

 

	 	(ii)	any Financial Assurances previously provided by a Shipper no longer provide adequate security for the performance of the Shipper’s obligations that could arise
from the transportation of its NGL under the terms of this tariff; or 

  

	 	(iii)	the Carrier otherwise determines that it is necessary to obtain Financial Assurances from the Shipper, then the Shipper shall provide Financial Assurances for the
payment of the charges and costs as provided for in this tariff or otherwise lawfully due to the Carrier relating to the transportation of the Shipper’s NGL by the Carrier. For the purpose of this tariff, and without limiting the generality of
the charges and costs lawfully due to the Carrier relating to the transportation of the Shipper’s NGL, those charges and costs shall include transportation charges, equalization obligations, negative Shipper’s balance positions and the
allowance oil. The Carrier shall not be obligated to accept NGL for transportation from an existing or prospective Shipper if the Shipper or prospective Shipper fails to deliver the Financial Assurances to Carrier within ten (10) days of
Shipper’s receipt of Carrier’s written request for such Financial Assurances. 

 Symbols: 

[C] – Cancel 
 [N] – New 

[W] – Change in wording only 

 Attachment 4 
 Division of Revenues 
 The International Joint Tariff Administrator shall collect from the
shippers the transportation revenue for all crude petroleum shipped under the International Joint Tariffs in effect at the time of transportation and shall distribute the appropriate share of transportation revenue to each of the Parties to the
International Joint Tariffs as follows: 
 No later than 30 days following the end of each month during the Term, the International Joint Tariff
Administrator shall pay to EELP as its division of the joint toll revenue for that month the following aggregate amount in U.S. dollars: 
 (1) for each delivery point on the Lakehead System to which deliveries have been made under the International Joint Tariff during such month, the volume so delivered (for which tolls were paid under the
International Joint Tariff), multiplied by the then-current Lakehead local tariff rate (as such local tariff rate may change from time to time in accordance with applicable FERC regulations and orders) that would have applied for a movement from the
international border near Gretna, Manitoba to such delivery point and 
 (2) the dollar value of all Allowance Oil collected by
EPI with respect to volumes transported on the Lakehead System under the International Joint Tariff during such month. 
 The
remaining aggregate revenue derived from movements under the International Joint Tariff for such month shall accrue to EPI. 

  
 - 64 -Unassociated Document

 

FOURTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

 

This Fourth Amendment to Amended and Restated Credit Agreement (this "Amendment Agreement") is dated as of June 28, 2011 by and among Lower Lakes Towing Ltd., Lower Lakes Transportation Company, Grand River Navigation Company, Inc., the other Credit Parties signatory hereto, the other Lenders signatory hereto and General Electric Capital Corporation, as Agent.

 

 

W I T N E S S E T H :

 

WHEREAS, the Credit Parties, the lenders party thereto, and the Agent entered into that certain Amended and Restated Credit Agreement dated as of February 13, 2008 and amended as of June 24, 2008, June 23, 2009 and August 9, 2010 (the "Credit Agreement");

 

WHEREAS, the Credit Parties have previously indicated to the Agent and the Lenders that their Capital Expenditures for the four Fiscal Quarter period ending June 30, 2011 may exceed the limitation specified in Annex G of the Credit Agreement; and

 

WHEREAS, the Lenders and the Agent have agreed to further amend the Credit Agreement to effect certain changes thereto requested by the Credit Parties as set forth herein.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

1. Defined Terms.  Capitalized terms used herein and not otherwise defined herein shall have the meanings attributed to such terms in the Credit Agreement, as amended hereby.

 

2. Amendments to Credit Agreement.

 

2.1. Section 1.1(b) of the Credit Agreement is hereby amended by (w) deleting the reference in the title to “(Cdn.$61,700,000)” and replacing it with a reference to “(Cdn.$65,700,000)”, (x) renumbering clauses “(ii), (iii) and (iv)” as “(iv), (v) and (vi)”, respectively, (y) inserting the following clauses (ii) and (iii) as follows:

 

  

 

  

 

(ii)  On each Delayed Draw Date, subject to the terms and conditions in clause (iii) of this Section 1.1(b) below, GE Capital shall make available funds in an amount not to exceed the Delayed Draw Cdn. Term Loan Commitment to be drawn on not more than three (3) dates in immediately available funds to the Agent (the Loans made on such dates the “Delayed Draw Cdn. Term Loans” and, collectively with the outstanding Cdn. Term Loan, the “Cdn Term Loans”).  The borrowing of each Delayed Draw Cdn. Term Loan shall be in a minimum amount of $750,000 and integral multiples of $50,000 in excess of that amount.  The Delayed Draw Cdn. Term Loan Commitment shall expire on the earliest of (i) the date the Delayed Draw Cdn. Term Loan Commitment is permanently reduced to zero, (ii) the date of the termination of the Commitments pursuant to Section 8.2 and (iii) December 1, 2011, and any portion of the Delayed Draw Cdn. Term Loan Commitment unused by Lower Lakes as of such date shall be automatically terminated (the “Delayed Draw Cdn. Term Loan Commitment Termination Date”).  Lower Lakes covenants and agrees that it shall use the proceeds of the Delayed Draw Cdn. Term Loans to purchase the vessel referred to as the “Maritime Trader” from the bankruptcy estate of Voyageur Maritime Trading Inc. and for closing costs, capital expenditures, surveys, drydocking, modifications required for registration and repairs thereto.  Unless otherwise specifically provided in this Agreement, all references in this Agreement and the other Loan Documents to Cdn. Term Loans shall be deemed, unless the context otherwise requires, to include the Delayed Draw Cdn. Term Loans.  Lower Lakes may at any time, on at least five (5) days' prior written notice to Agent, terminate the Delayed Draw Cdn. Term Loan Commitment; provided, that any such termination must be accompanied by payment of the fee required by Section 1.8(f).  Upon any such termination, Lower Lakes's right to request a Delayed Draw Cdn. Term Loan shall simultaneously be permanently terminated.

 

(iii)  The obligation of GE Capital to make Loans in respect of its Delayed Draw Cdn. Term Loan Commitment is, in addition to the conditions precedent specified in Section 2.2 hereof, subject to the conditions precedent that (i) the Agent shall have received all of the following, to the extent applicable, each duly executed and dated as of the date of funding of the Delayed Draw Cdn. Term Loan requested by Lower Lakes (or such earlier date as shall be satisfactory to the Agent), in form and substance reasonably satisfactory to the Agent and (ii) as applicable, each of the following statements shall be true and correct as of such date (each such date on which all such conditions precedent have been satisfied or waived in writing by the Agent is called a “Delayed Draw Date” and, collectively, all such dates shall be the "Delayed Draw Dates"):

 

(a)  Notice of Borrowing.  An irrevocable notice of borrowing with respect to the advance to be made on the applicable Delayed Draw Date.

 

(b)  Letter of Direction.  Agent shall have received a duly executed letter of direction from Lower Lakes addressed to Agent, on behalf of itself and the Lenders, directing the disbursement of the proceeds of the Delayed Draw Cdn. Term Loan on the Delayed Draw Date.

 

(c)  Compliance Certificate.  A Compliance Certificate delivered by Lower Lakes to Agent indicating that Rand and its Subsidiaries are in compliance with the Financial Covenants after giving pro forma effect to the Delayed Draw Cdn. Term Loan to be made on the Delayed Draw Date.

 

(d)  Closing Certificate.  A certificate executed by an officer of Lower Lakes on behalf of the Credit Parties certifying the matters set forth as conditions to the Delayed Draw Date.

(e)  Draw for Vessel Purchase.  Evidence in form and substance acceptable to the Agent regarding Lower Lakes’s bid for such vessel, including the following:

 

  

2

  

 

(i) Lower Lakes’s bid for the Vessel shall have been chosen as the winning bid by Marcon International, Inc. (the “Broker”) in its capacity as court-appointed seller of such vessel pursuant to the court sale process in Court file number T-416-11 as approved by the Federal Court of Canada, and Lower Lakes shall have received and provided to Agent in form and substance acceptable to Agent:

 

(A)  a copy of the approval order;

 

(B)  a bill of sale for sale of the vessel and any other purchased assets in a form registerable under the Canada Shipping Act;

 

(C)  the current certificate of registry; and

 

(D)  any classification certificate(s) in the possession of Pricewaterhouse Coopers Inc. in its capacity as court-appointed receiver of the current owner of such vessel in Ontario Superior Court of Justice Court File No. CV-11-9142-OOCL  (the “Receiver”) as well as all plans which are on board the vessel, together with such other technical documentation and certificates which may be in the Receiver’s possession as well as copies of logs, if any; and

 

(ii)  (A) the purchase of such vessel shall have been completed in accordance with the Agreement of Purchase and Sale dated June 24, 2011 between Marcon International, Inc. and Rand Logistics, Inc. and (B) all conditions precedent to such purchase shall have been met (or waived with the consent of Agent) and such purchase shall have been consummated in accordance with the terms of the purchase agreement (without any amendment, modification or waiver of any of the provisions thereof that would be materially adverse to Agent and the Lenders without the consent of Agent) and all requirements of law.

 

(f) Draws for Other Purposes.  Supporting invoices for Capital Expenditures and other uses for such draw.

 

(g)  Other Documents.  Such other certificates, documents and agreements as Agent may reasonably request.

and (z) deleting the sentence immediately following the amortization table in new subclause (iv) of Section 1.1(b) in its entirety and replacing it as follows:

The final installment due on the Commitment Termination Date shall be the remaining principal balance of the Cdn. Term Loans and any accrued and unpaid interest thereon (including the principal balance of the Delayed Draw Cdn. Term Loans).

2.2. Section 1.5 of the Credit Agreement is hereby amended by deleting paragraph (a) thereof in its entirety and replacing it with the following:

 

  

3

  

 

(a) Interest.  Each Borrower shall pay interest to Agent, for the ratable benefit of Lenders in accordance with the various Loans being made by each Lender, in arrears on each applicable Interest Payment Date, at the following rates: (i) with respect to Cdn. Revolving Credit Advances, Cdn. Swing Line Advances and the Cdn. Term Loan, the BA Rate plus four and one-half percent (4.50%) per annum or the Canadian Prime Rate plus three and one-half percent (3.50%) per annum, (ii) with respect to US Revolving Credit Advances, US Swing Line Advances and the US Term Loan, the US Base Rate plus three and one-half percent (3.50%) per annum or the applicable LIBOR Rate plus four and one-half percent (4.50%) per annum, as applicable, and (iii) with respect to the Engine Term Loan, the BA Rate plus five percent (5.00%) per annum or the Canadian Prime Rate plus four percent (4.00%) per annum.

 

2.3. Section 1.8 of the Credit Agreement is hereby amended by (a) deleting paragraph (c) thereof in its entirety and replacing it with the following:

 

(c)           If Lower Lakes or Grand River, as the case may be, prepays all or any portion of the Term Loans, if Lower Lakes or LLTC voluntarily terminates all or any portion of the Revolving Loan Commitments or if the indebtedness owing under the Term Loans and/or the Revolving Loans is accelerated and the Revolving Loan Commitments terminated, whether voluntarily or involuntarily, Lower Lakes, LLTC and/or Grand River, as applicable, shall pay to Agent, for the benefit of the applicable Lenders, as liquidated damages and compensation for the costs of being prepared to make funds available hereunder an amount equal to the Applicable Percentage (as defined below) multiplied by (x) the sum of the principal amount of the Term Loans paid or if unpaid, outstanding (in the case of acceleration) and (y) the amount of the Revolving Loan Commitments terminated, as applicable.  As used herein, the term “Applicable Percentage” shall mean (x) two percent (2.0%), in the case of a prepayment on or prior to June 30, 2012, and (y) one percent (1.0%), in the case of a prepayment after June 30, 2012 but on or prior to June 30, 2014.  The Credit Parties agree that the fee payable herein is a reasonable calculation of the applicable Lenders' lost profits in view of the difficulties and impracticality of determining actual damages resulting from an early termination of the Commitments.  Notwithstanding the foregoing, no prepayment fee shall be payable by Lower Lakes, LLTC or Grand River, as applicable, upon a mandatory prepayment made pursuant to Section 1.3(b) or 1.15(c); provided that in the case of prepayments made pursuant to Section 1.3(b)(ii) or (b)(iii), the transaction giving rise to the applicable prepayment is expressly permitted under Section 6.

 

and (b) adding a new section (f) as follows:

 

(f)  As additional compensation for GE Capital in respect of its Delayed Draw Cdn. Term Loan Commitment, Lower Lakes shall pay to Agent, for the benefit of GE Capital, in arrears, on the first Business Day of each month prior to the Delayed Draw Cdn. Term Loan Commitment Termination Date and on such date, a fee for each such month or other period for Lower Lakes’ non use of available funds under the Delayed Draw Cdn. Term Loan Commitment in an amount equal to one percent (1%) per annum (calculated on the basis of a 365 day year for actual days elapsed) multiplied by the unused amount of GE Capital's Delayed Draw Cdn. Term Loan Commitment during such month or other period.

 

  

4

  

 

2.4. Section 2.2 of the Credit Agreement is hereby amended by (a) deleting the reference to ”or” at the end of paragraph (b) thereof, (b) deleting the reference to “.” at the end of paragraph (c) thereof and replacing it with a reference to “;or” and (c) adding paragraph (d) as follows:

 

(d) after giving effect to any Advance and the contemporaneous uses of the proceeds thereof, the Credit Parties’ cash and Cash Equivalents would exceed $5,000,000.

 

2.5. Article 3 of the Credit Agreement is hereby amended by adding Sections 3.31 and 3.32 as follows:

 

3.31   Foreign Assets Control Regulations and Anti-Money Laundering.  Each Credit Party and each Subsidiary of each Credit Party is and will remain in compliance in all material respects with all U.S. economic sanctions laws, Executive Orders and implementing regulations as promulgated by the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”), and all applicable anti-money laundering and counter-terrorism financing provisions of the Bank Secrecy Act and all regulations issued pursuant to it.  No Credit Party and no Subsidiary or Affiliate of a Credit Party (i) is a Person designated by the U.S. government on the list of the Specially Designated Nationals and Blocked Persons (the “SDN List”) with which a U.S. Person cannot deal with or otherwise engage in business transactions, (ii) is a Person who is otherwise the target of U.S. economic sanctions laws such that a U.S. Person cannot deal or otherwise engage in business transactions with such Person or (iii) is controlled by (including without limitation by virtue of such person being a director or owning voting shares or interests), or acts, directly or indirectly, for or on behalf of, any person or entity on the SDN List or a foreign government that is the target of U.S. economic sanctions prohibitions such that the entry into, or performance under, this Agreement or any other Loan Document would be prohibited under U.S. law.

 

3.32  Patriot Act.  The Credit Parties, each of their Subsidiaries and each of their Affiliates are in compliance with (a) the Trading with the Enemy Act, and each of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B Chapter V, as amended) and any other enabling legislation or executive order relating thereto, (b) the Patriot Act and (c) other federal or state laws relating to “know your customer” and anti-money laundering rules and regulations.  No part of the proceeds of any Loan will be used directly or indirectly for any payments to any government official or employee, political party, official of a political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977.

 

  

5

  

 

2.6. Article 5 to the Credit Agreement is hereby amended by adding Sections 5.14 and 5.15 as follows:

 

5.14  OFAC; Patriot Act.  No Credit Party shall, and no Credit Party shall permit any of its Subsidiaries to fail to comply with the laws, regulations and executive orders referred to in Sections 3.31 and 3.32.

 

5.15  Depository Banks.  

 

Commencing not later than September 30, 2011, with such process to be completed not later than November 30, 2011, the Credit Parties and their Subsidiaries will provide that PNC Bank, N.A. or one of its Affiliates shall serve as their principal depository bank, including for the maintenance of operating, administrative, cash management, collection activity, and other deposit accounts for the conduct of their business, for so long as PNC Bank, N.A. or one of its Affiliates is a Lender.

 

2.7. Article 8 to the Credit Agreement is hereby amended by deleting Sections 8.1(b) in its entirety and replacing it with the following:

 

(b) Any Credit Party fails or neglects to perform, keep or observe any of the provisions of Section 1.4, 1.8, 5.4(a), 5.13, 5.15 or 6, or any of the provisions set forth in Annex C or G.

 

2.8. Annex A to the Credit Agreement is hereby amended by (a) adding the following new definitions thereto in alphabetical order:

 

Delayed Draw Cdn. Term Loan Commitment means as to GE Capital, its commitment to make the Delayed Draw Cdn. Term Loans in the maximum aggregate amount not to exceed Cdn.$4,000,000, as reduced by Cdn. Term Loans made on any Delayed Draw Date or otherwise as reduced pursuant hereto.

 

Delayed Draw Cdn. Term Loans has the meaning set forth in Section 1.1(b)(ii).

 

Delayed Draw Date has the meaning set forth in Section 1.1(b)(iii).

 

Liquidity means the sum of (a) unrestricted cash and Cash Equivalents, plus (b) US Borrowing Availability (without giving effect to the US Seasonal Facility), plus (c) Cdn. Borrowing Availability (without giving effect to the Cdn. Seasonal Facility).

 

(b) deleting the definitions of “BA Rate”, “Canadian Prime Rate”, “Cdn. Term Loan Commitment”, “Commitments” and “Term Loan” in their entirety and replacing them with the following:

 

  

6

  

 

BA Rate means, in respect of any BA Period applicable to a BA Rate Loan, the higher of (a) the rate per annum determined by Agent by reference to the average rate quoted on the Reuters Monitor Screen (Page CDOR, or such other Page as may replace such Page on such Screen on the purpose of displaying Canadian interbank bid rates for Canadian Dollar bankers’ acceptances) applicable to Canadian Dollars bankers’ acceptances with a term comparable to such BA Period as of 10:00 a.m. (Toronto time) two (2) Business Days before the first day of such BA Period, and (b) the rate per annum determined by Agent by reference to the average rate quoted on the Reuters Monitor Screen (Page CDOR, or such other Page as may replace such Page on such Screen for the purpose of displaying Canadian interbank bid rates for Canadian Dollar bankers’ acceptances) applicable to Canadian Dollars bankers’ acceptances with the same term as of 10:00 a.m. (Toronto time) two (2) Business Days before the first day of such BA Period.  If for any reason the Reuters Monitor Screen rates are unavailable BA Rate means the rate of interest determined by Agent that is equal to the arithmetic mean (rounded upwards to the nearest basis point) of the rates quoted by The Bank of Nova Scotia, Royal Bank of Canada and Canadian Imperial Bank of Commerce in respect of Canadian Dollar bankers’ acceptances with a term comparable to such BA Period.  No adjustment shall be made to account for the difference between the number of days in a year on which the rates referred to in this definition are based and the number of days in a year on the basis of which interest is calculated in the Agreement.

 

Canadian Prime Rate means, for any day, a floating rate equal to the higher of (a) the annual rate of interest quoted from time to time in the “Report on Business” section of The Globe and Mail as being “Canadian prime”, “chartered bank prime rate” or words of similar description and (b) the BA Rate existing on such day in respect of a BA Period of 30 days plus 1.35% per annum.  Any change in any interest rate provided for in the Agreement based upon the Canadian Index Rate shall take effect at the time of such change in the Canadian Index Rate.  No adjustments shall be made to account for the difference between the number of days in a year on which the rates referred to in this definition are based and the number of days in a year on the basis of which interest is calculated in the Agreement.

 

Cdn. Term Loan Commitment means (a) as to any Cdn. Term Lender with a Cdn. Term Loan Commitment, the commitment of such Lender to make its Pro Rata Share of the Cdn. Term Loan as set forth on Annex I to the Agreement or in the most recent Assignment Agreement executed by such Lender, and (b) as to all Cdn. Term Lenders with a Cdn. Term Loan Commitment, the aggregate commitment of all Lenders to make the Cdn. Term Loan, which aggregate commitment shall be Sixty Five Million Seven Hundred Thousand Canadian Dollars (Cdn. $65,700,000) on June 28, 2011.  For purposes of clarification, the Cdn. Term Loan Commitment shall include GE Capital's Delayed Draw Cdn. Term Loan Commitment.  After advancing the Cdn. Term Loan (including any Delayed Draw Cdn. Term Loan), each reference to a Lender's Cdn. Term Loan Commitment shall refer to that Lender's Pro Rata Share of the outstanding Cdn. Term Loan.

 

  

7

  

 

Commitments means (a) as to any Cdn. Lender, the aggregate of such Lender's Cdn. Revolving Loan Commitment (including without duplication the Cdn. Swing Line Lender’s Cdn. Swing Line Loan Commitment as a subset of its Cdn. Revolving Loan Commitment), Cdn. Term Loan Commitment (including without duplication the Delayed Draw Cdn. Term Loan Commitment) and Engine Term Loan Commitment and as to any US Lender, the aggregate of such Lender's US Revolving Loan Commitment (including without duplication the US Swing Line Lender’s US Swing Line Loan Commitment as a subset of its US Revolving Loan Commitment), and US Term Loan Commitment, all as set forth on Annex I to the Agreement or in the most recent Assignment Agreement executed by such Lender and (b) as to all Lenders, the aggregate of all Lenders' Revolving Loan Commitments (including without duplication the Swing Line Lender’s Swing Line Loan Commitment as a subset of its Revolving Loan Commitment) and Term Loan Commitments, as to each of clauses (a) and (b), as such Commitments may be reduced, amortized or adjusted from time to time in accordance with the Agreement.

 

Term Loan means the Cdn. Term Loan (including without duplication the Delayed Draw Cdn. Term Loans), the US Term Loan or the Engine Term Loan and “Term Loans” means all of them.

 

and (c) revising the definition of “Commitment Termination Date” by deleting the reference therein to “April 1, 2013” and replacing it with a reference to “April 1, 2015”.

 

2.9. Annex G to the Credit Agreement is hereby amended by (a) deleting paragraphs (a) and (d) thereof in their entirety and replacing them with the following:

 

(a) Minimum Fixed Charge Coverage Ratio.  Rand shall have on a consolidated basis, at the end of each Fiscal Quarter set forth below, a Fixed Charge Coverage Ratio for the 12-month period then ended of not less than the following:

 

 

	
Period

	
Ratio

	
June 30, 2010 through September 29, 2011

	
1.00:1.0

	
September 30, 2011 through December 31, 2011

	
1.10:1.0

	
March 31, 2012 through December 31, 2012

	
1.15:1.0

	
March 31, 2013 and for each Fiscal Quarter ending thereafter

	
1.20:1.0

 

(d)           Maximum Capital Expenditures.  Rand and its Subsidiaries on a consolidated basis shall not make Capital Expenditures on each of the test dates set forth below for the period of four Fiscal Quarters ending on such date that exceed in the aggregate the amounts set forth opposite each of such periods:

 

  

8

  

 

	
Test Dates

	
Maximum Capital

Expenditures per Period

	
June 30, 2011

	
Cdn.$11,000,000

	
June 30, 2012

	
Cdn.$8,200,000

	
Each June 30 thereafter

	
Cdn.$8,600,000

 

and (b) adding paragraph (f) as follows:

 

(f)           Minimum Liquidity.  Rand and its Subsidiaries (i) on a consolidated basis shall maintain Liquidity of not less than $5,000,000 on the last day of each Fiscal Year, commencing with the Fiscal Year ended March 31, 2012, and (ii) shall provide Agent and Lenders, within five (5) Business Days after the end of each month, commencing July 2011, with a projected liquidity level as of the end of the next Fiscal Year showing compliance with the level specified in clause (i), prepared on a basis in form and substance consistent with the requirements set forth in paragraph (c) of Annex E hereof, which reflects the payment of accounts payable and other expenses on a basis consistent with past practices and otherwise reasonably satisfactory to Agent.

 

3. Covenants.  The Credit Parties agree (a) to enter into an amendment and restatement of the Credit Agreement and amendments of the other Loan Documents within thirty-one (31) days after the date hereof that incorporates the terms and conditions set forth herein and in previous amendments to the Credit Agreement (to the extent applicable), a modification of the financial covenants on terms consistent with past practices and otherwise on mutually agreeable terms (including modifying the senior leverage test so that it is measured quarterly rather than annually), a revision to the amortization of the various term loans to reflect the extension of the term of the facilities on terms consistent with past practices, a revision to the end dates of the US Seasonal Facility and the Cdn. Seasonal Facility from July 31 to June 30 and such other modifications and additions to the Credit Agreement which shall be reasonably requested by Agent and Lenders, including those which reflect current customary practices for similar credit facilities which have not heretofore been incorporated in the Credit Agreement, and (b) in connection therewith, to provide such other deliveries which shall reasonably be requested by Agent and Lenders on a basis consistent with past practices.  Any breach of any of the above covenants shall constitute an immediate Event of Default under the Credit Agreement.

 

4. Conditions to Effectiveness.  The effectiveness of this Amendment Agreement is expressly conditioned upon the execution of this Amendment Agreement by the Credit Parties, the Agent and the Requisite Lenders and the satisfaction of the following conditions:

 

  

9

  

 

(a) Cdn. Term Note.  Lower Lakes shall provide a duly executed original of a replacement Cdn. Term Note dated the date hereof, reflecting the terms set forth in Section 2 hereof.

 

(b) Reaffirmation.  Each Credit Party shall have executed and delivered the Reaffirmation of Guaranty in the form of Exhibit A attached hereto.

 

(c) Secretary’s Certificate.  Agent shall have received from Lower Lakes, its (i) constating documents and all amendments thereto, (ii) certificates of compliance or status (or applicable equivalent thereof) evidencing Lower Lakes' qualification to conduct business in each jurisdiction where its ownership or lease of property or the conduct of its business requires such qualification, each dated a recent date prior to the date of this Amendment Agreement and certified by the applicable authorized Governmental Authority, (iii) bylaws, together with all amendments thereto, and (iv) resolutions of its board of directors approving and authorizing Lower Lakes's execution, delivery and performance of this Amendment Agreement and the transactions contemplated by such documents, all certified by its board of directors as being in full force and effect without modification as of the date hereof.

 

(d) Payment of Fees and Attorney Costs.  The Borrowers shall have paid the Agent (i) the fees referred to in those certain fee letters dated June 28, 2011 by and among the Borrowers and Agent, (ii) costs and expenses of Agent incurred by it in connection with the transactions contemplated by this Amendment Agreement and (iii) the reasonable fees and expenses of legal counsel of Agent in connection with the preparation and negotiation of this Amendment Agreement and the transactions contemplated thereby.

 

(e) Material Adverse Effect.  There shall not exist or have occurred a Material Adverse Effect.

 

(f) No Defaults.  No Event of Default or Default under the Credit Agreement or any Material Contract shall have occurred and be continuing.

 

(g) Representations and Warranties.  The representations and warranties set forth in Section 5 hereof are true and correct.

 

(h) Officer's Certificate.  Agent shall have received duly executed originals of a certificate of an officer of Lower Lakes, dated the date hereof, stating that (a) since March 31, 2010, (i) no event or condition has occurred or is existing which could reasonably be expected to have a Material Adverse Effect, (ii) there has been no material adverse change in the industry in which Borrowers operate, (iii) no Litigation has been commenced which, if successful, would have a Material Adverse Effect or could challenge any of the transactions contemplated by the Amendment Agreement and the other Loan Documents, (iv) there have been no Restricted Payments made by any Credit Party, and (v) after giving effect to seasonality, the growth in the business and the timing of capital expenditures, there has been no material increase in liabilities, liquidated or contingent, and no material decrease in assets of the Borrowers or any of their Subsidiaries, and (b) after giving effect to the transactions contemplated by the Amendment Agreement, each Credit Party will be Solvent.

 

  

10

  

 

(i) Consents.  The Borrowers shall have received all necessary or required consents from Governmental Authorities and third parties in respect of the execution, delivery and performance of this Amendment Agreement and the other Loan Documents.

 

(j) Other Documents.  The Borrowers shall provide such other documents, instruments and agreements as the Agent may reasonably request.

 

4.2. Representations and Warranties of the Credit Parties.

 

(a) Each Credit Party is in good standing in its jurisdiction of incorporation or formation and is duly qualified in each jurisdiction where, because of the nature of its activities or properties, such qualification is required, except for such jurisdictions where the failure to so qualify could not reasonably be expected to have a Material Adverse Effect, and has all requisite power and authority to execute, deliver and perform this Amendment Agreement.

 

(b) The execution, delivery and performance of this Amendment Agreement (i) have been duly authorized by all requisite action of the Credit Parties and (ii) will not (A) contravene the terms of any Credit Party’s charter, by-laws or other organizational documents, (B) violate any provision of applicable law, or (C) conflict with or result in any material breach or contravention of, or the creation of any Lien under, any document evidencing any material contractual obligation to which any Credit Party is a party or any order, injunction, writ or decree of any governmental authority to which any Credit Party or its property is subject.

 

(c) Each of the Credit Parties represents and warrants that the execution, delivery and performance by each of the Credit Parties of this Amendment Agreement and the documents and instruments delivered in connection therewith have been duly authorized by all necessary corporate action and that this Amendment Agreement is a legal, valid and binding obligation of such Credit Party, enforceable against such Credit Party in accordance with its terms, except as the enforcement thereof may be subject to (i) the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar law affecting creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforcement is sought in a proceeding in equity or at law).

 

(d) Each of the Credit Parties hereby certifies that each of the representations and warranties contained in the Credit Agreement and the other Loan Documents (as amended through the date hereof) is true and correct in all material respects on and as of the date hereof as if made on the date hereof, except to the extent that any such representation or warranty is stated to relate solely to an earlier date, in which case such representation or warranty shall be true and correct on and as of such earlier date.

 

(e) After giving effect to this Amendment Agreement, no Default or Event of Default exists on the date hereof.

 

  

11

  

 

(f) Since December 31, 2010, no Vessel owned or operated by any Credit Party has suffered any damage or caused damage to any other Person that could reasonably be expected to result in an expenditure by any Credit Party of an amount in excess of $400,000, other than the McKee Sons grounding incident occurring on April 23, 2011.

 

5. Reference to and Effect on the Credit Agreement.

 

(a) Upon the effectiveness of this Amendment Agreement, each reference in the Credit Agreement to "this Agreement," "hereunder," "hereof," "herein" or words of like import and each reference to the Credit Agreement in each Loan Document shall mean and be a reference to the Credit Agreement as amended hereby.

 

(b) Except as specifically amended above, all of the terms, conditions and covenants of the Credit Agreement and the other Loan Documents shall remain unaltered and in full force and effect and shall be binding upon the Credit Parties in all respects and are hereby ratified and confirmed.

 

(c) The execution, delivery and effectiveness of this Amendment Agreement shall not operate as a waiver of (i) any right, power or remedy of any Lender or the Agent under the Credit Agreement or any of the other Loan Documents, or (ii) any Event of Default or Default under the Credit Agreement.

 

6. CHOICE OF LAW.  THIS AMENDMENT AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS (AND NOT THE LAW OF CONFLICTS) OF THE STATE OF NEW YORK.

 

7. Execution in Counterparts.  This Amendment Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.

 

8. Headings.  Section headings in this Amendment Agreement are included herein for convenience of reference only and shall not constitute a part of this Amendment Agreement for any other purposes.

 

[signature pages follow]

 

  

12

  

 

IN WITNESS WHEREOF, the Credit Parties, the Agent and the Lenders have executed this Amendment Agreement as of the date first above written.

 

 

	 	
LOWER LAKES TOWING LTD.

	 
	 	 	 	 
	
 

	
By: 

	
/s/ Joseph W. McHugh, Jr.

	 
	 	 	 	 
	 	
Title: 

	
Vice President

	 
	 	 	 	 

 

	 	

LOWER LAKES TRANSPORTATION COMPANY

	 
	 	 	 	 
	
 

	
By: 

	
/s/ Joseph W. McHugh, Jr.

	 
	 	 	 	 
	 	
Title: 

	
Vice President

	 
	 	 	 	 

 

	 	

GRAND RIVER NAVIGATION COMPANY, INC.

	 
	 	 	 	 
	
 

	
By: 

	
/s/ Joseph W. McHugh, Jr.

	 
	 	 	 	 
	 	
Title: 

	
Vice President

	 
	 	 	 	 

 

	 	

RAND LOGISTICS, INC.

	 
	 	 	 	 
	
 

	
By: 

	
/s/ Joseph W. McHugh, Jr.

	 
	 	 	 	 
	 	
Title: 

	
Vice President & CFO

	 
	 	 	 	 

 

  

 

  

 

	 	

RAND LL HOLDINGS CORP.

	 
	 	 	 	 
	
 

	
By: 

	
/s/ Joseph W. McHugh, Jr.

	 
	 	 	 	 
	 	
Title: 

	
Vice President & CFO

	 
	 	 	 	 

 

	 	

RAND FINANCE CORP.

	 
	 	 	 	 
	
 

	
By: 

	
/s/ Joseph W. McHugh, Jr.

	 
	 	 	 	 
	 	
Title: 

	
Vice President & CFO

	 
	 	 	 	 

 

	 	

GENERAL ELECTRIC CAPITAL CORPORATION, as Agent, L/C Guarantor, Documentation Agent and Lender

	 
	 	 	 	 
	
 

	
By: 

	 
/s/ Joseph Tunney

	 
	 	 	 	 
	 	
Title: 

	 
Duly Authorized Signatory

	 
	 	 	 	 

 

	 	

PNC BANK, N.A., as Co-Syndication Agent and Lender

	 
	 	 	 	 
	
 

	
By: 

	 
/s/ Lisa Lisi

	 
	 	 	 	 
	 	
Title: 

	 
 
Vice President

	 
	 	 	 	 

 

  

 

  

 

	 	

PNC BANK CANADA BRANCH, as Co-Syndication Agent and Lender

	 
	 	 	 	 
	
 

	
By: 

	 
/s/ 

	 
	 	 	 	 
	 	
Title: 

	 
Senior Vice President

	 
	 	 	 	 

 

	 	

KBC BANK, as Lender

	 
	 	 	 	 
	
 

	
By: 

	 
/s/ Katherine S. McCarthy

	 
	 	 	 	 
	 	
Title: 

	 
Director

	 
	 	 	 	 

 

	
 

	
By: 

	 
/s/ Thomas R. Lalli

	 
	 	 	 	 
	 	
Title: 

	 
Managing Director

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