Alliance Pipeline Inc.

Alliance Pipeline Inc.

August 10, 2015 16:13 ET

Alliance Pipeline Commences Flaring in Southeast Saskatchewan

CALGARY, ALBERTA--(Marketwired - Aug. 10, 2015) - Alliance Pipeline announces that it has commenced flaring operations to remove natural gas containing hydrogen sulphide (H2S) from its mainline pipeline system.

Flaring operations began at a mainline block valve site near Arcola on the evening of August 9, 2015. Alliance will be operating a number of flares at its Alameda compressor station and at the Arcola block valve, both located in southeastern Saskatchewan. Start-up is dependent on a number of safety and operational considerations associated with the flaring process, but is projected for the latter part of this week.

"Flaring operations are progressing and we are clearing the H2S contained in a small segment of our pipeline in a safe, effective manner," said Daniel Sutherland, Vice President, Commercial Operations. "Safety is our top priority and crews are following strict regulatory and safety protocols. We are working hard to resolve this matter as soon as possible to minimize the disruption being experienced by our shippers."

After careful consideration, Alliance decided that flaring is the safest method to remove the H2S from its pipeline system. Flaring is a proven practice and is widely used by the oil and gas industry in western Canada. Alliance is following regulatory procedures and has taken additional precautionary measures to protect people, the site and the surrounding area. Monitoring stations have been installed to ensure that air quality standards are being met.

To replace linepack lost as a result of the flaring process, Alliance intends to initiate purchasing natural gas. In addition, Alliance will evaluate the opportunity to purchase additional volumes to assist in the expeditious start-up of the pipeline. Alliance will invite shippers to bid at the beginning of the week, and will commence these purchases prior to restarting the pipeline. Shippers will be asked to contact their customer service representative for further information.

Alliance shut down its mainline pipeline system on August 7, 2015 following the detection of H2S that entered its system as a result of complications experienced by an upstream operator. The company has established an informational website, www.aplshutdown.com, and will issue further updates as more information becomes available.

About the Alliance Pipeline system:

The Alliance Pipeline system consists of an approximately 3,719-kilometer (2,311-mile) integrated Canadian and U.S. natural gas transmission pipeline system, delivering rich natural gas from the Western Canadian Sedimentary Basin and the Williston Basin to the Chicago market hub. The United States portion of the system consists of approximately 1,577 kilometers (980 miles) of infrastructure including the 128-kilometer (80-mile) Tioga Lateral in North Dakota. The Alliance system delivers, on average, about 45.3 million standard cubic metres (or 1.6 billion standard cubic feet) of natural gas per day. More information about the company is available at www.alliancepipeline.com.

Alliance Pipeline Limited Partnership ("Alliance Canada") owns the Canadian portion of the Alliance Pipeline system. Alliance Pipeline L.P. ("Alliance U.S.A.") owns the U.S. portion of the Alliance Pipeline system. Both Alliance Canada and Alliance U.S.A. are owned 50 percent each by affiliates of Enbridge Income Fund Holdings Inc. (TSX:ENF) and Veresen Inc. (TSX:VSN).

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