Message from the

President

Our five operational goals support our mission of connecting our network of people and assets to safely deliver exceptional results.

Dean Liollio

President

Plains Midstream Canada


Creating efficiencies with innovation, developing stronger teams through training and collaboration, and continuing to expand our social responsibility efforts were three key areas that Plains Midstream Canada (PMC) focused on in 2019. These elements are reflected in the theme of our 2019 Report to Stakeholders and Communities: Delivering Value Through our Expertise.

On the innovation front, technology played a significant role in the achievement of our objectives, highlighted in several examples throughout this report. As you will read, advancements implemented across our business were not only effective in creating more value for the company, but also enhanced safety for employees, contractors and residents in the communities where we operate.

Our investments in innovation also resulted in robust leader training and employee development initiatives to help build stronger teams. We have highlighted examples of leadership engagement in both our corporate and field locations, as well

as one of our unique employee training programs at our Operational Control Centre.

Our continued focus on social responsibility is driven by our leadership team and fully supported throughout the organization. In 2019, PMC formalized company oversight for social responsibility and identified three key pillars: implementation, community building and disclosure. Implementation involves incorporating socially responsible practices and risk mitigation into our operations. Community building is something PMC has taken great pride in over the years, and our expanding Community Investment Program encourages more volunteerism among employees across all operational areas. We have featured some of our employees’ community giving efforts in this year’s report. To address disclosure, we created a baseline for reporting to better understand, monitor and continuously improve socially responsible practices within our operations. We are now starting to use Environmental, Social and Governance (ESG) criteria as part of our reporting, which is available on pages 6 and 7 of this report.

Delivering Value Through our Expertise also includes PMC’s overall role in the energy value chain. Our experienced and dedicated employees are instrumental in helping producers of crude oil and natural gas liquids safely transport their products to processing and storage facilities across Canada and the United States. Our contribution allows end consumers to put fuel in their cars, heat their homes and enjoy hundreds of products manufactured from energy resources such as the cell phones and computers we all use every day.

We are proud of the important role we have in providing North Americans with reliable and affordable energy that is vital to everyday life. We remain committed to being a safe operator and continually striving for improvement in all areas of our business, and we look forward to new opportunities to shape the landscape of North America’s energy industry.

Thank you for your interest in PMC. We welcome any feedback you have on our 2019 Report to Stakeholders and Communities.

Our mission is to connect our network of people and assets to safely deliver exceptional results.

Plains Midstream Canada (PMC) is an industry-leading midstream services provider based in Calgary, Alta. Since 2001, we have used our reliable network of pipelines, trucks and rail transportation to link producers with end users. PMC and affiliates operate strategically located storage, processing and fractionation facilities, offering midstream and marketing services for crude oil, natural gas, natural gas liquids (NGL) and liquefied petroleum gas (LPG) products across North America.
PMC is a subsidiary of Plains All American Pipeline, a publicly traded master limited partnership (NYSE: PAA & PAGP) headquartered in Houston, Texas.
PMC uses bullets, spheres, tanks and underground caverns to temporarily store crude oil, condensate and NGL products. The storage facilities are regularly inspected to support the safety and integrity of our assets.

About this report

The Plains Midstream Canada Report to Stakeholders and Communities, produced since 2014, shares information about our initiatives and operations in a transparent and credible manner. The 2019 report encompasses our commitments and accomplishments in the areas of health and safety, environment, emergency management, public awareness, asset integrity, community investment, social responsibility and innovation.

Our report aligns with our operational goals, which are driven by our Operations Management System (OMS). Our OMS is bound by clearly defined programs and processes and is structured to be proactive, scalable and adaptable to change and to meet existing and future business needs.

Our five overarching operational goals are:

1

Protect people, the environment and our assets

2

Maintain socially responsible operations

3

Achieve consistency in execution

4

Apply discipline in planning and managing our business

5

Develop our employee and leader effectiveness

To enhance awareness of our company and the industry, and how what we do impacts every one of us, we strive to share information in a way that is understandable. As such, in developing this report, we consider our stakeholders and what matters most to them through our interactions, engagement programs and industry surveys. Our stakeholders include community investment partners, residents near our facilities and pipelines, customers, joint venture partners, contractors, industry associations, Indigenous groups, first responders, employees, government, media and regulators.

To demonstrate transparency, we have provided key performance indicators within this report.

We invite you to share your comments about our company, how you think we can improve our performance and what topics are important to you for future reports.

Please send your comments or questions to: stakeholder.relations@plainsmidstream.com.

Our Values

Safety and Environmental
Stewardship

We conduct our operations and business in a manner that is safe for employees, contractors and the environment.

Ethics and Integrity

In our dealings within and outside of the company, we do the right thing, obey the law and act with the highest levels of honesty, ethics and integrity.

Accountability

In conducting our business, we are accountable to each other, our investors, our customers and our other stakeholders, including the communities where we live and work.

Respect and Fairness

We treat each other and our stakeholders fairly and with respect.

Plains Midstream Canada and Plains All American implemented a new Sustainability Policy in 2019. The policy takes into account our updated core values, which emphasize environmental stewardship.

Sustainability Policy

Plains’ commitment to sustainability stems directly from our core values. We recognize the inherent risks associated with energy transportation and demonstrate this understanding through our commitments:

  • Safety and the environment in the communities in which we operate
  • Communications and partnerships with and among our stakeholders

Plains strives to promote sustainability through transparent business practices and responsible use of our resources, and we seek to establish relationships within communities to participate in county, state, provincial and federal initiatives that protect and enhance the environment.

Plains Life Rules

At the end of the day, PMC wants to make sure every employee and contractor returns home safe. Our Life Rules are important in helping to achieve this. The rules enforce critical safety at both our office and field locations in our effort to prevent serious injuries and fatalities.

We are proud of our safety culture and continue to add and modify safety programs to help us reach our organizational goal of zero incidents.

Safety Rules
to live by


Have work
authorization


Assess and
mitigate hazards


Work safely
at heights


Safely perform
hot work
activities


Manage
confined space


Safely operate vehicles
and motorized
equipment


Isolate and
verify energy
sources


Be fit for duty


Manage ground
disturbance


Safely
operate lifting
equipment


Stay within safe operating
limits and do not bypass
safety controls

Why
what we
do matters

The demand for energy is rising around the world, and Canada is poised to offer solutions. The role of midstream companies like PMC is to safely transport products from the upstream sector (producers) to downstream processing facilities and refineries, where they are turned into consumer products that benefit everyone’s everyday life. Pipelines play a significant role in achieving this outcome.
According to the Canadian Energy Pipeline Association, over 65 per cent of Canadian energy is supplied by oil and natural gas, and 97 per cent of that energy is transported by transmission pipelines(1). Renewable sources currently supply about 18 per cent of Canada’s energy needs. To continue powering our modern and high-energy lifestyles, both pipelines and renewables will be needed for many years to come.

Not only does the oil and gas industry contribute to generating energy, but it also helps create many products that make our modern way of life possible. More than 6,000 products are made from oil and gas, including clothing, electronics, medical supplies, household and hygiene products, sports equipment and yard supplies. PMC’s transportation, storage, processing and marketing solutions are a vital part of the system that produces and delivers these products

According to the Canadian Energy Pipeline Association, over 65 per cent of Canadian energy is supplied by oil and natural gas, and 97 per cent of that energy is transported by transmission pipelines(1). Renewable sources currently supply about 18 per cent of Canada’s energy needs. To continue powering our modern and high-energy lifestyles, both pipelines and renewables will be needed for many years to come.

Not only does the oil and gas industry contribute to generating energy, but it also helps create many products that make our modern way of life possible. More than 6,000 products are made from oil and gas, including clothing, electronics, medical supplies, household and hygiene products, sports equipment and yard supplies. PMC’s transportation, storage, processing and marketing solutions are a vital part of the system that produces and delivers these products to the millions of people who rely on them. PMC invests in technology and innovative solutions to do this as safely as possible.

We also bring economic value to the communities where we live and work by:

  • Delivering vital energy resources to meet the needs of communities.
  • Generating tax revenues for various levels of government.
  • Providing fair and competitive compensation to our employees and contractors.
  • Supporting Indigenous communities through business and employment opportunities.
  • Donating to charitable organizations.
  • Providing funding to first responders.

We also bring economic value to the communities where we live and work by:

  • Delivering vital energy resources to meet the needs of communities.
  • Generating tax revenues for various levels of government.
  • Providing fair and competitive compensation to our employees and contractors.
  • Supporting Indigenous communities through business and employment opportunities.
  • Donating to charitable organizations.
  • Providing funding to first responders.
Every person in North America benefits from energy, and the impact of our industry is felt around the globe. The world needs cleaner and responsibly produced energy products, and PMC is committed to doing our part to fill those needs.

Plains Midstream
Canada 2019
performance
summary

Our performance summary provides Environment, Social and Governance (ESG) data related to safety, training, emergency preparedness, damage prevention, human resources and community investment. We report this data so that we can assist our stakeholders in understanding our business and performance. The metrics we have chosen are commonly used in the midstream industry, and we use them internally to drive efficiency and continuous improvement.

Safety &
Emergency
Management

Safety &
Emergency
Management


Environment &
Asset Integrity

Environment &
Asset Integrity


Public Awareness
and Damage Prevention

Public Awareness
and Damage Prevention


Employee
& Social

Employee
& Social

Plains’ social responsibility pillars

Plains Midstream Canada and Plains All American have identified the following three pillars as part of our social responsibility.

Implementation

  • Continuously improve safety and environmental performance
  • Incorporate socially responsible best practices and risk mitigation into our operations
  • Ensure we are living and advancing our values
  • Limit environmental impacts and resource utilization

Community Building

  • Support charitable initiatives that align with our values and improve communities where we operate
  • Incorporate volunteerism that complements our charitable giving, engages employees and increases visibility in our communities
  • Encourage employee engagement in our communities

Disclosure

  • Produce effective annual data-driven reporting on socially responsible practices
  • Continuously evaluate and improve disclosures
  • Engage stakeholders and incorporate feedback in reporting