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Joel Hanson From: Todd Olson <todd.olson@nrg-11c.com> Sent: Tuesday, May 26, 2015 2:50 PM To: Joel Hanson Cc: John Keis Subject: RE: meeting to discuss rail impacts Thank you both for taking the time to meet with me this morning. We look forward to having the Mayor at the Hearing on June 3rd. Right now we don't have any information more than the date of the hearing but we should know more by the end of the week. I will let you know as soon as possible what the window of opportunity is for public comment. Here is a brief description of the project and a few key facts in regards to rail impacts: The Sandpiper Project is an approximately 616 -mile interstate crude oil pipeline that will bring growing supplies of North Dakota crude oil from our Beaver Lodge Station south ofTioga, N.D., to Clearbrook, Minn., and then into an existing Enbridge terminal in Superior, Wis. The Sandpiper pipeline will follow Enbridge's existing Line 81 Pipeline to Clearbrook, the follows existing pipelines and transmission lines south and east to Superior. Subject to receiving applicable permits, Sandpiper will be in service in 2017. On April 13, 2015 the Administrative Law Judge assigned to the Sandpiper Pipeline Project recommended that the MPUC grant a Certificate of Need permit for the Project. This recommendation is significant and the MPUC will make a decision on the Certificate of Need next week. Sandpiper has broad and deep support throughout Minnesota. In January, more than 900 landowners and elected officials along our route, laborers, farmers, business people and more came out en masse to provide direct personal stories as to why this project is needed and how it will benefit Minnesota. They outnumbered opponents by more than a 2:1 margin. Approximately 60 Minnesota state legislators, 12 Chambers of Commerce, 6 county commissions and a variety of city, township, farm bureau, economic development groups and agricultural coops signed letters urging support of the Project. Several spoke from personal experience and testified to the company's commitment to safety and environmental stewardship. Sandpiper is important for the State of Minnesota. It will help address rail congestion throughout the state by transporting increased Bakken oil supplies by pipeline. Sandpiper will benefit Northern Minnesota communities with economic stimulus by generating an estimated $25 million in annual property taxes. Sandpiper also will create 1,500 family -sustaining construction jobs while providing an economic boost to the region's businesses during construction. Impacts on rail congestion: • Between 60-70 percent of North Dakota crude oil is transported by rail or truck, much of it through Minnesota. • Sandpiper's capacity of 225,000 barrels leaving North Dakota equals 1,700 rail cars every day. • Rail congestion cost Minnesota agriculture $100 million in reported losses in 2014. Power, mining and paper industries experienced similar rail congestion challenges. • Rail congestion can trap first responders and equipment on the wrong side of the tracks in an emergency. • Oil car traffic increased 4190% in 5 years from 9500 car loads in 2008 to 407,642 cars in 2013. • Sandpiper will free up rail capacity for other products important to Minnesota trade. • Denying the Sandpiper Project would increase the reliance on rail as the primary mode of transportation for Bakken crude oil • Where pipelines are available, they are the preferred mode of transportation for crude oil due to lower costs and more dependable service • Many of Minnesota's major industries rely on the rail system for efficient delivery of goods 1