Ltd. pipeline, continue to the southwest across British Columbia, and finally connect with the Pacific Gas Transmission (PGT) pipeline at the United States/Canada border near Kingsgate, British Columbia. The pipeline route through southern British Columbia will generally parallel the existing pipeline route of Alberta Natural Gas Company Ltd.

For the eastern leg from the James River Station, the pipeline will proceed generally to the southeast until it reaches the Alberta/Saskatchewan border near Empress, Alberta. The eastern leg will then connect with the Foothills Pipe Lines (Sask.) Ltd. pipeline. The pipeline will then continue to the southeast across Saskatchewan and join with the Northern Border Pipeline system at the United States/Canada border near Monchy, Saskatchewan.

Alcan Pipeline Route in the Contiguous United States

On the western leg, the Alaska gas will be transferred at the United States-Canada border near Kingsgate, British . Columbia, to the PGT system. The PGT system will transport the gas through northern Idaho, southeast Washington, and central Oregon. At the Oregon/California border, the gas will be transferred to enter the Pacific Gas and Electric Company (PG&E) system and will then be transported throughout California.

On the eastern leg the Alaska gas will be transferred at the Saskatchewan/Montana border from the Canadian-owned portion of the Alcan system to the Northern Border Pipeline system. The Northern Border Pipeline system will then transport the gas across the northeast corner of Montana, the southwest section of North Dakota, the northeast section of South Dakota, the southwest corner of Minnesota, and the northeast section of Iowa, and finally bring the gas just south of Chicago to Dwight, Illinois. Exhibit 2 on the following page illustrates the respective routes of the eastern and western legs of the Alcan system and their relationship to the existing gas pipeline network in the United States.

96-226 - 77 - 2

SECTION 3

IDENTIFICATION OF FACILITIES INCLUDED WITHIN "CONSTRUCTION AND INITIAL OPERATION"

General Project Description

This section identifies the facilities for the Alcan

project which will be entitled to the expedited authorization process prescribed in Section 9 of ANGTA.

The

facilities which are to be covered are those in the U.S. which are adequate for a throughput of up to 2.4 bcfd and are included in the revised Alcan filing submitted to the Federal Power Commission (FPC) in March 8, 1977. If any modifications to those facilities are required by the Agreement on Principles between the U.S. and Canada, those modified facilities will also be entitled to the expedited authorization process in Section 9.

Uncertainties remain as to the future level of gas exports from Canada's historical gas supply sources. The actual division of Alaska gas among the various regions of the contiguous United States awaits conclusion of gas sales contracts. Routing and design work should be sufficiently complete to allow final certification in late 1978 or early 1979. The final design and location of the facilities, however, will be within the general description set forth. The gas transportation system will utilize a 48-inch diameter pipeline from Prudhoe Bay to James River, Alberta.

From James River, gas destined for the midwestern and eastern states will be transported through a 42-inch diameter pipeline to Monchy, Saskatchewan, and gas destined for the western states will be transported through a 36-inch pipeline to Kingsgate, British Columbia. PGT and

PG&E will complete looping2/as necessary of their existing

pipeline systems from the Idaho-British Columbia border to Antioch, California (near San Francisco) with a 36-inch diameter pipeline.

All of the pipeline in Alaska and the first forty-one miles of pipeline in the Yukon lie in the continuous and

discontinuous permafrost region.3/ This section will be operated in a chilled state (i.e., below 32°F.) to prevent degradation of the permafrost regime. Gas chilling

2/

3/

"Looping" is construction of a pipeline parallel to and interconnected with an existing pipeline. Looping may extend to part or all of an existing line.

By definition, permafrost consists of soil, rock, or other earth material the temperature of which remains at or below 32°F. (0°C) continuously for two or more years. Its distribution is not uniform. Factors controlling the distribution of permafrost include the glacial and climatic history of the area, thermal properties of the earth material, ambient temperature, insulation properties of overburden, and amount of exposure to sun (e.g., shading caused by orientation of topographic features). The permafrost would be continuous along approximately the first 240 miles of the pipeline (to near the South Fork of the Koyohuk River). Along the remaining pipeline route to the Yukon border, the permafrost would be discontinuous.