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Transactions and Cases

Borealis Infrastructure completes sale of Express-Platte Pipeline stake 

Torys represented Borealis Infrastructure and Ontario Teachers’ Pension Plan with a team that included Krista Hill, Corrado Cardarelli, Dany Assaf, Harold Huber, David Cuschieri, Mitch Frazer and John Cameron.

On March 14, 2013, Borealis Infrastructure, the infrastructure investment arm of the OMERS pension plan, Ontario Teachers' Pension Plan (Teachers') and Kinder Morgan Energy Partners L.P., (Kinder Morgan) completed the previously announced sale of their interests in Express-Platte Pipeline System (Express-Platte Pipeline) to Spectra Energy Corp. (Spectra Energy) for approximately US$1.49 billion.

The 1,717-mile Express-Platte Pipeline System, which begins in Hardisty, Alberta, and terminates in Wood River, Illinois, is comprised of both the Express and Platte crude oil pipelines. The Express pipeline carries crude oil to U.S. refining markets in the Rockies area, specifically Billings and Laurel, Montana, and Casper, Wyoming. The pipeline’s capacity is 280,000 barrels a day. The Platte pipeline, which interconnects with Express pipeline in Casper, Wyoming, transports crude oil predominantly from the Bakken and Western Canada to refiners in the Midwest. Platte’s capacity ranges from 164,000 barrels a day in Wyoming to 145,000 barrels a day to Wood River, Illinois.

The agreement, announced on December 11, 2012, closed after obtaining all customary consents, as well as regulatory approvals under the Investment Canada Act and from the Canadian Competition Bureau. In a heightened foreign investment enforcement climate following the CNOOC/Nexen deal, these approvals were critical to risk allocation negotiations and deal conditions.

Borealis Infrastructure invests in and manages a diversified portfolio of large-scale infrastructure assets exhibiting stability and strong cash flows, in sectors including energy, transportation and government-regulated services.

Ontario Teachers’ Pension Plan, headquartered in Toronto, is the largest single-profession pension plan in Canada.

Spectra Energy owns and operates a portfolio of complementary natural gas-related energy assets and is a natural gas infrastructure company.

Further information can be found on OMERS’ and Borealis’ websites.