News For Neighbours. Letter from Regional Manufacturing Director. Summer What s Inside...

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1 News For Neighbours Summer 2015 As part of our commitment to Responsible Care, we consult with our communities about our facilities, operations, and products in order to share information, seek input and respond to concerns. Through community advisory panels, training programs, open houses and personal visits, we strive to create open dialogue with our communities and near neighbours. What s Inside... In The Community... 2 NOVA 2020 Growth Projects... 5 Responsible Care... 6 Letter from Regional Manufacturing Director The current business environment continues to be very positive for NOVA Chemicals. We are continuing to move forward with phase two of our growth projects which will enable us to evolve our asset base to support our market leadership strategy. As part of our commitment to ongoing engagement with the community, we held a public open house at the Corunna Legion in January. This was an opportunity for us to provide an update on the status of our projects, and to have meaningful dialogue with our neighbours in the community. We have also continued our strong tradition of re-investment in worthwhile community initiatives and activities. This newsletter provides a few specific examples and I hope you take the time to review them. Operationally, our local facilities have been performing very well and our safety performance has been excellent. The Corunna site had record production volumes in March, while our Moore Low Density unit achieved record quarterly sales. In the past year, we experienced our best ever occupational safety performance. Of note, in April we held an appreciation lunch to recognize the excellent safety performance of our Maintenance department and our resident contractor, Kel-Gor Limited. I am confident that this positive momentum will enable us to deliver on our continued operational and Responsible Care commitments. Wishing you and your families, a safe and healthy summer. Tom Thompson, Regional Manufacturing Director

2 In The Community NOVA Chemicals actively invests in the well-being of the local community. In addition to our charity of choice, the United Way, our investments generally focus on three core areas: Education and Science, Health and Community Service and the Arts. YMCA Aboriginal Leadership Centre NOVA Chemicals joined the Sarnia-Lambton YMCA last summer in its vision to encourage healthy communities. As part of our corporate sponsorship and our commitment to support this vision, a $25,000 donation was presented to the Sarnia-Lambton YMCA for their youth leadership program. This donation allowed the YMCA to offer the program to aboriginal groups at no charge. The YMCA Leadership Initiatives program, offered to youth aged years, is a unique blend of outdoor adventure, community involvement and skills development, helping to build increased self-awareness, leadership problem solving skills, communication and teamwork. Due to the huge success of the program, NOVA Chemicals is pleased to sponsor this programming again in Rob Thompson, NOVA Chemicals Regional Operations Leader commented, We are very pleased to support the YMCA, and the aboriginal communities of Sarnia-Lambton through our donation to the Urban Aboriginal Educational Leadership Initiative. Our $25,000 donation will contribute to ensuring that everyone in our community has the opportunity to benefit from the programs and services at the YMCA. Back row, left to right: Jennifer Wilson, YMCA Board Chair; YMCA President & CEO Jim Janzen; Rob Thompson, NOVA Chemicals Regional Operations Leader; Nichole Workman, NOVA Chemicals HR Consultant and Ted Cooper, NOVA Chemicals Regional Maintenance Leader. First row: YMCA youth participants. 2

3 Bluewater Health Clara Hughes Event NOVA Chemicals was thrilled to be the lead sponsor and partner with the Bluewater Health Foundation in bringing six-time Olympic Medalist and Mental Health Advocate Clara Hughes to Sarnia. Clara was the guest of honour and keynote speaker at the fundraising dinner last October in support of local Mental Health and Addictions programming. Tom Thompson, Regional Manufacturing Director, commented by saying, NOVA Chemicals is truly honoured to be celebrating Clara Hughes and her remarkable achievements, as well as supporting the important work of Bluewater Health to bring awareness to mental health issues impacting our community. From left to right: NOVA Chemicals employees Ted Cooper, Winston Ramharry, Alan Sivell, Robyn Brocklehurst, Tom Thompson, Robin Topliffe, Olympian Clara Hughes, Bernie Brocklehurst and Elizabeth Cameron. Sarnia Blue Box Program In November, NOVA Chemicals presented the City of Sarnia with a cheque for $10,000 towards the purchase of 1,500 new blue recycling boxes. The purchase was in support of the city s program to offer new Sarnia homeowners, dating back to 2012, a blue box free of charge. NOVA Chemicals Regional Operations Leader, Rob Thompson, was pleased to contribute to this program emphasizing the great fit from a product stewardship perspective and as a major plastics producer in North America. From left to right: Bryan Prouse and Frank Velle, Sarnia Public Works, Mayor Mike Bradley, NOVA Chemicals representatives: Tracy Johnson, Rob Thompson and Krista Randall. 3

4 Rapids Teaching Kitchen NOVA Chemicals partnered with Sarnia s Rapids Family Health Team to implement a new state of the art teaching kitchen to assist with nutritional counseling. As part of the corporate sponsorship and our commitment to support this vision, a $5,000 donation was given on behalf of NOVA Chemicals employees. This kitchen is intended to provide patients with the opportunity to learn how to cook healthy meals at home. By learning these skills the individuals will be able to improve their lifestyle and reach their own optimal health. In addition to cooking classes, the occupational therapist will utilize the space to demonstrate adaptive equipment and develop strategies for patients with chronic or complex medical conditions that will enable them to better cope in their own kitchen. The Ribbon Cutting ceremony took place during the Rapids Family Health Team s Diabetes Open House (also sponsored by NOVA Chemicals). The Open House served as an opportunity for visitors to participate in diabetes management screening and engage in discussions about resources and tools available to them. The support for this is in direct alignment with our Community Investment Principles, Health and Community Services. Rob Thompson, NOVA Chemicals Regional Operations Leader commented, We are very pleased to support the new Rapids Family Health Team s teaching kitchen and the programs it will offer to the community. We are excited about the classes that have already taken place and know that this kitchen will go a long way in helping community members gain independence in their homes. From left to right: Lynn Laidler, RFHT Executive Director, Rob Thompson, NOVA Chemicals Regional Operations Leader; Cynthia McColeman, RFHT Health promoter / Communications, Bob Bailey, MPP, Shaylin Kemmerling, RFHT Registered Dietitian, Wayne Carpani, RFHT Board Chairman, Mike Bradley, Mayor, and NOVA Chemicals Occupational Health Nurses Karen Duffy and Natalie Van Hoorn. St. Joseph s Hospice NOVA Chemicals Human Resources representative, Tracy Johnson and Occupational Health Nurses, Karen Duffy and Natalie Van Hoorn present Executive Director Larry Lafranier with a $5,000 cheque on behalf of NOVA Chemicals employees in April, St. Joseph s Hospice has been providing care for the terminally ill and their family members since

5 NOVA 2020 Growth Projects NOVA 2020 Growth Strategy Since NOVA Chemicals Corunna facility began consuming ethane from the Marcellus Shale basin in December 2013, the facility has undergone several modifications required to accommodate this change in feedstock. Through the hard work of our employees and contractors, the crude unit has been de-inventoried and shut down and the cracker has been fully transitioned to utilize up to 100% natural gas liquids (NGLs). Converting to all lighter NGL-based feedstock offers potential environmental benefits when compared to the previously utilized oil-based feedstock. The Sarnia-Lambton region still remains the base case for a potential new polyethylene facility to expand upon our proprietary technology and to provide greater supply reliability to our customers. If we move forward with this new polyethylene facility, it will be combined with another capacity expansion of our Corunna cracker. We expect to have a path forward for this facility in the next few years. We are currently in the process of obtaining Ontario Energy Board (OEB) approval to establish a second ethane feed pipeline in support of this change in feedstock. This project includes replacing a dormant 4 pipeline with a 12 pipeline approximately 4 kilometres in length in an existing right of way (RoW). The replacement pipeline will be connected to Plains Midstream s Windsor-Sarnia Pipeline at an existing valve site near Kimball Road. A dormant 8 pipeline will be removed from the RoW as part of this project. As part of the OEB approval process, we recently shared the Environmental Report for this project with local stakeholders including First Nations communities. If approved, construction is expected to begin no earlier than the summer of Going forward, we will focus on completing a conversion to 100% ethane utilization, along with a modest expansion of our Corunna cracker. We expect to complete tie-ins during our 2017 turnaround and to finalize the project in We are also investigating several upgrades to our Moore site, including: Potential debottleneck of the Moore site low density polyethylene line; Potential retrofit of the Moore site high density polyethylene line; and Pursuing an emissions reduction project at the Moore site. Corunna s cracker has been fully transitioned to utilize up to 100% natural gas liquids. If you have any questions regarding the NOVA 2020 projects, please contact the Toll-free number: or visit the project website: 5

6 Responsible Care Responsible Care is our industry s commitment to the health and safety of people and the environment and the responsible manufacture and use of plastics. Our approach to Responsible Care and Sustainability Taking Care Our work at NOVA Chemicals results in plastic products that take care of food, water and other goods vital to life. To enable these products, we must first take care of the people, places, materials and processes that make them possible. We take care with respect to our operations, communities, products and the environment. Taking Care is a way to think and a way to work. It s our particular approach for putting Responsible Care into practice. Responsible Care Re-verification Scheduled for June Every three years, as part of our commitment to Responsible Care, we undergo a third-party Responsible Care verification through the Chemistry Industry Association of Canada (CIAC). This will be our fifth verification process; the last one was held in Bluewater Community Advisory Panel (BCAP) member Dan Hansen will be the representative on the independent panel. Participation in the verification process will provide us valuable third-party perspective on how we are doing in relation to the Responsible Care codes and ethic. NOVA Chemicals is proud to be a founding member and leader of the original Responsible Care ideals as well as the recently updated ethic and principles that reflect the industry s commitment to sustainability. For more information on the process: NOVA Chemicals Pipelines in Sarnia-Lambton Pipelines are critical to the growth and sustainability of our Sarnia-Lambton operations. They link our worldscale petrochemical complex (Corunna Site) to external markets and integrate the facility with local industries. In Canada six of our pipelines are regulated by the National Energy Board (NEB). NOVA Chemicals fully complies with the NEB s requirements to allocate funding for the future abandonment of our pipelines. We care about the safety of our neighbours, our communities and the environment along our pipeline systems and do the utmost to ensure feedstocks and products are transported safety. As part of our abandonment funding program, interested stakeholders can view our Statement of Investment Policies and Procedures (SIPP) on the NEB website: Manufacturing East Operations 785 Petrolia Line, Corunna, ON N0N 1G0 Tel.: NOVA Chemicals logo is a registered trademark of NOVA Brands Ltd.; authorized use/utilisation autorisée. Responsible Care is a registered trademark of the Chemistry Industry Association of Canada (CIAC).