TRANSCANADA CORPORATION 2008 Corporate Responsibility Report

Community Relations

Community Relations

Bridging Cultural Divides

TransCanada works closely with Aboriginal communities in Canada and Native American tribes in the United States on matters of mutual interest. Some 150 Aboriginal communities are situated within 50 kilometres of our Canadian facilities. South of the 49th parallel, there are about 100 tribal reservations with an interest in our existing and planned projects; right now, we have facilities on seven reservations from Michigan to Montana to Kansas. Our engagement of these communities is part of our larger effort to support the residents of all communities in which we operate.

For years we have had a formal Aboriginal Policy that recognizes the constitutional rights of the First Nations, Métis and Inuit, supports educational development, creates employment directly and through service contracting, and incorporates traditional knowledge into our environmental assessments. Traditional knowledge is usually defined as information about the land and its resources that has been collected and handed down from generation to generation among Aboriginal peoples. Our holistic approach to these needs and sensitivities has resulted in solid relationships of understanding, trust and respect that recognize and serve the interests of our company and our neighbours.

Traditional land use studies were an important element in two projects in 2008. In northeastern British Columbia, residents of the Cree-speaking Kelly Lake settlement of Métis used their traditional land use study to assist TransCanada in identifying important natural and cultural landscapes along our proposed right-of-way. These included age-old fishing and hunting locations, areas particularly rich in traditional medicinal plants, trapping cabins, and salt licks frequented by moose. Community elders recommended that medicinal plants be harvested before any construction work, and that all moose licks be avoided completely. We were grateful for the proactive approach they took in flagging these concerns and assured them we would plan our work so as to avoid traditional sites.

On our Keystone oil pipeline project, which will eventually pass through a number of areas of concern to Native Americans, we met with tribes in Montana, North Dakota, South Dakota, Nebraska and Minnesota during the fall and winter of 2008. In our discussions, we explored the identification and preservation of cultural resources. Archaeologists accompanied our Native American Relations Advisors and valued the local input about traditional land uses. These meetings provided a solid beginning. We came away with an appreciation of tribal issues and concerns, particularly with respect to tribal sovereignty.

Initial discussions about cultural issues often serve as an important bridge to subsequent talks about the potential of our projects to enhance local economic development. That was the case in both of these situations. TransCanada is always pleased and prepared to discuss opportunities for local employment and contracting with communities close to the project. In Aboriginal and Native American communities, as in all communities affected by our work, TransCanada believes that the road to success is smoothed by cultural exchange and understanding.