Tax Information

Effective December 16^th, 2019 Pembina acquired all of the issued and outstanding common shares of Kinder Morgan Canada Limited (“KML”) pursuant to a plan of arrangement under Section 193 of the Business Corporations Act (Alberta). The following commentary refers to tax information applicable to KML prior to December 16^th, 2019 and does not constitute and is not intended to be legal or tax advice.

Form 8937, Report of Organizational Actions Affecting Basis of Securities
Form 8937, Report of Organizational Actions Affecting Basis of Securities (Amended)
Form 8937, Report of Organizational Actions Affecting Basis of Securities - Series 1 Preferred Share 2019 Distributions
Form 8937, Report of Organizational Actions Affecting Basis of Securities - Series 3 Preferred Share 2019 Distributions

Effective October 2, 2017, Pembina acquired all the issued and outstanding common shares of Veresen Inc. ("Veresen") pursuant to a plan of arrangement under Section 193 of the Business Corporations Act (Alberta). The following commentary refers to tax information applicable to Veresen prior to October 2, 2017 and does not constitute and is not intended to be legal or tax advice.

Post-Restructuring

Pursuant to a plan of arrangement, Fort Chicago Energy Partners L.P. (“Fort Chicago” or the “Partnership”) was converted from a limited partnership to a Canadian corporation, named Veresen Inc., at 12:01 a.m. on January 1, 2011. The holders of Class A limited partnership units of Fort Chicago received one common share of Veresen Inc. in exchange for each Class A unit held. In addition, all of the rights, covenants, obligations and liabilities of Fort Chicago under the 5.75% convertible unsecured subordinated debentures, Series C due July 31, 2017 were assumed by Veresen Inc. Holders of Series C Debentures will be entitled to receive common shares, rather than Class A units, on the basis of one common share in lieu of each Class A unit which they were previously entitled to receive, on conversion, redemption or maturity. The exchange of Class A units for common shares pursuant to the plan of arrangement occurred, from a Canadian federal income tax perspective, on a tax-deferred rollover basis for holders of Class A units. There is no need for the filing of a tax election form to realize the tax-deferred rollover.

On or before February 28 of each calendar year, starting in 2012 Shareholders of record will receive a tax slip. This will be a T5 if you are a Canadian resident, a Releve 3 if you are a Quebec resident or a NR4 if you are a non-resident. This tax slip summarizes the dividends you received on your common shares of Veresen Inc. These amounts must be included on your tax return for that year.

Eligible Dividends for Canadian Tax Purposes

Veresen Inc. hereby advises all shareholders that, effective from January 1, 2011, all dividends paid on its shares will be designated as “eligible dividends” for Canadian income tax purposes. This designation will apply until a notification of a change is posted on the website.

For more information regarding the designation of dividends, please refer to the Canada Revenue Agency release dated December 20, 2006. If you have any questions regarding the taxation of eligible dividends, please contact your local office of the Canada Revenue Agency.

Pre-Restructuring

Up until January 1, 2011 Fort Chicago was a publicly traded limited partnership. Each Unitholder of Fort Chicago (a “Unitholder”) were partners in the Partnership and were entitled to receive cash distributions. A partnership generally is not subject to federal or provincial income tax. The annual income gains, losses, deductions or credits of the Partnership flow through to the Unitholders who are required to report their allocated share of these amounts on their individual tax returns as though the Unitholder had incurred these items directly. The Partnership agreement allocates these amounts annually to holders of units based on their entitlement to receive distributions from the Partnership at the end of each calendar quarter, or at the end of each month, if the Partnership chooses to make distributions on a monthly basis.

Pembina Pipeline Corporation advises shareholders that all dividends paid will be designated as "eligible dividends" for Canadian income tax purposes, unless Pembina otherwise notifies its shareholders.

2013 U.S. resident tax information

Qualified Dividends for U.S. Tax Purposes

Form 8937 Report of Organizational Actions Affecting Basis of Securities

Effective April 2, 2012, Pembina acquired all the issued and outstanding common shares of Provident Energy Ltd. ("Provident") pursuant to a plan of arrangement under Section 193 of the Business Corporations Act (Alberta). The following commentary refers to tax information applicable to Provident prior to April 2, 2012 and does not constitute and is not intended to be legal or tax advice.

Canadian residents

Canadian resident tax information

U.S. residents