Independent Auditor’s Report
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`To the Directors of the Managing General Partner of Alliance Pipeline L.P.
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`We have audited the accompanying financial statements of Alliance Pipeline L.P., (the “Partnership”) which comprise
`the balance sheet as at December 31, 2019 and the statements of income and cash flows and the related notes, which
`comprise a summary of significant accounting policies and other explanatory information for the year then ended,
`included on pages number 110 through 120a and 122.1 through 122.29 of the accompanying Federal Energy
`Regulatory Commission Form No. 2
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`Other Matter - Comparative Information
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`The financial statements of the Partnership for the year ended December 31, 2018 were audited by another auditor
`who expressed an unmodified opinion on those financial statements on August 14, 2020. We draw attention to Note 13
`to the financial statements, which explains that the financial statements for the year ended December 31, 2018 have
`been restated from those which the predecessor auditor previously expressed an an unmodified opinion on April 18,
`2019.
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`Management’s Responsibility for the Financial Statements
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`Management is responsible for the preparation and fair presentation of the financial statements in accordance with the
`accounting requirements of the Federal Energy Regulatory Commission as set forth in its applicable Uniform System
`of Accounts and published accounting releases described in Note 2, and for such internal control as management
`determines is necessary to enable the preparation of financial statements that are free from material misstatement,
`whether due to fraud or error.
`
`In preparing the financial statements, management is responsible for assessing the Partnership’s ability to continue
`as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
`accounting unless management either intends to liquidate the Partnership or to cease operations, or has no realistic
`alternative but to do so.
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`Those charged with governance are responsible for overseeing the Partnership’s financial reporting process.
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`Auditor’s Responsibility
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`Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit
`in accordance with auditing standards generally accepted in the United States of America. Those standards require
`that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free
`from material misstatement.
`
`An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
`statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of
`material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the
`auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in
`order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an
`opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also
`includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting
`estimates made by management, as well as evaluating the overall presentation of the financial statements.
`
`We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
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`Opinion
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`In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of
`Alliance Pipeline L.P. as at December 31, 2019, and the results of its operations and its cash flows for the year then
`ended in accordance with accounting requirements of the Federal Energy Regulatory Commission set forth in its
`applicable Uniform System of Accounts and published accounting releases described in Note 2.
`
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`Basis of Accounting
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`We draw attention to Note 2 to the financial statements, which describes the basis of accounting. As described in Note
`2 to the financial statements, the financial statements are prepared by Alliance Pipeline L.P. on the basis of the
`accounting requirements of the Federal Energy Regulatory Commission as set forth in its applicable Uniform System
`of Accounts and published accounting releases, which is a basis of accounting other than accounting principles
`generally accepted in the United States of America, to meet the requirements of the Federal Energy Regulatory
`Commission. Our opinion is not modified with respect to this matter.
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`Amended and Restated Financial Statements
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`We draw attention to Note 2 and Note 13 to the financial statements, which explains that the financial statements for
`the year ended December 31, 2019 have been restated from those which we originally reported on April 30, 2020.
`Our opinion is not modified with respect to this matter.
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`Restriction of Use
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`This report is intended solely for the information and use of the Board of Directors and Management of Alliance Pipeline
`L.P and the Federal Energy Regulatory Commission and is not intended to be and should not be used by anyone other
`than these specified parties.
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`Calgary, Alberta
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`August 17, 2020
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`Chartered Professional Accountants
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