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News Release December 18, 2000

FOR IMMEDIATE RELEASE

ALBERTA ENERGY AND UTILITIES BOARD RECEIVES RECOMMENDATIONS OF THE PROVINCIAL ADVISORY COMMITTEE ON PUBLIC SAFETY AND SOUR GAS

Calgary, Alberta (December 18, 2000) The Alberta Energy and Utilities Board (EUB) today received the final report of the Provincial Advisory Committee on Public Safety and Sour Gas. The report contains 87 detailed recommendations to the EUB for change to the way that sour gas is developed and regulated in Alberta. (Sour gas is natural gas that in its raw form, contains hydrogen sulphide which can be toxic to humans or animals. About 30 percent of the raw natural gas produced in Alberta each year is sour gas.)

The EUB initiated the work of the Provincial Advisory Committee in January, 2000 in response to increasing public safety concerns about sour gas development in Alberta. Throughout the year, the Committee consulted extensively with Albertans, including many First Nations and Metis people, to hear about these important issues. Its final report presents the Committee's findings and recommendations for change.

EUB Chairman Neil McCrank stated: "On behalf of the EUB, I am very pleased that the work of the Committee has produced such a comprehensive assessment of the current state of regulations regarding sour gas development. The extensive work of this committee has resulted in recommendations on almost every aspect of sour gas development as it relates to public safety."

"The safety of the public around oil and gas operations, especially those producing sour gas, has always been of utmost importance to the EUB," said McCrank. This is reflected in the extensive framework of requirements used to regulate Alberta's sour gas industry today. In accepting this report, the Board also recognizes the need for change and improvements in this area. The accelerating pace of oil and gas exploration in the province, in convergence with an increasing population, particularly across rural Alberta has resulted in colliding interests between the industry, landowners and communities. This increased interaction between the public and the industry, along with changing public expectations, have combined to stress the current regulatory system and cause some of the public to question whether sour gas can be developed safely under these circumstances.

"The EUB is strongly committed to acting on the recommendations of this Committee," said Chairman McCrank, adding that the EUB has already established a Public Safety Implementation Team of senior EUB staff whose sole responsibility is coordinating the planning for and implementation of the recommendations of the Committee. This will be a multi-year process with work on the highest priority items commencing immediately. McCrank noted that many of the Committee's recommendations will also require the commitment of other organizations and government departments to implement and he is looking forward to building even stronger cooperative relationships with these groups to ensure the best regulatory system possible. The EUB will now review each recommendation to identify required actions and begin involving affected stakeholders. In consultation with those stakeholders, the EUB will develop an implementation plan, and report its progress to the Committee and the public on a regular basis.

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Copies of this news release and the new Public Safety and Sour Gas Advisory Committee Findings and Recommendations Final Report are available on the Committee's web site http://www.publicsafetyandsourgas.org/

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