NOTICE OF APPLICATION
PETRO-CANADA
MACKAY RIVER PROJECT

ALBERTA ENERGY AND UTILITIES BOARD
APPLICATION NO. 1428637

ALBERTA ENVIRONMENT
ENVIRONMENTAL PROTECTION AND ENHANCEMENT ACT
APPLICATION NO. 003-48408
WATER ACT FILE NO. 60285

Take Notice that Petro-Canada has applied to the Alberta Energy and Utilities Board (EUB) and Alberta Environment (AENV) for approval to expand the current MacKay River Commercial Project on its Oil Sands Development Leases located in Townships 92 and 93, Range 12 W4M, in the area southwest of Fort MacKay, Alberta and northwest of Fort McMurray, Alberta. This project is based on steam assisted gravity drainage (SAGD) thermal technology. The proposed project would include:

• construction, operation and reclamation of a new central processing facility consisting of steam generation, cogeneration, water treatment and bitumen handling facilities,
• production of an additional 6360 cubic metres per day (m3/d) (40 000 barrels per day (bpd)) of bitumen for a project total of 11 600 m3/d (73 000 bpd), and
• relocation of seventeen approved pads and the addition of four new pads.

This Notice of Application is being distributed to advise interested persons that the applications are available, and that the EUB, AENV, and other government departments are now undertaking review of the applications.

Nature of the Application
In support of their proposal, Petro-Canada has prepared and submitted the following applications:

Application No.1428637 to the EUB, pursuant to Section 13 of the Oil Sands Conservation Act. In support of its proposal and as part of this application to the EUB, Petro-Canada has also submitted an Environmental Impact Assessment (EIA) report to AENV. The EIA report forms part of the application to the EUB.

Application No. 003-48408 to AENV, pursuant to the Environmental Protection and Enhancement Act (EPEA), for an EPEA approval for the construction, operation, and reclamation of the proposed MacKay River expansion project.

An application (File No. 60285) to AENV, pursuant to Sections 37 and 50 of the Water Act, to authorize water management plans, for industrial purposes, that include:

- the diversion of up to 948 000 cubic metres of groundwater per year from the Birch Channel at 93-12-W4,
- the diversion of up to 140 555 cubic metres per year of surface runoff from the central processing facility at W1/2 05-93-12-W4, and
- the construction of a storm water retention pond at W1/2 05-93-12-W4.

Further Take Notice that pursuant to Section 73 of EPEA, and Section 109 of the Water Act, any person who is directly affected by EPEA Application No. 003-48408 or the Water Act application File No. 60285, may submit a written statement of concern to:

Alberta Environment
Director, Northern Region
AENV Regulatory Approvals Centre
Main Floor, 9820 - 106 Street
Edmonton, Alberta T5K 2J6
Telephone: (780) 427-6311
Fax: (780) 422-0154

To File a Statement of Concern
Statements of concern under EPEA and the Water Act must be submitted by March 21, 2006. Failure to file a statement of concern may affect the right to file a Notice of Objection (on appeal) with the Environmental Appeal Board. Please quote Application No. 003-48408 (EPEA) or File No. 60285 (Water Act) when submitting a statement of concern. If no statements of concern are received, the EPEA and Water Act applications may be approved without further notice. Note that any statements filed regarding these applications are public records and are therefore accessible by the public.

Additional Information
To obtain additional information or a copy of the applications and the EIA report, free of charge (CD version also available), contact:

Ms. Donna Yaskiw
Petro-Canada
P.O. Box 2844
150 - 6th Avenue SW
Calgary, Alberta T2P 3E3
Telephone: (403) 296-3002
Fax: (403) 296-5374
Email: yaskiw@petro-canada.ca
www.petro-canada.ca/oilsands

A copy of the applications and associated documents are available for public viewing at the following locations:

EUB Information Services, Calgary Office
Main Floor, 640 - 5 Avenue SW
Calgary, Alberta T2P 3G4
Telephone: (403) 297-8190

Alberta Environment, Northern Region
Register of Environmental Assessment Information
111 Twin Atria Building
4999 - 98 Avenue
Edmonton, Alberta T6B 2X3
Attention: Patti Humphrey
Telephone: (780) 427-5828

In addition, copies of the applications are also available for public viewing at the following locations:

EUB, Fort McMurray Office
2nd. Floor, Provincial Building
9915 Franklin Avenue
Fort McMurray, AB T9H 2K4

Fort McMurray Public Library
9907 Franklin Avenue
Fort McMurray, AB T9H 2K4

Lac La Biche & District Public Library
10307 - 100 Street
Lac La Biche, AB T0A 2C0

Oil Sands Discovery Center
515 Mackenzie Blvd.
Fort McMurray, AB T9H 4X3

For information about EUB procedures, contact:
EUB Applications Branch, Resources Applications
Attention: Anna Louie
Telephone: (403) 297-8396
Fax: (403) 297-2474
Email: anna.louie@gov.ab.ca

Issued at Calgary, Alberta, on December 7, 2005.

ALBERTA ENERGY AND UTILITIES BOARD
Douglas A. Larder, General Counsel