NOTICE OF APPLICATION
ATHABASCA OIL SANDS AREA
ENERGY RESOURCES CONSERVATION BOARD
APPLICATION NO. 1554396

ALBERTA ENVIRONMENT
ENVIRONMENTAL PROTECTION AND ENHANCEMENT ACT
APPLICATION NO. 001-00245358
ENVIRONMENTAL IMPACT ASSESSMENT REPORT
WATER ACT FILE NO. 00245489

SHELL CANADA LIMITED
PIERRE RIVER MINE

Application No. 1554396 was submitted to the Alberta Energy and Utilities Board (EUB) prior to January 1, 2008. Effective January 1, 2008, the EUB was replaced by the Energy Resources Conservation Board (ERCB) and the Alberta Utilities Commission (AUC). In accordance with the transition provisions of the Alberta Utilities Commission Act, Application No. 1554396 will be processed by the ERCB. That part of the application which is pursuant to the Hydro and Electricity Energy Act will be refiled by the applicant with the AUC .

Take Notice that Shell Canada Limited (Shell) has made application to the Energy Resources Conservation Board (ERCB/Board) and Alberta Environment (AENV) for approval of the proposed Pierre River Mine.

If the applications are approved, Shell would be able to construct and operate an oil sands mine, bitumen extraction plant and associated facilities located about 90 kilometres north of Fort McMurray on Oil Sands Leases 740012009 (Lease 9), 7401100017 (Lease 17), 7405120309 (Lease 309), and 7405080351 (Lease 351), to be known as the Pierre River Mine. The expected production rate from the mine would be 200 000 barrels (31 800 cubic metres) per day of equivalent dry bitumen.

Construction of the proposed mine, if approved, could begin in 2010, with start-up of the first ore processing train planned for around 2018.

Nature of the Applications
In support of the proposal, Shell has prepared and submitted the following:

• Application No. 1554396 to the ERCB, pursuant to Sections 10, 11, and 12 of the Oil Sands Conservation Act, for approval
• to construct and operate an oil sands mine, bitumen extraction plant, and associated facilities; and
• To receive third-party oil sands material (mined ore or intermediate process streams, such as bitumen froth) at the Pierre River Mine facilities, as well as to produce and ship oil sands material from the Pierre River Mine facilities.
• Application No. 001-00245358 to AENV, pursuant to Part 2, Division 2, of the Environmental Protection and Enhancement Act (EPEA), to construct, operate, and reclaim the Pierre River Mine in accordance with the environmental plans and specific applications as stated in the application.
• Application File No. 00245489 to AENV, pursuant to the Water Act, to authorize water management plans associated with the construction, operation, and reclamation of the Pierre River Mine, including the diversion of water from the Athabasca River, as well as the diversion and impoundment of surface water and groundwater, as indicated below:
• The maximum annual diversion from the Athabasca River would be 55 100 000 cubic metres of water per year at SE11-099-10-W4.
• The maximum annual diversion from surface water runoff would be 23 000 000 cubic metres of water per year.
• The maximum annual diversion from groundwater would be 1 260 000 cubic metres of water per year.

Shell has also prepared and submitted an environmental impact assessment (EIA) report addressing the proposed Pierre River Mine, as well as Shell’s proposed expansion of the Jackpine Mine. The EIA report forms part of the applications to the ERCB and AENV.

Additional Information
To obtain additional information or a copy of the applications and the EIA report, contact

Mr. Michael Saretsky
Major Approvals Coordinator
Shell Canada Energy
Oil Sands Division
400 - 4 Avenue SW
P.O. Box 100, Station M
Calgary, Alberta  T2P 2H5
Telephone: 403-384-5194
Fax: 403-384-5130
E-mail: michael.saretsky@shell.com
 
For information regarding ERCB procedures contact
Muzammel Mann
ERCB Fort McMurray Regional Office
Telephone: 780-743-7203
Fax: 780-743-7141
E-mail: muzammel.mann@ercb.ca

Copies of the applications and the EIA report are available for viewing at the following locations:

Energy Resources Conservation Board
Fort McMurray Regional Office
2nd Floor, Provincial Building
9915 Franklin Avenue
Fort McMurray, Alberta  T9H 2K4

Energy Resources Conservation Board
Information Services
640 – 5th Avenue SW, Main Floor
Calgary, Alberta  T2P 3G4

Albian Sands Energy Inc.
Fort McMurray Office
9912 Franklin Avenue
Fort McMurray, Alberta  T9H 2K5

Alberta Environment Library
6th Floor, Great West Life Building
9920 – 108 Street NW
Edmonton, Alberta  T5K 2M4

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

Oil Sands Discovery Centre
515 MacKenzie Boulevard
Fort McMurray, Alberta  T9H 4X3

Fort Chipewyan Municipal Office
101 Loutitt Street
Fort Chipewyan, Alberta  T0P 1B0 

To File a Statement of Concern
Under Section 73 of EPEA and Section 109 of the Water Act, any person who is directly affected by the EPEA applications or the Water Act application may submit a written statement of concern. Statements of concern under EPEA and the Water Act must be submitted by Thursday, October 2, 2008. Failure to file a statement of concern may affect the right to file a Notice of Appeal with the Environmental Appeals Board. Please quote Applications No. 001-00245358 (EPEA) or File No. 00245489 (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. Please submit your statement to

Director, Northern Region
Alberta Environment
Regulatory Approvals Centre
9th Floor, Oxbridge Place
9820 – 106 Street
Edmonton, Alberta  T5K 2J6
Telephone: 780-427-6311
Fax: 780-422-0154

In accordance with Section 13 of the Energy Resources Conservation Board Rules of Practice, all documents filed in respect of this proceeding must be placed on the public record. However, any party may make an application to the Board for confidentiality pursuant to Section 13(2) and serve a copy of such request on the other parties involved in the hearing. The Board may grant a request for confidentiality on any terms it considers appropriate, subject to the Freedom of Information and Protection of Privacy Act.

This Notice of Application is being distributed to advise interested parties that the applications are available for viewing and that the ERCB and other Alberta government departments are now undertaking review of the applications.

Issued at Calgary, Alberta, on June 16, 2008.

ENERGY RESOURCES CONSERVATION BOARD
Patricia M. Johnston, Q.C., General Counsel