News Release 12 February 1999

FOR IMMEDIATE RELEASE

EUB APPROVES SHELL MUSKEG RIVER MINE APPLICATION

Calgary, Alberta (12 February 1999) The Alberta Energy and Utilities Board (EUB) today approved an application by Shell Canada Limited for a new oil sands mine (the Muskeg River Mine). Shell's proposed development includes a truck and shovel mining operation, bitumen extraction and treatment plants, and related supporting facilities. Production capabilities are expected to be about 24 thousand cubic metres (150 thousand barrels) of bitumen product per day. The project would be located on Lease 13, east of the Athabasca River about 70 kilometres (km) north of Fort McMurray.

Shell's associated oil sands developments consist of three separate but integrated components; the Muskeg River Mine, the proposed Scotford Upgrader located within Strathcona County, and a pipeline connecting the two. This Decision relates only to the Muskeg River Mine application. The other applications will be considered on their own merits.

The Muskeg River Mine application was the subject of an EUB public hearing held in Fort McMurray from 16 November to 19 November 1998. The Board carefully considered all evidence presented and found the project to be in the public interest, provided that the conditions of the Board's and Alberta Environmental Protection's (AEP) approvals are met. The Board accepted Shell's proposed mining process, and believes the Muskeg River Mine represents an efficient use of Alberta's resources. The Board will continue to evaluate opportunities to maximize resource recovery from Lease 13.

The Board concluded that the proposed development would not result in unacceptable socio-economic or environmental impacts. The Board believes that regional cumulative environmental impacts will be addressed through an existing initiative, specifically AEP's Regional Sustainable Development Strategy . All companies in the region that hold Board approvals are expected to participate in this initiative. The Board stated that it would continue to monitor the success of this initiative in order to assure itself that the public interest continues to be protected.

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This news release and Decision Report 99-2 are available on the EUB Website at http://www.ercb.ca

For more information, please contact:

NR99-1