News Release 06 April 1999

FOR IMMEDIATE RELEASE

EUB APPROVES SHELL OIL SANDS UPGRADER AND REFINERY APPLICATIONS

Calgary, Alberta (6 April 1999) The Alberta Energy and Utilities Board (EUB) today approved applications by Shell Canada Limited (Shell) for an oil sands upgrader, and related modifications to its Scotford Refinery. The upgrader would be located next to Shell's existing Scotford Refinery about 10 kilometres northeast of Fort Saskatchewan in the County of Strathcona. The upgrader would process bitumen from Shell's proposed Muskeg River Mine, located north of Fort McMurray.

The applications were the subject of an EUB public hearing held in Josephburg, Alberta on 26-28 October 1998. The Board considered all of the evidence pertaining to these applications and finds the projects to be in the public interest.

In reference to the upgrader, the Board accepts that Shell's choice of upgrading technology offers improvements in liquid hydrocarbon production and emissions, relative to other technologies. After initial start-up, the upgrader must meet 98.5 per cent quarterly and 98.8 per cent annual average sulphur recoveries.

The Board expects Shell to take a number of actions to help reduce development impacts, including participating with Alberta Health and other regulatory agencies and local stakeholders in a regional air-monitoring program. This program would include a process to assess the need for additional air quality or personal health monitoring. Shell is expected to provide a status report on the regional air-monitoring program to the Board within the next twelve months.

The Board acknowledges the quality of life concerns raised by local residents who are impacted by these and other developments in the area. While the Board commends the efforts of Shell, the County of Strathcona and other parties to resolve landowner concerns, it concludes that efforts to date have failed to address residents' issues in any meaningful way.

Although the Board has no jurisdiction in these processes to mandate settlement, it may not be able to approve future additional projects that would create significant incremental impacts to residents until these concerns are resolved. As stated in previous decisions, the Board believes that full industrial development of the area is ultimately not acceptable without relocation of the residents.

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This news release and Decision Report 99-8 are available on the EUB Website at http://www.ercb.ca

For more information, please contact:

NR99-4