News Release 14 October 1999

FOR RELEASE AT 2:00 PM

EUB APPROVES SYNCRUDE APPLICATION FOR MILDRED LAKE EXPANSION

Calgary, Alberta (14 October 1999) The Alberta Energy and Utilities Board (EUB) today indicated that it is prepared, with the approval of the Lieutenant Governor in Council, to approve an application by Syncrude Canada Ltd. (Syncrude) to expand its Mildred Lake oil sands upgrading facilities near Fort McMurray, Alberta. The proposed expansion would increase Syncrude's oil production from 15.3 to 27.5 million cubic metres per year. Syncrude's application was the subject of an EUB public hearing held in Fort McMurray from 27 to 30 July 1999. Having carefully considered the evidence, the Board has determined that the application is in the public interest, subject to the conditions noted in Decision 99-25.

The Board believes that a long-term objective of the oil sands industry must be to limit emissions of all pollutants. The Board notes that Syncrude's existing base plant will continue to account for a significant portion of sulphur dioxide (SO₂) emissions in the region. In this regard, the Board acknowledges Syncrude's belief that substantial reductions in SO₂ emissions are achievable within the next few years, and expects Syncrude to report on SO₂ reductions it believes are possible in a report to be filed by March 2001. The Board expects Syncrude to provide a comprehensive review of options to reduce SO₂ emissions from its base plant, including the submissions of engineering studies in support of Syncrude's conclusions.

The Board recognizes the potentially significant cumulative impacts that are predicted to occur as a result of current and proposed industrial development in the Fort McMurray region. In addition to specific mitigation measures that apply to each project, the Board notes that environmental management initiatives in the region, such as the Regional Sustainable Development Strategy and others, may require that further steps be taken in the future. The Board expects that Syncrude will participate fully in these initiatives and that it will abide by their outcomes.

The Board recognizes that developments such as that proposed by Syncrude can have major socio-economic effects on the people of the region, and that some of these effects may not always be positive. While the Board does not have the mandate to resolve many of these issues specifically, the Board believes that the participation of Syncrude and other stakeholders in local groups such as the Athabasca Oil Sands Development Facilitation Committee and others, are effective ways for addressing local socio-economic concerns. The Board will forward the concerns raised at the hearing to the Regional Infrastructure Working Group and appropriate provincial ministries.

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This news release and Decision Report 99-25 are available on the EUB Web site at http://www.ercb.ca

For more information, please contact:

Greg Gilbertson, Senior Advisor
EUB Communications
Tel. 403-297-3648
Fax 403-297-3757
E-mail: greg.gilbertson@eub.gov.ab.ca

NR99-17