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News Release

FOR IMMEDIATE RELEASE

EUB APPROVES CNRL CRUDE BITUMEN PROJECT LINDBERGH - ELK POINT AREA

Calgary, Alberta (February 11, 2003) The Alberta Energy and Utilities Board (EUB) has approved with conditions (Decision 2003-013) a series of energy development applications from Canadian Natural Resources Limited (CNRL) to construct and operate a new scheme and to amend two existing schemes for the recovery of crude bitumen in the Cold Lake Oil Sands Area near Lindbergh in east central Alberta. The project includes three vertical gas wells and 52 crude bitumen wells from 13 well pads spread over 27 sections. In several areas the drilling spacing units would be reduced from 64 to 8 hectares.

An EUB public hearing into the applications was held beginning November 5, 2002 in the Town of Elk Point. Issues discussed at the hearing included the number of wells to be drilled, air and water quality, spreading of drilling mud on land, noise, odours and venting, truck traffic, and safety. Interventions opposing the applications were filed by a group of residents within the Hamlet of Lindbergh.

During the hearing, CNRL undertook certain commitments that are not specifically required by the EUB's regulations. The EUB also attached six conditions to the project approval. Conditions generally are requirements in addition to, or otherwise expand upon existing regulations and guidelines.

The EUB regulates investor-owned natural gas, electric and water utilities to ensure that customers receive safe and reliable service at just and reasonable rates, and ensures that the discovery, development and delivery of Alberta's resources takes place in a manner that is fair, responsible and in the public interest.

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This news release and Decision 2003-013 are available on the EUB Website at http://www.ercb.ca

For further information please contact:
Greg Gilbertson, Section Leader
EUB Communications
Phone (403) 297-3648

NR 2003-07

Backgrounder

RESUMPTION OF CNRL LINDBERGH HEARING FIRST NATIONS

Representatives of the Frog Lake First Nation and the Kehewin Cree Nation (the First Nations) requested that the November 5, 2002 CNRL hearing be adjourned and resumed in one or both of the First Nations communities. They said that they did not wish to participate in the November 5, 2002 hearing because that process was not designed to deal with First Nations issues and concerns. Subsequently, the Board decided to reopen the hearing in Elk Point on December 18, 2002 in order to hear the submissions of the First Nations.

Upon reopening the hearing, the First Nations submitted that there was a constitutional duty to consult them, as First Nations with treaty rights, about the effects of the proposed projects on their rights. Therefore, the First Nations requested the EUB to:

• either exercise its own jurisdiction in order for the EUB itself to engage in the constitutionally required consultation with them, or
• suspend any decision on the CNRL applications unless and until the Alberta Crown has fulfilled its requirement for constitutional consultation, and
• in any case, should the CNRL applications be approved, impose conditions on CNRL to ensure that appropriate mitigation and compensation measures, developed in consultation with the First Nations, are met.

The First Nations said that they have a special role in decisions regarding resource development that takes place on their lands. Subsequently, the main body of evidence given by the First Nations witnesses concerned their understanding of the rights conferred on them by treaty, and the failure of the Crown to fulfill its treaty obligations.

The EUB is a statutory, quasi-judicial body at arms length from government. The EUBs duties are set out in its governing legislation. The EUBs public notification and consultation requirements are found in Section 26 of the Energy Resources Conservation Act and in Guide 56 the EUBs Energy Development Application Guide. Guide 56 requires that a company proposing an oil and gas project must notify and consult people potentially directly and adversely affected by a decision of the EUB regarding that application, and that the company must advise the EUB of any unresolved concerns regarding that application. People who are affected must be given information about a proposed project so they can determine the impacts that the project may have on them. The EUB is of the view that the consultation requirements applicable to the CNRL applications are those contained in the EUBs governing legislation and in Guide 56. The evidence shows that CNRL complied with those requirements and, therefore, the EUB decided not to suspend its proceedings on the CNRL applications until further consultation with the First Nations by the EUB or the Crown takes place.

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For further information please contact:
Greg Gilbertson, Section Leader
EUB Communications
Phone (403) 297-3648