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News Release

FOR IMMEDIATE RELEASE

EUB APPROVES ENCANA COALBED METHANE PROJECT WITH CONDITIONS
 
Calgary, Alberta (Tuesday, October 31, 2006) The Alberta Energy and Utilities Board (EUB) has issued Decision 2006 – 102 which grants conditional approval for EnCana Corporation to drill 15 coalbed methane (CBM) wells, construct 46 lengths of pipeline, and upgrade a pipeline compressor in the Torrington area.

In its decision, the EUB addresses concerns raised during the hearing through a number of conditions, including:

• EnCana must submit fracturing operation data to the EUB and interveners within five days of the fracturing operations.
• EnCana must install a groundwater quality monitoring well in aquifers deeper than are currently used to determine what impact, if any, nitrogen fracturing operations may have on deep aquifers. 
• EnCana must demonstrate that night-time noise from the expanded compressor is at or below 25 decibels at one of the interveners’ homes. Additionally, noise levels must be within EUB requirements at all other times. Normally, the maximum night-time level is 40 decibels.

The EUB has also committed to undertake coordination of a third-party report, specifically written for a public audience, to address the issue of  using surface water for drilling operations. The EUB will continue to work with Alberta Environment on scientific water well and groundwater information as it relates to oil and gas development.

The EUB finds that such wells may be drilled and operated in a manner that ensures the protection of the public and the environment. The decision follows a four-day hearing held in Torrington from April 3 to April 6, 2006.
 
The EUB ensures that the discovery, development, and delivery of Alberta’s energy resources and utility services take place in a manner that is fair, responsible, and in the public interest.

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This decision can be found on the EUB web site at www.ercb.ca

For more information, please contact:
Darin Barter, EUB Communications
Phone: 403-297-4116
Cellular: 403-681-0946
Email: darin.barter@eub.ca

NR2006-46

FAST FACTS
Coalbed Methane (CBM) Development in Alberta

CBM Complaints

• As of December 2005, there were 7,764 CBM wells in Alberta.
• Since January 2001, the Alberta Energy and Utilities Board (EUB) has received 43 complaints related to CBM development.
• In that same period of time, the EUB received approximately 5000 total complaints related to the entire upstream oil and gas industry.
• Complaints related directly to CBM development comprise less than one per cent of all complaints received by the EUB.
• The EUB responds to all public complaints related to upstream oil and gas activities, with the goal of ensuring prompt, effective, and lasting resolution to the problems identified.

CBM Science and Regulatory Change

• Since 1991, the EUB has continued to examine coalbed methane development from a regulatory, geological and scientific perspective.
• In 2005/2006, the EUB participated in the development of a multi-stakeholder committee report (MAC report) on the development of coalbed methane in Alberta.
• This report, with representatives from landowner groups, the EUB, Alberta government departments and industry, made 44 recommendations regarding CBM development. Many of the recommendations made in the MAC report are already underway. The EUB continues to work with stakeholders on a MAC implementation committee.
• On January 31, 2006, the EUB strengthened shallow fracturing regulations.  The new regulation includes:  
• A prohibition on fracturing within a 200 metre radius of water wells whose depth is within 25 m of proposed well.
• Companies are required to submit a comprehensive fracturing program design prior to conducting fracturing operations.