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News Release

FOR IMMEDIATE RELEASE

EUB COMPLETES INVESTIGATION INTO RAINBOW PIPELINE FAILURE NEAR SLAVE LAKE

Calgary, Alberta (May 9, 2007) The Alberta Energy and Utilities Board (EUB) has completed its investigation into a pipeline leak that resulted in approximately 7500 barrels of sweet light crude oil being released in a remote area south of Slave Lake. The investigation examined the cause of the leak and the response to the incident.

The EUB investigation has concluded that stress corrosion cracking, fatigue cracking and external coating failure caused the release.

The EUB investigation also concluded that public safety was not at risk during the incident.

An analysis of the response determined that the Rainbow Pipelines Ltd. leak detection monitoring equipment provided an appropriate alarm of the pipeline failure and the subsequent actions to shut down the pipeline were initiated promptly.

Cleanup and remediation of the affected area continues and the environmental impact has been contained. The EUB will monitor the progress of the cleanup in cooperation with other agencies. 

As a result of the incident and the EUB investigation, Rainbow Pipelines Ltd. has committed to take a number of measures to increase public safety and environmental protection. In addition to meeting existing EUB pipeline regulations, the company will lower the pipeline pressure, double the frequency of aerial surveillance, increase ground surveillance in specific areas, conduct internal line inspections, excavate, analyze and repair sites with similar characteristics, evaluate its existing Management of Change process, and continue to work with its corrosion experts on pipeline fatigue modeling.

The EUB will track progress of the actions committed to by Rainbow Pipelines Ltd

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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For more information, please contact:
Darin Barter
EUB Communications
Phone: 403-681-9487
darin.barter@eub.ca

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