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News Release

FOR IMMEDIATE RELEASE

EUB ISSUES DECISION ON WEST ENERGY EGRESS ROAD
 
Calgary, Alberta (May 20, 2008) The Alberta Energy and Utilities Board (EUB) has issued Decision 2008-040, which rules that an egress road constructed by West Energy Ltd. does not meet the commitment and condition set out in EUB Decision 2007-061 and directs that the road that the company originally committed to be built.

In August 2007, the Alberta Energy and Utilities Board (EUB) issued Decision 2007 - 061, granting conditional approval for West Energy Ltd. to drill two sour crude oil wells near Rocky Rapids. In its decision, the EUB imposed 10 conditions on West Energy, one of which was that the company must complete, prior to the commencement of the drilling of the first well, an additional egress road that West committed to build and which would enhance public safety.

In September 2007 West proposed a different route than the original road referred to in Decision 2007 - 061, then built the road before the Board could make a decision on the proposed changes. The EUB held a public hearing in Drayton Valley, Alberta, which commenced on March 4, 2008 and concluded on March 6, 2008, to consider the amended road and the concerns of the Rocky Rapids Concerned Citizens (RCCC) group with respect to it.

In Decision 2008-040, the Board rules that the egress road does not provide for public safety in the event of an emergency. Having traveled the road and on the basis of the evidence presented during the hearing, the Board is not convinced that rear-wheel-drive vehicles, school buses, and vehicles pulling loaded horse trailers would be able to use the road to vacate the area due to its 12 per cent slope. The Board was also concerned that the presence of cattle near the road could interfere with its use during an emergency.

Before being allowed to commence drilling, West Energy must complete an additional egress road that meets the EUB’s conditions, and all of the other conditions, including updating its Emergency Response Plan (ERP). The full list of conditions can be found in Appendix 2 of Decision 2007-061.

Effective January 1, 2008, the EUB was replaced by the Energy Resources Conservation Board and the Alberta Utilities Commission. Because a notice of hearing was issued for the review hearing prior to January 1, 2008 by the EUB, Decision 2008-040 is being issued by the EUB.

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This decision can be found at www.ercb.ca

For more information, please contact:
Davis Sheremata, ERCB Communications
Phone: 403-605-4216 Email: davis.sheremata@ercb.ca

NR 2008-10