NOTICE OF APPLICATIONS
SHELL CANADA LIMITED
CARMON CREEK PROJECT
PEACE RIVER OIL SANDS AREA  

ENERGY RESOURCES CONSERVATION BOARD
OIL SANDS CONSERVATION ACT
APPLICATION NO. 1637869

ALBERTA ENVIRONMENT
ENVIRONMENTAL PROTECTION AND ENHANCEMENT ACT
APPLICATION NO. 020-1642
WATER ACT FILE NO. 21375 AND
ENVIRONMENTAL IMPACT ASSESSMENT REPORT

The Energy Resources Conservation Board (ERCB/Board) has received Application No. 1637869 and Alberta Environment (AENV) has received Environmental Protection and Enhancement Act (EPEA) Application No. 020-1642 and a Water Act application from Shell Canada Limited (Shell) for approval of the proposed Peace River In Situ Expansion Carmon Creek Project (the Project). This Notice of Applications is being distributed to advise interested persons that the applications are available and that the ERCB, AENV, and other government departments are now undertaking review of the applications.

Shell has applied to construct, operate, and reclaim an in situ oil sands project about 40 kilometres (km) northeast of the Town of Peace River in Townships 84 and 85, Ranges 17, 18, and 19, West of the 5th Meridian. Construction of the Project is proposed to begin in 2011, with first production by 2015.

The proposed Project would increase the bitumen production capacity at Shell's existing Peace River operations from 2000 cubic metres per day (m ³ /d) (12 500 barrels per day [bbl/d]) to
12 600 m ³ /d (80 000 bbl/d) at peak production by using a vertical steam drive thermal recovery process, along with initial cyclic steam stimulation. About 95 well pads and two central processing facilities would be required over the Project's expected 35-year operation. The proposed Project would include two central processing facilities, each with a capacity of 6300 m ³ /d (40 000 bbl/d), with associated facilities, thermal injection wells, production wells, disposal wells, utilities, and infrastructure.

Nature of the Applications
In support of the proposed Project, Shell has prepared and submitted the following:

• Application No. 1637869 to the ERCB, pursuant to Section 13 of the Oil Sands Conservation Act, to amend Approval No. 8143 to construct and operate the proposed Project.
• Application No. 020-1642 to AENV, pursuant to the EPEA, to amend Approval No. 1642-01-00 to include the construction, operation, and reclamation of the processing facilities associated with the proposed Project, including facilities to recover and treat bitumen and produced water.
• An application (File No. 21375) to AENV for authorizations pursuant to Section 50(1) and Section 37(1) of the Water Act to divert 575 000 m ³ of surface runoff from industrial runoff ponds located in the northwest quarter of Section 14-85-18-W5M, to excavate borrow pits for material required for the construction of roads and well pads associated with the Project, and to construct settling ponds at the intake site on the Peace River.

Shell has also prepared and submitted an environmental impact assessment (EIA) report in support of the proposed Project. The EIA report forms part of the application to the ERCB.

To obtain additional information or a copy of the applications and the EIA report, contact

Shell Canada Limited
400 – 4 Avenue SW
P.O. Box 100, Station M
Calgary, Alberta T2P 2H5
Attention: Brendan Galloway, Regulatory Specialist (Upstream Americas )
Telephone: 403-691-4810
Fax: 403-691-2379
E-mail: brendan.galloway@shell.com

To view a copy of the applications and the EIA report, contact

Copies of the applications and EIA report are also available for viewing at

To File a Statement of Concern
Under Section 73 of the EPEA and Section 109 of the Water Act, any person who is directly affected by the EPEA Application No. 020-1642 or the Water Act File No. 21375 may submit a written statement of concern. Statements of concern under the EPEA must be submitted by June 11, 2010. Failure to file a statement of concern may affect the right to file a Notice of Appeal with the Environmental Appeal Board. Please quote Application No. 020-1642 (EPEA), or File No. 21375 ( Water Act ) when submitting a statement of concern. If no statements of concern are received, the EPEA and Water Act applications may be approved without further notice. Please submit your statement to

Alberta Environment
Regulatory Approvals Centre
9th Floor, Oxbridge Place
9820 – 106 Street
Edmonton, Alberta T5K 2J6
Attention: Director, Northern Region
Telephone: 780-427-6311
Fax: 780-422-0154

Applications for Confidentiality
In accordance with Section 13 of the Energy Resources Conservation Board Rules of Practice ( Rules of Practice ), all documents filed in respect of this proceeding must be placed on the public record. However, any party may apply for confidentiality of information under Section 13(2). Any application under Section 13(2) that is to be considered during a public hearing of the application must be copied to the other parties to the proceeding. The Board may grant a request for confidentiality on any terms it considers appropriate, subject to the Freedom of Information and Protection of Privacy Act.

Questions of Constitutional Law
In accordance with Section 25 of the Rules of Practice, a person who intends to raise a question of constitutional law before the Board must give notice in accordance with Section 12 of the Administrative Procedures and Jurisdiction Act and its regulation.

For information about ERCB procedures, contact

Oil Sands Branch, In Situ Oil Sands Group
Attention: Laura Hickman
Telephone: 403-297-6174
Fax: 403-297-2474
E-mail: laura.hickman@ercb.ca

Issued at Calgary, Alberta, on March 10, 2010.

ENERGY RESOURCES CONSERVATION BOARD
Patricia Johnston, Q.C., General Counsel