News Release 28 September 1999

FOR RELEASE AT 2:00 PM

EUB APPROVES CORRIDOR PIPELINE APPLICATIONS

Calgary, Alberta (28 September 1999) The Alberta Energy and Utilities Board (EUB) today approved applications by Corridor Pipeline Limited (Corridor) to construct and operate pipelines that will link bitumen production from Shell's Muskeg River Mine in northern Alberta with Shell's Scotford Upgrader located in Fort Saskatchewan, Alberta. Both the mine and upgrader projects have not yet been constructed, but have received prior EUB approval.

Corridor's applications were the subject of an EUB public hearing held in Fort Saskatchewan on 9, 10, and 11 March 1999. The Board is satisfied of the need for these pipelines, and notes that sufficient capacity is not available through any existing pipelines to handle the applied-for volumes. The Board believes that the construction and maintenance practices to be employed by Corridor will meet the requirements of all applicable pipeline regulations, and that the pipelines can be built and operated in a safe manner. Having carefully considered the evidence, the Board has determined that the applications are in the public interest.

Corridor submitted two related, yet separate pipeline applications. One application included two parallel pipelines (main lines) of about 450 kilometres in length to transport bitumen and diluent between the oil sands mine and the upgrader. Corridor's other application included two parallel pipelines of about 45 kilometres in length (delivery lines) to transport oil and feedstock between the upgrader and existing delivery points.

Among the important issues the Board needed to consider were the width of pipeline right-of-ways (ROWs) and their associated impacts on landowners and related land use. To address these, the Board has directed Corridor to conduct additional public consultation with all affected landowners along the delivery lines regarding the potential reduction of its ROW, and report the results of this consultation to the Board. To minimize impacts to landowners, reductions in ROW widths will be done to the extent possible without compromising public safety.

(30)

This news release and Decision Report 99-23 are available on the EUB Website at http://www.ercb.ca

For more information, please contact :

Dave Morris, Senior Advisor
EUB Communications
Tel. 403-297-7470
Fax 403-297-3757
E-mail: david.morris@eub.gov.ab.ca

NR99-16