News Release May 4, 2000

FOR IMMEDIATE RELEASE

EUB RELEASES GUIDE 64 FACILITY INSPECTION MANUAL

Calgary, Alberta (May 4, 2000) The Alberta Energy and Utilities Board (EUB) announces the completion and release of a new document Guide 64, Facility Inspection Manual which is designed to ensure that oil and gas production and processing facilities, and associated pipeline facilities are inspected by EUB Field Centre staff in a consistent manner across Alberta. The new Guide will be used on a daily basis by EUB Field Centre staff, and is also intended for use by industry as a guide to what can be expected during a facility inspection. The manual is available on the EUB web site at http://www.ercb.ca.

The purpose of petroleum facility inspections is to ensure compliance with EUB regulations. The EUB does not compromise on issues of public or environmental safety, and believes that compliance in meeting or exceeding regulations and standards is the responsibility of the energy industry. The EUB expects all industry participants to understand all of Alberta's regulatory requirements, and to have in place an infrastructure that ensures compliance.

However, the EUB also recognizes that enforcement of regulations is occasionally required. This new inspection guide provides a comprehensive listing of what is deemed to be satisfactory in a facility inspection, and also defines minor, major, or serious unsatisfactory inspection results. These classifications are detailed in the EUB's Informational Letter IL 99-4 EUB Enforcement Process Generic Enforcement Ladder and Field Surveillance Enforcement Ladder. A "minor" unsatisfactory item is defined as a contravention of regulations or requirements which does not result in a direct threat to the public or environment, and does not adversely affect oil and gas operations. This would include garbage on a site, or an expired proof of meter calibration. These items enter at Level-1 of the enforcement ladder and require the situation to be corrected. This enforcement action is completed at the field level.

A "major" unsatisfactory item is a contravention of regulations or requirements that an operator has failed to address, and/or that has the potential to cause an adverse impact to the public or environment examples could be a flare stack located less than 100 metres from a residence, or a spill where the operator has failed to take action. A "major" item enters the enforcement ladder at Level-2. This level requires the situation to be corrected, and involves senior company management.

A "serious" item is defined as a "total disregard for regulations or requirements that is having or may have a significant impact on the public or the environment." These items enter the enforcement ladder at Level-3, which requires a full or partial suspension of the facility and involves senior company management. The suspension will continue until the non-compliance situation has been corrected.

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This news release and Guide 64 are available on the EUB web site at www.ercb.ca

For further information please contact:

Greg Gilbertson, Senior Advisor
EUB Communications
Tel: (403) 297-3648
Fax: (403) 297-3757
E-mail: greg.gilbertson@eub.gov.ab.ca