News Release June 20, 2000

FOR IMMEDIATE RELEASE

EUB ANNOUNCES SUCCESSFUL STAKEHOLDER CONSULTATION ON APPROPRIATE DISPUTE RESOLUTION (ADR) INITIATIVE

Calgary, Alberta (June 20, 2000) Last fall, the Alberta Energy and Utilities Board (EUB) began a multi-party initiative towards expanding the use of Appropriate Dispute Resolution (ADR) as it applies to the upstream petroleum industry. A report on this initiative, entitled Report for Implementation of an Appropriate Dispute Resolution System for Alberta's Upstream Petroleum Applications has now been completed and is available on the EUB web site at www.ercb.ca. This important report involved and was endorsed by major stakeholders such as the Canadian Association of Petroleum Producers (CAPP), the Alberta Surface Rights Board, Farmer's Advocate, Wild Rose Agricultural Producers, Small Explorers and Producers Association of Canada (SEPAC) and the Canadian Association of Petroleum Landmen (CAPL) as well as members of the landowner and environmental communities.

Within the framework of this initiative, all stakeholders have a common interest and commitment to:

• improve the options available to parties in dispute
• to jointly discuss these options, and to
• resolve their dispute in a collaborative manner.

The term Appropriate Dispute Resolution was chosen over the more common Alternative Dispute Resolution in order to reflect the wide number of options available within this initiative, including mediation, and to reinforce the important facilitation role of the EUB staff in dispute resolution.

The Board of the EUB has also accepted the report and strongly endorses the use of ADR procedures as well as the following key recommendations made within the report:

• A preliminary ADR meeting, organized and run by a neutral third party will be convened so the parties in dispute can discuss the options available to them on how to deal with the dispute. This includes procedures, confidentiality, enforcement and funding. The report recommends that the energy applicant should fund this meeting.
• Interest based facilitation training will be provided to EUB staff in order to help both sides of a dispute.
• A roster of third party ADR experts will be established that involved parties can draw from.
• A communication plan will be developed and implemented to more fully explain the EUB's role, involvement, and the ADR framework to stakeholders. This framework should result in:
• enhanced efficiencies, and meeting of stakeholder needs
• better use of time and other resources
• improved land owner-industry relations.

The EUB has been using interim ADR procedures to resolve disputes over the past year. Implementation of this more formal ADR initiative is now beginning, with the program scheduled to be in place and active by this fall.

The EUB is aware of expectations from some groups that ADR and the ADR "toolbox" may be considered for use in matters other than energy related applications. This could include having ADR tools and techniques used in operational and/or post-approval disputes. The EUB emphasizes it has chosen to first address the use of ADR for energy related applications and will be considering the expansion of the framework as part of the implementation.

For further information on the EUB's Appropriate Dispute Resolution initiative, please contact Bill Remmer, Coordinator ADR Services at 297-8174.

-30-

Copies of this news release and the new EUB Report for Implementation of an Appropriate Dispute Resolution System for Alberta's Upstream Petroleum Applications are available on the EUB web site at http://www.ercb.ca

For further information please contact:

Bill Remmer
EUB Regulatory Support
Tel: (403) 297-8174

Stephen Smith, Section Leader
EUB Facility Applications Group
Tel: (403) 297-8306

Greg Gilbertson, Senior Advisor
EUB Communications
Tel: (403) 297-3648