OIL AND GAS COMPANY FAILED TO MEET COMMITMENTS

An oil and gas company operating in the Great Sand Hills failed to fully meet its commitments but did not break any environmental regulations.

The concerns stemmed from the movement of heavy equipment on drilling sites and access trails in the RM of Fox Valley after the ground surface had thawed in mid March. The company halted work when the thaw occurred, but not before some damage had occurred. The damage is unlikely to have a lasting ecological impact and the company is already working on reclamation under the direction of provincial agencies. It is Environment's conclusion, however, that the company should have done more to ensure that the situation did not arise in the first place.

"That message has been conveyed to the company and it has been instructed to provide a detailed written explanation of the event," Environment Minister Buckley Belanger said. "We want everyone to learn from this incident to ensure that this type of problem does not arise again, and we are pleased that the company is co-operating fully."

Saskatchewan Environment's investigation included discussions with the company, other agencies and the RM of Fox Valley, as well as on-site inspections.

-30-

For More Information, Contact:

Graham Mutch Environment Regina Phone: (306)787-6241 Email: gmutch@serm.gov.sk.ca

Wayne Luchenski Environment Swift Current Phone: (306)778-8260 Email: wluchenski@serm.gov.sk.ca