ENVIRONMENT INVESTIGATING OIL AND GAS COMPANY

Saskatchewan Environment is investigating complaints that an oil and gas company operating in the Great Sand Hills area failed to comply with its environmental operating commitments in mid-March.

The concerns stem from the alleged movement of equipment at some well sites in the Fox Valley area after the ground had thawed, in contravention of its environmental operating plans. The RM of Fox Valley, which had given the company authorization for the drilling under the terms of their municipal land use regulation authority, has issued a stop work order.

"The province takes its environmental responsibilities very seriously and we are investigating complaints about a company operating in a sensitive area of the Great Sand Hills," Environment Minister Buckley Belanger said. "We will be investigating to see what if any negative environmental impacts have occurred, how the situation happened, what corrective action may be required and what we can do to avoid future problems."

Saskatchewan Environment will be leading an investigation into the incident, meeting with the RM, the Great Sand Hills District Planning Commission and company officials. On-site visits to inspect for any damages will be conducted once conditions allow travel to the area without creating damages.

-30-

For More Information, Contact:

Graham Mutch Environment Regina Phone: (306)787-6241

Wayne Luchenski Environment Swift Current Phone: (306)778-8260