Our corporate responsibility. - ARC Resources Ltd.

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Greenhouse Gas Emissions8000007000006000005000004000003000002000001000000.130.1905 06 070.19 0.200.150.100.05GHG intensity (tonnes/m 3 OE)Greenhouse Gas Emissions(CO 2 e tonnes/year)Note: The increase in the 2006 GHG was aresult of the December 2005 acquisition ofRedwater and NPCU.SO 2(tonnes)Benzene(tonnes)Gas flared& Vented(10 3 m 3 /yr)Solution GasConservationRate (%)Air Emissions05 06 072,381 2,461 2,7734.7 5.4 2.513,919 23,132 16,74095.4 94.7 97.7Our Management ApproachTo consistently live up to our commitments, we have been developing a robust environmentalmanagement system that comprises the following elements:• an environmental policy• annual goals and objectives• regular auditing, and• quarterly reporting to the HSE Committee of the Board of DirectorsWe strive to continually improve our environmental management system to ensure that emergingtrends, new technology, and government regulations are fully incorporated.We have a corporate HSE group that develops operating practices and procedures with HSECo-ordinators located at our field offices. Together we ensure that a consistent environmentalmanagement process is executed through the company.Managing Greenhouse Gas EmissionsFor any oil and gas company, reducing greenhouse gas (GHG) emissions is a considerable challenge.For ARC, it is a challenge we are addressing strategically and aggressively.ARC has intentionally acquired oil reservoirs that we believe are prime candidates for enhanced oilrecovery through the injection of carbon dioxide (CO 2). If CO 2is captured from large sources and madeavailable to us, we could sequester large amounts of carbon in our reservoirs, thereby reducing theamount of CO 2emitted into the atmosphere and increasing ultimate oil recovery. Currently there areno large quantities of CO 2being captured by emitters.Depending on what happens with carbon trading mechanisms in Canada and on availability of CO 2that would otherwise be emitted to the atmosphere, we could end up with significant carbon credits,as we expect to be able to sequester perhaps as much as 10,000 to 20,000 tonnes of C0 2per day.This is equivalent to removing 2,000 to 4,000 vehicles from the roads daily (and over one millionvehicles annually). In July 2008, ARC commenced a pilot C0 2injection project in the Redwater area.Midway through 2007 ARC began the first phase of implementing a fugitive emission managementprogram that will help us monitor and manage our fugitive emissions. We believe this programpresents an opportunity to make emission reductions that would not otherwise occur. The programwill continue through 2009 at which time we will assess the benefits of continued fugitiveemission monitoring. Fugitive emissions are air pollutant releases not confined to a stack, duct, vent,tank or other identified sources.Current Alberta greenhouse gas regulations do not significantly affect ARC since we do not operateany facilities that qualify as a large final emitter. However, ARC does have an interest in 34 facilitiesthat exceed the 3,000 tonnes per year Federal guideline. Subject to elaboration of the full federalguidelines, the impact on ARC’s operations is minimal at this time. We are continuously working onimproving our data management processes in order to obtain consistent, accurate, and verifiabledata. We feel the benefits associated with quality data management will become increasingly valuableas the regulatory environment clarifies and strengthens.Managing ObligationsARC actively reclaims abandoned oil and gas leases and roads. This involves returning our sites to astate equivalent to conditions prior to disturbance. We actively use soil treatment facilities ratherthan land farming techniques or landfills. This allows us to return native soils during the reclamationprocess. We have recently received approval for, and built, a bio-remediation facility in the Redwaterfield to facilitate the treatment of hydrocarbon contaminated soils in the Redwater area.10 2Corporate Responsibility
ARC maintains an active reclamation fund in which we set aside funds annually to ensure we are ableto address current and future liabilities. The balance of this fund, on December 31, 2007 stood at$26.1 million with annual contributions of $12 million. The Trust has estimated the net present valueof its total asset retirement obligations to be $140 million as at December 31, 2007. Since 2005, ARChas spent $32.3 million on reclamation activities.Our PerformanceGreenhouse Gas EmissionsFrom 2005 to 2007, our CO 2emissions have increased 84 per cent, largely as the result of a purchaseof mature oil and gas assets from another operator. We have had a 43 per cent increase in carbonintensity (tonnes CO 2e/m 3 OE) in the same period.A major contributor to this increase is our Redwater field that requires significant energy use to movethe amount of fluids produced each day, and consequently generates more indirect GHG emissions.We acquired our Redwater properties in December 2005 fully aware that gaining an excellent longtermCO 2sequestration reservoir meant increasing our corporate GHG emissions in the short-term.The Redwater field alone increased our GHG emissions by 54 per cent.Air EmissionsSulphur dioxide (SO2) emissions have increased slightly since 2005, likely due to the variable chemicalsignature of our production, not due to any specific programs. Benzene emissions (from glycoldehydrators) have declined 48 per cent from 2005 to 2007, primarily due to benzene managementprograms and regulatory guidelines. We believe that the solution gas conservation rate has improvedbecause we are now receiving more accurate reporting from our Saskatchewan facilities.Flaring has gone up 25 per cent since 2005. The increase is due to large flaring volumes in northeastBritish Columbia (from well testing) in 2006. ARC is one of the leading companies developing theMontney gas resource in northeast British Columbia and the lack of infrastructure in the near-termdictates that significant flaring during testing will continue. This is a priority concern for us and wewill continue to pursue efforts to reduce this figure in the coming years. Notwithstanding significantefforts to reduce flaring, ARC is one of the leading companies developing the Montney gas resource inNE British Columbia and the lack of infrastructure in the near term dictates that significant flaringduring testing will continue.25000020000015000010000050000500400300200100Water Usem 3 Withdrawn05 06 07Spills and Leaks4833 3205 06 07NumberVolume (m 3 )5040302010Water UseOur fresh water withdrawals have decreased by 28 per cent since 2005. This figure includes totalsurface and ground water diverted for use under license. We actively pursue and evaluate sources ofnon-potable water to meet our needs.Spills and LeaksThe number of reportable spills and leaks has varied year-to-year; however, our volume recoveredcontinues to improve annually. The majority of occurrences are along pipelines and at fittings. Whenpatterns emerge, we work to identify root causes and share learnings to prevent recurrence.Wellsite ReclamationARC has 985 abandoned wells, with reclamation complete at 483 of those sites. Of the remaining 502sites, ARC is actively working on 190 leases while 312 leases are being evaluated.Wellsite Reclamation100080060040020005 06 07Abandoned WellsReclamations CompletedActive ReclamationsNew CertificateCorporate Responsibility 11
Page 3 and 4: We at ARC believe that corporate re
Page 5 and 6: a history of corporateresponsibilit
Page 7 and 8: EnvironmentWe operate in an industr
Page 9 and 10: corporate responsibilitymanagementA
Page 11: environmentWe understand that our o
Page 15 and 16: Our Management ApproachAs described
Page 17 and 18: employeesARC sees its responsibilit
Page 19 and 20: such issues as equal opportunity, h
Page 21 and 22: At a minimum, we solicit community
Page 23 and 24: Our Management ApproachOur approach
Page 25 and 26: performance summaryARC is committed
Page 27 and 28: Contact and FeedbackWe welcome and

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