The Canadian Oil Sands Suncor’s Experience

1. The Canadian Oil Sands Suncor’s Experience

2. Topics • Overview of Oil Sands Operations : how water and energy are used in the operations • Growing a Sustainable Energy Company – Suncor’s Experience • Water Governance in Alberta

3. Overview of Oil Sands Operations

4. Suncor Operating Areas 4

5. Oil Sands - the Resource • Thick, sticky mixture of sand, water and bitumen • Currently 35% of Canada’s oil production – growth projection to 68% by 2010 • Suncor leases cover 1,800 square kilometers or 1,118 square miles • Reserves and resources in place to produce a potential 14 billion* barrels of crude oil * Suncor data includes proved plus probable reserves and recoverable resources, as of December 31, 2005 which is not comparable to most competitors.

6. Oil Sands - High Quality Leases 6

7. Oil Sands - Mining

8. Steam flows tointerface andcondenses SAGDIn-situprocess Steam Chamber Bitumen & Water Heated bitumenflows to well

9. Water: An Essential Resource • Water is used to convert oil sands into useable oil products • Hot water separation process • Transportation medium • Thermal transfer (heating and cooling) • Void replacement in reservoir • Potable and sewage systems • High degree of recycle, in excess of 75% for mines, 95% for in-situ • long term retention through water capture in the void space and deep-well disposal of waste waters • Surface mining uses 3-4 m3 water /m3 oil product, predominantly from Athabasca River • Closer to 2 m3/m3 for mature plants • In-situ – less than 1 m3/m3 for mature operations, largely groundwater

10. Water: Regional Concerns • Water Quantity • Cumulative withdrawal from surface water bodies • In stream flow needs – low flow during winter period • Water Quality • Discharge from reclaimed landscape • Regional Groundwater information not complete • Potable aquifers • Deep well disposal

11. Current Net Licensed Water Allocation in the Athabasca Basin

12. Energy “Inputs” in the development of Oil Sands • Development is energy intensive • Natural gas – heating, steam generation, power generation • Electricity – lighting, pumps, motors, buildings • Diesel – mobile fleet • Coke by-product is also used as fuel supply • Co-generation is natural fit – Suncor is net exporter of electricity • Mobile fleet fuels generated on site

13. Energy Efficiency Outputs Crude Products Electricity By-products (Coke, Sulphur) Inputs Bitumen Natural gas Electricity ~ 80% conversion • Energy efficiency: technology, heat integration key levers to improving performance, reducing emissions • Intensity measured as energy use per unit of production is decreasing: • 1996: 9.9 (gigajoules/m3 production) • 2000: 8.7 • 2004: 7.8

14. Growing a Sustainable Energy Company – Suncor’s Experience

15. Sustainable Development - concept

16. Strategic drivers for sustainable development • stakeholder expectations(economic, environmental, social) • shareholder activism • increased investor interest • need for integrated view of business strategy • earning societal consent to operate/grow business • competitive advantage

17. Suncor’s vision of sustainability “Suncor’s vision is to be a unique and sustainable energy company, dedicated to vigorous growth by meeting the changing expectations of our current and future stakeholders.”

18. Putting Suncor’s vision to workStrategic framework Sustainable Energy Company Economic Prosperity Social Well-Being Environmental Quality Stakeholder Expectations • Customers • Shareholders • Employees • Communities • Governments • General public Operational Excellence Issues Management Products & Services for the Future Improved Decision Making Stakeholder Relations Organizational Capability & Commitment

19. Water Governance

20. Water for Life: Alberta’s Strategy for Sustainability • Finalized in 2003 after extensive public consultation • Reaffirmed 3 goals and outcomes for Alberta: • safe, secure drinking water • healthy aquatic ecosystems • reliable, quality water supplies for sustainable economy • 3 key directions identified • knowledge and research • partnerships • water conservation

21. Strategic Changes in Water for Life Strategy • From water management to watershed management • From traditional regulator to shared governance/shared responsibility • Water Conservation goal 30% improvement by 2015 (baseline 2005)

22. Watershed Management - Partnerships • Water Council • Watershed Planning and Advisory Councils • 4 Basin Management Plans in development • 11 councils to be formed • Watershed Stewardship Groups

23. Multistakeholder Engagement specific to Oil Sands Region • Cumulative Environment Management Association (CEMA) multi-stakeholder organization responsible for researching and making recommendations on the cumulative environmental impact of development in the Wood Buffalo Region. • Water quantity and quality; Watershed integrity • Reclamation, end-pit-lakes, wetlands • Regional Aquatic Monitoring Program (RAMP) joint environmental monitoring program that assesses the health of rivers and lakes in the Oil Sands Region of northeastern Alberta

24. Multistakeholder Engagement specific to Oil Sands Region • Wood Buffalo Environment Association (WBEA) The mission of the Wood Buffalo Environmental Association is to monitor and provide accurate, credible, transparent and understandable information on environmental quality in the Wood Buffalo Region • Operates network of air-monitoring stations • Terrestrial effects monitoring

25. Additional information from: • www.suncor.com • www.cemaonline.ca • www.wbea.org • www.ramp-alberta.org • www.centreforenergy.com • www.capp.ca • www.eub.gov.ab.ca • www.gov.ab.ca