CAPP Context Magazine, Issue 4.1

CAPP’s member magazine

Volume 4 . Issue 1 February 2016

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REPORT TO MEMBERS

2015 YEAR IN REVIEW AND 2016 STRATEGIC PRIORITIES

MESSAGE FROM THE

PRESIDENT AND CEO

Q& A: ASSESSING ALBERTA’S

NEW ROYALTY REGIME Publication Number: 2016-9201

Table of

CONTENTS

The official member magazine for the Canadian Association of Petroleum Producers (CAPP)

Volume 4 Issue 1 REPORT TO MEMBERS

Volume 4 Issue 1 Publication Number: 2016-9201 context@capp.ca | www.capp.ca/context

Publisher Jeff Gaulin, vice-president communications CAPP Jeff.Gaulin@capp.ca Managing Editor Brenda Jones, manager communications CAPP Brenda.Jones@capp.ca

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7

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Editor Andrew Mah, communications advisor CAPP Andrew.Mah@capp.ca

Departments

Art Director

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inContext

Distribution and Member Updates

4

President and CEO’s Message

Janine.Vandenberghe@capp.ca

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What’s Up at CAPP? 2015 Year in Review

Birdeen Selzer, Blunt Strategic in co-operation with Mindjello Creative

Royalty Review Report Q&A: CAPP president and CEO Tim McMillan talks about the Alberta government’s new royalty regime

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Please contact for changes in contact names and delivery addresses.

Context Concept, Strategy and Product Development Agnes Zalewski, Blunt Strategic

Features 9

Janine Vandenberghe, administrative assistant CAPP

2016 Priorities: CAPP’s 2016 strategic priorities as approved by our board of governors

CONTEXT IS PRINTED ON 100 PER CENT POST‑ CONSUMER FIBR E , M A NUFAC TUR ED USING BIOGA S ENERGY

CAPP EXECUTIVE TEAM President and CEO Tim McMillan

Tim.McMillan@capp.ca

Vice-President, Policy and Performance Alex Ferguson

Alex.Ferguson@capp.ca

Vice-President, Communications Jeff Gaulin

Jeff.Gaulin@capp.ca

Vice-President, Western Canada Operations Brad Herald

Brad.Herald@capp.ca

Vice-President, Pipeline Regulation and General Counsel Nick Schultz

Nick.Schultz@capp.ca

Printed in Canada by McAra Printing. Copyright © 2016 Canadian Association of Petroleum Producers. All rights reserved.

Reproduction in whole or in part is strictly prohibited.

BY USING

471 KG OF RECYCLED MATERIAL WE SAVED:

OFFICES Calgary

9 TREES

2100, 350 – 7th Ave SW, Calgary, Alberta T2P 3N9, Tel: 403-267-1100

32,219 L I T R E S O F WAT E R

1000, 275 Slater Street, Ottawa, Ontario K1P 5H9, Tel: 613-288-2126

Ottawa

92 days of water consumption

St. John’s

395 KG O F WA S T E

904, 235 Water Street, St. John’s, Newfoundland and Labrador,

1,296 KG C 0

Victoria

8 waste containers

8,666 km driven

2

8 GJ

A1C 1B6, Tel: 709-724-4200

310, 1321 Blanshard Street, Victoria, British Columbia, V8W 0B5, Tel: 778-410-5000

35,805 60-watt light bulbs for one hour

2 KG N OX

emissions of one truck during 5 days

2

CONTEXT . VOLUME 4 . ISSUE 1 . FEBRUARY 2016

C APP.C A /CONTE X T

inCONTEXT

Competitiveness

Negotiation

AER’S NEAR TERM ACTION PROGRAM (NTAP):

NTAP is an Alberta Energy Regulator (AER) project to increase efficiency by eliminating duplication and streamlining regulatory requirements for low-risk activities.

CAPP and members provide expertise and insight on areas for efficiency savings.

Apr 2013 – Mar 2014

$60 MILLION* Apr 2014 – Mar 2015

Apr 2015 – Mar 2016

Alliance Pipeline Hearing Victory Saves Shippers from “Unlimited Pricing”

**

The NEB sided with CAPP in disallowing a request

by Alliance for unlimited pricing discretion for interruptible and seasonal services.

The decision prevents unfettered pricing discretion that could have led to unlimited costs to shippers.

TOTAL ESTIMATED SAVINGS BY MAR 31, 2016 = $730 MILLION

**Targeted savings

Public Confidence

CAPP VALUE CREATION:

2015/16 HIGHLIGHTS

CANADA’S ENERGY CITIZENS:

The grassroots nation of oil and natural gas industry champions and supporters grew by 1,200 per cent through 2015 and January 2016 thanks to ongoing outreach, marketing and recruitment by CAPP and member support.

7,300

JAN 1, 2015

Trans Mountain Settlement Saves Producers Shipping Costs

NATURAL GAS

$270 MILLION*

*Confirmed, verifiable savings as published in AER annual reports. Note that actual savings to members are dependent on commodity prices and industry activity levels.

OIL

CAPP reached a three-year toll agreement (2016 till 2018 or TMEP* startup) on the Trans Mountain pipeline.

This provides cost certainty and saves hundred of thousands of dollars in potential hearing costs.

NTAP COST SAVINGS TO INDUSTRY

$400 MILLION

PIPELINES: TOLL SETTLEMENT AND NEB HEARING

*TMEP = Trans Mountain Expansion Project

Market Access ENBRIDGE LINE 9B REVERSAL:

CAPP provided support to Enbridge’s application to reverse and expand Line 9B to 300,000 b/d. The pipeline can move Western Canadian and U.S. Bakken crude oil east from Sarnia to refineries in Quebec. First oil reached Montreal on December 2, 2015.

QUEBEC REFINERIES

90,000 JAN 31, 2016

Foreign sources: 320,000 b/d

90,000-plus Energy Citizens and growing means industry’s voice will be heard by policy makers on issues impacting Canada’s oil and gas industry.

C APP.C A /CONTE X T

Line 9B: 300,000 b/d

vs Prior to the reversal, refineries in Quebec imported about 320,000 b/d of oil from foreign countries. The reversal means Canadian oil can displace overseas imports, providing a secure source of supply and keeping more jobs in Canada.

CONTEXT . VOLUME 4 . ISSUE 1 . FEBRUARY 2016

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PRESIDENT AND CEO’S MESSAGE

STRIVING TO BE THE BEST

ADVOCACY ORGANIZATION IN CANADA

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Welcome to our first issue of Context in 2016. The focus of this edition is reporting out what CAPP accomplished in 2015, and the goals and priorities you, through our member-appointed board of governors, have identified for us for the year ahead.

potential hearing costs. Continued modernization of regulations and streamlining of regulatory processes via the Alberta Energy Regulator’s Near Term Action Program (NTAP) have already achieved $400 million in cost savings for industry, with more to come.

While 2015 was certainly a challenging year for all of us in Canada’s natural gas and oil industry, there were bright spots. The successful reversal of Enbridge Line 9, allowing Western Canadian oil to be delivered to refineries in Montreal, was one step toward helping Ontario and Quebec be less reliant on imported oil and help keep more jobs in Canada. A major toll settlement CAPP negotiated on behalf of shippers for the Trans Mountain pipeline provides shippers cost certainty while saving several hundred thousand dollars in

We also provided comprehensive submissions in response to both the Alberta government’s royalty and climate change reviews.

CONTEXT . VOLUME 4 . ISSUE 1 . FEBRUARY 2016

Since our submissions, the government has released details on its climate leadership plan and updated royalty regime. There are positive elements in each, suggesting that the concerns expressed

by CAPP and members through our submissions and other feedback, were heard. Yet, it is likewise clear that as the government moves forward towards policy implementation in the year ahead, CAPP C APP.C A /CONTE X T

PRESIDENT AND CEO’S MESSAGE

CAPP’s Three Audiences 1. The public 2. Government and regulatory agencies 3. Industry

and members will need to continue to consult vigorously, working to ensure the detailed policies are effective and efficient—that they avoid harm to and, where possible, enhance industry’s ability to compete and grow.

The milestones I’ve highlighted are just a few examples of the value creation CAPP brings to its members. On that note, I’d like to take a moment to reflect more generally on what CAPP does, and why we’re able to achieve value for our membership.

When I joined CAPP just over a year ago, it was mentioned to me a few times that at CAPP, “we strive to be the best advocacy organization in Canada.” It’s a key aspiration—and one that I’ve come to recognize in my time here as being absolutely sincere.

But what does it mean to be Canada’s best advocacy organization?

Who is it that we advocate to, and why?

We have three primary, absolutely vital audiences at CAPP. The first is the public. It is essential that as an industry, we understand and take into account the views, values and interests of Canadians.

Aligning ourselves to what matters most to Canadians helps ensure we have support for our operations near and within communities, as well as for market access infrastructure initiatives like pipelines and shipping terminals.

We’ve built the necessary relationships, developed leading expertise and initiated the right strategies to advance our industry’s interests.

Through strong market research and ongoing communications initiatives highlighting industry benefits, such as jobs, economic growth and world-class environmental, health and safety standards, CAPP has moved the needle of public opinion to the extent that industry supporters outnumber opponents by two to one. Now, we are at the vital stage of developing outreach and grassroots campaigns.

Through the Canada’s Energy Citizens program, we are identifying, informing and involving industry supporters in key markets and on key issues—ensuring we have the kind of visible public support needed to engage and influence public policy.

Our second audience are government and regulatory agencies. CAPP engages early and often to build strong relationships at all levels of C APP.C A /CONTE X T

government, the bureaucracy and regulatory agencies. With input from members, CAPP advances policy and regulatory positions that seek to enhance competitiveness, develop new markets and position our industry for success. While governments and agencies possess their own policy agendas, most recognize that their decisions are better informed when they consult with experts in impacted industries. By working collaboratively and taking a strong science-based and solutions-oriented approach, CAPP has made itself a trusted resource to governments at all levels and of all political stripes. This in turn helps us drive for policies that maintain industry competitiveness, and that enable a more streamlined and risk-based approach to regulatory oversight and enforcement.

Finally, our third audience is industry. By building consensus within the upstream industry, we are able to be a strong negotiating partner within a broader economic and stakeholder context. We can, for example, advocate for member interests effectively at things like pipeline hearings and toll negotiations, regulatory reviews and policy forums. We are also able to provide valuable resources to members in the form of industry research, reports and presentations, and to promote industry-wide performance improvement through the development and dissemination of health, safety and environmental best practices. As well, we can help attract investment opportunities through events like our annual investment symposium.

At CAPP, we know our three audiences—the public, government/ regulatory agencies and industry—very well. We’ve built the necessary relationships, developed leading expertise and initiated the right strategies to advance our industry’s interests. We also continually work to refine our approaches, adapting to a complex and ever-changing external context. This quality of adaptation, I believe, is the foundation that allows us to be Canada’s best advocacy organization.

Equally important is that we never forget who we do this for: you, our members. While your companies operate in different parts of the country, and consist of varying sizes, and resource types and methods of production, the trust you place in us to speak with a unified voice is greatly empowering. It allows us to speak on your behalf to our three audiences with consistency, credibility and persuasion.

As we head into 2016, I speak for all CAPP staff in saying that it is a privilege and a responsibility to work on your behalf. We thank you all for your trust in helping us continually build a strong, resilient and competitive Canadian natural gas and oil industry. I encourage you to read this and subsequent issues of Context to stay up to date on how we are creating value for your organization throughout this year and beyond.

Sincerely, Tim McMillan

Alberta Royalty Regime Q&A For more on CAPP’s response to the recently released Alberta royalty regime, read Tim’s Q&A on page 9.

CONTEXT . VOLUME 4 . ISSUE 1 . FEBRUARY 2016

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83746T461245397593746492034869085476592347868746340238746815289740983475 092348U9387589436019832409812984782376476523758347590283047891826386326758723750983405890347582638457619872094381032 56087034767434216543693878604578683256376215694878725692387348534765794031874815268975804386795327674905387698508607678692365347613826549037846873490658705697893464873297485694367402834367 476592347868746340238746815289740983475 092348U9387589436019832409812984782376476523758347590283047891826386326758723750983405890347582638457619872094381032745923658346785823974902387409819 The Alberta Energy Regulator’s 68325637621569487872569238734853476579403187481526897580438679532767490538769850860767869236534761382654903784687349065870569789346487329748569436740283436757930824795746850942387690438120 0983475 092348U938758943601983240981298478237647652375834759028304789182638632675872375098340589034758263845761987209438103274592365834678582397490238740981909283912973617253615243765483297 (AER) 2015-16 annual report 4765794031874815268975804386795327674905387698508607678692365347613826549037846873490658705697893464873297485694367402834367579308247957468509423876904381209489743659054869854750348759832 098129847823764765237583475902830478918263863267587237509834058903475826384576198720943810327459236583467858239749023874098190928391297361725361524376548329750943806839487568234764716253475 identifies $270 million in savings 2767490538769850860767869236534761382654903784687349065870569789346487329748569436740283436757930824795746850942387690438120948974365905486985475034875983276472156873476573265639182476809 047891826386326758723750983405890347582638457619872094381032745923658346785823974902387409819092839129736172536152437654832975094380683948756823476471625347512 1029492837597469238748091283082 FOX CREEK, AB to upstream producers through 6138265490378468734906587056978934648732974856943674028343675793082479574685094238769043812094897436590548698547503487598327647215687347657326563918247680956876834650547693408975682351367 SEISMIC EVENT 0347582638457619872094381032745923658346785823974902387409819092839129736172536152437654832975094380683948756823476471625347512 102949283759746923874809128308237584365872374980812047239658743 streamlined regulations. CAPP 3464873297485694367402834367579308247957468509423876904381209489743659054869854750348759832764721568734765732656391824768095687683465054769340897568235136786347215368236546879234609578687 23658346785823974902387409819092839129736172536152437654832975094380683948756823476471625347512 102949283759746923874809128308237584365872374980812047239658743691203874931287495376492387654894 provides ongoing input to the Fox Creek, AB, 3082479574685094238769043812094897436590548698547503487598327647215687347657326563918247680956876834650547693408975682351367863472153682365468792346095786874356983746T4612453975937464920348 39129736172536152437654832975094380683948756823476471625347512 102949283759746923874809128308237584365872374980812047239658743691203874931287495376492387654894378695608703476743421654369387860 AER through the Near Term experiences induced 7436590548698547503487598327647215687347657326563918247680956876834650547693408975682351367863472153682365468792346095786874356983746T461245397593746492034869085476592347868746340238746815 Action Program (NTAP).

80683948756823476471625347512 10294928375974692387480912830823758436587237498081204723965874369120387493128749537649238765489437869560870347674342165436938786045786832563762156948787256923873 seismicity magnitude 4.4 15687347657326563918247680956876834650547693408975682351367863472153682365468792346095786874356983746T461245397593746492034869085476592347868746340238746815289740983475 092348U9387589436019 4928375974692387480912830823758436587237498081204723965874369120387493128749537649238765489437869560870347674342165436938786045786832563762156948787256923873485347657940318748152689758043867 believed due to hydraulic 34650547693408975682351367863472153682365468792346095786874356983746T461245397593746492034869085476592347868746340238746815289740983475 092348U938758943601983240981298478237647652375834759 365872374980812047239658743691203874931287495376492387654894378695608703476743421654369387860457868325637621569487872569238734853476579403187481526897580438679532767490538769850860767869236 fracturing activities. For 2153682365468792346095786874356983746T461245397593746492034869085476592347868746340238746815289740983475 092348U93875894360198324098129847823764765237583475902830478918263863267587237509834 ALBERTA TAILINGS 387493128749537649238765489437869560870347674342165436938786045786832563762156948787256923873485347657940318748152689758043867953276749053876985086076786923653476138265490378468734906587056 this, and a subsequent 83746T461245397593746492034869085476592347868746340238746815289740983475 092348U9387589436019832409812984782376476523758347590283047891826386326758723750983405890347582638457619872094381032 MANAGEMENT FRAMEWORK 56087034767434216543693878604578683256376215694878725692387348534765794031874815268975804386795327674905387698508607678692365347613826549037846873490658705697893464873297485694367402834367 event in the north 476592347868746340238746815289740983475 092348U9387589436019832409812984782376476523758347590283047891826386326758723750983405890347582638457619872094381032745923658346785823974902387409819 68325637621569487872569238734853476579403187481526897580438679532767490538769850860767869236534761382654903784687349065870569789346487329748569436740283436757930824795746850942387690438120 Montney (B.C.), CAPP Alberta government releases its 0983475 092348U938758943601983240981298478237647652375834759028304789182638632675872375098340589034758263845761987209438103274592365834678582397490238740981909283912973617253615243765483297 provides information Tailings Management Framework.

4765794031874815268975804386795327674905387698508607678692365347613826549037846873490658705697893464873297485694367402834367579308247957468509423876904381209489743659054869854750348759832 098129847823764765237583475902830478918263863267587237509834058903475826384576198720943810327459236583467858239749023874098190928391297361725361524376548329750943806839487568234764716253475 enabling a responsive CAPP provided input to govern2767490538769850860767869236534761382654903784687349065870569789346487329748569436740283436757930824795746850942387690438120948974365905486985475034875983276472156873476573265639182476809 25th CAPP Scotiabank Investment 047891826386326758723750983405890347582638457619872094381032745923658346785823974902387409819092839129736172536152437654832975094380683948756823476471625347512 1029492837597469238748091283082 regulatory approach, ment’s policy development and 6138265490378468734906587056978934648732974856943674028343675793082479574685094238769043812094897436590548698547503487598327647215687347657326563918247680956876834650547693408975682351367 Symposium held in Toronto con0347582638457619872094381032745923658346785823974902387409819092839129736172536152437654832975094380683948756823476471625347512 102949283759746923874809128308237584365872374980812047239658743 and through community is supportive of the approach 3464873297485694367402834367579308247957468509423876904381209489743659054869854750348759832764721568734765732656391824768095687683465054769340897568235136786347215368236546879234609578687 nected 329 investors (a 20% 23658346785823974902387409819092839129736172536152437654832975094380683948756823476471625347512 102949283759746923874809128308237584365872374980812047239658743691203874931287495376492387654894 outreach fosters positive used based on project-specific increase from 2014) with oil and 3082479574685094238769043812094897436590548698547503487598327647215687347657326563918247680956876834650547693408975682351367863472153682365468792346095786874356983746T4612453975937464920348 39129736172536152437654832975094380683948756823476471625347512 102949283759746923874809128308237584365872374980812047239658743691203874931287495376492387654894378695608703476743421654369387860 discussion and dialogue. triggers and limits. gas producers.

7436590548698547503487598327647215687347657326563918247680956876834650547693408975682351367863472153682365468792346095786874356983746T461245397593746492034869085476592347868746340238746815 80683948756823476471625347512 10294928375974692387480912830823758436587237498081204723965874369120387493128749537649238765489437869560870347674342165436938786045786832563762156948787256923873 15687347657326563918247680956876834650547693408975682351367863472153682365468792346095786874356983746T461245397593746492034869085476592347868746340238746815289740983475 092348U9387589436019 4928375974692387480912830823758436587237498081204723965874369120387493128749537649238765489437869560870347674342165436938786045786832563762156948787256923873485347657940318748152689758043867 34650547693408975682351367863472153682365468792346095786874356983746T461245397593746492034869085476592347868746340238746815289740983475 092348U938758943601983240981298478237647652375834759 365872374980812047239658743691203874931287495376492387654894378695608703476743421654369387860457868325637621569487872569238734853476579403187481526897580438679532767490538769850860767869236 2153682365468792346095786874356983746T461245397593746492034869085476592347868746340238746815289740983475 092348U93875894360198324098129847823764765237583475902830478918263863267587237509834 387493128749537649238765489437869560870347674342165436938786045786832563762156948787256923873485347657940318748152689758043867953276749053876985086076786923653476138265490378468734906587056 83746T461245397593746492034869085476592347868746340238746815289740983475 092348U9387589436019832409812984782376476523758347590283047891826386326758723750983405890347582638457619872094381032 56087034767434216543693878604578683256376215694878725692387348534765794031874815268975804386795327674905387698508607678692365347613826549037846873490658705697893464873297485694367402834367 476592347868746340238746815289740983475 092348U9387589436019832409812984782376476523758347590283047891826386326758723750983405890347582638457619872094381032745923658346785823974902387409819 68325637621569487872569238734853476579403187481526897580438679532767490538769850860767869236534761382654903784687349065870569789346487329748569436740283436757930824795746850942387690438120 0983475 092348U938758943601983240981298478237647652375834759028304789182638632675872375098340589034758263845761987209438103274592365834678582397490238740981909283912973617253615243765483297 4765794031874815268975804386795327674905387698508607678692365347613826549037846873490658705697893464873297485694367402834367579308247957468509423876904381209489743659054869854750348759832 098129847823764765237583475902830478918263863267587237509834058903475826384576198720943810327459236583467858239749023874098190928391297361725361524376548329750943806839487568234764716253475 2767490538769850860767869236534761382654903784687349065870569789346487329748569436740283436757930824795746850942387690438120948974365905486985475034875983276472156873476573265639182476809 047891826386326758723750983405890347582638457619872094381032745923658346785823974902387409819092839129736172536152437654832975094380683948756823476471625347512 1029492837597469238748091283082 6138265490378468734906587056978934648732974856943674028343675793082479574685094238769043812094897436590548698547503487598327647215687347657326563918247680956876834650547693408975682351367 0347582638457619872094381032745923658346785823974902387409819092839129736172536152437654832975094380683948756823476471625347512 102949283759746923874809128308237584365872374980812047239658743 3464873297485694367402834367579308247957468509423876904381209489743659054869854750348759832764721568734765732656391824768095687683465054769340897568235136786347215368236546879234609578687 23658346785823974902387409819092839129736172536152437654832975094380683948756823476471625347512 102949283759746923874809128308237584365872374980812047239658743691203874931287495376492387654894 B.C. WATER STRATEGY 3082479574685094238769043812094897436590548698547503487598327647215687347657326563918247680956876834650547693408975682351367863472153682365468792346095786874356983746T4612453975937464920348 39129736172536152437654832975094380683948756823476471625347512 102949283759746923874809128308237584365872374980812047239658743691203874931287495376492387654894378695608703476743421654369387860 7436590548698547503487598327647215687347657326563918247680956876834650547693408975682351367863472153682365468792346095786874356983746T461245397593746492034869085476592347868746340238746815 B.C. government releases its Northeast Water Strategy, 80683948756823476471625347512 10294928375974692387480912830823758436587237498081204723965874369120387493128749537649238765489437869560870347674342165436938786045786832563762156948787256923873 15687347657326563918247680956876834650547693408975682351367863472153682365468792346095786874356983746T461245397593746492034869085476592347868746340238746815289740983475 092348U9387589436019 a framework for water-use management in the region.

4928375974692387480912830823758436587237498081204723965874369120387493128749537649238765489437869560870347674342165436938786045786832563762156948787256923873485347657940318748152689758043867 34650547693408975682351367863472153682365468792346095786874356983746T461245397593746492034869085476592347868746340238746815289740983475 092348U938758943601983240981298478237647652375834759 CAPP provided key input on pragmatic approaches to 365872374980812047239658743691203874931287495376492387654894378695608703476743421654369387860457868325637621569487872569238734853476579403187481526897580438679532767490538769850860767869236 2153682365468792346095786874356983746T461245397593746492034869085476592347868746340238746815289740983475 092348U93875894360198324098129847823764765237583475902830478918263863267587237509834 licensing groundwater under the Water Sustainability 387493128749537649238765489437869560870347674342165436938786045786832563762156948787256923873485347657940318748152689758043867953276749053876985086076786923653476138265490378468734906587056 LNG GETS A BOOST 83746T461245397593746492034869085476592347868746340238746815289740983475 092348U9387589436019832409812984782376476523758347590283047891826386326758723750983405890347582638457619872094381032 Act, thus enabling the use of low-quality or 56087034767434216543693878604578683256376215694878725692387348534765794031874815268975804386795327674905387698508607678692365347613826549037846873490658705697893464873297485694367402834367 476592347868746340238746815289740983475 092348U9387589436019832409812984782376476523758347590283047891826386326758723750983405890347582638457619872094381032745923658346785823974902387409819 difficult-to-access groundwater sources for The federal government announces LNG 68325637621569487872569238734853476579403187481526897580438679532767490538769850860767869236534761382654903784687349065870569789346487329748569436740283436757930824795746850942387690438120 0983475 092348U938758943601983240981298478237647652375834759028304789182638632675872375098340589034758263845761987209438103274592365834678582397490238740981909283912973617253615243765483297 beneficial use in resource development suppliers are eligible for a 30% capital 4765794031874815268975804386795327674905387698508607678692365347613826549037846873490658705697893464873297485694367402834367579308247957468509423876904381209489743659054869854750348759832 in northeastern B.C. and relief from cost allowance rate, up from 8%. CAPP 098129847823764765237583475902830478918263863267587237509834058903475826384576198720943810327459236583467858239749023874098190928391297361725361524376548329750943806839487568234764716253475 2767490538769850860767869236534761382654903784687349065870569789346487329748569436740283436757930824795746850942387690438120948974365905486985475034875983276472156873476573265639182476809 significant regulatory cost and burden. advocated a change along these lines in its 047891826386326758723750983405890347582638457619872094381032745923658346785823974902387409819092839129736172536152437654832975094380683948756823476471625347512 1029492837597469238748091283082 6138265490378468734906587056978934648732974856943674028343675793082479574685094238769043812094897436590548698547503487598327647215687347657326563918247680956876834650547693408975682351367 2015 federal budget submission.

0347582638457619872094381032745923658346785823974902387409819092839129736172536152437654832975094380683948756823476471625347512 102949283759746923874809128308237584365872374980812047239658743 3464873297485694367402834367579308247957468509423876904381209489743659054869854750348759832764721568734765732656391824768095687683465054769340897568235136786347215368236546879234609578687 23658346785823974902387409819092839129736172536152437654832975094380683948756823476471625347512 102949283759746923874809128308237584365872374980812047239658743691203874931287495376492387654894 3082479574685094238769043812094897436590548698547503487598327647215687347657326563918247680956876834650547693408975682351367863472153682365468792346095786874356983746T4612453975937464920348 39129736172536152437654832975094380683948756823476471625347512 102949283759746923874809128308237584365872374980812047239658743691203874931287495376492387654894378695608703476743421654369387860 7436590548698547503487598327647215687347657326563918247680956876834650547693408975682351367863472153682365468792346095786874356983746T461245397593746492034869085476592347868746340238746815 80683948756823476471625347512 10294928375974692387480912830823758436587237498081204723965874369120387493128749537649238765489437869560870347674342165436938786045786832563762156948787256923873 15687347657326563918247680956876834650547693408975682351367863472153682365468792346095786874356983746T461245397593746492034869085476592347868746340238746815289740983475 092348U9387589436019 4928375974692387480912830823758436587237498081204723965874369120387493128749537649238765489437869560870347674342165436938786045786832563762156948787256923873485347657940318748152689758043867 34650547693408975682351367863472153682365468792346095786874356983746T461245397593746492034869085476592347868746340238746815289740983475 092348U938758943601983240981298478237647652375834759 NDP and leader Rachel Notley win provincial election, forming the first new 365872374980812047239658743691203874931287495376492387654894378695608703476743421654369387860457868325637621569487872569238734853476579403187481526897580438679532767490538769850860767869236 2153682365468792346095786874356983746T461245397593746492034869085476592347868746340238746815289740983475 092348U93875894360198324098129847823764765237583475902830478918263863267587237509834 Alberta government in 44 years. CAPP and industry form a task group and 387493128749537649238765489437869560870347674342165436938786045786832563762156948787256923873485347657940318748152689758043867953276749053876985086076786923653476138265490378468734906587056 83746T461245397593746492034869085476592347868746340238746815289740983475 092348U9387589436019832409812984782376476523758347590283047891826386326758723750983405890347582638457619872094381032 communications and outreach plan to work with the new government on priorities 56087034767434216543693878604578683256376215694878725692387348534765794031874815268975804386795327674905387698508607678692365347613826549037846873490658705697893464873297485694367402834367 476592347868746340238746815289740983475 092348U9387589436019832409812984782376476523758347590283047891826386326758723750983405890347582638457619872094381032745923658346785823974902387409819 to protect and grow oil and gas industry jobs.

68325637621569487872569238734853476579403187481526897580438679532767490538769850860767869236534761382654903784687349065870569789346487329748569436740283436757930824795746850942387690438120 0983475 092348U938758943601983240981298478237647652375834759028304789182638632675872375098340589034758263845761987209438103274592365834678582397490238740981909283912973617253615243765483297 4765794031874815268975804386795327674905387698508607678692365347613826549037846873490658705697893464873297485694367402834367579308247957468509423876904381209489743659054869854750348759832 098129847823764765237583475902830478918263863267587237509834058903475826384576198720943810327459236583467858239749023874098190928391297361725361524376548329750943806839487568234764716253475 6 CONTEXT . VOLUME 4 . ISSUE 1 . FEBRUARY 2016 C APP.C A /CONTE X T 2767490538769850860767869236534761382654903784687349065870569789346487329748569436740283436757930824795746850942387690438120948974365905486985475034875983276472156873476573265639182476809 047891826386326758723750983405890347582638457619872094381032745923658346785823974902387409819092839129736172536152437654832975094380683948756823476471625347512 1029492837597469238748091283082 6138265490378468734906587056978934648732974856943674028343675793082479574685094238769043812094897436590548698547503487598327647215687347657326563918247680956876834650547693408975682351367

WHAT’S UP AT CAPP?

WHAT’S UP at CAPP

$

MAR 31:

2015 YE AR IN RE VIE W

JAN 22

The past year was filled with challenges, yes, but also opportunities. The following are a few highlights and milestones from the year that was, with a focus on CAPP value creation for members.

MAR 13:

APRIL 8, 9

CAPP INVESTMENT SYMPOSIUM

JANUARY

FEBRUARY

MARCH

APRIL

$ MAY

MAR 20

Photograph: Courtesy Government of Alberta

30% CCA

FEB 19

MAY 5

A NEW ALBERTA GOVERNMENT

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CAPP 2745923658346785823974902387409819092839129736172536152437654832975094380683948756823476471625347512 1029492837597469238748091283082375843658723749808120472396587436912038749312874953764923876 75793082479574685094238769043812094897436590548698547503487598327647215687347657326563918247680956876834650547693408975682351367863472153682365468792346095786874356983746T46124539759374649 is engaged on key Liberal policy 9092839129736172536152437654832975094380683948756823476471625347512 102949283759746923874809128308237584365872374980812047239658743691203874931287495376492387654894378695608703476743421654369 094897436590548698547503487598327647215687347657326563918247680956876834650547693408975682351367863472153682365468792346095786874356983746T4612453975937464920348690854765923478687463402387 proposals impacting industry, 75094380683948756823476471625347512 10294928375974692387480912830823758436587237498081204723965874369120387493128749537649238765489437869560870347674342165436938786045786832563762156948787256 including a proposed tanker ban off 27647215687347657326563918247680956876834650547693408975682351367863472153682365468792346095786874356983746T461245397593746492034869085476592347868746340238746815289740983475 092348U9387589 512 1029492837597469238748091283082375843658723749808120472396587436912038749312874953764923876548943786956087034767434216543693878604578683256376215694878725692387348534765794031874815268975 the coast of northern B.C., and the 956876834650547693408975682351367863472153682365468792346095786874356983746T461245397593746492034869085476592347868746340238746815289740983475 092348U938758943601983240981298478237647652375 237584365872374980812047239658743691203874931287495376492387654894378695608703476743421654369387860457868325637621569487872569238734853476579403187481526897580438679532767490538769850860767 CRUDE OIL FORECAST elimination of fossil fuel ‘subsidies’.

7863472153682365468792346095786874356983746T461245397593746492034869085476592347868746340238746815289740983475 092348U93875894360198324098129847823764765237583475902830478918263863267587237 369120387493128749537649238765489437869560870347674342165436938786045786832563762156948787256923873485347657940318748152689758043867953276749053876985086076786923653476138265490378468734906 74356983746T461245397593746492034869085476592347868746340238746815289740983475 092348U9387589436019832409812984782376476523758347590283047891826386326758723750983405890347582638457619872094 CAPP releases its Crude Oil Forecast, 4378695608703476743421654369387860457868325637621569487872569238734853476579403187481526897580438679532767490538769850860767869236534761382654903784687349065870569789346487329748569436740 869085476592347868746340238746815289740983475 092348U9387589436019832409812984782376476523758347590283047891826386326758723750983405890347582638457619872094381032745923658346785823974902387 Markets and Transportation predicting 0457868325637621569487872569238734853476579403187481526897580438679532767490538769850860767869236534761382654903784687349065870569789346487329748569436740283436757930824795746850942387690 5289740983475 092348U9387589436019832409812984782376476523758347590283047891826386326758723750983405890347582638457619872094381032745923658346785823974902387409819092839129736172536152437654 continued but slowing growth.

3485347657940318748152689758043867953276749053876985086076786923653476138265490378468734906587056978934648732974856943674028343675793082479574685094238769043812094897436590548698547503487 983240981298478237647652375834759028304789182638632675872375098340589034758263845761987209438103274592365834678582397490238740981909283912973617253615243765483297509438068394875682347647162 67953276749053876985086076786923653476138265490378468734906587056978934648732974856943674028343675793082479574685094238769043812094897436590548698547503487598327647215687347657326563918247 90283047891826386326758723750983405890347582638457619872094381032745923658346785823974902387409819092839129736172536152437654832975094380683948756823476471625347512 10294928375974692387480912 6534761382654903784687349065870569789346487329748569436740283436757930824795746850942387690438120948974365905486985475034875983276472156873476573265639182476809568768346505476934089756823 405890347582638457619872094381032745923658346785823974902387409819092839129736172536152437654832975094380683948756823476471625347512 1029492837597469238748091283082375843658723749808120472396 6978934648732974856943674028343675793082479574685094238769043812094897436590548698547503487598327647215687347657326563918247680956876834650547693408975682351367863472153682365468792346095 2745923658346785823974902387409819092839129736172536152437654832975094380683948756823476471625347512 1029492837597469238748091283082375843658723749808120472396587436912038749312874953764923876 CLEAR SEAS LAUNCHED 75793082479574685094238769043812094897436590548698547503487598327647215687347657326563918247680956876834650547693408975682351367863472153682365468792346095786874356983746T46124539759374649 9092839129736172536152437654832975094380683948756823476471625347512 102949283759746923874809128308237584365872374980812047239658743691203874931287495376492387654894378695608703476743421654369 094897436590548698547503487598327647215687347657326563918247680956876834650547693408975682351367863472153682365468792346095786874356983746T4612453975937464920348690854765923478687463402387 The federal government announces the launch of 75094380683948756823476471625347512 10294928375974692387480912830823758436587237498081204723965874369120387493128749537649238765489437869560870347674342165436938786045786832563762156948787256 27647215687347657326563918247680956876834650547693408975682351367863472153682365468792346095786874356983746T461245397593746492034869085476592347868746340238746815289740983475 092348U9387589 Clear Seas, an independent research 512 1029492837597469238748091283082375843658723749808120472396587436912038749312874953764923876548943786956087034767434216543693878604578683256376215694878725692387348534765794031874815268975 956876834650547693408975682351367863472153682365468792346095786874356983746T461245397593746492034869085476592347868746340238746815289740983475 092348U938758943601983240981298478237647652375 organization created to study and 237584365872374980812047239658743691203874931287495376492387654894378695608703476743421654369387860457868325637621569487872569238734853476579403187481526897580438679532767490538769850860767 7863472153682365468792346095786874356983746T461245397593746492034869085476592347868746340238746815289740983475 092348U93875894360198324098129847823764765237583475902830478918263863267587237 support safe and sustainable marine 369120387493128749537649238765489437869560870347674342165436938786045786832563762156948787256923873485347657940318748152689758043867953276749053876985086076786923653476138265490378468734906 74356983746T461245397593746492034869085476592347868746340238746815289740983475 092348U9387589436019832409812984782376476523758347590283047891826386326758723750983405890347582638457619872094 shipping. CAPP is providing arms4378695608703476743421654369387860457868325637621569487872569238734853476579403187481526897580438679532767490538769850860767869236534761382654903784687349065870569789346487329748569436740 length support to the Clear Seas initiative.

869085476592347868746340238746815289740983475 092348U9387589436019832409812984782376476523758347590283047891826386326758723750983405890347582638457619872094381032745923658346785823974902387 0457868325637621569487872569238734853476579403187481526897580438679532767490538769850860767869236534761382654903784687349065870569789346487329748569436740283436757930824795746850942387690 5289740983475 092348U9387589436019832409812984782376476523758347590283047891826386326758723750983405890347582638457619872094381032745923658346785823974902387409819092839129736172536152437654 3485347657940318748152689758043867953276749053876985086076786923653476138265490378468734906587056978934648732974856943674028343675793082479574685094238769043812094897436590548698547503487 983240981298478237647652375834759028304789182638632675872375098340589034758263845761987209438103274592365834678582397490238740981909283912973617253615243765483297509438068394875682347647162 67953276749053876985086076786923653476138265490378468734906587056978934648732974856943674028343675793082479574685094238769043812094897436590548698547503487598327647215687347657326563918247 90283047891826386326758723750983405890347582638457619872094381032745923658346785823974902387409819092839129736172536152437654832975094380683948756823476471625347512 10294928375974692387480912 6534761382654903784687349065870569789346487329748569436740283436757930824795746850942387690438120948974365905486985475034875983276472156873476573265639182476809568768346505476934089756823 405890347582638457619872094381032745923658346785823974902387409819092839129736172536152437654832975094380683948756823476471625347512 1029492837597469238748091283082375843658723749808120472396 6978934648732974856943674028343675793082479574685094238769043812094897436590548698547503487598327647215687347657326563918247680956876834650547693408975682351367863472153682365468792346095 2745923658346785823974902387409819092839129736172536152437654832975094380683948756823476471625347512 1029492837597469238748091283082375843658723749808120472396587436912038749312874953764923876 75793082479574685094238769043812094897436590548698547503487598327647215687347657326563918247680956876834650547693408975682351367863472153682365468792346095786874356983746T46124539759374649 9092839129736172536152437654832975094380683948756823476471625347512 102949283759746923874809128308237584365872374980812047239658743691203874931287495376492387654894378695608703476743421654369 094897436590548698547503487598327647215687347657326563918247680956876834650547693408975682351367863472153682365468792346095786874356983746T4612453975937464920348690854765923478687463402387 75094380683948756823476471625347512 10294928375974692387480912830823758436587237498081204723965874369120387493128749537649238765489437869560870347674342165436938786045786832563762156948787256 27647215687347657326563918247680956876834650547693408975682351367863472153682365468792346095786874356983746T461245397593746492034869085476592347868746340238746815289740983475 092348U9387589 512 1029492837597469238748091283082375843658723749808120472396587436912038749312874953764923876548943786956087034767434216543693878604578683256376215694878725692387348534765794031874815268975 ALLIANCE PIPELINE HEARING 956876834650547693408975682351367863472153682365468792346095786874356983746T461245397593746492034869085476592347868746340238746815289740983475 092348U938758943601983240981298478237647652375 237584365872374980812047239658743691203874931287495376492387654894378695608703476743421654369387860457868325637621569487872569238734853476579403187481526897580438679532767490538769850860767 7863472153682365468792346095786874356983746T461245397593746492034869085476592347868746340238746815289740983475 092348U93875894360198324098129847823764765237583475902830478918263863267587237 The National Energy Board 369120387493128749537649238765489437869560870347674342165436938786045786832563762156948787256923873485347657940318748152689758043867953276749053876985086076786923653476138265490378468734906 74356983746T461245397593746492034869085476592347868746340238746815289740983475 092348U9387589436019832409812984782376476523758347590283047891826386326758723750983405890347582638457619872094 agrees with CAPP position 4378695608703476743421654369387860457868325637621569487872569238734853476579403187481526897580438679532767490538769850860767869236534761382654903784687349065870569789346487329748569436740 869085476592347868746340238746815289740983475 092348U9387589436019832409812984782376476523758347590283047891826386326758723750983405890347582638457619872094381032745923658346785823974902387 SPEAKER SERIES that Alliance Pipeline 0457868325637621569487872569238734853476579403187481526897580438679532767490538769850860767869236534761382654903784687349065870569789346487329748569436740283436757930824795746850942387690 5289740983475 092348U9387589436019832409812984782376476523758347590283047891826386326758723750983405890347582638457619872094381032745923658346785823974902387409819092839129736172536152437654 should not be granted 3485347657940318748152689758043867953276749053876985086076786923653476138265490378468734906587056978934648732974856943674028343675793082479574685094238769043812094897436590548698547503487 Dave Mowat, chair of the 983240981298478237647652375834759028304789182638632675872375098340589034758263845761987209438103274592365834678582397490238740981909283912973617253615243765483297509438068394875682347647162 unlimited pricing Alberta government’s royalty 67953276749053876985086076786923653476138265490378468734906587056978934648732974856943674028343675793082479574685094238769043812094897436590548698547503487598327647215687347657326563918247 90283047891826386326758723750983405890347582638457619872094381032745923658346785823974902387409819092839129736172536152437654832975094380683948756823476471625347512 10294928375974692387480912 discretion for review panel, addresses 6534761382654903784687349065870569789346487329748569436740283436757930824795746850942387690438120948974365905486985475034875983276472156873476573265639182476809568768346505476934089756823 405890347582638457619872094381032745923658346785823974902387409819092839129736172536152437654832975094380683948756823476471625347512 1029492837597469238748091283082375843658723749808120472396 interruptible and member questions at a 6978934648732974856943674028343675793082479574685094238769043812094897436590548698547503487598327647215687347657326563918247680956876834650547693408975682351367863472153682365468792346095 seasonal services.

2745923658346785823974902387409819092839129736172536152437654832975094380683948756823476471625347512 1029492837597469238748091283082375843658723749808120472396587436912038749312874953764923876 CAPP-hosted Speaker Series 75793082479574685094238769043812094897436590548698547503487598327647215687347657326563918247680956876834650547693408975682351367863472153682365468792346095786874356983746T46124539759374649 9092839129736172536152437654832975094380683948756823476471625347512 102949283759746923874809128308237584365872374980812047239658743691203874931287495376492387654894378695608703476743421654369 luncheon with 500 members 094897436590548698547503487598327647215687347657326563918247680956876834650547693408975682351367863472153682365468792346095786874356983746T4612453975937464920348690854765923478687463402387 75094380683948756823476471625347512 10294928375974692387480912830823758436587237498081204723965874369120387493128749537649238765489437869560870347674342165436938786045786832563762156948787256 in attendance.

27647215687347657326563918247680956876834650547693408975682351367863472153682365468792346095786874356983746T461245397593746492034869085476592347868746340238746815289740983475 092348U9387589 512 1029492837597469238748091283082375843658723749808120472396587436912038749312874953764923876548943786956087034767434216543693878604578683256376215694878725692387348534765794031874815268975 956876834650547693408975682351367863472153682365468792346095786874356983746T461245397593746492034869085476592347868746340238746815289740983475 092348U938758943601983240981298478237647652375 237584365872374980812047239658743691203874931287495376492387654894378695608703476743421654369387860457868325637621569487872569238734853476579403187481526897580438679532767490538769850860767 7863472153682365468792346095786874356983746T461245397593746492034869085476592347868746340238746815289740983475 092348U93875894360198324098129847823764765237583475902830478918263863267587237 369120387493128749537649238765489437869560870347674342165436938786045786832563762156948787256923873485347657940318748152689758043867953276749053876985086076786923653476138265490378468734906 RAISE YOUR HAND PHASE I 74356983746T461245397593746492034869085476592347868746340238746815289740983475 092348U9387589436019832409812984782376476523758347590283047891826386326758723750983405890347582638457619872094 4378695608703476743421654369387860457868325637621569487872569238734853476579403187481526897580438679532767490538769850860767869236534761382654903784687349065870569789346487329748569436740 CAPP launches its Raise Your Hand advertising campaign, using 869085476592347868746340238746815289740983475 092348U9387589436019832409812984782376476523758347590283047891826386326758723750983405890347582638457619872094381032745923658346785823974902387 0457868325637621569487872569238734853476579403187481526897580438679532767490538769850860767869236534761382654903784687349065870569789346487329748569436740283436757930824795746850942387690 traditional and digital media to engage oil and natural gas 5289740983475 092348U9387589436019832409812984782376476523758347590283047891826386326758723750983405890347582638457619872094381032745923658346785823974902387409819092839129736172536152437654 3485347657940318748152689758043867953276749053876985086076786923653476138265490378468734906587056978934648732974856943674028343675793082479574685094238769043812094897436590548698547503487 supporters as industry champions and advocates.

983240981298478237647652375834759028304789182638632675872375098340589034758263845761987209438103274592365834678582397490238740981909283912973617253615243765483297509438068394875682347647162 67953276749053876985086076786923653476138265490378468734906587056978934648732974856943674028343675793082479574685094238769043812094897436590548698547503487598327647215687347657326563918247 90283047891826386326758723750983405890347582638457619872094381032745923658346785823974902387409819092839129736172536152437654832975094380683948756823476471625347512 10294928375974692387480912 6534761382654903784687349065870569789346487329748569436740283436757930824795746850942387690438120948974365905486985475034875983276472156873476573265639182476809568768346505476934089756823 ROYALTY REVIEW SUBMISSION 405890347582638457619872094381032745923658346785823974902387409819092839129736172536152437654832975094380683948756823476471625347512 1029492837597469238748091283082375843658723749808120472396 6978934648732974856943674028343675793082479574685094238769043812094897436590548698547503487598327647215687347657326563918247680956876834650547693408975682351367863472153682365468792346095 2745923658346785823974902387409819092839129736172536152437654832975094380683948756823476471625347512 1029492837597469238748091283082375843658723749808120472396587436912038749312874953764923876 CAPP submits 60 recommendations to the Alberta royalty 75793082479574685094238769043812094897436590548698547503487598327647215687347657326563918247680956876834650547693408975682351367863472153682365468792346095786874356983746T46124539759374649 9092839129736172536152437654832975094380683948756823476471625347512 102949283759746923874809128308237584365872374980812047239658743691203874931287495376492387654894378695608703476743421654369 review panel designed to enhance Alberta’s royalty regime.

094897436590548698547503487598327647215687347657326563918247680956876834650547693408975682351367863472153682365468792346095786874356983746T4612453975937464920348690854765923478687463402387 75094380683948756823476471625347512 10294928375974692387480912830823758436587237498081204723965874369120387493128749537649238765489437869560870347674342165436938786045786832563762156948787256 27647215687347657326563918247680956876834650547693408975682351367863472153682365468792346095786874356983746T461245397593746492034869085476592347868746340238746815289740983475 092348U9387589 512 1029492837597469238748091283082375843658723749808120472396587436912038749312874953764923876548943786956087034767434216543693878604578683256376215694878725692387348534765794031874815268975 C APP.C A /CONTE X T CONTEXT . VOLUME 4 . ISSUE 1 . FEBRUARY 2016 7 956876834650547693408975682351367863472153682365468792346095786874356983746T461245397593746492034869085476592347868746340238746815289740983475 092348U938758943601983240981298478237647652375 237584365872374980812047239658743691203874931287495376492387654894378695608703476743421654369387860457868325637621569487872569238734853476579403187481526897580438679532767490538769850860767 7863472153682365468792346095786874356983746T461245397593746492034869085476592347868746340238746815289740983475 092348U93875894360198324098129847823764765237583475902830478918263863267587237

WHAT’S UP AT CAPP?

OCT 19

2030

+ 43 %

JUNE

JULY 6

JUNE

JULY

AUGUST

SEPTEMBER

OCTOBER

Photographs: (top right) EPA/Chris Roussakis; (lower right) Courtesy ATB Financial

JULY 9

SEP 9

MAY 17 TO JULY 16

150 MILLION VIEWS

OCT 26

650547693408975682351367863472153682365468792346095786874356983746T461245397593746492034869085476592347868746340238746815289 3475 092348U9387589436019832409812984782376476523758347590283047891826386326758723750983405890347582638457619872094381032745 8346785823974902387409819092839129736172536152437654832975094380683948756823476471625347512 1029492837597469238748091283082375 87237498081204723965874369120387493128749537649238765489437869560870347674342165436938786045786832563762156948787256923873485 794031874815268975804386795327674905387698508607678692365347613826549037846873490658705697893464873297485694367402834367579 7957468509423876904381209489743659054869854750348759832764721568734765732656391824768095687683465054769340897568235136786347 82365468792346095786874356983746T461245397593746492034869085476592347868746340238746815289740983475 092348U93875894360198324 9847823764765237583475902830478918263863267587237509834058903475826384576198720943810327459236583467858239749023874098190928 736172536152437654832975094380683948756823476471625347512 102949283759746923874809128308237584365872374980812047239658743691203 2874953764923876548943786956087034767434216543693878604578683256376215694878725692387348534765794031874815268975804386795327 538769850860767869236534761382654903784687349065870569789346487329748569436740283436757930824795746850942387690438120948974 548698547503487598327647215687347657326563918247680956876834650547693408975682351367863472153682365468792346095786874356983 61245397593746492034869085476592347868746340238746815289740983475 092348U9387589436019832409812984782376476523758347590283047 63863267587237509834058903475826384576198720943810327459236583467858239749023874098190928391297361725361524376548329750943806 756823476471625347512 10294928375974692387480912830823758436587237498081204723965874369120387493128749537649238765489437869560 7674342165436938786045786832563762156948787256923873485347657940318748152689758043867953276749053876985086076786923653476138 037846873490658705697893464873297485694367402834367579308247957468509423876904381209489743659054869854750348759832764721568 Alberta government releases 57326563918247680956876834650547693408975682351367863472153682365468792346095786874356983746T4612453975937464920348690854765 868746340238746815289740983475 092348U93875894360198324098129847823764765237583475902830478918263863267587237509834058903475 Climate Leadership plan which 457619872094381032745923658346785823974902387409819092839129736172536152437654832975094380683948756823476471625347512 102949283 69238748091283082375843658723749808120472396587436912038749312874953764923876548943786956087034767434216543693878604578683256 includes economy-wide carbon 569487872569238734853476579403187481526897580438679532767490538769850860767869236534761382654903784687349065870569789346487 856943674028343675793082479574685094238769043812094897436590548698547503487598327647215687347657326563918247680956876834650 price, Oil Sands emissions limit, 3408975682351367863472153682365468792346095786874356983746T46124539759374649203486908547659234786874634023874681528974098347 348U938758943601983240981298478237647652375834759028304789182638632675872375098340589034758263845761987209438103274592365834 methane reduction strategy 23974902387409819092839129736172536152437654832975094380683948756823476471625347512 102949283759746923874809128308237584365872 08120472396587436912038749312874953764923876548943786956087034767434216543693878604578683256376215694878725692387348534765794 and accelerated phase-out 481526897580438679532767490538769850860767869236534761382654903784687349065870569789346487329748569436740283436757930824795 0942387690438120948974365905486985475034875983276472156873476573265639182476809568768346505476934089756823513678634721536823 of coal-fired electricity. In 792346095786874356983746T461245397593746492034869085476592347868746340238746815289740983475 092348U9387589436019832409812984 6476523758347590283047891826386326758723750983405890347582638457619872094381032745923658346785823974902387409819092839129736 october, CAPP had submitted 6152437654832975094380683948756823476471625347512 10294928375974692387480912830823758436587237498081204723965874369120387493128 7649238765489437869560870347674342165436938786045786832563762156948787256923873485347657940318748152689758043867953276749053 balanced, solutions-based 508607678692365347613826549037846873490658705697893464873297485694367402834367579308247957468509423876904381209489743659054 recommendations to 47503487598327647215687347657326563918247680956876834650547693408975682351367863472153682365468792346095786874356983746T4612 RAISE YOUR HAND PHASE II 092348U93875894360198324098129847823764765237583475902830478918263 593746492034869085476592347868746340238746815289740983475 the climate panel led by 7587237509834058903475826384576198720943810327459236583467858239749023874098190928391297361725361524376548329750943806839487 476471625347512 10294928375974692387480912830823758436587237498081204723965874369120387493128749537649238765489437869560870347 Fall campaign focused on Dr. Andrew Leach.

2165436938786045786832563762156948787256923873485347657940318748152689758043867953276749053876985086076786923653476138265490 873490658705697893464873297485694367402834367579308247957468509423876904381209489743659054869854750348759832764721568734765 driving sign-ups to the 63918247680956876834650547693408975682351367863472153682365468792346095786874356983746T4612453975937464920348690854765923478 340238746815289740983475 092348U93875894360198324098129847823764765237583475902830478918263863267587237509834058903475826384 Canada’s Energy Citizens 872094381032745923658346785823974902387409819092839129736172536152437654832975094380683948756823476471625347512 102949283759746 48091283082375843658723749808120472396587436912038749312874953764923876548943786956087034767434216543693878604578683256376215 (CEC) program. Key results: 872569238734853476579403187481526897580438679532767490538769850860767869236534761382654903784687349065870569789346487329748 674028343675793082479574685094238769043812094897436590548698547503487598327647215687347657326563918247680956876834650547693 5682351367863472153682365468792346095786874356983746T461245397593746492034869085476592347868746340238746815289740983475 09234 CEC sign-ups 7589436019832409812984782376476523758347590283047891826386326758723750983405890347582638457619872094381032745923658346785823 2387409819092839129736172536152437654832975094380683948756823476471625347512 10294928375974692387480912830823758436587237498081 39658743691203874931287495376492387654894378695608703476743421654369387860457868325637621569487872569238734853476579403187481 online 75804386795327674905387698508607678692365347613826549037846873490658705697893464873297485694367402834367579308247957468509 6904381209489743659054869854750348759832764721568734765732656391824768095687683465054769340897568235136786347215368236546879 LINE 9B REVERSAL impressions 95786874356983746T461245397593746492034869085476592347868746340238746815289740983475 092348U938758943601983240981298478237647 58347590283047891826386326758723750983405890347582638457619872094381032745923658346785823974902387409819092839129736172536152 4832975094380683948756823476471625347512 1029492837597469238748091283082375843658723749808120472396587436912038749312874953764 Enbridge Line 9B begins delivering oil sessions on 6548943786956087034767434216543693878604578683256376215694878725692387348534765794031874815268975804386795327674905387698508 869236534761382654903784687349065870569789346487329748569436740283436757930824795746850942387690438120948974365905486985475 to refineries in Montreal. CAPP provided energycitizens.ca 598327647215687347657326563918247680956876834650547693408975682351367863472153682365468792346095786874356983746T461245397593 evidence on the need for market access 2034869085476592347868746340238746815289740983475 092348U9387589436019832409812984782376476523758347590283047891826386326758 0983405890347582638457619872094381032745923658346785823974902387409819092839129736172536152437654832975094380683948756823476 during National Energy Board Hearings. social media reach 5347512 10294928375974692387480912830823758436587237498081204723965874369120387493128749537649238765489437869560870347674342165 878604578683256376215694878725692387348534765794031874815268975804386795327674905387698508607678692365347613826549037846873 870569789346487329748569436740283436757930824795746850942387690438120948974365905486985475034875983276472156873476573265639 680956876834650547693408975682351367863472153682365468792346095786874356983746T461245397593746492034869085476592347868746340 6815289740983475 092348U9387589436019832409812984782376476523758347590283047891826386326758723750983405890347582638457619872 1032745923658346785823974902387409819092839129736172536152437654832975094380683948756823476471625347512 10294928375974692387480 08237584365872374980812047239658743691203874931287495376492387654894378695608703476743421654369387860457868325637621569487872 873485347657940318748152689758043867953276749053876985086076786923653476138265490378468734906587056978934648732974856943674 367579308247957468509423876904381209489743659054869854750348759832764721568734765732656391824768095687683465054769340897568 67863472153682365468792346095786874356983746T461245397593746492034869085476592347868746340238746815289740983475 092348U93875 0198324098129847823764765237583475902830478918263863267587237509834058903475826384576198720943810327459236583467858239749023 819092839129736172536152437654832975094380683948756823476471625347512 102949283759746923874809128308237584365872374980812047239 36912038749312874953764923876548943786956087034767434216543693878604578683256376215694878725692387348534765794031874815268975 67953276749053876985086076786923653476138265490378468734906587056978934648732974856943674028343675793082479574685094238769 2094897436590548698547503487598327647215687347657326563918247680956876834650547693408975682351367863472153682365468792346095 4356983746T461245397593746492034869085476592347868746340238746815289740983475 092348U9387589436019832409812984782376476523758 02830478918263863267587237509834058903475826384576198720943810327459236583467858239749023874098190928391297361725361524376548 TRANS MOUNTAIN 094380683948756823476471625347512 10294928375974692387480912830823758436587237498081204723965874369120387493128749537649238765 7869560870347674342165436938786045786832563762156948787256923873485347657940318748152689758043867953276749053876985086076786 TOLL SETTLEMENT 347613826549037846873490658705697893464873297485694367402834367579308247957468509423876904381209489743659054869854750348759 47215687347657326563918247680956876834650547693408975682351367863472153682365468792346095786874356983746T4612453975937464920 OBAMA REJECTS 085476592347868746340238746815289740983475 092348U93875894360198324098129847823764765237583475902830478918263863267587237509 Trans Mountain toll settlement provides KEYSTONE XL 89034758263845761987209438103274592365834678582397490238740981909283912973617253615243765483297509438068394875682347647162534 certainty in pre-expansion tolling and 29492837597469238748091283082375843658723749808120472396587436912038749312874953764923876548943786956087034767434216543693878 8683256376215694878725692387348534765794031874815268975804386795327674905387698508607678692365347613826549037846873490658705 Keystone XL pipeline saves several hundred thousand dollars 346487329748569436740283436757930824795746850942387690438120948974365905486985475034875983276472156873476573265639182476809 834650547693408975682351367863472153682365468792346095786874356983746T461245397593746492034869085476592347868746340238746815 permit application in potential hearing costs.

0983475 092348U9387589436019832409812984782376476523758347590283047891826386326758723750983405890347582638457619872094381032 3658346785823974902387409819092839129736172536152437654832975094380683948756823476471625347512 1029492837597469238748091283082 rejected by U.S. 36587237498081204723965874369120387493128749537649238765489437869560870347674342165436938786045786832563762156948787256923873 765794031874815268975804386795327674905387698508607678692365347613826549037846873490658705697893464873297485694367402834367 President Barack 8247957468509423876904381209489743659054869854750348759832764721568734765732656391824768095687683465054769340897568235136786 Obama. CAPP had 53682365468792346095786874356983746T461245397593746492034869085476592347868746340238746815289740983475 092348U93875894360198 NEW GOVERNMENT IN 8129847823764765237583475902830478918263863267587237509834058903475826384576198720943810327459236583467858239749023874098190 argued that the 129736172536152437654832975094380683948756823476471625347512 102949283759746923874809128308237584365872374980812047239658743691 NEWFOUNDLAND AND LABRADOR 4931287495376492387654894378695608703476743421654369387860457868325637621569487872569238734853476579403187481526897580438679 pipeline deserved 749053876985086076786923653476138265490378468734906587056978934648732974856943674028343675793082479574685094238769043812094 Liberal party defeats Conservative 6590548698547503487598327647215687347657326563918247680956876834650547693408975682351367863472153682365468792346095786874356 to be approved on 6T461245397593746492034869085476592347868746340238746815289740983475 092348U9387589436019832409812984782376476523758347590283 government in provincial election for 18263863267587237509834058903475826384576198720943810327459236583467858239749023874098190928391297361725361524376548329750943 its environmental, 948756823476471625347512 10294928375974692387480912830823758436587237498081204723965874369120387493128749537649238765489437869 Newfoundland and Labrador. CAPP is 0347674342165436938786045786832563762156948787256923873485347657940318748152689758043867953276749053876985086076786923653476 economic and energy 549037846873490658705697893464873297485694367402834367579308247957468509423876904381209489743659054869854750348759832764721 engaged with the new government on 47657326563918247680956876834650547693408975682351367863472153682365468792346095786874356983746T4612453975937464920348690854 security merits.

347868746340238746815289740983475 092348U93875894360198324098129847823764765237583475902830478918263863267587237509834058903 key policy issues including royalties and 102949 638457619872094381032745923658346785823974902387409819092839129736172536152437654832975094380683948756823476471625347512 97469238748091283082375843658723749808120472396587436912038749312874953764923876548943786956087034767434216543693878604578683 streamlining of regulatory processes.

621569487872569238734853476579403187481526897580438679532767490538769850860767869236534761382654903784687349065870569789346 974856943674028343675793082479574685094238769043812094897436590548698547503487598327647215687347657326563918247680956876834 7693408975682351367863472153682365468792346095786874356983746T46124539759374649203486908547659234786874634023874681528974098 092348U938758943601983240981298478237647652375834759028304789182638632675872375098340589034758263845761987209438103274592365 85823974902387409819092839129736172536152437654832975094380683948756823476471625347512 102949283759746923874809128308237584365 B.C. CLIMATE LEADERSHIP RECOMMENDATIONS 49808120472396587436912038749312874953764923876548943786956087034767434216543693878604578683256376215694878725692387348534765 187481526897580438679532767490538769850860767869236534761382654903784687349065870569789346487329748569436740283436757930824 The B.C. government releases the Climate Leadership Team Recommendations Report.

6850942387690438120948974365905486985475034875983276472156873476573265639182476809568768346505476934089756823513678634721536 468792346095786874356983746T461245397593746492034869085476592347868746340238746815289740983475 092348U9387589436019832409812 The report favourably reflects CAPP’s climate submission recommendations on methane 2376476523758347590283047891826386326758723750983405890347582638457619872094381032745923658346785823974902387409819092839129 2536152437654832975094380683948756823476471625347512 10294928375974692387480912830823758436587237498081204723965874369120387493 management, upstream electrification and protection of trade-exposed, emissions5376492387654894378695608703476743421654369387860457868325637621569487872569238734853476579403187481526897580438679532767490 985086076786923653476138265490378468734906587056978934648732974856943674028343675793082479574685094238769043812094897436590 intensive sectors.

8547503487598327647215687347657326563918247680956876834650547693408975682351367863472153682365468792346095786874356983746T4 397593746492034869085476592347868746340238746815289740983475 092348U938758943601983240981298478237647652375834759028304789182 2675872375098340589034758263845761987209438103274592365834678582397490238740981909283912973617253615243765483297509438068394 23476471625347512 102949283759746923874809128308237584365872374980812047239658743691203874931287495376492387654894378695608703 8 CONTEXT . VOLUME 4 . ISSUE 1 . FEBRUARY 2016 3421654369387860457868325637621569487872569238734853476579403187481526897580438679532767490538769850860767869236534761382654 468734906587056978934648732974856943674028343675793082479574685094238769043812094897436590548698547503487598327647215687347 6563918247680956876834650547693408975682351367863472153682365468792346095786874356983746T46124539759374649203486908547659234

WHAT’S UP AT CAPP?

NOV 22

CLIMATE LEADERSHIP PLAN

NOV 2 TO DEC 31

6,596 211,713,264

DEC 2

104,369

267,492

DECEMBER

DEC 7

NOV 6

NOV 30

NOV 27

CANADA’S ENERGY CITIZENS CAMPAIGN

16,232 emailable Canada’s Energy Citizens, a 126% increase from January 2015

40,000-plus social media likes 105 Canada’s Energy Citizens events MEDIA RELATIONS

651 interviews 20 news releases 16 opinion editorials 10 editorial board meetings 1 media tour MARKETING

“Count Us In” Campaign for COP21: 5 digital ads, 1 web page, 2,585 pageviews

Raise Your Hand

Campaign Phase I and II: 23 TV and print ads, 100+ digital ads, 17 weeks in market

22 infographics 17 fact sheets OUTREACH

82 events with stakeholders reaching 1,630 individuals 80 events/conferences sponsored and attended

3 updated factbooks Over 1.8 million pageviews over 7 web properties

5 new websites launched RESEARCH

6 Alberta issues surveys 3 national polling surveys MEMBERS

4 issues of Context Magazine 50 issues of Context Weekly e-newsletter 2 Tim Talk videos 3 Speaker Series events 1 CAPP Scotiabank Investment Symposium C APP.C A /CONTE X T

Photographs: (lower left) AP PHOTO/Pablo Martinez Monsivais; (top) Courtesy andrewleach.ca; (top right) Rich Lam.

NOVEMBER

COMMUNICATIONS AND OUTREACH FOR 2015: BY THE NUMBERS

FEATURE STORY

Q&A:

“Now is the time for industry and government to work together on solutions to make Alberta a worldclass province to do business.”

ALBERTA’S ROYALTY REVIEW REPORT

Context chats with CAPP president and CEO Tim McMillan about the Alberta government’s new royalty regime and what it means for upstream producers in the province.

Q: What’s your perspective on the Alberta Royalty Review Report that came out on January 29, 2016?

TM: We feel that it is a balanced report guided by a set of lasting principles. Most importantly, the report helps restore certainty and predictability needed to attract investment to create more jobs and value to Albertans. It’s a foundation that allows us to move forward.

We also appreciate that the review was conducted in a timely manner that was open to input from all Albertans, including our industry. I think it followed a fair, credible process which confirms that Albertans do already get their “fair share” of benefit from the province’s oil and natural gas resources.

The 200-page report covers a lot of ground, and there are important details that remain to be defined as the government shifts toward policy implementation. We are reviewing the report thoroughly to assess its full impact on our industry and provide input where needed.

One thing we’ll be looking closely at is the mandate to increase public disclosure of oil sands project costs. It will be important for this to be implemented in a manner that avoids unintended consequences, such as putting Alberta projects at a competitive disadvantage relative to other jurisdictions. We are also looking forward to getting more details on proposed value-added programs for the natural gas and oil sands sectors. I think we can provide input to ensure these programs are successful at creating jobs and enhancing industry competitiveness.

Q: Did the government listen to industry’s concerns? Are these concerns reflected in the new regime?

TM: As an industry, we made a strong case for a royalty framework that is stable, predictable and competitive. I think that decisions like maintaining the existing oil sands regime and the fact that the new rules will only apply to projects starting in 2017, are positive signals that the government understands and is serious about encouraging investment in Alberta at this difficult time.

That said, I think this report sets the stage for more work between industry and government to ensure Alberta’s oil and gas sector is competitive in North America. Royalties are just one part of the competitiveness equation. Given today’s economic situation, now is the time for industry and government to work together on solutions to make Alberta a world-class province to do business.

C APP.C A /CONTE X T

Q: W hat are the next steps?

TM: Over the next 60 days, till March 31st, there will be a calibration period where the government will finalize details of the framework.

We will be engaging government to understand further the implementation phase and provide feedback as needed.

Also, we’ll be approaching the government on developing a broad competitiveness strategy. This strategy should examine the province’s cost structure in light of current and future policies, and look at what can be done by government and industry on key matters such as market access, regulatory timeliness, First Nations engagement, promoting technological innovation and so on.

Q: Anything members can or should be doing?

TM: Member volunteers on our executive policy groups and working committees continue to provide essential expertise in analyzing and understanding the new royalty regime and providing solutionsoriented recommendations as needed, with a focus on enhancing industry competitiveness.

As well, given our broader focus on working with the government on competitiveness issues, members can definitely help. Through their communications with friends, colleagues and government, as well as by joining our Canada’s Energy Citizens campaign [www.energycitizens.ca], they can add their voices to ensure the government understands how important this industry is to Albertans, and that there’s still work to be done to ensure this industry continues to provide jobs and economic benefits for all Albertans over the long-term.

Alberta’s New Royalty Regime: Key Facts

• No changes to the oil sands royalty regime; • New royalty rates for non-oil sands wells will only apply on new wells starting in 2017 and beyond. Existing wells will have current royalty rates grandfathered for 10 years; • A simpler and more standardized royalty framework applies to both oil and natural gas: This framework includes a flat royalty rate of five

per cent until a project’s costs are recovered; Royalty calculations based on revenue minus costs will

replace calculations based on commodity price.

Learn more at www.alberta.ca/royalties-overview.cfm CONTEXT . VOLUME 4 . ISSUE 1 . FEBRUARY 2016

9

FEATURE STORY

THE YEAR AHEAD

Market Access WHERE WE'RE AT Oil: More capacity is required to accommodate future production growth and increasing global energy demand.

2016 PRIORITIES C A PP ’ S 2016 STR ATEGIC PRIORITIES, A S APPROVED BY THE C A PP BOA RD OF GOVER NOR S.

Natural Gas: The shrinking of traditional markets in the U.S. creates a need for new markets such as overseas LNG. KEY ACTIONS/TARGETS FOR 2016 · Gain regulatory support for new infrastructure and capacity. · Gain public and government support through advocacy emphasizing the safety and economic benefits of transportation infrastructure.

Royalty Framework WHERE WE'RE AT The Alberta government’s new royalty regime leaves oil sands royalties unchanged while introducing a simpler and more standardized royalty framework to non-oil sands wells to take effect in 2017.

KEY ACTIONS/TARGETS FOR 2016 · Advocate for balanced policy decisions that maintain competitiveness and minimize adverse impact to industry. · Provide industry expertise to ensure design details are effective and efficient.

Climate Change Policy

Aboriginal Engagement

WHERE WE'RE AT

WHERE WE'RE AT

The Alberta government climate leadership plan includes a broad carbon price and an overall emissions cap for oil sands. The federal government plans to introduce a pan-Canadian framework for combating climate change.

CAPP’s Aboriginal Engagement Initiative is under way with initially positive responses.

KEY ACTIONS/ TARGETS FOR 2016 · Advocate for balanced policy decisions that maintain competitiveness and minimize adverse impact to industry. · Provide industry expertise to ensure design details are effective and efficient.

Government Change Management WHERE WE'RE AT There is a new federal government, new governments in Alberta and Newfoundland and upcoming elections in Manitoba (April 19, 2016) and Saskatchewan (April 4, 2016).

The federal government has identified several key policy/legislation targets which have direct impacts on industry (i.e. NEB review, fossil fuel “subsidies”, B.C. crude tanker moratorium, Aboriginal engagement, SARA, etc).

KEY ACTIONS/TARGETS FOR 2016 · Continue education, dialogue and relationship building across all levels of government. · Advocate on behalf of industry priorities: market access and competitiveness.

KEY ACTIONS/ TARGETS FOR 2016 · Continue CAPP’s Engagement Initiative and seek to build positive partnerships among industry and Aboriginal groups. · Continue advocacy with provincial governments (and initiate at federal level) on UNDRIP* implementation: building upon strengthened Crown engagement and seeking an implementation approach consistent with Canadian constitution and law.

*UNDRIP: U.N. Declaration on the Rights of Indigenous Peoples 10

CONTEXT . VOLUME 4 . ISSUE 1 . FEBRUARY 2016

C APP.C A /CONTE X T

FEATURE STORY

Municipal Taxes WHERE WE'RE AT

Species at Risk Act WHERE WE'RE AT The federal government requires the provinces have range plans to protect caribou habitat in place by 2017. There is a risk of a moratorium on resource development and increased access costs within caribou ranges in B.C. and Alberta.

KEY ACTIONS/TARGETS FOR 2016 · Continue advocacy for a strong solutions-based approach, highlighting the net positive impact of oil and gas development.

Oil Sands Policy Issues WHERE WE'RE AT Upstream environmental performance for the oil sands continues to be a focus for the public, industry and governments.

The Alberta municipal government act (MGA) review is in the legislative development phase.

Saskatchewan is undertaking a municipal tax review.

Municipal taxes are a significant cost burden for producers.

KEY ACTIONS/ TARGETS FOR 2016 · Continue to advocate for a review of legislation that focuses on tax reductions and assessment practice improvements.

KEY ACTIONS/TARGETS FOR 2016

WHERE WE'RE AT

· Seek areas of alignment within CAPP and beyond (e.g.

COSIA) to demonstrate environmental performance and leadership.

Recent seismic events in Alberta and B.C. have raised concern regarding hydraulic fracturing practices and regulations.

· Provide technical expertise to the Government of Alberta on select topics to inform responsible policy/regulation development.

KEY ACTIONS/TARGETS FOR 2016

· Ensure government understands the cumulative cost burden caused by multiple policies and regulations impacting the industry.

Hydraulic Fracturing

· Continue to develop awareness of the issue and the strong regulatory practices in place to mitigate risks. · Develop stronger advocacy messages with science-based evidence of past performance and innovation.

Did You Know?

Municipal taxes represent $1.1 billion in annual costs to CAPP members. It’s estimated that this tax burden has been increasing at a rate of $60 million annually.

C APP.C A /CONTE X T

The CAPP Value Proposition CAPP members get value from a strong, unified industry voice that provides advocacy focused on:

REGULATORY AND LEGISLATIVE CHANGE Responding to changes or proposed changes made by government.

Working with members, CAPP assembles technical and legal expertise to develop and advocate positions and solutions that lead to balanced policies and credible, efficient regulatory systems.

PIPELINE HEARINGS Intervening to ensure fairness of structure and reasonable costs that are competitive for shippers while enabling pipelines to operate safely and reliably.

CURRENT ISSUES AND COMMUNICATIONS MANAGEMENT

Liability WHERE WE'RE AT Liability management (related to, for example, orphan wells) is an area of growing concern.

KEY ACTIONS/ TARGETS FOR 2016 · Continue to develop policy/regulatory solutions and alternatives for government consideration.

Ensuring that upstream oil and gas producers have a voice and clearly articulated positions on public issues that arise.

HEALTH AND SAFETY LEADERSHIP Fostering best practices and world-leading health and safety standards through active engagement with safety associations and occupational health and safety regulatory bodies.

CONTEXT . VOLUME 4 . ISSUE 1 . FEBRUARY 2016

11

RAISE YOUR HAND FOR CANADA With the third largest oil reserves on the planet Canada has the energy the world and Canadians need. More than half of the oil in Quebec and Atlantic Canada is imported from countries such as the U.S., Saudi Arabia, Iraq, Norway and Algeria. Now is the time to build the infrastructure to get our energy to more Canadians and keep the economic benefits at home.

Think oil and natural gas developed the Canadian way is good for Canada? Then raise your hand and show your support by joining Canada’s Energy Citizens at Not actors. Real Canadians.

energycitizens.ca