Gas Bar Decommissioning Project

OUTLINE o Background o Project Status o Cost to CANEX o Active Sites o Conclusion

BACKGROUND In 1994 Shell advised CANEX that because of a new corporate policy, they would not be able to renew their supplier agreement with CANEX. No other gasoline supplier was willing to purchase Shell’s equipment and assume the attendant environmental risk. A decision was made to have Shell remove their equipment.

BACKGROUND Negotiations with Shell resulted in sharing remedial costs 50/50 between CANEX and Shell. The CANEX portion was divided between CANEX and Public Funds using the cost sharing formula established in CFP 110.

PROJECT STATUS  In total, 46 former CANEX Gas Bar sites were included in the project.  Clean-up started in spring  To date:  25 sites have been released  9 sites are awaiting pending releases  4 sites required no remedial action  8 sites are still at different stages of testing and/or remediation

REMEDIAL COSTS CANEX’ SHARE  Between 1995 and Feb 2003, CANEX spent $2.8M for soil testing, remediation and monitoring.  A reserve of $506K was set up at the end of FY 02/03 for remaining work.  While some sites will continue to be monitored until they meet guidelines, most of the work will be completed by the end of the current fiscal year.

TOTAL PROJECT COST  To date, the total cost of the project has been divided between CANEX, Shell and DND as follows:  CANEX $2.8M  Shell 3.5M  DND 1.3M  Total $7.6M

ACTIVE SITES  Of the 8 active sites, Shearwater is the most significant one with clean-up costs estimated at $350K of which CANEX would pay $250K.  North Bay will also require soil and groundwater remediation. Estimated costs $55K with a CANEX share of $13,750.  Work at other sites mostly involves monitoring or decommissioning of wells.

CONCLUSION The Gas Bar Decommissioning project is nearly completed. Once completed, total project cost should be around $8.4M with a CANEX share of $3.1M. All remedial costs have been either expensed or accrued between FY 95/96 and FY 02/03. No further liability is known at this point.