1. The Canadian Oil Sands Suncor’s Experience

2. The Canadian Oil Sands – Suncor’s Experience 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. The Canadian Oil Sands – Suncor’s Experience Suncor Operating Areas 4

5. The Canadian Oil Sands – Suncor’s Experience 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. The Canadian Oil Sands – Suncor’s Experience Oil Sands - High Quality Leases 6

7. The Canadian Oil Sands – Suncor’s Experience Oil Sands - Mining

8. The Canadian Oil Sands – Suncor’s Experience Steam flows to interface and condenses Steam Chamber Bitumen & Water SAGD In-situ process Heated bitumen flows to well

9. The Canadian Oil Sands – Suncor’s Experience 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. The Canadian Oil Sands – Suncor’s Experience 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. The Canadian Oil Sands – Suncor’s Experience Current Net Licensed Water Allocation in the Athabasca Basin User% of mean annual flow Existing non-oil sands0.7% Existing & Approved Oil Sands1.6% Planned Oil Sands1.3% TOTAL3.6%

12. The Canadian Oil Sands – Suncor’s Experience 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. The Canadian Oil Sands – Suncor’s Experience Energy Efficiency  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 Inputs Bitumen Natural gas Electricity Outputs Crude Products Electricity By-products (Coke, Sulphur) ~ 80% conversion

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

15. The Canadian Oil Sands – Suncor’s Experience Sustainable Development - concept

16. The Canadian Oil Sands – Suncor’s Experience 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. The Canadian Oil Sands – Suncor’s Experience 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. The Canadian Oil Sands – Suncor’s Experience Putting Suncor’s vision to work Strategic framework Sustainable Energy Company Environmental Quality Environmental Quality Economic Prosperity Economic Prosperity Social Well-Being Social Well-Being Operational Excellence Operational Excellence Products & Services for the Future Products & Services for the Future Issues Management Issues Management Improved Decision Making Improved Decision Making Stakeholder Relations Stakeholder Relations Organizational Capability & Commitment Organizational Capability & Commitment Stakeholder Expectations Customers Shareholders Employees Customers Shareholders Employees Communities Governments General public Communities Governments General public

19. Water Governance

20. The Canadian Oil Sands – Suncor’s Experience 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. The Canadian Oil Sands – Suncor’s Experience 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. The Canadian Oil Sands – Suncor’s Experience 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. The Canadian Oil Sands – Suncor’s Experience 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. The Canadian Oil Sands – Suncor’s Experience 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. The Canadian Oil Sands – Suncor’s Experience 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