Glossary of Terms

DEFINITIONS BASED ON THE 2006 BENCHMARKING GUIDE

Abandonment - involves capping of well and removal of underground infrastructure such that well is brought to a condition where it can be left indefinitely without further attention and will not impact groundwater resources, the environment or petroleum reservoirs.

Annual Certificate or Release Received (number/year) - the total number of sites that have received either a type of closure certificate or an equivalent recognition of release from the certifying authority in the jurisdiction at year end.

Benzene Emitted per Glycol Dehydrator (tonnes/# of dehydrators) - the annual gross weight of measured or estimated benzene emissions from glycol dehydrators [i.e., Triethylene Glycol (TEG), Diethylene Glycol (DEG), or Ethylene Glycol (EG)] divided by the number of TEG, DEG, and EG dehydrators that are operated as glycol dehydrators.

Benzene Emissions / Gas Production (tonnes/106m3) - the annual gross weight of measured or estimated benzene emissions from glycol dehydrators [i.e., Triethylene Glycol (TEG), Diethylene Glycol (DEG), or Ethylene Glycol (EG)] divided by the total volume of gas produced.

Carbon Dioxide (CO2) Equivalent - a unit of measure that accounts for a greenhouse gas "heating potential," or contribution to the Earth's greenhouse effect in terms of the amount of CO2 required to achieve the same heating potential.

Conventional Production - for Stewardship reporting includes production associated with the following regions/activities- onshore and offshore oil and gas production, but excludes production associated with in situ bitumen and oil sands mining and upgrading.

Contractor - any person employed by a contractor or sub-contractor engaged in providing goods or services directly to the reporting Company, and working in company premises, at corporate head office, field offices or at off-site locations where the company has primary control of the work site.

Cumulative Active Operated Wells - total number of operated wells including production, service, or observation wells that have reported production or injection at year end.

Cumulative Inactive Operated Wells - total number of wells where crude oil or natural gas production, water or gas injection have not occurred at any point during the reporting year.

Cumulative Abandoned Operated Wells - total number of formerly producing, service, observation, or exploration wells where surface and down hole abandonment has been completed (as prescribed by the relevant regulatory authority), but no certificate or release has been received from relevant regulatory authority.

Cumulative Abandoned Wells in 'Active' Reclamation/Remediation Phase - total number of formerly producing, service, observation, or exploration wells where abandonment is complete and 'active' reclamation has started. 'Active' reclamation includes physical work at the abandoned site, specifically, decommissioning, decontamination/remediation, recontouring, stabilization, decompaction, soil replacement and revegetation.

Cumulative Abandoned Wells in Monitoring/Assessment or Application Phase - total number of abandoned wells, where 'active' reclamation and remediation is complete - (i.e., next phase involves monitoring and assessment, and administration-related tasks needed to obtain a reclamation certificate).

Employee - any individual engaged in company activities and paid directly by the reporting Company, including new hires on probation, and some unpaid individuals (e.g., government sponsored interns or co-op students under direct company supervision) working in corporate head office, field offices, and at exploration and production field operation.

Employee Profile - the number of employees working in the company segregated by location of their principal place of work or "operational region." Operational regions include B.C., Alberta, Saskatchewan, Northern Canada and Atlantic Canada. Alberta is further subdivided into Calgary, Oil Sands and other regions.

Exposure Hours - includes the actual or estimated hours worked by persons employed by the reporting Company or engaged through a contract, subcontract or purchase order in company work-related activities.

Flaring - the controlled burning of natural gas at an oil or natural gas well, gathering station or facility.

GHG Emissions - Direct - greenhouse gas emissions arising from fuel consumption and operational activities occurring on-site for the purposes of oil and natural gas exploration and production. Direct GHG emissions include: fuels burned to generate on-site heat and electricity, as well as emissions associated with transportation activities within the operating boundaries (for oil sands mining activity).

GHG Emissions - Indirect - greenhouse gas emissions arising from purchased electricity or heat from utilities, third-party private producers and other activities occurring off-site for the purposes of oil and natural gas exploration and production.

GHGs Emitted / Conventional Oil and Gas Production (tonnes/m3OE) - the total (gross) weight of direct and indirect GHGs expressed as tonnes of CO2 equivalent emitted from all oil and gas production activities or facilities other than oil sands operations, per cubic metre of oil equivalent production.

GHGs Emitted / In situ Production (tonnes/m3OE) - the total (gross) weight of direct and indirect GHGs expressed as tonnes of CO2 equivalent emitted from in situ production (only) activities, per cubic metre of oil equivalent production.

GHGs Emitted / Bitumen Mined and Upgraded Production (tonnes/m3OE) - the total (gross) weight of direct and indirect GHGs expressed as tonnes of CO2 equivalent emitted from mined and upgraded oil sands activities (only), per cubic metre of oil equivalent production.

Leak - an opening, crack or hole in a pipeline causing some product to be released, but not immediately impairing the operation of the pipeline Lost Time Injury (LTI) - a job-related fatality or injury that renders a worker unable to return to work on the next scheduled workday.

Lost Time Injury Frequency (LTIF) - the number of lost time injuries (fatalities + permanent total disabilities + lost workday cases) per 200,000 hours worked.

Nitrogen Oxides - nitrogen oxides (NOx) represent the sum of nitric oxide (NO) and nitrogen dioxide (NO2) expressed as NO2 equivalent.

NOx emitted / Oil Sands Production (tonnes/103m3OE) - the total (gross) weight of NOx (expressed as NO2) emitted by oil sands facilities above NPRI reporting threshold divided by the total volume of oil equivalent production associated with oil sands production.

Non-Saline Water - CAPP Stewardship employs the Alberta Environment definition of non-saline, which is any water that contains less than 4,000 parts per million (ppm) of total dissolved solids. Non-saline water can be used for agricultural purposes, such as irrigation or livestock watering, or where appropriate, human consumption.

Non-Saline Surface Water/Groundwater Diverted For Use Under License (103m3 /yr) - the annual licensed and metered volume of non-saline water diverted from surface water sources or subsurface formations for use in facilities (domestic, utility, and processing) or oil sands production and processing.

Non-Saline Surface Water/Groundwater Injected For Production (103m3 /yr) - the annual volume of non-saline surface water or groundwater injected into producing formations to facilitate production (i.e., enhanced oil recovery or steam-injection).

Normalization Factors - to facilitate comparisons between years, absolute or raw benchmarking data is normalized or represented as a ratio between the absolute value and an appropriate normalization factor. The normalization factors used included production, exposure hours and operated pipeline length. For all indicators, ONLY companies who reported both the numerator and denominator of the given normalized indicator were included in the industry benchmark.

Non-Saline Surface Water/Groundwater Diverted For Use Under License (m 3/yr) - the annual licensed and metered volume of non-saline water diverted from surface water sources or subsurface formations for use in facilities (domestic, utility, and processing) or oil sands production and processing.

Non-Saline Surface Water/Groundwater Injected For Production (m 3/yr) - the annual volume of non-saline surface water or groundwater injected into producing formations to facilitate production (i.e., enhanced oil recovery or steam-injection).

Normalization Factors - to facilitate comparisons between years, absolute or raw benchmarking data is normalized or represented as a ratio between the absolute value and an appropriate normalization factor. The normalization factors used included production, exposure hours and operated pipeline length. For all indicators, ONLY companies who reported both the numerator and denominator of the given normalized indicator were included in the industry benchmark.

Oil Equivalents - oil equivalents is the most common way of reporting different hydrocarbon production (both oil and natural gas) in common units. This report uses energy or heating value conversion factor as found in the CAPP Guide for Calculating Greenhouse Gas Emissions, 2003.

Oil Sands Production - for Stewardship reporting includes production associated with in situ bitumen and oil sands mining and upgrading.

Pipeline - Upstream and midstream pipelines used to transport raw or treated crude oil, natural gas and natural gas liquids, fresh or produced water from well sites to processing facilities, to injection facilities or to receipt points on common carrier transmission pipelines.

Pipeline Releases per 1000 km of Pipeline - the total number of pipeline leaks and ruptures per 1000 km of pipeline.

Pipeline Volume Released per 1000 km of Pipeline - the total volume of liquid product released due to pipeline leaks and ruptures per 1000 km of pipeline.

Produced Water - water brought to the surface during the normal course of natural gas, crude oil, or crude bitumen production. Produced water also includes water produced from fields where water or steam is injected for enhanced recovery.

Recordable Injury - a lost time injury, injury that restricts a worker's ability to perform all normally assigned work functions during any scheduled work shift, injury that results in a worker being assigned to another job on a temporary or permanent basis after the day of the injury, or any incident requiring treatment by a physician or other medical professional. First aid incidents are not included.

Reportable Non-Pipeline Spill - any spill of liquids (including crude oil, produced water, emulsion, refined product or chemical) that occurs at, but is not limited to, any well site, battery, compressor station, processing plant, oil sands mine or plant, offshore drilling or production installation, supply boat, seismic vessel, diving support vessel, or offshore construction vessel and trucking incident on a company-owned road or property that, under regulation, must be reported to the responsible regulatory agency in the jurisdiction where the spill occurred.

Reportable Non-Pipeline: Volume Spilled / Total Production (incl. produced water) (m3/106 m3OE) - the total volume of reportable spills divided by the total production and produced water.

Reportable Non-Pipeline: Average Volume Spilled / Spill (m3/spill) - the total volume of reportable spills divided by the total number of spills.

Rupture - the instantaneous tearing or fracturing of pipeline material, immediately impairing the operation of the pipeline.

Solution Gas - natural gas that is in solution with crude oil in the reservoir at original reservoir conditions and that is normally produced with the crude oil or bitumen production.

Solution Gas Flared and Vented - natural gas flared, incinerated or vented to atmosphere at batteries that are designated as crude oil or crude bitumen batteries and offshore oil drilling and production platforms. Solution gas flared does not include natural gas marketed or used as fuel.

Solution Gas Flared or Vented / Conventional Oil Production (103 m3 gas/m3OE) - the volume of solution gas flared or vented per cubic metre of oil equivalent production associated with conventional oil produced.

Sulphur Dioxide (SO2) - gross weight of sulphur dioxide emitted from combustion equipment including flares, incinerators, heaters, boilers, engines, turbines, etc. at well sites, batteries, gas gathering systems, gas plants, oil sands plants, standalone crude bitumen or heavy crude oil upgraders, and offshore installations.

Sulphur Recovery Rate (%) - the total weight of sulphur recovered or H2S injected (in sulphur equivalents) into underground formations divided by the total weight of sulphur produced (sulphur recovered, H2S injected and SO2 emitted in sulphur equivalents).

SO2 Emitted / Sour Gas Production (tonnes/106m3) - the total weight of SO2 emitted divided by the total volume of sour gas produced.

SO2 Emitted / Oil Sands Production (tonnes/103m3OE) - the total weight of SO2 emitted divided by the total volume of oil equivalent production associated with oil sands production.

Total Gas Flared or Vented - natural gas flared, incinerated or vented to atmosphere at gas, crude oil, or crude bitumen wells and batteries, cleaning plants, gas gathering systems, gas plants, oil sands plants, standalone crude bitumen or heavy crude oil upgraders, and offshore production platforms. Total gas flared or vented to atmosphere does not include natural gas marketed or used as fuel.

Total Gas Flared or Vented / Conventional Oil & Gas Production (103 m3 gas /m3OE) - the volume of total gas flared or vented per cubic metre of oil equivalent production associated with conventional oil and gas produced.

Total Gas Flared / Oil Sands Production (103 m3 gas/m3OE) - the volume of total gas flared per cubic metre of oil equivalent production associated with oil sands produced.

Total Non-Saline Water Diverted For Use Under License/Total Production (103 m3 gas /m3OE) - the annual licensed and metered total volume of non-saline water diverted for use divided by the volume of oil equivalent production associated with total conventional oil and gas and oil sands produced.

Total Non-Saline Water Injected For Production/ Oil and in situ production (103 m3 gas /m3OE) - the annual volume of total non-saline water injected into producing formations to facilitate production divided by the volume oil equivalent production associated with total conventional oil and in situ bitumen produced.

Total Recordable Injury Frequency (TRIF) - the number of recordable injuries (fatalities + permanent total disabilities + lost workday cases + restricted workday cases + medical treatment cases) per 200,000 hours worked.

Validation - general assessment of the plausibility or reasonability of a datum or qualitative assertion.

Venting - the controlled release of unburned gas to the atmosphere at an oil or natural gas well, gathering station or facility.

Verification - rigorous assessment of the accuracy and completeness of a datum or qualitative assertion.