Notice of Commencement of an Environmental Assessment

Pierre River Mine Project
Fort McKay 174 (AB)

December 13, 2010 -- Under the Canadian Environmental Assessment Act (the Act), the Canadian Environmental Assessment Agency (the Agency) is responsible for exercising the powers and performing the duties and functions of the responsible authority for certain projects subject to a comprehensive study.

Based on information it has received, the Agency has determined that the project is described in the comprehensive study list and that an environmental assessment pursuant to the Canadian Environmental Assessment Act is required. As a result, a comprehensive study commenced on December 3, 2010.

The Pierre River Mine Project proposed by Shell Canada Limited includes the construction, operation, and reclamation of an oil sands surface mine and bitumen extraction facilities in the Fort McMurray area. The proposed mining project is to be located approximately 90 kilometres north of Fort McMurray on Oil Sands Leases on the west side of the Athabasca River. The proposed development includes an open pit, truck and shovel mine, ore handling facility, bitumen extraction facilities, tailings processing facilities, support infrastructure, water and tailings management plans, and an integrated reclamation plan, as well as the construction of a bridge across the Athabasca River. The Pierre River Mine Project is designed to produce a total of 31,800 cubic metres per day (200,000 barrels per day) of bitumen.

An environmental assessment is required in relation to the project because Fisheries and Oceans Canada may take action in relation to subsection 35(2) of the Fisheries Act and Transport Canada may take action in relation to section 5 of the Navigable Waters Protection Act.

This project is also subject to the environmental assessment requirements of the Government of Alberta.

As per the Cabinet Directive on Improving the Performance of the Regulatory System for Major Resource Projects, this environmental assessment has been identified as a major natural resource project. For additional information refer to the Major Projects Management Office's Tracker that monitors the progress of proposed major resource projects through the federal regulatory review system.

For further information on this environmental assessment, please contact:
Marie-France Therrien
Canadian Environmental Assessment Agency
160 Elgin Street, 22^nd Floor
Place Bell Canada
Ottawa  ON  K1A 0H3
Telephone : 613-957-0324 or 1-866-582-1884
Fax : 613-957-0941
Email : Shell.Reviews@ceaa-acee.gc.ca

and refer to Registry reference number 10-03-59539