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The financial impact of these potential regulatory obligations is tracked and monitored internally. Pricing sensitivities such as the cost of carbon and the compliance mechanisms available to ARC such as offsets, credits and internal abatement are evaluated when determining the overall impact of climate policy on our operations.3 This evaluation provides management with a quantitative understanding of what the annual cost of compliance with Federal and Provincial carbon regulations might be. Based on our climate policy compliance models and the level of detail/rigor/assurance that we foresee being required to report GHG and carbon related data, we have focused our attention on data management and internal abatement via emission reduction projects.

Inline

in 2008 and 2009

testing at has amounted Greenhouse Gas & Air to the conservation Emissions Management 3 3

17 new drills

When it comes to greenhouse gas management, we are driven not only by the internal reductions we can achieve, but also by the belief that our level of effort to manage and offset our emissions should exceed our requirement. We have spent considerable time and resources on the development and implementation of CO2 storage projects in an effort to participate in a solution to an environmental issue that impacts the industry and public as a whole. If carbon dioxide emissions can be captured and used in enhanced oil recovery projects (EOR) we can take a waste product and create value for both the province and the local community through increased royalties and creation respectively. We have diversified our efforts in EOR development by conducting a pilot project in the Redwater field (currently underway), and exploring the viability of EOR in areas such as Pembina and Lougheed. There are not enough reservoirs in western Canada that are suitable for CO2 injection to support EOR as the singular means of carbon sequestration. Therefore, we are working in conjunction with the Alberta and Federal Governments to develop CO2 storage. As a leading stakeholder in a major CO2 storage project (the Heartland Area Redwater Project – HARP4) we have taken considerable action (and continue to invest heavily in this initiative) to support the sustainable development of the upstream oil and gas industry. 1 In 2008 and 2009, ARC was recognized as a Climate Disclosure Leader in Canada by the CDP. ARC reports at the Platinum Level to the CAPP Stewardship program. 2 See ARC’s 2008 Corporate Responsibility Report for more details. 3 A  RC expects that these regulatory requirements will not materialize until the 2012-2015 timeframe. 4 V  isit our website for more information on this project (www.arcresources.com)

of 966 e m of natural gas, equivalent to approximately 2,400 tonnes of carbon dioxide equivalent (CO2e) Inline flow testing occurs when evaluating the productivity of a gas well. All of the test gas is captured, flowed through a temporary meter and test vessel, and directed down a pipeline for processing. Normally, the gas is flared during a well test for a period of about 72 hours.

Our Corporate Responsibility

ARC ENERGY TRUST

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Corporate Responsibility 2010  

ARC Resources Ltd. Corporate Responsibility Report 2010

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