Prepared By: Phone: (403) 266-4850

Phone: (403) 266-4850 Fax: (403) 266-4853

Petro Canada Oil and Gas

PC Devon Kugpik L 46

Ian Kendziora / William Gruben

FinalSampling Summary

Newpark Environmental Services#300, 635 - 6th Ave. S.W., Calgary, Alberta T2P 0T5

PC Devon Kugpik L 46 Drilling Waste Sampling Report

Overview: Newpark Environmental Services was contracted to perform sampling and assessment on the drilling wastes from the PC Devon Kugpik L 46 well drilled in the winter of 2001 / 2002. The well site is located in the MacKenzie Delta region of the lowland taiga plains. The drilling waste generated at the above mentioned location is being managed and disposed of within a containment sump immediately off the east side of the drilling location. Sampling & Assessment: The drilling waste was assessed for visible contamination, frozen state, and volumes. Representative samples were collected from the waste contained within the sump itself as well as the active system at TD (Total Depth). The waste within the pit contained mainly heavy solids and frozen liquids that had been dumped in and pushed up into a backwards ‘S’ shaped berm. Two areas within the sump contained liquids. These areas are noted by sample points X3 and X12. The bermed up solids area was divided into sections and composite sample points were obtained as noted on the sump sampling report. Analytical Results: Soluble salts, total extractable hydrocarbons and physical parameters are summarized on the attached sampling report. In addition, Petro Canada analysed for extractable and volatile hydrocarbons, trace elements (Metals) and toxicity (Toxicity results will accompany a supplemental report upon receipt of lab analysis). Key characteristics of the total waste are summarized in Table #1. below.

Table 1. Total Waste Analytical Results

Parameter Total Waste Composite

Density (kg/m3) 1225 Total Sodium (mg/l) 4,040 Total Sulphur (ug/g) 4,030 Total Calcium (mg/l) 773 Reactive Chlorine (mg/l) 0.3 Chlorides (mg/l) 47,400 Potassium (mg/l) 45,200 pH 12.5 Extractable Hydrocarbons (mg/kg) 204 Volatile Hydrocarbons (mg/kg) 0.1 Mercury (ug/g) 0.043 Antimony (ug/g) <0.9 Arsenic (ug/g) 5.6 Barium (ug/g) 5270 Beryllium (ug/g) 0.43 Cadmium (ug/g) <0.09 Chromium (ug/g) 24.1 Cobalt (ug/g) 7.55 Copper (ug/g) 46.4 Iron (ug/g) 18,200 Lead (ug/g) 10.8 Molybdenum (ug/g) 3.87 Nickel (ug/g) 23.6 Selenium (ug/g) 1.0 Silver (ug/g) <0.2 Thallium (ug/g) <0.7 Tin (ug/g) <0.5 Vanadium (ug/g) 21.6 Zinc (ug/g) 88.9 Microtox (EC50 @ 15 min.) 26 (Fail) Microtox Charcoal (EC50 @ 15min.) 17.4 (Fail) 96 Hour Trout Bioassy (LC 50) 11 (Fail)

Table 2. PROPERTIES OF POTASSIUM CHLORIDE SOLUTIONS (KCl)

% KCl Density (kg/m3)

KCl (kg/m3)

KCl (mg/L)

K+ (mg/L)

Cl- (mg/L)

Final Volume Factor

Freezing Point (° C)

1 1006 11.4 10050 5271 4779 1.004 0 2 1013 20.0 20220 10605 9615 1.008 -1 4 1026 39.9 40960 21482 19478 1.016 -2 6 1039 62.8 62210 32627 29583 1.024 -3 8 1052 82.8 84000 44056 39945 1.033 -4 10 1065 105.6 106300 55752 50548 1.043 -5 12 1079 128.4 129200 67762 61439 1.053 -6 14 1093 154.1 152700 80087 72613 1.064 -7 16 1106 176.9 176700 92674 84026 1.076 -8 18 1120 202.6 201300 105576 95724 1.088 -9 20 1135 225.4 226600 118845 107755 1.102 -10 22 1149 251.1 252400 132376 120024 1.115 -11 24 1160 279.6 279000 146327 132673 1.028 -12

Properties based on 20°C and 100% purity

Mud System The following table summarizes the total mud additives used. Product Unit Size (kg/l) # Units

Product Total Units

Unit Size

Product Total Units

Unit Size

Alcomer 74 P 5

15kg Lignite 10 23 kg

Calcium Carb (325-Grit) 35 25kg Barite 349 40 kg Caustic Soda 23 23kg Barite (Bulk) 2 1000 kg Cl 40 139 20 l MI Gel (Sacks) 260 40kg Citric Acid 11 25 kg Poly Pac Reg 47 23 kg Defoam X 530 1 l Potassium Chloride 4687 25kg Defoam X 23 19 l Sawdust 61 Sacks Desco CF 23 11 kg Soda Ash 37 23 kg Greencide 14 19 l Sodium Bicarbonate 47 23 kg ID Cap 187 25 kg Thermpac UL 78 23 kg Kelzan XCD 165 25kg Urea 61 25 kg Kwik Seal Fine 20 18 kg X-Cide 207 18 3 kg

Summary: The chemistry of this waste and its frozen state show no concerns for on-site freeze down and burial. Hydrocarbon levels are very low and although the salt levels are elevated, they are well below concentrations that will create ‘freeze down’ difficulties, as indicated by the field assessment. Freeze point depression data for KCL systems indicates that the average waste will freeze down at -4 to –5 degrees Celsius.

Operator: Well Name:Location: Date:

Sump Location: Sampled By:

# PitX1 1 Total Sodium (mg/l)X2 2 Total Sulfer (mg/l)X3 3 Chloride (mg/l):X4 4 Reactive Chlorine (mg/l)X5 5 Total Calcium (mg/l)

X6 Density (kg/m3)

X7

X8X9 Temperature of Waste: CX10X11

X12X13X14X15 Treatment Required:X16X17X18 Comments:X19X20

4030

SAMPLE DEPTHS (m) VOLUMES (m 3 ) FIELD ANALYSISTestingTotal

Liquid Solid

Pit #2 is the downhole and tank volume to be added to the sump.

None Required.

mud system is also free of hydrocarbon contamination.

Pit #1 is the sump.

4040

-4

Total

Ian Kendziora / William Gruben

Parameters Waste

Newpark Environmental ServicesNORTHWEST TERRITORIES SUMP SAMPLING REPORT

Petro Canada Oil and GasL 46East Boundary of Drilling Location

PC Devon Kugpik L 46April 22, 2002

1225

474000.3773

SolidsFree-Board Ice Waste

3.5 710Liquid

860

150

Total

SolidsTotalWasteIce Liquid

2.31.52.0

1.0

2.52.50.4

4.04.01.30.81.5 No visible hydrocarbons at any sampling point. Active

SAMPLING OBSERVATIONS

VISIBLE HYDROCARBONS

4.0m

16.0m

X1 X2

X3X4

X5

X6X7

X8 X9

X10

19.0m

#1

X12

X11

56.0

10.0m

14.0m

12.0m

7.0m

Liquid

Solid

Solid

Solid

Ramp

Liquid

AB Sump Sampling Report April, 2002

Operator: Well Name:Location: Date:

Remote Location: Sampled By:

Available Spread Area: ha

Access: ac Cut / Fill: In Meters "A" Horizon Soil Pile: A Trench: tr Fence:A Soil Sample: Berm: Berm "B" Horizon Soil Pile: B Well Center: WC Flare Pit: fpC Soil Sample: Drainage: "C" Horizon Soil Pile: C Spoil Pile: SP

*Distances measured in meters

XAXC

COMMENTS & AREA INFORMATION

LEGEND

Spoil Piles (SP) are comprised of mineral soils and permafrost. The wellsite is very clean with no indication of spilleddrilling fluids, or spills of any sort. All heavy equipment has catch trays to prevent incidental contact with the sitesurface. Tanks are lined with heavy geotex and resistant liner, there are no fluid leaks or spills.

Newpark Environmental ServicesWELLSITE SCHEMATIC

Petro Canada Oil and GasL 46East Boundry of Drilling Location

PC Devon Kugpik L 46April 22, 2002Ian Kendziora / William Gruben

N

ac

160m

MudProducts

WC

SPSumpArea

Akita Equtak60

Rig Camp

ac

160m

Tanks

Tank

SewagePitSP

AB Sump Sampling Schematic April, 2002

Operator: Well Name:Location: Date:

Remote Location: Sampled By:

# PitX1 1 Density (kg/m3):

X2 2 pH:X3 3 E.C. (dS/m):X4 4 Chloride (mg/l):X5 5 Sodium (mg/l):

X6 Nitrogen (mg/l):

X7 Calcium (mg/l):

X8 Magnesium (mg/l):X9 Was sump dug with Cat or Hoe: Soil Texture:X10 Soil Depth (cm):X11 Temperature of Waste:

OC

X12X13 Estimated Water Table Depth: mX14X15 Treatment Required:X16X17X18 Comments:X19X20

SAMPLING OBSERVATIONS

VISIBLE HYDROCARBONS

SolidsTotalWasteIce Liquid

Total

WasteLiquid SolidsFree-Board Ice Solids Waste

Newpark Environmental ServicesALBERTA SUMP SAMPLING REPORT - REMOTE SUMP SITE

Petro Canada Oil and GasL 46East Boundary of Drilling Location

PC Devon Kugpik L 46April 22, 2002

Soil

Ian Kendziora / William Gruben

Parameters Liquid"A"Soil

SAMPLE DEPTHS (m) VOLUMES (m 3 ) FIELD ANALYSISTesting "C"Total Total

X1X2X3X4X5X6X7X8X9X10

5.0m6.5m12.0m7.2m3.6m

#1#2

#3

#4

April, 2002

Operator: Well Name:Location: Date:

Remote Location: Sampled By:

Available Spread Area: ha

Access: ac Cut / Fill: In Meters "A" Horizon Soil Pile: A Trench: tr Fence:A Soil Sample: Berm: Berm "B" Horizon Soil Pile: B Well Center: WC Flare Pit: fpC Soil Sample: Drainage: "C" Horizon Soil Pile: C Spoil Pile: SP

*Distances measured in meters

XAXC

East Boundary of Drilling Location

PC Devon Kugpik L 46April 22, 2002Ian Kendziora / William Gruben

COMMENTS & AREA INFORMATION

LEGEND

The constructed sump is approximately 5m deep. The freeboard on the west side of the empty part of the sump is 4m and 6m onthe east side. The majority of the waste in the sump is drill cuttings and centrifuge solids that were dumped into piles with the

the completion of the well.

Newpark Environmental ServicesSUMP SCHEMATIC

Petro Canada Oil and GasL 46

loader. The ramp is also composed of the same drilling material. The drilling waste in the SE corner of the sump is in a slurried state with an average depth of 1.2m. There is 260m3 of drilling fluid in the active system that will be added to the sump at

4m

4.5m

N

SumpBottom

ac

56m

Slurry / Liquids

Ramp

6%

4.5m

19m

12m

16m

4m

3.5m

10m

14m

7m

4m

2m

3.5m Freeboard

4.7m Freeboard1.0m Freeboard

4.0m Freeboard

Waste Pile

Waste Pile

Waste Pile

Waste Pile

Waste Pile

6%

30%

April, 2002