Suncor Energy Inc.

Suncor Energy Inc.

July 05, 2006 00:00 ET

Regulatory hearing begins for Suncor Energy's next expansion

Fort McMurray, Alberta (July 5, 2006) — The Alberta Energy and Utilities Board (EUB) begins its hearing today into Suncor Energy Inc.'s application to build a third upgrader and to extend operations at the company's Steepbank mine near Fort McMurray. The application represents a critical step in Suncor's multi-phased growth strategy designed to potentially more than double the company's current oil sands production capacity to 500,000 to 550,000 barrels per day in 2010 to 2012.

The EUB hearing marks the culmination of months of consultation between Suncor and various stakeholders, including First Nations, environmental groups and community representatives. Suncor will continue to work with these groups, and others, to understand and address any outstanding issues related to its regulatory applications.

"This is an important step forward," said Heather Kennedy, vice president, Employee and Community Relations. "We're confident our growth strategy can be achieved responsibly and we welcome the opportunity for stakeholders to examine our plans."

Key elements of Suncor's application include construction of a third oil sands upgrader and related infrastructure just southwest of Suncor's original oil sands plant as well as construction of the North Steepbank extension mining project, adjacent to existing mining operations.

According to a socio-economic impact assessment completed by Suncor, the proposed expansion is expected to create about 300 additional full time jobs at Suncor's oil sands operation. During construction, the project is expected to employ more than 3,000 workers. The company also completed an environmental assessment, which identified steps Suncor will take to mitigate the project's impacts to air, water and land.

"Every step of Suncor's growth strategy is guided by the company's vision of sustainable development, taking into account the environmental, economic and social impact of our operations," said Kennedy. "Suncor has a long history of working successfully with local communities and our Aboriginal neighbours. The company looks forward to continuing that dialogue through the course of this important hearing."

This news release contains forward-looking statements identified by the words "designed to", "can be", "expected", and similar expressions which are based on Suncor's current expectations, estimates, projections and assumptions made in light of its experiences and the risks, uncertainties and other factors related to its business. Actual events could differ materially as a result of changes to Suncor's plans and the impact of events, risks and uncertainties discussed in Suncor's current annual information form, annual and quarterly reports to shareholders and other documents filed with regulatory authorities.

Suncor Energy Inc. is an integrated energy company headquartered in Calgary, Alberta. Suncor's oil sands business, located near Fort McMurray, Alberta, extracts and upgrades oil sands and markets refinery feedstock and diesel fuel, while operations throughout western Canada produce natural gas. Suncor operates a refining and marketing business in Ontario with retail distribution under the Sunoco brand. U.S.A. downstream assets include pipeline and refining operations in Colorado and Wyoming and retail sales in the Denver area under the Phillips 66® brand. Suncor's common shares (symbol: SU) are listed on the Toronto and New York stock exchanges.

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For more information, contact:
Darcie Park
403-807-2585

For background on the Voyageur and North Steepbank projects, including a summary of the application to the EUB, see www.suncor.com.