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Enerplus is committed to the ongoing health and safety of our employees, contractors and the general public as evidenced by our participation in industry-recognized programs that drive and measure our Environment, Health and Safety (EH&S) performance. We believe our efforts in EH&S are essential to our continued corporate success and are important to all of our stakeholders. As a measure of our commitment to safety, Enerplus received industry recognition from Work Safe Alberta with a 'Best Safety Performer' award presented in 2005. Of Alberta's 128,000 employers, less than one percent received this award which is based upon stringent criteria of low lost time claims while maintaining strong compliance to regulatory requirements.

We have maintained our Certificate of Recognition ('COR') which is a framework developed by Alberta's Workplace Health and Safety to promote and utilize health and safety programs in the province of Alberta. We first received this certificate in 2000. We maintain our COR through annual reviews and a rigorous audit every three years. Our next three year audit will be in 2006. We also continue to be an active Platinum Level participant (the highest level attainable) in the Environment, Health and Safety Stewardship Program initiated by the Canadian Association of Petroleum Producers ('CAPP'). This stewardship program provides comparison on key benchmarks including recordable and lost time injuries for employees and contractors. Our employees outperformed industry peers as measured against CAPP's historical benchmark injury data with zero lost time incidents and only two minor medical aid incidents in 2005.

Continued focus on contractor safety through 2005 resulted in Enerplus outperforming CAPP's historical benchmark total recordable injury data in 2004 and maintained our four-year trend on total recordable injury frequency rate down to 1.53 per 200,000 man hours for 2005 in Canada. Contractor lost time frequency rates also trended downward from 0.73 in 2004 to 0.46 in 2005 in Canada. Contractor safety in the United States is not as good as Canada and will be a focus area for us in 2006. Contractor statistics including U.S. operations, which we added in August 2005 with the acquisition of Lyco, were 0.69 and 1.66 for lost time and total recordable injuries respectively.

Enerplus remains committed to meeting our responsibilities to protect the environment wherever we operate through a variety of programs and actively monitoring our compliance with all regulators. Key efforts include:
  • Utilizing employee awareness training and facility inspections to improve our overall environmental awareness, reduce flared and vented volumes and mitigate the impact from environmental incidents at our operated facilities.
  • Monitoring and tracking emissions at our facilities is part of our on-going commitment to meet various reporting initiatives including the National Pollutant Release Inventory and the CAPP Benzene Emissions and Green House Gas Emissions benchmarks.
  • Maintaining an active well abandonment and site restoration program. We continued to assess and remediate sites impacted by historic operations, with a primary focus on spill sites, flare pit and drill sump removal. Enerplus also maintained comprehensive inspection programs and initiated facility upgrades in 2005 targeted at improving the integrity of surface pipe, storage tanks and underground pipelines.
  • Initiating a review of all of our pipelines that cross bodies of water in order to identify high risk crossings and implement appropriate emergency response plans. In 2005 an area study was reviewed with the findings of this study being used to define the longer-term, company-wide program that will be implemented in 2006. Our emergency response plans are continuously reviewed to ensure protection of the environment from accidental spills or releases. Operators are trained in emergency response for both safety and environmental incidents to mitigate the impacts of unexpected releases.
  • Increasing emphasis on non-saline water use, particularly in sensitive watershed areas, is a focus in 2006. To that end, we have implemented a study to review and minimize this water use and ensure protection of non-saline water sources while at the same time ensuring that we have sufficient water to maintain our operations.
Overall, we spent $7.8 million on EH&S related activities or $0.27/BOE, which is higher than historical spending. In 2006, we plan to spend $10.4 million or $0.33/BOE toward EH&S initiatives as part of our ongoing commitment.  



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