Watters, a second-class power engineer who gained her own accreditation primarily through correspondence supplemented with occasional tutorials. “In the past, students wanting to take third-class power engineering have had to relocate to the Portage College campus at Lac La Biche, at considerable inconvenience and expense for travel and housing. This program lets them complete their studies while remaining in their own local communities.”

Nathan Froning, a student in this year’s program, absolutely agrees. “My only other options would be either correspondence courses or travelling one-and-a-half hours each way to Lac La Biche,” says the student, who has already spent two weeks gaining practical experience at Imperial’s Leming plant and will spend his steam-time practicum at the Mahihkan plant this summer and fall.

Power engineers work in many facets of oil and gas operations. They operate and maintain specialized equipment and ensure oil and gas facilities are functioning in a safe and efficient manner. Current training programs for this certification in the region have been operating at capacity, signifying strong demand for the skills involved. Students seeking proper training will enter into this field beginning at the fourth class level, then progress into the third, second and first class levels respectively.

Under the new program, students attend classes at Portage College between March and May. That is followed by six months in positions with local companies to help students meet the requirements of the third-class power engineering accreditation, before returning to the classroom to complete the training.

Nathan describes the program as “amazing” and says he couldn’t ask for better investment for his tuition than the class he gets from Mandy. And Mandy, who juggles teaching and work with raising four children, says her students are “keen, disciplined and very eager to learn, a pleasure to teach.”

NEIGHBOUR NEWS Summer 2013

A pilot program is bringing Imperial Oil expertise to Portage College with an initiative designed to help address a growing demand for skilled workers in the Cold Lake and Bonnyville region.

Known as the Power Partnership, the program helps local Portage students gain the classroom education and on-the-job training they need to become accredited as third-class power engineers in their own community.

“As the oil and gas industry continues to increase its activity in the Cold Lake and Bonnyville region, there is a growing need for skilled workers such as power engineers,” says Larry Lyons, coordinator for Portage College’s Power Engineering Program.

This high demand has also meant instructors have been hard to come by. To help address this, Imperial has seconded plant operator Mandy Watters to the college to teach the program in Cold Lake. The company will also provide 10 students with steam-time placements at its Cold Lake Operations.

“A major benefit to the students is the convenience of being able to gain their education in the area,” says

Cold Lake •

Partnership boosts local training capacity for much-needed power engineers

In the Community | Performance Scorecard | From the Manager | ContactsINSIDE:

Portage College student Nathan Froning and instructor Mandy Watters.

Portage College instructor Mandy Watters.

Pancake BreakfastCold Lake’s leadership team – superintendents, managers and others – hosted a pancake breakfast as part of Cold Lake’s Registration Day in September. It was an informal opportunity for local people to ask questions and meet our leadership team.

Special EventsImperial sponsored the guest speaker, hockey legend Craig Simpson, at the Bonnyville Pontiacs Education Breakfast in 2012.

Imperial‘s volunteers make a differenceImperial’s Volunteer Involvement Program (VIP) supports employees, retirees and spouses in their volunteer activities by providing grants to eligible organizations.

Collin and Kyla NuttallServing the Cold Lake region community in general and kids-related causes in particular is part of regular family life for Collin and Kyla Nuttall. Collin, an instrumentation electrical technician with the Maskwa plant operation, serves as volunteer coach of the “Green Machine” hockey team in the Cold Lake Novice league, which includes one of the couple’s three daughters. With pre-season camps, two practices a week at least two or three games each weekend during the season, many of them “on the road,” the schedule keeps Collin on the move.Kyla serves on the Parent Advisory Council of St. Dominic’s Elementary School. In addition to attending regular meetings and helping to apply for grants and find sponsors for school programs, she volunteers on students’ lunch and milk programs. The current focus, however, is a drive to raise funds for a new school playground. “Our target is $80,000 and we’re about halfway there,” Kyla says. “We hope to start construction in September.”

Imperial is committed to helping our communities remain strong, healthy and prosperous. We support numerous community organizations and initiatives through donations, sponsorship and volunteerism.

Here are some community events and projects we supported in 2012Imperial Oil Place Imperial Oil Place, a multi-purpose sports arena, was officially opened to the public in October 2012. The facility was built on land donated by Imperial and funded in part by a $2.2 million contribution from the company. The building is the largest infrastructure project to be funded by Imperial. The name was chosen by Imperial employees.

The 1,500-seat arena hosts figure skating, hockey and concert events – and is the home of the Cold Lake Junior B “Ice” hockey team. The design will accommodate future expansion to include banquet and meetings rooms, as well as commercial space.

Imperial Oil | Neighbour News | Cold Lake | Summer 2013

A partner in our Community

Employees built bird houses with students from Cold Lake Middle School and presented a lesson on wetlands and habitat protection. Students at the school are also working on a project to reduce recyclable waste such as plastic, paper and other materials by 50 percent by 2013. We provided a donation of $9,400 to the school to support the recycling initiative.

Energy in Action is a program through the Canadian Association of Petroleum Producers that works with local schools to combine energy literacy with hands-on education and environment sustainability. Imperial is the industry leader for program in the Lakeland area. In 2012, employees helped build an outdoor classroom for students at Duclos School in Bonnyville.

Employees and their families participated in the annual Santa Claus parade in Cold Lake.

For more information on community investment, scholarships and educational programs, contact Donna Gingras at 780-639-5195 or visit www.imperialoil.ca/coldlake

A partner in our Community

Imperial Oil | Neighbour News | Cold Lake | Summer 2013

PerformanceIssue Indicator 2010 2011 2012 Comments

Envi

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Climate Change

Direct greenhouse gas emissions including emissions from Cogeneration (million tonnes of CO2 equivalent)

4.50 4.59 4.40 Greenhouse gas emissions decreased in 2012 due to decreased steam generation.

Indirect greenhouse gas emissions from purchased electricity (million tonnes of CO2 equivalent)

0.028 0.032 0.028 Electricity generation and exported electricity increased in 2012 as there was less downtime for maintenance and inspection of the turbines and heat recovery steam generator.

Direct greenhouse gas emissions from exported cogeneration production of electricity (million tonnes of CO2 equivalent)

0.373 0.300 0.342

Total GHGs Total direct + indirect purchased – exported (million tonnes of CO2 equivalent)

4.16 4.32 4.09 Total GHGs decreased in 2012 due to decreased steam generation and increased electricity export. Our GHG intensity (tonnes of CO2 equivalent/bitumen production) was lower than in 2010 and 2011, due to lower total GHG emissions and increased bitumen production.

Air quality Sulphur dioxide emissions (SO2) (thousand tonnes)

1.9 1.6 1.6 Improved operability of the Mahihkan sulphur recovery unit contributed to lower sulphur dioxide emissions.

Nitrogen oxides emissions (NOx) (thousand tonnes)

5.6 5.7 5.5 Nitrogen oxide emissions decreased in 2012 due to decreased steam generation.

Regulatory compliance

Environmental regulatory incidents 1 0 5 There was one incident related to a sample exceeding release limits. All other incidents in 2012 were related to administration noncompliances.

Spills Number of oil and chemical spills (greater than one barrel)

9 7 6 We are making changes to improve our spill performance, such as adjusting pressure alarms by pad throughout the field to detect pressure changes.

Reclamation Percentage undergoing temporary reclamation, remediation and reclamation

44% 43% When we cease to operate on a parcel of land, our goal is to restore the disturbed area back to an equivalent land use state. At the end of 2012, we had disturbed a total of 3,454 ha. of which 488 ha. have been permanently reclaimed. In 2010, the provincial government introduced a new reporting guideline that redefined the land status categories of which IOR reports its annual conservation and reclamation progress report to Alberta Environment and Sustainable Resources Development. The reporting guideline was implemented in 2011, which therefore supersedes previous conservation and reclamation reporting data.

Percentage reclaimed 15% 14%

Total percentage undergoing a reclamation activity

59% 57%

Water Fresh water use (cubic metres of fresh water to produce a cubic metre of bitumen)

0.33 0.30 0.29 We treat, recycle and reinject the produced water that is recovered with oil. We are completing projects to reduce our freshwater use by 30 percent (2006 – 2008 baseline) by 2015.

Wor

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Employment

Number of employees ~400 ~410 ~410Cold Lake will look to expand both the number of employees and contractors for the Nabiye expansion project in 2013. Number of contractors ~1200 ~1200 ~1200

Number of contractors - Nabiye N/A N/A 300

Safety Total recordable incident rate (Number of incidents per 200,000 hours worked - equivalent of 100 people working one year)

Employees 0.59 0.29 0.282012 was Cold Lake Operations safest year on record with the lowest workforce injury frequency ever, demonstrating continuous improvement to our goal that ‘Nobody Gets Hurt’. These numbers reflect all three of our different business units (Operations, Well Works and Production Projects) working on the Cold Lake Operations site.Contractors 0.61 0.53 0.52

Upstream oil sands employees 0.62 0.61 N/A* Data provided by the Canadian Association of Petroleum Producers (CAPP). *2012 Data not yet available.Upstream oil sands contractors 0.79 0.86 N/A*

Com

mun

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Contributions

United Way (thousands of dollars) $100 $120 $167

In 2012, Imperial’s employees/contractors raised a record amount, exceeding 2011 contributions by more than $40,000. Since 2000, Imperial’s Cold Lake Operations has raised more than $1 million to support the Lakeland United Way, servicing local non-profit organizations.

Total community contributions (thousands of dollars)

$506 $520 $565

In 2012, Imperial supported over 150 community events and projects in the Lakeland area, including; financial contributions, in-kind donations, door prizes, tours for community members, presentations for students and attended various local community fundraising events.

Community OutreachPublic Tours

Cold Lake Operations expanded its community outreach activities in 2012. The operation carried out two bus tours of the Cold Lake operation in November. About 140 residents from Cold Lake and Bonnyville participated in the tours of a plant and well pads, which were led by operators at the site.

Neighbour NightAbout 130 local residents attended Cold Lake’s annual Neighbour Night in November, where we provided information about water management and what we are doing to reduce freshwater use at Cold Lake Operations. We also provided an update on the construction of the Nabiye expansion project, which reached peak construction in March 2013. As part of the event, two of our facility engineers hosted a children’s science fair.

Martineau River:1030 mm (over 3 feet)

Groundwater and other sources:425 mm (1 foot)

Precipitation:320 mm (over 1 foot)

Evaporation: 625 mm (2 feet)

Imperial’s Cold LakeOperation: 8 mm (1/3 of an inch)

Average year �ows in Cold Lake (millimetres of lake levels)

Source: Alberta Environment and Sustainable Resource Development

Cold River:1130 mm

(over 3 feet)

How to reach usImperial Oil Resources Cold Lake Operations

P.O. Box 1020, Bonnyville Alberta T9N 2J7

Main switchboard 780-639-5111

24-hour emergency line 780-639-5200

Community Affairs 780-639-5195

What‘s new online For more in-depth information on our performance, visit our full Corporate Citizenship Report at www.imperialoil.ca. Our online community report is available at www.imperialoil.ca/coldlake.

At Imperial’s Cold Lake Operations, water is used to generate steam that is injected into underground reservoirs to heat the oil so it can be pumped to the surface. Recycled water accounts for over 90 percent of the operation’s total water usage, the remainder is drawn from other water sources including freshwater from Cold Lake.

Cold Lake Operations meet all of the requirements of its freshwater water withdrawal licenses with Alberta Environment and Sustainable Resource Development. Cold Lake does not use the full amount of freshwater allocated under its license. Only the minimum amount required for operations is used and no additional water allowed under the license is distributed to other users. On average, Imperial uses only 70 percent of its allowable license allocation.

Water levels in Cold Lake are largely driven by evaporation and precipitation, which is illustrated in the graphic below. In an average year, withdrawals by Imperial’s Cold Lake Operations account for about eight millimetres of change

This report is printed on 50 percent recycled paper that includes 30 percent post-consumer waste. It is chlorine and acid-free.

Mixed Sources logo here

From the Managerin lake levels, which is less than one-third of an inch. In contrast, summer evaporation is a much larger factor, representing 625 millimetres, which is more than two feet of decline in lake levels. This information is referenced from the water flow information from Alberta Environment and Sustainable Resource Development.

In accordance with provincial regulations, if lake levels drop below a certain range, Imperial’s water withdrawals are restricted. If lake levels further fall below a certain point, Imperial does not withdraw any water from Cold Lake.

Going forward, Imperial will be producing more oil at Cold Lake using less freshwater. The technology we are using at our newest plant, Nabiye, is designed to run on a minimum amount of freshwater. This means we will be bringing on 40,000 oil equivalent barrels a day of production without an increase in overall freshwater use. Imperial is also continuing to pursue other opportunities to reduce the total amount of freshwater used in operations particularly in the older operating facilities.

WB00208 13 07

Want to get involved?LICA - Lakeland Industry and Community Association

Tel. 780-812-2182 lica2@lica.ca

Cold Lake operations has been a partner with LICA for over 12 years. LICA is a community-based not-for-profit association whose main goals are to provide residents with a timely response to concerns identified in the Lakeland area and to ensure that growing development is conducted in a responsible manner.

Facts about freshwater use at Imperial’s Cold Lake operations

Paul Leonard, Manager Cold Lake Operations

ImperialOil @ImperialOil