March 18, 2008

TransGas continues environmental remediation process at its Landis Storage Development Project Site

TransGas has initiated a remediation process at its Landis Storage Cavern Development Project, after diesel-based drilling mud was released at four well drilling sites.

TransGas, the pipeline and storage subsidiary of SaskEnergy, has reported the release of this drilling mud to both the Ministry of the Environment and the Ministry of Energy and Resources.

Upon discovery of the situation late last week, TransGas immediately notified responsible regulatory authorities and started aggressive actions to remove the drilling mud. A top layer of soil has been removed at the affected sites and delivered to an approved disposal site over the weekend – that work continues today. All drilling mud material is contained to TransGas property to-date. The Ministry of Energy and Resources has been on site to review the remediation efforts. TransGas has committed to keep Energy and Resources apprised of progress.

TransGas is in the process of contacting adjacent landowners to inform them of the situation and our remediation actions.

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