NACE Tour and Dinner Meeting Tuesday, May 20, 2008

Shell Scotford Dow Center, , AB

TTTOOOPPPIIIICCC Shell Scotford Upgrader Plant Tour

SSSPPPEEEAAAKKKEEERRR Harm de Groot P.Eng. Engineering Services Coordinator Scotford Upgrader

It has been a while since NACE has organized a plant tour so we are happy to announce that Shell has offered to organize a plant tour of their Upgrader plant for NACE Edmonton, ASM and AWS members.

For now the tour is limited to 40 people so please make sure that if you are interested sign up in time. After the tour there will be a dinner and a presentation on materials and corrosion issues in by Harm de Groot.

The Scotford Upgrader is located next to Shell Canada's Scotford Refinery near Fort Saskatchewan, . The Scotford Upgrader uses hydrogen-addition technology to upgrade the high viscosity "extra heavy" crude oil (called bitumen) from the Muskeg River Mine into a wide range of synthetic crude oils. A significant portion of the output of the Scotford Upgrader is sold to the Scotford Refinery. Both light and heavy crudes are also sold to Shell's Sarnia Refinery in Ontario. The balance of the synthetic crude is sold to the general marketplace.

The Scotford Upgrader - which is part of the joint venture project between Shell Canada, Chevron Canada (a wholly owned subsidiary of ) and Western – is operated by Shell Canada.

UUUpppgggrrraaadddiiiiiinnnggg Upgrading is the process of breaking large hydrocarbon molecules (such as bitumen) into smaller ones by increasing the hydrogen to carbon ratio. These upgraded crude oils are suitable feedstocks for refineries, which will process them into refined products like gasoline. Scotford's upgrading process adds hydrogen to the bitumen, breaking up the large hydrocarbon molecules - this process is called hydrogen-addition or hydrogen-conversion.

NACE Edmonton Section Website: www.naceedmonton.com

HHHyyydddrrrooogggeeennn MMMaaannnuuufffaaaccctttuuurrriiiiiinnnggg UUUnnniiiiiittt The Scotford Upgrader is equipped with a hydrogen manufacturing unit. The unit produces most of the hydrogen required for the hydrogen-addition process.

EEEnnnvvviiiiiirrrooonnnmmmeeennntttaaallllll AAAdddvvvaaannntttaaagggeeesss With its hydrogen-addition technology, the Scotford Upgrader has significant environmental advantages:

 It makes the best use of the very clean bitumen produced at the Muskeg River Mine, with more than 100 barrels of upgraded crude produced for every 100 barrels of bitumen processed.  It produces dramatically lower levels of sulphur dioxide emissions.  High carbon coke is not produced as a by-product.  The synthetic crude oils produced enable refiners to produce clean, high-quality refined products, such as gasoline and diesel fuel, with low levels of aromatics, particulates and sulphur.

EEEcccooonnnooommmiiiiiiccc AAAdddvvvaaannntttaaagggeeesss More than 50 per cent of all money spent on goods and services for this project was spent with local suppliers in the Edmonton and areas. More than 400 permanent highly-skilled positions have been created to operate the Scotford Upgrader. The Scotford Upgrader has started construction on its first expansion, which will see at 60 per cent production capacity increase upon completion in 2010. At its peak, construction crews are expected to top 5,000 people and generate billions of dollars of investment in the Edmonton region.

HHHiiiiiissstttooorrriiiiiicccaaallllll FFFaaaccctttsss The Project (AOSP) consists of the Muskeg River Mine, located about 75 kilometres north of Fort McMurray, Alberta and the Scotford Upgrader located adjacent to Shell’s Scotford Refinery, north of Fort Saskatchewan, Alberta. Once upgraded, the synthetic crude oil is sent to Shell’s Scotford Refinery and other refineries across North America and is used in the manufacture of products such as gasoline, diesel, jet fuel and petrochemicals.

The AOSP became completely operational in June 2003 and at full production, is capable of producing the equivalent of 10 per cent of Canada’s oil needs.

The Scotford Upgrader surpassed design capacity rates after start up in less time than other oil sands operators were able to achieve

The Scotford Upgrader was the first to be built in the Fort Saskatchewan, Alberta area remotely from an oil sands mine in northern Alberta.

NACE Edmonton Section Website: www.naceedmonton.com

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LLLooocccaaatttiiiiooonnn Dow Center 8700 – 84 Street Fort Saskatchewan, AB

TTTiiiimmmeeesss 3:00 pm Arrival and Welcome

4:00 pm Start of Tour

6:00 pm Dinner

7:00 pm Presentation

To register, please fill out the attached form and return with payment before MMayay 1, 2008 to:

Trudy Skibinsky or Harm de Groot Phone: (780) 992-8659 or (780) 992-3426 Fax: (780) 992-3447 E-Mail: [email protected] [email protected]

REGISTRATION IS LIMITED ––– PLEASE REGISTER EARLY

NACE Edmonton Section Website: www.naceedmonton.com

Registration Information:

Registrant Name: Company: Address: Business Phone: Fax: EEE-E---Mail:Mail: NACE Membership Number (if applicable):

Payment must accompany this registration. Cheques can be made payable to NACE ––– Edmonton SectionSection. Payment may also be made by VISA or MasterCard. Please include GST, as below. All funds are in Canadian dollars.

Tour Fees:

Payable by: Cheque (enclosed) VISA MasterCard

Member: $25.00 + $1.25 (5% GST) = $26.25 x ______= $ ______NonNon----Member:Member: $30.00 + $1.50 (5% GST) = $31.50 x ______= $ ______Total Payment Enclosed $ ______

Cardholder Name: Card Number: Expiry Date: Signature of Cardholder:

NACE Edmonton Section reserves the right to cancel the tour in the event of insufficient registration.

NACE Edmonton Section Website: www.naceedmonton.com