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LEGISLATIVE ASSEMELY ALBERTA Hon Jason Kenney PC MLA Leader, Her Majesty’s Loyal Opposition Hon. Rachel Notey Premier of Alberta 307 Legsiature Bulding 10800-97 Avenue edmonton, AB 5k 206 November 18,2018 ear Premier, Uke you, 1am deeply concerned thatthe price eifferetia for Alberta ol has reached criss proportions Itis unacceptable that Albertans are losing neary $100 milion per day by massively underseling our ‘mast important aset This is ultimately the result of a fallureof governments to ensure new pipelines, which sin par the result of a ong term campaign by foreign funded interests to land lok Canadian energy. The decision of the federal government to veto the approved Northem Gateway Pipeline, the same governments new regulatory mandates that klled Energy East, President Obama's veto of Keystone XL, and the campaign te obstruct the Trans Mountain expansion have al contributed to this massive los of wealth that belongs to Albertans. Thiscrisis will bcome more severe if the federal government's ll C-69 becomes law, creating even more uncertain for prospective future pipeline projects. \We also know that glut in Abert il inventories has resulted in pushing the price cifferenta to unprecedented levels. Some are caling for government intervention to mandate curtaiment of oil production untiliaventories stabilize andthe price diferetial is significantly reduced, Much of the current price ferential isthe result of fallure of government pokles,afallure which Is ‘damaging the public interest by reducing government revenues by billons of dolas. | therefore believe that the Government of Alberta should keep the door open to using statutory tols to control production inthe short term, However, | believe it s preferable for the energy industry to act voluntary in controling production to _avold the precedent and potential unintended consequences of government action. lam therefore calling on Canadian upstream il producers to actin the public intrest by voluntarily reducing thelr production until inventories have been cleared, and the price differentia alleviated. There appears to be '2 consensus inthe industry that such ation would requle a cumulative reduction of some 250,000 LEGISLATURE OFFICE oh Pia abel Bar 8824-167 Set Warn Abt | ET barrels per day. Several producers have already commendably acted to reduce production voluntarily. ‘These efforts should be matched by al producers. The resource that they are developing belongs to al [Albertans who have a right to expect that producers will not act na way that makes Alberta poorer. | applaud your announcement today creating an advisory group to scope out options forthe Government of Alberta. AS | have said inthe pas, believe thatthe vital economic interests of Albertans should transcend partisan polis. | would therefore offer, on behalf ofthe Official Opposition, to work ‘with your government to seek apolitical consensus on the way forward. In this respect would be happy to meet with you, your Minister of Energy, or the recently appointed taskforce to discuss policy options hope that all concerned, both industry and poltical leaders, willact to defend the value ofa ‘tremendous resource that belongs to both current and future generations of Alberta Yours sncersy, Hon Jason Kenney PC ML Leader, Her Majest/' Loyal Opposition ce Hon Robert Wanner. Speaker. Legislative Assembly of Alberta David Kran Leader, Alberta Uberal Party stephen Mandel, veaer, alberta Party Leos ATURE OFFCE| Flu tera Bug 6620-107 Stes NN amen Abt | 167

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