Competition Bureau Addresses Concerns Raised by Proposed Oilfield Waste Takeover

OTTAWA, July 4, 2001 — The Competition Bureau announced today that it will file an application with the Competition Tribunal tomorrow for a Consent Interim Hold Separate Order in dealing with the proposed acquisition of Newalta Corporation ("Newalta") by Canadian Crude Separators Inc. ("CCS").

The proposed transaction raises serious competition concerns in relation to oilfield waste treatment and disposal services in Alberta. CCS has agreed that it will divest 10 facilities in Alberta (as set out in the attached list) in order to satisfy the competition concerns of the Bureau. The Bureau has agreed to seriously consider submissions from CCS as to whether the number of facilities to be included in the divestiture package can be reduced. However, it has been agreed that the ultimate decision is up to Bureau alone.

As a result, the Bureau is confident that the proposed resolution will resolve the competition concerns raised by the proposed transaction.

"The agreement between CCS and the Bureau together with the order that will be filed tomorrow will maintain competition in the oilfield waste and disposal market," said Gaston Jorré, Senior Deputy Commissioner of Competition.

The Competition Bureau is an independent law enforcement agency which ensures that all Canadians enjoy the benefits of a competitive economy. It oversees the application of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act.

Media Enquiries:
Tim Weil
Senior Communications Advisor
Competition Bureau
819-953-9271 or 613-296-2189 (cell.)

AFFECTED BUSINESSES

List of facilities affected by Consent Interim Hold Separate Order:

1. Grande Prairie
2. Gordondale
3. Spirit River
4. Valleyview
5. Drayton Valley
6. Hughenden including the waste disposal cavern associated with such facility.
7. Zama
8. Eckville
9. Stauffer
10. Elk Point