Yates Petroleum Corporation

ENVIRONMENTAL POLICY & AVIAN PROTECTION

Yates Petroleum Corporation (Yates) is committed to the exploration and production of oil and gas.

Our corporate objectives are to continually increase our reserves while minimizing our costs, preventing significant impact to the environment and protecting the health and safety of employees and the public.

Yates is committed to complying with all existing and relevant safety and environmental laws and regulations. Yates will continue to commit resources to the pursuit of fair interpretation of existing laws and enactment of future laws based on sound science and economic reality.

Yates continually considers new technologies, systems, and methods of organization that enhance its ability to achieve these business, safety and environmental objectives and periodically reviews its goals to ensure that the needs of employees and the public are addressed.

In 2007, Yates committed to implementation of an Avian Protection Plan (APP) to reduce the risk of injuries and mortalities to raptors and migratory birds as a result of interactions with company operated power lines.

The APP included construction standards for new lines as well as a schedule for the retrofit or modification of existing power poles based on an assessment of risk to birds. Employee training is also an integral component of the Plan.

Regulatory compliance has been enhanced and the risk to birds reduced by the proactive steps contained in the APP further demonstrating Yates commitment to safe operations.