Statement of Privacy Practices, Effective January 1, 2004

ARC Resources Ltd. ("ARC") respects the privacy and confidentiality of our stakeholders' personal information. Our policies with respect to the collection, use and disclosure of personal information are reflected in this Statement of Privacy Practices ("Privacy Statement"), which is created to inform you about our privacy practices. This Privacy Statement:

1. explains ARC's practices with respect to the collection, use, disclosure and protection of personal information by ARC;
2. provides information on how to access, correct and update personal information; and
3. explains how to contact ARC with privacy-related questions or comments.

What personal information does ARC collect?
ARC may collect certain personal information about you, either directly or through our partners, affiliates or associates. The personal information may be collected in person, over the telephone, through the mail or over the Internet. The information that we may collect or obtain includes, but may not be limited to:

1. your contact information such as your name, address, title, telephone number and email address, and so on;
2. information about your transaction history which may include your depositories and beneficiaries;
3. medical information, if provided by you for ARC’s benefits program; and
4. information about land or mineral rights if you are a surface or mineral lease owner;

Why does ARC collect and use your personal information?
ARC requires personal information about you in order to manage our business and provide services to our customers. We collect personal information only for the following purposes:

1. To create and maintain a responsible business relationship with you and provide ongoing service. For example, we may collect and use personal information in order to provide payroll or collect bank account information to ensure timely payments by direct deposit of monies owing to you;
2. To maintain our business and operations on your behalf. We need to collect or use personal information to provide settlement reports, or to alert you about environmental incidents in your area;
3. To meet legal and regulatory requirements. Collecting and using personal information is required for us to meet our contractual obligations to you, or legal and regulatory obligations to others.

When does ARC share your personal information with others?
The following are situations where we may share some personal information about you with others:

1. Subject to applicable laws, we may disclose your personal information to a government agency, court or law enforcement agency.
2. We may disclose your personal information to public authority or, if in our reasonable judgement, it appears that there is imminent danger to life or property that could be avoided or minimised by disclosure of the information.
3. We will disclose necessary personal information to provide insurance coverage for those employees participating in our Group Insurance Benefit Plans.

How does ARC protect your personal information?
ARC considers personal information provided by you to be private and confidential and accordingly we treat it with care. ARC:

1. will not collect, use or disclose your personal information for any purpose other than those identified in this Privacy Statement, except with your consent;
2. will protect privacy and confidentiality of your personal information with appropriate effective security safeguards; and
3. will keep your personal information as accurate and up-to-date as is necessary for the purposes identified in this Privacy Statement.

Consent to collection, use and disclosure of personal information
Unless you contact us to advise us otherwise, by receiving this Privacy Statement, you are deemed to acknowledge and agree that you have consented to the collection, use and disclosure practices set out in this Privacy Statement as they relate to your personal information. You may withdraw this consent at any time by advising ARC in writing. However, this withdrawal is subject to the terms and conditions of any contractual agreements you have with ARC and other legal restrictions.

Accessing, correcting or updating personal information
At any time, you may request that ARC correct or update your personal information by advising ARC in writing. ARC will use reasonable efforts to ensure that your personal information is accurate and current.

How do I contact ARC with respect to questions or complaints
regarding my personal information?
If you have any requests, questions or comments about your personal information or this Privacy Statement, you may contact us in one of the following ways:

by email: privacy@arcresources.com
by facsimile: (403) 509 7260

by mail:
ARC Resources Ltd.
2100, 440 2nd Avenue SW
Calgary, Alberta T2P 5E9

Attention: Terry Gill
(Please mark envelope CONFIDENTIAL)

ARC Resources Ltd. retains the right to amend this Statement from time to time without advanced warning or prior knowledge of the reader.