1. Methodology used to collect activity data and calculate Scope 1 and Scope 2 emissions includes Canadian Association of Petroleum Producers, Calculating Greenhouse Gas Emissions, 2003; American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry, 2009; and Western Climate Initiative - Final Essential Requirements of Mandatory Reporting – 2011 Amendments for Harmonization of Reporting in Canadian Jurisdictions, December 21st, 2011.
2. Fresh water withdrawal includes water from (a) surface waters according to regulatory permits, (b) municipal sources and (c) water accessed from third parties.
3. Non-fresh water use includes produced water, water reused and flowback recycled. Definitions and calculations for non-fresh water have been revised and all numbers have been restated since the publication of our 2016 sustainability report.
4. The presentation of ARC’s economic data in prior years has been restated to better align with the GRI Standards.
5. Economic value generated comprises sales of crude oil, natural gas, condensate, natural gas liquids and other income, before the reduction of any royalty obligations, gains and losses on risk management contracts and gains and losses on asset dispositions and business combinations. All figures are presented on an accrual basis.
6. Economic value distributed to suppliers comprises all operating, transportation and general and administrative expenses as well as capital expenditures that are paid to suppliers other than employees, landowners, governments and for purposes of charitable donations. All figures are presented on an accrual basis.
7. Economic value distributed to providers of capital includes interest expense paid in cash, cash dividends paid and common shares distributed through ARC’s Dividend Reinvestment Plan (“DRIP”) and Stock Dividend Program (“SDP”).
8. Economic value distributed to governments includes Crown royalty obligations, corporate income taxes, property and business taxes, carbon taxes, provincial sales taxes as well as consideration paid to governments for surface rights of Crown-owned land and government licenses, fees and permits. Excludes contributions to government pension plans and government employment insurance premiums made on behalf of employees. All figures are presented on an accrual basis. Due to the use of different reporting frameworks, figures presented will not necessarily conform to those presented in ARC’s annual reporting under the Extractive Sector Transparency Measures Act (“ESTMA”). For more information or to view ARC’s annual ESTMA report, please refer to ARC’s website at www.arcresources.com.
9. Economic value distributed to employees comprises salaries, employee benefits and compensation associated with ARC’s share-based compensation plans. All figures are presented on an accrual basis.
10. Economic value distributed to landowners comprises land access payments and royalty obligations to individuals and corporations associated with non-Crown owned lands. Reduction in value distributed to landowners over a five-year time span attributed to reduction in total well count.
11. Economic value distributed to communities comprises contributions to charitable and not-for-profit organizations.
12. Economic value retained represents Economic value generated minus total Economic value distributed as presented herein. Economic value retained does not have any standardized meaning prescribed by International Financial Reporting Standards (“IFRS”) and should not be confused with retained earnings, net income, comprehensive income or any other measure prescribed by IFRS. May not be comparable to similar measures presented by other entities.