enVironMent Our operations may have an effect on the environment; therefore we work strategically and progressively  to address environmental challenges. Our environmental policies are developed to address the many  variables that come with operating a diverse set of assets across four provinces in Canada. We always  meet and strive to exceed any regulatory environmental policies, and believe in empowering employees  with the required support and resources to develop effective and innovative projects and programs to  mitigate our environmental impact. ARC continues to grow and so does our commitment to managing our environmental footprint.  By incorporating improved data management systems, regulatory risk assessment, facility maintenance  improvements and production efficiencies, we are able to explore opportunities for further improvement.  In 2009, ARC implemented an Eco-Efficiency Program that focuses on greenhouse gas (“gHg”) reduction  projects – a unique, employee driven initiative. In 2010, we expanded this program to include the  evaluation and implementation of emerging energy efficiency technologies.  ARC participates in the Carbon Disclosure Project (“CDP”) and the Canadian Association of Petroleum  Producers (“CAPP”) Stewardship program reporting mechanisms. We use this information to evaluate  past performance and to plan future initiatives and programs. The CDP invites Canada’s 200 largest  publically traded companies to disclose information related to their carbon management strategies.  ARC has voluntarily responded to the CDP request for information for the past four years. We are proud to  have once again been recognized as one of the companies named in the CDP Leadership Index (“CDLI”)  for the third consecutive year and one of only three from our industry sector in 2010. The CDLI comprises  the top ten reporters from the high-carbon impact sectors (energy, utilities, etc.) and the top five from  the low carbon impact sectors (banks, retail, etc.). ARC has a history of high quality reporting on its  financial and corporate governance disclosures. With the rising demand from the public for environmental  disclosure we naturally aim to be best in class in that area as well.  ARC manages its liabilities through proactive abandonment and reclamation of facilities, wells and leases.  ARC has a controlled reclamation fund we contribute to yearly with $25 million currently set aside.  ARC also annually budgets additional funds for reclamation and abandonment, with a further $6 million  slated for 2011 activities.  ARC’s environment, health and safety program and community involvement initiatives are explained in  more detail in ARC’s Corporate Responsibility Report at www.arcresources.com. leArn More ARC ResouRCes 10 29 AnnuAl  report