We believe it is important to meet the demand for energy in a safe and environmentally responsible manner. Strong safety and environmental performance are fundamental for our long-term growth. We promote a systematic approach to continuous improvement in environmental management and health, safety and social performance.

All of Freehold's properties are operated by other companies. Freehold is a member of the Canadian Association of Petroleum Producers (CAPP). We encourage our operators to participate and excel in the CAPP Stewardship Program by aligning their operations with industry best practices and communicating clearly that meeting or exceeding regulatory requirements is expected.

Freehold's operations are managed by Rife Resources Ltd., a private oil and gas company. Rife and Freehold share a comprehensive Environment, Health & Safety program that includes policies and procedures designed to protect the environment, the health and safety of its employees, contractors and the public. Rife assesses environmental, health and safety liabilities and exposure through pre-acquisition due diligence and regular site assessments and audits. Environmental, health and safety exposures are tracked and addressed with short and long term initiatives. These initiatives include comprehensive training programs for employees and contractors; a contractor management program; engineering and purchasing controls; spill & release control and mitigation; emergency preparedness; hazard and risk assessment; effective communication systems; internal audit and inspection programs; integrity management; and incident investigation.

Rife participates in the Alberta Human Resources and Employment's Partnerships in Health and Safety Program, and received a Certificate of Recognition (COR) after completing the required independent safety audit in 2006. Rife will continue to participate in the Partnerships program, which requires internal audits annually and an external audit every three years. Rife has also been awarded "Best Safety Performer" by WorkSafe Alberta for the past three years.

Greenhouse Gas Emissions

Rife particpates in the Canadian GHG Challenge Registry, Canada's only voluntary publicly-accessible national registry of greenhouse gas baselines, targets, and reductions. Rife was a Gold Champion Level Reporter in 2008.

Reclamation Fund

Freehold is liable for our share of ongoing environmental obligations and for the ultimate reclamation of working interest properties upon abandonment. We have no reclamation responsibilities on our royalty assets as these are the responsibility of the working interest owners. In 1996, we established a reclamation fund to ensure that required funds are available for future reclamation of working interest wells and facilities once they have reached the end of their economic life.