Resource extraction projects in frontier regions may give rise to many problems concerning their economic viability and also their impact on the environment. The mining and processing activity in the oil sands of Alberta is a case in point. This area comprises one of the largest reservoirs of oil in the world. Long-run supply considerations in both Canada and the rest of the world should lead to further development of these oil sands. However, a review of the first two projects reveals considerable economic and environmental uncertainty. The economics of the project currently under way are questionable mainly because of inflated costs on one hand and uncertain future oil prices on the other. Controversy has developed over aspects of the land, water, and atmospheric environmental impacts of the projects partly because development proceeded before extensive studies were done. All these concerns have led to uncertainty concerning future projects and also the price the people of Alberta and Canada will pay, in economic and environmental terms, for development in this area.