On the water recycling, any proposal to develop an oil sands project would have to undergo an environmental assessment. There would then be terms and conditions as part of the licence. Typically, there would be a water-use licence issued along with that, so that the companies would have to recycle water. At the moment, I believe 90% of water is recycled. Given that water is a finite resource, particularly in that part of the world, I think the level of recycling will simply have to increase. I don't think there's any way to develop the potential of the oil sands without increasing the recycling of water. As to how it will that happen, I think it will be through a combination of technological advance and regulation.
On October 19th, 2006. See this statement in context.