PEACE RIVER, Alta. - A new report says odours caused by oilsands processing in northwestern Alberta should be eliminated as much as possible because they could cause health problems.

The report from the Alberta Energy Regulator follows hearings into complaints from people near Peace River who say Baytex Energy's operations are creating powerful gassy smells.

The report says steps must be taken to eliminate gas venting, reduce flaring and conserve all produced gas where feasible.

Some families have moved away because of the odour.

Others have reported severe headaches, dizziness, sinus congestion, muscle spasms, popping ears, memory loss, numbness, constipation, diarrhea, vomiting, eye twitching and fatigue.

Calgary-based Baytex uses an unusual method of heating bitumen in above-ground tanks to extract oil.

Andrew Loosely, a Baytex spokesman, says the company is reviewing the report but accepts its main findings and is moving to install equipment to capture emissions from the tanks.