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Dear Sirs:
Re: Application for Approval of Athabasca Oil Sands Corp. MacKay River
Commercial Project
Athabasca Oil Sands Corp. (AOSC) is seeking scheme approval to development a bitumen recovery
project identified as the MacKay River Commercial Project (the Project or MRCP), located
approximately 30 km northwest of Fort McMurray in northeast Alberta. The Project will use steam
assisted gravity drainage (SAGD) technology and will be constructed in phases to reach an
ultimate design capacity of approximately 23,847 m3/d (approximately 150,000 barrels per day
(bpd)) of bitumen production.
• scheme approval to construct and operate a 23,847 m3/d (150,000 bpd) bitumen
recovery scheme with a first phase of 5,564 m3/d (35,000 bpd), under Section 10 of
the Oil Sands Conservation Act (OSCA); and
Alberta Environment (AENV) to:
• construct and operate a 23,847 m3/d (150,000 bpd) bitumen recovery scheme,
under Division 2 of Part 2 and Section 66 of the Environmental Protection and
Enhancement Act (EPEA);
• reclaim the Project, under Division 2 of Part 2 and Part 6 of the EPEA;
• divert groundwater from non-saline water aquifers for oil field injection purposes
under Section 50(1) of the Water Act;
• divert runoff surface water and a portion of a minor watercourse under
Section 50(1) of the Water Act.
In support of these approval requests, Athabasca Oil Sands Corp. submits the attached document
titled Application for Approval of the MacKay River Commercial Project. Please contact the
undersigned at (403) 532-7718 if you have any questions.
Sincerely,
Original Signed by
Jerry Demchuk
Manager, Regulatory and Stakeholder Affairs
Athabasca Oil Sands Corp.
th
Suite 2000, 250-6 Ave SW, Calgary, Alberta T2P 3H7 Phone: 403.237.8227 Fax: 403.264.4640 Email: info@aosc.com
_________________
APPLICATION FOR APPROVAL OF
THE MACKAY RIVER COMMERCIAL
PROJECT
SUBMITTED TO:
AND
ALBERTA ENVIRONMENT
SUBMITTED BY
December 2009
TABLE OF CONTENTS
SECTION PAGE
1 OVERVIEW..........................................................................................................................1-1
1.1 ATHABASCA OIL SANDS CORP. .............................................................................1-1
1.2 PROJECT OVERVIEW...............................................................................................1-2
1.3 PROJECT SCHEDULE ..............................................................................................1-7
1.4 PROJECT DESIGN ....................................................................................................1-9
1.4.1 Geology and Reservoir.................................................................................1-9
1.4.2 Surface Facilities ..........................................................................................1-9
1.5 REGIONAL INITIATIVES AND PUBLIC CONSULTATION......................................1-10
1.6 ENVIRONMENTAL IMPACT ASSESSMENT...........................................................1-11
1.7 PROJECT ALTERNATIVES .....................................................................................1-11
1.7.1 Technology Alternatives .............................................................................1-11
FIGURES
Figure 1.2-1 Project Location...................................................................................................1-4
Figure 1.2-2 Project Footprint ..................................................................................................1-5
Figure 1.2-3 Project Footprint - Satellite Image .......................................................................1-6
Figure 3.1-1 AOSC MacKay River Lease ................................................................................3-2
Figure 3.1-2 Geological Study Area .........................................................................................3-3
Figure 3.1-3 Oil Sands Lease Agreements in the GSA ...........................................................3-4
Figure 3.2-1 AOSC 2007-2008 Drilled Wells and Specialty Logs ............................................3-7
Figure 3.2-2 AOSC 2008-2009 Drilled Wells and Specialty Logs ............................................3-8
Figure 3.4-1 Stratigraphy Chart Precambrian to Clearwater..................................................3-14
Figure 3.4-2 Specific Cretaceous Stratigraphy ......................................................................3-15
Figure 3.4-3 Palaeozoic Top Structure ..................................................................................3-16
Figure 3.4-4 Mannville Group Isopach...................................................................................3-17
Figure 3.4-5 Type Well...........................................................................................................3-18
Figure 3.4-6 Mannville Group Top Structure..........................................................................3-19
Figure 3.4-7 McMurray Formation Isopach............................................................................3-20
Figure 3.4-8 McMurray Formation Top Structure...................................................................3-21
Figure 3.4-9 Middle McMurray Formation Isopach ................................................................3-22
Figure 3.4-10 Middle McMurray Formation Structure ..............................................................3-23
Figure 3.4-11 Upper McMurray Formation Isopach .................................................................3-24
Figure 3.4-12 Upper McMurray Formation Sand Isopach........................................................3-25
Figure 3.4-13 Clearwater Formation Top Structure .................................................................3-26
Figure 3.4-14 Clearwater Isopach............................................................................................3-27
Figure 3.4-15 Wabiskaw Member Top Structure .....................................................................3-28
Figure 3.4-16 Wabiskaw Member Isopach ..............................................................................3-29
Figure 3.4-17 Wabiskaw Member Shale Isopach ....................................................................3-30
Figure 3.4-18 Wabiskaw Member Sand Isopach .....................................................................3-31
Figure 3.4-19 Clearwater Formation Excluding Wabiskaw Member Isopach ..........................3-32
Figure 3.4-20 Grand Rapids Formation Isopach......................................................................3-33
Figure 3.4-21 Grand Rapids 5 Package Isopach .....................................................................3-34
Figure 3.4-22 Grand Rapids 4 Package Isopach .....................................................................3-35
Figure 3.5-1 Devonian Time Structure ...................................................................................3-38
Figure 3.5-2 Seismic Cross-Section A-A'...............................................................................3-39
Figure 3.5-3 Geological Cross-Section A-A' ..........................................................................3-40
Figure 3.5-4 Seismic Cross-Section B-B'...............................................................................3-41
Figure 3.7-1 Comparison of Core Analysis to Interpreted Log Data ......................................3-46
Figure 3.7-2 Net Pay Isopach ................................................................................................3-47
Figure 3.7-3 Regional Cross-Section C-C'.............................................................................3-48
Figure 3.7-4 Regional Cross-Section D-D’.............................................................................3-49
Figure 3.7-5 Regional Cross-Section E-E’ .............................................................................3-50
Figure 3.7-6 Regional Cross-Section F-F’ .............................................................................3-51
Figure 3.7-7 Top of Pay Structure..........................................................................................3-52
Figure 3.7-8 Base of Pay Structure........................................................................................3-53
Figure 3.7-9 Top of Pay Measured Depth..............................................................................3-54
Figure 3.8-1 Initial Drainage Patterns and Well Pair Placement ............................................3-57
Figure 3.8-2 Structural Cross-Section AA1-AA1' ...................................................................3-58
Figure 3.8-3 Structural Cross-Section AA2-AA2’ ...................................................................3-59
Figure 3.8-4 Structural Cross-Section AB-AB’ .......................................................................3-60
Figure 3.8-5 Structural Cross-Section AC-AC’.......................................................................3-61
Figure 5.3-5 Typical Buried Pipeline ROW Cross-Section – Disposal Wells .........................5-32
Figure 5.3-6 MNP Access and Utility Corridor ROW Cross-Section ......................................5-33
Figure 5.4-1 Hydrogeology Exploration .................................................................................5-43
Figure 5.4-2 Phase 1 Water Profile........................................................................................5-44
Figure 5.4-3 Full Development Water Profile .........................................................................5-45
Figure 5.4-4 Prairie Evaporite Isopach ..................................................................................5-46
Figure 5.4-5 Devonian Top to Keg River Isopach ..................................................................5-47
Figure 5.4-6 Devonian Structure............................................................................................5-48
Figure 5.4-7 Salt Dissolution Area .........................................................................................5-49
Figure 5.5-1 Conceptual Metering Schematic........................................................................5-51
Figure 8.2-1 Footprint and Terrestrial Local Study Area ..........................................................8-4
Figure 8.4-1 Baseline Land Capability for Forest Ecosystems – Terrestrial Local Study
Area ...................................................................................................................8-12
Figure 8.5-1 Plan View of Typical SAGD well pad .................................................................8-35
Figure 8.5-2 Conceptual Access, Pipeline and Powerline Common ROW on Upland...........8-36
Figure 8.5-3 Conceptual Construction & Reclamation of Well Pad on Peatland ...................8-37
Figure 8.5-4 Post-Reclamation Ecological Land Classification – Terrestrial Local Study
Area ...................................................................................................................8-38
Figure 8.5-5 Post Reclamation Land Capability for Forest Ecosystems – Terrestrial
Local Study Area ...............................................................................................8-39
TABLES
Table 1.3-1 Proposed Project Schedule .................................................................................1-8
Table 1.4-1 Full Development Production and Process Rates .............................................1-10
Table 3.1-1 Oil Sands Lease Agreements Within the GSA ....................................................3-1
Table 3.5-1 3D Seismic Acquisition Parameters ..................................................................3-36
Table 3.6-1 MacKay River Asset Facies Summary ..............................................................3-43
Table 3.7-1 Upper McMurray Member Net Pay Cut-Offs......................................................3-45
Table 3.7-2 Pay Interval Reservoir Parameter Characteristics within the IDA......................3-45
Table 3.8-1 Initial Drainage Patterns ....................................................................................3-56
Table 3.12-1 Single SAGD Well Pair Forecast .......................................................................3-91
Table 5.1-1 MCP Process and Storage Tanks .......................................................................5-6
Table 5.1-2 Chemical Consumption Estimates.......................................................................5-8
Table 5.1-3 Project Energy Balance .......................................................................................5-9
Table 5.2-1 MNP Process and Storage Tanks .....................................................................5-21
Table 5.4-1 Phase 1 Water Use Profile ................................................................................5-38
Table 5.4-2 Full Development Water Use Profile .................................................................5-40
Table 6.3-1 Greenhouse Gas Emissions Summary ...............................................................6-6
Table 6.3-2 Greenhouse Gas Emission Intensity Comparison to Other Similar Projects .......6-7
Table 6.3-3 Greenhouse Gas Emission Comparison to Provincial and National Totals.........6-7
Table 6.4-1 Waste Types and Quantities .............................................................................6-11
Table 6.4-2 Chemical Products ............................................................................................6-13
Table 6.6-1 Emission Scenarios Selected for Alberta ..........................................................6-15
Table 7.7-1 Consultation and Engagement Summary ............................................................7-5
Table 7.8-1 Mitigation Summary ...........................................................................................7-10
Table 8.2-1 Areal Extent of Project Facilities ..........................................................................8-2
Table 8.3-1 Applicable Reclamation Guideline Documents....................................................8-6
Table 8.4-1 Main Soil Series Mapped within the Project Footprint .........................................8-9
Table 8.4-2 Areas of Main Soil Series Mapped within the Footprint by Project
Component (ha).................................................................................................8-10
Table 8.5-1 Mineral Soil Characteristics Related to Upland Soil Salvage ............................8-17
Table 8.5-2 Upland (Mineral Soil) Topsoil Salvage Guidelines.............................................8-17
Table 8.5-3 Peat Thickness on Organic Soil Series .............................................................8-18
Table 8.5-4 Topsoil Salvage Volumes for the Project...........................................................8-20
Table 8.5-5 Subsoil Salvage Volumes for the Project ..........................................................8-21
Table 8.5-7 Planting Prescriptions for Upland Target Ecosite Types ...................................8-29
Table 8.5-8 Summary of Changes to Land Capability Classification for Forest
Ecosystems in the Terrestrial LSA ....................................................................8-32
APPENDICES
APPENDIX A CONCORDANCE TABLES
1 OVERVIEW
Athabasca Oil Sands Corp. (AOSC) is a Canadian company operating in northeastern
Alberta. AOSC is proposing the development of a bitumen recovery project identified as
the MacKay River Commercial Project (the Project or MRCP), located approximately 30
km northwest of Fort McMurray in northeast Alberta. The Project will use steam assisted
gravity drainage (SAGD) technology and will be constructed in phases to reach an
ultimate design capacity of approximately 23,847 m3/d (approximately 150,000 barrels
per day (bpd)) of bitumen production.
Construction of Phase 1 of the Project is anticipated to begin in the first quarter of 2012,
with initial steam injection in the third quarter of 2014. The Project will recover an
estimated 270 million m3 (1.7 billion barrels) of bitumen over its projected 45 year life. It
is anticipated that reclamation of the Project will be complete by 2064.
scheme approval to construct and operate a 23,847 m3/d (150,000 bpd) bitumen
recovery scheme with a first phase of 5,564 m3/d (35,000 bpd), under Section 10
of the Oil Sands Conservation Act (OSCA); and
construct and operate a 23,847 m3/d (150,000 bpd) bitumen recovery scheme,
under Division 2 of Part 2 and Section 66 of the Environmental Protection and
Enhancement Act (EPEA);
reclaim the Project, under Division 2 of Part 2 and Part 6 of the EPEA;
divert groundwater from non-saline water aquifers for oil field injection purposes
under Section 50(1) of the Water Act;
divert runoff surface water and a portion of a minor watercourse under Section
50(1) of the Water Act.
This document (Application for Approval of the MacKay River Commercial Project)
serves to meet requirements under the OSCA and EPEA and follows the Guide to
Preparing Environmental Impact Assessment Reports in Alberta (the EIA Guide) (AENV,
2009a). The Application is provided as part of the Integrated Application to the ERCB
and AENV as outlined in the ERCB/AENV Memorandum of Understanding on the
Regulation of Oil Sands Developments (IL 96-07; ERCB 1996c).
AOSC is a Canadian company which was incorporated in 2006 and is focused on in-situ
oil sands development. AOSC holds a number of oil sands leases in northeastern
Alberta, and will maximize the value of its energy resources while becoming a valued
partner in the communities in which it operates.
The Project is located within the Regional Municipality of Wood Buffalo (RMWB) in
northeast Alberta, approximately 30 km northwest of Fort McMurray (Figure 1.2-1). The
Project oil sands leases (the MacKay River lease) are located within Townships 87 to
93, Ranges 11 to 16, W4M. The Project will use steam assisted gravity drainage
(SAGD) technology.
SAGD is a thermal production method for heavy oil and bitumen that pairs a horizontal
injection well with a horizontal production well drilled along a parallel trajectory. Multiple
well pairs are drilled from individual SAGD well pads to minimize surface disturbance.
The Project will be developed with a phased construction strategy with an ultimate
design capacity of 23,847 m3/d (150,000 bpd) of bitumen production. Over the operating
life of the Project, one central processing facility (the MacKay River Central Plant (MCP))
and an additional remote steam generation facility (the MacKay River North Plant
(MNP)) will be required.
The MCP will be constructed in multiple phases. Phase 1 of the MCP will include
clearing, site preparation, and construction of the required Project infrastructure to
support a bitumen production rate of 5,564 m3/d (35,000 bpd).
Over time, production rates from initial wells will decline. In order to maintain production
volumes, additional SAGD wells will be drilled. As development proceeds to the north
portion of the MacKay River lease, a remote steam generation facility (MNP) will be
constructed to serve the wells in the area. The MNP will generate sufficient steam to
produce 9,539 m3/d (60,000 bpd) of bitumen. All of the bitumen and water produced at
the MNP will be sent to the MCP for treatment. Treated boiler feedwater (BFW) from the
MCP will be sent to the MNP through an interconnecting pipeline. When the MNP is
operational, the MCP will continue to process up to 23,847 m3/d (150,000 bpd). It is
anticipated that the MNP will be constructed approximately 5 years after startup of
Phase 4.
The MCP and associated facilities including soil stockpiles and electrical substations will
occupy approximately 76 ha in 90-14 W4M. The main components of the MCP will
include makeup water treatment, steam generation, cogeneration, vapour recovery,
bitumen treating, produced gas recovery, produced water recycling, tankage and utilities.
The MNP will occupy approximately 15 ha in 91-15 W4M. The main components of the
MNP will include steam generation and produced gas recovery. The MNP will also
include a booster pump station.
Field facilities for the Project include SAGD well pads, source water, disposal and salt
cavern wells, drilling sumps and camps, borrow areas, access roads, pipelines and utility
corridors. Access to the Project will be via a short addition from the proposed AOSC
MacKay River Pilot Road (Figure 1.2-1).
The proposed surface components of the Project infrastructure are defined as the
Project Area (the footprint; Figures 1.2-2 and 1.2-3). Engineering, operations and
environmental teams collaborated on the design of the Project to maximize energy
efficiency and minimize environmental effects. The Project Area was superimposed on
mapping systems that incorporate environmental information. An analysis was then
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Disclaimer:
EXISTING PIPELINE CORRIDOR Prepared solely for the use of AOSC. as specified in the accompanying
report. No representation of any kind is made to other parties with which
POWERLINE
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PROJECT FOOTPRINT
Ed mon ton
The Project will be developed in four phases (Table 1.3-1). The anticipated timeline for
the full development is as follows:
2009
2010
2011
2012
2013
2014
2015
1016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
Task
Regulatory Approval
Phase 1 Construction
Phase 1 Operations
Phase 2 Construction
Phase 2 Operations
Phase 3 Construction
Phase 3 Operations
Phase 4 Construction
Phase 4 Operations
MNP Construction
MNP Operations
Sustaining Pad Development
Public Consultation
AOSC has conducted extensive subsurface exploration activities throughout its MacKay
River lease. The Project will use SAGD technology to produce bitumen from the upper
member of the McMurray Formation Phase 1 will initially include the drilling of 46 well
pairs from 10 surface pads to produce bitumen up to a rate of 5,564 m3/d (35,000 bpd).
Over the life of the Project, development will include approximately 1,000 well pairs from
approximately 200 surface pads to support and sustain the bitumen production design
capacity of 23,847 m3/d (150,000 bpd). The Project will recover an estimated 270 million
m3 (1.7 billion barrels) of bitumen over its projected 45 year life.
Water treatment;
Steam generation;
Bitumen treatment;
Produced water de-oiling;
Produced gas recovery;
Cogeneration;
Tankage;
Glycol system;
Flare system; and
Utilities.
The anticipated production and process for the Project on a calendar day basis and a
stream day basis are presented in Table 1.4-1. Unless otherwise indicated all
production and process rates presented throughout this document are presented on a
calendar day basis.
AOSC also recognizes the value of the various multi-stakeholder groups in place to
ensure sustainable growth within the oil sands. Based on this, AOSC is currently a
member of the Oil Sands Development Group (OSDG) and will be joining Cumulative
Environmental Management Association (CEMA) in 2010. AOSC is also evaluating its
potential participation level in the Wood Buffalo Environmental Association (WBEA).
Under Alberta Regulation 276/2003, Activities Designation Regulation, the scope of the
Project meets the criteria set out in Schedule 1 and is, therefore, designated as an
activity for which an approval is required under the EPEA. Under Alberta Regulation
111/93, Environmental Assessment (Mandatory and Exempted Activities) Regulation,
the scope of the Project meets the criteria of a mandatory activity for which an
Environmental Impact Assessment (EIA) is required to obtain an approval under the
EPEA.
AOSC has prepared an EIA that follows the AENV Guide to Preparing Environmental
Impact Assessment Reports in Alberta (AENV 2009a) and addresses the Terms of
Reference (TOR) established for the Project EIA by AENV (Volume 2, Appendix 1A). A
summary of the EIA is presented in Section 9.
Within the MacKay River lease, the overburden thickness to the base of the bitumen
bearing resource varies from 160 to 220 m (measured depth) with net pay thicknesses
up to 32 m. Due to the depth of the resource, surface mining at this location is not an
alternative for the resource recovery. This resource is currently only recoverable using
in-situ recovery methods.
AOSC has evaluated other in-situ recovery methods and believes that SAGD is the
appropriate technology since it has been proven to be commercially viable.
Proceeding with the Project will contribute to the Canadian hydrocarbon supply and
provide economic and social benefits to local communities and to municipal, provincial
and federal government. The timing of the Project is consistent with AOSC’s corporate
development strategy for its oil sands leases and necessary to meet seasonal and
environmental construction windows.
During development of the Project design, AOSC conducted studies to evaluate the
following alternatives.
Disposal water rates and makeup water demand are typically evaluated by comparing
Project capital and operating costs for the various alternatives. Traditional lime softening
technology commonly used with OTSGs typically generates a blowdown stream from the
steam separators of approximately 25% of the input stream and also generates lime
sludge waste. Most, or all, of the steam separator blowdown is typically sent to a
disposal well. Lime sludge is typically separated and sent to a landfill.
The use of an evaporator eliminates lime sludge ponds associated with lime softening
technology. The Project design also results in less disposal, higher water utilization
efficiency, and reduced makeup water demand.
Evaporators as the primary water treatment technology which results in very high
recycle rates; and
AOSC has chosen not to incorporate driers, which are costly, energy intensive, have a
poor operating reliability and do not result in additional water conservation.
To date, no existing scheme approvals have been obtained within the AOSC MacKay
River lease. AOSC has submitted regulatory applications for two pilot-scale oil sands
recovery projects in the Fort McMurray area. The Dover Central Pilot Project is
designed to recover bitumen at a rate of up to 318 m3/d (2,000 bpd) from a facility
located in 94-17 W4M. The MacKay River Pilot Project is designed to recover bitumen
at a rate of up to 350 m3/d (2,200 bpd) from a facility located in 90-14 W4M. Regulatory
approval of these projects is anticipated in Q4 2009.
AOSC has been conducting oil sands exploration (OSE) activities yearly since 2006. All
appropriate approvals have been obtained from Alberta Environment (AENV), the
Energy Resources Conservation Board (ERCB) and Alberta Sustainable Resources
Development (ASRD).
scheme approval to construct and operate a 23,847 m3/d (150,000 bpd) bitumen
recovery scheme with a first phase of 5,564 m3/d (35,000 bpd), under Section 10
of the Oil Sands Conservation Act (OSCA); and
construct and operate a 23,847 m3/d (150,000 bpd) bitumen recovery scheme,
under Division 2 of Part 2 and Section 66 of the Environmental Protection and
Enhancement Act (EPEA);
reclaim the Project, under Division 2 of Part 2 and Part 6 of the EPEA;
divert groundwater from non-saline water aquifers for oil field injection purposes
under Section 50(1) of the Water Act;
divert runoff surface water and a portion of a minor watercourse under Section
50(1) of the Water Act.
This application was prepared to satisfy the requirements for joint ERCB and AENV
approval as described in ERCB Directive 023 - Guidelines Respecting an Application for
a Commercial Crude Bitumen Recovery and Upgrading Project (ERCB 1991), A Guide
to Content for Industrial Approval Applications (AENV 1999), and the Final TOR for the
Project EIA, issued by AENV on July 30, 2009. A copy of the final TOR is presented in
Volume 2, Appendix 1A. Concordance tables for these three documents are presented
in Appendix A.
Jerry Demchuk
Manager, Regulatory and Stakeholder Affairs
Athabasca Oil Sands Corp.
Suite 2000, 250 - 6 Avenue SW
Calgary, Alberta T2P 3H7
www.aosc.com
AOSC will also file applications for different aspects of the Project under various other
statutes. The approval requirements applicable to the Project that will be submitted
under separate cover include, but are not limited to:
In February 2009, the ERCB and AENV jointly issued Draft Directive - Requirements for
Water Measurement, Reporting and Use for Thermal Insitu Oil Sands Schemes (2009).
Section 7 of the draft directive prescribes certain limits for non-saline make-up water on
a calendar year basis. At the time of filing this Application, the draft directive has not
been finalized and is not in force. However, based on the Project water requirements,
and assuming the draft directive becomes applicable to the Project, AOSC would require
a relaxation on the maximum limit of non-saline makeup water (10%) on a calendar year
basis for Phase 1. Section 5.4 of this Application provides AOSC’s justification for such
relaxation based upon the requirements set out in the draft directive.
The applications for approval to ERCB and AENV have been integrated in accordance
with the ERCB and AENV Memorandum of Understanding on the Regulation of Oil
Sands Developments (IL 96-07) to facilitate an efficient review of the application by
regulators and the public. This integrated application is presented in five volumes:
Volume 1: Application;
Volume 2: EIA Methodology and Air Quality, Noise and Health;
Volume 3: Aquatic Resources;
Volume 4: Terrestrial Resources; and
Volume 5: Human Environment.
Phase 1 of the Project is located within the geological study area (GSA), which includes
57 sections in Townships 89, 90 and 91 and Ranges 13 and 14 W4M, covering a
combined area of 14,763 ha or 147.63 km2 (Figure 3.1-2). This also includes the initial
development area (IDA) in which the initial 46 well pairs will be placed for Phase 1. The
IDA spans six oil sands leases (Figure 3.1-3). The oil sands leases cover a stratigraphic
interval spanning the top Cretaceous Viking Formation to the base Devonian Woodbend
Group. The target oil sands reservoir is the Lower Cretaceous McMurray Formation.
T92
T91
T90
T89
T88
F:\7349 AOSC\Drafting\2009\MacKAY RIVER EIA\7349-EIA-GSA-09.cdr
T87
R16 R15 R14 R13 R12 R11W4
LEGEND
AOSC MACKAY ASSET BOUNDARY
1:300,000
AOSC GSA AREA BOUNDARY 5 0 5
G G G G G
G
G G
G G
G
G G G
G G
G
G G
G
G G
G G G G G
C GG G
GG S G T90
G G
G G G G G
G
G G
G G G
G
G G G G
G G G G G
G
G
G
C G G G
G
G G
G G G
G
G G
G
G G G
G
T89
F:\7349 AOSC\Drafting\2009\MacKAY RIVER EIA\7349-EIA-GSA-09.cdr
R14W4 R13W4
LEGEND
AOSC MACKAY ASSET BOUNDARY
1:80,000
AOSC GSA AREA BOUNDARY 1 0 1
S
Project Code: Technical: Date:
TYPE WELL 1AA/14-14-090-14 W3/00 7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
WELL LEGEND l RS 09/10/16 GS 09/10/15
Reference:
GEOLOGICAL STUDY
A Location C Suspended
D Service or Drain F Gas
Calgary
l AREA
G Dry & Abandoned H Heavy Oil Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
K Suspended Gas M Abandoned Service in the accompanying report. No representation of any kind is made to
S Injection other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 3.1-2
G G G G G T91
G
G
G G G G G
G G
7407070553
G G G G G
G
G G
G G
7406080068 G 7407080540
G G G
G G
G
G G
G
G G
G
7407070289 7407070286
G G G G
C GG G
GG G T90
G G
7407080537 7407090344
7407070288
7407080539
G G G G G
G
G G
G G G
G
G G
7407080538 7408050715 G G
G G G G G
G 7407080536
G
G
C G G G
7407010566
G
G G
G G G
7407090423
G
G
G 7407010567 G
G 7407070283
G G
7407010565
G
T89
F:\7349 AOSC\Drafting\2009\MacKAY RIVER EIA\7349-EIA-GSA-09.cdr
R14W4 R13W4
LEGEND
AOSC MACKAY ASSET BOUNDARY
AOSC GSA AREA BOUNDARY 1:80,000
1 0 1
AOSC PHASE 1 INITIAL DEVELOPMENT AREA
AOSC 3D SEISMIC
Peace River
l
« l
Fort McMurray
Kilometers
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
740####### OIL SANDS LEASE AGREEMENT NUMBER Project Code: Technical: Date:
7349-514 BF 09/10/15
OIL SANDS LEASE AGREEMENT BOUNDARY Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 GS 09/10/15
Reference:
WELL LEGEND OIL SANDS LEASE
A Location C Suspended
Calgary
The GSA contains 71 stratigraphic delineation wells that penetrate the McMurray
Formation, 41 of which were cored. AOSC drilled 66 of the 71 delineation wells. The
oldest strata penetrated by the delineation wells is the Devonian Beaverhill Lake Group.
In addition to the delineation wells, a total of seven water wells were drilled by AOSC in
the winter of 2008/2009.
Prior to 2007 Suncor Energy (formerly Petro-Canada) and Imperial Oil drilled within the
GSA:
2007/2008 AOSC winter program within the GSA (Figure 3.2-1) comprised:
2008/2009 AOSC winter program within the GSA (Figure 3.2-2) comprised:
All delineation wells drilled by AOSC have a full suite of standard petrophysical logs
including:
The 2007/2008 drilling campaign of 35 wells resulted in an increased well density to 0.7
wells per section within the GSA. The 2008/2009 drilling campaign added an additional
31 wells within the GSA resulting in a further increase of well density to 1.2 wells per
section. The total number of specialty logs acquired within the GSA included 16
resistivity image logs, eight dipole sonic logs and five pressure tests.
Within the Phase 1 IDA, there are 18 delineation wells. The IDA is equivalent to
approximately 2 sections (approximately 5.2 km2), amounting to a well density of 9 wells
per section. 3-D three-component seismic data were acquired in 2009 (Figure 3.2-2).
T90
T89
F:\7349 AOSC\Drafting\2009\MacKAY RIVER EIA\7349-EIA-GSA-09.cdr
R14W4 R13W4
LEGEND
AOSC MACKAY ASSET BOUNDARY
1:80,000
AOSC GSA AREA BOUNDARY 1 0 1
T90
T89
F:\7349 AOSC\Drafting\2009\MacKAY RIVER EIA\7349-EIA-GSA-09.cdr
R14W4 R13W4
LEGEND
AOSC MACKAY ASSET BOUNDARY
1:80,000
AOSC GSA AREA BOUNDARY 1 0 1
E AOSC 2008-2009 LOGGED AND CORED WELLS(21) Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 GS 09/10/15
AOSC 2008-2009 RESISTIVITY IMAGE LOG(8)
H Reference: AOSC 2008-2009 DRILLED
H AOSC 2008-2009 DIPOLE SONIC LOG(1) Calgary
l
WELLS AND SPECIALTY
H 2008-2009 PRESSURE TEST LOG(5)
Disclaimer: LOGS
E 2007-2008 WATER TEST WELLS(7) Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
G ALL WELLS other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 3.2-2
MacKay River Commercial Project 3-9 Geology and Reservoir
December 2009
As discussed in Section 3.2, a suite of high-resolution wire-line logs and cores over the
reservoir interval was acquired in the GSA in order to evaluate reservoir quality and
associated degree of lateral and vertical reservoir homogeneity. Cores were obtained to
provide detailed information on reservoir facies, determine environments of deposition
and establish vertical reservoir characterization details. Core analyses were conducted
to evaluate reservoir porosity, bitumen saturation and grain density, as well as vertical
and horizontal permeability of the McMurray interval. Bitumen saturations calculated
from the well-log data were reconciled with the core-derived Dean Stark bitumen
saturations. The reconciliation of the core-derived bitumen saturations with the well-log
derived bitumen saturations facilitated the computation of well-log bitumen saturations in
non-cored wells. The same approach was carried out for the porosity data. Pairs of
overburden plugs were cut to determine horizontal and vertical permeabilities within
various reservoir lithofacies.
Shale volume was estimated from the combined evaluation of the gamma ray,
compensated neutron and bulk density well-log traces. Effective porosity was calculated
by adjusting the neutron-density cross-plot porosity for the effects of shale.
The well-log, core analysis and facies information was integrated into a Petrel reservoir
model. The reservoir model was used for volumetric determination, future well planning
and development purposes as well as for reservoir characterization within the Phase 1
IDA. The results of this model are presented in detail in Section 3.12.
The stratigraphic framework of the GSA covers Precambrian to Quaternary strata. The
general stratigraphy of the GSA is depicted on Figure 3.4-1 and Figure 3.4-2. Within the
GSA, no well data exists for formations deeper than the top few metres of strata beneath
the Pre-Cretaceous unconformity. Consequently, geological details of the Pre-
Cretaceous section are inferred from regional well information.
The stratigraphy can be broadly divided into four systems: Precambrian, Devonian,
Cretaceous and Quaternary. The Precambrian forms a crystalline basement which is
located between 210 and 260 m below sea level (mbsl) and dips to the west-southwest.
It is erosionally overlain by arkosic sediments of the La Loche Formation. Above the La
Loche Formation are Middle and Upper Devonian strata which are dominated by
carbonates, evaporites and shale. These strata comprise the Elk Point, Beaverhill Lake
and the Woodbend groups and range in thickness from 490 m to the east of the GSA to
over 550 m in the west. The Mannville Group unconformably overlies the Palaeozoic
strata. The Pre-Cretaceous unconformity surface varies from 270 to 295 m above sea
level (masl) across the GSA (Figure 3.4-3).
Quaternary sands, gravels and clays. The strata of the Mannville Group dip towards the
west-southwest. The preserved Mannville Group thickness varies from 128 to 178 m
(Figure 3.4.4). The top of the Mannville Group is difficult to pick with certainty on well
logs as it is most often behind casing. For this reason, minimum thicknesses and
structural elevations are given for the top of the Mannville Group and top of the Grand
Rapids 4 sand package. Each stratigraphic interval is described in more detail below.
The Contact Rapids Formation consists of argillaceous dolostone and shale. It ranges
from 95 to 110 m in thickness, varies from 245 mbsl to 185 mbsl, and dips to the west.
This interval is overlain by the Keg River Formation which consists of dolostone. It
varies from 160 to 100 mbsl, and dips to the west. Thickness varies from 65 m just west
of the GSA to 77 m to the east. The Keg River interval will be explored for potential as a
disposal water zone during the winter 2009/2010 drilling program (Section 5.4.5). The
Prairie Evaporite Formation overlies the Keg River Formation and consists of a series of
interbedded anhydrites and halites. It dips generally to the southwest, and varies from 65
mbsl to 135 mbsl. It reaches a thickness of 245 m to the northwest of the GSA,
decreasing to 220 m to the southeast. The Watt Mountain Formation is a thin, dolomitic
shale that varies from 45 masl to 125 masl and dips to the southwest. It varies in
thickness from 7.5 m to approximately 10 m.
The Cretaceous sedimentary package is composed of the Mannville Group in the GSA
(Figures 3.4-1 and 3.4-2) and is illustrated by the type well presented on Figure 3.4-5.
McMurray Formation
In the GSA, the McMurray Formation is composed of middle and upper members. The
lower member of the McMurray Formation is absent in the GSA. The McMurray
Formation ranges in thickness from 21 to 33 m, averaging 25 m (Figure 3.4-7). The
McMurray Formation thickness trend is predominately controlled by the underlying Pre-
Cretaceous unconformity surface. A thicker McMurray succession is attributed to
deposition within structural lows on the Pre-Cretaceous surface. The top of the
McMurray Formation varies in structure from 303 masl to 317 masl across the GSA
(Figure 3.4-8). The top McMurray structural trend exhibits a northwest-southeast
elongated high located above the main reservoir fairway. The structural high may be a
result of compactional drape effects between the main reservoir and surrounding more
argillaceous sediments.
The upper McMurray member contains the main reservoir sands, and erosively overlies
the middle McMurray heterolithic deposits. The upper McMurray member deposits are
very clean and continuous sands over the Phase 1 IDA. The gross thickness ranges
between 22 and 27 m (Figure 3.4-11). This interval forms a northwest-southeast
trending sand package with a mean gross sand thickness of 25 m (Figure 3.4-12). The
similarity in thicknesses in the upper McMurray member isopach map and the gross
sand map highlight the dominance of sand.
The upper McMurray member deposits were likely formed in a mixed tide-wave
dominated delta and form long, linear sand bars. Preservation resulted in vertically
stacked compound bar features with individual bars forming coarsening-upward and
cleaning-upward cycles. The reservoir homogeneity also has a preferred northwest-
southeast trend. Additional details regarding reservoir sedimentology and reservoir
characterization are presented in Section 3.6 and Section 3.7.
The erosional surface between the upper to middle McMurray members may be the
result of an incision or tidal ravinement event leading to the removal of much of the
middle McMurray member and the deposition of the cleaner upper McMurray member
fill, preferentially deposited along the axis of deepest erosion.
Clearwater Formation
The McMurray Formation is disconformably overlain by an argillaceous interval of silts,
muds and occasional thin sands that comprise the Clearwater Formation. The
Clearwater Formation is conformably overlain by the Grand Rapids Formation.
The top of the Clearwater Formation varies from 380 masl to 390 masl in the GSA
(Figure 3.4-13). Although subtle, the top Clearwater Formation structure map exhibits a
northwest-southeast high trend over the upper McMurray member reservoir sands. The
Clearwater Formation is quite uniform in thickness varying from 70 m to 77 m
(Figure 3.4-14). Some carbonate nodules are also apparent in this argillaceous interval.
A thin sandy, muddy and glauconite-rich interval at the base of the Clearwater Formation
is referred to as the Wabiskaw Member. The Wabiskaw Member represents initial
sedimentation in response to the regional southward transgression of the Boreal Sea.
The top of the Wabiskaw Member varies from 314 masl to 328 masl (Figure 3.4-15) and
ranges from 6 to 16 m in thickness, averaging 10 m (Figure 3.4-16). This interval
thickens to the northwest. The Wabiskaw Member comprises both basal shales and
overlying sands that are regionally correlatable. A basal shale of approximately 3 to 8 m
in thickness (Figure 3.4-17) directly overlies the McMurray Formation in the GSA. This
basal shale interval consists of laminated, dark-grey, silty clayshale with zones of
moderate to abundant small-sized trace fossils including Chondrites, Planolites,
Teichichnus, Phycosiphon and Cosmorhaphe. There are also rare laminae of light-grey
bioturbated silt. Some silt beds and laminae are sharp-based and normally-graded. The
shales are widespread, exhibit no evidence of having been deposited above fair-weather
wave-base, and based on the trace fossil suite and glauconite, are believed to have
been deposited in an offshore marine to distal prodelta palaeodepositional environment.
The Wabiskaw marine shales are sharply and erosively overlain by Glossifungites-
based, intensely bioturbated, muddy sand of the Wabiskaw Member that forms a
cleaning-upward cycle. This sand may be bitumen-bearing with bitumen saturations of
up to 58% and thickens from less than 1 m in the southeast of the GSA to 10 m in the
northwest (Figure 3.4-18). The sands exhibit moderate reservoir quality in the thickest
areas, but become thinner and are of poorer reservoir quality towards the southeast.
The sand is lower-very-fine grained, contains a moderate amount of mud and exhibits
dominantly Diplocraterion, Rosselia and Asterosoma trace fossils. This interval is
interpreted as a forced regressive shoreface or distal delta-front lobe succession.
The structural top of the Grand Rapids Formation varies from 408 masl to 463 masl,
dipping mostly to the west-northwest (Figure 3.4-6). The total thickness of the formation
within the GSA shows a general thinning trend toward the north from 76 m in the south
to 25 m in the north (Figure 3.4-20). Regionally, the Grand Rapids Formation is
composed of four coarsening-upwards cycles. The four regressive sand cycles are
referred to as sand packages 5,4,3 and 2 in ascending stratigraphic order. Within the
GSA, the formation comprises only two cleaning-upward regressive cycles; the older
Grand Rapids 5 package and the younger Grand Rapids 4 package. The Grand
Rapids 5 package thickens from 12 m to 42 m toward the southeast, whereas the Grand
Rapids 4 package thickens from approximately 12 m in the north-northwest to 36 m in
the south-southeast portion of the GSA (Figures 3.4-21 and Figure 3.4-22). The
stratigraphic definition of Grand Rapids 4 sand package presents some difficulties in
mapping as the unit is often present behind casing resulting in uncertainty in picking the
top on well logs.
The Quaternary sediments are described in more detail in the Hydrogeology section of
the EIA (Volume 3, Section 5). They consist of a mixture of unconsolidated sands, muds
and conglomerates that were formed in glaciofluvial environments.
LEGEND
SAND
CARBONATE
Peace River
l
«
l
Fort McMurray O I L S A N D S C O R P.
ANHYDRITE
Project Code: Technical: Date:
7349-514 BF 09/10/15
MUDSTONE Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 GS 09/10/15
LEGEND
SAND
UNDIFFERENTIATED
Peace River
l
«
l
Fort McMurray O I L S A N D S C O R P.
MUDSTONE
Project Code: Technical: Date:
7349-514 BF 09/10/15
CARBONATE Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 GS 09/10/15
Reference:
SILT SPECIFIC CRETACEOUS
Calgary
l STRATIGRAPHY
Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 3.4-2
F:\7349 AOSC\Drafting\2009\Mackay River EIA\7349-EIA-STR-09.cdr
LEGEND
AOSC MACKAY ASSET BOUNDARY
AOSC GSA AREA BOUNDARY 1:125,000
2 0 2
AOSC PHASE 1 INITIAL DEVELOPMENT AREA
SUBJECT WELL LOCATION Peace River
l
«
l
Fort McMurray
Kilometers
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
278 CONTOUR INTERVAL 4.0 m (masl)
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
WELL LEGEND l RS 09/10/16 GDE 09/10/15
Reference: PALAEOZOIC TOP
A Location C Suspended
D Service or Drain F Gas Calgary STRUCTURE
l
G Dry & Abandoned H Heavy Oil Disclaimer:
K Suspended Gas M Abandoned Service Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
S Injection
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 3.4-3
F:\7349 AOSC\Drafting\2009\Mackay River EIA\7349-EIA-ISO-09.cdr
LEGEND
AOSC MACKAY ASSET BOUNDARY
AOSC GSA AREA BOUNDARY 1:125,000
2 0 2
AOSC PHASE 1 INITIAL DEVELOPMENT AREA
SUBJECT WELL LOCATION Peace River
l
«
l
Fort McMurray
Kilometers
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
150 CONTOUR INTERVAL 5.0 m (masl)
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
WELL LEGEND l RS 09/10/16 GDE 09/10/15
Reference: MANNVILLE GROUP
A Location C Suspended
D Service or Drain F Gas Calgary ISOPACH
l
G Dry & Abandoned H Heavy Oil Disclaimer:
K Suspended Gas M Abandoned Service Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
S Injection
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 3.4-4
F:\7349 AOSC\Drafting\2009\MacKAY RIVER EIA\7349-EIA-GSA-09.cdr
Peace River
l
«
l
Fort McMurray O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 GS 09/10/15
Reference:
LEGEND
AOSC MACKAY ASSET BOUNDARY
AOSC GSA AREA BOUNDARY 1:125,000
2 0 2
AOSC PHASE 1 INITIAL DEVELOPMENT AREA
SUBJECT WELL LOCATION Peace River
l
«
l
Fort McMurray
Kilometers
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
440 CONTOUR INTERVAL 5.0 m (masl)
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
WELL LEGEND l RS 09/10/16 GDE 09/10/15
Reference: MANNVILLE GROUP
A Location C Suspended
D Service or Drain F Gas Calgary TOP STRUCTURE
l
G Dry & Abandoned H Heavy Oil Disclaimer:
K Suspended Gas M Abandoned Service Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
S Injection
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 3.4-6
F:\7349 AOSC\Drafting\2009\Mackay River EIA\7349-EIA-ISO-09.cdr
LEGEND
AOSC MACKAY ASSET BOUNDARY
AOSC GSA AREA BOUNDARY 1:125,000
2 0 2
AOSC PHASE 1 INITIAL DEVELOPMENT AREA
SUBJECT WELL LOCATION Peace River
l
«
l
Fort McMurray
Kilometers
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
24 CONTOUR INTERVAL 2.0 m (masl)
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
WELL LEGEND l RS 09/10/16 GDE 09/10/15
Reference: McMURRAY FORMATION
A Location C Suspended
D Service or Drain F Gas Calgary ISOPACH
l
G Dry & Abandoned H Heavy Oil Disclaimer:
K Suspended Gas M Abandoned Service Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
S Injection
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 3.4-7
F:\7349 AOSC\Drafting\2009\Mackay River EIA\7349-EIA-STR-09.cdr
LEGEND
AOSC MACKAY ASSET BOUNDARY
AOSC GSA AREA BOUNDARY 1:125,000
2 0 2
AOSC PHASE 1 INITIAL DEVELOPMENT AREA
SUBJECT WELL LOCATION Peace River
l
«
l
Fort McMurray
Kilometers
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
306 CONTOUR INTERVAL 2.0 m (masl)
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
WELL LEGEND l RS 09/10/16 GDE 09/10/15
Reference: McMURRAY FORMATION
A Location C Suspended
D Service or Drain F Gas Calgary TOP STRUCTURE
l
G Dry & Abandoned H Heavy Oil Disclaimer:
K Suspended Gas M Abandoned Service Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
S Injection
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 3.4-8
F:\7349 AOSC\Drafting\2009\Mackay River EIA\7349-EIA-ISO-09.cdr
LEGEND
AOSC MACKAY ASSET BOUNDARY
AOSC GSA AREA BOUNDARY 1:125,000
2 0 2
AOSC PHASE 1 INITIAL DEVELOPMENT AREA
SUBJECT WELL LOCATION Peace River
l
«l
Fort McMurray
Kilometers
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
16 CONTOUR INTERVAL 4.0 m (masl)
Project Code: Technical: Date:
M.MCMR MIDDLE McMURRAY 7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
WELL LEGEND l RS 09/10/16 GDE 09/10/15
Reference: MIDDLE McMURRAY
A Location C Suspended
D Service or Drain F Gas Calgary FORMATION ISOPACH
l
G Dry & Abandoned H Heavy Oil Disclaimer:
K Suspended Gas M Abandoned Service Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
S Injection
other parties with which Athabasca Oil Sands Corp. has not entered
« Project Location into contract. FIGURE 3.4-9
F:\7349 AOSC\Drafting\2009\Mackay River EIA\7349-EIA-STR-09.cdr
LEGEND
AOSC MACKAY ASSET BOUNDARY
AOSC GSA AREA BOUNDARY 1:125,000
2 0 2
AOSC PHASE 1 INITIAL DEVELOPMENT AREA
SUBJECT WELL LOCATION Peace River
l
«l
Fort McMurray
Kilometers
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
306 CONTOUR INTERVAL 4.0 m (masl)
Project Code: Technical: Date:
M.MCMR MIDDLE McMURRAY 7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
WELL LEGEND l RS 09/10/16 GDE 09/10/15
Reference: MIDDLE McMURRAY
A Location C Suspended
D Service or Drain F Gas Calgary FORMATION STRUCTURE
l
G Dry & Abandoned H Heavy Oil Disclaimer:
K Suspended Gas M Abandoned Service Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
S Injection
other parties with which Athabasca Oil Sands Corp. has not entered
« Project Location into contract. FIGURE 3.4-10
F:\7349 AOSC\Drafting\2009\Mackay River EIA\7349-EIA-ISO-09.cdr
LEGEND
AOSC MACKAY ASSET BOUNDARY
AOSC GSA AREA BOUNDARY 1:125,000
2 0 2
AOSC PHASE 1 INITIAL DEVELOPMENT AREA
SUBJECT WELL LOCATION Peace River
l
«l
Fort McMurray
Kilometers
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
8 CONTOUR INTERVAL 4.0 m (masl)
Project Code: Technical: Date:
M.MCMR MIDDLE McMURRY 7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
WELL LEGEND l RS 09/10/16 GDE 09/10/15
Reference: UPPER McMURRAY
A Location C Suspended
D Service or Drain F Gas Calgary FORMATION ISOPACH
l
G Dry & Abandoned H Heavy Oil Disclaimer:
K Suspended Gas M Abandoned Service Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
S Injection
other parties with which Athabasca Oil Sands Corp. has not entered
« Project Location into contract. FIGURE 3.4-11
F:\7349 AOSC\Drafting\2009\Mackay River EIA\7349-EIA-ISO-09.cdr
LEGEND
AOSC MACKAY ASSET BOUNDARY
AOSC GSA AREA BOUNDARY 1:125,000
2 0 2
AOSC PHASE 1 INITIAL DEVELOPMENT AREA
SUBJECT WELL LOCATION Peace River
l
«l
Fort McMurray
Kilometers
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
8 CONTOUR INTERVAL 4.0 m (masl)
Project Code: Technical: Date:
M.MCMR MIDDLE McMURRY 7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
WELL LEGEND l RS 09/10/16 GDE 09/10/15 UPPER McMURRAY
Reference:
A Location C Suspended
Calgary
FORMATION SAND
D Service or Drain F Gas
G Dry & Abandoned H Heavy Oil
l ISOPACH
Disclaimer:
K Suspended Gas M Abandoned Service Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
S Injection
other parties with which Athabasca Oil Sands Corp. has not entered
« Project Location into contract. FIGURE 3.4-12
F:\7349 AOSC\Drafting\2009\Mackay River EIA\7349-EIA-STR-09.cdr
LEGEND
AOSC MACKAY ASSET BOUNDARY
AOSC GSA AREA BOUNDARY 1:125,000
2 0 2
AOSC PHASE 1 INITIAL DEVELOPMENT AREA
SUBJECT WELL LOCATION Peace River
l
«
l
Fort McMurray
Kilometers
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
382 CONTOUR INTERVAL 2.0 m (masl)
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
WELL LEGEND l RS 09/10/16 GDE 09/10/15
Reference: CLEARWATER FORMATION
A Location C Suspended
D Service or Drain F Gas Calgary TOP STRUCTURE
l
G Dry & Abandoned H Heavy Oil Disclaimer:
K Suspended Gas M Abandoned Service Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
S Injection
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 3.4-13
F:\7349 AOSC\Drafting\2009\Mackay River EIA\7349-EIA-ISO-09.cdr
LEGEND
AOSC MACKAY ASSET BOUNDARY
AOSC GSA AREA BOUNDARY 1:125,000
2 0 2
AOSC PHASE 1 INITIAL DEVELOPMENT AREA
SUBJECT WELL LOCATION Peace River
l
«
l
Fort McMurray
Kilometers
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
76 CONTOUR INTERVAL 2.0 m (masl)
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
WELL LEGEND l RS 09/10/16 GDE 09/10/15
Reference: CLEARWATER
A Location C Suspended
D Service or Drain F Gas Calgary FORMATION ISOPACH
l
G Dry & Abandoned H Heavy Oil Disclaimer:
K Suspended Gas M Abandoned Service Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
S Injection
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 3.4-14
F:\7349 AOSC\Drafting\2009\Mackay River EIA\7349-EIA-STR-09.cdr
LEGEND
AOSC MACKAY ASSET BOUNDARY
AOSC GSA AREA BOUNDARY 1:125,000
2 0 2
AOSC PHASE 1 INITIAL DEVELOPMENT AREA
SUBJECT WELL LOCATION Peace River
l
«
l
Fort McMurray
Kilometers
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
318 CONTOUR INTERVAL 2.0 m (masl)
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
WELL LEGEND l RS 09/10/16 GDE 09/10/15
Reference: WABISKAW MEMBER
A Location C Suspended
D Service or Drain F Gas Calgary TOP STRUCTURE
l
G Dry & Abandoned H Heavy Oil Disclaimer:
K Suspended Gas M Abandoned Service Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
S Injection
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 3.4-15
F:\7349 AOSC\Drafting\2009\MacKay River EIA\7349-EIA_3.4-15_3.4-16_09.cdr
LEGEND
AOSC MacKAY ASSET BOUNDARY
AOSC GSA AREA BOUNDARY 1 0 1
«l
AOSC PHASE 1 INITIAL DRAINAGE PATTERNS
Kilometers
76 CONTOUR INTERVAL: 2.0m Peace River
l NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
Fort McMurray
l
ISOPACH
Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
_ MRCP into contract. FIGURE 3.4-16
F:\7349 AOSC\Drafting\2009\Mackay River EIA\7349-EIA-ISO-09.cdr
LEGEND
AOSC MACKAY ASSET BOUNDARY
AOSC GSA AREA BOUNDARY 1:125,000
2 0 2
AOSC PHASE 1 INITIAL DEVELOPMENT AREA
SUBJECT WELL LOCATION Peace River
l
«
l
Fort McMurray
Kilometers
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
6 CONTOUR INTERVAL 1.0 m (masl)
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
WELL LEGEND l RS 09/10/16 GDE 09/10/15
Reference: WABISKAW MEMBER
A Location C Suspended
D Service or Drain F Gas Calgary SHALE ISOPACH
l
G Dry & Abandoned H Heavy Oil Disclaimer:
K Suspended Gas M Abandoned Service Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
S Injection
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 3.4-17
F:\7349 AOSC\Drafting\2009\Mackay River EIA\7349-EIA-ISO-09.cdr
LEGEND
AOSC MACKAY ASSET BOUNDARY
AOSC GSA AREA BOUNDARY 1:125,000
2 0 2
AOSC PHASE 1 INITIAL DEVELOPMENT AREA
SUBJECT WELL LOCATION Peace River
l
«
l
Fort McMurray
Kilometers
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
6 CONTOUR INTERVAL 2.0 m (masl)
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
WELL LEGEND l RS 09/10/16 GDE 09/10/15
Reference: WABISKAW MEMBER
A Location C Suspended
D Service or Drain F Gas Calgary SAND ISOPACH
l
G Dry & Abandoned H Heavy Oil Disclaimer:
K Suspended Gas M Abandoned Service Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
S Injection
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 3.4-18
F:\7349 AOSC\Drafting\2009\Mackay River EIA\7349-EIA-ISO-09.cdr
LEGEND
AOSC MACKAY ASSET BOUNDARY
AOSC GSA AREA BOUNDARY 1:125,000
2 0 2
AOSC PHASE 1 INITIAL DEVELOPMENT AREA
SUBJECT WELL LOCATION Peace River
l
«
l
Fort McMurray
Kilometers
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
66 CONTOUR INTERVAL 2.0 m (masl)
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
WELL LEGEND l RS 09/10/16 GDE 09/10/15 CLEARWATER FORMATION
Reference:
A Location C Suspended EXCLUDING WABISKAW
D F
Calgary
Service or Drain Gas
G Dry & Abandoned H Heavy Oil
l MEMBER ISOPACH
Disclaimer:
K Suspended Gas M Abandoned Service Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
S Injection
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 3.4-19
F:\7349 AOSC\Drafting\2009\Mackay River EIA\7349-EIA-ISO-09.cdr
LEGEND
AOSC MACKAY ASSET BOUNDARY
AOSC GSA AREA BOUNDARY 1:125,000
2 0 2
AOSC PHASE 1 INITIAL DEVELOPMENT AREA
SUBJECT WELL LOCATION Peace River
l
«
l
Fort McMurray
Kilometers
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
50 CONTOUR INTERVAL 5.0 m (masl)
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
WELL LEGEND l RS 09/10/16 GDE 09/10/15
Reference: GRAND RAPIDS
A Location C Suspended
D Service or Drain F Gas Calgary FORMATION ISOPACH
l
G Dry & Abandoned H Heavy Oil Disclaimer:
K Suspended Gas M Abandoned Service Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
S Injection
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 3.4-20
F:\7349 AOSC\Drafting\2009\Mackay River EIA\7349-EIA-ISO-09.cdr
LEGEND
AOSC MACKAY ASSET BOUNDARY
AOSC GSA AREA BOUNDARY 1:125,000
2 0 2
AOSC PHASE 1 INITIAL DEVELOPMENT AREA
SUBJECT WELL LOCATION Peace River
l
«
l
Fort McMurray
Kilometers
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
36 CONTOUR INTERVAL 4.0 m (masl)
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
WELL LEGEND l RS 09/10/16 GDE 09/10/15
Reference: GRAND RAPIDS 5
A Location C Suspended
D Service or Drain F Gas Calgary PACKAGE ISOPACH
l
G Dry & Abandoned H Heavy Oil Disclaimer:
K Suspended Gas M Abandoned Service Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
S Injection
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 3.4-21
F:\7349 AOSC\Drafting\2009\Mackay River EIA\7349-EIA-ISO-09.cdr
LEGEND
AOSC MACKAY ASSET BOUNDARY
AOSC GSA AREA BOUNDARY 1:125,000
2 0 2
AOSC PHASE 1 INITIAL DEVELOPMENT AREA
SUBJECT WELL LOCATION Peace River
l
«
l
Fort McMurray
Kilometers
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
20 CONTOUR INTERVAL 4.0 m (masl)
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
WELL LEGEND l RS 09/10/16 GDE 09/10/15
Reference: GRAND RAPIDS 4
A Location C Suspended
D Service or Drain F Gas Calgary PACKAGE ISOPACH
l
G Dry & Abandoned H Heavy Oil Disclaimer:
K Suspended Gas M Abandoned Service Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
S Injection
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 3.4-22
MacKay River Commercial Project 3-36 Geology and Reservoir
December 2009
The GSA has no available trade seismic data coverage. In 2009 AOSC undertook a 3D
seismic program in order to assist in well placement and to provide a baseline for
potential future 4D seismic monitoring. This 5.1 km2 seismic program was acquired
during March 2009, once the core hole drilling program had terminated. An in-field 2D
seismic line was acquired concurrently in order to compare certain source parameters.
The parameters used in the acquisition of the 3D seismic are presented in Table 3.5-1.
Parameter Value
Program 2009 MacKay River 3D
Area/Length 5.1 km2
Source Mini Vibe
Source Parameters 8-180 hz non-linear
Source Interval 15 m
Source Line Width 3.0 m low impact seismic, mulched
Receiver Spacing 15 m
Receiver Line Interval 45 m
Receiver Line Width 1.75 m low impact seismic, mulched
Source Line Interval 45 m
The 3D seismic was acquired using low impact seismic (LIS) techniques which
minimized cutting and footprint. The core hole access roads were aligned with and used
as 3D source lines wherever possible within the 3D seismic program (and vice versa) to
avoid any unnecessary cutting or duplication of access. Due to the target depth, a fine
source and receiver line spacing was required in order to adequately image the reservoir
and 45 m was utilized for both source and receivers. Mulching of source lines was kept
to 3.0 m width and the mini vibe source was fitted with narrow tires in order not to over
step the lines. Narrow 1.75 m mulchers and handcutting were used for the receiver lines
to minimize impact and maintain safety. As a result, the total footprint for the 3D seismic
program was limited to 52 ha.
Three component (3C) converted wave data were acquired, however, only the
compressional wave (P-wave) data have been processed to date, using conventional
processing flow through to pre-stack migration. Interpretation was carried out on the
pre-stack migration and post-stack migration volumes. The Palaeozoic unconformity,
McMurray Formation top, and Wabiskaw Member top were picked, depth converted and
integrated into the geological maps and used for reservoir modelling. A Palaeozoic time
structure map showing a predominately northwest-southeast structural high trend with
smaller scale structural and erosional features is presented on Figure 3.5-1. Due to the
consistency and homogeneity of the reservoir in the 3D seismic area, geophysical
mapping effort to date has been focused on structural control and thickness mapping of
the above mentioned markers. Examples of the picks with the relevant well ties are
illustrated in northwest-southeast seismic cross-section and corresponding geological
cross-section following the trend of the reservoir (Figure 3.5-2 and Figure 3.5-3). A
second seismic cross-section perpendicular to the reservoir trend is presented on
Figure 3.5-4. Amplitude anomalies in the McMurray Formation and Wabiskaw Member
were also mapped and integrated into the geological gas mapping.
Currently work is being carried out on the seismic volume to evaluate the utility of
inversion as well as the processing of the 3C converted wave data.
R14W4
LEGEND
AOSC 3D SEISMIC
1:20,000
250 0 250
Peace River
l
« l
Fort McMurray
Meters
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 GS 09/10/15
Reference:
DEVONIAN TIME
Calgary
l STRUCTURE
Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 3.5-1
F:\7349 AOSC\Drafting\2009\Mackay River EIA\7349-EIA-XS-09
LEGEND
AOSC 3D SEISMIC
AOSC PHASE 1 INITIAL DEVELOPMENT AREA
Peace River
l
«
l
Fort McMurray
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l SR 09/10/16 RC 09/10/15
Reference:
SEISMIC CROSS
Calgary
l SECTION A-A’
KEYMAP Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
NTS in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 3.5-2
F:\7349 AOSC\Drafting\2009\Mackay River EIA\7349-EIA-XS-09
LEGEND
AOSC 3D SEISMIC
AOSC PHASE 1 INITIAL DEVELOPMENT AREA
Peace River
l
«
l
Fort McMurray
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l SR 09/10/16 RC 09/10/15
Reference:
GEOLOGICAL CROSS
Calgary
l
SECTION A-A’
KEYMAP Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
NTS in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 3.5-3
B B'
F:\7349 AOSC\Drafting\2009\Mackay River EIA\7349-EIA-XS-09
LEGEND
AOSC 3D SEISMIC
AOSC PHASE 1 INITIAL DEVELOPMENT AREA
B'
Peace River
l
«
l
Fort McMurray
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
B Edmonton Senior: Date: Drawn by: Date:
T.90 l SR 09/10/16 RC 09/10/15
Reference:
SEISMIC
Calgary
l CROSS - SECTION B - B’
KEYMAP Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
NTS in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
R.14W4 R.13
«
Project Location into contract. FIGURE 3.5-4
MacKay River Commercial Project 3-42 Geology and Reservoir
December 2009
The upper member of the McMurray Formation contains the main reservoir sands in the
GSA. The reservoir interval erosionally overlies the middle McMurray member deposits.
The upper McMurray member was deposited as a tidal sand bar complex in a tide
dominated deltaic environment.
The upper McMurray member consists of six reservoir lithofacies (Table 3.6-1) in the
IDA:
cross-bedded sands;
parallel-laminated sands;
bioturbated sands;
flaser-bedded sands;
wavy-bedded sands; and
interbedded sands and clay.
These lithofacies have been described in core, mapped and integrated into a 3D Petrel
reservoir model which describes the distribution of facies and reservoir properties.
The cross-bedded sand facies is the cleanest reservoir in the IDA. This facies occurs
mainly towards the base and top of the McMurray reservoir. Grain-size ranges from
medium to coarse, gamma ray response is typically below 25 API. Sand grains are
moderately-rounded and moderately-sorted. This facies typically displays medium-scale
trough cross-bedding. Beds most commonly have a sharp basal contact and high
bitumen saturation.
Parallel-laminated ripple sand is a clean reservoir facies. These sands are fine to
medium-grained, well-rounded and well-sorted. Thin layers of comminuted coaly debris
are observed in this facies. Gamma ray response is generally less than 30 API.
Bioturbated sands form the next reservoir facies. The bioturbated sands are
fine-grained, moderately-rounded and moderately-sorted. Mud layers are rare, and have
been disturbed by burrowing activity of organisms.
The flaser-bedded sand facies can exhibit double mud drapes over asymmetrical ripple
forms. Wavy-bedded sands are rare and mainly occur to the northeast side of IDA.
These sands have been intensively or completely bioturbated causing disruption of mud
layers. Sand is very-fine to fine-grained.
The interbedded sand and clay facies only occurs in the southeast part of the IDA.
Fine-grained sands are interbedded with thin shale layers (less than 1 cm thick). Sand
grains are moderately-rounded and sorted and bioturbation is limited but dominated by
Thalassinoides.
Deep Resistivity
Bioturbation
Structures
Bedding
(ohm-m)
Texture
Facies
Cross-bedded Medium
sands -coarse >50 cm Cross-bedding rare <25 >500 >33 71-94
Parallel
Parallel- lamination &
laminated Fine- ripple
ripple sands medium >1 m lamination rare <30 300-500 33-35 61-94
Bioturbated Biomottled,
sands Fine - massive abundant 30-35 100-200 30-33 70-91
Ripples,
Flaser-bedded double mud
sands Fine >10 cm drapes rare 20-30 80-120 31-33 67-83
Fine- Asymmetric
Wavy- bedded very ripple, wavy-
sands fine - bedding abundant 35-45 50-100 30-32 69-88
Interbedded
sands and
muds Fine <10 cm Interbeds rare 20-30 <50 31-33 68-80
The upper McMurray member was deposited as a tidal sand bar complex in a tide-
dominated deltaic environment. Well bore image data shows the paleocurrent flow is
toward the north.
Cross-bedded sands were mainly deposited in the southern portion of the IDA, towards
the top of the reservoir. These cross-bedded sands were interpreted as proximal tidal
sand bar deposits. Bioturbated sands and parallel-laminated sands dominate the west
and southern part of the IDA. Flaser-bedded sands were mainly deposited in the east;
wavy-bedded sands appear in the northeast corner of the IDA.
The bitumen pay zone located within the upper member of the McMurray Formation is
characterized by fine to medium-grained, black, bituminous, clean sands. Top and base
of the pay zone are determined from well-log, core description, resistivity image log and
core analysis information. The McMurray pay zone in type well 1AA/14-14-090-14W4
(Figure 3.4-5) is characterized by elevated deep resistivity values of up to 550 ohm-m,
high bitumen saturations of up to 91%, a low gamma-ray response typically ranging
between 20 API and 30 API and persistently high porosities typically ranging between
30% to 35%. Clay is low, averaging 0.1%. Average horizontal and vertical
permeabilities are just over 4 D.
Net pay cut-offs were determined from examining various wire-line logs, core analysis
parameters, core photos and core descriptions. Core analysis samples were taken
throughout the McMurray Formation to determine grain density, porosity, bitumen
saturation and permeability. A good agreement exists between core analysis and wire-
line log analysis for both porosity and bitumen saturations (Figure 3.7-1). These close
comparisons provide confidence in applying the petrophysically-derived reservoir
parameters to uncored wells. The deep resistivity, gamma-ray and density porosity and
bitumen saturation curves were used as a guide to define reservoir parameters and pay
intervals. Both total porosity (PORT) and effective porosity (POR) were calculated
(Figure 3.7-1). There is very close agreement between these values. The same close
association exists between the Archie and Simandoux water saturations. Bitumen
saturations were derived from 1-Archie water saturations for SoT and 1-Simandoux for
So (Figure 3.7-1). These results imply that the reservoir interval is very clean.
The following cutoffs were used to generate the net bitumen pay map (Table 3.7-1):
gamma ray response less than 75 API, total porosity greater than 27%, bitumen
saturation greater than 50% and continuous bitumen pay thickness greater 10 m where
shale thickness did not exceed 0.5 m. The average reservoir properties for the
McMurray net pay zone in the IDA are presented in Table 3.7-2. Bitumen saturation
varies from 75% to 85%, averaging 80% across the main fairway and porosity varies
from 33% to 35%, averaging 34%. Net pay ranges from 19 m to 24 m in thickness with
an average net pay in the IDA of 21 m (Figure 3.7-2). A representative cross-section
has been prepared illustrating the lithological continuity and high reservoir quality of the
McMurray interval along the fairway trend (Figure 3.7-3). Three cross-sections
perpendicular to trend have also been prepared (Figure 3.7-4, 3.7-5 and 3.7-6) that
demonstrate good reservoir continuity.
Parameter Value
Porosity (%) >27
Bitumen Saturation (%) >50
Deep Resistivity (ohm-m) >20
Net Pay Thickness (m) >10
Gamma-Ray (API) <75
Shale Thickness (m) <0.5
Table 3.7-2 Pay Interval Reservoir Parameter Characteristics within the IDA
Structural maps on the top and base of the pay zone are presented on Figures 3.7-7 and
3.7-8, respectively. The top of the pay zone displays a structural high over the
northwest-southeast pay trend. The top of the pay zone is highly uniform throughout the
IDA with a range of 3.2 m (from 311 masl to 314 masl). Measured depth to the top of
the pay zone within the IDA ranges from 170 m to 189 m (Figure 3.7-9).
The base of pay zone shows a similar degree of variation as the top of the pay zone.
Within the IDA the base of reservoir is very consistent with a minimum elevation of
290 masl and a maximum of 294 masl showing a variation of less than 4 m.
These reservoir sands differ from typical McMurray reservoirs in that they are more
laterally homogenous, do not contain the laterally extensive and thick interbedded sands
and muds (referred to as inclined heterolithic stratification) deposited by lateral accretion
of point bars in a tidally-influenced channel environment, and do not contain mud plugs
which reflect channel avulsion. Reservoir architecture appears simpler in these deltaic
environments, facies bands are more laterally continuous and clay content is much
lower.
1:20,000
250 0 250
Peace River
l
« l
Fort McMurray
Meters
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 GS 09/10/15
Reference: COMPARISON OF CORE
Calgary ANALYSIS TO
l
Disclaimer: INTERPRETED LOG DATA
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 3.7-1
F:\7349 AOSC\Drafting\2009\Mackay River EIA\7349-EIA-ISO-09.cdr
LEGEND
AOSC MACKAY ASSET BOUNDARY
AOSC GSA AREA BOUNDARY 1:125,000
2 0 2
AOSC PHASE 1 INITIAL DEVELOPMENT AREA
SUBJECT WELL LOCATION Peace River
l
«
l
Fort McMurray
Kilometers
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
14 CONTOUR INTERVAL 4.0 m (masl)
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
WELL LEGEND l RS 09/10/16 GDE 09/10/15
Reference:
A Location C Suspended NET PAY ISOPACH
D F
Calgary
Service or Drain Gas
l
G Dry & Abandoned H Heavy Oil Disclaimer:
K Suspended Gas M Abandoned Service Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
S Injection
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 3.7-2
F:\7349 AOSC\Drafting\2009\MacKAY River EIA\7349-EIA_3.7-3_XS_C-C-09.cdr
LEGEND
AOSC PHASE 1 INITIAL DEVELOPMENT AREA
Peace River
l
«
l
Fort McMurray O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 GS 09/10/15
Reference: REGIONAL
Calgary
CROSS-SECTION
KEYMAP l
Disclaimer: C - C'
N.T.S. Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 3.7-3
D 0.6km 0.9km D'
134
1AA102209014W400 [TVD] 1AA162209014W400 [TVD] 133
1AA052609014W400 [TVD]
0 GR 150 TVD 60 CNSS 0 0.2 AI10 2000.0 0 GR 150 60 CNSS 0 0.2 SFL 2000.0 0 GR 150 TVD 60 CNSS 0 0.2 SFL 2000.0
60 DPSS 0 0.2 AI60 2000.0 60 DPSS 0 0.2 ILM 2000.0 135 60 DPSS 0 0.2 ILM 2000.0
0.2 AI90 2000.0 0.2 ILD 2000.0 0.2 ILD 2000.0
140
140
145
145
150
150
155
155
Wabiskaw
Wabiskaw
160
160
165
165
McMurray
Top of Pay 170 McMurray
170 Top of Pay
175
175
180
180
185
185
190
Base of Pay 190
Base of Pay
Palaeozoic Palaeozoic
196 195
F:\7349 AOSC\Drafting\2009\Mackay River EIA\7349-EIA-XS-09
LEGEND
l CROSS - SECTION D - D’
KEYMAP Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
NTS in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
R.14 R.13W4 «
Project Location into contract. FIGURE 3.7-4
E 0.5km 0.4km E'
137
1AA101409014W400 [TVD] 136
1AA161409014W400 [TVD] 135
1AA012309014W400 [TVD]
0 GR 150 TVD 60 CNSS 0 0.2 AI10 2000.0 0 GR 150 TVD 60 CNSS 0 0.2 AI10 2000.0 0 GR 150 TVD 60 CNSS 0 0.2 AI10 2000.0
60 DPSS 0 0.2 AI60 2000.0 60 DPSS 0 0.2 AI60 2000.0 60 DPSS 0 0.2 AI60 2000.0
140 0.2 AI90 2000.0 0.2 AI90 2000.0 0.2 AI90 2000.0
140
140
145
145
145
150
150
150
155
155
155
160
Wabiskaw 160
160 Wabiskaw
165
165
165
McMurray
170 McMurray
170
Top of Pay 170 Top of Pay
175
175
175
180
180
180
185
185
185
190
190
190
Base of Pay
195 Palaeozoic
Base of Pay 195
Palaeozoic 195
199 198 197
F:\7349 AOSC\Drafting\2009\Mackay River EIA\7349-EIA-XS-09
LEGEND
AOSC MACKAY ASSET BOUNDARY
AOSC GSA AREA BOUNDARY
AOSC PHASE 1 INITIAL DEVELOPMENT AREA
E' SUBJECT WELL LOCATION Peace River
l
«
l
Fort McMurray
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
14 CONTOUR INTERVAL 4.0 m (masl)
Project Code: Technical: Date:
7349-514 BF 09/10/15
T.90
E Edmonton
l
Senior:
SR
Date:
09/10/16
Drawn by:
RC
Date:
09/10/15
Reference:
REGIONAL
Calgary
l CROSS - SECTION E - E’
KEYMAP Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
NTS in the accompanying report. No representation of any kind is made to
R.14 R.13W4 other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 3.7-5
F:\7349 AOSC\Drafting\2009\Mackay River EIA\7349-EIA-XS-09
LEGEND
AOSC MACKAY ASSET BOUNDARY
AOSC GSA AREA BOUNDARY
AOSC PHASE 1 INITIAL DEVELOPMENT AREA
SUBJECT WELL LOCATION Peace River
l
«
l
Fort McMurray
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
14 CONTOUR INTERVAL 4.0 m (masl)
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l SR 09/10/16 RC 09/10/15
Reference:
REGIONAL
Calgary
LEGEND
AOSC MACKAY ASSET BOUNDARY
AOSC GSA AREA BOUNDARY 1:125,000
2 0 2
AOSC PHASE 1 INITIAL DEVELOPMENT AREA
SUBJECT WELL LOCATION Peace River
l
«
l
Fort McMurray
Kilometers
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
306 CONTOUR INTERVAL 4.0 m (masl)
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
WELL LEGEND l RS 09/10/16 GDE 09/10/15
Reference:
A Location C Suspended TOP OF PAY STRUCTURE
D F
Calgary
Service or Drain Gas
l
G Dry & Abandoned H Heavy Oil Disclaimer:
K Suspended Gas M Abandoned Service Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
S Injection
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 3.7-7
F:\7349 AOSC\Drafting\2009\Mackay River EIA\7349-EIA-STR-09.cdr
LEGEND
AOSC MACKAY ASSET BOUNDARY
AOSC GSA AREA BOUNDARY 1:125,000
2 0 2
AOSC PHASE 1 INITIAL DEVELOPMENT AREA
SUBJECT WELL LOCATION Peace River
l
«
l
Fort McMurray
Kilometers
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
300 CONTOUR INTERVAL 4.0 m (masl)
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
WELL LEGEND l RS 09/10/16 GDE 09/10/15
Reference:
A Location C Suspended BASE OF PAY STRUCTURE
D F
Calgary
Service or Drain Gas
l
G Dry & Abandoned H Heavy Oil Disclaimer:
K Suspended Gas M Abandoned Service Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
S Injection
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 3.7-8
F:\7349 AOSC\Drafting\2009\Mackay River EIA\7349-EIA-STR-09.cdr
LEGEND
AOSC MACKAY ASSET BOUNDARY
AOSC GSA AREA BOUNDARY 1:125,000
2 0 2
AOSC PHASE 1 INITIAL DEVELOPMENT AREA
SUBJECT WELL LOCATION Peace River
l
«
l
Fort McMurray
Kilometers
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
180 CONTOUR INTERVAL 4.0 m (masl)
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
WELL LEGEND l RS 09/10/16 GDE 09/10/15
Reference: TOP OF PAY
A Location C Suspended
D Service or Drain F Gas Calgary MEASURED DEPTH
l
G Dry & Abandoned H Heavy Oil Disclaimer:
K Suspended Gas M Abandoned Service Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
S Injection
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 3.7-9
MacKay River Commercial Project 3-55 Geology and Reservoir
December 2009
Ten initial subsurface drainage patterns (AA-AJ) have been identified for Phase 1.
Subsurface drainage patterns and horizontal well pairs have been optimally located
based on a combination of net pay thickness, base net pay structure, top net pay
structure and lithofacies distribution (Figure 3.8-1). Additional information on well
placement is presented in Section 3.11.1. Average bitumen pay thickness per drainage
pattern ranges from 19 to 23 m. Structural cross-sections have been created through
each subsurface pattern and illustrate the conceptual horizontal well locations
(Figures 3.8-2 through 3.8-12). The top and the base net pay are shown as well as the
preferred elevations of the proposed horizontal wells. To optimize bitumen recovery,
AOSC has targeted as close to base of pay as possible typically using a stand-off of 1
m. Injection wells will be placed 5 m above the production wells. Both wells will be
horizontal and parallel to one another. The base of pay structure is relatively flat within
each pattern.
The original bitumen in-place (OBIP) volumes were calculated within the upper
McMurray member for each initial drainage pattern (AA-AJ) (Figure 3.8-13). Drainage
patterns are discussed in further detail in Section 3.11.1. Average reservoir parameters
calculated from the geostatistical model were used on a pattern by pattern basis to
calculate OBIP volumes (Table 3.8-1). Exploitable OBIP within the IDA is 29 million m3
(184.4 million barrels). Recoverable bitumen, based on a 50% recovery factor, is
14.7 million m3 (92.2 million barrels).
The MacKay River lease will support bitumen development of up to a rate of 23,847 m3/d
(150,000 bpd) over the Project life. Future development areas will be determined by the
distribution of continuous net pay suitable for SAGD development. A map showing the
regional net pay distribution and thickness across the MacKay River lease is shown on
Figure 3.8-14.
There is no historic gas production within the MacKay River lease. The gas
accumulations that exist are small and exhibit considerable bitumen saturation. The
petroleum and natural gas rights are not available for disposition from the Crown. The
gas is anticipated to have no impact in the development of the bitumen resource. Gas
accumulations have limited areal extent, are thin (from 0 to 3.1 m) and are structurally
controlled. Wabiskaw Member gas is also present within the GSA and reaches a
maximum thickness of 3.7 m. Gas distribution is structurally controlled. Wabiskaw
Member gas is not in lithological communication with the McMurray pay interval.
Thin and isolated bitumen transition zones are found above and below the bitumen pay
zone. These zones exhibit less than 50% bitumen saturation. The upper bitumen
transition zone is: sporadic in occurrence and shows an average bitumen saturation of
30%; most often present directly between the thin gas saturated intervals and the top of
pay; and thin and ranges from 0 to 1.9 m thick (average 0.5 m) within the GSA.
The basal bitumen transition zone is also sporadic in occurrence and shows average
bitumen saturations of 22% where present, it occurs directly below the base of the pay
zone. The basal bitumen transition zone is thin and ranges from 0 to 2.6 m thick with an
average of 0.6 m.
Well Pair Well Average Average Bitumen Pay Pattern Pattern RBIP/
# Well Pattern Area Kh Kv RF OBIP / well OBIP / well RBIP / well
Pattern Length Spacing So φ Thickness OBIP OBIP well
pairs (m2) (D) (D) (%) (106m3) (106bbls) (106bbls)
(m) (m) (frac) (frac) (m) (106m3) (106bbls) 6 3
(10 m )
AA 6 850 125 698,200 0.82 0.34 4.5 4.0 50% 21 4.2 26.6 0.7 4.4 0.4 2.2
AB 5 850 125 562,600 0.80 0.34 4.7 4.3 50% 22 3.5 21.9 0.7 4.4 0.3 2.2
AC 4 850 125 418,700 0.83 0.34 4.2 3.9 50% 22 2.6 16.3 0.6 4.1 0.3 2.0
AD 5 850 125 560,100 0.82 0.34 4.9 4.1 50% 21 3.3 20.5 0.7 4.1 0.3 2.1
AE 6 850 125 674,700 0.80 0.34 5.2 4.4 50% 20 3.5 22.2 0.6 3.7 0.3 1.9
AF 3 850 125 338,100 0.81 0.34 4.6 3.9 50% 23 2.1 13.4 0.7 4.5 0.4 2.2
AG 3 850 125 337,300 0.81 0.35 4.4 3.7 50% 19 1.8 11.3 0.6 3.8 0.3 1.9
AH 5 850 125 594,300 0.78 0.34 5.1 4.4 50% 19 3.0 18.9 0.6 3.8 0.3 1.9
AI 4 850 125 459,800 0.80 0.34 5.4 4.5 50% 19 2.4 14.9 0.6 3.7 0.3 1.9
AJ 5 850 125 562,300 0.78 0.34 3.9 3.8 50% 20 2.9 18.5 0.6 3.7 0.3 1.8
Average 4.6 850 125 520,610 0.80 0.34 4.7 4.1 50% 21 2.9 18.4 0.6 4.0 0.3 2.0
Total 46 - - 5,206,100 - - - - - - 29.3 184.4 6.4 40.1 3.2 20.1
Pattern (Drainage) Area = (# of Wells) * (900m) * (125m) So = Bitumen Saturation (frac) RF = Recovery Factor (%)
Some Patterns have variable Well Spacing φ = Porosity (frac) OBIP = Original Bitumen in Place (derived from Petrel geomodel)
Kh = Horizontal Permeability (D) RBIP = Recoverable Bitumen in Place
Kv = Vertical Permeability (D)
G
G
G G
G G
G M
C
F- AF0 3P
M
AF
C
F-
G
M
G
01
C
P
F-
M
C
AF
2P
F- AG 3P
M
0
C -A
AG 02
M
F-
C
F
1P
MC
F
G
A
MC
G
G
F-A
P
0
MC
F-A
C01
G
MC
F-A
C02
P
A
F-A
C03
P
G
C04
G G
P
G
P
AC
C GG G
A
M
C
F-
M
A
C
AA 05
AJ
M
F-
06 P
C
AA 04
F-
M
T90
G
M
AA
C
G G
CF -AJ
F-
M
M
AA
C
-A
CF -AJ
P
F-
M
M
03
J0
C
AA
CF -AJ
F-
5P
M
02
AA
AB 04 P
CF -AJ
P
M
01
P
03 P
CF -AB
P
G
M
G
02
CF -AB
M
01 P
CF AB0 2P
M
P
CF -AB 01P
05 P
M
-
CF -AB
04
M
G
CF
G G
CF
3P
M -A
0
CF D0
M -A 1P
CF D0
G
M -A 2P
CF D0
M -A 3P
CF
G
D0
-A
G
D0 4P
5P
AD
G G
M
E
C
F-
M
C
AE
A
F-
M
06
AE
C
G
F-
M
G
05
C
AE
F-
P
M
04
C
AE
F-
M
P
03
AE
C
F-
P
02
AE
G
H
01
G
P
G
M
C
A
G
F- AH
M
AH 04
C
F-
M
05 P MC F-AI
C
M
P M
F-
C
AH 02
F-
M
G
03 P MC
AH 01
C
CF
F-
P M
AH
-A
F-A
I01 P
C
P
G
P
I02 P
F-A
03
I04
AI
P
G
C G G
F:\7349 AOSC\Drafting\2009\MacKAY RIVER EIA\7349-EIA-GSA-09.cdr
R14W4 R13W4
LEGEND
AOSC MACKAY ASSET BOUNDARY
1:40,000
AOSC GSA AREA BOUNDARY 0.5 0 0.5
Peace River
l
«
l
Fort McMurray O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 GDE 09/10/15
Reference: STRUCTURAL
Calgary CROSS-SECTION
l
Disclaimer: AA1-AA1’
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
_Project Location into contract. FIGURE 3.8-2
F:\7349 AOSC\Drafting\2009\Makay River EIA\7349-EIA-SXS-09.cdr
Peace River
l
«
l
Fort McMurray O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 GDE 09/10/15
Reference: STRUCTURAL
Calgary CROSS-SECTION
l
Disclaimer: AA2-AA2’
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
_Project Location into contract. FIGURE 3.8-3
F:\7349 AOSC\Drafting\2009\Makay River EIA\7349-EIA-SXS-09.cdr
Peace River
l
«
l
Fort McMurray O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 GDE 09/10/15
Reference: STRUCTURAL
Calgary CROSS-SECTION
l
Disclaimer: AB-AB’
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
_Project Location into contract. FIGURE 3.8-4
F:\7349 AOSC\Drafting\2009\Makay River EIA\7349-EIA-SXS-09.cdr
Peace River
l
«
l
Fort McMurray O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 GDE 09/10/15
Reference: STRUCTURAL
Calgary CROSS-SECTION
l
Disclaimer: AC-AC’
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
_Project Location into contract. FIGURE 3.8-5
F:\7349 AOSC\Drafting\2009\Makay River EIA\7349-EIA-SXS-09.cdr
Peace River
l
«
l
Fort McMurray O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 GDE 09/10/15
Reference: STRUCTURAL
Calgary CROSS-SECTION
l
Disclaimer: AD-AD’
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
_Project Location into contract. FIGURE 3.8-6
F:\7349 AOSC\Drafting\2009\Makay River EIA\7349-EIA-SXS-09.cdr
Peace River
l
«
l
Fort McMurray O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 GDE 09/10/15
Reference: STRUCTURAL
Calgary CROSS-SECTION
l
Disclaimer: AE-AE’
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
_Project Location into contract. FIGURE 3.8-7
F:\7349 AOSC\Drafting\2009\Makay River EIA\7349-EIA-SXS-09.cdr
Peace River
l
«
l
Fort McMurray O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 GDE 09/10/15
Reference: STRUCTURAL
Calgary CROSS-SECTION
l
Disclaimer: AF-AF’
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
_Project Location into contract. FIGURE 3.8-8
F:\7349 AOSC\Drafting\2009\Makay River EIA\7349-EIA-SXS-09.cdr
Peace River
l
«
l
Fort McMurray O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 GDE 09/10/15
Reference: STRUCTURAL
Calgary CROSS-SECTION
l
Disclaimer: AG-AG’
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
_Project Location into contract. FIGURE 3.8-9
F:\7349 AOSC\Drafting\2009\Makay River EIA\7349-EIA-SXS-09.cdr
Peace River
l
«
l
Fort McMurray O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 GDE 09/10/15
Reference: STRUCTURAL
Calgary CROSS-SECTION
l
Disclaimer: AH-AH’
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
_Project Location into contract. FIGURE 3.8-10
F:\7349 AOSC\Drafting\2009\Makay River EIA\7349-EIA-SXS-09.cdr
Peace River
l
«
l
Fort McMurray O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 GDE 09/10/15
Reference: STRUCTURAL
Calgary CROSS-SECTION
l
Disclaimer: AI-AI’
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
_Project Location into contract. FIGURE 3.8-11
F:\7349 AOSC\Drafting\2009\Makay River EIA\7349-EIA-SXS-09.cdr
Peace River
l
«
l
Fort McMurray O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 GDE 09/10/15
Reference: STRUCTURAL
Calgary CROSS-SECTION
l
Disclaimer: AJ-AJ’
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
_Project Location into contract. FIGURE 3.8-12
G G G G G T91
G
G
G G G G G
G G
G G G G G
G
G G
G G
G
G G G
G G
G
P
GA G
O
A
G
F
A
G
G GAN
A
G G AC G G G
K
A
AM C GG G
A
A
GG G AJ T90
G B G
A
AL
G G G G G
G
AD
G G
Q
G
A
G G
G
G
E
G
A
G G
G G G G G
H
A
G
G
AI
G
C G G G
G
G G
G G G
G
G G
G
G G G
G
T89
F:\7349 AOSC\Drafting\2009\MacKAY RIVER EIA\7349-EIA-GSA-09.cdr
R14W4 R13W4
LEGEND
AOSC MACKAY ASSET BOUNDARY
1:80,000
AOSC GSA AREA BOUNDARY
1 0 1
AOSC PHASE 1 INITIAL DEVELOPMENT AREA
INITIAL PATTERNS OUTLINE
Peace River
l
« l
Fort McMurray
Kilometers
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
Project Code: Technical: Date:
SUSTAINING PATTERN OUTLINES
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
WELL LEGEND l RS 09/10/16 GS 09/10/15
Reference:
INITIAL AND SUSTAINING
A Location C Suspended
D Service or Drain F Gas
Calgary
l DRAINAGE PATTERNS
G Dry & Abandoned H Heavy Oil Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
K Suspended Gas M Abandoned Service in the accompanying report. No representation of any kind is made to
S Injection other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 3.8-13
T93
T92
T91
T90
T89
T88
F:\7349 AOSC\Drafting\2009\MacKAY RIVER EIA\7349-EIA-GSA-09.cdr
T87
R16 R15 R14 R13 R12 R11W4
LEGEND
AOSC MACKAY ASSET BOUNDARY
1:300,000
AOSC GSA AREA BOUNDARY 5 0 5
3.9 CAPROCK
A thick Clearwater caprock is present above the thin Wabiskaw sands. The main seal
occurs between the top of the Clearwater Formation and base of the argillaceous
interval, just above the Wabiskaw Member sands (Figure 3.9-1). This unit ranges in
thickness from 55 to 65 m within the GSA, is regionally extensive and forms the main
Clearwater caprock. Within this unit the most argillaceous zone has been mapped
(Figure 3.9-2) and is referred to as the Clearwater argillaceous caprock interval.
The Clearwater argillaceous caprock interval exhibits the most clay-rich lithology of the
Clearwater Formation and occurs in the lower half of the Clearwater Formation above
the Wabiskaw Member sand. The Clearwater argillaceous caprock thickness varies
from 22 to 29 m across the GSA and ranges from 24 to 28 m within the IDA
(Figure 3.9-2). The uniform thickness, dominantly mud lithology and lateral extent of the
Clearwater argillaceous interval exhibited from well-to-well indicates that this
stratigraphic interval is ideal as a caprock (Figure 3.9-2).
The Clearwater argillaceous caprock interval occurs from 154.55 to 178.50 m. This
caprock cored interval consists of medium- to dark-grey, laminated clayshale. Towards
the top of the cored interval, the clay-rich interval becomes light- to medium-grey
clayshale with zones of very small but abundant trace fossils. There is no evidence of
bitumen staining within the cored interval. The well-log signatures across the
argillaceous caprock interval and the entire Clearwater Formation are similar to all other
wells across the GSA. Thus, the vertical lithological continuity of the interval from this
core is considered to be particularly representative of the area.
AOSC evaluated the occurrence of natural fractures in the caprock through examination
of cores, resistivity image logs within the GSA and triaxial test programs described in
Section 3.9.2 (Figure 3.9-3). There was no evidence of the occurrence of fracturing of
the caprock in any of these image logs or from the cored interval.
The geological evidence of continuity, thickness and lack of fracturing indicates that this
is an excellent caprock for SAGD operations.
AOSC conducted a mini-fracture program in the GSA in the winter of 2009 to determine
the in-situ stress state of the McMurray Formation pay zone and the Clearwater
Formation caprock. The program consisted of four injectivity tests; two in the McMurray
Formation pay zone and two in the caprock.
These tests are similar to mini-hydraulic fracturing tests that are run in conventional hard
rock reservoirs, recognizing the unconsolidated nature of the oil sands. Tests of this
nature (via controlled injection) are considered the most reliable method for measuring
in-situ stresses. The tests performed were specifically designed and executed for
geomechanical analysis. A small volume of water was injected directly down the casing
of the well in multiple injection and shut in cycles. The bottomhole pressures were
monitored on-site via surface and downhole pressure sensors. The pressure and
injection rate data were then analyzed to determine the in-situ minimum stress.
The results of the tests indicated that the Clearwater caprock will act as a highly
competent caprock for in-situ thermal operations in the Project area. The maximum
steam chamber pressure proposed for the Project is 2,300 kPaa. At 156 m TVD (base
of Clearwater caprock), this corresponds to a pressure gradient of 14.7 kPa/m, which is
well below the average pressure gradient measured in the oil sands facies
(16.75 kPa/m) and the caprock facies (21.5 kPa/m). These operating pressures will
provide no risk to caprock integrity.
Additionally, tri-axial tests were performed on caprock core samples to measure their
strength and other properties under reservoir conditions. X-ray diffraction analysis of
caprock shales demonstrate that the mineralogy is similar to other competent caprock in
in-situ operations, further demonstrating the strength and integrity of the caprock in the
MacKay River asset. Geomechanical simulations using the lab measured strength,
deformation properties and thermal expansion coefficient show that the caprock is safe
from general matrix plastic failure. Using the mini-fracture and tri-axial test data in
tandem provides additional certainty that the caprock is safe from both vertical fracture
propagation and plastic failure mechanisms.
All of the data above indicate that the Clearwater is a laterally extensive and effective
seal to SAGD operations.
AOSC’s reservoir operating parameters have been chosen to maintain caprock integrity.
AOSC’s reservoir monitoring plans are discussed in more detail in Section 3.13, and
includes plans to monitor steam chamber growth and downhole pressures and
temperatures.
LEGEND
AOSC MACKAY ASSET BOUNDARY
AOSC GSA AREA BOUNDARY 1:125,000
2 0 2
AOSC PHASE 1 INITIAL DEVELOPMENT AREA
SUBJECT WELL LOCATION Peace River
l
«
l
Fort McMurray
Kilometers
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
64 CONTOUR INTERVAL 1.0 m (masl)
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
WELL LEGEND l RS 09/10/16 GDE 09/10/15 CLEARWATER
Reference:
A Location C Suspended TOTAL CAPROCK
D F
Calgary
Service or Drain Gas
G Dry & Abandoned H Heavy Oil
l ISOPACH
Disclaimer:
K Suspended Gas M Abandoned Service Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
S Injection
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 3.9-1
F:\7349 AOSC\Drafting\2009\Mackay River EIA\7349-EIA-ISO-09.cdr
LEGEND
AOSC MACKAY ASSET BOUNDARY
AOSC GSA AREA BOUNDARY 1:125,000
2 0 2
AOSC PHASE 1 INITIAL DEVELOPMENT AREA
SUBJECT WELL LOCATION Peace River
l
«
l
Fort McMurray
Kilometers
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
28 CONTOUR INTERVAL 1.0 m (masl)
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
WELL LEGEND l RS 09/10/16 GDE 09/10/15 CLEARWATER
Reference:
A Location C Suspended ARGILLACEOUS
D F
Calgary
Service or Drain Gas
G Dry & Abandoned H Heavy Oil
l CAPROCK ISOPACH
Disclaimer:
K Suspended Gas M Abandoned Service Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
S Injection
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 3.9-2
F:\7349 AOSC\Drafting\2009\MacKAY RIVER EIA\7349-EIA-GSA-09.cdr
LEGEND
GREY CLAY WITH SILT
BIOTURBATED SAND
P P
ORGANIC RICH CLAY WITH PYRITE CRYSTALS
Peace River
l
«
l
Fort McMurray O I L S A N D S C O R P.
Project Code: Technical: Date:
LAMINATED SHALE 7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
LIGHT GREEN GLAUCONITIC SILT WITH CLAY l RS 09/10/16 GS 09/10/15
S S SIDERITE NODULE
Reference: MACKAY RIVER
Calgary CAPROCK
BIOTURBATED GREY CLAY WITH SILT l
Disclaimer: CHARACTERIZATION
MUDDY SAND Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
DARK GREY CLAY «
Project Location into contract. FIGURE 3.9-3
MacKay River Commercial Project 3-76 Geology and Reservoir
December 2009
AOSC has selected SAGD technology for implementation at the Project to recover the
significant bitumen resource in the area.
Average reservoir parameters for the IDA are provided in Table 3.7-2. Based on the
reservoir depth, bitumen saturation, permeability and virgin oil viscosity, SAGD is the
best option for development of the McMurray reservoir for the Project.
There are currently more than 10 commercial SAGD operations in the Athabasca oil
sands deposit, the closest to the Project being Suncor Energy’s (formerly
Petro-Canada’s) MacKay River project. All of these projects have demonstrated the
commercial viability of SAGD for in-situ recovery of bitumen from the Athabasca oil
sands deposit.
SAGD is a thermal production method for heavy oil and bitumen that pairs a horizontal
injection well with a horizontal production well drilled along a parallel trajectory. The
wells are drilled with a vertical separation of approximately 5 m with the injection well
above the production well, and with both wells positioned low in the reservoir. Saturated
steam is injected into the reservoir via the injection well where the steam rises and
expands throughout the reservoir.
Upon contact with the cold bitumen in the reservoir the steam condenses, thereby
heating the bitumen and reducing its viscosity. The goal is to reduce the bitumen
viscosity so that it will flow under gravity, along with the condensed steam, to the
production well. The production well in turn extracts the bitumen to the surface
production facilities.
The conceptual SAGD process proposed is shown on Figure 3.10-1. SAGD wells will
have a target horizontal length of 850 m. The injection well will be located approximately
5 m above the production well. Steam will be injected into the injection well at a steam
chamber pressure ranging from 1,500 kPaa to a maximum of 2,300 kPaa. This
maximum pressure is discussed in Section 3.9.2.
Steam injection rate will be on pressure control, to maintain constant pressure in the
steam chamber. As discussed in Section 3.9.2, AOSC will maintain SAGD reservoir
pressure below a maximum pressure of 2,300 kPaa. It is anticipated that this pressure
will be maintained through the ramp up and plateau phases of production. Later in life of
the wells, pressure may be reduced to as low as 1,500 kPaa. Initial operation at higher
pressures has been shown to promote steam conformance along the wells, and more
effectively heat the region between wellbores. This assists in effective delivery of heat to
the reservoir, which assists in improved recovery. Once sufficient vertical and lateral
steam chamber growth has occurred, operating pressures can be reduced. The timing
of this reduction will vary on a well and pad basis and will take into account pressure
variation of adjacent wells and pads.
AOSC has been evaluating the implementation of a wind down strategy late in life of the
wells, via numerical simulation. Late in life of the SAGD process when adjacent steam
chambers have coalesced and heat losses are increasing to the overburden, production
rates will decline and SORs will increase. At this stage of operation, a wind down
strategy can be a beneficial alternative to promote additional recovery. A possible
scenario involves maintenance of the steam chamber pressure by injection of a
non-condensable gas (NCG). This results in a reduction in SOR, and utilizes the
remaining reservoir energy to prolong bitumen production and maximize recovery. It is
anticipated that such a process would not be implemented until the well pair had
reached 50% recovery of the original bitumen in place. AOSC will continue to evaluate
the appropriate wind down strategy for the Project.
Production
Well
Peace River
l
«l
Fort McMurray O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton
Senior: Date: Drawn by: Date:
l RS 09/10/16 GDE 09/10/15
Reference:
SAGD PROCESS
Calgary
l
SCHEMATIC
Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
« Project Location into contract. FIGURE 3.10-1
Blanket Gas
Circulation
CirculationMode
Mode
F:\7349 AOSC\Drafting\2009\MacKAY River EIA\7349-EIA-WL-09.cdr
Peace River
l
«
l
Fort McMurray
O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 TN 09/10/15
Reference:
WELLBORE SCHEMATIC
Calgary
Peace River
l
«
l
Fort McMurray
O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 TN 09/10/15
Reference:
WELLBORE SCHEMATIC
Calgary
The initial well pairs required for Phase 1 are presented on Figure 3.11-1. Ten initial
surface pads, totaling 46 initial well pairs, were placed based on reservoir properties to
optimize recovery potential.
As shown on Figure 3.11-1, between three and six well pairs will be drilled on each pad.
This is based on surface considerations, and drilling azimuth changes that are required
to follow the contours of the reservoir. For illustrative purposes, a six well pair pad is
shown on Figure 3.11-2.
The number of well pairs per pad is a function of the total measured depth and lateral
reach that is achievable with drilling given the vertical depth of the reservoir at the
MRCP. Six well pair pads are optimal when the horizontal wells run parallel to the main
reservoir trend (zero degrees of azimuth change). In order to follow the base of pay
trend and optimize resource recovery potential, the azimuth of certain pads were shifted.
Directional planning determined that five well pair pads were optimal when the azimuth
change was between 0 and 10 degrees. Greater than a 10 degree azimuth shift meant
that only four well pairs per pad should be drilled. These azimuth shifts are presented
on Figure 3.11-3. Patterns AA and AE contain six well pairs, pattern AH contains five
well pairs due to reservoir quality considerations. Patterns AB, AD, and AJ contain five
well pairs, and patterns AC and AI contain four well pairs. Due to the presence of a
watercourse, patterns AF and AG were split into two pads of three wells each. To
further optimize resource recovery relative to base of pay, patterns AA and AC are
slightly fanned out; whereby the inter-well lateral spacing at the heels may be reduced to
as low as 110 m while at the toe the inter-well lateral spacing may increase to as much
as 140 m.
Well pattern placement has been further optimized to eliminate any possibility of drilling
collision between adjacent pads in the north-south orientation. As shown on
Figure 3.11-4, adjacent pads in a north-south orientation will be offset by a distance of
62.5 m, representing half the planned lateral spacing between SAGD pairs (125 m). On
Figure 3.11-5, the distance between the heels of one pad and toes of the next pad will
be 50 m.
Beyond the initial ten patterns discussed (Patterns AA to AJ), the conceptual layout of
seven subsequent infill patterns has been developed (Figure 3.11-6). These additional
patterns will serve as infill locations for Phase 1, or some of the initial locations required
for Phase 2. Exact well locations will change with future delineation drilling and
geological analysis. Phase 1 of the MRCP will require approximately 230 well pairs over
its operating life. Full development up to a maximum bitumen production design
capacity of 23,847 m3/d (150,000 bpd) is discussed in Section 3.11.2.
A conceptual subsurface well pattern layout for the full development to a maximum
bitumen production rate of 23,847 m3/d (150,000 bpd) is presented on Figure 3.11-7.
Areas on this map with pay greater than 10 m but no conceptual well locations reflect
geological uncertainty and require further well delineation. This layout contains
approximately 1,000 well pairs, and is expected to support production of 23,847 m3/d
(150,000 bpd) of bitumen for the full Project life. Further delineation and advances in
drilling technology and resource recovery will ultimately determine the exact number and
location of surface pads and well pairs. In the conceptual layout shown, the well pads in
the main portion of the MacKay River lease closest to the MacKay River Central Plant
(MCP) will be accessed with first steam from the MCP. Well pads in the southern
portion of the lease are expected to require steam from the MCP approximately seven
years after the start of Phase 1. Well pads in the northern portion of the lease will be
accessed approximately 5 years after startup of Phase 4, with steam supplied from the
MacKay River North Plant (MNP). Bitumen recovery is anticipated to exceed 270 million
m3 (1.7 billion barrels) over the life of the Project.
1:80,000
1 0 1
Peace River
l
« l
Fort McMurray
Kilometers
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 TN 09/10/15 INITIAL WELL PAIRS AND
Reference:
PATTERNS (RELATIVE TO
Calgary
l PAY THICKNESS)
Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 3.11-1
125m
850m
F:\7349 AOSC\Drafting\2009\McKAY River EIA\7349-EIA-WP-09.cdr
Peace River
«
l
l Fort McMurray O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton
Senior: Date: Drawn by: Date:
l RS 09/10/16 TN 09/10/15
Reference:
SIX WELL PAIR PAD
Calgary
l
Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 3.11-2
F:\7349 AOSC\Drafting\2009\McKAY River EIA\7349-EIA-WP-09.cdr
1:45,000
500 0 500
Peace River
l
« l
Fort McMurray
Meters
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 TN 09/10/15 PAD AZIMUTH SHIFTS
Reference:
(RELATIVE TO
Calgary
l PAY THICKNESS)
Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 3.11-3
Pad AF = 0o shift from trend
1:45,000
500 0 500
Peace River
l
« l
Fort McMurray
Meters
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 TN 09/10/15 PAD AZIMUTH SHIFTS
Reference:
(RELATIVE TO
Calgary
l BASE OF PAY)
Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 3.11-4
125m
850m
Peace River
«
l
l Fort McMurray O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton
Senior: Date: Drawn by: Date:
l RS 09/10/16 TN 09/10/15
Reference:
WELL PAIR OFFSET
Calgary
l
DISTANCES
Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 3.11-5
F:\7349 AOSC\Drafting\2009\McKAY River EIA\7349-EIA-WP-09.cdr
1:80,000
1 0 1
Peace River
l
« l
Fort McMurray
Kilometers
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 TN 09/10/15 INFILL WELLS
Reference:
(RELATIVE TO PAY
Calgary
l THICKNESS)
Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 3.11-6
F:\7349 AOSC\Drafting\2009\McKAY River EIA\7349-EIA-WP-09.cdr
1:250,000
5 0 5
Peace River
l
« l
Fort McMurray
Kilometers
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 TN 09/10/15 CONCEPTUAL
Reference:
WELL LAYOUT FOR
Calgary
l FULL DEVELOPMENT
Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 3.11-7
MacKay River Commercial Project 3-90 Geology and Reservoir
December 2009
AOSC used Steam, Thermal and Advanced Processes Reservoir Simulator (STARS)
software to evaluate the performance of the SAGD process for the Project. STARS is a
three phase, multi-component model that has the ability to simulate advanced thermal
recovery processes in oil sands reservoirs.
The simulations were run at a SAGD bottom hole pressure of 2,000 kPaa to represent
an average operating pressure between the expected range of 1,500 kPaa to
2,300 kPaa. The simulation model is 900 m long and 125 m wide to represent the
drainage area of a single SAGD well pair with a well length of 850 m, centred in the
middle of the model. The SAGD injection and production wells are vertically spaced at a
distance of 5 m.
A number of three dimensional simulation models containing a single SAGD well pair
were used to evaluate the SAGD performance of the 46 initial well pairs in patterns
AA-AJ, as shown on Figure 3.11-1. These simulations were evaluated and used in the
development of a representative type curve to represent a typical well pair for the IDA.
Steam Steam
Bitumen Rate Bitumen Rate
Year Injection Injection
(m3/d) (bpd)
Rate (m3/d) Rate (bpd)
1 37 233 84 528
2 175 1,101 397 2,497
3 173 1,088 424 2,667
4 169 1,063 419 2,635
5 134 843 350 2,201
6 102 642 276 1,736
7 82 516 231 1,453
8 66 415 211 1,327
9 55 346 190 1,195
10 46 289 177 1,113
11 40 252 166 1,044
12 35 220 151 950
The results shown are consistent with those expected from SAGD operations in the area
with similar reservoir quality. The geographically closest commercial SAGD project,
Suncor Energy (formerly Petro-Canada) MacKay River, has been operating for more
than six years. In their 2008 Performance Update to the ERCB, Suncor Energy
(formerly Petro-Canada) reported production rates for their MacKay River Project
ranging from approximately 111 to 191 m3/d (700 to 1,200 bpd) per well pair.
The type well presented provides a peak design rate of 175 m3/d (1,100 bpd), however,
it is expected that actual production rates will vary between 111 m3/d and 175 m3/d (700
bpd and 1,100 bpd). Therefore, AOSC is planning to drill 46 initial well pairs for
Phase 1. This number of wells was selected to ensure that the production design
capacity of 5,564 m3/d (35,000 bpd) can be met with the initial phase of drilling.
AOSC has assumed an overall reservoir water retention over the life of the Project of
15%. This value is considered to be conservative, and accounts for water retention
during normal SAGD operations, and higher water losses encountered for short periods
of time as new wells are started.
AOSC evaluated the possible extent of water retention at the MRCP via numerical
simulation and evaluation of the results of other commercial SAGD projects. The results
of both bounded and infinite acting reservoir models indicated the potential for reservoir
water retention in the range of 10 to 12% during normal SAGD operations, with a
maximum operating pressure of 2,300 kPaa. This is consistent with the experience of
other SAGD operators in the region which indicate water retention of approximately 10%
on a cumulative basis; however individual wells have indicated water retention as high
as 20 to 40% early in the life of wells or during various periods of operation. In addition,
Suncor Energy (formerly Petro-Canada) indicated an expected reservoir water retention
of up to 12% in their MacKay River Expansion application (Petro-Canada, 2005).
In order for the SAGD process to operate effectively, some difference between injection
and initial reservoir pressure is necessary. This is particularly true during start up and
ramp up of the SAGD process, when slightly higher temperatures and pressures assist
with effective delivery of heat to the reservoir. However, most SAGD operators attempt
to minimize pressure difference, and therefore water retention, over time. AOSC’s
modelling of circulation and ramp up indicate that during early time start up of SAGD
wells, the reservoir water retention could be as high as 40 to 50% for short periods of
time. This assumes a circulation start up at a maximum pressure of 2,300 kPaa, as
described in Section 3.10.2.1. To account for higher start up losses as new wells are
drilled to maintain bitumen production design capacity, AOSC has calculated an overall
water retention of 15% over the life of the Project. This value is considered to be
conservative, and will be confirmed via operation of the initial 46 well pairs. It is AOSC’s
intent to operate the SAGD process in an effective and energy efficient manner to
optimize production rates and SOR and minimize reservoir water retention.
A similar ramp up from first oil to full phase design capacity of 24 months for each phase
was assumed, as discussed in Section 3.12.2.2.
400 2500
2250
350
2000
300
1750
Rates (m3/d)
Rates (bpd)
250
1500
200 1250
1000
150
750
100
500
50
250
0 0
0 1 2 3 4 5 6 7 8 9 10 11 12
Years
F:\7349 AOSC\Drafting\2009\MacKAY River EIA\7349-EIA-WL-09.cdr
LEGEND
BITUMEN
STEAM
Peace River
l
«
l
Fort McMurray
O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 TN 09/10/15
Reference:
SINGLE SAGD
Calgary
16,000 100,000
90,000
14,000
80,000
12,000
70,000
Rates (m3/d)
Rates (bpd)
10,000
60,000
8,000 50,000
40,000
6,000
30,000
4,000
20,000
2,000
10,000
0 0
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46
Years
F:\7349 AOSC\Drafting\2009\MacKAY River EIA\7349-EIA-WL-09.cdr
LEGEND
BITUMEN
STEAM
WATER
Peace River
l
«
l
Fort McMurray
O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 TN 09/10/15
Reference:
PHASE 1
Calgary
l PRODUCTION PROFILE
Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 3.12-2
80,000 500,000
450,000
70,000
400,000
60,000
350,000
50,000
300,000
Rates (m3/d)
Rates (bpd)
40,000 250,000
200,000
30,000
150,000
20,000
100,000
10,000
50,000
0 0
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46
Years
F:\7349 AOSC\Drafting\2009\MacKAY River EIA\7349-EIA-WL-09.cdr
LEGEND
BITUMEN
STEAM
WATER
Peace River
l
«
l
Fort McMurray
O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 TN 09/10/15
Reference:
FULL DEVELOPMENT
Calgary
l PRODUCTION PROFILE
Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 3.12-3
MacKay River Commercial Project 3-96 Geology and Reservoir
December 2009
AOSC plans to measure and monitor downhole steam chamber pressure via horizontal
well instrumentation and observation wells. AOSC plans to equip the initial 46 SAGD
production wells with pressure measurement and/or thermocouples. All data collected
from these devices will be used to monitor and control the downhole reservoir pressure.
These data will be collected on a real time basis and integrated into the control and
monitoring system at the MCP.
With the SAGD process, some surface heave is possible due to heating and pressure
change in the bitumen reservoir. The surface deformation will occur gradually over the
lifetime of a well group (greater than 10 years). With small expected magnitudes and
slow deformation rates, no impact to surface water bodies or flow is expected. Natural
drainage patterns will adapt to changes and no substantial alterations in sub-basin
boundaries are expected. AOSC intends to implement a surface deformation monitoring
program. The specific technology for measuring the surface heave is yet to be
determined.
AOSC has evaluated the use of non-condensable gas (NCG) and steam co-injection as
a possible enhancement to SAGD. NCG, when injected at appropriate and controlled
volumes with steam, has several potential beneficial effects in the SAGD process
including lowering the SOR and improving the thermal efficiency of the process.
Additionally, NCG co-injection can be used as a means for pressure maintenance in
mature SAGD patterns to optimize economic recovery of bitumen. AOSC will continue
to study this process enhancement and monitor industry progress.
A lateral drainage well is a single horizontal well placed between two SAGD pairs, at the
base of pay, and is used to recover heated bitumen that may not otherwise be recovered
by the SAGD wells due to drainage geometries. The lateral drainage well would typically
be drilled after a period of normal SAGD operation. The well is operated initially on
steam injection and production intervals either at or below the pressures of the off-
setting steam chambers. The well is eventually placed into production mode only.
AOSC numerical simulation of this operating method has been shown to accelerate and
possibly increase bitumen recovery in an energy efficient manner. AOSC will continue
to evaluate this technology via numerical simulation, and monitoring of field results of
other operators using similar well configurations.
In addition to the evaluation of NCG as a steam additive for improved bitumen recovery
in SAGD, AOSC is also evaluating the use of solvents with steam. Bitumen viscosity
can be reduced substantially by either heating it or diluting it with solvents. There are
several joint industry projects and field pilots of various solvent and steam based
technologies. AOSC will continue to monitor this technology and evaluate for potential
future implementation.
AOSC will continue to explore emerging technologies for potential future application in
its commercial SAGD developments.
4 WELL DESCRIPTIONS
SAGD well pads will be designed to accommodate between three and six well pairs.
Well pads will be constructed such that emulsion from individual production wells will be
grouped together at the well pad. Emulsion will be pumped to the surface by downhole
pumps in each production well.
4.2.1 Drilling
The proposed SAGD horizontal wells will consist of a surface, intermediate, and
horizontal section. All of these wells will be spudded at an approximate angle ranging
from 35° to 45° from vertical and drilled to the McMurray Formation target using a build
rate of approximately 8° per 30 m. Current directional plans for the initial wells have an
average true vertical depth of 200 m and a horizontal completed length of 850 m. The
total measured depth of the wells will be approximately 1,300 m, depending on the well
trajectory. A typical schematic of both injection and production wells is presented on
Figure 4.2-1.
AOSC plans to follow a “batch” drilling process in which the surface section of all wells
on the pad will be drilled first. The surface section is required for well control purposes
while drilling and to case off any unstable zones in the glacial till. These surface holes
will be drilled and completed to comply with all applicable ERCB directives and
regulations.
Several or possibly all of the intermediate sections on a pad will be drilled next. The
intermediate section will remain at approximately 35 to 45° from vertical until the kickoff
depth is reached. At this point, directional drilling will begin using a mud motor and a
measurement while drilling (MWD) system. Intermediate casing will be run and set at
approximately 90° from vertical in the pay zone. For both injection wells and production
wells, this 298.5 mm casing has been engineered to withstand AOSC’s SAGD operating
conditions, will utilize high strength connections and will be cemented in place with a
thermal cement blend. These connections will incorporate a premium metal to metal
seal that will be monitored upon make-up. To further ensure hydraulic isolation, industry
recommended practices will be followed while drilling and cementing. AOSC will comply
with ERCB Directive 051 - Injection and Disposal Wells (1994). Due to the depth of the
McMurray reservoir, the base of groundwater protection will be covered by the
intermediate casing string with thermal cement from intermediate casing point to surface.
The final step in the “batch” drilling process will be the drilling of the horizontal sections.
The horizontal production wells will be landed first, using a similar directional drilling
assembly as used in the intermediate section. In addition, a gamma ray logging tool will
be used to identify reservoir quality, and a resistivity tool may also be run to gather
saturation information. The horizontal injection wells will be placed approximately 5 m
directly above the horizontal production wells using proven active ranging techniques.
Finally, the horizontal length for both injection and production wells will be completed
using a 219.1 mm slotted liner for sand control that is attached to a thermal debris seal
barrier inside the intermediate casing. The use of wire wrap or mesh screens and flow
control devices are among the possible alternatives that are being investigated for future
use.
All of the SAGD well sections will be drilled using a non-saline water, light polymer-
based drilling fluid. This system will be augmented with bentonite, polymers and lost
circulation material as hole conditions dictate.
4.2.2 Completions
To account for steam injection during the circulation phase, all production wells will be
licensed according to requirements in ERCB Directive 051 (1994).
Peace River
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Fort McMurray
O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 TN 09/10/15
Reference:
TYPICAL SAGD
Calgary
As discussed in Section 3.13, vertical observation wells that will be used to monitor
temperature, pressure, or both will be drilled to the base of the McMurray Formation.
These wells may be drilled and cased, or cemented in place. All of these wells will be
drilled with a water based mud system. Observation well wellheads will be designed for
SAGD operating conditions.
Cased observation wells may have instrumentation attached to the outside of a casing
string that is thermally cemented in place. The external instrumentation will be capable
of measuring temperature or pressure. These cased observation wells allow for the
retrieval of internal temperature monitoring equipment and provide the ability to run
cased hole logging tools. Both the casing and cement will be designed to meet all
thermal and operating requirements. The completion of a typical cased observation well
is presented on Figure 4.3-1.
Observation wells that are cemented in place may have a tubing string with
instrumentation externally attached. After the instrumentation is run, the entire wellbore
will be filled with thermal cement as shown on Figure 4.3-2.
Bundle of MI Cables
(Thermocouples) Zone
Piezometers of Interest
Internal Tubing
114.3mm OD
Premium connection casing landed just above the Devonian
F:\7349 AOSC\Drafting\2009\McKAY River EIA\7349-EIA-WP-09.cdr
Peace River
«l
l Fort McMurray O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton
Senior: Date: Drawn by: Date:
l RS 09/10/16 TN 09/10/15
Reference: TYPICAL CASED
Calgary
OBSERVATION WELL
l
Disclaimer: SCHEMATIC
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
« Project Location into contract. FIGURE 4.3-1
Surface Casing
177.8mm OD
Open Hole
158.8mm
Coil Tubing
31.8mm
Bundle of MI Cables
(Thermocouples) Zone
of
Interest
Centralizer
F:\7349 AOSC\Drafting\2009\McKAY River EIA\7349-EIA-WP-09.cdr
Peace River
«l
l Fort McMurray O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton
Senior: Date: Drawn by: Date:
l RS
Reference:
09/10/16 TN 09/10/15
TYPICAL CEMENTED IN
PLACE OBSERVATION
Calgary
l
Disclaimer:
WELL SCHEMATIC
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
« Project Location into contract. FIGURE 4.3-2
MacKay River Commercial Project 4-7 Wells
December 2009
Water source wells will be drilled and completed into the Empress Formation for
Phase 1.
The base case design for water source wells is a vertical well with a sand control screen.
Screens may be of a pre-pack, natural pack, or gravel pack completion. Other shallow
wells (less than 150 m) that are not penetrating the oil sands will be cased with standard
API casing, and may either be cemented, grouted, or held in place with bentonite chips
in the annulus. Schematic diagrams which represent Quaternary water source wells are
shown on Figure 4.4-1.
Water disposal wells penetrating any oil-bearing formations will also be cased with a
thermally compliant design that has premium connections and thermal cement from total
depth or intermediate casing point to surface. These wells may be completed with
screens, perforations, gravel packs, or open-hole completion. All disposal wells will be
drilled, completed, and tested in accordance with ERCB Directive 051 (1994), as shown
on Figure 4.4-2.
Water source and disposal well wellheads that penetrate the oil sands will be designed
to a minimum pressure rating of 11.8 MPa at 265°C.
Peace River
«
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l Fort McMurray O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton
Senior: Date: Drawn by: Date:
l RS
Reference:
09/10/16 TN 09/10/15
TYPICAL QUATERNARY
WATER SOURCE WELL
SCHEMATIC
Calgary
l
Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 4.4-1
F:\7349 AOSC\Drafting\2009\McKAY River EIA\7349-EIA-WP-09.cdr
Peace River
«
l
l Fort McMurray O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton
Senior: Date: Drawn by: Date:
l RS 09/10/16 TN 09/10/15
Reference: TYPICAL WATER
Calgary
DISPOSAL WELL
l
Disclaimer: SCHEMATIC
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 4.4-2
MacKay River Commercial Project 4-10 Wells
December 2009
The SAGD steam injection and production wellheads will be rated to 11.8 MPa at 265°C.
This will facilitate steam, production, and gas flow to enter or exit the wells in a safe and
controlled manner. Schematics of the injection and production wellheads are presented
on Figures 4.5-1 and 4.5-2, respectively.
The production wellheads will be designed to handle production from both long and short
tubing strings. The wellhead will also have valves to support the use of bubble gas and
casing gas, as well as ports to accommodate instrumentation.
The injection wellheads will be designed to handle injection down both the long and
short tubing strings. Ports in the wellhead will support the use of instrumentation as
required. The wellhead will be able to handle production of fluids up the heel string
during the SAGD startup phase.
Peace River
«
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l Fort McMurray O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton
Senior: Date: Drawn by: Date:
l RS 09/10/16 TN 09/10/15
Reference:
TYPICAL INJECTION
Calgary
l
WELLHEAD SCHEMATIC
Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 4.5-1
F:\7349 AOSC\Drafting\2009\McKAY River EIA\7349-EIA-WP-09.cdr
Peace River
«
l
l Fort McMurray O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton
Senior: Date: Drawn by: Date:
l RS 09/10/16 TN 09/10/15
Reference:
TYPICAL PRODUCTION
Calgary
l
WELLHEAD SCHEMATIC
Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 4.5-2
MacKay River Commercial Project 4-13 Wells
December 2009
AOSC will strive to prevent casing failures by following industry recommended practices
with regards to casing and cementing to ensure hydraulic isolation between the wellbore
and surrounding formations. AOSC will also continue to investigate new materials and
procedures used to construct the wellbores.
Process operating parameters, such as injection well blanket gas pressure and steam
injection rate, will be continuously monitored and any unexpected conditions will be
investigated. Casing failures are not anticipated as the SAGD operation is a continuous
process that is operated below the formation fracture pressure. As a result, the
downhole tubulars are not subjected to the same stress variations that occur from the
high temperature and pressure fluctuations as seen in cyclic steam processes.
5 FACILITIES DESCRIPTION
The Project will be developed with a phased construction strategy with an ultimate
bitumen production design capacity of 23,847 m3/d (150,000 bpd). Over the operating
life of the Project, one central processing facility (the MacKay River Central Plant (MCP))
and an additional remote steam generation facility (the MacKay River North Plant
(MNP)) will be required.
The MCP will be constructed in multiple phases. Phase 1 of the MCP will include
clearing, site preparation, and construction of the required Project infrastructure to
support a bitumen production rate of 5,564 m3/d (35,000 bpd). Facilities required for
subsequent phases of the Project will also be developed at the MCP. The anticipated
development timeline for the four phases is as follows:
Over time, the production rates will decline from the pads surrounding the MCP. In order
to sustain the MCP at bitumen treating capacity, AOSC will construct the MNP in the
north portion of the MacKay River lease. The MNP will generate sufficient steam to
produce 9,539 m3/d (60,000 bpd) of bitumen. All of the bitumen and produced water
produced at MNP will be sent to the MCP for treatment. Treated boiler feedwater (BFW)
from the MCP will be sent to the MNP through an interconnecting pipeline. When the
MNP is operational, the MCP will continue to process up to 23,847 m3/d (150,000 bpd).
It is anticipated that the MNP will be constructed approximately 5 years startup of
Phase 4.
Field facilities for the Project include SAGD well pads, source water, disposal well and
salt cavern wells, drilling sumps and camps, borrow areas, access roads, pipelines and
utility corridors.
AOSC will follow all applicable codes, regulations and directives in the design,
construction and operation of the facilities.
The MCP and associated facilities including soil stockpiles and substations will occupy
approximately 76 ha in 90-14 W4M. Separate MCP plot plans have been provided for
Phase 1 and the full development, as presented on Figures 5.1-1 and 5.1-2,
respectively. The main components of the MCP will include makeup water treatment,
steam generation, cogeneration, vapour recovery, bitumen treating, produced gas
recovery, produced water recycling and tankage. Access to the MCP will be via a short
addition from the proposed AOSC MacKay River Pilot Road.
The layout of the MCP has been designed with consideration given to the following:
Minimizing footprint;
Maximizing the use of existing disturbed areas;
Optimized logical process flow to enhance plant operability;
Allowances for construction laydown and soil stockpile areas;
ASRD FireSmart Wildfire Assessment System; and
Minimizing pre-build for future phases.
The MCP will be equipped with all the necessary facilities to process the produced
emulsion and annulus gases and to generate the steam required for the Project. The
following process areas/systems will be installed at the MCP:
Water treatment;
Steam generation;
Bitumen treatment;
Produced water de-oiling;
Produced gas recovery;
Cogeneration;
Tankage;
Flare system;
Glycol system; and
Utilities.
The integration of the various systems at the MCP is presented on a block flow diagram
(Figure 5.1-3).
Water required to generate steam will be preferentially sourced from treated produced
water. To account for water losses to the reservoir and from the plant, additional
makeup water will be sourced from groundwater wells. A detailed description of the
Project makeup water strategy is presented in Section 5.4
To minimize the makeup water and disposal requirements for the Project, AOSC will use
evaporators and concentrators to treat de-oiled water for use as BFW. The evaporator
distillate water will have a very low concentration of total dissolved solids (TDS) that will
be suitable for use in high pressure drum type boilers.
Inlet water from de-oiling will be pre-heated by cross-exchange with the hot BFW leaving
the evaporator in order to increase the efficiency of the evaporator process. De-aerated
water will then enter the evaporator sump where it will be continually recycled as brine to
the inlet of a bank of heat exchanger tubes. The brine will absorb the heat from steam
and be partially vapourized in this process. The brine liquid will fall back to the
evaporator sump having been concentrated in dissolved solids.
Water vapour will be separated in the evaporator sump before being compressed by a
mechanical vapour compressor. The steam will then move to the heat exchanger to
transfer heat to the colder liquid brine. The steam will condense as it moves through the
exchanger generating high quality BFW. The BFW will be cross-exchanged with the
incoming de-oiled water before being transferred to the BFW tank.
An evaporator blowdown stream will be transferred to a concentrator unit for further TDS
concentration. The concentrator process is similar to the evaporator except there is no
inlet/distillate heat exchanger or de-aerator. The blowdown from the concentrator will be
sent to the salt cavern well (Section 5.3.3). Acid will be used to reduce the pH of the
concentrator blowdown causing the silica to precipitate out and settle at the base of the
salt cavern. The return water from the salt cavern will be pumped to the disposal water
tank prior to disposal into a Class 1b disposal well.
Prior to being sent to the steam generators, BFW will be cross-exchanged with hot
process fluids to attain the maximum possible BFW temperature, which in turn will
minimize fuel gas consumption. Four steam generators each with a 156 MW output
power rating will be used to generate the required steam for Phase 1 development (up to
a bitumen production rate of 5,564 m3/d (35,000 bpd)). The installation of a power and
steam cogeneration unit is planned for Phase 2 of the Project development. The
cogeneration unit will comprise a gas turbine generator (GTG) with an electrical output of
85 MW (nominal) followed by a heat recovery steam generator (HRSG). AOSC is
currently working on the cogeneration design but will reserve full commitment to
cogeneration until detailed engineering studies are completed. However, the installation
of the cogeneration facilities is assumed for this application.
To support the maximum bitumen production rate of 23,847 m3/d (150,000 bpd), a total
of 13 steam generators and one HRSG will be used to generate the required steam. A
spare steam generator (bringing the total to 14) will also be installed. A steam
distribution pipeline network will deliver the steam from the MCP to the SAGD well pads
for injection into the reservoir.
Intermittent blowdown from the steam generators will be cooled before being recycled to
the produced water tank for treatment. Some of the intermittent blowdown stream will
flash and be vented to the atmosphere.
Details regarding the stack parameters and emission rates for each of the steam
generators and the cogeneration unit are presented in the Air Quality section of the EIA
(Volume 2, Section 2).
At the bitumen treating area, produced emulsion from the SAGD well pads will be
separated into bitumen, produced water and produced gases. Produced solids will also
be flushed on an intermittent basis to the desand system. After the produced gases are
separated in the inlet degasser, the emulsion will be cooled. Separation of the bitumen
and produced water streams will take place in the separator and treater vessels where
diluent will be added to aid gravity separation. The product will then be cooled again
before being transferred to the sales oil tanks for storage.
Sales oil must have a basic sediment and water (BS&W) content of less than 0.5% (by
volume) to meet pipeline specifications. Trim diluent will be added as required to ensure
that viscosity and density specifications are met. The sales oil will then be pumped to a
Lease Automated Custody Transfer (LACT) unit where it will be transferred in a pipeline
to market.
At the time of the Application, AOSC anticipates that synthetic crude oil (SCO) will be
used as diluent. AOSC will continue to evaluate market conditions and product
availability regarding diluent selection. The decision regarding choice of diluent will be
finalized during detailed engineering.
Produced water from the separator and treater vessels will be cooled and sent to the
de-oiling area for treatment. Produced gases from the inlet degasser will be sent to the
produced gas area for treatment prior to being burned in the steam generators.
The de-oiling system will be used to remove most of the oil from the produced water
before water treatment. The skim tank and induced static floatation (ISF) units will
separate oil by gravity.
The slop tanks will collect various sources of oily water, many of which will contain
water, oil, and solids. The bitumen separated from the slop oil treating package will be
sent to the sales oil tanks. The water and solids separated from the slop oil treating
package will be sent to the desand system for treatment.
The desand system will collect various sources of oily water streams with solids. The
solids will be separated by gravity and periodically trucked to the salt cavern or to an
approved third party waste handling facility. The water from the desand system will be
recycled to the skim tank for oil removal.
Annulus casing gas from the production wells will be gathered and transported to the
MCP in an above ground pipeline. Additional produced gas (that was entrained in the
emulsion) will be recovered from the produced gas separator. A vessel will separate
water from the well pad annulus gases and produced gas from the produced gas
separator before these streams are sent to the fuel gas system. Vapours recovered
from the separator and treater vessels containing diluent will be cooled and separated to
recover the produced gas, hydrocarbon liquids and produced water.
The primary fuel supply for the Project will be purchased natural gas from a third party
that will enter the MCP from a pipeline. Produced gas will be preferentially burned in the
steam generators and HRSG. The cogeneration GTG will burn only purchased natural
gas. The Project fuel gas distribution system will include pressure let-down stations to
ensure that all users at the MCP and at the SAGD well pads receive fuel gas at the
correct pressure.
5.1.6 Tankage
All storage tanks on site will be built pursuant to ERCB Directive 055 – Storage
Requirements for the Upstream Petroleum Industry (2001a). Tank dikes will be
constructed to provide secondary containment as required.
All hydrocarbon tanks (Table 5.1-1) will be connected to a vapour recovery unit (VRU) to
minimize fugitive emissions and increase energy efficiency (Figure 5.1-9). The VRU will
collect various sources of low pressure off-gas, particularly tank blanketing gas, to
mitigate fugitive emissions. The gases will be cooled to condense the water and
hydrocarbon liquids. The compressed gas will be sent to the diluent recovery area first
and ultimately burned in the steam generators as mixed fuel gas. A spare VRU
compressor will provide redundancy in the event of a compressor outage.
Any water storage tank that meets the “Criteria for the Surface Discharge of Collected
Surface Run-on/Run-off Waters,” specified in Section 11 of ERCB Directive 055 (2001a),
may not have a dike around the tank. These storage tanks will utilize the site drainage
and ditches to direct any leaks to the site runoff pond for collection. The number of
tanks and storage volumes may change during detailed design.
The MCP will be equipped with a flare system to handle foreseeable process upsets,
emergency conditions, and maintenance scenarios. The flare systems will be designed
in accordance with ERCB Directive 060 – Upstream Petroleum Industry Flaring,
Incinerating and Venting (2006a). Under normal operating conditions, there will be no
flaring of process vapours. The flare stacks will each be equipped with a continuous
pilot and wind shroud and will be continuously purged with natural gas to prevent air
ingress. The flare knock-out drum will remove and recycle liquids present in the flare
gas streams. The flare stacks will be sized and located to meet heat radiation limits for
personnel and equipment. Details regarding the stack parameters and emissions from
the flare stacks are presented in the Air Quality section of the EIA (Volume 2, Section 2).
5.1.8 Utilities
The glycol heat integration circuit will improve the energy efficiency of the MCP by
recovering lower grade heat and transferring it to various cold users throughout the
facility. Process users requiring heat such as combustion air pre-heaters, fuel gas
heaters, building heat, some heat tracing, and tank heating will be supplied by the glycol.
Once the process heat requirements are satisfied, the unusable low grade heat will be
rejected to the atmosphere in the aerial coolers. A natural gas fired glycol heater will be
installed to provide heat during winter shutdowns.
A portion of the utility water will be treated further by disinfection to use as domestic
water. Domestic water will be used for sinks, toilets, safety showers and eye-wash
stations.
All drinking water for the Project will be purchased from an appropriate third party
supplier.
Material balances have been prepared for Phase 1 of the Project development
(Figure 5.1-10) and for the full development (Figure 5.1-11).
Energy balances have also been prepared for Phase 1 of the Project development and
for the full development (Table 5.1-3). The energy balances were prepared based on an
evaluation of the lower heating values (LHV) of all energy-containing streams entering or
exiting the facility. The energy efficiency of the Project was calculated on the following
formula:
LEGEND
PLANT BOUNDARY
U/G PIPES OR LINES 1:5,000
75 0 75
EDGE OF DITCH
O/H POWER LINE
Peace River
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Fort McMurray
Meters
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
FENCE
Project Code: Technical: Date:
UNIT BOUNDARY 7349-514 BF 09/10/15
Edmonton
TRANSFORMER Senior: Date: Drawn by: Date:
l
RS 09/10/16 GS 09/10/15
Reference: PHASE 1
Calgary
l
MCP PLOT PLAN
Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 5.1-1
F:\7349 AOSC\Drafting\2009\MacKAY RIVER EIA\7349-EIA-FAC-09.cdr
LEGEND
PLANT BOUNDARY
PHASE 1 BUILDINGS 1:5,000
75 0 75
PHASE 2 (FUTURE)
PHASE 3 (FUTURE)
Peace River
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Fort McMurray
Meters
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
PHASE 4 (FUTURE)
Project Code: Technical: Date:
U/G PIPES OR LINES 7349-514 BF 09/10/15
Edmonton
EDGE OF DITCH Senior: Date: Drawn by: Date:
l
RS 09/10/16 GS 09/10/15
O/H POWER LINE
FENCE
Reference: FULL DEVELOPMENT
UNIT BOUNDARY
Calgary
l
MCP PLOT PLAN
TRANSFORMER Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 5.1-2
F:\7349 AOSC\Drafting\2009\MacKAY RIVER EIA\7349-EIA-GSA-09.cdr
Peace River
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Fort McMurray O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 GS 09/10/15
Reference:
GENERAL BLOCK FLOW
Calgary
l DIAGRAM
Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 5.1-3
F:\7349 AOSC\Drafting\2009\Mackay River EIA\7349-EIA-SCH-09.cdr
Peace River
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Fort McMurray
O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 GDE 09/10/15
Reference:
Calgary
WATER TREATMENT
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Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 5.1-4
F:\7349 AOSC\Drafting\2009\Mackay River EIA\7349-EIA-SCH-09.cdr
Peace River
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Fort McMurray
O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 GDE 09/10/15
Reference:
Calgary
STEAM GENERATION
l
Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 5.1-5
F:\7349 AOSC\Drafting\2009\Mackay River EIA\7349-EIA-SCH-09.cdr
Peace River
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Fort McMurray
O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 GDE 09/10/15
Reference:
Calgary
BITUMEN TREATMENT
l
Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 5.1-6
F:\7349 AOSC\Drafting\2009\Mackay River EIA\7349-EIA-SCH-09.cdr
Peace River
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Fort McMurray
O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 GDE 09/10/15
Reference:
Calgary
DE-OILING
l
Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 5.1-7
F:\7349 AOSC\Drafting\2009\Mackay River EIA\7349-EIA-SCH-09.cdr
Peace River
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Fort McMurray
O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 GDE 09/10/15
Reference: PRODUCED GAS
Calgary RECOVERY
l
Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 5.1-8
F:\7349 AOSC\Drafting\2009\Mackay River EIA\7349-EIA-SCH-09.cdr
Peace River
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Fort McMurray
O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 GDE 09/10/15
Reference: VAPOUR RECOVERY AND
Calgary FUEL GAS SYSTEM
l
Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 5.1-9
Produced Gas 22,256 sm3/cd
23,740 sm3/sd
Diluent
5,044 m3/cd (SCO)
5,380 m3/sd (SCO)
Bitumen 5,564 sm3/cd 2,086 m3/cd (Gas Condensate)
5,935 sm3/sd 2,225 m3/sd (Gas Condensate)
Natural Gas
1,026,933 sm3/cd Boiler Feed Water 15,858 m3/cd
1,095,395 sm3/sd 16,916 m3/sd
STEAM GENERATION WATER TREATING
Utility & Pad Fuel Gas Non-Recoverable 400 m3/cd Recoverable 433 m3/cd Disposal Water 231 m3/cd
52,460 sm3/cd Utility Water 427 m3/sd Utility Water 462 m3/sd 246 m3/sd
55,957 sm3/sd
NOTES:
1) Sales Oil Rates include 0.5% BS&W (54 m3/cd water based on SCO diluent).
2) Produced Water Rate taken from SCO case
3) Calendar day rates (cd) are 93.75% of the stream day rates (sd) based on plant availability. Peace River
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Fort McMurray
O I L S A N D S C O R P.
4) Volumetric rates for steam are based on cold water equivalent (CWE). Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 GDE 09/10/15
Reference: PHASE 1 MATERIAL
Calgary BALANCE
l
Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
« Project Location into contract. FIGURE 5.1-10
Produced Gas 95,388 sm3/cd
101,747 sm3/sd
Diluent
21,617 m3/cd (SCO)
23,058 m3/sd (SCO)
Bitumen 23,847 sm3/cd 8,941 m3/cd (Gas Condensate)
25,437 sm3/sd 9,538 m3/sd (Gas Condensate)
Natural Gas
4,932,838 sm3/cd Boiler Feed Water 67,965 m 3/cd
5,261,693 sm3/sd 72,496 m3/sd
STEAM GENERATION WATER TREATING
Utility & Pad Fuel Gas Non-Recoverable 1,300 m 3/cd Recoverable 1,787 m3/cd Disposal Water 2030 m 3/cd
251,411 sm 3/cd Utility Water 1,387 m 3/sd Utility Water 1,906 m 3/sd 2165 m3/sd
268,172 sm3/sd
NOTES:
1) Sales Oil Rates include 0.5% BS&W (228 m 3/cd water based on SCO diluent).
2) Produced Water Rate taken from SCO case.
3) Calendar day rates (cd) are 93.75% of the stream day rates (sd) based on plant availability. Peace River
l
«l O I L S A N D S C O R P.
4) Volumetric rates for steam are based on cold water equivalent (CWE). Fort McMurray
Over time, production rates from initial wells will decline. In order to maintain production
volumes, additional SAGD wells will be drilled. As development proceeds to the north
portion of the MacKay River lease, a remote steam generation facility (MNP) will be
constructed to serve the wells in the area. The MNP will generate sufficient steam to
produce 9,539 m3/d (60,000 bpd) of bitumen. All of the bitumen and water produced at
the MNP will be sent to the MCP for treatment. Treated BFW from the MCP will be sent
to the MNP through an interconnecting pipeline. When the MNP is operational, the MCP
will continue to process up to 23,847 m3/d (150,000 bpd). It is anticipated that the MNP
will be constructed approximately 5 years after startup of Phase 4.
The MNP will occupy approximately 15 ha in 91-15 W4M (Figure 5.2-1). The following
process areas/systems will be installed at the MNP:
The MNP will produce sufficient steam to produce 9,539 m3/d (60,000 bpd) of bitumen.
Emulsion produced from SAGD well pads serviced by the MNP will be cross-exchanged
with BFW at the MNP before being transported to the MCP bitumen treating area.
Produced gas from SAGD well pads serviced by the MNP will be recovered at the MNP
where it will be burned in the MNP steam generators. All of the bitumen treatment,
produced water de-oiling and water treatment will continue to occur at the MCP. Treated
BFW will be supplied to the MNP from the MCP through an interconnecting pipeline.
Once the MNP is operational, the overall Project material and energy balances, and
chemical consumption rates will not change. A block flow diagram has been prepared to
illustrate how the MNP will be integrated with the MCP (Figure 5.2-2).
LEGEND
PLANT BOUNDARY
U/G PIPES OR LINES 1:2,500
50 0 50
EDGE OF DITCH
O/H POWER LINE
Peace River
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Fort McMurray
Meters
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
FENCE
Project Code: Technical: Date:
TRANSFORMER 7349-514 BF 09/10/15
Edmonton
Senior: Date: Drawn by: Date:
l
RS 09/10/16 GS 09/10/15
Reference:
Calgary
MNP PLOT PLAN
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Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 5.2-1
F:\7349 AOSC\Drafting\2009\Mackay River EIA\7349-EIA-SCH-09.cdr
NOTES:
1) UNLESS OTHERWISE NOTED, QUANTITY OF EACH MAJOR PIECE OF PROCESS EQUIPMENT IS ONE.
Peace River
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Fort McMurray
O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 GDE 09/10/15
Reference: MNP INTEGRATION
Calgary BLOCK FLOW DIAGRAM
l
Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 5.2-2
MacKay River Commercial Project 5-24 Facilities Description
December 2009
Field facilities for the Project include SAGD well pads, source water and disposal wells,
a salt cavern well, drilling sumps and camps, borrow areas, access roads, pipelines and
utility corridors.
Ten SAGD well pads will be required for the initial development of Phase 1, and
approximately 200 SAGD well pads with an average of about five well pairs per pad will
be constructed for the full development over the life of the Project. Emulsion will be
pumped to the surface by downhole pumps in each production well.
High pressure steam will be distributed to each SAGD well pad from the MCP or MNP.
A header on each SAGD well pad will distribute steam to each injection well. Emulsion
from each production well will be grouped into a header before combining with the
production from other SAGD well pads in a pipeline network that leads to the MCP.
Produced gas will be gathered at the well pads and then used as fuel for the steam
generators. Fuel gas will be sent to each SAGD well pad in a pipeline to be used for
bubbler and casing gas. Each SAGD pad will have test apparatus to allow testing of
bitumen and produced water rates from each well.
To reduce the well head pressures during startup circulation, temporary skids may be
added at the SAGD well pads. The temporary skids would include a separator and
pumps capable of handling the startup volumes from multiple well pairs. The vapour
from the temporary skid would flow into the annulus gas pipeline and the liquids from the
separator would be pumped into the emulsion pipeline. A well pad schematic is
presented on Figure 5.3-1.
Non-saline water source wells will be completed within the MacKay Channel of the
Empress Formation. Additional non-saline water source wells may be completed in the
Thickwood Valley Channel of the Empress Formation. Saline or alternative water source
wells will be completed within a suitable aquifer to be determined based on the results of
the winter 2010 water source exploration program (Section 5.4). A typical water source
well pad will occupy an area of 1 ha.
The Project will also require a Class 1b disposal well that will be operated in conjunction
with the salt cavern well (Section 5.3.3). Brine returns from the salt cavern will be
injected into the Project disposal well. A typical disposal well pad will occupy an area of
1 ha.
The concentrated blowdown waste stream from the evaporator will be injected into a salt
cavern with a simultaneous acid stream via separate tubing strings, to enable mixing in
the open cavern space. The salt cavern well is located adjacent to the MCP
(Figure 1.2-3). The simultaneous acid injection provides pH buffering to force the
precipitation of silica which will settle and remain in the cavern bottom. The brine return,
primarily sodium chloride (NaCl) dissolved in water, from the salt cavern will be injected
into a Class 1b disposal well.
A separate application will be submitted to allow for disposal into the salt cavern. In
order to create the void space in the salt cavern prior to disposal, the cavern approvals
and licensing must be completed to provide 10 to 12 months of cavern washing prior to
the startup of the MCP. This means the source and disposal wells, pads, roads, power,
pipelines, and the salt cavern washing facilities need to be constructed and
commissioned prior to commencement of cavern washing.
The initial cavern wash water will come from the Empress Formation with the salt cavern
brine return stream being sent for disposal into the Keg River Formation. The anticipated
cavern wash water rate will average approximately 1,635 m³/d for the 10 to 12 month
washing period. Once SAGD operations commence, the cavern washing will continue
using the concentrator blowdown. Indications are the Keg River Formation water has a
very high salinity (TDS > 250,000 ppm) which is similar to the TDS of the salt cavern
brine returns. The salt cavern brine returns are expected to be compatible with the
water in the Keg River Formation.
The Project will include a camp (MRCP camp) with capacity to accommodate up to 600
people (Figure 1.2-3). This camp will house both construction and operations personnel.
The camp will be located on a site that is currently proposed to be used as a borrow
area for construction of the AOSC MacKay River Pilot Road.
Drilling camps and sumps will be required to support ongoing drilling of the SAGD well
pairs as replacement patterns are required (Figure 1.2-3). Drilling camps will be set up
to accommodate the required drilling rigs, service rigs, well site services and support
personnel. Drilling camp placement will be adjusted to accommodate pad locations to
minimize travel distance for the workers on the rigs.
Fill material will be required during development of the Project. AOSC has reviewed
available published data and information collected during the terrestrial studies
conducted as part of the Project EIA to identify potential borrow areas (Figure 1.2-3).
AOSC anticipates that the borrow areas identified to date will provide suitable fill material
for construction of all Phase 1 facilities. Additional investigation work will be ongoing
throughout the MacKay River lease to evaluate additional potential borrow areas to
support future development.
Where possible, borrow areas will be sited as close as practical to the areas where the
material is needed in road and pad construction work, which reduces the linear
disturbance.
Development of the Project will require infrastructure to connect the field facilities to the
MCP, the MNP and the existing regional infrastructure. Where required, authorizations
for watercourse crossings will be obtained from AENV, Fisheries and Oceans Canada
(DFO) and Transport Canada. The types of watercourse crossings proposed for the
Project are evaluated in the Hydrology section of the EIA (Volume 3, Section 6).
The Pilot road is currently pending regulatory approval by ASRD. The MacKay River
Pilot Road is a 26 km long road that will connect to Highway 63 via the existing LOC
830746 (Petro-Can Road) (Figure 1.2-2).
AOSC has evaluated the potential effects of above ground pipelines on wildlife
(Volume 4, Section 11) and will implement appropriate mitigation measures to enable
wildlife to cross these pipelines.
Corridors between the MCP and the disposal wells will include an 8 m wide road, a
buried pipeline trench and areas for soil salvage (Figure 5.3-5). The required ROW for
these utility corridors will have a maximum width of 39 m.
(Figure 5.3-6). The required ROW for this utility corridor will have a maximum width of
48 m. The proposed crossing of the MacKay River will be via a clear-span bridge.
An undisturbed allowance for a future third party ROW has been allocated between the
MCP and the existing utility ROW that may be used for both a diluent supply pipeline
and a sales oil pipeline. AOSC will continue to evaluate options for diluent and sales oil
pipelines based on consultation with third party providers.
AOSC has held discussions with ATCO and the Alberta Electrical System Operator
(AESO) regarding power supply infrastructure for the Project. Based on these
discussions ATCO has issued a 101 Waiver to AOSC and in turn AOSC has
successfully filed a Preliminary Access Application (PAA) with the AESO for permission
to construct a tie-in to the ATCO facility and a 240 kV/ 144 kV substation to serve the
Project needs. The close proximity of the ATCO 240 kV transmission line will minimize
the linear disturbance needed to bring power to the site. Once the cogeneration unit is
constructed in Phase 2, excess power will be exported to the provincial power grid using
the same facilities.
Peace River
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Fort McMurray
O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 GDE 09/10/15
Reference: SAGD WELL PAD
Calgary SCHEMATIC
l
Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 5.3-1
PACKAGE
SKID
F:\7349 AOSC\Drafting\2009\MacKAY RIVER EIA\7349-EIA-FAC-09.cdr
LEGEND
PRODUCER WELLHEAD
1:2,000
INJECTOR WELLHEAD
30 0 30
POWER LINE (O/H) (BY OTHERS)
POWER LINE (U/G)
Peace River
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Fort McMurray
Meters
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
UTILITY TRANSFORMER Project Code: Technical: Date:
7349-514 BF 09/10/15
NOTES Edmonton
Senior: Date: Drawn by: Date:
l
1. PAD 100 DATUM N000.000, E000.000 GEODETIC EQUIVALENT IS TBD. RS 09/10/16 GS 09/10/15
2. PAD BENCHMARK ELEVATION 100.000 = TBD AMSL Reference: TYPICAL SAGD
Calgary
l
WELL PAD PLOT PLAN
Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 5.3-2
F:\7349 AOSC\Drafting\2009\MacKAY RIVER EIA\7349-EIA-GSA-09.cdr
Peace River
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Fort McMurray O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 GS 09/10/15
Reference: TYPICAL ABOVEGROUND
Calgary PIPELINE ROW
l
Disclaimer: CROSS-SECTION
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 5.3-3
F:\7349 AOSC\Drafting\2009\MacKAY RIVER EIA\7349-EIA-FAC-09.cdr
1:300
5 0 5
Peace River
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Fort McMurray
Meters
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton
Senior: Date: Drawn by: Date:
l
RS 09/10/16 GS 09/10/15 TYPICAL BURIED PIPELINE
Reference: ROW CROSS-SECTION -
Calgary
l
SOURCE WATER AND SALT
Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
CAVERN WELLS
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 5.3-4
F:\7349 AOSC\Drafting\2009\MacKAY RIVER EIA\7349-EIA-FAC-09.cdr
1:300
5 0 5
Peace River
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Fort McMurray
Meters
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton
Senior: Date: Drawn by: Date:
l
RS
Reference:
09/10/16 GS 09/10/15
TYPICAL BURIED PIPELINE
Calgary
ROW CROSS-SECTION
l
Disclaimer:
- DISPOSAL WELLS
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 5.3-5
F:\7349 AOSC\Drafting\2009\MacKAY RIVER EIA\7349-EIA-FAC-09.cdr
1:300
5 0 5
Peace River
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Fort McMurray
Meters
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton
Senior: Date: Drawn by: Date:
l
RS
Reference:
09/10/16 GS 09/10/15
MNP ACCESS AND UTILITY
Calgary
CORRIDOR ROW
l
Disclaimer:
CROSS-SECTION
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 5.3-6
MacKay River Commercial Project 5-34 Facilities Description
December 2009
Water is a key component in the SAGD process and is used primarily for steam
generation, but also for other plant and domestic functions. Water use at the Project
results in the vast majority of water being recycled, some water being used by plant
processes resulting in disposal, and some water being consumed by reservoir retention.
The selected water treatment technology for the MCP is expected to return a minimum
of 95% of the produced water to the reservoir as steam. Because some of the water is
consumed by plant and reservoir processes, a makeup water supply is required. AOSC
is working to minimize water losses at the MCP by:
The proposed water use strategy is targeted to meet the following objectives and criteria:
The hydrogeology LSA is bounded by the Athabasca River in the south and east,
extends up to 68 km to the northwest from the MCP and covers an area of
approximately 50 contiguous townships (approximately 466,000 ha) (Figure 5.4-1).
Petrophysical logs from over 1,000 wells were evaluated to describe the hydrogeology
baseline for the LSA. AOSC’s exploration program has included the drilling and testing
of two wells with saline aquifer targets, plus nine non-saline wells and associated
observation wells (Figure 5.4-1). These wells were drilled into various strata based on
mapping from logs, seismic interpretation and electromagnetic (EM) survey data
collected by AOSC.
In the winter of 2008/2009, AOSC drilled and tested two Basal McMurray Aquifer wells
located within 14 km of the MCP: 10-1-90-14 W4M and 11-29-89-12 W4M. Neither
location proved to be a feasible industrial water source candidate based on limited
formation pressure, low hydraulic conductivity (in part due to residual bitumen
saturation), poor deliverability and lack of areal extent.
Devonian
Within the Devonian-aged strata in the hydrogeology LSA, only the Keg River Formation
has the potential for suitable hydraulic conductivity. The Keg River Formation is not a
suitable water supply for steam generation due to very high TDS (approximately 250,000
ppm). The Keg River Formation is proposed as the Project disposal zone as described
in Section 5.4.5.
In the winter of 2008/2009 AOSC drilled wells in all three channel aquifers. Test results
showed that they are suitable water supply candidates. Based on tested aquifer
deliverability, water quality and mapped extent, the MacKay Channel is the best
candidate groundwater source for non-saline Project water requirements. The
Thickwood Valley is considered a contingent groundwater source for the Project based
on testing results and mapped extent. The Birch Channel is also considered a
contingent groundwater supply for the Project.
The proposed winter exploration program also extends beyond the hydrogeology LSA
into the hydrogeology regional study area (RSA) in search of a suitable saline water
supply. Upon completion of the 2009/10 drilling and testing program, AOSC will
evaluate the technical merits of a saline water supply option and determine its suitability
for the Project. Part of this determination will address the criteria outlined in the Water
Conservation and Allocation Guideline for Oilfield Injection (AENV 2006). If, based upon
this evaluation, a saline water supply is identified and determined to be a suitable option
for the Project, AOSC will amend its makeup water strategy for the Project to maximize
use of saline water.
The Project will have a design production capacity of 23,847 m3/d (150,000 bpd) of
bitumen when fully developed. Current plans see the Project developed in four phases:
In order to meet the Project’s water demands, AOSC plans to utilize the following
groundwater sources:
1. Phase 1 - 5,564 m³/d (35,000 bpd): AOSC will source water to support Phase 1
from the Empress Channel Aquifer within the MacKay Channel. This channel
can supply a steady-state non-saline volume of at least 3,198 m3/d that will
satisfy all water needs including makeup water, utility water and domestic water.
2. Full development - 23,847 m3/d (150,000 bpd): AOSC will source water to
support the full development by continuing to utilize the Empress Channel
Aquifer within the MacKay Channel to provide 3,087 m3/d of utility water. An
additional 11,147 m3/d makeup water will be sourced from a saline or alternative
supply.
Produced water (steady state rate of 13,480 m3/d) separated from the emulsion;
and
Non-saline makeup water and recoverable utility water sourced from the
Empress Formation (steady state rate of 2,798 m3/d, excluding the non-
recoverable utility water of 400 m3/d).
The anticipated produced water volumes, make-up and utility water requirements for
Phase 1 are presented on Figure 5.4-2 and Table 5.4-1 on an annual average basis.
The Phase 1 water balance is presented on Figure 5.1-10.
Notes:
1. Produced water and make-up water volumes are based on annual average flow rates.
2. The make-up water volumes represent the water required to make steam it excludes the unrecoverable utility water.
3. Unrecoverable non-saline water does not return to process i.e. Domestic Water, drilling & completions, construction activities, silt flush, dust control, etc.
4. Recoverable non-saline water is required for seal flush, chemical dilution, and utility stations (for example floor washes), etc.
Recoverable non-saline water will eventually be used as boiler feed water.
5. Total make-up water is the sum of recoverable utility water + saline make-up water + non-saline make-up water.
6. Plant losses include water loss to product sales oil (54 m3/cd), de-aerator evaporator vent, BFW tank vent & steam generator intermittent blow down vent.
7. Disposal volumes may vary due to operating upsets, system reliability, and produced water fluctuations.
8. Saline Water Use (%) = Saline Water Use x 100
(Steam Inj + Disposal)
9. Non-Saline Water Use (%) = Non-Saline Water Use x 100
(Steam Inj + Disposal)
10. Year 2012 and 2013 are the construction years for Phase 1. The water volumes represent average values for construction, drilling and completions.
MacKay River Commercial Project 5-39 Facilities Description
December 2009
Produced water (steady state rate of 57,770 m³/d) separated from the emulsion;
The additional 11,147 m3/d will be sourced from a saline or alternative supply;
and
Non-saline recoverable utility water sourced from the Empress Formation (steady
state rate of 1,787 m³/d, excludes non-recoverable utility water).
The anticipated produced water volumes, make-up and utility water requirements for full
development are presented (Figure 5.4-3 and Table 5.4-2) on an annual average basis.
An assumed TDS concentration of 10,000 mg/L was used for the purpose of generating
a material balance. AOSC recognizes that an increase in the TDS concentration of the
saline water source will increase the disposal rate from the evaporator concentrator
which will increase the makeup water demand.
The full development water balance is presented on Figure 5.1-11. Based on the water
rates presented in the water balance, the percentage of non-saline water use and saline
water use can be calculated as follows:
In February 2009, the ERCB and AENV jointly issued Draft Directive - Requirements for
Water Measurement, Reporting and Use for Thermal Insitu Oil Sands Schemes (2009a).
Section 7 of the draft directive prescribes certain limits for non-saline make-up water on
a calendar year basis. At the time of filing this Application, the draft directive has not
been finalized and is not in force. However, based on the Project water requirements,
and assuming the draft directive becomes applicable to the Project, AOSC would require
a relaxation on the maximum limit of non-saline makeup water (10%) on a calendar year
basis for Phase 1. It is anticipated that no relaxation of the water use draft directive will
be required beyond Phase 2 steady state operations.
Notes:
1. Produced water and make-up water volumes are based on annual average flow rates.
2. The make-up water volumes represent the water required to make steam it excludes the unrecoverable utility water.
3. Unrecoverable non-saline water does not return to process i.e., domestic water, drilling & completions, construction activities, silt flush, dust control, etc.
4. Recoverable non-saline water is required for seal flush, chemical dilution, and utility stations (for example floor washes), etc.
Recoverable non-saline water will eventually be used as boiler feed water.
5. Total make-up water is the sum of recoverable utility water + saline make-up water + non-saline make-up water.
6. Plant losses include water loss to product sales oil (228 m3/cd), de-aerator evaporator vent, BFW tank vent & boiler intermittent blow down vent.
7. Disposal volumes may vary due to operating upsets, system reliability, and produced water fluctuations.
8. Saline Water Use (%) = Saline Water Use x 100
(Steam Inj + Disposal)
9. Non-Saline Water Use (%) = Non-Saline Water Use x 100
(Steam Inj + Disposal)
10. Year 2012 and 2013 are the construction years for Phase 1. The water volumes represent average values for construction, drilling and completions.
MacKay River Commercial Project 5-41 Facilities Description
December 2009
The expected annual average disposal volumes for Phase 1 and the full development
are presented in Tables 5.4-1 and 5.4-2. Peak instantaneous disposal rates will be
higher than these values for short periods.
Although the Keg River Formation porosity was found to be “partly to completely
occluded with halite” (Suncor Energy, 2005) at the Suncor Energy MacKay River Project,
some wells have been tested by other operators to have encouraging DST (drill stem
test) results (e.g., 00/06-02-097-12W4/0, DST1) or water injection tests (e.g., 100/02-32-
089-12W4). Therefore, during the winter 2009/2010 water drill and test program, AOSC
is planning to evaluate the Keg River Formation at 7-23-90-14 W4M to confirm
wastewater disposal capability.
In northeastern Alberta, one concern with deep well disposal into the Keg River
Formation is the removal of the overlying aquiclude (salt within the Prairie Evaporite
Formation) by dissolution. The complete removal of salt or dissolution edge is
approximately 40 km east of 7-23-90-14 W4M. It is difficult to map the onset of salt
dissolution because the salt scarp edge is not smooth but digitate (Hein et al, 2008) and
there is limited deep well control. However, the edge can be inferred by the structure of
the Devonian surface (Figure 5.4-6) and the presence of circular features that are
AOSC concludes that the Prairie Evaporite thickness and integrity plus disposal well
distance from the salt dissolution area, ensures strong isolation between the Keg River
Formation and younger strata.
Driers
There are few examples of commercial scale driers being installed in a SAGD facility.
Based on anecdotal evidence and experience from AOSC personnel on previous jobs,
industrial driers installed to treat evaporator/concentrator blowdown have been plagued
with operational problems. More development work would be needed to prove reliability
before AOSC would consider using them for the Project.
Filter Presses
Filter presses could be used to dewater the evaporator/concentrator pH adjusted
blowdown to a cake, however, the water from the filter press must be sent to a disposal
well. The salt cavern essentially takes the place of the filter press. Filter presses have
been found to foul and plug with organics present in the evaporator blowdown.
Trucking
Another disposal handling option under evaluation is trucking the
evaporator/concentrator waste stream to an approved facility. The Phase 1 disposal
volumes are small enough that this could be a short term option; however, trucking
waste during the full development would be uneconomic.
Direct Injection
If the concentrator blowdown fluid is compatible with connate water in the disposal
formation, direct injection of the concentrator fluids into the formation may be possible.
The two main concerns being evaluated are solids deposition in the disposal pipeline
and scale formation in the disposal reservoir as the blowdown fluid mixes with the
connate water.
Waste Stabilization
Certain commercial technologies are utilized in the waste remediation industry to solidify
and stabilize wastes. AOSC is reviewing several of these technologies for their possible
application to the evaporator/concentrator waste. The resulting product from these
technologies varies from a concentrated waste suitable for disposal in a landfill to a
solidified non-leachable solid. Investigation and testing of these technologies is ongoing.
Twp.97
Legend Namur
Lake Lake
6360000
Twp.96
abasc a Ri ver
reek
Joslyn C
Ath
Twp.95
6340000
Fort McKay
Twp.94
r
ive r
Ell s R ive
er R
Dov
Twp.93
Mildred
Lake
6320000
Twp.92
iv e
r
ay R
M ac K
Twp.91
6300000
Du
n ki
Twp.90
rk
Riv
er
Twp.89
Fort McMurray
6280000
er
R iv
Twp.88
ca
as
ab
h
At
Buffalo Creek
Twp.87
6260000
Twp.86
Twp.85
Twp.84
6240000
F:\7349 AOSC\Drafting\2009\MacKAY RIVER EIA\7349-EIA-GSA-09.cdr
Rg. 20 Rg. 19 Rg. 18 Rg. 17 Rg. 16 Rg. 15 Rg. 14 Rg. 13 Rg. 12 Rg. 11 Rg. 10 Rg. 9
LEGEND
1:600,000
HYDROGEOLOGY REGIONAL STUDY AREA (RSA) 10 0 10
HYDROGEOLOGY LOCAL STUDY AREA (LSA)
MACKAY RIVER LEASE Peace River
l
« l
Fort McMurray
Kilometers
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
COMMUNITY
Project Code: Technical: Date:
BASAL McMURRAY EXPLORATION WELLS 7349-514 BF 09/10/15
NON-SALINE WATER WELLS Senior: Date: Drawn by: Date:
Edmonton
WELL CONTROL POINT l RS 09/10/16 GS 09/10/15
Reference:
HYDROGEOLOGY
Calgary
l EXPLORATION
Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
« Project Location into contract. FIGURE 5.4-1
F:\7349 AOSC\Drafting\2009\Mackay River EIA\7349-EIA-PRO-09.cdr
LEGEND
UTILITY WATER
NON-SALINE MAKE-UP WATER
PRODUCED WATER
Peace River
l
«
l
Fort McMurray O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 GS 09/10/15
Reference:
PHASE 1 WATER
Calgary
l PROFILE
Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 5.4-2
F:\7349 AOSC\Drafting\2009\Mackay River EIA\7349-EIA-PRO-09.cdr
LEGEND
UTILITY WATER
NON-SALINE MAKE-UP WATER
SALINE MAKE-UP WATER
PRODUCED WATER Peace River
l
«
l
Fort McMurray O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 GS 09/10/15
Reference:
FULL DEVELOPMENT
Calgary
l WATER PROFILE
Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 5.4-3
F:\7349 AOSC\Drafting\2009\Mackay River EIA\7349-EIA-5.4-4_5.4-7_09.cdr
1:300,000
5 0 5
Peace River
l
« l
Fort McMurray
Kilometers
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 TN 09/10/15
Reference:
PRAIRIE EVAPORATE
Calgary
l ISOPACH
Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
_ MRCP into contract. FIGURE 5.4-4
F:\7349 AOSC\Drafting\2009\Mackay River EIA\7349-EIA-5.4-4_5.4-7_09.cdr
1:300,000
5 0 5
Peace River
l
« l
Fort McMurray
Kilometers
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 TN 09/10/15
Reference:
DEVONIAN TOP TO
Calgary
1:300,000
5 0 5
Peace River
l
« l
Fort McMurray
Kilometers
NAD 83 UTM ZONE 12 O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 TN 09/10/15
Reference:
DEVONIAN TOP
Calgary
l STRUCTURE
Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
_ MRCP into contract. FIGURE 5.4-6
F:\7349 AOSC\Drafting\2009\EIA Template\EIA_L_09.cdr
10 0 10
Peace River
l
«l
Fort McMurray
Kilometers
O I L S A N D S C O R P.
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton Senior: Date: Drawn by: Date:
l RS 09/10/16 TN 09/10/15
Reference: SALT DISSOLUTION
Calgary AREA
l
Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
« MRCP into contract. FIGURE 5.4-7
MacKay River Commercial Project 5-50 Facilities Description
December 2009
A simplified drawing showing the major streams and the measurement points that will
comprise the conceptual measurement, accounting and reporting plan (MARP) has been
prepared (Figure 5.5-1). AOSC will work with the ERCB to develop the final MARP for
the Project during detailed engineering.
LEGEND
EMULSION / HEAVY OIL
WATER SYSTEM
FUEL GAS / MIXED GAS
DILUENT
Peace River
l
«
l
Fort McMurray
O I L S A N D S C O R P.
STEAM
Project Code: Technical: Date:
7349-514 BF 09/10/15
Edmonton
Senior: Date: Drawn by: Date:
l
RS 09/10/16 GS 09/10/15
Reference: CONCEPTUAL METERING
Calgary
l
SCHEMATIC
Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as specified
in the accompanying report. No representation of any kind is made to
other parties with which Athabasca Oil Sands Corp. has not entered
«
Project Location into contract. FIGURE 5.5-1
MacKay River Commercial Project 6-1 Environmental Management and Controls
December 2009
The HSE Management System is applied equally to employees, and all affiliates,
contractors and agents, and will cover construction, operations, decommissioning and
reclamation of the Project.
Programs that have been developed within the HSE Management System ensure
continued compliance with regulations by identifying the regulatory requirements,
ensuring required approvals are in place prior to commencement of work, and providing
appropriate training and equipment for employees and contractors.
AOSC’s existing ERP will be updated and used to facilitate an effective response by
AOSC’s operations, management and support personnel to an emergency occurrence at
the Project. To ensure a state of emergency preparedness throughout the company,
AOSC has developed emergency procedures to protect the public, employees,
contractors, property and the environment.
A copy of the table of contents from AOSC’s corporate ERP is presented in Appendix B.
Response procedures for handling potential minor and major fire risks are detailed in the
AOSC corporate ERP. AOSC will develop a fire response strategy that is consistent
with the “FireSmart” Wildfire Assessment System developed by ASRD.
AOSC has identified two major fire risks associated with the Project: the Project as a
source of fire (based on the operation of electrical and natural gas fired equipment and
presence of diluent, natural gas and sales oil) and impact on the Project from a wildfire.
AOSC will incorporate fire reduction strategies into the Project design, including the
following:
use of combustible gas and smoke detection equipment throughout the Project;
removal of identified combustible ground cover, and regular housekeeping to
prevent buildup of combustible vegetation;
setback of all facilities from any natural combustible materials; and
design measures including tank farm placement, and combustible equipment
setbacks.
The power line ROW widths have been developed based on industry standards
appropriate for the size and number of lines installed. Clearing buffers on the outside
edges of the ROW are based on maximum expected tree heights.
Fire, explosive gas and H2S detection will be installed where required throughout the
MCP, MNP and SAGD well pad locations. The distributed control system will monitor all
installed sensors. Wall mounted fire extinguishers and fire blankets will be located
throughout the facility where required. Operator vehicles will be equipped with portable
fire extinguishers.
The AOSC facility ERP will include a shutdown and evacuation plan to be implemented
in the event of a forest fire, as well as housekeeping measures to prevent a forest fire
from entering the facilities.
The design of the flare systems at the MCP and MNP incorporates features to reduce
the potential for starting wildfires. The flare systems will incorporate a flare knockout to
ensure hydrocarbon liquids are not carried through to the flare tip. The flare stacks will
have a continuous burning pilot flame to ensure combustion of all hydrocarbons sent to
the flare system. Flare ignition will be by an electrical igniter located at the flare tip.
These strategies address the risk of fire in the plant process, and minimize the chances
of the Project causing a forest fire in the surrounding areas.
The Project will be designed to minimize impacts to surface water by maintaining the
natural surface runoff. Culverts will be installed along roadways where needed to
ensure that natural drainage is maintained. The MCP, MNP and SAGD well pads will be
constructed with perimeter ditches to direct natural drainage around the facility and
prevent surface water run-on.
The MCP and the MNP have each been developed to include an industrial runoff pond
to collect surface runoff that falls within the graded portion of either processing facility
site that will fully retain the 1 in 25 year, 24-hour storm event. Plant drainage systems
typically include berms, drainage ditches and culverts that will contain, collect and divert
storm water runoff to the runoff pond. Water collected in the industrial runoff pond at the
MCP will be pumped to the water treatment system for use in the process. Water
collected in the industrial runoff pond at the MNP will be sent to the MCP for use in the
process. AOSC will apply to AENV for a diversion license under the Water Act to use
collected surface runoff as part of the process.
During the initial stages of the Project, before steam generation has begun, any water
collected in the industrial runoff ponds will be discharged to the surrounding watershed
once water quality testing confirms that the collected runoff meets conditions specified in
the anticipated EPEA Approval.
The SAGD well pads will each incorporate interior perimeter ditches to contain industrial
runoff. Water collected at the SAGD well pads will be discharged to the surrounding
watershed once water quality testing confirms that the collected runoff meets conditions
specified in the anticipated EPEA Approval. If testing indicates that the collected water
is not suitable for discharge, the collected water will be sent to the MCP for process use.
Flooding potential for the Project facilities is naturally minimized due to the presence of
surrounding peatland vegetation and its ability to absorb peak storm flows. Any stream
crossings required in the interconnecting utility corridors will be sized to accommodate a
1-in-25 year precipitation event. The proposed bridge crossing of the MacKay River to
access the MNP will be sized to accommodate a 1-in-100 year precipitation event.
Detailed site-specific assessments of each proposed watercourse crossing will be
conducted by AOSC prior to construction.
6.2.2 Groundwater
AOSC recognizes that identification of a suitable water supply is critical to the successful
development of the Project. The Project water requirements are described in
Section 5.4. Additional details regarding management and potential effects on
groundwater resources are discussed in the Hydrogeology section of the EIA (Volume 3,
Section 5).
The largest air emissions source for the Project will be the steam generation equipment.
As part of detailed engineering, AOSC will select a steam generator manufacturer who
can supply an energy efficient unit which minimizes NOx emissions. AOSC will comply
with AENV’s Interim Emissions Guidelines for Oxides of Nitrogen (NOx) for New Boilers,
Heaters and Turbines using Gaseous Fuels for the Oil Sands Region in the Regional
Municipality of Wood Buffalo North of Fort McMurray Based on a Review of Best
Available Technology Economically Achievable (BATEA) (AENV, 2007).
Vapours from storage tanks containing hydrocarbons will be controlled with a natural gas
pressure blanket in conjunction with a vapour recovery system. The vapour recovery
system will allow for collection of any liberated gas to supplement the fuel gas supply to
the steam generation equipment.
The inlet gas sulphur rate at the Project is calculated to be below 1.0 t/d at the maximum
bitumen production rate of 23,847 m3/d (150,000 bpd). If the results of Phase 1
operations confirm AOSC’s calculations, sulphur recovery facilities will not need to be
incorporated as part of the Project design for later phases, in accordance with ERCB
Interim Directive (ID) 2001-3 – Sulphur Recovery Guidelines for the Province of Alberta
(2001b). AOSC has evaluated the anticipated sulphur content of the produced gas from
the Project based on other operating SAGD projects and on published data.
rates based on reservoir operating temperature. Actual sulphur production rates for
several of the other SAGD projects reviewed were comparable to those predicted by Dr.
Thimm’s curve. The 2008, Suncor Energy’s (formerly Petro-Canada’s) ERCB
submission for its MacKay River Project did not include sulphur emission data; however,
in conversation with Suncor Energy staff, AOSC was informed that the actual sulphur
production rates from the project were very close to the rates predicted by Dr. Thimm’s
curves (personal communication, 2009). As the Suncor Energy MacKay River project is
the closest SAGD operation to the Project, the use of Dr. Thimm’s curves was
considered to be appropriate.
AOSC used Dr. Thimm’s simplified thermal sulphur production estimate methodology to
calculate the sulphur production rate for the Project. At maximum design capacity,
bitumen production rates over the life of the Project are not expected to exceed 23,847
m3/d (150,000 bpd) on an annual average basis. AOSC’s proposed operating pressure
and temperature are forecast to be 2,300 kPa and 220°C, respectively. Using Dr.
Thimm’s hydrogen sulphide production curve results in an estimate of 29.8 L hydrogen
sulphide/m3 bitumen or 0.0406 kg sulphur/m3 bitumen. The following parameters were
used to convert to kg sulphur/m3 bitumen: 32 kg sulphur/34 kg hydrogen sulphide; 1.45 g
hydrogen sulphide/L hydrogen sulphide (15°C). This results in inlet sulphur rates during
Project operations of:
It should be noted that two different modelling scenarios for the steam generation and
produced gas treating facilities will be used over the life of the Project. Modelling
Scenario 1 is the initial case in which all steam generation and produced gas separation
facilities are located at the MCP, which will occur from the start of the Project until
approximately 5 years after startup of Phase 4. Modelling Scenario 2 is the secondary
case in which steam generation and produced gas separation facilities for 14,308 m3/d
(90,000 bpd) of bitumen are retained at the MCP and steam generation and produced
gas separation facilities for the remaining 9,539 m3/d (60,000 bpd) of bitumen are moved
to the MNP. Sulphur emissions are not anticipated to exceed 1.0 t/d for either of the
modelling scenarios.
At full bitumen production design capacity, the estimated inlet sulphur rate is below the
threshold of 1.0 t/d established in ERCB ID 2001-3. Estimated sulphur production rates
for Phase 1 only are as follows:
These rates are substantially lower than the 1.0 t/d threshold established in ERCB
ID 2001-3, and even if the use of Dr. Thimm’s curves proves to underestimate the
sulphur production rate, sulphur recovery facilities are still not anticipated to be required
during Phase 1.
AOSC will monitor inlet gas sulphur rates throughout the life of the Project to ensure
continued compliance with ID 2001-3. If there are indications during development of the
initial phases of the Project that the inlet gas sulphur rate will exceed 1.0 t/d once the full
bitumen production design capacity is reached, sulphur recovery facilities will be
designed and installed. Plot plan space has been allocated at both the MCP and MNP if
sulphur recovery facilities are required. Suitable sulphur recovery technology (if
AOSC has calculated sulphur emissions to be 0.969 t/d, and as such, AOSC is
requesting a license to emit up to 1.0 t/d of sulphur for the full development.
Other measures may include optimizing piping systems to reduce pumping energy
requirements, optimizing motor sizes and insulating piping to conserve energy.
In addition to the GHG reduction measures noted above, AOSC has and will continue to
participate in industry research and development projects which AOSC believes will
have a positive environmental impact on its projects. As an example, AOSC participated
in the first phase of the Alberta Saline Aquifer Project. The first phase of this project was
recently completed by the study’s primary sponsor, Enbridge.
A summary of the anticipated GHG emissions during all stages of the Project is
presented in Table 6.3-1. A comparison of the Project’s GHG emission intensity with
other similar projects is presented in Table 6.3-2. The Project’s contribution (at full
development) to provincial and national GHG emissions on an annual basis is presented
in Table 6.3-3.
As presented in Table 6.3-2, GHG emission intensity from the Project is comparable to
other similar projects in the area. AOSC will continue to evaluate developments in GHG
reduction technology implemented by other operators. As presented in Table 6.3-3,
estimated annual GHG emissions from the Project represent 1.8% of Alberta’s total
annual GHG emissions and 0.6% of Canada’s total annual GHG emissions.
AOSC will comply with all federal, provincial and regional regulations and recommended
industry practices pertaining to waste management. The waste hierarchy (i.e. reduce,
reuse and recycle) will be adopted to avoid or minimize waste disposal.
A Waste Management Plan will be implemented prior to the start of field construction.
This plan will be updated as the Project progresses from construction to operations to
reclamation and decommissioning. The handling, storage and transportation of field
construction and operations generated wastes will be covered by the Plan.
waste description;
storage location;
contact personnel;
manifest and type required;
ERCB waste code and Transportation of Dangerous Goods (TDG) information
where applicable;
waste management options; and
AOSC’s approved vendors for management of the waste streams.
AOSC will determine (with full consideration to the appropriate regulations and
guidelines) the appropriate waste management practices for a particular waste stream.
The storage and handling of products for the Project will be conducted in accordance
with good management practices. All hazardous and/or dangerous goods will be stored
and transported in compliance with CCME guidelines as well as the Transportation of
Dangerous Goods Act, and other applicable environmental legislation, regulations,
standards and codes.
Solid waste disposal management at the site will comply with procedures and guidelines
including the EPEA Waste Control Regulation (Alberta Regulation 192/96), ERCB
Directive 58 (1996b) and ERCB Directive 50 (1996a). Directive 58 requires the
preparation of an Annual Oilfield Waste Disposition Report summarizing the types and
quantities of disposed oilfield wastes, the points of generation, and the disposal methods
utilized. Practices will include:
All wastes will be disposed of in compliance with all appropriate regulations and
guidelines and in accordance with waste handling requirements contained in the
anticipated EPEA Approval for the Project. Detailed waste disposal practices and
procedures will be developed prior to the start of construction and operations. No on-
site landfills are proposed as part of the Project.
Wastes will be generated during the drilling, construction and operation stages of the
Project development. Details regarding waste generation during each stage are
presented below. Summaries of the wastes generated for each stage are presented in
Table 6.4-1.
All drilling fluid waste will be managed and disposed of in accordance with the ERCB
Directive 050. The drilling fluid will be stored and disposed of at remote sump locations
(Figure 1.2-3). Each sump will be situated and constructed in a way that minimizes the
potential for groundwater or surface water contamination. Sumps will be excavated only
on sites that have appropriate deposits of impermeable, clayey soils that are free of
hydraulic defects. AOSC will ensure that these soil properties extend for a minimum of
1 m beyond the horizontal and vertical dimensions of the sump to provide a barrier
between the sump and groundwater. Site contouring and berms will be used to ensure
that the sump will not collect natural surface waters and to prevent the migration of
contaminants outwards beyond the walls of the sump. All sumps will be fenced and
properly marked with signage.
It is AOSC’s intention to reuse drilling fluids to reduce waste volumes where practical.
The non-oily drilling waste will be stored separately from oily, contaminated drilling waste
to maximize the potential for fluid recycling and minimizing the volume of contaminated
waste. Non-oily drilling waste will be disposed of by mix-bury-cover (MBC) or land
spreading in accordance with Directive 50. Oily, contaminated drilling waste will be
disposed of at approved third party disposal facilities. The stabilized drill cuttings and
solids will be hauled to an approved Class II landfill, while contaminated fluid will be
hauled to an approved cavern or disposal well facility.
Typical wastes associated with the construction activities consist of items such as spent
welding rods, leftover steel pipe, structural steel and debris. These materials will be kept
in storage bins and periodically sent to an approved third party recycling or disposal
facility. Camp domestic waste will be stored in garbage bins that include wildlife
protection features and will be periodically hauled out by truck for disposal at an
approved third party facility.
AOSC has evaluated the options of either hauling the domestic wastewater from the
MRCP camp to an approved waste treatment facility or treating it on site using a grit
removal and septic field system. Current plans are to use the septic field method.
Geotechnical investigations are planned for winter 2009/2010 to provide site specific
information that will allow a more detailed assessment of the septic field option.
If the septic field treatment method is selected, the solid wastes remaining in the grit
tanks would be periodically hauled out by truck to an approved third party facility. Any
septic field system installed will meet the Alberta Private Sewage System Standards of
Practice Handbook (Safety Codes Council 1999).
Domestic wastewater and sewage generated during operations at the MCP site by
administrative offices and control room staff (up to 118 people) will be stored in holding
tanks and then disposed of by an authorized third party or disposed of in the septic field.
Typical operations wastes consist of spent filters, old batteries, oily rags, etc. will be kept
in storage bins and periodically sent to an approved third party waste handling facility.
Operation of the Project will also generate waste by-products such as produced sand,
evaporator blowdown fluid, salt cavern brine return and tank bottom sludge.
The MCP will include an area for temporary storage of waste, prior to appropriate
disposal.
The anticipated waste streams complete with volumes and disposal methods for the
construction, drilling and operations activities are presented in Table 6.4-1.
The chemicals to be used as part of the Project have been classified in accordance with
the following regulations:
6.5 TRAFFIC
AOSC has been working with the RMWB, ASRD, the local forest management tenure
holders and Alberta Transportation (AT) since 2008 regarding access to its lease areas.
Currently, the two existing roads that extend west of Fort McMurray include LOC 830746
(Petro-Can Road) that is used to access the existing Suncor Energy (formerly
Petro-Canada) MacKay River project facility and the Tower Road that is located on the
west side of the existing Thickwood subdivision (Figure 1.2-2). ASRD has encouraged
AOSC and other oil sands operators with lease areas west of Fort McMurray to
collaborate on access planning. Discussions are being held with the appropriate levels
of government to evaluate possible alternative routes.
ASRD has expressed support for the proposed MacKay River Pilot Road that utilizes the
existing LOC 830746 (Petro-Can Road) to connect to Highway 63. To date, Southern
Pacific Resources Corp. (Southern Pacific) has expressed interest in sharing access
along the first 9 km of the proposed MacKay River Pilot Road in order to access its
proposed McKay SAGD Project in 07-91-014 W4M.
AOSC has collaborated with other area operators on a traffic impact assessment (TIA) to
evaluate the current demands on the intersection of Highway 63 and LOC 830746
(Petro-Can Road). The results of this TIA indicated that the intersection is currently
overloaded, without considering the additional traffic requirements of future development
by AOSC, Southern Pacific and other proposed users of the MacKay River Pilot Road.
AOSC will continue to work with the other affected operators and AT towards
development of an appropriate solution to the traffic problems at this intersection. In the
interim, AOSC will employ the following mitigations to minimize further traffic impacts:
Wherever possible, timing loads to not coincide with peak traffic periods; and
Utilizing bussing as much as possible to minimize traffic counts.
Gates at the MRCP camp will be installed for security and safety reasons. Vegetation
roll-backs and re-growth will be used as barriers to limit access across seismic lines,
cutlines or discontinued winter use roads.
6.6.1 Introduction
The climate change component of the EIA TOR (Section 3.2.2 [B]) requested that
AOSC: “Identify stages or elements of the Project that are sensitive to changes or
variability in climate parameters, including frequency and severity of extreme weather
events. Discuss what impacts the change to climate parameters may have on elements
of the Project that are sensitive to climate parameters.”
The impact of changes in both temperature and precipitation have been considered with
respect to potential seasonal changes. Extreme weather events are also addressed.
AOSC has concluded that there is a low perceived risk to the Project from changes in
climate parameters.
6.6.2 Background
Historical climate data for the years 1971 to 2000 at the Fort McMurray A climate station
were taken directly from Environment Canada (2009). The Fort McMurray A climate
station #3062693 is operated by the Meteorological Service of Canada (MSC), a division
of Environment Canada and is the closest (approximately 60 km) year-round station to
the Project.
Summer temperatures frequently exceed 30 C and winter temperatures are often below
-40 C. Projects in the Fort McMurray area have been designed to deal with the
significant variability in temperature, and most projects operate on a year round basis,
although some activities have preferential seasons (e.g. winter core holes and seismic,
summer plant turnarounds).
Predicted changes in climate vary and make it difficult to forecast future temperatures
and precipitation. Barrow and Yu (2005) tested several Global Climate Models (GCMs)
and greenhouse gas emissions scenarios and selected five GCMs and scenarios for
Alberta (Table 6.6-1) that reflect projections of major world growth driving variables that
can affect climate change. The five scenarios represented the following future
conditions: cooler and wetter (NCAR-PCM A1B), cooler and drier (CGCM2 B2), warmer
and wetter (HadCM3 A2 [a]), warmer and drier (CCSRNIES A1F1), and median
conditions (HadCM3 B2 [b]). As can be seen from this list, a number of outcomes are
possible and, perhaps, in any given year any one of these outcomes will occur.
As a result, AOSC does not make any quantitative predictions regarding potential
impacts of climate change to the Project. Rather, AOSC has considered the potential
impact of qualitative changes.
6.6.3 Analysis
The analysis provided below considers only the prospect of relatively marginal changes
in annual temperatures and precipitation. Although some temperature and/or
precipitation changes may occur and the frequency of severe weather events may
increase (or even decrease), we would not expect the severity of the individual events to
change substantially. Fort McMurray is known for hot summer temperatures, cold winter
temperatures, forest fires, severe summer thunder storms and harsh winter blizzards.
Fort McMurray is located in a region of the boreal forest that is not close to mountains or
oceans which could result in extreme events outside the norm.
Should the mean summer temperature increase, there will be the potential for more
forest fires. These events rarely result in the shutdown of a facility, however they may
justify more consideration to thinning of the forest around plants and SAGD well pads to
reduce the fuel available during a fire.
An increase in the mean summer temperature may result in drier soils and a lowered
summer water table, although if increased temperatures are accompanied by increased
precipitation, this may not be the case. The impact at the reclamation stage of the
Project is potentially more soil moisture stress. This is considered a low risk to the
Project and can be managed by selecting reclamation plant species adapted to lower
soil moisture.
Facility design may eventually need to be adapted if warmer temperatures persist. For
example, process cooling loads (aerial coolers) may require increased sizing and
therefore increased plot space.
AOSC’s facilities will be designed for year round access, therefore increased
temperatures are not expected to affect day to day operations.
AOSC’s facilities will be designed for year round access, therefore lower temperatures
are not expected to affect day to day operations.
The Project is designed to handle the 1 in 25 year, 24 hour precipitation event. During
the operational life of the Project, the frequency of these events may increase. AOSC
expects that these will be managed within the design tolerance of the Project.
Increased runoff is predicted at Project facilities with compacted surfaces such as roads,
well pads, the MCP, the MNP and industrial runoff ponds. This may require additional
monitoring at culverts to confirm flow capacity and to ensure erosion and sediment
control measures are effective. At the industrial runoff ponds, runoff will be managed by
regular monitoring to ensure adequate available storage capacity and prevent
uncontrolled releases to the environment. This may require construction of higher
freeboard. Runoff will also be offset somewhat by increased evaporation. With
monitoring and adaptive management, a potential increase in precipitation is therefore
considered a low risk to the Project.
A reduction in summer rain could result in drier soils and a lowered summer water table.
The impact at the reclamation stage of the Project is potentially that there will be more
soil moisture stress. This is considered a low risk to the Project and can be managed by
selecting reclamation plant species adapted to lower soil moisture regimes.
6.6.4 Summary
During the operational life of the Project, there are no identified temperature, water or
severe weather management related elements of the Project that are specifically
dependent on the changing climate parameters, outside the range of historic norms.
Any changes attributed to temperature, precipitation or severe weather events are
addressed within the design parameters of the Project or can be managed as part of
adaptive management programs and proposed monitoring (Volume 3, Section 6)
7 PUBLIC CONSULTATION
AOSC will work to establish long term relationships with all key communities and
communities by:
AOSC recognizes that Consultation and Engagement will continue throughout the life of
the Project. Key consultation activities initiated or that will be initiated include:
introduction of the Project and the initiation of dialogue with communities and key
stakeholders;
identification of initial community and stakeholder issues and concerns;
Informational Letter (IL) 96-07 (ERCB/AENV 1996c) sets out the expectations of both
the ERCB and AENV in the approval and regulation of oil sands developments in
Alberta. As specified in IL 96-07, all oil sands applications require consultation between
the applicant and affected communities and stakeholders. AOSC has designed its
Community Consultation and Engagement Program with IL 96-07 in mind.
IL 96-07 specifies that consultation is the responsibility of the applicant and may include
meetings with local groups and organizations as well as conducting public events.
AOSC recognizes, however, the Government of Alberta and the Government of Canada
also have consultation responsibilities regarding the Project, in particular as they relate
to First Nations, Métis and other Aboriginal peoples.
AOSC understands that ERCB Directive 023 (1991) is intended as a directive for
applicants for the type and detail of information required in an application pursuant to the
Oil Sands Conservation Act. Directive 023 applies to all commercial oil sands projects.
It stipulates that all applicants are encouraged to plan and carry out a suitable program
to make the public aware of a proposed oil sands development; to obtain and
incorporate, where feasible, the reaction of interested or affected parties; and to provide
documentation to the ERCB and AENV as to the nature and extent of the
communication and any resolutions achieved.
AOSC understands that oil sands developments are subject to the environmental
assessment process pursuant to the Environmental Protection and Enhancement Act
administered by AENV. The environmental assessment process provides the means of
reviewing oil sands developments to assess their potential effect on the environment.
This process allows for full public participation and ensures that economic development
occurs in an environmentally responsible manner. AOSC recognizes that, in part, the
purpose of the environmental assessment process is to involve the public in the review
of proposed oil sands developments.
AOSC has designed its Consultation and Engagement Approach to meet or exceed the
requirements of IL 96-07 (ERCB/AENV 1996c) and Directive 023 (ERCB 1991).
A variety of local and regional interested groups have been identified as being potentially
affected by developments within the AOSC MacKay River lease. They included First
Nations, Métis Locals, local residents, trappers, landowners, businesses and industry,
and municipal, First Nation, provincial and federal governments.
The community of Fort McKay as defined by the Fort McKay First Nation and
Fort McKay Métis Local # 63;
The Athabasca Chipewyan First Nation (ACFN);
The Mikisew Cree First Nation (MCFN);
The Fort McMurray #468 First Nation (FMFN);
Métis Local #125;
Métis Local #1935;
Wood Buffalo Métis Corporation (WBMC);
Potentially impacted trappers;
The Regional Municipality of Wood Buffalo (RMWB) Council and Administration;
Local businesses and business organizations;
Developers adjacent to AOSC MacKay River lease;
Regulators;
Oil Sands Developers Group (OSDG);
Senior trapline holder of Registered Fur Management Area (RFMA) #2894;
Senior trapline holder of RFMA #587;
Senior trapline holder of RFMA #2156;
Senior trapline holder of RFMA #2858;
Senior trapline holder of RFMA #2753;
Senior trapline holder of RFMA #2676;
Senior trapline holder of RFMA #1790;
Senior trapline holder of RFMA #1387; and
Senior trapline holder of RMA # 1364.
AOSC will continue to utilize Consultation Manager™ (CM) as the system to identify,
document and track issues or commitments which develop through the consultation and
community engagement activities. Accountability focal points will be determined so that
appropriate management strategies are developed and implemented to ensure accurate
record keeping and timely feedback on concerns. Where appropriate, potential
mitigation strategies will be developed with communities and stakeholders. In support of
this:
consultation activities will be catalogued into CM and discussed with the Project
development teams for consideration in their decision-making;
where practical and feasible, the Project design will be adjusted to accommodate
community and stakeholder issues and concerns.
7.5.1 Commitments
AOSC is committed to being a responsible corporate citizen, and will meet or exceed all
regulatory requirements, respect community concerns and promote the health and
safety of the environment, AOSC’s workplace and employees.
To date, the following environmental concerns have been identified to AOSC through
consultation and engagement with the communities and individual stakeholders. Any
additional concerns raised during future consultation will be recorded and responded to.
Environmental Concerns:
Socio-Economic Concerns:
Some communities and stakeholders have expressed a general concern about the rate
of development in the region and the potential cumulative socio-economic effects
associated with additional development. General concerns consist of:
AOSC is utilizing various consultation methods during its consultation and engagement
program including:
Providing copies of the Project Summary Table and draft TOR to Aboriginal
groups being consulted and engaged;
Holding formal and informal face-to-face meetings to introduce and to discuss the
Project and to design consultation processes in concert with Aboriginal groups;
Negotiating consultation/relationship and traditional use agreements;
Identifying issues;
Presenting information on the Project and AOSC’s future plans;
When requested, sharing technical information on the design of the Project;
Holding open houses and presentations so AOSC can fully discuss the Project
with all interested and impacted groups and individuals;
Providing newsletters and other information on the AOSC web site to offer
information to a wider audience; and
Participating in regional multi-stakeholder groups.
Key consultation and engagement activities carried out in support of this Application are
presented in Table 7.7-1. A complete list of consultation and engagement activities is
presented in Appendix D.
AOSC is using formal media such as newsletters, news releases, letters and brochures
to provide information about the Project. Information about the Project, the MacKay
River lease area and AOSC’s approach to consultation and engagement is also located
on the Company’s web site: www.aosc.com.
Following is a list of Project-specific issues raised by various groups to date. Each issue
is followed by a description of how AOSC has, or will address the issue. AOSC will
record and respond to additional issues as they arise through future consultation and
engagement activities (e.g., open houses, technical reviews of the Application, etc.).
AOSC is a funder of the MCFN GIR, the ACFN IRC and Fort McMurray #468 First
Nation IRCs and the community of Fort McKay IRC.
AOSC has also provided funding to the Wood Buffalo Métis Corporation and Fort
Chipewyan Métis Local 125 administration offices. The mandate of these offices, in part,
is to engage with industry in matters related to development.
AOSC is a member of NAABA. To date AOSC has contracted the following local
companies for its activities in the Fort McMurray area:
Bouchier Contracting;
First Nation Welding;
Vortex;
Dreamline Promotions;
Wapoose Medical Services;
Nipi Contracting; and
Clearwater Contracting.
AOSC has established a database of local contractors that allows it to quickly identify
services offered by those companies which reside in the region including their
qualifications and experience. AOSC will continue to update this database as
development progresses.
AOSC plans to become a member of the RMWB Chamber of Commerce and the Fort
McMurray Construction Association and also to continue its involvement in NAABA.
Access Management
AOSC will continue to work with trappers, Aboriginal groups and others to understand
issues related to access and to mitigate those issues where it is AOSC’s responsibility to
do so.
AOSC will continue to ensure that local trappers affected by the Project operations will
continue to have access to their trap lines on non-active parts of AOSC’s MacKay River
lease area as required.
AOSC will continue to be an active participant in the Access Management Plan being
developed for the region by ASRD.
AOSC consults directly with trappers affected by its resource development activities.
AOSC adheres to the Fort McKay Trappers’ Guidelines, to ensure trappers were aware
of its activities and impacts on their traplines and has provided compensation to all
impacted trappers as per these Guidelines.
use of groundwater and surface water for the Project and potential impact on the
quality of both;
potential impacts to regional fisheries resources;
habitat fragmentation;
impacts such as ground collapsing when bitumen is removed;
both the positive and negative aspects of access to traplines by hunters and
recreational vehicle users; and
loss of wildlife due to the Project and influx of people.
AOSC has attempted to address these concerns in the appropriate sections of this
Application and will continue to address them through further dialogue at open houses
and through responses to issues and questions raised in third-party technical reviews.
7.9 REGULATORS
AOSC has met with the ERCB, AENV, ASRD, and various federal agencies, including
Fisheries and Oceans Canada, Transport Canada and the Canadian Environmental
Assessment Agency to review the various aspects of this Project and its Application.
AOSC received a response to the project description from the Canadian Environmental
Assessment Agency in April 2009, stating that Fisheries and Oceans Canada is a
Responsible Authority and will be conducting a federal environmental assessment.
Transport Canada is also a Responsible Authority and may conduct a federal
environmental assessment pending receipt of additional information. AOSC will work
with the Responsibility Authorities and MPMO throughout the Application review
process.
AOSC continues to have regular communication and provide updates to all Provincial
and Federal regulatory agencies that have an interest in the Project.
AOSC understands that consultation on the Project does not end with the filing of the
Project application. Therefore, AOSC plans to carry out the following ongoing
consultation and engagement activities:
Since its inception, AOSC has used its resources to identify, discuss and address
community and individual issues and to build trusting relationships. AOSC will continue
to provide timely information, participate in meaningful consultation processes and work
with identified groups and individuals who may have a stake in its activities to address
issues associated with such activities.
8.1 INTRODUCTION
The Conservation and Reclamation (C&R) Plan describes the Project specific
conservation, mitigation and reclamation measures to be implemented throughout the
development of the Project to minimize potential environmental impacts, and to achieve
equivalent land capability after reclamation.
The C&R Plan focuses on land and soil conservation, surface disturbance, and
reclamation concepts, as well as reclamation options (ALCRC 1991) throughout the life
of the Project. Detailed design will address site-specific characteristics (including
existing disturbances on the site), and include the preparation of detailed C&R Plans for
finalized facility locations.
Project TOR;
Project design;
AOSC policies/programs;
Regulatory requirements including reclamation guidelines (Section 8.3.2);
Regional initiatives (Section 8.3.3);
Pre-existing biophysical information for the area;
Biophysical information (including terrain and soils, ecological land classification,
vegetation, and wildlife) collected for the Project, interpretations for potential
effects, and mitigative measures;
Other SAGD EIAs and their respective C&R Plans;
Oil and gas facilities reclamation experience; and
Existing AENV approvals for other SAGD projects.
The Project is located within Townships 87 to 93, Ranges 11 to 16 W4M. The surface
components of the Project infrastructure are defined as the Project Area (footprint). The
footprint (Figure 8.2-1) covers approximately 2,149 ha (less than 3% of the MacKay
River leases) of which 55 ha has existing vegetation or vegetation and soil disturbance.
The Project will be constructed in a phased approach from 2012 to approximately 2029.
The footprint includes the following surface disturbances:
Partial or interim reclamation for facilities will be undertaken during the Project life as
practicable including, but not limited to: soil replacement as the final step in pipeline
construction, soil replacement and revegetation at facility edge areas not needed for
operations, and revegetation for erosion control of cut slopes and salvaged soil
stockpiles.
Final reclamation of all remaining unreclaimed facilities will be undertaken after the
Project is decommissioned.
Twp.93
Do
v er Riv er
6320000
Twp.92
6310000
M acK ay R ive
r
Twp.91
6300000
Twp.90
6290000
Twp.89
6280000
Twp.88
PROJECT AREAS
I:\7349_514\MA PS\FIGURES \EIA\017_FIGURE_8_2_1_FOOTPRINT_AND _TERRES TRIAL_LOCAL_STUDY_AREA .mxd
LEGEND
1:150,000
TERRESTRIAL LOCAL STUDY AREA (LSA) BASELINE DISTURBANCES 2 0 2
Reference:
PIPELINE
LOCAL STUDY AREA
1:20,000 Base Features obtained from Altalis used for License
POWERLINE
Ca lga ry
!
Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as
specified in the accompanying report. No representation of
any kind is made to other parties with which
_
^ Project Location Athabasca Oil Sands Corp. has not entered into contract. FIGURE 8.2-1
MacKay River Commercial Project 8-5 Conservation and Reclamation
December 2009
The C&R Plan provides a general guideline for reclamation throughout the Project life.
Adjustments to the general guideline will be made on a site-specific basis to account for
differences in topography, soils, vegetation, drainage, and other site-specific factors.
AOSC is committed to following the Conservation and Reclamation Guidelines for
Alberta (AENV 1997a).
AOSC intends to follow applicable regulatory reclamation guidelines (as amended) for
the Project which may include, but not be limited to, those listed in Table 8.3-1.
A Guide to the Preparation of Applications and Reports for Coal and Oil
ALCRC 1991
Sands Operations
Storage Requirements for the Upstream Petroleum Industry (Directive 055) ERCB 2001a
Drilling Waste Management (Directive 050) ERCB 1996a
Oilfield Waste Management Requirements for the Upstream Petroleum
ERCB 1996b
Industry (Directive 058)
Well Abandonment Guide (Directive 020) ERCB 2007b
Guide for Pipelines Pursuant to the Environmental Protection and
AENV 1994a
Enhancement Act and Regulations
Guide for Oil Production Sites: Pursuant to the Environmental Protection and
AENV 1994b
Enhancement Act and Regulations
Environmental Protection Guidelines for Electric Transmission Lines
AENV 1995a
(C&R/IL/95-2)
Reclamation Criteria for Wellsites and Associated Facilities – 1995 Update
AENV 1995b
(C&R/IL/95-3)
A Guide To: Reclamation Criteria for Wellsites and Associated Facilities –
ASRD 2007a
2007 – Forested Lands in the Green Area Update
Environmental Protection and Enhancement Act Conservation and
AENV 2008
Reclamation Regulation (AR 115/93, as amended)
Soil Monitoring Directive AENV 2009b
Reclamation Certificates for Overlapping Activities (C&R/IL/97-6) AENV 1997
Code of Practice for Watercourse Crossings AENV 2000a
Environmental Protection Guidelines for Roadways AENV 2000b
Environmental Protection Guidelines for Oil Production Sites (C&R/IL/02-1) AENV 2002
Sites Reclaimed Using Natural Recovery Methods AENV 2003c
Code of Practice for Pipelines and Telecommunication Lines Crossing a
AENV 2000c
Water Body
Code of Practice For Pits AENV 2004
Weed Management in Forestry Operations (Directive 2001-06) ASRD 2001
Alberta Operational Statement, Habitat Management Program DFO 2006
Land Capability Classification for Forest Ecosystems in the Oil Sands
CEMA 2006
Region, 3rd Edition
Guidelines for Reclamation to Forest Vegetation in the Athabasca Oil Sands
OSVRC 1998
Region
Guideline for Wetland Establishment on Reclaimed Oil Sands Leases OSWWG 2000
The 1995 Reclamation Criteria for Wellsites and Associated Facilities (AENV 1995b) is
currently under review. The recently published document, A Guide To: Reclamation
Criteria for Wellsites and Associated Facilities – 2007 – Forested Lands in the Green
Area Update (ASRD 2007a) (‘the 2007 Criteria’) will be in effect until revisions to the
1995 Reclamation Criteria for Wellsites and Associated Facilities have been completed
and implemented. The 2007 Criteria document states that “equivalent capability is
assumed to have been achieved where no limitations to normal ecosystem functioning
are found”. These criteria are for forested land; separate criteria for peatlands (within
forested lands) and reclamation techniques for well pads on peatlands are planned to
be developed by the Reclamation Criteria Advisory Group.
Project effects on the terrestrial biophysical resources at a local scale were assessed
within the terrestrial local study area (LSA). The Project is situated within the Central
Mixedwood Natural Subregion of the Boreal Forest Natural Region (Natural Regions
Committee 2006). Overall topography is muted with very gentle to nearly level slope
gradients and extensive, low-lying wetland areas. The dominant landform in the
terrestrial LSA is low-lying, flat, organic deposits developed on bog and fen peat. The
landforms on the mineral uplands in the LSA include undulating to hummocky surface
expressions most commonly developed on medium-textured till, with coarse-textured
glaciofluvial parent materials also present, and a small area of coarse textured eolian
parent material occurring in the south part of the LSA. A summary of the landforms
identified in the LSA and their geographical extent is provided in the Terrain and Soils
section of the EIA (Volume 4, Section 9).
The hydrology LSA is stratified into three main watersheds, which are identified as the
Dover, MacKay, and South watersheds (Volume 3, Section 6). The MacKay River flows
approximately northeast between the northern and southern portion of the AOSC
MacKay River lease to the Athabasca River. North of the MNP, the Dover River flows
approximately west to east to the MacKay River before it discharges into the Athabasca
River. The South watershed consists of many small individual streams that drain
approximately south directly to the Athabasca River. From the east border of the South
watershed, the Athabasca River flows about 15 km northeast to the confluence with the
Clearwater River.
The uppermost Cretaceous Period bedrock unit throughout the majority of the Project
lease is the Grand Rapids Formation. Within the Birch and MacKay buried bedrock
channels, the Clearwater Formation is the uppermost Cretaceous bedrock unit. The drift
thickness is up to approximately 120 m within the Project lease with the thickest areas
identified within Birch and MacKay buried bedrock channels.
Land uses in the area include oil and gas production, forestry, traditional land use,
trapping and recreation (Natural Regions Committee 2006). Portions of the area have
undergone previous disturbance including oil and gas production (oil and gas well pads,
exploration coreholes, pipelines, seismic lines and access roads), forest fires, and
forestry. Much of the existing disturbance in the area consists of oil sands exploration
coreholes, winter access, and seismic lines, which are generally vegetation disturbance
with little significant surface soil disturbance.
A detailed description of soil resources (including areal extent of soil series in the
terrestrial LSA) is provided in the Terrain and Soils section of the EIA (Volume 4,
Section 9).
The surficial materials in the terrestrial LSA dominantly consist of morainal (till) and
glaciofluvial deposits of Quaternary age, recent deposits of organic (peat) materials, and
a relatively small area of eolian deposits in the south portion of the lease.
Organic soils, which have peat thickness greater than 40 cm, are the predominant soil
type on the footprint though mineral, upland soils are also found (Table 8.4-1).
McLelland and Muskeg Organic soils were classified and mapped as having thicker
(greater than 160 cm) peat, while Hartley and Mariana Organic soils were classified and
mapped as having thinner peat (40 -160 cm). Within the Project footprint, Hartley soils
were the most commonly occurring Organic soil (29% of the footprint). The Hartley and
Mariana Organic soils occupy approximately 37% of the footprint, while the McLelland
and Muskeg Organic soils cover approximately 30%. The largest continuous area of
deeper peat (McLelland and Muskeg) Organic soils on the Project footprint are found in
the north portion of the AOSC MacKay River lease.
Mineral (non-Organic) soils were classified and mapped as having shallow peat (greater
than 40 cm) at the surface. Horse River till soils are the most common mineral soil
mapped on the footprint, and were mapped on approximately 20% of the Project
footprint. Coarser textured Marguerite and Bitumount soils are the dominant mineral
soils mapped in the southern tip of the footprint, with the Gleysolic Bitumount soils
occurring in the lower, wetter areas. Margeurite soils are dominant on three of the
proposed well pads in this area. Overall, coarser textured soils occupy a relatively small
area on the Project footprint.
Horse River till soils are found on the central portion of the MCP with Steepbank and
shallow Organic soils (mainly Hartley and Mariana) found around the outer portions of
the MCP. The MNP is located on deeper peat Muskeg Organic soils. Horse River and
Steepbank till soils are the dominant soils in the initial development borrow areas, with
Organic soils also present in the designated borrow area. Drilling camps, sumps, and
the septic field will be located on mineral soils.
Mikkwa soils were mapped in the terrestrial LSA in a small area within organic soil map
units; these soils were classified as Cryosolic soils with frozen layers found at the time of
the soil survey. Mikkwa soils have minimal occurrence on the footprint.
The areal extent of the soil series mapped within the footprint are listed in Table 8.4-,
while the soils by facility type are listed in Table 8.423.
Table 8.4-1 Main Soil Series Mapped within the Project Footprint
Project
Land Capability Class % of Project
Soil Series Code Footprint
for Forest Ecosytems Footprint
(ha)1
Organic Soils 1,455 67.7
Hartley HLY 5 628 29.2
Mariana MRN 5 174 8.1
McLelland MLD 5 382 17.8
Muskeg MUS 5 271 12.6
Luvisolic Soils 429 20.0
Horse River HRR 3 426 19.8
Winefred WNF 3 3 0.1
Brunisolic Soils 26 1.2
Marguerite MAR 4 25 1.2
Mildred MIL 3 1 0.0
Gleysolic Soils 218 10.1
Bitumount BMT 4 20 0.9
Steepbank STP 4 198 9.2
Cryosolic Soils 13 0.6
Mikkwa MKW 5 13 0.6
Other 8 0.4
Stream Channel SC Unclassified 5 0.2%
Disturbed DISTURBED Unclassified 3 0.1
Water WATER Unclassified <1 0.0
Total 2,149 100.0
1. Rounded to whole ha.
Table 8.4-2 Areas of Main Soil Series Mapped within the Footprint by Project Component (ha)
Associated Water
Soil MCP Source, Borrow MRCP
Storage adjacent Production Disposal, Areas for Drilling Camp Drilling
Soil Series MCP MNP ROW MRCP Camp Total
Adjacent Facilities Pads & Salt Initial Sumps Septic Camps
to MCP (LACT unit, Cavern Development Field
substations) Well Pads
Bitumount 9.0 8.5 2.3 19.8
Hartley 2.6 18.7 0.4 286.5 1.9 269.2 27.9 0.7 628.0
Horse River 16.8 2.4 157.4 2.0 156.2 64.9 13.6 3.4 3.5 5.4 425.6
Marguerite 18.3 6.5 24.8
Marianna 8.3 0.7 1.0 63.2 1.1 81.9 17.5 173.8
McLelland 2.1 178.9 2.0 180.6 18.8 382.4
Mikkwa 6.4 6.8 13.2
Mildred 0.8 0.8
Muskeg 1.0 14.6 140.1 109.5 5.1 1.1 271.2
Steepbank 1.8 0.6 86.0 66.8 35.6 4.4 2.5 197.7
Winefred 0.2 3.0 3.2
Stream
Channel 5.4 5.4
Disturbed 0.9 2.0 2.8
Water 0.2 0.1 0.3
Total 51.6 23.4 1.4 14.6 946.7 7.0 894.5 164.8 21.0 8.5 3.5 12.0 2149.0
1. Rounded to tenths of ha.
8.4.3 Vegetation
The most abundant ecosite phases in the terrestrial LSA and on the footprint are i1 (bog)
followed by j1 (poor fen). Fen community structure is characterized by Carex and fen
bryophytes. The main floristic difference between bogs and fens is that fens are typically
sedge-dominated, while bogs generally lack Carex (Graf 2008). Bogs and poor fens are
dominated by Sphagnum mosses, while moderate and rich fens are dominated by
‘brown mosses’. Fens, unlike bogs exhibit a spectrum of pH values and several distinct
vegetation communities, depending on the amount of groundwater flow (Graf 2008).
The “Shultz’s Bog Diversity Area, Athabasca River – Rapids Reach” contains the
Thickwood Hills patterned fens, and is a provincial Environmentally Significant Area
(ESA) that extends into the Project footprint (ANHIC 2009). The Thickwood Fen is a
patterned fen in the ESA, and extends across the MacKay lease area boundary into the
Terrestrial LSA in Township 89 Range 13 W4M (Volume 4, Section 10).
There are several small areas in the terrestrial LSA previously burned from forest fires
(Volume 4, Section 10). A large burned area is located to the northeast of the footprint
and the terrestrial LSA.
Baseline land capability for forest ecosystems was rated using the system outlined in the
Land Capability Classification System for Forest Ecosystems in the Oil Sands (CEMA
2006). Details of the rating system and its application are presented in detail in
Volume 4, Section 9 (Terrain and Soils); land capability classes are summarized in
Table 8.4-1.
Land Capability Class 5 is the dominant class in the terrestrial LSA due to the
prevalence of Organic soils, and to a much lesser extent mineral Gleysolic soils. Class 3
is the dominant class for upland, mineral soils in the terrestrial LSA due to the
prevalence of Horse River in the upland soils. Approximately 72% of the Project footprint
is covered by soils with a rating of Class 5, while Class 3 soils occur on approximately
17% of the Project footprint. A map of baseline land capability for forest ecosystems in
the terrestrial LSA is presented on Figure 8.4-1, while land capability class areas are
summarized in Table 8.4-1.
Twp.93
Do
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6320000
Twp.92
6310000
Ma cK ay R ive
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Twp.91
6300000
Twp.90
6290000
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I:\7349_514\MA PS\FIGURES \EIA\017_FIGURE_8_4_1_BA SELINE_LAND_CAPAB ILITY_FOR_FORES T_ECOSYS TEMS_IN_THE_TERRESTRIAL_LOCAL_STUD Y_AREA.mxd
6280000
Twp.88
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Rg. 17 Rg. 16 Rg. 15 Rg. 14 Rg. 13
LEGEND
1:150,000
TERRESTRIAL LOCAL STUDY AREA (LSA) BASELINE SOILS DISTURBANCE 2 0 2
Reference:
WINTER ROAD
TERRESTRIAL
1:20,000 Base Features obtained from Altalis used for License
Calgary
PIPELINE
LOCAL STUDY AREA
!
POWERLINE Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as
specified in the accompanying report. No representation of
any kind is made to other parties with which Athabasca Oil
_
^ Project Location Sands Corp. has not entered into contract. FIGURE 8.4-1
MacKay River Commercial Project 8-13 Conservation and Reclamation
December 2009
The C&R Plan provides measures to mitigate potential Project effects. Mitigative
measures are also presented in other sections in the EIA. Development and
implementation of this C&R Plan is a part of the pre-construction planning, which
ensures consideration of conservation and reclamation procedures in all stages of the
Project including siting and design, construction, operations, decommissioning and
closure.
AOSC will consult with AENV and ASRD regarding closure reclamation objectives and
the target end land uses for disturbed sites. In addition, AOSC will engage with its
stakeholders to ensure their input is considered regarding reclamation objectives.
Following is an overview of the reclamation objectives for facilities on upland mineral
soils, Organic soils, and borrow excavation areas.
Padded sites on Organic soils will be reclaimed by removing pad fill to return the site to a
wetland area. The goal is for the reclaimed area to be able to support some wetland
species and natural/conservation area land uses (e.g., habitat, biodiversity, traditional
uses, hunting/trapping).
An alternative method currently under research trials in the northern boreal forest region
of Alberta involves partial removal of pad surfaces to slightly (e.g., 5 to 15 cm) above
water table depth to create the appropriate hydrological conditions for establishment of
some wetlands species with the goal of eventually establishing a peat accumulating
wetland (Vitt and Wieder 2007). AOSC will consider using this method as an alternative
on a site specific basis, pending future research results and future industry experience
with the method.
Should wetland pad reclamation research and experience over the years result in a
specific methodology becoming the accepted industry standard, AOSC will, where
possible, incorporate the methodology into the C&R plan.
Some facility types on Organic soils do not require building pads and have little surface
disturbance (e.g., power line and above ground pipeline ROWs, seismic lines,
exploration coreholes). These areas will be reclaimed to peatland ecosite phases and
land use that will be the same as or similar to the pre-disturbance conditions.
Re vegetation through natural regeneration is anticipated for these areas. Natural
regeneration refers to the establishment of plants through the germination of existing
seeds or those brought to the site by wind, water or wildlife from nearby sources (e.g.
adjacent undisturbed peatland). Similar reclamation is anticipated for underground
pipelines, as a relatively small proportion of the ROW is disturbed during the anticipated
winter construction, the peat is replaced at the end of construction, and natural
regeneration is anticipated on the narrow disturbance area.
Areas of existing disturbances within the footprint will be further assessed during
detailed design to determine site-specific baseline conditions, and conservation and
reclamation procedures.
Much of the fill used to build pads on deep (> 40 cm) peat is planned to be removed as
part of reclamation and re-used if practicable. When the fill is no longer required for
operations, it will be returned to borrow areas as a part of the progressive reclamation
plan. At the end of Project life, the borrow areas will generally be reclaimed to upland
areas compatible with the adjacent land.
Using existing disturbances where practicable. The main access to the MCP will
mostly consist of a proposed road to be constructed for the AOSC Mackay River
Pilot Project;
Using common access roads (in-field collector roads) for several well pads;
Combining access and utilities (pipelines, powerlines) into a common ROW;
Minimizing the number of SAGD well pads by locating multiple well pairs on each
pad;
Minimizing SAGD well pad size to the extent allowed by surface infrastructure
and salvaged soil storage;
Restricting traffic and other activities outside of facility areas; and
Undertaking progressive reclamation during the Project.
AOSC will actively engage with the forest management tenure holders to identify
opportunities for integrated land management, and removal of merchantable timber for
site development. Timber salvage, land clearing, debris management and fire control
management will be carried out in accordance with applicable Alberta legislation and
guidelines such as the Forest and Prairie Protection Act, the Timber Management
Regulation (AR 205/2009), and Debris Management Standards for Timber Harvest
Operations (ASRD 2007b). Applicable federal legislation such as the Migratory Birds
Convention Act will also be followed. Authorization from ASRD will be obtained for any
surface disturbance requiring disposition authorization.
Merchantable timber present in the footprint will be salvaged as required. Guidelines for
salvage activities include:
grading is not required. Stumps will be mulched or grubbed. Woody debris will be used
as rollback, chipped or mulched for use as erosion control with surface cover that is not
to exceed a thickness of 10 cm, burned (with required regulatory permissions), or
disposed of as directed by ASRD/AENV. A thin layer of non-merchantable coarse woody
debris resulting from clearing of a site may be used as a base for pads on peatland, on a
site-specific basis.
Vegetation clearing will be minimized to the extent practical, and buffer zones around
sensitive areas (e.g., watercourses) will be maintained where practical. Where
practicable, to protect rare plant species that are Species at Risk Act listed or Alberta
Natural Heritage Information Centre ranked S1 and S2, or provincially ranked “at risk” or
“may be at risk”, Project locations may be adjusted, rare species may be transplanted
and/or seeds may be collected for use in reclamation strategies. These mitigation
strategies will be implemented according to the species’ life history characteristics,
distribution, response to disturbance, and threats to the species.
Surface disturbance will occur mainly at the following locations: MCP and associated
adjacent facilities and soil storage areas, MNP, well pads (including SAGD, source
water, disposal, and salt cavern), access roads, borrow excavations, underground
pipelines, and camps. Construction will include general Project conservation and
mitigation measures and measures that are specific to a biophysical area and type of
facility. Construction methods will be dependent on site-specific surface conditions.
A conceptual plan view of a typical six well pair SAGD well pad is presented on
Figure 8.5-1.
Topsoil will be salvaged separately from subsoil using two-lift stripping as described in
the following sections. Unless otherwise authorized in writing by a Conservation and
Reclamation Inspector, topsoil and subsoil salvage will be suspended where wet or
frozen conditions will result in degradation of topsoil or subsoil quality, or high wind
velocities will result in significant erosion of salvaged soil.
Soil salvage plans take into account the distribution and characteristics of the mapped
soils to optimally retain surface soil quality and quantity. Upland surface soils generally
consist of surface duff (LFH) or shallow (< 40 cm thick) peat, overlying mineral A and B
horizons. Where present, the surface shallow peat layers are thinner (generally < 10 cm)
on the drier mineral soils and thicker on the wetter Gleysolic mineral soils. Most of the
Gleysolic soils do not have an A horizon present. A summary of soil characteristics for
soil series in the Terrestrial LSA, which are related to soil salvage recommendations, is
presented in Table 8.5-1.
General upland topsoil soil salvage guidelines are provided in Table 8.5-2. Site-specific
detailed C&R Plans will be developed prior to construction.
Subsoil will be salvaged from Gleysols where subsoil conditions are not excessively wet
at the time of construction; excessively wet conditions are most likely to occur in
Gleysols with thicker surface peat. The C&R Plan assumes that only surface
duff/shallow peat and surface mineral soil (topsoil) will be salvaged from access roads
on upland mineral soils, as salvaging subsoil on access roads would likely require
additional clearing and surface disturbance (in salvaging and for storage).
Peatland areas have Organic soils with peat thickness greater than 40 cm. Construction
of well pads on peatland will depend on site-specific conditions. Generally, in these
areas, a pad will be constructed with borrow fill on the peat without peat salvage.
However, in some peatland areas, peat depths greater than 40 cm may be stripped on
facility sites and roads to reach more stable mineral soil; this decision will be made on a
site-specific basis during pre-construction planning.
At these sites, geotextile will be laid on the peat surface followed by fill material laid
down in layers and packed. The surface will then be graded and gravel laid down over
geotextile (used to facilitate recovery of gravel at reclamation). Conceptual construction
and reclamation of a typical well pad on peatland is illustrated on Figure 8.5-3.
Reclamation of pads in peatland is discussed in Sections 8.5.13 to 8.5.15. All-weather
access roads on peatland will be constructed on top of the peat with geotextile and
borrow fill, culverts installed where needed, and the access gravelled.
A thin layer of non-merchantable coarse woody debris may be placed on the peat
surface before placing the geotextile and fill, in order to potentially reduce the amount of
fill, pad weight and peat compression.
A summary of peat thickness for the various soil series in the terrestrial LSA is presented
in Table 8.5-3.
No subsoil will be salvaged from Organic soils due to a high water table and/or
excessively wet conditions.
8.5.4.4 Pipelines
The AENV Code of Practice for Watercourse Crossings (AENV 2000a), Code of Practice
for Pipelines and Telecommunications Lines Crossing a Water Body (AENV 2000c),
applicable DFO Operational Statements, and other applicable guidelines will be
followed.
For underground pipelines, the ROW will be cleared with timber salvage where required.
For winter construction, topsoil will be salvaged on the trench width or slightly wider, and
replaced at the end of construction; for non-frozen soil conditions topsoil will be salvaged
from the trench, subsoil storage area, and work area. Any residual slash and rollback
will be replaced along the ROW. Revegetation will occur by natural regeneration. If
natural ingress is slow or the area is prone to erosion, selected areas will be planted with
native species and/or revegetated with an ASRD-approved seed mix.
Aboveground pipeline ROWs will require clearing and timber salvage. Little surface
disturbance occurs over most of the ROW, and is limited to where the support rack piles
are driven into the ground, or where grading of small higher spots may be required (with
soil salvage and replacement occurring at these areas). Wildlife crossings will be
constructed for aboveground pipelines where required.
Average soil series horizon thicknesses in the terrestrial LSA are used to estimate
reclamation volumes; however, actual site-specific soil salvage depths will be
determined in detailed design. Also, adjustments for salvage depths will be made in the
field by appropriately trained personnel. Surface soil salvage depths used in the
estimation of reclamation volumes are listed below:
28 cm peat – Bitumount;
28 cm peat – Steepbank;
20 cm LFH/shallow peat and topsoil – Horse River; and
15 cm LFH/shallow peat and topsoil – Mildred, Winefred and Marguerite.
Surface peat will not generally be salvaged on Organic soils (McLelland, Muskeg,
Mariana, Hartley and Mikkwa), except as described in Section 8.5.4.2.
A horizons are generally absent in Bitumount soils and dominantly absent in Steepbank
soils; however, A horizons will be salvaged with surface peat on these soils when they
are present.
No subsoil salvage was assumed for the Organic soil series; 30 cm of subsoil
(dominantly B horizon, but may include some BC horizon) salvage was assumed for the
mineral soils.
All surface soil material salvaged will be replaced in reclamation. Average replacement
depths are anticipated to be similar to average pre-disturbance depths.
All salvaged subsoil will be replaced in reclamation. Average replacement depths are
anticipated to be similar to average pre-disturbance depths.
The soil storage area for a conceptual typical pad is illustrated on Figure 8.5-1. Soil
salvaged from the initial development borrow excavation areas will be stored on the
designated borrow footprint or the soil storage areas adjacent to the MCP. Actual site-
specific salvaged soil storage locations will be revised for each site during detailed
design and will take into consideration the distribution of soil types on the site.
Soil salvaged for roads will be stored in a windrow along the access road (Figure 8.5-2);
salvaged topsoil may also be placed on the road backslopes and ditches (where
present) and seeded to an ASRD approved seed mix. The exact locations of salvaged
soil storage will be determined during detailed design.
Volumes and locations of stored salvaged soil will be recorded for future
reference and reported to AENV in the Annual Conservation and Reclamation
report.
AOSC’s surface water management plan focuses on produced water reuse, water
supply management and surface water protection. Measures will be undertaken to
maintain natural surface drainage patterns to the extent practicable, install surface water
management features, control site runoff from surface facilities, and maintain adequate
surface water flow that is compatible with the surrounding upland areas and wetland
areas. Examples of mitigation measures include:
Detailed mitigation measures for potential hydrological impacts are provided in the
Hydrology (Volume 3, Section 6), and Aquatic Ecology (Volume 3, Section 8) sections of
the EIA.
Weeds will be managed as per regulatory requirements and industry best practices.
AOSC’s approach to vegetation management is based upon prevention, low impact
mitigation (hand picking and low toxicity herbicides) and monitoring. Examples of weed
management to be undertaken include;
Facility areas will be routinely monitored for weeds during all stages of the
Project. Pre-disturbance information on weeds in the Project will be used to
monitor for known weeds. Weed control will be undertaken in a timely manner
and records of weed control activities will be kept.
A Certificate of Seed Analysis for native seed lots used in reclamation will be
inspected to ensure the seed mixes are free of problem weeds and invasive
agronomic species.
Restricted and noxious weeds as identified in the Alberta Weed Control Act will
be eliminated or controlled, respectively. Other regulatory documents also
addressing weed management (e.g. Weed Management in Forestry Operations –
Directive 2001-06 [ASRD 2001]) will be followed as appropriate.
Non-chemical control of weeds (mowing, cultivating, hand-picking) is preferred,
particularly near wetlands and riparian areas; chemical weed control will be used
only when necessary, with required regulatory permissions.
Herbicides applied will be appropriate for site conditions and weed type; a
licensed industrial pesticide applicator will be contracted to select and apply
herbicides. Only pesticides approved by Agriculture Canada and AENV will be
applied. All federal and provincial regulations regarding use, transportation and
storage of herbicides will be followed. Soil sterilants will not be used.
Herbicides will not be applied under windy or wet conditions that could cause off-
site effects from herbicide movement off the intended treatment area. Areas
treated with non-selective herbicide will be monitored to assess any movement
offsite. Herbicides will not be used where desired species would be harmed; this
may require spot spraying or mechanical control.
Straw or erosion control products containing straw will be evaluated for potential
weed content before being brought on-site.
Use of invasive/persistent agronomic forage species will be avoided.
Only using cereal cover crops (e.g., barley) to control erosion where it is
determined that this is more appropriate than other methods for a specific site,
and seeding at less than a full agronomic rate.
Annual fertilizer applications will not be conducted in order to prevent excessive
growth of an overly competitive herbaceous cover that could out-compete tree
and shrub species. Where vegetation growth is poor, or indications of nutrient
deficiency appear, the need for additional fertilization will be determined by soil
analytical fertility tests and the nutrient status of the offsite control soils.
Landscape and ecosite phase diversity are important factors required to support a
sustainable forest and wildlife community (OSVRC 1998). For most wildlife species,
habitat suitability is governed by broader biological and physical characteristics such as
shrub or tree canopy cover, slope and topographic characteristics (OSVRC 1998). Plant
community biodiversity characteristics include structural diversity (number of vegetation
layers: e.g., herbaceous, shrubs, trees) and plant diversity (e.g., number of species).
Structural layering of vegetation compatible with the control forest is also addressed in
the reclamation regulation update: Guide To: Reclamation Criteria for Wellsites and
Associated Facilities 2007 – Forested Lands in the Green Area Update (ASRD 2007a).
An objective of reclamation is to establish a variety of soil and terrain types with plant
species making up a diverse forest community with site-specific consideration of
surrounding ecosite phases. Reclamation will aim to re-establish soil and terrain with
equivalent land capability for forest ecosystems with a variety of ecosite phases and
species, including a mixture of both woody and herbaceous species in order to support
an eventual return to similar biodiversity and habitat relative to pre-disturbance
conditions. Reclamation will be undertaken on a progressive basis for areas no longer
required as part of ongoing operations.
An important aspect of the C&R plan is to maintain the integrity of peatlands by:
Wind erosion is predominantly a concern on the sandy textured soils, and salvaged peat
from mineral Gleysolic soils that has dried out.
Water erosion can occur on mineral soils on slopes with sufficient gradient, particularly
on long slopes. The dominant soil map unit slope class for mineral soils is class 3 (very
gentle slopes); slope class 2 (nearly level slopes) is also common on the mineral soils.
The Marguerite soils have steeper slopes, but the high infiltration rate on these coarse
textured soils, will lessen surface runoff.
The key to erosion prevention in the more sensitive disturbed areas will be timely
implementation of erosion control measures after disturbance, and particularly after
salvaged soil replacement in reclamation.
Individual facilities for the Project will be decommissioned and reclaimed when it is
determined that a particular facility will no longer be required. At the end of the Project,
all remaining Project facilities will be decommissioned and reclaimed. Six months prior
to ceasing operation, AOSC will submit a decommissioning and final land reclamation
plan to AENV. This plan will contain details as specified by the EPEA Approval, and will
be prepared using the regulatory guidelines of the day, with input from stakeholders and
provincial regulators.
Prior to the removal of any facilities, existing information from environmental reports
completed during facility operation will be reviewed, and additional site assessments will
be conducted as required to determine the presence and extent of any contamination.
Removal of facilities will occur in a manner that prevents release of contaminants. If
required, remediation will be conducted during or after operations. After
decommissioning and abandonment have been completed, any remaining contamination
will be addressed. Confirmatory sampling will be done in compliance with the
remediation objectives of the day.
Production and monitoring wells will be abandoned according to ERCB and AENV
standards. On-site ponds will be decommissioned (including assessment for potential
presence of contaminants), and surface reclamation completed. Watercourse crossings,
culverts and berms will be removed and reclaimed pending consultation with
stakeholders and government regulatory agencies.
Closure reclamation of sites not reclaimed during operations will commence after final
decommissioning. Reclamation of the disturbed sites aims to return the sites to
equivalent land capability for forest ecosystems for the Project as a whole. The
reclamation plan also aims to attain self-sustaining ecosystems able to support a similar
range of end land uses as compared to baseline conditions, and obtain reclamation
certification.
The general approach to reclamation of upland access, well pads (SAGD, source water,
disposal) and other upland surface disturbances includes:
Consultation with ASRD/AENV to discuss the target land use and reclamation
objectives;
Removal and reuse of surface gravel as practicable;
Re-contouring of subsoil for compatibility with surrounding land and drainage
(including removal of berms and ditches) and leaving a stable surface;
Alleviation of compaction on operational surfaces, as needed;
Replacement of salvaged soil. Subsoil, where salvaged, will be replaced and
prepared (e.g., disced) as necessary for the replacement of salvaged surface
soil. Salvaged topsoil will then be replaced and prepared for revegetation.
Variation in micro-topography created during soil replacement will be left to
promote diverse microsites and moisture retention. Replacement of salvaged soil
will enhance revegetation on these areas due to native seeds and root fragments
in the salvaged surface soil.
Addition of amendments if required;
Revegetation in consultation with stakeholders; and
Following revegetation, monitoring to assess reclamation success and
implementation of remedial measures (e.g., weed control, amelioration of
drainage or erosion problems) as required.
Due to the shallow ground water table present in much of the area, if borrow areas are
excavated to form a pit, reclamation to a shallow water body is an option, pending the
site specific hydrologic conditions, and depth of replaced fill in the excavation. If this
reclamation option is chosen for a borrow area, excavation edges will be contoured to
avoid trapping wildlife and to achieve edge water depths of about 2 m or less to promote
the growth of emergent vegetation, if practicable. Establishment of emergent wetland
vegetation by seeding sedges and grasses will help stabilize top slopes of reclaimed
borrow areas and provide marsh-like habitat along the water margins.
Salvaged soil will also be replaced on any area immediately surrounding the excavation
area that has been disturbed, and that area will be revegetated to the surrounding
ecosite phase.
For underground pipelines, salvaged surface soil will have been replaced at the
completion of pipeline construction, subsequent to alleviation of compaction. Areas with
erosion potential will be protected with measures such as seeding ASRD-approved seed
mix, or placing erosion matting, mulch or silt fencing. Revegetation will be done in
consultation with ASRD. Natural regeneration is preferred for revegetation of these
narrow disturbances. Underground pipelines will generally be abandoned in place, in
accordance with ERCB, ASRD and AENV regulatory requirements.
To reduce line of sight along pipeline and powerline ROWs for caribou protection,
rollback and/or line blocking will be utilized on the ROWs; shrubs/trees may also be
planted at final reclamation as needed.
Underground pipeline ROWs on peatland have a relatively small proportion of the ROW
disturbed during winter construction, and salvaged peat is replaced after placement of
the pipe. The reclamation goal for powerline and pipeline ROWs on peatland is for a
return to peatland with similar vegetation to the adjacent, undisturbed peatland areas
through natural regeneration.
Exploration core holes are small disturbances (e.g., 80 m by 100 m) and are generally
cleared of vegetation and drilled without stripping soil or padding with borrow material.
Reclamation of these sites will also utilize natural regeneration for revegetation. If natural
ingress is slow or the area is prone to erosion, selected areas will be planted with native
species and/or re-vegetated with an ASRD-approved seed mix.
Access roads in peatland areas will largely be reclaimed by removal of culverts, recovery
and re-use of the surface gravel, and removal of the road fill material for re-use or return
to the borrow area.
8.5.11 Revegetation
Revegetation plans will be specific for each development site based on pre-disturbance
vegetation, surrounding vegetation, target landform and ecosite phase, and consultation
with regulators and stakeholders. Planting prescriptions (including density) will be
developed on a site-specific basis prior to reclamation.
Natural regeneration will be preferred for revegetation on small and/or narrow sites (e.g.
utility/access corridors, seismic lines, coreholes), and will be considered as an
alternative to seeding/planting where conditions are appropriate (e.g., lower potential for
erosion). If natural revegetation establishment is slow or the area is prone to erosion,
selected areas will be planted with native species and/or revegetated with an
ASRD-approved seed mix. The use of plants that out-compete trees will be avoided
where practicable. Burn areas from forest fires occur within the Terrestrial LSA and on a
small portion of the footprint. These burn areas on the footprint will be revegetated to be
compatible with the successional vegetation community on burned areas adjacent to the
footprint on a site-specific basis; natural regeneration alone may be used for smaller
areas, in conjunction with monitoring.
In areas where the water table is higher relative to the reclaimed peat surface, a more
open wetland with marsh vegetation will be more likely to develop naturally. Natural
vegetation development on the reclaimed area will be primarily dependent on the
species of the adjacent undisturbed wetland (colonizing species) and hydrology of the
reclaimed site. Natural regeneration will be assisted by the proximity of the colonizing
species pool (i.e., immediately adjacent undisturbed wetland). The disturbed area may
develop into a similar wetland type as the adjacent undisturbed wetland (initially at the
edges of the disturbed area). A peat accumulating wetland may evolve over the long
term depending on site-specific conditions.
Long term monitoring is recommended to start in the year after pad removal to verify that
the area is revegetating with desirable species, and eventually, to verify reclamation
success.
8.5.12.1 Landforms
For facilities in upland areas, overall landforms will generally not change significantly
from pre-disturbance landforms. Surface expression (Agriculture Canada 1983) and
drainage patterns on reclaimed areas may vary from pre-disturbance conditions, but will
be compatible with the surrounding landscape. Some areas (e.g. borrow, well pads on
Marguerite soils) may be re-contoured with lesser slope gradients than pre-disturbance
conditions, but will integrate with the adjacent undisturbed slope, surface expression and
surface drainage, and are not anticipated to result in significant changes to overall land
use or land capability for forestry.
The reclamation objective for peatland sites is for reclamation to poorly to very poorly
drained wetland sites. Baseline wetland ecosite phases (mainly bogs and fens) will
decrease, but those areas will be replaced by the wetland reclamation as described in
Section 8.5.12.
Upland Areas
With the conservation and reclamation measures outlined in the C&R Plan, it is
anticipated that post reclamation soil quality/quantity and terrain on upland mineral soils
will be similar to pre-disturbance conditions. Reclaimed mineral soils will have a mixed
LFH or shallow peat/Ae layer underlain by the salvaged subsoil. A return to the same
land capability class for forest ecosystems, as well as similar forest productivity and
potential commercial forest use is anticipated. For example, the Horse River soils which
are rated Class 3 at pre-disturbance conditions will be returned to a Class 3
post-reclamation capability.
Reclaimed portions of the footprint in peatland areas that require padding, such as well
pads and roads, are also anticipated to return to the same Land Capability Class (Class
5) as the pre-disturbance peatlands. This is anticipated to result from the removal of the
pad fill, and the subsequent equilibration with the adjacent undisturbed wetland to similar
wet hydrological conditions. Based on the distribution of Organic soils mapped on the
footprint, approximately 1,102 ha of Organic soils may require padding; this will be
determined on a site-specific basis.
Baseline Post-Reclamation
Forest Land Capability Class1 Area in LSA Area in LSA % of LSA
% of LSA
(ha) (ha)
Class 4 (Conditionally
2,056 10.1 2,057 10.1
Productive)
Class 5 (Non-Productive) 14,636 71.7 14,638 71.7
Unclassified (Water, Stream
172 0.8 169 0.8
Channel, Disturbed)
Total 20,418 100 20,418 100
1. Classes 1 and 2 were not found in the terrestrial LSA.
Soil and terrain, to ensure that equivalent land capability is achieved for
reclamation certification;
Vegetation (including reclaimed wetlands), to ensure that it is re-established for
the target vegetation and meets reclamation requirements; and
Reclamation issues such as erosion, weed infestation, drainage problems, or
industrial debris that need remedial measures will be addressed.
Information gained on the reclamation of the initial upland sites and peatland pads will
contribute to adaptive management and potential improvements in construction and
reclamation techniques throughout the Project life. Ongoing reclamation activities and
procedures will be documented. Documentation will include a description of the type of
development which was present, and the timing of type of reclamation activity carried out
for a specific site.
The reclamation monitoring program will evaluate the success of reclamation over time
to ensure reclamation is addressing the following:
Reclaimed areas will be inspected after the first growing season following reclamation.
Initial establishment of the vegetation will be assessed. Any reclamation problems will
be assessed and remedial measures undertaken as needed. Once vegetation is
established, progress toward reestablishing the target vegetation will be monitored over
time. The pre-development biophysical information collected will provide a reference with
which to assess reclamation success.
ACCESS
MOTOR VENT
CONTROL
CENTRE
TEST PACKAGE
START-UP
SKID
Well site width 166 m
Not to Scale
Legend:
Producer Wellhead
F:\7349 AOSC\Drafting\2009\7349-RW-09.cdr
Peace River
Injector Wellhead Fort McMurray
Powerline
All-weather Road
57 m Access/Pipeline/
Powerline ROW
Limit of clearing
Limit of clearing
57 to 59 m Access/Pipeline/Powerline ROW
Power Pole
8 to 10 m
Pipe rack for steam,
emulsion and vent
gas pipelines Salvaged Salvaged
topsoil All-weather road topsoil
Legend:
F:\7349 AOSC\Drafting\2009\7349-RW-09.cdr
Peace River
ORIGINAL LANDSCAPE
CROSS-SECTION EXISTING WETLAND
Original
VEGETATION
Ground
Surface
Organic
Material
(Peat)
Parent Material (C Horizon)
Proposed Pad ORIGINAL LANDSCAPE
PLAN VIEW
EXISTING EXISTING
WETLAND WETLAND
VEGETATION WELLPAD VEGETATION EXISTING WETLAND VEGETATION
LEGEND:
F:\7349 AOSC\Drafting\2009\7349-PAD-09.cdr
Twp.91
! ! ! !
! ! ! !
6300000
Twp.90
! ! ! ! !
! ! ! ! !
! ! ! ! !
! ! ! ! !
! ! ! ! !
6290000
Twp.89
I:\7349_514\MA PS\FIGURES \EIA\005_FIGURE_8_5-4a_POST-RECLAMATION_ECOLOGICAL_LA ND_CLAS SIFICATION _TERRES TRIAL_LOCAL_STUDY_AREA -SOUTH.mxd
Twp.88
6280000
LEGEND
1:80,000
TERRESTRIAL LOCAL STUDY AREA (LSA) BASELINE DISTURBANCES 1 0 1
WATERCOURSE
!
LP 09/11/13 WR 09/11/13
b2 e1 h1 k3 Reference:
CLASSIFICATION -
! ! ! ! ! !
RAILWAY
! ! ! ! ! !
SOUTH
Prepared solely for the use of Athabasca Oil Sands Corp. as
POWERLINE d1 f2 j2 WETLAND specified in the accompanying report. No representation of
RECLAMATION _
^ Project Location
any kind is made to other parties with which
Athabasca Oil Sands Corp. has not entered into contract. FIGURE 8.5-4a
410000 420000
Twp.93
Do
v er Riv er
6320000
Twp.92
6310000
Twp.91
! ! ! !
! ! ! !
Twp.90
6300000
LEGEND
1:80,000
TERRESTRIAL LOCAL STUDY AREA (LSA) BASELINE DISTURBANCES 1 0 1
WATERCOURSE
!
LP 09/11/13 WR 09/11/13
b2 e1 h1 k3 Reference:
CLASSIFICATION -
! ! ! ! ! !
RAILWAY
! ! ! ! ! !
NORTH
Prepared solely for the use of Athabasca Oil Sands Corp. as
POWERLINE d1 f2 j2 WETLAND specified in the accompanying report. No representation of
RECLAMATION _
^ Project Location
any kind is made to other parties with which
Athabasca Oil Sands Corp. has not entered into contract. FIGURE 8.5-4b
410000 420000 430000 440000
Twp.93
Do
v er Riv er
6320000
Twp.92
6310000
Ma cK ay R ive
r
Twp.91
6300000
Twp.90
6290000
Twp.89
017_FIGURE_8_5_5_POST-RECLAMATION_LA ND_CA PABILITY _FOR_FOREST_E COSYSTEMS_IN_THE_TE RRESTRIA L_LOCAL_S TUDY _A REA.mxd
6280000
Twp.88
River
as ca
At h ab
Rg. 17 Rg. 16 Rg. 15 Rg. 14 Rg. 13
LEGEND
1:150,000
TERRESTRIAL LOCAL STUDY AREA (LSA) BASELINE SOILS DISTURBANCE 2 0 2
Reference:
PIPELINE Calgary
1:20,000 Base Features obtained from Altalis used for License
ECOSYSTEMS - TERRESTRIAL
POWERLINE
LOCAL STUDY AREA
!
Disclaimer:
Prepared solely for the use of Athabasca Oil Sands Corp. as
specified in the accompanying report. No representation of
any kind is made to other parties with which Athabasca Oil
_
^ Project Location Sands Corp. has not entered into contract. FIGURE 8.5-5
MacKay River Commercial Project 9-1 Environmental Impact Assessment Summary
December 2009
The EIA and the Project application (Volume 1) form AOSC’s Integrated Application to
the ERCB and AENV. The EIA has been prepared using accepted techniques and in
compliance with the requirements prescribed under the:
Preliminary work for the Project was initiated in 2008 to evaluate Project alternatives,
identify pertinent data sources and define required data collection programs. Initial
discussions were held with government departments to scope out the Project
requirements, application procedures and regulatory processes. Consultation was
conducted with local residents, government representatives, First Nations, Métis
Associations and other public representatives during this period to identify biophysical
and socio-economic issues and to confirm study requirements (Volume 1, Section 7).
Field work was undertaken from 2008 through 2009 to enhance the baseline water,
fisheries, soil, vegetation, wildlife and historical information. Wildlife surveys were
initiated in spring 2008 and were completed in early summer 2009. Vegetation surveys,
including rare plant surveys, were undertaken in early and late summer 2008 and 2009.
Data on hydrology, water quality, aquatic ecology and terrain and soils were collected in
2008 and 2009. Benthic samples were collected in summer 2008.
Potential environmental and socio-economic effects for the Application and Planned
Development Cases were identified and assessed using the following steps:
The air quality assessment provides an understanding of the magnitude and the spatial
variation of potential air quality changes associated with the Project emissions. These
emissions will overlap with emissions from other local and more distant emission
sources; therefore, the ambient air quality assessment for the Project considers all of
these sources. The Project will be a source of sulphur dioxide (SO2), oxides of nitrogen
(NOX), particulate matter (PM), carbon monoxide (CO), volatile organic compound (VOC)
and GHG emissions that result from combustion processes. Fugitive emissions of
hydrogen sulphide (H2S) may occur periodically. In addition, ambient SO2 and NOX can
form acidifying chemicals in the atmosphere, which are removed by wet and dry
deposition mechanisms. This potential acid input (PAI) can potentially change soil and
surface water chemistry. The approach used to evaluate these combustion and fugitive
emissions is consistent with assessments that have been adopted in EIAs for other oil
sands developments in the region.
The maximum effects of Project emissions tend to be limited to the vicinity of the
development (i.e., within 10 km). Ambient concentrations due to air emissions from the
Project and other existing, approved and proposed facilities will tend to decrease with
increasing distance from the respective operations. Final impacts ratings for SO2, NOx
and PM2.5 are negligible in both the Application Case and Planned Development Case.
Final impact ratings for PAI are low in both the Application Case and Planned
Development Case.
9.3 NOISE
Noise sources from the Project include the MCP, the MNP, and the production well
pads. Two separate noise modelling scenarios were generated. Modelling Scenario 1
refers to the MCP operating alone, and Modelling Scenario 2 refers to the MCP and
MNP operating concurrently.
There are no existing significant industrial noise sources or residential receptors within
the noise RSA, so no baseline monitoring was conducted. There are also no known
permanent dwellings within 5 km of the lease boundary, therefore, theoretical receptor
locations were established at a distance of 1.5 km from the Project noise sources.
The noise modelling predicted that the Project will comply with the permissible sound
levels (PSL) established under ERCB Directive 038 (2007) during the Application Case
for the construction scenario for both modelling scenarios as well as the Planned
Development Case.
The human health risk assessment (HHRA) for the Project focused on direct and indirect
(airborne and multi-media) health risks associated with industrial and community air
emissions in the RSA. The three environmental impact parameters that were assessed
for HHRA are acute inhalation health risks, chronic inhalation health risks and chronic
oral health risks.
The final impact rating for the acute inhalation assessment for the Application Case and
Planned Development Case is low based on the concentrations of PM2.5 and SO2
predicted at the maximum point of impingement (MPOI) and/or Fort McKay. The final
impact rating for the chronic inhalation assessment for the Application Case is negligible
and low for the Planned Development Case. The final impact rating for chronic oral
health risks is negligible for the Application Case and Planned Development Case. The
uncertainty incorporated in the assessment suggests that the potential for adverse
impacts to occur in humans is low. The final impact rating for all other pathways is
negligible.
9.5 HYDROGEOLOGY
The Application and Planned Development Cases predict that operation of the Project
surface facilities, including production and steaming, will have a low impact on the local
hydrogeologic resources.
9.6 HYDROLOGY
Water quality parameters are influenced by natural factors such as temperature and
seasonal variation, precipitation, surface runoff, chemical and biotic components of the
aquatic environment, sediments and groundwater. The parameters assessed for
surface water quality included increases in suspended sediments, release of Project
related chemicals, deposition of acidifying emissions, and changes in surface water
flows and levels.
With the implementation of appropriate mitigation measures, it is predicted that there will
be no impact to any of the environmental parameters in the Application Case, therefore
no effects are carried forward to the Planned Development Case.
Project activities have the potential to cause direct physical impacts to fish and fish
habitat and indirect effects associated with changes in the invertebrate community,
surface water quality and hydrology. The parameters identified for aquatic ecology
include riparian and instream fish habitat alteration (including sedimentation, changes to
fish habitat associated with groundwater pumping, changes to water flows, and changes
to riparian habitat) and industrial disturbance to fish habitat (including spills and
discharges, changes in surface water pH and increased access to fish population).
Overall impact assessment ratings for the Application Case were predicted to be either
no impact, negligible impact or low impact. The environmental impact parameters
assessed for the Planned Development Case were sedimentation, changes to riparian
habitat, spills and discharges and access. Overall, the impact assessment ratings for
those parameters were negligible to low impact. The Project is not expected to have any
impacts on fish and fish habitat.
The parameters identified for terrain and soil resources include land capability (including
land capability classification, soil suitability for reclamation, and soil sensitivity to wind
and water erosion), changes to terrain (i.e., loss of landforms), and acidification
potential.
In the Application Case, the Project may impact terrain and soil resources through
surface disturbance and air emissions. The final impact ratings for all three
environmental impact parameters in the Application Case are negligible. Potential
impacts and mitigation measures in the Planned Development Case are anticipated to
be similar to those in the Application Case. The final impact ratings for changes to land
capability, changes to terrain, and soil acidification potential are negligible.
9.10 VEGETATION
For the Application Case, the Project is predicted to have no impact on terrestrial
vegetation, traditional medicinal plants, and rare ecological communities. It is predicted
that there will be a negligible impact for communities of limited distribution, commercial
forests, and alterations to hydrology. It is predicted that there will be a low impact on
wetlands, forested lands, productive forests, old growth forest, rare plants, rare plant
habitat potential and non-native and invasive species.
All parameters assessed for the Planned Development Case (terrestrial vegetation,
wetlands, communities of limited distribution, forested lands, productive forests,
commercial forests, rare plant habitat potential and PAI) have a final impact rating of
negligible.
9.11 WILDLIFE
The parameters identified for wildlife include habitat availability, habitat connectivity,
noise, mortality and wildlife health. The indicator species assessed for each parameter
were the Canadian toad, northern goshawk, mixedwood forest bird community, old
growth forest bird community, beaver, snowshoe hare, Canada lynx, moose, woodland
caribou, and black bear.
All of the wildlife indicators except black bear were used to assess the impacts to habitat
availability. Residual impacts on habitat availability for the Application Case and
Planned Development Case range from negligible to moderate.
Moose and woodland caribou were selected to assess the impacts of habitat
connectivity in the RSA because they have large home ranges and are known to exhibit
seasonal migrations. With mitigation, including above ground pipe crossing structures
and underpasses, the final impact to moose habitat connectivity is considered low and
impacts to caribou habitat connectivity are predicted to be moderate for both the
Application Case and Planned Development Case.
Mortality risk was assessed for Canadian toads in the LSA, and for moose, woodland
caribou and black bear in the RSA. The final impact rating to wildlife indicators was
negligible to low for both the Application and Planned Development Cases.
The parameters identified for biodiversity and fragmentation on terrestrial and aquatic
diversity include habitat richness, total habitat area and habitat fragmentation. Effects
on species were assessed using predicted changes in the area and fragmentation of
individual habitats together with habitat rankings for local rarity, rarity in the Central
Mixedwood natural subregion, and species biodiversity potential.
There will be no impact to habitat richness during and after Project closure. Although
Project construction will reduce the total area of all natural and semi-natural habitats in
the LSA, after reclamation, the proportion of the LSA occupied by habitats is predicted to
be higher than it was at baseline due to the reclamation of some existing disturbed areas
outside the Project footprint.
Total habitat area for seven habitats following Project closure is expected to be reduced
from baseline levels. The majority of these are not ranked as rare in the LSA or the
Central Mixedwood natural subregion. The final impact rating is low for terrestrial
biodiversity and negligible to no impact for aquatic biodiversity during and after Project
closure.
In most cases the habitats that are expected to show the largest reductions in area or
the highest levels of fragmentation are not ranked high for species biodiversity potential.
Therefore, it is not anticipated that species diversity will be adversely affected during
Project construction and operation. The final impact rating is low for terrestrial
biodiversity and no impact for aquatic biodiversity during and after Project closure.
In the Planned Development Case all disturbances are expected to occupy 13.3% of the
RSA. The contribution of the Project footprint to the total areal extent of all disturbances
in the RSA is expected to be 1.4%. Given that the Project is predicted to occupy less
than 1.0% of the RSA, effects on total habitat area, fragmentation and species diversity
The parameters identified for land use include environmentally important areas, airstrips,
surface (e.g., disposition holders) and subsurface interests (e.g., lease holders),
aggregate resources, forestry, berry picking, hunting, trapping, fishing and non
consumptive outdoor recreation.
The Project footprint will result in an increase in roads and linear disturbances. An
increase in access can have both positive and negative effects on recreational use and
will likely be taken advantage of by consumptive and non-consumptive recreational
users. Users that prefer to use remote areas will have greater access; however, it is not
known if the number of people who prefer to use remote areas will increase. The effect
of increased access and greater ease of access to remote areas may result in greater
competition for consumptive activities such as berry picking, hunting and fishing, which
may displace some users.
For the Application Case final impact ratings included no impact for airstrips, a negligible
impact for environmentally important areas, surface and subsurface interests, forestry,
berry picking, hunting and trapping, fishing, and non-consumptive recreation and low
impact for aggregate resources.
Planned projects in the RSA contribute to additional linear disturbance in the RSA. As
with the Application Case, an increase in access can have both positive and negative
effects on recreational users. The final impact ratings in the Planned Development Case
was negligible for environmentally important areas, surface and subsurface interest,
forestry, berry picking, hunting and trapping, fishing, and non-consumptive recreation
and low impact for aggregate resources.
The Project will generate substantial economic benefits in the province. While the
Project may also create or add to some regional and provincial pressures, in purely
economic terms, the benefits are greater.
Construction of the Project will generate approximately 21,137 person years (P-Y) of
direct, indirect and induced employment in the province. After the Project is operational
in 2014, the Project will create approximately 510 full time equivalent positions per year
(direct, indirect and induced) in the province and generate millions of dollars in tax
revenue.
The population increase estimated in Fort McMurray due to direct, indirect and induced
job creation from the Project will peak at approximately 1,400 people in 2013 and will
increase by approximately 970 people over 15 years.
Mitigative measures for potential effects include continued provincial attention to timely
release of Crown land, planning for development, and funding formulas for medical,
education, emergency and recreation facilities, which are directly in the control of the
AOSC will maintain its participation in regional planning initiatives such as the OSDG
and the IOSA. As well, AOSC will work with the municipalities and local stakeholder
groups to ensure communication of Project stages and associated population changes.
A Historical Resources Impact Assessment (HRIA) was completed for the Project. The
baseline HRIA identified one archaeological site (HePa-1) and one trapper cabin in the
LSA. The HePa 1 site is a small scatter of artefacts which has limited interpretive value
and has been mitigated by recording, testing and collecting artefacts from the site. The
Project footprint avoids the trapper cabin. Other trapper cabins identified through
consultation are located outside the Project footprint. No other historical resources were
identified to be in conflict with the Project footprint. Eleven archaeological sites and one
historic period site were identified in the inventory search outside the Project lease and
footprint and all are of low significance. The Project footprint was evaluated by detailed
pedestrian transect inspections and 360 shovel tests and key observation areas. A
recommendation has been made to Alberta Culture and Community Spirit for Historical
Resources Clearance.
A requirement for an adaptive management strategy (AMS) for Historical Resources has
been outlined for the Project LSA. This program will include pre-impact historical
resources screening studies for future additions or revisions to the Project footprint by
applying the revised model of historical resources potential to determine historical
resources requirements and clearances within the LSA. Based on Project specific
requirements that will be developed in the AMS, it is predicted that there will be no
impact to historical resources in the Application Case.
The AMS is designed to provide a mitigation plan to prevent Project related effects such
as the clearing of land, removal of borrow material and construction of facilities on
historical resources. No project related effects to historical resources are predicted.
Consequently, the Project will not contribute to effects to historical structures,
archaeological and paleontological sites in the Planned Development Case in the RSA.
The Project is situated in proximity to the Fort McKay First Nation, Mikisew Cree First
Nation, Athabasca Chipewyan First Nation, Fort McMurray First Nation, Fort Chipewyan
Métis and the Fort McKay Métis. The potential effects of the Project on traditional lands
and use are of cultural, environmental, social, and economic relevance, because it
pertains to the well being of affected Aboriginal communities (individually and
collectively) as well as the land to which the people are connected.
AOSC is engaged in ongoing consultation efforts with Fort McKay First Nation, Mikisew
Cree First Nation, Athabasca Chipewyan First Nation and the Fort McMurray First
Nation. To date, none has committed to participate in a Project-specific TEK and TU
study. AOSC intends to continue working with these First Nations in ongoing
consultation efforts to develop an acceptable process for assessing the Project’s impacts
on Aboriginal groups.
First Nations identified several issues and concerns and relevant mitigative measures
were brought forward. AOSC intends to continue the ongoing consultation to resolve
and mitigate the identified concerns and issues. During the meeting with the Fort
Chipewyan Métis it was determined that, while the Project area had been used by Fort
Chipewyan Métis in the past, present day traditional activities carried out by community
members are now centered around the town of Fort Chipewyan, approximately 200 km
to the north of the Project. As the traditional activities of the Fort Chipewyan Métis are
not presently being carried out within the Project area, no Project specific related
concerns were identified.
10 REFERENCES/LITERATURE CITED
Alberta Environment (AENV). 2009a. Guide to Preparing Environmental Impact
Assessment Reports in Alberta – Updated October 2009. Alberta Environment,
Environmental Assessment Team. Edmonton, Alberta. EA Guide 2009-2. 32
pp. Available online at: http://environment.gov.ab.ca/info/library/8127.pdf.
AENV. 2007. Interim Emissions Guidelines for Oxides of Nitrogen (NOx) for New
Boilers, Heaters and Turbines using Gaseous Fuels for the Oil Sands Region in
the Regional Municipality of Wood Buffalo North of Fort McMurray Based on a
Review of Best Available Technology Economically Achievable. Edmonton,
Alberta.
AENV. 2006. Water Conservation and Allocation Guideline for Oilfield Injection.
Edmonton, Alberta. Available online at:
http://www.waterforlife.gov.ab.ca/docs/Oilfield_Injection_GUIDELINE.pdf
AENV. 2004. Code of Practice for Pits. Environmental Protection and Enhancement
Act and Conservation and Reclamation Regulations (115/93), as amended.
Edmonton, Alberta.
AENV. 2003c. Sites Reclaimed Using Natural Recovery Method: Guidance On Site
Assessments. R&R/03-06. Edmonton, Alberta.
AENV. 2000a. Code of Practice for Watercourse Crossings. Water Act – Water
(Ministerial) Regulations.
AENV. 2000c. Code of Practice for Pipelines and Telecommunication Lines Crossing a
Water Body. Water Act – Water (Ministerial) Regulations.
AENV. 1995b. Reclamation Criteria for Wellsites and Associated Facilities – 1995
Update. Edmonton, Alberta.
AENV. 1994a. Guide for Pipelines Pursuant to the Environmental Protection and
Enhancement Act and Regulations. Available online at:
http://www3.gov.ab.ca/env/protenf/publications/GuideForPipelinesPursuantToTh
eEPEARegulations_March1994.pdf
AENV. 1994b. Guide for Oil Production Sites: Pursuant to the Environmental Protection
and Enhancement Act and Regulations. Available online at:
http://environment.gov.ab.ca/info/home.asp
Agriculture Canada, 1983. The Canadian Soil Information System (CanSIS), Manual for
Describing Soils in the Field (revised). Compiled by Working Group on Soil
Survey Data, Canada Expert Committee on Soil Survey. Research Branch,
Agriculture Canada, Ottawa. LRRI Contribution No. 82-52.
Alberta Agriculture, Food and Rural Development (AAFRD). 1987. Soil Quality Criteria
Relative to Disturbance and Reclamation (Revised). Soils Branch. Edmonton,
Alberta.
Alberta Land Conservation and Reclamation Council (ALCRC). 1991. Guidelines for
the Preparation of Applications and Reports for Coal and Oil Sands Operations.
Edmonton, Alberta. 244 pp.
ASRD. 2007b. Debris Management Standards for Timber Harvest Operations. Available
online at:
http://www.srd.alberta.ca/forests/pdf/2007_debris_management_standards_timb
er_harvest.pdf
Barrow, Elaine and Ge Yu. 2005. Climate Scenarios for Alberta. A report prepared for
the Prairie Adaptation Research Collaborative (PARC) in co-operation with
Alberta Environment. 73 pp.
ERCB. 2007b. Directive 020 – Well Abandonment Guide. Available online at:
http://www.ercb.ca
ERCB. 2006a. Directive 042 - Measurement, Accounting, and Reporting Plan (MARP)
Requirement for Thermal Bitumen Schemes. Available online at:
http://www.ercb.ca
ERCB. 2006b. Directive 060 – Upstream Petroleum Industry Flaring, Incinerating and
Venting. Available online at: http://www.ercb.ca
ERCB. 2001a. Directive 055 – Storage Requirements for the Upstream Petroleum
Industry. Available online at: http://www.ercb.ca
ERCB. 2001b. Interim Directive 2001-3 – Sulphur Recovery Guidelines for the Province
of Alberta. Available online at: http://www.ercb.ca
ERCB. 1996a. Directive 050 – Drilling Waste Management. October 1996. Available
online at: http://www.ercb.ca
ERCB. 1996b. Directive 058 – Oilfield Waste Management Requirements for the
Upstream Petroleum Industry. Available online at: http://www.ercb.ca
ERCB. 1994. Directive 051 – Injection and Disposal Wells – Well Classifications,
Completions, Logging, and Testing Requirements. Available online at:
http://www.ercb.ca
Graf, Martha D. 2008. Restoring Fen Plan Communities on Cutaway Peatlands of North
America. Ph.D thesis at Plant Science Department, Faculty of Agriculture and
Food Sciences, University Laval, Quebec. 166 pp.
Hein, F.J., Marsh, R.A, and Boddy, M.J., 2008. Overview of the Oil Sands and
Carbonate Bitumen of Alberta: Regional Geologic Framework and Influence of
Salt-Dissolution Effects. AAPG Hedberg Research Conference, September 30 -
October 3, 2007, Banff, Alberta, Canada - Abstracts, #90075 (2008)
Oil Sands Wetlands Working Group (OSWWG). 2000. Guideline for Wetland
Establishment on Reclaimed Oil Sands Leases. N. Chymko, Editor. Report No.
ESD/LM/00-1. Alberta Environment, Environmental Services. Publication No.
T/517. Alberta Environment, Environmental Sciences Division. ISBN 0-7785-
1042-5. Edmonton, Alberta. 137 pp. + Appendices.
Safety Codes Council. 1999. Alberta Private Sewage System Standards of Practice
Handbook. Available online at:
http://www.municipalaffairs.gov.ab.ca/Handbook_index.cfm
Vitt, D. and K. Wieder. 2007. Development of Scientific Protocols for Oil and Gas Pad
Reclamation in Peatlands of Boreal Alberta. Department of Biology, Southern
Illinois University, Carbondale, Illinois. Research proposal; obtained from MEG
Energy 2008. Calgary, Alberta. 15 pp.
Table A1-1 ERCB Directive 023 Information Requirements (ERCB 1991) (continued)
Directive 023 Requirement (abridged) Locations in Volume 1
Section unless otherwise
noted
2.3 Insitu operations
2.3.1 Geological description of zone of interest supported by:
a. map showing the land surface topography Figure 1.2-3
b. map showing the locations of all evaluation wells and Figures 3.2-1 and 3.2-2
indicating those that have been cored and those that have
been logged
c. the log and core evaluation technique 3.3
d. isopach maps of the net pay and/or bitumen metre maps Figure 3.7-2
over the zone of interest as well as for other potential
bitumen bearing zones
e. cross-sections clearly indicating the zone of interest, Figures 3.9-2 through
illustrating the top and base of porosity, fluid interfaces, 3.9-12
pertinent test data over the zone of interest and impermeable
lenses or layers
f. tabulations of reservoir rock parameters, fluid properties and Table 3.7-1
log interpretation cutoffs used
g. structure and position of fluid interfaces within the zone of 3.8
interest
h. maps showing gas caps and bottom water associated with 3.8
the zone of interest
i. a description of the techniques used to model geological 3.12.1
data
2.3.2 Identification by name and depth of the target zone including any 3.8
crude bitumen zone or water zone immediately above or below the
zone of interest.
2.3.3 Criteria used in selecting the oil sands zone for recovery 3.4.2
2.3.4 A description of the cut off bitumen grade and thickness criteria used 3.8
to establish the in-place resource potential of the project area
supported by reserve estimates and trends
2.3.5 A geological, engineering and economic evaluation of the bitumen 3; 5; 1.7
reserves recoverable by the proposed scheme and a description of
and rationale for the criteria employed
2.3.6 A geological, engineering and economic evaluation of bitumen 3.8
reserves not recoverable by the proposed scheme
2.3.7 A discussion of the potential and requirements for any follow-up 3.14
recovery of reserves from the zone of interest or other bitumen
bearing zones within the scheme area
2.3.8 Evaluation of gas reserves associated with the oil sands to be 3.8
developed, including a description of:
a. the effect the proposed operations would have on the
recovery of those reserves
b. the effect the gas reserves would have on the recovery of the
crude bitumen reserves
2.3.9 An evaluation (quantity and characteristics) of sand or fines 3.4.2; 5.1.4; 6.4
production, the effects on hydrocarbon production and recovery and
anticipated disposal methods as well as anticipated disposal methods
Table A1-1 ERCB Directive 023 Information Requirements (ERCB 1991) (continued)
Directive 023 Requirement (abridged) Locations in Volume 1
Section unless otherwise
noted
2.3.10 A description of the recovery process to be used, including
a. the objectives, the intended course of operation and the 3.10
applicability of the process
b. a comparison of this process with others considered, stating 1.7
the technical, economic, environmental and cost reasons for
the selection
c. potential for follow-up processes for improved recovery 3.14
d. results of computer modelling or simulation studies 3.12
e. economic and production criteria used to abandon an oil 3.10.2
sands zone
2.3.11 The recovery efficiency of the process selected, including 3.11
a. effects of reservoir well spacing and interwell communication
b. areal, vertical and displacement efficiencies, and
c. effects of reservoir properties such as pay thickness,
directional permeability trends, featuring characteristics and
the presence of gas caps, aquifers or shale breaks
2.3.12 A description of the Project layout with emphasis on equipment
spacing and surface disturbance, including
a. the sequence of development for major project components 1.3
b. the well pad configuration and spacing design, well site and 5.3; 5.1
satellite layout, fluid treatment and handling facilities
c. future pad configuration and surface facilities 5.1; 5.2
2.3.13 A description of the efforts to minimize land disturbance and the 1.2; 5.1.5
collection, conservation or other disposition of produced gases
2.3.14 A diagram and description of proposed well drilling and completion
methods, including
a. wellhead design 4.5
b. casing and tubing with specifications and setting depths 4.2
c. the cementing details proposed to ensure continued integrity 4.2
of wells
2.3.15 A description of the proposed well performance monitoring program, 4.3; 4.6
including:
a. routine production testing
b. temperature and production logging
c. surface fluid sampling
d. field and laboratory analyses programs
2.3.16 A description of geotechnical factors and techniques of monitoring, 4.6
that may affect operations, including
a. casing monitoring program to detect failures
b. the method of reporting failures, ghost holes and other
drilling anomalies
2.3.17 The volume of fluids and solids produced and the proposed 6.4
disposition of each
2.3.18 Material balances for hydrocarbons, sulphur and water in the central 5.1; 6.3.1
processing facility
2.3.19 A process flow diagram for the central processing facility, including Figures 5.1-4 through
major equipment and stream composition with the proposed 5.1-9
measurement devices and locations
2.3.20 A sample set of production accounting reports for the central 5.5
processing facility
Table A1-1 ERCB Directive 023 Information Requirements (ERCB 1991) (continued)
Directive 023 Requirement (abridged) Locations in Volume 1
Section unless otherwise
noted
2.4 Processing Plant
2.4.1 A separate description of the bitumen extraction, upgrading, utilities, 5.1
refining and sulphur recovery facilities, including
a. a discussion of the process
b. process flow diagrams indicating major equipment, stream
rates and composition, and the proposed production
measurement devices, characteristics and locations
c. chemical and physical characteristics and properties of feeds
and product materials
2.4.2 Overall material and energy balances, including information with Figures 5.1-10 and
respect to hydrocarbon and sulphur recoveries, water use and energy 5.1-11; 6.3.1
efficiency
2.4.3 Quantity of products, by-products and waste and their disposition 6.4
2.4.4 Surface drainage within the areas of the processing plant, product 6.2.1; 6.4
storage and waste treatment and disposal
2.4.5 Comparison of proposed process to alternatives considered on the 1.7.1
basis of overall recovery, energy efficiency, cost, commercial
availability and environmental considerations and the reasons for
selecting the proposed process
2.4.6 This number has been omitted from G-23 NA
2.4.7 Example of production accounting reports 5.5
2.5 Electrical Utilities and External Energy Sources
2.5.1 A description of any facilities to be provided for the generation of 5.1.2; 5.1.8
electricity to be used by the project.
2.5.2 Identification of the source, quantity and quality of any fuel, electricity 5.3.7
or steam to be obtained from sources beyond the project site
2.5.3 Where energy resources from outside the project boundaries are to 5.3.7; 1.7.1
be supplied to the project, a detailed appraisal of the options available
to eliminate the need for such resources, with consideration for overall
recovery, energy balance, costs, technical limitations and
environmental implications
2.6 Environmental Control
2.6.1 A description of air and water pollution control and monitoring 6.1 through 6.3
facilities, as well as a liquid spill contingency plan
2.6.2 A description of the water management program, including 5.4
a. the proposed water source and expected withdrawal 5.4
b. the source-water quality control 6.4
c. the waste-water disposal program Figures 5.1-10
d. water balance for the proposed scheme and 5.1-11
e. the produced-water clean-up/recycle program 5.1.4
2.6.3 The manner in which surface water drainage within the Project area 6.2.1
would be collected, treated and disposed
2.6.4 A description of the air and water pollution control and monitoring Volume 2, Section 2
facilities Volume 3, Section 5
Table A1-1 ERCB Directive 023 Information Requirements (ERCB 1991) (continued)
Directive 023 Requirement (abridged) Locations in Volume 1
Section unless otherwise
noted
2.6.5 A description of the emission control system, including 6.3;
a. stack design criteria and process data Volume 2, Section 2
b. any additions of residue gas or natural gas to the flare
system to ensure combustion of hydrogen sulphide for both
normal operating conditions and maximum emission
conditions
c. methods proposed for the control of all air pollutants from all
potential or actual emission sources at the operation
(including all vents, stacks, flares, product storage tanks,
sulphur handling areas, ponds, wells and other fugitive
emission sources) during normal, emergency and maximum
operating conditions
d. monitoring program for hydrogen sulphide, sulphur dioxide,
total sulphation, hydrogen sulphide sulphation, soil pH,
nitrogen oxides and hydrocarbons in the surrounding area
3.1 Commercial Viability
3.1.1 An appraisal and projections, on an annual basis of Volume 5, Section 14
a. revenues by product
b. itemized capital and operating costs, including a breakdown
of fuel costs and non-fuel operating costs
c. some discussion of the project financing
d. royalties and taxes
e. net cash flow
f. marketing arrangements
g. supply arrangements for fuel requirements and electric
power
3.1.2 A description of project costs which include capital and operating cost, Volume 5, Section 14
including
a. a breakdown of capital and operating costs for each
component of the project including site preparation, well
drilling and completion, central processing facilities (including
steam generation, waster treatment and recycling), satellite
and surface facilities, production/injection distribution system,
upgrading, utilities and off-sites
b. depreciation
3.2 Benefit-Cost Analysis
3.2.1 A summary of quantifiable public benefits and costs incurred during Volume 5, Section 14
the construction and operation of the Project
3.2.2 A summary of non-quantifiable public benefits and costs incurred Volume 5, Section 14
each year during construction and operation of the Project
3.3 Economic Impact
3.3.1 An appraisal of the economic impact of the Project on the region, Volume 5, Section 14
province and nation
3.3.2 A discussion of any initiatives undertaken to accommodate regional Volume 5, Section 14
economic priorities and interests
Table A1-1 ERCB Directive 023 Information Requirements (ERCB 1991) (continued)
Directive 023 Requirement (abridged) Locations in Volume 1
Section unless otherwise
noted
3.3.3 An assessment of direct and indirect employment opportunities for all Volume 5, Section 14
groups associated with the Project including
a. projected maximum and minimum workforce demand by skill
categories in the construction and operating phases and an
analysis of how these demands shall be met
b. an analysis of the indirect and induced employment
generated by the project due to employment multiplier effects
c. a discussion of the employment and training arrangements
provided by applicant that would enable residents of the
region to participate in meeting the workforce demands
4.0 Environmental Impact Assessment Volumes 2 through 5
5.0 Biophysical Impact Assessment Volumes 2 through 4
6.0 Social Impact Assessment Volume 5
7.0 Describe the environmental protection plan including mitigation Volumes 2 through 5
measures, environmental monitoring and research
8.0 Conceptual Development and Reclamation Plan 8
9.0 Solid Waste Management Plan 6.4
Table A3-1 Final Terms of Reference Issued by Alberta Environment – Concordance (continued)
Table A3-1 Final Terms of Reference Issued by Alberta Environment – Concordance (continued)
Table A3-1 Final Terms of Reference Issued by Alberta Environment – Concordance (continued)
Table A3-1 Final Terms of Reference Issued by Alberta Environment – Concordance (continued)
Table A3-1 Final Terms of Reference Issued by Alberta Environment – Concordance (continued)
Table A3-1 Final Terms of Reference Issued by Alberta Environment – Concordance (continued)
Table A3-1 Final Terms of Reference Issued by Alberta Environment – Concordance (continued)
Table A3-1 Final Terms of Reference Issued by Alberta Environment – Concordance (continued)
Table A3-1 Final Terms of Reference Issued by Alberta Environment – Concordance (continued)
B1 ACRONYMS
3D Three-Dimensional
4D Four-Dimensional
7Q10 Seven-Day 10-Year Low Flow
AAAQO Alberta Ambient Air Quality Objectives
AAC Annual Allowable Cut
AADAC Alberta Alcohol and Drug Abuse Commission
AADT Average Annual Daily Traffic Counts
AAFC Agriculture and Agri Food Canada
AAQC Ambient Air Quality Criterion
ACB Alberta Cancer Board
ACD Alberta Community Development
ACFN Athabasca Chipewyan First Nation
ACGIH American Conference of Governmental Industrial Hygienists
ACS American Cancer Society
AED Alberta Economic Development
AENV Alberta Environment
AFRD Alberta Agriculture, Food and Rural Development
AGCC Alberta Ground Cover Classification
AGRASID Agricultural Region of Alberta Soil Inventory Database
AIC Agricultural Institute of Canada
AIHA American Industrial Hygiene Association
ALCRC Alberta Land Conservation and Reclamation Council
Al-Pac Alberta-Pacific Forest Industries Inc.
AMS Ambient Monitoring Station
ANC Acid Neutralizing Capacity
AOSC Athabasca Oil Sands Corporation
ARET Accelerated Reduction/Elimination of Toxics
ASIC Alberta Soil Information Centre
ASIR Age-Standardized Incidence Rate
ASMR Age-Standardized Mortality Rate
ASRD Alberta Sustainable Resource Development
ASWQG Alberta Surface Water Quality Guidelines
ATC Athabasca Tribal Council
AVI Alberta Vegetation Inventory
B2 GLOSSARY
Abiotic Non-living factors that influence an ecosystem, such as climate, geology
and soil characteristics.
Acid Anion Negatively charged ion that does not react with hydrogen ion in the pH
range of most natural waters.
Acid Cation Hydrogen ion or metal ion that can hydrolyze water to produce hydrogen
ions (e.g., ionic forms of aluminum, manganese and iron).
Acid Neutralizing The equivalent capacity of a solution to neutralize strong acids. Acid
Capacity Neutralizing Capacity can be calculated as the difference between non-
marine base cations and strong anions.
Admixing The dilution of topsoil with subsoil, spoil or waste material, with the result
that topsoil quality is reduced. Admixing can result in adverse changes in
topsoil texture, poor soil aggregation and structure, loss of organic matter
and decrease in friability.
Adsorption The surface retention of solid, liquid or gas particles by a solid or a liquid.
Alberta Vegetation A GIS mapping system and digital forest inventory. It includes tree
Inventory species, height, canopy closure, stand age, site conditions. and non-
commercial vegetated and nonvegetated cover types.
Aquiclude A low-permeability unit that forms either the upper or lower boundary of a
ground-water system.
Aquifer A permeable body of rock or soil that stores and transmits groundwater in
sufficient quantity to supply wells.
Aquitard A material of intermediate permeability between an aquifer and an
aquiclude. An aquitard allows some measure of leakage between the
aquifers it separates.
Basic Sound Level The allowable sound level at a residential location, as defined by the
current EUB Directive, with the inclusion of industrial presence based
upon dwelling unit density and proximity to transportation noise sources.
Biodiversity Ranking The relative contribution of an ecosite phase/wetlands type to the overall
biological diversity of an area.
Bog Ombrotrophic, acidic, peat-forming wetlands that receives its surface
moisture from precipitation. Characterized by a level, raised or sloping
peat surface with hollows and hummocks.
Canopy An overhanging cover, shelter or shade. The tallest layer of vegetation in
an area.
Cervid Of the family Cervidae, which includes elk, deer, moose and caribou.
Depositional habitat An aquatic environment where the bottom material consists of fine
sediments. It refers to portions of watercourses or waterbodies where
water movement is very slow allowing fine sediments that may be in
suspension to settle out and become deposited on the bottom.
Ecological Land A means of classifying landscapes by integrating landforms, soils and
Classification vegetation components in a hierarchical manner.
Ecoregion Ecological regions that have broad similarities with respect to soil, terrain
Potential Acid Input A composite measure of acidification determined from the relative
quantities of deposition from background and industrial emissions of
sulphur, nitrogen and base cations.
Propagules Root fragments, seeds, and other plant materials that can develop into a
plant under the right conditions.
Richness The number of species in a biological community (e.g., habitat).
Riffle A reach of stream that is characterized by shallow, fast-moving water
broken by the presence of rocks and boulders.
Riparian Refers to terrain, vegetation or simply a position next to or associated
with a stream, flood plain, or standing waterbody.
Run Habitat Areas of swiftly flowing water, without surface waves, that approximate
uniform flow and in which the slope of water surface is roughly parallel to
the overall gradient of the stream reach.
Swamp Forested, wooded or shrub-dominated non-peat-forming wetlands.
Transpiration Transpiration is the process by which water is transferred from soil and
plant surfaces to the atmosphere.
Understory Those trees or other vegetation in a forest stand below the main canopy
level.
Uplands Areas where the soil is not saturated for extended periods as indicated by
vegetation and soils.
Upset Conditions An acute time period within which usual conditions become highly
unfavourable; severity and duration may vary.
Vascular Plant Plants possessing conductive tissues (e.g., veins) for the transport of
water and food.
D1 CONSULTATION SUMMARY
The following Summary provides details related to consultation undertaken by Athabasca Oil
Sands Corp. in relation to its MacKay River SAGD Commercial Project. Groups and individuals
identified by name. There is also a Multi-Group Consultation Summary at the end of this
Summary.
Notification package Summary: Sent out MacKay River SAGD Commercial Terms of Reference notification
8 Apr 2009 package to ACFN IRC.
Team Members:
Jerry Demchuk
Sheri Pidhirney
Participants: Summary: Letter sent to Mr. Peace re: ACFN's participation in contributing to the TLU
Lisa King section of the MacKay River TLU section. Letter attached. Letter was copied to Ms.
Director of Industry Lisa King, Executive Director of the ACFN IRC.
Relations - Athabasca Stakeholder Comments: Jerry received a response via mail on approximately May 27,
Chipewyan First Nation 2009. ACFN requested a meeting to discuss the process.
Ian Peace Team Response: Follow up: Ken Shipley emailed Mr. Peace on May 19th requesting
Project Manager - his thoughts on the letter.
Athabasca Chipewyan First
Nation IRC On June 8th, AOSC offered to meet and provided possible dates of June 24th, 25th,
Team Members: or 26th.
Jerry Demchuk
Ken Shipley Outcome: Matter discussed a Sept. 1, 2009 meeting. AOSC provided Mr. Peace with
the follow up email and a copy of his letter to AOSC in September.
Ian Peace
Project Manager, Athabasca Chipewyan First Nation IRC
Email Summary: Dropped off TLU agreement and emailed electronic version of TLU
20 Aug 2009 agreement to ACFN (separate dates) - for review.
Team Members: Stakeholder Comments: Ian requested the marked up version from our lawyers to
Sheri Pidhirney send to ACFN lawyers – Sheri agreed to send by September 8th. Follow up meeting
scheduled with Ian Peace and Lisa King on September 2nd at 9a.m .in Calgary.
Meeting Summary: AOSC provided update on AOSC activities, ACFN’s involvement in the
1 Sep 2009 developing the TLU section of the MacKay River SAGD Commercial Application,
review of the Commercial Application. Note: Ms. King was a participant for a portion of
Team Members: this meeting.
Sheri Pidhirney
Project Updates:
Ken Shipley
Supplemental Information Requests (SIRs) for the Dover Pilot Project have been
submitted to regulators. There is one issue outstanding with another oil and gas
company.
The well pads associated with this project could become part of any commercial
project that may occur.
The MacKay Commercial Project will be 35,000 barrels a day of bitumen,
ultimately climbing to 150,000 barrels of oil a day.
Ian Peace
Project Manager, Athabasca Chipewyan First Nation IRC
The Terms of Reference for the Commercial Project have been finalized and the
plan is to have the Commercial Application filed by the end of 2009.
Two and half years of field data has been collected.
Comment: Lisa King stated ACFN wants ACFN members to be part of the data
collection – both Traditional Knowledge Holders and helpers.
Jerry Demchuk stated the first season of collecting baseline information on the Dover
North lease is underway so there is an opportunity to include knowledge holders and
helpers in that process.
Jerry explained that PetroChina has purchased 60% of the MacKay River and
Dover leases. AOSC is the operating company.
AOSC will be preparing a letter to First Nations explaining the PetroChina
relationship in more detail.
The Winter Exploration Programs on all leases will be 70-80 wells. OSEs have
not been submitted.
IRC Funding:
The IRC requested a response to the August 31, 2009 letter regarding the IRC funding
requirements.
Action: Jerry will review this request and respond by the end of the week. Request
subsequently met.
Discussed were two options for ACFN involvement in providing its traditional
knowledge in the MacKay River Application:
1. Prior to Application Filing
2. Post Application Filing
The last day to include the information in the Application would be the first week of
November. Ian felt the knowledge sharing and assessment could not be complete by
ACFN until the third quarter of 2010. This would allow the information to be included in
the SIRs.
Ian Peace
Project Manager, Athabasca Chipewyan First Nation IRC
define ACFN’s involvement “on the land” going forward.
Action: If the above approach is desired, the parties will seek existing government
funding.
ACFN expressed an interest in conducting joint core hole assessments using traditional
knowledge for this year’s winter work program.
ACFN needs to understand the spatial impacts of the Dover North Winter Work
Program.
Action: AOSC to get the spatial impacts from Matrix and forward to Ian.
Action: AOSC to discuss this matter with its field personnel.
Action: Sheri to send Ian Shape Files for this year’s Winter Exploration Program.
Action: AOSC to provide Ian with status of baseline work on the MacKay lease.
ACFN uses Petr Komers and is willing to share his Technical Review of the
Application with other First Nations.
Action: The IRC will establish a community engagement process AOSC can
use that will include getting advice from the community on the impacts of the
project and a process for validating those impacts. This cannot occur until
after the technical review is complete.
ACFN has identified a cultural training program that will cost $65,000. There
was a discussion without decision that AOSC could fund all or part of this
program.
Traditional Land Use Summary: Sent note in the Team Response to Mr. Peace as he requested on Sept. 1,
10 Sep 2009 2009. It is the response to ACFN letter of May 19 re: ACFN's involvement in the TLU
Team Members: and TEK section of the MacKay Commercial Project.
Ken Shipley Team Response: "We received a mailed copy of your letter dated May 19th. (No faxed
copies were received.) Jerry Demchuk asked me to respond. We would welcome a
meeting with you to discuss the points in your letter. I am in Fort McMurray on June
24th, June 25th and 26th. I arrive at 3:15 p.m. on the 24th and can rearrange my
schedule on any of these three days to have a meeting with ACFN."
Traditional Land Use Summary: Sent marked up version of TEK Agreement to Mr. Peace including Petro-
14 Sep 2009 China Partnership public notice as he requested on Sept. 1, 2009.
Team Members: Team Response: Revised TEK agreement attached for Mr. Peace's review.
Sheri Pidhirney
Attachments:
- aosc_2009_tk_agreement-acfn.doc
Email Summary: AOSC agreed to increased annual membership fee for 2009-10.
14 Sep 2009 Stakeholder Comments: Thank you for recognizing our need for additional funding.
Team Members: Team Response: Hi Ian,
Ian Peace
Project Manager, Athabasca Chipewyan First Nation IRC
Sheri Pidhirney As per your request per our meeting a couple of weeks ago, AOSC has agreed to the
increase in our membership fee at the rates put forward by ACFN.
For your convenience Darryl Bell, Allnorth Director of Corporate Development and
David Castley, Allnorth Fort McMurray Division Manager, are cc’d.
For development work in the oilsands region, I encourage you to consider ACFN
Allnorth.
If you have any questions about the new Joint Venture please contact Bryn Botham,
ACFN Business Group Chief Financial Officer.
Email Summary: AOSC followed up on status of TLU and Consultation Agreements, draft
13 Nov 2009 meeting notes and proposal for TLU training from ACFN who have these items to
Team Members: consider.
Ken Shipley
Notification package Summary: Sent out MacKay River SAGD Commercial Terms of Reference notification
8 Apr 2009 package to CPDFN IRC.
Team Members:
Jerry Demchuk
Sheri Pidhirney
Traditional Land Use Summary: AOSC met with Mr. Fraser to discuss the Metis' traditional use of the
24 Jul 2009 MacKay River Lease area and identify potential impact and mitigation measures as
required. Stakeholder Comments are a summary of the interview only.
Stakeholder Comments: Mr. Fraser's grandfather and great-grandfather transported
furs to Fort Chipewyan up the Athabasca River. The Metis hunted in the Fort
Chipewyan area and along the Athabasca River. After the fur trade ended (Mr. Fraser,
who is 71 years old was not involved in the fur trade) the Metis hunted, fished and
gathered in the Fort Chipewyan area. Mr. Fraser believes the Bennett Dam has
caused the environmental impacts on Fort Chipewyan. He does not believe the
MacKay River SAGD Project will have an impact on the Metis people of Fort
Chipewyan but states that industry must understand its cumulative affects and
mitigate any impacts.
Team Response: Mr. Fraser's input will be included in the TLU section of the MacKay
River Application.
Fort McKay (Fort McKay First Nation and Fort McKay IRC)
Marie Lagimodiere
Fort McKay IRC
Email Summary: AOSC followed up with Ms. Lagimodiere to determine if the Company was
1 Oct 2009 meeting with David Spink the week of Oct. 9 to discuss the air matrix to understand
Team Members: Fort McKay information requirements for the MacKay River SAGD Commercial
Jerry Demchuk Project. This was an action out of a meeting with Lisa Schaldemose on Sept. 17th.
Team Response: Ms. Lagimodiere will check on Mr. Spink's availability.
Outcome: Air quality modeling assessment approach and methodology approach was
discussed. Parties agreed approach was appropriate for the Project.
Zachery Powder
Trapper, Fort McKay First Nation
Traditional Land Use Summary: AOSC met with Mr. Powder to discuss his traditional knowledge about the
26 May 2009 MacKay River Lease and potential impacts of the SAGD project on his trapline. Note:
Team Members: other Fort McKay knowledge holders present who do not hold RFMAs on the MacKay
Ken Shipley Lease were Edward Rolland and Maurice McDonald.
Stakeholder Comments: Mr. Powder uses the area for trapping and hunting. His
concerns about development on his trapline are:
Loss of trees, air pollution, loss of wildlife in the area, changing creek routes, loss of
beavers, and cutlines take away food from the moose, loss of traditional trails, Traffic
brings other people into the territory to hunt.
Talk to trappers before we do the work. Maybe they can trap the beaver.
Let us know what you are doing before you do it
Do not roll back everything – work with government so you don’t have to
Mr. Powder is also concerned that AOSC built a camp on his line and did not tell him
or compensate him.
Team Response: AOSC will meet with Mr. Powder before any work is done on his line
this coming winter.
Lisa Schaldemose
Executive Director, Fort McKay IRC
Notification package Summary: Sent out MacKay River SAGD Commercial Terms of Reference notification
8 Apr 2009 package to Fort McKay FN IRC.
Team Members:
Jerry Demchuk
Sheri Pidhirney
Meeting Summary: Regular meeting with Fort McKay IRC.
15 Apr 2009 Stakeholder Comments: Lisa indicated that a Chief and Council Meeting were held
Team Members: the previous Thursday and Fort McKay at the meeting Mike Orr indicated that AOSC
Sheri Pidhirney had not consulted with him on their projects. Lisa called and left a message for Sheri
to respond.
Lisa also indicated that David Bouchier was concerned that there was drilling activity
between Moose Lake and Buffalo Lake – was the activity from AOSC?
Upcoming meeting in Kelowna was discussed (April 21st meeting) – Lisa suggested
we give Chief Jim Boucher a brief description of our plans for Dover and MacKay
River leases.
Team Response: AOSC responded with a report on several meetings we have had
with Mike and Marlene over the last 6 months.
Our response was no - the activity between Moose Lake and Buffalo Lake was not
AOSC activity.
Follow-up:
- Determine location for next meeting on June 18th.
- Forward notes from meetings with Mike Orr to Lisa Schaldemose
- Book travel and registration for PBLI conference in Ottawa.
Outcomes:
- Agreed to forward meeting notes with Mike Orr.
Phone call Summary: Discussion regarding incorporating Fort McKay Specific Assessment into
21 Apr 2009 the MacKay River SAGD Commercial Application.
Team Members: Team Response: Follow up: AOSC to sign a confidentiality agreement prior to
Jerry Demchuk receiving and reviewing the Fort McKay Specific Assessment.
Sheri Pidhirney
Ken Shipley
Lisa Schaldemose
Executive Director, Fort McKay IRC
Letter Summary: Ms. Schaldemose provided with letter offering to have Fort McKay
29 Apr 2009 participation in the TLU section of the MacKay River SAGD Commercial Project.
Team Members: Stakeholder Comments & Follow up: On May 25th Ms. Schaldemose via email gave
Jerry Demchuk go ahead for AOSC and Fort McKay to work together on the TLU section with the
Ken Shipley proviso that the traditional land users group choose who is to be involved in the fly-
over and that Fort McKay will choose the traditional land owners.
Team Response & Follow up: Ken Shipley emailed Ms. Schaldemose on May 19 to
follow up on the letter.
Outcome: Ken Shipley met with Dan Stuckless of the Fort McKay IRC to initiate the
project. Tentative meeting with Mr. Stuckless and Fort McKay traditional landowners
set for June 18th, 2009.
Dan Stuckless
Fort McKay IRC
Meeting Summary: Meeting to initiate TLU work for the MacKay River SAGD Commercial
29 May 2009 Project.
Fort McMurray Stakeholder Comments: Follow up: Mr. Stuckless will contact Ann Garibaldi on
Team Members: Monday June 1 to bring her up to speed on the project and to get her input.
Ken Shipley
He will let me know on May 29 which traditional land users he has identified to
participate in the project.
Phone call Summary: Follow up to organize fly over of MacKay River Lease with Traditional Land
29 Jul 2009 Users in Fort McKay.
Team Members: Stakeholder Comments: - Will determine availability of traditional land users for
Ken Shipley August 18th for flyover.
Also concern raised by Mr. Powder about the need to consult with AOSC on the camp
on his trapline.
Team Response& Follow up:
Ken Shipley will confirm August 18th as the flyover date.
Ken has forwarded Mr. Powder's concern to Sheri Pidhirney but also indicated he is
not aware of any camp on his trapline.
Participants: Summary: Email to Ms. Schaldemose outlining the company's project submissions to
Michael Orr regulators to date.
Trapper & Councillor - Fort Stakeholder Comments: Mike Orr requested an outline of projects submitted to the
McKay First Nation regulators by AOSC and to be sent to Ms. Schaldemose.
Lisa Schaldemose
Executive Director - Fort Team Response: Timelines referenced above provided.
McKay IRC
Team Members: AOSC Project Plans:
Sheri Pidhirney 1. Dover Central Pilot - filed June 2, 2008
1st round of SIRs completed and submitted
2nd round of SIRs being completed
Anticipated approval - June 2009
Participants: Summary: Traditional Land Use Meeting for TLU section of Commercial SAGD
Zachery Powder Project.
Trapper - Fort McKay First Stakeholder Comments:
Nation Loss of trees
Dan Stuckless Pollution
Fort McKay IRC Chase animals away
Edward Rolland Change creek routes
Trapper – Fort McKay First Ground water disturbance
Nation Loss of beavers
Cutlines take away food from the moose
Loss of traditional trails
Maurice McDonald
Traffic brings other people into the territory to hunt
Trapper-Fort McKay First
Nation Potential Mitigation recommended by Trappers:
Team Members: Talk to trappers before we do the work. Maybe they can trap the beaver.
Let us know what you are doing before you do it
Ken Shipley Do not roll back everything – work with government so you don’t have to
History:
Zachery’s trapline used to belong to Alphonse Powder
Sites:
AOSC needs to GPS Zachery’s cabin - may not be on the AOSC lease
Maurice has a cabin near a one-lane bridge – the map I had did not show the
bridge and we couldn’t find it – not likely on AOSC lease – may find during
flyover
There are no known gathering sites on or around the lease. Camp sites were
along the Athabasca River from Fort McMurray to Fort McKay
There are no known grave sites on the lease
Cree/Dene Names:
Only one offered was that the McKay River is called “Red River” by Fort
McKay people
Activities:
Zachery only traps on line. He does not carry out other traditional activities
Edward has not hunted in the general area for about 15 years. Use to hunt
moose and camp
Zachery and Edward said there is not very good fishing in the area of the
lease. Maybe there some pickerel and jackfish.
Amount of fur harvest not available from trappers
Trapping consist of martens, lynx, beaver. There are more beavers than
before
Participants: Summary: AOSC provided Mr. Powder with a fly over of his trapline to identify any
Zachery Powder important sites on his line. AOSC also consulted with Mr. Powder and Mr. Stuckless
Trapper - Fort McKay First on the MacKay River road.
Nation Stakeholder Comments: Mr. Powder said AOSC was supposed to leave wood for him
Dan Stuckless last winter at his cabin and did not. He does not believe he received a compensation
Fort McKay IRC cheque from AOSC last year. Also believes AOSC built a camp near Willow Creek
and he was not compensated for it.
Team Members:
Sheri Pidhirney Mr. Powder had no issues at that time with the road. However, Mr. Stuckless
Ken Shipley requested our application to DFO for review.
Team Response: Sheri will track down the cancelled cheque she provided to Mr.
Powder in November. Cheque was given to the IRC who in return provided it to Lucy
Richer, Mr. Powder’s daughter.
The route of road was shared with Mr. Stuckless and Mr. Powder.
Ken will follow up to determine the company that owned the camp. AOSC to provide
Mr. Stuckless with the GPS points of the camp location that Mr. Powder believes was
AOSC's camp. Mr. Stuckless is going to use the points and the rough map AOSC sent
him showing the location of the campsite in his discussion with SRD to determine
whose site this is. The GPS points put the campsite east of AOSC leases.
Notification package Summary: Sent out MacKay River SAGD Commercial Terms of Reference notification
8 Apr 2009 package to FMFN #468 IRC.
Team Members:
Jerry Demchuk
Sheri Pidhirney
Doreen Somers
Executive Director, Fort McMurray #468 First Nation IRC
Letter Summary: Sent a letter offering Fort McMurray #468 First Nation participation in the
28 Apr 2009 TLU section of the MacKay River SAGD Commercial Project.
Team Members: Stakeholder Comments: No response to date.
Jerry Demchuk Team Response: Ken emailed Ms. Somers on May 19 and re-sent the letter to follow
Ken Shipley up.
Meeting Summary: Meeting held to review Winter Work Programs on MacKay and Dover
29 Oct 2009 leases and the MacKay River SAGD Commercial Project production, timing of
Team Members: Application and discuss future consultation.
Sheri Pidhirney Stakeholder Comments: Ms. Somers reported on the First Nations main priority being
Ken Shipley that of a multi-use community centre.
Follow up: Ms. Somers is investigating the possibility of sharing the consultants for
technical reviews with other First Nations.
Ms. Somers did not think we needed to host an Open House in the community, as the
FN does not have the facilities to host an open house. However, she would like to
opportunity for the Fort McMurray FN members to attend the Fort McMurray Open
House.
Team Response: Outcomes: AOSC will join the Fort McMurray #468 First Nation.
Funding and non-producers membership agreement will be in effect until March 31,
2009. Ms. Somers will send an invoice for the total amount owed.
The parties will discuss the technical review i.e., scope, cost and consultants being
used at a later date.
Parties will also discuss in more detail transportation of First Nation members to Fort
McMurray for an open house related to the Commercial Project.
Notification package Summary: Sent MacKay River SAGD Commercial Terms of Reference notification
8 Apr 2009 package to Metis Local 1935.
Team Members: Team Response & Outcome:
Jerry Demchuk See May 21st meeting with Mr. Dragon et al.
Sheri Pidhirney
Dick Dragon
President, Metis Local #1935
Letter Summary: Letter mailed offering to include participation of traditional land users from
28 Apr 2009 Local #1935 in the TLU section of the MacKay River SAGD Commercial Project.
Team Members: Stakeholder Comments:
Jerry Demchuk Follow up: at a meeting on May 21, Mr. Dragon informed Ken Shipley and Sheri
Ken Shipley Pidhirney that he had not seen the TLU letter of invitation. Mr. Dragon also indicated
the Local would not be making decisions on various matters until a new General
Manager was in place. This position was vacant as of May 21. In a subsequent
discussion with the new General Manager, it was decided that AOSC would seek Mr.
Gary Pliska’s permission to share the TLU information he provided with the Local to
inform their Mark of the Metis Project.
Team Response: Follow up: Ken Shipley faxed letter to Dana at the Metis Local office
as requested on or about May 22.
May-Britt Jahelka
General Manager, Fort McMurray Metis Local #1935
Meeting Summary: AOSC provided an overview of the company and its activities, the invitation
8 Oct 2009 to participate in providing input into the TLU section of the MacKay River SAGD
Team Members: Commercial Application. The Local outlined their priorities as: Land acquisition,
Rupert Kelly revisiting the cultural centre initiative, increasing the size of the annual golf
Sheri Pidhirney tournament, moving the relationship with AOSC forward.
Ken Shipley Stakeholder Comments: Local priorities are Land acquisition, review cultural centre,
increase size of yearly golf tournament and complete Mark of the Metis Project.
Team Response & Follow up: Share information about Gary Pliska’s trapline with the
Local for the Mark of the Metis project.
The parties will develop a joint work plan leading to an MOU for 2010, and including
setting up an Elders’ committee, AOSC’s participation in the Local’s priorities.
Sheri to do a summary of AOSC-Local relationship to date and a first draft of the work
plan.
Rupert to provide names of acronyms shown on the Dover and MacKay maps.
AOSC will provide the Local with a half-day course on “Regulatory Affairs 101”.
Participants: Summary: Meeting was to provide Metis Local #1935 with an update on AOSC plans
Dick Dragon and discuss status of Local #1935 matters.
President - Metis Local Stakeholder Comments: Mr. Dragon did not receive letter offering Metis Local 1935
#1935 participation in the TLU section of the MacKay River SAGD Commercial Project.
Dana Patterson-Lacorde
Executive Assistant - Metis All activities with industry are on hold until the appointment of a new General
Local #1935 Manager.
Ryan Pruden There are elections for the Local's Board of Directors this summer but no date set for
Owner - Wapoose Medial Annual General Meeting.
Services Team Response: Follow up: Ken Shipley to fax TLU letter to Ms. Patterson-Lacorde.
Team Members: This action was complete on or about May 22.
Sheri Pidhirney
Ken Shipley Sheri informed the group that we might not be proceeding with the Dover Pilot Plant;
that we plan to file an application for a Commercial SAGD Project on the MacKay
River lease by year's end and provided general locations of the leases.
Sheri made a commitment for AOSC to be involved in the Local's golf tournament.
Notification package Summary: Sent out MacKay River SAGD Commercial Terms of Reference notification
8 Apr 2009 package to MCFN GIR.
Team Members:
Jerry Demchuk
Sheri Pidhirney
Participants: Summary: Meeting re: MCFN interim agreement, Traditional Land Use Assessment for
Melody Lepine MacKay River SAGD Application, Open House for MacKay River Commercial
Executive Director - Application, Christmas Parties, and MacKay River Pilot Project.
Mikisew Cree First Nation Stakeholder Comments & Actions:
GIR Ms. Lepine to send an invoice for AOSC’s membership in the GIR for 2009.
Cathleen O'Brien
Regulatory Affairs Ms. Lepine to provide AOSC with a set of questions GIR typically asks in their reviews
Coordinator - Mikisew Cree so they may be considered for the MacKay SAGD Project.
First Nation Government
and Industry Relations In the Spring of 2010, MCFN will identify people who are familiar with the MacKay
River Lease hand have them work with AOSC to identify gaps in the TLU section of
Team Members: the Commercial Application. MCFN noted that it has its own TLU assessment
Jerry Demchuk process. At the August 18 meeting, they described this process. MCFN will provide
Sheri Pidhirney AOSC with a scope of work and cost for following this process at the appropriate time.
Ken Shipley
Team Response: The process and protocol for conducting an open house with MCFN
members were discussed. No follow up required at this time.
Action:
AOSC to provide MCFN with comments on the interim agreement.
AOSC will respond in writing to MCFN’s technical review of the MacKay River Pilot
Project.
Gary Pliska, Trapper
Meeting Merged Event
9 Oct 2009
Participants: Summary: AOSC provided Mr. Pliska with update on company developments,
Gary Pliska suspension of the pilot projects and related roadwork, explanation of the winter work
Trapper - programs and an overview of the Commercial Project. Mr. Pliska was represented at
the meeting by Mr. Tony Punko.
Tony Punko
Executive Director - Wood Stakeholder Comments: Will there be any clearing this winter for the road?
Buffalo Metis Corp
Mr. Pliska asked if Mr. Punko could be compensated for his time in representing him
Team Members: at this meeting. Mr. Punko will send an invoice and his rates to Ken Shipley.
Rupert Kelly
Sheri Pidhirney
Ken Shipley Team Response: Discussion involved the potential need for Mr. Pliska to move his
cabin due to overall development on his line; potential business opportunities for Mr.
Pliska due to overall activities.
Commitments:
Sheri committed to approach Mr. Pliska first for security work.
Rupert committed to assist him with paperwork that may be required to support
potential business opportunities.
Sheri committed to increase compensation paid by using the new Fort McKay Matrix
should it be established during this winter drilling season.
AOSC will take the matter of compensation for Mr. Punko under advisement.
Notification package Summary: Sent out MacKay River SAGD Commercial Terms of Reference notification
8 Apr 2009 package to WBMC
Team Members:
Jerry Demchuk
Sheri Pidhirney
Site visit Summary: Matrix Solutions met with Mr. Wright to inform the TLU Section of the SAGD
18 Nov 2009 Commercial Application. He did not have any specific information that would relate to
the TEK work other than the trapping in the area is for marten, weasel and lynx.
Multi-Group Consultation
Notification package Merged Event
6 Mar 2009
Participants: Summary: Sent out application summary table of MacKay River SAGD Commercial
Brenda Blake Project to First Nations and Metis stakeholders.
General Manager - Metis
Local #1935
Fred (Jumbo) Fraser
President - Metis Local
#125
Shaun Janvier
Executive Director -
Chipewyan Prairie Dene
First Nation
Lisa King
Director of Industry
Relations - Athabasca
Chipewyan First Nation
Melody Lepine
Executive Director -
Mikisew Cree First Nation
GIR
Tony Punko
Executive Director - Wood
Buffalo Metis Corp
Ron Quintal
President - Metis Local
#63, Fort McKay
Lisa Schaldemose
Executive Director - Fort
McKay IRC
Doreen Somers
Executive Director - Fort
McMurray #468 First
Nation IRC
Team Members:
Jerry Demchuk
Participants: Summary: Participants provided with MacKay River SAGD Commercial Project First
Shaun Janvier Nation Consultation Plan.
Executive Director -
Chipewyan Prairie Dene
First Nation
Lisa King
Director of Industry
Relations - Athabasca
Chipewyan First Nation
Melody Lepine
Executive Director -
Mikisew Cree First Nation
GIR
Lisa Schaldemose
Executive Director - Fort
McKay IRC
Doreen Somers
Executive Director - Fort
McMurray #468 First
Nation IRC
Team Members:
Jerry Demchuk