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IndustryOilsands7TuesdayAugust132013DoveroilsandsprojectapprovedwithoutbufferRegulatorsaysSAGDprojectwontimpactFortMcKayreserveByMEAGANWOHLBERGTheAlbertaEnergyReg-ulatorAERsignedofflastTuesdayonAthabascaOilCorp.sDoveroilsandsprojectwith10conditionsbypass-ingrequestsfromthenearbyFirstNationforabufferzone.TheapprovalgivesthegreenlighttoBrionEn-ergyCorp.formerlyDoverOperatingCorp.tobeginconstructionofthesteam-assistedgravitydrainageSAGDprojectabout100kmnorthwestofFortMcMurray.TheFortMcKayFirstNa-tionexpressedconcernabouttheprojectsimpactsonitstraditionallanduseactivi-tiesintheMooseLakere-serveareaadjacenttothesiterequestinga20-kmde-velopment-freebufferzonebeestablishedbetweentheprojectandtwolakesusedforculturalactivities.ButtheregulatordecidedtheprojectwouldnothaveadirecteffectontheFirstNa-tionstraditionalterritorystatinginits40-pagereportthattherewouldbelittleifanyimpactsontheMooseNamurLakeareaandthatthecosttothecompanyofestablishingabufferzonewouldbeunacceptable.Theadverseimpactontheprojectisnotacceptablegiventhebenetsthatwouldaccruefromdevelopingallofthereservesthereportstates.ThePanelthereforendsthattheeconomicimpactsontheprovinceandregionalmunicipalityofestablishingabufferaresignicantandwouldnotbeinthepublicinterest.DayleHydecommu-nicationsdirectorfortheFortMcKayFirstNationsaidthedecisionwasdisappointing.Thereasonweaskedfora20-kmbufferareaalongwithenvironmentalbestpracticeswasbecausewehadanen-vironmentalconsultantdoamodelandthroughthatmodelitwasdeterminedthosemiti-gationswouldhelpusprotectthemooseandcariboupopu-lationsshesaid.Soitsnotjustaboutnodevelopmentaroundtheresidencesitwasalsoaboutprotectingtheenvi-ronmentandwereobvi-ouslyreallydisappointedtheregulatordidnttakethatintoconsideration.DespitethedecisionHydesaidtheFirstNationremainshopefulthereisstilltimetogetmoreprotectionforthereserveareawhichislocated2kmfromonewellpadand8kmfromanother.Wehave30daystoleanappealandwerealsocallingonthegovernmentofAlbertatoconsultwithusbeforethecabinetapprovestheproject.Therearestilltwomorepro-cessestheprojecthastogothroughbeforeitsnalshesaid.Werestillhopefulthatsomekindofsolutioncanbefoundtoprotecttheareaandwereopentodiscussingtheoptions.Brionwillberequiredtodoprogressivereclamationoflanddisturbedbybitumenextraction.Otherconditionsincludetheimplementationofaleakdetectionandrepairsystemmethodsforreducinghydrocarbonemissionsandmonitoringodourindicatorspecies.TheproponentmustalsosubmitaplantoAERtomitigatesulfur-dioxideemissions.Athabascaholdsa40percentstakeinDoverhavingsold60percentofitsinterestintheprojecttoPetroChinain2009.PetroChinawillhavetheop-tionofbuyingoutAthabascasremaining1.32-billionstakeintheprojectwithinthenextmonthasitdidforAthabascasMacKayRiveroilsandsproj-ectlastyearfor680million.TheDoversitecontainsreservesof4.1billionbarrelsata50percentrecoveryrateaccordingtotheAER.TheSAGDbitumenrecoveryprocessinjectshigh-pressurizedsteamintoundergroundhori-zontalwellstoheattheoilandreduceitsviscosity.Theheatedbitumenisthendrainedintoasecondwellborewhereitispumpedout.PhotoBrionEnergyTheDoveroilsandsprojectwillusesteam-assistedgravitydrainagetechnologytoextractbitumenfromitssite100kmnorthwestofFortMcMurray.BitumenreleaseinColdLakeongoingregulatorByRENEFRANCOEURBitumeniscontinuingtooozetothesurfaceinfourseparatelocationsintheborealforestareaaroundColdLakeAlta.monthsaftertherstleakfromanun-dergroundoilsandswellwasreportedtheAlbertaEnergyRegulatorAERsaidonFriday.CanadianNaturalResourcesLtd.CNRLthecompanyrunningtheinsituPrimroseandWolfLakesitewherethereleasesareoccurringsaidtheincidentisundercontrolandcleanupeffortshavebegun.Eachlocationhasbeense-curedandcleanuprecoveryandreclamationactivitiesarewellunderwaystatedacom-panypressreleaseonJuly31.Thebitumenemulsiondoesnotposearisktohealthorhumansafety.Bitumenemulsionwasfoundcoveringanareaofabout20.7hectares.Therstleakwasre-portedinMaythefourthonJune24andasofJuly316300barrelsofbitumenemulsionhadbeencollected.AccordingtoCNRLtherateofbitumenemulsionseepageinallfourlocationshasdeclinedandtotalslessthan20barrelsaday.Groundwatermonitor-ingactivitiesareunderwayaswellasaquaticandsedimentsamplingtodetermineimpacts.CNRLreportsthat16birdshavediedasaresultoftheleaksaswellassevensmallmammalsand38amphibians.Twobeaverstwobirdsandtwomuskratsarecurrentlybeingcaredforascleanupcontin-ues.Fencinghasbeenputuptodeterfurtherwildlifefromenteringthearea.TheColdLakeFirstNationwhosetraditionalterritoryintheColdLakeAirWeaponsRangehasbeendirectlyaffectedareextremelyconcernedabouttheincident.ThereisnowaytocalculatethedamageinicteduponusbythislatestblowoutColdLakeFirstNationcouncilmem-berCecilJanviersaidinapressreleaselastweek.ColdLakeFirstNationswillcontinuetotakealllegallyavail-ablemeasurestoprotectourlandsandwildlife.Speciesareatriskandthisoilspillisfur-therendangeringthewoodlandcaribouandadverselyaffect-ingotheranimals...importanttoourDenepeoples.TheDeneofBuffaloRiverhavealsovoicedconcerncall-ingonPrimeMinisterStephenHarpertointerveneintheoilspillandforcethedisclosureofallinformationtothepublicabouttheexactspilllocationsandcleanupefforts.AERsaidithasbeenwork-ingwiththecompanytogetthereleasesundercontrolandun-derstandhowtheyhappenedintherstplace.TheAERsformalinvesti-gationintothecauseoftheseincidentsisactivelyunderway.Wedonotcurrentlyhavetheevi-denceordatatosupportanycon-clusionsAERCEOJimEllissaidinanAug.2pressrelease.CNRLbelievesthecauseoftheleaksisrelatedtome-chanicalfailuresofwellbores.Allsteamingoperationsaprocessusedtoextracttheoilhavebeensuspendedatthesiteandwillremainsountiltheregulatorissatisedmeasuresareinplacetopreventsimilarfutureoccurrences.AsimilarblowoutoccurredwithCNRLin2009whichthecompanyblamesonthefailureoftheintegrityofoneofitswells.EnvironmentOilSpill