Atco Salt Cavern Storage Expansion Project

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Atco Salt Cavern Storage Expansion Project ATCO SALT CAVERN STORAGE EXPANSION PROJECT Impact Assessment Agency of Canada Initial Project Description January 13, 2021 INITIAL PROJECT DESCRIPTION ATCO SALT CAVERN STORAGE EXPANSION PROJECT CONTENTS INTRODUCTION ................................................................................................................................................ 1 PART A: GENERAL INFORMATION .................................................................................................................... 1 THE PROJECT’S NAME, TYPE OR SECTOR AND PROPOSED LOCATION .................................................. 1 PROPONENTS NAME AND CONTACT INFORMATION ............................................................................ 3 ENGAGEMENT WITH JURISDICTIONS OR AGENCIES ............................................................................. 3 ENGAGEMENT WITH INDIGENOUS GROUPS ........................................................................................ 5 REGIONAL ASSESSMENTS AND RELEVANT ENVIRONMENTAL STUDIES ................................................ 8 STRATEGIC ASSESSMENTS ..................................................................................................................... 9 PART B: PROJECT INFORMATION .................................................................................................................... 10 PROJECT PURPOSE AND NEED ............................................................................................................ 10 PHYSICAL ACTIVITIES REGULATION ..................................................................................................... 10 PROJECT ACTIVITIES AND PHYSICAL WORKS ...................................................................................... 11 9.1 New Infrastructure Associated with the Project ................................................................................................ 16 9.2 Existing Facilities ................................................................................................................................................. 17 9.3 Third Party Infrastructure ................................................................................................................................... 18 9.4 Description of Project Activities ......................................................................................................................... 18 9.5 Background: Underground Cavern Development and Operation ...................................................................... 21 ESTIMATED MAXIMUM PROJECT CAPACITY ....................................................................................... 23 PROJECT SCHEDULE ............................................................................................................................ 23 PROJECT ALTERNATIVES ...................................................................................................................... 24 PART C: LOCATION INFORMATION AND CONTEXT ......................................................................................... 26 GEOGRAPHIC INFORMATION .............................................................................................................. 26 PHYSICAL ENVIRONMENT ................................................................................................................... 31 INITIAL PROJECT DESCRIPTION ATCO SALT CAVERN STORAGE EXPANSION PROJECT HEALTH, SOCIAL AND ECONOMIC CONTEXT ....................................................................................... 35 PART D: FEDERAL, PROVINCIAL, TERRITORIAL, INDIGENOUS AND MUNICIPAL INVOLVEMENT AND EFFECTS39 FINANCIAL SUPPORT FROM FEDERAL AUTHORITIES .......................................................................... 39 USE OF FEDERAL LANDS FOR PROJECT ............................................................................................... 39 JURISDICTIONS THAT HAVE POWERS, DUTIES OR FUNCTIONS IN RELATION TO AN ASSESSMENT OF THE PROJECT’S ENVIRONMENTAL EFFECTS. .......................................................................................................... 39 PART E: POTENTIAL EFFECTS OF THE PROJECT ............................................................................................... 41 POTENTIAL EFFECTS ON FISH AND FISH HABITAT, AQUATIC SPECIES AND MIGRATORY BIRDS .......... 41 POTENTIAL EXTRA-PROVINCIAL AND FEDERAL IMPACTS ................................................................... 46 IMPACTS TO INDIGENOUS GROUPS INCLUDING TRADITIONAL LAND USE, PHYSICAL AND CULTURAL HERITAGE, AND HISTORICAL, ARCHAEOLOGICAL AND PALAEONTOLOGICAL RESOURCES ............................ 47 IMPACTS TO INDIGENOUS HEALTH, SOCIAL, AND ECONOMIC CONDITIONS ..................................... 48 GREENHOUSE GAS EMISSIONS ASSOCIATED WITH THE PROJECT ...................................................... 50 WASTE AND EMISSIONS GENERATED BY THE PROJECT ...................................................................... 52 REFERENCES ................................................................................................................................................... 55 INITIAL PROJECT DESCRIPTION ATCO SALT CAVERN STORAGE EXPANSION PROJECT TABLES Table 1: Jurisdictions, Agencies and Non-Indigenous Stakeholders Engaged or to be Engaged during the Initial Planning Phase .................................................................................................................................................................................... 4 Table 2: Indigenous Groups and Proximity to the Proposed Project .................................................................................... 6 Table 3: Components of Proposed Development ............................................................................................................... 15 Table 4: Project Schedule ................................................................................................................................................... 24 Table 5: Regional Temperature Extremes and Averages, 1981 - 2010................................................................................ 32 Table 6: Regional Precipitation Extremes and Averages, 1981 - 2010 ................................................................................ 32 Table 7: Solid Wastes Generated by the Project ................................................................................................................. 52 FIGURES Figure 1: Project Location ..................................................................................................................................................... 2 Figure 2: Project Site .......................................................................................................................................................... 12 Figure 3: Project Site Layout ............................................................................................................................................... 13 Figure 4: Location of ATCO Lands and Salt Rights............................................................................................................... 14 Figure 5: Solution Mining Process (not to scale) ................................................................................................................ 21 Figure 6: Cavern Development and Operation ................................................................................................................... 22 Figure 7: First Nations and Local Communities .................................................................................................................. 28 Figure 8: Energy Infrastructure, Occupied Residences and Archaeological Sites ............................................................... 29 Figure 9: Environmentally Sensitive Areas, Federal Lands, and Airports ........................................................................... 30 APPENDICES Appendix A - Land titles ..................................................................................................................................................... 61 Appendix B - ATCO Salt Cavern Storage Expansion Project Greenhouse Gas Technical Data Report ................................. 62 ATCO SALT CAVERN STORAGE EXPANSION PROJECT INTRODUCTION ATCO Energy Solutions Ltd. (AES; ATCO Energy Solutions), a fully owned subsidiary of ATCO Ltd. (ATCO), is pleased to submit this Project Description of the ATCO Salt Cavern Storage Expansion Project (the proposed Project; the Project). AES is part of the ATCO Group of Companies, a collection of energy, technology, utility and structures and logistics companies belonging to the broader ATCO Group. This Project Description has been prepared in accordance with the Impact Assessment Agency of Canada (IAA) Information and Management of Time Limits Regulations, Schedule 1, the Strategic Assessment of Climate Change, and the Impact Assessment Act Guide to Preparing an Initial Project Description and a Detailed Project Description. PART A: GENERAL INFORMATION THE PROJECT’S NAME, TYPE OR SECTOR AND PROPOSED LOCATION ATCO Energy Solutions owns and operates the Strathcona Salt Cavern Storage Facility at SW 34-55-21-W4M in the Alberta Industrial Heartland (AIH). This existing facility consists of four natural gas liquids (NGL) storage caverns, each with a capacity of approximately 100,000 m3. and containing propane, butane or ethylene. These caverns serve industrial customers in the
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