Decision 25113-D01-2020
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Decision 25113-D01-2020 CNOOC Petroleum North America ULC Corporate Name Change and Time Extension January 30, 2020 Alberta Utilities Commission Decision 25113-D01-2020 CNOOC Petroleum North America ULC Corporate Name Change and Time Extension Proceeding 25113 Applications 25113-A001 to 25113-A019 January 30, 2020 Published by the: Alberta Utilities Commission Eau Claire Tower 1400, 600 Third Avenue S.W. Calgary, Alberta T2P 0G5 Telephone: 310-4AUC (310-4282) in Alberta 1-833-511-4AUC (1-833-511-4282) outside Alberta Email: [email protected] Website: www.auc.ab.ca The Commission may, within 30 days of the date of this decision and without notice, correct typographical, spelling and calculation errors and other similar types of errors and post the corrected decision on its website. Alberta Utilities Commission Calgary, Alberta Decision 25113-D01-2020 CNOOC Petroleum North America ULC Proceeding 25113 Corporate Name Change and Time Extension Applications 25113-A001 to 25113-A019 1 Decision summary 1. In this decision, the Alberta Utilities Commission considers whether to approve applications from CNOOC Petroleum North America ULC to (i) transfer orders, approvals, permits and licences, and an industrial system designation (collectively, authorizations) from Nexen Energy ULC to CNOOC Petroleum North America ULC to reflect a corporate name change, and (ii) for a time extension to complete construction of the 85-megawatt power plant and associated electrical facilities at the Long Lake Project Industrial Complex from December 31, 2019, to September 30, 2025. After consideration of the record of the proceeding, and for the reasons outlined in this decision, the Commission has determined that approval of the applications is in the public interest. 2 Introduction and background 2. In 2010, the Commission issued Decision 2010-0061 and Decision 2010-3132 approving the construction and operation of the 85-megawatt (MW) power plant and associated electrical facilities for the Long Lake and Kinosis developments at the Long Lake Project Industrial Complex. This industrial complex is located near the hamlet of Anzac, Alberta, approximately 40 kilometres southeast of the city of Fort McMurray. 3. In 2014, the Commission approved a time extension to December 31, 2019, to complete construction of the power plant and associated electrical facilities at the Long Lake Project Industrial Complex.3 4. In 2015, pursuant to Decision 20248-D01-2015,4 the Commission approved a corporate name change request by Nexen Energy ULC to transfer Nexen Inc.’s authorizations to Nexen Energy ULC. 5. On November 25, 2019, CNOOC Petroleum North America ULC (CPNA) filed applications with the Commission for approval to transfer Nexen Energy ULC’s authorizations to CPNA. CPNA also filed applications for a time extension from December 31, 2019, to September 30, 2025, to complete construction of the 85-MW power plant and associated 1 Decision 2010-006: Nexen Inc. and OPTI Canada Inc. - Long Lake South Phase 1, Proceeding 252, Application 1604706, January 15, 2010. 2 Decision 2010-313: Nexen Inc. and OPTI Canada Inc. - Long Lake South Project – Part 2, Proceeding 245, Application 1604848, July 6, 2010. 3 Decision 2014-340: Nexen Energy ULC - Time Extension to Complete Construction of the Long Lake and Kinosis Electric Facilities, Proceeding 3401, Application 1610830, December 16, 2014. 4 Decision 20248-D01-2015: CNOOC Canada Energy Ltd. - Corporate Name Change, Proceeding 20248, Application 20248-A001, March 31, 2015. Decision 25113-D01-2020 (January 30, 2020) 1 Corporate Name Change and Time Extension CNOOC Petroleum North America ULC electrical facilities at the Long Lake Project Industrial Complex. The applications were registered as applications 25113-A001 to 25113-A019. 6. The proposed authorization ownership changes are related to facilities previously approved by the Commission as follows: • Order 20248-D02-20155 – Long Lake Project Industrial System Designation • Approval 20248-D03-20156 – 170-MW Long Lake Cogeneration Power Plant • Approval 20248-D04-20157 – 23-MW Long Lake OrCrude Unit ORMAT Energy Converter Power Plant • Order 20248-D05-20158 – 170-MW Cogeneration Power Plant connection to Long Lake 841S Substation • Order 20248-D06-20159 – 23-MW Long Lake OrCrude Unit ORMAT Energy Converter Power Plant connection to Long Lake 841S Substation 7. The authorization ownership changes proposed in combination with the time extension are related to facilities previously approved by the Commission as follows: • Approval 20248-D07-201510 – 85-MW Power Plant • Permit and Licence 20248-D08-201511 – LLSP1 Cogeneration 872S Substation • Permit and Licence 20248-D09-201512 – LLSP1 SAGD 901S Substation • Permit and Licence 20248-D10-201513 – UPG 2 893S Substation • Permit and Licence 20248-D11-201514 – Long Lake 841S Substation • Permit and Licence 20248-D12-201515 – Transmission Line 7L201 • Permit and Licence 20248-D13-201516 – Transmission Line 7L202 • Permit and Licence 20248-D14-201517 – Transmission Line 7L203 • Permit and Licence 20248-D15-201518 – Transmission Line 7L204 5 Industrial System Designation Order 20248-D02-2015, Proceeding 20248, Application 20248-A001, March 31, 2015. 6 Power Plant Approval 20248-D03-2015, Proceeding 20248, Application 20248-A002, March 31, 2015. 7 Power Plant Approval 20248-D04-2015, Proceeding 20248, Application 20248-A003, March 31, 2015. 8 Connection Order 20248-D05-2015, Proceeding 20248, Application 20248-A004, March 31, 2015. 9 Connection Order 20248-D06-2015, Proceeding 20248, Application 20248-A005, March 31, 2015. 10 Power Plant Approval 20248-D07-2015, Proceeding 20248, Application 20248-A006, March 31, 2015. 11 Substation Permit and Licence 20248-D08-2015, Proceeding 20248, Application 20248-A007, March 31, 2015. 12 Substation Permit and Licence 20248-D09-2015, Proceeding 20248, Application 20248-A008, March 31, 2015. 13 Substation Permit and Licence 20248-D10-2015, Proceeding 20248, Application 20248-A009, March 31, 2015. 14 Substation Permit and Licence 20248-D11-2015, Proceeding 20248, Application 20248-A010, March 31, 2015. 15 Transmission Line Permit and Licence 20248-D12-2015, Proceeding 20248, Application 20248-A011, March 31, 2015. 16 Transmission Line Permit and Licence 20248-D13-2015, Proceeding 20248, Application 20248-A012, March 31, 2015. 17 Transmission Line Permit and Licence 20248-D14-2015, Proceeding 20248, Application 20248-A013, March 31, 2015. 18 Transmission Line Permit and Licence 20248-D15-2015, Proceeding 20248, Application 20248-A014, March 31, 2015. Decision 25113-D01-2020 (January 30, 2020) 2 Corporate Name Change and Time Extension CNOOC Petroleum North America ULC 8. On December 18, 2019, the Commission issued an interim time extension for the following approval and permits and licences, which were set to expire on December 31, 2019, until a final decision is made on the current applications, under Subsection 8(5) of the Alberta Utilities Commission Act: • Approval 20248-D07-2015 • Permit and Licence 20248-D08-2015 • Permit and Licence 20248-D09-2015 • Permit and Licence 20248-D10-2015 • Permit and Licence 20248-D11-2015 • Permit and Licence 20248-D12-2015 • Permit and Licence 20248-D13-2015 • Permit and Licence 20248-D14-2015 • Permit and Licence 20248-D15-2015 9. Due to the nature of the applications, a notice of application was not issued and, therefore, a hearing was not required as the Commission considered that its decision would not directly and adversely affect the rights of a person pursuant to Section 9 of the Alberta Utilities Commission Act. 3 Discussion 10. CPNA stated that, effective December 31, 2018, Nexen Energy ULC changed its name to CPNA. CPNA provided a copy of the legal notice of the corporate name change and a certificate of registration under the Business Corporations Act. 11. CPNA received amended Environmental Protection and Enhancement Act approvals and Alberta Energy Regulator (AER) approval under the Oil Sands Conservation Act for the Long Lake and Kinosis developments. The amended Long Lake Environmental Protection and Enhancement Act approval will expire on September 30, 2025, and the amended Kinosis Environmental Protection and Enhancement Act approval will expire on June 30, 2029. The Oil Sands Conservation Act approval does not have an expiry date. 12. The amended Environmental Protection and Enhancement Act approvals allow CPNA to produce bitumen from steam-assisted gravity drainage schemes at the Long Lake and Kinosis developments, and to feed the bitumen into the Phase 1 and Phase 2 upgraders at the Long Lake development. CPNA stated that it is working to restart the Phase 1 upgrader that was damaged in a 2016 explosion and is planning to be ready to proceed with construction of the Phase 2 upgrader when market conditions are more favourable. CPNA also stated it is committed to increasing production at the Long Lake and Kinosis developments to levels approved by the AER. 13. CPNA stated a five-year time extension to complete construction of the 85-MW power plant and associated electrical facilities within the existing Long Lake Project Industrial Complex is required to align with the amended Environmental Protection and Enhancement Act approvals. Decision 25113-D01-2020 (January 30, 2020) 3 Corporate Name Change and Time Extension CNOOC Petroleum North America ULC 14. CPNA stated that the requested time extension is of a minor nature and would not result in any increased adverse impacts on the environment or to the public. Consequently, CPNA did not conduct