JACOS Hangingstone Expansion Project: EIA Summary Report

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JACOS Hangingstone Expansion Project: EIA Summary Report Summary Report: Environmental Impact Assessment Table of Contents April 2010 Table of Contents 1 INTRODUCTION...........................................................................................................................1-1 1.1 JAPAN CANADA OIL SANDS LIMITED .......................................................................................1-1 1.2 EXISTING SAGD DEMONSTRATION PROJECT .......................................................................1-2 1.3 PROPOSED EXPANSION PROJECT..........................................................................................1-2 1.4 ENVIRONMENTAL IMPACT ASSESSMENT...............................................................................1-2 1.5 SUMMARY REPORT....................................................................................................................1-3 2 ASSESSMENT SUMMARY..........................................................................................................2-1 List of Tables Table 2-1 Summary of Environmental Effects..................................................................................2-1 List of Figures Figure 1-1 Regional Map with JACOS Expansion Project Area........................................................1-5 Figure 1-2 Expansion Project Area and Project Footprint.................................................................1-7 Figure 1-3 Hangingstone Expansion Project Process Flow Diagram ...............................................1-9 Figure 1-4 Local and Regional Study Areas....................................................................................1-11 i Summary Report: Environmental Impact Assessment Selected Abbreviations and Acronyms April 2010 Selected Abbreviations and Acronyms AAAQG................................................................................................ Alberta Ambient Air Quality Guideline AAAQO...............................................................................................Alberta Ambient Air Quality Objectives AENV.............................................................................................................................. Alberta Environment ASRD ........................................................................................Alberta Sustainable Resource Development COPC ........................................................................................................... Chemicals of Potential Concern CPF ...................................................................................................................... Central Processing Facility EIA........................................................................................................... Environmental Impact Assessment HHERA................................................................................Human Health and Ecological Risk Assessment JACOS ....................................................................................................................Japan Canada Oil Sands LSA.......................................................................................................................................Local Study Area PAI....................................................................................................................................Potential Acid Input RMWB................................................................................................ Regional Municipality of Wood Buffalo ROW........................................................................................................................................... Right-of-Way RSA ................................................................................................................................Regional Study Area SAGD .........................................................................................................Steam Assisted Gravity Drainage TEK ............................................................................................................Traditional Ecological Knowledge TLU.................................................................................................................................Traditional Land Use WBEA.............................................................................................Wood Buffalo Environmental Association iii Summary Report: Environmental Impact Assessment Section 1: Introduction April 2010 1 INTRODUCTION 1.1 Japan Canada Oil Sands Limited JACOS is a 100% owned Canadian subsidiary of Canada Oil Sands Co., Ltd. (CANOS), a Japanese subsidiary of Japan Petroleum Exploration Co., Ltd. (JAPEX). JAPEX is a petroleum exploration and production company and is traded on the Tokyo Stock Exchange (Securities Code Number 1662). JACOS started in the Athabasca area in 1978 when the company "farmed in" on leases held by Petro- Canada, Canadian Occidental (Nexen Inc.) and Esso (Imperial Oil) to form what is referred to as the PCEJ group. All of these companies are currently active in pursuing oil sands development in the region. JACOS and its partners experimented with a cyclic steam stimulation pilot project on the Hangingstone Lease from 1983 to 1994. From 1992 to 1997, JAPEX participated in the AOSTRA Steam Assisted Gravity Drainage (SAGD) pilot experiments at the UTF (Underground Test Facility) site. JACOS holds the rights to leases covering approximately 46,000 ha in the Athabasca region for future development. These leases include the Hangingstone, Chard, Corner, Liege and Thornbury areas which are expected to contain approximately 1.7 billion barrels of recoverable bitumen resource. For more information about JACOS, visit the website at www.jacos.com. The proponent’s address and Project contact are as follows: Japan Canada Oil Sands Limited. 2300 Standard Life Building 639 – 5th Avenue SW Calgary, Alberta T2P 0M9 Canada General Project Communication: Mr. Brian Harschnitz Senior Vice President Japan Canada Oil Sands Limited Tel: (403) 668-5443/ Fax: (403) 668-5202 Email: [email protected] Technical Project Communication: Mr. David Schleen Project Director Japan Canada Oil Sands Limited Tel: (403) 213-8981/ Fax: (403) 668-5202 Email: [email protected] 1-1 Summary Report: Environmental Impact Assessment Section 1: Introduction April 2010 Regulatory and Environmental Communication: Mr. Enzo Pennacchioli Manager, Regulatory Affairs Japan Canada Oil Sands Limited Tel: (403) 668-5155/ Fax: (403) 668-5202 Email: [email protected] 1.2 Existing SAGD Demonstration Project JACOS currently operates a SAGD demonstration project in the Hangingstone area approximately 50 km southwest of Fort McMurray, Alberta in Township 84, Range 11 W4M. The Demonstration Project is in its eleventh year of operation of a projected 25 year lifespan. The facility started producing bitumen in July 1999 and production has increased to its current level of about 7500 bpd (barrels per day). The licensed maximum capacity is 11 000 bpd. 1.3 Proposed Expansion Project In 2001, JACOS proposed the development of a commercial project just south of the Demonstration Project and commenced Environmental Impact Assessment (EIA) work and conceptual engineering. That proposed project was put on hold prior to filing for approval while the company underwent a significant change in its ownership structure. In May of 2008, JACOS issued a new project disclosure document for public review and comment. The details of the Expansion Project, as described in this Application, are similar to what was originally disclosed in 2001 but there are sufficient differences to require completion of a new EIA and Commercial Application package. Figure 1-1 provides an overview of the location of the Expansion Project area within the MD of Wood Buffalo. Figure 1-2 shows the extent of the planned project footprint within the overall Expansion Project area. Figure 1-3 shows a Process Flow Diagram for the Expansion Project. 1.4 Environmental Impact Assessment An Environmental Impact Assessment (EIA) has been prepared by JACOS and its consultants as part of the environmental review of the Expansion Project by regulatory agencies (Alberta Environment [AENV] and Energy Resources Conservation Board [ERCB]), which is required before any approvals for the development may be granted. The EIA’s contents meet the information requirements of AENV’s Terms of Reference (ToR). The EIA is the second volume, Volume 2, of the Commercial Application for the Expansion Project. Volume 1 is the Project Description. Sections 5 to 20 of Volume 2 provide the assessment for each of the assessed valued environmental components (VECs). VECs include biophysical and human/societal aspects of the environment that may be affected by the Expansion Project, and may be assessed with available information and analytical methods. 1-2 Summary Report: Environmental Impact Assessment Section 1: Introduction April 2010 The methods used to complete this assessment, described in detail in Volume 2, Section 2, follow approaches as established in previous such assessments for similar proposed projects in the Athabasca Oil Sands. The following three aspects of the method are important in the assessment of all VECs: 1. Assessment Cases: an assessment “case” is a point in time used to assess and compare effects. The effects of the Expansion Project have been assessed for three cases: i. Baseline Case (includes past and existing conditions and existing and approved projects) ii. Application Case (includes the Baseline Case with the Expansion
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