Joint Panel Report EUB Decision 2006-128 Albian Sands Energy Inc. Application to Expand the Oil Sands Mining and Processing Plant Facilities at the Muskeg River Mine December 17, 2006 Joint Review Panel Established by the Alberta Energy and Utilities Board and the Government of Canada REPORT OF THE JOINT REVIEW PANEL ESTABLISHED BY THE ALBERTA ENERGY AND UTILITIES BOARD AND THE GOVERNMENT OF CANADA EUB Decision 2006-128: Albian Sands Energy Inc., Application to Expand the Oil Sands Mining and Processing Plant Facilities at the Muskeg River Mine December 17, 2006 Published by Alberta Energy and Utilities Board 640 – 5 Avenue SW Calgary, Alberta T2P 3G4 Telephone: (403) 297-8311 Fax: (403) 297-7040 Web site: www.eub.ca and Canadian Environmental Assessment Agency 160 Elgin Street, 22nd Floor Place Bell Canada Ottawa, Ontario K1A 0H3 Tel.: (613) 957-0700 Fax: (613) 957-0941 Web site: [email protected] Application to Expand the Oil Sands Mining and Processing Plant Facilities at the Muskeg River Mine Albian Sands Energy Inc. CONTENTS 1 Decision and Recommendations to Canada and Alberta.......................................................... 1 2 Introduction .............................................................................................................................. 4 2.1 Application ....................................................................................................................... 4 2.2 Joint Panel Review Process.............................................................................................. 6 2.3 Hearing ............................................................................................................................. 7 2.4 Procedural Matter............................................................................................................. 7 3 Issues......................................................................................................................................... 7 4 Purpose, Need, and Alternatives............................................................................................... 8 4.1 Views of Albian................................................................................................................ 8 4.2 Views of the Interveners................................................................................................... 8 4.3 Views of the Joint Panel................................................................................................... 9 5 Alternative Means of Carrying Out the Project ........................................................................ 9 5.1 Views of Albian................................................................................................................ 9 5.2 Views of the Interveners................................................................................................... 9 5.3 Views of the Joint Panel................................................................................................... 9 6 Social and Economic Effects .................................................................................................. 10 6.1 Project Benefits.............................................................................................................. 10 6.1.1 Views of Albian.................................................................................................. 10 6.1.2 Views of NLHR.................................................................................................. 10 6.1.3 Views of RMWB................................................................................................ 11 6.1.4 Views of the Joint Panel..................................................................................... 11 6.2 Public Infrastructure and Services.................................................................................. 11 6.2.1 Views of Albian.................................................................................................. 11 6.2.2 Views of NLHR.................................................................................................. 12 6.2.3 Views of RMWB................................................................................................ 12 6.2.4 Views of Alberta................................................................................................. 14 6.2.5 Views of the Joint Panel..................................................................................... 14 6.3 Availability of Housing and Affordable Housing .......................................................... 17 6.3.1 Views of Albian.................................................................................................. 17 6.3.2 Views of NLHR.................................................................................................. 17 6.3.3 Views of RMWB................................................................................................ 17 6.3.4 Views of Alberta................................................................................................. 18 6.3.5 Views of the Joint Panel..................................................................................... 18 7 Stakeholder and Public Consultation...................................................................................... 19 7.1 Consultation.................................................................................................................... 19 7.1.1 Views of Albian.................................................................................................. 19 7.1.2 Views of ACFN.................................................................................................. 19 7.1.3 Views of OSEC .................................................................................................. 20 7.1.4 Views of MCFN ................................................................................................. 20 7.1.5 Views of the Joint Panel..................................................................................... 20 7.2 Agreements..................................................................................................................... 20 7.2.1 ACFN and Albian Agreement ............................................................................ 20 7.2.2 OSEC and Albian Agreement ............................................................................ 20 EUB/CEAA Joint Review Panel Report (EUB Decision 2006-128) (December 17, 2006) • i Application to Expand the Oil Sands Mining and Processing Plant Facilities at the Muskeg River Mine Albian Sands Energy Inc. 7.2.3 MCFN and Albian Agreement ........................................................................... 21 7.2.4 Non-assertion of Rights Agreement Between MCFN and the Province of Alberta............................................................................................. 21 7.2.5 Views of the Joint Panel..................................................................................... 21 8 Resources Conservation and Recovery................................................................................... 21 8.1 Project and Expansion Areas.......................................................................................... 21 8.1.1 Views of Albian.................................................................................................. 21 8.1.2 Views of the Joint Panel..................................................................................... 22 8.2 Coordination of Mine Plan Across Lease Boundaries ................................................... 23 8.2.1 Views of Albian.................................................................................................. 24 8.2.2 Views of Alberta................................................................................................. 25 8.2.3 Views of the Joint Panel..................................................................................... 26 8.3 No Net Loss Plan: Location and Resource Sterilization ................................................ 27 8.3.1 Views of Albian.................................................................................................. 27 8.3.2 Views of the Joint Panel..................................................................................... 27 8.4 Highway 63 Relocation .................................................................................................. 28 8.4.1 Views of Albian.................................................................................................. 28 8.4.2 Views of OSEC .................................................................................................. 29 8.4.3 Views of MCFN ................................................................................................. 30 8.4.4 Views of Canada................................................................................................. 30 8.4.5 Views of Alberta................................................................................................. 31 8.4.6 Views of the Joint Panel..................................................................................... 32 8.5 Bitumen Recovery and Solvent Loss ............................................................................. 32 8.5.1 Views of Albian.................................................................................................. 32 8.5.2 Views of the Joint Panel....................................................................................