SCREENING REPORT ALBERTA SULPHUR TERMINALS LTD. PROPOSED SULPHUR MANAGEMENT FACILITY BRUDERHEIM, ALBERTA Issued by: Alberta Environment Date: April 7, 2006 SCREENING REPORT ALBERTA SULPHUR TERMINALS LTD. PROPOSED SULPHUR MANAGEMENT FACILITY Alberta Sulphur Terminals Ltd., a division of HAZCO Environmental Services Ltd. (AST), has proposed to construct a sulphur management facility to process sulphur generated by oil and gas related refining operations in Alberta. The proposed project (Project) includes facilities for sulphur forming and shipping, as well as facilities for storage of manufactured product (i.e. sulphur pellets). The proposed site is located at Section 35-55-20 W4M approximately 2.2 kilometres east of Bruderheim, Alberta. The proposal was referred to the Regional Environmental Manager of the Northern Region, who is the designated Director (the Director) under the Environmental Protection and Enhancement Act (EPEA) to decide if the proposed activity warrants further consideration under the environmental assessment process. The Director decided that further consideration would be required and that a Screening Report would be prepared to determine the need for an Environmental Impact Assessment (EIA) report. AST was directed to disclose the Project to the public and invite the public to provide input to the Director about the need for an EIA report. The Screening Report includes a summary of information available on the proposal from AST, Statements of Concern filed by the public, and advice from Alberta Environment staff and other regulatory agencies. TABLE OF CONTENTS 1.0 INTRODUCTION ...........................................................................................................................1 1.1 Purpose of Screening Report .......................................................................................................1 1.2 Information Sources ....................................................................................................................2 2.0 PROJECT DESCRIPTION..............................................................................................................2 2.1 The Need for the Project..............................................................................................................2 2.2 Project Components.....................................................................................................................2 2.3 Location.......................................................................................................................................2 2.4 Land Use......................................................................................................................................3 2.5 Preliminary Geology and Hydrogeology.....................................................................................3 2.6 Preliminary Hydrology................................................................................................................3 3.0 PUBLIC CONSULTATION AND STATEMENTS OF CONCERN.............................................3 3.1 AST’s Consultation Activities.....................................................................................................3 3.2 Statements of Concern.................................................................................................................4 3.3 Government Agency Advice .......................................................................................................4 4.0 EVALUATION OF ISSUES AND CONCERNS ...........................................................................5 4.1 Air Quality...................................................................................................................................5 4.2 Soil Contamination......................................................................................................................6 4.3 Surface and Groundwater Protection...........................................................................................6 4.4 Traffic..........................................................................................................................................6 4.5 Fires and Emergency Response Plans .........................................................................................7 5.0 SUMMARY.....................................................................................................................................7 6.0 CONCLUSIONS AND RECOMMENDATIONS ..........................................................................8 7.0 APPENDIX – STATEMENT OF CONCERN FILERS..................................................................9 1.0 INTRODUCTION Alberta Sulphur Terminals Ltd. a division of HAZCO Environmental Services Ltd. (AST), has proposed to construct a sulphur management facility to process sulphur generated by various oil and gas refining operations in Alberta. The proposed project (Project) includes facilities for sulphur forming and shipping, as well as facilities for storage of manufactured product (i.e. sulphur pellets). The proposed site is located at Section 35-55-20 W4M approximately 2.2 kilometres east of Bruderheim, Alberta, in Lamont County. In July 2005, AST submitted an approval application in accordance with the Environmental Protection and Enhancement Act (EPEA) for the construction, operation and reclamation of the proposed sulphur forming and storage facility near Bruderheim. In August 2005, the Regional Approvals Manager of the Northern Region referred the proposed project to the Regional Environmental Manager of the Northern Region, who is the designated Director (the Director) for the purpose of making a decision whether the potential environmental impacts of the proposed activity warranted further consideration under the environmental assessment process. The Director decided that further consideration was warranted and that a Screening Report would be prepared to determine if an Environmental Impact Assessment (EIA) Report was required prior to the EPEA approval application being processed. Public notice of that decision was provided in December 2005 and directly affected persons were invited to submit Statements of Concern to Alberta Environment. In its July EPEA application, AST’s proposal included a sub-grade sulphur storage (i.e. sulphur block) facility. AST subsequently removed the sulphur block from the scope of its proposed development in response to a clarification request by Alberta Environment, and submitted a revised EPEA application in October 2005. Environmental issues relating to sulphur blocks are not considered in this Screening Report. The Screening Report was prepared in accordance with s. 4(1) of the Environmental Assessment Regulation. 1.1 Purpose of Screening Report Under s. 44(1)(b) of the EPEA, the Director determined that the potential environmental impacts of the proposed activity warranted further consideration under the environmental assessment process. Pursuant to s. 45 of the EPEA, that decision triggered a requirement for the preparation of a Screening Report regarding the need for preparation of an EIA report. A Screening Report helps the Director determine if an EIA Report summarizing the proposed activity, potential adverse effects, and their prevention, minimization or mitigation, is required prior to making regulatory decisions. Some types of information are best obtained and considered through the preparation of an EIA report. Typically this includes information about large, complex activities occurring in sensitive environments that may have a broad range of environmental, health, socio-economic and infrastructure effects requiring management or mitigation. An EIA report is also valuable for decision-makers when there is a substantial lack of technical and/or environmental information associated with a proposed project. On the other hand, less complex activities with well understood effects could be appropriately addressed without an EIA report using the EPEA approval application process and its information requirements. Some kinds of information such as air and water quality modelling are part of both information-gathering processes. - 1 - 1.2 Information Sources The following information sources were considered in the preparation of this Screening Report: EPEA Approval application submitted by AST dated July 25, 2005; “An Assessment of Air Quality Impacts Associated with Operations At the Proposed HAZCO Bruderheim Sulphur Forming Facility”, Jacques Whitford, August 31, 2005; Revised EPEA application submitted by AST dated October 19, 2005; Siting Investigation Report prepared by Komex International Ltd., October 2005; Disclosure Document entitled Alberta Sulphur Terminals, Bruderheim, Alberta; Risk Assessment submitted by AST dated December 7, 2005; Statements of Concern in response to the Screening Report Public Notice; Referral comments from regulatory agencies; and Advice from Alberta Environment staff. 2.0 PROJECT DESCRIPTION 2.1 The Need for the Project Sulphur, a by-product of sour gas processing, heavy oil upgrading and petroleum refining operations, is generated by oil and gas related facilities throughout Alberta. It is produced in sulphur recovery units that are used to minimize sulphur dioxide (SO2) emissions to the atmosphere. Sulphur is primarily used, both domestically and overseas, to produce fertilizers. Most of the sulphur produced in Alberta is sold outside the province, mainly to Florida, Asia and North Africa. Based on information provided by