meadow creek west project - volume 2 environmental impact assessment – section 1: introduction ·...

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MEADOW CREEK WEST PROJECT VOLUME 2 ENVIRONMENTAL IMPACT ASSESSMENT Introduction September 2017 Suncor Energy Inc. 1.1 1.0 INTRODUCTION Suncor Energy (Suncor) is applying to the Alberta Energy Regulator (AER) for approval to construct, operate and reclaim a 6,359 m 3 /d (40,000 barrel per day [bpd]) in situ oil sands development, known as the Meadow Creek West Project (the Project). The Project is a subset of the Meadow Creek oil sands leases, which are held jointly by Suncor (75 %) and Nexen Energy ULC (25 %), with Suncor as the operator. Suncor is an established operator in the oil sands region, having a presence in the region since 1967. Since then, Suncor has grown to become a globally competitive integrated energy company with a balanced portfolio of high-quality assets, a strong balance sheet and significant growth prospects. Suncor’s experience at operating the Firebag and MacKay River in situ recovery facilities provides Suncor with industry leading experience and positions Suncor to successfully develop the Meadow Creek West resource. This experience, together with Suncor’s commitment to sustainable development will ensure the Meadow Creek West Project is developed responsibly, safely and reliably. The Project will use steam assisted gravity drainage (SAGD) in situ technology for the extraction of bitumen from the McMurray formation and has been designed to include cogeneration (85 MW) in order to improve energy and greenhouse gas (GHG) efficiency. The Project is in the Lower Athabasca oil sands region and Regional Municipality of Wood Buffalo, west of Suncor’s Meadow Creek East Project and north of the JACOS Hangingstone Pilot Project. 1.1 PROJECT OVERVIEW The Project area covers approximately 14,482 ha. The Project includes the initial construction and operation of 18 wellpads, central processing facility (CPF), cogeneration and supporting infrastructure. In total, up to 58 wellpads may be developed to sustain production over the 25- to 40-year operational life of the Project. Construction is anticipated to begin in 2022 with production beginning in 2026. 1.2 LOCATION The Project is located in northeast Alberta about 40 kilometres (km) south of the City of Fort McMurray, and approximately 35 km southwest of the town of Anzac, in Township 85, Ranges 9, 10, 11 and 12, with a small portion of Township 84, Ranges 9 and 10, west of the Fourth Meridian (see Figure 1-1). Highway 63, which runs approximately northeast to southwest through the Project, will be the primary access for the Project.

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Page 1: Meadow Creek West Project - Volume 2 Environmental Impact Assessment – Section 1: Introduction · MEADOW CREEK WEST PROJECT VOLUME 2 ENVIRONMENTAL IMPACT ASSESSMENT Introduction

MEADOW CREEK WEST PROJECT VOLUME 2 ENVIRONMENTAL IMPACT ASSESSMENT

Introduction September 2017

Suncor Energy Inc. 1.1

1.0 INTRODUCTION

Suncor Energy (Suncor) is applying to the Alberta Energy Regulator (AER) for approval to construct, operate and reclaim a 6,359 m3/d (40,000 barrel per day [bpd]) in situ oil sands development, known as the Meadow Creek West Project (the Project). The Project is a subset of the Meadow Creek oil sands leases, which are held jointly by Suncor (75 %) and Nexen Energy ULC (25 %), with Suncor as the operator.

Suncor is an established operator in the oil sands region, having a presence in the region since 1967. Since then, Suncor has grown to become a globally competitive integrated energy company with a balanced portfolio of high-quality assets, a strong balance sheet and significant growth prospects. Suncor’s experience at operating the Firebag and MacKay River in situ recovery facilities provides Suncor with industry leading experience and positions Suncor to successfully develop the Meadow Creek West resource. This experience, together with Suncor’s commitment to sustainable development will ensure the Meadow Creek West Project is developed responsibly, safely and reliably.

The Project will use steam assisted gravity drainage (SAGD) in situ technology for the extraction of bitumen from the McMurray formation and has been designed to include cogeneration (85 MW) in order to improve energy and greenhouse gas (GHG) efficiency. The Project is in the Lower Athabasca oil sands region and Regional Municipality of Wood Buffalo, west of Suncor’s Meadow Creek East Project and north of the JACOS Hangingstone Pilot Project.

1.1 PROJECT OVERVIEW

The Project area covers approximately 14,482 ha. The Project includes the initial construction and operation of 18 wellpads, central processing facility (CPF), cogeneration and supporting infrastructure. In total, up to 58 wellpads may be developed to sustain production over the 25- to 40-year operational life of the Project. Construction is anticipated to begin in 2022 with production beginning in 2026.

1.2 LOCATION

The Project is located in northeast Alberta about 40 kilometres (km) south of the City of Fort McMurray, and approximately 35 km southwest of the town of Anzac, in Township 85, Ranges 9, 10, 11 and 12, with a small portion of Township 84, Ranges 9 and 10, west of the Fourth Meridian (see Figure 1-1). Highway 63, which runs approximately northeast to southwest through the Project, will be the primary access for the Project.

Page 2: Meadow Creek West Project - Volume 2 Environmental Impact Assessment – Section 1: Introduction · MEADOW CREEK WEST PROJECT VOLUME 2 ENVIRONMENTAL IMPACT ASSESSMENT Introduction

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GregoireLake176

GregoireLake 176

GregoireLake 176A

Clearwater175

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GregoireLake

Grand RapidsWildland

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Wildland

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Gipsy LakeWildland

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abasca River

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ChristinaLake

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Lake USA

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Figure 1-1

ProjectLocation

SUNCOR ENERGY - MEADOW CREEK WEST

Location of Meadow Creek WestDisclaimer: This map is for illustrative purposes to support this Suncor project; questions can be directed to the issuing agency.Sources: Base Data - GeoLogic (2015), Hydrology/Roads - GeoGratis (2013) Government of Alberta. Project Data - Suncor

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Project AreaCommunityAccess (Primary)Access (Secondary)WatercourseReserveFort McMurray Fire (July 20,2016)Provincial Park/WildlandReserveTownshipUrban AreaWaterbody

NAD 1983 UTM Zone 12N

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kilometres1:850,000 (At original document size of 8.5x11)

Page 3: Meadow Creek West Project - Volume 2 Environmental Impact Assessment – Section 1: Introduction · MEADOW CREEK WEST PROJECT VOLUME 2 ENVIRONMENTAL IMPACT ASSESSMENT Introduction

MEADOW CREEK WEST PROJECT VOLUME 2 ENVIRONMENTAL IMPACT ASSESSMENT

Introduction September 2017

Suncor Energy Inc. 1.3

1.3 REGULATORY FRAMEWORK

Suncor is seeking the following approvals from the AER for the Meadow Creek West Project:

• Approval to construct and operate a 40,000 bpd (6,359 m3/d) in situ bitumen recovery scheme under Section 10 of the Oil Sands Conservation Act, from the Athabasca Oil Sands Deposit in McMurray Formation, at oil sands leases located in Townships 84 and 85, Ranges 9 to 12 W4M

• Approval to construct, operate and reclaim the Project under Division 2 of Part 2 and Part 6 of the Environmental Protection and Enhancement Act

• Approval for a licence to divert and use water from non-saline aquifers and the diversion of surface runoff pursuant to Section 50(1) of the Water Act

• Conditional approval for disposition, pipeline and well licences under the Public Lands Act, Oil and Gas Conservation Act and Pipeline Act to construct, operate and reclaim Project facilities (above and below ground pipelines, subsurface wells, CPF, access roads and multiuse corridors)

Under the Environmental Protection and Enhancement Act (EPEA), Environmental Assessment (Mandatory and Exempted Activities) Regulation, Schedule 1 (j), a commercial oil sands facility producing more than 2000 m3 of crude bitumen or its derivatives per day requires an EIA.

The Project application and Environmental Impact Assessment (EIA) address the requirements of the Meadow Creek West Project Terms of Reference, Alberta Energy Regulator Draft Directive 023: Oil Sands Project Applications and the Guide to Content for Energy Project Applications.

In addition, the EIA addresses the information requirements for in situ oil sands operation for the following acts:

• Alberta Environmental Protection and Enhancement Act

• Alberta Historical Resources Act

• Alberta Oil Sands Conservation Act

• Alberta Water Act

Other federal acts that are relevant to the EIA include:

• Fisheries Act

• Migratory Birds Convention Act

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MEADOW CREEK WEST PROJECT VOLUME 2 ENVIRONMENTAL IMPACT ASSESSMENT

Introduction September 2017

1.4 Suncor Energy Inc.

• Species at Risk Act

• Transportation of Dangerous Goods Act

1.4 SCOPE OF ENVIRONMENTAL IMPACT ASSESSMENT

The EIA defines the Project in sufficient detail to identify potential environmental interactions and to evaluate and discuss these interactions in the context of potential residual and cumulative effects. The EIA establishes evaluation criteria for valued components as outlined in the Project TOR, applicable regulatory and land use guidance and stakeholder interests.

Project spatial and temporal boundaries are defined and discussed in Section 2.

Figure 1-2 shows a detailed footprint of the proposed surface facilities in the Project area (see Section 2), including the CPF, wellpads and infrastructure. The major components of the Project with potential to interact with the environment during construction, operation and reclamation include:

• a CPF consisting of:

− primary separation and oil treating

− produced water de-oiling

− water treatment

− steam generation

− cogeneration

• 58 wellpads consisting of:

− multiple well pairs directionally drilled from the surface

− steam injection and produced emulsion recovery facilities

− measurement equipment

• multiuse corridors comprised of an associated network of pipelines and roadways connecting the wellpads to the CPF

• borrow areas for source materials required for construction of surface facilities

• an all-weather-road connecting the CPF to the Sand Tiger Road and subsequently to Highway 63

• surface water management facilities including stormwater ponds at the CPF and wellpads to control and manage surface run-off

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USA

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Figure 1-2

ProjectLocation

SUNCOR ENERGY - MEADOW CREEK WEST

Project Footprint

Disclaimer: This map is for illustrative purposes to support this Suncor project; questions can be directed to the issuing agency.

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FootprintBorrow Area CPF CPF Main Access CPF Stockpile Initial Wellpad andCorridor Sustaining Wellpadand Corridor

Project AreaAccess (Primary)Access (Secondary)WatercourseTownshipWaterbody

NAD 1983 UTM Zone 12N

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Kilometres1:125,000 (At original document size of 8.5x11)

Sources: Base Data - GeoLogic (2015), AltaLIS.Project data provided by Suncor. Imagery provided by Suncor and © Harris Corp, EarthstarGeographics LLC Earthstar Geographics SIO © 2017 Microsoft Corporation

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MEADOW CREEK WEST PROJECT VOLUME 2 ENVIRONMENTAL IMPACT ASSESSMENT

Introduction September 2017

1.6 Suncor Energy Inc.

Planned connections to off-site facilities, which are not part of this application, include:

• a connection to the electrical grid

• a fibre optics connection to supply telecommunications

• a pipeline connection to supply the Project with natural gas

• a pipeline connection to supply source water

• a pipeline connection for disposal water

• a pipeline connection to supply diluent for blending with produced bitumen

• a connection to a product pipeline to transport product to sales markets.

Further details on updated non-production facilities for the Project are included in Volume 1, Sections 3.3 and 3.4.

1.5 ORGANIZATION OF THE EIA

This EIA is organized into 18 sections and supporting appendices. The first four sections introduce the Project, describe the methods used in the assessment and summarize the environmental setting and results of the EIA. Section 5 through Section 18 assess the effects of the Project on valued components:

• air quality

• acoustic environment

• hydrogeology

• hydrology

• surface water quality

• fisheries (aquatic ecology)

• soils and terrain

• vegetation and wetlands (including biodiversity)

• wildlife (including biodiversity)

• land use and management

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MEADOW CREEK WEST PROJECT VOLUME 2 ENVIRONMENTAL IMPACT ASSESSMENT

Introduction September 2017

Suncor Energy Inc. 1.7

• historical resources

• traditional ecological knowledge and traditional land use

• socio-economics

• human health

Volume 1 provides the application for approval of the Project, including applicant information, the project description, the development plan, details on stakeholder engagement and a conceptual conservation and reclamation plan. Volume 1 includes the following sections:

• introduction

• project context

• project activities

• risk management

• stakeholder engagement

• conceptual conservation and reclamation plan

1.6 TABLES OF CONCORDANCE

The tables of concordance (Volume 1, Appendix 1) document the various components required in the EIA and Project application as stipulated in the Meadow Creek West Project EIA TOR, Alberta Energy Regulator Draft Directive 023: Oil Sands Project Applications and the Guide to Content for Energy Project Applications and provides a reference to relevant sections in the Project application (Volume 1) and EIA (Volume 2) where these components are discussed.