Environment

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Managing our environmental commitment

Connacher has several environmentally friendly land management programs in place. Our programs are designed to comply with strict regulatory approved Conservation and Reclamation programs. Our Soil Monitoring Programs and continuous onsite re-seeding and re-contouring work have been designed to protect the land we are using and return it to its original use after the natural resources are developed.

LandLand

Footprint

Environment ResponsibilityIn-situ facilities in the Alberta oil sands, like Connacher’s at Pod One and Algar, have a footprint similar to conventional oil and gas operations. We use steam-assisted gravity drainage (“SAGD”) to remove oil in the form of bitumen from deep underground.

  • SAGD uses approximately 85-90 percent less surface area than mining operations
  • SAGD does not incorporate tailings ponds

Connacher actively pursues a number of initiatives to reduce the overall physical footprint of our facilities and activities, including the use of low impact seismic and reusing existing lines.

Reclamation

Each year we are responsible for the reclamation of land associated with programs at Pod One. It is anticipated that we will be able to apply for our first reclamation certificate associated with the construction of Pod One in late 2010. The reclaimed land will be returned to an equal or better state than what it was prior to development. Connacher continues to address reclamation opportunities in:

  • oil sands exploration
  • conventiona drilling
  • core-holes
  • sumps

In 2010 Connacher has committed over $700,000 for our footprint reduction initiatives.

Note: Energy development in Canada is strictly regulated by government agencies. Consequently, various pieces of environmental legislation govern Connacher’s operations. Alberta Environment performs a detailed review and approval process for all oil and gas projects in advance of commencing any work.

WaterWater

Connacher does not draw water directly from the Athabasca River or any other proximate river. Water used in the Pod One SAGD process is sourced from a non-potable subsurface aquifer. This water is unfit for consumption or for agricultural uses. We recycle more than 90 percent of the water used to make steam.

The effective use of water is one of our corporate priorities. Connacher recognizes that water is a shared resource that everyone needs to use responsibly. We work to protect water quality in the communities and ecosystems in which we operate. All of our business segments continually look for opportunities to improve water management processes.

The in-situ oil sands industry accounts for less than one per cent of Alberta’s total water allocation.  More than half of the water currently used in the in-situ operations is non-potable water sourced from deep underground zones and is not suitable for human or agriculture use.

Our Water Monitoring Program includes an ongoing sampling and screening process designed to protect the groundwater. Connacher continues to apply industry “Best Available Practices” that include, but are not limited to:

  • The recycling of produced water from thermal operations. The use of evaporator towers produces clean water from non-potable sources for steam generation. This enables us to recycle more than 90 percent of the water recovered with the bitumen during the production process at the Pod One facility.
  • The Algar facility is expected to advance this technology a step further, by recovering more water from the process
  • Site construction practices feature a minimal disturbance to groundwater flow and hydrology
  • Rain water is captured on the main plant lease at Pod One and tested for cleanliness before release in accordance with our Environmental Protection and Enhancement Act Approval

AirAir

As an in-situ oil sands producer, Connacher is committed to managing air emissions through an integrated corporate approach, which considers opportunities to reduce both air pollutants and greenhouse gases. By 2015, Connacher anticipates reducing its carbon footprint of bitumen to less than or equal to conventional oil and gas.

Natural gas used in the SAGD process is a clean-burning fuel that generates far less NOx and other contaminants than other sources. Nonetheless, we have implemented a comprehensive program designed to reduce or eliminate certain emissions. This includes a leak assessment tool to track, repair and test fugitive emissions; the management of emissions to comply with regulated allowances; emissions credits, offsets and associated financial compliance obligations and opportunities. Connacher also performs carbon costing scenarios in a variety of price ranges per tonne of CO2 emissions for the purpose of capital allocation decisions.

Air quality programs continue to be an essential part of Connacher’s environmental business plan. Emerging technologies continue to have a positive effect on reducing environmental impact and Connacher has invested in these innovations. Connacher has committed funding for the construction of a $30 million co-generation facility at Algar which will enable us to self-supply our power requirements, reducing electricity demand on Alberta’s coal fired power grid and generating heat that can be used in the SAGD process. Additionally, the use of electric submersible pumps has reduced our steam:oil ratio (“SOR”) and contributed favorably to reducing our emissions footprint. 

Our air related regulatory responsibilities include, but are
not limited to, participation in the following:

  • Environmental Protection and Enhancement Act Approvals
  • Canadian Environmental Protection Act, Section 46(1)
  • Specified Gas Emitters Regulation
  • National Pollutant Release Inventory
  • Chemical Management Plan - “The Challenge”
  • Reporting of Criteria Air Contaminants
  • CAPP Stewardship

WildlifeBiodiversity

Connacher is strongly committed to the protection of local wildlife and their natural habitat. Biodiversity is considered in all project planning and when we develop our SAGD and conventional operations. We strive for continuous improvement.

We support the Alberta Biodiversity Monitoring Institute and assess our performance against management objectives such as “regional sustainability” and “ecological integrity”.

  • We educate our onsite staff, contractors and visitors on
    local biodiversity
  • We promote awareness about the possible impacts we
    can have on wildlife activity

A portion of Connacher’s lease areas are within the Egg/Pony and Algar Caribou zones. We have developed an annual Caribou Protection Program, which is reviewed by Alberta Sustainable Resource Development and Energy Resources Conservation Board for operations within these areas.

  • We limit the amount of time in an area, committing to an early-in, early-out philosophy
  • We reduce the overall area impacted by utilizing existing disturbances
  • We utilize low impact construction methods

For the Algar SAGD project, we are designing wildlife crossing structures that will be placed in key areas along existing wildlife trails. A wildlife monitoring study was conducted prior to Algar’s construction using remote cameras, which are still in place and continue to record wildlife activity. Connacher continues to gain knowledge and understanding of the region and the wildlife for use in the development of new programs and the enhancement of existing programs.