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Part B Report A Screening Study of Oil Sand Tailings Technologies and Practices Prepared for Alberta Energy Research Institute AERI Contract 2008 0326 REVISION I. March 2010 By David W. Devenny PhD P Eng P Geol The Rock Doctor March 2010

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  • Part B Report

    A Screening Study

    of

    Oil Sand Tailings Technologies and Practices

    Prepared for

    Alberta Energy Research Institute AERI Contract 2008 0326

    REVISION I. March 2010

    By

    David W. Devenny PhD P Eng P Geol The Rock Doctor March 2010

  • PartB:OverviewofOilSandTailings

    TheRockDoctorB:ExecutiveSummaryPagei

    ExecutiveSummaryPartBReport.

    ThePartBReportisanoverviewofoilsandstailingspracticesandrelatedtopics.

    Thereportstartswithanoverviewofregulatorymattersandthegoverningfiscalregime.Thesehaveasignificantimpactontheprojectdirection,economicsanddecisionmaking.

    TheEvolutionofOilSandTailingsreviewsthehistoryoftailingspracticeandhowitresultedintodaysunfortunateinventoryofstrandedfluidtailings.Italsorecognizestheeffectofworldopiniononoilsands.FinallyitdescribesERCBDirective074thatseeksanewdirectionintailingsmanagement.

    Thenextsectionprovidesastepbystepdescriptionoftailingstechnologyandpractices.Itreviewswhyfluidtailingsarecreated,containmentrequirements,dewateringrequirementsrequiredtocreatesolidtailings,andtechnologiesthatareavailabletodensifyfluidtailings.Overviewsofoilsandgeology,materialpropertiesandbehaviour,providebackgroundknowledge.

    Abriefsectiononworldtailingspracticenotesthatsomeminesprefertotakeshorttermprofits,accumulatefluidtailings,anddeferreclamation.Stockpilingtailingsoftencreatesunnecessaryrisk,andmaybemoreexpensive.Deferringreclamationtransfersreclamationcoststofuturegenerations.Themainreasonforthissectionistoprofilethepoorimageofindustriesthatengageindeferralpractices.

    Chapter13reviewsproceduresusedtoscreenoptionsfortailings.Traditionaleconomicanalysisofferspoorguidanceforoilsandprojects.Discounting,overthelongtimespansassociatedwithoilsandsprojects,reducesfutureobligationstoafractionoftheirrealvalue.Distortiondoesnotoccurifreclamationobligationsarebookedastheyarecreated,insteadofwhenfundsarespenttocorrectthem.Recognitioncanbeaccomplishedbydepositingfundsofequivalentvalueinanenvironmentaltrustwhentheobligationiscreated.Addedbenefitsoftheenvironmentaltrustapproachdepositsarerecognizedoperatingcosts.Thatcausesgovernmentstoshareintheexpense.Inadditiontrustdepositsoffsetanautomaticreductioninassetvalue.Finally,theapproachencouragesmanagementthatismorecompatiblewithpublicexpectations.

    Informationonoilsandsprojectplans,technologies,andperformanceislimited.Greatertransparencyisneeded.

    Thereviewcloseswithanoverviewofoilsandresearchpractices,andrecommendstopicsthatshouldbeexplored.

    Appendicessupportthemaintext.Appendix1provideselectronicmodels.Thefirstsummarizesalllifecycleworkandtheassociatedcostdifferencesfordifferenttailingstechnologies.Thesecondoffersaneconomicmodeltoappraisethefulllifecycleofanintegratedoilsandplant.Thethirdisatailingsforecastmodel.Allmodelsallowuserstoinputtheirownvaluessotheimpactofdifferentinputcanbeobserved.Appendix4focusesonmaterialpropertiesandbehaviouranessentialpartofunderstandingtailings.

  • ReportB:OverviewofOilSandTailings

    The Rock DoctorOverviewofOilSandTailingsPageii

    TableofContents

    # # Title PageB ExecutivesummarytoReportB i Tableofcontents ii

    B.1 Introduction 1B.2 Regulatingoilsands B.2.1 Background 4 B.2.2 Albertaenvironmentalprotectionandenhancementact 4 B.2.3 ERCBmandate 4

    B.3 Fiscaltermsforoilsands 5B.4 Evolutionoftailingsandreclamationpractices B.4.1 Earlyhistory 6 B.4.2 The1990s 6 B.4.3 Recentevents 8 B.4.4 500ducks 10 B.4.5 ERCBdirective074 11

    B.5 OilSandsGeology B.5.1 Resourcebasemineablearea 12 B.5.2 BedrockGeology 12 B.5.3 LocalStructure 12 B.5.4 Originofthebitumen 14 B.5.6 SurficialGeology 14 B.5.7 Orebodycharacter 14

    B.6 Miningoilsands 16B.7 Extraction 19B.8 BasictailingsfromextractiontoMFT B.8.1 Introductiontotailings 22 B.8.2 Theoilsandstailingscycle 22 B.8.3 Transportingtailings 24 B.8.4 Tailingssanddeposits 25 B.8.5 Behaviourinthetailingspond 27 B.8.6 Predictingthevolumeoftailings 28

    B.9 TailingsDams B.9.1 Introductiontotailingsdams 30 B.9.2 Constructionwithoverburdeninsteadofsand 32 B.9.3 Constructingretentionfacilitiesinpit 33

    B.10 ProcessestodensifyMFT B.10.1 Directtreatmentprocesses 34 B.10.2 BehaviourasMFTdensifies 35 B.10.3 Mechanicalprocesses 35 B.10.4 Naturalprocesses 37 B.10.5 MixturesCTandNST 38

  • ReportB:OverviewofOilSandTailings

    The Rock DoctorOverviewofOilSandTailingsPageiii

    # # TableofContents(continued) PageB.11 StoringMFTunderawatercap

    B.11.1 Permanentstorageunderawatercap 42 B.11.2 Theendpitlake 44

    B.12 Worldtailingspracticeandimage 45B.13 Screeningtechnologyoptions

    B.13.1 Introduction 47 B.13.2 Characteristicsofoilsandprojects 47 B.13.3 Stepsusedtoscreentechnologyoptions 48 B.13.4 Characteristicsofeconomicanalysis 48 B.13.5 Resultsofscreeningstudies 50 B.13.6 Conclusionsonscreeningoptions 52 B.13.7 QualifyingEnvironmentalTrusts 53 B.13.8 Assigningvaluetofuturereclamationobligations 53

    B.14 OilSandTailingsR&D B.14.1 IntroductiontotailingsR&D 54 B.14.2 IncentivefortailingsR&D 54 B.14.3 SuggestedprojectgoalsfortailingsR&D 55 B.14.4 CharacteristicsoftailingsR&D 55 B.14.5 Largescaletailingstechnologyresearch 58 B.14.6 Independentresearch 58 B.14.7 Anillustrationofdifficultyintegratingindependentresearch 59 B.14.8 Effectivenessofoilsandsresearchprograms 61

    B.15 SummaryandConclusions V.15.1 Aboutprojectsandpractice 62 B.15.2 ERCBDirective074 62 B.15.3 Aboutmaterialproperties 62 B.15.4 Buildingtailingsdeposits 62 B.15.5 Howtolimitfluidtailings 63 B.15.6 Propertiesoffluidtailings 63 B.15.7 Directmethodsfordensifyingfluidtailings 63 B.15.8 PasteandMixedSoilCasesCTprocess 64 B.15.9 StoringMFTunderawatercap 64 B.15.10 EconomicscreeningofProjectOptions 64 B.15.11 FiscalTerms 65 B.15.12 ResearchandDevelopment 65 B.15.13 InsularCharacter 65

    B.16 Closure 66

  • ReportB:OverviewofOilSandTailings

    The Rock DoctorOverviewofOilSandTailingsPageiv

    TableofContents(continued) Table# ListofTables PageTableB.1 Characteristicsofthreemineableoilsandprojects 2TableB.2 LanduseattheSyncrudeMildredLakeFacility 3TableB.3 AverageoreusedinthePartAStudy 15TableB.4 Forecastpropertiesoftailingssanddeposits 27TableB.5 Highlightsofinformationobtainedfromthetailingsforecastmodel 28TableB.6 Typicaldimensionsoftailingsdams 30TableB.7 HighlightsoftheJackpinesurfacetailingspond 30TableB.8 Additionalcostwhenoverburdenisusedtobuildtailingsdykes 32TableB.9 RelativevolumesintheCTprocess 39TableB.10 ConcernswiththeCTprocessingoption 41TableB.11 Traditionaleconomicassessmentofcostsvstimeeffectandimage 46TableB.12 Effectofrecognizingreclamationliabilitiesasincurredeffectandimage 46TableB.13 Characteristicsofmineableoilsandprojects 47TableB.14 Typicaltimelineforsiteuse 47TableB.15 Typicalstepstoscreentechnologyoptions 48TableB.16 Threeeconomicscreeningmethodsusedtoevaluatetailingsoptions 49TableB.17 Assigningacosttoreclamationobligations 53TableB.18 SuggestedprojectgoalsfortailingsR&D 55TableB.19 Typesofoilsandtailingsresearch 56TableB.20 Researchplayers,roleandsourceoffunding 56TableB.21 R&Dfunding 57TableB.22 Majortailingstechnologiesstudiedinlargescalefieldpilotprograms 58

    ListofFigures

    Figure# Title PageFigureB.1 HowAlbertasoilreservesrankwithworlddeposits 1FigureB.2 SatelliteviewoftheSyncrudeandSuncorBasePlants 3FigureB.3 Fiscalsharingvs.priceofoil 5FigureB.4 AerialviewSyncrudeMildredLakeSite 7FigureB.5 Proposaltocapweaktailings 9FigureB.6 MFTinventorytodate 9FigureB.7 Oilonthesurfaceofatailingspond 10FigureB.8 BedrockoftheMineableOilsandsArea 13FigureB.9 400tonminetruck 16FigureB.10 Loadinga400tonhaultruck 17FigureB.11 HowminingandtailingsworkinpitatSyncrude 18FigureB.12 Simpleextractionprocessflowsheet 19FigureB.13 ERCBbitumenextractionrecoverycurve 20FigureB.14 Theoilsandtailingscycle 23FigureB.15 Volumechangeonthepathfromoretowaste 23

  • ReportB:OverviewofOilSandTailings

    The Rock DoctorOverviewofOilSandTailingsPagev

    Figure# ListofFigures(continued) PageFigureB.16 PreparationofaconstructioncellatAlbianSands 25FigureB.17 Dozercompactingsandinaconstructioncell 26FigureB.18 Depositingconventionaltailings 27FigureB.19 Crosssectionofatailingsdamcentrelineconstructionmethod 31FigureB.20 Crosssectionofatailingsdamupstreamconstructionmethod 31FigureB.21 Changeindykedesignifconstructedofoverburden 32FigureB.22 Changeindesignifmaterialissolidvs.fluid 33FigureB.23 RelativevolumeofmineralsolidandwaterinMFT 34FigureB.24 Ternarydiagramforcharacterizingbehaviourofsoilslurries 40FigureB.25 Suggestedoffsettoprotectagainstlongtermgulleyerosion 43FigureB.26 Effectofdiscountfactorandtime 49

    ListofAppendices

    Appendix# Title Appendix1 Electronicdata,spreadsheetsandmodels 1. Workandcostsheetsforeachtechnologystudiedcontaining:

    Workactivityvstime Capitalandoperatingcostvstime Reclamationactivitiesvstime Massbalances Userdefinedinputforcapitalandoperatingcosts Comparisonofunitcostforthetailingstechnologiesstudied

    2. Fullprojecteconomicmodelthatconsiders Userdefinedinputfor

    o Capitalconstructioncosto Productionvstimeo Incomefromproductsaleso Operatingcosts

    Fiscalregimeconsideringroyalty,capitalallowances,provincialandfederalincometax

    Inputforcapitalandoperatingcostforspecifictailingsoptions Treatmentofreclamationliabilities

    Traditional(ignore),offsetagainstassetvalue,fundaQET. Cashflowtothedeveloper,provinceandfederalgovernment Rateofreturnfortheprojectandthedeveloper

    3. TailingsforecastmodelUserinput Orecharacter Materialproperties Plantvariablesfinesdispersion,dischargedensityOutput Wastedepositssandandfluidtailsvolumes Waterlosshotwaterandoverallwaterloss

  • ReportB:OverviewofOilSandTailings

    The Rock DoctorOverviewofOilSandTailingsPagevi

    Appendices(continued) Appendix2 Drytailscase Appendix3 Definitions Appendix4 Materialpropertiesandbehaviour Appendix5 SuggestionsfortailingsR&D

  • B.1OilSandsBackground

    The Rock Doctor B.1OilSandsBackground Page1

    B.1IntroductionThissectionprovidesbackgroundinformationaboutAlbertasoilsands.Allinformationisfrompublicsources.

    Theoilsandsareaworldclasssourceofoil.FigureB.1showshowtheresourcecompareswithotherworldsupplies.Somefactsabouttheresource

    Resourcebase 1.7trillionbarrelsProvenreserves 170billionbarrelsrecoverableusingtodaystechnologyShallowmineable 35billionbarrelsProduction(2008) 1.3millionbarrelsperday Outlook 3millionbarrelsperdayby2018

    FigureB.1HowAlbertasoilsandsrankwithworlddeposits.(AlbertaEnergy,2008).

    Halfoftheoilsandproductioncomesfromshallowdepositsthataremined,thebitumenextractedusingahotwaterprocessandupgradedtoapipelineableproduct.

    CharacteristicsofthreeoilsandprojectsaresummarisedonTable1.Theprojectsallstartedbigandaregettingbigger.Allhaveplanstoexpandtoproducehalfamillionbarrelsperdayinthenextfewyears.Syncrude,now30yearsold,expectstolastfor100years.

  • B.1OilSandsBackground

    The Rock Doctor B.1OilSandsBackground Page2

    TableB.1Characteristicsofthreemineableoilsandsprojects.

    Project/Component Suncor Syncrude AlbianSandsStartupdate 1967 1978 2002Yearsinoperation 43 32 8Configuration Integratedfacility

    MineMineWastedisposalExtractionUpgradingUpgraderTankfarmUtilitiesTailingsponds

    IntegratedfacilityMineMineWastedisposalExtractionUpgrading

    UpgraderTankfarm

    UtilitiesTailingsponds

    SeparatefacilitiesAtsiteMineExtractionWastedisposal455km24dilutedbitumenand12diluentreturnline.UpgraderatScotford(nearEdmonton)

    Satellite MineandextractionsatellitesnearbyRemoteInsitu

    Largesatellitecontainsmine,extraction,tailings

    Expandingonsite

    Startupproduction 45,000bblSCO/day 105,000bblSCO/day 150,000bblSCO/dayCurrentproduction 260,000bblSCO/day 300,000bblSCO/day 150,000bblSCO/dayPlannedproduction 500,000bblSCO/day 500,000bbl/day 500,000bbl/dayExtractionprocess Hotwater

    UseNaOHdispersantHotwater

    UseNaOHdispersantHotwater

    Originallynodispersant.NowuseNaCitrate.Thickenerforheat

    recovery.Extractionefficiency% 92% 90.7%

    80%

    (afterasphalteneloss)Upgradingyield 84% 87.5% 100%Cokeproduction 2milliontonnes/year 2.5milliontones/year Asphaltenesarerejected

    andaddedtotailingsTailings ConventionalMFT

    followedbyCTConventionalMFTfollowedbyCT

    Producethickenedtails.LessMFTbecausenot

    usingdispersant.GreenhouseGasTonnes/m3SCO

    0.6 0.85 NA

    VOCemission(kg/m3) 1.73 NA NANaphthaloss NA .0043bbl/bbl NAEnergyuseGJ/m3SCO 7.4 8.1 NAWaterimportm3/m3 2.4 2.03 NAWaterrecycle% N/A 88% NACumulativedisturbanceha 13,093 21,282 NACumulativeareareclaimed

    949 4,668 NA

    ReclamationCertificateha

    0 104 0

  • B.1OilSandsBackground

    The Rock Doctor B.1OilSandsBackground Page3

    FigureB.1isanaerialviewofthebaseplantsforSyncrudeandSuncor.TableB.2summariseslanduseattheSyncrudebaseplant.Openpitmines,wastedumpsandtailingsfacilitiesdominatethelandscape.Thefootprintisjustundertwotownships.

    TableB.2LanduseattheSyncrudeMildredLakeFacility(BasePlant) Landuse/area Ha %

    Plantsiterelated 550 3%Mining Openpitspace 4,250 25% Overburdenwastedumps 1,100 6%Tailingspondsandrelatedareas 6,400 38%Miscellaneous 4,700 28%Total 17,000 100%

    FigureB.2SatelliteviewofSyncrudeandSuncorbaseplants

  • B.2RegulatingOilSands

    TheRockDoctorB.2RegulatingOilSands Page4

    B.2.Regulatingoilsands B.2.1 Background OilSanddevelopmentisregulatedinAlbertabyAlbertaEnvironment(AENV),theEnergyResourcesConservationBoard(ERCB)andAlbertaSustainableResourceDevelopment(SRD).TheFederalgovernmentmanagesitsrolethroughEnvironmentCanadaandtheDepartmentofFisheriesandOceans.AENVandSRDhaveprimaryresponsibilityformanagingtheenvironment.Thatincludes,pollutionpreventionandcontrol,waterallocation,useandprotectionofpotablewater,conservationandreclamationplanning,andtheevaluationofair,water,andlandforenvironmentalperformancereporting.AENValsomanagesthefinancialassuranceprogramthatencompassesmanytypesofdevelopmentincludingoilsands.TheERCBregulatesoilsandsminingandprocessingoperations,aswellasdiscardfromthoseoperations,includingtailings.AMemorandumofUnderstanding(MOU)betweenAENV,SRDandtheERCBoutlineseachagencysresponsibilitiesandhowtheyworktogether.TheMOUaddressestailingspondsandotheraspectsofmineableoilsandsmanagement,includingwateruseandreclamation. B.2.2AlbertaEnvironmentalProtectionandEnhancementActTheAlbertaEnvironmentalProtectionandEnhancementActprovidesthemandateforAENV.(Alberta,1993).ThewritersinterpretationofsomeunderlyingprinciplescontainedoftheAct,thathaveadirectbearingonoilsandsmanagement,include:

    Thepartythatdisturbslandisresponsibleforrestoringit.ThedisturberisobligedtoqualifyforaReclamationCertificatethatsignifiesthelandhasbeensatisfactorilyreclaimed.Thepublicisinvitedtoreviewandinputtodecisionsontheenvironment.Regulatorsmayrequiredeveloperstoprovidefinancialassurancethatfundswillbeavailabletoreclaimsites.Theformandamountoffinancialassuranceisattheregulatorsdiscretion.Thereistobenointergenerationaltransferofenvironmentalliabilities.

    B.2.3ERCBMandateTheERCBmandateisgovernedbyTheAlbertaOilSandsConservationAct.ApprovalsforminesandplantsarerequiredbySections10and11oftheAct.Approvaltocommence,suspend,orabandonanoilsandssiteisrequiredbySection3.ApprovalforstorageofdiscardgeneratedbyamineoraplantisrequiredbySections24and48.

  • B.2RegulatingOilSands

    TheRockDoctorB.2RegulatingOilSands Page5

    In2004theERCBandtheCanadianEnvironmentalAssessmentAgencyidentifiedseverallongtermobjectivesrespectingtailingsmanagement:

    tominimizeandeventuallyeliminatelongtermstorageoffluidtailingsinthereclamationlandscape;tocreateatrafficablelandscapeattheearliestopportunitytofacilitateprogressivereclamation;toeliminateorreducecontainmentoffluidtailingsinanexternaltailingsdisposalareaduringoperations;toreducestoredprocessaffectedwastewatervolumesonsite;tomaximizeintermediateprocesswaterrecyclingtoincreaseenergyefficiencyandreducefreshwaterimport;tominimizeresourcesterilizationassociatedwithtailingsponds;andtoensurethattheliabilityfortailingsismanagedthroughreclamationoftailingsponds.

    InFebruary2009theERCBissuedDirective074.Itrequiresoilsandoperatorstosolidifyincreasingamountsoffluidtailingseachyear,reportonfinesmanagement,andreportontheperformanceofeachtailingsfacilityannually.

  • B.3FiscalTermsforOilSands

    TheRockDoctorB.3FiscalTermsforOilSandsPage5

    B.3.FiscalTermsOilsandprojectsarehighlytaxedsothefiscalregimeisveryimportant.IndividualcomponentsofthefiscalregimeincludeAlbertaroyalty,capitalinvestmentincentives,andfederalandprovincialincometax.AlbertaRoyaltyvarieswiththestageofaprojectandthepriceofoil.Beforepayout,AlbertaRoyaltyisapercentageofGrossincome.Afterpayout,AlbertaRoyaltyisthegreaterof:aspecifiedpercentageofnetprofit,orapercentageofgrossincome.

    Payoutoccurswhencumulativeincomeexceedscumulativeexpenditures.

    Afterpayout,adollarofprofitissharedaccordingtofiscalterms,asgraphedonFigureB.3.Dependingonthepriceofoil,fiscalsharingleavesthedeveloperwith$0.45to$0.56fromeachdollarofprofit.Governmentsreceivetherest.Ifmoneyisspent,thesamefiscalsharingoccurs.Thenthecosttothedeveloperofspendingonedollaris$0.45to$0.56.Throughforegoneprofits,thegovernmentspaytherest.Fiscalsharingisanimportantpartofoilsandeconomicsandmustbepartofanyeconomicassessment.

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    $40.00 $60.00 $80.00 $100.00 $120.00 $140.00 $160.00

    Shareof

    profit

    and

    expen

    se%

    PriceofOil$/bbl

    FigureB.3Fiscalsharingvs priceofoil

    AlbertaRoyalty

    FederalIncomeTax

    AlbertaIncomeTax

    Developer

    AllGovernmentCombined

  • B4Evolutionoftailingsandreclamationprocesses

    The Rock DoctorB.4Evolutionoftailingsandreclamationpractices Page6

    B.4Evolutionoftailingsandreclamationpractices

    B.4.1EarlyHistory

    Tailingspracticehasevolved.TherewerefewenvironmentalguidelineswhenSuncorstartedoperationsin1967.Thatwas5yearsbeforeAlbertaEnvironmentexisted.

    TailingswereasurprisewhenSuncorstartedoperationsin1967.AtemporarydykewasconstructedtoTarIslandintheAthabascaRivertoholdthetailingsuntilasolutioncouldbefound.Todaythedykesofthatfacilityare100mhighanditisbeingreclaimedafter42yearsofservice.

    Todayapplicationsforoilsandsdevelopmentareobligedtostudythelease,identifyallpotentialadverseimpactsandshowhowtheywillmanagethem.Theyarealsoobligedtosubmitalongtermclosureplan.Attheendoftheprojectoperatorsareexpectedtoreclaimthesiteandqualifyforareclamationcertificate.TheReclamationCertificateisissuedbythegovernmentandmeansthatreclaimedlandsareacceptabletotheregulatorsandthatthedeveloperisnolongerresponsible.

    B.4.2The1990s

    InitiallyallofSyncrudestailingswerestoredintheMildredLakefacility.

    After10yearsofoperation,SyncrudeintroducedapumparoundsystemtopreventtheMildredLakefacilityfromfilling.(Listetal,1995).ItisillustratedbyFigureB.3.Thesystemworksasfollows:

    PlantwasteispumpedtotheSouthWestSandStoragefacilitywheresandisdeposited.ThintailsrunoffispumpedtotheMildredLakeSettlingBasin.

    AttheMildredLakefacility,finessettleandformMFT. MatureMFTispumpedfromtheMildredLakeSettlingBasintotheBaseMineLakestorage. MFTformakingCTisrecoveredfromtheMildredLakefacilityorfromtheBaseMineLake. CTisstoredintheactiveCTtailingsrepository.

    InthesameperiodSuncordevelopednewfacilitiestoholdfluidtailingsinminedoutareas.FigureB.2showshowtailingspondsdominatetheSuncorbaseplantsite.

  • B4Evolutionoftailingsandreclamationprocesses

    The Rock DoctorB.4Evolutionoftailingsandreclamationpractices Page7

    MLSB

    SWSS

    BML

    EIP

    Baseminelake

    FigureB.4AerialViewSyncrudeMildredLakeSite

    SiteBoundary

    SuncorBoundary

    MildredLakesettlingbasin

    EastInPit

    Southwestsandstorage 10km

    .

    InSyncrudes1992applicationforprojectexpansionSyncrudeproposedto:

    DecreaseMFTproductionthroughanumberofinhouseinitiatives. SolidifyMFTusingtheCTprocess. PermanentlystoreMFTthatremainsattheendofoperationsbelowawatercapinanendpit

    lake.TheyproposedafullscaledemonstrationtestintheBaseMineLakecommencingin2012.Thedemonstrationwouldlastfor10to15years.

    TheERCBagreedtothedemonstrationtestprovidedthefacilitywouldbereclaimedifthetestwasnotsuccessful.TheERCBnotedthattheypreferredthatfluidtailingsbereclaimedasatrafficablesolid.TheyalsonotedthattheproposaltopermanentlystoreMFTunderawatercapwasnotapproved.(Houlihanetal,2008).

    SinceSyncrudeproposeditin1992,mostoilsandapplicationshaveproposedtostartwithasurfacetailingspond,andthenswitchtoCTorequivalentwhentheprojectmovesinpit.Attheendoftheproject,fluidtailingsleftoverwouldbestoredpermanentlyunderawatercap.Thelistoflookalikeapplicationsinclude:

    Syncrudeapplications(Syncrude1992,2002) Suncorapplications(ERCB2003,2004) Shelloilsandapplications(AlbianSands,2002,2003) KearlLakeapplication(Kearl,2005).

  • B4Evolutionoftailingsandreclamationprocesses

    The Rock DoctorB.4Evolutionoftailingsandreclamationpractices Page8

    Syncrudesinhouseinitiativesprogramwasimplementedandwaslargelysuccessful.Themainprograminvolvedreducingthewatercontentintheextractionplantandinthetailingsdischargesofinescaptureinthesanddepositswouldbemaximized.FinesthatarecapturedinthebeacharenotavailabletomakeMFT.SyncrudesuccessfullyoperatedsmallscaledemonstrationtestswithwateroverMFT.However,thetestsweresmallanddidnotevaluatetheeffectofgasemissionsthatstartedatalaterdate.SyncrudeevaluatedCTina5millioncubicmetredemonstrationpilotinthemid1990s.TheystartedusingCTincommercialoperationsin1999.ThatdepositisbeingpreparedforreclamationthefirsttailingspondtobereclaimedatSyncrude.(Fair,2008).

    SuncorhavebeenusingCTincommercialoperationssincethe1995.(Shaw,2008).Suncorarereclaimingtheirstartuppondthathadbeeninuseforover40years.

    B.4.3RecenteventsIndustryappearstofocuson:

    Traditionalplantstomakefluidtailingsuntiloperationscanmoveinpit; ThensolidifyfluidtailingsusingCToranequivalenttechnology; Permanentlystoreresidualamountsoffluidtailingsunderawatercappedendpitlake.

    ThatisastrongcontrasttothegoalssetoutbytheERCB(Houlihanet.Al.2008):

    Minimizeandeventuallyeliminatelongtermstorageoffluidtailings.Createatrafficablelandscapeattheearliestopportunity. Eliminateorreducefluidtailingsinanexternaltailingsdisposalarea. Ensurethattheliabilityfortailingsismanagedthroughreclamation.Pilotresearchisapparentlyevaluatingothertechnologiessuchassandstacking,thickenerevaluations,cyclonetreatment,drying,freezethawtreatmentandcentrifugetreatment.(Fair,2008).Suncoraremanyoftheaboveaswellasselfcontainedmobilemine/extractionunits.GeneralinformationabouttheSyncrudeorSuncorresearchhasbeenreleasedbutlittleifanyspecificshavebeenmadepublic.Shellareresearchingthickenedtailingsoptions(Matthews,(2008)).Theystartedtheiroperationwithouttheuseofdispersingagentstoreducetailingsproduced.However,theyhavesubsequentlybeenaddingsodiumcitrate,adispersant.Shellarestillproducingthickenedtailingsandstoringitintheiroutofpitstarterpond.InthepastdecadeSyncrudeproducedabout200millioncubicmetresofMFT.TenpercentofthatwassolidifiedwithCTtreatment.(Fair,2008).

  • B4Evolutionoftailingsandreclamationprocesses

    The Rock DoctorB.4Evolutionoftailingsandreclamationpractices Page9

    MFTstorageinterfereswithlandreclamation.Syncrudehavedisturbedovertwotownshipsoflandarea.20%hasbeenreclaimed.Suncorhaveonlyreclaimed4%oftheirdisturbedlands.Todate104hectaresintheoilsandregionhavereceivedformalreclamationcertificates.TheTotalapplication(Total,2006a,2006b)proposetostoreweakCTatdepth,coveritwithstrongerCTallofwhichwillbecoveredwithastrongsandcap.(Total2006b).FigureB.5illustratestheTotalproposal.

    HighFinesCT Weakdeposit

    Dyke Dyke

    Strongcap

    Workingsurface

    LowfinesCT

    Reclaimedsurface

    FigureB.6Proposaltocapweaktailings

    FigureB.6showsthegrowthofMFTforthewholeindustry.Todaythevolumetotals750millioncubicmetres.IfthereisnochangeinprocessesusedthevolumeisforecasttoreachIbillioncubicmetresin2014andtwobillionin2034.(Houlihanet.al.2008).

    Figure B.6 Regional MFT Inventory to date

  • B4Evolutionoftailingsandreclamationprocesses

    The Rock DoctorB.4Evolutionoftailingsandreclamationpractices Page10

    B.4.4500Ducks OilsandsdevelopmentsarelocatedonamajorflywaythatbirdsuseastheymigratetonestingsitesintheArctic.Millionsofbirdsflyovertheoilsandsdevelopmentseachspring,andreturnwiththeiryoungeachfall.Tailingspondsareincompatiblewiththisnaturalmigrationbecausebirdsthatlandonthepondsareapttobecomeoilcoveredanddie.FigureB.7showsoilonthesurfaceofaSyncrudetailingspond.

    FigureB.7Oilonthesurfaceofatailingspond

    Deterrentssuchasmansizedstatuesstandingonfloatsspacedatregularintervalsonthepondsurfaceareusedtokeepthebirdsfromlanding.Thestatuesaresupplementedbypropane"cannons"thatfireatregularintervalsandmimicshotgunblasts.AlbianSandsusearadarscannertodetectincomingbirdsandactivateanartificialhawktoscarebirdsaway.InApril2008,latewinterstormsdelayedinstallationoftheseasonalduckdeterrents.AflockofMallardduckslandedonaSyncrudetailingspondbeforethedeterrentswereinstalled.500+ducksperished.

    Adverseworldwidepublicityfollowed.Internetsearchesrevealaplethoraofantioilsand,antiCanada,andantiU.S.A.websites,books(Nikiforuk,2008),andmagazines(Kuneig,R.,(2009),NationalGeographic).Thepublicitymayexaggerateandsupportotheragendasonenergyuseandclimatechange.However,someoftheconcernsarejustifiedandrevealanoilsandindustryoutlookthat,ifSyncrude's2006C&RPlanisamodel(Syncrude,2006),wassadlyoutofdate.Theimpactisdamagingthemarketabilityofoilsandsproducts,andCanada'simageinworldtrade.

  • B4Evolutionoftailingsandreclamationprocesses

    The Rock DoctorB.4Evolutionoftailingsandreclamationpractices Page11

    B.4.5ERCBDirective074In2008theERCBheldmeetingswithoilsandoperatorstoshareconcernsaboutthegrowinginventoryoffluidtailingsandtodiscussnewreportingrequirements.InFebruary,2009theERCBissuedDirective074.Itrequiresoperatorstoreportonallfinesprocessedandtosolidifyincreasingpercentagesofthefinesprocessedeachyear.(20%,30%,and50%inthenextthreeyears).TheDirectivespecifiesstrengthcriteriaforthesolidifiedfines(aminimumundrainedshearstrengthof5kPainthefirstyearandaminimumof10RPaafter5years).Inaddition.Directive074requiresthatoperatorsinventorytheirtailingspondsandreportperformanceannually.HoulihanpresentedasummaryofthepublicandregulatoryconcernsabouttailingsthatwerebehindDirective074(Houlihanetal,2008).Publicconcerns:

    Seepageandpotentialwatercontamination,Fugitiveemissions,Riskofatailingsdamfailure,Returnofthelandtotraditionaluse,Progressivereclamation(lackofit),Intergenerationaltransferofliability.

    Regulator'sconcerns:Applicationsunderestimatethefluidtailingsvolumes,CTperformancetargetsandcommitmentsnotmet,Fluidvolumesgrowingsteadily,Nofluidtailingspondreclaimed,Neitherthepublicnorthegovernmentispreparedtoacceptcommitmentsthatarenotmetandincreasingliabilities.

    Historicallythegovernmenthasencouragedindustrytoshowleadershipinoilsandsmanagement.Directive074representsanewdirection.

  • B.5OilSandGeology

    The Rock DoctorB.5OilSandGeologyPage12

    B.5OilSandGeology B.5.1ResourceBasemineablearea

    TheERCBestimatesthat35billionbarrelsofbitumenisrecoverablefromthesurfacemineablearea(ERCB,(2009b)).

    Formineabledevelopmentstheminimumresourcebaseisenoughtosupportaprojectfor25years.Thatamountstoover1billionbarrelsofreservesper100,000barrelsofproductionperday..

    B.5.2BedrockGeology

    Themineableoilsandareaisdefinedasoilsandthathasupto50metresofoverburdenovertheorezone.ItislocatednorthofFortMcMurray.FigureB.8showsthedistributionofbedrockformationsintheFortMcMurrayarea.(Alberta,2009)GraniteoftheCanadianShieldliesundertheoilsandareaafewhundredmetresbelowsurface.ThegraniteiscoveredbyPaleozoicformationsofsandstone,salt,shale,limestoneanddolomitethatdipgentlytothewest.TheMcMurrayFormationisthehostrockforbitumen.ItwasdepositedunconformablyontopofthePaleozoicformations.ItisofCretaceousage,(120millionyearsold).Depositionalenvironments,createdwhenashallowseainvadedthearea,leftcomplexlyinterlayereddepositsofsand,siltandclay.TheClearwaterformationwasdepositedontopoftheMcMurray.Itcontainsmarinedepositsthatformedinthedeepenedsea.SomelayersoftheClearwateraresandybutmostareclayshalethatcontainsconsiderableamountsofbentonite.OtherformationsfollowedsoatonetimetheMcMurraywascoveredbyonetotwokilometresofsediment.

    B.5.3Localstructure

    SolutionofthesaltbedswasoccurringinduringCretaceoustime,especiallyeastoftheAthabascaRiver.Solutionactivitydisruptsthecontinuityofoverlyingbeds.ThickenedsectionsoftheMcMurraydevelopedinareasthatweresubsidinginCretaceoustime.Karstfeatures,evidentonsurfacetoday,indicatethatsolutionactivityiscontinuing.(Fraser,1975).

  • B.5OilSandGeology

    The Rock DoctorB.5OilSandGeologyPage13

    FigureB.8 BedrockoftheMineableOilSandsArea

  • B.5OilSandGeology

    The Rock DoctorB.5OilSandGeologyPage14

    TheBitumontbasindevelopednorthofSuncorandSyncrude.ItisindicatedonFigureB.8bythecircularareaoccupiedbyClearwaterclay/shale.Theretheentireprofile,includingthegranitesurfacesubsided,indicatingthattheoriginismoredeepseatedthansolutionofsaltbeds.SubsidenceduringMcMurraytimeresultedinthickerandcoarserbedsofsand.Subsidenceafteroilenteredtheareadepressedpartsofthebitumensaturatedzone30metresbelowtheAthabascaRiver.(Isherwood,2009).

    B.5.4OriginofthebitumenAtanunknowntime,conventionaloilfromtheAlbertaBasinmigratedeastwardintothearea.Itfloatedonawaterlayer,andfilledthetopoftheMcMurrayformation.Bacterialactionstrippedlightcomponentsfromtheoil,leavingheavybitumen.(McNeely,1973).Thebitumen/waterinterfacetendstobehorizontalintheSuncorarea,coincidingwiththepresentleveloftheAthabascaRiver.IntheBitumontBasinthebitumensaturatedzoneisdepressedabout30metresbelowtheAthabascaRiver.

    B.5.5SurficialGeologySurficialdepositsincludePleistoceneglacialtillbothdensebasaltillandweakerablationtill.Outwashdeposits,windblownsandsandlacustrinedepositsfollowedatthecloseofthePleistoceneglaciation.Surfacedepositsincludelocalalluviumandmuskegdeposits.Continentalglaciationsmeltedfromsouthtonorth.Thenorthernsectionsblockeddrainagesolargelakesformedsouthoftheicesheet.GlacialLakeAgassizcoveredmuchofManitobaandSaskatchewan.About10,000yearsagoitdischargeddowntheClearwaterRiverandcarvedthepresentvalleyoftheAthabascaRivernorthofFortMcMurray.(Smithet.al.,1993).UpstreamfromFortMcMurraytheAthabascaRiverflowsonbedrock.DownstreamfromFortMcMurraythereisaburiedvalleybelowtheAthabascaRiver.TheburiedvalleyNorthofNorthofFortMcMurrayprobablyrepresentsapreCretaceousrivervalley(Devenny,2000).ContinuingsaltsolutionisindicatedbysaltspringsthatentertheAthabascaRiverespeciallyneartheBitumontBasin(Bauman,2008).UpstreamfromFortMcMurraytheAthabascaRiverflowsonthesurfaceofPaleozoicbedrock.DownstreamfromFortMcMurraythereisaburiedvalleybelowtheAthabascaRiver.TheburiedvalleyNorthofNorthofFortMcMurrayprobablyrepresentsapreCretaceousrivervalley(Devenny,2000).ContinuingsaltsolutionisindicatedbynaturalsaltspringsthatentertheAthabascaRiverespeciallyneartheBitumontBasin.(Bauman,2008).

    B.2.6Orebodycharacter

  • B.5OilSandGeology

    The Rock DoctorB.5OilSandGeologyPage15

    Inthemineableoilsandsarea,overburdentendstobeabout50metresthick.Theorezonealsotendstobeabout50metresthick.Oregradesarehighestinsandyzones(ashighas15%byweightbitumen)andlowestwherefinegrainedmaterialispresent.Table3.characterizesaverageoreatSyncrude.TableB.3AverageoreusedinthestudyreportedinReportA

    Component Weight% Weightpercubicmetre(tonnes)

    Volumeinonecubicmetre

    Density/specificgravity

    Bitumen 11% 0.231 0.229 1.01Water 5% 0.105 0.105 1.00Fines 16% 0.336 0.127 2.65Sand 68% 1.428 0.539 2.65Total 100% 2.100 1.000

    ThefollowingdiscussiondealswithfactsaboutaverageorethatwecaninterpretfromTableB.3.

    1. TheBitumendensityisveryclosetothedensityofwater.Thatchallengesseparationinextractionandisthereasonthatairbubbleassistanceisusedtofloatbitumen.Itisalsothereasonthatsolventisusedtochangethedensityofbitumeninfrothtreatment.

    2. Bitumenrepresents22%ofthetotalvolumeofoilsandore.Thatsuggestsacleanporoussand.3. Theclay/waterratioislowindicatingthatinsitutheclayisnotdispersed.

    Otherfactsaboutoilsandore:

    4. Oilsandoreishighlyvariable,aresultofthevariabledepositionalenvironmentsofthehostreservoir.Itcontainscomplexlyinterlayeredoreandwastedepositsofsand,silt,andclay.Allprocesses,fromtheminefacethroughextractionandtailings,mustberobustandabletoaccommodatevariationsintheore.

    5. Quartzandclaymineralsilmeniteandkaolinarethedominantmineralsinoilsand.6. Aquartzsurfacehasagreateraffinityforwaterthanbitumen.Asaresulteachsandgrainis

    surroundedbyathinfilmofwaterthatallowseasyseparationviaagitationinhotwater.Oilsanddepositselsewhereintheworldareoftencomposedofothermineralsthatattractbitumentothesandgrainsurface.Theyrequiresolventtoextractthebitumen.

    7. Bitumenparticlesreleasedinextractionreflectthesizeofthevoidspacethattheyarereleasedfrom.Insandthevoidspaceisquitelarge.Infinegrainedsoilthevoidspaceisquitefine.

    8. Bitumenassociatedwithfinegraineddepositscanbedifficulttoextractbecause: Thesurfacemaybeoilwet, Bitumendropletsaretoofineforairbubblestocontactandfloatthemtosurface.

    9. Thereareminorquantitiesofheavymineralsilmenite,rutileandzircon.Centrifugeactioninextractionconcentratestheheavymineralsmanyfoldsotheyarepotentialoresfortitaniumandzirconium.

    10. Bitumencontainscoproductssulphur,cokeandvanadium.

  • B.6MiningOilSand

    The Rock DoctorB.6MiningOilSandPage16

    B.6MiningAllprojectsmineoverburdenandoreusinglargeshovelsand400tontrucks.Oreishauledtoadumpfacilitywhereitiscrushed,screened,slurriedwithwarmprocesswaterandpumpedtotheextractionplant.Turbulenceduringhydrotransport,breakstheoreintoindividualparticlesneededforseparationinextraction.Processaids,dispersingagentsandsmallairbubbles,areaddedbeforetheorereachesextraction.Minewaste(overburdenandinterburden)ishauledtowastedumps.Suitablewasteisalsousedtoconstructfacilitiessuchastailingsdykes.Itisusuallycompactedbydriving400tontrucksoverit.Somewastesareunsuitableforconstruction,becausetheyaretoowet,orcontainundesirablematerial(e.g.swellinganderodibleclaysoftheClearwaterFormation.)Careisrequiredtoensurethatmaterialsthataredeleterioustoextractionarekeptoutoftheoresupply.DeleteriousmaterialsincludeactiveclayfromtheClearwaterFormation.FigureB.8showsa400tontruckthatisusedinoilsandmining.FigureB.9showsashovelloadingoreontoa400tontruck.Shovelsaresizedsotheycanfillthetruckswiththreescoops.

    FigureB.9400tonminetruck

    ERCBInterimDirectiveID20017stipulatescutoffcriteriaformining.ProjectsareexpectedtominetoaminimumTV/BIPof12whereTVisthetotalvolumeofore,interburdenandoverburden,andBIPisthevolumeofbitumeninplace.Theminimumwastelayeris3metresthick.Thecutoffgradeis7%.

  • B.6MiningOilSand

    The Rock DoctorB.6MiningOilSandPage17

    Mineopeningsmustdepressurizeaquifersencounteredinandbelowtheorebody.AttheSuncorandSyncrudebaseplantsgroundwateraquifersarelimitedandtheoreseldomdipsbelowtheleveloftheAthabascaRiver.AtAlbianSandsthebasalaquiferismoreextensivebutminingactivitytendstobeabovetheleveloftheAthabascaRiver.ProjectsinandneartheBitumontBasincouldbeminingore30metresbelowthesurfaceoftheAthabascaRiver.Groundwatercontrolinthoseminescouldencounterlargequantitiesofverysalinewater.

    FigureB.10Loadinga400tonhaultruck

    Minedoutareasarebackfilledwithoverburdenandtailings.FigureB.11showshowtailingsandminingactivityexistsidebysideatSyncrude.Itcantake50yearstoaccommodatemining,tailingsstorage,tailingsreclamationandfinallysurfacereclamation.Therearewasteproductsthatmustbeaccommodatedinminedoutareas:

    Overburdenandinterburdenwaste, MaterialrejectedatthescreenbeforeHydrotransport(cementedlayersandclaylumps), Cokeproducedinupgrading(approximately2milliontonnesperyearatbothSyncrudeand

    Suncor).TheERCBrequiresthatcokebeplacedsoitwillbeaccessibletofuturegenerations.

    Sulphur(usuallystoredonsitebecauseshippingcostexceedsthemarketvalue).Sulphurisalsostoredsoitwillbeaccessibleinthefuture.

  • B.6MiningOilSand

    The Rock DoctorB.6MiningOilSandPage18

    FigureB.11HowminingandtailingsworkinpitatSyncrude

    Legend

    EIP EastinPitMineSWIP SouthWestinPitmineNorthMineActiveNorthMine

  • B.7Extraction

    The Rock DoctorB.7ExtractionPage19

    B.7Extraction

    FigureB.11showsasimplifiedprocessflowsheetforanoilsandextractionplant.

    MiddlingsTreatment

    FigureB.5SimpleExtractionProcessFlowSheet

    Mixer

    MineSlurry CrushScreenHydrotransport

    FrothCleaningPSVDesander

    FloodWater

    ToTailingsToTailings

    Froth

    Thefirststepinextractionistoaddwatertotheincomingoreslurry.Thefirstvesselintheextractionplantcontainsrelativelystillwater.Inthatenvironmentsanddropsoutofsuspensionandissenttotailings.Bitumen,aidedbysmallattachedairbubblesfloatstothesurfacewhereitisremovedasfroth.Theremainingmixtureiscalledmiddlings.Itcontainswater,silt,clay,andsmalldropletsofbitumen,issenttothenextstageoftheextractionplantforfurtherprocessing.Afterbitumenhasbeenremovedfromthemiddlingscircuitresidualwasteisblendedwiththesandtailingsstreamandsenttotailings.Infrothtreatment,solventisaddedtodilutebitumenandtochangeitsspecificgravity.Thentheslurryiscentrifugedtoseparatethebitumenfromwaterandsolids.Residualwastecontainingwater,solids,unrecoveredbitumenandsolventlossesisdischargedasfrothtreatmenttailings.

  • B.7Extraction

    The Rock DoctorB.7ExtractionPage20

    Frothtreatmenttailingscontainthemostbitumenandsolventaswellasconcentrationsofheavymineralssuchasilmenite,rutileandmonazite.Thereissomeinterestinilmeniteandrutileaspotentialsourcesoftitanium.Monazitecontainsradioactiveelementsthataredetectablewithgeophysicalloggingtools.Blendingfrothtreatmenttailingswithregulartailingsdegradesthequalityofregulartailings.Italsowastesconcentratedilmeniteandrutile,andaddsconcentrationsofradioactivitythatinterferewithusinggeophysicaltoolstodeterminetheclaycontentofMFT.Perhapswastefromfrothtreatmentshouldbestoredseparately.

    Theextractionsystemsdescribedareillustrative.Otherconfigurationsarealsoused.

    ERCBInterimDirectiveID20017specifiestheminimumbitumenrecovery.Fororethatcontainsmorethan11%byweightbitumen,extractionisexpectedtorecover90%ormoreofthebitumen.Fororegradesbetween7%and11%theminimumbitumenrecoverycurveisindicatedbyFigureB.13.

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    100%

    6% 7% 8% 9% 10% 11% 12% 13% 14%

    Minim

    umRecovery%

    OreGrade%

    Figure6ERCBBitumenExtractionRecoveryCurve

    ERCBRecoveryCriteria

    Maximumore/rejectthickness3mCutoffgrade

    7%TV/BIP Cutoff 12

    Minimumrecoveryinextraction(Recovery=54.1X 2.5X2 202.7)whereX=feedgrade

    SuncorandSyncrudeoperateintegratedplants.Theyproducebitumenthatissuitablefortheironsiteupgraderbutdoesnotmeetspecificationsforpipelinetransport.Table1indicatesthatSuncorandSyncruderecover92%and90.7%ofthebitumeninextraction.ThedifferenceprobablyreflectsslightlylowergradeoreatSyncrude.

  • B.7Extraction

    The Rock DoctorB.7ExtractionPage21

    TheAlbianSandsProjectproducesbitumenandthenshipsit455kmtotheShellupgraderinScotfordAlberta.PipelinespecificationsrequirecleanerbitumenthanSyncrudeandSuncorproduce.Thenewfrothtreatmentusedtoproducecleanbitumencausesasphaltenestoprecipitate.Theyareaddedtotailingsfromfrothtreatment.AsaresulttheoverallhydrocarbonrecoveryatAlbianSandsisprobably80%orless.

    SuncorandSyncrudeaddcausticsodainextractiontofacilitatebitumenremoval.Causticsodaalsodispersesclay.Thataddstothevolumeoffluidtailingscreated.

    Originally,AlbianSandsproposedtooperateextractionwithoutaddingdispersingagents.Thereason:anticipatedsuperiorperformanceintailingsdenser,rapidlysettlingtailings,andfasterwaterclarification.However,theprojectnowaddssodiumcitrate,adispersingagent,toaidbitumenextraction.

    Processwaterdischargedinthewastestreamsfromextractioncontainsheat.Heatlossisreducediftheamountofwaterdischargedwithplantwasteisreduced.

    Waterdischargecanbereducedbyconcentratingthesolidcontentofthedischargestreams.Thefinesstreamcanbeconcentratedtoabout30%solidsinathickener.Thesandwastestreamcanbedensifiedbycyclonestoover70%solids.Processwaterrecoveredintheplant,withitscontainedheat,isimmediatelyrecycledandreused.

    Traditionalextractionproduceswastethatcanbepumped.Theupperlimitforthestrengthofpumpablewasteis100kPa.Thatis1%ofthestrengthdesiredforreclamation.

  • B.8BasicTailingsfromExtractiontoMFT

    TheRockDoctorB.8BasicTailingsfromExtractiontoMFTPage22

    B.8BasicTailingsfromextractiontoMFT

    B.8.1IntroductiontoTailings

    Tailingsarethewasteproductofoilsandprocessing.

    Theassignmentfortailingsmanagementis:

    1. Receiveallsolidandfluidwasteproducedbyextraction,2. Storeitinasafe,costeffectivemanner,3. Returnclarifiedprocesswatertotheplantforreuse,4. Reclaimwastedepositstomeetreclamationrequirementsforclosureinatimelymanner.

    Theassignmentisadifficultonebecause:

    Tailingswasteisreceivedasaliquidslurry. Azerodischargepolicyrequiresthatallprocessaffectedwaterberetainedonsite. Forclosure,someofthewastemustbetransformedintoastrong,selfsupportingsolid. Extractiondonotknowtheclaycontentoftheirtailingsdischarge.

    B.8.2Thetailingscycle

    FigureB.14showsthestepsinthepaththattransformsoretotailings.FigureB.15showstherelativevolumeofthecomponentsoftailingsalongthatpath.Stepsintailingsmanagementaredescribedbelow:

    Oreismined,slurriedandpumpedtoextraction.Intransittheoreseparatesintoindividualparticles,inpreparationforbitumenextraction.Thevolumeofsolidsremainconstantfromstagetostage.Volumechangesareduetobitumenremoval,wateradditionandwaterremoval.

    Inextractiontheorecomponentsareseparatedintothreestreams(coarse,finesandfroth)becauseeachrequiresdifferenttreatment.Afterbitumenhasbeenextracted,thesandandfineswastestreamsarecombinedandpumpedtothetailingsdisposalsite.Frothtreatmentwastemaybepumpeddirectlytothetailingspond.Wasteslurriessenttotailingscontainprocesswater,sand,fines,unrecoveredbitumen,andminorimpuritiesfromnaturalandmanmadesources.Whentailingsexittheplantthevolumeoftheslurryismorethantwicetheoriginalvolumeoftheore.Heatlossisassociatedwiththelargevolumeofwaterinthetailingsslurry.

  • B.8BasicTailingsfromExtractiontoMFT

    TheRockDoctorB.8BasicTailingsfromExtractiontoMFTPage23

    MFT

    NativeSoil

    SolidFineTails

    WaterClarificationZone

    BeachSand

    SandDyke Beach

    Sand

    SandDyke

    ProductOre

    BitumenWaterFinesSand

    WaterfromSFT

    MakeupWater

    Hydrotransport

    OverflowToPond

    ExtractionPlant

    RecycleWater

    7

    6

    54

    3

    2

    1FigureB.14TheOilSandsTailingsCycle

    0

    0.5

    1

    1.5

    2

    2.5

    3

    ChartTitle

    Bitumen

    Water

    Fines

    Sand

    FigureB.15Volumechangeonthepathfromoretowaste

  • B.8BasicTailingsfromExtractiontoMFT

    TheRockDoctorB.8BasicTailingsfromExtractiontoMFTPage24

    Atthewastestoragesite,theslurryisdischargedontoasanddeposit.Seventyfivepercentofthewasteaccumulatesasasolidsanddeposit.Voidspaceinthesandisfilledwithwaterandsuspendedcomponents.Thevoidspaceinthesandisalmostequaltothevolumeoffluidtailings.Surplusmaterialoverflowstothepond.

    Materialenteringthetailingspondconsistsofadilutesuspensionofwater,fines,unrecoveredbitumenandsolvent,andimpurities.SectionB.A4.3inAppendixB.4describeshowsolidssettletobecomeMFT.

    MosttailingsmaterialbalancesinApplicationsforacommercialdevelopmentstopattheMFTstage.FiguresB.14andB.15assumethatclosurerequiresthatMFTshouldbereclaimedassolidfinetailingsorSFT.ThefinalstepchangesMFTtoSFTwithafinesdensityof70%solidsbyweight.

    Surpluswaterinthepondisavailableforreuse.WhenthefinesarestoredasMFTthevolumeavailableforrecycleis1.15cubicmetrespercubicmetreofaverageoreprocessed.ConvertingMFTtoSFTaddsanadditional0.18cubicmetresofwatertorecycle.

    Dissolvedsaltsaccumulatewitheachtimewaterisreused.Thesaltscomefromconnatewaterintheore,minedepressurizationwater,andprocessaids.

    Lord(Lordetal,1997).reportsMFTdensitiesof35%andeven40%atSyncrude.Thedensitiesnotedindicatethatsomeconsolidationistakingplace.TherearesubtledifferencesinMFTatSyncrudeandSuncor(McKinnonetal,1993).Theprecedingfactsdonotchangethethrustofdiscussionsinthisreport.

    Tailingswaterbecomessaltierwithreuse.Implications:

    Atsomepointthewaterchemistrywillcauseclaytoflocculateinextractionhaltingbitumenextraction.

    Saltyprocesswatersuppressesvegetationsoadverselyaffectsreclamation. Itwillbedifficulttoassimilatetailingswaterinthesurroundingsifitistoosalty.

    B.8.3Transportingtailings

    Processwasteisblendedandpumpedtothetailingsdisposalsiteforseveralreasons:

    Finegrainedcomponentsassistfluidtransportofsand. Blendedwastemeansthatonlyonetransportsystemisneeded. Wasteispumpedbecauseitisbelievedtobethelowestcosttransportsystem. Dischargedwasteautomaticallyflowstoitsfinalrestingplace.

  • B.8BasicTailingsfromExtractiontoMFT

    TheRockDoctorB.8BasicTailingsfromExtractiontoMFTPage25

    Tailingsispumpedataspeedof3to5metrespersecondtokeepallsolidsinsuspension.

    Theupperlimitonstrengthforpumpedslurriesisabout100kPa.Thestrengthofthepumpedmaterialwillhavetoincreasebyafactorof100toequal10kPa,thelowerlimitofstrengthdesiredforsolidreclaimabletailings.

    Tosaveheat,operatorstrytokeepthedensityofthewasteslurryhigh(between50%and60%solids).Itisnotpracticaltopumpathigherdensities.

    B.8.4TailingsSanddeposits

    Threetypesofsanddepositsformattheendofthetailingsline.

    Sandconstructioncell

    Largecellsarecreatedtocollectsandforconstruction.Whenthetailingsslurryentersthebroadcell,flowvelocitydecreasesandsanddropsoutofsuspension.Dozersmaintainsmallperimeterdykesaroundthecellandcompactthenewlydepositedsandbytrackingbackandforthacrossit.Voidspaceinthesandisfilledwithprocesswaterandsuspendedmaterial.

    FigureB.16isaphotoofatailingssandcellinpreparation.FigureB.17isaphotoofadozercompactingsandintheconstructioncell.(Matthews,2008).

    FigureB.16PreparationofaconstructioncellatAlbianSands

  • B.8BasicTailingsfromExtractiontoMFT

    TheRockDoctorB.8BasicTailingsfromExtractiontoMFTPage26

    FigureB.17Dozercompactingsandinaconstructioncell

    Sandthatisnotusedforconstructionisdirectedtothebeach.

    BeachdepositsareindicatedonFigureA.17.

    FigureB.18DepositingConventionalTailings

    ExtractionSand

    Fines

    Water

    Recyclewater

    MFT

    Beach Beachabovewater

    Beachbelowwater

    Pond

    MFT

    Clearwater

    Transition

  • B.8BasicTailingsfromExtractiontoMFT

    TheRockDoctorB.8BasicTailingsfromExtractiontoMFTPage27

    Beachabovewater

    Thetailingsdischargeisspreadoverthebeachtopreventconcentratedflow.Smallstreamsflowoverthebeach.Theydeposit,erodeandredepositsandandmaterialcapturedinthevoids.Thatmakesthedepositinthebeachabovewaterhighlyvariable,rangingfromcleansandtosandwithvoidsfilledwithcapturedmaterial.

    Beachbelowwater

    Conditionsinthebeachbelowwaterarequieterthantheyareabovewater.

    Intheunderwaterenvironmentgentleplacementcreatesloosedepositsformthatcantrapalotoffinegrainedmaterial.Theloosedepositsarepronetoliquefaction.SubmarinelandslidesandturbidityflowsarepartofthesystemthatdeliversmaterialdowntheslopeandintoadjacentdepositsofMFT.

    ThevolumeandcharacterofsanddepositsisrelativelypredictableandissummarizedbyTableB.4.Thevolumeandcharacterofthefinetailingscomponentismuchmorecomplicated,partlybecauseinformationonclayanditsactivityisnotcollected.TableB.4Forecastpropertiesoftailingssanddeposits:

    Deposit PorosityN

    VoidRatioe

    Weight%Solids%

    DryDensityt/m3

    BeachSlope%

    Sandcompactedinacell 0.37 0.6 82% 1.67 Sanddepositedinabeachabovewater 0.40 0.68 80% 1.59 2%Sanddepositedinabeachbelowwater 0.43 0.75 78% 1.51 4%FinesformingMFTinthepond 0.86 6.2 30% 0.37

    B.8.5Behaviourinthetailingspond

    Thetailingspondisalargevesselthatclarifieswaterandprovidesstorageforfinegraineddeposits.

    Materialthatentersthetailingspondconsistsofwater,unrecoveredbitumen,silt,clay,dissolvedchemicals,solventlosses,andprocessaids.

    Thewasteslurryenteringthetailingspondisquitedilute,withatypicalsolidcontentof5to10%.Suspendedsolidsslowlysettleleavingclearwaterbehind.Asthesolidssettle,thesuspensionbecomesdenserandparticlesinterferewitheachother.Thistransitionzoneextendstoadepthofafewmetres.Finally,whenthedensityreachesabout30%solids,repulsiveforcesbetweenclayparticlespreventfurtherdensification.ThedepositatthatstageisknownasmaturefinetailsorMFT.

  • B.8BasicTailingsfromExtractiontoMFT

    TheRockDoctorB.8BasicTailingsfromExtractiontoMFTPage28

    AweaksoilstructureformsinMFTandrepresentsthestartofsoilstrength.Initiallythedepositisextremelyweak.ThelowstrengthinearlyMFTisindicatedbythefactthatindividualsandgrainsbreakthroughitandaccumulateatthebaseofthedeposit10sofmetresbelow.

    Whensurfacewaterreachesasolidcontentof0.1%itcanberecycledtotheplant.(FineTailsFundamentalsConsortium(1995)pageIV74.)

    Matsofbitumenalsoaccumulateintheponddeposits.

    B.8.6Predictingthevolumeoftailings

    Tailingspersonnelareresponsibleforforecastingthevolumeoftailingssostoragefacilitiescanbeconstructedandreadytostoreexpectedtailings.

    Thevolumesofsanddepositsarepredictable,butthevolumeoffinetailingsisnot.ThevolumeofMFTisalargelyaresultofclay,andthewayitinteractswithwaterandthechemicalspresentinthewater.Extractionoperatorsdonotmeasuretheclaycontent.Theymeasurefinesthatcancontainfrom0%to100%claysizedmaterial.

    Theaccuracyoftailingsforecastmodels,thatdonotconsidertheamountofclaypresent,ortheextentofclaydispersion,ishighlysuspect.OtherindicatorsoftheMFTvolumecanbederivedfromhistoricaldata.AtSyncrudetheaveragevolumeofMFTproducedpercubicmetreofaverageoreis0.266cubicmetres.

    Atailingsforecastmodelwasdevelopedtoexploretrendsaffectingtailingsvolumes.FindingsaresummarizedinTableB.5below.AnelectroniccopyofthetailingsforecastmodelisinAppendixB.1.

    TableB.5Highlightsofinformationobtainedfromthetailingsforecastmodel:

    1. Oilsandextractioncreatestwotypesofwastedeposits:sanddepositsthataresolid,andfluidtailingsdepositsthatmustbecontained.Wastederivedfromaverageoreis75%sandand25%fluidtailings(MFT).

    2. Foraverageorethevoidspaceinthesandisalmostequaltothevolumeoffluidtailings.3. Finescaptureinthevoidspaceofsandisimportant:

    a. Finescapturedinthesanddisplacewaterandtherebyreducewaterloss.b. FinescapturedinthesandarenotavailabletomakeMFTinthepond.

    4. Lowgrade(highfines)oreyieldslessbitumen,createsconsiderablymoreMFT,consumesmorewater,andresultsinhigherheatlossthanhighgradeore.

    5. MethodsofreducingtheamountofMFTinclude:a. Reduceclaydispersionintheextractionprocess.

  • B.8BasicTailingsfromExtractiontoMFT

    TheRockDoctorB.8BasicTailingsfromExtractiontoMFTPage29

    b. Increasethedensityofthewasteslurrydischargedfromtheplant.c. IncreasethedensityofMFT.

    6. Heatlossisproportionaltotheamountofhotwaterdischargedfromtheplant.Itcanbereducedbydensifyingthewastedischargestream(captureandrecycleprocesswaterwiththecontainedheat).

    7. WaterlossequalstheamountofwatertrappedinsandvoidsandinMFT.Watersurplustothoseneedsisavailableforrecycletotheplant.Waterlosscanbereducedbydensifyingthedischargestream(notedin6above)andbyreducingthecreationofMFT(Item5above).

    8. Themodelforecaststhatmostoftheunrecoveredbitumenwillconcentrateinthepond.Bitumenfollowswatertothepond,andthewateristhenrecycled.

    9. IfMFTisdensifiedtoasolidstate,the%bitumenbyweightcouldriseto11%andthevolumeto17%.Iftailingsalsoincludesasphaltenes,theabovenumberscoulddouble.ThatsuggeststhatseriousconsiderationshouldbegiventorecoveringbitumenifMFTisreprocessed.

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    B.9TailingsDams

    B.9.1Introductiontotailingsdams

    Buildingcontainmentstructurestoholdfluidwasteisanimportantpartoftailingsmanagement.

    Tailingsdykesaremassivestructures.TypicaldimensionsofthetailingsfacilitiesareshowninTableB.6

    TableB.6Typicaldimensionsoftailingsdykes.

    Height 50to100metresCrestwidth 50+metresSideslope 1:4withgoodfoundations

    1:15overpoorfoundationssuchastheClearwaterFormationFootprint 1,500hectaresandabove

    Thedykesprovidespacetostoresand,sodimensionscanbequitegenerous.Atthestartofaprojectwasteisplacedonsurfaceuntilthereisroomtoplaceitinpit.TableB.7showshighlightsofthesurfacepondproposedintheShellJackpineapplication(AlbianSands,2003).TableB.7HighightsoftheJackpinesurfacetailingspond.

    Designlifeofactivephase 6yearsFootprint 1,600hectaresDykeheight 50mHoldingcapacity Fluidtailings 278millionm3 Beachedsand 171millionm3 Compacteddykes 115millionm3 Total 565millionm3

    Dykesareoftenconstructedofsandusingtheconstructioncellsdescribedearlier.Sandaccumulatesintheconstructioncellandiscompactedbydozers.Finegrainedmaterialremainsinsuspensionandflowstothetailingspond.

    FigureB.19showsatailingsdykeconstructedusingthecentrelinemethod.FigureB.20showstheupstreammethodofdykeconstruction.

  • B.9TailingsDams

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    Centrelineofdyke

    EngineeredFill

    Upstream Downstream

    MFT

    BeachedFillWaterCap

    Nativesoilfoundation

    FigureB.19.CrosssectionofatailingsdykeCentreline constructionmethod

    Starterdyke

    EngineeredFill

    BeachedFillWaterCap

    MFT

    Nativegroundfoundation

    StableBeachFoundation

    UncertainBeachFoundation

    FigureB.20CrosssectionofatailingsdykeUpstreamconstructionmethod

    StarterDyke

    Withcentrelineconstructionallmaterialdownstreamofthecentrelineisaccumulatedinconstructioncellsandcompacted.Materialplacedonthepondsideofthecentrelineispumpedontoabeach,butisnotcompacted.Materialthatisnotusedincellconstructionisdischargedontobeaches.

    Withupstreamconstructiontheexternalfaceofthedykeisconstructedofcompactedcellsand.Sandplacedonthepondsideisbeachedbutnotcompacted.Asthedykegrowshigherthecompactedfaceshiftsupstream.Eventuallythatplacesitaboveuncompactedbeachsands.Theadvantageoftheupstreammethodisalowercostandapermanentexternalfacethatisreadytobereclaimed.Thedisadvantageisapotentiallypoorfoundation.Thereisariskthatsanddepositedunderwaterwill

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    experienceliquefaction.Inaddition,thepoorfoundationmaypreventraisingthedykeabovethedesignlevelinthefuture.Dykeraisingiscommonwithoilsandtailingsponds.

    B.9.2Constructingwithoverburdeninsteadofsand Sometimesoverburdenorminewaste,insteadofsand,isusedtobuilddykes.FigureB.21Indicateschangesindesignthatarerequiredwhenoverburdenissubstitutedforsand.

    MFT

    Nativegroundfoundation

    Compactedsanddyke

    MFT

    CompactedOverburdenDyke

    Chimneydrain

    Beachbufferzone

    Nativegroundfoundation

    FigureB.21CrosssectionoftailingsdykeChangeindykedesignifthereisashortageofsand

    Nobeach

    Watercap

    Traditionalconstructionwithtailingssand

    ChangeifsandisrequiredforCT

    Constructionwithoverburdenismoreexpensivethanbuildingwithsand.Activitiesthataddtothecostofconstructingearthstructureswithoverburdenvs.sandaresummarisedinTableB.8.TableB.8Additionalcostsincurredwhenoverburdenisusedtobuilddykesinsteadofsand Earthdykesaremorecomplicatedthanthosebuiltofsand(Fig.B.21). Mustinspectandidentifysuitablematerialforconstructionattheborrowsource. Mustselectivelyloadconstructionmaterialfortransport.

    Transportingtheselectmaterialtotheconstructionsiteinvolves:

    extrahauldistanceand transportbytruckinsteadofbypipeline

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    Placematerialwhereneeded.Compactmaterial(probablybydriving400tontrucksoverit).Withnobeachtherewillnotbeanyfinescapture.ThatcouldincreasetheMFTby30%.

    Theaddedcostoftheprecedingstepscouldbeafewdollarspercubicmetreofconstructionmaterial.

    B.9.3Constructingretentionfacilitiesinpit.Dykesareneededtoseparatewastestoragefrommineoperationsinpit.FigureB.11.showedhowtailingsandminingworktogetheratSyncrude(Fair,2008).Notallwasteisfluid.FigureB.22illustratesthedifferenceinapproachusedtostorefluidwastevs.materialthatisstrongenoughtobeselfsupporting.

    FluidWaste

    Openminearea Dyke

    OpenMineArea Stackable

    solidwaste

    Figure B.22Showingdifferentcontainmentrequirements

    ToeBerm

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    B.10ProcessestodensifyMFTAppendixB.4describesSoilPropertiesandBehaviour.Itsupplementsinformationprovidedinthischapterandisrecommendedreading.Thenovicemaywishtoreaditbeforereadingthischapter.

    B.10.1DirecttreatmentprocessesMFTisaliquidthatwillrequireconfinementandsupportuntilitbecomesaselfsupportingsolid.FigureB.23summarizesthebehaviourofasuspendedsolidasthesolidcontentchanges.

    FigureB.23Relativevolumesofmineralsolidandwaterinfluidtailings

    DataplottedonFigureB.23Include

    1. Thesolidcontentincreasesfromlowvalueswithliquidlikepropertiesatthetopofthepagetosolidmaterialwithstrengthatthebottomofthepage.

    2. Horizontalbarsacrossthepagerepresenttherelativeamountofwaterandsolidcorrespondingtothesolidorwatercontentindicated.

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    3. Themiddlecolumndescribesbehaviourofasettlingsolidasitprogressesfromaliquidtoasolid.

    4. ThecolumnontherightdescribesmechanicalprocessesthatcanbeusedtodensifymaterialslikeMFTandindicatestherangeofeffectivenessofeach.

    5. Thecolumnontheleftshowsnaturalprocessesthatdensifysuspensions.ItalsoindicatesthewatercontentofMFTandthetargetforsolidMFT.

    Horizontalbarsrepresentthevoidratioofcorrespondingmaterial.Thevoidratioisdefinedasthevolumeofvoidsperunitvolumeofsolidmaterial.Thetopbarcorrespondstosuspendedsolidsenteringthetailingspond.Ithasasolidcontentof5%to10%andavoidratioof24.Thatmeans24volumesofwaterperunitvolumeofsoil.MFTisshown,withasolidcontentof30%andavoidratioof6.Thetargetmaterialforreclamationasasolidmaterialhasasolidcontentofabout30%andavoidratioofabout1.5.

    B.10.2BehaviourasMFTdensifiesMiddlecolumnbehaviourThemiddlecolumndescribesthebehaviourasamaterialchangesfromadiluteslurrytoasolidstrongmaterial.Atthetopofthechartparticlesexperiencefreesettlinginwater.Thenextstateishinderedsettlingasparticlesbecomemorenumerousandinterferewitheachother.Finallyatabout30%solidssettlingstopsbecauserepulsiveforcesbetweenparticlespreventadenserpacking.30%solidscorrespondstoMFTwhereasoilskeletonandthebeginningsofstrengthdevelop.Withincreasingdensity,strengthdevelopsandthebehaviourprogressesfromliquid,toplastic,tosolidbehaviour.Theliquidlimitandplasticlimitsdefinethewatercontentbetweenthosezones.

    B.10.3MechanicalprocessesThecolumnontherightofFigureB.23progressesfromgravitysettlingtomechanicalprocessesthatarelistedinorderofcapability.

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    ThickeneroperationsThickeneroperationusuallyinvolvesdilutiontoabout10%solidtoseparatesuspendedparticlesinalargediametertank.Aflocculentisaddedtodrawtheparticlesintoagglomeratesthatbehaveaslargerparticles.Gentlestirringbyrakesatthebaseofthethickener,sometimesaidedbysandaddition,andbytheweightofoverlyingmaterialforcingflockedmaterialtotheoutletinaconicalbaseaiddensification.Thenormalprocessingyieldsadensityofabout30%solids.Higherdensitiesarereportedbutmaybeduetotheadditionofsand.AsnotedinSection4.1ofAppendixB.4,addingsandaddstomassandtovolumebutnottostrengthatlowsandtofinesratios.Thetypicalresidencetimeinathickenerishalfanhour.IttakesafewyearstoachievethesamedensityinatailingspondTheadvantageofthethickeneristhatitrecoversprocesswater,withitscontainedheat,thatcanthenberecycledandreused.Anotheradvantageofthethickeneristhatitdensifiestheplantstailingsoutletstream.Thatenhancesfinescaptureinsanddeposits.ThecapturedfinesarenotavailabletomakeMFT.Superflocculatingagentsmayachievehigherdensitiesbutareapproachedwithcautionincasethepresenceofthesuperflocinreturnwateradverselyaffectsextraction.(Gu,2009).FilterbeltAfilterbeltisaporousbelt.Inoperationasandblanketisplacedonthebelt.Thenfinesaretreatedwithacoagulantandplacedontopofthesandblanket.Thecoagulantreleaseswaterfromthefines.Suctionappliedtothebottomofthebeltremoveswaterfromthematerialbeingtreated.Thesuctionforceisnotgreatbutitonlyhastoactonanarrowthicknessofmaterial.Filterbeltshavebeenproposed(FineTailsConsortium1995e)buthavenotbeenusedincommercialoilsandprocessing.Concerns:verylargeareasofbeltarerequiredtoprocesslargetonnagesoffines.Inaddition,bitumenfromextractioncouldeasilyclogthebelt.FilterpressAfilterpressexertsahighmechanicalforceonasmallareatocompresssolidsandforcefluidfromthem.Theyarerelativelysmallunitssohavenotbeenusedinoilsandprocessing.CentrifugetreatmentCentrifugesapplythousandsoftimestheforceofgravitytoextractfluidfrommaterial.Theoutletstreamsyieldssolidsatadensityofabout60%.Theotherstreamyieldswater,bitumen,andaminoramountoffines.

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    Centrifugesareusedextensivelyinoilsandfrothtreatment.TheyhavenotbeenusedcommerciallytoprocessMFT.Centrifugeshavebeensuccessfullypilotedindemonstrationplants(Fair,2008)(Loganet.al.1984).However,testingatfullscaleisneededtoproperlyevaluatethepotentialofthistechnology.BruteforceheatingThehighestlevelofmanmadedensificationinvolvesbruteforceheating.Itistooenergyintensiveandexpensivetoconsider.Theprecedingtechnologiesofferaprogressiveapproachtodewateringfines.Twocautions:

    Sandadditioncanaddtodensitywithoutaffectingstrengthandneedstobeunderstood. Chemicalaidscanlowertheliquidlimit,andinturnchangesolidcontentatthetargetstrength.

    B.10.4Naturalprocesses.TheleftcolumnofFigureB.23showsnaturalprocessesthatdensifyfines.SedimentationDilutesuspensionsaredensifiedbynaturalsettlementandsedimentation.Asettlingparticlepassesfromadilutesuspensionwhereitisunaffectedbyneighbours,toatransitionzonewhereotherparticleshindersettlement.Whenthedensityreaches30%solidsinterferenceandrepulsiveforcesbetweenparticleshaltfurthersedimentation.ThatmaterialisknownasmaturefinetailsorMFT.ConsolidationConsolidationprocessesaredescribedinSection6ofAppendixB.4.CurrentmethodsofplacingMFTdonotaidconsolidation.Itisnotlikelytoworkintimeunlesssupplementedbywickdrains.SuctionprocessesNaturalprocessesarecapableofexertingsuctiontodensifyadepositofMFT.Underidealconditions,suctionashighas10atmospherescanbeexertedthroughdrying,hydroponics,freezethaw,orbyaddingdryswellingclay.Applicationofsuchlargeforcesisenoughtocompressafinegrainedsoiltoadense,strongstate.Dryingtreatmentinvolvesremovingsurfacewaterandlettingtheexposedsoliddryout.Thetreatmentisasurfacephenomenonsoonlythinlayers(e.g.20cmthick)canbetreatedandrepeatedthroughthe

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    summer.Thesiteisslopedtofacilitatesurfacedrainage.Largeareasarerequiredtotreatlargequantities.Hydroponicsinvolveusingplantstoexertsuctiononadepositoffines.TheplantscanprocessadeeperprofileofmaterialbutarestilllimitedbythinsurfaceeffectsandtheverylimitedgrowingseasoninFortMcMurray.Whenasoilfreezeswaterisattractedtothefreezingfrontwherepureiceforms.Thesuctionexertedoverloadsandcollapsessoilstructure.Whenthematerialthaws,icemeltsandthewaterisdrainedoffbeforeitcanbereassimilatedinthesoil.Asignificantthicknessofmaterialcanbetreatedbyfreeze/thawiftheprocessesisrepeatedontopofapreviouslyfrozenlayer.Thelimitofhowmuchcanbetreatedperyearisprobablyrelatedtohowmuchcanbethawedthefollowingsummerseveralmetres.Dryswellingclaywouldliketoabsorbmoremoisture.IfblendedwithMFTitwillextractwateruntilthewatercontentofthetwomaterialsreachesastateofequilibrium.Thedryingcapabilityofthistechniqueisquitehigh,anddryswellingclaysareabundantinoverburdeninthemineableoilsandsarea.Thisprocessisnotasurfacephenomenonsocanbeappliedtoanythicknessofmaterial.Themainapplicationfordensificationbyblendingwithswellingclaymayberemovingthelastbitofwaterrequiredtomeetstrengthtargets.Theprecedinglistshowsmechanicalandnaturalprocessesthatcandensifyfines.Itisunlikelythatmechanicalprocessesalonewillbeabletoachievethedensitydesiredforsolidwaste.Naturalprocesseswillhavetobeusedasthefinishingprocess.Thesodiumadsorptionrationofmaterialproposedfortreatmentbysuctionbasedprocessesthatrelyonnaturalwaterrunoff.(seeAppendixB.4).Soilswithahighsodiumadsorptionratioarehighlyerosivesowilltendtoberemovedbyrunoffwater.ItisunlikelythattherewillbeoneSilverBullettomeetalldensificationneeds.Itismorelikelythataprogressionofprocessesshouldbeusedwitheachworkinginthezoneinwhichtheyaremosteffective.

    B.10.5MixturesPasteandCT

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    ThissectiondescribedcombinedprocessesthatareusedtodensifyMFT

    Pasteisablendofcoarseandfinegrainedtailingsmaterial.Pasteisnonsegregatingoverarangeofmixesandthatpropertyisusedtoadvantageintransportation,depositionandconsolidationoftailings.

    Theuseofnonsegregatingmixesischangingtailingspractice.CTisanonsegregatingmixandisdescribedbelow.

    TheCTprocesswasdevelopedattheUniversityofAlbertainthelate1980s(Caughilletal.,1993).Itmeetstheminersdreamofcreatingaproductthatcanbepumpedtothedisposalsite.AtthedisposalsiteCTreleasessurpluswaterandconsolidatestoasolidstatesuitableforreclamation.Atleastthatswhatoperatorshopewillhappen.

    SomeoperatorsusevariationsofCTandcallitNonSegregatingTailsorNST.Theprocessesaresimilar.

    CTiscreatedandusedasfollows:

    MFTistreatedwithacoagulant(gypsum)andthenblendedwithsand. Theblendcreatesanonsegregatingmixforsandtofinesratiosovertherangeof3to6. Theresultingslurryisanonsegregatingblendthatcanbepumpedtoitsdisposalsite, Atthedisposalsiteitflowstoitsfinalrestingplace,againwithoutsegregating, Inplacethedepositslowlyreleasesexcesswater.Initiallyitreleasesexcesswater,andthen

    waterreleasedbyconsolidation.

    Afivemetersurchargeofsandisappliedatsurfacetoaccelerateconsolidationandtoprovidedesiredstrengthintheupperlayers.

    Intime,thedepositconsolidatestoastrong,selfsupportingsolid.

    TableB.9showstherelativevolumesassociatedwithCTmanufacture.

    TableB.9RelativevolumesintheCTmakingprocess

    Parameter Volumem3

    SolidContent

    Sand/finesratio

    Timetoconsolidate

    MFT 1.00 30%

    Sand 1.27 72%

    CTslurry 2.27 57% 4.5

    CTdeposit 1.27 80% 4.5

    Waterrelease 1.0

    Estimatedtimetoconsolidate

    4.0 10years

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    Estimatedtimetoconsolidate

    5.0 5years

    CTdepositsarefluidsorequirecontainmentforseveralyearsuntiltheyconsolidatetobecomesolidselfsupportingdeposits.

    DespitemanyyearsofcommercialusethathasproducedtensofmillioncubicmetresofCTtheprocessisstillunderreview.Apparentlyoperatorshaveexperienceddifficultymaking,transportingandplacingonspecCT.AccordingtoHoulihanet.al.(2008),after10yearsofcommercialuse,Suncoronlyachieved20%ofplannedproductionin2005.

    TheCTprocessisanimportantpartofmanycommercialapplications.However,thereisaseverelackofpublicinformationabouttheresearchbehindtheconcept,howitissupposedtowork,thetargetstrengthforprocessedmaterial,operatingperformance,whatsuccessindicatorsarebeingused,andtheprobabilityofsuccess.

    AzamandScott,(2005),developedaTernaryDiagramtomapthebehaviourboundariesofanonsegregatingmix.Itisathreedimensionalplotofsand,finesandwatercomponentsillustratedonFigureB.24.

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    BoundariesthatcanbemappedontheTernarydiagraminclude:

    Thesandmatrix, Thefinesmatrix, Wheresedimentationoccurs, D=segregatingvs.nonsegregatingmixes, Pumpablevs.nonpumpablemixes, Saturatedvs.nonsaturatedmixes.

    ForCTmanufacturetheboundaryofgreatestinterestistheboundarybetweensegregatingandnonsegregatingmixes.Thatdefinesasmixofmaterialsthatcanbepumped,depositedandallowedtoconsolidate.TheTernaryDiagrammaybeanoversimplificationofmaterialproperties.Anewchartisneededwhenevertheclaycontentorclayactivitychangesinthefinesrepresented.TableB.10summarizesconcernswiththeCTprocessingoption.TableB.10ConcernswiththeCTprocessingoption

    Demandexceedssandsupplyo Thedesiredsandtofinesmixis4and5.o Thesandtofinesmixoforeaveragesbetween4and5.o Anoperatingefficiencyof100%wouldberequiredtoprocessallMFT.o AsupplementalsourceofsandwillbeneededtotreatthestrandedMFTinventoryor

    Requireanotherprocesstofinishthejob. CTrequirescontainmentuntilitconsolidates.Containmentisexpensive. AttemptstoassignallsandtoCTproductionarecounterproductive

    o Requiresdykeconstructionwithoverburdenmuchmoreexpensiveo LosebenefitoffinescaptureinsandthatmayincreaseMFTmakeby30%o Losesafetyfeaturesthatbeachesaddtoretainingstructures.

    CTperformanceafter10yearsofcommercialoperationhasnotbeendisclosed. Sulphateadditionmaybefoodforbacterialactionundesirable. Concernsthatthetreatmentisreversiblehavenotbeenansweredinpublic.

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    B.11StoringMFTunderawatercap

    B.11.1 Permanentstorageunderawatercap

    In1992SyncrudeproposedtosolidifyMFTusingCTtechnologyandtopermanentlystoresurplusfluidtailingsunderawatercap.

    Severalearlypapersdescribetheconceptandstudiesundertakentoconfirmitssuitability.(Nixetal,1988),(Boergeretal,1990),(MacKinnonetal,1991),(Boergeretal,1992),(Gullyetal,1993),(MacKinnonetal.,1995),Thepapersarefoundindiversepublications.Mostoftheauthorsarecloselyrelatedtoprojectsthatstandtobenefitfromthepractice.

    AkeyrequirementnotedintheearlypapersisthatthereshouldbenomixingbetweentheMFTandtheoverlyingwatercap.Thepapersexploredpossiblemixingbytheactionofsurfacewaves,andthedesigndepthofthewatercapwassettoat9metrestopreventsuchmixing.Theresearchersconcludedthatgasevolutionfrombiologicalactivitywasunlikely!Inthemid1990smethaneproducingbacteriabecameactiveinSyncrudesMildredLakeBasinandvigorousbubblinghasbeenongoingsince.Limitedresearchrecognizethebacterialactivityandnotethatitcouldaffecttheviabilityofthepermanentstoragescheme.(Holowenko,2000),(Li,2008).Differentbacteriaareactive,consumingdifferentfood(naphtha(solventloss),sulphate(usedinCT),andsodiumcitrate(addedatAlbianSandstoaidextraction).Theauthorwasunabletolocatepublicationsthatshowwhygasreleasefrombacterialactionshouldnotbeaconcern.SyncrudeshowedtheviabilityofstoringMFTunderawatercapinsmallpits.Thedemonstrationpitsprecededbiologicalactivity.AfullscaletestisplannedintheSyncrudebaseminelakestartingin2012.TheexperimentwillinvolveplacingprocessaffectedwaterontopofMFTandobservingbehaviouroverthenextdecade.Furtherdetailshavenotbeendisclosed.Themostrecentpublicationontheendpitlakeconceptprovidesanupdateontheconceptandresearch(ClearwaterConsultants,2007).ThepaperquotedSyncrudereferencesextensively.Itnotesthatitmaybedecadesorlongerbeforetheendpitlakewillqualifyforareclamationcertificate.Itdidnotevenmentionbiologicalactivityorstandardsthatgovernsafelocationsforperpetualstorageoffluidwaste.Thosefactorsreallyneedtobeaddressed.OneaspectofasuggestedguidelineforsafesitesforpermanentstorageoffluidtailingsisprovidedinFigureB.25.

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    Sethisuggeststhatthatongoingbubblingrepresentsastateofflux.Hesuggeststhatbacteriashouldbeputintoadormantstate.(Sethi,2009).

    FigB.25Suggestedoffsettoprotectagainstlongtermgullyexposure

    BaseLevel 1o

    Containment

    Reclaimedcap

    WeakTailings

    Protectedzone

    Vulnerablezone

    Challenges:

    1. Thereisnopublicdocumentationoncriteriaforasafesurfacestoragesitetoholdcontaminatedfluidinperpetuity.Twosuggestionsforsiteselection:

    a. Mustnotbelocatedonasitewheregroundwatercoulddischargeatsurface.MostlocationsneartheAthabascaRiverarepotentialgroundwaterdischargesites.

    2. Thesiteshouldbesafefromfutureexposurebyerodinggullies.AsuggestedsafegeometryIndicatedonFigureB.25.FluidshouldnotbestoredabovealineslopingupwardfromanadjacentstreamorfromtheAthabascaRiverbaselevel.Theinclinationoftheslopinglineshouldbesetbequalifiedprofessionals(geographers,engineeringgeologists)andtheirviewofthepotentialforlongtermgulleyerosion.Theauthorsuggeststhatinsandysoiltheexpectedslopeshouldbe1%orless.

    3. Thereislimitedpublicpeerrevieweddocumentationdiscussingtheconcept,ofrecentverificationprograms,orofcontingencyplans.

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    4. Biologicalactivityinthefluidtailingsemitsconsiderablegascapableofmixingfluidtailingswithoverlyingwater.Littleifanypublicdisclosureoffieldperformanceandwhydevelopersconsiderthistonotbeaproblem.Canweevenpredictfutureperformanceaslongasgasemissionsareongoing?

    5. Waterreleasefromconsolidationhasbeentakingplacefor40years.Ithasapparentlyincreasedbyordersofmagnitudesincethebiologicalreleaseofgasesshortenedthedrainagepathforreleaseofconsolidationwater.Thereislittleifanypublicinformationontherateoffluidemissionsfromfluidtailings.

    6. In1992SyncrudeproposedtosolidifyMFTusingCT.Sincethentheyhaveonlytreated10%oftheMFTcreated.Whathappenedtotheoriginalpromise?

    7. RegulatorshavenotapprovedpermanentstorageofMFTunderawatercap.Insteadtheyhaveadvocatedasolidtrafficablelandscapeinstead(Houlihanetal,2008)

    8. Thereisnopublicinformationonhowfinancialassuranceisbeingprovidedtoensurethatstrandedfluidtailingswillbesatisfactorilydealtwith.ThetopicrequiresdisclosurebecausethelargestownerofSyncrudeisaTrustwithnoothersourceofincometofundreclamationobligations.

    B.11.2EndpitlakeAttheendofoperationsthelastmineopeningwillbeusedasanendpitlake.Runofffromsitesurfaceandgroundwaterwillbedirectedtotheendpitlake.Accumulatedwaterwillbemonitoredforquality,priortodischarge.OperatorsalsoplantopermanentlystoreMFTinthebaseoftheendpitlake.

    Itcouldbeseveraldecadesbeforethewaterintheendpitlakewillbereadyforrelease.(ClearwaterConsultants,2007).

    Thereislittlepublicinformationabouttheendpitlakes.Keyconcerns:

    Whenwilltheconceptbesharedwithpublicstakeholders. Whatistheexpectedquantityandqualityofwaterthatwillenterthelakes. Whatstoragecapacitywillberequiredtoholdrunoffuntilwatercanbedischarged?Creating

    storagetohandledecadesofrunoffaforecastbyClearwaterConsultantscouldbeaseriouschallenge.

    Arethereplanstotreatwateriftheendpitlakesdonotselfcleanse? Whatarethecontingencyplans? Howdowefundclosureoperationsandcontingencyplansthatwilltakeplacedecadesafterthe

    Operationsandincomeareover.

    Theendpitlakeproposalappearstobeahighriskoption.AddingMFTstoragetothebaseofthelakeaddsanunnecessarycomplication.

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    B.12Worldwidetailingsmanagementpractices.

    Itisinstructivetoexplorehowtheworldwideminingmanagestailings.

    ThekeynoteaddressatPaste08,anannualinternationalminetailingsconference,presentsanunflatteringsummaryofcurrentinternationaltailingsmanagement.(Bogeret.al.,2008).Highlightsofthekeynoteaddressfollow:

    Themineralsindustryistheworld'slargestproducerofwaste. Therehavebeensignificantimprovementsinthickeninganddewateringtailingsthatofferand

    potentialsavingsinreclamationandenvironmentalmanagementcosts. However,anemphasisonexpendituredeferralpromoteslowcapitaltailingsdisposalsolutions. Tailingsstoragefacilitiesallowwastestorageforalongperiodoftimewhiledeferring

    expenditureonreclamationuntiltheendofmining. Alargepartoftheindustrystillcontinuestopumplowdensitymaterialtoverylargedisposal

    dams.Thedamsgetbiggerandbiggerandrepresentasignificantrisk.Theyalsorepresentasignificantcostwhenthetimecomestoreclaimthem.

    Concernswithtailingsdamsincludeatendencytoleakandapotentialforcatastrophicfailure.Twostandardsgovernfinancialreportingrequirements:"USbasedFinancialAccounting

    Standard143:AccountingforAssetretirementObligations(SFAS143)andtheInternationalAccountingStandard37:Provisions,ContingentliabilitiesandContingentAssets(IAS37).Bothstandardsrequirethatreclamationliabilitiesberecognizedonthebalancesheetassoonastheliabilityisincurred,andfortheamounttobediscounted.InadditionSFAS'43requirestheestimatebeincreasedbythetheoreticalcostofsettlingtheliabilitywithathirdpartyinordertoestablishamarketvaluefortheliability.

    o Generallyfuturereclamationliabilitiesarecomputedasfollows:o Thefuturecostofreclamationisdeterminedbyinflatingcurrentcoststothefuturedate

    whenreclamationmightoccur.o Thefuturecostisthendiscountedbacktotodaybyapplyingasignificantdiscountrate

    eachyear.o Discounting,overthelongtimeframetypicalofminingventures,reducesthe

    reclamationliabilitytoanegligibleamount.o Discountingisasystematicbiastowardshorttermprofitability.o Historically,industrywideenvironmentalimprovementshavebeenachievedthrough

    mandatingrequirementsviaregulation."

    TableB.11summarizessomesideeffectsofdiscountingoverlongperiodsoftime.

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    TableB.11Effectofdiscountingoverlongperiodsoftime.

    Discountingseverelyreducestheapparentcostoffuturereclamationliabilities;Discountingjustifiesdeferringreclamationandmaximizingshorttermprofits;Reducingthecostoffuturereclamationliabilities:

    o Reducestheneedtosetfundsasidetomeetfutureobligations,o Reducestheneedtoverifythefeasibilityofreclamationandclosureplans,o Reducestheincentiveforresearchtofindabetterapproach,o Createsfalseshorttermprofitsthatrewardthosewhomanagethediscountdeception.

    Buildinglargeinventoriesoffluidtailingscreatesriskof:o Accumulatinglargerandlargerliabilitiesthatwillhavetobedealtwithinfuture,o Increasesriskofseepageorcatastrophicfailure,o Thedeveloperbeingunabletopayforthereclamation,o Accumulatedliabilitiescauseaprematurehalttooperationsiftheyexceedfuturevalue,o Untestedreclamationplansmaynotbefeasible.

    ThecurrentapproachiscontrarytotwounderlyingprinciplesoftheAPEAAct(Alberta,1993): FailuretodisclosereclamationtechnologyandplanspreventsAlbertansfromproviding

    inputtoreclamationdecisions. Deferredreclamationtransfersreclamationliabilitiestofuturegenerations.

    Theprecedingactionsarenotwhatthepublicexpectsofresponsiblemanagement.TableB.12summarizessideeffectsofbookingreclamationastheyoccur.TableB.12EffectofbookingreclamationliabilitiestheyoccurbyfundingaQET.

    PlacingfundsofequivalentvalueinaQualifyingEnvironmentalTrust:o Recognizesreclamationliabilitiesastheyoccuro Discountingcannotreducethevalueoftheliabilityo Theproceduresetsfundsasidetopayforfuturereclamationactivities.Itdoesnottransfer

    liabilitiestofuturegenerations.o Reducesthedeveloperscostofreclamation.QETfundingisanoperatingexpensethat

    triggersfiscalsharing.Inthehighlytaxedoilsandsindustrythataverages50%.o Createsanincentiveforprogressivereclamationasithasbeenpaidfor.o Progressivereclamationreducesstockpiledtailingswiththeassociatedrisks.o Progressivereclamationreducestheneedforfinancialassurance.

    Withthevalueoftheliabilityretained:o Thereisastrongincentivetoverifyreclamationandclosureplansandtheircosts.o Thereisanincentivetoinvestinresearchtoimprovereclamationandclosureplans.

    TheprecedingactionsarecompatiblewiththeintentionsoftheAEPEAAct. Theprecedingactionsarecompatiblewithpublicexpectationsofresponsiblemanagement.

    OilsandindustryoperatorscouldimprovetheirimagebyadoptingtheconceptsbehindTableB.12.

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    B.13.1IntroductionThissectionexploreswhatisinvolvedinscreeningtailingstechnologies.Topicsinclude:

    Characteristicsofmineableoilsandprojects Typicalstepsinvolvedinscreeningtechnologyoptions Typicalapproachestoeconomicanalysisandtheimplicationstothescreeningprocess Examples Conclusionsandrecommendations AboutQualifyingEnvironmentalTrusts Assigningcoststofuturereclamationobligations

    B.13.2CharacteristicsofoilsandprojectsMineableoilsandprojectshaveuniquecharacteristicsthataffecttheappropriateapproachtoeconomicscreening.TableB.13summarizessomeimportantcharacteristicsofoilsandprojects.TableB.14showsthetimelineforsiteuse.TableB.13CharacteristicsofmineableOilSandProjects Largesize, Longprojectlife(upto100years), Largereclamationliabilitieslinkedtoproduction:

    - Landdisturbance,- Fluidtailings,- Closurecosts.

    Longtimebetweenwhenareclamationliabilityiscreatedandwhenitisdealtwith:- Fluidtailingscurrently25to40+years,- Landreclamationcurrently30to40+years,- Closureactivities50to100years.

    Complex fiscal terms that involve capital cost allowances, Alberta royalty, Alberta and Federalincometax,andfiscalsharingofprofitsandexpenditures.Afterpayout,between45%and56%ofprofitandexpensesisdirectedtogovernments,

    Ahighproject rateof return isneeded to justify the initial investment and to support the fiscalterms.

    TableB.14Typicaltimelineforsiteuse

    Year Landuse02 Sitepreparation220 Openpitmine2030 Siteoccupiedbytailingspond

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    3040 Solidifytailings4050 Reclaimsurface100 Siteclosure

    InformationinTables1and2wasderivedfromFair,(2008);Syncrude,(2006);andSyncrude,(2007).Itshowsthatreclamationoftailingsanddisturbed landscanbedelayedby20to50years.Italsoshowsthatclosureactivitiescanbedelayedbyupto100years.

    B.13.3.Stepsusedtoscreentechnologyoptions StepsinscreeningtailingstechnologiesareoutlinedinTableB.15.

    TableB.15Typicalstepstoscreentechnologyoptions.1. Establishgoalsfortheprojecte.g.

    Reclaimtailingsasasolidlandscape. Qualifyforareclamationcertificatewithinafewdecadesafteroperationscease.

    2. Identifycandidateoptionsthatwillachievethosegoals.3. Foreachoption:

    a. Identifyplanstousetheoptionthroughdevelopment,operationsandclosure.b. Identify full lifecycle capital and operating costs associated with the above. (If we are

    comparingoptionsweonlyneedtoidentifycostdifferences.)c. Conductaneconomicassessment.d. Appraisetheprobabilityofsuccess.

    4. Choosetheoptionthatwillmosteconomicallymeetprojectgoals.Projectsspendconsiderableeffortexploringtheviabilityofdifferenttechnologiesandtheprobablecostvs.time.Equivalenteffortshouldbespentevaluatingtheeconomicevaluationprocessbecause itcanhaveamajoreffectontheoutcomeofscreeningstudies.

    B.13.4CharacteristicsofeconomicanalysisEconomicevaluationsappraisethecashflowoverthelifeofaproject.Theyconvertfutureexpendituresto today by applying discounts. All economic evaluations apply some form of discounting to futureincomeorexpenditurestoconvertthemtopresentvalue.FigureB.26shows theeffectofdiscounting todetermine thepresentvalueof futureobligations.Theplotshowsarapiddropinvaluewithtime.Lossisgreatestwhenhighdiscountratessuchas20%or30%areappliedoverlongperiodsoftime.Theyreducethevalueoffutureobligationstonearzeroin20to30years.TraditionaleconomicevaluationoftailingsoptionswouldcombinethetrendsofFigureB.26(effectofhigh discount rates)with the trends of Table B.13 (long time spans). The combination significantly

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    reducesoreliminatesfutureexpenditureobligations.Thatmeansthatdecisionsaboutthesuitabilityoftailingsoptionsaremadewithoutconsiderationoffutureexpenditureobligations.

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

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    100%

    1 11 21 31 41 51 61 71 81 91

    Residu

    alvalue

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    FigureB.26EffectofDiscountFactorandTime

    30%Discount

    20%Discount

    10%Discount

    5%Discount

    2%Discount

    TableB.16liststhreeapproachestoeconomicscreeningthatwereusedtoevaluatetailingsoptionsinPartAofthisreport.TableB.16Threeeconomicscreeningmethodsusedtoevaluateoilsandtailingsoptions.

    1. Comparetheundiscountedcostdifferencesvs.timeforeachoption.2. Comparetheundiscountedcostdifferencesvs.timeconsidering:

    a. Costvs.timeasinmethod1above.b. Recognizethevalueofreclamationobligationsastheyarecreated.c. Deposit an amount equivalent to the reclamation liability as it is created in a Qualifying

    Environmental Trust as reclamation liabilities are incurred. Funds can be withdrawn asreclamationisundertaken.

    3. Finally, compare leading contenders in a project economic model that duplicates the projectfinancial environment. Themodel considers all applicable fiscal terms such as Alberta royalty,capitalcostallowances,andincometax.

    Netpresentvaluecomparisons isoftenused insteadofundiscountedcosts.Netpresentvalueanalysisappliesdiscounting.AsFigureB.26showsdiscountingoverlongperiodsoftimedistortsanddiminishes.thevalueoftheparameterunderstudy.Discountingdoesnotreducefutureobligations ifmethod2.caboveisused.PlacingfundsinaQualifyingenvironmentalTrustretainsthevalueofthereclamation.

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    Method three is required to verify that the conclusions of simple screening test still apply to thecomplexfiscalenvironmentthatappliestooilsandsprojects.AppendixB.1 contains electronicmodels that allowuser input to evaluate technology andoperatingoptions.Modelsandspreadsheetsinclude: A spread sheet for each tailings technology studied in Report A. Information includes material

    balances, siteactivity,work, capitalandoperating costsvs time foreach technology.Capitalandoperatingcostsaresuggestedbuttheusercaninputtheirownvalueforcapitalandoperatingcostsifdesired.Technologiesarerankedbycomparingtheunitcostofprocessingonecubicmetreofore.

    A fullprojecteconomicmodel isprovided. Itaddresses royalty,capitalallowances,provincialandfederal income tax to represent thecomplex fiscalenvironment thatoilsandprojectsoperate in.Tailings technologiesare comparedbyentering technology specific capitalandoperatingcostsvstimeinthemodelwhileotheraspectsofthebusinessareheldconstant.Comparisonoftheoverallproject rateof return foreach technology indicateseconomicperformance. Inputparametersaresuggestedbutthemodelallowsuserstoinputtheirowndataifdesired.

    Atailingsforecastmodelisprovided.Itallowsuserdefinedinputtoevaluatetheeffectofdifferentmaterialoroperatingparametersontailingsoutput.

    Themodelsandspreadsheetsshowtrends.Theyareprovidedtohelptheuserunderstandtherationaleused toappraise thedifferent tailings technologies.Themodelsshouldalsohelp theuserunderstandthemanyinteractionsinvolvedinevaluatingtailingsperformance.

    1.

    B.13.5ResultsofscreeningstudiesScreeningtailingstechnologiesFigures A.19 and A.20 from Section A of this report are repeated below. They show the effect ofscreeningcostdifferencesusingundiscountedunitcosts.Netpresentvaluecomparisonyieldsthesametrendsifmethod2.CofTableB.16isused(fundaqualifyingenvironmentaltrust)

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    $

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    FigureA.19CostDifferencesBetweenTailingsTechnologiesComparescostsforcapital,operations,relatedtoearthwork,

    tailingsandheatloss.

    HeatLossCosts

    TailingsCosts

    EarthCosts

    OperatingCost

    CapitalCost

    BaseCase=conventionaloilsandsplantthatmakesMFTT1 ThickenerwithoutcyclonesT2 Thickenerwithcyclones

    CT2 CTPlantprocessingoreandfinesderivedfrom theoreprocessedCent=inplantcentrifugecreating"solidwaste"

    Figure A.19 compares undiscounted unit cost for the different tailings technologies. Environmentalcostsarenot includedbecausetraditionaleconomicanalysisdiscountsthemthetrivialamounts.Thismethodfavoursoptionsonthe leftthatpostponespending,stockpilefluidtailings,and insodoing,transferenvironmentalobligations to futuregenerations.The favoured technologiesdonotpreparetheprojectforclosure.

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    FigureA.20CostDifferencesBetweenTailingsTechnologiesConsiderskeylifecyclecosts

    ClosureFund

    WaterTreatmentFund

    MFTReclamation

    LandReclamation

    HeatLossCost

    TailingsCost

    EarthCost

    OperatingCost

    CapitalCost

    BaseCase=conventionaloilsandsplantthatmakesMFTT1=ThickenerwithoutcyclonesT2 Thickener withcyclones

    CT2 CTPlantprocessingoreandfinesderivedfromoreprocessedCent=inplantcentrifugecreatingsolidwaste

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    The Rock DoctorB.13ScreeningTechnologyOptions Page52

    FigureA.20comparesundiscountedaverageunitcoststhatrecognizereclama