Thousand Death Cuts - Pembina Institute · 2007-05-02 · iv DEATH BY A THOUSAND CUTS CPAWS / THE PEMBINA INSTITUTE Death by a Thousand Cuts Using FSC-certified paper is an easy and

RICHARD SCHNEIDER • S IMON DYER

August 2006

IMPACTS OF IN SITU OIL SANDS DEVELOPMENT

ON ALBERTA’S BOREAL FOREST

ThousandCutsDeath

by a

SANDSFeverOil

S E R I E S

Death by a Thousand CutsImpacts of In Situ Oil Sands Developmenton Alberta’s Boreal Forest

T H E P E M B I N A I N S T I T U T E / C P A W S D E A T H B Y A T H O U S A N D C U T S i

Richard Schneider • Simon Dyer

August 2006

ii D E A T H B Y A T H O U S A N D C U T S C P A W S / T H E P E M B I N A I N S T I T U T E

ii About the Canadian Parks and Wilderness Society

About The Pembina Institute

Death by a Thousand Cuts

The Pembina Institute createssustainable energy solutions throughresearch, education, advocacy andconsulting. It promotes environmental,social and economic sustainability in thepublic interest by developing practicalsolutions for communities, individuals,governments and businesses. ThePembina Institute provides policy

research leadership and education onclimate change, energy issues, greeneconomics, energy efficiency andconservation, renewable energy andenvironmental governance. Moreinformation about the Pembina Instituteis available at www.pembina.org or bycontacting [email protected]

The Canadian Parks and WildernessSociety (CPAWS) is Canada’s grassrootsvoice for wilderness. The EdmontonChapter works to maintain biodiversityand wilderness in Alberta through theestablishment of protected areas and theimplementation of industrial practicesthat are sustainable for nature,

communities, and the economy. We have approximately 3,000 members led by a volunteer board of directors. More information aboutCPAWS Edmonton is available at www.cpaws-edmonton.org or bycontacting [email protected].

T H E P E M B I N A I N S T I T U T E / C P A W S D E A T H B Y A T H O U S A N D C U T S iii


iii AcknowledgementsWe thank the Hewlett Foundation andthe Richard Ivey Foundation for theirsupport of this report. We also thankDan Woynillowicz, Chris Severson-Baker, David Dodge, Harry Stelfox,Wally Friesen, and Terry Osko for theirinsightful feedback and comments onthe report and Matthew Smith for hisassistance with GIS.

Death by a Thousand Cuts: Impacts of insitu oil sands development on Alberta’sboreal forest

1st Edition, published August 2006Printed in Canada

Authors: Richard Schneider,Simon Dyer

Editor: Randee Holmes

Production Manager: David Dodge

Design and Layout:J&W Communications

Illustrations: Richard Schneider, J&W Communications and as credited

Photography: Richard Schneider,David Dodge

Cover Photo: OPTI-Nexen plant south of Fort McMurray photo by David Dodge © 2006The Pembina Institute and insetphoto by © 2005 Google Earth, © 2006 Digital Globe.

Back Cover: Both satellite photos © TerraServer.com

© 2006 The Pembina Institute and the Canadian Parks and WildernessSociety, Edmonton

ISBN 0-921719-83-31st Edition v1.0-06-07-18

The Pembina InstituteBox 7558Drayton Valley, Alberta T7A 1S7

Phone: 780.542.6272E-mail: [email protected]

CPAWS EdmontonP.O. Box 52031Edmonton, Alberta, T6G 2T5

Phone: 780.432.0967E-mail: [email protected]

Additional copies of this publication may be downloaded from

www.pembina.org,www.oilsandswatch.org orwww.cpaws-edmonton.org.

iv D E A T H B Y A T H O U S A N D C U T S C P A W S / T H E P E M B I N A I N S T I T U T E


Using FSC-certified paper is an easy and highly visible way to showenvironmental leadership. The FSClabel guarantees that the paper we’reusing has been responsibly harvested.No clear cutting on stream banks. No cutting in sensitive areas. And this is just the beginning. Go tofsccanada.org for details. FSC is theonly program endorsed by WWFCanada, National Aboriginal ForestryAssociation, ForestEthics, Greenpeaceand the Sierra Club of Canada.

This book was printed atgrafikom.Speedfast, the first FSC printing company in Alberta. grafikom.Speedfast has been andcontinues to be thoroughly audited by SmartWood, a program of theRainforest Alliance.

This book is printed on ForestStewardship Council (FSC) certified paper that is produced with the world’s highest standards for environmentally and sociallyresponsible forestry practices.

This book is printed on chlorine-freepaper made from 25 percent post-consumer fibre. In choosing thispaper, The Canadian Parks andWilderness Society (CPAWS) and The Pembina Institute saved4,168 litres of water, conserved 1.1 trees and diverted 43 kilograms of waste from Alberta landfills.

The Canadian Parks and WildernessSociety (CPAWS) and The PembinaInstitute recognizes the importance of sustainability.

iv Environmental Statement

PRINTED ON RECYCLED PAPER

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Cert no. SW-COC-1383

T H E P E M B I N A I N S T I T U T E / C P A W S D E A T H B Y A T H O U S A N D C U T S v

Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .vii

Summary of Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .x

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

1 Case Study: The OPTI-Nexen Long Lake Project . . . . . . . . . . . . . .31.1 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31.2 Exploration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41.3 Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61.4 Processing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7

2 Regional Environmental Impacts . . . . . . . . . . . . . . . . . . . . . . . . . . .92.1 Cumulative Impacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .92.2 Environmental Effects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12

2.2.1 Caribou . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .142.2.2 Furbearers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .152.2.3 Forest Birds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .162.2.4 Other Environmental Impacts . . . . . . . . . . . . . . . . . . . . . .17

3 Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .193.1 Policies and Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19

3.1.1 Protected Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .203.1.2 Protection of Private Lands . . . . . . . . . . . . . . . . . . . . . . . .213.1.3 Regional Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .223.1.4 Cumulative Effects Thresholds . . . . . . . . . . . . . . . . . . . . . .253.1.5 Coordination of Operational Planning . . . . . . . . . . . . . . .263.1.6 Requirements for Lease Evaluation . . . . . . . . . . . . . . . . . .27

3.2 Industrial Best Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .273.2.1 Seismic Exploration . . . . . . . . . . . . . . . . . . . . . . . . . . . . .283.2.2 Bitumen Extraction and Processing: Alternatives to SAGD . .283.2.3 Well Pad Construction and Reforestation . . . . . . . . . . . . . .293.2.4 Integration with Forestry Operations . . . . . . . . . . . . . . . . .303.2.5 Footprint Restoration . . . . . . . . . . . . . . . . . . . . . . . . . . . .313.2.6 Monitoring of Biodiversity and Disturbances . . . . . . . . . . .31

4 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33

5 Endnotes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35

v Table of Contents


vi D E A T H B Y A T H O U S A N D C U T S C P A W S / T H E P E M B I N A I N S T I T U T E


Richard Schneider Dr. RichardSchneider has been with CPAWSEdmonton since 1993 andcurrently servesas ConservationDirector for the chapter,primarilyoverseeing thechapter’s borealprogram.

Richard obtained a degree in veterinarymedicine from the University ofSaskatchewan in 1985 and a Ph.D. in wildlife epidemiology from theUniversity of Guelph. He thencompleted an NSERC postdoctoralfellowship at the University of Alberta,studying the relationship betweenwolves, bison, and disease in northernCanada. Richard has been activelyinvolved in several landscape-level forestmanagement initiatives in Alberta andwrote the book Alternative Futures:Alberta’s Boreal Forest at the Crossroadsas well as numerous influential paperson the management of Alberta’s forests.

Simon Dyer Simon Dyer is a Senior Policy Analystwith the Pembina Institute. Simon is amember of Pembina’s Energy Watchteam, where his research focuses on theenvironmental implications of oil sandsdevelopment. Simon is a biologist bytraining and has worked on land useissues in Alberta’s boreal forest since1999. Simon represents the PembinaInstitute on theSustainableEcosystemsWorking Group of theCumulativeEnvironmentalManagementAssociation(CEMA). Simon holds a Master ofScience inEnvironmentalBiology and Ecologyfrom the University of Alberta, and a Master of Arts inNatural Sciences from the University of Cambridge.

vi About the Authors

PHOTOS: DAVID DODGE, THE PEMBINA INSTITUTE

T H E P E M B I N A I N S T I T U T E / C P A W S D E A T H B Y A T H O U S A N D C U T S vii

Currently, most Alberta oil sandsproduction takes place in open pitmines. It is these shovel and truckoperations that most people have cometo associate with oil sands development.However, only a small fraction of theavailable oil sands deposits in Alberta areclose enough to the surface to be mined.The bulk of the established reserves(81%) are deep below the surface and must be extracted using in situ (in-place) techniques. Although in situ

recovery is less destructive than open pit mining, it is significantly more damaging than conventional oil extraction methods. Moreover, if in situ recovery of all of Alberta’sunderground reserves is allowed toproceed, the area impacted will be vast – approximately 13.8 millionhectares (ha), or 50 times the area of the mining zone. This equals 21% of Alberta, or a land area the size of Florida.


▲ This report examines the land impacts of in situ development of deep oil sands that has the potential to occur over a region 50 times larger than the oil sands mining area north of Fort McMurray. PHOTO: DAVID DODGE, THE PEMBINA INSTITUTE

vii Executive Summary

viii D E A T H B Y A T H O U S A N D C U T S C P A W S / T H E P E M B I N A I N S T I T U T E


The primary in situ extraction techniqueis called Steam Assisted Gravity Drainage(SAGD). It involves the use of high-pressure steam to liquify the tar-like oilsands deposits so that they can be pipedto the surface.

In this report, the 10,600 ha OPTI-Nexen Long Lake project, now underdevelopment, is used as a case study of astate-of-the-art SAGD operation. A totalof 8.3% of the Long Lake lease will becleared for SAGD infrastructure,including a 99 ha central facility, 234exploration wells, 288 production wells,89 km of access roads, and an extensiveaboveground pipeline collection system.Once construction is completed,approximately 80% of the 10,600 haland parcel will be within 250 m of anindustrial feature. Approximately 24,000m3 of water will be needed each day forsteam production and processing;although 90% will be recycled, theremainder will be lost through disposalin deep wells. The anticipated lifespanof the project is 40 years.

As of July 2005, the total area of landleased for in situ development in Albertawas 3.6 million ha. If all these leases,most of which have yet to be developed,are subjected to the same industrialfootprint as the Long Lake project, then296,000 ha of forest will be cleared forSAGD infrastructure and over 30,000km of access roads will be built. This is

a conservative estimate and does nottake into account transient disturbancessuch as seismic exploration, forestharvesting, or wildfire. Furthermore,new leases are continually being awardedby Alberta’s Department of Energy. Theimplications are startling. By even themost conservative estimate, there will bemore long-term deforestation fromSAGD development than if the entiremineable oilsands region is completelycleared. The ecological effects will bemany times greater still, because theSAGD disturbances will be dispersedacross a vast region.

The boreal forest in which the SAGDdevelopments are taking place is hometo many wildlife species known to besensitive to industrial disturbances. Forthese species, useable habitat within aSAGD development area is reduced tosmall scattered islands. Once a thresholdis reached where the remnant habitatpatches are too small and scattered tomaintain a breeding population, thelocal population is extinguished.Multiply this effect by all projectedSAGD developments and the result is aserious decline in regional biodiversity.

Although precisely defined ecologicalthresholds have not been defined,evidence is steadily mounting thatecological tipping points for manyspecies are already being exceeded atcurrent levels of industrial development

Executive Summary (CONTINUED)

T H E P E M B I N A I N S T I T U T E / C P A W S D E A T H B Y A T H O U S A N D C U T S ix


in northern Alberta. The impacts ofSAGD development, which are muchmore intense and prolonged than thoseresulting from conventional forms ofpetroleum development, will be additiveto existing impacts of current and pastoil extraction. Therefore, ecologicalthresholds will be greatly exceeded inthe future under planned developmenttrajectories. In this report we presentevidence from studies of three wildlifegroups – caribou, furbearers (e.g., lynx,marten) and forest birds – within whichsome species are at risk of extirpationfrom oil sands development.

Given the severe and unavoidableimpacts anticipated from widespreadSAGD development, extra effort needsto be placed on finding alternatives to insitu extraction. Regardless of theapproach used, the overall infrastructurefootprint and related impacts of in situdevelopments must be significantlyreduced. Several examples of industrialbest practices are reviewed in this report,including reduced impact seismicexploration, integrated operationalplanning, reduced impact well padconstruction, and footprint restoration.

Although mitigation and reclamationefforts will be beneficial, it is becomingincreasingly apparent that, even withstate-of-the-art practices, the cumulativeecological impacts of in situ develop-ment will be devastating. Therefore,

conservation offset measures, such as theestablishment of wildlife reserves whereindustrial development is not permitted,need to be implemented. In addition, a cap must be placed on cumulativeindustrial impacts so that basicecological function is maintained on the industrial land base. Examples fromelsewhere in Canada, such as theMuskwa-Kechika management plan in northern British Columbia and thedraft Dehcho management plan in theNorth West Territories, demonstratehow regional planning, protected areas, and limits on cumulative impacts can be incorporated intomanagement planning.

If there is to be any hope of balancingecological and economic objectives inthe oil sands region then newapproaches to land management,supported by appropriate policy andplanning frameworks, will need to beimplemented. There is an urgent needfor the development of a regionalstrategic plan that includes long-termmanagement objectives and a process for achieving these objectives. The anticipated impacts associated with unconstrained in situ oil sandsdevelopment are so great that no futheroil sands leases should be awarded orprojects approved until a managementplan is in place to protect the regionalenvironment.

Executive Summary (CONTINUED)

x D E A T H B Y A T H O U S A N D C U T S C P A W S / T H E P E M B I N A I N S T I T U T E


1. Alberta Sustainable ResourceDevelopment should develop aregional plan to protect the borealforest of northeastern Alberta with thefollowing elements:

• A clear expression of public values,expressed as long-term managementobjectives for the region;

• Land use designations andquantitative management targets that direct the timing, location, andintensity of development at theregional scale, to be implementedthrough the tenure allocation processand regulatory mechanisms; and

• The establishment of acomprehensive environmentalbaseline characterizing northeasternAlberta prior to industrialdevelopment (i.e., circa 1950), toserve as the reference against whichthe impacts of future developmentsare compared.

2. Alberta Energy should suspend newtenure allocations and AlbertaEnvironment should suspend newproject approvals until the regionalplan is in place.

3. Alberta Sustainable ResourceDevelopment should establish newinterconnected protected areasrepresentative of the boreal region, as aconservation offset measure.

4. Alberta Sustainable ResourceDevelopment should establishquantitative limits on cumulativeindustrial disturbances and

precautionary standards for wildlifehabitat to ensure that ecologicalthresholds are not exceeded andenvironmental values are protected.

5. Alberta Sustainable ResourceDevelopment should establish aLand Management PlanningStandard, modeled on the ForestManagement Planning Standard, toguide the development of operatingplans for all resource companiesworking in a given management area.The standard would compel companiesto work together to devise workableintegrated solutions for achievingshared landscape-scale land manage-ment objectives. A single governmentagency dedicated to integrated landmanagement should be established to provide oversight and facilitation of this process. A key role for thegovernment is to ensure that thesolutions companies devise areequitable, and consistent with regional land management andconservation objectives.

6. All government departmentsshould establish minimum standards,reflecting industrial “best practices,”that companies must employ tominimize damage to the boreal forest:

• Implement alternatives to SAGD thatare less environmentally destructive(less water, less energy, less landdisturbance, less duration) as rapidlyas possible;

• Conduct seismic programs in such away that the lines are visibly

x Summary of Recommendations

T H E P E M B I N A I N S T I T U T E / C P A W S D E A T H B Y A T H O U S A N D C U T S xi


reintegrated into the forest within five years. This can be achieved by cutting narrow lines (< 2.5 m),leaving soil and root systems intact, and including barriers to motorized access;

• Integrate planning with forestrycompanies operating on the sameland base, including harmonized road construction;

• Limit cumulative linear disturbancesby reusing or reforesting existingdisturbances before additionaldisturbances are added to the system; and

• Incorporate monitoring programs likethe Alberta Biodiversity MonitoringProgram into operations and track andreport on the cumulative industrialdisturbance related to projects.

▲ The boreal forest of northern Alberta will be dramatically affected if plans to exploit oilsands on 138,000 km2 are carried out. SOURCE: DAVID DODGE, THE PEMBINA INSTITUTE

Summary of Recommendations

▲ The OPTI-Nexen Long Lake project includes an upgrader to convert bitumen into synthetic crude oil.SOURCE: DAVID DODGE, PEMBINA INSTITUTE

T H E P E M B I N A I N S T I T U T E / C P A W S D E A T H B Y A T H O U S A N D C U T S 1

Canada’s boreal region contains one-quarter of the world’s remaining originalforests. It is home to a rich array ofwildlife including migratory songbirds,waterfowl, bears, wolves and the world’slargest caribou herds. Canada’s boreal isa major part of the global boreal regionthat encircles the Earth’s northernhemisphere, storing more freshwater inits wetlands and lakes and more carbonin its trees, soil, and peat than anywhereelse on the planet. The Canadian boreal forest is also the location of one of the world’s largest deposits of oil – Alberta’s oil sands.

With conventional oil reserves inNorth America in steady decline,Alberta’s oil sands have begun to attractsignificant attention, both locally andinternationally. Currently, the majorityof oil sands production comes fromopen pit mining facilities, and it isthese shovel and truck operations thatmost people have come to associatewith oil sands development. Themining zone currently extends acrossapproximately 3,300 km2 of northernAlberta1 and, when fully developed,will likely qualify as the world’s largestopen pit mining complex.

What is not well known is that only afraction of the total available oil sandsdeposits are close enough to the surfaceto be mined. The bulk of theestablished reserves (81%) must beextracted using in situ (in place)techniques.2 Although in situ recovery

FIGURE 1: Map of Alberta’s oilsands

SOURCE: RICK SCHNEIDER, CANADIAN PARKS AND

WILDERNESS SOCIETY

▼

Introduction


Introductionis less destructive than mining, it issignificantly more damaging than theconventional oil operations to which itis often compared. Moreover, if allavailable deposits are to be extracted,the potential area impacted will be vast – approximately 138,000 km2

(13.8 million hectares), which is 50times larger than the area of the miningzone.3 This is equivalent to 21% ofAlberta, or a land area the size ofFlorida (Fig. 1).

In this report we focus on SteamAssisted Gravity Drainage (SAGD), theprimary technique for in situ oil sandsrecovery. We provide a description ofthe process through a case study of theOPTI-Nexen Long Lake project, nowunder development near Fort

McMurray. The intent is to provide adetailed description of a SAGD projectat ground level, using a real-worldexample that incorporates a number ofnew features designed to minimizeenvironmental impacts. We thenprovide projections of anticipatedregional environmental impacts byextrapolating the ecological footprint ofindividual projects, such as the LongLake project, to the entire oil sandsregion. As with many oil sectoractivities, it is the regional cumulativeimpact of multiple developments, notthe impact at any specific site, that is ofgreatest concern. Finally, we discusspractices and planning options formaintaining the ecological health of theoil sands region.

2 D E A T H B Y A T H O U S A N D C U T S C P A W S / T H E P E M B I N A I N S T I T U T E


1 Case Study:The OPTI-Nexen Long Lake Project


1.1 Overview

The type of oil found in oil sandsdeposits, termed bitumen, is heavy,viscous and not easily extracted. In theSAGD process, two horizontal wellsseparated by a small vertical distance areplaced near the bottom of the oilformation (Fig. 2). The top horizontalwell is used to inject high-pressure

steam, which rises to form a high-temperature steam chamber above thewell. Within the steam chamber theheated bitumen becomes less viscousand flows by gravity to the lower wellwhere it is collected, along with thecondensed water.

▲ FIGURE 2: Schematic of a SAGD production system. SOURCE: J&W COMMUNICATIONS, THE PEMBINA INSTITUTE

1 Case Study: The OPTI-Nexen Long Lake Project

1.2 ExplorationOutside of the surface mineable regionthe geological layer comprising the oilsands is generally less than 30 m thick.7

Therefore, successful implementation of the SAGD process demands preciseplacement of the horizontal wells. Thisin turn requires detailed informationabout the location and extent of thedeposits, gathered through extensiveexploration activities.

The initial phase of exploration isfocused on assessing the commercialviability of the deposit and delimiting itsextent. This is accomplished by drillinga systematic grid of core holes andconducting two-dimensional (2D)

OPTI Canada and Nexen Inc. are joint-venture partners developing the $3.5billion Long Lake SAGD project locatedon a 10,600 ha site 40 km southeast ofFort McMurray (Fig. 3).4 Approval forthe project was granted in 2003 andproduction is slated to begin in late2006. The SAGD operation will becoupled with an on-site upgrader andcogeneration facilities and is anticipatedto produce 60,000 barrels of syntheticcrude oil per day. Over the 40-year life of the project, approximately 288well pairs will be drilled from up to 48 well pads.5 It is expected that at least50% of the original bitumen in placewithin the project area will be recovered.6


FIGURE 3: Map of Long Lake

SAGD project.SOURCE: OPTI/NEXEN, EIA

▲

FIGURE 4: Map of core holes and 2 dimensional seismic lines.

SOURCE: OPTI APPLICATION, SECTION C, FIG. 1.6

▲


Case Study: The OPTI-Nexen Long Lake Project 1

seismic exploration (Fig. 4). As thename suggests, core holes are used toretrieve core samples of the subsurfacegeology. These core holes are generallydrilled using conventional drillingpractices that include developing accessroutes for heavy machinery and clearingbetween 0.5 and 1 hectare of forest (Fig. 5). A total of 234 core holes areplanned for the Long Lake site.8

Seismic exploration involves theproduction and analysis of undergroundsound waves to generate a computermodel of subsurface geologicalstructures. In forested areas a corridor isusually first cleared for access and thentruck-mounted drilling equipment isused to drill a series of shot holes atdefined locations. Dynamite charges areplaced in the shot holes and thendetonated to generate seismic soundwaves. As the dynamite charges are

sequentially exploded the reflectedsound waves are recorded at the surfaceusing portable recording equipment.Until a few years ago, seismic lines were typically 6-8 m in width.9

The average width in the Long Lakeproject will be 4 m.10

Conventional 2D seismic is sufficientfor coarse delineation of deposits, butnot for the accurate placement ofhorizontal wells. Therefore, prior toproduction additional seismicexploration is conducted to producedetailed 3D models of the deposit. To produce these detailed modelsintensive 3D seismic techniques must be employed where lines are laid out in a tight cross-hatch pattern (Fig. 6). In some cases seismic programs arerepeated, in so-called 4D seismic, to monitor changes in the deposit over time.11

▲ FIGURE 5: Satellite photo of core holes and access roads on Long Lake site. SOURCE: GOOGLE EARTH © 2005 GOOGLE, IMAGE © 2006 DIGITAL GLOBE

After exploration activities have beencompleted the core holes and seismiclines are reclaimed. On the Long Lakesite initial reclamation efforts haveincluded backfilling of holes, scarific-ation of well pads, and redistribution of debris piles across the area.12 A grassseed mixture including fowl bluegrass,sheep fescue, Canada wildrye, awnedwheatgrass and tufted hairgrass is beingplanted to minimize erosion. Otherefforts have included the decommis-sioning and reclamation of access roads.



1.3 ProductionThe Long Lake project is designed toproduce 9,600 m3/day (approximately60,000 barrels/day) of bitumen over a period of 35-40 years.13 Becauseindividual well pads only have aprojected life of up to 12 years beforelocal reserves are exhausted, new pads

will continually be added as older wells cease production. It is anticipated that48 well pads will be required in total.Plans call for the reclamation ofindividual well pads immediately afterthey cease operating. The reclamation of such long-term disturbed areas willinclude the replacement of stockpiledreclamation material followed by the replanting of appropriate tree and shrub species.14

Well pads will be 3.8 ha in peatlands and 4.4 ha in uplands (the larger size inupland sites is needed to accommodatesoil storage).15 Each well pad will hostfive paired wells (Fig. 7). Approximately500 m3 of drilling waste will begenerated from the drilling of each well pair.16 This drilling waste will be disposed of using the mix, bury and cover method,17 or shipped to alandfill following government guidelines.Well pads will be bermed to containaccidental spills.

▲ FIGURE 6: Aerial photo of 3D seismic on Long Lake site, with 60 m line spacing. SOURCE: DAVID DODGE, THE PEMBINA INSTITUTE

FIGURE 7: Horizontal well.

SOURCE: PETRO-CANADA

▼

There will be an above groundinterconnecting pipeline system betweenthe well pads and the central facilityincluding a steam supply line, producedbitumen/water line, and a produced gasand steam line (Fig. 8). There will alsobe overhead power lines to each pad, anunderground pipeline for lift gas (seebelow), and an all-weather service road.The proposed access routes will followexisting cleared rights-of-way whereverpossible; however, about 70% of allroads and corridors will require newclearing.18 A total of 31 road andpipeline crossings of watercourses areproposed for the project.19

The project design includes the use of artificial gas lift to aid production.20

Up to 5 m3 of natural gas per m3 ofproduced fluids will be injected into the bottom of the production well. Theaddition of the gas reduces the densityof the column of water-bitumensufficiently to allow it to flow to thesurface. Lift gas will be returned to thecentral facilities with the producedfluids, treated, and then utilized as fuelin the project facilities. Lift gas for theproject will be supplied through a new10.2 km pipeline linked to theTransCanada pipeline system.

Steam for the project will be producedin the central facility (described below).Approximately 24,000 m3/d of waterwill be needed to recover the projected9,600 m3/d of oil (a 2.5:1 ratio).21 Mostof the process water will be recycled, butabout 10% will be disposed of throughdeep well injection into a formation ofwater-bearing sand below the bitumenresource. This disposal is necessary toavoid accumulating too high a mineralcontent in the water for steamgeneration. The disposal wells will beconnected to the central plant by an 8.7 km underground pipeline. Make-upwater will be drawn from new wellslocated on the lease.22 A 24.8 kmunderground pipeline will connect thewater wells to the central plant.


Case Study: The OPTI-Nexen Long Lake Project 1

1.4 ProcessingThe Long Lake project will include alarge (98 ha) central processing facilitywhere steam for the wells will beproduced and where processing ofbitumen will occur (Figs. 9-10). Plans call for the construction of a cogeneration plant that will produce both steam and electricity. The cogeneration plan will produce

400 MW of electricity, of whichapproximately 40 MW will be used byproject facilities and the balance soldinto the wholesale Alberta grid.23

The market for crude bitumen is verylimited, so normally it is diluted andtransported by pipeline to refineries forupgrading to synthetic crude. Dilution

FIGURE 8: Pipelinegatheringsystem.SOURCE: PETRO-CANADA

▲

with lighter petroleum products isnecessary to reduce the viscosity of thebitumen enough that it will flow in apipeline. The Long Lake project willinitially follow this approach, bringingdiluent in via a 5.8 km Enbridgepipeline.24 However, the centralprocessing facility will eventually include an upgrader that will producesynthetic crude oil on-site (Fig. 11).

The central facility will also include a gasification facility that will use by-products of the upgrading process toproduce sweet synthetic gas for use inproject facilities. By-products of thegasification process include a non-

hazardous slag, formed from mineralsand metals in the feed, and sulphur.25

Subsequent to the construction of thegasification facilities, approximately50% of the project’s fuel requirements,including operation of the cogenerationplant, will be provided by synthetic gas.Natural gas from the TransCanadapipeline will provide the balance of the fuel requirements. Excluding thecogeneration plant, only about 11% of the project’s fuel requirements willcome from off-site natural gas.26

All SAGD produced gas will berecovered, collected and combined withupgrader produced gas for treatment.Treatment involves amine sweeteningfollowed by glycol dehydration togenerate dry sweet fuel gas.27 This gas will be used in project heaters andsteam generators to reduce natural gasrequirements. Hydrogen sulphide willbe removed from the gas and will berecovered and sold. No SAGD gas willbe flared under normal operation.28



FIGURE 11: Hydrocracker component of the Long Lake upgrading facility

SOURCE: NEXEN

▲

FIGURE 10: Land clearing

associated with theOPTI-Nexen centralprocessing facility.

SOURCE: GOOGLE EARTH© 2005 GOOGLE, IMAGE

© 2006 DIGITAL GLOBE

▲

FIGURE 9: Long Lake

ground view.SOURCE: NEXEN

▼

The Energy and Utilities Boardestimates that 142 billion barrels ofbitumen can be recovered using currentin situ technology.29 The total volume of bitumen in place is over ten timesthis amount; therefore, it is anticipatedthat established reserves will grow even larger as technology advances.30

Moreover, only 1.0% of the 142 billionbarrels of established reserves have beenrecovered to date. This means thatprojects like Long Lake are just the tip of the oil sands iceberg.

There is no terrestrial cumulativeimpacts framework to guide oil sandsdevelopment. Instead, the process isdriven by geology and the price of oil.When the price of oil is high, the

Department of Energy issues more leasesthrough its land sales process, with noconsideration of the possibility of stageddevelopment or the preservation ofregions with high conservation value.While individual projects do undergoenvironmental impact assessments(EIAs), projects are permitted toproceed if they meet standard industrypractices, and no projects have beensubstantially modified to reflectconservation concerns.

To gain a realistic appreciation of the scope and magnitude of future in situ development we projected thedisturbance footprint that will resultfrom the development of oil sands leases that have already been awarded.

2 Regional Environmental Impacts

T H E P E M B I N A I N S T I T U T E D E A T H B Y A T H O U S A N D C U T S 9

2.1 Cumulative Impacts

▲ The centralfacility of theOPTI-NexenLong LakeSAGD project. SOURCE: DAVID DODGE,THE PEMBINA INSTITUTE



The actual long-term impact will besignificantly greater than our projectionsbecause new leases continue to begranted, now at a record pace. Evenwhen underestimated, the initial resultsdemonstrate that the boreal forest willbe subjected to unprecedented levels of disturbance.

As the basis for our projections we usedLong Lake as a template of a state-of-the-art SAGD project, primarily becauseextensive data and satellite photographywere available. We quantified the variousdisturbances associated with the LongLake project as described in the project’sEIA and then assumed that otherexisting leases would be subjected tosimilar types and amounts ofdisturbance.

The Long Lake Project lease area isapproximately 10,600 ha in size.31

According to the EIA, the well pads,roads, pipelines, central facility, initialseismic exploration, and othermiscellaneous features will result in thelong-term clearing of 884 ha of land,representing 8.3% of the project site(Boxes 1 and 2).32 Of the totaldisturbance, 96% (846 ha) will occur in previously undisturbed forests andpeatlands. A review of the EIAs of otherSAGD projects indicates that this levelof disturbance is typical of suchdevelopments.33

Although 884 ha, or 8.3% of the projectsite, may not seem like an excessiveamount of disturbance, there are twocharacteristics of the disturbances thatare cause for significant concern: First,with the exception of the central facility,the disturbances are widely distributedacross the project area. Based on the EIA

BOX 1. SUMMARY OF PROJECT INFRASTRUCTURE 34

Main access road (7.9 km)Other access roads (81 km)Seismic lines (total km unknown)Core holes (164 ha)Well pads and infrastructure (457 ha) Gas supply line (10.2 km)Oil pipeline (5.8 km)Power line (5.8 km)Water supply and disposal wells (31 ha)Central facility (99 ha)

Total = 884 ha of disturbance

BOX 2. SUMMARY OF CENTRAL FACILITY COMPONENTS

Fired steam generatorsBitumen/water separation vesselsBitumen upgrading facilitiesPower and steam cogenerationWater recycling and treatment facilitiesGasification facilitiesDesulphurization facilitiesUtility systems; officeProduced and by-product gas handlingDiluent and product storage Spent lime disposalReclamation material storage

BOX 3. SUMMARY OF PROJECTED IN SITU DISTURBANCES

(see text for explanation)

Land clearing per lease 8.3%Density of roads, pipelines, and power lines within leases 3.2 km/km2

Total in-situ lease area (2005) 3,568,000 haTotal projected area cleared 296,000 haTotal projected roads 30,000 km

data,35 on the Long Lake site the densityof roads, pipelines, and power lines(seismic excluded) will be 3.2 km/km2.Considering that the ecological effect of each disturbance extends out into the surrounding forest, the majority of the forest will be impacted(see Environmental Effects, next page).

The other concerning characteristic ofthis type of disturbance is its duration.Not only are the disturbances at highdensity and widely distributed, but mostwill persist on the landscape for decades.This is in stark contrast to naturaldisturbances, such as fire, which aregenerally intense but have only atransient impact because regenerationoccurs quickly.

The extensive 3D seismic explorationvisible on recent aerial photos of theLong Lake site (Fig. 6) was not includedin the Long Lake EIA data. Pre-existingdisturbances in the lease area (e.g.,roads, earlier seismic activity) were notincluded in the 884 ha total either,unless they were reused in the project.We could not incorporate theseadditional disturbances into our base-case footprint because they have notbeen quantified. Therefore, ourprojections underestimate the actuallikely impact.

As of July 2005, the total area leased for in situ development was 3,568,000ha, approximately 11 times the size of the mineable oilsands region.36

If all the leases are subjected to a similarindustrial footprint to the Long Lakeproject then 296,000 ha of forest will be cleared for SAGD infrastructure andover 30,000 km of access roads will bebuilt (Box 3). This is a conservativeestimate and does not take into accounttransient disturbances such as seismic

Regional Environmental Impacts 2


FIGURE 12: SAGD disturbancetemplate modeled onthe Long Lake project.SOURCE: THE PEMBINA INSTITUTE

▼

FIGURE 13: Projected SAGDdisturbance footprintat medium scale(approximately 20%of the in situ region isshown). The locationof the Long Lakeproject is outlined in red for reference.SOURCE: CANADIAN PARKS AND WILDERNESS SOCIETY

▼

exploration, forest harvesting, orwildfire. Furthermore, new leases arecontinually being awarded.

By even the most conservative estimate,there will be more long-term deforest-ation from SAGD development than ifthe entire mineable oilsands region wereto be completely cleared. The ecologicaleffects will be many times greater still,because the SAGD disturbances will bedispersed across a vast region. To fullyappreciate the intensity and spatial scopeof the projected impacts it is helpful tosee them in map form. Therefore, wedeveloped a template of an industrialfootprint modeled on the Long Lakeproject (Fig. 12) and then projected thistemplate in random orientation acrossall existing oil sands leases (Figs. 13-14).Given the long lifespan of the projects,the extended lag time associated withsuccessful reforestation, and the fact thatnew leases continue to be awarded, theprojected footprint is a very conservativeestimate of what Alberta’s boreal forestmay look like in the future as a result ofunconstrained in situ development.



FIGURE 14: Projected SAGD disturbance footprint acrossnorthern Alberta based on existing leases. The location ofthe Long Lake project is shown in red for reference, as isthe oil sands administrative boundary

SOURCE: CANADIAN PARKS AND WILDERNESS SOCIETY

2.2 Environmental EffectsFuture SAGD developments will haveenvironmental impacts on land, waterand air, as well as contribute to climatechange. In this report we focus onterrestrial ecosystems, where the mostsignificant change will be a regionaldecline in biodiversity. This is becausethe boreal forest in which these develop-ments are taking place is home to manywildlife species known to be sensitive toindustrial disturbances (Box 4).

Recent studies in Alberta have shownthat forests adjacent to roads, well sitesand pipelines are avoided by a variety of forest mammals and birds due totheir sensitivity to human disturbances.37

For these animals, useable habitat withina SAGD development area is reduced to small scattered islands. Within theLong Lake project approximately 80%of the land will be within 250 m of anindustrial feature (Fig. 15). The direct

▼



loss and avoidance of habitat results in declining wildlife populations.Further declines occur once a thresholdis reached where the landscape as awhole becomes unsuitable (i.e., once the remnant habitat patches are toosmall and scattered to maintain abreeding population).38

Project developers have acknowledged a local risk to biodiversity as a result of SAGD developments39 but havediscounted regional impacts, ostensiblybecause they have been unable toquantify them. In lieu of understandingwhat the impacts might be, companiespin all hope on reclamation. Forexample, the Long Lake EIA states,

There are several reasons why thisapproach is untenable. First, reclamationis unlikely to be fully effective. The trackrecord to date has certainly not beenpositive. According to the Long LakeEIA there is not even an objective ofrestoring the site to its previous state,just of being “capable” of returning it tothe previous state.41 Moreover, the EIAopenly admits that some ecotypessimply cannot be restored: “Mostwetland types in the lease will be more

fragmented at closure than at baselinedue to the permanent loss of portions ofthese types.”42 Another problem is thatimpact assessments are conducted in theabsence of a cumulative impactsframework. In fact, this report representsthe first attempt to quantify the totalimpact of proposed SAGD develop-ments. Remarkably, EIAs ignore mostfuture in situ development, even thoughthousands of square kilometres have

BOX 4. SPECIES IN DECLINE AS A RESULT OF INDUSTRIAL DEVELOPMENT IN NORTH-EASTERN ALBERTA

CaribouLynxMartenFisherWolverineBoreal chickadeeRose-breasted grosbeakYellow-bellied sapsuckerRed-breasted nuthatchBrown creeperVarious warblers

▲ FIGURE 15: Satellite view of the Long Lake siteshowing wildlifeavoidance zones(red) around roadsand well pads(Source: same photoas Fig. 5, with 200m buffers on roadsand 300 m bufferson well pads).SOURCE: GOOGLE EARTH,©2005 GOOGLE, IMAGE © 2006 DIGITAL GLOBE

Ecological thresholds have not yetbeen established regarding impactsto biodiversity as a result offragmentation by development. Until thresholds have been defined,it is difficult to quantify effects ofdevelopment on ecosystem function.Although the actual effects onoverall biodiversity and ecosystemfunction are not known, it isexpected that biodiversity will alsobe restored to baseline conditions if reclamation is successful.40

already been leased. Finally, although oil sands developers speak of the impactsas transient, the fact is that 40 years isequivalent to several generations foraffected wildlife species. Given the vastarea affected, there may be no breedingpopulations left for repopulating thesites even if reclamation is indeedsuccessful.

Although precise ecological tippingpoints have not been defined, evidenceis steadily mounting that ecologicalthresholds for many species are alreadybeing exceeded at current levels ofindustrial development in northernAlberta. We present evidence below forthree animal groups for which researchfindings from the oil sands region areavailable. Other species are likely to besimilarly affected, though only limitedresearch has been done to date. Giventhat the impacts of SAGD development

are much more intense and prolongedthan conventional forms of petroleumdevelopment it seems likely that notonly will ecological thresholds be greatlyexceeded in the future, but severalspecies may be extirpated fromnortheastern Alberta under proposeddevelopment trajectories.

2.2.1. Caribou Woodland caribou is one of the specieslikely to be extirpated from regionssubjected to SAGD development.Caribou declines across Alberta havebeen correlated with the level ofindustrial development within theirranges.43 In the past ten years, the EastSide Athabasca River caribou herd,whose range overlaps much of thecurrent SAGD development, hasdeclined by almost 50% (Fig. 16).Studies have shown that forests within1 km of roads and well sites tend to beavoided by caribou44 and that roadsfurther fragment caribou habitat byacting as barriers to movement.45

It is believed that this fragmentationconcentrates woodland caribou intosmaller portions of their range, wherethey become more susceptible topredation by wolves.46

Three separate studies predict direconsequences for caribou under the current management regime. A government-led study concluded that woodland caribou will continue to decline unless limits to developmentand aggressive restoration of existingdisturbances are implemented.47

An industry-funded modeling studywithin the oil sands region determinedthat, due to projected industrialdevelopment, available caribou habitat



▲ Woodland caribou populations in the region have declinedby 50% over the past 10 years. Government and industry

studies predict caribou will be lost from areas underlain by oil sands under current development trajectories.

PHOTO: WAYNE LYNCH

will decline from 43% of the landscapeto 6% over the next 20 years.48 Finally,a study at the University of Albertaconcluded that caribou will beextirpated from northern Alberta in less than 40 years if linear densitiesexceed 1.2 km/km2 (less than half the projected linear density withinSAGD developments).49

The consistent message is that, unlesssignificant changes are made in the way we allocate and develop land for in situ oil sands production, caribouare likely to be lost from the entire oilsands region.

2.2.2. FurbearersFurbearing mammals such as lynx,martens, and fishers are another group of animals negatively impactedby industrial development. A recentstudy has shown that population sizeshave remained at expected levels inrelatively intact regions of northeasternAlberta, but have significantly declinedin regions subjected to industrialdevelopment (Fig. 17).50 Researchersalso found that declining populationsize is strongly correlated with road



50556065707580859095

100

1993 1995 1997 1999 2001 2003

Year

Popu

latio

n C

hang

e %

FIGURE 16: Population change of the EastSide Athabasca River caribouherd from 1993 to 2004.SOURCE: ALBERTA WOODLAND CARIBOU RECOVERY TEAM

▼ The lynx in one of severalmammals this is negativelyaffected by industrialdevelopment. PHOTO: DAVID DODGE, THE PEMBINA INSTITUTE

0.0

0.2

0.4

0.6

0.8

1.0

Fisher Lynx Marten Coyote

ObservedExpected

Prob

abili

ty o

f Occ

urre

nce

▲ FIGURE 17: Probability of mammal occurrence in the Dry Mixed wood Boreal Region of northeastern Alberta: Observed vs.expected mean in intact forest.50

SOURCE: SCOTT NIELSEN, ERIN BAYNE, JIM SCHIECK, J. HERBERS & STAN BOUTIN

▼

density (Fig. 18). As the populations ofsensitive species have declined, theabundance of species tolerant ofdisturbance, such as coyotes and deer,has increased (Fig. 17). The intenseand prolonged disturbance footprint ofSAGD developments will acceleratethese trends, leading to further declinesin furbearer populations and possiblythe loss of species in many areas.

2.2.3. Forest BirdsProjections are also bleak for severalforest birds, including some migratoryspecies already of conservation concernas a result of previous industrialdevelopment. Many forest birds aresensitive to industrial disturbance andtend to avoid using otherwise suitablehabitat within 100 m of roads, pipe-lines, well pads or similar features.51



0.0

0.2

0.4

0.6

0.8

1.0

0.0 0.1 0.2 0.4 0.6 0.8 1.0 1.2 1.4

Road Density (km/km2

)

Prob

abili

ty o

f Occ

urre

nceFIGURE 18:

Probability of lynxoccurrence in

Alberta’s CentralMixedwood Boreal

Region relative toroad density.50

SOURCE: SCOTT NIELSEN, ERIN BAYNE, JIM SCHIECK,

J. HERBERS & STAN BOUTIN

0

0.5

1

1.5

2

2.5

Brown Creeper Red-breastGrosbeak

Yellow-bellySapsucker

BTG Warbler

Low Footprint

High Footprint

Mea

n N

umbe

r of D

etec

tions

▼

FIGURE 19:Abundance of four

species of birds in northeastern

Alberta relative tothe intensity of

industrial footprint(low, high).53

See Box 4 for fullspecies names.

SOURCE: STEVE G. CUMMING& FIONA A. SCHMIEGELOW

▼



There is evidence that landscape effects,above and beyond local avoidanceeffects, are responsible for additionaldeclines in the abundance of somespecies.52 A recent study in northernAlberta determined that the abundanceof some bird species was reduced byover 80% in townships with a highlevel of industrial footprint comparedto relatively undisturbed townships(Fig. 19).53 The declines in SAGD sitesare bound to be even greater, given thatthe intensity of SAGD disturbance issubstantially greater than that of theconventional oil and gas disturbancesincluded in the bird study. The loss ofsome bird species from the oil sandsregion seems highly likely.

2.2.4. Other Environmental ImpactsImpacts of oil sands development onair and water have been reviewed inother reports and will not be covered in detail here. In particular, we referreaders to Oil Sands Fever and toTroubled Waters, Troubling Trends.54

Some of the most significant impactsfrom in situ development are as follows:

• Depletion of freshwater reserves,either through direct use or throughthe secondary effects of drawingdown saline aquifers (e.g., althoughthe Long Lake project uses salinewater for steam production, draw-down effects are expected to reducethe flow of the nearby Gregoire riverby up to 3.4%55 );

• Damage to aquatic ecosystems fromthe disruption of normal flowpatterns caused by roads and otherindustrial features;

• Acidification of land and water inthe oil sands region (e.g., the LongLake EIA predicts that some lakes inthe region may acidify sufficiently toaffect amphibian embryos56);

• Regional contamination of groundand water from thousands of tons ofdrilling wastes, production wastes,byproducts of upgrading, byproductsof desalination, and accidental spills;

• Conversion of wetlands such as fensand bogs to upland landscapes afterreclamation; and

• Large increases in emissions ofgreenhouse gases.

▲ Alberta’s boreal forest is a mosaic of forests, wetlands, rivers and lakes. PHOTO: DAVID DODGE, THE PEMBINA INSTITUTE

3 Solutions

3.1 Policies and Planning

We present here a suite of governmentpolicy options and industrial bestpractices that, taken together, wouldreduce some of the environmental risksassociated with in situ oil sandsdevelopment. It is important to notethat industrial best practices areinsufficient in the absence of clear policy and regional planning designed to balance environmental protection and industrial development. This is particularly relevant in the case of oil sands development given theintensity and pace of development on the landscape.

All of our recommendations are basedon specific examples of policies and bestpractices that have been implementedeither in Alberta or elsewhere in NorthAmerica, and are directly applicable forin situ development in northeasternAlberta. Unfortunately, althoughpractical, these approaches havegenerally not been widely adopted todate. Our hope is that by drawingattention to these workable solutions,while showing the perils of maintainingthe status quo, these approaches will become standard practice under anew regulatory framework for in situdevelopment in Alberta.

T H E P E M B I N A I N S T I T U T E D E A T H B Y A T H O U S A N D C U T S 19T H E P E M B I N A I N S T I T U T E / C P A W S D E A T H B Y A T H O U S A N D C U T S 19

Although industrial best practices will be beneficial, it is clear that even withstate-of-the-art practices the cumulativeecological impacts of in situ develop-ment will be devastating. By their verynature these projects are inextricablylinked to an intensive, widespread, andlong-term disturbance footprint. Even ifindividual disturbances are reduced insize, the sheer number of seismic lines,core holes, roads, well pads, pipelines,and other infrastructure components,along with a large central facility, willgreatly exceed the tolerance limits ofmany wildlife species.

As the limitations of industrial bestpractices have become more apparentthere has been a growing consensus thatadditional measures will be needed to

manage the impacts of rapidlyexpanding industrial development inAlberta. The Alberta Chamber ofResources, an industry group that haspioneered voluntary partnerships toreduce the impacts associated withoverlapping developments, acknow-ledges that limits to land uses areinevitable in order to maintainenvironmental values.57 In a recentsurvey commissioned by the AlbertaForest Products Association, 75% ofrespondents felt that the governmentneeds to put limits and set priorities onwho is able to use the forest, how, whenand where.58

If there is to be any hope of balancingecological and economic objectives in the boreal forest of Alberta, then new

approaches to land managementsupported by appropriate policy andplanning frameworks in a broad regionalcontext will need to be implemented.Developing and implementing these newpolicies and planning frameworks willrequire leadership by both governmentand industry. In the following sectionswe outline some of the key elements thatshould be considered.

3.1.1. Protected AreasTo maintain the full complement ofnative species in the oil sands region inthe face of widespread in situ develop-ment, parts of the landscape will have tobe set aside as wildlife reserves. Theestablishment of such reserves can bethought of as a conservation offsetmeasure (i.e., an action taken to offset orbalance ecological losses resulting fromintensive industrial activity). Unless thisstep is taken, species will be lost.

To effectively serve as reservoirs ofbiodiversity the reserves will need tomeet several criteria. First, the sites mustbe fully protected from industrial use,including both petroleum developmentand forestry. Second, the sites should bepart of an integrated system designed toprovide full representation of Alberta’sboreal ecosystems (in which the oilsands lie). It follows that new sitesshould emphasize ecosystems not wellrepresented in existing protected areas.Third, the sites should be large enoughto support viable populations of nativespecies and to maintain naturalecological processes. This implies a sizeof several thousand square kilometres –sufficient to withstand the large fireevents that are a key driver of ecological

function in the boreal forest. Given that oil development in the region isprojected to last well into the nextcentury, the wildlife reserves should bepermanent entities. A designation ofWildland Provincial Park, which permitstraditional uses but prevents industrialactivity, would be most appropriate.

Besides serving as reservoirs ofbiodiversity, protected areas also play avital role as ecological benchmarks.Monitoring within these areas providesimportant baseline data that can beused to assess ecological changes in theindustrial landscape as part of anadaptive management system. Further,they can serve as representative areas of ecological integrity for ongoingresearch into improving reclamation of oil sands developments. Protectedareas also serve as important sites fortraditional, spiritual and recreationaluses. Finally, the preservation ofwilderness as an end in itself is a high priority for the public.59

Currently, Wood Buffalo National Parkserves as the core protected area forAlberta’s boreal region. While ofimmense ecological value, much of thispark is centred around a unique deltasystem that has different characteristicsfrom the forests found in the oil sandsregion. The park is also north of the oilsands region, which means that it has adifferent climatic regime. As a result,many species typical of the boreal forestfound in the oil sands region, includingwoodland caribou and a variety of songbirds, are not found in the park.Therefore, notwithstanding WoodBuffalo National Park, there are stillmany gaps in the existing system ofprotected areas that need to be filled.

3 Solutions


Much of the technical groundwork foridentifying priority areas for protectionin the boreal region has been done. It isbeyond the scope of this paper todiscuss all of the candidate sites and theselection methodologies used. Instead,we refer the reader to the relevantliterature.60 But it is worth highlightingtwo prospective sites of high ecologicalvalue that exist in the heart of the oilsands region, near Fort McMurray (Fig. 20). What makes these sites ofparticular interest is the fact that theyare largely devoid of recoverable oildeposits, even at today’s high oil prices.Oil and gas leases are virtually absent inthese sites (Fig. 20) and their protectioncould proceed with minimal conflictwith the petroleum sector. Furthermore,the major forestry company in theregion, Alberta-Pacific Forest Industries,has been actively pursuing legislatedprotection of these two sites (albeitusing somewhat smaller boundaries)under its ecological benchmarkinitiative.

Some oil sands operators have begun tosupport the conservation offset concept.For example, several have written letters of support for the Alberta-PacificForest Industries ecological benchmarkinitiative. Some are also beginning toincorporate the need for ecologicalbenchmark areas into their EIAs. Forexample, the EIA for the Imperial OilKearl Oil Sands Project identifies theneed for regional ecological benchmarkareas as reference areas to compare toreclaimed portions of project leases.61

Because the oil sands lie largely on publiclands, responsibility for the

establishment of new protected areas inthe region rests largely with thegovernment. However, since the end ofSpecial Places 2000 there has been noprocess in place whereby discussionsleading to the establishment of newprotected areas could take place. AlbertaSustainable Resource Developmentshould lead the establishment of newinterconnected protected areas represent-ative of the boreal region as part of abroader land use strategy for the region.

3.1.2. Protection of Private LandsA more direct approach to conservationoffsets being explored by some oil sandscompanies is the purchase of privatelyheld forested land in the Peace Riverregion. As a conservation offset measure,this approach has much merit. Themain limiting factor is that it is difficult

Solutions 3


▲ FIGURE 20: Candidate protected areas (black lines) near Fort McMurrayin relation to petroleum leases. The two areas outlined are1,700 and 3,300 km2 in size, respectively.

SOURCE: CANADIAN PARKS AND WILDERNESS SOCIETY

to assemble large contiguous blocks of protected land, given the high cost of land and the fact that not all land isfor sale. Also, as in other areas of theprovince, ownership of the land doesnot extend to subsurface rights. Unlessthe areas are formally designated asprotected areas by the government, oiland gas development can still occur.

Protection of private land can take theform of purchasing and donating landsin partnership with conservationorganizations or through purchasingconservation easements. Suncor’sinvolvement as a founding member ofthe Boreal Habitat ConservationInitiative is a good example of how thiscan be accomplished in practice. Suncorhas committed to invest a total of $1.05million over three years to help theAlberta Conservation Association secureboreal forest habitat that will be turnedover to Alberta Parks and ProtectedAreas for ongoing stewardship andmanagement.62 This commitment buildson an agreement between the Alberta

Conservation Association and Suncorthat started in 2003, when 190 ha ofland were purchased or secured throughprotective land use reservations in theWinagami Lake area of northwesternAlberta to offset habitat affected by oilsands operations in Fort McMurray.

3.1.3. Regional PlanningThe most effective application of theconservation offset concept will beachieved if the efforts of individualcompanies and the government arecoordinated through regional planning.The same can be said of wildlifemovement corridors, conservation of old growth, and indeed any regionalmanagement objective. However, thereis currently no regional plan thatdemonstrates how future oil sandsdevelopment will be integrated withprotecting the regional environment.Whatever the desired future may be for northeastern Alberta, it cannot beachieved without a common blueprint.

3 Solutions


RECOMMENDATION

Alberta Sustainable Resource Developmentshould establish new interconnected protected

areas representative of the boreal region as a conservation offset measure.

Conservation offset areas should be established.

PHOTO: DAVID DODGE, THE PEMBINA INSTITUTE

▼


Solutions 3

Arguably the most important element ofregional planning is the allocation oftenure, including the decision aboutwhich lands to lease for oil sandsdevelopment. Tenure decisions can belinked to an identification of priorityland uses, but in most regions of Albertathis type of planning is not done. It is atthis stage where the greatest latitudeexists for directing the timing, location,and intensity of development at theregional scale. Once tenure rights havebeen allocated, discussions focusnarrowly on mitigation measures tominimize cumulative impacts. We havedemonstrated in this report that a failureto consider environmental objectives inthe allocation process poses significantrisks to the boreal forest landscape.

Successful Tenure ApproachesThe Muskwa-Kechika region ofnorthern British Columbia is a goodmodel of how pre-tenure planning for petroleum development can besuccessfully applied. The Muskwa-Kechika Management Area Act requiresthat pre-tenure plans, which providebinding directions on oil and gasdevelopments, must be prepared bygovernment prior to the issuance of oil and gas tenures.63 Pre-tenure plans include landscape objectives and quantitative numeric thresholds for land-based disturbances. Thisapproach provides both certainty of appropriate access for petroleumcompanies, while ensuring cumulativelimits to disturbance are not exceededand environmental values are protected.The need for pre-tenure planning isbroadly supported by many stakeholders:

The logical planning process in theMuskwa-Kechika is in contrast to thedisposal of in situ oil sands leases inAlberta, which occurs without anylandscape-level strategic planning. Theonly review that occurs prior to tenureallocation is by the multi-departmentalCrown Mineral Disposition ReviewCommittee, which is expected tohighlight any environmental restrictionsassociated with individual land parcels.This process is closed to the public anddoes not solicit stakeholder input. In theabsence of a cumulative impactsframework the committee has not hadany discernable effect in influencing thelocation or rate of in situ development.It has been argued that the lack oftransparency, accountability and formalmandate for this committee alsocontributes to its ineffectiveness.65

Over 3.5 million hectares of boreal foresthave been leased for intensive in situdevelopment in Alberta without a long-term landscape plan, and new leasescontinue to be awarded at a record pace.

We recommend that a regional landmanagement plan be developed, andthat no further tenure allocations bemade until this plan is in place. Slowing down the rate of petroleum

The April 2003 Muskwa-Kechika pre-tenure plan truly adopts a result-basedmanagement framework. The plandoes an excellent job in incorporatingviews from a diverse set of stake-holders and generating a useable plan to guide oil and gas activity inthe Muskwa-Kechika”.

Shira Mulloy, Canadian Association of Petroleum Producers 64

3 Solutions


development is a prudent step in any case, given the severe labour and infrastructure shortages facing the province from oil projects alreadyunder way.

The regional plan should include acomprehensive environmental baseline,characterizing northeastern Alberta priorto industrial development (i.e., circa1950). This baseline should serve as thereference against which the impacts offuture developments are compared.Current government expectations requirecompanies to present their projects inthe context of the landscape condition atthe time of application, ignoring theprogressive regional-level deterioration inenvironmental indicators.

The plan should also include a clearexpression of public values, expressed aslong-term management objectives forthe region. This can be achievedthrough a description of the desiredfuture landscape along with the societalbenefits to be derived from it.

Finally, the plan needs to includedirectives for implementation. Theseshould include land use designationsand quantitative management targets,such as maximum levels of disturbanceand road densities that can guide tenureallocations, as in the Muskwa-Kechika.Making the bridge between publicvalues and an implementation plan isthe most difficult step because trade-offsare invariably necessary. The bestapproach for grappling with suchtradeoffs is to use future scenariomodeling, wherein the state of thelandscape under alternative managementapproaches is projected into the futureusing computer models. The SustainableEcosystem Working Group of theCumulative Environmental Manage-ment Association has recently under-taken a project to do just that, andresults will provide valuable insights for the future management of the oilsands region. However, the continuedallocation of lands for in situ oil sandsdevelopment before this assessment iscomplete is of grave concern.66

RECOMMENDATION

Alberta Sustainable Resource Developmentshould develop a regional plan for in situdevelopment that will protect the borealforest. Alberta Energy should suspend newtenure allocations and Alberta Environmentshould suspend new project approvals untilthe regional plan is in place.

Maximum allowable levels ofdisturbance should be established. PHOTO: DAVID DODGE, THE PEMBINA INSTITUTE

▼


Solutions 3

3.1.4. Cumulative Effects ThresholdsQuantitative thresholds are a useful wayto manage environmental impactsassociated with development activities.Numeric limits for air and wateremissions are entrenched in manage-ment decision-making, both as project-specific thresholds and regional targets.Despite the potential efficienciesinvolved in incorporating land-basedthresholds, Alberta has resistedincorporating thresholds into land-baseddecision making, particularly withrespect to the oil and gas sector.

Since thresholds for cumulativeindustrial impacts have not beenimplemented in Alberta, as a result,forested lands in northern Alberta arebeing transformed by an industrialfootprint that is steadily increasing inextent and intensity. The issue isexacerbated by the fact that most areasare subjected to impacts from multipleindustrial operators (e.g., oil sands,conventional oil and gas, hardwoodforestry, softwood forestry). Alberta’sboreal forest is well on its way tobecoming one large intensive use zone,with disastrous consequences forbiodiversity. This is at odds with publicvalues and government commitments to sustainable development.70 A balancebetween economic and environmentalvalues must be achieved, either by fully protecting a large proportion of the land base or by protecting a smallerproportion but setting strict limits on the intensity of development in the industrial areas. The examples citedabove from surrounding jurisdictionsdemonstrate that workable solutions do exist.

Threshold Approaches Example 1: The Muskwa-Kechika Management AreaThe Muskwa-Kechika provides a workingmodel of how land-based cumulativeeffects thresholds can be put into practice.In the Muskwa-Kechika, habitat thresholdsvary depending on the nature of theplanning area, as defined in pre-tenureplans.67 For example, for the Halfway-Graham region, 23% of the 234,902 haarea may be impacted by oil and gasactivities. This includes both the physicalinfrastructure (roads, well pads andpipeline corridors) associated with oil and gas developments, and the ‘zone of influence’ around these developments.The zone of influence is an area around a disturbance feature where impacts to environmental values may be felt. To determine whether new developmentscan be accommodated within thethresholds, development plans are overlaidon habitat maps for six different wildlifespecies. Disturbances are time limited, and when they are decommissioned andrestored they no longer contribute tocalculation of cumulative effects thresholds.

Threshold Approaches Example 2: The Dehcho Land Use PlanThe Dehcho Land Use Plan, for the Dehchoterritory directly north of Alberta, is anotherexcellent model for the establishment ofland-based thresholds.68 Opportunities for industrial development are provided in development zones, provided thatthresholds are not exceeded. The plan is flexible, and provides clear directionregarding management options when thethresholds have been reached. The draftplan provides proposed land usethresholds for road density, total lineardensity, habitat availability, core areas and stream crossings.Thresholds are basedon best available scientific informationabout the response of wildlife species toindustrial development.69

3.1.5. Coordination of Operational Planning

In addition to a broad regional strategicplan, a framework is needed to guidethe development of integrated operatingplans to ensure that different industriesoperating on the same landscapecoordinate their development activities.Integrated planning is too important toleave as a voluntary industrial bestpractice with inconsistent implement-ation. Moreover, it is not just companiesthat need to be integrated at theoperational level, but also individualgovernment departments, which oftenhave conflicting management objectivesand regulations.

Although the Alberta government hasbeen working on the issue of integra-tion, a workable solution has not yetbeen forthcoming. A recent InformationLetter recommended that energy andforestry operators discuss requirementsfor joint infrastructure, but it waslimited to a small planning area

northwest of Nordegg.71 Whilecoordination of development was a core element of the draft Mineable Oil Sands Strategy, the focus wasprimarily on coordinating miningprojects, and there was no attempt tobalance environmental and economicvalues.72 The Forest ManagementPlanning Standard provides perhaps themost useful template for coordinatedplanning.73 It includes a framework anda list of landscape-scale managementindicators that forestry companies mustuse when developing their integratedforest management plans. However, noattempt has been made to expand thescope of this document beyond theforestry sector.

We recommend that a LandManagement Planning Standard,modeled on the Forest ManagementPlanning Standard, be established toguide the development of operatingplans for all resource companies working in a given management area.The standard would compel companies

3 Solutions


RECOMMENDATION

Alberta Sustainable Resource Developmentshould establish quantitative limits on

cumulative industrial disturbances and precautionary standards for wildlife

habitat to ensure that ecological thresholds are not exceeded and

environmental values are protected.

Most areas are exposed tomultiple forms of development.

PHOTO: DAVID DODGE, THE PEMBINA INSTITUTE

▼


Solutions 3

to collaboratively devise workableintegrated solutions for achieving shared landscape-scale land managementobjectives. A single government agency dedicated to integrated landmanagement should be established toprovide oversight and facilitation of thisprocess. A key role for the government is to ensure that the solutions companiesdevise are equitable, and consistent withregional land management andconservation objectives.

3.1.6. Requirements for Lease Evaluation

The Oil Sands Tenure Regulation50/2000 is an impediment tosustainable land management. Theregulation generally requires that oilsands proponents drill one evaluationwell in each section (square mile) in notless than 60% of the sections withintheir oil sands lease to evaluate thenature of the oil sands resource. Thismeans that before an EIA has beencompleted, or an in situ project isapproved, a significant level of landdisturbance has already taken place. This is of critical importance in

woodland caribou ranges innortheastern Alberta, where levels ofdevelopment generally already exceedmaximum levels required to maintaincaribou populations in most areas.

Part 6 of the Oil Sands TenureRegulation enables the Minister ofEnergy to prescribe an acceptable levelof evaluation that is less than thatidentified above. It is unclear if thisflexibility is ever exercised by theminister. We recommend that thegovernment consider the requirementsfor evaluation in terms of landscapeimpacts, and either lower the minimumevaluation requirement, or provideguidance whereby the minister maywaive evaluation requirements in orderto mitigate landscape impacts.

3.2 Industrial Best Practices

RECOMMENDATION

Alberta Sustainable ResourceDevelopment should establish a LandManagement Planning Standard,modeled on the Forest ManagementPlanning Standard, to guide thedevelopment of operating plans for allresource companies working in a givenmanagement area.

Although improved industrial practicesalone will not be sufficient to avertsevere declines in biodiversity and otherenvironmental problems in the forests of northeastern Alberta, best practiceswill be important for keeping in situ developments below ecologicalthresholds and generally tempering the cumulative impact of proposed

developments. In the sections below we outline some of the key practicesthat could and should be put intowidespread use. The Departments ofSustainable Resource Development and Energy should require thesepractices as minimum standards for in situ development.

3.2.1. Seismic ExplorationSeismic lines account for the majority of the linear disturbance associated with in situ development. The averageseismic program associated with aSAGD project includes approximately1,000 km of line cutting.74 Minimizingthe seismic footprint is essential ifenvironmental values are to be protected in northeastern Alberta.

There are several problems withconventional seismic lines. First, they are perceived by wildlife as gaps in theforest, affecting their movement andterritory establishment.75 Second, becauseregeneration is extremely slow, the linesusually become long-term features on the landscape.76 Finally, conventionallines often become used as human accesscorridors, with various secondary effects.Seismic operators need to address all of these issues. Given the enormousnumber of lines being cut, the workingobjective should be to cut seismic linesthat have no discernable ecological effect within five years.

Reducing the width of lines andinstalling barriers to travel are the two main approaches for reducing the ecological impacts of seismic lines.The seismic industry in general ismaking excellent progress in this regard.Although the minimum width at which

lines are no longer perceived asecological features has yet to bedetermined by scientists, preliminaryevidence suggests that the 2.5 m linesbeing cut by some operators are anappropriate interim target for 2Dprograms. Because the density of seismic lines in 3D programs is usuallyextremely high, hand-cut lines andheliportable techniques should bepredominantly used for thesedevelopments.

If new lines 1) are cut at minimal width,2) do not disturb the soil and rootsystems, and 3) include barriers tomotorized access, then anecdotalevidence suggests that no extra effort (or cost) is required for reclamation. The lines appear to be visibly reintegratedinto the forest within five years.

3.2.2. Bitumen Extraction and Processing: Alternatives to SAGD

The infrastructure, water and energyneeds, and wastes associated with in situdevelopments are far greater than thoseassociated with conventional oil and gasoperations. As described earlier, thecumulative impacts of proposed in situdevelopments using SAGD technologywould be ecologically unsustainable if all were to proceed. It is imperativethat alternatives to SAGD that are less environmentally destructive bedeveloped and implemented as rapidlyas possible.

Two alternative approaches, now in the pilot phase, are VAPEX and in situcombustion.77 These new technologieshave the advantage of not requiring

3 Solutions


RECOMMENDATION

All government departments shouldestablish minimum standards, reflectingindustrial “best practices,” that companiesmust employ to minimize damage to theboreal forest.


Solutions 3

external energy or a large central facilityto create steam, which may reduce thedisturbance footprint associated withthis extraction practice. They also havesubstantially reduced water and energyrequirements, as well as emissions ofgreenhouse gases.

Another promising alternative in situtechnique, now undergoing field testing,is electrical heating.78 This technique hasbeen used throughout North Americafor bioremediation and is now beingapplied to the oil sands. The processinvolves passing an electrical currentfrom surface power distributionequipment to large vertical undergroundelectrodes placed in a grid pattern (Fig. 21). The electrical current heats the bitumen and vertical productionwells bring the heated fluid to thesurface. This approach is highly efficientand is expected to produce an equivalentvolume of bitumen in a tenth of thetime required by SAGD, while usingsubstantially less energy. The processalso uses substantially less water thanSAGD. The short duration of theproject is a key feature because it means that any disturbances wouldapproximate transient naturaldisturbances to which wildlife speciesare adapted, as opposed to extendedSAGD disturbances that are likely toresult in the extirpation of species.

3.2.3. Well Pad Construction and Reforestation

One of the main concerns associatedwith in situ well pad development is the risk of long-term loss of forestproductivity and habitat potential.Northeastern Alberta is dotted with

thousands of abandoned well pads fromearlier oil and gas activities that areclassified as reclaimed, but have notreturned to a forest ecosystem.79 Most of the delay in reforestation has to dowith inadequate care of the sites duringthe initial clearing process and withinadequate reclamation objectives andregeneration techniques at closure.Given the large number of new wellsanticipated with in situ development, itis critical that better approaches to wellpad development and closure beimplemented.

One of the key steps for reducing theimpact of well pads is to reduce thespatial and temporal extent of theirfootprint. Specific practices that can beundertaken are as follows:

• Minimize the area affected by clearing the minimum area possiblefor drilling and then immediatelyreforesting the majority of the site except for the actual wellinfrastructure;

• Minimize the number of exploratorycore holes drilled, and ensure thatthey are reforested immediately;

▲ FIGURE 21: Electrodes. PHOTO: E-TENERGY

• Minimize the number of well padsthrough directional drilling ofmultiple wells from the same pad and reusing existing well sites such as core holes when possible; and

• Reduce related infrastructure (roads,etc.) by maximizing the use of remoteoperating technology.

Another suite of best practices fallsunder the heading of minimizing on-siteimpacts:

• Avoid introducing native and non-native invasive plant species;

• Minimize long-term changes to thesite by drilling under frozenconditions; this means avoidingstripping of top soil, using snow andslash for filling contours andconstructing well pads, and avoidingthe use of off-site materials for padconstruction;

• Where top-soil stripping isunavoidable, ensure proper handlingand storage to protect and retainnatural propagules; and

• Leave construction slash whole.

3.2.4. Integration with Forestry Operations

The majority of the area proposed for in situ oil sands development is also licensed for forestry developmentthrough Forest Management Agreementsand quota holder licences. A significantreduction in the combined impact of these industries could be achievedthrough integrated planning. Inparticular, there are opportunities for placing forestry cutblocks in areasproposed for in situ infrastructure and for harmonized road construction.Reducing the road footprint is especially important because of the large ecological impact associated withroads (access issues, disruption of waterflow, erosion, etc.).80

Integration of in situ oil sandsdevelopment and forest harvest was first explored between Gulf Canada(now ConocoPhillips Canada) andAlberta-Pacific Forest Industries (Al-Pac)in the Surmont area. By overlayingdevelopment plans for the next 30 years,the companies were able to show thatcoordinated planning could result in a34% reduction in overall road accessand a 16% reduction in areas cleared forfacility development.81 In the integratedoperational plan Al-Pac adjusted itsharvest plans to coincide with theSAGD footprint. This offset the need toharvest elsewhere, reducing cumulativelevels of disturbance. Timber harvestedfrom these areas was transported usingConocoPhillips’ well site roads, thereforereducing additional forestry roadrequirements.

Being able to coordinate activitiesbetween SAGD development andforestry operations is dependent on the

3 Solutions


Planning betweenforestry operations andoil sands could reduce

road access and theamount of area cleared

for industrial facilities. PHOTO: DAVID DODGE,

PEMBINA INSTITUTE

▼


Solutions 3

presence of merchantable timber, theability of forestry companies to changeharvest plans, and a willingness to invest additional up-front resources in collaborative planning. The initialSurmont plan indicated thatapproximately $1 million in savings may be realized in road constructionover the life of the project.82 So far,ConocoPhillips has saved approximately$100,000 in associated tree clearing andTimber Damage Assessment costs.83

By using ConocoPhillips’ higher graderoads, Al-Pac also has reduced roadconstruction costs and will slightlydecrease haul cycle times. It is importantto note that, although integratedoperational planning is an effectivemitigation tool to help minimizedisturbance impacts of multiple landuses, the levels of disturbance associatedwith coordinated projects such as theSurmont project are still very high.

3.2.5. Footprint RestorationThe conventional approach to therestoration of seismic lines, roads, and well sites has been to simply plantgrass on the site at closure. This hasseriously delayed reforestation of thesedisturbances. A recent study found that65% of seismic lines cut three decadesago are still in a cleared state.84 As aresult, there is a significant historicfootprint that should be restored beforein situ development begins in earnest.Serious attention must be paid to thereforestation of existing industrialdisturbances before additionaldisturbances are added to the system. To more effectively mitigate in situimpacts, Alberta Sustainable ResourceDevelopment should implement reclam-ation standards that require in situ

disturbances to be reforested to the samestandards used by the forestry sector.

The importance of restoring existingdisturbances as an appropriate bestpractice has been recognized by theBoreal Caribou Committee, agovernment–industry group developingrecommendations for land managementwithin caribou ranges in Alberta.Through computer modeling projectionsbased on field data this committeeconcluded that aggressive reforestation of existing developments, and in someinstances developing maximumthresholds for development, would be required to maintain stable cariboupopulations in northeastern Alberta:

3.2.6. Monitoring of Biodiversity and Disturbances

There is a need to integrate resourcemanagement decision making withinformation about changes inbiodiversity. There is currentlyinsufficient information for in situoperators to be able to demonstrate their operations are not impactingregional biodiversity.

Development of an Alberta BiodiversityMonitoring Program (ABMP) wasinitiated in 1997. As currently designed,

Throughout the East Side of theAthabasca River (Caribou) Range,existing and future industrial footprintsneed to be reduced in order to sustainthe caribou population. Both industryand government must establishinnovative techniques and policies todevelop the natural resources on asmaller footprint, while restoringhistorical footprints.85

this initiative has the potential to be the most advanced and comprehensivebiodiversity monitoring program in theworld.86 The ABMP consists of a gridsystem of 1,656 sites across Albertawhere the presence of more than 2,000different species will be monitored todetermine changes over time.

The ABMP is supported by a broadrange of stakeholders from government,the forestry and energy sectors andenvironmental organizations, and iscurrently in a pilot phase. For theABMP to be fully operational in 2007,significant funding from a broad rangeof land users will be required.

Some in situ operators such asConocoPhillips and OPTI-Nexen arepiloting the incorporation of monitoringprograms like the ABMP into theiroperations. Both projects has investedfunds typically assigned to a project-specific monitoring program into sitesmonitored according to ABMPprotocols. Consistent monitoringprotocols across northeastern Alberta are essential to be able to determineregional level changes to biodiversitythat could be associated with large-scalein situ developments.

There is also an urgent need to trackdisturbances as they occur. Despite thefact that land clearing by the petroleumindustry now approaches that of theforest industry, the rate and distributionof landscape disturbance associated withpetroleum development is poorly trackedby both government and industry. TheAlberta Government does not track orreport on cumulative terrestrial footprints,and reporting of disturbances by individ-ual oil and gas companies is limited orabsent. Without readily available inform-ation about the current status of the land-scape it is difficult to make meaningfulassessments about the progress ofindividual companies in reducingimpacts, or to determine whetherecological thresholds are being exceeded.

A voluntary data collection pilot programby the Canadian Association of PetroleumProducers was planned for 2005, but wasdelayed to 2006.87 Although an industry-sponsored program would be a positivestep, what is ultimately needed is aprovince-wide land information systemthat provides up-to-date land useinformation for government, stakeholdersand proponents to assist in theimplementation of a sustainable landmanagement framework.

3 Solutions


Conclusion


In this report we have demonstratedthat in situ development of Alberta’s oilsands will result in unprecedentedimpacts to Alberta’s forests and posegrave risks to regional wildlifepopulations. Existing in situ leasesalready total 3.6 million ha, which ismore than ten times the size of themineable oil sands region. To put this in perspective, we are talking of anintensive industrial use zone larger than Vancouver Island. If existing leasesare subjected to the same industrialfootprint as the Long Lake project then296,000 ha of forest will be cleared forSAGD infrastructure and over 30,000km of access roads will be built.Furthermore, new leases continue to be awarded at a rapid pace, and newtechnologies for extracting less accessiblereserves are continually being developed.If the entire area underlain by oil sands is eventually developed, in situinfrastructure could impact almost 14 million hectares of forest – a landarea the size of Florida.

Until now, environmental concernsabout oil sands development havelargely focused on the impacts of oil sands mines. In response, thegovernment has suggested that extra conservation efforts will beundertaken outside of the 3,300 km2

mineable zone to offset the damagedone by the mining. The draft Mineable Oil Sands Strategy states,

In reality, the lands outside the miningzone continue to be allocated for in situ development and there are nobiodiversity objectives or plans at eitherthe regional or the provincial scale.There is still no concrete evidence thatthe government of Alberta is actingupon its stated intent to establish an Alberta Biodiversity Strategy88 – a strategy that could and should provide direction and support for thedevelopment of regional biodiversityobjectives. Rather, as we have shown in this paper, declines in a number of monitored species indicate thatecological tipping points are alreadybeing exceeded in northern Alberta.Moreover, in situ development,proceeding at an unprecedented rate, is likely to push many species over thebrink. Without a doubt, we are at acritical juncture with respect to landmanagement in northern Alberta.Decisions made today will determinethe fate of many wildlife species that are an important part of Alberta’s, and indeed Canada’s, natural heritage.

To ensure current and futuregenerations continue to enjoywildlife resources, habitat andpopulation objectives will beachieved within a regional andprovincial context through regionaland provincial programs.

The current development trajectory is at odds with public values. According to a poll released by the Alberta ForestProducts Association in 2006, 84% of Albertans believe that “Access and use of forests should be based firstly on preserving and protecting theenvironment and sustaining wild lifehabitat at the expense of sustainedeconomic benefits and jobs.”89 This same poll also found that only 23% ofAlbertans believe that the oil and gasindustry is doing a good job minimizingimpacts in the forest and 67% do not believe that the oil industry isaccountable in how it uses forest lands.In short, the petroleum sector is notmeeting the terms of its social licence toaccess resources on public lands.

It is clear that Albertans would neversupport the idea of treating the entireboreal forest underlain by oil sands (anarea the size of Florida) as a “write-off”area, yet this appears to be the implicitobjective of Alberta’s oil sands strategy.Changes to the current developmenttrajectory will need to be made if thegovernment is to meet its commitmentsto sustainable management of ourforests and the maintenance ofbiodiversity. Fortunately, as shown inthis report, solutions do exist – thoughthe window of opportunity is narrow. A top priority is to develop a long-termplan for the region that defines whereand when development is allowed toproceed, along with ecologicalthresholds limiting the intensity of

development in any given area. The plan

should also define wherenew protected areas are to

be established. As illustratedin Fig. 22, changes to land use

policy will provide greaterbenefits than operational-level

integrated landscape management or best practices and should therefore

be given the greatest attention. Giventhe current symptoms of environmentaldegradation and projected impactsunder a business-as-usual approach, no new oil sands leases should beawarded or developments approved until this planning is complete.

Conclusion


BestPractices

Provincial Land Use Planning and Biodiversity Strategy

Protected Areas (Conservation Offsets)

Cumulative Impact Limits

Integrated Landscape Management

FIGURE 22:Summary of strategies for addressing theenvironmental effects of SAGD development,showing the relative importance of each.

▼

Endnotes1 - 46

1 Government of Alberta, Mineable Oil Sands Strategy, draft fordiscussion (2005), area calculated by digitizing Fig. 1, p. 3.

2 Alberta Energy and Utilities Board, Alberta’s Reserves 2004 andSupply/Demand Outlook 2005-2014, Report ST98-2005(2005), p. 2-2. Established reserves for the mineable oil sandsare 5.09 billion m3 vs. 22.57 billion m3 for in situ.

3 Alberta Energy, Alberta’s Oil Sands (2004), p. 1.

4 Project overview available at www.longlake.ca.

5 All disturbance data for the OPTI-Nexen Long Lake Casestudy were obtained from the OPTI Canada Application forApproval and Environmental Impact Assessment 2000, approvedby the Alberta Government. Through application amendmentsand innovation, OPTI-Nexen are working to reduce theseimpacts by implementing best practices and alternativeengineering approaches. Innovations include implementing amega-pad concept to reduce the requirement for the numberof well pads, narrower seismic technologies and strategies toreduce water use (Michael Burt personal communication).More information about amendments to the Long Lakeproject is available at www.longlake.ca.

6 OPTI Canada, Application for Commercial Approval, Section B(2000), p. B1-22.

7 Alberta Energy and Utilities Board, Alberta’s Reserves 2004 andSupply/Demand Outlook 2005–2014, Report ST98-2005(2005), Fig. 2.3, p. 2-6.

8 OPTI Canada, Application for Commercial Approval, SectionC1.6 (2000), Fig. C1.6-A1, Attachment C1.6.A.

9 Government of Alberta, Exploration Regulation, AR 214/98,sec. 43 (1998), www.gov.ab.ca/qp/

10 OPTI Canada, Application for Commercial Approval, Section G(2000), p. G1-18.


12 OPTI Canada, Application for Commercial Approval, SectionC1.6 (2000), p. C1.6-33.

13 OPTI Canada, Application for Commercial Approval, Projectand EIA Summary (2000), p. 24.

14 OPTI Canada, Application for Commercial Approval, SectionC1.6 (2000), p. C1.6-45.



17 Alberta Energy and Utilities Board, Drilling WasteManagement, Directive 050 (1996).












29 Alberta Energy and Utilities Board, Alberta’s Reserves 2004 andSupply/Demand Outlook 2005–2014, Report ST98-2005(2005), p. 2-2.

30 Alberta Energy and Utilities Board, Alberta’s Reserves 2004 andSupply/Demand Outlook 2005–2014, Report ST98-2005(2005), p. 2-2.

31 OPTI Canada, Application for Commercial Approval, Section B(2000), p. B1-6. Stated project area equals 41 sections, whichconverts to 10,600 ha.

32 OPTI Canada, Application for Commercial Approval, Section G(2000), p. G1-18.

33 Examples: Petro-Canada, MacKay River Expansion ProjectEnvironmental Impact Assessment Report (2005); Rio AltoExploration Ltd., Kirby Project, Application for Approval(2002); Deer Creek Energy Limited, Josyln SAGD Project –Phase 2 Application for Approval (2003); Devon Oil, JackfishProject, Application for Approval (2004).

34 OPTI Canada, Application for Commercial Approval, Section G(2000), p. G1-16 and Project and EIA Summary (2000), p. 26-27.

35 OPTI Canada, Application for Commercial Approval, Section G(2000), p. G4-16. Total length of rights-of-way (roads,pipelines, power lines) is 339 km on 10,600 ha = 3.2 km/km2.

36 Alberta Energy, Oil Sands Agreements (2005),www.energy.gov.ab.ca.

37 Simon J. Dyer, Jack P. O’Neill, Shawn M. Wasel and StanBoutin, Avoidance of industrial development by woodlandcaribou, J. Wildl. Manage. 2001, 65:531-542.

38 D. Burke and E. Nol, Landscape and fragment size effects onreproductive success of forest-breeding birds in Ontario. Ecol.Appl. 2000, 10:1749–1761.

39 Petro-Canada, MacKay River Expansion Project EnvironmentalImpact Assessment Report, Volume IIC (2005), p 5-42.




43 Elston Dzus, Status of the Woodland Caribou (Rangifer taranduscaribou) in Alberta. Alberta Wildlife Status Report No. 30(2001).

44 Simon J. Dyer, Jack P. O’Neill, Shawn M. Wasel and StanBoutin, Avoidance of industrial development by woodlandcaribou, J. Wildl. Manage. 2001, 65: 531-542.

45 Simon J.Dyer, Jack P. O’Neill, Shawn M. Wasel and StanBoutin, Quantifying barrier effects of roads and seismic lines onmovements of female woodland caribou in northeastern Alberta.Can. J. Zool. 2002, 80:839-845.

46 Alberta Woodland Caribou Recovery Team, Alberta WoodlandCaribou Recovery Plan 2004/05-2013/14. (2005).


47 - 8947 East Side Range Planning Team, Boreal Caribou Committee,

East Side of the Athabasca River Range Plan (2005).

48 Richard Schneider, Brad Stelfox, Stan Boutin, and ShawnWasel, Managing the cumulative impacts of land-uses in theWestern Canadian Sedimentary Basin: A modeling approach.Cons. Ecol. 2003, 7, issue 1, article 8.

49 Petr Weclaw and Bob J. Hudson, Simulation of conservationand management of woodland caribou. Ecol. Model. 2004,177:75-94.

50 Scott Nielsen, Erin Bayne, Jim Schieck, J. Herbers, and Stan Boutin, A new method to estimate species and biodiversityintactness using empirically derived reference conditions.Biol. Cons., in review.

51 Steve G. Cumming and Fiona A. Schmiegelow, The RemoteAreas Project: Landscape and Local Effects of Habitat Structureand Anthropic Disturbance on Boreal Forest Birds, draftmanuscript.

52 Steve G. Cumming and Fiona A. Schmiegelow, The RemoteAreas Project: Landscape and Local Effects of Habitat Structureand Anthropic Disturbance on Boreal Forest Birds, draftmanuscript.

53 Steve G. Cumming and Fiona A. Schmiegelow, from Fig. 5.11in Alternative Futures: Alberta’s Boreal Forest at the Crossroads byRichard Schneider (2002), p. 74.

54 Dan Woynillowicz, Chris Severson-Baker, and MarloRaynolds, Oil Sands Fever (2005), www.pembina.org.



57 Alberta Chamber of Resources, Integrated LandscapeManagement Brochure (2005).

58 Alberta Forest Products Association, Alberta Forest UsageSurvey Results (2006), www.yourforest.org.

59 Natural Resources Canada, Tracking Survey of CanadianAttitudes towards Natural Resources (1997), www.nrcan.gc.ca.

60 Canadian Parks and Wilderness Society and World WildlifeFund Canada, Identification of Priority Areas for ProtectionWithin the Al-Pac Management Area Based on EcologicalCriteria (2004), www.cpaws-edmonton.org.

61 Imperial Oil Resources Ventures Limited, Kearl Oil SandsProject Environmental Impact Assessment Report (2005), Volume 2 p. 2-21.

62 Alberta Conservation Association, Unique Partnership HelpsConserve Northern Forest Habitat (2005), News release datedNovember 22, 2005.

63 BC Ministry of Agriculture and Lands, Muskwa-KechikaManagement Plan (1997), http://ilmbwww.gov.bc.ca/ilmb/lup/lrmp/northern/frtnelsn/app7/toc.html.

64 Quote from Shira Mulloy, Canadian Association of PetroleumProducers, found in B.C. Ministry of Sustainable ResourceManagement and Ministry of Mines News Release, Pre-tenurePlans Open Muskwa-Kechika to Gas Exploration (2003),http://ilmbwww.gov.bc.ca/ilmb/lup/lrmp/northern/mk/news_releases/nr062503.htm.

65 Michael Wenig and Michael Quinn, Integrating the Alberta Oiland Gas Tenure Regime with Landscape Objectives: One StepTowards Managing Cumulative Effects. Proceedings from,Access Management: Policy to Practice, A ConferencePresented by the Alberta Society of Professional Biologists,March 18-19, 2003.

66 www.cemaonline.ca.

67 BC Ministry of Agriculture and Lands, Muskwa-KechikaManagement Plan (1997), http://ilmbwww.gov.bc.ca/ilmb/lup/lrmp/northern/frtnelsn/app7/toc.html.

68 Dehcho Land Use Planning Committee, Respect for the Land: The Dehcho Land Use Plan (2005),www.dehcholands.org/docs.htm.

69 Salmo Consulting Inc., Dehcho Cumulative Effects Study. Phase 1: Management Indicators and Thresholds (2004),www.dehcholands.org/docs.htm.

70 Government of Alberta, Alberta’s Commitment to SustainableResource and Environmental Management (1999).

71 Alberta Sustainable Resource Development, Chungo CreekIndustrial Access Management Information Letter (2005).www.srd.gov.ab.ca/land/pdf/IL_2005-01_Chungo_Creek.pdf.

72 Government of Alberta, Mineable Oil Sands Strategy, draft fordiscussion (2005), p. 3.

73 Sustainable Resource Development, Forest ManagementPlanning Standard (2005).

74 Don Pope, Land Management Forester, Alberta-Pacific ForestIndustries, personal communication.

75 Erin Bayne, Steve Van Wilgenburg, Stan Boutin and KeithHobson, Modeling and field-testing of Ovenbird (Seiurusaurocapillus) responses to boreal forest dissection by energy sectordevelopment at multiple spatial scales. Land. Ecol. 2005,20:203-216.

76 Phil Lee and Stan Boutin, Persistence and developmentaltransition of wide seismic lines in the western boreal plains ofCanada, J. Ecol. Mgmt. 2006, 78:240-250.

77 Petroleum Technology Research Centre, JIVE Project,www.ptrc.ca.

78 www.e-tenergy.com.

79 Dave Cheyne, Management Forester, Alberta-Pacific ForestIndustries, personal communication.

80 S. Trombulak and C. Frissell, Review of ecological effects of roadson terrestrial and aquatic communities, Cons. Biol. 2000,14:18-30.

81 Canadian Association of Petroleum Producers, Evolving Approaches to Minimize the Footprint of the Canadian Oil and Natural Gas Industry (2004),www.capp.ca/raw.asp?x=1&dt=NTV&e=PDF&dn=81251.



84 Phil Lee and Stan Boutin, Persistence and developmentaltransition of wide seismic lines in the western boreal plains ofCanada, J. Ecol. Mgmt. 2006, 78:240-250.

85 East Side Range Planning Team, Boreal Caribou Committee,East Side Athabasca River Caribou Range Plan (2005).

86 Alberta Biodiversity Monitoring Program, Annual Report(2004), www.abmp.arc.ab.ca.

87 Canadian Association of Petroleum Producers, StewardshipProgress Report (2005), www.capp.ca/default.asp?V_DOC_ID=763&PubID=97224.

88 Government of Alberta, Strategic Business Plan 2006-09(2006), p. 22.

89 Alberta Forest Products Association, Alberta Forest UsageSurvey Results (2006), www.yourforest.org.

Endnotes


OIL SA

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NO

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URRAY, A

LBERTA

DEEP O

IL SAN

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OLD

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LBERTA

Environmental concerns aboutoil sands development have

mostly focused on the impactsof oil sands surface mines

already visible from space,just north of Fort McMurray,

Alberta. But this is just thebeginning. Deep oil sands

development has the potentialto affect a forest area

50 times larger (an area the size of Florida) than the

already leased oil sandsmining areas and eventually

cover 21% of Alberta.

Death by a ThousandCuts: Impacts of

in situ oil sands onAlberta’s boreal forest

examines the ecologicalimpacts of one existing deep

(or in situ) oil sands projectand then uses that information

to project the cumulativeimpacts of deep oil sandsextraction across northern

Alberta. Schneider and Dyeralso examine alternative

strategies of managing deepoil sands designed to help

protect the boreal forest.

www.oilsandswatch.orgwww.cpaws-edmonton.org

www.pembina.org

ThousandCutsDeath

by a

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Thousand Death Cuts - Pembina Institute · 2007-05-02 · iv DEATH BY A THOUSAND CUTS CPAWS / THE PEMBINA INSTITUTE Death by a Thousand Cuts Using FSC-certified paper is an easy and