Section 1 Project Introduction

Transcription

1 Section 1 Project Introduction

2 TABLE OF CONTENTS Page 1 PROJECT INTRODUCTION PROJECT BACKGROUND PROJECT PROPONENT PROJECT OVERVIEW PROJECT REGULATORY APPROVAL PROCESS Existing Approvals Application Approvals Additional Approvals Associated with the Application APPLICATION GUIDE AND DESCRIPTION REGIONAL SETTING DEVELOPMENT PLAN Development Schedule Project Development Area PUBLIC CONSULTATION PROGRAM ENVIRONMENT HEALTH AND SAFETY PROGRAM... 8 List of Tables Page Table 1.-1 Summary of Project Components... 1 Table Project Development Schedule... 7 List of Figures Figure Figure Figure Figure Figure Project Location Pengrowth Oil Sands Leases and Regional Development Resource Development Area and Disturbance Footprint Initial Project Development Topography in the Resource Development Area December 211 Page 1-i

3 1 PROJECT INTRODUCTION Pengrowth Energy Corporation (Pengrowth) received approval for the Lindbergh SAGD Pilot Project (Pilot Project) in July 211 (Approval #641H). The Pilot Project is currently under construction and is expected to commence operations in Q Pengrowth is filing this application as an amendment of Scheme Approval #641H to expand the capacity of the Project. The proposed Lindbergh SAGD Project (the Project) is designed for an annual average production rate of 1,987 m 3 /d. The Project includes installation/modifications of the following: three multi-well well pad locations with a total of 23 new horizontal well pairs; construction of a new Central Processing Facility (CPF) including water recycling technology and cogeneration facilities; connection of the well pads to the CPF with above ground pipelines, roads, and power distribution lines; fuel gas line tied into a third party gas distribution system; overhead power line tied into a nearby ATCO power sub-station; connection of the pilot wells to the CPF and suspension of Pilot Plant operations; source water pipeline from the Pilot source water pond to the CPF; and expansion of both the Project Area and the Resource Development Area. The various components of the Project are listed in Table Table 1.-1 Summary of Project Components Project Component Area (ha) Central Processing Facility 24.1 Well Pad D2 4. Well Pad D3 3.8 Well Pad D4 4.7 Well Pad D 4.3 Construction Camp 1.1 Operations Camp 3.2 Supervisor s Camp.8 Camp Access.2 Remote Sump Remote Sump Borrow Pit December 211 Page 1-1

4 Table 1.-1 Summary of Project Components Project Component Area (ha) Borrow Pit 2.9 Borrow Pit Borrow Pit Soil Storage 2.8 Access/Pipe Corridor 29.9 Source Water 2.3 Pipeline Re-routing 1.1 Total Pengrowth has actively engaged stakeholders to explain the Project and to understand their concerns. An updated summary of Stakeholder Consultation conducted to date is included as part of this application. 1.1 PROJECT BACKGROUND In 24, Pengrowth Corporation (Pengrowth) acquired the Lindbergh leases from Murphy Oil Company Limited (Murphy). The Pengrowth Lindbergh Field lands are located within the following mineral leases: , A33, , and These mineral leases comprise approximately 8,32 hectares (ha) and are situated approximately 22 km southeast of Bonnyville, Alberta (Figures and 1.1-2). Murphy operated the field as an Enhanced Oil Recovery (EOR) project using the cyclic steam stimulation (CSS) process throughout most of the 198 s and the early 199 s. Pengrowth is currently upgrading the existing facilities and drilling two horizontal SAGD well pairs for a pilot-scale Steam Assisted Gravity Drainage (SAGD) performance test in the Lloydminster Formation. Pengrowth has identified a Project Area and a Resource Development Area (RDA) for the Lindbergh SAGD Project (Figure 1.1-3). The Project Area is the larger resource area that will support all stages of development for the entire 2 year life of the project and encompasses nine sections of land. The RDA contains the bitumen resources required for the initial stages of SAGD development and includes five sections of land. The Project Area and RDA are shown on Figure and are as follows: Project Area: Sections 3 and 31, Township 8, Range 4, W4M; and Sections 12, 13, E ½ 14, 23, 24, 2, E ½ 26 and 36, Township 8, Range, W4M. December 211 Page 1-2

5 Resource Development Area: Sections 13, E ½ 14, 23, 24, 2 and E ½ 26, Township 8, Range, W4M. Pengrowth has identified the location and trajectories of the first four well pads with up to 31 horizontal well pairs (Figure 1.1-4). The initial development will utilize three of these pad locations with the fourth pad as a contingent. Data from the ongoing delineation drilling program will be used to verify the initial three well pad selections and to locate future pads within the RDA. 1.2 PROJECT PROPONENT Pengrowth is a publically traded Canadian oil and gas exploration and production company based in Calgary, Alberta. Pengrowth operates numerous oil and gas properties that span the Western Canadian Sedimentary Basin in Alberta, British Columbia, and Saskatchewan, with production exceeding 7, barrels of oil equivalent per day (boed). Pengrowth's property portfolio contains some of the highest quality assets in Canada's energy sector with an average reserve life index of approximately ten years on a proved plus probable basis. Pengrowth's strong suite of conventional assets (approximately % natural gas and % crude liquids) is balanced by an expanding inventory of unconventional resources including coalbed methane and oilsands interests. Pengrowth owns a 1% working interest in the 8,32 ha of oilsands mineral leases in the Lindbergh field. The name and address of the applicant for the Project is: Pengrowth Energy Corporation 21, 222 3rd Avenue SW Calgary, Alberta T2P B2 Correspondence concerning this application should be directed to the above address to the attention of: Steve De Maio, Vice President, In Situ Oil Development and Operations Phone: (43) Fax: (43) Lindbergh@Pengrowth.com December 211 Page 1-3

6 1.3 PROJECT OVERVIEW The planned facilities Pengrowth is proposing for the Lindbergh SAGD Project include a number of wells pads and associated infrastructure such as well pairs, roads, above ground gathering and distribution systems, power lines, and a Central Processing Facility (CPF). In addition, existing infrastructure such as the North Saskatchewan River intake, pump station, source water pond at the pilot plant, and pipeline will utilized for the SAGD Project. A raw water pipeline from the source water pond to the CPF will be installed and buried. Dual buried water disposal pipelines from the CPF to the existing water disposal well infrastructure will also be installed. A gas pipeline will be tied into a third party gas distribution system and an overhead power line will be installed from the nearest sub-station to the CPF. A cogeneration unit will be constructed as part of the CPF to provide power for local use in the plant and wells. Raw water and produced water are treated at the CPF and re-used to generate steam which is sent to each of the well pads via above ground pipelines for injection into the individual well pairs. Produced fluids (bitumen, water, gas) are transported from the well pads to the CPF via above ground pipelines. The bitumen, water and gas are separated at the CPF. The produced gas is burned in the steam generators, the bitumen is blended and trucked to a marketing point, and the water is recycled. The Lindbergh SAGD Project will produce a maximum annualized bitumen rate of 1,987 m 3 /d (12, bpd) over an expected project life of 2 years. During the life of the Project there will be 6 to 6 well pairs drilled from approximately eight to nine well pads. This Project is expected to produce approximately 17. MMm 3 (17 MMbbls) of bitumen. The cumulative steam to oil ratio (CSOR) for the Project is expected to be PROJECT REGULATORY APPROVAL PROCESS EXISTING APPROVALS The Lindbergh SAGD Pilot Project is currently operating under: ERCB Approval No. 641H; EPEA Approval No ; Water Act Approval No , as amended; and ERCB Water Disposal No and 6. Copies of these approvals are provided in Appendix 1. December 211 Page 1-4

7 1.4.2 APPLICATION APPROVALS The approval application package submitted hereby is for the amendment of ERCB Approval No. 641H in accordance with ERCB Directive 23 requirements. Pengrowth is also applying for an amendment of EPEA Approval No ERCB Approval approval to construct and operate the Project pursuant to Sections 1 and 11 of the Oil Sands Conservation Act and Sections 3 and 33 of the Oil Sands Conservation Regulation; and approval to construct and operate a distribution and gathering pipeline system within the Project development area pursuant to Part 4 of the Pipeline Act. AENV Approval approval, pursuant to Part 2, Division 2 and Section of the Alberta Environmental Protection and Enhancement Act, to construct and operate the Project including facilities to recover and treat bitumen and processed water; approval, pursuant to Part 2, Division 2 and Section of the Alberta Environmental Protection and Enhancement Act, to construct and operate the cogeneration facility; and conservation and reclamation approval, as required under the Conservation and Reclamation Regulations, to develop, operate and reclaim the central processing facility of the Project ADDITIONAL APPROVALS ASSOCIATED WITH THE APPLICATION Pengrowth will file separate applications for those parts of the Project that are legislated under various other statutes. Provincial application and approval requirements applicable to the Project which will be submitted under separate cover are: surface rights requirements pursuant to the Public Lands Act (i.e., access road, natural gas pipeline, water pipeline); site surface disturbance clearance pursuant to the Historical Resources Act; production and injection well drilling licenses issued pursuant to the Oil and Gas Conservation Act; installation of a natural gas pipeline from third party facility to the CPF, pursuant to the Pipeline Act; Development Permits pursuant to the Municipal Government Act, from the County of St. Paul for construction and operation of the Project and related infrastructure; December 211 Page 1-

8 cogeneration facility approval as per Part 2 Section 11 of the Hydro and Electric Energy Act to be filed with the Alberta Utilities Commission; and electrical power interconnections issued pursuant to the Electrical Utilities Act. 1. APPLICATION GUIDE AND DESCRIPTION This application for the Project is found in one volume consisting of the following components: Section 2 Project Description Section 3 Stakeholder Consultation Section 4 Environmental Setting Section Conceptual Conservation and Reclamation Plan Appendix 1 Existing Approvals Appendix 2 Caprock Analysis Appendix 3 Consultation Appendix 4 Air Quality Assessment Appendix Noise Assessment Appendix 6 References Appendix 7 Project Team Appendix 8 Acronyms and Glossary 1.6 REGIONAL SETTING The Project is located approximately 22 km southeast of Bonnyville, Alberta, approximately 18 km north of Lindbergh, and approximately 19 km east of the town of Elk Point in the County of St. Paul in the eastern-central region of Alberta. The Project is situated within the Alberta Plains region and the North Saskatchewan River drainage basin. This area is characterized by relatively high relief, ridged to hummocky and rolling terrain. An aerial photograph and topography of the Project Area is presented in Figure The Project is located on Crown land with both anthropogenic and natural cover. Land surrounding the Project Area is used primarily for cattle grazing, although some hay cropping is also practiced. There are several oilfield producers and industrial service providers in the immediate vicinity of the site. The Project is located in a sparsely populated rural area southwest of Muriel and northwest of Garnier. December 211 Page 1-6

9 1.7 DEVELOPMENT PLAN DEVELOPMENT SCHEDULE Table shows a development schedule for the Project. Table Project Development Schedule Activity Project Viability Assessment Baseline Environmental Assessment Engineering Support Regulatory Submission Regulatory Review Regulatory Approval Construction and Drilling Commissioning and Initial Circulation Conversion to Production Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q PROJECT DEVELOPMENT AREA The Project development area is presented in Figure PUBLIC CONSULTATION PROGRAM Pengrowth has had an ongoing dialogue with local stakeholders since 21 regarding the environmental and social aspects of SAGD development in the Lindbergh Area. Specific discussion on the Project began in January of 211. Stakeholder groups consulted to date for the Project have included regulatory review agencies, persons or companies having interests in the land on or near the Project, Aboriginal communities and First Nations, regional and municipal governments, regional service providers, and special interest groups. During the Project s planning stages, opportunities are provided for questions and concerns to be raised by stakeholders so that they can be addressed in a constructive manner. Resolution of issues has been incorporated, where possible, into the Project s development plans. Following project approval, Pengrowth will continue to work in an open and inclusive manner with all communities and stakeholders impacted by its operations. December 211 Page 1-7

10 Details of Pengrowth s public consultation activities for the Project are provided in Section ENVIRONMENT HEALTH AND SAFETY PROGRAM Pengrowth will provide responsible management for the Project by ensuring that health, safety, and environmental policies and procedures are established and implemented. Pengrowth has a formal documented corporate EH&S Program, which will be enhanced to incorporate a site specific program for the Project. All Pengrowth employees are trained and familiar with all company policies and procedures. Pengrowth employees, contractors and consultants will receive proper instructions on Pengrowth standards and procedures through on-site training programs in accordance with OH&S guidelines and requirements. By following this approach, the Project will be developed and operated in a safe, professional and responsible manner. Details of Pengrowth s environment, health and safety program are provided in Section 2.9. December 211 Page 1-8

11 FIGURES December 211

12 Back Main Menu I Search Main TOC T64 Happy Hollow U V Cold Cold I.R. 149B 897 R ³ ² ³ ² S and T63 28 Cold La Corey iv e r U V 892 er R iver Grand Centre ³ ² Beav ³ ² 41 T62 Ardmore lc Mu r i e Fort Kent re ek Cold I.R. 149 ³ ² 28 T61 Moose Prov. Park U V Glendon U V Bonnyville 69 Moose Therian U V 882 T6 ³ ² Beaverdam 28A Sinking St. Vincent Muriel U V 67 T9 Holyoke Kehewin I.R. 123 U V 897 Lindbergh Project Area T8 ³ ² 28 Puskiakiwenin I.R. 122 ³ ² 41 T7 Frog Elk Point Lindbergh Sa at sk chewan Ri ver h rt T6 No St. Paul R7 R8 River Intake Station W4M R6 Unipouheos I.R. 121 Whitney s Prov. Park R R 2 W4M R3 R4 Northern Valley Fort McMurray Legend Project Area Kilometres Water Pipeline Map Area Edmonton U V REF: Geobase, 21. PROJECT: Lindbergh SAGD Project Calgary TITLE: Project Location DRAWN: PS/SL CHECKED: KK DATE: Oct 2/11 PROJECT: FIGURE: 1.1-1

13 R R 4 W4M I 16 1 Muriel T 9 T Michel Remote Sump Remote Sump Borrow Pit 4 CPF Well Pad D3 Well Pad D2 Construction Camp Borrow Pit Operations Camp 2 21 Borrow Pit 2 Garnier Well Pad D Well Pad D Borrow Pit 1 Supervisor's Camp Bullet T 8 T 7 Legend Pengrowth Leases Project Area Resource Development Area Surface Dispositions 1 2 km REF: EPEA -Footprint-REV.dwg, Oct. 27, 211; NHC (hydrology), 211; Global Oilfield Surveys Inc., 1-M1.dwg. PROJECT: TITLE: R R 4 W4M Pengrowth Oil Sands Leases and Regional Development Lindbergh SAGD Project DRAWN: PS CHECKED: KK DATE: Dec 1/11 PROJECT: FIGURE: 1.1-2

14 Facility Count Hectares CPF Well Pad D2 1 D1D Well Pad D Well Pad D Well Pad 34 D Construction Camp Operations Camp Supervisor's Camp 1.8 Camp Access 1.2 Remote Sump Remote Sump Borrow Pit Borrow Pit Borrow Pit Borrow Pit Soil Storage Access/Pipe Corridor Source Water Pipeline Re-routing Total: Remote Sump 2 Borrow Pit 4 36 Remote Sump 1 2 Well Pad D3 CPF R R 4 W4M 31 3 I Construction Camp Borrow Pit 3 Well Pad D Operations Camp T 8 Well Pad D4 Borrow Pit 2 Garnier 1 14 Well Pad D Legend Project Area Resource Development Area Pilot Footprint Streams with Defined Channels Drainages without Defined Channels Waterbody Proposed Footprint CPF 1 Well Pad Construction Camp Operations Camp Supervisor's Camp & Access Remote Sump Borrow Pit Soil Storage Access/Pipe Corridor Source Water Pipeline Re-routing km Scale 1:3, REF: EPEA -Footprint-REV.dwg, Oct. 27, 211; NHC (hydrology), PROJECT: TITLE: Supervisor's Camp 12 Borrow Pit 1 Resource Development Area and Disturbance Footprint Lindbergh SAGD Project 7 DRAWN: SL CHECKED: KK DATE: Nov 28/11 PROJECT: FIGURE: 1.1-3

15 Facility Count Hectares CPF Well Pad 1D Well Pad 2D Well Pad 3D Well Pad 34 4D Construction Camp Operations Camp Supervisor's Camp 1.8 Camp Access 1.2 Remote Sump Remote Sump Borrow Pit Borrow Pit Borrow Pit Borrow Pit Soil Storage Access/Pipe Corridor Source Water Pipeline Re-routing Total: Remote Sump 2 Borrow Pit 4 36 Remote Sump 1 2 Well Pad D3 CPF R R 4 W4M 31 3 I Construction Camp Borrow Pit 3 Well Pad D Operations Camp T 8 Borrow Pit 2 Well Pad D4 Garnier 1 Legend Project Area Resource Development Area Pilot Footprint Streams with Defined Channels Drainages without Defined Channels Waterbody Proposed Footprint CPF Well Pad 1 Construction Camp Operations Camp Supervisor's Camp & Access Remote Sump Borrow Pit Soil Storage Access/Pipe Corridor Source Water Pipeline Re-routing Trajectory km Scale 1:3, REF: EPEA -Footprint-REV.dwg, Oct. 27, 211; NHC (hydrology), Well Pad D PROJECT: TITLE: Supervisor's Camp Borrow Pit 1 Initial Project Development 18 Lindbergh SAGD Project 7 DRAWN: SL CHECKED: KK DATE: Dec 1/11 PROJECT: FIGURE: 1.1-4

16 Back Main Menu I Main TOC Search Resource Development Area Project Area Legend 6 Pilot Footprint Contour (m interval) Streams with Defined Channels Drainages without Defined Channels 6 6 Proposed Footprint CPF 6 6 Waterbody 64 Operations Camp 6 Construction Camp Supervisor's Camp & Access 6 64 Borrow Pit Remote Sump Well Pad PROJECT: Soil Storage Access/Pipe Corridor Lindbergh SAGD Project Source Water Pipeline Re-routing. 1 km Scale 1:22, REF: EPEA -Footprint-REV.dwg, Oct. 27, 211; NHC (hydrology), 211. TITLE: Topography in Resource Development Area DRAWN: SL CHECKED: KK DATE: Nov 28/11 PROJECT: FIGURE: 1.7-1