Setting the Stage for Successful Reclamation Strategies. Session Number 19 Sponsored by: CAPLA Presented by: Paul Kelly

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1 Setting the Stage for Successful Reclamation Strategies Session Number 19 Sponsored by: CAPLA Presented by: Paul Kelly

2 Session Focus Upstream Oil & Gas Alberta Regulatory Framework & Reclamation Emerging Environmental Issues Question & Answer Top Picks Approach Relate to Surface Land & Environment Use Real World Examples

3 Session Elements Well Site Restoration Reclamation Emerging Issues

4 Well Site Restoration Well Down Hole Abandonment Well Casing Cut & Cap Well Facilities Decommissioning Contaminated Site Certificate (?) Well Site & Access Road Reclamation Reclamation Certificate

5 Well Site Restoration Abandonment Well Oriented Drilling Department Completions Department Mineral Land Department & Reclamation Surface Oriented Environment Department Surface Land Department

6 Assessment Phase I ESA historical review (Land Files & Landowner) Phase II ESA selective site sampling (Ground Disturbance) Delineation determine extent of contamination Confirmatory Testing prove remediation Monitoring measure progress

7 Decontamination Removal of Pollution Types of Contamination Release Crude Oil / Condensate Produced Water Drilling Fluids Barite (mud weight additive) Chromium / Zinc / Lead (other additives) Process Chemicals Glycols (gas dehydrators) Amines (sour gas treaters) Sulfolane (gas plants)

8 New Spills

9 Guidelines pursuant to EPEA Draft Tier 2 Eco-contact Guideline Derivation Protocol (AENV, July 2007) Alberta Tier 1 & 2 Soil and Groundwater Guidelines (AENV, June 2007) Soil Quality Guidelines for Barite: Environmental Health and Human Health (AENV, 2004) Salt Contamination Assessment and Guidelines (AENV, 2001) Pollution Prevention Health Protection Productive Use

10 Parameters Petroleum Hydrocarbons Crude Oil BTEX (benzene, ethylbenzene, toluene, xylenes) F1 (C6 C10) F2 (C>10 C16) F3 (C>16 C34) F4 (C>34 C50) PAHs (polycyclic aromatic hydrocarbons) Carcinogenic PAHs

11 Parameters Salinity Parameters Produced Water EC (electrical conductivity) SAR (sodium adsorption ratio) chloride other anions and cations Individual Trace Metals Pb (lead), Hg (mercury), etc. Ba as BaSO4 (barite)

12 Criteria Soil and groundwater numerical quality standards defined by Parameters of Concern Soil Type Exposure Pathways Land Use Natural Areas Agricultural Lands Residential/Parkland Commercial Industrial

13 Methods Dig & Dump (Landfill) Bioremediation (Biocell / Landfarm / Biopile) Thermal Desorption Road Bed Construction Activities ground disturbance Borehole Drilling Soil Excavation & Handling work space / odour issues Soil Loading & Transporting access

14 Phase II ESA ($25,000 to $35,000 +)

15 ($50, )

16 ($1,000, )

17 Objectives Human Health & Ecological Protection Remove Source Tier 1 Criteria Generic to Alberta Tier 2 Criteria Modified using site specific data Control Source Exposure Control site specific criteria plus mitigation Risk Management Certificate per Contaminated Area within Site

18 Reclamation Assessment Complete Components Detailed Site Assessment (DSA) Landscape Soils Vegetation

19 Reclamation Reclamation Guidelines pursuant to EPEA Upstream Oil & Gas Reclamation Certificate Application Guidelines (AENV, January 2008) Draft Reclamation Assessment Criteria for Pipelines (External Soils Advisory Board, 2001) Reclamation Criteria for Wellsites and Associated Facilities Forested Lands in the Green Area Update (ASRD, 2007) Wellsite Reclamation Criteria for Wellsites and Associated Facilities (AENV, 1995) Equivalent Land Capability

20 Reclamation Reclamation Activities ground disturbance Backfilling & Recontouring Subsoiling / Ripping / Decompaction Topsoil Replacement Seeding Fencing Weed Control

21 Reclamation Backfill / Contour

22 Reclamation Topsoil / Admixing / Compaction

23 Reclamation Ready for DSA

24 Reclamation Reclamation Objectives Equivalent Land Capability Reclamation Certificate Application (RCA) Landowner Consulted / Contacted Completed DSA & Site Passes Drilling Waste Documents / Phase II ESA / Phase I ESA / Phase II ESA / RCA Provided to Landowner (30 days prior) Professional Declaration Form Competencies / Joint Practice Standard Overlap Exemptions Land Use Change Documentation Other Reclamation Certificates Unresolved Landowner Complaint - Non-routine RCA

25 Reclamation SUCCESS REQUIRES Internal Corporate Harmony Surface Land Environment Communications Different companies have different structures Establish corporate goals get on the same page Develop & document effective business procedures Make clear roles & responsibilities Make agreed upon adjustments as necessary

26 Emerging Issues Urban Encroachment Set Back Issues active / abandoned wells Land use changes Closer proximity to human receptors Closer proximity to foreign contamination sources Higher release consequence risk Multiple landowners Urban Developers a new type of stakeholder Municipal Government involvement

27 Emerging Issues Coal Bed Methane & Groundwater Landowner concerns about groundwater quality Information vs. Misinformation Regulators vs. NGO s vs. Corporations New well testing requirements implemented Methane occurs naturally in some water wells Carbon isotope test is relatively new and inconclusive Media, public & judiciary lack expertise to make call Issue has become a political football

28 Q&A Questions?

29