Seven Generations Energy Ltd.

Transcription

1 Decision D Power Plant Exemption at Gold Creek Gas Plant January 17, 2018

2 Alberta Utilities Commission Decision D Power Plant Exemption at Gold Creek Gas Plant Proceeding Application A001 January 17, 2018 Published by the: Alberta Utilities Commission Fifth Avenue Place, Fourth Floor, 425 First Street S.W. Calgary, Alberta T2P 3L8 Telephone: Fax: Website:

3 Alberta Utilities Commission Calgary, Alberta Decision D Proceeding Power Plant Exemption at Gold Creek Gas Plant Application A001 1 Decision summary 1. In this decision, the Alberta Utilities Commission must decide whether to approve an application from for a power plant exemption for the construction and operation of two generators within its new sweet gas processing facility, designated as the Gold Creek Gas Plant. After consideration of the record of the proceeding, and for the reasons outlined in this decision, the Commission finds that approval of the exemption is in the public interest having regard to the social, economic, and other effects of the project, including its effect on the environment. 2 Introduction and background 2. (Seven Generations) filed an application with the AUC for a power plant exemption for the construction and operation of two generators within the Gold Creek Gas Plant. Seven Generations requested an exemption from the requirements of Section 11 of the Hydro and Electric Energy Act because it intends to generate electricity exclusively for its own use. This application was registered on September 28, 2017, as Application A The Gold Creek Gas Plant would be located within the northwest quarter of Section 13, northern half of Section 14, southern half and northeast quarter of Section 23, and western half of Section 24 of Township 67, Range 5, west of the Sixth Meridian, approximately 50 kilometres south of Grande Prairie and five kilometres east of Highway On October 20, 2017 and November 15, 2017, the Commission issued information requests to Seven Generations pertaining to environment, noise, and the participant involvement program. Seven Generations responded to the information requests on November 3 and 21, 2017, respectively. 5. The Commission issued a notice of application on November 16, The notice was sent directly to stakeholders identified by Seven Generations as being located within 2,000 metres of the project area. The notice was also published on the AUC website and notification was automatically ed to efiling System users that had chosen to be notified of notices of application issued by the Commission. The deadline for filing submissions with the AUC was December 7, No submissions were received by the submission deadline of December 7, Decision D (January 17, 2018) 1

4 Power Plant Exemption at Gold Creek Gas Plant 3 Discussion 7. Seven Generations indicated the Gold Creek Gas Plant would process gas from Seven Generations resource holdings in the Karr and Kakwa River gas field, which is approximately 80 kilometres south of Grande Prairie. Seven Generations proposed to install two Titan 130 natural gas-fired turbine generators, with each generator engine having an operating load of 13.5 megawatts (MW). It indicated that the generated power would be distributed by a main power distribution switchgear designed for a voltage of 13.8 kilovolts (kv). Critical services power would be provided by one 2.5-MW natural gas-fired generator and one 1.5-MW diesel-fired generator and all power generating units would be located in Legal Subdivision 10 of Section 23, Township 67, Range 5, west of the Sixth Meridian. 8. Seven Generations stated that it applied for a contract with ATCO Power for distribution service fed from a 25-kV distribution line. This service is planned to provide backup power to the on-site Titan 130 generators or to provide main supply power, depending on the electrical market conditions and the amount of power ATCO Power can supply. Seven Generations indicated that it would not be exporting energy to the local utility grid at this time. 9. The Gold Creek Gas Plant would be located on Crown land within the Municipal District of Greenview No. 16. Seven Generations obtained a miscellaneous lease, MLL , from the Alberta Energy Regulator (AER) for a Crown land disposition. 10. Seven Generations completed a participant involvement program in accordance with AER Directive 056: Energy Development Applications and Schedules and indicated that the target audience for the Directive 056 participant involvement program meets the requirements set within Appendix A of AUC Rule 007: Applications for Power Plants, Substations, Transmission Lines, Industrial System Designations and Hydro Developments. It notified stakeholders within 2,000 metres of the project area and stated there were no residences located within 1,500 metres of the project area and that the nearest surface development was a Canadian Natural Resources Ltd. gas plant, located approximately 1,700 metres northwest of the project area. The Municipal District of Greenview No. 16 was notified on November 9, 2016, and an application for a development permit was submitted and is currently being reviewed. 11. First Nations consultation was carried out in accordance with the Government of Alberta s First Nations Consultation Policy and Land Management and Resource Development and Alberta s First Nations Consultation Guidelines on Resource Development and Land Management. Seven Generations stated that the Aboriginal Consultation Office found the consultation to be adequate. 12. Seven Generations also completed consultation with Nils Anderson, an Alberta Environment and Parks wildlife management area biologist, and contracted Roy Northern to conduct field assessments and prepare environmental mitigation measures. It stated that if mitigation measures from the environmental protection plan were followed, the project would not have detrimental impacts on the environmentally sensitive areas in the vicinity of the project site. 13. Seven Generations indicated that noise levels from the project were predicted to comply with daytime and nighttime permissible sound levels of AER Directive 038: Noise Control and AUC Rule 012: Noise Control, and that the noise attenuation measures identified in the noise 2 Decision D (January 17, 2018)

5 Power Plant Exemption at Gold Creek Gas Plant impact assessment would be implemented automatically, because noise attenuation is an inherent part of the programmed process control system. 14. Seven Generations indicated that the resulting ground-level concentrations of nitrogen dioxide (NO2) from both generator engines were predicted to be lower than the limits set by the Alberta Ambient Air Quality Objectives. 4 Findings 15. The Commission finds that the application meets the information requirements stipulated in Rule The Commission has determined that the technical, siting, emissions, environmental and noise aspects of the power plant have been addressed. Seven Generations participant involvement program has been conducted and there are no outstanding public or industry objections or concerns. 17. The Commission is satisfied that no significant environmental impacts will result from the proposed power plant provided that the mitigation measures from the environmental protection plan are followed. 18. The Commission finds that the noise impact assessment submitted by Seven Generations fulfills the requirements of Rule 012 and the power plant will not exceed permissible sound levels. 19. Based on the foregoing, the Commission considers the project to be in the public interest in accordance with Section 17 of the Alberta Utilities Commission Act. Decision D (January 17, 2018) 3

6 Power Plant Exemption at Gold Creek Gas Plant 5 Decision 20. Pursuant to Section 13 of the Hydro and Electric Energy Act, the Commission approves the application and grants Seven Generations an exemption from Section 11 of the Hydro and Electric Energy Act, conditional upon the following terms and conditions: a) The power plant shall be located in Legal Subdivision 10 of Section 23, Township 67, Range 5, west of the Sixth Meridian, as further described in the application. b) The power plant shall consist of two gas-fired 13.5-MW generating units, with a total capability of 27 MW, and critical services power would be provided by one 2.5-MW natural gas-fired generator and one 1.5-MW diesel-fired generator, as further described in the application. c) Seven Generations will not export energy from the power plant to the Alberta Interconnected Electric System, with energy generated being solely for Seven Generations own use. Should the proposed power plant be connected and operated in synchronism with the electric system of the local utility company, Seven Generations shall apply for a connection order from the AUC, pursuant to Section 18 of the Hydro and Electric Energy Act prior to connecting the power plant. d) Seven Generations must meet the noise requirements of AUC Rule 012. e) This exemption is not transferable unless approved by the Commission. 21. The Commission may cancel or suspend this exemption, in whole or in part, in accordance with Section 41 of the Hydro and Electric Energy Act, or may review this exemption, in whole or in part upon its own motion, or upon an application by an interested party, in accordance with Section 17 of the Alberta Utilities Commission Act. Dated on January 17, Alberta Utilities Commission (original signed by) Anne Michaud Commission Member 4 Decision D (January 17, 2018)