Let s talk. About everything. Let s put it all on the table. Every sustainable solution, every safety practice, every infrastructure decision we want

Transcription

1 Let s talk. About everything. Let s put it all on the table. Every sustainable solution, every safety practice, every infrastructure decision we want to share it all with you because it has an impact on your community. The success of the Taiga Project starts with good communication. We re not just here to talk. We re here to listen.

2 1 Letter from the CEO 2 Alberta Roots 2 The Basics 2 MISSION 2 In BUSINESS FOR THE LONG HAUL 5 Project Description 6 Health and Safety 6 ENVIRONMENT 8 Project schedules 9 Local Involvement 9 Public Consultation 10 CONTACT INFORMATION

3 1 We re Osum. This Public Disclosure Document outlines our preliminary plans for the Taiga Project, an in situ oil sands project in the Cold Lake area of Alberta. In our preparations, we carefully considered the timing of its release. Some of us felt it would be better to wait longer than we did, because our geologists would know more about our leases, and we d be able to provide you with greater detail and more definitive statements about what we have in mind. Ultimately, however, we made the choice to involve you in our decision making as early as possible. We will need to update you as our plans become more concrete, but it was decided that the best way to dialogue with our stakeholders would be to start the conversation early. Open and transparent communication is a priority for Osum. We want to build and maintain a strong understanding of the issues that affect you when it comes to the Taiga Project. We want to be a good neighbour. In the following pages you ll find a brief description of our company, and a description of the proposed Taiga Project. We will walk you through the location, timing, infrastructure, environmental factors, and community impacts of the project. We also want to hear your thoughts, concerns, feedback and suggestions, and welcome you to contact us should there be any questions that this document does not answer to your satisfaction. Yours truly, Richard Todd Chairman and CEO Osum Oil Sands Corp.

4 2 We re Albertan. Alberta Roots The future of the Alberta Advantage depends on environmentally sustainable solutions to developing some of the largest natural resources on the planet. The expertise that is crafting these solutions lives here in Alberta, within adaptive, entrepreneurial, Albertan companies like Osum. Osum s technology portfolio addresses the specific challenges of our province s oil sands. We believe we can and must create solutions that reduce impact to wildlife and habitat, use less water and minimize emissions. As people who live and work in Alberta, we know that responsible business practice means caring for the environment, our neighbours, our children and their futures and we take this responsibility seriously. The Basics Under the Memorandum of Understanding (IL 96-7) between the Energy Resources Conservation Board and Alberta Environment with respect to oil sands developments, Osum will be filing a joint application related to the Taiga Project in the Cold Lake area under the Environmental Protection and Enhancement Act and the Oil Sands Conservation Act. Mission Our mission at Osum is to provide secure, safe energy to the world through innovative and responsible business practice. We believe that adopting a positive and creative attitude, and moving forward with confidence in our ability to solve problems makes us more likely to succeed in this mission. In Business for the Long Haul The Taiga Project represents potential production of 35,000 barrels per day for approximately 30 years. This means Osum will be a citizen of the Cold Lake / Bonnyville area for the long term. We anticipate hiring numerous local staff in the coming years, with additional job creation through service contracts awarded to local vendors and additional economic benefits throughout the community. The Taiga Project is also positioned to make further advances in environmental management. For example, the Taiga Project will be among the first in Alberta to eliminate fresh water usage for steam generation. Other technologies some finalized and some yet to be decided will help to ensure that the project meets stringent standards with respect to surface footprint, safety, and environmental emissions including greenhouse gas.

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6 4 Encana Foster Creek T69 CNRL Primrose North T68 T67 CNRL Primrose South CNRL Primrose East Primrose Lake T66 Wolf Lake Imperial Mahihkan North Hwy #892 Imperial Nabiye Hwy #897 Taiga Project I.R. 149c T65 CNRL Wolf Lake Imperial Cold Lake Marie Lake Provincial Park T64 T63 Hwy #41 Range Road #462 Hwy #55 Husky Tucker Lake Hwy #55 Shell Orion I.R. 149b Cold Lake T62 Hwy #28 Hwy #28 Bonnyville R6 R5 R4 R3 R2 R1

7 5 We re Efficient. Project Description Osum has purchased 30 sections of bitumen leases in the Cold Lake / Bonnyville region. Specifically, the Taiga Project area is located in Townships 65 and 66, and in Ranges 1 and 2 west of the 4th meridian. No development will occur within the boundary of the Provincial Park. Bitumen will be recovered from the Lower Grand Rapids and Clearwater formations within the project area, at depths between 360 and 460 metres. These depths require thermal, in situ recovery methods, like those commonly used by oil sands producers in the Cold Lake / Bonnyville area. Osum s engineers are in the process of designing optimal recovery processes that match the reservoir conditions on its leases. Both thermal recovery techniques being considered for the development (SAGD and CSS) involve injecting steam into the reservoir to soften bitumen to a point where it flows easily and can be extracted from the ground. It is expected that a combination of SAGD and CSS processes will be used. The main components of the project include a common central plant with steam generation facilities, as well as steam delivery and product recovery pipelines and well pads with horizontal wells for both SAGD and CSS. Water treatment and recycling, bitumen treatment and deep disposal wells for safe disposal of concentrated brackish water will also be included in the development. Osum is also evaluating the possibility of steam and electricity cogeneration in the project, to increase overall energy efficiency. Roads and other infrastructure will also be required, with exact details to be confirmed once more specific information about the geology and the reservoir becomes known. Infrastructure will be planned using both scientific and traditional knowledge. We will create opportunities for input from all stakeholders. The project will be designed to minimize surface disturbance (for example, through the use of multi-well pads with horizontal wells). Well pads and the central plant will be interconnected with rights of way ( ROWs ) that include pipelines, road access, supportive structures and communication cables. ROWs will use existing disturbed corridors wherever practical. In addition, the Taiga Project will involve a progressive reclamation plan, ensuring that pads are reclaimed as soon as they are no longer productive.

8 6 We re Careful. Health and Safety The safety of the public and our employees has been and will continue to be the first priority in the planning and development of the Taiga Project. Facilities will incorporate the highest standards in safety, and all site workers will undergo thorough training in safety procedures to protect themselves and the public. In addition, an initial corporate emergency response protocol has been developed. This protocol will be thoroughly assessed and revised at each significant milestone, to ensure that it is appropriate and current throughout the duration of the Taiga Project. Additionally, all Osum personnel will be engaged in routine training and drills to ensure they are ready to protect public citizens, our employees and the environment if at any time they are called upon to do so. Environment The Taiga Project will involve the creation or adoption of technologies that allow us to manage or eliminate environmental impacts commonly associated with oil sands development. The technologies will be incorporated into our plans where possible. For example, the use of evaporator technology for Osum s plant facilities and water treatment process will eliminate lime sludge ponds, and permit safe disposal of concentrated brackish water far below the surface of the earth. No fresh water will be used to generate steam for the Taiga Project. Instead, undrinkable saline water (from brackish sources) will be drawn from deep wells in the McMurray formation. Steam facilities will also incorporate highly efficient water recycling technology, with recycling capabilities up to 95%. A small amount of fresh water may be required for basic amenities on the project site (e.g., washrooms), as is normal with any development. Carbon management is an increasingly important factor in new oil sands development. Osum is positioned to adapt quickly to the changing regulatory and technological environment. Osum is evaluating the adaptation of maturing technologies that increase energy efficiency, as well as how to best create Carbon Capture ready facilities. Further carbon management alternatives are currently being considered for the Taiga Project, although an exact strategy is not yet decided. Our carbon management plan will be made available to the public once it has been confirmed. Osum is continuing with an Environmental Impact Assessment in the area. This assessment involves measurement of the various ecosystems supported by the region and their components. Analysis is being conducted with respect to how the Taiga development could affect any of these components and what steps are required to prevent or minimize impacts. For example, Osum is working to ensure the associated infrastructure does not negatively impact surface and wetland flows. Four hydrometric stations have been installed on the Medley River to determine baseline flows. The design will address culvert placement and sizing, in addition to ongoing long term monitoring. Finally as has been noted, the project will not use fresh water (other than for domestic requirements) and the project will not be extracting resources from under any of the lakes in the region.

9 Osum is working to ensure the associated infrastructure does not negatively impact surface and wetland flows. 7

10 8 The Taiga Project: Development Timeline Public consultation process Geological review & development planning Engineering studies & DBM Environmental Impact Assessment Project disclosure Regulatory application & review Regulatory approval Detailed engineering Procurement Initial well drilling / facilities / pipelines Central plant construction First steam First bitumen production The Taiga Project: Proposed Review Schedule Review Schedule Duration Weeks 77 Start 11/09 Finish /11 Application Submission and Joint Notice Preparation and Advertisement /09 2/10 Stage 1 (Government): Technical Review of Intergrated Application Start to SIR1 sent to Proponent /09 3/10 Stage 2 (Industry): Proponent Response to SIR1 10 3/10 6/10 Stage 3 (Government): Technical Review of SIR1 by Review Team & SIR2 sent to Proponent 13 6/10 9/10 Stage 4 (Industry): Proponent Response to SIR /10 10/10 Stage 5 (Government): Last SIR Response received to EIA Comp /10 12/10 Alberta Environment Total Review /09 12/10 Alberta Environment Standard Review Target /09 8/10 ERCB Notice Stage /10 2/11 ERCB / AENV / SRD Approvals Stage 4 2/11 4/11

11 9 We re Neighbours. Local Involvement We anticipate the opening of a field office in 2010, with required staff to eventually include plant and field operators, maintenance, electrical and instrumentation personnel, production engineers, computer support, site administrative staff, drilling and completion staff and others. Services and supplies will be obtained locally where possible. Public Consultation Opportunities for stakeholder involvement will be established throughout the duration of the Taiga Project. We want to ensure that all stakeholders have a voice at every stage, from initial planning through to decommissioning and reclamation. Open and transparent communication is a priority, both for the Taiga Project and for Osum. Our team is making itself available for consultation in a number of different ways, including Town Hall Meetings, the internet, one-on-one meetings, and engagement in community groups such as LICA. We would like to ensure that we are accessible to all stakeholders in as many different ways as possible.

12 10 Osum Oil Sands Corp. Suite 300, 1204 Kensington Rd. NW Calgary, Alberta, Canada T2N 3P5