| |  | Responsible growth
|
As we undertake opportunities to expand current operations or develop new projects, we are pursuing different options to ensure we grow our business in an environmentally, socially and economically responsible way.
|
Managing our footprint
Our exploration activities sometimes occur in environmentally sensitive areas, so projects must be designed, constructed and operated to minimize their environmental footprint. An example is the low-impact methods used to conduct seismic surveys in our Athabasca leases and in the Horn River Basin in northern British Columbia. We use specially designed mulching machines to create narrow and meandering cutlines for carrying out seismic surveys, and we follow strict guidelines for minimal tree cutting. In 2008, we began a drilling program to explore for natural gas opportunities in the basin. To minimize our impact on the land, most of our drilling locations are adjacent to existing roads and seismic cutlines. We have also joined the Horn River Basin Shale Gas Producers Group, where we meet regularly with other oil and gas companies to look at ways to further reduce our impact on the environment.
|
Consultation in Horn River basin
We are working with First Nations, government and communities to share information and answer questions about our drilling program in the Horn River Basin. In 2008, we met with Fort Nelson First Nation representatives, including the chief and council, the Lands Department and trappers, to update them on our project activities and discuss ways to minimize impacts on their livelihood. We also met with local government representatives and business groups to increase understanding of business opportunities resulting from the project. In addition, members of our project team participated in a cultural gathering with the Fort Nelson First Nation and other Aboriginal community groups to learn more about traditional values in the region.
Proposed expansion at Cold Lake
We are pursuing changes to our Nabiye project, our proposed plans to develop a new portion of our Cold Lake lease and expand heavy oil production. The project received regulatory approval in 2004. Three modifications are being considered to further improve environmental performance: an upgraded field development plan to reduce surface footprint, an additional cogeneration plant to improve energy efficiency, and new sulphur-removal facilities to reduce SO2 emissions. In 2008, we discussed the project at Neighbour Night, our annual open house with the local community. After consultation with local residents and Aboriginal communities, we plan to submit project amendment applications to the regulators in mid-2009.
| Beaufort Sea seismic program
We are consulting with local communities on exploration plans for our Ajurak offshore licence in the Beaufort Sea.
In late 2007, we held public meetings and met with elders, hunters and trappers committees and local businesses in the Inuvialuit communities. Residents in these areas were especially interested to learn more about potential impact on whales and possible employment opportunities for Aboriginal people.
We conducted an extensive 3-D seismic program in mid-2008 and addressed local concerns by incorporating a number of environmental safeguards in the program design, including steps to eliminate sewage and solid waste discharge. We also used the services of wildlife biologists and traditional knowledge experts hired from local Aboriginal communities to scan a radius area around the vessels to ensure no whales could be harmed by the seismic activity. During the two-month seismic program, we kept local residents informed about our progress through weekly newsletters. We followed up by holding open houses in the communities late in the year, where we provided an update on progress in 2008 and project plans for 2009, including work to support environmental impact assessment studies.
| Sour gas project near Quirk Creek
We plan to drill additional sour gas wells near our Quirk Creek sour gas processing plant south of Calgary. The project involves drilling three wells, building short tie-in pipelines and upgrading equipment at the plant. To obtain early feedback on the proposal in 2008, we consulted with regulators and community members of a local multi-stakeholder group, the Quirk Creek Gas Processing Community Committee. As a result, measures to address concerns such as noise and the footprint on the land were incorporated into the project design. We then developed a project plan and shared it with local community groups and First Nations. The applications were filed in early 2009, and, if approved, drilling is expected to begin in late 2009.
Mackenzie gas project
Located in Canada’s north, the proposed Mackenzie natural gas project would create the pipeline infrastructure to bring onshore natural gas to North Americanmarkets. After several years of work, advancing the project continues to be a highly complex process. A regulatory decision on the project from the National Energy Board is expected in 2010.
In the interim, we continue to consult with regional Aboriginal groups and northern communities on various issues. In 2008, progress was made in advancing benefits and access agreements with Aboriginal groups. These agreements address community benefits such as education, training, employment and business opportunities, and access to private lands. In 2008, an agreement was successfully concluded with the Inuvialuit. In 2009, the K’ahsho Got’ine ratified their benefits and access agreements. Following document execution by the K’ahsho Got’ine, agreements will be in place with four of the five regional Aboriginal groups along the proposed project route. We also continued discussions with the federal government on the terms of a fiscal framework that would be appropriate for the project.
|
| Listening to local communities
In the Fort McMurray area, we’re keeping local communities, including our Aboriginal neighbours, informed about the Kearl oil sands project and our progress. For many groups, it comes down to asking about the potential environmental impacts of the project – for example, our plans to manage water use or restore land. We also get questions about job opportunities. A lot of our stakeholders are very frank, and they’re not afraid to ask us the hard questions. In response, we have to face their questions and concerns with clear and honest answers. By responding in this way, it helps to build our company’s credibility in the region. Our plan is to continue to strengthen our relationships through consultation. Just because we’ve received approval for our project doesn’t mean our relationship building with stakeholders is complete. Instead, it’s an ongoing commitment, and something we will never stop working on.
Lana Hill, stakeholder relations advisor, Kearl project
|
Kearl oil sands project
Kearl, located in the Fort McMurray area of northern Alberta, has an estimated total recoverable resource of 4.6 billion barrels of bitumen before royalties – in which Imperial holds about a 70 percent interest. Our plans call for phased development, with an initial mine of about 110,000 barrels a day and subsequent expansions to about 300,000 barrels a day. The project will use proven technologies such as truck-and-shovel mining and hydro transport, but without an on-site upgrader.
Here is a brief update on how different project challenges are being met:
Reclamation plans
Our Kearl project will have an impact on the land during construction and mining. This impact is temporary since provincial regulations require that all mining lands be completely reclaimed. Through the approvals process, we have committed to a progressive land reclamation program that will ultimately create a mix of forests, grasslands, lakes and wetlands and provide suitable habitat for wildlife.
Our reclamation plans include comprehensive procedures to manage and reclaim tailings, a mixture of fine clay, sand, bitumen and water. Initially, fine tailings will be stored in an external tailings area surrounded by an extensive network of monitoring and collection wells to minimize seepage. As mined-out areas become available, fine tailings from the external tailings area will be mixed with gypsum, sand and other tailings to create solid material. This material will then be placed in mined-out areas and later covered with overburden, topsoil and other reclamation materials.
In 2008, we initiated site clearing and carried out geotechnical studies to prepare the Kearl site for project construction. Timber was salvaged for sale and reclamation materials such as topsoil and peat were stockpiled in order to progressively reclaim land as mined-out areas become available.
| Water Management
Like other similar developments in the region, the project will draw water from the Athabasca River. To help ensure that requirements on the river are efficiently managed, we have been a key driver in a co-operative program involving the major oil sands companies operating, or planning to operate, in the Athabasca area. These companies have committed themselves to a plan aimed at preserving acceptable flow rates in the river, as set out in a water management framework established by the Alberta and federal governments. This agreement was renewed by industry participants to cover the 2008 to 2009 period.
We are also an active member of the Oil Sands Developers Group (OSDG), a non-profit association of companies involved in oil sands projects in the Fort McMurray area. Through OSDG, industry members are evaluating different methods to manage or reduce water use, including increased storage facilities. A key component of the Kearl project will be the use of water storage to enable reduced water withdrawal during winter months when water flow is lower.
Consultation
We have established advisory committees with the Athabasca Chipewyan First Nation and the Mikesew Cree First Nation as well as an elders council with the Fort McKay First Nation. The groups, which include Imperial staff and community residents, provide an opportunity for our Aboriginal neighbours to have ongoing dialogue with Imperial on the Kearl project and its impacts. In 2008, a total of eight meetings were held with the committees and council.
During the year, elders from Fort McKay participated in a tour of the project site, where they learned more about the project and had an opportunity to discuss concerns, including access to the lease area for trapping. Accordingly, we revised access management plans to ensure trappers can safely access traplines in lease areas not actively being mined.
We also held an open house in Fort McMurray to update local stakeholders on plans for building roads and power and pipeline infrastructure for the project. The meeting provided an opportunity to discuss potential business opportunities and share our plans for minimizing environmental effects, including impacts to wildlife.
Business Development
Our project plans provide opportunities for local businesses. We have developed procurement guidelines for the Kearl project that outline our commitment to hire qualified local and Aboriginal businesses. In 2008, we continued to work closely with major contractors for the Kearl project so that they understand our company’s expectations for providing and communicating business opportunities for Aboriginal businesses. We also sponsored a general meeting of the Northeastern Alberta Aboriginal Business Association, a non-profit association that promotes businesses, jobs and training for Aboriginal people in the Athabasca region.
| |
|
|
