scholarly journals Alberta’s Oil Sands: An Unsecured Asset? An Analysis of the Mine Financial Security Program in Relation to Surface Mining of the Alberta Oil Sands

2018 ◽  
pp. 177
Author(s):  
Michelle Cook
Keyword(s):  
Oil Sands ◽  
Oil And Gas ◽  
Surface Mining ◽  
Financial Security ◽  
Environmental Legislation ◽  
Environmental Liabilities ◽  
Security Regime ◽  
Large Fluctuations ◽  
Oil Sands Mining ◽  
Financial Assurance

This article conducts a comprehensive review of Alberta’s Mine Financial Security Program (MFSP), the provincial program that governs the collection of financial assurance for reclamation liabilities (also known as “reclamation liability security,” “financial reclamation sureties,” or “closure bonds”). This article assesses the MFSP program in relation to surface oil sands mining. It concludes that while the recently implemented MFSP has improved some aspects of the oil sands reclamation security regime, Alberta’s MFSP still suffers from issues of transparency, inadequate collection of financial security, and utilization of underinclusive classifications of environmental liabilities. Moreover, this article analyzes the particular risk that oil sands assets have of “stranding” (namely, being unanticipatedly or prematurely written off, downwardly revalued, or converted to a liability) as well as how stranding would impact Alberta’s financial assurance regime.This article concludes that while the oil sands are at a heightened risk for asset stranding compared to the international oil industry as a whole, international oil and gas assets are unlikely to become completely stranded. This article also finds that investors have likely already priced the risk of asset stranding at 1.5–2 percent and will be unlikely to readjust their portfolios unless divestment campaigns strengthen or environmental legislation becomes more certain. The MFSP uses a method that does not account for large fluctuations in oil prices, nor does it sufficiently account for the risk of partial stranding. If asset stranding were to occur, the only way the Alberta government would be able to afford the costs of reclamation would be to paradoxically develop the very resource that was defaulted on, against the environmental legislation or political pressures that caused the stranding.

scholarly journals Characterization of trace gases measured over Alberta oil sands mining operations: 76 speciated C<sub>2</sub>–C<sub>10</sub> volatile organic compounds (VOCs), CO<sub>2</sub>, CH<sub>4</sub>, CO, NO, NO<sub>2</sub>, NO<sub>y</sub>, O<sub>3</sub> and SO<sub>2</sub>

2010 ◽  
Vol 10 (8) ◽  
pp. 18507-18560 ◽  
Author(s):  
I. J. Simpson ◽  
N. J. Blake ◽  
B. Barletta ◽  
G. S. Diskin ◽  
H. E. Fuelberg ◽  
...  
Keyword(s):  
Oil Sands ◽  
Trace Gases ◽  
Surface Mining ◽  
Mining Operations ◽  
Mining Sites ◽  
Oil Reserves ◽  
Volatile Organic ◽  
Local Background ◽  
Oil Sands Mining

Abstract. Oil sands comprise 30% of the world's oil reserves and the crude oil reserves in Canada's oil sands deposits are second only to Saudi Arabia. The extraction and processing of oil sands is much more challenging than for light sweet crude oils because of the high viscosity of the bitumen contained within the oil sands and because the bitumen is mixed with sand and contains chemical impurities such as sulphur. Despite these challenges, the importance of oil sands is increasing in the energy market. To our best knowledge this is the first peer-reviewed study to characterize volatile organic compounds (VOCs) emitted from Alberta's oil sands mining sites. We present high-precision gas chromatography measurements of 76 speciated C2–C10 VOCs (alkanes, alkenes, alkynes, cycloalkanes, aromatics, monoterpenes, oxygenates, halocarbons, and sulphur compounds) in 17 boundary layer air samples collected over surface mining operations in northeast Alberta on 10 July 2008, using the NASA DC-8 airborne laboratory as a research platform. In addition to the VOCs, we present simultaneous measurements of CO2, CH4, CO, NO, NO2, NOy, O3 and SO2, which were measured in situ aboard the DC-8. Methane, CO, CO2, NO, NO2, NOy, SO2 and 53 VOCs (e.g., halocarbons, sulphur species, NMHCs) showed clear statistical enhancements (up to 1.1–397×) over the oil sands compared to local background values and, with the exception of CO, were higher over the oil sands than at any other time during the flight. Twenty halocarbons (e.g., CFCs, HFCs, halons, brominated species) either were not enhanced or were minimally enhanced (< 10%) over the oil sands. Ozone levels remained low because of titration by NO, and three VOCs (propyne, furan, MTBE) remained below their 3 pptv detection limit throughout the flight. Based on their mutual correlations, the compounds emitted by the oil sands industry fell into two groups: (1) evaporative emissions from the oil sands and its products and/or from the diluent used to lower the viscosity of the extracted bitumen (i.e., C4–C9 alkanes, C5–C6 cycloalkanes, C6–C8 aromatics), together with CO; and (2) emissions associated with the mining effort (i.e., CO2, CO, CH4, NO, NO2, NOy, SO2, C2–C4 alkanes, C2–C4 alkenes, C9 aromatics, short-lived solvents such as C2Cl4 and C2HCl3, and longer-lived species such as HCFC-22 and HCFC-142b). Prominent in the second group, SO2 and NO were remarkably enhanced over the oil sands, with maximum enhancements of 38.7 and 5.0 ppbv, or 383 and 319× the local background, respectively. The SO2 enhancements are comparable to maximum values measured in heavily polluted megacities such as Mexico City and are attributed to coke combustion. By contrast, relatively poor correlations between CH4 ethane and propane suggest low natural gas leakage despite its heavy use at the surface mining sites. In addition to the emission of many trace gases, the natural drawdown of OCS by vegetation was absent above the surface mining operations, presumably because of the widespread land disturbance. Unexpectedly, the mixing ratios of α- and β-pinene were much higher over the oil sands (up to 217 and 610 pptv, respectively) than over vegetation in the background boundary layer (20±7 and 84±24 pptv, respectively), and the pinenes correlated well with several industrial tracers that were elevated in the oil sands plumes. Because so few independent measurements from the oil sands mining industry exist, this study provides an important initial characterization of trace gas emissions from oil sands surface mining operations.

scholarly journals Characterization of trace gases measured over Alberta oil sands mining operations: 76 speciated C<sub>2</sub>–C<sub>10</sub> volatile organic compounds (VOCs), CO<sub>2</sub>, CH<sub>4</sub>, CO, NO, NO<sub>2</sub>, NO<sub>y</sub>, O<sub>3</sub> and SO<sub>2</sub>

2010 ◽  
Vol 10 (23) ◽  
pp. 11931-11954 ◽  
Author(s):  
I. J. Simpson ◽  
N. J. Blake ◽  
B. Barletta ◽  
G. S. Diskin ◽  
H. E. Fuelberg ◽  
...  
Keyword(s):  
Oil Sands ◽  
Surface Mining ◽  
Mining Operations ◽  
Mining Sites ◽  
Oil Reserves ◽  
Mixing Ratios ◽  
Volatile Organic ◽  
Local Background ◽  
Oil Sands Mining

Abstract. Oil sands comprise 30% of the world's oil reserves and the crude oil reserves in Canada's oil sands deposits are second only to Saudi Arabia. The extraction and processing of oil sands is much more challenging than for light sweet crude oils because of the high viscosity of the bitumen contained within the oil sands and because the bitumen is mixed with sand and contains chemical impurities such as sulphur. Despite these challenges, the importance of oil sands is increasing in the energy market. To our best knowledge this is the first peer-reviewed study to characterize volatile organic compounds (VOCs) emitted from Alberta's oil sands mining sites. We present high-precision gas chromatography measurements of 76 speciated C2–C10 VOCs (alkanes, alkenes, alkynes, cycloalkanes, aromatics, monoterpenes, oxygenated hydrocarbons, halocarbons and sulphur compounds) in 17 boundary layer air samples collected over surface mining operations in northeast Alberta on 10 July 2008, using the NASA DC-8 airborne laboratory as a research platform. In addition to the VOCs, we present simultaneous measurements of CO2, CH4, CO, NO, NO2, NOy, O3 and SO2, which were measured in situ aboard the DC-8. Carbon dioxide, CH4, CO, NO, NO2, NOy, SO2 and 53 VOCs (e.g., non-methane hydrocarbons, halocarbons, sulphur species) showed clear statistical enhancements (1.1–397×) over the oil sands compared to local background values and, with the exception of CO, were greater over the oil sands than at any other time during the flight. Twenty halocarbons (e.g., CFCs, HFCs, halons, brominated species) either were not enhanced or were minimally enhanced (<10%) over the oil sands. Ozone levels remained low because of titration by NO, and three VOCs (propyne, furan, MTBE) remained below their 3 pptv detection limit throughout the flight. Based on their correlations with one another, the compounds emitted by the oil sands industry fell into two groups: (1) evaporative emissions from the oil sands and its products and/or from the diluent used to lower the viscosity of the extracted bitumen (i.e., C4–C9 alkanes, C5–C6 cycloalkanes, C6–C8 aromatics), together with CO; and (2) emissions associated with the mining effort, such as upgraders (i.e., CO2, CO, CH4, NO, NO2, NOy, SO2, C2–C4 alkanes, C2–C4 alkenes, C9 aromatics, short-lived solvents such as C2Cl4 and C2HCl3, and longer-lived species such as HCFC-22 and HCFC-142b). Prominent in the second group, SO2 and NO were remarkably enhanced over the oil sands, with maximum mixing ratios of 38.7 ppbv and 5.0 ppbv, or 383× and 319× the local background, respectively. These SO2 levels are comparable to maximum values measured in heavily polluted megacities such as Mexico City and are attributed to coke combustion. By contrast, relatively poor correlations between CH4, ethane and propane suggest low levels of natural gas leakage despite its heavy use at the surface mining sites. Instead the elevated CH4 levels are attributed to methanogenic tailings pond emissions. In addition to the emission of many trace gases, the natural drawdown of OCS by vegetation was absent above the surface mining operations, presumably because of the widespread land disturbance. Unexpectedly, the mixing ratios of α-pinene and β-pinene were much greater over the oil sands (up to 217 pptv and 610 pptv, respectively) than over vegetation in the background boundary layer (20±7 pptv and 84±24 pptv, respectively), and the pinenes correlated well with several industrial tracers that were elevated in the oil sands plumes. Because so few independent measurements from the oil sands mining industry exist, this study provides an important initial characterization of trace gas emissions from oil sands surface mining operations.

scholarly journals Oil Sands Mining Reclamation in Alberta: A Discussion of the Prior Regime and the New Mine Financial Security Program

2011 ◽  
Vol 49 (2) ◽  
pp. 277 ◽  
Author(s):  
Chrysten Perry ◽  
Craig Saloff
Keyword(s):  
Oil Sands ◽  
Financial Security ◽  
Oil Sands Mining ◽  
Mining Projects

This article discusses the oil sands mining regime in Alberta, focusing on the prior reclamation regime, its shortcomings, and the events that led to its overhaul. The newly enacted Mine Financial Security Program (Alberta) is discussed, together with an analysis of whether the problems under the prior reclamation regime have been adequately addressed. Finally, the authors discuss matters that should be taken into account when drafting agreements that involve the funding or performance of reclamation obligations in oil sands mining projects in Alberta.

Improvements to production planning in oil sands mining through analysis and simulation of truck cycle times

CIM Journal ◽  
2019 ◽  
Vol 10 (1) ◽  
Author(s):  
E. Goris Cervantes ◽  
S. P. Upadhyay ◽  
H. Askari-Nasab
Keyword(s):  
Production Planning ◽  
Oil Sands ◽  
Cycle Times ◽  
Oil Sands Mining

scholarly journals Quantification of methane sources in the Athabasca Oil Sands Region of Alberta by aircraft mass balance

2018 ◽  
Vol 18 (10) ◽  
pp. 7361-7378 ◽  
Author(s):  
Sabour Baray ◽  
Andrea Darlington ◽  
Mark Gordon ◽  
Katherine L. Hayden ◽  
Amy Leithead ◽  
...  
Keyword(s):  
Mass Balance ◽  
Oil Sands ◽  
Surface Mining ◽  
Open Pit ◽  
Emission Rates ◽  
Athabasca Oil Sands ◽  
Emissions Inventory ◽  
Athabasca Oil Sands Region ◽  
Major Surface ◽  
Tailings Ponds

Abstract. Aircraft-based measurements of methane (CH4) and other air pollutants in the Athabasca Oil Sands Region (AOSR) were made during a summer intensive field campaign between 13 August and 7 September 2013 in support of the Joint Canada–Alberta Implementation Plan for Oil Sands Monitoring. Chemical signatures were used to identify CH4 sources from tailings ponds (BTEX VOCs), open pit surface mines (NOy and rBC) and elevated plumes from bitumen upgrading facilities (SO2 and NOy). Emission rates of CH4 were determined for the five primary surface mining facilities in the region using two mass-balance methods. Emission rates from source categories within each facility were estimated when plumes from the sources were spatially separable. Tailings ponds accounted for 45 % of total CH4 emissions measured from the major surface mining facilities in the region, while emissions from operations in the open pit mines accounted for ∼ 50 %. The average open pit surface mining emission rates ranged from 1.2 to 2.8 t of CH4 h−1 for different facilities in the AOSR. Amongst the 19 tailings ponds, Mildred Lake Settling Basin, the oldest pond in the region, was found to be responsible for the majority of tailings ponds emissions of CH4 (> 70 %). The sum of measured emission rates of CH4 from the five major facilities, 19.2 ± 1.1 t CH4 h−1, was similar to a single mass-balance determination of CH4 from all major sources in the AOSR determined from a single flight downwind of the facilities, 23.7 ± 3.7 t CH4 h−1. The measured hourly CH4 emission rate from all facilities in the AOSR is 48 ± 8 % higher than that extracted for 2013 from the Canadian Greenhouse Gas Reporting Program, a legislated facility-reported emissions inventory, converted to hourly units. The measured emissions correspond to an emissions rate of 0.17 ± 0.01 Tg CH4 yr−1 if the emissions are assumed as temporally constant, which is an uncertain assumption. The emission rates reported here are relevant for the summer season. In the future, effort should be devoted to measurements in different seasons to further our understanding of the seasonal parameters impacting fugitive emissions of CH4 and to allow for better estimates of annual emissions and year-to-year variability.

scholarly journals Growth Response of Aspen and Alder to Fresh and Stockpiled Reclamation Soils

Forests ◽  
2018 ◽  
Vol 9 (12) ◽  
pp. 731 ◽  
Author(s):  
Kwadwo Omari ◽  
Sanatan Gupta ◽  
Bradley Pinno
Keyword(s):  
Populus Tremuloides ◽  
Oil Sands ◽  
Growth Response ◽  
Plant Biomass ◽  
Nitrogen Fixing ◽  
Forest Region ◽  
Significant Difference ◽  
Oil Sands Mining ◽  
Potassium Supply ◽  
Phosphorus And Potassium

Soil stockpiling is a common reclamation practice used in oil sands mining in the boreal forest region of Canada to conserve soil resources; but stockpiling may have detrimental effects on soil quality and plant growth. We examined growth response of trembling aspen (Populus tremuloides Michx.), a fast-growing early successional tree, and green alder (Alnus viridis (Chaix) DC. ssp crispa (Ait.) Turrill), a nitrogen-fixing shrub, to stockpiling and fertilization treatments on two reclamation soils (forest floor mineral mix (FFMM) and peat mineral mix (PMM)). Aspen and alder seeds were planted and their growth monitored for four months in the greenhouse. We found that unfertilized stockpiled FFMM supported significantly higher aspen and alder aboveground biomass than the other fresh and stockpiled soils. Phosphorus and potassium supply rates were highest in stockpiled FFMM and were positively correlated with aboveground plant biomass. There was no significant difference in aspen and alder aboveground biomasses between unfertilized fresh FFMM and PMM soils. Aspen grown in combination with nitrogen-fixing alder did not experience competition or facilitation except on fresh PMM, where aspen height declined. Fertilization increased both aspen and alder growth and eliminated differences in growth between soil types and stockpiling treatments. Our study showed that individual soil properties are more important for revegetation purposes than type of soil or stockpiling treatment.

scholarly journals Air Quality Predictions using Measurement-Derived Organic Gaseous and Particle Emissions in a Petrochemical-Dominated Region

2018 ◽  
Author(s):  
Craig A. Stroud ◽  
Paul A. Makar ◽  
Junhua Zhang ◽  
Michael D. Moran ◽  
Ayodeji Akingunola ◽  
...  
Keyword(s):  
Air Quality ◽  
Organic Compound ◽  
Volatile Organic Compound ◽  
Oil Sands ◽  
Organic Aerosol ◽  
Base Case ◽  
Systematic Bias ◽  
Volatile Organic ◽  
Oil Sands Mining ◽  
The Impact

Abstract. This study assesses the impact of revised volatile organic compound (VOC) and organic aerosol (OA) emissions estimates in the GEM-MACH (Global Environmental Multiscale‒Modelling Air Quality and CHemistry) chemical transport model, driven with two different emissions input datasets, using observations from the 2013 Joint Oil Sands Monitoring (JOSM) intensive field study. The first emissions dataset (base-case run) makes use of regulatory reported VOC and particulate matter emissions data for the large oil sands mining facilities in northeastern Alberta, Canada, while the second emissions dataset (sensitivity run) uses emissions estimates based on box-flight aircraft observations around specific facilities (Li et al., 2017, Zhang et al., 2017) and a mass-balance analysis (Gordon et al., 2015) to derive total facility emission rates. The preparation of model-ready emissions files for the base-case and sensitivity run is described in an accompanying paper by Zhang et al. (2017). The large increases in VOC and OA emissions in the revised emissions data set for four large oil sands mining facilities were found to improve the modeled VOC and OA concentration maxima in plumes from these facilities, as shown with the 99th percentile statistic and illustrated by case studies. The results show that the VOC emission speciation profile from each oil sand facility is unique and different from standard petrochemical-refinery emission speciation profiles used for other regions in North America. A feedback between larger long-chain alkane emissions and higher secondary organic aerosol (SOA) concentrations was found to be significant for some facilities and improved OA predictions for those plumes. The use of the revised emissions data resulted in a large improvement of the model OA bias; however, the decrease in OA correlation coefficient suggests the need for further improvements to model organic aerosol emissions and formation processes. Including intermediate volatile organic compound (IVOC) emissions as precursors to SOA and spatially allocating more PM1 POA emissions (primary organic aerosol of 1.0 μm or less in diameter) to mine-face locations are both recommended to improve OA bias and correlation further. A systematic bias in the background OA was also predicted on most flights, likely due to under-predictions in biogenic SOA formation. Overall, the weight of evidence suggests that the new aircraft-observation-derived organic emissions help to constrain better the fugitive organic emissions, which are a challenge to estimate in the creation of bottom up emission inventories. This work shows that the use of facility-specific emissions, based on direct observations, rather than generic emission factors and speciation profiles can result in improvements to model predictions of VOCs and OA. Emissions estimation techniques, such as those used to construct the inventories in our study, may therefore have beneficial impacts when applied to other regions with large sources of VOCs and OA.

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