2007 Cold Lake Report by sdfgsg234


									Cold Lake
2007 report to our neighbours on
our operations near Cold Lake, Alberta

                                         2007 report
                                         to our

                                         Inside this report . .

                                         • Community

                                         • Employee profile:
                                           Making a
                                           for teens

                                         • Environmental

                                         • Update on

                                         • A conversation
                                           with Sandy Martin

                                         Published May, 2008
  LASER technology            2007 Cold Lake Operations Report
  In 2007, we began           Imperial Oil first established itself in the Lakeland area more than 50 years ago. Over the years, we've worked
  using a new                 to develop our business and our reputation as a good neighbour and employer. In this report we endeavour
  Imperial-patented           to tell you how we performed last year and what we are doing today to improve employee and public safety,
  technology to               reduce our environmental footprint, as well as enrich the community.
  improve oil recovery                                                                  Water conservation performance
                              Operations overview
  called liquid
  addition to steam           Our operations include more than 4,000 active wells       Water is used to create steam to warm heavy oil
  for enhanced                drilled from some 200 multi-well pads, four plants        so it can be pumped to the surface. Most of the
  recovery (LASER).           that generate steam and process bitumen, and a            water used to generate steam is produced water that
  The technology              170-megawatt cogeneration unit.                           is treated and recycled. However, additional water
  involves injecting                                                                    is required. To the extent possible, we use fresh water
                              Cogeneration and energy conservation
  light crude oil into                                                                  only where produced or brackish water cannot be
  wells in order to           Cogeneration is a process that uses waste heat from       used. Produced and brackish water are of a quality
  recover more oil            electricity generation to produce high-pressure steam     that makes them unfit for human, livestock or
  than would                  and power our operations. Cogeneration reduces            agricultural use.
  otherwise be                greenhouse gas emissions, notably carbon dioxide,         Total water intake for 2007
  recovered through                                        by 40 percent compared
  cyclic steam                                             to generating electricity                      Fresh
  stimulation alone.                                       from coal-fired power                           12%
  Imperial began                                           plants and producing
  piloting LASER at                                        steam from con-
                                                           ventional boilers.                    Brackish
  its operations in                                                                                1%
  2002. Results from                                       We use approximately
  field tests have                                         65 percent of the
  encouraged us                                            energy we produce;
                                                           the remainder is sold                                Produced
  to phase-in the                                                                                                 87%
  application.                                             to support Alberta's
                                                           electricity needs.

                                                                                                          Produced water consists of salt water

                                                             >95%                  of the produced
                                                             water that is recovered with the oil
                                                                                                          and condensed steam that is brought
                                                                                                          to the surface along with oil during
                                                                                                          production. This water is separated
                                                                                                          from the oil and reused.
                                                             is treated, recycled and reinjected
                                                             as steam.

                                                              2007 performance highlights              Our 2008 priorities
                                                              • Donated $363,925 to various            • Drill about 60 wells in six
                                                                charities in the Lakeland area           lease areas
                                                                including $96,000 to the               • Start up second sulphur removal
                                                                Lakeland United Way                      unit at Mahkeses plant

                                                              • Introduced LASER technology            • Take further steps to identify and
LASER technology
                                                                                                         reduce our energy use through an
                                                              • Planted approximately 65,000             innovative energy management
   2007 contributions/community involvement                     trees and shrubs                         system designed to identify and
  (All dollars in millions)
                                                              • Air emissions well below                 sustain energy saving initiatives
  Number of employees                     300                   regulatory requirements                • Continue a $5.8M remediation and
  Number of contractors                   650                 • Improved safety performance              reclamation program
  Provincial and federal taxes            $267.5
                                                              • Started up Mahihkan                    • Begin a wetland reclamation trial
  Royalties                               $344.2                sulphur removal unit                     with Ducks Unlimited Canada
  Property taxes                          $14.3
                                 Imperial Oil is committed to helping the Lakeland area remain strong, healthy and prosperous. To that end,
                                 we support numerous community organizations and initiatives by pledging our support through donations,
                                 sponsorship and volunteerism.
                                 Here are some of the special events and projects we supported:
                                 Environmental awareness takes root at                          Imperial Oil Energy Centre: Building a
                                 Cold Lake Elementary                                           legacy for Cold Lake residents
                                 Last spring, Cold Lake Elementary School and employ-           As the major corporate sponsor of the Imperial Oil
                                 ees from Imperial and eight other oil and gas companies        Energy Centre, the company anticipates that the
                                 participated in Energy in Action, an environmental             centre's opening will mark a new beginning for
Learning about how to
preserve the environment         stewardship program initiated by the Canadian                  community involvement in Cold Lake. The Energy
                                 Association of Petroleum Producers and Inside                  Centre, a multi-purpose education and sports facility,
                                 Education. Students and volunteers planted trees and           is located on Imperial Park, a 130-hectare piece of land
                                 shrubs in the schoolyard, and learned about natural            donated by Imperial Oil in 1996.
                                 resources and how to preserve the environment.                 "Improving the quality of life for our employees and
                                   To learn more about this event, visit www.capp.ca.           community drove our support of this new facility," says
                                                                                                Paula McMillan, Cold Lake Operations’ community
                                 Teaching Grade Fives about Wetland Conservation                and Aboriginal advisor. "It's a great place for people
                                                                                                of all ages. Our hope is that it becomes the hub of
                                 As part of the grade five science curriculum, we support
                                                                                                the community."
                                 a program to educate students on wetland ecosystems.
Supporting provincial            The program, which has Imperial funding of $7,500                   Contact Paula for community sponsorship oppor-
hockey tournaments               over three years, has allowed students and educators                tunities at 639-5194 or paula.l.mcmillan@esso.ca.
                                 to learn on-site the importance of wetland ecosystems
                                 and watersheds.
                                                                                                                                    Work-life balance program
                                 Eco Day Events in the Beaver River Watershed                                                       supports her passion to
                                                                                                                                    help teens
                                 Imperial, through its involvement with LICA,
                                 supported two Eco Day events last summer, partnering                                               The idea for a suicide
                                 with Alberta Environment at Lac Bellevue and with                                                  prevention program for
                                 the Crane Lake Advisory and Stewardship Society.                                                   teens in the Lakeland area
                                 Volunteers organized interactive events to give                                                    began after a 15-year-old
                                 residents a better understanding and appreciation of                                               girl attempted suicide in
                                 local lakes. Both events supported the Alberta Water                                               the spring of 2007.
                                 Quality Awareness Day through the hands-on use of                                             The tragic event motivated
                                                                                                "The point is not only to prevent
                                 water quality test kits.                                       another suicide but to help teens
                                                                                                                               her family and friends to
                                                                                                who are struggling with tough
                                 Bonnyville Centre gets a boost                                 issues."– Sue Trefry.          want to help others. Her
                                                                                                                               sister and a friend decided
                                 Understanding that a community centre is important             to bring the Yellow Ribbon Suicide Prevention Program
                                 to the quality of life of residents and employees, we          to Cold Lake but were stymied by a lack of funding and
                                 committed an additional $100,000 in 2007 to the                resources. That's when Sue Trefry, Imperial employee
                                 development of the Bonnyville and District                     and board chair of The Vault, a popular youth drop-in
                                 Centennial Centre. We became a platinum sponsor                centre in Cold Lake, stepped in. "Starting a suicide
Paula McMillan at the
                                 of the centre when we made our initial donation of             prevention program is a huge undertaking and I could
Centennial Centre
                                 $100,000 in 2004.                                              see them getting discouraged," explained Trefry.
                                 Playing ball to promote community                              "I knew I could help out."
                                                                                                Within months, Trefry helped kick off a fundraising
                                 Imperial was the main corporate sponsor for the
                                                                                                campaign to bring a suicide prevention speaker to
                                 Western Canada Baseball Championship with a
                                                                                                Cold Lake schools. Approximately 1,600 middle and
                                 platinum donation of $6,000. The event took place
                                                                                                high school students took part in the awareness program.
                                 at Imperial Park with some 225 players aged 12-18.
                                                                                                In 2008, she plans to set up Lakeland's first Yellow Ribbon
                                 Giving a hand to the United Way                                Suicide Prevention Chapter and continue the initiative
                                                                                                in Bonnyville.
                                 "The power of one," or in other words, you alone can
We committed $1500 over          make a difference, was the campaign theme for the 2007         Trefry has experience making a non-profit program a
three years to Meals on Wheels   Lakeland United Way (LUW) drive. Presentations                 success. The Vault, which opened just over two years
                                 made by community recipients encouraged employees              ago, now receives about 100 visits a week from local
                                 to give generously. Average contributions per employee         teens. She credits Imperial for her project management
                                 rose 100 percent and overall employee participation was        skills and a flexible work schedule that allows her to
                                 up. In 2007, we raised almost $96,000 for LUW.                 follow her passion to help others.
                                Where we report our air emissions                                                    • initiated construction of a sulphur removal unit at the
 Abbreviations used in                                                                                                 Mahkeses plant. Start-up is anticipated by September.
                                We monitor various types of air emissions, including
 this report:
                                CACs, GHGs, and flaring and venting volumes. Our                                     • curtailed inlet sulphur at Maskwa and Leming plants to
 CLO Cold Lake                  reports are submitted annually to the federal government                               below one tonne per day.
     operations                 for the National Pollutant Release Inventory (NPRI), and
                                                                                                                     Detecting leaks with an infrared camera
                                to the provincial government for the Alberta Greenhouse
 CACs Criteria air              Gas Reporting Program.                                                                                                     In October 2007, we
      contaminants                                                                                                                                         began the first phase of
                                    Cold Lake NPRI emissions are available through
                                                                                                                                                           a new leak detection
 GHG Greenhouse                     Environment Canada at www.ec.gc.ca
                                                                                                                                                           and repair program to
     gas emissions
                                Ambient air quality throughout our operations is moni-                                                                     further reduce the
 NOx Nitrogen                   tored by a network that includes three continuous air-mon-                                                                 amount of gas vented
     oxides                     itoring trailers, 50 static stations that measure total hydro-                                                             to the atmosphere.
                                gen sulfide as well as two ozone monitoring stations. Data                                                                 Monitoring is done
 SO2    Sulphur dioxide         from the air monitoring stations are reported to Alberta                             using a state-of-the-art infrared camera. In 2007, we tested
 LICA Lakeland                  Environment monthly.                                                                 the Mahihkan plant and conducted sampling of Mahihkan
      Industry and                                                                                                   field pads. Of 8,875 sample points tested, 12 were found to
                                                                         No exceedences of air
      Community                                                                                                      be leaking, which is a leak rate of less than 0.15 percent.
                                                                         quality guidelines
      Association                                                                                                    All leaks have been repaired. Our plan is to test a third of
                                                               Average and daily results                             the operations every year and then evaluate the results
                                                               from the air monitoring                               once completed to determine the frequency necessary
                                                               stations showed no                                    for future monitoring.
  Venting                                                      exceedances of the Alberta
                                                                                                                     Third-party audit verifies our GHG calculations
  "Venting" involves the                                       ambient air quality guide-
  discharge of hydrocar-                                       lines in 2007. CLO                                    New climate change regulations effective July 1, 2007
  bons and other gases                                         continued to have strong                              require larger facilities in Alberta (those that emit more
  from pieces of equip-         vent-reduction performance, achieving the lowest ever                                than 100,000 tonnes of GHGs a year) to reduce their
  ment at points such           venting volumes since 2004. Vent reduction continues to                              emissions intensity by 12 percent. CLO submitted its
                                be a focus area. A recently completed engineering study                              baseline intensity calculations for 2003-2005 under this
  as safety relief valves
                                recommended actions to further reduce venting occur-                                 program to the Alberta government in the fall of 2007.
  on tanks.
                                rences during periods when we are not able to ship our                               Part of this submission involved a detailed, third-party
                                product down the pipeline.                                                           audit to attest how we calculate our emissions and to
                                                                                                                     verify the accuracy of our data.
                                                                                                                     At issue: reaching consensus on a
                                Emissions to air
                                NOx, SO2 emissions                Nitrogen oxide (NOx) emissions                     Lakeland air monitoring network
                                (thousands of tonnes)             Sulphur dioxide (SO2) emissions
                                                                                                                     In 2006, the LICA airshed committee (co-chaired by
                                                                                                                     Imperial), in cooperation with Alberta Environment,
                            5                                                                                        submitted an application to the ministry to expand its
                                                                                                                     regional air monitoring network to incorporate Imperial's
                                                                                                                     and other operators' industrial compliance monitoring.
                                                                                                                     The application was approved in 2007, but remains under
                                                                                                                     appeal by several community members. Industry has been
                            2                                                                                        working in cooperation with these members to try to

                                                                                                                     resolve concerns. The LICA airshed has completed a
                                                                                                                     third-party independent review of the airshed network
                                                                                                                     to ensure that it meets the standards of the Clean Air
                                       2003          2004         2005         2006          2007        2009*       Strategic Alliance, the Alberta government, and
                                   * Forecast is based on current SO2 levels and the use of SO2 recovery units.      accurately reflects regional stakeholder concerns.
                                                                                                                     The mediation of the airshed appeal, which began
                                In 2007, NOx and SO2 emissions were well below                                       in April 2008, is ongoing.
                                government regulations.
                                                                                                                     In order to be transparent about our air emissions and to
Want to get involved?
                                                                                                                     encourage public access to regional air monitoring data
                                Committed to reducing sulphur emissions
LICA – Lakeland Industry                                                                                             across the Lakeland region, Imperial has taken the
and Community                   Imperial is committed to meeting the Energy Resources                                initiative to share its air quality data from our Maskwa
                                Conservation Board sulphur recovery targets. We have:                                monitoring trailer (centrally located on our lease) in
Tel.            812-2182        • started up a new sulphur removal unit at the Mahihkan                              real-time through the LICA website.
Toll Free 1-877-737-2182          plant in June 2007. The unit is now reducing sulphur                                   Maskwa monitoring trailer data is available at
lica2@lica.ca                     emissions from the plant by 70 percent.                                                www.lica.ca.
                                        Restoring the land we use                                       allows us to store geographic information and create
                                                                                                        electronic maps to track a number of activities,
                                        When we cease to operate on a parcel of land, our goal          including the progress of our reclamation.
                                        is to restore the disturbed areas back to an equivalent
                                        land use state. One indicator of the success of this            Encouraging healthy, thriving wetlands within our lease
                                        program is the re-establishment of native plant species.
                                                                                                        Our conservation efforts include the responsible devel-
                                        We submit a progress report annually on our conserva-           opment and environmental monitoring of lands within
                                        tion and reclamation activities to Alberta Environment.         our active operating area. Wetlands are an important
                                                                                                        part of an ecosystem as they provide unique habitats
                                        • At the end of 2007, 65 percent (about 1,900 ha)               and allow for species diversity. To help ensure healthy
  720,000                                 of the disturbed area within our lease was
                                          undergoing progressive reclamation.
                                                                                                        aquatic ecosystems, Imperial is participating in the
                                                                                                        development of Alberta's wetland policy through the
  is the number of tree                 •19 percent (about 560 ha) of the disturbed area is             Canadian Association of Petroleum Producers (CAPP).
  and shrub seedlings                    permanently reclaimed.                                         Lori Neufeld, an Imperial environmental advisor,
  planted on our lease                                                                                  represents CAPP on the Alberta Wetland Policy
  since 1998.                           Assessing an area before we develop it                          Project Team.
                                        Before any tree clearing or development can take                Partnering with Ducks Unlimited Canada
                                        place, Imperial must submit for approval detailed
                                        pre-disturbance assessment and reclamation plans to             In 2007, we formed a partnership with Ducks Unlimited
                                        the government. As part of this assessment in 2007,             Canada to evaluate how best to restore a wetland area.
                                        Nu Nennè-AXYS Inc., a company that is majority                  We have received approval from Alberta Environment
                                        owned by Cold Lake First Nations, facilitated the               and, in March, we began reclamation work. The work
                                        identification of areas of significance for traditional         involves removing the clay cap and geotextile liner that
                                        Aboriginal land uses. Our plans include information             is placed over a wetland area prior to construction of a
                                        on the soils, topography and vegetation at a site, as well      new pad. Since the seed bank (the presence of healthy
                                        as an ecological classification of an area that is to be        seeds in a wetland) has not been disturbed, natural veg-
                                                                         developed. The informa-        etation should re-establish over time, once the top
    Mahihkan                                                             tion is then used to out-      layer of clay is removed. Ducks Unlimited will assist
                                                                         line the activities Imperial   Imperial in the ongoing monitoring and evaluation of
                        West                    Nabiye                   will take to restore the       the trial site.
                                                                         land when it ceases to         BRWA designated official planning and advisory council
                                                                         operate on it.
                                                                                                        In 2007, Alberta Environment designated the Beaver
                                                                        An update on our                River Watershed Alliance (BRWA) the official water-
                                                                        major capital projects          shed planning and advisory council for the river basin.
                                North                                Whenever we make a                 The BRWA operates under the umbrella of LICA, and
                                                                     decision to expand our             is co-chaired by Imperial. Key projects for 2008 include:
                                                                     facilities, one of our key         • lake sampling through the Alberta Lake
                                                                     priorities is to mitigate the        Management Society;
                                                                     impact development will
         K-Trunk                                                                                        • creating a web-based portal to allow public access
                                                                     have on the environment.
                                                Mahkeses                                                  to groundwater information;
                                                                     To accommodate future
                                                                     growth, we have expand-            • establishing an aquatics ecosystem health
                                                                     ed our landfill and lime-            monitoring program; and
                                                                     sludge capabilities.               • restoring a wetland near Cold Lake First Nations.
In 2008-9, we plan to drill 40-50 exploration (or temporary) wells   In 2007, we enlarged an
in the six circled areas. Outlined in purple is where we conducted a existing landfill cell and         Remediation trial with plants ends
3-D seismic program in 2007-8. We plan to continue the program       began construction on              In 2007, we did not continue with the phytoremedia-
in the areas outlined in green (2008) and red (2009).                a new cell. We have                tion trial (using plants to remediate hydrocarbon-
                                      received regulatory approval and construction is under-           impacted soil) reported on in prior years. Unfortunately,
                                      way to add a second lagoon to hold non-hazardous lime             due to variability throughout the area in the amount of
                                      sludge, a by-product of the water-softening process.              hydrocarbons in the ground and other technical limita-
                                        Electronically tracking changes to our lease's landscape        tions in measuring the extent of the impact, we were

 of our lease is made
                                        To get a better understanding of the changes that occur
                                        to our site's landscape over time due to manmade and
                                        natural events, we have begun using an electronic
                                                                                                        unable to determine the success of the trial. Instead, we
                                                                                                        did extensive soil sampling to better understand the
                                                                                                        variability. The next steps are to define new remedia-
 up of wetlands.                                                                                        tion goals that are specific to the area and consider
                                        environmental data management system. The software              other remediation technologies.
              Interview with Sandy Martin
              Cold Lake Operations manager
                                                                                                                          metre per year so these wells won't be affected. In the
                                                                                                                          areas where groundwater is regionally connected, the
                                                                                                                          nearest domestic wells in the direction of groundwater
                                                                                                                          flow are about 5-10 km away. Groundwater here still moves
                                                                                                                          relatively slowly at about 100 metres per year and field
                                                                                                                          experiments are monitoring how far arsenic will move
                                                                                                                          before it returns to the sands. Our field experiments will
                                                   Why does CLO issue this report?                                        continue for many years.
                                                   Residents of Cold Lake, Bonnyville and surrounding area                What is being done to prevent soil and
    “Last year,                                    want to know about our performance and I believe that it is
                                                   in our best interest to be transparent about our results, even
                                                                                                                          groundwater contamination?
                                                                                                                          Our primary focus is to maintain the physical integrity of the
     our safety                                    if it means showing that there's room for improvement.                 almost 4,000 producing wells we have on our leases. Every
                                                   Where could the operations improve?                                    well we operate has a steel pipe covering, or well casing,
   performance                                     Last year, our safety performance improved considerably                underground. The job of the casing is to contain well fluids
     improved                                      compared to 2006 and we continue to work with our                      and prevent leaks into the surrounding soil. This casing has
                                                                                                                          to stand up to a lot of stress, including hot temperatures,
                                                   contractors to ensure that Imperial's work site is the
 considerably . . . .                              safest in industry. That being said, more could be done.               high pressure, corrosion and seismic activity. Annually,
                                                   We've introduced additional initiatives such as contractor             we test to ensure that we are utilizing the latest knowledge
  That being said,                                 supervisor safety competence evaluations and a loss                    and methods. Last year, we again commissioned a team to
                                                   prevention system. We will continue to strive for a work-              further improve upon our practices.
    more could                                     place where "nobody gets hurt."                                        Have changes been made based on the
     be done.”                                     Do your operations increase arsenic levels in groundwater?             team's recommendations?
                                                    We now know that the heat from the steam we inject                    In terms of prevention, we've upgraded how we protect
                                                    underground encourages the release of naturally                       our wells between steaming cycles. To improve upon our
                                                    present arsenic from sand into groundwater where the                  detection of leaks, we've beefed up our seismic monitoring
                                                                            hot pipes pass through the                    on new wells, and we pressure test our wells earlier in their
Safety performance                                                          aquifers. The release, however,               lives and more often to ensure they are structurally sound
  Number of incidents per 200,000                                           stops once steaming ceases.                   and ready for steam. Finally, we've increased the amount
  hours worked. A rate of 1.0 represents                                    What we have found in lab experi-             of equipment and materials near the well to aid in rapid
  one injury per 100 workers in one year.                                                                                 response in the event that a failure occurs.
                                                                            ments – and what is beginning to
4.0                                                                         be shown in the field – is that the
                                            Cold Lake employees/                                                          Are you prepared if oil was to contaminate surface water?
                                            contractors incident rate       released arsenic re-absorbs when              Although Imperial has never had a marine spill, our rapid
                                                                            it contacts cooler sediment.                  response team has been trained and is properly equipped
3.0                                         Oil and gas industry employees/
                                            contractors incident rate              Could well water be affected by        to act quickly to minimize any risk to themselves, neigh-
                                                                                   released arsenic?                      bours and the environment. Two of our employees are
2.0                                                                                Based on our monitoring to date,       steering committee members of Western Canadian Spill
                                                                                   released arsenic has not impacted      Services, and several of our operations staff are trained as
                                                                                   local water wells. Throughout          key responders and regularly participate in their exercises.

1.0                                                                                much of our operation, groundwa-       Do you have a question for Sandy?
                                                                                   ter is not directly connected to the   He can be reached at 639-5117 or
                                                                                   domestic well aquifers to the               sandy.d.martin@esso.ca
           2003           2004          2005          2006        2007             south. In these areas, groundwater
                                                                                   moves on average at less than one
                                                                                                                            How to reach us
         Unfortunately, we had 12
         contract workers injured on                  CLO's driver safety record for 2007
                                                                                                                            Imperial Oil Resources
         the job in 2007. One of those                Our employees and contractors had 21 vehicle
                                                      collisions, almost all of which were either wildlife
                                                                                                                            Cold Lake Operations
         was a lost-time incident
         where the worker had to                      strikes or low-speed incidents. Although no serious                   P.O. Box 1020, Bonnyville, AB T9N 2J7
         take four days off. In the                   injuries were reported, we realize we can do better.
                                                      In response, we established initiatives such as                       Main switchboard                 639-5111
         other cases, the injuries
         were minor and the workers                   defensive driving training, scheduled vehicle
                                                                                                                            24-hour emergency line           639-5200
         were able to return to their                 inspections and educational talks at safety meetings
         jobs the same day.                           to reduce incidents. We also continued with an                        This report is a companion to our Corporate
                                                      enforcement program involving the Municipal District                  Citizenship Report (CCR)
                                                      special constables to monitor highway 892 and on-site
                                                      roads. We believe that with continued application in                       Visit our full CCR at www.imperialoil.ca
                                                      2008, these initiatives will yield even better results.

                                                                                                                                                                           WB00208 08 05

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