October 2008 issue
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Environment Committee Series
Where the Athabasca Flows
There’s plenty of water flowing past the oilsands in the mighty Athabasca River, particularly at peak times. But government and industry are taking steps now to make sure that flow stays strong — and can handle the coming demand as new plants start operating
Editor’s Note: With this story, the APEGGA Environment Committee resumes its series on environmental issues facing members.
BY BILL CORBETT
Freelance Writer
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-photo courtesy of Travel Alberta |
The Industry’s Lifeblood |
Arising from the melt waters of the lofty Columbia Icefield in Jasper National Park, the Athabasca River winds northeast through aspen parkland and boreal forest before finally emptying into the great, silty delta of Lake Athabasca. At more than 1,200 kilometres, the Athabasca is the longest river entirely in Alberta.
Despite its length, it is also the province’s only major river without a dam or other significant obstruction along its course. In fact, not until near the end of its long path does the Athabasca finally make its way through a sizable community.
That community, of course, is Fort McMurray. And the area’s burgeoning oilsands sector means the mighty Athabasca River is named on a growing number of environmental watch lists. Governments and the industry are paying attention, too, and looking for ways to improve how water is managed.
Yet at first glance, all the fuss might appear unnecessary. After all, there seems to be plenty of water in the Athabasca to fuel the boom — even with an increase of 150 per cent in industry allocations between 2000 and 2006. Allocations for all current and approved oilsands operations account for less than two per cent of the river’s average annual flow. The entire Athabasca River Basin’s allocations amount to just 3.6 per cent, including municipal use and five upstream pulp mills.
By contrast, nearly 36 per cent of the North Saskatchewan River basin’s annual average flow is allocated through water licences (this includes the Sounding and Battle sub-basins). Even if oilsands production nearly quadruples, as predicted, to four million barrels per day by 2020, the Athabasca’s average annual flow of 633 cubic metres per second, just downstream of Fort McMurray, would seem easily sufficient.
Inconsistent Flow
Those numbers, however, ignore that the Athabasca’s flow is not consistent. In large part, this is because there are no on-stream reservoirs to even out its highs and lows.
The swing is dramatic. Flows range from an average of 1.5 million litres per second at Fort McMurray during early summer runoff to an historic winter low of 75,000 litres per second. The latter was recorded during a five-year stretch, from 1998 to 2002, when low-flow periods lasted up to four months.
A 2004 study by Golder Associates concluded that allocations for existing and planned oilsands plants could account for up to 30 per cent of the river’s volume during winter low-flow periods. Actual withdrawals are usually considerably less than what companies are licensed to use, but some stakeholders fear the river is vulnerable.
Such low-flow periods are particularly sensitive for downstream fish populations. Sufficient flows at peak periods are also important. They’re needed to recharge the delta’s rich and complex wetlands, which support a diversity of birds and mammals.
Framework Introduced
Governments have responded to concerns that flows could, at times, be insufficient to meet both in-stream needs and the demands of a rapidly expanding oilsands sector. Alberta Environment, along with Fisheries and Oceans Canada, last year introduced a framework to manage cumulative withdrawals from the lower Athabasca by oilsands companies. Under this framework, companies must reduce their withdrawals during environmentally sensitive periods such as ice formation, breakup and fish spawning.
In the first phase, effective July 2007, the framework specifies cumulative withdrawal limits that industry must meet during three naturally occurring flow conditions. These conditions and their limits are
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Green. Under sufficient flows, withdrawals are allowed up to 15 per of river flow.
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Yellow. During natural low flows, withdrawal limits range from 11 to 34 cubic metres per second.
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Red. During lower flows — which typically occur about four per cent of the time — total withdrawal is restricted to between eight and 34 cubic metres per second to ensure minimal loss of fish habitat.
The framework’s second phase will be implemented by September 2010. It will include stakeholder consultations, as well as scientific and traditional knowledge and monitoring programs, to assess and, if necessary, adjust Phase 1 limits.
Besides protecting the river’s ecosystem, the framework is intended to prompt oilsands companies to conserve water and seek innovative water-use strategies and technologies. Operators must also submit plans to Alberta Environment for how they would cut their water withdrawals during environmentally sensitive periods. And unlike most watershed management regulations, which primarily hit junior water licences, the lower Athabasca framework compels both new and existing oilsands operators to work together to share the river’s water within the prescribed limits.
“Companies now realize they face potential restrictions in their withdrawals that could affect their production capacity,” says Bill Berzins, P.Eng., president of Fossil Water Corporation, a Calgary-based firm specializing in water projects. “Concerns have been raised that if everybody demands peak water at the same time, there’s a risk that a significant percentage of river water could be withdrawn during low-flow periods. Avoiding this issue requires a combination of supply-side and demand-side solutions.”
Water’s Oilsands Role
Operators do need water, because it truly is the lifeblood of the oilsands industry. It is used in virtually every step of operations — from extraction and hydro-transport to bitumen processing and upgrading. Water even helps run utilities and maintain tailings ponds.
On average, three barrels of fresh water are needed to produce one barrel of oil. Another 12 or so barrels of water come from recycled sources. Most of the fresh water is drawn from the Athabasca River, supplemented by groundwater, site runoff, overburden drainage and water contained in the oilsands.
At upstream pulp mills in communities such as Hinton, Whitecourt and Athabasca, most of the processing water is treated and then returned to the river as effluent. For example, Alberta Pacific Forest Industries in Athabasca withdraws some 1,000 litres of water per second from the river and returns 900 litres per second as treated effluent. The difference is lost to evaporation or used as drinking water.
Oilsands operators don’t have the option of sending the water back. Because of the low quality of water after it’s used to process bitumen, companies must retain all process waters and tailings on their leases. This has led to the creation of 70 square kilometres, and counting, of tailings ponds, which tie up vast quantities of water.
While the water that eventually separates from sand and other particles in these ponds is the primary source of recycled water used in extraction, much of it can never be used. Over time, recycled water also causes scaling and other problems in plant equipment.
Industry’s Progress
Still, existing oilsands operations have made great strides in reducing their water use. Syncrude, for example, uses 60 per cent less water per barrel of oil produced than it did in the 1980s. And it operates under the same water withdrawal licence it was granted in the 1970s — despite a subsequent quadrupling in production.
Suncor has achieved similar reductions, now using about 2.4 barrels of river water for every barrel of oil produced. It is currently near the capacity of its river withdrawal limit of 60 million cubic metres per year. But thanks to continuing water-reduction efforts, such as its development of consolidated tailings technology, Suncor did not seek an increase in its water licence for its new Voyageur operation.
Nonetheless, like other existing and prospective operators, Suncor recognizes that greater efforts are required, noting on its website that “increased scrutiny of water use is now a given for all companies operating in the region.”
Indeed, oilsands companies are becoming increasingly aware of the social licence to operate they have been granted, says Chris Godwaldt, P.Eng. Mr. Godwaldt is the water management program director for Alberta WaterSMART, a non-profit group dedicated to improved water management through better technologies and practices.
“Oilsands development and its impact on the environment are no longer an Alberta or even a Canadian issue,” he says. “This is a global issue.”
Facing potential future water restrictions, more recent project proponents have planned onsite water storage to tide them over during low-flow periods. While most such contingency storage to date has been for 30 days of operation, Total Canada plans to build 90 days of storage capacity for its Joslyn North Mine project.
Although onsite storage may be prudent, it can also be expensive and require significant amounts of lease space. In a move to help solve a collective industry issue, Fossil Water Corporation proposes communal storage by expanding an existing, non-fish-bearing lake, located 170 kilometres upstream of Fort McMurray.
The resulting offsite reservoir, which could hold 100 million cubic metres of water, would withdraw some 4.5 cubic metres per second of river water during peak flows and — besides meeting participating oilsands operators’ needs — release water back into the river during low-flow periods.
“We could offset much of the incremental demand being proposed by new projects and some expansions, at a cost designed to be cheaper than onsite storage,” says Mr. Berzins. Coming in at perhaps $350 million, the project could begin filling its reservoir by 2011 if approved and financed.
“The reaction to the proposal has been positive,” says Mr. Berzins. “People like the idea that it’s a collaborative project. At its core, it’s dedicated to maintaining river flows, rather than to each site managing its water use independently.”
Further Ideas
At the same time, a consortium of nine oilsands companies has commissioned a study to look at a range of options, including offsite storage, for complying with the framework’s new regulations. Research efforts are also intensifying to develop various technologies for cutting oilsands water use.
At the University of Alberta, for instance, Selma Guigard, P.Eng., is investigating a bitumen extraction method that would use little or no water. Instead of the standard hot water process — a byproduct of which is tailings ponds — Dr. Guigard’s method would use recycled carbon dioxide and other solvents, which when heated and pressurized act as a supercritical fluid. The same principles are commonly used in removing caffeine from coffee.
Some oilsands companies are interested in the idea. Dr. Guigard, an associate professor of environmental engineering, is seeking the funding to expand her research to beyond the laboratory.
“I think (companies) realize they can’t continue to keep putting more pressure on the Athabasca River and to keep producing tailings ponds,” she says.
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