Imperial oil sands tailings conditionally approved
11 Aug 2010 18:38 ET
* Eight conditions imposed on Kearl project tailings
* Imperial must file plan to speed tailings reduction
* Still reviewing plans from CNRL and Shell
CALGARY, Alberta, Aug 11 (Reuters) - Alberta's energy regulator approved Imperial Oil Ltd's plans to deal with toxic waste at its C$8 billion ($7.6 billion) oil sands project, but said the company must improve expected performance in the first six years of operations.
The Energy Resources Conservation Board imposed eight conditions on Imperial's Kearl development, the latest project to win approval under recently tightened regulations for tailings ponds.
The board said Imperial had stated it would not be able to achieve annual targets for tailings reduction as set out in the new rules, called Directive 74, for the first half dozen years because it is using new technology that will take time to implement.
In response, the company must submit a plan by January 2012 that proposes alternatives to accelerate the reduction of tailings, which consist of water, leftover bitumen, clay and heavy metals from the oil sands production process.
Under the directive, operators must report on the ponds annually, cut the accumulation of fluid tailings and specify dates for construction, use and closure.
The ponds came to symbolize the battle between environmental groups and the oil sands industry in 2008, when 1,600 ducks were killed when they landed on a tailings pond at Syncrude Canada Ltd's operation in northern Alberta. A judge found Syncrude guilty in the deaths in June.
Syncrude expects to spend hundreds of millions of dollars to reduce tailings under plans approved by the ERCB in April.
Environmentalists complained the board imposed weaker targets on the operation than had been spelled out in the directive.
Also among conditions for Imperial's Kearl project, the company must exceed the Directive 74 tailings reduction targets after 2018, the board said.
The ERCB said it is still reviewing tailings plans for Canadian Natural Resources Ltd's Horizon project and Royal Dutch Shell Plc's Jackpine and Muskeg River developments.
Kearl, a joint venture of Imperial and Exxon Mobil Corp , is expected to start up in 2012.
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