Shell Canada Limited (Shell) filed Applications No. 1271285, 1271307, and 1271383 with the Alberta Energy and Utilities Board (EUB). Application No. 1271285 was made pursuant to Sections 10 and 11 of the Oil Sands Conservation Act for approval of an oil sands mine, a bitumen extraction plant. Application No. 1271307 was made pursuant to Section 11 of the Hydro and Electric Energy Act for approval of a cogeneration plant. Application No. 1271383 was made pursuant to Part 4 of the Pipeline Act for approval of a fresh water pipeline.
The project would be located approximately 70 kilometres north of Fort McMurray and 10 kilometres east of Fort McKay. It is designed to produce 31 800 cubic metres per day of bitumen product.
The project required an environmental assessment under the Canadian Environmental Assessment Act (CEAA). On June 26, 2003, the federal Minister of Fisheries and Oceans referred the environmental assessment of the project to a review panel. On August 18, 2003, Canada and the EUB entered into an agreement to establish a joint environmental assessment panel (the Panel) for the project. Under the agreement, the Panel was charged with fulfilling the review requirements of both CEAA and the Energy Resources Conservation Act (ERCA).
The Panel considered Applications No. 1271285, 1271307, and 1271383 at a public hearing held in Fort McMurray, Alberta, on October 6 through 10 and October 15, 2003. Participants who provided evidence at the hearing included Shell, other oil sands developers, First Nations, local aboriginal groups, local residents, nongovernment environmental groups, a local medical staff association, and representatives from provincial and federal regulatory agencies. While participants raised a number of issues for the Panel’s consideration, most of the issues centred on anticipated environmental and socioeconomic impacts of the project.
Having regard for its responsibilities under ERCA and CEAA, the Panel carefully considered all of the evidence pertaining to the applications. The Panel finds that the project is in the public interest, and the Panel is prepared to approve Applications No. 1271307 and 1271383. The Panel is also prepared to approve Application No. 1271285, subject to the approval of the Lieutenant Governor in Council. Furthermore, the Panel concludes that the project is unlikely to result in significant adverse environmental effects, provided that the mitigation measures proposed by Shell and the recommendations of the Panel are implemented.
In approving Application No. 1271285, the Panel set out conditions relating to mining operations, resource conservation, and tailings management. In addition, the Panel also made recommendations to the federal and provincial governments that would aid in the mitigation of the anticipated environmental effects of the project and would address the need for follow-up measures.