Plain Language Project Summary

SURMONT
Project Overview
Our Commitment MEG is committed to developing our oil sands projects in a responsible and safe manner.
Our public consultation process is designed to include local communities and stakeholders in project planning and implementation. We strive to address concerns and incorporate feedback into our project designs. Your feedback is important to us.
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Surmont Project Overview
Table of Contents
02 Our Commitment 08Surmont Project Overview
05Who We Are 09 Project Schedule
05 Our Oil Sands Leases 11 MEG and the Environment
07 Recovery Technology
14 MEG and the Community
Surmont Project Overview
03
Who We Are
MEG Energy Corp. (MEG) is a Canadian oil sands company focused on sustainable
in situ development and production in the Southern Athabasca oil sands region of Alberta.
We use steam-assisted gravity drainage (SAGD) in our operations. Currently, MEG has one operating project in the
Christina Lake region, located northeast of Conklin, Alberta. The Christina Lake Project is a multi-phased development
currently designed to produce approximately 25,000 barrels per day (bpd).
Our Oil Sands Leases
MEG currently owns more than 900 sections of oil sands leases
in the Southern Athabasca oil sands region.
Christina Lake Project
Phases 1 & 2
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Surmont Project Overview
Surmont Project Overview
05
Depth in metres
0
225
275
Schematic only, not to scale
Recovery Technology How MEG extracts oil from its leases
MEG uses in situ techniques to extract bitumen from the oil
sands. In situ extraction methods may be used when the oil
sands are located more than 75 metres deep. They do not
require tailings ponds.
MEG uses a technology called steam-assisted gravity
drainage (SAGD) to recover the bitumen. In SAGD
operations, pairs of stacked horizontal wells are drilled into
the oil sands reservoir located deep underground. At our
Surmont Project, the wells are approximately 250 metres
beneath the surface.
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Surmont Project Overview
The bottom well, called the production well, is drilled
approximately three to five metres above the base of the
bitumen. The top horizontal well, the steam injection well,
is drilled five metres above the lower well. The top well
injects steam into the reservoir, heating up the bitumen so it
separates from the sand and flows down into the lower well
with the water from the steam. The production well pumps
the bitumen to the surface, where it is separated from the
water. The water is treated and recycled into the system.
Horizontal wells are able to reach hundreds of metres
underground, which means the vegetation and wildlife on
much of the surface is not disturbed at all.
Surmont Project Overview
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Surmont
Project Schedule*
Project Overview
Year
2011
2012
2013
2014
2015
2016
Initial Planning &
Application Development
MEG is proposing to develop an in situ project on its Surmont leases
in the Southern Athabasca oil sands region of Alberta.
Submit Integrated Application
Planning, Design & Engineering
The Surmont Project falls within portions of Townships 81-82, Range 5 W4M, 80 kilometres south of Fort McMurray. This area
has been extensively explored and developed for natural gas projects, and more recently for oil sands resources. Other thermal
recovery projects are already operating in this area. MEG’s Surmont Project includes a planned capacity of approximately
120,000 bpd.* The project will be built in phases and will feature SAGD recovery of bitumen from the McMurray Formation.
Regulatory Review
Anticipated Regulatory Approval
Site Prep & Construction
Operations
Project
Location
Within portions of Townships 81-82, Range 5
Recovery
Technology
SAGD in the McMurray Formation
Facilities
Steam generation, cogeneration, water
steam delivery pipelines, product recovery
pipelines, water source wells, wastewater
disposal, construction and operations camp
Surmont
Project Area
Environmental and engineering studies
in progress in preparation for filing of the
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Surmont Project Overview
Late 2014
Anticipated
construction start
Late 2016
First-steam date
Ongoing
Public consultation
Our goal is to submit a commercial project application to the Energy
Resources Conservation Board (ERCB) and Alberta Environment
and Water (AEW) for review in mid-2012 for approvals under
the Oil Sands Conservation Act, the Environmental Protection and
Enhancement Act and the Water Act. This application will include a
complete Environmental Impact Assessment (EIA). Input from local
communities will assist in planning and completing the EIA.
Applications will also be made to the Alberta Utilities Commission
(AUC) for the cogeneration facilities and to Sustainable Resource
Development (SRD) for the surface dispositions required for the
project components.
regulatory application
Approximately 25 years*
Submit integrated
application
MEG is committed to engaging in a constructive dialogue with the regulatory
agencies, communities and individuals in the project area to achieve an
environmentally responsible and economically feasible project.
sulphur recovery, multi-well production pads,
Project Life
Mid-2012
Regulatory Process
treatment and recycling, bitumen treatment,
Status
Key Dates
Public Consultation
W4M, 80 km south of Fort McMurray
and other secondary infrastructure
2017
Christina Lake
Project
For additional information on the regulatory process, please visit
www.ercb.ca or www.environment.alberta.ca.
* Production rates, the project schedule and project life may vary as the size and pace of development is dependent on a number of factors,
including the timing and terms of regulatory approvals, the implementation of improving technology, the phase sizes and various other factors.
Surmont Project Overview
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MEG and
the Environment
Our Goal To meet or exceed environmental protection standards within our industry
by exercising a standard of care in all of our activities that considers:
1 Environmental Protection
2 Regulatory Requirements
In total, the surface footprint associated with SAGD operations like the one planned for Surmont, is minimal.
In fact, MEG’s current SAGD facilities at Christina Lake use only
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Surmont Project Overview
10-15% of the land surface of a lease.
3 The Interests of the Communities
MEG is committed to developing its projects in an environmentally responsible manner. We pride ourselves on
taking a proactive approach to implementing technology, programs and procedures that not only mitigate our
environmental impact, but also create positive outcomes for current and future generations.
Surmont Project Overview
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Water Steam is a key component of SAGD operations.
In all of our projects, MEG sources the water
needed to produce steam from non-drinkable
sources located deep under the ground.
Potential Water Source and Disposal
Water
Source/Disposal
Water
Source
MEG is committed to building
energy-efficient facilities that
minimize emissions. One of the
ways MEG demonstrates this
commitment is through the use of
cogeneration in our operations.
No surface water will be used to operate the SAGD facilities. MEG
aims to recycle more than 90% of the water it uses. Make-up water
is planned to be accessed from the Clearwater and McMurray
Formations. Because of their depths, water used from these
formations will have minimal environmental impact.
COGENERATION PROCESS
LAND & RECLAMATION Schematic only,
not to scale
The surface footprint of SAGD operations is minimal.
Throughout the planning and development process, MEG considers both scientific and traditional knowledge in the design
of the project. Locations of water bodies, rare plants, wildlife habitats and historically or ecologically significant lands are
considered. The Surmont Project will be designed to use multi-well pads and shared utility corridors where possible, to reduce
land disturbance and related environmental impacts.
As operations are completed, MEG will use progressive reclamation techniques. In this process, disturbances are reclaimed
once they are no longer required for the project. Topsoil, subsoil and peat materials are carefully preserved for reclamation.
The reclamation process begins as well pads, pipelines and roads are retired. This minimizes the surface footprint over
the project’s life.
Wildlife Wildlife photographed at MEG’s Christina Lake Project
At MEG, we design our projects to reduce impacts on wildlife by minimizing
our overall footprint and progressively reclaiming disturbed areas.
Designing our projects in this manner reduces impacts such as soil erosion and also enhances the early restoration of wildlife
habitat. MEG also supports regional biodiversity and wildlife monitoring programs in the areas where we operate.
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Surmont Project Overview
Energy & Emissions Cogeneration Cogeneration is a progressive
technology which simultaneously
produces steam and electricity.
This process allows MEG to
produce two energy products,
bitumen and electricity, from one
energy source, natural gas.
Gas
Turbine
Heat Recovery
Steam Generator
Natural
Gas
COGENERATION
Electricity
80%
Steam
Recycled Water
20%
Clean natural gas is used in our operations to
efficiently produce electricity. The excess heat
created when producing this electricity is utilized
to produce steam. MEG uses the steam and power
for its production operations and provides excess
electricity back to the Alberta electrical grid.
The electricity provided back to the power grid has
a lower carbon footprint than the provincial average,
helping to reduce total greenhouse gas emissions.
Alberta Electrical
Grid
SAGD OPERATIONS
Produced Bitumen
With the benefits of cogeneration and low steam-to-oil ratios, MEG produces
one of the lowest intensity greenhouse gas barrels in the oil sands industry.
Surmont Project Overview
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MEG and the Community
MEG recognizes the importance of effective and transparent communication with directly
affected stakeholders to ensure a project’s social, environmental and economic sustainability.
It’s a priority for MEG to develop positive, long-term relationships with our stakeholders.
Local Involvement
In addition to involving local people in the regulatory and planning process,
MEG will require appropriately qualified people for both the construction
and operations of the Surmont Project.
Local hiring will be encouraged where qualified candidates are available.
Services and supplies will be obtained locally, where possible.
Consultation
During the development of the EIA and throughout the regulatory approval process,
we will consult with people from the local area to ensure there is an awareness and
understanding of the project, as well as an opportunity to provide feedback.
Consultation will be undertaken for the EIA and Integrated Application, including the AUC application and
applications to SRD for surface dispositions. MEG will focus on seeking input related to project-specific concerns
and potential impacts. We will also strive to incorporate Traditional Environmental Knowledge and Traditional
Land Use information in all phases of our project planning and operations.
This consultation is designed to be ongoing from the application phase, through the operating life of the
project, to eventual decommissioning and reclamation.
Our People
MEG is a proud Canadian corporation. We have attracted an enthusiastic and dedicated
group of employees with significant oil sands development experience.
Many people on the MEG team have been responsible for, or have participated in the development of several of the
original oil sands projects in Alberta. MEG employs people from the local community who are able to develop new skills
and bring a communal spirit to help MEG achieve its long-term commitment of sustainable development. MEG gives high
priority to stakeholder relations, environmental stewardship, health and safety and providing community benefits. MEG’s
intent is to minimize the impact on the natural surroundings and its neighbours and to ensure continued compliance with
regulatory requirements.
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Surmont Project Overview
Surmont Project Overview
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For additional information, please contact:
Rory O’Connor
Manager, Community Relations
11th Floor, 520 – 3rd Avenue S.W.
Calgary, AB T2P 0R3
P: 403-775-1853
E: communityrelations@megenergy.com
www.megenergy.com
Publication Date: March 2012