Decision 2012-07
https://had.aer.ca/link/decision4481
- Applicant
- Koch Oil Sands Operating ULC
- Application Number
- 1617225
- Title
- Decision 2012-007 : Koch Oil Sands Operating ULC application for a bitumen recovery scheme Cold Lake Oil Sands area
- Date
- 2012
- Title
- Decision 2012-007 : Koch Oil Sands Operating ULC application for a bitumen recovery scheme Cold Lake Oil Sands area
- Date
- 2012
- Applicant
- Koch Oil Sands Operating ULC
- Application Number
- 1617225
- Hearing Panel
- Eynon G
- McManus RC
- Engen TC
- Hearing Type
- Board
- Category
- Enhanced recovery
- Gas processing
- Descriptors
- Dispute resolution
- Noise (sound)
- Water quality
- Surface water
- Groundwater
- In situ
- Bitumen
- Oil recovery
- Steam assisted gravity drainage
- Cold Lake area
- Oil sands oil recovery
- NTS 73L
- DIR 054
- DIR 055
- DIR 056
- DIR 078
- Legal References
- 2012 ABERCB 006
- Notes
- Change to legal citation effective January 2011
- Approval
- Approved with conditions
- Conditions
- The Operator’s scheme as described in a)Application No. 1617225, is approved, subject to the Oil Sands Conservation Regulation and the terms and conditions herein contained. 2)Clause 1 does not preclude alterations in design and equipment, provided that the ERCB is satisfied that the alterations are compatible with the outline of the scheme, are made for the better operation of the scheme, and do not result in unacceptable adverse impacts. 3)The recovery process approved for the project is Steam-Assisted Gravity Drainage (SAGD) utilizing only steam as the injection fluid unless otherwise stipulated by the ERCB. 4)Unless otherwise stipulated by the ERCB, the production of bitumen from the project area shall not exceed 1600 cubic metres per day (m3/d) on an annual average basis. 5)The Operator shall conduct all operations to the satisfaction of the ERCB and in a manner that under normal operating conditions will permit a) the recovery of the practical maximum amount of crude bitumen within the project area outlined in Figure 1. b) the conservation of the practical maximum volume of produced gas at the well pads and central facilities, c) the minimization of flaring during non-routine operations such as start-up, shutdown, emergencies, infrequent upsets, and maintenance depressuring, and d) the practical maximum reuse of produced water, with the minimum recycle rate being 90 per cent on an annual basis, unless otherwise stipulated by the ERCB. 6)Prior to drilling SAGD wells in an area, all ERCB regulated wells that could be impacted by thermal operations must be repaired or abandoned in a manner that is compatible with the thermal operations. The Operator must contact the ERCB for discussion of and obtaining approval for the manner in which to repair or abandon wells not considered to be compatible with the thermal operations. 7)Unless otherwise stipulated by the ERCB, the Operator shall: provide the ERCB with gamma ray, spontaneous potential, resistivity, neutron, and density log measurements from total depth to surface casing for all vertical wells, and b) take full diameter cores of the entire bitumen-bearing interval of the Lower Grand Rapids Formation from not less than four evenly-spaced vertical wells per section, and take full-diameter cores of bitumen-bearing intervals of other zones in the Mannville Group, if any, from at least one well per section. 8)Unless otherwise permitted by the ERCB, steam injection operations, having commenced at a well pad, shall continue until the well pad has produced a minimum of 50 per cent of the in-place volume of crude bitumen assigned to that well pad by the ERCB. 9)Where the Operator proposes to cease SAGD operations at a well pad that has produced less than 50 per cent of the in-place volume of crude bitumen and the ERCB’s consent therefore is sought, the Operator shall advise the ERCB as to the following: a)the reason for proposing to cease SAGD operations, b)details of individual well workovers and recompletions attempted, c)detailed economics of continuing operations, d)the effect of ceasing SAGD operations on the bitumen recovery ultimately achievable from that part of the reservoir associated with the pad and immediately offsetting pads, and e)future plans for the well pad with reference to possible follow-up recovery techniques that could be applied and other zones that could be exploited. 10)The Operator shall ensure that sulphur recovery will be operational at the facilities before total sulphur emissions from flaring and combustion of gas containing hydrogen sulphide (H2S) reach one tonne/day on a calendar quarter-year average basis, unless otherwise stipulated by the ERCB. The calendar quarter-year sulphur recovery shall not be less than set out in Table 1 of ERCB Interim Directive (ID) 2001-03: Sulphur Recovery Guidelines for the Province of Alberta on the basis of the calendar quarter-year daily average sulphur content of produced gas streams flared and used as fuel at each central processing facility. 11)(1) The Operator shall notify the ERCB of any proposed material alteration or modification of the scheme or to any equipment proposed for use therein prior to effecting the alteration or modification. (2) Where, in the opinion of the ERCB, any alteration or modification to the scheme or to any equipment proposed for use therein: a) is not of a minor nature, b) is not consistent with the scheme approved herein, or c) may not result in an improved or more efficient scheme or operation, the alteration or modification shall not be proceeded with or effected without the further authorization of the ERCB. The Operator must provide evidence that this material alteration or modification to the scheme or to any equipment will result in a benefit to the scheme or operation and be in the public interest. 12)Any plans for operations or development outside the approved development area shall be applied for to the ERCB for review. Such applications must: a) describe the facility and infrastructure locations and the operation of the surface facilities. Justify any changes from those described in the original application and associated amendments. Evaluate the potential environmental impacts in the context of these changes and contrast with impacts predicted in the original application, b) verify predictions and evaluate the performance of the environmental mitigation strategies proposed by the Operator in the original application and associated amendments. Discuss how the approach to various mitigation strategies might be altered based on the findings of the evaluation and incorporated into future operations, c) provide a summary of the information submitted for the Environmental Protection and Enhancement Act (EPEA), as well as any other environmental information related to the scheme and its amendment that may be required by an agency other than the ERCB, d) provide geological and reservoir data that demonstrate that the reservoir in the proposed development area has been fully evaluated, including evaluation wells and seismic interpretation to fully understand where well pads and wells will be located. Submit updated bitumen, gas, and water mapping, reservoir properties, and reserves estimates for the existing development area, the proposed additional area, and the overall development area, e) describe the Operator’s participation in regional environmental initiatives. Discuss recommendations that have been generated from these regional initiatives and how these recommendations have been incorporated into the project, f) provide a detailed description of the proposed amendment, including subsurface drainage pad design, such as the number of horizontal wells per drainage pad, the lateral spacing between horizontal wells, the length and trajectory of each horizontal well, the horizontal well elevations, and the subsurface drainage area corresponding to each horizontal well. Provide cross section profiles for each horizontal well to demonstrate that the location and design have been optimized to conserve bitumen, g) provide a detailed discussion of the scheme performance to date, with specific emphasis on key factors affecting the success of the scheme, and how this experience has been incorporated into the operation of the existing scheme and the design and operation of the scheme within the proposed additional area, including but not limited to i) the impact of top gas, ii) the impact of top water, iii) the impact of bottom water, iv) the effectiveness of the cap rocks, and v) the state of the steam chamber. h) provide a discussion on modeling results, including the input data, modeling runs carried out, and the latest model predictions of bitumen recovery and pad production profiles based on history matching the field performance data. This information shall include i) a description of the model used, ii) the input data files for the model cases run, iii) for each case run, cross sections perpendicular to the horizontal portion of the wellbore showing the changing fluid saturations and temperature with time to illustrate the growth of the steam chamber to abandonment, iv) a discussion of the history match and parameters adjusted to achieve the match obtained, and v) a discussion of the prediction cases run, plots of the results for key performance predictions (e.g., rates, steam oil ratio), and how the results were used in operation of the existing scheme, in the design and operation of the proposed new area, and in the scheduling of future development of the scheme. 13)Notwithstanding any date by which any work, act, matter, or thing is by this approval required to be done, performed, or completed, the ERCB, if it considers it proper to do so, may by stipulation alter the dates specified. 14)The ERCB may, a)upon its own motion, or b)upon the application of an interested person, rescind or amend this approval at any time.
- Location
- 11-12-060-03W4
- 12-12-060-03W4
- 13-12-060-03W4
- 14-12-060-03W4