Government of Canada’s Response to the Environmental Assessment Report of the Joint Review Panel on the Muskeg River Oil Sands Mine Expansion Project (Archived)

The proposed Albian Sands Energy Inc. (Albian) Muskeg River Oil Sands Mine Expansion Project (Project) is one of several existing or proposed oil sands developments adjacent to the Athabasca River, about 70 km north of Fort McMurray and 5 km east of Fort McKay, Alberta.

In 2005 Albian filed an application with the Alberta Energy and Utilities Board (AEUB) to allow an expansion of the existing Muskeg River Mine mining areas and the construction and operation of a bitumen extraction plant. The Project has been designed to increase bitumen production capacity from the existing 23 850 cubic metres per day (m³/d) to 43 000 m³/d. The application also asked for approval in principle of the integration of the Muskeg River Mine with the Shell Jackpine Mine.

An environmental assessment of the Project was undertaken jointly with Alberta under the Canada – Alberta Agreement for Environmental Assessment Cooperation.

The Project requires: (i) Fisheries and Oceans Canada (DFO) authorization pursuant to subsection 35(2) of the Fisheries Act; and (ii) Transport Canada (TC) approval pursuant to paragraph 5(1) (a) of the Navigable Waters Protection Act. Prior to the issuance of any federal approvals it was necessary to conduct an environmental assessment for the Project under the Canadian Environmental Assessment Act (CEAA).

A Canada – AEUB environmental assessment Panel (the Joint Panel) considered Application No. 1398411 at a public hearing held in Fort McMurray, Alberta from September 5 to 7, 2006, and in Nisku, Alberta from September 11 to 14 and September 18, 2006.

The Joint Panel issued its report on December 17, 2006. With regard to its responsibilities under CEAA and to its terms of reference, the Joint Panel concluded that the proposed Project is unlikely to result in significant adverse environmental effects, provided that the mitigation measures proposed by Albian and the recommendations of the Panel are implemented.

The Joint Panel report contains eleven (11) recommendations to the Government of Canada. These Panel recommendations relate to: commitments to provide resources in support of regional initiatives, especially the Cumulative Environmental Management Association (CEMA) working groups; collaboration with Alberta and Albian in the development and implementation of monitoring programs and surveys to evaluate both project-specific and cumulative environmental parameters; participation in technology review and development; and ensuring that Albian complies with federal regulatory requirements.

The Joint Panel’s recommendations to the Government of Canada are addressed through this federal response, as proposed to be approved by the Governor in Council, and in consultation with other federal agencies, pursuant to subsection 37(1.1) of CEAA.

The Government of Canada accepts the conclusions of the Joint Panel as presented in the report. In preparation of this Government of Canada Response, DFO and TC, as the Responsible Authorities (RA’s) under CEAA, considered the report submitted by the Joint Panel. The Government of Canada, through the RA(s) under CEAA, will ensure that the appropriate follow-up programs are designed and implemented as well as ensuring the implementation of appropriate mitigation measures, as set out by Albian in the environmental assessment, for areas of jurisdiction that the Government of Canada has regulatory responsibility.

The federal government will work with Albian, provincial and municipal governments, Aboriginal Groups and regional stakeholders to carry out the recommendations in the Joint Panel report as noted in the response.

The Panel lists eleven recommendations specific to the Government of Canada. In relation to these, the Government of Canada states the following:

Recommendation 1

Coordinated action be taken at all levels of government to ensure that the Regional Municipality of Wood Buffalo (RMWB) has the ability to service the anticipated level of sustained growth in the region (Section 6.2.5);

Response:

The Government of Canada accepts this recommendation.

The Government of Canada will work with municipal and provincial governments, regional stakeholders and industry to address regional issues in areas of federal responsibility.

Recommendation 2

Environment Canada (EC) and Alberta Environment (AENV) work together to assess the need for a mine fleet emissions technology review and regulation development process (Section 10.1.4);

Response:

The Government of Canada accepts this recommendation.

EC believes that degradation in regional air quality can be minimized by requiring the application of best available technology and best management practices. EC will work with AENV to assess the need for a mine fleet emissions technology review and regulation development process. EC will also work with AENV and oil sands operators to assess the technology development and implementation of retrofit NOx (nitrogen oxide gases) and PM (fine particulate matter) after-treatment technology.

Recommendation 3

EC work with AENV to require further evaluation of NOx-NO2 conversion technology; this would most appropriately be done through a regional oil sands industry committee with AENV and EC participation or alternatively through the Cumulative Environmental Management Association (CEMA) (Section 10.1.4);

Response:

The Government of Canada accepts this recommendation.

EC believes that degradation in regional air quality can be minimized by requiring the application of best available technology and best management practices. EC will work with AENV to determine if further evaluation of the methods and data used for NOx-NO2 conversion is needed. EC will also work with AENV to determine if the evaluation of NOx-NO2 conversion is more appropriately carried out through a regional oil sands industry committee or through CEMA.

Recommendation 4

The Department of Fisheries and Oceans (DFO), EC, AENV, and other stakeholders give their input to Albian if a requirement for the development and implementation of monitoring programs for sediment and water quantity and quality for waters that may be affected by the project is required by AENV as a condition in any Alberta Environmental Protection and Enhancement Act approval that may be issued if additional site-specific monitoring is required (Section 10.2.5);

Response:

The Government of Canada accepts this recommendation.

Any Fisheries Act authorizations issued by DFO will include requirements for monitoring parameters related to fish habitat compensation works. This may also include the requirement for monitoring of the potential effects from the Project on sediment and water quality and water quantity as it relates to DFO’s mandate. DFO will work with EC, Alberta, Albian, and other stakeholders as necessary, in the development and implementation of monitoring programs to be conducted by Albian.

Recommendation 5

DFO continue discussions with Albian towards establishing an NNLP that meets the objectives of the Fisheries Act in terms of fish habitat losses and disturbances and includes proper monitoring to better ensure and confirm the success of the compensation project (Section 10.3.3);

Response:

The Government of Canada accepts this recommendation.

DFO will continue to work with Alberta, Albian and other stakeholders to ensure that Albian finalizes a detailed No Net Loss Plan (NNLP) for Fish Habitat Compensation that conforms with the Department’s Policy for the Management of Fish Habitat. The detailed NNLP will include an estimation of the fish and fish habitat losses, mitigation measures, fish habitat compensation strategies, and monitoring. Consistent with the requirements of the Canadian Environmental Assessment Act and Fisheries Act any Fisheries Act authorizations issued by DFO in relation to the Project will contain specific conditions to ensure that mitigation measures for the protection of fish and fish habitat are implemented; that monitoring and follow-up studies to address the efficacy of mitigation measures and verify impact predictions are undertaken; and that habitat losses identified are adequately compensated.

Recommendation 6

EC and DFO collaborate with AENV and other regional stakeholders to consider approaches and establish the parameters required for regional monitoring for cumulative effects on fish habitat in the lower Athabasca River and Muskeg River watersheds (Section 10.3.3);

Response:

The Government of Canada accepts this recommendation:

Both EC and DFO will continue to work with AENV and other regional stakeholders to consider alternative approaches and to establish the parameters required for regional monitoring for cumulative effects on fish habitat in the lower Athabasca River and Muskeg River watersheds.

Recommendation 7

Transport Canada (TC) identify any additional approval conditions necessary to ensure navigational safety and include these conditions in any authorization (Section 10.4.3);

Response:

The Government of Canada accepts this recommendation.

Upon receipt of an application under the Navigable Waters Protection Act, TC Navigable Waters Protection Officers will review the details of the proposed works and will identify any additional Approval conditions necessary to ensure navigational safety.

Recommendation 8

EC collaborate with AENV in a review of the cumulative impacts on the Yellow Rail in the oil sands region using appropriate regional nocturnal surveys in areas of potentially suitable habitat within the next two years; the initiative should also determine mitigation options to minimize the impact on the Yellow Rail (Section 11.2.5);

Response:

The Government of Canada accepts this recommendation:

The Yellow Rail, a migratory bird (listed in the Species at Risk Act as a species of special concern) could be affected by regional development. As stated at the hearings, EC believes that a regional oil sands industry committee is the most appropriate forum through which regional nocturnal surveys should be carried out, and that the results of these surveys should inform the determination of mitigation measures. EC will collaborate with AENV, the proponent and other necessary agencies and stakeholders, by providing advice and expertise on survey protocols, study design and any resulting mitigation measures.

Recommendation 9

DFO assign members with the appropriate science and technical background to assist in moving the CEMA Watershed Integrity Task Group’s (WITG’s) work plan forward; (Section 12.2.5);

Response:

The Government of Canada accepts this recommendation.

Fisheries and Oceans supports this CEMA initiative and will continue to participate in the WITG and to provide advice and expertise in areas within its mandate. DFO will work with members of the task group to develop clearly defined objectives in order for government agencies such as DFO, to help move the work plan forward.

Recommendation 10

DFO, as a member of the WITG, commit to participating actively and consistently in the group (Section 12.2.5);

Response:

The Government of Canada accepts this recommendation:

Fisheries and Oceans Canada is supportive of the development of a watershed management plan for the Muskeg River basin and will provide consistent, active participation in the CEMA Watershed Integrity Task Group (WITG) and other regional initiatives relevant to DFO’s mandated responsibilities.

Recommendation 11

DFO and EC, as government agencies, place a greater priority on their roles within CEMA (Section 12.3.6).

Response:

The Government of Canada accepts this recommendation:

The potential of CEMA to define, fund and accomplish the necessary scientific and technical studies and research exceeds the capability of any one of its member groups. DFO and EC currently participate in various working groups of CEMA providing expertise and focusing efforts on the resolution of issues identified to be of the highest priority, in addition to providing resources. Both DFO and EC are committed to ongoing support of CEMA.