The Alberta Energy Regulator says it has a better idea of what went wrong at CNRL’s Primrose project, but it’s not ready to approve full operations at a SAGD site that’s had bitumen oozing to the surface since last May.
Yesterday, an independent panel released two reviews on the site’s emulsions. The AER says roughly 1180 cubic metres of bitumen emulsion was recovered from the four sites, and the area affected is about 20.7 hectares.
“Our assessment of the reports leads us to believe that these flow-to-surface events can be prevented if proper mitigation measures are put in place,” said president and CEO Jim Ellis, in a news release. “That said, the AER is not prepared to approve a return to full operations at these sites until all potential risks are addressed and proper requirements are in place to avoid a similar incident. This will require a gradual, step-by-step approach that allows us to manage those risks.”
The AER imposed restrictions on steaming activity at Primrose East and within one kilometre of Primrose South last June. It says the releases have been contained and cleanup continues.
It expects to have a final report out in September. Hearings for TransCanada’s Grand Rapids pipeline, recently wrapped up, with critics complaining the AER process was too rushed.
Grand Rapids is a 50-50 joint venture with PetroChina that would ship up to 900,000 barrels per day from a producing area northwest of Fort McMurray to the Edmonton region.
