Regulatory

The following section provides links to the various documents related to Laricina’s regulatory application process for oil sands development.

Current Development Applications Saleski Phase 1 Germain Expansion Stony Mountain Pipeline

Archived Applications Saleski Pilot Germain Commercial Demonstration Project

Saleski Phase 1

In December 2010, Laricina submitted the regulatory application for Saleski Phase 1, the first commercial phase development at Saleski. Saleski Phase 1 will expand the existing 1,800-barrel-per-day Pilot by 10,700 barrels per day for a combined12,500-barrel-per-day bitumen recovery scheme. Laricina holds a 60 percent ownership in Saleski and is the project operator.

The use of a SAGD-based recovery scheme at Saleski will be a first for the carbonates. The Saleski Pilot has been designed to provide Laricina with the geological framework and technology necessary for oil recovery within the Grosmont Formation. Saleski Phase 1 builds on this knowledge and expands the project to a commercial development. Regulatory approval of Phase 1 is expected in the second quarter of 2012. Subject to additional funding, the initial focus will be on drilling the first 16 well-pairs aimed at establishing 10,700 barrels per day productivity. Over the next two years, Laricina will carry out the other building elements, including engineering, module sourcing, fabrication, installation, site construction and commissioning.

Saleski Phase 1 will utilize Laricina’s proprietary solvent-cyclic SAGD or SC-SAGD process. The addition of solvents will help to lower the steam requirements while maintaining bitumen production rates.

The proposed Saleski Phase 1 project will be located to the southwest of the Pilot plant site and a number of the components constructed and used for the Pilot will be used for Saleski Phase 1 (e.g. roads, fuel gas pipelines, source and disposal wells and associated pipelines, and construction and operations camp).

The new and incremental components of Saleski Phase 1 consist of:

The original applications are available as interactive PDFs and may be downloaded for offline viewing and printing:

• Click here to view Saleski Phase 1 Alberta Environment Application (PDF) On PC, this document is best viewed with Firefox, Internet Explorer 7-9 or Safari.
  
  On Mac, this document is best viewed with Safari.
  
  Adobe Acrobat must be installed on both PC or Mac to access this documents special features.
• Click here to view Saleski Phase 1 ERCB Application (PDF) On PC, this document is best viewed with Firefox, Internet Explorer 7-9 or Safari.
  
  On Mac, this document is best viewed with Safari.
  
  Adobe Acrobat must be installed on both PC or Mac to access this documents special features.
• Click here to view Notice of Application (PDF)
• Click here to view Saleski Project Description (PDF)

(Note: This document's menu may not function properly on all browsers. To avoid any potential problems, please update Adobe Acrobat to the latest version which has been tested with this PDF.)

Copies of the applications are available for viewing at the following locations:

• Wabasca Public Library
  Wabasca, Alberta
  Telephone: 780-891-2203

• Energy Resources Conservation Board
  Information Services, Calgary Office
  Main Floor, 640- 5 Avenue S.W.
  Calgary, Alberta T2P 3G4

Website: www.ercb.ca

• Register of Environmental Assessment Information
  Alberta Environment
  111 Twin Atria Building
  4999 – 98 Avenue
  Edmonton, Alberta
  T6B 2X3

Germain Expansion

On November 14, 2011 Laricina submitted a regulatory application to Alberta Environment and Water (AENV) and Alberta Energy Resources and Conservation Board (ERCB) for a 150,000 barrel-per-day expansion to its already approved 5,000 barrel-per-day Germain Commercial Demonstration Project (Phase 1). The total proposed capacity of the Germain Project of 155,000 barrels-per-day of bitumen will provide sustained production over a 30-year period from the Grand Rapids Formation.

The proposed Germain Project Expansion (Phase 2-4) will build on the current 5,000 barrel-per-day Phase 1 currently being constructed in the west Athabasca region of northern Alberta. Laricina is targeting the second quarter of 2013 to start-up steam injection at Phase 1.

Phase 2 will consist of a 30,000 barrel-per-day facility that will be integrated with the initial 5,000 barrel-per-day Phase 1; Phase 2 may utilize either SAGD or SC-SAGD and the facility is being designed for flexibility in steam requirements; Phases 3 and 4 each will consist of 60,000 barrel-per-day facilities. In each phase, Laricina will use a combination of thermal and solvent-assisted processes to recover bitumen from the Grand Rapids oil sands.

The Germain Project Expansion will consist of the following components:

• Central processing facility
• Associated infrastructure such as office buildings, storage sheds
• Soil storage areas, borrow pits
• Equipment lay down and staging area
• Permanent (operations) and temporary (construction) camp facilities
• Electrical substation
• Well pads with SAGD well pairs
• Observation wells
• Groundwater monitoring wells
• Water source and disposal wells
• Gathering corridors including roads, gathering lines and power lines to the pads
• Wildlife crossings

A First Nations Consultation Plan along with a plan language Project Description was submitted in December 2010 to AENV and delivered to the Bigstone Cree First Nations Consultation Office and the Peerless-Trout First Nation. Laricina subsequently filed with AENV the proposed Terms of Reference for an Environmental Impact Assessment (EIA) which was finalized May, 2011.

Pending regulatory approvals, the initial construction of Phase 2 will commence in 2013 with first steam anticipated in late 2015. The third and fourth phases of 60,000 barrels-per-day each are expected to begin operations in 2018 and 2021, respectively.

The related documents for the Germain Project Expansion are available in PDF format and may be downloaded for offline viewing and printing:

GERMAIN PROJECT EXPANSION Submitted to: Alberta Energy Resources Conservation Board and Alberta Environment Click here to view interactive PDF On PC, this document is best viewed with Firefox, Internet Explorer 7-9 or Safari. On Mac, this document is best viewed with Safari. Adobe Acrobat must be installed on both PC or Mac to access this documents special features.

• Click here to view Germain Expansion Application on ERCB web site (PDF)
• Click here to view Germain Project Description (PDF)
• Click here to view Proposed Terms of Reference Environmental Impact Assessment (EIA) Report (PDF)
• Click here to view Notice of Application (PDF)
• Click here to view Final Terms of Reference Environmental Impact Assessment (EIA) Report (PDF)
• Click here to view Notice of Application (March 9, 2012) (PDF)

(Note: This document’s menu may not function properly on all browsers. To avoid any potential problems, please update Adobe Acrobat to the latest version which has been tested with this PDF.)

Stony Mountain Pipeline

Laricina intends to file regulatory applications in mid-2012 for a new 24-inch, 184 kilometre blended crude bitumen pipeline and 12-inch diluent return pipeline.  This new development is called the Stony Mountain Pipeline and will be used to transport production from, and diluent to, our Saleski development in the west Athabasca oil sands region.  The Stony Mountain Pipeline will connect to the Enbridge Pipeline Inc. Cheecham Terminal, located approximately 70 kilometres south of Fort McMurray, Alberta.

As new in situ projects are developed, additional pipeline capacity is required out of the west Athabasca oil sands region. Laricina is currently operating a pilot at Saleski which has an approved 1,800-barrels-per-day capacity.  Regulatory approval for the Phase 1 – 10,700-barrels-per-day expansion at Saleski is being sought which will increase the proposed production capacity to 12,500-barrels-per-day.  Phase 1 will be the first of six expansion phases expected to increase Saleski’s production to more than 270,000-barrels-per-day over a 30-year period.

While pilot production is currently being trucked to market, the increased production from the planned expansion at Saleski will require a connection to existing pipeline infrastructure.  The Stony Mountain Pipeline will initially serve Saleski, however, it is expected that other neighbouring projects may also use the pipeline.

Pending regulatory approval, construction would start in late 2013 with right of way clearing.  Based on Laricina’s current plan, the blended crude bitumen pipeline will be completed by mid-2015 and the diluent pipeline completed a year later.

The related documents for the Stony Mountain Pipeline are available in PDF format and may be downloaded for offline viewing and printing:

Click here to view Stony Mountain Pipeline Project Description (PDF)

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