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Section 1 Project Introduction
Pengrowth Lindbergh SAGD Project Section 1 – Project Introduction
December 2011 Page 1-i
TABLE OF CONTENTS
Page
1 PROJECT INTRODUCTION ............................................................................................. 1
1.1 PROJECT BACKGROUND .................................................................................................. 2
1.2 PROJECT PROPONENT ..................................................................................................... 3
1.3 PROJECT OVERVIEW ....................................................................................................... 4
1.4 PROJECT REGULATORY APPROVAL PROCESS ................................................................ 4
1.4.1 Existing Approvals ................................................................................................ 4
1.4.2 Application Approvals .......................................................................................... 5
1.4.3 Additional Approvals Associated with the Application .................................... 5
1.5 APPLICATION GUIDE AND DESCRIPTION ........................................................................ 6
1.6 REGIONAL SETTING ......................................................................................................... 6
1.7 DEVELOPMENT PLAN....................................................................................................... 7
1.7.1 Development Schedule .......................................................................................... 7
1.7.2 Project Development Area ................................................................................... 7
1.8 PUBLIC CONSULTATION PROGRAM ................................................................................ 7
1.9 ENVIRONMENT HEALTH AND SAFETY PROGRAM .......................................................... 8
List of Tables
Page Table 1.0-1 Summary of Project Components ........................................................................... 1 Table 1.7-1 Project Development Schedule ............................................................................... 7
List of Figures
Figure 1.1-1 Project Location
Figure 1.1-2 Pengrowth Oil Sands Leases and Regional Development
Figure 1.1-3 Resource Development Area and Disturbance Footprint
Figure 1.1-4 Initial Project Development
Figure 1.7-1 Topography in the Resource Development Area
Pengrowth Lindbergh SAGD Project Section 1 – Project Introduction
December 2011 Page 1-1
1 PROJECT INTRODUCTION Pengrowth Energy Corporation (Pengrowth) received approval for the Lindbergh SAGD Pilot Project (Pilot Project) in July 2011 (Approval #6410H). The Pilot Project is currently under construction and is expected to commence operations in Q1 2012. Pengrowth is filing this application as an amendment of Scheme Approval #6410H to expand the capacity of the Project. The proposed Lindbergh SAGD Project (the Project) is designed for an annual average production rate of 1,987 m3/d.
The Project includes installation/modifications of the following:
three multi-well well pad locations with a total of 23 new horizontal well pairs;
construction of a new Central Processing Facility (CPF) including water recycling technology and cogeneration facilities;
connection of the well pads to the CPF with above ground pipelines, roads, and power distribution lines;
fuel gas line tied into a third party gas distribution system;
overhead power line tied into a nearby ATCO power sub-station;
connection of the pilot wells to the CPF and suspension of Pilot Plant operations;
source water pipeline from the Pilot source water pond to the CPF; and
expansion of both the Project Area and the Resource Development Area.
The various components of the Project are listed in Table 1.0-1.
Table 1.0-1 Summary of Project Components
Project Component Area (ha)
Central Processing Facility 24.1
Well Pad D02 4.0
Well Pad D03 3.8
Well Pad D04 4.7
Well Pad D05 4.3
Construction Camp 10.1
Operations Camp 3.2
Supervisor’s Camp 0.8
Camp Access 0.2
Remote Sump 1 4.7
Remote Sump 2 4.9
Borrow Pit 1 1.3
Pengrowth Lindbergh SAGD Project Section 1 – Project Introduction
December 2011 Page 1-2
Table 1.0-1 Summary of Project Components
Project Component Area (ha)
Borrow Pit 2 5.9
Borrow Pit 3 17.0
Borrow Pit 4 6.8
Soil Storage 20.8
Access/Pipe Corridor 29.9
Source Water 2.3
Pipeline Re-routing 1.1
Total 149.8
Pengrowth has actively engaged stakeholders to explain the Project and to understand their concerns. An updated summary of Stakeholder Consultation conducted to date is included as part of this application.
1.1 PROJECT BACKGROUND
In 2004, Pengrowth Corporation (Pengrowth) acquired the Lindbergh leases from Murphy Oil Company Limited (Murphy). The Pengrowth Lindbergh Field lands are located within the following mineral leases: 0727288080033, 072728808A033, 0757596090625, and 0757598120181. These mineral leases comprise approximately 8,320 hectares (ha) and are situated approximately 22 km southeast of Bonnyville, Alberta (Figures 1.1-1 and 1.1-2).
Murphy operated the field as an Enhanced Oil Recovery (EOR) project using the cyclic steam stimulation (CSS) process throughout most of the 1980’s and the early 1990’s. Pengrowth is currently upgrading the existing facilities and drilling two horizontal SAGD well pairs for a pilot-scale Steam Assisted Gravity Drainage (SAGD) performance test in the Lloydminster Formation.
Pengrowth has identified a Project Area and a Resource Development Area (RDA) for the Lindbergh SAGD Project (Figure 1.1-3). The Project Area is the larger resource area that will support all stages of development for the entire 25 year life of the project and encompasses nine sections of land. The RDA contains the bitumen resources required for the initial stages of SAGD development and includes five sections of land. The Project Area and RDA are shown on Figure 1.1-3 and are as follows:
Project Area:
Sections 30 and 31, Township 58, Range 4, W4M; and Sections 12, 13, E ½ 14, 23, 24, 25, E ½ 26 and 36, Township 58, Range 5, W4M.
Pengrowth Lindbergh SAGD Project Section 1 – Project Introduction
December 2011 Page 1-3
Resource Development Area:
Sections 13, E ½ 14, 23, 24, 25 and E ½ 26, Township 58, Range 5, W4M.
Pengrowth has identified the location and trajectories of the first four well pads with up to 31 horizontal well pairs (Figure 1.1-4). The initial development will utilize three of these pad locations with the fourth pad as a contingent. Data from the ongoing delineation drilling program will be used to verify the initial three well pad selections and to locate future pads within the RDA.
1.2 PROJECT PROPONENT
Pengrowth is a publically traded Canadian oil and gas exploration and production company based in Calgary, Alberta. Pengrowth operates numerous oil and gas properties that span the Western Canadian Sedimentary Basin in Alberta, British Columbia, and Saskatchewan, with production exceeding 70,000 barrels of oil equivalent per day (boed).
Pengrowth's property portfolio contains some of the highest quality assets in Canada's energy sector with an average reserve life index of approximately ten years on a proved plus probable basis. Pengrowth's strong suite of conventional assets (approximately 50% natural gas and 50% crude liquids) is balanced by an expanding inventory of unconventional resources including coalbed methane and oilsands interests.
Pengrowth owns a 100% working interest in the 8,320 ha of oilsands mineral leases in the Lindbergh field.
The name and address of the applicant for the Project is:
Pengrowth Energy Corporation
2100, 222 3rd Avenue SW
Calgary, Alberta T2P 0B2
Correspondence concerning this application should be directed to the above address to the attention of:
Steve De Maio, Vice President, In Situ Oil Development and Operations
Phone: (403) 233-0224
Fax: (403) 265-6251
Email: Lindbergh@Pengrowth.com
Pengrowth Lindbergh SAGD Project Section 1 – Project Introduction
December 2011 Page 1-4
1.3 PROJECT OVERVIEW
The planned facilities Pengrowth is proposing for the Lindbergh SAGD Project include a number of wells pads and associated infrastructure such as well pairs, roads, above ground gathering and distribution systems, power lines, and a Central Processing Facility (CPF). In addition, existing infrastructure such as the North Saskatchewan River intake, pump station, source water pond at the pilot plant, and pipeline will utilized for the SAGD Project. A raw water pipeline from the source water pond to the CPF will be installed and buried. Dual buried water disposal pipelines from the CPF to the existing water disposal well infrastructure will also be installed. A gas pipeline will be tied into a third party gas distribution system and an overhead power line will be installed from the nearest sub-station to the CPF. A cogeneration unit will be constructed as part of the CPF to provide power for local use in the plant and wells.
Raw water and produced water are treated at the CPF and re-used to generate steam which is sent to each of the well pads via above ground pipelines for injection into the individual well pairs. Produced fluids (bitumen, water, gas) are transported from the well pads to the CPF via above ground pipelines. The bitumen, water and gas are separated at the CPF. The produced gas is burned in the steam generators, the bitumen is blended and trucked to a marketing point, and the water is recycled.
The Lindbergh SAGD Project will produce a maximum annualized bitumen rate of 1,987 m3/d (12,500 bpd) over an expected project life of 25 years. During the life of the Project there will be 60 to 65 well pairs drilled from approximately eight to nine well pads. This Project is expected to produce approximately 17.0 MMm3 (107 MMbbls) of bitumen. The cumulative steam to oil ratio (CSOR) for the Project is expected to be 3.62.
1.4 PROJECT REGULATORY APPROVAL PROCESS
1.4.1 EXISTING APPROVALS
The Lindbergh SAGD Pilot Project is currently operating under:
ERCB Approval No. 6410H;
EPEA Approval No. 1581-02-00;
Water Act Approval No. 29768-00-00, as amended; and
ERCB Water Disposal No. 4312 and 5565.
Copies of these approvals are provided in Appendix 1.
Pengrowth Lindbergh SAGD Project Section 1 – Project Introduction
December 2011 Page 1-5
1.4.2 APPLICATION APPROVALS
The approval application package submitted hereby is for the amendment of ERCB Approval No. 6410H in accordance with ERCB Directive 023 requirements. Pengrowth is also applying for an amendment of EPEA Approval No. 1581-02-00.
ERCB Approval
approval to construct and operate the Project pursuant to Sections 10 and 11 of the Oil Sands Conservation Act and Sections 3 and 33 of the Oil Sands Conservation Regulation; and
approval to construct and operate a distribution and gathering pipeline system within the Project development area pursuant to Part 4 of the Pipeline Act.
AENV Approval
approval, pursuant to Part 2, Division 2 and Section 66 of the Alberta Environmental Protection and Enhancement Act, to construct and operate the Project including facilities to recover and treat bitumen and processed water;
approval, pursuant to Part 2, Division 2 and Section 66 of the Alberta Environmental Protection and Enhancement Act, to construct and operate the cogeneration facility; and
conservation and reclamation approval, as required under the Conservation and Reclamation Regulations, to develop, operate and reclaim the central processing facility of the Project.
1.4.3 ADDITIONAL APPROVALS ASSOCIATED WITH THE APPLICATION
Pengrowth will file separate applications for those parts of the Project that are legislated under various other statutes. Provincial application and approval requirements applicable to the Project which will be submitted under separate cover are:
surface rights requirements pursuant to the Public Lands Act (i.e., access road, natural gas pipeline, water pipeline);
site surface disturbance clearance pursuant to the Historical Resources Act;
production and injection well drilling licenses issued pursuant to the Oil and Gas Conservation Act;
installation of a natural gas pipeline from third party facility to the CPF, pursuant to the Pipeline Act;
Development Permits pursuant to the Municipal Government Act, from the County of St. Paul for construction and operation of the Project and related infrastructure;
Pengrowth Lindbergh SAGD Project Section 1 – Project Introduction
December 2011 Page 1-6
cogeneration facility approval as per Part 2 Section 11 of the Hydro and Electric Energy Act to be filed with the Alberta Utilities Commission; and
electrical power interconnections issued pursuant to the Electrical Utilities Act.
1.5 APPLICATION GUIDE AND DESCRIPTION
This application for the Project is found in one volume consisting of the following components:
Section 1 – Project Introduction
Section 2 – Project Description
Section 3 – Stakeholder Consultation
Section 4 – Environmental Setting
Section 5 – Conceptual Conservation and Reclamation Plan
Appendix 1 – Existing Approvals
Appendix 2 – Caprock Analysis
Appendix 3 – Consultation
Appendix 4 – Air Quality Assessment
Appendix 5 – Noise Assessment
Appendix 6 – References
Appendix 7 – Project Team
Appendix 8 – Acronyms and Glossary
1.6 REGIONAL SETTING
The Project is located approximately 22 km southeast of Bonnyville, Alberta, approximately 18 km north of Lindbergh, and approximately 19 km east of the town of Elk Point in the County of St. Paul in the eastern-central region of Alberta.
The Project is situated within the Alberta Plains region and the North Saskatchewan River drainage basin. This area is characterized by relatively high relief, ridged to hummocky and rolling terrain. An aerial photograph and topography of the Project Area is presented in Figure 1.7-1. The Project is located on Crown land with both anthropogenic and natural cover. Land surrounding the Project Area is used primarily for cattle grazing, although some hay cropping is also practiced. There are several oilfield producers and industrial service providers in the immediate vicinity of the site. The Project is located in a sparsely populated rural area southwest of Muriel Lake and northwest of Garnier Lake.
Pengrowth Lindbergh SAGD Project Section 1 – Project Introduction
December 2011 Page 1-7
1.7 DEVELOPMENT PLAN
1.7.1 DEVELOPMENT SCHEDULE
Table 1.7-1 shows a development schedule for the Project.
Table 1.7-1 Project Development Schedule
Activity 2011 2012 2013 2014
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Project Viability Assessment
Baseline Environmental Assessment
Engineering Support
Regulatory Submission
Regulatory Review
Regulatory Approval
Construction and Drilling
Commissioning and Initial Circulation
Conversion to Production
1.7.2 PROJECT DEVELOPMENT AREA
The Project development area is presented in Figure 1.1-3.
1.8 PUBLIC CONSULTATION PROGRAM
Pengrowth has had an ongoing dialogue with local stakeholders since 2010 regarding the environmental and social aspects of SAGD development in the Lindbergh Area. Specific discussion on the Project began in January of 2011.
Stakeholder groups consulted to date for the Project have included regulatory review agencies, persons or companies having interests in the land on or near the Project, Aboriginal communities and First Nations, regional and municipal governments, regional service providers, and special interest groups. During the Project’s planning stages, opportunities are provided for questions and concerns to be raised by stakeholders so that they can be addressed in a constructive manner. Resolution of issues has been incorporated, where possible, into the Project’s development plans. Following project approval, Pengrowth will continue to work in an open and inclusive manner with all communities and stakeholders impacted by its operations.
Pengrowth Lindbergh SAGD Project Section 1 – Project Introduction
December 2011 Page 1-8
Details of Pengrowth’s public consultation activities for the Project are provided in Section 3.0.
1.9 ENVIRONMENT HEALTH AND SAFETY PROGRAM
Pengrowth will provide responsible management for the Project by ensuring that health, safety, and environmental policies and procedures are established and implemented. Pengrowth has a formal documented corporate EH&S Program, which will be enhanced to incorporate a site specific program for the Project. All Pengrowth employees are trained and familiar with all company policies and procedures. Pengrowth employees, contractors and consultants will receive proper instructions on Pengrowth standards and procedures through on-site training programs in accordance with OH&S guidelines and requirements. By following this approach, the Project will be developed and operated in a safe, professional and responsible manner.
Details of Pengrowth’s environment, health and safety program are provided in Section 2.9.
Pengrowth Lindbergh SAGD Project Section 1 – Project Introduction
December 2011
FIGURES
LindberghProject Area
Cold LakeI.R. 149B
Cold LakeI.R. 149
Moose LakeProv. Park
River IntakeStation
10-23-056-05 W4M
Beaver R iver
Muriel Creek
Sand River
Nor
th
Saskatchewan Ri ver
FrogLake
ColdLake
MurielLake
MooseLake
SinkingLake
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28
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28
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��892
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Holyoke
Ardmore
Glendon
La Corey
Elk Point
Cold Lake
Beaverdam
Fort Kent
Bonnyville
Grand Centre
Happy Hollow
Northern Valley
St. Paul
Therian
St. Vincent
Lindbergh
R 2 W4M
T62
T61
T59
T60
T58
T57
T56
T63
R 4R 5 R 3R 6R 7
T64
R8
Whitney LakesProv. Park
KehewinI.R. 123
UnipouheosI.R. 121
PuskiakiweninI.R. 122
I
REF: Geobase, 2010.
0 8 164
Kilometres
Legend
Project Area
Water Pipeline
1.1-1
PS/SL
KK
Oct 20/11
11-032
Project Location
Lindbergh SAGD Project
PROJECT:
DATE:
CHECKED:
DRAWN: FIGURE:
PROJECT:
TITLE:
MapArea
Fort McMurray
Calgary
Edmonton
GarnierLake
BulletLake
R 5 R 4 W4M
R 5 R 4 W4M
MichelLake
T 59
T 58
T 58
T 57
Muriel Lake
CPF
BorrowPit 3
Borrow Pit 4
ConstructionCamp
Borrow Pit 2
Well Pad D04
Well Pad D05
Well Pad D02
Well Pad D03
Remote Sump 2
Remote Sump 1
Operations Camp
Borrow Pit 1
Supervisor's Camp
63
5
8 8
4
4 41
3
9
64
5
9
2
9
5 2 1
87
97
29
24
34
16
30
32
28 28
20 19
15
17
22
18
13
25
32
2121 23
14
14
27
13
10
17
20
1210
31363533
26
15
1211
16
11
18 16
33
29
17 16
1.1-2
PS
KK
Dec 15/11
11-032
Pengrowth Oil Sands Leasesand Regional Development
Lindbergh SAGD Project
PROJECT:
DATE:
CHECKED:
DRAWN: FIGURE:
PROJECT:
TITLE:
REF: EPEA -Footprint-REV 5.dwg, Oct. 27, 2011; NHC (hydrology), 2011;Global Oilfield Surveys Inc., 10-0500M01.dwg.
I
0 1 2 km
Legend
Pengrowth Leases
Project Area
Resource Development Area
Surface Dispositions
GarnierLake
R 5 R 4 W4M
T 58
D01D01
CPF
BorrowPit 3
Well Pad D03
Well Pad D02
Well Pad D04
BorrowPit 4
RemoteSump 2
Remote Sump 1
ConstructionCamp
OperationsCamp
Well Pad D05
BorrowPit 2
Borrow Pit 1Supervisor's
Camp
7
24
34
30
1922
18
25
23
14
27
13
10
313635
26
15
1211
1.1-3
SL
KK
Nov 28/11
11-032
Resource Development Area andDisturbance Footprint
Lindbergh SAGD Project
PROJECT:
DATE:
CHECKED:
DRAWN: FIGURE:
PROJECT:
TITLE:
Legend
Project Area
Resource Development Area
Pilot Footprint
Streams with Defined Channels
Drainages without Defined Channels
Waterbody
Proposed Footprint
CPF
Well Pad
Construction Camp
Operations Camp
Supervisor's Camp & Access
Remote Sump
Borrow Pit
Soil Storage
Access/Pipe Corridor
Source Water
Pipeline Re-routing
REF: EPEA -Footprint-REV 5.dwg, Oct. 27, 2011; NHC (hydrology), 2011.
I
0 0.7 1.4 km
1:35,000Scale
Facility Count Hectares
CPF 1 24.1
Well Pad 1 1 4.0
Well Pad 2 1 3.8
Well Pad 3 1 4.7
Well Pad 4 1 4.3
Construction Camp 1 10.1
Operations Camp 1 3.2
Supervisor's Camp 1 0.8
Camp Access 1 0.2
Remote Sump 1 1 4.7
Remote Sump 2 1 4.9
Borrow Pit 1 1 1.3
Borrow Pit 2 1 5.9
Borrow Pit 3 1 17.0
Borrow Pit 4 1 6.8
Soil Storage 9 20.8
Access/Pipe Corridor 1 29.9
Source Water 3 2.3
Pipeline Re-routing 2 1.1
Total: 30 149.8
D02
D03
D04
D05
GarnierLake
R 5 R 4 W4M
T 58
CPF
BorrowPit 3
Well Pad D03
Well Pad D02
Well Pad D04
BorrowPit 4
RemoteSump 2
Remote Sump 1
ConstructionCamp
OperationsCamp
Well Pad D05
BorrowPit 2
Borrow Pit 1Supervisor's
Camp
7
24
34
30
1922
18
25
23
14
27
13
10
313635
26
15
1211
1.1-4
SL
KK
Dec 15/11
11-032
Initial Project Development
Lindbergh SAGD Project
PROJECT:
DATE:
CHECKED:
DRAWN: FIGURE:
PROJECT:
TITLE:
Legend
Project Area
Resource Development Area
Pilot Footprint
Streams with Defined Channels
Drainages without Defined Channels
Waterbody
Proposed Footprint
CPF
Well Pad
Construction Camp
Operations Camp
Supervisor's Camp & Access
Remote Sump
Borrow Pit
Soil Storage
Access/Pipe Corridor
Source Water
Pipeline Re-routing
Trajectory
REF: EPEA -Footprint-REV 5.dwg, Oct. 27, 2011; NHC (hydrology), 2011.
I
0 0.7 1.4 km
1:35,000Scale
Facility Count Hectares
CPF 1 24.1
Well Pad 1 1 4.0
Well Pad 2 1 3.8
Well Pad 3 1 4.7
Well Pad 4 1 4.3
Construction Camp 1 10.1
Operations Camp 1 3.2
Supervisor's Camp 1 0.8
Camp Access 1 0.2
Remote Sump 1 1 4.7
Remote Sump 2 1 4.9
Borrow Pit 1 1 1.3
Borrow Pit 2 1 5.9
Borrow Pit 3 1 17.0
Borrow Pit 4 1 6.8
Soil Storage 9 20.8
Access/Pipe Corridor 1 29.9
Source Water 3 2.3
Pipeline Re-routing 2 1.1
Total: 30 149.8
D02
D03
D04
D05
65
5
66
0
650
665
645
635
62
0
640
630
625
61
56
05
61
0
670
675
680
685
69
0
695
60
0
700
59
5
590
705
710
655
600
645
680
665
670
665
605
670
665
60
5
670
645
655
675
600
660
650
705
65
5
675
670
610
695
665
655
65
5
690
605
660
680
605
61
0
600
600
605
660
690
670
695
650
650
610
700
66
0
660
670
655
665
680
66
5
60
5705
670
660
655
670
64
5
6856
50
665
67
0
65
5
610
645
655
645
660
660
690
665
67
0
645
655
665
660
660
665
66
0
660
655
675
66
5
60
5
660
685
65
0
610
685
675
645
66
0
690
660
660
665
665
660
665
665
600
645
650
695
695
640
670
600
610
645
600
595
645
665
660
655
680
660
660
24
25
23
14 13
26
1.7-1
SL
KK
Nov 28/11
11-032
Topography in ResourceDevelopment Area
Lindbergh SAGD Project
PROJECT:
DATE:
CHECKED:
DRAWN: FIGURE:
PROJECT:
TITLE:
Legend
Project Area
Resource Development Area
Pilot Footprint
Contour (5m interval)
Streams with Defined Channels
Drainages without Defined Channels
Waterbody
Proposed Footprint
CPF
Well Pad
Construction Camp
Operations Camp
Supervisor's Camp & Access
Remote Sump
Borrow Pit
Soil Storage
Access/Pipe Corridor
Source Water
Pipeline Re-routing
REF: EPEA -Footprint-REV 5.dwg, Oct. 27, 2011; NHC (hydrology), 2011.
I
0 0.5 1 km
1:22,000Scale
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