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APACHE ZAMA BATTERY 12
ENHANCED OIL RECOVERY PROJECT
Greenhouse Gas Emissions Reduction
Offset Project Report
For the Period January 1, 2012 – December 31, 2012
Version 3.0
23 February, 2013
Prepared by: Blue Source Canada ULC (Authorized Project Contact) Suite 700, 717-7
List of Tables ................................................................................................................................................. 2
List of Figures ................................................................................................................................................ 2
List of Abbreviations ..................................................................................................................................... 3
1 PROJECT SCOPE AND PROJECT DESCRIPTION ....................................................................................... 4
2 PROJECT CONTACT INFORMATION ....................................................................................................... 6
3 PROJECT DESCRIPTION AND LOCATION ................................................................................................ 7
4 PROJECT IMPLEMENTATION AND VARIANCES ..................................................................................... 8
5 REPORTING PERIOD ............................................................................................................................ 10
6 GREENHOUSE GAS CALCULATIONS ..................................................................................................... 10
7 GREENHOUSE GAS ASSERTION ........................................................................................................... 17
APPENDIX A – CONFIRMATION OF CREDITING EXTENSION APPROVAL ..................................................... 23
List of Tables TABLE 1 - EMISSION FACTORS USED FOR THE PROJECT .............................................................................................. 16
TABLE 2 - OFFSET TONNES CREATED BY VINTAGE YEAR AND GHG ............................................................................. 17
List of Figures FIGURE 1 - LOCATION OF ZAMA EOR PROJECT.............................................................................................................. 7
FIGURE 2 - CREDITS CREATED BY PROJECT, BY VINTAGE YEAR ................................................................................... 18
FIGURE 3 - RELATIONSHIP BETWEEN ACID GAS INJECTION VOLUMES AND OCS CREATED ........................................ 19
1 PROJECT SCOPE AND PROJECT DESCRIPTION The project title is: Apache Zama Battery 12 Enhanced Oil Recovery Project
The project’s purpose(s) and objective(s) are:
The opportunity for generating carbon offsets with this project arises from the direct and indirect reductions of greenhouse gas (GHG) emissions resulting from the geological storage of carbon dioxide contained in acid gas as part of an enhanced oil recovery (EOR) scheme.
Date when the project began:
Initiation of the commercial injection of acid gas for EOR was December 1, 2004.
Expected lifetime of the project:
It is anticipated that this EOR project will continue until it becomes economically unviable for oil production in the field.
Credit start date: The credit start date was December 1, 2004.
Credit duration period: The initial project credit duration is for 8 years starting December 1, 2004 and ending November 30, 2012. Alberta Environment and Sustainable Resource Development has granted, in a letter dated February 12, 2013 (see Appendix A), a 5 year Crediting Extension Period, to run from December 1, 2012 – November 30, 2017.
Reporting period: January 1, 2012 – December 31, 2012
Actual emissions reductions:
Previously registered and calculated project emission reductions from this project are, per vintage year, shown below in tonnes CO2e: 2004: 17,150, of which December 1 – December 20, 2004: 11,065* December 21 – December 31, 2004: 6,085* 2005: 203,923 2006: 157,951 2007: 88,077 2008: 79,589 2009: 61,409 2010: 41,811 2011: 16,145 2012: 3,776
Total – 669,831 tonnes CO2e *Note that there were 20 days at the beginning of the project period where the project was licensed as an acid has injection (AGI) rather than an EOR project. Although the project was still avoiding GHG emissions via the geological sequestration of carbon dioxide, no oil was being recovered. The appropriate protocol for this period was the AGI protocol, which was used in the calculations. This use of two protocols for one project was discussed with and approved by Alberta Environment.
Applicable Quantification Protocol(s):
The quantification protocol used is for this reporting period is the Quantification Protocol for Enhanced Oil Recovery – Streamlined (v1, October 2007) as published by Alberta Environment.
Protocol(s) Justification: The project is an enhanced oil recovery (EOR) project in northwest Alberta, therefore the use of the EOR protocol for the project is appropriate. Prior to EOR, carbon dioxide contained in acid gas associated with the produced gas
was processed through sulphur recovery and incineration and the formation CO2 was vented to the atmosphere. Note that there were 20 days at the beginning of the project period where the project was licensed as an acid has injection (AGI) rather than an EOR project. Although the project was still avoiding GHG emissions via the geological sequestration of carbon dioxide, no oil was being recovered. The appropriate protocol for this period was the AGI protocol, which has been used in the calculations. This use of two protocols for one project has been discussed with and approved by Alberta Environment.
Other Environmental Attributes:
There are no other environmental attributes (e.g. RECs, etc) being claimed by this project.
Legal land description of the project or the unique latitude and longitude:
The project is located in Alberta. The nearest settlement is Zama City. EOR is ongoing in multiple pools within the oil reservoir, but the recovered oil flows to the oil battery (00/14-12-116-6W6), therefore the battery location is used for this project. Latitude: 59° 03' 57" N Longitude : 118° 52' 16" W
Ownership: Apache Canada Ltd. is the sole owner of the assets and project in the Zama oil field.
Reporting details: This project has already claimed historic credits from December 1, 2004 – December 31, 2011. As outlined in the OPP, this report covers the remainder of the initial crediting period (i.e. January 1, 2012 – November 30, 2012) as well as the first month of the crediting period extension (December, 2012). It is anticipated that subsequent reporting will occur annually.
Verification details: The verifier, RWDI Air Inc, is an independent third-party that meets the requirements outlined in the Specified Gas Emitters Regulation (SGER). An acceptable verification standard (e.g. ISO14064-3) has been used and the verifier has been vetted to ensure technical competence with this project type. This is the 2nd consecutive verification carried out by the verifier for this project.
Project activity: This project meets the requirements for offset eligibility as outlined in section 3.1. Of the Technical Guidance for Offset Project Developers (version 3.0, February 2012). In particular: 1. The project occurs in AB: as outlined above;
2. The project results from actions not otherwise required by law and
beyond business as usual and sector common practices: Offsets being claimed under this project originate from a voluntary action. The project activity (i.e. enhanced oil recovery) occurs at a non-regulated facility and is not required by law. The protocol uses a government approved quantification protocol, which indicates that the activity is undertaken by less than 40% of the industry and is therefore not considered to be
sector common practice; 3. The project results from actions taken on or after January 1, 2002: as
outlined above; 4. The project reductions/removals are real, demonstrable, quantifiable
and verifiable: the project is creating real reductions that are not a result of shutdown, cessation of activity or drop in production levels. The emission reductions are demonstrable, quantifiable and verifiable as outlined in the remainder of this plan.
5. The project has clearly established ownership: Apache Canada Ltd is the
owner and operator of the Zama Battery 12 facility and EOR scheme. Credits created from the specified reduction activity have not been created, recorded or registered in more than one trading registry for the same time period.
6. The project will be counted once for compliance purposes: The project credits will be registered with the Alberta Emissions Offset Registry (AEOR) which tracks the creation, sale and retirement of credits. Credits created from the specified reduction activity have not been, and will not be, created, recorded or registered in more than one trading registry for the same time period.
2 PROJECT CONTACT INFORMATION Project Developer Contact Information