ENVIRONMENTAL MITIGATION APPROACH DEVELOPED FOR STUART PROJECT

The Stuart Oil Shale Project, undertaken jointly by Southern Pacific Petroleum and Central Pacific Minerals (SPP/CPM), and Suncor Energy, is scheduled to begin production in late 1999.

The Stuart oil shale deposit is made up of silica clay-based shale which substantially reduces processing and environmental problems and produces a clean oil relatively free from impurities such as nitrogen and sulfur.

Shale processing requires only a small amount of external energy because the heat required to release the oil is supplied by the combustion of the processed shale. Unlike other industrial processes, the process does not create tailings ponds or toxic waste. After processing, the clean, dry shale will be returned to the mine, allowing land to be returned to a condition equivalent to its natural state. Both the fresh and processed shale are inert and non-toxic, according to the project sponsors.

While the Stuart Oil Shale Project offers important economic and social benefits, it will also impact the environment, including the air, land and water. The project’s co-owners say they are addressing these impacts by taking a proactive stance toward the environment. The company plans to meet or exceed environmental regulations and standards, and look for new opportunities for improvement in environmental performance through a commitment to sustainable development and by investment in clean energy systems. Their environmental mitigation approach is summarized below:

A variety of monitoring programs have been established, in partnership with Central Queensland University and other third-party agencies, to monitor project emissions and their effects on the surrounding environment. Stringent controls have been designed to ensure the project meets or exceeds all operating requirements and emissions standards. Current modeling indicates that the project’s air emissions will be well within standards established by the Queensland Environmental Protection Policies. Emissions are expected to decline on a per-unit basis as the development progresses as a result of the co-venturers’ commitment to continual environmental performance improvement.

Once the Stuart Project reaches commercial operations in Stage 3, net greenhouse gas emissions are expected to be comparable to or less than those emitted in the production of conventional oil products.

The project’s first priority will be to reduce carbon dioxide emissions from the project through the use of energy-efficient technologies. In addition, plans are under way to develop renewable energy systems, research and development opportunities and domestic and international carbon dioxide offsets. These offsets may occur both inside and outside the owners’ operation leases and may include plantation forestry and conservation projects, emission reduction purchases and other actions that contribute to a reduction of carbon dioxide in the atmosphere.

The Stuart Project includes a comprehensive rehabilitation plan to reclaim and restore mined land. Over the past decade SPP/CPM, with the support of the local Landcare Group (an environmentally focused, government-funded community group), has proactively developed and tested a reclamation approach on a trial mine. Processed shale was backfilled into the mine along with overburden and other low-grade shale. This test site has shown that backfilling encourages effective regrowth and return of native flora and fauna, and it has exceeded expectations.

Also, because Stuart shale has a low acid-forming potential when mined, acid mine drainage is not a problem. This situation is even further enhanced in rehabilitation as the processed shale has a large neutralizing potential given that its pH is 9.5.

Due to the innovative extraction technology, which is a dry process and involves no tailings ponds, as well as heat recovery and other efficiencies, the project will be a small user of water, primarily for cooling purposes. A comprehensive water management system involving recycling and various levels of treatment will ensure safe and efficient water handling. A program is in place to monitor the project’s impact on water quality and levels. Current studies indicate that Stage 1 will have no negative impact on ground water in the area, including the Yarwun-Targinie fruit-growing region.

The Stuart deposit is located 40 kilometers from the Great Barrier Reef. Nevertheless the Great Barrier Reef is taken into account in the development process to ensure the project’s mining and processing activities will not affect this important natural resource. An Environ-mental Impact Assessment Study, completed and approved for Stage 1, indicates that oil shale mining can be undertaken in an environmentally responsible manner in a coastal region.

By working with the community, special interest groups, government, regulators and other stakeholders, the project’s owners say they intend to identify issues early in the project’s development and work toward mutually beneficial solutions. An ongoing process of public consultation is key to successful development of the Stuart Project.