News Release 28 May 1999

FOR IMMEDIATE RELEASE

EUB RELEASES GUIDELINES ON USING PRODUCED SAND IN ROAD CONSTRUCTION

Calgary, Alberta (28 May 1999) The Alberta Energy and Utilities Board (EUB) today issued an Informational Letter (IL) setting out new guidelines for the use of reservoir (produced) sands recovered from heavy oil operations in north east Alberta as a road construction material.

Significant volumes of reservoir sands are produced with heavy oil in northeast Alberta. The heavy oil industry has been investigating a range of options for the safe re-use and/or disposal of this sand. The primary contaminants of concern are chlorides (salt) and hydrocarbon (oil).

The EUB is prepared, under very restricted conditions, to allow this sand to be incorporated or encapsulated into roads during construction. The key restriction to produced sand quality is that the chloride concentration of sand encapsulated into roads must not exceed 3000 milligrams per kilogram, and the concentration of crude oil entrained in the sand may not exceed 5 per cent.

Other conditions will also apply, including strict controls limiting contaminants such as free water, benzene, or heavy metals. The heavy metals limits conform to agricultural criteria, and the guidelines for benzene and related chemicals follow criteria established for residential and parkland soils. In addition, the produced sand must not be contaminated by any sources of halogenated hydrocarbons, hazardous chemicals, refined or lube oils, drilling waste, flare pit sludge, or spill clean-up materials or any other deleterious materials. Requirements for storage and sampling of the produced sand are also set out in the IL.

If produced sand is to be used in road construction, companies must follow a defined application process that involves both the EUB and the local county or municipal district. The appropriate EUB Field Centre will issue an approval to use produced sand in road construction, if a tendered application meets all EUB requirements. The EUB notes that, because of differing native soil properties and other geographical features, not all roads are suitable for using produced sand during construction. The Board expects the local county or municipal district accepting the produced sand and the oil company which generated the material to carefully evaluate site characteristics and ensure proper practices are adhered to.

Failure by a company to comply with the requirements of the new guidelines will result in EUB enforcement actions, which may include immediate suspension of the road project and immediate implementation of corrective action. Future approvals for using produced sand in road construction may also be withheld.

These guidelines are subject to review every two years, or as necessary. The guidelines are the result of input from a multi-stakeholder task force, made up of representation from environ-mental groups, the heavy oil industry, the public, waste processors, expert consultants, Alberta Transportation and Utilities, Alberta Environmental Protection and the EUB.

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Copies of this news release and IL 99-2 Use of Produced Sand in Road Construction are available from EUB Information Services, 640-5 Avenue SW, Calgary (403 297-8190) and on the EUB website at http://www.ercb.ca

For further information please contact:

Greg Gilbertson, Senior Advisor
EUB Communications
Tel: (403) 297-3648
Fax: (403) 297-3757

MR 99-08