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News Release

FOR IMMEDIATE RELEASE     

EUB DENIES SHELL CANADA SOUR GAS APPLICATIONS NEAR BEAVER MINES

Calgary, Alberta (December 16, 2008) The Alberta Energy and Utilities Board (EUB) has issued Decision 2008-127, which denies four applications from Shell Canada Ltd. to construct and operate a sour gas well, two pipelines, a single well gas battery and to amend an existing licence to add a compressor. The proposed well would have been about 5.8 km southwest of the community of Beaver Mines, which lies about 20 km west of Pincher Creek. The applications were the subject of a hearing held from September 18 to October 5, 2007, in Pincher Creek.

On November 19, 2007, a sour gas pipeline licensed to Shell sustained an uncontrolled release about 3.2 km from the closest portions of the proposed project. Several residents in the area were evacuated as a result of the release, and others were required to shelter in their homes. Following an investigation into the incident, the ERCB released a report on October 7, 2008, which identified a number of technical issues which may have relevance to the proposed pipelines in the applications. The EUB ruled that sufficient details have not been provided on how Shell will operate and monitor the proposed pipelines to ensure their integrity over the long term.

The EUB also concludes that further information needs to be provided by Shell to have its applications considered, especially in light of changes over the last year to the Board and its requirements: specifically, the transition of the EUB to the Energy Resources Conservation Board (ERCB), plus changes to ERCB Directive 56: Energy Development Applications and Schedules, which contains new sour gas planning and proliferation guidelines, and Directive 71: Emergency Preparedness and Response Requirements for the Petroleum Industry, which contains new ERCB modeling and Emergency Response Planning requirements.

Given these factors, plus the passage of time since the completion of the hearing in 2007, the EUB denies the applications, ruling that any further consideration of the proposed development be brought through new applications to the ERCB, should Shell choose to do so. 

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Decision 2008-127 can be found at www.ercb.ca

For more information, please contact:
Davis Sheremata, ERCB Communications
Ph: 403-297-2252         
Email: davis.sheremata@ercb.ca

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