PALAEONTOLOGICAL HISTORICAL RESOURCE OVERVIEW ... - …...Suncor’s current oil sands operations...

PALAEONTOLOGICAL HISTORICAL RESOURCE OVERVIEW FOR THE

SUNCOR VOYAGEUR SOUTH PROJECT

Prepared For: Suncor Energy Inc.

Prepared By:

Alberta Palaeo - Resources Ltd.

Royal Tyrrell Museum of Palaeontology Project File No. 3948-74D-13

May 2007 05-1344-021

- i - Palaeontological Historical Resource Overview

May 2007

EXECUTIVE SUMMARY

Suncor Energy Inc. (Suncor) is planning an expansion of its integrated oil sands mining and bitumen extraction operations near Fort McMurray, Alberta. The proposed expansion project, named Voyageur South, will be located north of Fort McMurray on the west side of Highway 63 (about 3 km southwest of Suncor’s existing oil sands operations, and directly south of the Voyageur Upgrader that is currently under construction). Pending regulatory approval, Suncor plans to initiate construction of fixed plants and infrastructure in 2009 and commence production from Voyageur South in 2011. Current plans call for incremental production of 120,000 barrels per day (bpd) of bitumen over an approximate 40-year operational life of the project.

The Environmental Impact Assessment (EIA) specific to the Voyageur South Project has been underway in parallel with engineering studies since mid-2005. Environmental Setting Reports (ESR) have been developed as part of the EIA to provide the study area consideration of potential effects of the project. Potential effects of the Voyageur South Project were assessed with consideration of Local and Regional Study Areas.

This palaeontological Historical Resource Overview (pHRO) complements and extends information collected for Suncor’s Steepbank Mine Project (Suncor 1996), Project Millennium (Suncor 1998), South Tailings Pond Project (Suncor 2003) and the Voyageur Project (Suncor 2005). New data collected for the Voyageur South Project coupled with the existing information on Suncor project areas, other regional information and the Voyageur South Project design provide the data required to prepare the EIA for this project.

This pHRO has been prepared for the proposed Suncor Voyageur South Project, located within the Regional Municipality of Wood Buffalo (RMWB), Northeast Region, Alberta (Figure 1). All formations of interest within the project area are fossiliferous. However, the primary concern is the potential disturbance of fossil material during the removal of the Wabiskaw Member of the Clearwater Formation bedrock, considered as overburden waste during mining operations. The Wabiskaw is known for its significant marine vertebrate fauna such as plesiosaurs and ichthyosaurs, and invertebrates such as ammonites. Geologic studies conducted by Marston Canada indicate an average Wabiskaw thickness of 3.1 m throughout the Voyageur South Project Development Area, which is approximately 19,546 ha. The other fossil-bearing intervals in the area are the Givetian Waterways Formation (invertebrates), the Aptian McMurray Formation (Ornothischian dinosaur bone and invertebrates), which lie beneath the Wabiskaw, and the Quaternary (mammals), which overlie the Wabiskaw and is also considered as overburden waste.

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- ii - Palaeontological Historical Resource Overview

May 2007

EXECUTIVE SUMMARY

Due to the possibility of encountering significant marine reptile fossil material during excavation, a mitigative procedure is recommended that is intended to be non to minimally disruptive to operations yet ensure the Operator’s compliance with the Alberta Historical Resources Act.

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Suncor Energy Inc. - iii - Palaeontological Voyageur South Project Historical Resource Overview May 2007

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TABLE OF CONTENTS

SECTION PAGE

1 INTRODUCTION......................................................................................................... 1 1.1 BACKGROUND...............................................................................................................1 1.2 STUDY AREA..................................................................................................................3 1.3 STUDY OBJECTIVES .....................................................................................................8 1.4 SCOPE ............................................................................................................................8

2 GEOLOGY .................................................................................................................. 9

3 PALAEONTOLOGY .................................................................................................. 13

4 DISCUSSION AND RECOMMENDATIONS............................................................. 16

5 CLOSURE................................................................................................................. 17

6 GLOSSARY OF TERMS AND LIST OF ACRONYMS AND ABBREVIATIONS ....... 18 6.1 GLOSSARY OF TERMS ...............................................................................................18 6.2 ACRONYMS AND ABBREVIATIONS ...........................................................................19

7 REFERENCES.......................................................................................................... 20

LIST OF FIGURES

Figure 1 Project Location Map Showing Location of Existing, Approved and Planned Oil Sands Developments ...........................................................................4

Figure 2 Terrestrial Study Area and Mine Plan......................................................................5 Figure 3 Topographical Map ..................................................................................................6 Figure 4 Orthophoto ...............................................................................................................7 Figure 5 Stratigraphic Column .............................................................................................10 Figure 6 Overburden Isopach and Drill Hole Location Map.................................................11 Figure 7 Geological Map of the Project Development Area.................................................12 Figure 8 A Relatively Complete Plesiosaur (Leptocleidus) Specimen Recovered at

the Syncrude Operation.........................................................................................14 Figure 9 An Ammonite Recovered by Suncor Personnel ....................................................15

Suncor Energy Inc. -1- Palaeontological Voyageur South Project Historical Resource Overview May 2007

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1 INTRODUCTION

1.1 BACKGROUND

Suncor Energy Inc. (Suncor) is planning an expansion of its integrated oil sands mining and bitumen extraction operations near Fort McMurray, Alberta. The proposed expansion project, named Voyageur South, will be located north of Fort McMurray on the west side of Highway 63 (about 3 km southwest of Suncor’s existing oil sands operations, and directly south of the Voyageur Upgrader that is currently under construction).

Pending regulatory approval, Suncor plans to initiate construction of fixed plants and infrastructure in 2009 and commence production from Voyageur South in 2011. Current plans call for incremental production of 120,000 barrels per day (bpd) of bitumen over an approximate 40-year operational life of the project.

The proposed project supports efficient and systematic development of known resources, maximizing value from existing assets and leveraging plans for existing and already-announced infrastructure, equipment and facilities. In addition to expanded mining operations, the Voyageur South Project includes dedicated ore preparation, bitumen extraction and cleaning facilities, reclamation and tailings storage areas, related pipelines and roads, maintenance and administrative buildings, and associated infrastructure. The project utilities (in particular, those involving water and heat energy), are planned to be integrated with Suncor’s currently existing and already announced facilities.

New technology to be incorporated into the Voyageur South operations is expected to mitigate the environmental and social impacts of development and help improve operational performance. There are several environmental benefits expected to be generated through the planned use of new technologies and processes and by integrating the Voyageur South Project with Suncor’s existing operations, including:

• Introduction of mobile ore-preparation technology, which should eliminate a substantial portion of the mine-haul trucking fleet for transporting oil sands ore, is expected to reduce noise and air emissions, in particular nitrogen oxides (NOx), as compared to truck and shovel mining methods.

• Integration of electric power utilities and heat systems with existing Suncor operations is expected to reduce greenhouse gas emissions associated with the project’s primary extraction facility compared to a stand-alone system.


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• Potential new primary extraction technology, if available, is expected to reduce energy consumption and related air emissions per barrel of production.

• Continued use and further enhancement of Consolidated Tailings Technology is expected to help reduce the large fluid volumes stored in tailings ponds. In addition, Suncor is conducting a large-scale test of new tailings technology that could further improve fine tailings management, leading to earlier reclamation and more efficient water use.

• Planned management of water impacts will include a fish habitat “no net loss” compensation plan providing equivalent habitat to be created or protected elsewhere, preferably in the region, to offset watershed disturbance.

Suncor will use a truck and shovel mining equipment to excavate overburden. This material will be used to construct an external tailings area and in-pit dykes, or placed in adjacent waste areas. Soils salvaged for reclamation will be stockpiled for later use or placed directly on reclamation areas as they become available.

The Voyageur South Project will use water recovered from runoff from the development area as well as waters from the existing operation. Suncor will not be applying to increase its direct withdrawal from the Athabasca River.

The Environmental Impact Assessment (EIA) specific to the Voyageur South Project has been underway in parallel with engineering studies since mid-2005. Environmental Setting Reports (ESR) have been developed as part of the EIA to provide the study area consideration of potential effects of the project. Potential effects of the Voyageur South Project were assessed with consideration of Local and Regional Study Areas.

This palaeontological Historical Resource Overview (pHRO) complements and extends information collected for Suncor’s Steepbank Mine Project (Suncor 1996), Project Millennium (Suncor 1998), South Tailings Pond Project (Suncor 2003) and the Voyageur Project (Suncor 2005). New data collected for the Voyageur South Project coupled with the existing information on Suncor project areas, other regional information and the Voyageur South Project design provide the data required to prepare the EIA for this project.

This pHRO has been prepared for the proposed Suncor Voyageur South Project, located within the Regional Municipality of Wood Buffalo (RMWB), Northeast Region, Alberta (Figure 1). All formations of interest within the project area are


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fossiliferous. However, the primary concern is the potential disturbance of fossil material during the removal of the Wabiskaw Member of the Clearwater Formation bedrock, considered as overburden waste during mining operations. The Wabiskaw is known for its significant marine vertebrate fauna such as plesiosaurs and ichthyosaurs, and invertebrates such as ammonites. Geologic studies conducted by Marston Canada indicate an average Wabiskaw thickness of 3.1 m throughout the Voyageur South Project Development Area, which is approximately 19,546 ha. The other fossil-bearing intervals in the area are the Givetian Waterways Formation (invertebrates), and Aptian McMurray Formation (Ornothischian dinosaur bone and invertebrates), which lie beneath the Wabiskaw, and the Quaternary (mammals), which overlie the Wabiskaw and is also considered as overburden waste.

1.2 STUDY AREA

The outline of the Voyageur South development footprint, including the mine pit, the external tailings pond and overburden waste areas is shown in Figure 2. The topography and surface cover are shown in Figures 3 and 4. The proposed development is located west of Highway 63 and south of the Voyageur Upgrader that is under construction. The majority of the Voyageur South 19,546 ha disturbance footprint is on Suncor Lease No. 7280060T23 (Lease 23) with portions on Suncor Fee Lot 2 and Permits 0930 and 0391. The mine is bordered to the north by Syncrude Lease 17 and to the northeast by Suncor Fee Lot 2. The mine pit is bordered on the south by the recently acquired Permit 0839.


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Suncor’s current oil sands operations are located on Leases 86/17 on the west side of the Athabasca River, and on Leases 97 and 25 on the east side of the river. Oil sands resources on Lease 86/17 have been depleted with all current Suncor mining activity located on the east side of the river at the Steepbank and Millennium mines. The recently approved North Steepbank Extension is a northward continuation of the operating Steepbank Mine.

1.3 STUDY OBJECTIVES

The objectives of the pHRO are to:

• summarize the regional historical geology and palaeontology and relationships to the proposed project;

• assess the potential for the disturbance of potentially fossiliferous Wabiskaw (Lower Clearwater) and other bedrock during the mining process; and

• offer recommendations acceptable to Industry and to Alberta’s Heritage Resource Management Branch (HRMB) with regard to the mitigation of mining operations to ensure Historical Resource Act compliance.

1.4 SCOPE

The scope of the pHRO considered the following:

• Due to the substantial subsurface control (currently 576 drill holes) within the proposed mine disturbance footprint, it was decided, with the concurrence of the Royal Tyrrell Museum of Palaeontology (RTMP), to conduct a pHRO rather than a palaeontological Historical Resource Impact Assessment.

• This pHRO will address the entire mine disturbance footprint and will use palaeontological data obtained through literature search and personal communication.

• Geologic information was assembled and interpreted by Marston Canada / Suncor. Additional drill hole testing will occur during the 2006 to 2007 winter season that will further refine the geologic interpretation of the proposed project area.


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2 GEOLOGY

The geologic formations of interest in the project area are shown in Figure 5.

The primary zone of interest in terms of bitumen content is the Aptian age McMurray Formation that rests unconformably on the Middle Devonian Waterways Formation. The McMurray Formation at the Voyageur South Project was divided into three members: Lower, Middle and Upper McMurray (Figure 5). The associated depositional environments range from predominately fluvial in the Lower McMurray, to tidal/estuarine in the Middle McMurray, to tidal marine in the Upper McMurray. Open marine conditions are reflected by the finer-grained rocks of the overlying Clearwater Formation as the seas transgressed from the northwest. As previously noted, it is the basal section of the Clearwater (Wabiskaw member) that is of primary palaeontological significance. The Clearwater Formation is overlain unconformably by Pleistocene and Holocene deposits.

The post McMurray Formation deposits, including the Wabiskaw, are referred to as overburden, and as such, are removed and hauled to in-pit and external dumps or used as dyke material. An isopach of the overburden thickness is shown in Figure 6. Based on drill hole information, overburden thickness range from 40 to 60 m in the eastern half of the proposed mine area and from 20 to 40 m in the western half. A geological map of the PDA is shown in Figure 7.


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3 PALAEONTOLOGY

The “basement” rocks of the Waterways Formation have yielded marine invertebrates such as brachiopods, crinoids, corals, bryozoans and pelecypods (L. Bohach 2007, pers. comm.). The onset of McMurray Formation deposition during Aptian times resulted in an initial terrestrial environment that produced plant and rare vertebrate remains in the area. Latest Aptian times saw the onset of tidal marine conditions that yielded an invertebrate fauna, including microfossils. Fish teeth have also been found in the Upper McMurray. Subsequent transgression of the Clearwater seas during Lower Albian times resulted in a shallow marine environment that was conducive to a variety of both invertebrate and vertebrate life.

Significant marine vertebrate remains, including two ichthyosaurs and seven plesiosaurs (both long- and short-necked), have been recovered from the basal Clearwater (Wabiskaw Member) Formation at the Syncrude operation with one of the plesiosaurs (Figure 8) being nearly complete and representing one of the best preserved plesiosaur specimens from North America (Druckenmiller and Russell 2003). Eight of the nine specimens recovered occurred in the lower shore face to offshore transition zone and were most likely subject to rapid burial by storm sands (Druckenmiller 2006).

Ammonites (Figure 9) are also valuable as biostratigraphic markers and have been recovered at many oil sands operations within the Wabiskaw. Post Albian fossil recoveries include a Pleistocene mammoth pelvis in a development in 3-15-92-10 W4M and a Holocene elk skull from a development in 14-33-92-10 W4M. Additional palaeonotlogical resources of the areas adjacent to the Voyageur South Project were described in detail by Michael Riley (Riley 2005; RTMP Project File #3948-74E-3).


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4 DISCUSSION AND RECOMMENDATIONS

The entire disturbance footprint of the Voyageur South Project is underlain by the Wabiskaw member of the Clearwater Formation, which has yielded significant marine vertebrate fossils from the Syncrude operation immediately to the north. Important invertebrate fossils, such as ammonites have also been discovered in the area from the Wabiskaw. Borehole studies project an average Wabiskaw thickness of 3.1 m within the disturbance footprint. Considered as overburden, the Wabiskaw will be removed from the mining area and may be placed in dumps or used for dyke construction or road base and/or fill. While not a certainty, there is a distinct possibility that similar fossil material to that discovered at Syncrude may be encountered as the Wabiskaw is removed during operations at the Voyageur South project site.

Article 37 of the Alberta Historical Resources Act calls for protective measures to minimize the destruction and loss of significant fossil material that may be uncovered during construction or excavation activity.

Based on the above, the following mitigation measures are recommended:

• Suncor, with the assistance of a qualified palaeontologist, should institute a staff training program to help field staff recognize significant fossil material if encountered and how to properly deal with any fossils encountered during excavation or subsequent operational processes.

• Suncor should develop internal procedures for interfacing with a qualified palaeontologist should significant fossil material be encountered during mine site operations.

• Significant fossil material is defined here as a marine reptile such as the plesiosaur and ichthyosaur. Ammonites, such as that in Figure 9, although not considered significant in this report, should be salvaged, if possible, recorded and then sent to the RTMP, if requested. Other fossil material which is not “significant”, such as unidentified bone material or other invertebrates, can be collected, if possible, and recorded for later discussion with a qualified palaeontologist.

• Although the Wabiskaw member of the Clearwater Formation has been the only stratigraphic interval to yield significant fossil material to date within the study area, all bedrock and overburden being removed may be considered potentially fossiliferous.


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5 CLOSURE

We trust the above meets your present requirements. If you have any questions or require additional details, please contact the undersigned.

GOLDER ASSOCIATES LTD.

Report prepared by: Report reviewed by:

Samuel M. Wilson, M.Sc, P. Geol. Cindy Gibson Professional Palaeontologist Associate, Project Director

John R. Gulley, M.Sc, P. Biol. Principal, Senior Oil Sands Market Director


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6 GLOSSARY OF TERMS AND LIST OF ACRONYMS AND ABBREVIATIONS

6.1 GLOSSARY OF TERMS

Ammonite An extinct group of marine animals having spiral shells.

Estuarine Formed or deposited in an estuary; estuarine muds: or growing in, inhabiting, or found in an estuary; an estuarine fauna.

Fauna An association of animals living in a particular place or at a particular time.

Fluvial Sediment generally consisting of gravel and sand with a minor fraction of silt and rarely clay. The gravels are typically rounded and contain interstitial sand. Fluvial sediments are commonly moderately to well sorted and display stratification, but massive, non sorted fluvial gravels do occur. These materials have been transported and deposited by streams and rivers.

Fossil Mineralized or otherwise preserved remains of animals, plants and other organisms.

Fossiliferous Rock formation or sedimentary layer containing fossils.

Marine Of, relating to, or occurring in a sea or ocean.

Overburden The soil, sand, silt or clay that overlies a mineral deposit and must be removed before mining.

Tidal Of, or relating to tides.


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6.2 ACRONYMS AND ABBREVIATIONS

bpd Barrels per day EIA Environmental Impact Assessment ha Hectares HRMB Heritage Resource Management Branch km Kilometre m Metre pHRO palaeontological Historical Resource Overview RMWB Regional Municipality of Wood Buffalo RTMP Royal Tyrrell Museum of Palaeontology W4M West of the fourth meridian


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7 REFERENCES

LITERATURE CITED

Alberta Geological Survey. 2006. Geological map of Alberta. Alberta Energy and Utilities Board. Edmonton, AB.

Druckenmiller, P. S. 2006. Early Cretaceous Plesiosaurs (Sauroptergyia [microform]:plesiosaura) from northern Alberta, Palaeonenvironmental and systematic Implications. PhD Dissertation, University of Calgary. Calgary, AB.

Druckenmiller, P. and A. Russell. 2003. A Preliminary Report On a Diverse Assembledge of Early Cretaceous Plesiosaurs and Ichthyosaurs From the Clearwater Formation of Northern Alberta, Canada. Journal of Vertebrate Palaeontology Abstract of Papers Province of Alberta. 2000.

Province of Alberta. 2000. Historical Resources Act, Chapter H-9, the Revised Statutes of Alberta 2000. Alberta Queen’s Printer. 34 pp.

Riley, M. 2005. Palaeontological Report for the Suncor Voyageur Project, Royal Tyrrell Museum of Palaeontology Project File # 3948-74E-3.

Spivak, D. and D. Wetzel. 2006. Palaeontological Resources in Alberta’s Oil Sands: A policy regarding the recovery, preservation and reporting of significant palaeontological resources during activities associated with the recovery of oil sands (Draft).

Suncor (Suncor Energy Inc.). 1996. Steepbank Mine Project Application. Application to the Alberta Energy and Utilities Board. Fort McMurray, AB.

Suncor. 1998. Project Millennium Application. Volumes 1, 2A, 2B, 2C and 2D. Submitted to Alberta Energy and Utilities Board and Alberta Environment. Calgary, AB. Submitted April, 1998.

Suncor. 2003. Suncor South Tailings Pond Project Application, Volumes 1 and 2. Submitted to Alberta Energy and Utilities Board and Alberta Environment. Prepared by Golder Associates Ltd. and Nichols Applied Management. Calgary, AB. Submitted December, 2003.


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Suncor. 2005. Voyageur Project Application and Environmental Impact Assessment. Submitted to Alberta Energy and Utilities Board and Alberta Environment. Volumes 1A, 1B, 2, 3, 4, 5 and 6. Fort McMurray, AB. Submitted March, 2005.

PERSONAL COMMUNICATIONS

Bohach, Lisa (FMA Heritage Resource Consultants). 2007. Personal Communication with Sam Wilson (Alberta-Palaeo Resources Ltd.). Initially Contacted in January 2007.

PALAEONTOLOGICAL HISTORICAL RESOURCE OVERVIEW ... - …...Suncor’s current oil sands operations...

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