Canada: Oh Canada - Significant Developments in Canadian Energy - May 2011

Last Updated: June 15 2011

Article by Doug Black , Anne Calverley , Douglas E. Crowther , Bill Gilliland , Alex MacWilliam , Richard A. Miller , Claude Morency , Cyrus Reporter , Ron Stuber and Helen T. Newland

Oil Sands News

1. Injections are expected to begin soon at BlackPearl's Mooney project in the Athabasca Oil Sands, where polymer injection facilities have been completed. The company expects to be able to assess pilot performance, re-pressurize the reservoir and experience increased volumes within six to twelve months of steam injection. It is anticipated that the first phase of the polymer flood will achieve peak rates of 3,000 to 4,000 bpd of heavy oil.

1. In the first quarter of 2011, overall mined oil sands output in Canada was up almost 26% relative to the same quarter last year, reaching up to 748,069 bpd of synthetic crude oil. Syncrude Canada had a record performance in the quarter, producing 321,000 bpd, which equates to roughly 119% of the production in the first quarter of 2010. Taking into account the planned coker turnaround in the second half of this year, Canadian Oil Sands Limited anticipates Syncrude production of 301,400 bpd in 2011.

1. The Kearl oil sands mining project, jointly owned 71% by Imperial (as Operator) and 29% by ExxonMobil, is approximately two-thirds complete and is on target to commence first oil production in late 2012. Initial production at the 345,000 bpd facility is anticipated to be about 110,000 bpd. Kearl will be the first bitumen mining operation involving just a single processing phase, whereby bitumen will be refined only once at a downstream facility, rather than being processed both in an upgrader and subsequently in a refinery.

East Coast News

2. Technip has been awarded a contract by Hibernia Management and Development Company for work associated with the Hibernia South Extension project, including engineering, procurement and construction services as well as installation of subsea equipment. The project is part of the continuing development of the Hibernia field, located on the Grand Banks offshore Newfoundland and Labrador.

3. Contact Exploration is continuing discussions toward obtaining a joint venture partner for development of its shale gas resources on its lands in the Hillsborough region of the Moncton sub-basin in southern New Brunswick. The best estimate of prospective gas resources on these shale gas lands is 2.14 tcf.

4. Forent Energy plans to raise $5 million in equity capital to produce oil from the reef-like structures identified by a gravity gradiometry survey on its Alton Block property in Nova Scotia. Forent is the largest onshore oil and gas landowner in Nova Scotia, and anticipates that there are a number of high potential exploration and development opportunities in its Alton and Beech Hill properties.

West Coast News

5. A new joint report from the National Energy Board and British Columbia's Ministry of Energy and Mines estimates that there may be as much as 78 tcf of gas in the Horn River basin, which is more than double the previous assessment. The vast majority of this volume consists of as of yet undiscovered resource.

5. CNRL plans to drill another eight wells near its Montney unconventional gas play near Septimus, British Columbia, all of which are expected to be online in 2012. So far this year, CNRL has outpaced the 50 mmcfpd design capacity of the plant, producing 60 mmcfpd of gas and 1,800 bpd of NGL. That production has led to improved reserve estimates, now considered to approximate 6 bcf per well for gas, which equates to a 50% increase in gas over previous estimates and an almost 2900% increase in NGLs to nearly 300,000 bbls per well.

Canadian Arctic News

6. The Northwest Territories Geoscience office is undertaking investigation of the potential for shale gas in the largely unexplored Horn River Group Strata in the Mackenzie Plain. The investigation will consist of a five-year field and subsurface-based study aimed at determining the unconventional potential of the area.

Numerous countries, including the United States, Canada, Russia and Denmark, have agreed with their Arctic indigenous peoples to negotiate measures for oil spill preparedness and response in the region and to develop an ecosystem-based management initiative to protect the area's environment.

Alternative Energy

7. Acconia Energy's $115 million 45MW Lamèque wind park in New Brunswick has entered commercial service. Acconia Energy is the owner and principle developer of the wind park. Acconia Windpower supplied thirty 1.5MW wind turbines for the wind park, and Acconia Infrastructure, in a temporary consortium with the Canadian company Tetra Tech, has undertaken the construction work.

8. REpower has signed two contracts for Canadian wind projects that cover the delivery, installation and maintenance of 55 REpower MM92 CCV turbines. These two contracts include the purchase of 40 wind turbines by EDF Energies Novelles for its Robert-Bellarmin wind farm in Quebec, and the purchase of 15 turbines by Wind Works Power for its Ganaraska and Whispering Woods wind farms in Ontario.

8. The United States division of the global solar technology giant, SolarWorld, has begun shipping panels to Innergex Renewable Energy's $140 million Stardale PV solar project under development in Ontario. The project is expected to be completed in the first quarter of 2012.

9. The Government of Saskatchewan has approved the construction of the $1.2 billion Boundary Dam Integrated Carbon Capture and Storage Demonstration project. The project, which will be among the world's first commercial-scale carbon capture and storage facilities, will transform a portion of the Boundary Dam Power Station into a new generating unit, with a generating capacity of 110 MW of electricity, in addition to capturing CO2 for use by industry in enhanced oil recovery of mature fields. Construction on the project will begin immediately, with operations projected to commence in 2014.

On the Horizon

Plan Nord, which is hailed as one of the largest and most ambitious projects ever undertaken by the province of Québec, is an $80 billion economic, social and environmental development plan aimed at strengthening Québec's economy and global competitiveness by leveraging sustainable development partnerships. The Plan will focus on the development of the area in Northern Québec above the 49th parallel and will be divided into five five-year phases, each of which will engage the First Nations, the Inuit and local communities. The first phase will involve a $2.1 billion public investment including significant investments in infrastructure and in social measures as well as a $500-million investment from Investissement Québec. These investments are intended to facilitate growth and development of mining, forestry, energy and other key industries in the province.


In this newsletter, all dollar amounts are Canadian dollars unless otherwise stated. We have also used the following abbreviations: bpd - barrels per day; mmcfpd - million cubic feet per day; bcfpd - billion cubic feet per day; tcf - trillion cubic feet; bbl - barrel; mbbl - thousand barrels; mmbbl - million barrels; bbbl - billion barrels; boe - barrels of oil equivalent; MW – megawatts; kV – kilovolt; km – kilometre.

About Fraser Milner Casgrain LLP (FMC)

FMC is one of Canada's leading business and litigation law firms with more than 500 lawyers in six full-service offices located in the country's key business centres. We focus on providing outstanding service and value to our clients, and we strive to excel as a workplace of choice for our people. Regardless of where you choose to do business in Canada, our strong team of professionals possess knowledge and expertise on regional, national and cross-border matters. FMC's well-earned reputation for consistently delivering the highest quality legal services and counsel to our clients is complemented by an ongoing commitment to diversity and inclusion to broaden our insight and perspective on our clients' needs. Visit:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Events from this Firm
25 Nov 2016, Seminar, Toronto, Canada

On Thursday, September 22, 2016, Dentons hosted a panel discussion about the management of liabilities and risks associated with environmental crises, including potential liabilities for directors and officers and provided insight into risk and liability techniques associated with environmental crisis management.

In association with
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.