Energize Alberta Sept - October 2010

Oil & Gas Oilsands: perception vs. reality Page 14

Power

Renewables

Rural electrification associations

Micro-generation for the masses page 23

page 21

September/October 2010

where energy, the economy, and the environment intersect

Oilsands champion Preston McEachern brings unique perspectives to issues surrounding oilsands development paul wells and Diane L.M. Cook Energize Alberta

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octor Preston McEachern offers no apologies for his steadfast advocacy of Alberta’s oilsands and its importance to future North American energy security.

From a scientific and life-experience point of view, the candid and occasionally controversial science, research and innovation section head in Alberta Environment’s oilsands environmental division comes by it honestly and from a unique perspective.

Born in the United States, now a dual U.S.Canadian citizen and a Gulf War veteran, McEachern is unwavering in his belief that anti-oilsands campaigns being waged by various North American environmental groups do not always paint an accurate picture of either the importance of oilsands crude as an energy source or the gains that are being made in terms of the environmental footprint the large-scale projects leave in their wake.

“Being a vet from the Gulf War…it certainly was an experience that I think is relevant because it definitely set the stage

and coloured my impression of what [the oilsands] means for energy security. I’ve often been labelled by green organizations as being too much of an advocate for oilsands development, and it’s coloured by that,” McEachern said during a recent presentation to the Pacific NorthWest Economic Region’s (PNWER) summer summit held in Calgary.

“I think it’s absolutely essential that we develop this resource for energy security. And in order to do that, we have to do it in an environmentally sustainable way to get the social licence to do it.”

With Middle East crude oil imports to the United States emanating from countries with questionable and sometimes unstable government regimes and environmental practices, and the fact that it will be decades before renewable energy sources such as solar or wind power are built in large enough scale to replace oil as a primary energy source, McEachern says the oilsands will continue to grow as an important component in the North American energy mix. ❯❯ continued on page 14

School children enchanted by visit to Enerplus oil battery Jacqueline Louie Energize Alberta tudents at Tilley Public School take their energy education seriously.

Last year’s Grade 3-4 class wrote a book on what they’ve learned about the oil and gas industry: The Enchanted Drill Bit, an adventure where they explored a magic drill bit in Tilley, located southeast of Brooks, and learned all about Alberta’s petroleum sector.

The Enchanted Drill Bit tells the story of the Grade 3-4 class, who went on a field trip to an oil battery owned by Enerplus Resources, to visit company employees Lorne Schmidt and B.J. Arnold. After shrinking to the size of a baby mouse, the book says, the 21 students went into the enchanted drill bit, where they learned about the Enerplus battery (where oil is stored). They learned about how oil and gas was formed, and how people remove it from the ground and process it. They also visited the Tilley general store, where they found lots of products made from petroleum, and learned about the impact of oil and gas on people’s daily lives.

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The project was funded by a grant of $10,000 from BP Canada’s A+ for Energy program, which covered the book’s printing costs, as well as an audio book and a student puppet show. A collaboration between the school’s Grade 3-4 class and teacher Janice Jensen, along with editorial guidance from Schmidt, Arnold and a parent, the finished hardcover book features 21 pages of text and 21 water­ colour pictures painted by each of the students in the class, together with a photo page and signature page. (As part of the funding grant, a local artist was asked to work with the students on art techniques for the book.) The students also performed a puppet show about The Enchanted Drill Bit last May, on the day they launched their book.

The project, which took an estimated 50 to 60 hours to complete, taught the students not just about the effort it takes to write and illustrate a book, but also about goal setting and perseverance. “When all is said and done, to see the work in front of you, their smiles and their lit eyes said everything,” Jensen says. “They were so excited.” ❯❯ continued on page 2

www.energizealberta.com

September/October 2010 • Energize Alberta

Continued from page 1

School children enchanted by visit to Enerplus oil battery

Photo: Tanzi Lee Kosten

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Photobook Canada printed 55 copies of The Enchanted Drill Bit in the initial run, followed by a reprint of 35 copies. There is also an audio book, read by one of the students.

The school’s connection with Enerplus began as a result of Energy in Action, a Canadian Association of Petroleum Producers (CAPP) initiative that brings industry members and rural communities together to care for the environment, and teach students in rural communities about environmental stewardship and the oil and gas industry.

In 2007, Lorne Schmidt, a district foreman with Enerplus in Tilley, and BJ Arnold, who was an Enerplus stakeholder relations adviser at the time, organized a CAPP Energy in Action event at the Tilley school. It was a hit with everyone, and Schmidt and Arnold returned to the school each year after that to give students educational sessions on the oil and gas industry.

“They took what we had taught them in class, and put it into a book. It’s pretty cool stuff,” Schmidt says. “It’s pretty humbling to know they listened to everything we said, put it into perspective and wrote a book that was pretty true to life.”

About us

Enerplus’s Lorne Schmidt and teacher Janice Jensen with some of the Tilley students who wrote the book.

The Enchanted Drill Bit is a shining example of the oil and gas industry and the educational system working together.

“The teacher was very engaged. Janice Jensen is one of these amazingly enlightened teachers,” says CAPP Energy in Action coordinator Laura Perry. “She is teaching her kids that you can make a difference, even if you are 9 or 10 years old. You can look after your environment, and do things to inspire adults to look after their environment.”

And that is what the Energy in Action program is all about. “We are really proud that CAPP’s Energy in Action program inspired Janice Jensen and her students to continue to explore the oil and gas industry, and what it means to their community and environmental stewardship,” Perry says. “While BP’s deep pockets enabled them to publish The Enchanted Drill Bit, the real story is the longterm relationships that have evolved, and the volunteer effort that Enerplus has put into the Tilley community and school.”

Atco’s energy classroom is on the move Jacqueline Louie Energize Alberta

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“We feel it’s really important to get out to youth, to try to change their behaviour in a positive way around how they consume energy today, so they will become more efficient users of energy in the future.”

Launched this past April, the Energy Education Mobile is a 12-metre-long motor home that operates

www.energizealberta.com

President & CEO Bill Whitelaw Editorial

Production, Pre-Press and Print Manager Michael Gaffney Staff Photographer Aaron Parker

Publisher & Editor Stephen Marsters

Sales and Administration

Associate Editors Deborah Jaremko Paul Wells

Sales Manager – Advertising Maurya Sokolon

Editorial Assistance Joseph Caouette

Account Executive Rhonda Helmeczi

marketing

Marketing Manager Sonia Taylor Crichton Creative

Designers Ken Bessie Andrew Brien Birdeen Selzer

Sales Nick Drinkwater Diana Signorile Administration Sandy Flaherty Website

Web Manager Chris Fleming

Find out more about us online at energizealberta.com, and send your feedback to yourenergy@energizealberta.com.

Calling all students!

Teachers, take note — this makes an excellent class project!

on tallow-based bio­diesel made from animal fat that reduces the vehicle’s carbon footprint by an estimated four tonnes annually.

Developed by Atco EnergySense in consultation with Alberta teachers, the Energy Education Mobile is a classroom on wheels containing four learning stations that can accommodate up to 16 students at one time.

Students, who go through the Energy Education Mobile’s learning stations under the guidance

Photo: Bluefish Studios

rade 4 students across Alberta are learning all about the province’s energy resources and energy conservation, thanks to the Atco EnergySense Energy Education Mobile, Alberta’s first mobile energy classroom.

“Atco is committed to being a responsible energy company, and this resource really helps us with educating our consumers, current and future,” says EnergySense program manager Mark Antonuk.

Energize Alberta is published six times a year by an alliance consisting of JuneWarren-Nickle’s Energy Group, Great West Newspaper Group and Farm Business Communications, all members of Glacier Media Inc., in association with an advisory board consisting of industry professionals. Energize Alberta is circulated to approximately half-a-million Albertans, in rural and urban settings.

of two Atco EnergySense education and outreach coordinators, learn where Alberta’s energy comes from and why energy conservation is important.

Topics tie in with the Grade 4 science and social studies curriculum, and are introduced using computers and interactive games.

Module one is a touchscreen computer game

that identifies where natural resources such as coal and natural gas come from, how industry gets these resources to Albertans and how people use them. The module also paints a picture of what the future could look like, with people using more alternative energies such as geothermal and solar.

Module two is a handheld scanner game that shows students how they can reduce electricity use at home. Students learn about simple actions they can take to lower their electricity consumption and the corresponding reduction in greenhouse gas emissions.

Module three is a picture magnet game that helps students to identify heat loss in a home. They place markers around the pictured house in locations where they think heat could be escaping. Then they identify actions they can take to reduce heat loss — for example, by

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placing caulkISSUE ing around the windows and insulating the attic. “It gives them a really good idea of how heat is lost through the home, and what they can do to reduce that heat loss,” Antonuk says.

Module four is an energy detective game where students spot the differences between images that are energy efficient and those that are energy inefficient by using pictures on a white board.

Since its launch this past spring, the Energy Education Mobile has travelled across the province, visiting 21 schools and reaching more than 3,100 students. The mobile also shows up at major events such as the Calgary Stampede, where it saw 6,300 visitors this past July. And from September to the end of the year, the Energy Education Mobile is planning to visit another 50 schools.

Students love the modules’ interactivity. And the mobile has received an “overwhelmingly positive response from teachers,” Antonuk says.

For more information, call toll-free 310-SAVE (7283) from 9 a.m. to 4:30 p.m., Monday through Friday; email energyeducation@atco.com or visit www.atcoenergysense.com.

Energize Alberta

writing contest for students Energize Alberta invites school-aged kids to write an essay on any topic related to energy production or use in Alberta.

Why is it important to know about where energy comes from and how it’s used? What do you think about Alberta’s oil and gas sector? Should Alberta use more renewable energy?

Essays should be no less than 250 words and not exceed 800 words: 400–600 words would be ideal. Deadline for submission is March 1, 2011. The winning entries will be published online and in the May/June 2011 edition of Energize Alberta.

There are three competition categories: Grades 3–5, Grades 6–8 and Grades 9–12.

Winning entries in each category will receive an Apple iPad. Please mail entries by March 1, 2011, to: Energize Alberta, 2nd Floor, 816 - 55 Avenue NE, Calgary, AB, T2E 6Y4.

You can also email entries to yourenergy@energizealberta.com.

Energize Alberta • September/October 2010

Thirteen-year-old “draws” her own conclusions about Alberta’s energy supplies BACK-TO-SCHOOL

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lasia kretzel Energize Alberta Photo by Lasia Kretzel

Maggie Geis

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hey say the future belongs to our children and their children. But that future starts today. Today’s youth need to start thinking now about what kind of planet they want to inherit later.

It doesn’t take too much effort to educate yourself about the future of our energy supply. Just ask Maggie Geis. This enthusiastic 13-year-old found out about the use of natural gas compared to

coal through an assignment for school.

“It was an assignment to do an editorial cartoon involving conflicting world views, and I just thought it would be a good topic because it’s a big topic in the natural gas industry,” Maggie says.

The idea started as a family dinner conversation. Maggie’s father, Wayne Geis, who is vice-president of strategic planning for Encana’s natural gas economy, suggested that his

daughter look into the controversial issue surrounding the use of natural gas as opposed to burning coal for energy.

“Maggie’s always showed a lot of interest in public events and media events and she likes to draw,” says Wayne. “I just told her the basics…and she said, ‘Let me learn more about it,’ and she asked questions and came up with the cartoon.”

The cartoon depicts three key actors in the

natural gas industry: a member of a natural gas company, a government representative and a concerned environmentalist.

In the end the industry member finally convinces the environmentalist and the government representative that natural gas is the better choice.

What started out as a school project culminated in an interview with Encana’s Eric Marsh, executive vice-president of natural gas economy,

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and a greater understanding about the present and future benefits of deriving energy from natural gas.

Maggie says she feels she has a greater understanding of the benefits of natural gas as a future energy supply and she hopes more people will use natural gas to fulfill their energy needs.

“There are many benefits to natural gas,” she says. “It’s cheaper than coal, it produces less emissions like nitrous oxides and sulphur dioxide, and it’s abundant here in North America so we don’t need to buy it from foreign sources.”

To Maggie, the switch to natural gas is a no-brainer, but she also understands why many people are reluctant to make the move.

“I don’t think people know about it just because we’ve been using coal and gasoline for so long,” she says. “Once people are accustomed [to an energy source], we’re not so keen to change, but when you think about the benefits they might reconsider.”

While not all children are as fortunate to have parents who work within the industry, Maggie says it’s not hard for anyone to learn about the future of Alberta and Canada’s energy use and environment. “[It’s as simple as] just getting involved with something you’re passionate about and doing whatever you can to help the environment,” she says. “It’s the small things that count and make a difference, from recycling to conserving electricity, carpooling, riding your bike. Those are the steps to a better environment, and those are the things that my generation and future generations can all do easily.”

Committed to the

people and communities where we work and live. www.conocophillips.ca www.energizealberta.com

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September/October 2010 • Energize Alberta

Sowing the SEEDS of energy education Jacqueline Louie Energize Alberta

program that discusses all forms of energy, both conventional and unconventional. The series is designed to help students become knowledgeable about energy sources and how they are harnessed and used.

“This website is a great resource for the Science 7, 9 and 10 courses,” says Anick Ouellet, a science teacher at École de la Rose Sauvage (Wild Rose School) in Calgary.

Ouellet, who teaches both junior and senior high school science, was looking for a new method of exploring the different ways of producing electricity and showing everyday applications of energy transformation. “The SEEDS Energy Literacy Series web-based program fit the bill exactly,” Ouellet says. “The teacher has access to as much information as needed to introduce the different energy sources in Grade 7, or a more in-depth view in Grades 9 and 10. The animations and images help the students to visualize each step in a clear fashion.”

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Students participating in SEEDS programs learn about energy and the environment, and take action in their schools and communities.

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nderstanding energy and the environment is critical in today’s rapidly changing world. And the SEEDS (Society, Energy and Environment Development Studies) Foundation is here to help by providing energy and environmental education to young people and teachers, Canada-wide.

“We educate young people about the energy industry and the environment. Our mission is to provide unbiased materials that fit into the curriculum of the province in which the material is being taught,” says SEEDS Foundation executive director Diane Field.

A national, not-for-profit educational organization based in Calgary, SEEDS has been developing educational resources for nearly 35 years. It has won many awards since its establishment in 1976 in Edmonton by a group of oil and gas companies, whose goal was to provide educational resources on energy and the environment. “We

are not an advocacy group,” Field says, noting that the educators who develop and write the SEEDS materials do extensive research to ensure that all perspectives are included. Funding for SEEDS comes from a wide range of sectors, including banks, energy companies and associations, environmental groups, and individuals.

SEEDS offers programs for elementary and secondary school levels, and these programs can be used in a variety of subjects. The Green Schools program, for instance, is designed primarily for the elementary level, although some secondary schools are using it as well. “Green Schools touches on basic concepts related to the energy industry,” Field says. “It introduces students to the energy industry and to the responsibility that industry takes for maintaining sustainability in the environment.”

The secondary level SEEDS programs, aimed at Grades 7–12, include the Energy Literacy Series, a free online

Habitat in the Balance Habitat in the Balance is a new secondary online decisionmaking program with the goal of helping young people develop the skills of responsible citizenship. It helps students take the knowledge they have acquired in earlier SEEDS programs and apply it in their communities. In Habitat in the Balance, students learn how development affects the environment, and how people can make decisions to ensure they use the environment in a sustainable way.

The program works by giving students a situational issue and asks them to take the role of a key stakeholder in the community who would be interested in that issue — for example, a developer, a concerned citizen or an aboriginal. The program accommodates up to 10 points of view for any given situation, and students must decide on the best course of action. Then, they come together in a town hall meeting and present their statements.

Habitat in the Balance is aimed at helping students realize the importance of studying issues from different perspectives before forming an opinion and speaking out.

“They need to be respectful of all citizens and their different points of view,” Field says. “They need to understand that there are many points of view to situations related to the energy industry, and they come to understand that the answers aren’t easy.”

More than 14,000 schools across Canada have used SEEDS programs, including 6,000 elementary schools that are doing the Green Schools program.

SEEDS tries to stay on top of accurate industry information and is constantly updating its materials.

Currently, it’s looking to develop a network of its “Green” schools so that being green becomes a norm in schools across Canada. Field hopes the network will allow Green schools to communicate with each other and share ideas on green activities.

Dale Makar, a high school science teacher with the Calgary Board of Education and a SEEDS resource developer and author, says the SEEDS materials “fit right into my classroom. They are a nice, graphical way to demonstrate concepts that are sometimes difficult to teach. They are accurate, non-biased and from a Canadian perspective. It’s like one-stop shopping for energy education.”

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Energize Alberta • September/October 2010

Olds College helping to educate next generation of land agents

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Trevor Williams

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Jacqueline Louie Energize Alberta

ne of the biggest issues that Alberta’s energy industry has always faced is its relationship with landowners. Access to land is one of the most important things that oil and gas companies require in order to thrive.

The main point of contact between companies and landowners are land agents. Professional conduct by land agents is essential for energy companies to secure ongoing surface access to land.

This is why Olds College has partnered with Alberta’s oil, gas and utility industries to improve the professionalism of Alberta’s surface land agent industry. In 2006, the Energy Industry Partnership (EIP) established a chair of energy and utility sector relations at Olds College, to provide visionary leadership to the college’s land agent program and ensure the college’s educational programming meets the energy sector’s human resources needs.

Encana, EIP’s initiator and inaugural partner, provided funding for the chair position for a minimum 10-year period.

“The intent is to rotate people through the chair position,” says the current energy and utilities sector relations chair, Trevor Williams, who also sits on the Energize Alberta advisory board.

In the past 15 years, a land agent’s role has changed from being primarily a lease negotiator to more of a community

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relations officer, says Williams, who worked in the oil and gas industry for more than 40 years before becoming the college’s first energy and utilities sector relations chair.

“Now, companies are calling [land agents] communications consultants. They are really a coordinator between the projects and the landowners.”

Since taking on the chair position, Williams has helped guide Olds College in making a number of changes to the land agent program that are relevant to far more than the oil and gas industry.

“On the transmission side, many new proposals are coming. That also impacts what the students need to learn. There are tremendous changes going on in the industry [regarding] power lines, utility rights-of-way and wind farms, all of which require negotiations between landowners and industry.”

After canvassing companies, land agents and landowners about what Olds College could do to make its land agent program more professional, the school developed a new and revised curriculum. There is a stronger focus on project management, as well as technology and communication skills. Students “need to understand the technical side of the business,” Williams says. “And they need to totally understand the project from cradle to grave.”

“Olds College is fairly unique because it also teaches the environmental and reclamation aspects. It gives our students a very good opportunity to deal with environmental and reclamation issues as they are learning, rather than when they get into an organization.”

— Trevor Williams, Olds College

In addition, the college will continue to teach students studying to become land agents and land administrators about Alberta’s agricultural industry. This will give them a much better understanding of the needs of landowners, as well as knowledge of such things as reclamation and the environmental impact of development. At the same time, the college’s agricultural students will have an opportunity to learn about the energy industry.

“Olds College is fairly unique because it also teaches the environmental and reclamation aspects. It gives our students a very good opportunity to deal with environmental and reclamation issues as they are learning, rather than when they get into an organization.”

Last year, Olds College introduced a career-focused information interviewing process for students in the land agent program, which provides them with a chance to speak to a land agent about

the profession. “At the end of this discussion with the land agent, the student has a much better understanding of what the overall job entails,” Williams says. “So we are getting students coming in now who know what they are getting into, and that it’s what they want to do.”

In another new initiative, students obtaining their land agent diploma from Olds College can now transfer to a bachelor of management program at the University of Lethbridge. “Again, it goes a long way in improving the professionalism of land agents,” Williams says, crediting Joel Gingrich, former chair of the college’s school of agriculture, land and environment, for the new agreement.

Going forward, Olds College will continue to focus on improving the professionalism of the land agents it trains. “Government regulations change constantly, and therefore the students have to be very much up-to-date on these changes,” Williams says.

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September/October 2010 • Energize Alberta

”Lightening the footprint”

Anne Naeth

U of A professor’s work on land reclamation inspires her students BACK-TO-SCHOOL

Jacqueline Louie Energize Alberta

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hese days, the oil and gas industry continues to struggle with fallout from the Gulf of Mexico disaster and the environmental effects of resource development, especially in Alberta’s oilsands. The industry is questioned by celebrities, politicians and environmentalists alike, but the province’s resource roots also have a proud history that should be recognized, says a University of Alberta professor.

“While recent environmental disasters should not be downplayed, there is room to recognize Alberta’s resource-based heritage, and, more importantly, to understand that innovative reclamation projects can go a long way to lightening the footprint left by oil and gas development,” says Anne Naeth, a professor of ecology and land reclamation in the U of A’s department of renewable resources.

She believes land reclamation is critical for the future — not just for the planet, but also for future generations of people.

“Without reclamation, we have an increasingly large population trying to live off a decreasing land base,” says Naeth, who is also a Vargo distinguished teaching chair at the U of A. Currently, only about 50 per cent of the Earth’s land surface is usable by humans, she explains. That means that 50 per cent of the land that has traditionally been available has been degraded by human activity, to the point where it can’t be used anymore. “If we have 50 per cent of the land base that’s not usable because of inappropriate use or because of disturbances, and the world

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population is growing dramatically, then in order to achieve a balance between usable land and the population that requires it, land reclamation is absolutely critical. We can’t continue to have things like mines and oilsands — basically, land-use practices that result in disturbances — without having some ability to reclaim those lands and make them usable again.”

Naeth’s work mainly deals with land disturbances caused by human activity, typically involving the energy sector, agriculture, urban development or recreation.

Together with graduate students and other student researchers, she deals with contaminants, soil and plant issues, revegetating areas where plants aren’t growing, and building or redeveloping soils where plants have been disturbed or removed, such as in the oilsands or coal mining.

“We tend to forget the importance of the oil and gas industry in building our province, as we focus on environmental issues emanating from it,” Naeth says.

To explore the idea of marking that history and of showcasing land reclamation at its best, earlier this year Naeth assigned some of her fourth-year students a class project that proposes turning a former gas plant in southern Alberta into a historical interpretive center and a greenhouse for prairie grasses.

The resulting plan is based on the students’ assessment of engineering studies done at the Turner Valley gas plant site over the past 30 years. It serves as a viable example, even though hypothetical at this point, that could be supported by willing government, industry and

research institutions embracing the concept of environmental stewardship, says project leader Andrew Braid, an undergraduate student who is majoring in land reclamation in the U of A’s environmental and conservation sciences program.

He believes the project may help inspire a new generation of Albertans to take up the cause and learn about how society can minimize negative impacts on the land base.

Braid is also inspired by his teacher.

“Her passion for the material that she teaches is so evident that her students can’t help but get interested and apply themselves to whatever tasks she sets before them,” he says. “She is an inspiration for the students in the program because she’s demonstrated that with the right amount of knowledge and perseverance, someone can bring about changes in the industry, which is ultimately what many of us want to do after we graduate.”

We see the possibilities.

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“I wouldn’t wish this on anybody”

Energize Alberta • September/October 2010

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a step further and did a PCR test [polymerase chain reaction test, which checks for the disease in a patient’s DNA].

That came back positive from the States as well.”

Both Wilson and Paul’s parents are critical of the Canadian tests for Lyme disease.

Wilson says many people with Lyme do not test positive for the disease with the common ELISA blood test — short for enzyme-linked immunosorbent assay, which measures for antibodies to Lyme disease. “If you don’t test positive on that you don’t get the next test, which is a more specific Western blot test.

Two parents speak up about how Lyme disease has affected their son stephen marsters Energize Alberta

M

ake a list of the things that aren’t right or don’t seem fair and then try this on.

Imagine being told your son may have a rare disease that is usually fatal within months; imagine travelling thousands of miles outside your own country for medical treatment because doctors in Canada are afraid they’ll lose their licence if they help you; or, imagine being sick — so sick you can barely get out of bed — but having professionals tell you that “we can’t find what is making him sick.”

For Paul Hansen* and his family, that list was made and lived through. Paul has Lyme disease and, like others with the disease, this is what they face every day.

List one: “What’s wrong with me”… seeking answers…spiralling down In February 2009, while on the job as a well operator in the oil and gas industry, Paul suddenly had the sense he was in trouble. He’d later tell his parents, Rick and Mary, that he was having problems breathing and that he felt like he was having an out-of-body experience, like he was falling through the earth. “He called a colleague at work and said, ‘I’m in trouble here — can you come and get me to a hospital,’” recounts Mary.

What ensued was a five-month quest to uncover the cause of Paul’s symptoms, a search that led them to over a dozen doctors while their son became sicker and sicker.

“He was going downhill all the time,” says Mary. “He couldn’t get out of bed for four to five months. He wore earplugs, sunglasses, a ball cap — he couldn’t stand light or noise and couldn’t have more than one person in the room with him.”

THREE Key Points To Ponder

1. When working outdoors, it’s easier to see ticks if you wear light-colour clothes.

2. A bull’s-eye rash may only occur in about 10 per cent of

cases. The disease can affect a number of body systems.

3. Jim Wilson of the Canadian Lyme Disease Foundation

says many Lyme patients are first wrongly diagnosed with other illnesses, including multiple sclerosis or neurological diseases such as Parkinson’s.

List two: Lyme disease…symptoms Lyme disease is caused by the bacterium Borrelia burgdorferi and transmitted by certain species of ticks. The disease is named after Lyme, Connecticut, where the first outbreak in humans in North America was recognized in 1975.

At least three species of Lyme-disease carrying ticks have been found in Alberta, says Jim Wilson, president and founder of the Canadian Lyme Disease Foundation. A victim of Lyme disease, he has been involved in networking with Lyme victims and providing information for over 10 years.

For most Canadians, the risk of exposure to Lyme disease is fairly low. But the risk is higher if you spend a lot of time outdoors.

In nine per cent of cases, people who contract the disease get a very distinct red circular rash starting at the tick bite site and spreading outwards, says Wilson. The

centre of the rash may clear as it enlarges while retaining a darker outer edge, resulting in a bull’s-eye appearance. Some people will get a less distinguishable rash that is often not recognized as Lyme disease, and many others will get no rash at all.

“If you were ‘lucky’ enough to come down in July with flu-like symptoms, well, that should be another real trigger for doctors,” Wilson says. “People generally don’t get flu in the summer. But not everybody gets those initial flu-like symptoms. I had the weird rash show up, but no flu-like symptoms.”

Another trigger for doctors should be patients who have a series of seemingly unrelated symptoms, says Wilson, noting the disease is multi-systemic (affecting the brain and the central nervous, cardiovascular, digestive and respiratory systems, among others).

“It sounds odd for a patient to come in and say his brain doesn’t seem to work right, and his joints are sore, and he has no energy, his bowels are messed up and he has spots in front of his eyes. Those are all relatively disconnected.

But yet that in itself should be an indicator for the doctors that the patient needs to be tested for Lyme disease.”

“We want the ELISA test dumped as a screening test altogether. We would like multiple testing being done.

We want the C6 peptide test, which is a form of the ELISA, but a more accurate form, combined with a Western blot, but the Western blot has to include in its testing the biomarkers that are specific to this organism.”

Paul’s parents also believe that testing in Canada only goes so far, and that people may be getting false negatives. They say their son was denied the opportunity to take the Western blot test, even though they offered to pay for it themselves.

“That’s a message at the end of the day for anyone out there who may be dealing with this,” says Rick. “The testing [in Canada] isn’t that good. The tests need to be as sensitive as the ones in the U.S.” Wilson says 2,000 to 2,500 people a year that come through the Canadian Lyme Disease Foundation test positive for Lyme disease, “once they get the better testing done. And we think we’re only getting a few of the total number infected. The likelihood that Lyme disease is under-diagnosed in Canada is extremely high.”

List three: Finding answers…the testing quandary For Paul, finding out he had Lyme disease came five months after his initial symptoms.

“Everybody could tell us what it wasn’t; nobody could tell us what it was,” says Paul’s mother, Mary. “Then they checked into another diagnosis, a progressive form of encephalopathy that apparently has no cure. It’s fatal within six months. It was shocking. It was devastating.”

Paul was tested for that, and the results came back negative.

“That was good news, but we still didn’t know what it was,” says Paul’s father, who adds that during this fourto five-month period he and his wife were telling friends and family about Paul’s condition.

“We had appointments booked at the Mayo Clinic and then there happened to be a documentary on television that different relatives and friends had watched — coincidentally — at the same time,” says Rick. “Two or three phoned us and said, ‘I wonder if Paul has Lyme disease?’”

Paul was subsequently tested in Canada for Lyme. His parents also had him tested in the United States, at their own expense.

“The test from Canada came back negative; the test from the States came back positive,” says Mary. “We went

List four: Treatment…advice for parents… advice for patients For many people with Lyme, positive confirmation that they have the disease comes at the end of a lengthy and emotionally draining process of winding their way through a medical system that, by and large, still offers little support to those suffering from the disease.

Wilson says many doctors in Canada are afraid to talk about Lyme disease, noting some have been forced to give up their practice due to repeated questioning by their provincial licensing bodies about their treatment of Lyme disease patients.

That treatment usually involves patients taking high doses of antibiotics — sometimes administered intravenously — over a long period of time. “I’m on the far end of treatment time,” says Wilson. “I was on [antibiotics] for eight years. Every time I stopped I relapsed, until we finally got it. [Treatment time] really depends on where the organism has sequestered in your body.

“It’s complex all the way along. It’s hard to diagnose, it’s hard to treat and it’s hard to eradicate. In fact, to this day, I don’t say I’m cured. And I’ve relapsed once in the last eight years that I’ve been off antibiotics.” ❯❯ continued on page 22 *Names changed at the request of the family.

www.energizealberta.com

Q&A 8

September/October 2010 • Energize Alberta

Ad v i so r y Bo a r d

Members of Energize Alberta’s advisory board come from many energy “walks of life.” This group, with its collective insight and expertise, works closely with the editorial team to suggest areas of coverage that will engage and educate all Albertans about our energy future.

with energy players

Energize Alberta: The Regional Municipality of Wood Buffalo recently announced that it will intervene in the regulatory approval hearing for Total’s proposed Joslyn mining project, indicating it does not want the project to be built. Where does the chamber sit on the issue?

June] to represent Fort McMurray, yet when a company wants to develop a project in the region, the municipality stands in the way. We feel that is a contradiction, and that is why we are sending a letter supporting the Joslyn project to the ERCB.

Jon Tupper: We feel that the city does have a right to intervene as a stakeholder — it’s how and what they are intervening on that we are concerned about. The letter they issued to the Energy Resources Conservation Board [ERCB] is a carte blanche opposition to the project. We’re asking the city to reconvene the [municipal] resource development review committee [a multi-stakeholder group that includes groups such as the health region, local school boards and the chamber], and through that consultation voice specific concerns to the project, and if necessary, proceed with intervention. They said they’re intervening on behalf of the citizens, yet when we asked them to consult with the citizens, they said no.

Council passed a resolution in 2006 that it would intervene as needed in all oilsands projects. This policy stands immutable at this point, yet infrastructure changes every year. The economy changes every year, and is certainly different now in 2010 than it was in 2006. And the impact of an oilsands project varies on a case-by-case basis.

The city has an economic development division, and one of the areas this economy depends on is the oilsands industry. Council sent me to the Global Petroleum Show [in Calgary this

Energize Alberta: Do you then believe that infrastructure in Fort McMurray and the surrounding municipality is ready to support another wave of development?

www.energizealberta.com

Jon Tupper: Since 2006, when the municipality first intervened, to 2010, there has been substantial investment by various levels of government in this region. We’re building houses, we’re building bridges — $2.25 billion in investment has or will soon occur to address the many challenges we are facing.

The city is not intervening on a specific issue. They are intervening on the project as a whole. Do we need more teachers, more daycares? I can’t answer that, because the resource development review committee hasn’t met.

Energize Alberta: Last winter the Fort McMurray Chamber of Commerce conducted a survey of the local residents, entitled “My Community, My Voice,” with the goal to provide an opportunity for people to speak up about what they want to see for the community. Now that the results are in hand, what are the key findings?

Jon Tupper: We learned a lot from that survey. One of the things that I found

Bruce Edgelow VP, Energy Group Alberta Treasury Branch

Photo: Jeffery Borchert

Jon Tupper is currently the president of the Fort McMurray Chamber of Commerce.

A native Albertan, Tupper moved to Fort McMurray from Edmonton in 1997 for a summer job dispatching aircraft to fight forest fires. He says that he fell in love with the natural beauty of the region and the hard-working people who have built a dynamic and storied community. Through 13 years and a career spanning from aviation and transportation management to business development and public affairs, Tupper has always sought to give back to the region that welcomed and mentored him. He has volunteered with Communities in Bloom, the Northern Lights Airshow and Benefit, Leadership Wood Buffalo, the Centennial of Flight, and a variety of political organizations.

Tupper was elected a director of the Fort McMurray Chamber of Commerce in 2007, and its president in 2010. He also serves as chair of the Fort McMurray Public Library’s board of trustees.

It is Tupper’s firm belief that quality of life can be achieved through economic opportunity.

Alice Murray Stakeholder/Community Affairs Coordinator Stakeholder/Shell

interesting was that 70 per cent of respondents said that their quality of life was good to very good. Only 6 per cent said that quality of life was poor. Of 1,009 unique respondents [of a population of about 80,000], 40 per cent said that there is a sense of community in Fort McMurray, and that’s what quality of life is. One of the things they look for is more stuff to do — and not just drop-in daycare centres or spray park — essentially they want more commercial businesses.

I was interested that a majority of respondents indicated that they want to participate more in civic elections, but there are some barriers, such as accessing information about the candidates and the issues.

Energize Alberta: What does the chamber plan to do with all this information?

Jon Tupper: We’re taking all that information and turning “My Community, My Voice” into its own entity. We’re starting a multi-stakeholder partnership across the community where we will develop questions for the candidates in the upcoming civic election [this October], and disseminate that information [the answers] to citizens by essentially giving each candidate a report card.

That’s going to go out on the web, in full-page news ads and distributed to households. Accountability will be a huge thing — this strategy will be unique to this region, and I believe other chambers will copy this approach when it is successful.

Carol Howes Media Relations, Corporate Communications Encana Caroline Grover Executive Director Economic Development Alliance of Southeast Alberta David Huggill Western Canada Policy Manager Canadian Wind Energy Association (CANWEA) Evelyn Ferchuk Manager, Oil Sands Communications Canadian Association of Petroleum Producers (CAPP) Gail Poon Senior Manager, Corporate Communications Epcor Gary Redmond Executive Director Synergy Alberta Greg Gilbertson Operations Leader Energy Resources Conservation Board (ERCB) Jessica Wilkinson Public & Government Affairs Apache Canada Limited Karin Gashus Utilities Consumer Advocate Government of Alberta Kris Hodgson Senior Manager, Business Development Economic Development Lethbridge Kristie Schneider Business Development Manager, Investment & Trade Development Calgary Economic Development Kym Fawcett Manager, HSE, Regulatory & Stakeholder Relations Enerplus Resources Lynzey MacRae Public Relations Specialist Direct Energy Matthew Burns Associate Director (Calgary) University of Alberta

Michelle Chidley Event & Communications Director Small Explorers & Producer Assoc. of Canada (SEPAC) Mike Dawson President Canadian Society for Unconventional Gas (CSUG) Mike Doyle President Canadian Assoc. of Geophysical Contractors (CAGC) Mike Finn VP, Exploration Trident Exploration Corporation Nancy Malone Manager, Economic Analysis Canadian Assoc. of Oilwell Drilling Contractors (CAODC) Nicole Collard Public Affairs Specialist Penn West Energy Patricia Poulton Community & Aboriginal Relations Advisor TransCanada Scott Schreiner Director, Consultation and Communications AltaLink Sean McCarry President Sage Planning Group Ltd Stacey Ballash Executive Assistant to the President & CEO Trident Exploration Corporation Tracy Grills President Canadian Heavy Oil Association (CHOA) Tracy Heebner Business Development Officer Economic Development Alliance of Southeast Alberta Travis Davies Public Affairs Advisor, Media Relations Canadian Association of Petroleum Producers (CAPP) Trevor Williams Chair, Energy & Utilities Sector Relations Olds College - School of Business Ulrike Kucera Media Relations Officer Canadian Wind Energy Association (CANWEA)

O P T I M I Z I N G

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M-I SWACO has provided decades of service and worked with operators in Canada to improve performance and add protection at every step. Our portfolio of individual and integrated solutions is designed to make a positive impact on the productivity of each activity, enabling the most cost-efficient production of Canadian oil and gas reserves. At the same time, we help to minimize any potential impact on the habitats and communities that make up these unique environments.

At every step, M-I SWACO solutions increase efficiencies, reduce waste, maximize production and minimize environmental impact.

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10

September/October 2010 • Energize Alberta

Doing the one-minute commute Proponents of the telework movement say it reduces costs and energy use Lasia Kretzel Energize Alberta

E

very morning Christi Cruz wakes up, gets dressed and does her daily morning routine just like the rest of us. Then, anywhere between 6:30 a.m. and 8:00 a.m., she makes the one-minute commute to her office and begins checking her email.

Yes, you read that right — her oneminute commute.

From her custom home office, Cruz, a manager of community investment with Telus, is able to complete her daily work from home up to three times a week.

Cruz is one of many Albertans who are taking part in the revolutionary telework movement, where employees work from home a few days a week or completely.

“I’m working where I work the best,” Cruz says with a large smile and a laugh.

One Hot Opportunity.

Thermal heavy oil is a key part of Devon’s future and we’re working hard to significantly grow our production over the next decade. In addition to the award winning Jackfish facility and its two look alike projects, Devon is in the early stages of multiple development phases of a new program called Pike.

We have the top quality acreage position and resource base, technical track record and values-based approach to get us there, but need more great employees to help us reach our goal.

If you’re interested in joining this new and growing team, please see the Careers section at www.dvn.com.

GREAT PLACE TO WORK INSTITUTE CANADA Best Workplaces 2010 FORTUNE 100 Best Companies to Work For® 2010

www.energizealberta.com

Energize Alberta • September/October 2010

Photo: Lasia Kretzel

Christi Cruz

TWO Key Points To Ponder 1. T elework — also known as telecommuting, e-commuting, e-work or working from home — is a work arrangement in which employees enjoy flexibility in working location and hours. eletrip’s software and services deliver a set 2. T of web-based tools for designing, implementing and measuring telework benefits.

true false

Natural gas emits the same amount of smog- forming particulates as coal and oil.

3.

Abundant supplies of natural gas are available at less than half the price of a barrel of oil.

Learn more about natural gas and Encana at www.encana.com

true false

true false

4.

Natural gas produces 25 percent less CO2 emissions than oil.

8.

5.

Thirty percent of homes in Canada and the U.S. use natural gas as a source of heat.

Natural gas is more affordable than gasoline when used as a transportation fuel.

9.

North America imports almost half of the crude oil it consumes.

6.

Using natural gas instead of coal for electricity generation is less efficient.

7.

Natural gas produces 50 percent less CO2 emissions than coal.

10.

Natural gas contributed to the creation of 1 million jobs within Canada and the U.S. 4. TRUE 8. TRUE

2.

Feedback Do you see opportunities for telework in your own life? Have you had any experiences with telework? Share your story at yourenergy@energizealberta.com.

3. TRUE 7. TRUE

Canada and the U.S. have enough natural gas to last more than 100 years at current usage.

Going Broader, Deeper 1. Canadian Telework Association (www.ivc.ca/cta) 2. Transport Canada (www.tc.gc.ca)

2. FALSE 6. FALSE 10. FALSE

1.

Players On The Stage 1. Teletrips (www.teletrips.com)

TRUE FALSE TRUE

Teletrips assistance Scott Fleming, founder of Teletrips, a telework software provider, says telework gives time and money back to employees in other ways.

“It allows people to stay in their community a few extra days a week, spend more time with their families, spend more money locally, be more involved in the local community versus making that trip, generating emissions and time lost making those trips into their corporate office,” he says.

Teletrips provides software and online support for companies looking to make and manage their shift to telework. The software provides guidance and teaches companies how to effectively pilot a telework program and monitor the results both financially and socially.

Cruz says that while Telus has had employees working from home for years, the telework program was only formalized in 2006 with the help of Teletrips programming.

Jeff Lowe, vice-president of enterprise for Telus, says the program was formalized using Teletrips so the company could quantifiably monitor its energy savings.

“We’ve had people doing this flexible work style for a ties, where residents can often drive upwards of an hour to their office.

Telus currently has multiple call centre employees who work from home in rural communities. So the next time you call in for help, you may be getting someone at home.

Fleming says if companies are interested in the telework software, they should begin with a pilot program to assess their goals against their actual gains. From there, companies can begin to think about expanding the program.

“The beauty of this whole [movement] is it’s really attractive for a company’s bottom line, but the end result is we’re reducing emissions and contributing to the sustainability of our cities,” Fleming says.

1.

5.

9.

Provincially and federally funded in many instances, telework programs encourage and support companies looking to switch to home-based employees.

Working at home, according to proponents, increases employee efficiency and happiness while reducing the amount of time lost commuting to and from work.

However, it’s also helping both employees and companies save money by reducing their energy costs.

Cruz says working from home has saved her a lot of otherwise wasted gasoline money. Since she formally began working from home in 2006, Cruz says she has become more careful in her energy consumption.

More planning when visiting customers, for instance, reduces her energy use.

“Instead of driving downtown and then going somewhere else, and then driving back and then going somewhere else, I now just schedule it out so I can make a trip that’s more purposeful in my energy consumption.”

11

www.energizealberta.com

12

September/October 2010 • Energize Alberta

advertorial

Alberta is Energy is Education

The Alberta is Energy initiative educates Albertans on the value of the oil and gas industry to the province You’re never too old to learn something new. The Canadian Association of Petroleum Producers (CAPP) believes education doesn’t stop after school is finished. So along with several other like-minded organizations, they’ve launched an initiative called “Alberta is Energy.”

“What’s behind the idea is the view that as an industry we need to improve communications and engagement with Albertans,” says David Collyer, CAPP’s president.

“We’ve used the phrase, ‘You shouldn’t expect to win on the road until you can win at home,’ and I think it’s important that Albertans understand the importance of the oil and gas sector to this province and how the revenue it generates flows through to health care, education, infrastructure and all of the other services that are provided by government, as well as to the jobs and economic benefits.”

CAPP has long played a leading role in public education in the oil and gas sector. One continuing initiative has been Energy in Action, a program that provides its member companies with opportunities to sponsor and promote community educational activities.

For example, students and their teachers in Beaverlodge, Alta., gathered to plant spruce saplings along local riverbanks with municipal and Alberta government help, along with locally active oil and gas operators.

Alberta is Energy has a slightly different focus, and CAPP is just one of its sponsors. Collyer says the idea for the initiative was conceived during the period of changes in Alberta’s royalty regime — when there was a “fair www.energizealberta.com

CAPP President, David Collyer

bit of tension between industry and government and to some extent between industry and Albertans. We really felt that it was important to re-invigorate and reestablish a better and stronger relationship with Albertans.”

Alberta is Energy began with that backdrop, but Collyer thinks the relationship between the oilpatch and Albertans has strengthened. “My view is that we should look forward, not back,” he says. “I think we’ve come a long way from where we were and we need to move forward if the industry and Alberta are going to be successful together. There’s the key right there.”

Alberta is Energy is about how the energy industry is the heart of Alberta’s economy. “We are Albertans and we are energy,” opens its informative website.

Its thrust is that recognizing the contribution of oil and gas to Alberta’s economy and its communities allows Albertans to address the important relationship between a healthy, thriving industry and quality of life. “We are bakers, mechanics, salespeople,

store owners, real estate agents, rig workers, engineers, bankers, truckers and more,” says the website. “We are the people that keep Alberta moving.” As part of the message, Alberta is Energy showcases representative men and women of Alberta and their careers from all walks of life. Collyer says while the initial focus is clearly on Alberta, “we are going to be proceeding with similar initiatives in both B.C. and Saskatchewan — the same issues apply.”

In the years since the initial royalty debates, Alberta’s oil and gas industry has been facing another growing challenge: negative press, particularly over oilsands development. While the Alberta is Energy initiative is focused on the industry in general, the oilsands’ bad press can’t be ignored. “Certainly the reputational challenges arising from the environmental campaigns against the oil and gas industry and the oilsands is one of the challenges,” says Collyer. “And frankly, this is a way to reach out to Albertans and provide some information that will be helpful to them in making

their own decisions about the sector.” He adds that trying to create that line of sight between what the industry does and how it impacts Albertans is a challenge.

“For the person living in Edmonton or Peace River or Lethbridge who’s not directly engaged in the oil and gas sector, it is sometimes difficult to see how what we do impacts them and their quality of life.”

Indeed, Collyer feels that a large part of the misinformation out there is with regard to the industry’s environmental performance. “That’s not to say we don’t have the challenge of continuing to improve environmental performance — we certainly do,” he says. That ability to improve environmental performance has been demonstrated in other areas already. For example, “the sour gas business in Alberta has seen significant gains in environmental performance, which has positively impacted many people in the areas where industry operates,” he says.

Alberta is Energy addresses another misunderstood concept: competitiveness. “People have a misunderstanding at times about how profitable the industry is and how difficult the competitive environment is,” says Collyer.

“The best example of that is going back to the royalty changes where there was a view that the industry was extremely profitable and that an increase in royalties wouldn’t have much of an impact. Well, we saw what the impact was — it did impact profitability and it did impact competitiveness.”

He reckons people don’t readily appreciate that capital is very mobile — if one jurisdiction isn’t competitive, capital will migrate to another. It’s not just decision making by oil and gas companies; the financial markets do a great

job of redirecting capital to where returns are better. “That’s often misunderstood,” says Collyer.

“Shareholders and investors are quite discerning about where they put their capital.”

A common problem with industry-driven initiatives such as Alberta is Energy is a skeptical public, which often views them as industry propaganda. “There is always that risk,” allows Collyer.

“But some of the research we’ve done in support of our advertising campaign does suggest that people are listening and do appreciate the information that’s provided.”

He says a big part of countering that perception is ensuring other organizations that share common views and that have potentially less direct interest are engaged as well. Such associations include the Calgary Chamber of Commerce, the Alberta Enterprise Group and Canadian Manufacturers & Exporters. “Broadening the scope of people and organizations that are involved in the campaign is important,” he says.

“That includes government, which has a role to play. They are not always seen as being objective either, but it’s important that their voice be heard.” It’s about having a multiplicity of voices representing a balanced perspective, which acknowledges the need for improvement while emphasizing the economic benefits, he says.

CAPP is also planning initiatives to help provide school-aged kids with information about Alberta’s oil and gas sector. “We are doing a number of things on the education side — in terms of getting information in front of kids in school and in front of teachers — to hopefully also encourage a balanced perspective,” says Collyer.

To find out more about the Alberta is Energy initiative, go to www.albertaisenergy.ca/ about. Information about CAPP’s Energy in Action initiative is available at www.capp.ca/aboutUs/ events/EnergyInAction.

N

14

September/October 2010 • Energize Alberta

Continued from page 1

Oilsands champion

Preston McEachern

www.energizealberta.com

in the Athabasca River,” McEachern says.

“They said that the regulatory system is voluntary and not enforceable. I can tell you that every one of those points is patently false.”

In fact, McEachern notes that the water use relative to the total annual supply in the Athabasca River is less than one per cent and “with that, efficiency of water use has been increasing.”

Leading the charge for improvements Although McEachern believes oilsands developers are environmentally and socially responsible, there are many areas where improvements can be made — initiatives he has the opportunity to spearhead.

“Because of my knowledge in this area I sit in a perhaps enviable position of having more information and data at my fingertips than most,” he says.

To that point, McEachern was the lead author on the province’s Phase 1 Water Management Framework for the lower Athabasca River, which put in place the most protective water quantity limits “I am aware of for a large river with industrial use.”

He also initiated the Tailings Management Framework, a policy under development to push the

eventual reduction in tailings inventory with progressive reclamation.

As well, McEachern created and implemented the Comprehensive Contaminant Load Study, “which is an attempt to understand the cumulative impacts of development and the sources of contaminants in the oilsands mining area,” he says.

“I was also the lead technical author of the Muskeg River Interim Water Management Framework and the Performance Assessment Report (2009).”

McEachern recently made news in offering a public apology to two scientists who last fall published a report damning oilsands development. In presentations this spring, McEachern said the report, entitled “Does the Alberta Tar Sands Industry Pollute?

The Scientific Evidence,” contained “lies,” and that data had been removed.

The scientists, Dr. Kevin Timoney of Treeline Ecological Research, and Peter Lee of Global Forest Watch Canada, threatened legal action, and McEachern withdrew his statement.

“I have concerns with the conclusions drawn in this specific report on mercury concentrations in fish,” he says. “The manner that I showed this concern, however, deserved an apology.”

Canada’s boreal forest: 3,100,000 km 2 Canada’s oilsands: 140,200 km 2 Alberta protected areas: 90,464 km 2

Oilsands mineable area: 4,802 km 2 Mining area under development: 602 km 2 Mining area being reclaimed: 65 km 2

PERCEPTION:

The oilsands industry in Alberta is destroying a land area the size of England (approximately 130,000 square kilometres).

REALITY: The Government of Alberta says that while the oilsands does underlie approximately 140,000 square kilometres, the surface mining area is limited to a 4,800-square-kilometre region near Fort McMurray — 602 square kilometres of which has been disturbed by oilsands mining. More than 80 per cent of the oilsands resource must be recovered by drilling, with land disturbance that is 10 to 15 per cent of a similar-sized mining project, without toxic tailings ponds. These “in situ” operations do, however, cause fragmentation of the boreal forest, which challenges its ecosystems. By law, all of this land must be reclaimed post-operations.

photo: joey podlubny

Water expert In addition to his work as an American soldier during the Gulf War, McEachern has lived and worked in southwest Asia, Africa and the United States.

After completing a PhD at the University of Alberta with a focus on northern hydrology and water quality, he has been with Alberta Environment for the last nine years. He is now heavily involved in the province’s oilsands sector, with a focus on water conservation and tailings management.

Well aware that recent press and public discourse on oilsands mining has been dominated by negative views on water use, water quality, reclamation and sustainability, McEachern believes that these interdependent issues are indeed challenges in oilsands management, but “their solutions are comprehensible, approachable and are being effectively tackled.”

“One of the issues that has dominated the press with respect to oilsands mining development is water use. There was a report put out by an environmental group that went through water quantity use in oilsands mining operations and what they reported — and what the public largely perceived — is that water use from mining operations is too high relative to the supply

{ centre source: capp

“I believe there is a need for hydrocarbons, likely for the next five decades at least, and that the challenges humans must face are primarily ones of consumption.

The goal then is to make Alberta’s production the most attractive from both an environmental and social perspective,” says McEachern.

“As a veteran of the Gulf War with cousins currently in Iraq paying much more of a price than I was exposed to, this social perspective is ever present in my mind. When you compare the environmental records and accountability in Alberta to other potential suppliers, I believe we far exceed them.”

the

PERCEPTION:

Oilsands development uses so much fresh water that it is draining the Athabasca River Basin.

REALITY: According the Alberta Government, three per cent of the Athabasca River (the main water body in the province’s major oilsands region) is allocated for use, and only two per cent is allocated to oilsands operations. “In 2008, oilsands usage was 0.7 per cent of the long-term average annual flow,” says the province. The Oil Sands Developers Group says that if all mining projects that are currently planned were to go ahead, actual withdrawals from the river would grow to just over two per cent of its annual flow. In addition, the group says that water allocations are strictly controlled by Alberta Environment during low-flow periods. As for in situ or drillable projects, companies are increasingly using non-potable water for steam generation. Both types of operations recycle between 80 and 95 per cent of water used. Tailings ponds actually enable operators to use less fresh water as up to 90 per cent of process water is recycled from tailings.

O

Energize Alberta • September/October 2010

espread

An in-depth look at issues and people on the energy landscape, connecting you to new ideas and interesting Albertans.

15

}

Oilsands: perception vs. reality Non-mining facilities (ie: metal smelters and foundries, fertilizer manufacturing)

PERCEPTION:

Oilsands tailings ponds in northern Alberta could burst, causing environmental devastation and severe health problems to those downstream.

Coal mining

<1%

Source: National Pollutant Release Inventory

Non-metallic mineral mining (ie: diamond, asbestos, phosphate)

5%

REALITY: Travis Davies, spokesman for the Canadian Association of Petroleum Producers (CAPP), says the potential of a tailings pond “bursting” is not likely. “These dikes and dams are engineered and approved to the same degree that any dam would be in Alberta,” he says, adding that talking about this happening is akin to discussing whether the Bearspaw Dam / hydro plant on the Bow River near Calgary will burst. “The bottom line is that this is a very advanced construction project.”

photo: joey podlubny

7%

Oilsands mining

10%

Share of tailings waste from Canadian operations by mining industry

Metal ore mining (except iron ore) Iron ore mining

54%

25%

PERCEPTION:

Tailings ponds are unique to the oilsands mining industry.

Alaska

Alberta

REALITY: According to Environment Canada, the oilsands industry currently represents 10 per cent of mine tailings volumes in the country. The vast majority (80 per cent) of reported substances in tailings are from metal ore mines and mills (including iron ore).

Environment Canada also warns that these numbers, released in August 2010, may increase as more facilities report. There are 28 metal ore facilities that have yet to submit their data. All five oilsands mines have done so.

Saskatchewan Manitoba

Greenhouse gas emissions from coal-fired power and oilsands inHawaii North America

New Brunswick

Ontario

Washington North Dakota

Oregon Idaho

New Hampshire

Michigan Pennsylvania

Nebraska

Ohio

Iowa Illinois

Utah

150 megatonnes

Colorado

California

Kansas

50 megatonnes 10 megatonnes

New Mexico Arizona

Canadian coal-fired power plants emissions, by province, 2007

Alabama Texas

Virginia

South Carolina

Georgia

Mississippi Louisiana

Florida

Canadian oilsands and upgrader emissions, by province, 2007

PERCEPTION:

Greenhouse gas emissions from the oilsands industry are massive and out of control.

REALITY: The Alberta government reports that the oilsands sector accounted for about 15 per cent of Alberta’s emissions in 2008 (latest figures), which is equal to about 5 per cent of national emissions and less than 0.1 per cent of global emissions. The majority of provincial emissions come from coal-fired power plants. According to Jacobs Consultancy, on a life-cycle basis (sometimes called from “wells to wheels”), oilsands crude has similar emissions to other sources of oil, as the majority of emissions come from end use rather than production. As well, Jacobs reports that the emissions intensity of oilsands operations has dropped by 39 per cent since 1990. The main concern from environmental groups is not intensity, but overall growth as production increases. Alberta plans to manage a substantial portion of that growth through carbon capture and storage technology.

source: capp

U.S. coal-fired power plant emissions, by state, 2007

Oklahoma

Maryland

North Carolina

Tennessee

Arkansas

New Jersey Delaware

West Virginia

Kentucky

Missouri

Massachusetts Connecticut

Indiana

Nevada

Note: The area of each circle is proportional to each jurisdiction’s greenhouse gas emissions.

New York

Wisconsin

An Alberta oilsands operation viewed from space.

SOURCE: NASA Earth Observatory

Legend

Minnesota

South Dakota Wyoming

Nova Scotia

Maine

Montana

PERCEPTION:

Oilsands operations are unique in that they can be seen from space.

REALITY: According to space.com senior science writer Robert Roy Britt, many human constructs can be seen from space. “Shuttle astronauts can see highways, airports, dams and even large vehicles from an Earth orbit that is about 135 miles (217 kilometres) high,” he writes. “Cities are clearly distinct from surrounding countryside, and that’s true even from the higher perch of the International Space Station, which circles the planet at about 250 miles (400 kilometres) up.” www.energizealberta.com

16

September/October 2010 • Energize Alberta

Road to success

New link connects High Prairie to Peace River oilsands deborah jaremko Energize Alberta

J

ust over five kilometres of new road is set to change the future of an entire northern Alberta community, and in large part its residents have the foresight of their mayor to thank.

Rick Dumont has been a member of council for the Town of High Prairie for 12 years, and its mayor for three.

He says that one of the first initiatives he pursued as mayor was construction of a link between the town and the Peace River oilsands deposit, the province’s least developed bitumen resource area. It is an effort he continues today — when Energize Alberta caught him on the phone this summer, he was on his way to a meeting regarding a bridge on the Seal road, as it is known.

In June, the Town of High Prairie and the Municipal District of Big Lakes issued a joint press release explaining the coming benefits of a deal in which China Investment Corp. will invest $817 million in Penn West Energy’s Peace River oilsands assets.

The Seal road — in the works long before the China investment announcement — is the main reason the Town of High Prairie will benefit from the transaction.

High Prairie Mayor Rick Dumont Photo: South Peace News

“It gives us a chance to survive and be viable....

[The Seal road] means that we’re going to be a player.”

— Rick Dumont, High Prairie

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While the Peace River region unquestionably has oilsands potential, albeit small relative to the massive resources of the Athabasca region surrounding Fort McMurray and to a lesser extent the resources near Cold Lake, development thus far has been a trickle of what could be a steady major river.

At the same time Imperial Oil was developing its in situ production technologies at Cold Lake in the 1980s, Shell was doing the same at Peace River.

Other companies have also been attracted to the oilsands potential of Peace River deposits, firms that have acquired leases in hopes of future potential, including Penn West.

The Town of High Prairie — like its regional peers in the Peace Synergy Group — is keenly aware of the development that inevitably will come.

Dumont says that building the Seal road, which reduces the travel time from High Prairie to the oilsands from three hours to 45 minutes, was based on discussions with industry, but also on a bit of hope. Because of that foresight, Penn West says development will be accelerated, and Dumont says the town will emerge from its troubles on top. Drastically lower transportation costs allow High Prairie contractors to place bids more competitively.

“It gives us a chance to survive and be viable,” says Dumont, who was born and raised in High Prairie. He owns a shop in the community called Rick’s Glass. “The lumber industry here took a big hit in the last couple of years. It’s been tough here. [The Seal road] means that we’re going to be a player.”

It is clear that Dumont’s commitment to the 3,000person High Prairie community runs deep. He notes that the Penn West / China deal alone is expected to provide “a few hundred jobs,” plus spinoffs. Beyond the oilsands industry, which he says has barely scratched the surface in the region, tourism is a major prospect for economic expansion.

“I want to see the people here succeed.”

Energize Alberta • September/October 2010

17

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September/October 2010 • Energize Alberta

Should Alberta build its next coal plants underground? in situ coal gasification to produce synthetic gas (syngas) for sale to a power plant owner. Carbon dioxide (CO 2) captured from both projects would be sold for enhanced oil recovery (EOR).

Alberta and the rest of Western Canada, where there are huge reserves of coal too deep to mine.

Both the proposed Swan Hills Synfuels and Laurus projects are

proposed Swan Hills project. It was one of four projects that received funding commitments from the government’s $2-billion carbon capture and storage fund.

The company developed a demonstration project of its in situ gasification process, based on a technology developed at the Californiabased Lawrence Livermore National Laboratory in the 1960s and 1970s. That $9-million project, still operating, was funded by the former Alberta Energy Research Institute (now Alberta Innovates).

A senior official with Alberta Innovates, who was involved in a review of the Swan Hills Synfuels technology

UCG involves the gasification of coal in situ, which is achieved by drilling boreholes into the coal (instead of mining it) and injecting water/air or water/oxygen mixtures.

It is both an extraction process and a conversion process (gasification) in one step, producing synthetic gas.

being reviewed by Alberta regulatory officials. The Laurus project, which would be phased but which the company says would eventually be large enough to fuel a 300-megawatt power plant — capable of supplying electricity to a mid-sized city — has not received any government funding.

Meanwhile, the Alberta government announced last December that it had signed a letter of intent with Swan Hills Synfuels to provide funding for the

but who did not want his name to be used, says he’s “absolutely confident” the company’s technology presents no danger of groundwater contamination or other serious environmental problems.

The company plans to develop the commercialsized Sagitawah Power Project starting in 2012.

The plant, which would be in service by 2015, would operate for 40 years and produce more than 17 million gigajoules of syngas annually.

Gasifying coal underground is a hot topic around the world.

Could it be the secret to making coal climate-friendly?

Jim Bentein Energize Alberta

T

he chief executive officer of a Calgary-based company that is slated to receive $285 million from the Alberta government to develop a deep coal gasification project says problems an Australian company has run into with a similar project, where cancer-causing chemicals were found in bores on its site, will not be repeated with its $1.5-billion plant.

“We’ve been waiting for people to ask us this question [about whether the planned Swan Hills Synfuels project faces a similar potential],” says Martin Lambert.

(UCG) pilot project, located about 220 kilometres northwest of Brisbane, was shut down on July 16, and a government employee was suspended for not reporting earlier on underground water contamination problems with the plant.

The government ordered the project developer, Cougar Energy, to shut down the plant after it learned there were traces of the cancercausing chemical benzene and the toxic chemical toluene found in bores near the site.

The UCG technology that Cougar is using was developed by a Canadian company, Montreal-based

The key components of the project are the in situ gasification facility, associated pipelines and a syngas processing plant, similar to a conventional natural gas processing plant, and a power plant, to be located near Whitecourt, which would tap the syngas.

In addition, the company would capture CO2, which would be transported by pipeline to oilfields in the Swan Hills area, where there is more than four billion barrels of oil in place, for use in EOR projects.

It is estimated that the project would capture 1.3 million tonnes of CO2 emissions a year, representing 20 per cent of the Alberta government’s objective of cutting CO2 emissions by five million tonnes a year (the equivalent of taking more than 260,000 cars off the road).

In situ coal gasification The Alberta government is eyeing in situ coal gasification as a key component of a more environmentally benign fossil fuel future, with syngas and natural gas eventually replacing coal-fired power plants, the largest single source of greenhouse gas (GHG) emissions in the province.

Lambert, the chief executive of Swan Hills Synfuels, says he is aware of the Kingaroy plant shutdown in Australia but isn’t concerned about

Players On The Stage 1. Swan Hills Synfuels (www.swanhills-synfuels.com) 2. Laurus Energy (www.laurusenergy.com) 3. Ergo Exergy Technologies (www.ergoexergy.com) Going Broader, Deeper 1. Pembina Institute (www.pembina.org) “We are developing a very, very different project,” he says, adding the company has operated a pilot plant for two years in the Swan Hills area and there have been no incidents.

The Australian underground coal gasification

Ergo Exergy Technologies, with whom Cougar has a licensing agreement.

Ergo Exergy’s technology has also been licensed

by Houston-based Laurus Energy, which, like Swan Hills Synfuels, is proposing an Alberta project (in the Drayton Valley area) to use

INFORMATION ABOUT CANADA’S EMERGING ENERGY RESOURCES www.energizealberta.com

Implications for Alberta The implications of what is happening in Australia spread well beyond its borders — specifically to

Energize Alberta • September/October 2010 it affecting prospects for his company’s plant development.

“Our project operates at such depths that we are isolated from ground­-water,” says Lambert, a former chief executive officer of law firm Bennett Jones LLP. He notes the high pressure used is also a factor, as are other aspects of its process.

company proposing an in situ coal project in Alberta, along with one in Alaska and several in Texas, says the independent firm that tested underground water samples at the Kingaroy site made a mistake and the government will have to withdraw its objections.

“It’s virtually impossible for contaminants to enter the groundwater [with the

“There was no contamination, zero,” he says.

Laurus chief executive officer Rebecca McDonald says the company still believes in the Ergo Exergy technology and is planning to go ahead with its Tomahawk project in Alberta and with other in situ coal projects, calling the Australian incident “much ado about nothing.”

FOUR Key Points To Ponder

1. Proponents say in situ coal gasification, combined with carbon capture and storage, will create a new clean energy industry in Alberta.

2. Underground coal gasification is a gasification process applied to unmined coal seams,

using injection and production wells drilled from the surface, which enables the coal to be converted in situ into product gas.

3. Air or oxygen is added to the injection well and the coal ignited underground. There, the coal is partially oxidized; the gas that escapes from the production well is a mixture of syngas (carbon monoxide and hydrogen) and carbon dioxide and a little methane.

4. On the surface, the syngas can be burned in a turbine to produce electricity, while the carbon “We’re looking at a project that gasifies coal at a depth of 1,400 metres,” he explains. “The majority of UCG projects in the world operate at depths of 100–400 metres, where groundwater contamination is an issue.”

He says the Kingaroy project in Australia is operating at 300 metres, while other UGC projects in Queensland operate at 600 to 700 metres.

Lambert says the advancement of horizontal drilling technology in the oil and gas industry made the Swan Hills project possible.

“We couldn’t have done this 10 or 12 years ago,” he says. “What has made it possible are the horizontal drilling advances.”

Simon Maev, senior vice-president in charge of project development for Laurus Energy, the other

Ergo Exergy process],” says Maev. “They [the carcinogen and other toxic chemicals] could have been in the soil.”

He says drilling for the project is deep enough so that the wellbores won’t intersect with underground aquifers. Also, the technology is designed to eliminate the threat.

Ergo Exergy’s technology Michael Blinderman, chief executive officer of Ergo Exergy, blamed the Cougar plant shutdown on “hysterical media coverage” and Australian state politicians who overreacted to initial water sampling tests that were incorrect.

“The media has crucified the government for mismanagement of environmental issues and that has created a hysterical situation,” he told Energize Alberta.

She says the company has selected a site and is waiting for government approval of a demonstration project.

“We have two billion tonnes of coal at our site in Alberta,” says McDonald, who adds Laurus hopes to team up with a power plant developer.

A spokesperson for Calgary-based environmental group the Pembina Institute, which was hired last year by Laurus to assess the company’s technology — and which concluded there might be some merits in the approach — says he wasn’t surprised about the problems in Australia.

“They [developers] have to pick the right site and operate the technology properly,” says Matt McCulloch, director of corporate consulting services for Pembina.

photo: Lasia Kretzel

dioxide can be liquefied for underground storage or for use in enhanced oil recovery projects.

He says Pembina sees merit in some aspects of UCG, especially compared with surface coal mining projects — even those with a CO2 capture ability.

Surface mining projects bring with them huge problems with soil disturbance and with their overall environmental footprint, the report concluded.

UCG projects, on the other hand, usually involve minimal surface disturbance. In addition, the fact that they produce a relatively clean-burning syngas and also allow for the costeffective capture of CO2 led to Pembina taking a somewhat favourable view of the technology.

“But there are risks that need to be addressed,” McCulloch says. “A lot of those risks are site-specific.”

The Pembina report looked specifically at Ergo Exergy’s technology and not at the Swan Hills technology. The report identified groundwater contamination as the “most serious risk” with UGC technology.

“Two UGC pilots out of 34 pilots conducted in North America have resulted in groundwater contamination,” the authors of the report wrote. “These two projects required considerable remediation efforts.”

The authors concluded that widespread commercialization of the technology in Alberta would require the widescale development of expertise not now available.

Pembina concluded that electricity generation linked to UCG would result in GHG emissions 25 per cent lower than conventional coal-based electricity

Martin Lambert, chief executive officer of Swan Hills Synfuels generation, but 75 per cent higher than natural gas electricity generation.

However, the authors go on to point out that it is less costly to extract CO 2 from a UCG project than from other electricitygenerating facilities and this would actually mean an underground coal gasification project would produce fewer GHG emissions overall than a natural gas combined cycle power plant.

According to the report, UCG projects, while having surface impacts far less than mines, would still

19

have some impacts, which are likened to in situ oilsands projects.

But Pembina concluded that because there are no commercial-sized UCG operations in North America, not all risks have been quantified and it’s necessary to conduct more research.

McCulloch says UCG project developers must prove to governments and the public that the risk of groundwater contamination is minimal.

“The onus is on the developers to illustrate that the risk is zero,” he says.

Feedback What’s your opinion on underground coal gasification?

Send your comments to yourenergy@energizealberta.com

www.energizealberta.com

One stop, one voice Association provides rural Albertans with support for their electricity needs and services

21

photo: aaron parker

Energize Alberta • September/October 2010

ASHOK DUTTA Energize Alberta

R

ural Alberta has never stopped short of carving out a place for itself in the province.

Thus in the late 1940s and early 1950s, when the powers that be in Edmonton held a plebiscite on whether electric distribution lines in the rural heartland should be privately or publicly owned, by a narrow margin the die was cast in favour of the former.

The move came at a time when other provinces in Canada decided to go down the publicly owned route.

But rural Alberta’s decision to swim against the tide did eventually result in the formation of rural electrification associations (REAs).

It was probably economics and the desire to take matters into their own hands that were at the heart of such a decision.

“Small communities — particularly individual farmers — got together, put up the money and built and owned the distribution systems,” says Al Nagel, chief executive officer of the Alberta Federation of Rural Electrification Associations (AFREA), the umbrella organization that today represents 42 REAs with over 33,000 electrical taps (also called services) into farms and rural residences. “The initial agreement was for distribution companies in the area to provide the operations and maintenance services. But in the 1980s some REAs decided to become self-operating and wanted their own equipment and manpower. Today, seven of the REAs are self-operating.”

In the 1960s, there were 383 REAs in Alberta, set up as small electric distribution utility wire-owners under the Co-operative Associations Act. However, primarily through an amalgamation process that figure has come down drastically since to 42.

For example, “today’s Battle River REA in reality represents 24 previous electrification associations,” says Nagel, who was an operations administrative superintendent at the Battle River REA for two years before joining AFREA in 2008. Prior to that, he spent 39 years with Canadian Utilities, Alberta Power and ATCO Electric, working as

a lineman, senior serviceman, assistant district manager, operations superintendent and maintenance superintendent.

One voice According to Nagel, the main mission of AFREA is to promote the economic welfare and value of its members by providing representation to the government and industry stakeholders with one voice. A good deal of emphasis is also laid on remaining vibrant and innovative.

“Two major issues in the rural electricity industry are transmission capacity and landowner access. More often than not, our members are also directly affected by the actual infrastructure in place.”

Over the coming six months AFREA will focus its attention on the rollout of smart grid AMI (advanced metering infrastructure) — planned under the Provincial Energy Strategy — and the transmission lines to be constructed under Bill 50 or the Electric Statutes Amendment Act of 2009.

A smart grid is defined as a system that delivers electricity using a two-way digital technology to control appliances at consumers’ homes to save energy, reduce cost, and increase reliability and transparency. It overlays the power distribution grid with an information and net metering system.

“Smart grid is a good concept and we do not oppose it. But the element we are against is AMI with hourly readings. Our opposition is due to the cost involved with such a facility, as there was no business case presented,” Nagel says.

On the smart grid initiative, general manager of the Battle River REA Colleen Musselman says, “Alberta is a province [that embraces] technology and the smart grid is a global initiative. From environmental and efficiency perspectives there are several benefits.”

She also favours the transmission lines project under Bill 50, stating: “The province has grown dramatically and

for several years the system has not been upgraded. We need to support the initiative and make it happen.”

Nagel says the transmission project is at a design stage and decisions are also being made about routing for the lines.

“This will affect some of our members and we will work with the government to address the issues,” he says.

Whatever may be the future role of AFREA, one thing is certain: over the years the umbrella association has emerged as a strong rural voice and will use everything in its power to ensure its opinion is heard loud and clear.

“Our goal is to ensure all our REAs get fair representation and are successful irrespective of their size. As a co-operative…our vision is always to work with the industry,” Nagel says.

Advocate’s Corner A column by Karin Gashus

• Note the length of time the contract will be in effect.

• Know the early-exit fee you may be required to pay if you cancel the contract before the end of term. These vary from retailer to retailer.

• Review the special terms and conditions. These are unique to each offering.

karin gashus Utilities Consumer Advocate

B

etween May and July, three former energy contract salespeople were convicted of signing homeowners to contracts without their consent. What happened?

In these cases, they contacted homeowners as potential customers to sell electricity and natural gas contracts and obtained enough detail to produce contracts. They then forged the signatures of the homeowners. There are also other cases where consumers tell us salespeople have misrepresented who they were or misrepresented what the actual billed electricity or gas rate would be.

It’s important that Albertans know what questions to ask salespeople, and what information to obtain before signing a contract. Here’s a checklist that will help consumers get started.

• A sk for identification. The company must be licensed by the Alberta government.

Our website, www.ucahelps.gov.ab.ca, lists the licensed retailers.

• A sk for the price you will pay for each unit of energy so you can compare it with other options.

• If a deposit is required, check how it will be calculated, when you will be notified about the amount and whether you can cancel the contract if you do not want to pay the deposit.

• Ensure you know what happens to your contract if you move.

We get a lot of calls from consumers who were unaware of their cancellation rights.

A contract can be cancelled for any reason within 10 calendar days from when the marketer gets a signed copy. A consumer who commits to a contract over the telephone may cancel the contract up to 60 days after the first billing statement is received from the new retailer.

The Energy Marketing Regulation requires that energy retailers must provide the “Your Energy Contract” folder with energy contracts. The folder provides even more information on buying electricity and natural gas, so take the time to review it carefully. Our mediation team works closely with the government’s Consumer Services branch to connect consumers who wish to report salespeople in violation of the Energy Marketing Regulation.

If you have concerns or feel you’ve been treated unfairly: Call 310-4UCA (4822), or to compare your options, visit www.ucahelps.gov.ab.ca. www.energizealberta.com

22

September/October 2010 • Energize Alberta

Continued from page 7

“I wouldn’t wish this on anybody” Wilson says other doctors just don’t have all the information they need about the disease, and often become frustrated with patients they can’t diagnose. “Finally they tell you it’s all in your head. Well, how do I make my liver or lymph nodes swell?”

Paul’s parents say they have dealt with medical professionals with a wide range of knowledge on Lyme disease.

Says Rick: “We’ve hit all phases of doctors — from ones that say there’s no such thing as Lyme disease in Canada to others that say, ‘I know there’s Lyme disease,’ but they’re not going to treat it because they’re scared of losing their licence, to anywhere in between, including ones who say they don’t know a lot about Lyme disease, ‘So you’re best where you are.’”

Players On The Stage 1. Canadian Lyme Disease Foundation (www.canlyme.com) The foundation’s website has more information on symptoms, diagnosis and treatment.

Going Broader, Deeper 1. Learn more about the 2008 documentary, Under Our Skin, at www.underourskin.com.

2. Lyme Action Group (www.lymeactiongroup.blogspot.com) Paul flies from Calgary to Seattle to see a doctor and receive treatment. Almost all of that doctor’s practice is devoted to treating Lyme disease patients, with a large number travelling there from Canada’s western provinces.

“I went down with Paul in June,” says Mary. “They commented at customs at 8 a.m. that we were the third ones from Calgary going through for treatments. This is wrong.

Lyme disease is real. It is in Canada. It has to be at a place where the doctors know to look for it, know to test for it, know how to treat it. That’s where it should be.”

List five: Oil and gas industry awareness…recovery Paul’s job was to optimize flow at gas plants and substations. He was out in the field a lot, but that describes thousands of people in the oilpatch. Paul’s parents aren’t sure where he caught Lyme disease, and are quick to point out that besides his work in the patch, he is also a hunter, fisherman and quadder.

And while they don’t blame his employer, they do believe that oil and gas companies should increase their awareness of the disease.

“Health and safety is critical in the oilpatch,” says Rick. “People lose their jobs if they don’t follow protocols.

But I’m not sure there’d be a health and safety manual anywhere that might deal with ticks. Maybe it’s just a one-pager in a manual that says what to do if you’re ever bitten by a tick.”

Wilson agrees that education is the key. “And you don’t need to do that with fear-mongering. People don’t need to stay indoors, they just need the information.”

Stacey Ballash, an executive assistant who has worked in the oil and gas industry for over 16 years, says Lyme disease is “not on the radar at all” in the oilpatch.

“All the companies I’ve been at have excellent safety handbooks and excellent safety coordinators, yet not one has ever mentioned Lyme disease,” she says. “It’s very

worrisome, because of the number of field workers out there compared to office workers; it’s a 10:1 ratio. They’re the sweat, blood and tears of the company — and we need to take care of our people, and they don’t know because we don’t know.”

As for Paul, his parents say he’s on the right road, but recovery has been slow and he’s had many tough days. He tried to go back to work part-time but was still too sick.

“He’s having more good days now,” says Mary, “but I wouldn’t wish this on anybody. It’s horrible, horrible, horrible.”

Your Feedback Email yourenergy@energizealberta.com to let us know what you think about Lyme disease in the oilpatch.

Source of Energy or Source of Controversy?

Alberta’s oil sands represent the second largest oil reserves in the world. Some say they are the key to North America’s energy future. Others think development is unnecessary. But what do you know about Alberta’s oil sands?

Take the quiz and find out.

Test your Energy IQ at www.centreflow.ca/energy-iq

www.energizealberta.com

Energize Alberta • September/October 2010

Smaller is better

Micro-generation gets a boost with Enmax program Jim Bentein Energize Alberta

M

ore than two-and-ahalf years after Alberta government announced it would streamline the application process for power consumers wanting to add solar power, small wind and other small-scale power generation to their houses or businesses, less than 200 Albertans have taken advantage of the change.

province-wide program in 2011 with the goal of having 8,300 solar photovoltaic systems (also called solar PV, which converts solar radiation into electricity) and 700 micro– wind turbines operating by 2016.

Enmax, owned by the City of Calgary, is launching the program through subsidiary Enmax Energy, which is one of Canada’s largest electricity retailers.

says the company would likely have launched its program even without the government’s move to streamline the application process for micro-generation, since the company reached the conclusion that the biggest barrier to widespread adoption of micro-generation was the cost of the systems.

“We’re trying to make it much more affordable for people to install their

TWO Key Points To Ponder

1. In January 2009, the Alberta government implemented a micro-generation regulation

that makes it easier for Albertans to generate green electricity to power their own home, farm or business.

2. Micro-generation could play a key role in Canada’s efforts to reduce carbon dioxide output by promoting energy efficiency, conservation and renewable energy.

energizealberta.com

But that apparent apathy may soon end, thanks to the announcement in mid-June that Calgary-based Enmax would launch a new

The subsidiary is allowed to offer the new service province-wide.

Helen Bremner, vicepresident of smart grid technologies with Enmax,

own home-based generation,” she says.

Enmax has done so by offering customers 15-year leases for solar and wind systems, while also

assuming the responsibility of maintenance of the equipment.

“Outright purchase of these technologies can still be cost prohibitive and is not an option for everyone,” says Gary Holden, president and chief executive officer of Enmax. “We anticipate that the customer’s cost of renting the equipment will be partially offset by the savings of not purchasing 100 per cent of their power from the grid.

It’s a made-in-Alberta solution to deliver solar [and wind] power to Albertans.”

Working together Enmax is partnering with the Climate Change and Emissions Management Corporation (CCEMC), which is providing $14.5 million in funding to help launch the program.

Aside from the revenue Enmax will generate through the lease of the systems (no estimate is being given at this time), the company stands to benefit through the planned purchase of greenhouse gas (GHG) credits customers using the renewable power might gain.

23

Colin Dumais has installed a solar PV system on the roof of his house.

“We’re working with the Ministry of Environment on that aspect of the program,” says Bremner.

At the end of the fiveyear program the company is anticipating the cost of solar panels and small wind systems will have dropped enough and the program will be so successful that it can be funded without any further assistance from CCEMC or another outside agency.

Bremner says the cost of installing solar panels

in an average 2,000- to 2,500-square-foot home would be about $8,000 and the cost of installing a micro–wind system would be about $10,000 to $15,000.

An average solar system would be 1.2 kilowatts (kW), providing about 1,800 to 2,000 kilowatt-hours (kWh) of power in a year, about 20–30 per cent of average annual consumption. A micro–wind system could provide up to 40 per ❯❯ continued on page 24

Visit energizealberta.com to view additional web content, including stories and polls, as well as to provide feedback on articles you’ve read in this edition of Energize Alberta.

GEt involvEd!

Where energy, the economy, and the environment intersect.

www.energizealberta.com

24

September/October 2010 • Energize Alberta

Continued from page 23

Smaller is better cent of the power needed by a consumer.

She says Enmax will work with small businesses throughout the province to set up an installation and maintenance network.

“This complements traditional services offered

by HVAC [heating, ventilation and air conditioning] firms,” she says.

since they take up a good amount of space and are more suitable for acreages or farms. So far most of the interest has come from Calgary and Edmonton, but the company hasn’t yet promoted the program province-wide.

Enmax has been running a pilot micro-generation program for the last two

Players On The Stage 1. Enmax (www.enmax.com) 2. Alberta Utilities Commission (www.auc.ab.ca) 3. FortisAlberta (www.fortisalberta.com) Going Broader, Deeper 1. World Alliance for Decentralized Energy Canada (www.wadecanada.ca) Bremner, who joined Enmax a year ago after working in New Zealand for 14 years with a firm that specialized in renewables, says the company anticipates most of the demand for the wind systems will come from rural Alberta,

years and already has about 50 customers, mostly company employees. About 35 of the systems are solar and the others are small wind.

She says the company believes once it has installed several thousand systems it will be able to

bring down the costs of installations because of “economies of scale.” Also, solar PV and small wind technology is improving rapidly and costs are dropping.

Micro-generation regulations The official charged with overseeing the provincial gover nment ’s m icro generation program says the Enmax initiative should create more interest in it.

“It certainly will increase the number of micro-generators,” says Rob Thomas, director of regulatory policy for the Alberta Utilities Commission (AUC), which oversees connections to the power grid in the province and determines if applicants qualify as micro-generators.

In Alberta, micro-generation is defined as the generation of electricity from a generating unit that

is connected to the distribution system, exclusively uses renewable or alternative energy sources to generate electric energy, and is intended to meet all or a portion of the customer’s electricity needs.

There are two categories of micro-generation: less than 150 kW in generation capacity (small), and greater than 150 kW, but less than one megawatt (MW) in generation capacity (large). Owners of electric distribution systems were expected to provide connection services for small microgenerators no later than Jan. 1, 2009.

Thomas says only about 180 Albertans have applied under the streamlined micro-generation application process. However, prior to that there were only about 20 microgenerators throughout the entire province.

The micro-generation move was wrongly interpreted by some as an opportunity to make a buck by selling excess power into the grid (as has happened in Ontario). However, he says that is not the intent.

“What you are generating in power has to meet your own load,” explains Thomas. “People get confused and think it’s an opportunity to sell power into the grid, but that wasn’t the intent.”

He says it’s possible for some self-generators to do that, but the application process is more complex “and they’ll have to put up some money.”

Thomas says the Alberta Department of Energy has determined that when there are 300 micro-generation sites in the province or 25 MW in total of micro-generation it will assess the program “to see if it needs tweaking.”

Owners of electric distribution systems in the province were required to start providing connection services to micro-generators starting in January 2009.

That means utilities such as FortisAlberta, which distributes power to about 480,000 customers

province-wide, have been providing the service.

Gary Snow, distributed generation analyst with the Fortis subsidiary, says it now has about 70 micro-generators.

He says many of those customers have installed micro-wind. The company’s territory covers mostly rural Alberta, with its largest urban area of coverage being Airdrie.

Urban areas are rarely wind-friendly, but he points out that the City of Calgary has amended its bylaws to make it easier for urban residents to install small wind systems.

He says microgenerators who produce surplus power in a given month (which might happen with wind systems) would get a credit for the excess power that month, which would be reflected in their subsequent electricity bills. Snow says most systems customers are installing generate less than five kilowatts.

Your Feedback Are you interested in micro-generation for your own home or farm? Send your comments to yourenergy@energizealberta.com.

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Energize Alberta • September/October 2010

Going off the grid Colin Dumais touts the benefits of a net-zero home Jim Bentein Energize Alberta

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f Colin Dumais has his way he and his family will soon be living in a net-zero energy house — one that consumes no power from Alberta’s electricity grid and uses no natural gas for heating.

The house, located south of Okotoks, Alta., is already virtually power self-reliant, thanks to the net-zero construction Dumais used when he built it four years ago, as well as the micro– wind system he is leasing from his employer, Calgarybased utility Enmax, and the solar photovoltaic (PV) system.

And the 39-year-old father of two plans to reach the point where all of his heat and power are “distributed,” meaning he will tap no outside sources.

“I’m going to install a solar thermal system later this year,” says Dumais,

a technology specialist with Enmax, who spends his days at work studying different renewable and energy-efficiency systems and concepts. “Solar thermal is more energy efficient than solar PV. I should be able to heat the whole house with it.”

The solar thermal system will be connected to a radiant heating system, which will extend throughout the 1,800-square-foot house.

The solar PV system, which Enmax is allowing him to use on a test basis, only provides a portion of the total power in the house. The micro–wind turbine, which he leases from the company for $50 a month, provides the bulk of the electricity needed in the house. He also has equipped his home with energy-efficient appliances, LED (light-emitting diode)

lighting and other products that reduce power consumption.

A passionate believer in renewable energy and a “low-carbon future,” Dumais says his company’s microgeneration leasing program is a logical way to extend the benefits of renewable systems like solar PV and micro-wind throughout the province. However, he says becoming self-sufficient in electricity isn’t a stretch, especially with the vast improvements that are being made in microgeneration technologies.

“Electricity isn’t difficult [to move away from a centralized utility-reliant model],” he says. “Heat is the hard thing because 80 per cent of the energy you use in your home is for heating.”

Dumais, who studied both engineering and geology at university, says

there’s a good reason there hasn’t been a lot of concentration on tapping solar thermal and other renewable sources for heat.

“Natural gas has been so cheap and the heating infrastructure for gas is in place,” notes Dumais.

However, he says it’s neither costly nor complicated to become self-sufficient in heating.

Passive homes Dumais’ shift in thinking began with his decision to follow the example of “passive houses” — homes that require much less heating than normal because they are so well insulated and constructed with building materials that hold heat.

The first passive house in Canada — and one of the first in the world — was built in Regina in the 1970s.

“It’s still there and you can go and see it,” he says.

“It’s known throughout the world as the first lowenergy house.” The home has a ventilation system that allows for the recovery of heat, which is recycled.

It inspired a movement in Europe, where 20,000

passive houses have since been built. But that movement has languished in Canada, where it received its inspiration.

Instead, the trend in Canada has been towards achieving LEED (Leadership in Energy and Environmental Design) status, which comprises several measures of sustainability, including using recycled building materials, certain types of sustainable landscaping and other aspects Dumais argues are the equivalent of greenwashing — nice to have but not important in Canada’s climate.

He was the general contractor for his house, which he says ended up costing about the same as a “normal stick-built house” that lacks the super-insulated thermal envelope and air-tight design his home includes. Yet it has far in excess of the average energy efficiency of an Alberta home.

“The Alberta Building Code allows for a new home to be an R-11 [a rating of building envelope efficiency],” Dumais says.

His house eclipses R-50.

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The result is that his average heating costs are one-quarter of what it would normally cost to heat a home the size of the Dumais residence, which is designed to look like a railway station. When his solar thermal system kicks in that monthly cost will drop to zero, while his electricity bills will be marginal.

What Dumais doesn’t understand is why more new homes aren’t built the same way, especially since the inspiration for the passive house began in Canada.

He’s hoping a relatively new organization called Passive Buildings Canada (www.passivebuildings.ca), which is promoting energyefficient design for houses and other buildings through sponsoring the training of builders and other steps, will be able to take Canada back to its past — and into its future.

READ MORE: Visit energizealberta.com to read the story of how Tina Baker is using solar energy to power her home.

Where energy, the economy, and the environment intersect.

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To advertise in the next issue of Energize Alberta, please contact Rhonda Helmeczi P: 403.516.3475 E: rhelmeczi@energizealberta.com

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26 advertorial

Spot Power aims to put money back

“in your own pocket” What are you paying for electricity? Check out the Utility Consumer Advocate’s website. Visit www.ucahelps.gov.ab.ca to see who is offering the best price.

buy electricity at lower prices than the government’s regulated rate option. We simply modified the back office systems we originally built for the large industrial and REA clients,” Clark says.

When the government first deregulated electricity in Alberta, it envisioned a number of new retailers, such as Spot Power, rushing to the market and offering consumers new products and services, plus lower competitive prices. Unfortunately, that hasn’t happen until now. Introducing www.SpotPower.net, a boutique retailer of electricity. Spot Power quietly entered the consumer retail market last year and is now selling electricity to customers all over Alberta. If you want to save some money on your monthly electricity bill, check out Spot Power.

The company’s floating rate is below 6 cents per kilowatt-hour, on average. Its one-year fixed rate is 6.5 cents, and the two-year rate is 6.8 cents.

Why are their prices lower? They buy directly off the power pool at wholesale costs, and add 1 cent. “If you can save hundreds of dollars over the years, wouldn’t you rather have the extra money in your own pocket, rather than sending it to the utility company?” adds Clark.

Competition is good for consumers. It is the driving force behind innovation and increased customer choice. And consumers should ultimately expect to benefit from lower prices and value-added services. Over the last 10 years, the retailing of electricity has been dominated by the major municipal utilities. Due to the complexities of the Alberta market, new retailers were loath to rush in. In addition, there were major barriers to entry. Costs and risks were far too high.

Unfortunately, it meant that most consumers in Alberta were left with few real choices.

Now there’s a made-in-Alberta solution. The UTILITYnet Group, a privately owned company with its head office in Calgary, has been providing electricity billing and energy management software solutions to the oil and gas industry, plus self-retailers, for over 30 years. As a billing agent, the UTILITYnet Group provides a wide range of services, including preparing thousands upon thousands of electricity invoices for the farming co-operatives that the rural electrification associations (REAs) all over the province send out to their members each month.

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There is a breath of fresh air in the wind. Spot Power is going to give your old utility a run for their money. What does Spot Power offer? Not only the lowest prices for electricity in Alberta, but also: no deposit, no penalty charge if a customer wants to cancel the contract, lower monthly administration fees, paperless billing, Internet banking and great customer service. In June, Spot Power introduced its first fixed-term prices — with no penalty to switch off the plan.

In this article, we are pleased to spotlight the first of what hopefully will be many new retailers showing a renewed interest in the Alberta market. “Coming soon in the Canmore-Banff area is another new retailer called Bow Valley Power — watch for it! And later this fall, we know of two or three more small independent retailers entering the market,” says Clark. “The competitive market is about to heat up.”

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1

Energize Alberta • September/October 2010

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Rethink Alberta Anti-oilsands advertising campaign may harm tourism

Viewing an anti-oilsands advertising campaign may have a “devastating” impact on the willingness of American and British tourists to visit Alberta, a new poll suggests. The Rethink Alberta campaign, launched in July and supported by U.S. environmental group Corporate Ethics, targets the oilsands and urges people to avoid visiting the province.

Each edition of Energize Alberta contains a listing of 10 topical energy stories — key trends, events, and initiatives — that are shaping the province’s energy future.

2

Renovalia to invest $200 million in a new wind farm

Renovalia Energy, an international renewable power developer based in Spain, says it plans to spend $200 million to build a new wind farm in Alberta.

Located 40 kilometres south of Medicine Hat, the Peace Butte wind farm’s 60 turbines will generate 120 megawatts of total capacity. Construction is expected to start in the first quarter of 2011, with the facility operating at the end of next year, although the project first needs to be approved by the Alberta Utilities Commission.

5

Why it matters? International companies believe Alberta has great potential for more wind development. Power output from the Peace Butte wind farm represents the annual electricity consumption of 88,000 homes.

Direct…and to the point

Centrica subsidiary acquires Suncor assets

Direct Energy, the Canadian subsidiary of British gas utility Centrica, will acquire the Wildcat Hills natural gas assets of Suncor Energy in a $375-million cash deal, the company announced in August. Located about 35 kilometres northwest of Calgary, the Wildcat Hills assets include 97 producing wells, infrastructure and 42,000 net acres of undeveloped land. Direct Energy has been active in Western Canada since 2000. Before the deal, the company had about 4,500 producing gas wells in Alberta.

Why it matters? Although a gas producer, Direct Energy is also a retailer of electricity in Canada and the United States, generating power mainly from gas-fired plants. Company executives said the Wildcat Hills acquisition may not be its last in Western Canada, given the company’s ongoing needs for natural gas.

8

Commercial lighting program to reduce greenhouse gas emissions

A new commercial lighting incentive program will give business owners some bright ideas to boost energy efficiency. Under a $4-million pilot program, Albertans who operate restaurants, offices, warehouses and other businesses are eligible for a provincial rebate of between $37,500 and $375,000. The program (www.lightitright.ca) will continue until Dec. 31, 2011, or until funding is exhausted.

Why it matters? Lighting accounts for approximately 50 per cent of Alberta businesses’ annual electricity use. The program aims to reduce 191,000 tonnes of greenhouse gas emissions, the equivalent of taking approximately 40,000 cars off the road by 2020.

3

A stained reputation

Wind warming

Bright idea

Why it matters? An Angus Reid poll suggests the campaign’s billboards and YouTube video makes an impression on those who see it. Before watching the ad materials, 54 per cent of Britons and 49 per cent of Americans said they would consider visiting the province. After viewing the ad, those numbers plunged to 24 per cent and 26 per cent, respectively. The poll also surveyed Canadians, and found that while 36 per cent of Ontario residents consider the ad “fair,” only 5 per cent of Albertans do. Sixty per cent of Albertans found it offensive, twice the national rate.

Michigan spill sullies pipeliners’ reputation An Enbridge pipeline in Michigan suffered a break in late July, with more than 800,000 gallons spewing into a river — one of the biggest pipeline spills in U.S. history. The spill cast doubts on the safety of aging pipeline networks across North America.

Why it matters? There is growing opposition to new oilsands pipelines that would take Alberta’s crude to Canada’s West Coast or the U.S. Gulf Coast. The Michigan spill provided fresh ammunition to opponents of these new pipelines, who used the spill as evidence that pipelines pose serious threats, particularly when they cross fragile ecosystems or water bodies.

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4

Electric response The Electric Statutes Amendment Act, 2009 (formerly Bill 50), gives the Alberta government the responsibility for approving the need for critical transmission infrastructure.

No decisions have been made as to where new transmission infrastructure will be located, the government says, although landowners along proposed routes will have the right to be heard by the Alberta Utilities Commission (AUC) during public sitting hearings.

Why it matters? At the hearings, the AUC will determine the specific route for transmission lines or locations for substations.

The government says landowners’ issues will be heard and taken into account, and affected landowners will receive fair compensation.

Tailings headway Suncor, Shell making strides with tailings management

Shell Canada announced in August the start-up of a field demonstration project to manage its tailings.

The technology involves using a large barge to collect mature fine tailings (MFT) — the denser tailings that have settled to the bottom of tailings ponds — and transferring them to a drying area. The MFT are then mixed with chemical agents known as flocculants to bring the fine clay particles in the MFT together — and placed on a sloped surface to help speed up the release of water from the clay. Meanwhile, Suncor plans to spend approximately $450 million in 2010 to implement its new technology, called TRO (tailings reduction operations), which uses a proprietary dewatering process that will more rapidly turn fluid tailings ponds into solid landscapes suitable for reclamation.

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Spending increase 2010 budgets now total $44 billion

With continued high oil prices and drilling success in several new plays, oil and gas producers have hiked capital spending plans for this year to $44 billion, according to records on 95 producers that have announced spending plans. The $44 billion represents a 36 per cent leap from $32.3 billion in actual capital spending (excluding acquisitions) by these 95 same companies in 2009, when almost all producers severely chopped spending in the wake of the worldwide recession, credit crisis and much lower commodity prices.

Why it matters? Increased capital spending by oil and gas producers directly translates into more business — and jobs — for Albertans.

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Why it matters? Both Shell and Suncor say their new technologies will significantly reduce the time it takes to reclaim oilsands mines.

Government asks for input on transmission line routing

Rebound year

Land sales and drilling stats continue to rise

By the end of August, Alberta had generated $1.52 billion in land-sale revenue.

At the same point last year, $181.49 million had rolled into government coffers. Drilling statistics are also on the rise. Through to the end of July (latest figures available), oil and gas companies have drilled 3,919 wells in Alberta, up 29 per cent from 3,028 to the end of July 2009.

Why it matters? Money from land sales helps pay for government programs, while higher drilling activity in Alberta boosts employment levels across the province.

Regional plan Alberta seeks feedback on vision for Lower Athabasca

A regional plan for the Lower Athabasca region in northeastern Alberta, including the oilsands, could go to the provincial cabinet in the first quarter of 2011. The government is currently seeking public input the report, which recommends that 60 per cent (55,900 square kilometres) of the Lower Athabasca be designated mixed-use resource (with industrial).

Of that, no more than 15 per cent, or 8,385 square kilometres, should be disturbed for oilsands extraction at any one time, it says. At present, oilsands mining occupies about 600 square kilometres in the entire Lower Athabasca. Albertans can participate in an online survey regarding the plan until Oct. 8 (www.landuse.alberta.ca).

Why it matters? The Lower Athabasca plan is the first of seven regional plans to be developed under Alberta’s land-use framework. The region is expected to grow in the future to meet rising worldwide demand for resources. If bitumen production reaches six million barrels per day, the population could grow to up to 303,000 by 2045, driven by substantial migration to the area and supplemented by a large-scale shadow workforce. In 2007, the population was 125,747.

www.energizealberta.com

“ I GREW UP ON A FARM. I KNOW WHAT IT MEANS TO HAVE THE LAND RESTORED.” Getting a forest started is the critical part of reclaiming the land. For years, at oil sands drilling locations, we started the process by planting grass, and it would take 10 to 20 years for the trees to emerge from the natural seed bank. Recently, drawing on research from the University of Alberta, we learned how to create conditions that allow us to plant aspen, spruce and pine seedlings right away. So now, the forest can re-establish itself in a few years, rather than a few decades.

Finding innovative ways to limit environmental impacts is key to meeting our energy needs responsibly.

Get the real story at capp.ca/oilsands

Garrett Brown ConocoPhillips

A message from Canada’s Oil Sands Producers The Canadian Association of Petroleum Producers (CAPP) represents member companies that produce approximately 90 per cent of Canada’s natural gas and crude oil, including Canada’s Oil Sands Producers.