EUB Decision 2007-061 : West Energy Ltd., applications for well licences, Pembina Field

West Energy Ltd. applied to the Alberta Energy and Utilities Board for licences to drill two level-2 sour crude oil wells to obtain crude oil from the Nisku Formation, about 3 km east of the Hamlet of Rocky Rapids, Alberta. Both wells are expected to contain 160 moles per kilomole hydrogen sulfide (H2S). The expected cumulative H2S release rate for the drilling and completion phases of the wells is 2.5 m3/s, while for suspended and producing phases it is 0.44 m3/s. Objections were received from 124 intervening parties who expressed concerns regarding health and safety, flaring, air quality, proliferation, emergency response planning, contamination of land and animals, and compensation. A public hearing was held in March 2007 to hear the views of the Board, the interested parties and the interveners. The Board considered various issues, including communication and participant involvement; need and timing of the wells; location of the wells; safety; human and livestock health; property values; and, environmental impacts. Having reviewed the evidence, the Board granted conditional approval for West Energy Ltd. to drill 2 sour crude oil wells near Rocky Rapids. The EUB imposed 10 conditions on West Energy Ltd. that will address public concerns raised during the 11-day hearing. With the conditions, the Board considers these wells to represent a low level of risk when failure probability, mitigating measures and enhanced emergency response plans are taken into account. 2 tabs., 1 fig., 4 appendices