Second large oil sands project in Alberta conditionally approved

The Alberta Energy and Utilities Board and the Canadian Environmental Assessment Agency have approved the Jackpine oil sands project subject to 19 conditions. <br>
A joint review panel of the two government organizations issued a final report on the project to the proponents, Shell Canada, on February 5. <br>
Jackpine is located 70 kilometres north of Fort McMurray, 10 kilometres east of Fort McKay. Plans are to build an oil sands mine, bitumen extraction plant, cogeneration plant and water pipeline, for an estimated cost of $2 billion. The mine is expected to be in full production in 2010 and to last 22 years. It will produce 31,800 cubic metres, or 200,000 barrels of bitumen product per day.<br> The joint board also approved the nearby $8 billion Horizon oil sands project at the end of January.<br>
Among the conditions that Shell must satisfy at Jackpine are that it must prove the tailings disposal area and surge facility are adequate and minimize their environmental impact. It must also limit site-wide solvent losses to not more than 4 volumes per 1000 volumes of bitumen produced. <br>
Engineering design plans and operating plans must be submitted two years prior to start up.<br>