Oil Sands Watch | Pembina Institute

 

Alberta’s ask-questions-later oil sands strategy not working

I had a little bit of U.S.-envy as I read an article describing a delay by our neighbours to the south in leasing land for natural gas production while the greenhouse gas implications of the decision were considered. I was envious because Alberta doesn't follow any such process for oil sands development.

Lands here are leased with no environmental assessment or public input. And that's not working out so well for Albertans. Without any land-use planning, Alberta has leased out 84,000 square kilometres (an area the size of Scotland) to oil sands development. Trying to complete land-use planning after the fact is very challenging. Alberta’s tenure regime limits the government’s ability to effectively manage development because it is not informed by a land-use plan, it includes no credible environmental assessment and it provides no opportunity for public input or comment.

It’s been three years since we highlighted the need for input and review prior to leasing land in our report, Haste Makes Waste: The Need for a New Oil Sands Tenure Regime. Unfortunately, the Government of Alberta has not responded.

Alberta has leased 84,000 square kilometres of land with no environmental assessment. This wouldn't be legal on U.S. federal lands.We identified six key problems with Alberta’s oil sands tenure process:

  1. A narrow policy objective of maximizing oil sands development and revenue.
  2. The absence of environmental objectives or a land-use framework to guide tenure decisions.
  3. A failure to consider environmental impacts when granting oil sands rights.
  4. Inadequate opportunity for public input into decisions to grant oil sands rights.
  5. Lack of consideration of the public interest in decisions to grant oil sands rights.
  6. Incentives and requirements that increase development pressure in the absence of cumulative environmental assessment.

Alberta is giving away rights to the land without questioning what’s going to happen with it.

Compare this to the case I read about this week where oil and gas lease sales covering 370 square kilometres in Montana, North Dakota and South Dakota — scheduled for April 13 — were delayed pending environmental reviews on possible greenhouse gas emissions.

The U.S. actually requires many steps of environmental review before granting a lease. The U.S. Bureau of Land Management, one of the organizations responsible for granting lease applications, is mandated to follow a review process outlined in the National Environmental Policy Act (NEPA). That means that decisions on lease sales are made with a better understanding of environmental implications.

While the U.S. approaches its decision to grant oil and gas leases in an informed manner, here in Alberta we’re walking in with our eyes wide shut. It’s the root of many of the current problems in the oil sands.

Steve McKechnie — Apr 24, 2010 - 09:18 AM MT

Where do the people of Alberta fit in? While individuals acting in the public's best intrest create the Contracts with the Developers, shouldn't the people who own and are responsible for the land have access to those Contract's? For example, the exact amount of money that is in trust to guarantee land reclaimation.

Government of Alberta — Apr 22, 2010 - 05:00 PM MT

No development can take place on the lease until after the environmental impact assessment is done. No assessment, no development.
- David Sands, Government of Alberta

Marc Huot — Apr 23, 2010 - 03:04 PM MT

Hello David, Thank you for your response. Unfortunately, your statement is not accurate. As described in detail in our Report ‘Haste Makes Waste’ (pages 21 to 27), once a lease is purchased, oil sands companies are required to conduct substantial on site exploration including cutting of geophysical seismic lines and drilling of exploration wells. This results in significant land fragmentation and disturbance prior to any environmental assessment being conducted. So, for example, the leasing process is contributing to continued loss of habitat for threatened woodland caribou. This exploration is completed before the environmental assessment and before the project is approved. In fact, as this disturbance occurs before the environmental assessment, it is not even considered during the application process. Additionally, in Alberta we have never seen an oil sands project turned down at the application stage. For this reason, prior to granting of leases is really the only viable opportunity to consider whether a project should or should not be developed. From this perspective, it would make much more sense to incorporate the environmental assessment and public involvement in these earlier stages prior to companies sinking millions of dollars into exploration and project planning. -Marc

c.sale — Apr 22, 2010 - 12:10 PM MT

Thanks for that, Marc.

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