Responsible Oil.Responsible Actions,

Natural greenery thrives in Alberta’s carefully prepared oil sands reclamation areas, like this one near Fort McMurray.

Oil sands are

deposits of bitumen

(thick, heavy crude

oil) mixed with sand

and clay. Alberta’s

oil sands rank

among the world’s largest resources of oil.

169.9 billion barrels of oil and can be recovered

using current technology and under current

economic conditions, which is enough to meet

Canada’s demand for almost 400 years. Canada

supplies 1.97 million barrels of oil per day to our

U.S. neighbours, of which 1.6 million barrels per

day come from Alberta. This makes Canada the

largest oil supplier to the U.S.

What are the oil sands?

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The Government of Alberta’s 20-year strategic plan for the oil sands ensures that this extraordinary resource will provide secure, reliable energy to North America and beyond for decades to come, by balancing the environmental, social and economic impacts of oil sands development.

In response to the world’s growing energy demand, over

$2 trillion estimated investments, reinvestments and revenues

will come from new oil sands projects by 2035, according

to analysis by the Canadian Energy Research Institute. The

economic benefits of this investment are felt across Canada

and the U.S. However, rapid oil sands development in recent

years has generated challenges and growth pressures.

Responsible Actions: A Plan for Alberta’s Oil Sands is the

Government of Alberta’s 20-year strategic plan to balance

development with environmental protection, social responsibility,

and economic success. The plan establishes six concrete

strategies to support responsible oil sands development.

Over 50 projects and initiatives are reflected in the strategic

plan. Many have already made significant progress. The

strategic plan is closely linked with Alberta’s Energy Strategy

and the Land-use Framework.

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Where are the oil sands?

The oil sands exist in three large deposits beneath 140,200 square

kilometres of northern Alberta. About three per cent of that area

contains oil sands deposits so shallow that they can be mined from

the surface. The much larger area contains deeper oil sands that

are known as “in situ” resources, which can be recovered through

drilling technology.

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The Government of Alberta is committed to a sustainable clean energy

future. Achieving that commitment means using all of the province’s energy

resources, renewable and non-renewable. This requires improving the way

fossil fuels are developed and used. The initiatives of Strategy One focus on

critical environmental issues such as addressing the cumulative effects of oil

sands development, enhancing land reclamation, promoting carbon capture

and storage, maintaining biodiversity and reducing greenhouse gas emissions.

Some accomplishments so far:

• $2 billion for carbon capture and storage: To reduce the impacts

of industrial greenhouse gas emissions and meet the goals of Alberta’s

Climate Change Strategy, $2 billion in funding has been committed for

carbon capture and storage, funding four commercial-scale breakthrough

projects.

• Tougher rules on tailings ponds: The new Tailings Management

Framework now in development aims to minimize the storage of

fluid tailings in ponds, to optimize water management and to reclaim

existing tailings ponds more quickly. Stringent new tailings management

regulations were released in 2009, in order to reduce the inventory of fluid

tailings at oil sands mining operations.

• Comprehensive land-use plan: The Land-use Framework is a

new approach to managing Alberta’s land and natural resources. The

framework’s first draft regional plan, developed for an area of northeast

Alberta known as the Lower Athabasca, was released in April of 2011.

The plan’s outcomes balance development, cumulative environmental

impacts, conservation and human needs, and includes proposals to

establish conservation, recreation and tourism areas and establish limits

and triggers for air, water, land and biodiversity.

Strategy one

Develop Alberta’s oil sands in an environmentally responsible way.

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Development of the oil sands provides employment opportunities throughout

Alberta and across Canada. In order to plan for and sustain growth in northern

Alberta, additional focus is needed on further developing healthy and safe

communities in which to live, work and play. The initiatives in Strategy Two

focus on communities and managing the pressures on infrastructure and

essential services that come with a rapidly growing population.

Some accomplishments so far:

• Easing housing pressures in Fort McMurray: The

Government of Alberta is investing $166 million to support

the development of more housing in the Fort McMurray

area through the new Parsons Creek community. Parsons

Creek will be home to an estimated 24,000 residents in

8,000 homes when completed. Approximately 1,000 of

the homes will be affordable housing.

• Plan for infrastructure: A Comprehensive Regional Infrastructure

Sustainability Plan (CRISP) for the Athabasca Oil Sands Area was

released in 2011. The CRISP establishes a long-term blueprint for future

infrastructure development. CRISPs for the Cold Lake and Peace River Oil

Sands Areas are also under development.

• Securing teachers for the region: The Northern Student Teacher

Bursary Program provides funding to post-secondary students who will,

upon graduation, teach in one of Alberta’s northern school jurisdictions.

• Strengthening worker safety: A workplace health and safety plan

includes updated compliance and enforcement procedures and more

occupational health and safety officers on the ground.

Strategy two

Promote healthy communities and a quality of life that attracts and retains individuals, families and businesses.

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The oil sands are key to Alberta’s future economic prosperity. By

balancing the economic opportunities with proactive responses to the

associated environmental, social and infrastructure challenges, we are

working to optimize oil sands development. The goal of Strategy Three

is to maximize long-term economic returns from this globally-significant

energy resource.

Some accomplishments so far:

• Adding value to bitumen: Economic initiatives are encouraging

the oil sands industry to add value to raw hydrocarbon resources

in Alberta, diversifying the provincial economy, increasing Alberta

resource revenues and creating jobs in the province. The Government

of Alberta is engaging in processes to strategically use its bitumen,

received in lieu of cash royalty, within Alberta as well as investigating

ways to diversify markets for Alberta’s oil.

• Enhanced regulatory system: The Regulatory Enhancement

Project is implementing recommendations to better integrate the

oil and gas policy and regulatory system. Integration of regulatory

responsibilities presents an opportunity to enhance energy sector

regulation based on the principles of effectiveness, efficiency,

adaptability, predictability, fairness and transparency.

• Better labour force planning: The Government of Alberta

has developed tools to forecast future labour shortages

more effectively and assist with labour force planning. The

Government is also partnering with Aboriginal communities

to provide training, career and employment development for

Aboriginal people.

Strategy three

Maximize long-term value for all Albertans through economic growth, stability and resource optimization.

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Strategy Four focuses on proactive approaches for consulting, building

understanding and further strengthening relationships with Aboriginal

communities around oil sands development and sustainable community

growth. Consulting on oil sands development, particularly those aspects

that have the potential to adversely impact the constitutionally protected

rights of First Nations, and reconciling those interests are essential to

achieving the provincial vision for oil sands development.

Some accomplishments so far:

• Forward-looking consultation: Alberta’s First Nations Consultation

Policy on Land Management and Resource Development is

undergoing a scheduled review. The review is to update Alberta’s

consultation policies to create more certainty in the resource

development process, while respecting Treaty rights, meeting legal

obligations, and creating a more confident business environment. The

review process includes gathering input from First Nations, industry

and municipalities.

• Mapping initiative: The Government of Alberta is working with First

Nations to better understand where communities currently practice

Treaty rights through the development of a Geo Data Mapping

Initiative. It will serve as a tool to guide and inform the consultation

process.

Strategy four

Strengthen our proactive approach to Aboriginal consultation with a view to reconciling interests.

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Alberta is leading research and innovation to improve the

efficiency and sustainability of oil sands development, while

also continuing to develop renewable and alternative forms

of energy.

The initiatives under Strategy five are intended to increase

long-term, stable investments in research, promote world-

class innovation, leverage technology to address oil sands

development and proactively manage environmental

challenges in order to secure a clean energy future.

Some accomplishments so far:

• Launch of Alberta Innovates: In 2010, the

Government of Alberta reconfigured provincially

funded research and innovation into a system called

Alberta Innovates. Alberta Innovates is nurturing

partnerships with industry and post-secondary

institutions.

• Support for promising environmental technology:

Through Alberta Innovates and other programs, the

Government of Alberta collaborates with research

and technology providers to find ways to reduce

greenhouse gas emissions and other environmental

impacts from oil sands development. The Government

supports oil sands-related recovery, upgrading and

environmental technology initiatives, including funding

for carbon capture and storage.

Strategy five

Maximize research and innovation to further support sustainable development and unlock the deposit’s potential.

Over the next five years, more money

($6.1 billion) will be invested in climate

friendly technology in Alberta than all the

other Canadian provinces combined.

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Strategy Six is intended to ensure accountability for the successful,

long-term management of the oil sands resource through consistent

measurement, monitoring and increased communication.

Some accomplishments so far:

• Better availability of statistics and data: Through Alberta’s Office

of Statistics and Information, the Government of Alberta is providing

more consistent, transparent and cost-effective public access to

statistics. Evidence-based information on topics that impact oil sands

development such as Aboriginal issues, water quality, and labour and

population information is now available.

• On-line geospatial information: GeoDiscover Alberta is a

web-based, one-window approach for the sharing of geospatial

information that can be used to better manage activities on the

landscape and enhance land and resource stewardship.

Strategy six

Increase available information, develop measurement systems and enhance accountability in the management of the oil sands.

Operators are required to provide

a variety of environmental monitoring

data, including groundwater and

surface water, to regulators.

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Achieving this 20-year plan for Alberta’s oil sands is critical not only to Albertans, but to our fellow North Americans. We all benefit from a secure and reliable domestic oil supply that comes from a jurisdiction with strong environmental regulations in place, both economically and as energy consumers.

More information about Responsible Actions, as well as annual progress reports and an implementation plan, are available at www.treasuryboard.alberta.ca.

JUNE 7, 2011

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Fireweed, native to Alberta, is one of the first plants to inhabit reclaimed areas.