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INDUSTRY CONDITIONS

State of California is now considering different compliance manner and protect resources from contamination and

pathways for regulated parties.
over-use. The framework aims to ensure timely
detection of key changes to indicators and describes

International Regulations
the management response that will be initiated if
Phase III (2008-2012) of the European Union Emissions triggers or limits, including site-specific measures, are

Trading Scheme (EU ETS), which is applicable until 2020, reached or exceeded.
impacts Suncor’s non-operated offshore assets in the U.K.

and Norway sectors of the North Sea. The EU ETS requires Reclamation and Tailings
that member countries set emissions limits for installations In February 2009, the Energy Resources Conservation Board

in their country covered by the scheme and assigns such (ERCB), now the Alberta Energy Regulator or AER, of
installations an emissions cap. Installations may meet their Alberta released Directive 74 Tailings Performance Criteria

cap by reducing emissions or by buying allowances from and Requirements for Oil Sands Mining Schemes. The
other participants. Phase III will include a transition from directive establishes performance criteria for tailings

gratis allocation to auctioning allowances.
operations and requirements for the approval, monitoring
and reporting of tailings ponds and plans. Suncor’s new

Land Use
tailings management strategy – TROTM – was approved by
In 2012, the Government of Alberta approved the LARP, the ERCB in June 2010. Suncor’s mine plan is designed to

which covers land-use restrictions in the Lower Athabasca facilitate the implementation of TROTM by providing space
region of Alberta, which includes leases in Suncor’s Oil for the drying of tailings and ensuring adequate storage
capacity for tailings from the Millennium and North
Sands segment. The LARP, developed as part of the
Land-Use Framework (LUF) under the Alberta Land Steepbank areas. Syncrude’s tailings management plan was
approved by the ERCB in 2010 and incorporates a multi-
Stewardship Act, identifies new conservation areas, as well
as management frameworks to ensure the continued pronged approach that includes freshwater capping,
composite tailings technology (accelerates water from
regional quality of air, surface water and groundwater. The
new conservation areas do not overlap any of Suncor’s tailings with additives), and the separation of water and
leases. The management frameworks formalize a number tailings through the use of centrifuges.

of regulatory tools that are already used by the The Government of Alberta also has in place the Mine
government to manage environmental aspects of oil sands
Financial Security Program (MFSP), which holds oil sands
development, including the use of environmental miners responsible for all aspects of the remediation and
cumulative effects management on a regional scale, and
surface reclamation work at their mine sites, and for the
may require Suncor to have greater participation in the custody of the site until a reclamation certificate has been
evaluation of environmental issues. The frameworks include
issued by the government. The MFSP requires a base
the following:
amount of security for each project in the form of letters

• Air quality. The framework is designed to maintain of credit, which would provide the funds necessary to
flexibility and to manage cumulative effects of safely secure the site. Suncor is in compliance with the

development on air quality within the region, setting MFSP. Additional security may be required under other
triggers and limits for nitrogen dioxide (NO) and conditions, such as failure to meet current reclamation
2
sulphur dioxide (SO2). The framework includes ambient plans, or when the estimated remaining production life of
air quality triggers and limits. Regulatory actions will the mine reaches certain levels; however, Suncor has not

occur when triggers or limits are reached or exceeded.
been required to provide any additional security. The MFSP
has been designed by the Government of Alberta to
• Surface water quality. The framework builds on, but
does not replace, existing provincial legislation and include a periodic review of the program to ensure it is
functioning properly and provide early warning of any
policy on water quality, and provides a framework in
which to monitor and manage long-term, cumulative potential risks.

changes in water quality within the Lower Athabasca
River. The framework includes quality limits and triggers Hydraulic Fracturing
Hydraulic fracturing is the process of pumping a fluid or a
for various indicators, based on existing Alberta,
Canadian Council of Ministers of the Environment, gas under pressure down a well, which causes the
surrounding rock to crack or fracture. The fluid, typically
Health Canada and U.S. EPA guidelines. Regulatory
actions will occur when triggers or limits are reached
consisting of water, sand, chemicals and other additives,
flows into the cracks where the sand remains to keep the
or exceeded.
cracks open and allow natural gas or liquids to be
• Groundwater. The framework aims to manage recovered. Fracturing fluids are produced back to the
non-saline groundwater resources in a sustainable
surface through the wellbore and are stored for reuse or

64 SUNCOR ENERGY INC. ANNUAL INFORMATION FORM 2014