Environment Committee on May 12th, 2009

[Thomas Gradek]

We've been developing this technology for 14 years. We did some validation tests at CANMET in 2002, 2003 and 2004 with SNC Lavalin, the University of Alberta and others, and the results were conclusive. That encouraged us to continue, to involve oil sands operators in a pilot project to take the next step. That's where we stand today.

[Christian Ouellet, Bloc, Brome—Missisquoi, QC]

You are developing a pilot project?

[Thomas Gradek]

Exactly. We've reached an agreement with one operator. We're going to develop a project and they will be taking part in a test protocol this fall.

[Christian Ouellet, Bloc, Brome—Missisquoi, QC]

So, starting in the fall, we'll be able to know whether your method works really well?

[Thomas Gradek]

We'll be able to know whether the engineering was well designed by people like those at SNC Lavalin.

[Christian Ouellet, Bloc, Brome—Missisquoi, QC]

Yes, all right. You say you're reducing the quantity of methane, but by how much?

[Thomas Gradek]

The methane source in the tailings ponds consists of organics. We're talking about bitumen and naphtha, which are lost during the processes. If you remove the organics, in this case the hydrocarbons, there's nothing to digest, no biodegradation; it's comparable to a sand pit.

[Christian Ouellet, Bloc, Brome—Missisquoi, QC]

Do you use water?

[Thomas Gradek]

We don't use any water; we use the product that is to be processed. We take the product; we add beads. This is a technology based on the laws of nature; it's basic. The hydrocarbons migrate onto the beads. They stay there and there is no [Inaudible—Editor]. They can stay there for months, years; no [Inaudible—Editor] occurs. They're unprocessable. After that it's a matter of management.

[Christian Ouellet, Bloc, Brome—Missisquoi, QC]

And the sand falls off?

[Thomas Gradek]

The sand falls off and it's clean.

[Christian Ouellet, Bloc, Brome—Missisquoi, QC]

It falls off.

[Thomas Gradek]

Yes.

[Christian Ouellet, Bloc, Brome—Missisquoi, QC]

That's fantastic.

[Thomas Gradek]

In one hour, the jar that was slightly grey will be clear. The solution is simple. You don't have to think too hard. If we apply the laws of nature at our convenience and for our good, we can do anything. The technology is there. You simply have to be interested in doing it.

[Christian Ouellet, Bloc, Brome—Missisquoi, QC]

Is it an expensive technology? Perhaps that's why it hasn't been used.

[Thomas Gradek]

We've indicated that this technology ultimately costs nothing: no cost.

[Christian Ouellet, Bloc, Brome—Missisquoi, QC]

People work in mines—

[Thomas Gradek]

That's their primary operation. The volumes for processing are enormous. This is engineering that is now becoming what's called material handling, the handling of sand, water and everything else. We have to prove that we have a really reliable and robust process to manage all these products, these components.

[Christian Ouellet, Bloc, Brome—Missisquoi, QC]

Is this ultimately sweet crude that you're making?

[Thomas Gradek]

No, it's bitumen. It's simply an attraction site. The beads, in simple terms, are like a big velcro strap to which the hydrocarbon adheres on contact and sticks.

[Christian Ouellet, Bloc, Brome—Missisquoi, QC]

The purpose is to separate the sand from the bitumen. So, at that point, the bitumen could be transported by pipeline. The bitumen is done; you don't need to do anything else.

[Thomas Gradek]

Exactly.

[Christian Ouellet, Bloc, Brome—Missisquoi, QC]

It doesn't change the extraction, but rather the way of extracting the sand from—

[Thomas Gradek]

After the operation, the waste is cleaned. That's the objective.