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Environment committee  The communication about the project is a joint responsibility between the operator, EnCana, and the provincial regulatory authority, Saskatchewan Industry and Resources.

May 15th, 2007Committee meeting

Dave Hassan

Environment committee  I would agree with Mark. The provincial regulations in place in Alberta and Saskatchewan, and with which I'm familiar, are very competent, very sound in terms of regulating the oil and gas industry, which includes injection of CO2. I think those regulations are sound. They could

May 15th, 2007Committee meeting

Dave Hassan

Environment committee  Weyburn is a town of around 10,000 people. That area is primarily agricultural, such as ranching and grain. We employ about 120 people working on the project directly.

May 15th, 2007Committee meeting

Dave Hassan

Environment committee  Yes. Before the project was launched, as part of the provincial regulatory process, there was an extensive public review and public consultation process.

May 15th, 2007Committee meeting

Dave Hassan

Environment committee  I think EnCana has generally been planning around the $15-a-tonne cost. That's the scenario we're using.

May 15th, 2007Committee meeting

Dave Hassan

Environment committee  No, actually, I was going to say that the Alberta Geological Survey, Stefan Bachu, has done an inventory of carbon capture and storage options all through Canada and has worked with the U.S. Department of Energy on a North American study, which was just released by the Department

May 15th, 2007Committee meeting

Dave Hassan

Environment committee  The $1.3 billion investment is not just for capture; it's for an enhanced oil recovery operation. With that $1.3 billion we'll be recovering an extra 155 million barrels of oil, so that will help offset the cost. A lot of the cost is related to oil production facilities, but duri

May 15th, 2007Committee meeting

Dave Hassan

Environment committee  Yes, CO2 dissolves in water. In fact, many of us have a favourite carbonated beverage that contains CO2 dissolved in water, and when you open the cap on the bottle, those bubbles of CO2 come out. At the IEA Weyburn project the researchers concluded that the pressure from the CO2

May 15th, 2007Committee meeting

Dave Hassan

Environment committee  I'm quoting a study that was done by the International Energy Agency in 2003. They estimated transport costs at $1 to $5 U.S. per tonne per 100 kilometres, and $1 to $2 U.S. per tonne for the injection part of it. The big part of the cost is the capture part, getting the concentr

May 15th, 2007Committee meeting

Dave Hassan

Environment committee  I can't really give you direct costs. The investments in the project total about $1.3 billion to store 30 million tonnes of CO2. You could divide that and do the math. The Weyburn project did receive some incentives to proceed. It had a reduced royalty rate from the Province of

May 15th, 2007Committee meeting

Dave Hassan

Environment committee  The price at Weyburn is quite favourable in terms of industrial sources. It's comparable to the prices that enhanced oil recovery operators in the U.S. pay for CO2.

May 15th, 2007Committee meeting

Dave Hassan

Environment committee  Weyburn compares favourably to that.

May 15th, 2007Committee meeting

Dave Hassan

Environment committee  As I think I mentioned earlier, the Weyburn project took advantage of an existing purer CO2 stream, so we didn't have to do that capture component that's at $25 to $50 a tonne. Essentially, all we had to do was pay for compression of pipeline to bring the CO2 from North Dakota to

May 15th, 2007Committee meeting

Dave Hassan

Environment committee  So the extra energy involved with compressing the CO2? We estimate that it's about a third of the total CO2 stored.

May 15th, 2007Committee meeting

Dave Hassan

Environment committee  Yes. You reduce the efficiency of storage by roughly a third.

May 15th, 2007Committee meeting

Dave Hassan