Effect of Diluted Bitumen on Freshwater Environment: Comparison with Conventional Crude February 4, 2015

2 2 AI-EES Mandate and Goal “……research, innovation and technology implementation arm of the Government of Alberta ministries in energy and environment” Develop solutions for the key technical challenges facing Alberta’s energy, environment and water sectors

3 AI-EES Strategic Focus Energy Technologies Energy Technologies Advanced Recovery Partial Upgrading Value Added Water & Environmental Management Water & Environmental Management Water Resources Water Use CEP Tailings Reclamation Land Management GHG Capture/Utilization Renewable & Emerging Technologies Renewable & Emerging Technologies Renewables Waste-to-Energy Green the Grid Market Access Sustainable production Climate change Social Licence

Effect of Diluted Bitumen on Transmission Pipelines 4

5 5 Effect of Diluted Bitumen on Freshwater Environment, Compared with Conventional Crude: AI-EES’s Objectives Understand the fate and behavior of diluted bitumen in freshwater environment compared to conventional crudes Understand the environmental impacts of diluted bitumen in freshwater environment compared to conventional crudes Inform policy makers and regulators to effectively prepare for emergency and response in case of diluted bitumen spills

6 6 Effect of Diluted Bitumen on Freshwater Environment: AI-EES Approach (Foci) 1.Compositional Comparison 1.Compositional Comparison 3. Lab Testing: Biological 3. Lab Testing: Biological 2. Lab Testing: Chemi-physical 4. Spill Case Comparisons Insight and Understanding

Compositional Comparison 10 diluted bitumen compared with 25 conventional crudes, all from the Western Canadian Sedimentary Basin (WCSB) Actual QA data over 5 years, over 8,000 data points All data comes from Conventional crudes: light, medium, & heavy Dilluted bitumen: Dilbit: bitumen + diluent Synbit: bitumen + synthetic sweet crude (SCO) Dilsynbit: synbit + diluent

1. Compositional Comparison: ID of the Crudes Diluted Bitumen DB1Access Western Blend DB2Borealis Heavy Blend DB3Christina Dilbit Blend DB4Cold Lake DB5Kearl Lake DB6Western Canadian Select DB7Statoil Cheecham Synbit DB8Surmont Heavy Blend DB9Synbit Blend DB10Albian Heavy Synthetic LC1BC Light LC2Boundary Lake LC3Gibson Light Sour LC4Koch Alberta LC5Moose Jaw Tops LC6Pembina Light Sour LC7Light Sour Blend LC8Mixed Sweet Blend LC9Rainbow MC1Hardisty Light MC2Medium Gibson Sour MC3Midale MC4Peace Pipe Sour MC5Medium Sour Blend HC1Bow River North HC2Bow River South HC3Fosterton HC4Lloyd Blend HC5Lloyd Kerrobert HC6Seal Heavy HC7Smiley-Coleville HC8Wabasca Heavy HC9Western Canadian Blend HC10Conventional Heavy HC11Premium Conventional Heavy Conventional Heavy Conventional Medium Conventional Light 8

Compositional Comparison: Properties Compared Density and API Gravity Benzene, Toluene, Ethyl benzene, Xylene (BTEX) Sulphur and Total Acid Number (TAN) Metals: Nickel and Vanadium

1. Compositional Comparison: Density Density of diluted bitumen is higher than those of conventional light and medium but similar to that of conventional heavy 10

1. Compositional Comparison: Gravity API gravity of diluted bitumen is lower than those of conventional light and medium but similar to that of conventional heavy 11

1. Compositional Comparison: Benzene Benzene content in diluted bitumen is generally lower than those in conventional light and medium and similar to that in conventional heavy 12

1.Compositional Comparison: Toluene Toluene content in diluted bitumen is generally lower than those in conventional light and medium and similar to that in conventional heavy 13

1. Compositional Comparison: Ethylbenzene Ethylbenzene content in diluted bitumen is generally lower than those in conventional light and medium and similar to that in conventional heavy 14

1. Compositional Comparison: Xylene Xylene content in diluted bitumen is generally lower than those in conventional light and medium and similar to that in conventional heavy 15

1. Compositional Comparison: Sulphur Sulphur content of diluted bitumen is higher than those of conventional light and medium but similar to that of conventional heavy 16

1. Compositional Comparison: Total Acid Number (TAN) TAN of diluted bitumen is generally higher than those in conventional crudes but in the similar range for conventional heavy 17

1. Compositional Comparison Nickel Nickel content in diluted bitumen is generally higher than those in conventional light and medium, and similar to that in conventional heavy 18

1. Compositional Comparison: Vanadium Vanadium content in diluted bitumen is generally higher than those in conventional light and medium, and similar to that in conventional heavy 19

1. Compositional Comparison: Summary and Implication Summary of ObservationImplication Density and API gravity of diluted bitumen are similar to conventional heavy; density is less than Diluted bitumen will stay afloat in freshwater before weathering and/or contacted by sediments BTEX contents in diluted bitumen are generally lower than in conventional light and medium and similar to those in conventional heavy Diluted bitumen may have less health hazard to emergency response workers and residents around a spill, and lower acute toxicity to aquatic life than a conventional crude spill Sulphur and TAN contents in diluted bitumen are generally higher than those in conventional crudes but in the similar range for conventional heavy More organic acids would dissolve into water from diluted bitumen than from conventional light and medium, but similar to conventional heavy Nickel and vanadium contents in diluted bitumen are generally higher than those in conventional light and medium, and similar to that in conventional heavy More nickel and vanadium would dissolve into water from diluted bitumen than from conventional light and medium, but similar to conventional heavy 20

Effect of Diluted Bitumen on Freshwater Environment: AI-EES Approach (Foci) 1.Compositional Comparison 1.Compositional Comparison 3. Lab Testing: Biological 3. Lab Testing: Biological 2. Lab Testing: Chemi-physical 4. Spill Case Comparisons Insight and Understanding 21

Crudes used for testing: Cold Lake dilbit winter blend (CLWB) and a conventional light, Alberta Sweet Blend (ASB) Water and sediment sources: North Saskatchewan river in Edmonton, Alberta 2. Chemi-Physical Lab Testing 2.1 Evaporative weathering (Dr. Harvey Yarranton, University of Calgary, UofC), submitted to Journal of Canadian Petroleum Technology. 2.2 Low energy weathering in “fish tanks” (Alberta Innovates Technology Futures, AITF), being finalized. 2.3 High energy weathering (Dr. Heather Dettman, CanmetEnergy), in progress. 22

2.1 Evaporative Weathering (UofC) Dilbit film thickness, 1.6 – 5.4 mm, with or without water at base 7 cm diameter dishes Temperature: °C Duration: most for 10 days, up to 60 days 23

2.1 Evaporative Weathering (UofC) Dilbit evaporation in 10 days: less than 20% (diluent in CLWB is 30%) Evaporative weathering of dilbit is slower than commonly assumed Dilbit Light Crude Evaporation as function of temperature and time 24

2.1 Evaporative Weathering (UofC) Density changes in dilbit and light crude are relatively small in weathering Density of dilbit never reached in 10 days Dilbit experienced 500 times increase in viscosity in 10 days Density and Viscosity Changes during Weathering Density Viscosity 25

Evaporative Weathering (UofC): Key Observations and Implications Evaporative weathering of dilbit is much slower than conventional light crude  Lower health hazards About 1/3 diluent remains in dilbit after 10 days; density of dilbit approaches kg/m3 in 60 days at 60⁰C  In absence of sediments, dilbit can stay afloat for days Dilbit experienced 500 times increase in viscosity in 10 days  dilbit recovery should be less difficult than light crude recovery before submerge or sinking

2.2 Low Energy Weathering (AITF) Running time: 10 days for each run Temperature: 15°C Video recorded Vapor and water compositions monitored Tank Dimensions Length: cm Width: 58.4 cm Height: 59.7 cm Dilbit or Light Oil Surface area: cm2 Layer thickness: 5.0 mm Volume: 3.5 litres Tank Dimensions Length: cm Width: 58.4 cm Height: 59.7 cm Dilbit or Light Oil Surface area: cm2 Layer thickness: 5.0 mm Volume: 3.5 litres Run Condition Air circulation Water circulation Sediments 1Stagnant 0 LPM2 GPMNo 2Dynamic40 LPM9 GPMNo 3Dynamic40 LPM9 GPMYes 27

Low Energy Weathering (AITF) Condition 1: Stagnant Light Crude Oil - Day 1 Dilbit - Day 10Dilbit - Day 1 Light Crude Oil - Day 10

Low Energy Weathering (AITF) Condition 2: Dynamic, no sediments Light Crude Oil - Day 1 Dilbit - Day 10 Dilbit - Day 1 Light Crude Oil - Day 10

Low Energy Weathering (AITF) Condition 3: Dynamic, with sediments Dilbit - Day 10 Dilbit - Day 1 Light Crude Oil - Day 1 Light Crude Oil - Day 10

2.2 Low Energy Weathering (AITF): Summary Submerged oil not observed under the studied low-energy condition Adding sediments did promote settling of conventional crude and dilbit; more oil was found in the sediments exposed to conventional crude (0.19% oil) than that to dilbit (0.08% oil) Dissolved hydrocarbon is higher in water in contact with dilbit than that in contact with conventional crude  In low energy environment, no significant difference in behavior between dilbit and conventional light crude 31

32 Effect of Diluted Bitumen on Freshwater Environment: AI-EES Approach (Foci) 1.Compositional Comparison 1.Compositional Comparison 3. Lab Testing: Biological 3. Lab Testing: Biological 2. Lab Testing: Chemi-physical 4. Spill Case Comparisons Insight and Understanding

33 Crudes used for testing: Cold Lake dilbit (CLWB), a conventional light, Alberta Sweet Blend (ASB), and a conventional medium, Medium Sour Blend 3. Biological Lab Testing (UofA and UofL): in progress 3.1 Toxicity assessment of dilbit in comparison to conventional crudes (Dr. Keith Tierney, UofA), in progress 3.2 Riparian vegetation (Dr. Steward Rood, UofL), completed, manuscript being prepared

34 4. Spill Case Comparison: in progress Marshall, Michigan vs. Red Deer River, Alberta Dilbit vs. conventional crude Both took place in early summer with high flow Submerged dilbit/oil found in both cases Gaseous hydrocarbon (BTEX) was found problematic for both emergency Martin Bundred, Consequence Manager of the Alberta Environment Support and Emergency Response Team (ASERT)

Effect of Diluted Bitumen on Freshwater Environment: Key Learning to Date Diluted bitumen will stay afloat in freshwater, before contacted by sediments, for at least 10 days and likely much longer. No submerged oil or dilbit have been observed when no contact with sediments. When contacted, both conventional light oil and dilbit will be adsorbed on sediments in low-energy environment Health hazard to emergency response workers and residents around a diluted bitumen spill would be less or at least no worse than that from a conventional crude spill More organic acids would dissolve into water from diluted bitumen than from conventional light and medium, but similar to conventional heavy Dilbit experienced 500 times increase in viscosity in 10 days. This should make dilbit recovery easier than light crude recovery Current understanding indicates that emergency response procedures for conventional oil spills should be sufficient for dilbit spills. 35

36 Acknowledgements Vicki Lightbown and Dr. Brett Purdy, AI-EES Dr. Heather Dettman, CanmetEnergy Dr. Harvey Yarranton, University of Calgary Gerard Morrison and Harry Tsaprailis, AITF Amar Bokhari, Alberta Energy Martin Bundred, Alberta Environment and Sustainable Resource Development Dr. Keith Tierney, University of Alberta Dr. Stew Rood, University of Lethbridge Dr. Bruce Hollebone, Environment Canada

37 Contact John Zhou, Ph.D., P.Geol. Executive Director, Water and Environmental Management Alberta Innovates Energy and Environment Solutions (AI-EES) (O)

Evaporative Weathering (UofC) Diluent evaporation will only reach completion (30% in CLWB) in 60 days at 60°C Evaporation as function of temperature and time

Evaporative Weathering (UofC) Evaporative Weathering with/without Water at the Base: Little Effect

High Energy Weathering (CanmetEnergy) Dr. Heath Dettman, Senior Chemist, CanmetEnergy