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View Report - SocialFunds.com

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Responsible energy

Responsible energy development means minimizing our impact on precious water, air and land resources. environmental performance Wherever lands are disturbed by development, Suncor pursues progressive reclamation efforts, including reclaiming tailings ponds. To date, Suncor has reclaimed 1,000 hectares of land. We begin the reclamation process as soon as operations are completed. Reclaimed overburden storage area at Suncor’s oil sands facility. We are conducting large-scale tests of new technologies to further accelerate reclamation efforts. Water Suncor reduced its absolute water use by 22 percent over the past six years. Many of the gains were made at our oil sands facility. In 2008, we used 3.1 cubic metres of water to produce one cubic metre of oil—a 37 percent reduction in water use intensity since 2002. Suncor realized these savings through increased reuse and recycling—in particular, improved mine tailings operations, which enabled increased recycling and reduced water makeup for tailings. Approximately 90 percent of the water used to make steam at our in situ operation is recycled through a continuous loop system, eliminating the need for fresh surface or ground water. All of the make-up water is taken from oil sands wastewater systems. Suncor’s licensed withdrawal from the Athabasca River accounts for approximately 0.3 percent of the average river flow and about one percent during low-flow (i.e. in winter). In 2008, Suncor signed an interim agreement with three other operating oil sands companies to ensure we met new government restrictions on water withdrawal during winter months. Suncor releases water back to the Athabasca River on a regular basis. Our plan is to manage wastewater discharges to meet or exceed regulatory water quality standards. No tailings waters are discharged. Suncor recently adopted a 10-year water management plan designed to recycle and reuse larger amounts of wastewater and tailings water, reducing our need to Suncor Energy Inc. 6 environmental performance

Environmental stewardship and responsible development make good business sense. We are working hard to reduce the amount of water and natural gas we use, limit the level of greenhouse gas emissions and air contaminants, and reduce the length of time it takes to reclaim disturbed lands. Suncor’s Commerce City refinery in Colorado. withdraw river water. This plan identifies costs greater than $500 million to execute, and with focus we hope to improve this plan by looking for more innovation and sustainable technology solutions. Our aim is to be the lowest water intensity user in the oil sands mining business. In 2007, Suncor learned about discrepancies in how wastewater discharges were being reported by a subcontractor who operated sewage treatment facilities at two of Suncor’s residential camps. After cooperating fully with the subsequent investigation, Suncor pled guilty in April 2009 to one count of exceeding approved discharge limits and received a $175,000 fine. The subcontractor pled guilty to intentionally providing false information and allowing discharges that at times exceeded approved limits. The subcontractor who operated the treatment facilities was dismissed. Although Suncor was not directly involved in the operation of the treatment or camp facilities, we were the owner of the camp. We deeply regret this incident and have strengthened our project controls to prevent it from happening again. Air Corporate-wide sulphur dioxide (SO 2 ) emissions intensity remained relatively steady, though performance at oil sands was hampered by reliability issues related to the sulphur recovery units in our upgrader. Those issues were addressed and, by the first quarter of 2009, SO 2 emissions were below our internal targets and well below regulatory limits. Nitrogen oxide emissions intensity at our natural gas and refining operations continued to decline. But corporatewide emissions intensity increased slightly due to weaker performance at oil sands. Extensive mitigation efforts were undertaken to address ground level concentration (GLC) exceedances for sulphurous compound emissions at our oil sands base plant and to bring ambient hydrogen sulphide emissions near our Firebag in situ operations back into regulatory compliance. In April 2009, Suncor pled guilty to two counts under the Alberta Environment Protection and Enhancement Act related to the Firebag emissions and received a $675,000 fine. Suncor has spent approximately $175 million in equipment to bring the facility into compliance. This episode represented a failure in management oversight, for which we take full responsibility. Land Since 1967, Suncor’s operations have disturbed approximately 17,749 hectares of land. As of the end of 2008, we had reclaimed approximately 1,019 hectares, or about six percent of the total. Suncor expects the rate of reclamation to accelerate significantly as new reclamation techniques are implemented. In 2007 and 2008, Suncor pioneered new land restoration techniques and made strides in progressive reclamation— reclaiming a major overburden mine storage area as it was created. Suncor continued to work as a signatory to the Boreal Forest Conservation Framework, which commits participants to protecting at least 50 percent of the boreal forest region from development, and minimizing the impact of resource production by following and sharing best land management practices. We also renewed an agreement with the Alberta Conservation Association to help preserve boreal forest habitat, and signed a new five-year partnership agreement with Ducks Unlimited to fund and support wetland protection and watershed health. On the web: More on Suncor’s new water plan; details on reclamation progress and conservation initiatives; and a full report on Suncor’s response to recent environmental control and protection orders can be found in the “What Guides Us” section, under Performance in 2007 – 2008/ Operational Issues 2007 – 2008. environmental performance 7 2009 summary report on sustainability

2008 Corporate Sustainability Report - SocialFunds.com