Shell - Carmon Creek Project

Report
CARMON CREEK PROJECT
PEACE RIVER,
TOWN COUNCIL
Bob Blachford, Peace River Operations Manager
Jenna Strachan, Peace River Community Liaison Officer
Copyright of Shell Canada
October 2014
1
AGENDA
1.
Carmon Creek Project Overview
2.
Construction Update
3.
Transportation Logistics Plan
4.
BlueSky Lodge
5.
Local Benefits (Business Opportunities/Employment
Opportunities)
6.
Social Investment
7.
Q&A
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2
CONSTRUCTION SCHEDULE
2013
2014
2015
2016
2017
2018
FID
Phase 1
comp opens
1st OIL
WELL PAD PREPARATION
CPF CONSTRUCTION
WELL PAD CONSTRUCTION
DRILLING & COMPLETIONS
1600 to 2,000 Workers* on
site during peak
construction (2015/2016 peak)
* based on best estimates
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October 2014
3
CONSTRUCTION UPDATE

Site rough grading complete, Piling Co-gen ahead of plan, ACM bldg complete

Co-gen 1 foundations starting

Generators completed and shipped to site

Co-gen Piling 1 & 2 complete by end September

Campsite ring road completed, all other road programs on plan

Phase 1A of camp opened (280 beds), first occupants August 5

Phase 1B operational November 23
 Carmon Creek development wells to spud in October 2014
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4
Confidential
TRANSPORTING MODULES

To reduce traffic on roads, rails is the primary transportation method

Modules have been designed to fit on rail cars – transported to the region by the existing rail line to
the DMI pulp mill site

Shell partnered with DMI to expand their existing rail facilities at their site to allow offloading of
modules

Modules will then be transported via highway 986 to site

Modules too large to be transported by rail will be trucked to site via two heavy load corridors as
designated by Alberta Transportation

East Route: coming from the east on 986 – suited for high wide/overweight loads

West Route: via highway 2 to highway 688 and travelling east on 986 – avoids the town of Peace River.
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5
TRANSPORTATION LOGISTICS PLAN

Shell’s transportation plans covers the safe movement of:

Vessels, modules & materials to the Carmon Creek site

Workers to/from the construction site

As is common in the construction of heavy oil projects, major parts of the project will be built at module fabrication
sites. Pre-built modules will be moved to the region by rail and truck.

Modules will be transported to the region primarily by rail by those highways designated by Alberta Transportation as
heavy load highways.

Non-local workers will be flown to the region via major hubs

All workers (local and non-local) will bussed to the site – no personal private vehicles will be allowed at the camp or
construction site.
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6
MODULE ROUTES – RAIL & ROAD
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7
HIGH LOAD CORRIDORS
Province of Alberta High/Load
Corridors, for modules 120 X 24 X 24
High/Load Corridors within the Province
of Alberta are subject to the following
restrictions as determined by Alberta
Transportation
 Maximum loaded height of 9.2M
(29’ 6”)
 Maximum allowable weight during
each of the five shipping seasons
 Legislation dictates routes
 Restricted by overhead power
lines
 Restrictions by bridge capacities
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8
MODULE TRANSPORTATION - SAFETY


Meet Alberta Transportation permit requirements which outlines measures
carriers must take to maximize safety on roads - permit requirements will vary
depending on the load and influences:

Speeds

Frequency of pullouts

Vehicle escorts required in certain cases

Only use Shell safety-approved carriers:

Rigorous vetting process (high standard of driver qualifications and
experience prior to being allowed to operate on behalf of Shell)

In-vehicle monitoring systems (monitor for speed, erratic driving etc.)
Carriers use well-established protocols (Alberta 511) to communicate movements
with impacted communities.

Additional safety measures - timing of moves (i.e. avoids peak bus/shift rotations
& school bus times)
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9
BLUESKY LODGE

The BlueSky lodge is operated and serviced through a joint venture with ATCO and
Woodland Cree First Nation

The construction camp has been designed to be as self-sufficient as possible to
minimize strains/impacts on local infrastructure and to provide a safe, secure and
comfortable environment for non-local workers (onsite health clinic; fenced camp with
security; workers bussed daily to the worksite; recreational facilities; rooms have private
washrooms with showers, high speed internet, 32 inch -tv etc)
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10
BUSINESS OPPORTUNITIES

The project will assess potential opportunities for local businesses over the construction
period – through Shell directly and through subcontracting with our on-site contractors

There will be ongoing opportunities form ongoing operations, drilling well pad and
infrastructure construction over the 35+ life of the project

Some of the local business and contractors supporting the project to date are:
Acklands-
Grainger Inc., Bison Contracting, ClearStream Energy Services, DFI Corp, First Student Canada, Freson Brothers
IGA, Grimshaw Gravel Sales Limited, Kit Office Plus, MacMillan Construction Ltd, MDP Oil field Services Ltd, Belle
Petroleum Centre, Northsite Contractors Ltd, Rt Grading & Roadbuilding, Sawridge Inns Ltd, Western Canadian
Mulching Ltd.)
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EMPLOYMENT OPPORTUNITIES

The project requires between 1600 to 2000 workers during peak construction periods
(2015/2016)

The number of full-time employees and contractors needed to operate both the Carmon
Creek and existing Cliffdale production facilities is estimated to be about 500 (250
employees; 250 contractors)

After Carmon Creek starts up the existing Peace River Complex will be
decommissioned and production integrated into the new Carmon Creek facilities
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12
SOCIAL INVESTMENT

Since 2012, Shell has invested almost $2 million to support initiatives in the Peace
River area

Shell employees have volunteered over 4800 hours with more than 30 local
organizations including schools and sports teams.
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13
LOCAL INITIATIVES AND ENGAGEMENT

External engagements and stakeholder feedback – help to shape Shell’s
communication, engagement, and investment activities

Ongoing engagement opportunities at the Community Office - employment, contracting,
grants, information

Multi-Stakeholder Committees, Subcommittees, Workshops

Road Safety Forum

Additional community sensing - Participation in Chamber of Commerce, Peace River
Rotary and updates from PR Interagency, Community Survey

Next Open House – November 5th, 2014 at McKinney Hall
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14
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