Mine Reclamation Costs In The Alberta Oil Sands - Introduction

Management of mine and tailings reclamation activities by surface mining oil sands operations in Alberta, Canada is experiencing increased national and international attention. Of particular concern is the ability of existing mines to execute and fund reclamation activities. Concern stems from a lack of demonstrated tailings reclamation technologies, perceptions of a poor track-record of reclamation activity by industry, and a lack of transparency with respect to the potential cost of reclamation activities relative to the monies secured in Alberta?s Environmental Protection Security Fund (EPSF). Limited information is publicly available regarding reclamation costs and technologies. Available data typically comes from disparate sources. This paper examines the expected costs of oil sands reclamation activities through a study of corporate Asset Retirement Obligation (ARO) liabilities, the Province of Alberta?sEPSF, and published data relating to reclamation costs.Issues relating to current liability funding are introduced.