By Greg Nikkel
Concerns about a refinery proposed for the Stoughton area, and in particular the safety of the products and facility, were raised by Stoughton area residents at an open house held on Thursday afternoon by Dominion Energy Processing Group at the Stoughton Legion Hall.
Keith Stemler, CEO of Dominion Energy, was on hand at the hall, which was filled to capacity with local residents who had questions about a number of aspects of the project, including how safe the process will be and the products made at the refinery.
One resident who lives near the gas plant was concerned about the proposed location adjacent to Crescent Point’s Viewfield gas plant, asking why they couldn’t be located farther away in a less-populated area of the RM of Tecumseh.
Stemler noted the company has put an offer in for the land, a 320-acre parcel, and are keen to locate there because of the proximity they will have to Crescent Point, which will make access to the feedstock much easier than if they found a property farther away.
As it is, the company will be piping in water from the Moose Mountain area. The size of the parcel is also good, he added, because there will be room for expansion down the road if and when that is required.
“This is still in the proposal stage. We have a long way to go to the development stage,” said Stemler.
The Crescent Point facility is ideal, said Stemler, because of the synergies that are possible. For example, the gas plant strips off propane and butane and flares it off, while the refinery wants to take these fuels and use them in the refining process. The benefit is that there will be a reduction in gas that is flared off, reducing the emissions from the area, including carbon emissions. In addition, the refinery can share power lines with Crescent Point.
“This is a very populated area of the RM,” the resident pointed out, noting there are seven farms in the direct vicinity and another four farms that are nearby.
Stemler said they will be very strict in following all regulations and requirements of the Departments of the Environment and of Energy and Resources, and he added that it isn’t uncommon for a refinery to be placed near a source of feedstock, such as near a gas plant.
Asked what the company’s strategy is in the event of a disaster, Stemler said there would be two volatile fuels at the refinery, hydrogen and naphtha, and they will have protocols in place along with the proper firefighting equipment on the site, with plans to have about $1 million worth of equipment on hand, including buying two new trucks for that purpose. In addition, Stemler has talked to Weyburn’s Fire Chief, Simon Almond, to ensure the right expertise is available should it be necessary.
He told of the experience of working at Suncor at Fort McMurray, and vowed he will not repeat the mistake they made there which resulted in a huge, expensive fire.
He said the company had “cheaped out” on a piece of equipment and the resulting fire cost the company $3 billion.
“I don’t have $3 billion, so risk assessment is very very important,” said Stemler, adding that once the plans for dealing with risks is complete, it will be available as a public document for any resident to check out if they want.
Stemler pointed out that in refinery facilities, there have been seven fires in the last 11 years, with two of them due to human error, and the rest were due to “acts of God” such as lightning strikes.
“We are going to do everything we possibly can,” he said.
Asked about the volatility of the products being made by the refinery, and the methods of shipping it out, Stemler explained most of the product will taken by rail car in cars designated DOT-111, which is a designation under the act governing the transportation of dangerous goods.
Resident Randy Phillips asked if they have checked out the safety of the rail line, noting that it had once been a CP Rail line but is now owned by a private operator. Stemler agreed with the concern, in that a safe and secure method of shipping by rail is needed, and pointed out, “Everybody has a list of regulations they have to follow. The DOT is in place to protect everyone in this room.”
He added where contractors are concerned, they all will be required to adhere to the strictest safety standards or they will not be working for him at the refinery, or providing services to them. Stemler noted he has been a safety officer for the last 27 years, “so it’s definitely a passion of mine.”
Asked how involved Crescent Point with the refinery project, Stemler said they are talking to the company about the supply of feedstock as he mentioned earlier, but noted this is not a done deal yet. In any event, the two companies will work closely together.
On where their product will be marketed, Stemler said they want to keep most of the product within Saskatchewan, but said it’s premature yet to say definitely where all of it will be heading. He felt the demand for fuel on the Prairies will be strong in the coming years, noting the refinery in Redwater, Alta., will mostly be sending their product to Fort McMurray.
Stemler was asked if there are concerns about the safety of locating a refinery next to a gas plant, and his reply is there is no danger presented by that situation.
“What they do is not what we do. They strip product from the crude, while we need that product to decrease our volatility so it’s safe to ship away from the plant. I don’t want product that could explode. The two processes (of the two facilities) are totally different,” said Stemler, pointing out they will use water at the refinery.
“I’m not going to put $1 billion of equipment next to a plant that will burn mine down,” he added, noting the insurance company and government regulators (such as with Environment) are all very strict about safety issues.
Resident Valerie Creighton said this area was affected by the “Bakken boom” in both good and bad ways.
“This will change the community. My concern is the mitigation of the risk. There’s always going to be a risk, but how you manage that risk is really critical. … The Bakken boom has affected all of us on the good side and the bad side, so as a community we’re going to be more vigilant,” she said.
“We don’t want to hurt anyone. That’s why we’re here today. I know this is going to change the community. For us as a corporation we want to work with the community,” said Stemler. “It’s important to us as a company and you as a community. … I want to have open dialogue.”
Asked by a resident about the probability of this project going forward, Stemler said the funding has been approved, and they are finishing the first stage, the proposal, before moving on to the next one.
“I’ve spent the last four years just on this project, the last two years with the government. … We’re at 60-40 to the good towards going forward. We’re getting closer from the proposal stage to the project stage,” he said.
In terms of meeting the terms set by the government, including tough environmental standards, Stemler said whatever the current level of requirement is now, they are aiming to be 35 per cent better than that, so even if newer, tougher regulations come in partway through the project, they will be well within the regulations.
Asked if the company had thought of locating anywhere else in the province, Stemler said while they considered a lot of scenarios, “Right now, our focus is working with this community and getting this project done before we branch out to do another one.”
