Factors to Consider in Estimating Oil Sands Plant Decommissioning Costs

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  • This report provides a number of cost estimating factors, common terminology and common practices derived from industrial decommissioning projects, international cost estimating practices and the outcome of a joint university, industry and regulator workshop. The cost estimation factors identified in this report represent common practice in the decommissioning industry and are intended to cover the key cost components for a detailed oil sands plant decommissioning cost estimate. This report also identifies factors that may affect the reliability of the estimates (i.e., the level of uncertainty and therefore an indication of the contingency factors that may need to be applied to the estimate). Significant factors contributing to a detailed oil sands facility Mine Financial Security Program (MFSP) Liability project cost estimates include: • Scope Definition • Assumptions • Basis of Estimate • Site Environmental Assessment(s)/Physical Plant/Residual Materials/Hazards • Shutdown/Isolation/Hazards Removal • Demolition/Dismantling/Salvage/Recycle • Remediation/Decontamination • Risk Analysis • Long Term Monitoring • Liability Estimate Revisions The intent of this document is to supplement the existing guidance on the content of the MFSP Liability value that is in the Guide to the Mine Financial Security Program. The report does not prescribe what needs to be included at any point in the Approval Holder’s MFSP estimate. Included in the report are the things one should consider at some point in the life cycle of the oil sands plant (especially close to the time the Operating Life Deposit is made) and some information on the methodology and accuracy of estimates. Similarly, the intent is not to prescribe when the Approval Holder chooses to include increased detail or accuracy to the estimates – this is the Approval Holder’s decision. The report does offer suggestions (e.g., estimate methods, content, and when and why the accuracy of the estimate might be updated, etc.) to assist in developing an estimate.

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    Attribution 3.0 International