QUEST CCS PROJECT

Stephen Harvey QUEST Geophysicist

5
CO2 Pipeline
2
1
Amine Unit Compressor
1
QUEST - LOCATION
March 19, 2014 Quest Project - MUN 2014, Calgary
!"#$%&'
)'*'+'
Quest
,-%& .'/0'&12$3'*
,-%& 4145%%'6
7+8-*&-*
)'"9'%6
CapLure planL locaLed near lorL
SaskaLchewan, approx 60 km n.L.
of LdmonLon
2
CCS IN ALBERTA
! CCS is a signicant part of GHG
mitigation plans for both
Canada and Alberta
! Quest Funding
! ~1.3 Bln $ project
! 165 MM$ CND, 700 MM$
AB
Source: Alberta 2008 Climate Change Strategy
GHG emissions prole and mitigation options Alberta
CCS =70%
Materiality:
Quest = 1.1 MT/a of
CO
2

~ 175,000 cars

50Mt
BUSIN
ESS AS USUAL
A
LB
E
R
TA
S
P
LA
N

First CCS project in
Alberta Oil Sands
and it has massive
scalability.

Cost of Project
~1.3 Bln $
Quest Funding
165 MM$ CND, 700
MM$ AB
The Athabasca Oil Sand Project (AOSP)
May 2014 4
Peace River
Calgary
Edmonton
Corridor
Pipeline
Fort McMurray
Muskeg
River Mine
Bitumen
Scotford
Upgrader
Bitumen to Synthetic crude
(255,000 bpd)
H2
Scotford
Renery
(Shell only)
AOSP - JV among Shell (60%); Chevron (20%); and Marathon (20%)
QUEST Update - Pittsburgh CCUS Conference
QUEST Overview


SALT SEALS
Cement
SHALE SEALS
TARGET FORMATION
Capture at the Scotford Upgrader from 3
Hydrogen Manufacturing Units - One million
tonnes CO
2
per year capacity for 25 years
CO
2
transported by 12 inch pipeline to storage,
with 6 inch laterals
Pipeline to 65 km north of the Upgrader
Wells : 3 injection wells , 3 Deep Monitoring
Wells and 9 Shallow Ground Water monitoring
wells
Execution Phase since Sept 2012

May 2014 5 QUEST Update - Pittsburgh CCUS Conference
INTEGRATED CCS PROJECT #
Technical aspects: Capture, Pipeline, Storage & MMV
CO
2
Pipeline
2
Pipeline to storage site, 65 km
3 CO
2

injectors
1
Amine Unit
Compressor
1
Up to 1.2 Mtpa from the Scotford
Upgrader
" Commissioning Q1 2015
" Sustained Injection by end 2015
" Measurement, Monitoring &
Verication (MMV)
" 25 year eld life (27 Mt CO
2
)
" 10 year closure period
! BCS Storage Complex
! Deep saline aquifer (~2km), porous sandstone (Por~16%, K~ 1D)
! Multiple continuous seals to minimize containment risk
! No signicant faulting visible from wells or seismic
! Well below hydrocarbon bearing formations(<1200m) and potable water
zones (<200m)
! Few legacy wells, nearest at ~20 km
QUEST Overview - Storage
34m
84m
44m
41m
Ultimate Seal
Secondary Seal
Primary Seal
Injection Target
Ultimate Seal
B
C
S

S
t
o
r
a
g
e

C
o
m
p
l
e
x

W
i
n
n
i
p
e
g
o
s
i
s

C
o
m
p
l
e
x

Upper Lotsberg
Lower Lotsberg
MCS Middle Cambrian Shale
LMS Lower Marine Sand
PreCambrian Basement
BCS Basal Cambrian Sand
85m
May 2014 7
QUEST Update - Pittsburgh CCUS Conference
QUEST - Construction Progress Highlights
8
All major equipment such as towers and the compressor have
been received and on site.
One HMU set of equipment modules installed.
Pipeline construction progressing and > 50% welding is
complete.
Wells drilled and 2 injection wells tested in 2013
Operations readiness activities progressing per plan
Schedule is tracking on target costs slightly below target
Public engagement activities continue through start-up.
May 2014 QUEST Update - Pittsburgh CCUS Conference
QUEST - Amine Stripper Vessel lift March, 2014#

May 2014 9 QUEST Update - Pittsburgh CCUS Conference
QUEST - 2013 Well Test Results - Injectivity
10
W ell n a me 8a Le uelLa l n[ecLlv lLy
m3 / d k a m3 / d/ Ma
8a dw a y 8 -1 9 3 6 0 0 . 9 3 3 7 9
8edw a Ler 1 1 -3 2 4 9 2 1 2 . 1 3 4 1
1horhlld 3 -3 3 3 4 2 0 . 3 3 1 0 3 6
8a dw a y 7 -1 1 3 9 6 0 . 1 9 2 0 8 3
0
10000
20000
30000
40000
30000
60000
70000
3 Well Avg l
WaLer ln[ecLlon 8aLes
WaLer ln[ecLlon
oLenLlal
LsLlmaLed CC2
ln[ecLlon oLenLlal
CuesL CC2 ln[ecLlon
requlremenL
!
"
#
$
%
&
'
(
"

*
+
&
$
,

-
.
$
/
$
.
0
(
'
.

1
2
3
4
5
WaLer l
CC2 uncerLalnLy
CuesL 8equlremenL
Llnear ad[usLmenL
Lo l8P of 67 89+
CC2/waLer
ln[ecLlvlLy
raLlo of 1.3 - 3
CuesL lnlLlal 8aLe
= 900 - 1800
May 2014 QUEST Update - Pittsburgh CCUS Conference
Regulatory
Constraint
# 30 Mpa
#Fracture pressure
40Mpa
WATER INJECTIVITY / TEST RESULTS
CO2 INJECTION CAPABILITY
Pressure and CO2 Plume Propagation
2015 - Start
2015 - Start
2016 1 Year Injection
2025 2025 10 Year Injeciton
2040 Shut-in
2045 Shut-in 5
years
2055 Shut-in 15 years
MPa
2016 1 Year
2025 10 Years
2040 Shut-in 2050 10 Years Shut-in
2085 45 Years Shut-in
Expectation delta Pressure



Expectation CO2 @ 8-19
Heavy Oil
Shell Canada
QUEST - New Well Results - Containment
May 2014 12 QUEST Update - Pittsburgh CCUS Conference
Gen-4- Pressure Distribution after 25
Years of Injection in the Mid Property /
Mid Connectivity Case with an analytical
aquifer extension
Gen -4- 25 Year FBHP Forecast for the mid
property, mid connectivity case with
analytic aquifer
! Capacity very large compared to injected volume
! Elevated pressure is very low - no risk of brine leakage
! Expected to be considerably less then Gen-4 mid case
QUEST IN-WELL MONITORING
Lotsberg
LMS
BCS
MCS
UMS
Colorado
PreCambrian
Upper
Lower
CKLK
Quest Storage Complex
Freshwater
Geophone array (1 well only)
450m
1750m 5 $
8 %
30m DEEP MONITORING
WELL (DMW)
40m
180m
5 9/16
Datalogger
(pH, Eh)
GROUNDWATER
MONITORING WELL (GWM)
DTS/DAS
13 3/8
9 5/8
4

$

T
u
b
i
n
g

7
Downhole
P/T Gauge
450m
2000m
2150m
INJECTION WELL (IW)
QUEST - New Well Results - Injection Performance
Modelling
14 May 2014 QUEST Update - Pittsburgh CCUS Conference
5 Generations of Models
# Substantial reduction in range of uncertainty
after appraisal/injection wells in 2012/13
!
!
Identify Risks
&
Uncertainties
Appraisa
l
Strategy
Data
Evaluation
Integrated
Reservoir
Modeling
1)FPP
SDP &
MMV
Plans
2) Lease
App.
3) Reg.
Submission
4) SDP
! Status
! BCS Static model update
complete
! Cooking Lake static modeling
ongoing
! Leak path model update ongoing
! Results in Q3 2014
! CO2 plume and pressure
predictions
- Sequestration Lease area
- Timing of VSP vs 4D seismic
- MMV coverage
! Leakage risk
! Pressure Monitoring Thresholds
Iterative Workflow
!
5) MMV
Heavy Oil
Shell Canada
MONITORING PLAN OVERVIEW
Atmosphere LightSource CO2 Monitoring
Biosphere
Remote Sensing (Brine & NDVI), CO2 Natural and Articial Tracer Monitoring,
Hydrosphere
Private Landowner Groundwater wells (Chemistry and Isotopes on water and wellhead gas
Deep
Monitoring
Wells
Down-Hole Pressure & Temperature (DHPT) above Storage Complex
Down-Hole Microseismic Monitoring
BCS Observation Well: DHPT
Injection
Wells
Injection Rate Metering, PFC Tracer Injection?
Geosphere
InSAR
Time-Lapse 3D VSP
Time-Lapse 3D Surface Seismic
DHPT, Distributed Temperature and Acoustic Sensing, Annulus Pressure
Monitoring, WHPT, Wellhead CO2 Sensor, Mechanical Well Integrity
Testing, Operational Integrity Assurance
Time (years)
Baseline Injection
Closure
CBL, USIT
Shell Groundwater Wells: Continuous EC, pH, T, P & ORP,
Discrete Chemical and Isotopic Analysis on water and WHG,
2010 2015 2020 2025 2030 2035 2040 2045 2050
CO2 Flux & Soil Gas

Heavy Oil
Shell Canada
MMV baselining Activities HBMP progress
May 2014 16 QUEST Update - Pittsburgh CCUS Conference
!"
!"#$%&'& )* +&,, #-./,"01 23-045+0&% 6 7%58&$' *&,,#9
:-./,"01 &;&0' <-0 =&> ?-% @/% ?-A <B0 <B, @B1 :&/ C$' D5; !&$
#$%&'(&
#(%&'()
#&%&'()
#)%&'()
#$%&'()

*"
E50'"0B5B# )* +&,, #-./,"01 27%58&$' *&,,# 50,A9
:-./,"01 &;&0' <-0 =&> ?-% @/% ?-A <B0 <B, @B1 :&/ C$' D5; !&$
&'()

+"
:5", )-#F=,BG :-./,"01 6 H&.5'& :&0#"01 E-,">%-'"50 !-'- @$IB"#"'"50
:-./,"01 &;&0' <-0 =&> ?-% @/% ?-A <B0 <B, @B1 :&/ C$' D5; !&$
#$%&'(&
#(%&'()
#&%&'()
#)%&'()
#$%&'()
,-.-/0 2!.

! Ground Water and Biosphere Baseline Data acquisition progressing as planned
! Golder Report at end of 2013 summaries all data to date.
! Sample Manager implementation ongoing for Data Management

Heavy Oil
Shell Canada
MMV Baselining Activities Pressure Monitoring
May 2014 17 QUEST Update - Pittsburgh CCUS Conference
! Pressure Monitoring Zone changed to Cooking Lake
! Shallowest zone with high enough permeability
! Depleted by production from the Leduc Reef
! Commenced Feasibility Study
! Pressure gauges installed in DMW 5-35 and DMW 7-11 to measure pressure variability
! Some t for purpose dynamic modeling indicates monitoring at Redwater 3-4 would be
benecial
! Planning for gauge installation in Redwater 3-4 and building a more detailed Cooking
Lake static model.

MMV baselining 2014/15 Activities
May 2014
18
QUEST Update - Pittsburgh CCUS Conference
RADAR REMOTE SENSING for Salinity
(SAR) & Surface Deformation (INSAR)
-Complete SAR Feasibility Study - Q2 2014
-Update INSAR capability Dec 2014
OPTICAL REMOTE SENSING for Plant Health
Feasibility Ongoing Complete in 2014
BCS Formation
Injector Observation
Well
Geophones
Seismic wave
Microseismic
event
Fracture opening
or fault slip
BCS
Storage
Comple
x
Micro Seismic Installation Q3 2014
Surfac
e
Seismi
c
3D
VS
P
3D VSP Baseline Q1
2015
March 19, 2014 Quest Project - MUN 2014, Calgary
BCS Formation
Injector Observation
Well
Geopho
nes
Seismic wave
Microseismic
event
BCS
Storage
Comple
x
$ 1lme Lapse 3u Surface Selsmlc (& 1lme Lapse 3u vS)
Lx: Slelpner/norway, CC
2
ln[ecuon lnLo sallne aqulfer (sLarLed 1996)





(source: Chadwlck eL al., 2009, Lnergy rocedla 1, 2103-2110)
$ Mlcro Selsmlc





Fracture opening or fault slip
19
QUEST - MMV ACTIVITIES: GEOSPHERE
$ 8emoLe Senslng (lnSA8)
Surface displacement
Heavy Oil
Shell Canada
MMV Activities - Sensor Hook Up / Data Transmission#

20
Storage
(Well sites)
LOS
CO2
DAS
!
Continuous
MMV data
(WPH, WEC,
BHP, DMWP.)
LOS
CO2
DAS
!
MMV data
(MS data, DAS/
DTS Lightsource
LOS
CO2
DAS
!
Continuous
Process Control
(WHPT, WHCO2,
APM,DHPT)
Capture
(Scotford)
Transport
(Pipeline)
Well pads
Private
wireless
CO
2
% 67 km pipeline &
P&C
Signals,
Alarms
MMV
Measurements
LBVs
#1
X
P&C data
Scotford
Control Room
Scotford
Control Rooms
#2
X
#3
X
#4
X
#5
X
Storage Mgt
Team
WRFM
TOOLKIT
SHELL
NETWOR
K
PI
May 2014 QUEST Update - Pittsburgh CCUS Conference
Heavy Oil
Shell Canada
MMV Activities - Technology Development
May 2014 21 QUEST Update - Pittsburgh CCUS Conference
! Tracer Feasibility Studies
! PFC Experimental work progressed in 2013 and ongoing until March 2014
! C13 Studies progressing
- CO2 Gas sampling at Scotford
- Research (phases 1 to 3) completed and reports received from the Uni. of Calgary
- C13 Data collection in as part of the HBMP baselining
! Decision on Tracers postponed to June 2014 AER special report #3

! Lightsource Feasibility
! Controlled release test at IW 8-19 in Sept. 2013
! Further work on algorithm development
! New Boreal digital laser tested.
! Agreed workplan with U of Vic & BC on EC for background
! Report Expected May 2
nd
- Milestone meeting /Decision
Heavy Oil
Shell Canada
April 11, 2014 22 Quest CCS Project - 2nd AER Annual Status Report
Stakeholder Engagements
! Status
! Local community events in summer 2013 (Thorhild
Sunower Festival)
! Open Houses conducted in October 2013:
! Thorhild, Radway and Bruderheim
! Town, City and Council updates provided annually
to:
! Thorhild, Lamont, Bruderheim, Fort Saskatchewan,
Strathcona, Lamont, Sturgeon
! Community Advisory Panel (CAP) formed and kicked
off in 2012 for MMV program- met 6 times in 2013-
including touring the upgrader and pipeline
construction
! Community newsletters - 2 in 2013
! HBMP GW sampling brochure for landowners
issued in Q1 2014
! Upcoming work in 2014
! Continue CAP meetings (quarterly), annual Council
updates , Open Houses (Oct. 2014) and
Newsletters
! Community survey on Quest (completed bi-
annually)

! Well Program
! Hook up and testing of wellpad MMV
sensors by Q4 2014
! MMV program
! Baseline sampling program complete
Q1 2015
! Capture & Pipeline
! Module fabrication Last module
installation targeted for summer 2014
! Pipeline mechanical completion
expected fall 2014
! Mechanical completion of capture
facility by Q1 2015
! Operations Handover Q3 2015
! Full production Q4 2015
May 2014 23
QUEST - Project Timeline to Operations

QUEST Update - Pittsburgh CCUS Conference
Thank You
QUEST - 2013 Well Test Results - Injectivity
25
W ell n a me 8a Le uelLa l n[ecLlv lLy
m3 / d k a m3 / d/ Ma
8a dw a y 8 -1 9 3 6 0 0 . 9 3 3 7 9
8edw a Ler 1 1 -3 2 4 9 2 1 2 . 1 3 4 1
1horhlld 3 -3 3 3 4 2 0 . 3 3 1 0 3 6
8a dw a y 7 -1 1 3 9 6 0 . 1 9 2 0 8 3
0
10000
20000
30000
40000
30000
60000
70000
3 Well Avg l
WaLer ln[ecLlon 8aLes
WaLer ln[ecLlon
oLenLlal
LsLlmaLed CC2
ln[ecLlon oLenLlal
CuesL CC2 ln[ecLlon
requlremenL
!
"
#
$
%
&
'
(
"

*
+
&
$
,

-
.
$
/
$
.
0
(
'
.

1
2
3
4
5
WaLer l
CC2 uncerLalnLy
CuesL 8equlremenL
Llnear ad[usLmenL
Lo l8P of 67 89+
CC2/waLer
ln[ecLlvlLy
raLlo of 1.3 - 3
CuesL lnlLlal 8aLe
= 900 - 1800
:$""
)-%$ !;9
0 <=>
)-%$
4'?
0 <=>
@$/&
A-3
B
e
(u)
@$/&
4C+
0
e
(u)2
@$/&
DC92
0
e
(u)3
8-19 EFG 3.6 0.3 EFH 1.1
3-33 EFI 2.2 0.8 JFE 1.3
7-11 EFI 2.9 1.2 JFH 2.0
Well FEP FCP
1AA/11-32
45.4 MPa
(20.7 kPa/m)
31.7 MPa
(14.5 kPa/
m)
100/08-19
42.4 MPa
(20.6 kPa/m)
34.6 MPa
(16.8 kPa/
m)
102/05-35
48.1 MPa
(23.5 kPa/m)
33 MPa
(16.1 kPa/m)
103/07-11
42.5 MPa
(21.0 kPa/m)
24.5 MPa
(12.1 kPa/m)
May 2014 QUEST Update - Pittsburgh CCUS Conference
Regulatory
Constraint
# 30 Mpa
PERMEABILITY (TEST vs CORE)
WATER INJECTIVITY / TEST RESULTS
CO2 INJECTION CAPABILITY
FRACTURE EXT. PRESSURE
Heavy Oil
Shell Canada
Atmospheric Monitoring
LightSource: CO
2
mass ux rate
Baseline Injection Closure Baseline Injection Closure
Atmosphere
Biosphere
Hydrosphere






Geosphere



BCS Storage
Complex