EDMONTON (CP) - The heavy oil industry should pay for the huge volumes of fresh water it uses to tap Alberta's rich oilsands reserves, says a report by an environmental think-tank. The Pembina Institute report released Monday also calls for a moratorium on new oilsands mines until the Alberta government figures out how much fresh water the industry should be able to take in the face of climate change.
If the province and corporations fail to act, Alberta could run out of fresh drinking water long before it runs out of oil, said Pembina spokeswoman Mary Griffiths.
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In 2005, more than twice the volume of water used annually by the City of Calgary was earmarked for withdrawal from the Athabasca River in northern Alberta for oilsands mining and production, the report says. Corporations use water and steam to squeeze and melt synthetic crude out of the gooey black oilsands so it can be refined. But once the water is used to extract the oil it becomes contaminated and is no longer fit for human consumption or agriculture. It is stored in toxic tailings ponds.
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The Canadian Association of Petroleum Producers flatly rejects the report's call for corporations to pay a water fee or to mothball planned oilsands projects or expansions, said CAPP president Pierre Alvarez. Companies already pay for water through energy royalties collected by the Alberta government, he said. The industry is also working with the province on a strategy to use more recycled and non-potable water.
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