THIS IS EXHIBIT •� IN THE AFFIDAVIT OF FLORA POWDER

SWORN AUGUST

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A Commissioner of Oaths in and for Alberta

G E O L O G I C A L R E P O R T ON THE

BITtnfilN POTENTIAL OF :'HE

FORT McKAY //171+ AND

CLEARWATER //175 INDIA!J RESERVSS FORT HcMURR.AY AREA ALBERTA 7\t�:',-�Li:r,;;-�;&-·'{;$F]1:J::,1):;'.';i'{(t);;}!\fiIJ ...

Christine M. Burton Barrister & ^Sol!cltor

Notary Public Commissioner for Oath& Ill �nrl

for the Province of Alb,,@

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GEOLOGICAL REPORT

ON THE

BITUMEN POTENTIAL OF THE

FORT McKAY #174 AND CLEARWATER #175 INDIAN RESERVES

FORT McMURRAY AREA ALBE:RTA

J.D. Godard

October 30, 1968 Westen, Minerals Section

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TABLE ^{0 F} CONTENTS

Introduction

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Conclusions and Recommendations

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Clearwater Indian Reserve #175

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Tables of Test Hole Data in Proximity to Reserves ••·••·•··•·••·••··• 4 Fort McKay Indian Reserve #174 • • • . • • .. .. • • .. • • • .. .. .. • .. .. • .. • • • .. .. 5

l¹iaps ....•... , ...•...•... , ._1, • • • • • • , • • • • • • • • • • • • • 7, 8

INTRODUCTION

GEOLCGICAL REPORT 00 THE

BITUMEN POTENTIAL OF THE

FORT McKAY //174 AND CLEARWATER #175 INDIAN RESERVES FORT McMURRAY AREA ALBERTA

On October 15, 1968 I made a field trip to the Fort McMurray area of Alberta in order to roughly evaluate by visual inspection the Bituminous Tar Sands potential on the Fort McKay #174 and Clean-rater #175 Indian Reserves. The purpose in evaluating the bitumen potential on these reserves is to obtain a perspective idea as to their

sufficiency to warrant the Department of Industry through the P.A.I.T. program to financially assist in a pilot test program of the Vaporvac Bitumens Limited process for the extraction of bitumen from the Athabasca Tar Sands.

CONCLUSIONS AND RECOMMENDATIONS Conclusions:

(1) A rough estimate based on a visual examination of the Clean-rater #175 · Indian Reserve,indicates a bitumen potential of 216 million barrels of bitumen and a 16 year life span based on a 20,000 b/d output capacity for a Vaporvac Bitumens Limited operation on the reserve.

(2) An estimate, based on information gleaned from the Alberta Oil and Gas Conservation Board report ¹¹The Oil Sands of Alberta", indicates that the bitumen potential of the Fort McKay #174 Indian Reserve is 25 million barrels of bitumen and a two ;year life span at a 20,000 b/d output capacity for a Vaporvac Bitumens Limited operation on the reserve.

Recommendations:

(1) It is recommended that a detailed test drilling program be undertaken on the Clearwater #175 Indian Reserve to adequately evaluate its

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-bitumen potential.

( 2) The Fort HcKay //17 4 Indian Reserve does not appear to be of sufficient areal extent to sustain an independent plant operation and would be more suited for a pooling agreement with an adjacent permit or lease holder, However, it is recommended that a limited amount of test drilling be undertaken on the reserve in order to gain a proper insight as to its bitumen potential.

CLEARWATER INDIAN RESERVE #175 (Twp. 88 R •

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On nzy- arrival at the town of Fort McMurray, I preceded by helicopter

(Associated Helicopters Ltd.) to the Clearwater Reserve #175. The reserve comprises 2,262 acres and is situated at the confluence of the Clearwater and Christina·rivers approximately 15 miles due east of Fort McMurray. The topography of the reserve

varies considerably. The central portion of the reserve comprising roughly 1,000 acres, occupies the valley of the Clearwater River at an elevation of 840 feet apove sea level. It is relatively flat and covered with a mantle of glacial and/or fluv'ial deposits of silt, clay and sand. No exposures of tar sands were observed in this portion of the reserve.

The northern (north of the ·Clearwater River) portion of the reserve (approximately 110 acres) and the southern portion of the reserve (approximately 1152 acres) are

occupied by a mature plateau type of top9graphy having a maximum elevation of 1260 feet above sea level in the vicinity of the Christina River in the southern part of the reserve. The Christina River bisects the plateau giving rise to steep (60_; ^°�70^°) foreslopes on both sides of the river. Tar sands are well exposed on the foreslope faces. However, there has been considerable slumping of both bitumen-bearing and barren sands. The tar sands have their maxi.mum exposure on the foreslope along the

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-north side of the Christina River where they are exposed over a lateral or strike -- distance or roughly 4000 feet. The maximumgross tar sands thickness is estimated

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at 180 to 200 feet at the northwest extremity of the foreslope but deminishes considerably to the southeast where the tar sands are obscured by considerable slump material. Of the maximum gross tar sands thickness, the upper 70 feet and the basal 20 feet appear to be lean with abundant barren sand lenses and beds intercalated with thiij beds of tar sands leaving roughly a net 90 feet of payable tar sands. On an average, the tar sands strike 140^° and dip 20^° to the northeast.

Overburden thickens considerably east-northeast away from the river. Overburden overlying the ma.xi.mum gross tar sands thickness is in the order of 50 to 80 feet increasing rapidly to over 200 feet to the northeast. The back or north facing slope

of the pinnacle ridge along the north shore of the Christina River inclines at approximately 45^°, is covered with overburden and vegetation and no tar sands are exposed. Exposures of buff, fossiliferous Devonian (Beaverhill Lake) limestone which underlie the tar sands in the general area occur beneath the tar sands along the.

Christina River. This suggests, along with the shallow dip of the tar sands that little or no tar sands can be anticipated at a lower elevation than 840 feet above sea level, Le., little or no tar sands underlie the central 1000 acre portion of the reserve. This is further substantiated by core hole test data (Table #1) fr�

holes drilled in proximity to the reserve.

An estimation of the bitumen potential of the reserve is difficult without an adequate drill· test program and accurate grade analysis. A very rough estimate

based on a cursory visual examination o� the Clearwater Reserve and the Great Canadian Oil Sands (G.C.O.S.) results, i.e., 800 million barrels of bitumen reserve, 12.7 weight percent average bitumen content of the tar sand, 45,000 b/d bitumen production, ,30 year life span, would give, on the assumption that the 90 foot pay zone is constant in

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TABLE #1

CORE TEST HOLES IN PROXIMITY TO CLEARWATER INDIAN RESERVE #175

Total Overburden · Cretaceous Sands McMurray Sands.

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^Ncl!urray Sands ^Economic Tar Sands ^Ee�; Tar Sands ^Economic Tar Sands \'Jeig�t % Devonian Limestone Depth Thickness Thickness Depth Thickness Depth Pase Thickness Bitumen Depth

454' 100.01 165.0 265.01 178.0 327.0 424.0 97.0• 13 ' 443.0

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-grade and thiclmess throughout the 1262 acres of the ·reserve above the 840 feet elevation cut off,

1262 X 90 ⁼ 113,580 acre feet at 12,7 weight percent (1900 bbls/acre foot)= 216 million bbls of bitumen

or roughly one quarter of that to be produced from the G.C.O.S, lease,

Assuming that the Vaporvac output would be 20,000 b/d the CleaNater project would have a life span of 16 years.·

It is again emphasized that these figures are based on assumption and a cursory visual examination of the Clearwater Reserve.

FORT McKAY INDIAN RESERVE #174 (Twp.94, R.11W4)

On October 16th, I travelled by automobile and b_oat to the Fort McKay Indian Reserve #174 situated on the right bank of the Athabasca River approximately 35 miles

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due north of the town of Fort McMurray. The reserve encompasses 257 acres. The topography of the reserve is relatively flat throughout at a mean elevation of 800 feet.above sea level, gradually rising to an elevation of 875 feet above datum in the northeast quarter of the reserve, The reserve is abundantly forested and well-covered with a mantle of overburden and low vegetation. No natural exposures of tar sands were observed on the reserve. A test pit believed to have been dug by Vaporvac

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Bitumens Limited measuring approximately,�:_l.'.' X _2,_5 _ _:"

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et in which some tar sands are exposed was noted at the extreme east boundary of the reserve, In the pit, approximately 0.6 feet of payable grade tar sands is exposed in the north si�e. A small amount of bitumen seepage was noted in the floor of the pit. No geol.ogical attitude was possible to obtain on the exposed tar sands. Visually they appeared to be relatively horizontal. An attitude of 145^°/2o°N.E. was obtained on buff, fossili­

ferous Devonian ( Beaverhill Lake) limestone which is well exposed along the shore of _{, I}

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the Athabasca River at the western bounda.17: of' the reserve. This attitude is ... /6

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-similar to that obtained on the tar sands at the Clearwater #175 reserve and most probably is representative of the tar sands at Fort McKay.

Some relatively thin beds of tar sands were noted along the shore of the Athabasca !liver north of the reserve at an olovation of 780 foot. V/hother tho tar sands beds are of sufficient payable thickness on the reserve is problematical.

Because of the lack of outcrop, an estimate of the bitumen potential of the Fort McKay Indian Reserve #174 can only be based on regional information presented in the Alberta Oil and Gas Conservation Board report ¹¹The Oil Sands of Alberta 196311.

The report indicates an average thickness of 50 feet of sand deposit in the area with negligible overburden. This would give at an average of 12.7 weight percent of

bitumen content, approximately 100,000 barrels per acre or 25,700,000 barrels for the entire reserve. Based on the C.G.O.S. figures of a JO year life span for 800 million

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barrels of bitumen reserve at a rated output of 45,000 b/d would give a life span of approxima.tely two years for the Vaporvac Bitumen Limited operation at a capacity of 20,000 barrels of bitumen per day. These figures appear to be a little on the high side in relation to the data obtained in core test holes drilled in proximity to the reserve anci shown in Table #2. The report, however, is not. intended to permit an accurate evaluation of any specific individual area and only a detailed evaluation can adequately or accurately detennine the potential of the reserve.

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In document IN THE MATTER OF FRONTIER OIL SANDS MINE PROJECT JOINT REVIEW PANEL. Submission of the Clearwater River Band No. 175 to the Joint Review Panel (Page 70-81)