Pace Oil & Gas Ltd.

Pace Oil & Gas Ltd.

May 29, 2012 14:21 ET

Pace Oil & Gas Ltd.: Containment and Recovery Update- Rainbow Lake Crude Emulsion Leak

CALGARY, ALBERTA--(Marketwire - May 29, 2012) - On May 19th, an oil and water leak occurred in a remote area of N.W. Alberta approximately 20 km S.E. of Rainbow Lake, Alberta. The site well is used for water injection from the Bluesky Banff Gas Pool.

Upon leak identification, the well was immediately shut-in and clean-up efforts implemented.

The spill covers an approximate surface area of 4.3 hectares (10.6 acres) and an estimated volume of 3,500 m3. The fluid spill composition is an emulsion of oil and water.

The spill perimeter has been trenched and booms have been put in place to contain the spill. Site cleanup and remediation has commenced.

In addition to Pace staff and on-site reclamation expertise, the industry's oil spill cooperative has mobilized additional resources and one of North America's leading emergency spill response specialists, SWAT Consulting Inc., has been engaged and is on the incident site.

A cell tower booster has been installed to increase connectivity to the area.


  • As of May 28th, approximately 588 m3 of oil and water emulsion has been recovered.
  • The recovered emulsion is 30 per cent oil and 70 per cent water.
  • Additional booms have been put in place.
  • A 50 person camp is being set up and located near the site.
  • Additional towers have been set up to improve lighting for night operations.
  • A local wildlife management firm, based in Rainbow Lake is on location.
  • Snow fences and silt fences have been installed on the outside of the booms to prevent wildlife from entering the area. The bear response plan is being finalized and a wildlife seclusion area has been flagged off to protect potentially trapped animals.
  • Pace's environmental consultants are doing continuous sampling with sand points placed around the site.
  • Pace continues to work with environment consultants to install ground water monitors. Chlorides in water are being checked and sent to an outside agency for chemistry breakdown and ongoing sampling and monitoring of fluid in boom trench continues as does additional surface water sampling.
  • On-site air monitoring is continuing using WASP units (Rig Rats). There are no detectable levels.
  • HSE sentries are in place at all entry points and a site map is being constructed of all HSE emergency equipment placement.
  • Additional emergency, ambulatory vehicles, fire and water trucks are on site on standby.
  • The following operational activities will commence in the next 24 hours:
    • Excavation and sampling of area bell holes.
    • Completion of additional socking.
    • Complete installation of additional matting around perimeter of incident site.
    • Initiate pumping back into tanks.
    • Establish and set up next skim points.
    • Complete containment around the laydown area.

The Facts:

  • The source of the leak was completely shut-off May 19th.
  • A containment trench 4 feet wide and 2-3 feet deep around the perimeter of the area has been completed.
  • All government regulatory agencies have been notified of the line leak with representation of the ERCB and Alberta Environment and Sustainable Resource Development having assessed the area with Pace local field operations staff.
  • Pace is engaged in daily and on-going dialogue with all impacted stakeholders.
  • A remediation plan is being executed by Pace Oil and Gas Ltd. and an environmental engineering firm. The Pace Operations team is working in collaboration with and under the approval of ERCB and Alberta Environment and Sustainable Resource Development.
  • The ERCB states there were no injuries and no direct public impact as a result of the leak.

Pace Oil & Gas Ltd. (TSX:PCE) is a Calgary, Alberta based intermediate sized oil-weighted company with a large portfolio of near term oil resource opportunities in the Western Canadian Sedimentary Basin. TSX SYMBOL: PCE

Contact Information

  • Pace Oil & Gas Ltd.
    Colin Merrick
    Communications & Stakeholder Relations
    (403) 461-9740