UPDATE 3-Water escapes Suncor oil sands pond into Athabasca River

Tue Mar 26, 2013 8:35pm EDT

* Volume and toxicity of water not yet known

* Company has not been asked to shut down operations

By Scott Haggett

CALGARY, Alberta, March 26 (Reuters) - Contaminated water may have spilled into the Athabasca River from a broken pipe at Suncor Energy Inc's oil sands project in northern Alberta, sparking new fears about pollution of the river from the huge oil sands developments on its banks.

The Athabasca is the main source of drinking water for aboriginal and other communities downstream and has been the subject of several controversial reports on its water quality.

The province of Alberta's environment department said it does not yet know whether the water that spilled from a holding pond contained toxic materials.

Samples from the pond are being sent for analysis and it will take at least a day before results are returned. Environment department staff have been at the project site north of Fort McMurray, Alberta, since early on Monday.

Suncor said it does not anticipate any impact to the Athabasca River.

"We are analyzing samples of the pond and the river as part of the investigation," said Suncor spokeswoman Sneh Seetal.

Wayne Wood, a spokesman for provincial Environment Minister Diana McQueen, said the volume of water sent into the river has not yet been determined.

"We're on the ground monitoring the situation," Wood said. "The pipe got turned off relatively fast."

Suncor, Canada's No. 1 oil producer, and other oil sands companies store contaminated water, a byproduct of stripping tar-like bitumen from the sands, in holding ponds.

Those ponds became the focus of environmental protests in 2008, when 1,600 ducks died after landing on a tailings pond operated by Syncrude Canada Ltd.

While new regulations introduced after the mass duck deaths aim to eliminate the toxic ponds, they remain controversial because of the risk of spills into the Athabasca River.

"No one in Alberta should have to be worried about the safety of their drinking supply but that's exactly the situation we have," Mike Hudema, a climate and energy campaigner for Greenpeace Canada, said in a statement.

Suncor said the industrial waste water from its oil sands extraction and upgrading operations escaped on Monday morning after a four-inch pipe broke after freezing, spilling the water into a partially frozen outflow pond containing treated water.

"Some process-affected water flowed out of the partially frozen pond and into an approved discharge point. It was diluted with water intended for release and then flowed into the river," the company said on Tuesday. ()

Suncor's Seetal said the company's oil sands project was operating normally despite the spill.

Suncor shares closed flat at C$30.73 on Tuesday on the Toronto Stock Exchange.

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