Lac La Biche County Economic Development

In 2012, approved development permits leapt from approximately $126 million in 2011 to over $930 million. This phenomenal growth is a direct result of a change to the Lac La Biche County boundaries and the steam assisted gravity drainage (SAGD) operations in the newly acquired land. Effective January 1, 2012, Lac La Biche County obtained 16 townships from the Regional Municipality of Wood Buffalo, while foregoing claim to lands in the Cold Lake Air Weapons Range in a land swap involving Lac La Biche County, Regional Municipality of Wood Buffalo and the City of Cold Lake. As a result of the swap, Lac La Biche County has emerged as the gateway to the South Athabasca Oil Sands and once again, its geographic setting is defining the future of the region. The history of the Lac La Biche region is rooted in its strategic location for the fur trade, however nothing compares to the importance of its location in the present day. Intersected by three major arterial roads: Highway 36, Highway 55 and Highway 881, and with the only rail line in northeast Alberta routed through the municipality; Lac La Biche County has the potential to become a major distribution hub for companies with operations in Wabsaca, Conklin and Cold Lake. Another asset is the County’s municipal airport, which is already the Air Tanker Base for fire fighting in northeastern Alberta and host to the medevac service. The potential for expansion will be evaluated in 2014. These road, rail and air transportation routes offer logistical benefits to businesses locating in Lac La Biche County. Another advantage to locating in the municipality is the availability of affordable land for industrial, commercial and residential development. With serviced industrial land values of $100,000 to $220,000 per acre in Lac La Biche County compared to the $1,300,000 per acre in the Regional Municipality of Wood Buffalo, the County offers an affordable location with proximity to the north and south oil sands developments. With the completion of the 2013 Municipal Development Plan, Lac La Biche County has a framework that supports economic growth. The Municipal Development Plan is intended to accommodate the anticipated changes projected by the Athabasca Oil Sands Area Comprehensive Regional Infrastructure Sustainability Plan (CRISP). Published May 2011, the CRISP projects that the Southeast Subregion of which Lac La Biche is a part, will have steady job growth over the next 10 years due to in-situ bitumen production and the infrastructure requirements associated with this growth. The immediate service area for Lac La Biche County is expected to grow to 20,950 by 2025, from just over 12,000 at present. This does not include the shadow population in work camps, growing from over 5,000 in 2013 to approximately 9,000 by 2018. The one hour catchment area has a population of 17,638. These projections are supported by the Alberta government’s Oil Sands Industry Quarterly report for winter 2013. Production capacities for the South Athabasca in-situ developments are reported at 3,620,805 bitumen barrels per day. In comparison, North Athabasca mining production is projected to reach 3, 085,300 barrels per day and in-situ development is projected to reach 2,126,220 bitumen barrels per day, while the Cold Lake region production is projected at 475,200 barrels per day. In addition, there are plans for 10 pipelines estimated at an investment of nearly $1.5 billion, to be constructed through the County within the next 4 years. Recognizing that economic expansion in the municipality depends on the oil sector, the successful implementation of this strategic plan is contingent upon the continued development of leases in the South Athabasca Oil Sands and a collaborative approach to problem solving between the SAGD industry, the Alberta Government and Lac La Biche County.