Almost a year after 500 ducks died in toxic oilsands sludge, Alberta's energy regulator is directing companies with oilsands operations to deal with dozens of lake-sized tailings ponds.

While some environmentalists say the decision doesn't go far enough, industry representatives are worried about the cost.

The ponds, which collect waste left behind when plants process tar-like bitumen, have grown so large in four decades that they can be seen from space. They contain heavy metals, sand and clay.

Alberta's oilsands giants have until Sept. 30 to file plans with the Energy Resources Conservation Board that include a timeline for eventually closing the tailings ponds. They will also have to ensure the ponds are reclaimed within five years after they are no longer being used.

The companies will be required to process all tailings water and dispose of sludge starting in five years and stretching over several decades.

The directive also calls on oilsands producers to curb liquid tailings by finding other disposal methods, such as pumping them into abandoned bitumen mines. Enforcement options will include denial of future expansion plans or even closing portions or entire plants that ignore the directive.

New regulations 'challenging'

The new regulations could prove challenging to meet, according to Jake Irving, executive director of the Oilsands Developers Group in Fort McMurray.

"A lot of it would require application of new technologies — some increased timelines — so there's some physical difficulties," Irving said. "There will be some cost difficulties associated with it as well.

"It's something that our member companies will be taking seriously, and it's a challenge they're going to work hard to live up to."

Groups such as Environment Defence were not impressed in the new regulations, which spokesman Matt Price described as "baby steps."

Oil firms comprise "one of the most innovative industries on the planet when it has to be," he said, "and what we would like to see is both governments step forward and say, 'You're not allowed any new tailings ponds at all, and come up with a solution to produce oil from the tarsands that doesn't require wet tailings.'

"I bet you if that was coming down tomorrow, the industry would figure that out in a hurry."

Price also pointed out that there is no comprehensive plan for reducing the overall level of pollution being emitted in the oilsands.

The tailings ponds garnered widespread attention after hundreds of migrating ducks died after landing on one north of Fort McMurray on April 28. Syncrude hadn't yet deployed deterrents designed to keep migrating birds off the toxic ponds, and most of the birds didn't survive being coated with the oil and waste.

With files from the Canadian Press