UPDATE 1-Greenpeace protest targets Syncrude oil sands mine

CALGARY, Alberta, July 24 (Reuters) - Greenpeace protesters targeted a waste-water pipe at a Syncrude Canada Ltd oil sands project on Thursday, demanding a halt to rising crude production in the region, which they say is devastating the environment.

Greenpeace said in a release that protesters put a cap on the pipe to a toxic waste-water pond at the Aurora North mine at Syncrude's project site near Fort McMurray in northern Alberta.

They also raised a banner that read "World's Dirtiest Oil: Stop the Tar Sands," and put a skull-and-crossbones flag atop yet another pipe into the tailings pond.

Syncrude said the incident did not interfere with its operations, but added that the protesters broke into the area though a locked gate.

"While we encourage debate and dialogue about the environmental impacts of oil sands development, we do expect it to be conducted in a lawful and professional manner," Tom Katinas, Syncrude's chief executive said in a release.

Greenpeace said 11 protesters were arrested by police, ticketed for trespassing and released.

The environmental group is calling for the Alberta government to stop approving new projects to exploit the region's massive oil sands, which hold the biggest petroleum reserves outside the Middle East.

Oil companies are expected to spend more than C$100 billion to nearly triple production from the region -- to more than 3 million barrels day -- by 2015.

"It's time for the government to step in and start saying no to these companies and to put the brakes on development," said Mike Hudema, a tar sands campaigner at Greenpeace.

The tailings pond at the Aurora North mine owned by Syncrude, the biggest oil sands producer, focused global attention on the environmental costs of extracting the region's tar-like bitumen deposits when 500 ducks died after landing on the waste-water pond earlier this year.

Heavy metals and other toxins are a byproduct when the bitumen is separated from the oil sands using water, which is sent to settle in the huge tailings ponds.

Alberta regulators plan to tighten rules for the toxic ponds, requiring developers of oil sands projects to prepare operations and abandonment plans and submit them for review.

The province would also force companies to file schedules for pond construction, use, closure and other milestones with regulators, or face penalties if the rules are broken.

However Greenpeace is also calling for rules requiring the clean-up of existing tailings ponds and stiffer penalties for environmental infractions.

Syncrude is a joint venture owned by Canadian Oil Sands Trust (COS_u.TO: Quote, Profile, Research), Imperial Oil Ltd (IMO.TO: Quote, Profile, Research), Petro-Canada (PCA.TO: Quote, Profile, Research), ConocoPhillips (COP.N: Quote, Profile, Research), Nexen Inc (NXY.TO: Quote, Profile, Research), Nippon Oil Corp (5001.T: Quote, Profile, Research) unit Mocal Energy Ltd. and Murphy Oil Corp (MUR.N: Quote, Profile, Research). (Reporting by Scott Haggett; editing by Rob Wilson)