recent/emerging alberta water regulations€¦ · waterline resources inc. recent/emerging ab water...

Waterline Resources Inc.

Recent/Emerging Alberta Water Regulations: Non-Saline/Saline Water Use

Jamie Wills M.Sc., P.Geol.Principal [email protected]


Recent/Emerging AB Water Regs.Presentation Outline

What a Difference a ½ Year MakesThe Alberta AdvantageFreedom to Create, Spirit to Achieve

A Quick Look Back (and forward)

The Impacts of Growth on WaterGrowth Management (Growing Pains)

Recent/Emerging RegulationsCase StudiesThe Future –?Questions and “Some” Answers


What A Difference a (½) Year Makes…

Years 2000 – 2008“The Alberta Advantage”

Growth > regulations, > capacity of water professionals

Years 2009 – 20??“Freedom to Create, Spirit to Achieve”, but…

“Dirty Oil”, royalty reviewGlobal downturn, commodity $ ↓Alberta’s future …

Long-term = assured Short-term = ????


Natural resources +

Canada’s stable political structure+

Open-door investment policy=

Growth

The Alberta Future (growth will come back)


The Challenge of Growth

So recognizing that growthVaries by regionWater avail. varies by regionAll growth requires water


Alta Water RegsHow have we been doing? +

What works

What could work better

A few case studies to illustrate

So with budget/funding cuts in mind…


Alta Regulatory Setting – Water

Based on Total Dissolved Solids (TDS)AENV for TDS < 4,000 mg/L

Non-saline or freshERCB for TDS > 4,000 mg/L

Saline or brackishAENV-ERCB MOU signed in Dec/07

Work closer together


Regulatory Setting – Alta Govn’t

Water For Life Strategy (Alta Gov., 2003)Integrated (GW + SW)

Dovetails with earlier studiesAll Alta watershedsRight direction, but…Take years and cost $$$

Above balanced againstRequirement to maximize royalties (Alta. Gov.)Huge % of royalties that are water-assisted


Regulatory Setting - AENV

GW Eval. Guide. (2006)CBM (with ERCB, 2006)Oilfield Injection (2007)3PC process (2007)Interpretation of Q20 (2008/09)Draft Bitumen/Non-Saline (2009)TDS: Non-saline status update to 10,000 mg/L (20??)


Case Studies – AENV Water Act

License TransfersFramework to allow for transfers, 10% hold-back

But, opportunities for review…Program in infancyComplex, limited where/how can occurExamples:

Apr/09 WATSUP conference (Australia example)Non-continuous to continuous diversion (irrigation to bottled water)

Finish watershed master plans



Coalbed methane (Guideline and D35)New industry and needed regsStandardized process across the board

But, opportunities for review…Awaiting feedback from AENVParameters added to template, limited consultation400 m consultation, what tests are valid, etcWhat constitutes due diligence on offer to test



WCAPFOI (i.e. new OIP)Provided necessary update to 1989 reg

Example: Needed to apply to GW and SW (no GZ-WZ map)

But, opportunities for review…Very “grey” documentApplication process iterativeExamples:

Search radius Economic assessmentNet environmental assessment



3PC review process for EIAsDesigned to de-bottleneck the system

But, opportunities for review…Need to streamline process furtherNeed to reduce SIR iteration process



GW Evaluation GuidelineStreamlined the license appln. process

But, opportunities for review…Q20 (original intent vs. application)Examples

Communal water supply or a well field (a Colony)Deemed license (injection)License transfers



The FutureDraft Bitumen in Contact with Non-Saline Water(and Future Non-Saline Update to 10,000 mg/L TDS)

But, opportunities for review…Grandfathering of projectsRecognition of S. Alta vs. N. Alta differences


Regulatory Setting – ERCB + H20Directive 35 (2006)Directive 27 (2007 and 2009 Update)Directive 44 (2007)3PC process (2007)Draft Thermal - Water Use (2009)Draft Directive 008 (2009)Saline update to 10,000 mg/L TDS (20??)


Case Studies – ERCB (Shallow Gas + H20)

Directive 035 (and D 027)New industry that required regulation

But, opportunities for review…Clarity on what constitutes a valid offer to test

Due diligence, consult. radius, overlapping offer to test, etcIndustry needs feedback on work-to-date dataDoes not apply to non-CBM shallow gas

But D 027 does and it has been updated (in draft)(Increased protection of GW resources)


Case Studies – ERCB (Shallow Gas + H20)

Directive 044 (working with AENV)

New industry that required regulation

But, opportunities for review…Says if pump > 5 m3/mth, see AENV for a license (Water Act)But AENV license process unclear

Approval or Code of Practice rather than License?Reality of 20 + year old wells equipped with pump jacks(can’t accurately measure GW levels)


Case Studies – ERCB + EIAs/New OIP

Review of EIAs for energy projectsAs energy regulator, input needed

But, opportunities for review…Reduce iteration

What do Tier minimum search radii actually meanEconomic analysis assessmentWhat constitutes due diligence


Future – ERCB + H20

Draft Directive - Limit Non-Saline and Saline Make-upAs proposed…

Limit of 10 % non-saline water useLimit of 25 % of saline water useLimited provision to recognize:

Efficient operatorsReservoir physics (reservoir retention beyond operator control)

Expected outcome = slow pace of Alta. developmentOK if that is the intent


Future – ERCB + H20Draft Directive 008 – surface casing, water wells locations, etc

As proposed (updated)…Increased protection of GW-SW resources

Depth of surface casing related to water well searchDrilling near river valleys (high hazard areas listed)Conductor casing and BOPs (for flowing artesian conditions)


Alberta and Water – the Future

So where are likely going with water in Alberta?(we need to get this right)


Coalbed Methane

Public Issue: CBM impact on GW supplies?

The future?Shallow gas here to stay, expansion likelyMore homeworkEducation and ownership

What role must GW professionals play?Govn’t = Increased staffing and fundingPrivate = Mentoring and education


Large Energy Projects

Public Issue: Water use, cumulative impacts, etcThe future?

Expansion (definite, but timing?)More homeworkEducation and ownership

What role must GW professionals play?Govn’t = Increased staffing and fundingPrivate = Mentoring and education


Rural (Counties) Relying on GWPublic Issue: Is water managed sustainably?

Why?Limit understanding of GWLimited monitoring

The future (present)?Initiating GW monitoringProvincial or federal funding assistance required

What role must GW professionals play?Work with Counties (AENV, ARC, AGS, PFRA, etc)Direct and execute studiesInteract with related disciplinesKnowledge transfer and mentoring


Counties (continued)

Issue: Approving residential developments?Why?

Approved on an individual basisNo cumulative consideration

The future?Improved understanding of GW resourcesCumulative approach

What role must GW professionals play?Work with Counties (AENV, Alta Ag., PFRA, etc)Direct and execute studiesInteract with related disciplinesKnowledge transfer and mentoring


Watershed Mgmnt PlansIssue: Where is watershed mgmnt going?

Why?SW well understood, GW - notComponents considered in isolation Who will take the lead (AENV, ARC, AGS, ERCB)?

The future?Uncertain because of uncertain commitment to funding

What role must GW professionals play?Direct and execute studiesInteract with related disciplinesKnowledge transfer and mentoring


So…, where do we go?Water requires stable funding

$50-100 million/yr for next 5-10 yrsHow do we do that?

Get and keep water on the radar screenDecide on who will take the leadIncrease dialogueAlberta requires a high profile water conferenceCould be WaterTech


The Future will Happen

But how?Wishful thinking inadequateWe will be judged by our kidsWhat role will you play?


ClosureThank YouQuestions & “Some” Answers

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