At its October 11, 2018 meeting the Regional Board resolved:

“That the BC Oil and Gas Commission (BC OGC) be advised that the Regional Board wishes to

discuss the following topics with them at the November 8, 2018 Board meeting:

OGC-ALC Delegation Agreement

Farmington Community Working Group structure, direction and measuring its success to

evaluate applicability of the structure for use in other areas”

and,

“That the BC Oil and Gas Commission be advised that the Regional Board wishes to discuss the

anticipated impact of the final investment decision on the ‘LNG Canada’ project in Kitimat, BC on

the Peace Region during their delegation to the November 8, 2018 Board meeting.”

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November 8, 2018

Presentation to

PRRD

Nov. 8, 2018

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November 8, 2018

Introductions

2

• Dave Nikolejsin – Deputy Minister, MEMPR

• Paul Jeakins – Commissioner and CEO, BCOGC

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November 8, 2018

Agenda

3

• ALC/Commission Delegation Agreement

• LNG Canada and Coastal GasLink projects

• Community working group:

• Structure, direction, measuring success

• Update on work to date

• Questions?

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November 8, 2018

4

Montney ALR – LocationD-3

November 8, 2018

5

• Originally implemented January 2004

• 2013 rewrite focused on:

• Adapting to shale gas development

• Clearer expectations on locating activities

• Reclamation requirements

• Better enforceability

• Greater proportion of decisions vs exemptions

• 2017 update added:

• Enhanced reporting

• Additional clarity

ALC/Commission

Delegation Agreement History

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November 8, 2018

Delegation Agreement –

Commission Decisions

6

1. Does the proposal need to impact ALR land?

2. Jurisdiction

• Appendix 1 criteria

• Application provided to Regional District / Municipality and

Ministry of Agriculture

3. Considerations (* also consider for exemptions)

• ALC Act requirements

• Schedule A report

• Appendix II rationale* – location and amount of impacted ALR

land in relation to agricultural land and farming operations

• Likely duration of non-farm use

• Concerns raised by regional district or Ministry of Agriculture

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November 8, 2018

Updates to the Oil and Gas

Activities Act, through passing

of Bill 15, have allowed the

Commission to improve the

funding model and provide

new tools to complete the

restoration of orphan sites in a

timely manner:

• Increasing the production

levy and use of a new

liability levy to fund orphan

site restoration maintains

the “industry pays” model,

ensuring no direct cost to

taxpayers.

Bill 15 – New Reclamation Tools

7

• Commitments to work collaboratively with

First Nations to develop restoration and

reclamation partnerships.

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November 8, 2018

LNG Canada & Coastal GasLink

8

• Both projects already permitted by the

EAO and the Commission

• LNG Canada export terminal permitted

by the EAO in July 2015 and the

Commission in December 2015

• Coastal GasLink pipeline permitted by

the EAO in October 2014 and all

primary OGAA pipeline and facility

permits issued by the Commission

between May 2015 and April 2016

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November 8, 2018

LNG Canada & Coastal GasLink

9

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November 8, 2018

10

Impact of site construction

in PRRD:

Pipeline

• Proposed compression &

metering facility

(Groundbirch)

• Compression station

(near Chetwynd)

• Proposed work camp

(south of Chetwynd)

Well pads and other

infrastructure

LNG Canada & Coastal GasLinkD-3

November 8, 2018

LNG Canada & Coastal GasLink

11

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November 8, 2018

Community Working Group

12

• Structure, Direction, Measuring Success

• Update on work to date

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November 8, 2018

13

Community Working Group - Structure

10 community members

3 PRRD representatives

2 Commission representatives

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November 8, 2018

14

Community Working Group – Timeline ‘18

Consultant meets with

PRRD area directors,

mayors and land

owners from mid-July

to early Aug.

July August

14

Commission holds

initial meeting with

nine land owners

28

Land owner meeting –

address by Commission

Executive VP and COO,

Ken Paulson

18

September

Land owner meeting –

timing, planning and

consultation &

notification discussed

October

16

Land owner meeting –

permitting, consultation

& notification discussed

November

13

Next meeting

– ALR/ALC

Delegation

agreement

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November 8, 2018

Update – Work to Date

15

As a result of the community working group meetings:

• KSMMA Seismicity Order implemented

• Farmington Noise Order and Update to Noise Guidelines

implemented

• Discussions around Consultation and Notification

o Consider a sign off process to ensure land owners are

receiving consultation package

o Require C&N letters to outline resources available to land

owners including Land Owner Liaison contact information

o The Commission provides opportunity for land owners to

meet and discuss how concerns raised during C&N were

considered in a decision regarding activity on their land

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November 8, 2018

Seismicity Order

Section 75 Oil and Gas Activities Act

• On May 14, an Order was issued to industry to undertake numerous actions before, during and after hydraulic fracturing operations within the newly designated KSMMA.

Intent

• Ensure companies are notifying residents when undertaking completion operations, and taking appropriate operational measures at a well where there could be induced seismic – and felt – events.

16

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November 8, 2018

Noise OrderSection 75 Oil and Gas Activities Act

• On Oct. 26, an Order was issued to industry to implement a Noise Management Program and a site specific Noise Mitigation Plan when operations are within 800 m of residents or when concerns are expressed during the permit application consultation & notification process.

Intent

• Ensure companies are notifying residents prior to undertaking operations regarding likely source of the noise, noise levels and likely noise duration within the FDA.

17

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November 8, 2018

Working Group - Going Forward

• Continue to work together to find solutions:

Excessive Light

Air Quality

Road Traffic

• Invite industry to participate in Working Group (currently meeting separately)

• Build on successes:

Increase awareness of seismicity & implementation of KSMMA

Increase awareness of new noise regulations

Expand working group model to other communities?

• Commitment of all parties to improve the quality of life for those living within the Montney play.

18

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November 8, 2018

Working Group – Measuring Success

• Putting community input into action:

Seismicity Order

Noise Order

Consultation & Notification Discussions

19

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November 8, 2018

QUESTIONS?

Questions?

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November 8, 2018