Water Licence Application Manual

Transcription

1 Water Licence Application Manual January 2018 Version 1.7 BC Oil & Gas Commission 1

2 About the Commission About Us The BC Oil and Gas Commission is the singlewindow regulatory agency with responsibilities for regulating oil and gas activities in British Columbia, including exploration, development, pipeline transportation and reclamation. The Commission s core services include reviewing and assessing applications for industry activity, consulting with First Nations, cooperating with partner agencies, and ensuring industry complies with provincial legislation and all regulatory requirements. The public interest is protected by ensuring public safety, respecting those affected by oil and gas activities, conserving the environment, and ensuring equitable participation in production. For general information about the Commission, please visit or phone Mission We regulate oil and gas activities for the benefit of British Columbians. We achieve this by: Protecting public safety. Respecting those affected by oil and gas activities. Conserving the environment. Supporting resource development. Through the active engagement of our stakeholders and partners, we provide fair and timely decisions within our regulatory framework. We support opportunities for employee growth, recognize individual and group contributions, demonstrate accountability at all levels and instill pride and confidence in our organization. We serve with a passion for excellence. Vision To provide oil and gas regulatory excellence for British Columbia s changing energy future. Values Respectful Accountable Effective Efficient Responsive Transparent

3 Table of Revisions The Commission is committed to the continuous improvement of its documentation. The table below summarizes revisions to the Road Permit Application and Operations Manual. Revisions are posted to the documentation section of the Commission s website at the beginning of every month and are effective one month after posting, unless otherwise noted. For more information about the Commission s monthly revisions, and for details of this month s revisions, please visit the Documentation Section of the Commission s website. Stakeholders who would like to provide input or feedback on Commission documentation may send comments to OGC.Systems@bcogc.ca. Posted Date Effective Date Chapter Summary of Revision(s) March 1, 2016 March 1, 2016 June 23, 2016 June 23, 2016 January 8, 2018 February 1, 2018 All Chapter 1, 2, 3, Appendix B Chapter 3 Updated to reflect the implementation of the Water Sustainability Act. For more information, refer to INDB on the Commission s website. Updated to reflect the release of the Oil and Gas Activity Application Manual. Removed The Commission does not have a Dam Safety Officer designated under the WSA. Water licence applications involving dams will be referred to the Dam Safety Officer with the Ministry of Forests, Lands and Natural Resource Operations. From Section C as the Commission now has a designated Dam Safety Officer. BC Oil & Gas Commission 3

4 Table of Contents Preface... 6 Manual Structure... 6 Manual Scope... 6 Additional Guidance... 6 Compliance and Enforcement... 7 Chapter 1: Water Licencing Overview... 8 Water Licence Applications... 8 Water Licence Tenures... 9 Associated Permits or Authorizations... 9 Chapter 2: Pre-Application Requirements New Company Application Form Chapter 3: Preparing a Water Licence Application Determination of Water Source Type Considerations for Water Licence Planning & Design Application Fees Application Submission Chapter 4: Application Review & Determination Process Application Review & Determination Chapter 5: Licence Term, Cancellations, Transfers & Replacements Term of Licence Beneficial Use Suspension and Cancellation of Rights BC Oil & Gas Commission 4

5 Licence Transfers Licence Expiry and Replacement Abandonment Amendment of a Water Licence Chapter 6: Post-Approval Requirements Reporting and Notice Requirements Appendix A: Water Licence Application Instructions Appendix B: Water Management Plan Template Appendix C: Hydrogeological Assessment Report for Water Source Wells Appendix D: Groundwater Assessment Requirements - Dugouts Appendix E: Construction Plans Appendix F: Water Licence Application Fee Table BC Oil & Gas Commission 5

6 Preface The Water Licence Application Manual is intended to provide oil and gas operators an overview of the requirements and procedures for applying for and obtaining a water licence from the Commission. The manual has been prepared to be as comprehensive as possible; however it is not all encompassing and may not cover all situations. Where circumstances or scenarios arise and are not covered by the manual, contact one of the Commission s Authorizations Managers for assistance. Manual Structure Beginning with pre-application requirements, this manual guides the user through application preparation; the Commission s review and determination process; licence terms, transfers, cancellations and replacements; pre- and post-construction requirements; and compliance. The appendices include documents to reference when compiling information required by the Commission, as well as the requirements for supporting documentation and assessments and the preparation of a water management plan. Manual Scope The manual is limited in scope to the Commission s application processes and the authorities and requirements established within the Oil and Gas Activities Act (OGAA) or specified enactments established thereunder and the Water Sustainability Act. Carrying out oil and gas and related activities may require additional approvals from other regulators or create obligations under other statutes. It is the permit holder s responsibility to know and uphold all of their legal obligations. Additional Guidance Additional Commission manuals and guidelines are available in the Documentation Section of the Commission s website. The glossary page of the Commission s website provides a comprehensive list of common terms, and OGAA and its regulations and the Water Sustainability Act, the Water Sustainability Regulation, the Groundwater Protection Regulation, and the Dam Safety Regulation provide the primary source of legal definitions. BC Oil & Gas Commission 6

7 Compliance and Enforcement This document does not replace legislation or affect legislative requirements. All licensees are ultimately responsible for ensuring they understand and meet all requirements of the Oil and Gas Activities Act, the Water Sustainability Act and their licences. Should a person not comply with legislated requirements or their water licence the Commission may take compliance and enforcement actions. For more information regarding the Commission s Compliance and Enforcement processes, please refer to the Compliance and Enforcement Manual. BC Oil & Gas Commission 7

8 Chapter 1: Water Licencing Overview Water is a Crown resource. The Water Sustainability Act vests the water at any time in a stream and the percolation and flow of groundwater to the Crown. The use of water from a stream or groundwater for oil and gas or related activity requires a water use approval or a water licence from the BC Oil and Gas Commission (Commission) through the Water Sustainability Act. Commission staff are designated as Regional Water Managers and Assistant Regional Water Managers by the Deputy Minister of the Ministry of Forests, Lands and Natural Resource Operations, with the authority to administer the Water Sustainability Act for water licensing for the oil and gas sector. Mandatory licensing and approvals enable the Commission to monitor and track water consumption and withdrawal locations, thereby bettering sustainable water management. The primary objective for water licensing is that of efficient and equitable access to Crown water resources to support sound development of the oil and gas sector, in a manner ensuring environmental protection and public safety, and not impairing First Nations and public rights, or existing water rights. Water Licence Applications Access to water can be obtained through either a water licence or water use approval. Information on the Commission s processes for water use approvals can be referenced in the Oil and Gas Activity Application Manual. A water licence is commonly used as authority to access water for activities exceeding a two year period. These activities will include such purposes as well drilling and well completions over a number of years in a lease area, road maintenance or winter access requirements, or where a permanent water infrastructure (e.g., a pipeline) is used as part of a water supply strategy. When issued, a water licence provides rights to long-term water access through the first in time, first in right (FITFIR) principle of the Water Sustainability Act. Applications and supporting information for a water licence are submitted using the online application portal, located here: A summary of the information documentation requirements for online submission of a water licence application is provided in Appendix A. BC Oil & Gas Commission 8

9 Details for specific supporting information requirements are provided in: Appendix B (Water Management Plan Template) Appendix C (Hydrogeological Assessment for Water Source Wells) Appendix D (Groundwater Assessment for Dugouts) Appendix E (Construction Plans), and Appendix F (Water Licence Application Fee Table). Water Licence Tenures Water licence tenures will be assigned under Section 9 of the Water Sustainability Act and entitle the holder to the rights granted under Section 7 of the Water Sustainability Act. For oil and gas operators, these rights are predominantly to: divert and beneficially use the quantity of water specified in the licence;; store water; construct, maintain and operate the works authorized by the licence and related works necessarily required for the proper diversion or use of the water or the power produced from the water; make changes in and about a stream necessary for the construction, maintenance or operation of the works referred to above; or to otherwise facilitate the authorized diversion; Water licences associated with oil and gas or related activities will generally be issued with terms of 5 to 20 years. Associated Permits or Authorizations If the proposed activity as described in the water licence application will require associated developments (roads, water storage sites, pipelines and facilities), is associated with a water source well permitted under OGAA, and/or requires the use of Crown land, the Commission may also issue permits or authorizations related to these requirements. These activity types require the submission of separate application packages to the Commission. Applicants are encouraged to submit applications for all operations associated with a water licence prior to or at the same time as the water licence application. For an OGAA regulated water source well, defined in the Petroleum and Natural Gas Act as a hole in the ground drilled to obtain water for the purpose of injecting water into an underground formation in connection with the production of petroleum or natural gas, an OGAA well permit must be obtained, prior to application for a water licence. For information about applications related to associated permits or authorizations, please refer to the Oil and Gas Activity Application Manual. BC Oil & Gas Commission 9

10 Please Note: Any planned associated developments which are in the riparian reserve zone (RRZ) must be identified on the construction plan submitted with the water licence application. If there are differences between activities within the RRZ on submitted applications for associated permits or authorizations and the related water licence application, revisions to the water licence application or amendments to the water license may be required. BC Oil & Gas Commission 10

11 Chapter 2: Pre-Application Requirements Companies applying to engage in oil and gas or related activities in B.C. for the first time must ensure all pre-application requirements have been met. These include the New Company or Corporate Structure Change Application Form. New Company Application Form The New Company Application Form captures general administrative and corporate registry information. Completed Company Holder Application Forms and required attachments must be submitted to the Commission s Permit Operations and Administration department. New Permit Holder Application Forms must be processed by the Commission before submitting any oil and gas activity applications to the Commission.For more information about the New Permit Holder Application Form, please refer to the Commission s Permit Operations and Administration Manual. BC Oil & Gas Commission 11

12 Chapter 3: Preparing a Water Licence Application To obtain a water licence related to an oil and gas activity, applicants must submit a completed water licence application package to the Commission, including all application deliverables, using the online application portal. A water licence application package provides the Commission with the information necessary to complete a thorough review of the proposed activity. This chapter is intended to provide applicants with a comprehensive overview of the regulations and requirements to be considered and/or carried out for the assembly of an application package. Determination of Water Source Type A first step in preparing a water licence application package is to determine the Water Source Type as being surface water or groundwater, as application requirements depend on water source type. The following provides an overview of WSA definitions pertaining to surface water and groundwater and provides guidance regarding determining the Water Source Type. Water Sustainability Act Definitions The Water Sustainability Act (WSA) vests the water at any time in a stream and the percolation and flow of groundwater to the Crown. The WSA defines a stream as: (a) a natural watercourse, including a natural glacier course, or a natural body of water, whether or not the stream channel of the stream has been modified, or (b) a natural source of water supply, including, without limitation, a lake, pond, river, creek, spring, ravine, gulch, wetland or glacier, whether or not usually containing water, including ice, but does not include an aquifer. A wetland is further defined in the WSA as a swamp, marsh, fen or prescribed feature. BC Oil & Gas Commission 12

13 The WSA defines groundwater as water naturally occurring below the surface of the ground. Under the WSA, all groundwater is considered to be from an aquifer. The WSA defines an aquifer as: (a) a geological formation, (b) a group of geological formations, or (c) a part of one or more geological formations that is groundwater bearing and capable of storing, transmitting and yielding groundwater. Surface Water For water licence applications related to oil and gas activities, the water source type is Surface Water if the point of diversion is from a (A) lake or pond or (B) a river or stream as outlined below. A. Lake/Pond Lakes and ponds are both streams as defined in the Water Sustainability Act. A lake is a body of relatively still fresh water, localized in a basin. Lakes and ponds can be contrasted with rivers or streams, which normally flow. There is no universally accepted criteria to distinguish ponds from lakes, however, as general guidance, ponds can range in size from a few square metres to approximately two hectares, while lakes are generally larger than approximately two hectares. Most lakes are filled and drained by rivers and streams. Ponds can include man-made features. Over time, some pits constructed originally as borrow pits can evolve to develop natural vegetation and habitat characteristics, and become considered as ponds. B. River/Stream A river/stream is a natural watercourse of freshwater flowing towards an ocean/sea, lake or other river, sometimes flowing towards the ground and drying up prior to reaching another water body. Small rivers may also be called by several other names, including stream, creek, brook, rivulet, tributary, rill and crick. A stream in this manual specifically refers to a stream as defined in the Water Sustainability Act. Groundwater For water licence applications related to oil and gas activities, the water source type is Groundwater if the point of diversion is from a (A) water source well or (B) a water source dugout as described below: A. Water Source Well Water Source Wells are defined in the Petroleum and Natural Gas Act (PNG Act) as a hole in the ground drilled to obtain water for the purpose of injecting water into an underground formation in connection with the production of petroleum or natural gas (i.e., water floods, hydraulic fracturing, etc.). Water source wells require a well permit from the Commission under the OGAA. BC Oil & Gas Commission 13

14 Water source wells require a licence to divert and use groundwater, except if accessing deep groundwater, as defined in Section 51 of the Water Sustainability Regulation. To summarize, a licence is required to use groundwater at depths shallower than 300 metre, or at depths between 300 metre and 600 metre if shallower than the base of fish scales or older geological marker that demarcates the boundary between sedimentary rocks of the Lower Cretaceous age and the Upper Cretaceous age. Please Note: The Commission does not issue water licences for groundwater from water supply wells other than those permitted under OGAA as water source wells, even if associated with oil and gas activities (e.g., camp water supply wells). Applications for water licences associated with water supply wells that do not fall under the definition of water source well in the Petroleum and Natural Gas Act, are processed by the BC Ministry of Forests, Lands and Natural Resource Operations, and applications for water licences can be made through Front Counter BC: B. Water Source Dugout If a borrow pit or other earthen excavation is used as a source of water that has naturally accumulated, it is referred to as a water source dugout. The water source type associated with a water source dugout is considered groundwater, and the Commission administers water source dugouts as diversions of water from aquifers under the Water Sustainability Act (an exception is where a stream is physically connected to the dugout, which may make the water in the dugout surface water ). When water is withdrawn from a water source dugout and used for an oil and gas activity, authorization is required either through a water use approval or through a water licence. C. Dams, and the Dam Safety Regulation In some cases the characteristics of the dugout may result in it being classified as a dam under the Dam Safety Regulation (DSR). A dam is a barrier constructed for the purpose of enabling the storage or diversion of water diverted from a stream or an aquifer, or both. The Dam Safety Regulation further classifies dams as: 1 metre or more in height and capable of impounding a volume greater than 1,000,000 m 3 ; 2.5 metres or more in height and capable of impounding a volume greater than 30,000 m 3 ; The dam is 7.5 metres or more in height; The dam has a classification of significant, high, very high or extreme. The volume criteria refer to the live storage of the dam. Refer to the Dam Safety Regulation for details. BC Oil & Gas Commission 14

15 Where a water storage dam or reservoir is classified as a dam under the Dam Safety Regulation, the licence holder must comply with the regulation. Considerations for Water Licence Planning & Design Applicable Regulatory Requirements The water licence application package must be based on planning and design that considers all applicable regulatory requirements including: The Water Sustainability Act and associated regulations (Groundwater Protection Regulation and Water Sustainability Regulation, Dam Safety Regulation, as applicable) The OGAA and associated regulations (Drilling and Production Regulation, and Environmental Protection and Management Regulation, as applicable and as outlined in the Commissions guidance documents). Applicable regulatory requirements and application package deliverables will depend on the nature of the water licence being applied for as well as the associated proposed works. Surface Agreement for Activities on Private Land The Commission may issue a water licence for a point of diversion on or adjacent to private land, but will not authorize activities over private land for works or access, as part of a water licence application. However, activities associated with a water licence to be carried out on private land must still be included on the construction plan for the project. Where activities associated with a water licence are to be carried out on private land such as pumps or access roads applicants are encouraged to develop a surface agreement with the land owner. A surface agreements is not required to be submitted with the application but may be requested by the Regional Water Manager. In cases where a surface agreement with the private land owner cannot be developed, contact the Commission. Activities on Crown Land Information on Crown land access and associated permit applications is provided in the Crown Land Application Manual. Rights Holder Notification and Engagement The province makes every effort to ensure resource management is coordinated and the related oil and gas activities will not adversely affect long-term rights holders interests. The results of the applicant s rights holder engagement activities will be considered as part of the Commission s decision-making process. BC Oil & Gas Commission 15

16 For the purposes of water licence applications, rights holders as defined in the Water Sustainability Act include: water licensees; applicants for a water licence; riparian owners; and owners whose property may be physically affected by the applicant s works. Applicants will notify and engage with rights holders as defined in the Water Sustainability Act and will provide a summary of that engagement with their application, using the Rights Holder Engagement Line List detailed in the Oil and Gas Activity Application Manual. The rights holder notification should be completed 14 days prior to submission of the water licence application. Water Authorization Holders or Applicants: Applicants must notify the holder of any water authorization (licence or use approval) licence holders or water authorization applicants whose water rights may be impacted by the licence being applied for. These rights holders will be downstream of the point-of-diversion you are applying for, on the same stream or lake, or utilizing water from the same aquifer. For surface water sources, these rights holders will usually be in the same major watershed unit (as depicted in the NorthEast Water Tool (NEWT), North West Water Tool (NWWT) or Omineca Water Tool (OWT) map) as the point-of-diversion you are applying for. Water licence holders and applicants can be identified by using the Water Licence Web Query tool or can be queried spatially through NEWT, NWWT or OWT. Riparian Owners: The term riparian owners refers specifically to owners of land along the stream or lake in question, and close to the proposed point of diversion. Applicants must engage riparian owners along the stream or lake in question who the applicant believes may be affected by erosion, deposition or access to the water body from the riparian land as a result of the water licence and related works. The method of notification chosen should be that which the applicant deems most effective and practicable, depending on the size of the water body and/or number of riparian owners to be engaged. In most cases these riparian owners will be proximal to the proposed point of diversion and location of associated works. In addition, in a 2012 Environmental Appeal Board (EAB) process for an appeal of a water licence (Decision No WAT- 013(c)), the EAB made a determination that treaty First Nations have broad rights as riparian owners, providing them with right of appeal to the EAB for water licence decisions. In the situation where the proposed point of diversion is on a lake, all riparian owners along the lake whose rights may be affected may need to be notified and engaged. The regional water manager may require notices to additional riparian owners not notified in advance by the applicant, where it is believed there is potential for the issuance of a water licence to affect erosion, deposition or access to the stream for the land owners. The concept of riparian owners does not exist for groundwater BC Oil & Gas Commission 16

17 Timelines for Rights Holder Engagement Section 14 (3) of the Water Sustainability Regulation specifies a rights holder who has been notified and who wishes to file an objection must deliver the objection within 30 days. To ensure that rights holders have adequate time to review and comment on the application, notice to rights holders should be done at least 14 days prior to submission of the water licence application. Water licence determination will not be completed until rights holder engagement has been completed to the satisfaction of the Regional Water Manager. Unresolved Concerns The Commission encourages companies and the affected rights holder(s) to try to resolve concerns before contacting the Commission. If there are unresolved concerns, the applicant is required to include details of the concerns and the proposed mitigative actions with the application submission. The Commission uses the rights holder engagement documentation for evaluation, after which the Commission may: Make a decision on the application, based on the engagement documentation. Recommend the company continue consultation. Recommend the use of dispute resolution. Written Submissions from rights holders Affected rights holders may make a written submission to the Commission about the application. If an affected party makes a written submission, the Commission will provide a copy of the submission to the applicant. Application deliverables for rights holder engagement Companies are required to submit a Crown Land Status Sheet to the Commission identifying any water licence holders or applicants and any Crown land rights holders engaged. The Commission also recommends the applicant document their completed rights holder engagement process and include with the application submission: A description of the rights holder engagement completed. A list of persons notified. A list of persons consulted. A copy of all notification/consultation information. A description of mutually acceptable agreements made. Engaging First Nations Prior to Application The Commission encourages applicants to initiate and build relationships with First Nations communities by discussing their proposed activities with the communities during BC Oil & Gas Commission 17

18 the project planning phase. Applicants may contact the Commission s First Nations Liaison Officers (FNLOs) to determine which First Nations the Commission will engage respecting a specific application, and for advice about engaging First Nations. Where pre-engagement occurs, an Engagement Log should be used to record all engagements and related details. Engagement logs should be attached as a deliverable within the application package. Engagement logs may be considered in the decisionmaking process, however these engagements do not replace the First Nations consultations carried out by the Commission, as described in Chapter 4. Joint Works Agreement If the proposed works will be connected to another licensee s authorized works a Joint Works Agreement is required to be submitted with the water licence application. Where works require storage the applicant must complete a Schedule 2 - Dam and Reservoir Information Form and submit with the water licence application. Where the water storage structure meets the specifications of a dam under the Dam Safety Regulation, the licence holder will be required to comply with the Dam Safety Regulation. Application Fees All applicants must determine their application fees, based on the proposed activity and its location, and submit them with the water licence application, payable to the Minister of Finance. Application fees are listed in Appendix F of this document. BC Oil & Gas Commission 18

19 Application Submission All water licence applications must be submitted to the Commission through an online application portal. The online application is located at:. Subsequent to the submission of the online water licence application and supporting material, any additional supplementary material required to support an application may be submitted through the online application portal, or the applicant can contact the applicable Authorizations Manager directly. BC Oil & Gas Commission 19

20 Chapter 4: Application Review & Determination Process The Commission completes a review and makes a decision related to all permit applications and amendments submitted for oil and gas and related activities. This chapter provides an overview of the Commission s application review and determination processes. Application Review & Determination The following process map includes the major steps of the Commission s application review and determination processes. The application screening, technical reviews and determination & distribution steps are touched on in more detail below. Figure 4.1 Water Licence Application Review & Determination Process WL-2 Water Licence Application Review & Determination Process WL-1 Water Licence Application Preparation Process Receives decline letter, adjusts application and resubmits to OGC Receives request for additional information Receives notification of determination or Approval Letter Approved WL-3 Water Licence Operation Process Applicant Recieves notice of Application Acceptance If licence will not be used, submit request to cancel licence, as per application manual Declined Technical Reviews & First Nations Consultation Includes reviews related to: - Water Act - EPMR - Hydrological assessment Approvals made as a result of determination may include: - Water Licence, Water Act s.12 Commission WL-2.1 Water Licence Application Screening Process Accepted WL-2.2 Water Licence Application Natural Resource Reviews WL-2.3 Water Licence Application Determination & Distribution FN-1.1 First Nations Consultation BC Oil & Gas Commission 20

21 Please Note: After an application is submitted, the company is referred to as the applicant. Where an application is approved, the company is referred to as the licence holder. Application Screening Phase After an application is submitted through the online portal, it is screened by Front Counter BC and the Commission for completeness prior to the initiation of Commission technical reviews. Applications with missing or incorrect basic information, such as: payment of the application fee, First Nations packages or administrative information, will be returned to the applicant prior to the application entering the screening phase. At the completion of application screening, applications will be either accepted for processing, or declined and returned to the applicant. Declined Applications Incomplete applications are declined and returned to the applicant. A rationale of why the application was declined is sent to the applicant by . After any deficiencies are addressed, the application can be resubmitted. Applications that have been declined are reviewed in order of the resubmission date, not the date of original submission. Accepted Applications When all requirements are met, the application is accepted by the Commission, after which the application is processed and technical reviews begin. Application Technical Reviews Depending on the application s characteristics, location and other circumstances, the Commission will carry out a suite of technical reviews which ensures the application meets all regulatory and guidance requirements. A natural resource review is completed focusing on land and habitat, a hydrological/hydrogeological assessment, and rights holder engagement requirements. Where there are unresolved stakeholder concerns related to the project, the Commission may facilitate dispute resolution activities to seek resolution where possible prior to adjudicating on the application. The Commission also consults with First Nations, as outlined below. As a result of any of the technical reviews and First Nations consultation, staff may follow-up with the applicant to request additional information, mitigation strategies or justification, or to make adjustments to the application. BC Oil & Gas Commission 21

22 First Nations Consultation As an agent of the Crown, the Commission fulfills any provincial obligation to consult with First Nations prior to the authorization of activities under the Water Sustainability Act, the OGAA and related specified enactments. Consultation process agreements have been negotiated between the Commission and several First Nations. Where agreements are in place with a First Nation, the consultation process is guided by the agreement. Where agreements are not in place, the consultation process is guided by the B.C. Interim Consultation Process (ICP). All existing agreements with First Nations and the ICP can be found on the First Nations page of the Commission website. For water licence applications for locations outside of North East BC, and outside of area where Treaty 8 applies, applicants must contact the appropriate Authorizations Manager for direction pertaining to consultation with First Nations. First Nation Consultation Timelines General consultation timelines provided in the agreements or the ICP indicate the amount of time a FN will be given to provide an initial response. The initial response time begins when the First Nation community receives the First Nation consultation package from the Commission. The Commission s other technical reviews are carried out as the First Nation completes its review. The initial response times are not intended to represent the time it is expected to take to complete consultation. Where concerns are identified by the First Nation, there may be additional time required to complete the consultation process. As part of addressing concerns the Commission may facilitate meetings between the First Nation and the applicant, if necessary, to discuss the First Nation s concerns and proposed solutions. Administrative Boundaries Administrative boundaries established through consultation agreements guide consultation for each First Nation. Where there is no agreement in place, the Commission follows the provincial direction and defaults to the boundaries in the Consultative Areas Database. Aboriginal Community Notice There are four Aboriginal communities the Commission provides information about oil and gas activities through an Aboriginal Community Notice: BC Oil & Gas Commission 22

23 Application Revision Kelly Lake Cree Nation (KLCN) Kelly Lake First Nation (KLFN) Kelly Lake Metis Settlement Society (KLMSS) Acho Dene Koe (Fort Liard First Nation) (FLFN) After submitting an application, the applicant may submit revisions to the application. Revisions are only accepted prior to a statutory decision being made related to the application. To document the revision, the applicant must submit a new application, updated application deliverables and a letter describing and justifying the revision, using the online application portal. When a revised application is submitted, it replaces the original application. As with declined applications, revised applications are reviewed in order of the resubmission date. Application Withdrawal To withdraw an application, an applicant is required to submit an abandonment request using the online portal at: Please Note: Application withdrawals will only be accepted prior to a determination being made on the application. BC Oil & Gas Commission 23

24 Determination & Distribution After all technical reviews are complete, the Commission will make a determination to approve or reject the proposed activity. The determination is made based on the results from each of the technical reviews. For approved water licence applications, the Commission will issue the licence under the Water Sustainability Act, which may include conditions of approval. Distribution Upon determination, the Commission will provide notice of decision to the applicant. Where the application is approved, the licence will be distributed to the licensee. In addition, the Commission distributes the permit to all First Nations communities consulted, affected land owners, objectors, and any other applicable agencies, which may include: the Ministry of Forests, Lands and Natural Resource Operations and WorkSafeBC. BC Oil & Gas Commission 24

25 Chapter 5: Licence Term, Cancellations, Transfers & Replacements This chapter summarizes the term of a water licence, as well as licence cancellations, abandonments, transfers, amendments and replacements for expiring licences. Term of Licence The term is the length of time for which the licence is valid and is specified in the licence. Water licences associated with oil and gas or related activities will generally be issued with terms of 5 to 20 years. The expiration date is noted on the licence. The term of a water licence can be extended, with approval of the Regional Water Manager. Beneficial Use The licence holder must make beneficial use of the water under licence for the purposes, terms and conditions specified in the licence, over a three year period, as specified in section 23 of the Water Sustainability Act. Suspension and Cancellation of Rights The rights of a licensee under a water licence can be suspended and/or cancelled by the Regional Water Manager for a number of reasons as specified in section 30 of the Water Sustainability Act, including not making beneficial use of the water held under licence and failure to comply with a term or condition of the licence. A licence holder may also cancel their licence if the licence will not be used. Licence Transfers Water licences are associated with appurtenant land, mine or undertaking such as a petroleum lease, and are transferred in whole or part to the new owner should there be a conveyance or other dispensation of the appurtenant land, petroleum lease, mine or undertaking (including the petroleum lease). Transfer of a water licence is done using the online application portal. BC Oil & Gas Commission 25

26 Licence Expiry and Replacement A licence automatically terminates upon the expiry of the licence. Where a licence holder desires to maintain the licenced rights, an application to extend the term or replace the existing licence must be submitted. Replacement applications must be submitted at least 90 days prior to the expiration of the existing licence to ensure sufficient time for review prior to expiry. To apply for a replacement the normal application process must be followed. The application form must indicate the application type as replacement of expired licence. Abandonment When a licence is no longer required or being used, the licence holder can apply to abandon the licence, using the online application portal. Abandonment will usually involve the removal of associated works and the restoration of site disturbance. Amendment of a Water Licence The Regional Water Manager may amend a licence to do any of the following: Extend the time set for beginning construction of the works. Extend the time set for completion of the works. Extend the time set for making beneficial use of the water. Authorize additional or other works than those previously authorized. Correct an error in the licence. Remove a provision of the licence inconsistent with the Water Sustainability Act. Authorize the use of water for some purpose other than specified in the licence. Extend the term of the licence. Increase or reduce the quantity of water authorized to be diverted or stored if it appears to have been erroneously estimated. In addition, the Regional Water Manager may transfer or apportion existing water rights to others, in relation to changes in order of appurtenance. BC Oil & Gas Commission 26

27 Chapter 6: Post-Approval Requirements After a water licence is issued, the licensee must meet pre and post-construction requirements, as detailed below. All operations related to a water licence must be carried out in compliance with the Water Sustainability Act and its regulations as well as the terms and conditions contained within the licence. Reporting and Notice Requirements Notices of Construction Start All companies must notify the Commission a minimum of 48 hours before beginning construction activities related to the water licence (except for a licence associated with an OGAA regulated water source well subject to notice requirements of the Drilling and Production Regulation, or a water source dugout that has already been constructed), including clearing land or setting up equipment. They must include all sections of the infrastructure to be constructed. Notices are to be submitted in format and must include the following information: Water licence noted in subject line. Permit Holder Company Name. Construction Contact (phone and ). Commission file number. Date of Construction Start. Notices must be ed to the Commission, at: OGC.ExternalNotifications@bcogc.ca. Post-Construction Plans The submission of post-construction plans is required within 60 days of completed construction. Please refer to the Commission s Permit Operations Administration Manual for detailed submission requirements and process. Water Withdrawal Reporting Companies holding surface water licences or groundwater licenses for dugouts issued or administered by the Commission are required to submit monthly water withdrawal data to BC Oil & Gas Commission 27

28 the Commission on a quarterly basis. Monthly water withdrawal data must be reported for each approved withdrawal location. Data must be reported quarterly, in tabular format, as an Excel (XLS or CSV) file, and ed to: OGCWater.VolumeData@bcogc.ca. Companies holding groundwater licences for water source wells are required to report monthly water use under regulatory requirements of Section 72 of the Drilling and Production Regulation. Monthly water withdrawal data must be reported for each water source well using the Minister of Finance S-1 Form (refer to BC OGC Directive , Reporting of Water Production and Flow Back Fluids). By housing and monitoring water use statistics, the Commission is better equipped to manage water use approvals and licences reflecting the best interests of the environment, industry and the people of British Columbia. Recording accurate information allows the Commission to better consult with all major stakeholders in addressing water issues and usage. BC Oil & Gas Commission 28

29 Appendix A: Water Licence Application Instructions Applications and supporting information for a water licence are submitted using the online application portal, located here: Information to support a water licence application is attached and submitted using the online application portal. First Nations Consultation Package Requirements The applicant is required to identify all communities requiring consultation, and to attach complete First Nations/Aboriginal Community packages for each community. First Nation Liaison Officers are also available to answer questions and provide guidance on related issues. Attachments to be submitted include: Cover letter: one copy of a Cover Letter with the appropriate application categorization and one copy of the application for each First Nation whose administrative consultation area overlaps the proposed project area. Application form: one copy of the completed application form. Mapping requirements: copy of the map showing the point of diversion and any associated works. Water Management Plan: a copy of the Water Management Plan (Appendix D). Additional information: any attachments (for example, mitigation plans or justifications) submitted as required by Block G, Additional Information Requirements, of the application. BC Oil & Gas Commission 29

30 Application Deliverables The application deliverables block provides a summary of the documents to be included with the application. Application Fee ) Submit as per online application process. Refer to Appendix F: Water Licence Application Fee Table Drawing and/or Attach with the application package. Survey Plan Supporting Attach with the application package, as appropriate BaseMaps (topography, geology, aquifer maps) Schedule of Attach with the application package. appurtenant Petroleum and Natural Gas leases and OGAA permits Construction Plans Attach with the application package. Water Management Plan Hydrogeological Assessment Report for Water Source Wells Refer to Appendix E: Construction Plans Attach with the application package. Refer to Appendix B: Water Management Plan Template Storage Attach where applicable to the application package. Groundwater Assessment for Dugouts Joint Works Agreement Please Note: Specific deliverable requirements are dependent on the nature of the application. If off-stream storage is proposed, attach the Schedule 2: Dam and Reservoir Information Attach with the application package, where applicable. Refer to Appendix C: Hydrogeological Assessment Report for Groundwater Licence Applications for Water Source Wells Attach with the application package, where applicable. Refer to Appendix D: Groundwater Assessment for Water Licence Applications for Dugouts Attach where applicable to the application package. BC Oil & Gas Commission 30

31 First Nations Consultation Package Crown Land Status Sheet and Line-List Attach one copy per community to the application package. Refer to requirements outlined above in this section above, and in previous Sections. Attach Rights Holder Engagement Line List and Crown land status sheet detailing notification and engagement with rights holders as defined in the Water Sustainability Act. Other List any additional attachments included with the water licence application package. BC Oil & Gas Commission 31

32 Appendix B: Water Management Plan Template A Water Management Plan is required for any water licence application for a surface water or groundwater source. The following provides guidance regarding the content of a Water Management Plan. The specific requirements of the Plan may vary depending on the source being surface water or groundwater, and the volume of water requested in relation to the volume of water available in the source. Primary Purpose of the Water Management Plan Provide detailed information on the water supply. The applicant will detail the hydrology of the surface water body or water bodies, for which they are applying to withdraw water, or for groundwater aquifers, reference hydrogeological information or testing conducted for the hydrogeological assessment (Appendix B). Provide detailed information on the water demand, including details of the quantities of water required for specified purposes. Provide detail on construction and operational activities, including water intakes and pipelines, water source wells, water distribution, locations of use, water storage requirements, etc. Provide information, or reference separately submitted relevant technical information or reports, to ensure that public safety and the environment will not be affected. This includes assessment of the environmental flow needs of the stream associated with a surface water application, or a stream that is reasonably likely to be hydraulically connected to the aquifer for a groundwater application, as specified in s.15 of the Water Sustainability Act. Document and address any issues that may exist with respect to First Nations rights that may be affected by the issuance of a water licence, and reference any relevant separately submitted information or reports. Document and address any issues that may exist for individuals or groups that may be directly affected by the issuance of a water licence (e.g., neighbouring land owners, downstream water rights holders, or others), and reference any relevant separately submitted information or reports. Introduction BC Oil & Gas Commission 32

33 This section contains a description of the basic purpose of the project, normal operational characteristics, and any unique or important design considerations associated with the site or project. Construction and Operational Activities A construction schedule and methodology should be proposed in this section, including a description of the water intake, pumping facility, water conveyance methods, etc. For surface water sources, describe how any in-stream works will be done and timed, such that water quality and quantity impacts are minimized. For groundwater supplies, describe the associated subsurface and surface works. If an intake and/or pumping facility is proposed, provide details on design, construction, siting and operation. Describe storage works such as dugouts or reservoirs, existing or proposed, to be used to provide temporary storage of water acquired from the proposed sources (do not include tank storage). Note: where works require storage the applicant must complete a Schedule 2 - Dam and Reservoir Information Form and submit with the water licence application. Typically, the first water storage works after pumping from the water source will be defined as works in the water licence, and subsequent water storage will not be associated with the licence but will be approved through separate Crown land applications. During the application review and determination, the Regional Water manager will determine what water storage works will be specified as works in a water licence. Detail the water transportation system, from the water source to the location of use (e.g., permanent pipeline, temporary pipeline, trucks, etc.) If there are land owners proximal to a proposed intake and pumping facility, describe what will be done to minimize or mitigate effects on the proximal land owners from construction and operational activities, including effects such as noise associated with the operation of a water pumping facility. Hydrology and Water Supply Surface Water Applications This section contains a description and assessment of water availability from the proposed surface water source. Hydrogeological and groundwater supply information is submitted separately as part of required assessment reports as outlined in Appendix B and C. Water Supply BC Oil & Gas Commission 33