Peace River Regional District Committee of the Whole

Transcription

1 Peace River Regional District Committee of the Whole Encana Municipal Outreach Dawson Creek November

2 Peace River Regional District Agenda 1. Opening Remarks 2. Introductions 3. Encana CRP Development 4. Water Resource Hub 5. Veresen Midstream LP 6. Sunset Prairie Lodge 7. Regional Water Stewardship

3 Encana CRP Development Montney Development Premier Montney acreage Dominant position in fairway sweet spot Encana Montney Development Option value Fairway spans dry gas to oil Liquids rich inventory growing Large horizontal drilling inventory Up to 6 fully proven stacked horizons Predictable, repeatable and scaleable results Great wells, keep getting better Tower CUTBANK Saturn South (Sunrise) PEACE RIVER ARCH Gordondale Partnerships have bolstered corporate and asset balance sheet Pipestone Growth driven by processing and transportation capacity expansions 3

4 Encana CRP Development Montney Development Padsite development 531 wells drilled to date pads ~4,300 well inventory Processing development 710 MMscf/d compression (current) 800 MMscf/d compression (planned) 1,000 MMscf/d processing (planned) Pipeline development Cutbank Liquids Link (C3+) SCLH Liquids Link (C5+) 4

5 Sunrise Sweet Gas Plant W6 400 MMscf/d Sweet Gas Plant Status Encana CRP Development Infrastructure Development Licensed In Construction ~10% complete On-Stream Date: Q Tower Sweet Gas Plant W6 200 MMscf/d Sweet Gas Plant Condensate Stabilization Water Resource Hub Status Licensed In Construction ~7% complete On-Stream Date: Q4 2017

6 Saturn Sweet Gas Plant W6 400 MMscf/d Sweet Gas Plant 200 MMscf/d Compression Status Encana CRP Development Infrastructure Development Licensed Construction ~1% complete On-Stream Date: Q2-Q Dawson South Liquids Hub SE 31-25W6 180 MMscf/d Battery Site 10,000 bbl/d Liquids Handling Condensate Stabilization Status In Stakeholder Consultation and Notification On-Stream Date: Q4 2016

7 Water Resource Hub W6 P3 Facility Inlet expansion Facility Water Supply expansion Status Encana CRP Development Infrastructure Development C&N complete Finalizing engineering for licensing On-Stream Date: Q Sunrise Sweet Gas Plant W6 400 MMscf/d Sweet Gas Plant Status LRP

8 Water Resource Hub W6 Scope: Two 100,000 bbl tanks ~50,000 bbls/d emulsion capacity ~42,000 bbl/d discharge capacity Filtration, storage, & distribution Benefits: Significant reduction in surface water requirements for hydraulic fracturing Significant reduction in heavy haul truck traffic Operational Cost Savings Completion Capital Cost Savings Improved Condensate Pricing

9 16-36 Water Resource Hub W6 How does it work? Montney produced water Source water Pipelines Separation Successes to date: Volume & rate delivered to completions Source water wells performance Reduction in truck traffic Pads completed with WRH

10 Veresen Midstream LP 5.1 Creative Win-Win Midstream Agreement Innovative fee-for-service midstream agreement with sale of certain infrastructure Plants Compressor sites Natural Gas production pipelines Encana will continue to operate the related facilities and lead future infrastructure design and construction

11 Sunset Prairie Lodge 5.1 Temporary worker lodge to accommodate our facility construction workforce Located on crown land on Sunset Prairie Pasture ~ 55 km northwest of Dawson Creek Lodge development and occupancy rates will increase gradually in alignment with facility construction process Key Milestones: Received approval permits (lodge/access roads from OGC (Sept 2014) Site preparation: October - December 2014 First occupancy April 15, 2015 (200 rooms) Up to 1250 rooms by June 1, 2016

12 Responsible Development Programs Focused on Creating a Safe, Respectful Workplace Camp Code of Conduct Outlines Encana s expectations for respectful behaviour at Sunset Prairie Lodge Alcohol and Drug Policy Minimize the risk of unsafe and unsatisfactory performance due to alcohol or drugs Non-harassment Practice Any form of bullying or harassment is a violation of Encana s non-harassment practice Encana s Integrity Hotline Concerned individuals can anonymously report a violation, register a complaint Courtesy Matters Sets clear expectations for respectful conduct throughout all stages of our development

13 Community Considerations Programs to Reduce Impact on Local Community, Infrastructure and Municipal Services Safety and Security Controlled Access to Sunset Prairie Lodge 24/7 security presence at the access gate and within the lodge (includes video surveillance) crews shuttled by bus to/from work sites Security fencing around lodge; discourage unauthorized departures, visitors, protect lodge residents from wildlife o Zero tolerance for possession and use of alcohol or illegal drugs o Use of certified and qualified drug detection dogs and handlers o Security advisors (retired Law Enforcement and members of Rural Crime Watch) o Strong working relationship with local enforcement agencies Offset impact on community services and infrastructure provide medical services and entertainment options onsite

14 Promoting Local & Aboriginal Spend Creation of Regional Economic Benefit Proactive communication with Chamber of Commerce Explored opportunities for local and Aboriginal Communities to expand business ventures New business opportunities given scope of project and services required Promoted awareness internally on First Nation business and key joint venture partnerships Focus on capacity building and building strong partnerships with the successful JV s Shared Commitment to Education and Training o As Sunset Prairie Lodge occupancy increases, so will economic benefit and job opportunities Promote use of local services/contracts A variety of services have been sourced out of local and or surrounding communities: Dawson Creek Tomslake Fort St John Farmington First Nations Communities 84% of total contracted work to date has been sourced local & Aboriginal Continuing to Grow local community partnerships Northern Lights College Camp Cook, Aesthetics/Barber programs/services Local recycling Local art

15 Regional Water Stewardship Responsible Water Management is Critical to the Success of our Development Plan Our water management ranking consists of Saline Source Water Wells Reclaimed water Fresh/Recycled Water Address short-term vs long-term water needs Balancing Social / Environmental & Economic Considerations Other Considerations: o Changing Regulatory Framework o Water Sustainability Act 3 year transition on private water sources Historical Climate Concerns Stage 4 Water Restrictions in the South Peace Logistics of Water Management Water Resource Hub, Storage Pits, C Rings, Temp & Permanent Water Flowlines

16 Water Sourcing and Storage: Phased Development 5.1 Development (Long-Term) Exploration (Near-Term) Minimal Infrastructure in place Focus on easily accessible surface water sources (dugouts) Storage: Pits, C-Rings Surface Water Evaluation(Mid-Term) Find sweet spot for resource Design hub areas Test unused water resources (fresh to saline aquifers, effluent, etc.) Storage: reservoirs, C-Rings, dugouts Shallow Groundwater Resource play hub areas and permanent pipelines All water sources understood Long-term diversion licenses Storage: Lined pits, above ground tanks, dugouts Deep Groundwater & Alternative Water Sources In many cases, water will come from a mix of surface water, shallow non-saline, deep saline sources and recycle-reuse

17 Questions? 5.1