Quarterly Oil and Gas Water Management Summary. First Quarter 2017 (Jan - Mar)

Transcription

1 Quarterly Oil and Gas Water Management Summary First Quarter 7 (Jan - Mar)

2 PURPOSE This Quarterly Oil and Gas Water Use Summary presents short-term water use and water licence data from the Q January to March 7 period. Previous annual water use reports and quarterly water use summaries are available on the BC Oil and Gas Commission website at FIRST QUARTER 7 - OIL AND GAS WATER MANAGEMENT SUMMARY

3 TABLE OF CONTENTS ROLE OF THE BC OIL AND GAS COMMISSION... 4 HOW WATER IS USED 5 HOW WATER IS ACCESSED 5 LONG-TERM WATER LICENCES AND USE... 6 TABLE - SUMMARY OF WATER LICENCE AND USE FOR OIL AND GAS ACTIVITIES FROM JANUARY TO MARCH 7 6 TABLE - OIL AND GAS RELATED WATER LICENCES THAT WITHDREW WATER IN 7 - Q 6 SHORT-TERM WATER APPROVAL AND USE... 7 TABLE - SUMMARY OF SHORT-TERM APPROVAL AND USE FOR OIL AND GAS ACTIVITIES FROM JANUARY TO MARCH 7 7 INTRODUCTION OF WATER SUSTAINABILITY ACT... 8 TABLE 4: SUMMARY OF WATER ALLOCATION AND USE FOR OIL AND GAS ACTIVITIES IN 7, ORGANIZED BY OGC WATER MANAGEMENT BASIN... FIRST QUARTER 7 - OIL AND GAS WATER MANAGEMENT SUMMARY

4 Role of the BC OIL AND GAS COMMISSION The BC Oil and Gas Commission (Commission) is the provincial 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. terrace LIARD BASIN fort nelson CORDOVA EMBAYMENT HORN RIVER BASIN MONTNEY fort st. john prince george dawson creek commission office locations northeast B.C. natural resource plays The Commission is responsible for reviewing, assessing, and making decisions on water authorizations from both surface and subsurface water sources. The Commission has the expertise and tools to make informed water allocation decisions, and protecting and maintaining environmental and community water needs are its first priorities. kelowna victoria Commission Office Locations Throughout B.C. 4 FIRST QUARTER 7 - OIL AND GAS WATER MANAGEMENT SUMMARY

5 HOW WATER IS USED Water is used for various purposes in the oil and gas industry. The largest use of water for oil and gas activities is for hydraulic fracturing. However, water is used for other purposes, such as: Seismic or geophysical exploration Drilling Machine washing Dust control HOW WATER IS ACCESSED There are different ways the oil and gas industry may access water in British Columbia. Some methods are managed through provincial legislation, including: Water licences issued under the Water Sustainability Act (WSA) for surface and groundwater. The Commission has staff designated as Regional Water Managers with authority for issuing and administering long-term water licences. Short-term surface water use or diversion approvals issued under Section of the WSA. Short-term water use is administered by the Commission. Water source wells authorized by the Commission under the Oil and Gas Activities Act (OGAA). Water source wells are a specific type of well where the water withdrawn is intended for injection into an underground formation to enhance oil or natural gas recovery. Flowback water that returns to the surface after being injected for hydraulic fracturing. Produced water that flows to the surface as a by-product of oil and gas production. The oil and gas industry can access water by means outside of regulatory oversight: Water floods (to enhance oil recovery) Ice road freezing Hydrostatic testing of pipelines Private agreements can be made with landowners or others who have a source of surface water supply such as a dugout or a groundwater well. In some cases, private agreements may require a Waterworks water licence under the WSA. FIRST QUARTER 7 - OIL AND GAS WATER MANAGEMENT SUMMARY 5

6 LONG-TERM WATER LICENCES AND USE In the first quarter of 7, there were active oil and gas related water licences, representing 4 withdrawal locations, held by companies (Table ). The total annual licenced water volume was 9,9,49 m. A total of 5,4 m of licenced water was reported as withdrawn in the first three months of the year by four companies (Table, ). TABLE - SUMMARY OF WATER LICENCE AND USE FOR OIL AND GAS ACTIVITIES FROM JANUARY TO MARCH 7 WATER LICENCE Companies with Active Water Licences Active Water Licences Licenced Withdrawal Locations Annual Volume Available for Use for Water Licences (m ) Cumulative Volume Reported Used in 7 (m ) Q 4 9,9,49 5,4 A break-down of water licence allocation and use by OGC Water Management Basin is listed in Table 4. TABLE : OIL AND GAS RELATED WATER LICENCES THAT WITHDREW WATER IN 7 - Q LICENCE # C55 C688 C55 C5 LICENCEE Whitecap Resources Inc. Canadian Natural Resources Limited Canbriam Energy Inc. Encana Corporation SOURCE Peace River Charlie Lake Williston Lake Dugout near Bissette Creek OGC WATER MANAGEMENT BASIN Lower Peace River Lower Beatton River Peace Arm Pouce Coupe River APPROVAL (m /YR),65, 788, 7,, 64, 7 WATER USE (m /YR),67 4, 6,8,4 6 FIRST QUARTER 7 - OIL AND GAS WATER MANAGEMENT SUMMARY

7 SHORT-TERM WATER APPROVAL AND USE During January to March of 7, there were a total of 98 short-term water use approvals in place, representing 76 withdrawal locations, held by 44 companies (Table ). TABLE - SUMMARY OF SHORT-TERM APPROVAL AND USE FOR OIL AND GAS ACTIVITIES FROM JANUARY TO MARCH 7 Q The total water volume associated with short-term approvals that were active on the last day of the quarter was,4,4 m. A total of 8, m was reported as withdrawn by oil and gas operators during the first quarter of 7 (Table ). SHORT- TERM Companies with Active Approvals Active Approvals Approved Withdrawal locations Volume Available for Use (m ) Cumulative Volume Reported Withdrawn (m ) ,4,4 8, A break-down of short-term water approval and use by OGC Water Management Basin is listed in Table 4. FIRST QUARTER 7 - OIL AND GAS WATER MANAGEMENT SUMMARY 7

8 Introduction of the WATER SUSTAINABILITY ACT The Water Sustainability Act (WSA) came into effect on Feb. 9, 6, resulting in changes to surface water and groundwater allocation processes by the Commission. With the implementation of the WSA, the following regulations were created or revised and brought into force: Water Sustainability Regulation (replaces Water Regulation). Groundwater Protection Regulation (revised). Dam Safety Regulation (revised). Fees, Rentals and Charge Tariff Regulation (new). The WSA modernizes the language of the Water Act and introduces a number of significant policy changes. Examples of key items that affect oil and gas activities include, but are not limited to: Water in a stream, and the percolation and flow of groundwater, are vested to the Crown. The regulatory scheme for the diversion and use of stream water is maintained and applied to both stream water and aquifer water. The rights of prior appropriation are retained First In Time, First In Right (FITFIR). The consideration of the environmental flow needs of a stream in licensing decisions is mandated for all water allocation decisions related to streams, and to aquifers reasonably likely of being hydraulically connected to a stream. Explicit notification, objection and appeal rights for short-term water use approvals and changes in and about a stream are specified (appeals are to the Environmental Appeal Board). Deep groundwater is exempted from the requirement for a water licence. New powers are created to be applied when streams are at risk of falling or have fallen below their critical environmental flow thresholds, to modify the existing precedence of water use for the purpose of protecting the aquatic ecosystem of streams and aquifers and essential domestic uses (i.e., FITFIR can be overridden). Authority is provided to statutory decision makers to require environmental mitigation or offsetting when the diversion and use of water, or changes in and about a stream, are likely to have a significant adverse impact on the water quality, water quantity or aquatic ecosystem of a stream or aquifer. As there are significant changes resulting from the implementation of the WSA, operators are strongly encouraged to review the document Water Sustainability Act Applications Support for Operators. This supplemental outlines material changes to application manuals, 8 FIRST QUARTER 7 - OIL AND GAS WATER MANAGEMENT SUMMARY

9 WATER LICENCE APPLICATIONS processes and fees, short-term water use approvals, water licensing, and the aforementioned regulations. The WSA and its regulations may be viewed online: Water Sustainability Act Water Sustainability Regulation Water Sustainability Fees, Rentals and Charges Tariff Regulation Groundwater Protection Regulation Dam Safety Regulation Applications, abandonments, and amendments for water licences are now submitted through an online form at the following web address: FIRST QUARTER 7 - OIL AND GAS WATER MANAGEMENT SUMMARY 9

10 TABLE 4 - SUMMARY OF WATER ALLOCATION AND USE FOR OIL AND GAS ACTIVITIES IN 7, ORGANIZED BY OGC WATER MANAGEMENT BASIN (Page of 4) MAJOR and Sub-Basin Name APPROVED SHORT-TERM WATER USE APPROVALS - BC OIL AND GAS COMMISSION APPROVED (m ) FOR ACTIVE ON //7 APPROVED as % of MEAN IN 7 (m ) AS % OF MEAN (m ) OIL AND GAS RELATED WATER LICENCES as % of MEAN IN 7 (m ) as % of MEAN MEAN (m ) BEATTON RIVER (sub-basin of Peace River) Upper Beatton River Middle Beatton River Middle Beatton Total (incl. Upper Beatton) Milligan Creek Blueberry River Doig River Lower Beatton River BEATTON HALFWAY RIVER (sub-basin of Peace River) Chowade River Upper Halfway River Upper Halfway Total (includes Chowade) Graham River Cameron River Lower Halfway River HALFWAY MOBERLY RIVER (sub-basin of Peace River) Moberly River MOBERLY PINE RIVER (sub-basin of Peace River) Burnt River Sukunka River Sukunka River Total (includes Burnt) Upper Pine River Murray River Lower Pine River PINE ,7,7,5,87 67,775 84,47,7 88,8,6,77,55,55 6, 94,9 6,795,596,576,,,, 4,58,96 5, 5,555.68%.85%.4%.9%.87%.4%.64%.9%.4%.%.%.48%.4%.68%.6%.%.%.%.%.%.8%.9%,5,5 9,8,84,99 66,6 8,786,67 9,555 9,555.%.8%.%.%.%.%.%.4%.%.%.%.%.%.%.%.%.%.%.%.%.4%.% ,96 8,96 94,,97,96,687,687 65, 65,,5,.6%.7%.85%.7%.%.%.%.%.%.4%.47%.7% 4, 4,.%.%.5%.%.%.%.%.%.%.%.%.% 499,48,44 49,5, ,56,45 9,56,686 9,78,54,69,5 8,6,69,694,78,8 7,7,57 795,96,49,,989,96 86,67,7,679,567 5,56,99,58,8,666 9,74,995 9,74,995 77,9,,47,8,57,785,,594,466,884,5,698,85,7 7,69,889 6,88,,55 FIRST QUARTER 7 - OIL AND GAS WATER MANAGEMENT SUMMARY Table: pg of 4

11 SUMMARY OF WATER ALLOCATION AND USE FOR OIL AND GAS ACTIVITIES IN 7, ORGANIZED BY OGC WATER MANAGEMENT BASIN (Page of 4) MAJOR and Sub-Basin Name KISKATINAW RIVER (sub-basin of Peace River) West Kiskatinaw River East Kiskatinaw River Middle Kiskatinaw River Middle Kiskatinaw Total (incl. West & East) Lower Kiskatinaw River KISKATINAW PEACE RIVER Peace Arm Upper Peace River Lynx Creek Farrell Creek Cache Creek Pouce Coupe River Lower Peace River PEACE (incl. Kisk/Pine/Moberly/Half/Beatton) SMOKY RIVER Smoky River SMOKY MUSKWA RIVER (sub-basin of Fort Nelson River) Upper Muskwa River Middle Muskwa River Middle Muskwa Total (incl. Upper Muskwa) Lower Muskwa River MUSKWA PROPHET RIVER (sub-basin of Fort Nelson River) Upper Prophet River Middle Prophet River Middle Prophet Total (incl. Upper Prophet) Lower Prophet River PROPHET APPROVED SHORT-TERM WATER USE APPROVALS - BC OIL AND GAS COMMISSION APPROVED (m ) FOR ACTIVE ON //7 5, 64,5 69,5,748,45,87,98 78, 6,6,686 4,6,576,999 9,979,9 58,5 58,5,5,7,95 45,5 468,46 APPROVED as % of MEAN.5%.5%.5%.65%.764%.%.69%.7%.68%.78%.%.%.%.%.%.%.5%.%.6%.% IN 7 (m ) 6,875 6,875,6 9, ,9 4 46, AS % OF MEAN.%.%.%.4%.%.%.%.%.9%.%.%.%.%.%.%.%.%.%.% 9 (m ),969,969 9,5, 85,,754,98,48,978,74 458,75 458,75 OIL AND GAS RELATED WATER LICENCES as % of MEAN.%.%.6%.48%.5%.8%.9%.7%.7%.%.%.%.% IN 7 (m ) 6,8,4,67 5,4 as % of MEAN.%.%.%.%.5%.8%.%.%.%.%.%.%.% MEAN (m ) 7,55,5 5,45,96 56,47,97 79,6,49 89,659,847 68,975,896 N/A 6,4,4,49,46,65 9,8,84 74,6,546 55,686, 4,47, 47,89,85,57,669,56,,669,56,,75,,5,97,7,86,698,9,7 646,84,56 4,45,754,887,47,7,89 6,48,68,9,699,969 7,6,47,6,96,96 Table: pg of 4

12 SUMMARY OF WATER ALLOCATION AND USE FOR OIL AND GAS ACTIVITIES IN 7, ORGANIZED BY OGC WATER MANAGEMENT BASIN (Page of 4) MAJOR and Sub-Basin Name APPROVED SHORT-TERM WATER USE APPROVALS - BC OIL AND GAS COMMISSION APPROVED (m ) FOR ACTIVE ON //7 APPROVED as % of MEAN IN 7 (m ) AS % OF MEAN (m ) OIL AND GAS RELATED WATER LICENCES as % of MEAN IN 7 (m ) as % of MEAN MEAN (m ) SIKANNI CHIEF RIVER (sub-basin of Fort Nelson River) Upper Sikanni Chief River Middle Sikanni Chief River Middle Sikanni Chief Total (incl. Upper Sikanni) Lower Sikanni Chief SIKANNI CHIEF FORT NELSON RIVER Kahntah River Fontas River Fontas Total (includes Kahntah) Klua Creek Upper Fort Nelson River Upper Fort Nelson Total (incl. Sikanni Chief Total, Kahntah, Fontas, Klua) Snake River Sahtaneh River Middle Fort Nelson River Middle Ft Nelson Total (incl. Upper Ft. Nelson total, Muskwa Total, Prophet Total, Snake, Sahtaneh) Kiwigana River Lower Fort Nelson River FORT NELSON LIARD RIVER Muncho River Upper Liard River Upper Liard Total (incl. Muncho) Grayling River Upper Toad River Racing River Lower Toad River Beaver River Middle Liard River ,974 49,974 9, 59,74 87,4 87,4 4, 7,574 4, 77,46 47,85 968,5 5,,,4,5.6%.9%.%.6%.%.9%.9%.6%.%.7%.9%.8%.%.7%.8%.%,65,65 4,45,45 7,666 9,77 49,6.%.%.%.%.%.%.%.%.%.%.%.%.%.%.%.%,99,,99,,99,,99,,99,,99,.7%.7%.4%.%.7%.4%.%.%.%.%.%.%.%.%.%.% 87,77,69 949,755,794,757,57, ,678,4,6,5,68 4,58,9 59,5,9 99,4,86 4,5,448 76,8,6 4,,66,98,76,5 474,94,79 55,48,9,4,7,4 44,657,54,768,98,68,797,84 55,55,6,5,87,465,677,68,85 6,8,94,5,55,576,488,6,68 49,47,7,86,659,46 46,65, LIARD RIVER con t on next page Table: pg of 4

13 SUMMARY OF WATER ALLOCATION AND USE FOR OIL AND GAS ACTIVITIES IN 7, ORGANIZED BY OGC WATER MANAGEMENT BASIN (Page 4 of 4) MAJOR and Sub-Basin Name APPROVED SHORT-TERM WATER USE APPROVALS - BC OIL AND GAS COMMISSION APPROVED (m ) FOR ACTIVE ON //7 APPROVED as % of MEAN IN 7 (m ) AS % OF MEAN (m ) OIL AND GAS RELATED WATER LICENCES as % of MEAN IN 7 (m ) as % of MEAN MEAN (m ) LIARD RIVER con t Middle Liard Total (incl. Upper Liard Total, Grayling, Upper Toad, Racing, Lower Toad, Beaver) Capot-Blanc Creek Dunedin River Lower Liard River LIARD (incl. Fort Nelson) PETITOT RIVER Sahdoanah River Upper Petitot River Tsea River Middle Petitot River Middle Petitot Total (incl. Sahdoanah, Upper Petitot, Tsea) Lower Petitot River PETITOT HAY RIVER Upper Kotcho River Kyklo River Shekilie River Lower Kotcho River Lower Kotcho Total (includes Upper Kotcho, Kyklo, Shekilie) Hay River HAY CHINCHAGA RIVER Chinchaga River CHINCHAGA OTHER (outside Northeast B.C.) ,,6,4,75 4,8 88,85 59,45 8,85 9,695,8 4,495 5,5, 8,6 7,5 7,6 4, 4,8 9,97 9,97 66,677.%.%.7%.%.7%.6%.4%.8%.%.%.%.%.9%.4%.%.7%.4%.5%.%.%,6 4,,48 5, ,8,8,98,,,68 4,894 5,89 5,89.%.%.%.%.%.%.%.%.%.%.%.%.%.%.%.%.%.%.5%.5%,99,,5,,5,,5,.%.5%.576%.87%.66%.%.%.%.%.%.%.%.%.%.%.% 49,6,79,456 8,879,85 8,464,67,6,64,664 64,7,55,96 5,65,6,476,579,488 44,6, ,56,75,86,8,87 94,4,69,766,44,56,59,7 45,897,69 45,747,494,59,7,9,68,69 58,67,5,758,55,97 9,49,68 9,49,68 N/A G R A N D T O T A L 76,4,4.% 8,.% 4 9,9,49.7% 5,4.%,568,58,464

14 Previous annual water reports and quarterly updates are available on the Commission s website at: For specific questions or enquiries regarding this data, please contact: OGC.Communications@bcogc.ca