Alberta Groundwater Policy Update

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Alberta Groundwater Policy Update Steve Wallace Director, Groundwater Policy Alberta Environment and Parks Water Technologies Symposium April 6-8, 2016

Presentation Outline Water Conversation update on action items Water Conservation Policy for Upstream Oil and Gas Operations Directive for the Assessment of Thermally-Mobilized Constituents in Groundwater for Thermal In Situ Operations Directive for the Assessment of Non-Saline Groundwater in Direct Contact with Bitumen for Thermal In Situ Operations Groundwater Monitoring Directive

Water Conversation

Water Conversation Public dialogue in spring 2013 Healthy Lakes Hydraulic Fracturing and Water Water Management Drinking Water and Wastewater Summary of discussions and action plan released Nov 2014 Government has moved on a number of actions

Healthy Lakes Water Conversation Sample of Action Taken Enhance public awareness Aquatic Invasive Species program expanded since 2014 Enhance Lake Governance Alberta Water Council multistakeholder project team developing recommendations Hydraulic Fracturing and Water Expansion of 2006 Water Conservation and Allocation Policy for Oilfield Injection updated policy pending approval Advance integrated, sub-regional approach policy pilot in the Fox Creek area initiated (preliminary engagement in 2015) Water Management Conservation, Efficiency and Productivity Planning plans submitted by 7 major water using sectors in 2015 Water Re-Use Policy under development by AEP

Water Conservation Policy for Upstream Oil and Gas Operations (DRAFT)

Water Conservation Policy for Upstream Oil and Gas Operations Maintain general intent of 2006 Water Conservation and Allocation Policy for Oilfield Injection Expand to oil sands mining and multi-stage hydraulic fracturing in horizontal wells Greater emphasis on the use of alternatives to nonsaline sources such as municipal/industrial wastewater and impaired quality groundwater Assessment of environmental net effects in selecting different water sources described in additional detail Specific water policy and direction for the 4 subsectors Detailed subsector specific guidelines to be developed by AER to implement the policy (not oil sands mining)

WCP: Water Source Hierarchy

WCP: Policy Objective To enhance the conservation and protection of provincial water resources by managing water use for upstream oil and gas operations by recognizing: the preferred use of saline groundwater or alternative non-saline water sources; opportunities to minimize high-quality non-saline water use; that water is needed to continue the development of energy resources in Alberta; that conservation measures will be proportional to regional water availability and demand.

WCP: Evaluation of Water Sources Evaluation of alternative sources according to a risk classification system o More rigorous evaluation in water-short areas or other areas of water stress Evaluation balanced by an environmental net effects assessment Alternative source evaluation, environmental net effects assessment, and other relevant information submitted with a non-saline water application.

WCP: Alternatives to High-quality Non-saline Water Sources Sources preferred to the use of high-quality non-saline water include saline groundwater, produced water and alternative non-saline sources. Alternative non-saline sources include: o recycled or reconditioned industrial and municipal wastewater, taking return flows into perspective; o oil sands mining tailings pond water; o non-saline water in direct contact with bitumen deposits; o naturally occurring non-saline water containing petroleum hydrocarbon compounds (excluding methane) within formations that contain both water and hydrocarbon resources; o non-saline groundwater that is demonstrated to be economically and technologically impractical to use for drinking water or livestock watering purposes, taking into consideration connectivity with surface water and availability of other water supplies in the area.

WCP: Environmental Net Effects Quantifiable assessment of air, land, ecosystem impacts of specific water source options, identified by the applicant, for a water allocation decision. Rigour of evaluation will differ according to placebased water availability and overall risk Major assessment parameters: o o o o o o Air (GHG, NOX, venting) Land (disturbed area, wetlands) Energy Use Waste (solid, liquid) Ecosystems (habitat, species at risk, biodiversity, road density) Contamination risks (pipelines, surface storage) 12

Thermal In-Situ Groundwater Draft Directives

Draft Directive for the Assessment of Thermally-Mobilized Constituents in Groundwater for Thermal In Situ Operations Chemical constituents present naturally in sediments have the ability to be mobilized by subsurface heating into groundwater. Additional monitoring and assessment is required to manage these potential effects

Draft Directive for the Assessment of Thermally-Mobilized Constituents in Groundwater for Thermal In Situ Operations Chemical constituents present naturally in sediments have the ability to be mobilized by subsurface heating into groundwater Conceptual diagram outlining Management Areas where additional monitoring occurs Draft Directive outlines additional monitoring and assessment to manage these potential effects

Draft Directive for the Assessment of Non-Saline Groundwater in Direct Contact with Bitumen for Thermal In Situ Operations Applies only to in-situ oil sands projects where bitumen is in direct contact with non-saline groundwater In-situ operations may have localized impacts on groundwater by the nature of the production process Additional monitoring and assessment is required to manage these potential effects

Draft Directive for the Assessment of Non-Saline Groundwater in Direct Contact with Bitumen for Thermal In Situ Operations Conceptual diagram outlining Management Areas where additional monitoring occurs

Draft Directives Public Engagement http://aep.alberta.ca/about-us/public-engagement/default.aspx Deadline for feedback May 29, 2016

Groundwater Monitoring Directive

Groundwater Monitoring Directive Version 10 under development Applies to EPEA-approved facilities where groundwater monitoring is required under their approval Increased emphasis on a facility s early response to a possible substance release into groundwater in order to maintain baseline quality within natural variability Incorporated external technical feedback solicited in late 2012 and more recent internal input Anticipate external technical review in fall 2016

Groundwater Monitoring Directive Key changes from previous versions: Focused on the most effective, efficient, scientifically defensible and reasonable solutions to improve on the Groundwater Monitoring submittal and review process Five programs Data Quality Hydrogeologic Characterization Baseline Performance Criteria Operational Groundwater Quality Compliance and Corrective Action Plans Select guidance for the scope on some program requirements Qualified Professionals (reliance on professional judgement) Training integral component from the onset

Requirements One Size Does Not Fit All! Upgraders Cement Food Processing Gas Plant Landfill Fertilizer Pulp and Paper

Thank You Questions?

LARP Groundwater Management Framework

North Athabasca Oil Sands Network (NAOS) Site 8 Site 11 Site 10 Site 7 Site 9 Site 6 Site 12 Site 5 Site 3 Site 1 Site 2 NAOS (43 GWN/AGS, 11 Sites) - Commissioned 2009, existing infrastructure - Up to 9 sampling points since 2009 (more counting pre- 2009 data) - Effort to restart network development according to proposed road map ongoing

South Athabasca Oil Sands Network (SAOS) SAOS (28 GWN/AGS, 7 Sites) - Commissioned 2012, guidance document (Matrix 2013) - Up to 6 sampling points since 2012 - Phased development approach Phase 2 development in progress