WaterTech 2015
Jamie Wills, M.Sc., P.Geol.Waterline Resources Inc.
What is Integrated Water Management (IWM) Why is it important Background (implications of <$50 oil for WCS)
Drivers Examples Lessons learned/future Questions
Note:
Global context(United Nations)
“…the way forward for efficient, equitable and sustainable development and management of the world's limited water resources and for coping with conflicting demands…”
Local context(GOA Water for Life, 2008 Renewal)
“Government of Alberta… reaffirms its commitment to the Water for Life approach for the wise management of Alberta’s water quantity and quality for the benefit of Albertans now and in the future.”
Water fundamental to everything (water security)
So-called “water-food-energy nexus”
You can’t manage what you don’t understand
Must consider non-saline GW, saline GW, surface water, recycle, etc.
Promote sustainable water use
Minimize cumulative effects
Manage/protect for present/future generations
Balance societal expectations (vs. footprint to support)
When considering the above…
75% of Alberta energy production is water-assisted (CAPP)
Energy sector is ~30% of AB economy
Royalties alone are >20% of GOA revenue
Higher % when include corporate/personal taxes
% will decrease in 2015/16, but will rebound
Transfer payments (“have” and “have not” provinces) Based on provincial per capita GDP (< or > national average)
Have provinces (>): AB, SK, BC and N+L
Have not provinces (<): Q, O, M, NB, NS and PEI
Year 2013/14 federal and provincial budgets Alberta provincial budget (revenue) ~ 40 billion
Received no payment
New Brunswick provincial budget (revenue) ~ 8 billion Received payment ~ 1.5 billion (~ 19% of their budget)
But opposed to hydraulic fracking (if within NB)
US DOE (April/15) Short-term energy outlook (STEO) of WTI (not WCS)
NYMEX
So AB’s ability to deliver “transfer” payments?
$ = ???
AB population (StatsCan, 201o) Water needed for everything
Mar/15 ~ 4.15 million
Ensure proper water mgmnt
Evolve regulatory framework (AER, ESRD) Acts, guidelines, directives, etc. apply
Addendums (e.g., OIG for fracking water, PBR, etc.)
Priority of use while balancing economic growth
Reduce footprint/cumulative effects
Use/protect for present/future generations Remember Alberta drought of 2001/02
We will have more droughts – we just don’t know when
Societal concerns - Social licence to operate Opposition despite regulatory approval
Well organized and wide-spread
Perception versus is reality Often opinion-based (rather than fact-based)
Polarized
Perception Reality
Studies that have/will include IWM components/concepts COSIA regional water mgmnt initiative
PTAC Montney-Duvernay study
Fox Creek pilot (play-based regulation)
NEWT for Horn River Basin
Canada’s Oil Sands Innovation Alliance (2015) RWMI(mine/in-situ)
Assess opportunities of operators to jointly manage water
Improve ENE/economics: Mine tailings water for in-situ make-up
Mine depress. water for in-situ make-up/regional disposal
In-situ BBD water for regional disposal
Findings Not feasible to link all industrial water in region
Cost/benefit < complexity/risk, economy of scale not realized, etc., but…
Works in some cases (Suncor mine-Firebag, Nexen LL-upgrader)
Sub-regional solutions/opportunities exist (in-situ BBD)
Great foundational work which can be leveraged
https://www.cosia.ca/
Integrated Assessment of Water Resources (2012-2014)
Number of industry partners
Author: IWR
http://www.ptac.org/projects/167
Completed by Integrated Water Resources Focus on Montney/Duvernay Fms (tight oil & gas)
Map non-saline GW, saline GW and SW Water source and disposal
Findings: SW – regional and seasonal water availability mapped by watershed GW – key non-saline aquifers mapped (e.g., Haynes Mbr of Paskapoo
Fm) GW – multiple saline aquifers mapped (for source or disposal) GW – multiple aquifers exist in some areas
Provides foundation for resource development
Fox Creek Play Based regulation (PBR) pilot study (AER, 2014)
Approximate Pilot Area (Duvernay Fm focus)
http://www.aer.ca/documents/about-us/PBR_Brochure.PDF
Fox Creek Play Based regulation (PBR) pilot study (AER, 2014) New approach
Consider approvals from a play base (rather than project base) Promote industry partnering (e.g., shared facilities, source, disposal) Reduce cumulative footprint and effects Stakeholder engagement
PBR is the first step in the future of AB energy regulation Program evolving (GOA and industry)
Likely outcome of Pilot It will work in some places, not in others
BC North East Water Tool and BC North West Water Tool BC Oil & Gas Commission Interactive GIS-based surface water availability mapping tool
Supports decision-making process for water use approvals and licences Considers cumulative effects Considers SW availability on a sub-watershed basis Considers SW already allocated in your area
Lacks GW component We need to think how best to incorporate GW
https://www.bcogc.ca/public-zone/water-information
Where are we going – IWM without question
Challenges – baby steps 10 years from now will be commonplace
All about water security May need to tweak some regs (e.g., OIG)
There is no well-defined road map Several approaches being used (e.g., LCVA for social/economic/environmental)
Need to get this right (certainly for SSRB) We will have another drought
Balance social expectations vs. footprint to support society
Best results derived from interactive approach
We need to get IWM right We will be judged by future Albertans What mark will they give us?
??