Environmental Management in Alberta: Update on Water Priorities

1. Environmental Management in Alberta:Update on Water Priorities Alberta Environment and Sustainable Resource Development November 2012

2. Outline What • Alberta Context How • Evolution of Water Management • Water Focus Areas When • Moving Forward

3. Provincial Context • Alberta is blessed with a range of natural resources • Economic diversification is important for long-term sustainability… • …but natural resources will continue to play a foundation role in current and future quality of life for the foreseeable future • Experiences with resource management provides an expertise and skill set for emerging global challenges • Shift in Alberta from abundance and room to grow, to a need for enhanced management

4. Confluence of Priorities • Social • Quality of life • Population growth / interface with development License To Operate • Environment • Lower footprint • Increased transparency • Water • Economy • Resource economy • Value add • Economic recovery • Energy • Growing demand for oil and gas • Desire for alternatives (clean gas?)

5. Management Approach: Guiding Principles • Transparency • In management intent • In the type and confidence of the data that is collected (and what is not collected) • Credibility • In the systems (including people) used (independence where necessary) • In the data collected and provided • Relevance • In the systems used and data collected

6. Cumulative Effects(evolving realities)

7. Evolution of Environmental Management Provide regional context for decisions about future activities and management of existing activities  Shift from one-off authorizations with consideration for current circumstances to decisions based on regional ‘expectations’ Policy Controls Establishing limits and triggers Monitoring and modeling to assess conditions Response to triggers, including validation, investigation, management actions and reporting

9. Air Water Land Biodiversity Decommissioning / Reclamation Oil and Gas Regulatory Framework Assessment /Evaluation / Monitoring / Research Abatement / Enforcement Approval Standards Objectives Guidelines Criteria Public Interface

10. Current Operating Requirements

11. Unconventional Oil and Gas • Dispersed on the landscape • No set ‘region’ • Multiple players • Includes service elements • Range of impacts on the land • Some focused and accumulated (air, noise, footprint) • Others dispersed (source of water, waste management, truck traffic)

12. Response Considerations • Impact themes: • Risks relating to water use • Risks relating to development disturbance (above and below ground) • Risks relating to intensity of activity  Magnified by pace • Emerging response themes: • Development • Reduce: e.g. overall consumptions; surface to ground water; non-saline to saline • Re-Use: e.g. storage • Recycle: e.g. sharing • Industry commitments (CAPP Principles) • Management • Cumulative effects-focused, play-based • Collaboration and engagement • Knowledge • Transparency • Reporting

13. Response Areas • Government of Alberta – integrated management approach to addressing areas of enhancement • Range of potential actions identified based on risk areas and nested in cumulative effects context • Initial areas of focus include: • Unconventional Regulatory Framework (play-based management approach) • Expanded Water Conservation for all Oil and Gas • Expanded Baseline Water Well Testing • Disclosure of fluids • Reporting of water use (volume and source)

14. Oil Sands Information Portal

15. (re) Framing the Water Discussion • Tremendous effort over the past few years on addressing specific water issues • Alberta Water Council, Ministerial Advisory Groups, Association actions • Recognition that many of these challenges require a broader discussion on water – the Alberta Water story • Not about stepping back from good ideas, but taking a higher view of the issues facing Albertans • Re-set on the context will be the initial focus for engagement

16. Water Conversation • Key Elements • Broad conversation across the province • About confirming the agenda and priorities and to establish a shared understanding of challenges and opportunities • Also to confirm what is not on the table • Foundation is Water for Life • About ensuring water for people, environment and economy • Precursor to advancing potential policy options to address priority issues

17. Potential Focus Areas • Areas that: • Span the interests and needs of all Albertans • Require more immediate focus and action • Have already involved significant analysis and assessment • Require action in support of achieving economic, social and/or environmental objectives • Proposed areas: • Water Management • Hydraulic Fracturing • Healthy Lakes • Drinking Water / Wastewater Sustainability

18. Moving Forward • Government has outlined a clear intent to continue to develop natural resources, but in a way that reflects responsible development • Approach based on cumulative effects management • Management frameworks and regional governance will be critical to ensure systems are appropriate • Frameworks will build on past experience including respect of existing rights • Work on water needs appropriate connection to regional planning • New ways of ensuring meaningful engagement is required to provide assurance – early days, but must reflect key guiding principles • Audience has grown from directly effected / provincial to global • Critical role of existing groups and associations

19. Questions