WATER: Alberta’s Next Big Economic and Social Challenge P. Kim Sturgess, P.Eng . FCAE

1. WATER:Alberta’s Next Big Economic and Social ChallengeP. Kim Sturgess, P.Eng. FCAE APEGGA Practice Development Day April 17, 2008

2. “Whiskey is for Drinking… Water is for Fighting Over.” Mark Twain Water is Personal …

3. Public perception of Canadian water quality, security and safety has changed – Walkerton, Kashechewan, N. Battleford Is Our Water Safe?

4. NOTES: Reviews completed in 2003 and 2004 Poor Ranking is 4 or 5 out of 5, as the lowest ranking Excluding Calgary and Edmonton, average plant serves 700 families! AENV Assessment of 534 Water Treatment Plants

5. Water Short Areas This map is intended to flag areas where water supply may be of concern Areas naturally water short (less than 5 mm/year runoff) Development pressures (closed or potentially closed to new licences) Potentially water short areas (brown, tan) source: Alberta Environment

6. Agriculture and Irrigation use 46% of our water allocations Water Usage in Alberta

7. Commercial users, primarily cooling, use 31% of water allocations Water Usage in Alberta

8. Municipal use at your home is 11% of water allocations Water Usage in Alberta

9. Oil and Gas uses 7% of water allocations Water Usage in Alberta

10. Recreation, habitat and all other uses account for the remaining 5% Water Usage in Alberta

11. Why Water is Important to Alberta “In the future, Water will be more important to Albertans than oil and gas” Peter Lougheed “In 54 communities the number one issue is WATER …With it, our prosperity is assured; without it, nothing is” Doug Griffiths MLA Chair, Task Force on Sustainable Communities “Water is not a renewable resource. It only seems renewable because it keeps falling from the sky” Marq de Villiers “Population growth, droughts, agricultural and industrial development are increasing demand and pressure on Alberta’s water supplies” Alberta Water for Life Strategy

12. Alberta’s Water for Life Strategy Goals Safe, secure drinking water supply Healthy aquatic ecosystems Reliable, quality water supplies for a sustainable economy Achieved Through Knowledge and Research Partnerships Water Conservation Water for Life: Alberta Government’s response to develop a new water management approach and outline strategies & actions for implementation www.waterforlife.gov.ab.ca

13. Major Basins under Alberta Water Act Key Management Principles Water is owned by the Province: All withdrawals of surface water and most groundwater under 4000 ppm salinity are licensed FITFIR: First in time, first in right No INTER Basin transfers: Live within your means Saskatchewan gets its share: 50% of flow at headwaters must be delivered to Saskatchewan border at prescribed quality levels

14. Big Changes: What does this mean for Business? Athabasca River Basin Reports issued Summer 2007; proposes to set limits on withdrawals and discharge water quality Regional planning mandated for Edmonton and Industrial Heartland Region in October, 2007; industry plan delivered mid December South Saskatchewan Basin Management Plan issued August, 2006; no more water withdrawal permits to be issued for Bow, Oldman and South Saskatchewan Rivers

15. SSRB Water Management Plan

16. Three key industries face major challenges

17. Bordeaux Developments: Harmony Project Sustainable Community Concept Areas of Focus • Water Conservation • Water Re-use Why? • Responsible • Good Business Opportunity • Building Code change

18. Water Pricing, Transfers and “Best” Use Water transfer priciest in history Balzac megamall clears hurdle Renata D'Aliesio, Calgary Herald Published: Saturday, September 29, 2007 After several failed attempts and more than a year of searching, the Municipal District of Rocky View has secured water for a horse racetrack and megamall in Balzac -- dubbed the largest Alberta construction project outside of the oilsands. Alberta Environment said Friday it has approved a water deal between Rocky View and the Western Irrigation District. In exchange for guaranteed water rights, the M.D. will pay the irrigation district $15 million to convert 50 kilometres of a leaky canal into a pipeline. The licence transfer is the largest and priciest in the young history of Alberta's market to buy and sell water.

19. Water wealth for farmers, but what is the future of the family farm on the Prairies?

20. Oil and Gas Industry most likely to adapt Oil & Gas Goal: Fresh Water consumption neutral by 2020 Issues: This industry usually last priority for water Alberta Environment limiting use of fresh water for down hole operations Opportunities: Technologies and new practices can significantly reduce fresh water consumption (Newalta)

21. Ownership of Wastewater and Timing 6-9 Heavy Oil Upgraders planning to locate in the Industrial Heartland 20-30,000 cubic metres per day each (assuming evaporative cooling) Water Sources • The North Saskatchewan River (new licences) • Under-utilized existing licences • Recycled Wastewater • Produced water in the area Alternatives • Individual Water and Wastewater Treatment facilities, intakes and discharges with river source • Single Treatment facility & distribution system • Recycled Domestic Wastewater • Combination of above Gold Bar WWTP

22. Outcomes Based Environmental Management October 2, 2007 Alberta rolls out new environmental strategy to protect air, land, water Industrial Heartland first project under new approach Edmonton... The Alberta government has unveiled a broad new approach to address cumulative effects on the environment, with the first application of the plan set for the Industrial Heartland, a 317-square-kilometer area just northeast of Edmonton. Under the new approach, a series of comprehensive, science-based targets, outcomes and actions have been set for Alberta’s Industrial Heartland to protect the air, land and water of the Capital Region. “As we face unprecendented growth in our province, with development on a scale we have not seen before, we must be assured we balance that growth with protection of the environment,” said Premier Ed Stelmach. “Albertans must know that their government is looking at the big picture, and preserving our environmental heritage for future generations.”

23. Industry Determines how to achieve Outcomes

24. Water Management Framework for the Industrial Heartland and Capital Region Report The strategic objectives of the new Water Management Framework for the Industrial Heartland and Capital Region are: • Make Alberta a world leader in water and water reclamation technology. • Minimize the impact or “footprint” on the North Saskatchewan River by improving the quality of the water and ensuring water conservation practices are in effect. • The Framework will be implemented using distinct phasing. • The Framework has a regional perspective and may be used as a model for other regional frameworks in the province. December, 2007

25. Conceptual Diagram: Sustainable Regional Water Management Network to 2041

26. Consumptive demand can be reduced through changing technologies and designs Industrial and Commercial Cooling Goal: To significantly reduce evaporative cooling by 2020

27. Much of Northern Alberta is engaged in Oil Sands

28. Traditional Mining and In Situ methods consume ~ 2.5 barrels water/barrel bitumen

29. Technology is coming – THAI

30. Challenge of Tailings still remains

31. Our Oil Sands Industry is getting more Help “The Oil Sands Sustainable Development Secretariat will coordinate and improve planning, communications and service delivery to the oil sands region. The Secretariat collaborates with ministries, industry, communities and stakeholders to facilitate a common approach to address the social, environmental and economic impacts of oil sand development.”

32. Summary of Emerging Issues Water management in Scarcity • Water shortages (Strathmore) • Intra-basin water transfers (Balzac) • Pricing water licences (Irrigation Districts) • Ownership of recycled municipal and industrial water (Edmonton) Regional Planning • Cumulative Effects (Industrial Heartland; Athabasca oil sands) • Future role of Agriculture (South Saskatchewan) Consultative, Multi-Stakeholder, Consensus Process • Alberta Water Council and WPACS • Oil Sands planning Changing legislative environment • Provincial and National Building codes (Harmony)

33. Alberta WaterPortal Mission: To create a place where anyone can easily get the water data, information and knowledge needed to make better decisions and become more actively involved in managing our water resources. www.albertawater.com Implementation partners: • IBM • Bow River Basin Council • Tesera Systems • Suncor Foundation Sign Up WaterNews Alerts

34. Water: The Key to Our Sustainable Future

35. Alberta Society for Sustainable Water Management and Related Technologies For more information: www.albertawatersmart.com info@albertawatersmart.com www.albertawater.com