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Quarterly Report on Short-Term Water Approvals and Use

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Quarterly Report on Short-Term Water Approvals and Use Quarterly Report on Short-Term Water Approvals and Use April to June 2011 About the BC Oil and Gas Commission The BC Oil and Gas Commission is an independent, single-window regulatory agency with responsibilities for overseeing oil and gas operations in British Columbia, including exploration, development, pipeline transportation and reclamation. The Commission’s core roles include reviewing and assessing applications for industry activity, consulting with First Nations, ensuring industry complies with provincial legislation and cooperating with partner agencies. The public interest is protected through the objectives of ensuring public safety, protecting the environment, conserving petroleum resources and ensuring equitable participation in production. TABLE OF CONTENTS Introduction Page 2 Processes and Requirements Page 3 Results Page 4 Summary Page 7 Appendix A Page 8 Appendix B Page 9 Appendix C Page 12 1 BC Oil and Gas Commission Quarterly Report on Short-Term Water Approvals and Use Introduction The Oil and Gas Activities Act (OGAA) provides authority to the BC Oil and Gas Commission (Commission) to issue short-term water use approvals under Section 8 of the Water Act to manage short-term water use by the oil and gas industry. Approvals under Section 8 of the Water Act authorize the diversion and use of water for a term not exceeding 12 months. This report details the Commission’s responsibilities and authorities under Section 8 of the Water Act; it does not include the diversion and use of water approved by other agencies (such as the Ministry of Forests, Lands and Natural Resource Operations, which has responsibility for water licensing) or for purposes other than oil and gas activities. The oil and gas industry obtains short-term water use approvals for a number of activities, which include: • Seismic or geophysical exploration. • Drilling. • Machine washing. • Winter ice road freezing. • Dust control. • Water floods (to enhance oil recovery). • Hydraulic fracturing (predominantly of unconventional gas wells, but also conventional gas wells and some oil wells). • Hydrostatic testing of oil and gas pipelines. • Other purposes. This report presents information on short-term water use approvals active during the April to June 2011 period. Included in the report is the cumulative volume of water that was reported as used by the Section 8 approval holders during 2011 (January to June). This is the second report of water use following changes to the Commission’s water use reporting requirements that came into effect in March 2011. It will be followed by regular, quarterly reports on short-term water approvals and use. The first report, for the period of January to March 2011, is available on the Commission website. 2 BC Oil and Gas Commission Quarterly Report on Short-Term Water Approvals and Use Processes and Requirements Oil and gas operators apply to the Commission for approval to use or divert water for an oil or gas activity. Natural resource officers in the Commission’s Permitting and Authorizations division receive, review and adjudicate the applications. Prior to March 2011, applications typically were for a specified volume per day, but not for a total volume for the duration of the approval. Also, water that was diverted and used from natural surface water sources, such as from rivers and lakes, required an approval, but water that was obtained from dugouts or borrow pits did not require an approval. With regard to reporting, companies holding a Section 8 approval were required to maintain records of water withdrawals, but there was no formal water use reporting requirement in place. Liard River quarterly period, representing the second reporting requirement In March 2011, the Commission made a number of changes in its from industry. In addition, cumulative water use for January to requirements related to short-term water use approvals: June 2011 is presented. Other changes to the Commission’s • Water sourced from a dugout or a borrow pit (referred short-term water use approval process (such as the requirement to as either a Water Source Dugout or a Water Storage for approvals for water diverted and used from dugouts or borrow Site) now requires an approval for short-term use under pits) came into effect in April, and so are reflected in this report. Section 8 of the Water Act. • Schedule A approvals were eliminated and replaced Public Reporting of Short-term Water Use Approvals with a Basin Section 8 approval. (Schedule A approvals provided the approval holder the right to access small Data on active short-term water use approvals is now being quantities of water per day from any of a number of rivers reported on the Commission’s website here. The file is updated and lakes in northeast B.C., listed in a table referred every night, and contains a complete listing of all the active short- to as the Schedule A list; a Basin Section 8 provided term water use approvals issued by the Commission. For each authority to access a maximum of 45 cubic metres approval, the following information is presented: 3 3 (m ) per day and 5,000 m /year from a river or lake in a • ogc_file_number specified river basin. Basin Section 8s are limited to only • application_received_date a few uses, such as geophysical exploration, where it • application_approval_date is not possible to have a standard approval with distinct • effective_date points of withdrawal specified). • termination_date • Holders of short-term water use approvals are now • client_name required to report to the Commission the actual water • wmb_name (watershed name) volumes withdrawn from the various surface sources. • utm_zone Companies are required to report on a quarterly basis • utm_northing the water volumes withdrawn each month for each • utm_easting approved point of withdrawal. • source_name • Applications are now required to contain a total volume • source_type per year that is requested, in addition to the requested • approved_volume_per_day volume per day. • approved_total_volume • approval_status The data contained in this report reflects the April to June 2011 3 BC Oil and Gas Commission Quarterly Report on Short-Term Water Approvals and Use Results Total Approval and Reported Use in northeast B.C., referred to as the OGC Water Management Basins (Appendix A). This coverage was created from the Ministry During the April to June period of 2011, there were a total of 229 of Environment’s Freshwater Atlas mapping. Table 2 (Appendix short-term water use approvals in place, with 553 specified points of B) summarizes the short-term water use within the OGC Water diversion, held by 46 companies (Table 1). The total water volume Management Basins. The 229 short-term water use approvals and associated with these approvals was 69.2 million m3. This water the associated 553 points of withdrawal are listed within the specific volume is approved for use for a 12-month period for the approvals river basin in which they occur. that were active during April to June 2011. As a comparison, the total volume of short-term water use approved during the April 2009 For each basin, the mean annual discharge (cubic metres per to March 2010 period, as reported in the Commission’s water use second -– m3/s) and mean annual runoff (m3/year) are listed. These report from August 2010, was 78 million m3.1 In addition, the total values are calculated using two approaches: volume of active approvals during April to June 2011 is almost 1. Where there is a Water Survey of Canada stream 12 per cent less than the active approved during the first quarter flow gauge in the basin, the mean annual discharge is of 2011. This reduction results largely from the Commission now calculated from the historic gauge record, and is converted requiring companies to apply for a total volume of water, rather into a discharge per square kilometre of drainage basin than just a volume per day. We anticipate that the total water (m3/s/km2). This value is then used to produce estimates volume approved statistic will continue to drop until all the pre-2011 of mean annual discharge for ungauged sub-basins by approvals have expired. multiplying it by the drainage basin area of ungauged sub- basins. Table 3 (Appendix C) contains a listing of the Water Of the total volume approved for withdrawal, a total of almost 1.4 Survey of Canada stream flow gauges used in this report. million m3 was reported by the approval holders as being withdrawn. 2. There is a general lack of Water Survey of Canada This is a cumulative total for 2011, representing withdrawals during stream flow data for the Horn, Liard and Cordova basins the six-month period of January to June. in northeast B.C. from which discharge estimates can be made. However, the Commission completed a preliminary The quarterly water use report for the January to March 2011 period hydrological modelling study in the Horn and Liard basins noted that not all approval holders reported water use as required. in March 2011, which has been used to provide preliminary For that period, data was not reported for 38 approvals held by 16 estimates of mean annual discharge and runoff for some companies. The files for the 16 companies that did not report on basins. their active short-term water use approvals were referred to the Commission’s Compliance and Enforcement Branch for investigation The Commission recognizes the importance of having enhanced and follow-up. Following investigation, tickets and fines were levied stream flow estimates for river basins in which oil and gas activity to the non-compliant companies based on the Violation Ticket occur, and has started a project in partnership with Geoscience BC Administration and Fines Regulation of the Offence Act. For the April to complete overview hydrologic modelling for all of northeast B.C., to June 2011 period, compliance significantly improved, with four and to produce a Geographic Information System-based hydrology companies not reporting on eight approvals (3.5 per cent of total).
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