Alberta Water for Life Strategy Implications for the Oil and Gas Industry Sue Lowell, Suncor Energy Inc. September 2005

Water Use in Alberta  Allocations for consumptive uses*  Agriculture - irrigation (44.9%)  Thermal Power (26.7%)  Municipal (10.8%)  Industry (6.4%)  Oil &Gas – injection, drilling (4.0%)  Surface allocation 9 billion m 3, groundwater 180 million m 3  Allocations based on “first in time, first in right”  New licenses have maximum 10 year term * 2001 data, Alberta Environment

Water for Life Strategy - Highlights  Extensive public consultation during  Draft strategy for comment spring 2003  Final strategy issued Nov 2003  Reaffirmed 3 goals:  safe, secure drinking water  healthy aquatic ecosystems  reliable, quality water supplies for sustainable economy  Each of these goals has implications to our industry (e.g. project design, allocations, approvals, stakeholder engagement)

Water for Life Strategy  3 key directions identified  knowledge and research  partnerships  water conservation  The Oil and Gas Industry has a role in each of these directions

Key Strategic Changes in Water for Life Strategy  Key Changes :  From water management to watershed management  From traditional regulator to shared governance/shared responsibility  Water Conservation goal 30% improvement by 2015 (baseline 2005)

Water for Life Strategy  Use of water in the oil and gas industry is under scrutiny  use of non-saline waters for EOR  groundwater contamination/depletion  Growth in use of fresh water from Athabasca River watershed (Oil Sands)  role in achieving water conservation  Opportunity for industry involvement through Water for Life Strategy

Alberta Water Council  Formed to provide direction and advice to government, stakeholders and the public around the strategy  Council appointed by Cabinet in May 2004  Representation by industry, all levels of government (including aboriginal) and non-governmental agencies  Oil/Gas and oil sands industry is represented  Setting priorities and directions for council work

Advisory Committees  Water Use Practice and Policy - final report issued to public in October 2004  Recommendations include:  reduction or elimination of injection of non-saline waters  improve water conservation  Short, medium and long term actions identified  set objectives for reduction, timelines, efficiency targets  initial focus on “water short” areas

Advisory Committees  Coal Bed Methane/Natural Gas in Coal  water working group formed  Provide advice and recommendations about policies and practices that will protect Alberta’s water resources while supporting responsible energy development

On the Horizon  Watershed Planning and Advisory Councils  4 Basin Management Plans in development  11 councils to be formed  Watershed Stewardship Groups  Review of Wetlands Policy development  Economic Instruments Evaluation

Additional Resources  All documents available on Alberta Environment website:  www3.gov.ab.ca/env/  links to Water for Life  Key documents include:  Strategy Document  Water Use Practice and Policy: materials, final report  Coal Bed Methane/Natural Gas in Coal Water Working Group - presentations, materials