Hi Lindsey, Here is the AANDC presentation. Paul 1+1 Aboriginal - - PDF document

From: Lindsey Cymbalisty - MVLWB To: Permits Subject: FW: BOREALIS GEOPOWER WATER LICENCE HEARING INTERVENTION PRESENTATION Date: Friday, April 13, 2012 4:48:09 PM Attachments: YELLOWKN-# 511296-v1- BOREALIS_GEOPOWER_WATER_LICENCE_HEARING_INTERVENTION_PRESENTATION.PPT Borealis GeoPower AANDC Presentation Cover Letter.PDF

From: Paul Green [mailto:Paul.Green@aandc-aadnc.gc.ca] Sent: April-13-12 1:49 PM To: Lindsey@mvlwb.com Cc: Nathen Richea Subject: BOREALIS GEOPOWER WATER LICENCE HEARING INTERVENTION PRESENTATION

Hi Lindsey, Here is the AANDC presentation. Paul

1+1

Aboriginal Affairs and Northern Development Canada PO Box 1500 Yellowknife, NT

X1A2R3

April13, 2012 Lindsey Cymbalisty Regulatory Officer

Affaires autochtones et Developpement du Nord Canada

Mackenzie Valley Land and Water Board 7th Floor - 4910 50th Avenue Yellowknife, NT X1A 2P6 File: MV2012L4-0001 Re: AANDC Technical Presentation - Borealis GeoPower MV2012L4-0001 Please find attached AANDC's presentation for the Borealis GeoPower Water Licence Hearing scheduled for April24, 2012 in Fort Liard, NT. If you have any questions or concerns, please feel free to contact Mr. Nathen Richea at 669-2657 or nathen.richea@aandc-aadnc.gc.ca or the undersigned at 669-2574 or robert.jenkins@aandc-aadnc.gc.ca. Sincerely, Robert enkins Manager Water Resources Division Aboriginal Affairs and Northern Development Canada NWT Region

Aboriginal Affairs and Northern Development Canada (AANDC) Public Hearing Presentation

Borealis GeoPower Fort Liard Geothermal Power Plant Water Licence Application

Fort Liard, NWT April 24, 2012

Presentation Overview

 Water Usage  Operational Requirements

 Well Drilling  Contingency Planning

 Project Monitoring

 Operational  Potable Groundwater Zone

 Adaptive Management  Reclamation Security  Closure and Reclamation  Term of Licence

Water Usage

 Volume of water extracted should be

monitored.

 Drilling operations  Geothermal operations

 Consistent with other Type A Water

Licences in the NWT.

Water Usage - Recommendations

Recommendations

AANDC rec ecom m en ends s t hat t he e w at er er licen ence e cont ain a requi uirem ent nt t o cont nt inuo nuous usly m m oni nit or t t he he vo volum um e of w at er er ex ext ract ed ed from t he e Nahanni form at ion. The e w at er er licen ence e sh should a also so c cont ain a r req equirem em en ent t o cont nt inuo nuous usly m oni nit or t he he vo volum um e of w at er inj nj ect ed int nt o t h t he Mat t s t t son form at i t ion. AANDC rec ecom m en ends s t hat t he e so source e and t he e daily m axim um am ount of su surface e w at er er t o be e used sed by t he e proj ec ect be e iden ent ified ed w it hin t he e w at er er licen ence.

• e. Furt her

er, t he e am ount used sed per er so source e be e rec ecorded ed and rep eport ed ed w it hi hin t n t he he Annua nnual R Report .

Operational Requirements – Wells

 AANDC has several concerns related

to the drilling, completion and

• peration of the wells:

 Logging, Completion and Cementing

• NEB and Alberta ERCB provide guidance.

 Drilling Waste Management

• Proponent has committed to off-site disposal
• f drilling waste.

 Injectivity Testing

• Confirm suitability of Mattson formation.

Operational Requirements – Wells - Recommendations

Recommendations

AANDC rec ecom m en ends s t hat t he e NEB and/ or Alber ert a ERCB req equirem em en ent s s for w el ell logging, cem em en ent ing and casi sing, and any ot her er applicable e t est est s s and su subm issi ssion req equirem em en ent s s be e req equired ed under er t he e w at er er licen ence. e. AANDC DC recom m end nds a t erm and nd cond ndit ion n w it hi hin n t he he w at er licence prohibit ing t he onsit e disposal of drilling flui uid a and nd/ or c cut ut t ing ngs. AANDC DC recom m end nds t ha hat a “ Ful ull I nj ect ivit y Test est ” be e a req equirem em en ent of t he e w at er er licen ence.

• e. The

e resu esult s s sh should be e pr provide ded d t o t he Board d for review and d appr pproval pr prior t o t he e oper erat ional r re-inj ec ect ion of process ess w at er er int o t he e Mat t son

• n f

for

• rm at ion
• n.

Operational Requirements – Contingency Planning

 Spill contingency planning

 Approved Spill Contingency Plan required.  Worst case spill event.  Specific spill response procedures.

 Emergency response planning

 Approved Emergency Response Plan

required prior to operations.

Operational Requirements – Contingency Planning - Recommendations Recommendations

AANDC DC recom m end nds t ha hat an n approve ved Spill Cont nt ing ngenc ncy Plan m ust st be e in place e prior t o com m en encing oper erat ions. s. AANDC recom m ends ds t hat addi ddit ional de det ail be pr provide ded d on t he e im plicat ions s and ef effec ect s s of w orst st case se sc scen enario sp spills, s, inc nclud uding ng ho how t he he phy hysical respons nse w oul uld differ for a w orst st c case se sc scen enario c com pared ed t o a n non-w orst st c case se ev even ent . AANDC rec ecom m en ends s t hat sp spec ecific sp spill resp esponse se proced edures es sh should be e dev evel eloped ed for t he e proposed sed binary fluid H HFC-245a and, if it is s t o be e used sed on-si sit e, e, t he e inhibit or Arm ohib28. AANDC DC recom m end nds t ha hat any ny addit iona nal che hem icals, no not alrea eady d desc escribed ed in t t he e Spill Cont ingen ency Plan, m m ust st be e approved ed by t he e Board p prior t t o use se on si sit e, e, and m ust st b be e inc ncorporat ed i int nt o an up n updat ed Spill C Cont nt ing ngenc ncy Plan. n.

Operational Requirements – Contingency Planning - Recommendations Recommendations (continued)

AANDC rec ecom m en ends s t hat an approved ed Em er ergen ency Resp esponse se Plan sh should be e in p place e prior t t o com m en encem em en ent

• f o
• per

erat ions s under er a T Type e “ A” w w at er er licen ence. e.

Project Monitoring

 Project monitoring is recommended for

two components

 Operational

• Drilling fluid;
• Cementing and casing, logging, other;
• Pressure and flowrate;
• Injection zone; and
• Material balance.

 Potable Groundwater Zone

• Groundwater is used in the area
• Potential for contamination migration

Project Monitoring - Recommendations

Recommendations

AANDC rec ecom m en ends s t hat t he e local pot able e groundw at er er zone e be e def efined ed (ver ert ical ex ext en ent ) and t he e chem em ist st ry be e chara ract eri rized, pri rior r t o t he re re-inj ec ect ion of process ess fluids s t o t h t he Mat t s t t son form at i t ion. AANDC DC recom m end nds t ha hat a g ground undw at er m oni nit oring ng p plan n be d e dev evel eloped ed for t t he e proj ec ect . AANDC DC recom m end nds t ha hat t he he propone nent nt collect and nd analyse sam ples of drilling fluid used during t he drilling of t he he produc uct ion n and nd inj nj ect ion n w ell. Sam ples sho houl uld be rep eport ed ed by w el ell, dep ept h, volum e e used sed, and volum e e rec ecover ered ed.

Project Monitoring - Recommendations

Recommendations (continued)

AANDC DC recom m end nds t ha hat t he he operat iona nal inf nform at ion n and nd m oni nit oring ng requi uirem ent nt s of t he he Nat iona nal Ene nergy Board and/ or Alber ert a Ener ergy Reso esources es Conser servat ion Board be e included ed as s t er erm s s and condit ions s of t he e Wat er er Licen ence.

• e. At

a m ini nim um um , t he he requi uirem ent nt s out ut line ned w it hi hin n Sect ion n 4.0, 5. 5.0, 0, and 7. 7.0 0 of t he Albert a ECRB Direct ive 051 051 should be ado dopt pt ed. d. AANDC rec ecom m en ends s a r req equirem em en ent for o

• ngoing

m onit oring of t he e m ec echanical int eg egrit y of t he e sy syst st em em . This s coul uld i inc nclud ude m oni nit oring ng a and nd report ing ng inj nj ect ion n pressur ure and d fl flow rat e on a n a cont nt inuo nuous us b basis.

Project Monitoring - Recommendations

Recommendations (continued)

AANDC rec ecom m en ends s t hat a w at er er sa sam ple e (duplicat e e sa sam ple a e at a m m inim um ) be e collec ect ed ed from t t he e inj ec ect ion reser eservoir, analysed sed, and su subm it t ed ed t o t he e Board prior t o t he e inj ec ect ion of process ess w at er er. AANDC rec ecom m en ends s t hat re-inj ect ion fluid be m onit ored for t he e follow ing param et et er ers: s: t em em per erat ure, e, pH, so solid cont en ent , disp sper ersed sed and disso ssolved ed hydrocarbons, s, disso ssolved ed gases ses (CO2 and d H2S), sal alinit y, y, an and m et al als (t ot al al an and disso ssolved ed). AANDC rec ecom m en ends s t hat Borea ealis su s subm it a a post st -proj ect m at erial balanc nce provi viding ng vo volum um es and nd conc ncent nt rat ions ns of m at erials enc ncount unt ered/ us used dow n n ho hole inc nclud uding ng form at ion fluids, drilling m uds ds, acids, inhibit ors and m ud addit ives. es.

Adaptive Management

 New project for the NWT, relying on

project assumptions and predictions.

 Opportunity for Adaptive Management

 To assess and determine safe injection

rates/volumes.

 During and following completion of the

first well (producing well)

Adaptive Management - Recommendation

Recommendations

AAN AANDC recom m end nds t ha hat t he he Board inc nclud ude ad adap apt ive m an anag agem ent in m on

• nit or
• ring of
• f inj ect ion
• n

w ell para ram et ers rs.

Reclamation Security

 Developed using AANDC’s Reclaim

model

 Used standard AANDC reclamation

security assumptions and recent information and experience from CARD.

 Provided two estimates

 Amount after drilling of production well

• nly; and

 Amount after both wells completed and

project in operations.

Reclamation Security - Recommendations

Recommendations

AANDC rec ecom m en ends s t hat a t ot al rec eclam at ion sec securit y of $1, $1,214, 214,795. 795.00 00 be provided in a an accept able form 60 d 60 days prior

• r t o
• t he st art of
• f op
• perat ion
• ns. A land-rel

elat ed ed rec eclam at ion liabilit y of $25,972 should be held w it hin t he land use perm it and a w w at er relat ed liabilit y o

• f $

$1,188,822 should be e hel eld w it hin t he e w at er er licen ence. e. AANDC rec ecom m en ends s t hat a t ot al rec eclam at ion sec securit y of $1, $1,890, 890,719. 719.00 00 be provided in a an accept able form 60 d 60 days prior t o t he st art of act ivit ies associat ed w it h t he drilling of t he e re-inj ect ion w ell. A land-relat ed reclam at ion l liabilit y

• f $161,500 sho

houl uld be he held w it hi hin n t he he land nd us use perm it and nd a w at er relat ed liabilit y of $1,729,219 should be held w it hin t t he e w at er er licen ence. e.

Closure and Reclamation Plan

 Located on a brownfield site – however

a closure and reclamation plan should be developed.

 Follow “objectives based” approach.  Adapt from AANDC “Mine Site

Reclamation Guidelines for the NWT”.

Closure and Reclamation Plan - Recommendation

Recommendation

AANDC rec ecom m en ends s t hat a P Prel elim inary C Closu sure a e and Rec eclam at ion Plan be e a condit ion of t he e Wat er er Licen ence. e. The he P Plan s n sho houl uld be provi vided t o t he he Board f for r revi view and nd approval 15 m ont hs follow ing Wat er Licence approval.

Water Licence Term

 First project of this type in the NWT

 Term length – long enough to identify

unforeseen issues, short enough to incorporate lessons learned.

 Consistency with other northern

industrial operations.

Water Licence Term - Recommendation

Recommendation

AANDC reco com m ends t hat t he t erm of t he w at er lice cence ce be 7 years.

Closing Comments

 AANDC would like to thank the

MVLWB for providing the opportunity to present its technical intervention and associated recommendations.

Thank You!

Quest st ions? s?