Limiting the Use of Fresh Water in Hydraulic Fracturing

BACKGROUND: 

Water is a finite and increasingly stressed resource in Alberta, particularly during periods of drought and low precipitation that have become more frequent in recent years. Municipalities across the province are responsible for ensuring reliable access to potable water for residents, as well as supporting agricultural producers who depend on consistent water supplies for food production and economic sustainability. 

Hydraulic fracturing operations can require significant volumes of water, a portion of which is sourced from fresh surface water and shallow groundwater systems through Temporary Diversion Licenses (TDLs). While TDLs are intended to be short-term in nature, their cumulative impact on watersheds, particularly in smaller or already stressed basins, can be substantial. Municipalities have raised concerns regarding the lack of transparency, limited public engagement, and absence of an appeal mechanism associated with TDL approvals. 

Currently, the Alberta Energy Regulator (AER) is authorized to issue TDLs for energy resource activities under the Water Act. This dual role, both regulating industry and making water allocation decisions, has raised concerns among municipalities regarding the adequacy of environmental oversight and the prioritization of water use. Alberta Environment and Protected Areas (EPA), as the department mandated to manage and protect water resources, may be better positioned to provide independent and consistent oversight of water allocation decisions. 

Municipal governments are increasingly expected to manage the local impacts of water scarcity, including implementing water restrictions, investing in infrastructure, and responding to public concerns about water security. At the same time, municipalities have limited authority to influence industrial water use decisions made at the provincial level. 

In addition, advances in technology and industry practices have demonstrated that alternatives to the use of fresh water in hydraulic fracturing, such as the use of saline water, recycled produced water, or other non-potable sources, are viable and increasingly common. Encouraging or requiring a transition to these alternatives would reduce pressure on freshwater systems while allowing resource development to continue. 

Ensuring that water allocation decisions are transparent, science-based, and prioritize essential human and agricultural needs is critical to maintaining public trust and long-term sustainability. Providing opportunities for public input and access to information used in decision-making would further strengthen accountability. 

For these reasons, municipalities are seeking changes to provincial policy and legislation to better protect freshwater resources, improve transparency in water allocation decisions, and ensure that the governance framework reflects the importance of water as a shared and essential resource.