Area-based Analysis A n initiative of the BC Oil and Gas Commission

1. Area-based Analysis A n initiative of the BC Oil and Gas Commission BC Energy Conference October 2013

2. Area-based Analysis Topics • Why ABA • Objectives • Key Features • Elements • Liard Basin Analysis • Linkage to Other Gov’t Initiatives • Application to Pipeline Corridors

3. Area-based Analysis Why? • Discovery of significant unconventional gas resources • Nature of resource and its expected development • Potential for substantial development ramp up • First Nations, stakeholder and public concerns • Regulatory modernization

4. Area-based Analysis Objectives • Result in better environmental outcomes • Reduce administration for all parties • Provide consistent and appropriate policy / legislation interpretation for decision-making, monitoring and reporting • Demonstrate to First Nations, stakeholders and the public that their concerns are recognized and addressed

5. Area-based Analysis Key Features • Limited set of values with nesting of related values • Identification of components, indicators, and triggers for decision-making or management response • Analysis of current condition for each value considering historical disturbance from all sectors • Development of an Operating Area Land Base (OALB) map

6. Area-based Analysis What it is not • Land Use planning • Development of new legislative requirements

7. Area-based Analysis Key features: value selection • Associated with existing legal and policy objectives • Must have available spatial and quantitative data • The nesting concept determines which values are continuously assessed and managed Land Air Water

8. Area-based Analysis Liard Basin – proof of concept

9. Area-based Analysis Draft values • Hydro-riparian • Old Forest • High-priority wildlife habitat, ecosystems and features • Caribou • Resource and cultural features

10. Area-based Analysis Draft values - pending • Groundwater • Air quality • Additional environmental and cultural values identified by First Nations

11. Area-based Analysis Riparian: nested values Moose Grizzly Bear Black-throated Green Warbler Western Toad Bay-breasted Warbler Rusty Blackbird Canada Warbler • Narrow-leaf willow shrubland • Balsam poplar • Black cottonwood - spruces/red-osier dogwood • Slender sedge/common hook-moss, • Native fish populations

12. Liard Area-based Analysis OALB map

13. Liard Area-based Analysis Riparian Intactness: value detail

14. What will Area-based analysis be used for?

15. Objective: Offset and/or restore conditions below trigger Options: Comprehensive supporting information, policy review, new direction Regulatory/policy trigger Objective: Mitigate and/or restore conditions below trigger Options: Enhanced review, potential for special permit conditions Enhanced management trigger Objective: Avoid/minimize impact to value Options: Regular permit procedures

16. Area-based Analysis Linkage to Other Gov’t Initiatives • Key linkage is to government’s Cumulative Effects Assessment and Management (CEAM) framework • Similar values and methods to CEAM • CEAM focuses decisions at all natural resource sectors, except oil and gas; ABA is tool for oil and gas

17. Area-based Analysis Next Steps • Engage with First Nations and broader industry & revise draft Liard analysis based on input • Finalize Liard Plan and implement in decision making • Continue to work with Cumulative Effects Assessment and Management (CEAM) project and Montney basin.

18. Area-based Analysis Pipeline Corridor Analysis • Adapts ABA to analysis of pipeline corridors • Objectives: • Enable consistent / credible impact assessment of proposed or potential pipeline route options • Help ensure assessment and authorization processes can be resourced and completed within acceptable timeframes

19. Thank You Area-based Analysis A n initiative of the BC Oil and Gas Commission