Fox Creek Operators Group Water SubCommittee Fox Creek

Fox Creek Operators Group Water Sub-Committee

Fox Creek Operators Group • Established in late 2013 • Comprised of seven member companies operating in the Fox Creek area, located in northwest Alberta (Chevron, Encana, Murphy Oil Corporation, Paramount Resources, Repsol, Shell Canada and XTO Energy Canada) • The Fox Creek Operators Group (FCOG) provides a forum to encourage a collaborative approach for the responsible development of natural resources in the Fox Creek Region • The group works together to support the development of the area and year-round industry activities, by identifying efficiencies and delivering long-term value in the area – Water being a key focus of the group

FCOG Organizational Structure Executive Committee Operations Sub. Committee Community Sub. Committee Water Sub. Committee

Mandate of Water Sub-Committee • Develop collaborative relationships to enable cooperative water management in the Fox Creek region • Share water resources, water infrastructure and water information

Water Sub-Committee Objectives • Responsible freshwater use • Support the research and development of alternative non-freshwater sources, including produced water re-use, to reduce the reliance on freshwater sources • Decrease water trucking transport • Manage cumulative water operations impacts • Reduce industry footprint of projects in the Fox Creek area

Water Operations Share operational updates for water infrastructure and planning: • Where possible, share water intake facilities, pumps, pipelines, temporary water storage facilities and water storage reservoirs • Forecast water demand • Manage water sources for diversion when above aquatic ecosystem base levels • Identify and utilize lower environmental impact ways of transferring and storing water • Identify and leverage opportunities to recycle water

Water Management Improve water management practices: • Where possible, collaborate on infrastructure for water sharing, treatment and disposal • Share and discuss water best practices, including safety • Interface with regulators on water management practices • Promote efficient water use within existing regulations and or pilot projects • Identify other water collaboration groups and participate as appropriate

Collaboration Successes Footprint Reduction - Roads • Share roads to access water sources, water storage facilities and existing water intake facilities – minimizes land footprint and wildlife disturbance • Completed a multi-user road upgrade to Twin Creeks road to enable access to water infrastructure and well sites. Equal cost sharing was applied to this project – Improves motor vehicle safety – minimizes land footprint and wildlife disturbance

Collaboration Successes Footprint Reduction – Infrastructure • Established infrastructure sharing agreements to use existing approved permanent water diversion points, pipeline infrastructure and storage facilities. This reduced the following: – activity in the river and at rivers edge; – surface operations due to proximity to permanent infrastructure; and – risk of safety incidents related to the activities associated with temporary surface lines and equipment