Photo by Jon Martin ©2021.
About the Council
The Oldman Watershed Council is a collaborative forum for all voices, working for watershed health through education, action and stewardship. The OWC Board of Directors is made up of stakeholders from all sectors, including First Nations, provincial and federal governments, municipalities, agriculture, irrigation, health, industry, environmental nonprofits, academia, and community members at large.
Our goal on this topic is to provide scientific information about the potential impacts of the proposed changes on the health of the watershed, and the views of our stakeholders to decision makers so that the voice of the local community is heard.
Alberta’s Water Management System
Water is managed by the Ministry of Alberta Environment and Parks (AEP). AEP has the authority to allocate water to users via a water license. Anyone who wants access to water in the province must apply for a water license from AEP and provide detailed information about how the water will be used. On the application, the applicant must specify which river, lake, or body the water would be withdrawn from; the time of water extraction; the rate water will be extracted; how the water will be used; potential impacts on other water users; if any will be stored; and a plan for dealing with water shortages. If the application is for withdrawing from a stream, applicants also must complete a statistical analysis to determine if the new withdrawal would impact existing stream flow targets set to protect the health of the aquatic ecosystem. Notices of new applications are posted on the Public Notices Viewer, in local papers, and at local AEP offices. People who are directly affected by an application are generally given 7-30 days to provide feedback.
Determining who is ‘directly affected’ is a point of contention in the system. Currently, the government takes a narrow view that primarily includes only those living or operating a business nearby. From what the OWC has heard from our membership, partners, and the public, there is a strong desire to see a broad, inclusive interpretation that allows people to speak to the cumulative effects on the environment and other users.
Water Management in the South Saskatchewan River Watershed
The South Saskatchewan River Basin Water Management Plan governs how water is managed in the Oldman, Bow, and South Saskatchewan River watersheds. The plan was approved by the government in 2006-07 after extensive consultation and negotiation with stakeholders. The approval of this plan was a historic moment because it (mostly) ended the availability of new water licenses, as water is highly allocated. However, there are two existing water allocation orders that allow for new water licenses for specific purposes: 1) the Oldman River Basin Water Allocation Order, which existed before the plan and is therefore unaffected by the newer rules, and 2) the Bow, Oldman and South Saskatchewan River Basin Water Allocation Order, which allows for new water allocations for First Nations, storage, protecting aquatic ecosystems, and applications already in the queue when the 2007 order became a legal regulation.
Photo by Jon Martin ©2021.
The plan also allowed for a new water transfer system to be developed. This system allows for people who need water for their business, farm, or municipality to purchase an existing license from existing license holder and apply to Alberta Environment and Parks to have the license transferred. License transfers are reviewed similarly to a new license as outlined above.
For more information about water management in the Oldman watershed, visit https://oldmanwatershed.ca/water-management.
Oldman River Basin Water Allocation Order
The 2003 Oldman River Basin Water Allocation Order reserves 11,000 acre-feet of water upstream of the Oldman reservoir from the Oldman, Castle and/or Crowsnest Rivers. This water is reserved primarily for irrigation purposes. Other purposes, including municipal, commercial, recreation, rural community water supply, non-irrigation agricultural, are allowed a cumulative amount of 1,500 acre-feet. Industrial purposes are allowed only 150 acre-feet, leaving 9,350 acre-feet for irrigation.
Our understanding is that this water reservation was established for irrigation and to demonstrate to the approximately 30 families who lost their farms to the flooding of the Oldman reservoir that agriculture upstream of the reservoir would benefit from the dam.
Current Allocations from the Order
Proposed Changes
The Government of Alberta (GoA) is proposing to remove the water usage limits on specific sectors and just have one overall limit for all types of use. The total limit of 11,000 acre-feet would still apply, but the majority of it would no longer be set aside only for irrigation. Any use could be permitted—if approved—following the government review process.
The GoA’s rationale is that the proposed changes are needed to support economic recovery and that the existing limits within the order are stifling development. The GoA is not considering changes to the priority allocation system, where licenses given out first have priority over licenses given out last; existing license holders will maintain their priority, based on the date they were approved.
MLA Roger Reid invited OWC to meet with him and the Executive Director of Alberta Environment and Parks’ Water and Waste Policy division to discuss the proposed changes in late November. In late January, OWC provided written feedback (view document) to MLA Reid and he responded in February (view response document).
Environmental Flow Needs
The GoA is also proposing to set aside 20% of the total, or 2,200 acre-feet, to maintain environmental flows. It is unclear if this amount would be enough to maintain ecosystem function because no research exists regarding the instream flow needs for the Castle, Crowsnest, Livingstone, or upper Oldman Rivers and their tributaries where new licenses would allow new water withdrawals. It is also not known where the water withdrawal points would be.
There are many considerations that have to be understood in order to determine the environmental impact. Considerations include amount, location, and timing of withdrawal; if there is return flow; what water quality targets we need to meet; fish habitat; etc. To provide meaningful and effective data, impacts must be monitored and assessed over time. We do know that smaller streams are more sensitive and vulnerable so it is critical that instream flow needs assessments are completed. We also know that streams where withdrawals are made must be monitored over time. Our best scientific guideline to protect the aquatic ecosystem is that a maximum of 15% of a stream’s natural flow can be withdrawn during normal flows before negative impacts are caused and that no water should be withdrawn during times of extreme low flow. Extreme low flows typically occur during droughts and in late summer and winter when precipitation is lower or frozen in snow and ice.
Photo by Jon Martin ©2021.
Are we talking about a lot of water?
If the proposed changes enabled the maximum amount of water under the Order to be allocated and used, the amount would be 8,800 acre-feet (with 2,200 acre-feet set aside for environmental flows). The Oldman reservoir holds nearly 400,000 acre-feet. The Lethbridge Northern Irrigation District (LNID) main canal is the primary diversion on the Oldman River. The average diversion into the LNID main canal from 2015-2017 was 227,000 acre-feet, which irrigates about 188,500 acres and provides conveyance for about 11,000 acre-feet of other uses (primarily water for livestock). The City of Lethbridge average diversion from 2018-2020 was 18,400 acre-feet, which supplies a population of 118,500, and includes regional customers including Coaldale, Coalhurst, Picture Butte, McCain’s, and others.
In the context of the entire Oldman River, 8,800 acre-feet of water is not a huge amount. However, the creeks and rivers upstream of the Oldman Reservoir are small and the impacts of even minor flow withdrawals could be significant. The impact of any withdrawal needs to be understood at the creek level. Furthermore, in dry years, where every drop of water is of high-value, an 8,800 acre-feet withdrawal could make a significant difference for license holders with a priority date later than 2003.
Impacts on Other Licensees
New licenses given under the Order will have a priority date of 2003. The Oldman watershed was closed to new licenses in 2007. As such, there are presumably licenses given out between 2004-2007 that will be impacted by any new licenses given out under the Order. OWC has recommended that these license holders be made aware of these changes—if approved—so that they can adjust their plans to accommodate getting bumped further down the queue in times of shortage.
Water for Coal Mining
It is expected that if federal and provincial regulators approve two to four coal mines being proposed along the eastern slopes of the Oldman watershed, and the proposed changes are made to the Order, that coal companies would apply for between 1,500-3,500 acre-feet of water. Some mines would need to withdraw water from nearby creeks, while one—Montem’s Tent Mountain—has access to an old pit lake left over from past mining activities.
Most of the mines are still in the exploration phase and have not applied for a water license yet. We do not know what their anticipated water use could be. Once their applications have been submitted, individuals and groups will be able to review the applications and provide input. Each license application has to be evaluated on a case-by-case basis, with consideration of the cumulative impact of every new water license.
Water quality issues were covered in our past coal mining blogs; Coal Mining in the Oldman Watershed and Navigating our Future: Coal Mining in the Oldman Watershed Part 2.
New Water License Applications
OWC strongly supports the government’s intention to make all new water licenses under the Order subject to strict conditions, including water conservation objectives, instream objectives, regular monitoring, and public reporting.
Because of the importance and sensitivity of our headwater streams, we strongly advise the Government of Alberta to include a clause to prevent transfers of any new water licenses approved under the Order, so that once the water is no longer needed by the original licensee, it reverts back to the government and cannot be sold on the transfer market.
Impacts on Agriculture
Upstream of the Oldman reservoir, the impact is clear: producers would lose their current exclusive access to the 9,350 acre-feet set aside for irrigation. With the proposed changes, irrigators can still apply for a water license, so long as there is allocation available. If there is no allocation available, a license would not be granted. Over the years only 1,295 acre-feet of water has been licensed or applied for by irrigators. This may be because cooler weather and fewer frost free days limits the types of crops that can be grown, thus limiting the return on investment in costly irrigation infrastructure.
Agricultural stakeholders are concerned. They feel that they are losing what was promised to them when the Oldman dam was negotiated. In particular, the landowners who lost their land to the reservoir are unhappy that agricultural interests upstream will no longer be the primary beneficiary of the Order.
Photo by Jon Martin ©2021.
Unallocated Water is Valuable
All unallocated water that is left instream is of great benefit to the natural river system and all the fish and wildlife that depend on it. Water is a stream’s most valuable asset. It is also a valuable insurance policy for all downstream users. Water that is left unallocated provides a useful cushion during dry periods to ensure junior licensees do not get cut off from accessing water due to a shortage or lack or supply.
Challenges in Dry Years
Over the past thousand years the Oldman Watershed has experienced many multi-year droughts. Some have lasted longer than a decade. If another multi-year drought occurs, some license holders would not be able to withdraw their allocation because there simply wouldn’t be enough water in the river. In this scenario, junior license holders with the newest licenses lose their right to withdraw first, with older licenses getting priority. New licenses permitted under the Order with a date of 2003 would likely be significantly impacted in a drought, and thus, their risk is higher. It is unclear how industrial users like coal mines would operate in a drought, especially a multi-year drought.
The most recent climate change analysis has shown that the prairies of Canada are warming two- to three-times faster than the rest of Canada. We are also experiencing shifts in precipitation patterns. Currently, more precipitation is occurring in Spring and Autumn, with less in summer. Analysis of flow trends has shown a decrease in many of our upstream rivers. This means that there is less water available at the times it is most needed due to higher temperatures and levels of evaporation.
OWC has recommended that all new licensees are required to develop climate change preparedness plans that include planning for multi-year drought.
Impacts on the Water Transfer System
The proposed changes to the Order have the potential to cause unintended consequences for economic development in the region. Developers may favour the region upstream of the Oldman reservoir because they can access a new water license for free, rather than paying for a costly license transfer downstream. This inadvertently gives a competitive advantage to one region, while possibly taking away opportunities for another region.
Because the Oldman River watershed is a closed-basin and the water available under the Order is some of the only water available for new licenses, the proposed change in use of the water has unique implications. The water market transfer system allows water to move within the watershed. Careful consideration of the impact of any move is necessary. For example, if withdrawals are transferred to creeks or rivers that are already stressed from low flows, this could have negative consequences in terms of stream health. Consideration should be given to limit transfers that result from the change in use within the Order.
Photo by Jon Martin ©2021.
A Voice for You and Your Watershed
OWC is encouraging the Government of Alberta to have broad, public consultation about these proposed changes because there could be far reaching implications for the water transfer system, our rivers, and other water users. Any changes need to be done very carefully to avoid unintended consequences and avoidable water-related challenges. The government has indicated their intention to hold an engagement process with local stakeholders and we look forward to participating.
OWC will continue to act as a voice for the watershed, and all those who depend on it. We will share information as it becomes available. In the meantime, individuals and groups can share their views with their elected MLA.
