Muskeg River Interim Management Framework for Water Quantity and Quality Summary Report Management Guidance for Aquatic Components of the Muskeg River Watershed June 2008 Ahcma ENVIRONMENT Muskeg River Interim Management Framework for Water Quantity and Quality Summary Report ISBN: 978-0-7785-7631-0 For additional copies, please contact: Alberta Environment Information Centre Main Floor, 9820 - 1 06 Street Oxbridge Place Edmonton, Alberta Canada T5K 2J6 Tel: 780-427-2700 (dial 310-0000 first for toll free) Email: [email protected] 1 INTRODUCTION The Muskeg River watershed is located in the Athabasca Oil Sands region of northern Alberta, within the Regional Municipality of Wood Buffalo. The river is a t ributary to the Athabasca River and drains an extensive area of boreal forest wetlands. The mouth of the river is located about 55 km north of Fort McMurray and about 5 k m east of Fort MacKay. The area of the Muskeg River watershed is about 1,480 km^. There are several major tributaries to the Muskeg River, including Jackpine, Muskeg and Wapasu creeks. Kearl Lake is the largest lake within the watershed. It is 5.6 km^ in size, and drains an area of 85.6 km^. Figure 1.1 shows the location and extent of the watershed. The Muskeg River watershed is located within the boreal forest. Its lowlands are covered with black spruce and tamarack muskeg, while the upland areas are treed with trembling aspen, white spruce and jackpine forests. The Muskeg River is a b rown water system. Beaver ponds are common throughout the watershed, which influence both streamflow and water quality. The river provides important fish habitat, with white sucker, longnose sucker, lake chub and Arctic grayling the most common species. The Muskeg River watershed is underlain by mineable oil sands which are of increasing economic importance to Alberta. Currently, two producing oil sands mines and one limestone quarry operate within the watershed. Several other oil sands projects have recently been approved, but not yet developed. Table 1.1 lists the existing, approved and planned oil sand projects in the Muskeg River watershed. These mining activities have the potential to disturb about 50 to 60% of the Muskeg River watershed area. Without careful planning and appropriate regulations, there are concerns that the cumulative effects of these large-scale and long-term developments could compromise the ecological integrity of the area. , E cotogic^l integrity can mean different thin^Hqjdifferent pec^§|phl definition states that it i s the degree to which the physical, chemical and biological components of an ecosystem (including their composition, structure and processes) and their relationships are present, functioning and self-sustainable. It i s a measure of the ability of an ecosystem to support and maintain a b alanced, adaptive system with a s pecies composition, diversity and functional organization that is comparable to that of natural systems. It is therefore necessary to develop a strategy to appropriately manage the resources within the Muskeg River watershed to prevent impacts on its ecological integrity. Cumulative effects management, integrated regional planning and comprehensive watershed management are ways in which environmental impacts of development can be minimized. Muskeg River Interim Management Framework 1 Alberta Environment Using these approaches, Alberta Environment (AENV) has developed the Muskeg River Interim Management Framework (IMF). The IMF describes a management approach for water resources (water quantity and water quality) in the Muskeg watershed. The IMF will be used as a t emporary ‘backstop’ to manage development and guide regulatory decisions in the Muskeg River watershed until the end of 2009. AENV, in collaboration with First Nations and other stakeholder, will immediately initiate the comprehensive plan for the Muskeg River watershed and will target to complete by the end of 2009. If the comprehensive plan is not completed by the end of 2009, AENV will consider updating and revising the Interim Framework. Table 1.1 Major Existing, Approved and Planned Development Projects in the Muskeg River Watershed Capacity Land Disturbance Company\Project Name Status AppDraotve al Existing/ Albian Oil Sands 1999 Muskeg River Mine 4,383 Approved Albian Oil Sands 2006 Muskeg River Mine Expansion Approved 150,000" 8,091 Shell Canada Limited 2004 (ha)8 Jackpine Mine - P hase 1 Approved 120,000" 8,154 Shell Canada Limited Planned 13,030 Jackpine Mine Expansion 200,000 " Imperial Oil Resources Kearl Oil Sands Approved 2007 100,000" 19,660 Existing/ Syncrude Canada 2007" Aurora North Approved 200,000 " 7,980 Syncrude Canada Aurora South Approved 195,000" 8,966 Husky Energy Sunrise Thermal Project Approved 2010979 7' 195,000" 534 Existing/ Birch Mountain Resources ^ 2010959 7' Muskeg Valley Quarry Approved 200,000 " Birch Mountain Resources Hammerstone Project Planned 6,900,000 " 1,500 a barrels of bitumen production per day (bbl/d). 24,400,000" b tones of limestone per year. c Husky Sunrise is an situ recovery project that w2i0ll0 6 u"s e Steam Assisted Gravity Drainage (SAGD). All other oil sands projects in the watershed are open pit truck and shovel mining. d Birch Mountain Resources received regulatory approval for its Muskeg Valley Quarry in 2005 and has recently filed an application for the Hammerstone project which includes a limestone processing facility, e Application filed date, f ERCB approval date, g 1 km^ = 100 ha Muskeg River Interim Management Framework 2 Alberta Environment t n e m n r o i v n E a t r e b l A k r o w e m a r F 3 t n e m e g a n a M m i r e t n I r v e i gR e k s u M 1.1 Implementation The Muskeg River IMF is a structured approach to managing water quantity and quality within the watershed. It a ttempts to balance development with environmental needs. It takes an integrated approach to cumulative environmental impacts and managing multiple environmental stressors on the watershed (e.g., land disturbance, discharges to the environment). Establishing isolated management goals for individual companies or industrial activities is not an appropriate method to manage cumulative impacts. The IMF is an outcome-oriented approach that will be more successful to manage the cumulative impacts on water quality and water quantity in the Muskeg River. The IMF defines criteria for the evaluation of water quantity and water quality. Observed conditions are compared against scientifically-established limits that have been developed specifically for the Muskeg River watershed. These limits are based on data collected within the watershed, as well as more broad information on streamflow, water quality and the requirements of aquatic organisms. This approach follows the principle of maintaining environmental conditions as close to the natural state as possible. The management of activities within the watershed must be responsive to the evaluation process. Therefore, the water quantity and quality limits established in the IMF are associated with management actions. Compliance with the appropriate management actions will offset environmental impacts, reducing stresses on the ecosystem. Ongoing monitoring and follow up is required, including adjustments to the IMF as necessary. The IMF will meet its management objectives by working within the existing legal and regulatory framework. Water quality and water quantity are regulated respectively under the Environmental Protection and Enhancement Act (EPEA) and the Water Act, which are administered by AENV. The IMF will be largely implemented through the terms and conditions in the EPEA and Water Act licenses and approvals issued for development projects in the watershed. These Acts allow AENV to establish limits, targets and management objectives for water quality and water quantity to protect aquatic resources. AENV will have opportunities to impose requirements for new applications of approvals and licenses, as well as through renewals and amendment applications. If necessary, AENV will also use Director-initiated amendment authority. Proponents of development projects may be required to demonstrate how they will meet these limits and targets before they are granted license approvals and renewals by AENV. Muskeg River Interim Management Framework 4 Alberta Environment 2 SCOPE The purpose of the IMF is to guide AENV’s regulatory decision making within the Muskeg River watershed. The IMF focuses on water quality and quantity for two reasons. First, AENV and Fisheries and Oceans Canada (DFO) jointly released a water management framework for the lower Athabasca River, making the management of regional tributaries (including the Muskeg River) a p riority. Alberta Environment has a regulatory and legislative mandate under the Environmental Protection and Enhancement Act (EPEA) to manage all aspects of environmental quality and under the Water Actio specifically manage water quantity. However, many terrestrial and wildlife considerations will require a b roader approach from the Government of Alberta. Second, the basis of the IMF is that the water quantity and water quality of the Muskeg River are driving forces of the watershed. Changes to water quantity and water quality have ecosystem-level ramifications, including impacts on habitat and aquatic and terrestrial populations. By appropriately managing and protecting water quantity and quality, the structure and function of the aquatic ecosystem as a whole should remain intact. Water Quantify: The physical characteristics of water flow, including its volume and timing. Appropriate management of water quantity can ensure suitable water quality (through sufficient dilution) and habitat for aquatic organisms. Water Quality: The mass load and concentration of chemical constituents in the water, both suspended and dissolved. Appropriate management of water quality ensures protection of aquatic habitat and other uses (drinking, recreation, industry etc.). Aquatic Health: The general status of aquatic organisms. This can be measured through population level characteristics such os density, diversity, recruitment (birth/colonization, immigration rates) and mortality. Aquatic health is more difficult to monitor and assess than water quantity and quality, but provides a l itmus test for how well quantity and quality are being managed. The specific objectives of the Interim Management Framework were to develop; • Water Quantity Objectives for the Muskeg River and Kearl Lake that protect water quality, aquatic habitat and organisms • Water Quality Targets and Limits to protect and maintain the physical, chemical and biological characteristics of the Muskeg River • A m onitoring strategy to evaluate the Impacts of development and manage and/or reduce those impacts Muskeg River Interim Management Framework 5 Alberta Environment • An approach and information system that will assist the development of the Muskeg River Water Management Plan A W ater Quantity Objective is the amount of water (flow in rivers, level in lakes) required to protect water uses. These limits are defined in order to maintain the natural range of flows required for aquatic organisms, aquatic or riparian habitat, water quality and the physical geomorphic processes of the aquatic system. Objectives are site-specific and based on local characteristics and the natural seasonal variation of the water body. A W ater Quality Target is a p oint where a non-desirable shift in a w ater quality parameter has occurred. These are established using an “anti-degradation” (or keep water clean) approach. Targets are set for individual water quality parameters and can be established for various scenarios and environmental conditions, such as seasons, developmental stages of organisms, or climate change. By preventing a w ater quality parameter from exceeding its target, water quality can be maintained with no significant degradation. A W ater Quality Limit is a p oint beyond which a d esignated water use may be impaired. These are established under a “ use-protection*’ perspective, using water quality guidelines. By preventing a w ater quality parameter from exceeding its capacity limit, Impacts on water uses may be prevented. Water quantity and quality objectives and targets are good surrogates for monitoring ecosystem health and for identifying changes to other ecosystem components. Alberta Environment recognizes that this is not a complete approach. A c omprehensive approach would also include aquatic organisms. However, organism responses to development can be difficult to interpret. A c omprehensive monitoring and management plan will address impacts on aquatic communities. Meanwhile, AENV has provided the best available approach that can be managed with certainty in time and location. Muskeg River Interim Management Framework 6 Alberta Environment 3 APPROACH Alberta Environment has recently adopted a new approach to address cumulative effects on the environment. This approach attempts to balance economic growth with environmental protection of air, water, land and biodiversity. The purpose of this new approach is to guide environmentally responsible development by establishing socially acceptable, economically feasible and environmentally sustainable limits, targets and outcomes. These management actions are then incorporated into the regulatory process. The new approach represents a shift from the traditional ‘project-based’ environmental protection to a h olistic and collaborative management perspective. The IMF is an important first step toward addressing the cumulative effects of development on the Muskeg River watershed. The IMF establishes limits and targets for water quality and water quantity pending the development of an integrated management plan for the entire watershed. The interim water quality and water quantity limits and targets could be revised in the future under consideration of social and economic values and interests of local communities and stakeholders. 3.1 Baseline Data Review There is a significant amount of existing baseline information and data for the Muskeg River watershed. This is p rimarily available through recent oil sands project ElAs and monitoring reports, through AENV at its long-term river monitoring stations, and through the Regional Aquatics Monitoring Program (RAMP). An extensive volume of information has also been gathered by the Cumulative Environmental Management Association (CEMA) and will be used to support the development of the long-term Muskeg River Water Management Plan. This available information was consolidated and used to develop the IMF. 3.2 Establishing Thresholds and Management Conditions The IMF is based on a combination of anti-degradation and effects-based limits. The Water Quantity Objectives and Water Quality Targets and Limits are derived from a scientific understanding of aquatic ecosystems and their capacity to tolerate disturbance and assimilate external stressors. Water quality and quantity monitoring data collected along the Muskeg River will be used as indicators of the effects of development in the watershed as a whole and are considered surrogates for ecosystem health. Muskeg River Interim Management Framework 7 Alberta Environment In setting Water Quantity Objectives and Water Quality Targets and Limits for the Muskeg River, the IMF has used existing information on streamflow, water quality and biotic requirements. From these data, minimum water quantity and quality thresholds were established. These thresholds are associated with management actions to offset the human and industrial impacts on water use. Figure 3.1 shows the scale of responses and management actions, depending on the current environmental conditions in relation to the established thresholds. The Water Quantity Objectives translate into combinations of river flow (quantity of water In the river) and discharge limits to maintain water quality. Water Quality Targets and Limits have been defined from a “ keep water clean” perspective and a “ use- protection” perspective, respectively. The IMF consists of three environmental management conditions for both water quantity and quality. These conditions correspond to environmental changes as streamflow and/or water quality decline. The three environmental management conditions are colour coded as: • Green: Cumulative impacts from development on flows and water quality have no measurable negative impact on management goals for ecosystem integrity; the aquatic system is in near-background state. No management actions or responses are required. • Yellow: Negative impacts to the aquatic system are resulting in its shift away from the management goals for ecosystem integrity. As a result, sources of these impacts, as well as trends and risks must be evaluated. Management activities are invoked where possible. Enhanced monitoring and risk management plans are required and shared management activities to improve conditions are promoted. • Red: Impacts to the aquatic system exceed limits for ecosystem integrity, and require a management response. Red conditions (low flow based) for water quantity require mandatory adherence to cumulative loss limits. The exceedance of Water Quality Limits for a certain parameter requires X mandatory reductions in that parameter load. 3.3 Consultation and Review During the planning process for the IMF, AENV consulted with key stakeholders from local First Nations, the oil and gas industry, environmental groups and other regulatory agencies. Alberta Environment also consulted with other key stakeholders that express interest in being part of the consultation process. Muskeg River Interim Management Framework 8 Alberta Environment