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	<title>The Narwhal | News on Climate Change, Environmental Issues in Canada</title>
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      <title>&#8216;Time Bombs&#8217;: 92 Fracking Dams Quietly Built Without Permits, B.C. Government Docs Reveal</title>
      <link>https://thenarwhal.ca/time-bombs-92-fracking-dams-quietly-built-without-permits-b-c-government-docs-reveal/?utm_source=rss</link>
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			<pubDate>Thu, 29 Mar 2018 17:58:08 +0000</pubDate>			
			<description><![CDATA[This piece originally appeared on Policy Note, by the Canadian Centre for Policy Alternatives. The number of unlicensed and potentially dangerous dams built in recent years in northeast British Columbia is nearly double what has been reported, according to one of the province’s top water officials. At least 92 unauthorized dams have been built in...]]></description>
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<p><em>This piece originally appeared on <a href="http://www.policynote.ca/easy-water-time-bombs-fracking-dams-and-the-rush-for-h2o-on-private-farmlands/" rel="noopener">Policy Note</a>, by the Canadian Centre for Policy Alternatives.</em></p>
<p>The number of unlicensed and potentially dangerous dams built in recent years in northeast British Columbia is nearly double what has been reported, according to one of the province&rsquo;s top water officials.</p>
<p>At least 92 unauthorized dams have been built in the region, where natural gas industry fracking operations consume more water than just about anywhere on earth. That&rsquo;s far more than the 51 dams previously identified in documents obtained through Freedom of Information (FOI) requests by the Canadian Centre for Policy Alternatives (CCPA).</p>
<p><!--break--></p>
<p>With the number of unlicensed dams built to impound freshwater used in fracking operations approaching 100, more questions are being raised about how so many structures were built without provincial agencies halting their construction.</p>
<p>Ted White, director and comptroller of water rights in B.C.&rsquo;s Water Management Branch, confirmed the higher number, which includes an additional 41 dams to those originally documented by the CCPA, all built on private lands, most if not all, on rural farm lots in the provincial Agricultural Land Reserve.</p>
<p>White&rsquo;s confirmation came after his ministry &mdash; the Ministry of Forests, Lands, Natural Resource Operations and Rural Development (FLNRO) quietly posted a consultant&rsquo;s report on its website early in the new year.</p>
<p>The report, posted without an accompanying press release, called some of the unauthorized dams potential <a href="https://www2.gov.bc.ca/assets/gov/environment/air-land-water/water/dam-safety/dugouts_mattison_july_final.pdf" rel="noopener">&ldquo;time bombs&rdquo;</a> and said a top priority must be &ldquo;to find the high consequence dams and make sure they are properly constructed and operated and maintained in an appropriate manner before any of them fail.&rdquo;</p>
<p>Jim Mattison, who wrote the report, was also once B.C.&rsquo;s water comptroller.</p>
<p>Mattison based his conclusions on satellite imagery analyzed by FLRNO staff who looked at the vast network of artificial water bodies in the northeast where B.C.&rsquo;s largest natural gas reserves are found. The analysis revealed nearly 8,000 water bodies have been constructed in the region, more than half of which are relatively small holes or &ldquo;dugouts&rdquo; in the ground that capture and store water used by farmers and/or natural gas companies.</p>
<p>Additionally, the report identified 268 &ldquo;large&rdquo; or &ldquo;very large&rdquo; artificial water bodies that could be dam reservoirs. These water bodies, all at least a half hectare in size and many much larger, became a top priority for further study.</p>
<p>After Mattison submitted a first draft of his report in March 2017, dam safety officials with FLNRO flew by helicopter to 80 suspected dams.</p>
<p>Those inspections, White said, identified 41 previously undocumented dams that were built without the proper licenses and authorizations. In an emailed response to questions, White said &ldquo;the 41 dams identified by the Ministry are in addition to the 50 or so that the OGC [Oil and Gas Commission] had identified previously.&rdquo;</p>
<p>In contrast to previous reports that identified dozens of unauthorized dams built on public lands, the recently identified 41 dams are all on <em>private</em> lands, including farmlands, White said, adding that &ldquo;the Ministry and OGC have been working closely together to identify dams that require regulation.&rdquo;</p>
<h2><strong>B.C. fracking consumes between 20 and 100 times more water than a decade ago</strong></h2>
<p>The unprecedented scale of problematic dams built in the region coincided with a rapid expansion in the amount of water that fossil fuel companies use in their fracking operations, particularly in the Montney Basin, the more southern of the two largest natural gas plays in northeast B.C.</p>
<p>According to a 2016 analysis by consulting firm Foundry Spatial, fracking operations in the region now consume <a href="http://www.esaa.org/wp-content/uploads/2016/04/WT16BKerr.pdf" rel="noopener">between 20 and 100 times more water</a> than they did just over a decade ago.</p>
<p>Around the time Mattison submitted his draft report last March, the CCPA received a tip that many unauthorized dams had been built by fossil fuel companies without the companies first obtaining required water licences or submitting engineering and construction plans to provincial dam safety officials.</p>
<p>The CCPA subsequently flew to Fort St. John, identified unlicensed dams in the field and <a href="http://www.policynote.ca/dam-big-problem/" rel="noopener">published findings</a> showing how &ldquo;dozens&rdquo; of such structures had been built in apparent violation of provincial acts and regulations including the <em>Water Act</em>, the <em>Environmental Assessment Act</em> and the provincial <em>Dam Safety Regulation</em>.</p>
<h2><strong>B.C. Oil and Gas Commission responsible for regulating problematic dams</strong></h2>
<p>FOI requests later confirmed that 51 such dams had been built. All but three were on Crown or public lands shared with First Nations.</p>
<p>B.C.&rsquo;s Oil and Gas Commission (OGC), which regulates fossil fuel companies, is now responsible for regulating those dams.</p>
<p>Nearly one third of the dams first identified as unauthorized <a href="https://thenarwhal.ca/user/ben-parfitt">were later found to have structural problems</a> that posed serious enough risks to human health and safety and the environment that the companies were ordered to take corrective actions.</p>
<p>Among the most significant design flaws were dams built without spillways, which are essential to divert water safely away from dam reservoirs in the event that reservoirs overfill. Without spillways, dams are at heightened risk of catastrophic failures.</p>
<p>The 41 dams on private land are FLNRO&rsquo;s responsibility to regulate not than the OGC&rsquo;s, and White said dams on private lands are nevertheless subject to the same laws and regulations as those on public lands.</p>
<p>Once dams exceed a certain height and/or impound enough water, they become regulated structures. The 41 identified dams on private lands and the 51 on Crown lands meet the criteria for regulated dams.</p>
<p>The story of one of the dams on private land sheds light on the challenges ahead for FLNRO&rsquo;s dam safety and water officials.</p>
<h2><strong>The frack water gambit on private lands</strong></h2>
<p>Old Faithful Water Inc. is an offshoot of Swamp Donkey Oilfield Services, a Dawson Creek-based company owned by Trent Lindberg. The company is in the business of selling water to natural gas industry clients.</p>
<p>Like the famed geyser that spews forth water with regularity in distant Yellowstone Park and that the company named itself after, Old Faithful&rsquo;s owners boast on the company&rsquo;s website that they can sell water to the fracking industry winter, spring, summer and fall. Each of the company&rsquo;s four &ldquo;all season&rdquo; facilities in the Peace River region straddle the B.C.-Alberta border and are near major hauling routes like the Alaska Highway.</p>
<p>Each facility has ample room for incoming trucks to hook up to pumps that can fill the average tanker with 32 cubic metres of water in just eight minutes. Then the trucks can rumble off to nearby gas drilling pads where the water is pumped underground during some of the most water-intense methane gas industry fracking operations on earth.</p>
<p>Much of that information is on the Dawson Creek company&rsquo;s website, which features <a href="http://www.oldfaithfulwater.com/default.htm" rel="noopener">a somewhat bucolic photograph</a> of grasses and flowers in front of what appears to be a small lake except the lake&rsquo;s far banks look like they&rsquo;ve been bulldozed into place.</p>
<p>&ldquo;<a href="http://www.oldfaithfulwater.com/facilities.htm" rel="noopener">When it comes to easy water</a>,&rdquo; Old Faithful&rsquo;s website gushes, &ldquo;we have it for you.&rdquo;</p>
<p>But the &ldquo;easy water&rdquo; story has an edgier, uneasy narrative.</p>
<p><img src="https://thenarwhal.ca/wp-content/uploads/files/Easy_Water_PN.jpeg" alt=""></p>
<p><em>A large, earthen dam operated by Old Faithful on private&nbsp;lands. Photo: Vicky Husband</em></p>
<p>At least some of what the company sells to its industry clients comes from a reservoir impounded by a large earthen dam on private land owned by Trent and Twyla Lindberg. (The Lindbergs could not be reached for comment.)</p>
<p><a href="http://prrd.bc.ca/board/agendas/2014/2014-11-2520501601/pages/documents/09-R-08Swamp_Donkey_67_14_ALRnfu.pdf" rel="noopener">According to a document filed with the Peace River Regional District</a>, when the dam&rsquo;s reservoir is at &ldquo;full capacity&rdquo; the impounded water is six metres &ldquo;above grade.&rdquo; In other words, a wall of water roughly as high as a two-storey house is at risk of spilling in the event the dam failed.</p>
<p>The company built the dam in violation of key provincial regulations, including obtaining a water licence before building the dam. According to documents filed with the Peace River Regional District by a surveyor working for the company, the dam was built in mid-2013, long before the provincial government issued the water licence.</p>
<p>Old Faithful&rsquo;s dam and reservoir are also on farmland in B.C.&rsquo;s Agricultural Land Reserve, land that can no longer produce crops because it is either covered by the dam and reservoir, or by the road leading to and from the facility, or the by the large clearing constructed for the tanks and pumps used to fill the incoming trucks with their frack water.</p>
<p>And the water used to fill the unlicensed dam&rsquo;s reservoir was pumped without permission from nearby Six Mile Creek. The surveyor&rsquo;s report incorrectly claims that the creek is a &ldquo;non-fish-bearing&rdquo; stream when in fact the creek is home to spawning and rearing fish.</p>
<h2><strong>&lsquo;It&rsquo;s the Wild West up here&rsquo;</strong></h2>
<p>Last April &mdash; four years after the unlicensed dam was built &mdash; FLRNO retroactively issued Old Faithful&rsquo;s owners a water licence, allowing the dam to continue operation. White said the government elected not to fine or charge the company for violating the rules.</p>
<p>&ldquo;When instances of non-compliance are discovered related to a dam, the goal of the Ministry is to bring owners into compliance with the WSA and its regulations through application of the&nbsp;<a href="http://www2.gov.bc.ca/assets/gov/environment/air-land-water/water/water-rights/dam_safety_ce_policy_final-2014.pdf" rel="noopener">Dam Safety Compliance and Enforcement Policy</a>. By applying for and being granted a water licence, the owner is demonstrating progress toward coming fully into compliance with the WSA and regulations,&rdquo; White said in an emailed response to questions.</p>
<p>&ldquo;There are currently no outstanding orders or fines related to this file.&rdquo;</p>
<p>The lack of fines for building a dam without the required pre-approvals does not surprise Arthur Hadland, a longtime area resident, farmer and former elected director for the Peace River Regional District.</p>
<p>&ldquo;It&rsquo;s the Wild West up here,&rdquo; says Hadland, who while a regional district director between 2008 and 2014 represented about 7,000 rural residents living in the outlying region around Fort St. John.</p>
<p>&ldquo;There&rsquo;s no sense of stewardship anymore,&rdquo; Hadland laments. &ldquo;We&rsquo;ve lost that.&rdquo;</p>
<p>Most people living in the region may have never heard of Old Faithful Water Inc.</p>
<p>Shell Canada, a subsidiary of the global fossil fuel behemoth Royal Dutch Shell, is another matter. The company&rsquo;s sign can be seen at Shell gas stations in just about every community in the province and the company also has subsurface rights to oil and gas over an area totalling more than 88,200 hectares in northeast B.C.</p>
<p>In 2016, Shell had drilling rights on an even greater area of land before selling those rights on nearly 24,700 hectares to Tourmaline Oil Corporation as part of a <a href="http://business.financialpost.com/commodities/energy/shell-sells-1-3-billion-of-canadian-oil-and-gas-assets-in-latest-pullback-by-energy-major" rel="noopener">$1.03 billion cash and stock transaction</a>. The subsurface rights that Shell sold were in the Gundy area (generally north of Fort St. John) and included farmland where Shell, like Old Faithful, had a role in constructing two dams that violated key provincial laws.</p>
<p>Documents obtained by the CCPA through FOI requests filed with the OGC indicate that Commission personnel were aware of the two Shell dams that contravened key pieces of provincial legislation.</p>
<h2><strong>&lsquo;Long saga&rsquo; with dams: hydrologist</strong></h2>
<p>In an October 2016 email with the subject line &ldquo;Shell Canada &ndash; Gundy &ndash; dams,&rdquo; the issue of the two dams is addressed by Allan Chapman, the OGC&rsquo;s then chief hydrologist, in a note to numerous FLNRO personnel.</p>
<p>Chapman notes that Shell had recently retroactively applied for water licences for two dams &ldquo;and related stream diversions&rdquo; on a rural property north of Fort St. John. He went on to write in the email that because Shell subsequently sold its leases, it was expected the company would withdraw its water licence applications and leave it to the new lease owner to come into compliance with all relevant provincial laws.</p>
<p>&ldquo;There is a long saga with these dams and stream diversion. Everything was done 3-4 years ago without authorization,&rdquo; Chapman wrote.</p>
<p>FOI documents also reveal that both dams are located on a &ldquo;district lot&rdquo; within <a href="https://www.alc.gov.bc.ca/alc/content/alr-maps/living-in-the-alr/permitted-uses-in-the-alr" rel="noopener">B.C.&rsquo;s Agricultural Land Reserve</a>.</p>
<p>A provincial land title search shows the property &ndash; District Lot 2615 &ndash; is in the Peace River District and owned by Joleen Meservy whose mailing address is listed in La Glace, Alberta. On her Linkedin page Messervy describes herself as an owner and manager of the Bar 4A Cattle Company and as a &ldquo;civil consultant&rdquo; for Meservy Holdings Ltd. The word Shell and the corporation&rsquo;s distinct bright yellow seashell logo outlined in red is prominently displayed beside the Meservy Holdings name.</p>
<p>According to the land title document, Shell holds three registered leases on the Meservy property. The document does not indicate how much Meservy paid to purchase the property, or how much she may have received from Shell in return either as a one-time up-front payment or through annual lease payments, or what arrangements may have been made between the Shell consultant and the company to access the land and take water away.</p>
<p>Meservey could not be reached for comment.</p>
<p>One of the Shell dams is identified in the document as &ldquo;Water Pit #3&rdquo; and was built in the middle of a wetland on the property. B.C.&rsquo;s Ministry of Environment notes that wetland losses have accelerated in many parts of the province, that they are &ldquo;one of the <a href="http://www.env.gov.bc.ca/wld/wetlands.html" rel="noopener">most important life support systems on earth</a>,&rdquo; and that they provide &ldquo;critical habitat&rdquo; for fish, birds and other wildlife, including threatened and endangered species.</p>
<p>There is no information in the documents about whether the two dams were built to an acceptable engineering standard.</p>
<p>In an emailed response to questions, Graham Currie, the OGC&rsquo;s director of public and corporate relations, said the OGC &ldquo;intends to issue and enforce&rdquo; orders at the dams and that the Commission holds Shell responsible for the structures.</p>
<p>Like the dams built on public land, those on private land were all built for one express purpose: to supply water to natural gas companies for use in their hydraulic fracturing or fracking operations.</p>
<p><img src="https://thenarwhal.ca/wp-content/uploads/files/Rystad%20Energy%20Western%20Canadian%20Shale%20Plays.png" alt=""></p>
<p><em>Western Canadian shale plays. Source: <a href="https://www.rystadenergy.com/newsevents/news/press-releases/western-canada-shale-plays-an-overview/" rel="noopener">Rystad Energy</a></em></p>
<h2><strong>Accelerating gas production means more water use </strong></h2>
<p>While prospects appear dim for a much-hyped liquefied natural gas industry in B.C., natural gas drilling and fracking operations are intensifying in the Montney region, thanks to <a href="http://business.financialpost.com/news/one-of-north-americas-top-plays-why-the-montney-is-canadas-answer-to-u-s-shale" rel="noopener">an abundance of naturally occurring liquids or &ldquo;wet gases&rdquo;</a> that flow to the surface following fracking operations. The liquids include pentane, butane and condensates, prized commodities in the Alberta tar sands.</p>
<p>High-volume fracking &mdash; a process where immense volumes of water are pressure-pumped deep underground to create cracks or fractures in gas-bearing rock &mdash; is now essential to coax gas liquids and methane gas to the surface because the best, easiest to access gas resources are long gone.</p>
<p>Methane &mdash; a gas, not a liquid &mdash; was long the mainstay of B.C.&rsquo;s oil and gas industry.</p>
<p>But with gas prices remaining stubbornly low, profits in the Montney now derive almost entirely from naturally occurring &ldquo;wet&rdquo; gases that flow to the surface along with the gas following fracking.</p>
<p>The drive to coax as many wet gases from the ground as possible has triggered a sharp increase in the amount of water used at fracking operations.</p>
<p>Encana, one of the region&rsquo;s largest holders of wet gas deposits, predicts it will double its methane gas production in the Montney by 2019 while at the same time its gas liquids output <a href="http://www.cbc.ca/news/canada/calgary/montney-natural-gas-bc-alberta-drilling-rigs-recovery-formation-rebound-1.4072883" rel="noopener">will soar fivefold to reach 70,000 barrels per day</a>.</p>
<p>That accelerating production means a need for more and more water.</p>
<p>In August 2015, a Progress Energy fracking operation in the Montney Basin consumed <a href="https://thetyee.ca/News/2017/04/18/Mega-Fracking-Quake/" rel="noopener">160,000 cubic metres of water</a> &mdash; the equivalent of 64 Olympic swimming pools &mdash; at just one well, according to award-winning investigative reporter and author Andrew Nikiforuk.</p>
<p>The fracking operation triggered a 4.6 magnitude earthquake, a tremor far more powerful than the two 2.7 magnitude earthquakes that may have contributed to the recent failure of a <a href="https://www.theguardian.com/australia-news/2018/mar/11/dam-wall-collapse-at-newcrest-owned-cadia-goldmine-forces-shutdown" rel="noopener">tailings pond dam at an Australian gold mine</a> in New South Wales.</p>
<p>The water pumped during the Progress Energy fracking operation was eight times more than the amount used in an average fracking procedure in the continental United States.</p>
<img src="https://thenarwhal.ca/wp-content/uploads/files/testalinden%20creek%20mudslide.jpg" alt="">
<em>The Testalinden Creek mudslide in 2010. Photo: <a href="https://www.flickr.com/photos/tranbc/5241642710/in/photolist-xRBHZa-wDNhim-UU2fLK-8Z8JJP-8Z8JW6-8ZbMT3-xeEnRx-xwaqcM-8ZbMQh-xwan1g-xeEoXa-xwL6F4-wzhReV-xvm3XJ-xexK1E-xwakWc-8ZbMLb-8z6mLw-wzazgC" rel="noopener">B.C. Ministry of Transportation</a></em>
<h2>Small dam failure destroyed 5 houses in 2010</h2>
<p>Just as the OGC must now rule retroactively on whether companies that built dozens of dams without permits on Crown lands should be allowed to continue to operate those facilities, it now falls to FLNRO personnel to decide the fate of at least 41 frack-water dams built on private land.</p>
<p>The dams in question are tiny compared to the region&rsquo;s nearby hydroelectric dams or to larger tailings pond dams operated by mining companies, however, the Mattison report is clear that plenty of damage could occur in the event one of the unlicensed fracking dams were to fail.</p>
<p>Some fracking dams dwarf other earthen structures that have given way in other parts of the province causing great damage, Mattison said.</p>
<p>&ldquo;Testalinden Lake was a small reservoir in the Okanagan holding about 55,000 m3 of water, artificially created by a small dam less than 10 m high. In mid June 2010, <a href="https://www.theglobeandmail.com/news/british-columbia/failure-of-nearby-dam-caused-bc-mudslide/article4322182/" rel="noopener">the dam failed</a>. Only about 20,000 m3 of water escaped and ran down a gully for 8 km, by which time it was a debris flow of about 200,000 m3. It destroyed five houses, blocked Highway 97 for five days, covered a four hectare orchard and a vineyard with one and a half metres of mud, and resulted in nine million in damages. Fortunately, there was no loss of life,&rdquo; Mattison noted.</p>
<p>FOI documents reveal that some of the unauthorized fracking dams impound 150,000 cubic metres of water, roughly three times what the Testalinden dam held back.</p>
<p>The potential damage from the failure of even modest dams is one reason why the penalties for building dams without permits can be significant. If charged and convicted for violating the <em>Water Sustainability Act</em> or B.C.&rsquo;s Dam Safety Regulation, fines can run to $200,000 and in the most extreme cases $1 million.</p>
<p>The worst offences can also result in jail terms.</p>
<p>To date, however, neither the OGC nor FLNRO have laid charges against any companies for violating provincial laws by building unlicensed fracking dams. Instead, government has taken the softer approach of coaxing companies to &ldquo;come into compliance&rdquo; after-the-fact.</p>
<p>Time will tell whether or not that approach safeguards the public interest and proves a sufficient deterrent.</p>

<p><em><strong>The Narwhal’s reporters are telling environment stories you won’t read about anywhere else. Stay in the loop by <a href="https://thenarwhal.ca/newsletter/?utm_source=rss">signing up for our free weekly dose of independent journalism</a>.</strong></em></p>]]></content:encoded>
      <dc:creator><![CDATA[Ben Parfitt]]></dc:creator>
			<category domain="post_cat"><![CDATA[Investigation]]></category>			<category domain="post_tag"><![CDATA[Ben Parfitt]]></category><category domain="post_tag"><![CDATA[CCPA]]></category><category domain="post_tag"><![CDATA[frack water]]></category><category domain="post_tag"><![CDATA[fracking]]></category><category domain="post_tag"><![CDATA[illegal dams]]></category><category domain="post_tag"><![CDATA[In-Depth]]></category><category domain="post_tag"><![CDATA[unlicensed dams]]></category><category domain="post_tag"><![CDATA[water]]></category>    </item>
	    <item>
      <title>B.C. Finds Gas Industry Built Numerous Unauthorized Fracking Dams Without Engineering Plans</title>
      <link>https://thenarwhal.ca/b-c-finds-gas-industry-built-numerous-unauthorized-fracking-dams-without-engineering-plans/?utm_source=rss</link>
			<guid isPermaLink="false">http://localhost.com/narwhal/2017/12/18/b-c-finds-gas-industry-built-numerous-unauthorized-fracking-dams-without-engineering-plans/</guid>
			<pubDate>Mon, 18 Dec 2017 17:45:45 +0000</pubDate>			
			<description><![CDATA[Originally published by the Canadian Centre for Policy Alternatives. More than half of nearly 50 dams that fossil fuel companies built in recent years without first obtaining the proper permits had serious structural problems that could have caused many of them to fail. And now, B.C.’s Oil and Gas Commission (OGC), which appeared to be...]]></description>
			<content:encoded><![CDATA[<figure><img width="826" height="620" src="https://thenarwhal.ca/wp-content/uploads/2018/04/Progress-Energy-Unauthorized-Fracking-Dam.jpg" class="attachment-banner size-banner wp-post-image" alt="" decoding="async" srcset="https://thenarwhal.ca/wp-content/uploads/2018/04/Progress-Energy-Unauthorized-Fracking-Dam.jpg 826w, https://thenarwhal.ca/wp-content/uploads/2018/04/Progress-Energy-Unauthorized-Fracking-Dam-760x570.jpg 760w, https://thenarwhal.ca/wp-content/uploads/2018/04/Progress-Energy-Unauthorized-Fracking-Dam-450x338.jpg 450w, https://thenarwhal.ca/wp-content/uploads/2018/04/Progress-Energy-Unauthorized-Fracking-Dam-20x15.jpg 20w" sizes="(max-width: 826px) 100vw, 826px" /><figcaption><small><em></em></small></figcaption></figure><p><em>Originally published by the <a href="http://www.policynote.ca/numerous-unlicensed-dams-found-structurally-unsound-remediation-orders-issued/" rel="noopener">Canadian Centre for Policy Alternatives</a>.</em><p>More than half of <a href="https://thenarwhal.ca/2017/05/03/dam-big-problem-fracking-companies-build-dozens-unauthorized-dams-b-c-s-northeast">nearly 50 dams</a> that fossil fuel companies built in recent years without first obtaining the proper permits had serious structural problems that could have caused many of them to fail.</p><p>And now, B.C.&rsquo;s Oil and Gas Commission (OGC), which appeared to be asleep at the switch in allowing the unlicensed dams to be built in the first place, is frantically trying to figure out what to do about them after the fact.</p><p>Information about the unprecedented, unregulated dam-building spree is contained in a raft of documents that the OGC released in response to Freedom of Information requests filed by the Canadian Centre for Policy Alternatives.</p><p><!--break--></p><p>The documents obtained by the CCPA, along with other materials recently posted on the OGC&rsquo;s website, reveal that 28 of at least 48 unlicensed dams on Crown (meaning public) lands had significant structural flaws or other problems belatedly identified by Commission staff.</p><p>All of the dams were built to trap freshwater used by energy companies drilling and fracking for gas in northeast B.C. In some fracking operations in the region, companies are pressure-pumping the equivalent of 64 Olympic-size swimming pools of water underground to break open gas-bearing rock formations, <a href="https://thetyee.ca/News/2017/04/18/Mega-Fracking-Quake/" rel="noopener">triggering earthquakes in the process</a>.</p><h3>ICYMI:&nbsp;<a href="https://thenarwhal.ca/2017/05/03/dam-big-problem-fracking-companies-build-dozens-unauthorized-dams-b-c-s-northeast">A Dam Big Problem: Fracking Companies Build Dozens of Unauthorized Dams in B.C.&rsquo;s Northeast</a></h3><p>The OGC paved the way for the construction of the dams by granting companies numerous permits under the <em>Land Act </em>to use Crown or public lands to &ldquo;store water.&rdquo;</p><p>But in approving the applications, OGC personnel failed to ask basic, critical questions: How did companies intend to store the water? In tanks? In pits? Behind dams?</p><p>Since the OGC didn&rsquo;t ask, the companies didn&rsquo;t disclose that they planned to build dams &mdash; lots of them.</p><p>Nor did they disclose that in many cases the water sources for their dams would be creeks and other water bodies that the companies were not entitled to draw from because they hadn&rsquo;t applied for, let alone received, water licences.</p><p>Since they hadn&rsquo;t applied for those licences they weren&rsquo;t legally entitled to build the dams.</p><h2><strong>Petronas Proposed&nbsp;to Dig Pit, Built&nbsp;Seven-Storey Dam Instead</strong></h2><p>In one notable case, documents obtained by the Canadian Centre for Policy Alternatives indicate that one of the companies, Progress Energy, also <a href="https://projects.eao.gov.bc.ca/api/document/59ca7f0d0daa2600196ea5d8/fetch" rel="noopener">mischaracterized what it proposed to build</a>.</p><p>In that case, Progress Energy, a subsidiary of the Malaysian state-owned corporation Petronas, filed documents with the OGC indicating where a water storage &ldquo;pit&rdquo; was to be excavated on land just to the west of the Alaska Highway and a short distance south of the Sikani river.</p><p>The document was submitted to the Blueberry River First Nation as part of the company and government&rsquo;s &ldquo;consultation&rdquo; record with the First Nation.</p><p>Instead of an excavated pit or hole in the ground, what was built was an earthen dam 23 metres high, or roughly as tall as a seven-storey apartment building.</p><blockquote>
<p>In approving the applications, BC regulatory personnel failed to ask basic, critical questions: How did companies intend to store the water? In tanks? In pits? Behind dams? <a href="https://t.co/fXMkNnhsfy">https://t.co/fXMkNnhsfy</a></p>
<p>&mdash; DeSmog Canada (@DeSmogCanada) <a href="https://twitter.com/DeSmogCanada/status/942813809919406080?ref_src=twsrc%5Etfw" rel="noopener">December 18, 2017</a></p></blockquote><p></p><h2><strong>Regulator Retroactively Assessing, Approving and Denying Dam Permits</strong></h2><p>Having allowed one unauthorized dam after another to be built, the OGC confronts a daunting regulatory challenge of its own making. In some cases years after the fact, Commission personnel must retroactively approve, deny, or order modifications to dozens of dams that are already built on Crown lands.</p><p>The after-the-fact review process will include ruling on the environmental and health and safety risks posed by dams whose engineering specifications and construction plans were never vetted by any provincial agency before construction. It will also include retroactively reviewing, approving, or denying dozens of pending water licence applications.</p><p>How First Nations will be consulted in all of this remains unclear, as the consultations will also occur well after the fact.</p><h2><strong>Regulator Fieldwork Reveals Serious Problems at Dam Facilities</strong></h2><p>Less than two weeks after the CCPA published its <a href="https://www.policyalternatives.ca/sites/default/files/uploads/publications/BC%20Office/2017/05/ccpa-bc_dam-big-problem_web.pdf" rel="noopener">initial research on the unauthorized dams</a> last spring &mdash; and after numerous media outlets picked up on the story &mdash; OGC personnel stepped up efforts to understand just how structurally unsound some of the dams built on its watch might be.</p><p>That effort included sending personnel by helicopter just two weeks after the story broke to 47 suspected unlicensed dams. These inspections (which took place on May 16 and 17, 2017) occurred shortly after heavy rains had pummelled the region and fossil fuel companies had been warned by the OGC to protect their infrastructure against possible flood damage.</p><h3>ICYMI:&nbsp;<a href="https://thenarwhal.ca/2017/10/17/b-c-regulator-finds-numerous-frack-water-dams-unsafe-risk-failure">B.C. Regulator Finds Numerous Frack Water Dams Unsafe, At Risk of Failure</a></h3><p>The fieldwork uncovered serious problems at seven facilities, or 15 per cent of all dams visited. Among the most significant problems were dams built without spillways to safely divert water away from the dam&rsquo;s reservoirs when they became dangerously full.</p><p>Building a dam without a spillway can cause it to fail. It is the residential construction equivalent of building a house without a door. There&rsquo;s no safe exit point.</p><h2><strong>Progress Energy Dam Danger Spotted By Chance</strong></h2><p>At one Progress Energy dam, the inspectors arrived to find a work crew using four pumps to partially drain a reservoir holding back nearly 50 Olympic swimming pools worth of water.</p><p>The pumped water was racing downhill away from the dam toward a steep bluff beside Blair Creek, about a 40-minute helicopter ride north and west of Charlie Lake. The pumped water was rapidly eroding the bluff. With no properly designed spillway for the dam&rsquo;s water, the company&rsquo;s jerry-rigged pumping operation was in danger of causing the bluff to destabilize and slide into the creek.</p><p>Only by chance did the inspectors arrive in time to spot the &ldquo;erosion and slope stability&rdquo; problem unfolding near the creek, the FOI documents reveal. The inspectors phoned Progress Energy&rsquo;s Calgary offices and told the company to stop pumping the water.</p><p>According to the FOI documents, Progress Energy was responsible for building five of the seven dams that were <a href="https://www.bcogc.ca/node/14429/download" rel="noopener">issued orders following the May inspections</a>. ConocoPhillips Canada Resources, a wholly owned subsidiary of ConocoPhillips, one of the largest oil and gas companies in the world, was responsible for the other two.</p><p>Progress was also identified in the inspection reports as having 14 additional dams with evident problems.</p><h2><strong>Dams Constructed Without Engineering Designs and Plans, Docs Reveal</strong></h2><p>Noted &ldquo;deficiencies&rdquo; at these other 14 dams included no armoured spillways, evident slumping of earthen dam walls, &ldquo;erosion and cracking&rdquo; issues, no water licences having been applied for before the dams were built, and two instances where the dams were so tall that they qualified as &ldquo;major projects&rdquo; under B.C.&rsquo;s <em>Environmental Assessment Act</em>.</p><p>In an undated &ldquo;summary of information&rdquo; written some time after the May 2017 inspections numerous concerns were raised about Progress&rsquo;s dams. The summary was penned by OGC hydrologist Allan Chapman, OGC compliance and enforcement officer Ken McLean, and the OGC&rsquo;s recently-named and first-ever dam safety officer Justin Anderson.</p><p>&ldquo;We are aware that Progress Energy submitted water licence applications for many dams on December 23, 2016,&rdquo; the memo reads. In point of fact, Progress had actually applied for 13 water licences that day &mdash; an exceedingly rare event in and of itself, to say nothing of the fact that each and every application involved water rights at dams that the company had built without obtaining the licences first.</p><p>&ldquo;Chapman is generally aware that the Progress Energy dams were constructed without engineering designs and plans, without clear adherence to and consistency with dam safety requirements, and that some have an array of deficiencies associated with fill and berm instability, and that some (possibly most) lack basic dam construction standards such as spillways or outlets designed for a specified inflow.&rdquo;</p><p>Of the 47 dams inspected in mid May, three turned out to not be dams. Another three were definitely dams and had problems. But in those three cases, the companies had essentially deactivated the dams at some point after unspecified problems arose.</p><p>That brought the number of dams that the inspectors dealt with over the two days of fieldwork down to 41. The 41 dams were all located in the Montney region, which is in the more southern portion of B.C.&rsquo;s vast northeast region.</p><p>Since those May inspections, further fieldwork was done. OGC personnel inspected a number more dams, including four built by Nexen Energy (a wholly owned subsidiary of the Chinese state-owned oil and gas giant CNOOC) in the Fort Nelson area further north from where the May inspections took place.</p><p>As a result of this second round of inspections, the OGC announced <a href="https://www.bcogc.ca/node/14619/download" rel="noopener">on November 14</a>, 2017 that Nexen had been ordered to &ldquo;remove&rdquo; virtually all of the water impounded behind the four dams. These unlicensed dams, according to a short bulletin published on the OGC&rsquo;s webpage, all showed troubling signs of deterioration, including &ldquo;slumping, surface erosion and surface water channel erosion&rdquo; problems.</p><p>Nexen was ordered to drain all &ldquo;live water&rdquo; from behind the problematic dams. Live water refers to the water impounded by a dam that is above ground level and therefore capable of escaping should a dam fail.</p><p>Two other companies were issued orders that day as well. Saguaro Resources Ltd. (a private, Calgary-based gas production company) was ordered to take action at two of its dams, and ConocoPhillips at one.</p><p>Between the May inspections and the subsequent inspections further to the north, it now appears that there are at least 48 unlicensed dams on Crown lands, with an as-yet undisclosed number more built on private property, primarily farmlands.</p><p>Of the 48 Crown land dams, a total of 16 or one third have been hit with retroactive orders. Fourteen of those orders were made by the OGC, following belated inspections of the dams. (The orders include the seven issued in May and the seven issued in November.)</p><h2><strong>Dams Skirted Environmental Assessments Under B.C. Laws</strong></h2><p>B.C.&rsquo;s Environmental Assessment Office (EAO), has issued <a href="https://projects.eao.gov.bc.ca/api/document/59fb5731dc09b60019219a81/fetch" rel="noopener">a further two orders</a>. Those orders, as spelled out in documents first obtained by the CCPA, apply to the two largest dams built by Progress Energy &mdash; the previously mentioned 23-metre-high dam, known as the Lily dam, and another nearby dam known as the Town dam, which is more than 16 metres high.</p><p>Because both dams exceeded 15 metres in height, they qualified as &ldquo;major projects&rdquo; under B.C.&rsquo;s <em>Environmental Assessment Act</em>, and therefore should have undergone provincial environmental assessments before they were built.</p><h3>ICYMI:&nbsp;<a href="https://thenarwhal.ca/2017/11/10/fracking-company-ordered-drain-two-unauthorized-dams-b-c-s-northeast">Fracking Company Ordered to Drain Two Unauthorized Dams in B.C.&rsquo;s Northeast</a></h3><p>Because the company never referred its plans to the Environmental Assessment Office before commencing construction, and because the Oil and Gas Commission failed to stop the company from building the dams, the EAO launched an investigation.</p><p>On October 31, the EAO ordered the company to <a href="http://www.policynote.ca/drain-it-petronas-subsidiary-ordered-to-take-action-at-two-controversial-fracking-dams/" rel="noopener">drain virtually all of the water </a>from behind these two very large dams and to keep water levels at no more than 10 per cent of their holding capacity, adding that the company was &ldquo;not compliant&rdquo; with Section 8.1 of the <em>Environmental Assessment Act</em>.</p><p>In the meantime, the EAO continues to consider an extraordinary application by Progress Energy to retroactively &ldquo;exempt&rdquo; the two dams from having to undergo environmental assessments at all.</p><p>The CCPA <a href="https://projects.eao.gov.bc.ca/p/progress-energy-lily-dam/commentperiod/598b6eb61ecbc9001dfeba55" rel="noopener">and a number of other organizations</a> filed documents with the EAO recommending that the company&rsquo;s request be denied. The EAO is expected to make its decision early in 2018.</p><p>Under the <em>Environmental Assessment Act</em>, companies found to have violated the act can be subject to fines of up to $100,000 for a first offence and subsequent offences can triggers fines of up to $200,000.</p><h2><strong>Unpermitted Dams &lsquo;Disconcerting&rsquo;: Premier Horgan</strong></h2><p>Commenting recently on the proliferation of unlicensed dams during an appearance on the Shaw TV political affairs show, <em>Voice of BC</em>, Premier John Horgan said that &ldquo;the revelation&rdquo; that nearly 50 dams were built on the OGC&rsquo;s watch in violation of existing regulations <a href="https://vimeo.com/244401602" rel="noopener">was &ldquo;disconcerting.&rdquo;</a></p><p>He added that both Environment Minister George Heyman and Energy Minister Michelle Mungall were aware of the issue and were &ldquo;working together to try and find ways to make sure that enforcement and compliance can be done in a way that gives the public confidence.&rdquo;</p><h3>ICYMI:&nbsp;<a href="https://thenarwhal.ca/2017/11/06/coalition-calls-public-inquiry-b-c-fracking" rel="noopener">Coalition Calls for Public Inquiry Into&nbsp;B.C.&nbsp;Fracking</a></h3><p>&ldquo;At the end of the day, our systems fail if the public has no confidence in them,&rdquo; Horgan said. &ldquo;We&rsquo;re going to do what we can to make sure that the existing Oil and Gas Commission regulatory regime is either being enforced, and if it&rsquo;s not, we&rsquo;ll bring in others to do so.&rdquo;</p><p>Horgan&rsquo;s comments also came after numerous non-governmental organizations, environmental groups, physician associations and First Nations called on the provincial government <a href="https://www.policyalternatives.ca/newsroom/news-releases/public-inquiry-needed-properly-investigate-deep-social-and-environmental" rel="noopener">to launch a public inquiry into fracking</a>, including how effectively the OGC regulates its fossil fuel company clients.</p><p><em>Image: The largest unauthorized dam built by Progress Energy. Photo: Ben Parfitt</em></p><p>&nbsp;</p></p>
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      <dc:creator><![CDATA[Ben Parfitt]]></dc:creator>
			<category domain="post_cat"><![CDATA[In-Depth]]></category><category domain="post_cat"><![CDATA[Investigation]]></category>			<category domain="post_tag"><![CDATA[B.C.]]></category><category domain="post_tag"><![CDATA[BC Oil and Gas Commission]]></category><category domain="post_tag"><![CDATA[CCPA]]></category><category domain="post_tag"><![CDATA[dams]]></category><category domain="post_tag"><![CDATA[fracking]]></category><category domain="post_tag"><![CDATA[illegal dams]]></category><category domain="post_tag"><![CDATA[In-Depth]]></category><category domain="post_tag"><![CDATA[Progress Energy]]></category><category domain="post_tag"><![CDATA[unpermitted dams]]></category>    </item>
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