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

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