Rimbey is closing a $405,000 deal to sell the town’s wastewater to Encana for oilpatch use.
The Calgary-based energy company wants to use 180,000 cubic metres of untreated sewage for natural gas liquids extraction in what is known as the Duvernay resource play in west Central Alberta. Three rigs are operating and a fourth is planned by year end, says the company.
Rimbey Mayor Sheldon Ibbotson said the deal is a good one for the town and would use a little under half of the town’s annual sewage production.
The rest of the wastewater — which is treated but not drinking water quality — is piped to the Red Deer River.
“It’s revenue that we can use for our operations and our capital programs in the future.”
The town is in line for $505,000 from the province’s Municipal Sustainability Initiative fund. Encana’s deal will boost available cash by another 80 per cent and will go into a reserve to fund future infrastructure.
Final Alberta Environment approvals are required before the deal is closed, but that does not look like it’s going to be a problem, he said.
It’s a one-year deal, but there is potential that it will be extended if the wastewater proves effective in Encana’s operations.
Ibbotson said while the deal diverts water that would have gone to the Red Deer River, the original source of the water is from town wells.
If Encana did not use the wastewater, it would need to find it elsewhere.
Encana spokesman Doug McIntyre said the company looks where it can for alternate sources of water outside fresh or surface water.
“As part of our water management strategy, we regularly look for opportunities to use unutilized sources where we can,” he said.
“These type of arrangements really help to reduce our surface water requirements.”
In northeastern B.C., the company has tapped into saline sour water unfit for agricultural use for its operations.
In the Farmington area, also in northeastern B.C., water was drawn from aquifers far below those used for water wells or drinking water.
pcowley@www.reddeeradvocate.com