Water act woes hit BC explorers

KAMLOOPS, B.C. — Exploration companies and prospectors in B.C. will not be impacted this year by new regulations imposed under the Water Sustainability Act (WSA), B.C.’s Minister of Energy & Mines Bill Bennett told The Northern Miner during an interview at the 29th annual Kamloops Exploration Group (KEG) conference in Kamloops, B.C.

The act was brought into full force by B.C.’s Ministry of Environment on Feb. 29, and calls for a water permit amendment to work permits — but the 140-day backlog for approvals wouldn’t leave enough time for explorers to do their work.

After a backlash from the industry, the Ministry of Energy and Mines announced on April 15 that work-permit holders are exempt from the 2016 regulations, provided certain conditions are met.

“It will give us a year to finalize what the new regulatory policy will be,” he said. “So nobody will be delayed on receiving their placer or exploration permit … this year, nobody needs to worry.”

Although Bennett couldn’t comment on what the terms of the WSA may look like, he doesn’t want the legislation — which otherwise has a “noble purpose” — to create unnecessary impediments for the industry.

“We don’t want to add another layer of bureaucracy and time to the industry, but we need to recognize the rare situations in which water is being used where there’s a shortage,” he added.

Before the statute, rules for water management were built into the existing mines act and never came with additional cost.

Under the WSA however, companies need to specify which water sources will be used during work programs, along with an upfront $1,000 application charge and a scaled annual rental fee.
Application charges and fees vary depending on the amount of water being used.

Gavin Dirom, president and CEO of the Association for Mineral Exploration B.C., said during an interview that the WSA creates a “real conundrum” for long-term work permits over broad areas.

He said that given the unpredictable nature of geology, explorers require flexibility on where they can drill and which water sources they can use.

“Part of the discussion we’re having with the ministries is about the flexibility for multi-year exploration permits — they’re the ones built with a sense of magnitude in mind and flexibility over time,” Dirom said. “These scenarios need to be considered, and a lot of our members are providing real-life feedback, so that helps the decision-makers think these things through.”

Both Dirom and Bennett said they were aware of the act, but neither foresaw the unintended consequences it created for exploration.

“The act has been in play for at least three years, and as it worked its way through the system, all of the ministries commented on it,” Bennett said. “Our ministry asked how it would affect placer and exploration, but the response we received was that they don’t want the impact to be any different, they just want to know how much water is used.”

Dirom adds that there are hundreds — if not thousands — of companies across a number of industries in the province that have been impacted by the regulations.

“We’ve joined the dialogue with the ministries and we’re working through some solutions, so we’re hopeful,” he said.