A controversial proposal to pipe water from the Red Deer to a development in the Bow River basin has run into a major stumbling block. On April 3, 2007, Town of Drumheller Council denied Municipal District of Rocky View's request to use Drumheller's water intake structure and works to withdraw water from the Red Deer River that would supply the United Horsemen's new development near Balzac, a few miles north of Calgary. The vote was unanimous. This decision places a significant, if not fatal, obstacle in front of the development already under construction. If Alberta Environment decides to approve the MD of Rocky View's licence application, the development will still be without a full water supply. Only if Rocky View finds another water intake from Red Deer (e.g., near Innisfail), or if it renegotiates with the City of Calgary, will the development be viable.

Alberta Environment had agreed to delay its decision on MD of Rocky View's water licence application until April 30, 2007 to allow time for Town of Drumheller and the MD to discuss the issue. The Town of Drumheller analysed MD of Rocky View's request for six months but could not find direct economic benefit from the request for the Town.

Councillors felt it would be unfair for Drumheller taxpayers to support treating this water supply for Rocky View and withstand the added strain on the water supply system without significant economic benefit. Unlike Acme, Beiseker, Linden, and Carbon, which Drumheller has contracts to supply through Kneehill Regional Water Services Commission's infrastructure, Balzac is apparently out of Drumheller's "trading area" (Sheddy 2007). The Council examined detailed engineering reports, addressed legal and contractual issues, consulted with regional partners, including the Red Deer River Municipal Users Group, and conducted an overall cost-benefit analysis. Any benefits were deemed not to outweigh the potential risk and liability of supplying water beyond the Drumheller's "corporate boundaries" (What's New in Drumheller 2007a).

Current customers of Town of Drumheller include the Town of Drumheller, Kneehill Regional Water Services Commission, Starland Water Authority, the Drumheller Institution, and two local water cooperatives. This supply comprises 5400 m³ per day and uses 44% of the infrastructure's capacity (What's New in Drumheller 2007b). This capacity is intended to meet Town of Drumheller's and contractual obligations for the next 25 years.

Alberta Environment's decision on the water licence application is due out by April 30, 2007. If the licence is approved, would Town of Drumheller's rejection of the proposal eliminate the possibility of using that licence? The application states, "Water would be withdrawn and treated at the Town of Drumheller. Conveyance to the Hamlet of Balzac would be done by utilizing the existing Kneehill Regional Water Commission infrastructure, with an extension from either Acme or Beiseker" (licence application 2006). Does this significant change in the terms of the licence mean that a new application would have to be submitted, or the existing one amended? This matter is under the discretion of the Calgary District Director of Alberta Environment (Poon, pers.com.). Should this licence application somehow be approved, those who submitted a Statement of Concern during one of the two public comment periods last fall would have an opportunity to appeal the decision during a 30-day period (What's New in Drumheller 2007b).

In the meantime, an agreement with Kneehill Regional Water Services Commission will allow the MD to receive 2200 m³ of water from the Drumheller plant (Miller 2007). Kneehill Commission will transfer a portion of its 11 000 m³ water allocation from Drumheller to the MD (Massot 2007). Part of the 11 000 m³ already services Acme, Beiseker, Carbon, Linden, the Town of Irricana, and rural areas in Kneehill County and the MD (Massot 2007). Once an over-60 km pipeline is built, this amount of water will allow the development near Balzac to proceed.

Whether this "transfer" is actually a water allocation transfer is not clear. If it is a transfer under the Water Act, Alberta Environment would have to approve the transfer. But, because the MD is a member of the Commission, it may merely be an amendment to the water allocation licence. The purpose of that licence, however, may or may not be flexible enough to provide water for this type of development.

The transferred amount of 2200 m³, however, will not be enough for this and other development in the area in the longer term. Water supply from other existing intakes on the Red Deer River might be feasible. Apparently informal talks have occurred with a water commission near Innisfail. Mountain View Regional water commission pipes water from the Anthony Henday treatment plant near Innisfail as far south as Crossfield. To reach Balzac, water pipes could be extended by 25 km from Crossfield, according to Mayor of Bowden, Cody Berggren, who is the chair of Mountain View water commission (Miller 2007). Berggren states that the commission is open to accepting new customers and twinning its line if it receives provincial funding (Miller 2007) - this spreads the financial burden to all provincial taxpayers. Presumably the MD would have to begin the water application process again for this option.

Rocky View is also looking at other options - approaching water licence holders along the Bow River to buy portions of their licences. This water would be treated at a Rocky View plant. While this approach is what was intended by the Water Act's introduction of water licence transfers, and it is likely the best watershed approach for this development (i.e., the development would be using water that exists in its own watershed), shifting water diversion from one location to another can have negative effects. A question remains of whether the development could purchase enough water from the Bow without approaching Calgary.

April 3^rd also brought a decision by the MD of Rocky View Council to approve expansion of the East Balzac Project for further development. This will allow four developers to propose development in conjunction with the racing and shopping entertainment centre near Balzac (Massot 2007). Without a sufficient approved water source.

Sources

Kossowan, Brenda. 2007. "Taps turned off". April 5, 2007. Red Deer Advocate.

Leahul, Dan. 2007. "Drumheller raises red flag: Town may refuse to treat Balzac bound water if licence is approved". March 30, 2007. Airdrie City View.

Massot, Enrique. 2007. Kneehill commission approves Balzac water: Decision to bypass Drumheller's refusal. April 13, 2007. Rocky View Weekly.

Miller, Andrea. 2007. Thirsty project looks north. April 13, 2007. Red Deer Advocate.

Sheddy, O.R. 2007. "Council says ‘No' Drumheller tells Rocky View to look elsewhere for treated water". April 3. 2007. The Drumheller Mail.

What's New in Drumheller. 2007a. "Council makes decision on Balzac water supply". April 3, 2007. What's New in Drumheller?

What's New in Drumheller. 2007b. "Balzac water supply project meeting". March 9, 2007. What's New in Drumheller?