The City of Lloydminster has entered into an agreement with Avalon Oil and Gas Ltd. for non-potable effluent water.
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The item was presented to Lloydminster city council at its June 23 regular meeting, where the background of the project was discussed.
“In 2025, the city signed a memorandum of understanding (MOU) with Avalon Oil and Gas Ltd. to explore the feasibility of providing Avalon treated effluent for their project,” said Karen Dela Rosa, the city’s director of environmental services.
The project site is located close to the city’s treated effluent pipeline. Key terms of the agreement include a 10-year term with an opt-out clause for each party, a rate of 15 cents per cubic metre of effluent for the first three years with a rate escalation for subsequent years and a maximum allocated volume of 3,000 cubic metres per day, subject to review beginning in the 10th year.
Coun. Jason Whiting said he was pleased the city was entering into the agreement.
“Kind of exciting, we finally get to take advantage of something we’ve never been able to or wanted to before — that’s the wastewater that comes out of our treatment facility thanks to new technology and a new facility,” Whiting said.
He asked how much the facility is able to produce.
“Right now, our average daily flow is anywhere between 9,000 and 11,000 cubic metres a day,” Dela Rosa said.
Whiting also asked if the plan was to sell more of the water.
“That is one of the main reasons why we selected MBR for the main treatment technology of the wastewater treatment plant — is to be able to provide the city options for either discharging into a stormwater complex or discharging for industry,” Dela Rosa responded.
Administration also clarified how the rates were determined.
“We looked at all of our operating costs and all of our capital costs and at the same time we looked at similar agreements that we have,” she said. “The rate is set low enough that it incentivizes our first customer that’s going to be using this effluent.”
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