Offshore Oil and Gas Issues Relevant to Georges Bank May 27, 2010 Study Team Steve Fudge Earle Hickey Heather Giddens Tom Windeyer

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1 Offshore Oil and Gas Issues Relevant to Georges Bank May 27, 2010 Study Team Steve Fudge Earle Hickey Heather Giddens Tom Windeyer

3 Context In March 2008, NS Department of Energy provided Offshore Energy Environmental Research Association (OEER) with a grant to conduct research on Georges Bank moratorium In December 2009, OEER contracted Stantec Consulting Ltd. to conduct two studies Preliminary Review of Environmental and Socio-economic Issues on Georges Bank A Preliminary Review of Existing Technologies and their Mitigative Potential in Offshore Petroleum Developments

4 Study Approach and Objectives Reassess the 1999 Review Panel decision factors in light of: new scientific knowledge of the Georges Bank ecosystem changes to the socio-economic environment updates to the regulatory framework new scientific knowledge of environmental and socio-economic effects pertaining to offshore petroleum activities progress in mitigation of potential effects existing and emerging technologies Identify outstanding issues and recommend additional research

5 Key Data Sources 1999 Georges Bank Review Panel Report DFO Science Reports Environmental Assessments (Scotian Shelf and Grand Banks) Environmental Effects Monitoring (EEM) Results Scientific Research relevant to: Georges Bank Environmental and socio-economic effects of offshore petroleum activities

Environmental Context Improved knowledge of ecosystem including documentation of noncommercial fish species Collection of multibeam data Species

6 Environmental Context Improved knowledge of ecosystem including documentation of noncommercial fish species Collection of multibeam data Species at Risk Act (2002) Several SARA species present in Georges Bank; no critical habitat identified Coral Conservation Area (2002) in Northeast Channel

7 Socio-economic Context Fishing industry continues to be largest source of employment/income for Southern NS region Georges Bank accounts for about 23% of total value of landings in Southern NS region Southern NS has highest unemployment rate in the province

Socio-economic Context 12-year Retrospective of Natural Gas

industry employs on average 3,200 Nova Scotians each year

income of approximately $117 million a year (1996-2007)

8 Socio-economic Context 12-year Retrospective of Natural Gas Production in Nova Scotia (Stantec 2010) Offshore petroleum industry employs on average 3,200 Nova Scotians each year through a variety of direct and indirect jobs for a total income of approximately $117 million a year ( ) Offshore natural gas industry generated $1.5 billion in royalties between 1996 to 2008

9 Key Issues Seismic exploration Drill muds and cuttings Produced water Accidental events

10 Seismic Exploration Statement of Canadian Practice with respect to Mitigation of Seismic Sound (SOCP) Monitoring and mitigation program on Scotian Slope (2003) Improvements in noise detection technology Improved understanding of effects on catchability of fish

Drilling Muds and Cuttings Oil-based mud (OBM) replaced by syntheticbased mud (SBM) Offshore Waste Treatment Guidelines (continuously updated) regulate

11 Drilling Muds and Cuttings Oil-based mud (OBM) replaced by syntheticbased mud (SBM) Offshore Waste Treatment Guidelines (continuously updated) regulate concentration of 6.9 % oil on cuttings EEM indicates most effects detected within 500 m from drilling site Effects in near-field (500 m) related to smothering, not toxicity

Produced Water Offshore Waste Treatment Guidelines reduced limit for hydrocarbon in produced water to 30 mg/l (30 day weighted average) Advancements in

12 Produced Water Offshore Waste Treatment Guidelines reduced limit for hydrocarbon in produced water to 30 mg/l (30 day weighted average) Advancements in chemical fate/ transport models Field measurements confirm rapid dilution of plume Limited potential for acute toxicity beyond immediate vicinity of rig

in fate and effect models Recent Horizon Deepwater blowout

13 Accidental Events Declining trend of spills and blowouts worldwide Single-hulled tankers being phased out Improvement in fate and effect models Recent Horizon Deepwater blowout demonstrates risk associated with deepwater drilling Source: API 2009

14 Key Recommendations Refine habitat mapping with multibeam data to identify sensitive habitats and minimize resource conflicts Conduct field survey of marine mammal species on Georges Bank to determine key use areas and/or timing of presence Integrate risk assessment models with physical transport/fate and effects models to calculate potential effects of drill waste and spills on Georges Bank

Scoping Document for the Environmental Assessment. BP Exploration (Canada) Ltd. Tangier 3D Seismic Survey

Scoping Document for the Environmental Assessment BP Exploration (Canada) Ltd. Tangier 3D Seismic Survey Exploration Licenses 2431, 2432, 2433, and 2434 August 2013 Contents 1.0 Purpose... 2 2.0 Regulatory