Minutes of Meeting of Biodiversity Group of Environmental Council under Supervision of Governor for Sakhalin Oblast Yuzhno-Sakhalinsk No 16 March 04,

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9 Minutes of Meeting of Biodiversity Group of Environmental Council under Supervision of Governor for Sakhalin Oblast Yuzhno-Sakhalinsk No 16 March 04, 2015 Chairperson: E.D.Nevenchina, Secretary of the Environmental Council under Supervision of the Governor for the Sakhalin Oblast, Head of the Environmental Department of the Ministry of Natural Resources and Environmental Protection for the Sakhalin Oblast. Attendees (Biodiversity Group members in bold type): Ministry of Natural Resources and Environmental Protection for the Sakhalin Oblast 1. N.N.Tarabarova Deputy Minister 2. E.D.Nevenchina Head of the Environmental Protection Department, Chairperson of Biodiversity Group, Secretary of the Environmental Council under Supervision of the Governor for the Sakhalin Oblast 3. N.V.Starodubtseva Lead Advisor of the Environmental Protection Department 4. M.P.Lariononva Lead Advisor of the Environmental Protection Department UNDP / GEF / RF MNR project 5. N.K. Zavarzina- Sakhalin Oblast Representative of the UNDP / GEF / RF MNR project The Objectives of Biodiversity Protection in the Policy and Development Programs of the Power Supply Sector of Russia International Union for Conservation of Nature (IUCN) 6. G.Carbone Deputy Director for Global Business & Biodiversity Program 7. A.Berzina Gray Whale Project Manager International Whaling Commission (IWC) 8. G.Donovan Head of Science, Chairperson of Seismic Survey and Noise Task Force of the IUCN s Western Grey Whale Advisory Panel (WGWAP) Ministry of Forestry and Hunting for the Sakhalin Oblast 9. E.G.Chernyavskaya Advisor of the Department for Protection of Wildlife and Specially Protected Natural Areas, BG member Department of the Federal Service for the Supervision of Natural Resources (Rosprirodnadzor) for the Sakhalin Oblast 10. L.V.Kirillova Head of the Department for Supervison over Water and Land Resources, Control and Supervision in the Area of Hunting and Specially Protected Natural Areas, BG Member Department of the Federal Service for the Supervision of Natural Resources (Rosprirodnadzor) for the Far Eastern Federal District

10 11. A.V.Mikhailov Deputy Head of Department for Supervision on the Sea for Sakhalin Oblast Sakhalin Oblast Fishery Agency 12. D.V.Baginsky - Lead Advisor of the Department for Water Biological Resources and Fleet, BG Member SakhNIRO Federal State Unitary Enterprise 13. A.A.Zhivoglyadov Deputy Head of Forecasting Department, Cand.Biol. Sc., BG member Institute of Marine Geology and Geophysics of the Far Eastern Branch of the Russian Academy of Science 14. R.N.Sabirov Senior Scientist of the Laboratory of Island Environmental Issues, BG member 15. P. S. Ktitorov Head of the Laboratory of Island Environmental Issues, Cand. Biol. Sc., Member of Environmental Council under Supervision of the Governor for Sakhalin Oblast Sakhalin Botanical Garden of the Far Eastern Branch of the Russian Academy of Science 16. S.I.Chabanenko - Deputy Director for Scentific Work of the Sakhalin Botanical Garden, Cand. Sc.Biol., BG Member Sakhalin State University 17. V.N.Efanov Deputy Director for Science of the Institute of Natural Science and Technospheric Safety, Head of the Chair for Ecology and use of Natural Resources, Doctor Biol. Sc., Professor, Deputy BG Chairperson World Wildlife Fund (WWF) 18. A.Y.Knizhnikov Coordinator of environmental programs of the oil and gas sector, BG member Sakhalion Oblast NGO Sakhalin Environment Watch 19. D.V.Lisitsyn - Chairperson, BG member, member of the Environmental Council under Supervision of the Governor for the Sakhalin Oblast 20. S.S.Makeev ichthyologist, Coordinator of the Aniva Basin Council Exxon Mobile Development, Houston, USA 21. D.Egging Sakhalin 1 Project Manager for Legal Regulation, Environmental and Industrial Safety 22. M.Scott Environmental Advisor 23. B.Doun Project Manager for Seismic Surveys Exxon Neftegaz Limited 24. N.V. Pecheneva -Environmental Specialist, Cand. Biol.Sc., BG Member

11 25. V.А. Kripa -Community and Government Relations Officer 26. M.Swindoll Manager for Marine Mammal Protection Program 27. V.Efremov - Coordinator of Marine Mammal Protection Program 28. N.Dramond HSE Manager 29. E.N.Kalinin Senior Specialist for Marine Mammal Protection 30. E.Mikolaevskaya Legal Regulation Manager 31. E.I.Gauptman Legal Regulation Manager 32. L.Bob Project Manager for Seismic Surveys 33. M.Gubanov - Interpreter 34. A.Samoplyasova - Interpreter 35. M.Scheglov- Interpreter Sakhalin Energy Investment Company Ltd 36. А.D.Samatov - Corporate Environment Manager, Cand. Biol. Sc., member of the Environmental Council under Supervision of the Governor for the Sakhalin Oblast 37. N.A.Tsarenko Biodiversity Manager, Cand. Biol. Sc., BG secretary 38. A.A.Arkhipova Environmental Engineer 39. R.E.Sidorenko Environmental Engineer 40. A.Davydova- Junior Environmental Engineer 41. E.A.Kunitsyna Interpreter OAO Gazprom Representative Office in the Sakhalin Oblast 42. T.Y.Orlova Lead Government Liaison Specialist OOO Gazprom dobycha shelf Yuzhno-Sakhalinsk 43. L.A.Kivisild HSE Manager, BG member OOO Gazprom Transgaz Tomsk, Sakhalin Branch 44. S.V.Sheshukov First deputy Director, Chief Engineer OOO RN-Sakhalinmorneftegaz 45. M.K.Koyama - Environmental Manager of the HSE Department OOO Gazprom Geologorazvedka 46. A.A.Naumenko HSE manager of the Department for Shelf Exploration Works 47. O.S.Pe Lead Environmental Specialist OOO Gazflot, Far Eastern Branch 14 of total 17 members of the Biodiversity Group take part in the meeting. The Biodiversity Group of the Environmental Council under Supervision of the Governor for the Sakhalin Oblast is authorized to decide on the agenda issues. Agenda: 1. Joint Activities to be Taken by Exxon Neftegaz Limited, Sakhalin Energy Investment Company Ltd, OAO Gazprom, OAO NK Rosneft as Part of

12 Carrying out Seismic Surveys in the WGW Population Feeding Grounds on the North-Eastern Shelf of Sakhalin in 2015 with Assessment of Cumulative Impact of the Seismic Surveys on Marine Mammals: 1.1. Western Grey Whales Population. General Data (presentation by A.D.Samatov) 1.2. Western Gray Whale Impact Mitigation Measures to be taken by Exxon Neftegaz Limited as part of Seismic Surveys to be carried out in (presentation by D.Egging) 1.3. Western Gray Whale Impact Mitigation Measures to be taken by Sakhalin Energy as part of Seismic Surveys to be carried out in 2015 (presentation by A.D.Samatov) 1.4. On Completion of Works by OOO Gazprom Geologorazvedka on the Sakhalin shelf in 2015 (presentation by А.А.Науменко) 2. The Final Revision of the Concept of the Biodiversity Action Plan for the Sakhalin Oblast (presentation by P.S.Ktitorov) 3. Miscellaneous: 3.1. Discussion of BG work schedule (presentation by E.D.Nevenchina) 3.2. The agenda of a BG meeting to take place in May 2015 (E.D.Nevenchina, N.A.Tsarenko) A comment on the agenda: - D.V.Lisitsyn proposed that an item should be added to the agenda on discussion of port terminal construction by Exxon Neftegaz Limited in Piltun Bay with regard to growing impact on Grey Whales and seals. Agreed on the comment on the agenda: To decline the additional item of the agenda and to consider an opportunity of adding it to the agenda of one of the next meetings. I. Presentations were made on item 1: Joint Activities to be Taken by Exxon Neftegaz Limited, Sakhalin Energy Investment Company Ltd, OAO Gazprom, OAO NK Rosneft as Part of Carrying out Seismic Surveys in the WGW Population Feeding Grounds on the North-Eastern Shelf of Sakhalin in 2015 with Assessment of Cumulative Impact of the Seismic Surveys on Marine Mammals: - a presentation by A.D.Samatov, Cand.Biol. Sc., Corporate Environment Manager, Sakhalin Energy, a member of the Environmental Council under Supervision of the Governor for the Sakhalin Oblast (appendix 1); - a presentation by D.Egging, Sakhalin 1 Project manager for legal regulation, environmental and industrial safety, Exxon Mobile Development, Houston, (appendix 2); - presentation by A.D.Samatov, Cand.Biol. Sc., Corporate Environment Manager, Sakhalin Energy (appendix 3) - presentation by A.A.Naumenko, HSE manager of the Department for Shelf Exploration Works, OOO Gazprom Geologorazvedka, (appendix 4) Discussion was held involving N.N.Tarabarova, E.D.Nevenchina, D.V.Lisitsyn, A.Y.Knizhnikov, D.V.Baginsky, E.Mikolaevskaya, A.D.Samatov, D.Egging, E.N.Kalinin, A.A.Zhivoglyadov, V.N.Yefanov, G.Donovan, G.Carbone, P.S.Ktitorov.

13 . Agreed on item 1: 1. To consider the information presented. 2. To consider an increase in the number of the Western Grey Whale population during the recent 20 years which alongside with the other monitoring results means that it has not been impacted by the economic activities on the shelf on Sakhalin. 3. To recommend for oil and gas production companies as follows: а) to develop a joint practically acceptable action plan (sequence schedule) for the period of seismic surveys in order to mitigate acoustic impact on the feeding and breeding grounds of the Western Grey Whale population; б) to coordinate the process of seismic surveys in order to assess the cumulative effect on the environment and to implement mitigation measures in due time; в) to agree on the schedule and the sequence of seismic surveys to be carried out by the companies in areas adjacent to Western Gray Whale feeding grounds and to state them in an additional agreement which to provide mitigation of acoustic impact on the population; г) to develop and to submit Plans for Marine Mammals Protection during Seismic Surveys for approval by the Inter-Agency Working Group on Protection of Western Grey Whales Population of the Ministry of Natural Resources of Russia in April this year; 4. To consider the following factors under development of the Plans for Marine Mammals Protection during Seismic Surveys: - to establish a safety buffer zone for marine mammals and to ensure strict compliance with it during the surveys; - to involve independent observers including IUCN representatives to work on offshore vessels and onshore in order to assess implementation of commitments made; - to provide an early start of the works and the completion of the works before the peak numbers of western grey whales arrive at their main feeding grounds; - to carry out acoustic monitoring in real time regime; - To suspend seismic surveys on segments of lines where such work exceeds the noise threshold of 156 db SEL per impulse (163 db against 1mkPa SPLrms of sound pressure according to the root-mean-square deviation value) for mother- calf Gray Whale pairs discovered in the zone between the coast and the established Perimeter Monitoring Line and during work completion after July 1st. 5. To recommend for the oil and gas companies to submit a summary report upon completion of seismic surveys 2015 during the next BG meeting. An opinion expressed by A.Knizhnikov: I insist that Exxon Neftegaz Limited should apply for state environmental expert review particularly for seismic surveys to be carried out in

14 2015 as the company will carry out the seismic surveys as a contract scope of work for OAO NK Rosneft and the work sequence is to be coordinated with the seismic surveys by Sakhalin Energy and that part of work was definitely not covered by the state environmental expert review dated II. Presentations were made on item 2 The Final Revision of the Concept of the Biodiversity Action Plan for the Sakhalin Oblast: - presentation by P.S.Ktitorov, Cand.Biol. Sc., Head of the Laboratory of Island Environmental Issues, Institute of Marine Geology and Geophysics of the Far Eastern Branch of the Russian Academy of Science (appendix 5); Discussion was held involving: D.V.Baginsky, E.G.Chernyavskaya, A.Zhivoglyadov, V.N.Efanov, A.Y.Knizhnikov, A.D.Samatov, E.D.Nevenchina, R.N.Sabirov, N.K.Zavarzina. Agreed on item 2: 1. To approve the final revision of the Concept of the Biodiversity Action Plan for the Sakhalin Oblast considering the recommendations made 2. To submit the Concept of the Biodiversity Action Plan for the Sakhalin Oblast during the meeting of the Environmental Council under Supervision of the Governor for the Sakhalin Oblast on March 18, To appoint the originator of the Concept the Institute for Marine Geology and Geophysics of the Far Eastern Branch of the Russian Academy of Science (P.Ktitorov) and the Sakhalin Oblast project coordinator (N.Zavarzina) to make presentations on the subject. 3. To support the proposal on development of a Biodiversity Strategy and Action Plan for the Sakhalin Oblast in made on behalf of UN/GEF-MNR Project The Objectives of Biodiversity Protection in Politics and Development Programs of the Oil and Gas Sector of Russia. III. Discussed under item Miscellaneous: 3.1. Discussion of the BG Work Schedule (presentation by E.D.Nevenchina, N.A.Tsarenko; appendix 6) 3.2. The BG meeting agenda in May 2015 (presentation by E.D.Nevenchina, N.A.Tsarenko; appendix 7) Discussion was held involving: E.D.Nevenchina, D.V.Lisitsyn, A.D.Samatov, N.K.Zavarzina. Agreed on item Miscellaneous: 1. To send the updated BG Work Schedule to the BG members for agreement. To submit the updated Work Schedule with consideration of comments and recommendations of the BG members for approval of the Environmental Council under Supervision of the Governor for the Sakhalin Oblast

15 2. To schedule the next BG meeting for the second half of May and to arrange presentations as follows: Assessment of readiness of the oil and gas companies (Sakhalin Energy, Exxon Neftegaz Limited, OOO Rosneft, OOO Gazprom) to oiled wildlife response. The status of development of regional standards for residual content of oil and products of its transformation in soils. As an additional issue to review (upon proposal by D.V.Lisitsyn and agreement with Exxon Neftegaz Limited) Impact of the Exxon Neftegaz Limited project on construction of a port terminal in Piltun Bay on the unique seal rookery. Closing speeches were made by: - N.Tarabarova Deputy Minister; - E.D.Nevenchina, Chairperson of Biodiversity Group, Secretary of the Environmental Council under Supervision of the Governor for the Sakhalin Oblast Head of the Environmental Protection Department of the Ministry of Natural resources and Environmental Protection of the Sakhalin Oblast. Closure of the meeting: E.D.Nevenchina thanked the participants of the meeting for their fruitful cooperation. Biodiversity Group Chairperson E.Nevenchina Biodiversity Group Secretary N.Tsarenko