Scoping Document. for the. Strategic Environmental Assessment. for Exploration Activities. on the Southwestern Scotian Slope

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1 Scoping Document for the Strategic Environmental Assessment for Exploration Activities on the Southwestern Scotian Slope Canada-Nova Scotia Offshore Petroleum Board July 2011

2 Table of Contents 1.0 Introduction Background Geographic Scope Objectives Past Exploration Activity Scope of SEA Spatial and Temporal Boundaries Factors and Issues to be Considered Potential Exploration Activities-Environment Interactions Cumulative-Environment Interactions Environment-Exploration Activities Interactions Conclusions and Recommendations Consultations Page i

3 1.0 Introduction This draft document describes the scope of a strategic environmental assessment (SEA) for offshore petroleum exploration related activities in the marine area on the southwestern Scotian Slope. Specifically, this document focuses on seismic and exploratory drilling. It outlines the factors to be considered in the SEA, the scope of those factors and guidelines for the preparation of the SEA report. The Canada-Nova Scotia Offshore Petroleum Board (CNSOPB) has the responsibility pursuant to the Canada-Nova Scotia Offshore Resources Accord Implementation Act and the Canada-Nova Scotia Offshore Resources Accord Implementation Act (Nova Scotia) (the Accord Acts) to ensure that offshore oil and gas activities proceed in an environmentally responsible manner. The CNSOPB conducts SEAs in those areas offshore Nova Scotia that may have the potential for offshore petroleum exploration activity but that were not subject to a recent SEA nor to recent and substantial projectspecific environmental assessments, such as a Comprehensive Study or Panel Review. In addition, the CNSOPB commits to reviewing the SEA within five years of its completion to determine if updates are required. This document has been prepared by the CNSOPB, with advice from Environment Canada and Fisheries and Oceans Canada, to obtain stakeholder comment and advice to assist the CNSOPB in preparing the final Scope of the SEA. 2.0 Background SEA incorporates a broad-based approach to environmental assessment that proactively examines the environmental effects which may be associated with a plan, program or policy proposal and that allows for the incorporation of environmental considerations at the earliest stages of program planning. SEA typically involves a broader-scale (i.e., regional, sectoral) environmental assessment (EA) that considers the larger ecological setting, rather than a project-specific EA that focuses on sitespecific issues with defined boundaries. Additional information regarding SEA may be found on the Canadian Environmental Assessment (CEA) Agency web site at: In this particular case, information from the SEA will assist the Board in its determination in respect to the potential issuance of future exploration rights within the southwestern 1

4 Scotian Slope SEA area and may identify general restrictive or mitigative measures that should be considered for application to consequent exploration activities. Activities associated with exploration licences may include: conduct of seismic surveys, other geophysical surveys, geotechnical surveys; drilling of wells (either exploration or delineation); and well abandonment. Each of these activities requires the specific approval of the Board, including a projectspecific assessment of its associated environmental effects in accordance with the Canadian Environmental Assessment Act (CEA) Act. The SEA does not replace this requirement for a project-specific EA. However, the SEA assists in streamlining and focussing these EAs by providing an overview of the existing environment, discussing in broader terms the potential environmental effects associated with offshore oil and gas exploration activities in a large area or region, identifying knowledge and data gaps, highlighting issues of concern, and making recommendations for mitigation and planning. 3.0 Geographic Scope The CNSOPB has jurisdiction over the offshore area of Nova Scotia. The southwestern Scotian Slope SEA Study Area encompasses the parcels (refer to Figure 1), in the CNSOPB s Call for Bids NS11-1, which was announced on June 30, The minimum water depth in the SEA Study Area is 1000 m. However, as per guidance from the CEA Agency 1, the spatial domain of the SEA will extend beyond the boundaries of the parcels of land in the Call for Bids to include potential project interactions with the Valued Ecosystem Components (i.e., within zones of influence of certain project discharges/emissions). 1 Operational Policy Statement (OPS) entitled The Process for Defining the Spatial Boundary of a Study Area During an Environmental Assessment of Offshore Exploratory Drilling Projects (CEA Agency 2003) 2

5 Figure 1: NS11-1 Call for Bids Location Map 4.0 Objectives For the southwestern Scotian Slope, the SEA will: Provide an overview of the existing environment Generally describe typical offshore oil and gas exploration activities Describe and evaluate potential environmental effects associated with offshore oil and gas exploration Identify knowledge and data gaps 3

6 Identify species-at-risk and environmentally sensitive areas that may interact with project activities Highlight issues that may be of concern Make recommendations for general mitigative measures that should be employed during offshore petroleum exploration activities Identify, where appropriate, activities/areas requiring enhanced levels of mitigation; identify, if feasible, the level of enhanced mitigation required Identify follow-up measures (i.e., environmental effects monitoring), as appropriate, that may be required to verify environmental assessment predictions related to future offshore petroleum exploration activities. Assist the Board in its determination in respect to the potential issuance of future exploration rights within the southwestern Scotian Slope SEA area. 5.0 Past Exploration Activity Past exploration activity in the southwestern Scotian Shelf and Slope areas consisted of the collection of approximately 120,000 line km of 2D and 12,500 km 2 of 3D seismic data from 1969 to The most recent seismic program undertaken in the area was in 2003, whereby approximately 15,000 km of seismic data was acquired. Few wells have been drilled in the Study Area. Exploration drilling within the study commenced in 1982, with Shell s Shubenacadie H-100; which was Nova Scotia s first deepwater well. This activity was followed by Petro-Canada Texaco s Albatross B-13 well in 1984; and the Shelburne G-29 well was drilled in 1985 by Petro-Canada et al. Also, EnCana drilled the Torbrook C-15 well in 2002, 7.3 km north of the Study Area. This area has had around 20 exploration licences issued in the past (near or over the SEA Study Area). There is currently 1 Exploration Licence (EL 2420) within the southwestern Scotian Slope area. Both oil and gas have been discovered on the Scotian Shelf and Slope areas. There is no direct evidence to say for certain whether the Study Area is a gas or oil prone region because so little exploration has taken place there. The Province of Nova Scotia has completed a geological study of the Nova Scotia offshore (OETR Association s Play 4

7 Fairway Analysis) that indicates this region of the Nova Scotia offshore may have significant oil potential. 6.0 Scope of SEA This SEA will describe all foreseeable offshore oil and gas exploration activities in the Study Area. It will examine potential environmental interactions associated with these petroleum exploration activities. Exploration activities to be considered in the SEA include exploratory and delineation drilling, seismic survey activities (2D, 3D, vertical seismic profiling, geohazard surveys), geotechnical surveys, and wellsite abandonment. The focus of the SEA will be on offshore exploration activities (and interactions with the environment of those activities) which are under the jurisdiction of the C-NSOPB. The SEA will describe where data and information are lacking, or limited. Suggestions for strategies to address data gaps will be identified. 6.1 Spatial and Temporal Boundaries The spatial boundary for petroleum related activities to be considered in the SEA is shown in Figure 1. The boundaries for the Study Area were chosen based the June 30, 2011 Call for Bids NS11-1. The SEA will include the offshore petroleum exploration activities, as described in the preceding section, which may occur within the SEA Study Area in the foreseeable future (i.e., next ten years). The SEA will be reviewed in at least five years to determine whether an update is required. 6.2 Factors and Issues to be Considered The focus of the SEA will be a Valued Ecosystem Component (VEC) approach. Each VEC (including components or subsets thereof) will be identified and the rationale for its selection provided. VECs should include 2 : Species-at-Risk, Special Environmental 2 The selection of Species-at-Risk and Special Areas as VEC categories is proposed since species-atrisk and special areas are good indicators of ecosystem health. They are by definition more environmentally sensitive, requiring a higher level of consideration (and protection) in an environmental assessment than other ecosystem components that are secure. Further, mitigation measures proposed in an environmental assessment to protect species listed under SARA and specially-designated environmental areas should also reduce the risk of adverse environmental effects on secure components 5

8 Areas, Commercial Fish and Fisheries and Other Ocean Uses of importance in the vicinity of the Study Area since these categories appear to cover most key resources and activities potentially affected by offshore hydrocarbon exploration activities. Species-at-Risk Species designated as at-risk under the Species-at-Risk Act (SARA) and determined to be potentially affected during exploration activities (includes critical habitat or residences of individuals of that species) in the SEA Study Area will be considered. Special Environmental Areas Designated areas of special interest due to their ecological and/or conservation sensitivities (i.e., e.g., marine protected areas, coral conservation zones, fish conservation areas, etc.) that could be potentially affected by exploration activities in the SEA Study Area. The scope of the assessment is to also include the inhabitants of the special area which may not be covered under the Species-at-Risk VEC category. Commercial Fish and Fisheries Commercial fish and fisheries (e.g., offshore fisheries for large pelagic (e.g., swordfish, tunas, etc.) and crustacean (e.g., lobster, red crab) species, etc.) that could be affected by exploration activities in the SEA Study Area will be considered. The focus of the assessment of the VEC is to be on potential disruptions to commercial fishing activities through environmental effects on fisheries resources, displacement from current or traditional fishing areas, or gear loss or damage resulting in a demonstrated financial loss to commercial fishing interests 3. of the ecosystem. As stated in description of Special Environmental Areas VEC description, the scope of the assessment will also include the inhabitants of the special area which may not be covered under the Species-at-Risk VEC category. 3 Including aboriginal fisheries interests (if any) 6

9 Other Ocean Uses (As applicable) Other ocean uses that could be affected by exploration activities in the SEA Study Area (i.e., marine shipping, military use, research surveys, and other petroleum development activities, etc.) will also be considered. The SEA will include the following: Historical overview of offshore petroleum exploration activity in Study Area and a discussion of regional offshore oil and gas activities in the Nova Scotia offshore area Overview of typical offshore petroleum exploration activities (well site surveys, vertical seismic profiling, 2D/3D seismic, geotechnical programs, exploration drilling (including onshore to offshore drilling),well abandonment) and methods to carry out these activities (including a brief description of various types of rigs and vessels) Overview of the physical and biological environments in the SEA Study Area based on existing information and data. Data gaps will be highlighted. Overview of other marine activities in the SEA Study Area (e.g. commercial and recreational fisheries, marine transportation) Potential environmental interactions of the VECs with petroleum exploration activities will be identified and qualitatively assessed Identification of general mitigative measures and monitoring measures that might be considered for offshore activities including residual effects (if any) identified for petroleum exploration activities that have previously been undertaken in the southwestern Scotian Slope area, or in similar environments. Specific or nontypical mitigations that may be required to address specific concerns will be highlighted especially those proposed for any sensitive areas identified within or near the SEA Study Area. Identification of areas requiring enhanced, or non-typical mitigation measures 7

10 General discussion of effects and mitigation of potential accidental events, as well as malfunctions associated with offshore oil and gas exploration activity General discussion of potential cumulative effects associated with multiple offshore oil and gas activities in the SEA area based on an estimate of potential exploration activity For each factor identified below, discuss potential planning implications/considerations (i.e., need for additional data, special mitigations) which may have to be considered in site-specific EAs within the SEA Study Area. The SEA will consider the following environmental factors and issues, as a minimum, with emphasis upon factors unique to the southwestern Scotian Slope SEA area. Sufficient supporting information will be provided, or referenced and summarized if it already exists in publicly available publications. Substantive uncertainties or information gaps will be identified Potential Exploration Activities-Environment Interactions For each of the identified VECs, a description of the interactions of petroleum exploration activity with the environment will be presented. Proposed activities include: Seismic surveying Seabed surveying (i.e., geophysical, geotechnical data collection) Exploratory/delineation drilling (e.g., mobile offshore drilling unit (semisubmersible or drill ship), and ancillary activities Vessel traffic (e.g., supply vessels, seismic vessels, helicopters) Well abandonment operations. Potential project interactions include, but are not limited to the following: 8

11 Underwater noise (e.g., during seismic surveying, seabed surveying, drilling) issues (e.g., hearing loss, behavioural effects, etc.) on marine mammals, sea turtles, and fish species-at-risk and disruptions to commercial fishing activities. Effects (e.g., smothering, toxicity) of operational discharges (i.e., drill wastes) on species-at-risk particularly bottom-dwelling fish and shellfish species Disruption (i.e., spatial conflicts/interference, reduction in resource availability) of commercial fisheries and other ocean uses during routine operations (i.e., seismic surveying, seabed surveying, drilling) and/or accidental events (e.g., large oil spill, blow-out) Conflicts (i.e., spatial, interaction with unexploded ordinances) with other ocean uses such as marine shipping, military activities, etc. Attraction (due to lights and/or flares) of seabirds to platform structures or support vessels Effects of accidental events (e.g., large oil spill) on species-at-risk and/or environmentally sensitive areas Cumulative-Environment Interactions Cumulative effects will be examined in consideration of the estimate of potential exploration activity in the SEA area and mitigation measures identified. Planned and reasonably foreseeable exploration activities will be included in the cumulative effects assessment and it will also consider other non-petroleum activities ongoing in the Study Area (and adjacent southwestern Scotian Shelf and Slope areas) such as commercial fishing, marine traffic, and fisheries research surveys Environment-Exploration Activities Interactions For exploration activities identified, the SEA will include a discussion of the effects of the environment in particular risk of extreme events such as earthquakes, tsunamis, significant storm (severe winds, waves) events on project activities within the southwestern Scotian Slope SEA Study Area. 9

12 7.0 Conclusions and Recommendations Based on the information presented in the physical and biological environment overview, the description of potential exploration activites/environment interactions and the application of mitigation measures, conclusions will be presented and planning approaches recommended for the Board to consider in the issuance of exploration licences in the southwestern Scotian Slope SEA Study Area. Data gaps with potential to affect the validity of these conclusions will be highlighted. Sensitive issues particularly those of public concern identified during the SEA process will also be highlighted. 8.0 Consultations Throughout the development of the SEA, the C-NSOPB and its contractor will consult with federal government departments, the fishing industry and other ocean users, and local non-governmental organizations. Information on the SEA process will be provided and people will be encouraged to discuss issues and concerns that are relevant to the southwestern Scotian Slope SEA Study Area and SEA objectives. There will be a public comment period for the final draft SEA. 10

13 Appendix A: Components and Activities Outside of the Scope I) Air quality Emission sources from the proposed project are seismic and other survey/support vessels and drilling rigs. It is anticipated that emissions from routine exploration-related operational activities will not cause an exceedence(s) of applicable air quality standards or guidelines. Since there are limited emissions sources and few receptors (if any) in the SEA Study Area, assessment of potential effects on air quality can be excluded from the EA provided that future licences holders/operators adhere to: MARPOL Annex VI, Regulations for the Prevention of Air Pollution from Ships; and Air Emissions provisions of the Offshore Waste Treatment Guidelines, including submissions of greenhouse gas emissions. However, malfunctions and accidental events (i.e., blow-out) may have an effect on air quality. An assessment of the potential effects of air quality as a result of a blow-out on VECs proposed in Section 6.2 (i.e., Species-at-risk, Special environmental areas, Commercial Fish and Fisheries, and other Ocean Uses ) rather than Air Quality per se, is the appropriate focus for this assessment. Assessment of the effects of malfunctions and/or accidental events is required as is stated in Section 6.2. II) Water Quality Assessment of the potential effects of discharges from platforms/vessels on water quality during routine exploration activities can be excluded from the EA provided that future leaseholders/operators operators adhere to: Nova Scotia Offshore Area Petroleum Geophysical Regulations; Offshore Waste Treatment Guidelines; and Fisheries Act (Section 36). However, malfunctions and accidental events (ie., oil spills) may have an effect on water quality. An assessment of the potential effects on water quality as a result of oil spills on VECs proposed in Section 6.2 (i.e., Species-at-risk, Special environmental areas, Commercial Fish and Fisheries, and other Ocean Uses ) rather than Water Quality 11

14 per se, is the appropriate focus for this assessment. Assessment of the effects of malfunctions and/or accidental events is required as is stated in Section 6.2. III) Fish There is no scientific evidence to date to suggest that seismic has adverse effects at the population level on secure (i.e., not at-risk) fish stocks therefore significant adverse environmental effects are not expected to result from this project. The project area does not include fish spawning grounds. The potential effect on fisheries resources and commercial fishing activities is required as stated in Section 6.2. Assessment of the potential effects on fish can be excluded from the EA provided that future licences holders/operators adhere to: Statement of Canadian Practice with Respect to the Mitigation of Seismic Noise in the Marine Environment. IV) Marine Benthos The effects of exploration activities, in particular burial or toxic effects of discharges of drilling mud and rock cuttings on corals and commercially-important seabed fauna such as lobster and red crab that may occur within the SEA Study Area, will be assessed within the Commercial Fish and Fisheries VEC as stated in Section 6.2. No further assessment of marine benthos is required at this time. V) Marine Mammals and Sea Turtles As stated in Section 6.2, the potential for effects on marine mammal and/or turtle species-at-risk that may occur within SEA Study Area, as well as those species that may occur within nearby designated environmentally sensitive areas will be assessed under the Species-at-Risk and Special Environmental Areas respectively. Provided that appropriate mitigation is applied for at-risk species, it is not anticipated that exploration activities will have an adverse effect at the population level for secure populations of marine mammals or sea turtles. No further assessment beyond that stated in Section 6.2 will be required provided that: 12

15 the proponent adheres to mitigation measures outlined in the Statement of Canadian Practice with Respect to the Mitigation of Seismic Noise in the Marine Environment for marine mammals and sea turtles. As stated in section 6.2, the proponent should note that additional mitigation may be required should new species-at-risk be added to the assessment. VI) Seabirds It is recognized that the attraction of any avian species to lights on platforms/vessels or to flares during drilling operations/well testing, may cause injury or death from collisions or may disrupt migrations. An assessment of the potential adverse environmental effects on avian species-at-risk will be carried out under the Species-at-Risk VEC, as outlined in Section 6.2. Population level effects on seabirds (or migratory land-based birds) are not anticipated, however. As stated in section 6.21, the proponent should note that additional mitigation may be required should new avian species-at-risk be added to the assessment. No further assessment of effects on seabirds shall be required, provided that: the SEA consider the potential impacts of vessel lights/flares on avian species-atrisk and identify any necessary mitigation measures (i.e. implementation of the Williams and Chardine handling protocol brochure entitled The Leach s Storm Petrel: General Information and Handling Instructions should birds land on vessels involved with the project). A permit is required from the Canadian Wildlife Service of Environment Canada to implement this protocol. 13