NEB s Arctic Offshore Drilling Review: Research and risk assessment in the context of safety and environmental regulation

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1 NEB s Arctic Offshore Drilling Review: Research and risk assessment in the context of safety and environmental regulation Robert Steedman National Energy Board, Calgary, Alberta, Canada Northern Oil & Gas Research Forum Calgary, Alberta, 30 Nov. 2 Dec. 2010

Robert Steedman National Energy Board, Calgary, Alberta, Canada

2 2008 Forum: A regulator s perspective on Beaufort Sea research priorities 1. Spill cleanup readiness 2. Facility evacuation in mixed ice 3. Same season relief well capability 4. Offshore Waste Treatment Guidelines 5. Drilling on the shelf slope

3 ffwd to 2010: Scope of Arctic Review Drilling safely while protecting the environment Responding effectively when things go wrong Lessons learned Filing requirements

4 The National Energy Board 4 Based in Calgary; about 400 staff 85 staff focused on safety, engineering, environment, geo-science, socio-economic and lands. Reports to Parliament through the Minister of Natural Resources Independent of government Regulatory oversight for all stages of energy projects

5 The National Energy Board Gaétan Caron Chair & CEO Sheila Leggett Vice-Chair Rowland Harrison Member Roland George Member Kenneth Bateman Member Georgette Habib Member Lyne Mercier Member David Hamilton Temporary Member Ken Vollman Temporary Member (Mackenzie) Sara Jane Snook Temporary Member Bob Vergette Temporary Member Hans Matthews Temporary Member

Mercier Member David Hamilton Temporary Member Ken Vollman Temporary Member (Mackenzie)

6 6 NEB Role in the Arctic

7 Who Does What? Exploration Licenses INAC or NRCan Seismic and drilling activities NEB Benefits plans INAC or NRCan Significant discovery declarations NEB Commercial discovery declarations NEB Significant Discovery Licenses INAC or NRCan Development Plans NEB (& GIC) Production Licenses INAC or NRCan Production accounting NEB Manages royalties INAC or NRCan Advice on basin assessments NEB 7

NRCan Significant discovery declarations NEB Commercial discovery declarations NEB Significant

8 Applications for Offshore Drilling 8 Canada Oil and Gas Operations Act (COGOA) Safety Protection of Environment Conservation of oil and gas resources Joint production arrangements Economically efficient infrastructure

Environment Conservation of oil and gas resources

9 Applications for Offshore Drilling 9 Prior to authorizations: Environmental assessment under: Inuvialuit Final Agreement Nunavut Land Claims Agreement Act Canadian Environmental Assessment Act Approval of Benefits Plan by INAC or NRCan Proof of financial responsibility

Land Claims Agreement Act Canadian Environmental Assessment Act

10 Applications for Offshore Drilling Canada Oil & Gas Drilling and Production Regulations Management System Safety Plan Environmental Protection Plan Contingency Plans, including Emergency Response Procedures and Oil Spill Response Plan Canada Oil & Gas Certificate of Fitness Regulations Verification of fit-for-purpose by an independent competent organization 10

Emergency Response Procedures and Oil Spill Response Plan Canada Oil & Gas Certificate of

11 Offshore Drilling Operations NEB conducts regulatory oversight of the entire life of project: Application Phase Evaluate adequacy of proposed approaches Assessment of proposed drilling systems prior to operations Operations Phase Assess implementation and effectiveness of systems Compliance with all legislation, regulations, and other terms and conditions of approval Conduct inspections, audits, compliance meetings 11 Abandonment of Projects

Phase Assess implementation and effectiveness of systems Compliance with all legislation, regulations, and

12 12 Why are we here today?

13 The Arctic Review Review of all safety and environmental requirements for offshore drilling Focus on the Canadian Arctic offshore Examination of best information on the hazards, risks and mitigation measures associated with offshore drilling 13

Arctic offshore Examination of best information on the

14 Scope of the Arctic Review The Arctic Review will address the following topics: Drilling safely while protecting the environment Responding effectively when things go wrong Learnings Filing requirements 14

protecting the environment Responding effectively

15 Arctic Review Process The Arctic Review is public and transparent and will be carried out in three phases: Phase 1 Fact finding and Information Gathering Phase 2 Examining and Considering the Facts and Information Gathered Phase 3 Public Report

Fact finding and Information Gathering Phase 2 Examining and

16 16 Phase 1 Fact Finding and Information Gathering Meetings with Northern communities and Aboriginal organizations Calls for Information and Submissions direct requests to industry researchers other interested persons and groups Review of other relevant reports

Information and Submissions direct requests to industry

17 Phase 2 Examining and Considering the Facts and Information Public opportunity to ask questions and comment on the information collected in Phase 1 Meetings will scheduled in Yellowknife, Inuvik, Whitehorse and Iqaluit Up to $300,000 to help with travel costs 17

information collected in Phase 1 Meetings will scheduled in

18 Phase 3 Final Report The full Board will consider the information gathered and issue a public report NEB will use the results to inform decisions on future applications for offshore drilling in the Arctic 18

NEB will use the results to inform decisions on

19 You are Invited to Participate in the Review 19

20 Researchers: We Want to Hear from You Who should be engaged in gathering information? What is your preferred way to be involved? What questions do you want to see answered before the NEB considers applications for Arctic offshore drilling? 20

21 Thank You!

22 A little more detail Drilling safely while protecting the environment Potential hazards and risks associated with Arctic offshore drilling Identification and the effectiveness of measures employed to prevent and mitigate the risks associated with Arctic offshore drilling State of knowledge on the Arctic offshore Effectiveness and reliability of available well control methods

23 A little more detail Responding effectively when things go wrong State of preparedness to respond to drilling accidents, spills and malfunctions Effectiveness & reliability of options for regaining well control, including relief wells Effectiveness & availability of spill containment & clean-up options in Arctic conditions Financing spill clean-up, restoration and compensation for loss or damage Long term impacts of a spill on the environment, way of life & communities in Canada s Arctic

24 Learnings A little more detail Lessons learned from accidents, incidents and emergency response exercises, particularly those relevant to northern offshore environments; Filing requirements Information to be required from an applicant seeking authorization to drill an offshore well.

An Approach To Oil Spill Containment For Floating Drilling Operations In Canadian Beaufort Sea Pack Ice Conditions

An Approach To Oil Spill Containment For Floating Drilling Operations In Canadian Beaufort Sea Pack Ice Conditions For Floating Drilling Operations In Canadian Beaufort Sea Pack Ice Conditions Canada - US Northern Oil and Gas Research Forum Calgary, Alberta December 2 nd, 2010 An Overview An Overview Of Same Season