An Overview of Atlantic Canada Exploration and the Environmental Legislative Process, Offshore Nova

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An Overview of Atlantic Canada Exploration and
the Environmental Legislative Process, Offshore
Nova Scotia, Canada

• John Hogg
• Vice President, Atlantic Canada
• Offshore New Ventures Exploration

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Facts about EnCana Corporation

• High quality assets Opportunity Rich Portfolio
• Strong North American natural gas strategy
• Superior oil growth domestic and international
• Balance sheet positioned for growth
• 590,000 BOE daily production (2002F, after
  royalties)64 gas
• 2.3 billion BOE proved reserves (year-end
  2001,after royalties) 51 gas
• 90 of reserves and production in North
  America36 million acres net undeveloped land
• Approximately US20 billion Value (as of July 24,
  2002)

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2002 EnCana Capital BudgetUS3.2 Billion Gross
Division Breakdown
Onshore North America Breakdown
Marketing Midstream
Natural Gas
5
Offshore New
63
Ventures Exploration
14
Offshore International
Development
12
Syncrude
9
Other Oil
SAGD
Onshore North America
22
69
6
Prior to planned net dispositions of US950
million
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A World Class International Independent
Alaska/Mackenzie Delta
U.K. North Sea
Calgary
Atlantic Canada
London
Halifax
Bahrain/Qatar
Houston
Dubai
U.S. Gulf of Mexico
Doha
NDjamena
Sanaa
Chad
Yemen
Quito
Ghana
Brazil
Ecuador
Rio de Janeiro
Australia
Legend
Offices
International Projects
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Six Key Growth Platforms
Western Canada
U.K.
U.S. Rockies
Atlantic Canada
Gulf of Mexico
Ecuador
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North America Offshore Basins
Alaska/Mackenzie Delta
Newfoundland
Scotian Shelf
US Eastern Seaboard
Gulf of Mexico
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Canada How Much Gas is Out There?
Other Frontier
(includes other regions offshore East Coast
West Coast)
North of 60
89
175
British Columbia
50
Alberta
270
Grand Banks and Scotian Shelf
Saskatchewan
9
63
Remaining Produced
Source National Energy Board / Canadian
Association of Petroleum Producers
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US Atlantic Margin

• Area gt 250,000 km2
• Reservoir
• Jurassic Carbonates
• Jura-Cretaceous Sands
• Tertiary Sandstones
• Source
• Jurassic\Cretaceous Marine Shales
• Traps
• Listiric Normal Fault Plays
• Stratigraphic Pinch-outs
• Reef Margins
• Potential (USGS)
• 16 - 45 Tcf
• 1 - 4 Billion Barrels

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Atlantic Canada
St. Johns
Hibernia
Charlottetown
Grand Banks
Terra Nova
St. John
Sable Offshore Energy Project
Halifax
Deep Panuke
Bangor
Scotian Shelf
150 km
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HiberniaProductionPlatform
11
Terra Nova Floating Production System
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Atlantic Canada Gas Transportation
Anticosti Basin
St. Johns
Magdalen Basin
SOEI 500 MMcf/d
Halifax
EnCanas Deep Panuke 400 MMcf/d 2005
Scotian Basin
Boston
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Sable Offshore Energy Platforms
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Sable Thebaud Central Facility
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Deep Panuke Facilities Design
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Atlantic Canada Mesozoic Subbasins
45W
50W
55W
60W
70W
65W
Quebec
50N
200m
Newfoundland
200m
Grand Banks
New Brunswick
P.E.I.
St. Johns
Laurentian Channel
2000m
45N
45N
Nova Scotia
Halifax
200m
2000m
Scotian Shelf
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Atlantic CanadaRegional Land Overview
45W
50N
200m
200m
Newfoundland
New Brunswick
P.E.I.
2000m
Grand Banks
Laurentian Channel
45N
Nova Scotia
200m
2000m
120 Miles
Scotian Shelf
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Scotian Shelf Subbasins
60W
65W
55W
Sydney
New Brunswick
P.E.I.
Orpheus Graben
Fundy
Halifax
Laurentian
Nova Scotia
45 N
Banquereau
Abenaki
Scotian Shelf
LaHave
200m
2000m
Shelbourne
Georges Bank
Scotian Salt Province
60 Miles
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Regulation of Canada East Coast Waters

• The Government of Canada and the Atlantic
  Provinces agreed to jointly administer the
  offshore by use of independent offshore boards
• Two Boards Canada-Nova Scotia and
  Canada-Newfoundland Offshore Petroleum Boards
• Boards consist of two federal, two provincial and
  one joint members
• Each Board Staff Administers HSE, Resource
  Rights, Local Benefits, and Operations Management

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Canada Nova Scotia Offshore Petroleum Board

• Mission Statement
• To regulate petroleum activities offshore Nova
  Scotia in an efficient, fair and competent
  manner.
• Mandate
• The Canada-Nova Scotia Offshore Petroleum Board
  is the independent joint agency of the
  Governments of Canada and Nova Scotia established
  pursuant to the federal Canada-Nova Scotia
  Offshore Petroleum Resources Accord
  Implementation Act and the provincial Canada-Nova
  Scotia Offshore Petroleum Resources Accord
  Implementation (Nova Scotia) Act. It is
  responsible for regulation of petroleum affairs
  and safe practices offshore Nova Scotia.
• The Board's principal responsibilities include
• Ensuring the safe conduct of offshore operations
• Protection of the environment during offshore
  petroleum activities
• Management of offshore oil and gas resources
• Review of industrial benefits and employment
  opportunities
• Issuance of licenses for offshore exploration and
  development
• Resource evaluation, data collection and
  distribution

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CNSOPB Land Issuance Program ProceduresOverview
Nomination of Land
CNSOPB Strategic EA
Call for Bids
Exploration License
Seismic Program
Geophysical Program
Geotechnical Program
Drilling Program
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Environmental Procedures for ELsStandard Field
Program (Common)
Environmental Assessment (EA)
Oil Spill Response Plan (OSRP)
Additional Program Specific Requirements
Consultation Process
PLANNING
Programs Approval
OPS
Operational Procedures
REPT.
Reporting
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Environmental ProceduresSeismic Program
(Specific Process)

• Consultation
• FEAC (Fisheries Environmental Advisory Committee)
  Meeting
• Direct information to Fisheries
  Representatives
• Consultation through Canada-Nova Scotia Offshore
  Petroleum Board (CNSOPB) and the Federal
  Departments of Environment Canada and the
  Department of Fisheries and Oceans (DFO)
• Notices to Mariners
• Fisheries Compensation

Environmental Assessment Identify critical
time/areas for fishing/mammals/spawning
OSRP
PLANNING
Programs Approval
OPS
Fisheries Liaison Observer (FLO) Ramp-up of
airguns
REPT.
FLO Report
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Environmental ProceduresExploration Drilling
Program, Pre-Drill (Specific Process)

• Consultation
• FEAC (Fisheries Environmental Advisory Committee)
  meeting
• direct info to fisheries reps
• consultation through CNSOPB, Environment Canada
  and DFO

OSRP
Baseline Benthic Data
Rigs Metocean Equipment
Metocean Data for Certifying Authority
PLANNING
Drilling Chemical Screening
Environmental Assessment
Programs Approval
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Environmental ProceduresExploration Drilling,
While Drilling, (Specific Process)
Physical Environmental Monitoring Program (meteo,
waves, currents)

• Consultation
• Notices to Mariners
• Fisheries Compensation

OWTG (oil on cuttings, bilge/ballast/deck
drainage water, sanitary/food waste)
Environmental Monitoring Program (EMP) (bird
monitoring, benthic survey, tainting study)
OPERATIONS
REPT.
Metocean End of Well Report
Env. Compliance Monitoring Data
ECM Rpt
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Environmental ProceduresEnvironmental Assessment
Process 2003 Modifications

• Existing CNSOPB Process (Timelines)
• 30-day review by CNSOPB, DFO, Environment Canada
• NS Seismic Class Screening EA (1998, LGL
  document)
• NS Drilling Generic Assessment (2000, LGL
  document)

• New CEAA (Canadian Environmental Assessment Act)
  Process Timelines
• Effective Q1/03 (earliest)
• Screening Study wellsite surveys, seismic
  surveys, and exploration drilling in area
  previously assessed under CEAA
• 6-month review
• Comprehensive Study exploration drilling in new
  area
• 12-month review

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Websites for Additional Information

• Canada Nova Scotia Offshore Petroleum Board
• www.cnsopb.ns.ca
• Canada Newfoundland Offshore Petroleum Board
• www.cnsopb.nfnet.com/
• Terra Nova Project
• http//www.terranovaproject.com/
• Hibernia
• www.hibernia.ca/
• Sable Offshore Energy Inc.
• www.soep.com