Strategic Environmental Assessment

Transcription

1 Strategic Environmental Assessment PETROLEUM EXPLORATION ACTIVITIES ON THE SOUTHWESTERN SCOTIAN SLOPE Submitted to: Canada-Nova Scotia Offshore Petroleum Board Prepared by: Hurley Environment Ltd. October, 2011

2 The correct citation for this report is: Hurley, Geoffrey V. (2011) Strategic Environmental Assessment Petroleum Exploration Activities on the Southwestern Scotian Shelf. Consultant report was prepared by Hurley Environment Ltd. for the Canada-Nova Scotia Petroleum Board October, p. + appendices The Canada-Nova Scotia Petroleum Board and any person acting on their behalf assume no liability arising from the use of the information contained in this document. The opinions expressed are those of the author and do not necessarily reflect those of the Canada-Nova Scotia Petroleum Board i

3 TABLE OF CONTENTS 1 INTRODUCTION GENERAL INFORMATION SEA BACKGROUND CONTACTS INFORMATION: EXPLORATION ACTIVITIES Components Exploration Activities Management of Routine Discharges / Emissions / Solid Waste Management of Accidental Releases CALL FOR BIDS AREA INFORMATION Environmental Features Ocean Use ENVIRONMENTAL ASSESSMENT SCOPING REGULATORY CONTEXT KEY DOCUMENTS REVIEWED FOR ISSUES SCOPING PLANNED CONSULTATION / COMMUNICATIONS PROGRAM SELECTION OF VALUED ENVIRONMENTAL COMPONENTS (VECS) POTENTIAL INTERACTION OF PROJECT ACTIVITIES WITH VECS ASSESSMENT BOUNDARIES DATA GAPS AND UNCERTAINTIES ENVIRONMENTAL EFFECTS ASSESSMENT APPROACH USED FOR STRATEGIC ENVIRONMENTAL ASSESSMENT EFFECTS ON SPECIES AT RISK (SAR) Sowerby s Beaked Whale, Blue Whale and Leatherback Turtle Cusk, Bluefin Tuna, Blue Shark, Porbeagle Shark EFFECTS ON COMMERCIAL FISH AND FISHERIES Swordfish, Offshore lobster and Sea scallop Commercial Fisheries IMPACT ON SPECIAL AREAS Sable Island National Park (Designation pending) Roseway Basin Right Whale Sanctuary Northeast Channel Coral Conservation Area Georges Bank Oil and Gas Moratorium Area Haddock Box Nursery Area EFFECTS OF THE ENVIRONMENT ON EXPLORATION ACTIVITIES PHYSICAL ENVIRONMENT CLIMATE CHANGE FOG, ICEBERGS, SEA ICE, SUPERSTRUCTURE ICING SEISMICITY & TSUNAMIS SEDIMENT TRANSPORT AND SEABED STABILITY CONCLUSIONS CUMULATIVE EFFECTS ASSESSMENT (CEA) CEA APPROACH CEA SCOPING ASSESSMENT SUMMARY AND CONCLUSIONS SUMMARY OF ENVIRONMENTAL RISK ASSESSMENT SUMMARY OF CONSULTATIONS SUMMARY OF MITIGATION AND FOLLOW-UP MEASURES ii

4 7.4 SUMMARY AND CONCLUSIONS LIST OF TABLES Table 1 Routine Emissions / Discharges / Solid Waste Table 2 Ecosystem Components SW Scotian Slope Area Table 3 Selection of Valued Environmental Components (VECs) Table 4 Interaction of VECs with Exploration Activities Pathways/Activities Table 5 Environmental Effects Evaluation for the Marine Mammal SARs: Sowerby s Whale, Blue Whale and Sea Turtle SAR: Leatherback Turtle Table 6 Environmental Effects Evaluation for marine fish SARs: Cusk, Porbeagle Shark, Bluefin Tuna Table 7 Environmental Effects Evaluation for the Commercial Fish Resources: Swordfish, Offshore lobster, Sea Scallop Table 8 Environmental Effects Evaluation for Commercial Fisheries (Sea scallop, Table 9 Offshore lobster, Swordfish) Environmental Effects Evaluation for Special Areas: Sable Island National Park (designation pending), Roseway Basin Right Whale Sanctuary, Georges Bank Oil and Gas Moratorium Area, Northeast Channel Coral Conservation Area, and Haddock Box Table 10 Other Ocean Uses Considered in the CEA Table 11 Assessment of Cumulative Effects (with Other Ocean Uses) Table 12 Environmental Assessment Risk Matrix for Noise Table 13 Environmental Assessment Risk Matrix for Drill Waste Table 14 Environmental Assessment Risk Matrix for Accidental Oil Spills/Releases Table 15 Environmental Assessment Risk Matrix for Presence of Vessels/Platforms. 7.3 Table 16 Summary of Consultations Table 17 Summary of Potential Mitigation LIST OF FIGURES Figure 1 NS11-1 Call for Bids for Exploration Licenses Location Maps Figure 2 Ocean Circulation Patterns Figure 3 SEA Study Area Figure 4 Commercial Fisheries Sea Scallop Catches Figure 5 Commercial Fisheries Offshore Lobster Catches Figure 6 Commercial Fisheries Crab (Red Crab & Jonah Crab) Catches Figure 7 Commercial Fisheries Groundfish Catches Figure 8 Commercial Fisheries Large Pelagic Catch Figure 9 Project Location Map and Marine Shipping Routes Figure 10 Project Location Map and Submarine Cables Figure 11 Project Location Map and Military Exercise Area Figure 12 (a) Marine Research and Monitoring - DFO Marine Fish Research and Monitoring Figure 12 (b) Marine Research and Monitoring Other ongoing programs Figure 13 Shipwreck Locations, Ocean Disposals Sites, DND Legacy Sites Figure 14 History of Seismic Coverage APPENDICES Appendix A Environmental Risk Assessment Process Appendix B Scoping Document for the SEA for Exploration Activities iii

5 1 INTRODUCTION This document presents a Strategic Environmental Assessment (SEA) for offshore petroleum exploration-related activities in a marine area on the southwestern Scotian Slope (Figure 1) that was identified in a Call for Bids for Exploration Licenses (NS11-1 lease block area), issued on June 30th The assessment addresses issues outlined in a scope which received commentary from Environment Canada, Fisheries and Oceans Canada and stakeholders. The Canada-Nova Scotia Offshore Petroleum Board (CNSOPB) has jurisdiction over the offshore area of Nova Scotia with respect to petroleum activities. The 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 offshore Nova Scotia areas that may have the potential for offshore petroleum exploration activity but that were not subject to a previous SEA nor to recent and substantial project-specific environmental assessments, such as a Comprehensive Study or Panel Review. In addition, the CNSOPB commits to regularly reviewing the SEA, typically within five years of its completion to determine if updates are required. Information from the SEA will assist the Board in its determination with respect to the potential issuance of future exploration rights within these areas by identifying information data gaps and general restrictive or mitigative measures that should be considered for application to consequent exploration activities. All subsequent projects in an area covered by the SEA, including seismic programs and exploratory wells, still require project specific environmental assessments prior to program approval. 1.1

6 Figure 1 NS11-1 Call for Bids for Exploration Licenses Location Maps 1 1 Well sites referenced to in this SEA report (for EA/EEM info) are highlighted in yellow including a hypothetical well site along the Scotian Slope used in a spill dispersion modelling scenario (Refer to ). Unit for bathymetric contours shown on the map are in metres. 1.2

7 2 GENERAL INFORMATION 2.1 SEA BACKGROUND Process Approach Scope The CNSOPB requires a Strategic Environmental Assessment (SEA) for exploration activities in areas identified in this NS11-1 Call for Bids for Exploration Licenses which will include two public comment periods; one on the scope of the assessment and the other public comment period on the draft SEA report. SEA incorporates a broad-based approach to environmental assessment that proactively examines the environmental effects which may be associated with offshore petroleum exploration activities 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 site-specific issues with defined boundaries. Additional information regarding SEA may be found on web sites of the Canadian Environmental Assessment (CEA) Agency at: and the International Association of Impact Assessment at An environmental risk assessment process (Refer to Appendix A) which is consistent with CEA Agency guidelines for SEA was adopted for this assessment. The effects assessment was carried out using a straightforward environmental risk assessment methodology which focused on key marine VEC categories namely Species-at-Risk, Special Areas, Commercial Fish Resources and Fisheries and Other Ocean Uses (Appendix A). This SEA report is written in a concise, tabular format to facilitate review. The scoping document of the SEA from the CNSOPB is provided in Appendix B. This SEA will consider foreseeable offshore oil 2 and gas exploration activities in the NS11-1 Call for Bids for Exploration Licenses lease block area (refer to Figure 1). It will examine potential environmental interactions associated with petroleum exploration activities which are under the jurisdiction of the CNSOPB. Exploration activities to be considered in the SEA include exploratory and delineation drilling (and abandonment), seismic survey activities (2D, 3D, vertical seismic profiling, geohazard surveys), geotechnical surveys. The SEA will outline possible mitigation measures to reduce environmental risk, describe where data and information are lacking or limited and 2 To date, oil discovered in the NS offshore area has been light oil or condensate. In the unlikely event that future exploration activities encounter heavy oil (e.g. crude oil), a project-specific environmental assessment is the appropriate process to assess potential environmental effects 2.1

8 suggest strategies to address identified data gaps. Study Area Purpose Objectives The southwestern Scotian Slope SEA Study Area encompasses the parcels (in the CNSOPB s Call for Bids for exploration licenses (NS11-1 lease block area), which was announced on June 30, Water depths in the Call for Bids Area are mostly greater than 1000 m. However, as per guidance from the CEA Agency 3, the spatial domain of the SEA will extend beyond the boundaries of the parcels of land in the Call for Bids for exploration licenses (NS11-1 lease block area) to include potential project interactions with the Valued Ecosystem Components (i.e., within zones of influence of certain project discharges/emissions) (Refer to Section 3.6). TA To provide the requisite information to assist the CNSOPB in its determination with respect to the potential issuance of future exploration rights within the southwestern Scotian Slope SEA area. Provide an overview of the existing environment (Sect & 5) Generally describe typical offshore oil and gas exploration activities (Sect. 2.3) Describe and evaluate potential environmental effects associated with offshore oil and gas exploration (Sect. 4, 6 & 7.1) Identify knowledge and data gaps (Sect. 3.7) Identify species-at-risk and environmentally sensitive areas that may interact with project activities (Sect. 3.4, 3.5 & 3.6) Identify any environmental issues or of public concern that a successful bidder would need to address when performing a project-specific environmental assessment which is required before any authorization may be granted (Sect. 3.2, 6 & 7.2) Make recommendations for general mitigative measures that should be employed during offshore petroleum exploration activities (Sect. 2.33, & 7.3) Identify, where appropriate, activities/areas requiring enhanced levels of mitigation; identify, if feasible, the level of enhanced mitigation required (Sect 7.3 & 7.6) 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 (Sect. 7.3) 3 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) 2.2

9 2.2 CONTACTS Regulatory Authority CNSOPB Mandate CNSOPB Contact person Federal Agencies with Expert or Specialist Knowledge CNSOPB The CNSOPB has jurisdiction over the offshore area of Nova Scotia with respect to petroleum activities 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). Under this mandate, the CNSOPB has the responsibility to ensure that offshore oil and gas activities proceed in a safe and environmentally-responsible manner. Eric Theriault, M.A.Sc., P.Eng. Advisor, Environmental Affairs Canada-Nova Scotia Offshore Petroleum Board 1791 Barrington Street 6th Floor, TD Centre Halifax, NS, B3J 3K9 Direct (902) Reception (902) Fax (902) etheriault@cnsopb.ns.ca Environment Canada and Fisheries and Oceans Canada 2.3

10 2.3 INFORMATION: EXPLORATION ACTIVITIES Components Vessels/Platform(s) Supply and servicing Exploration activities are typically undertaken by contracted equipped-for-purpose seismic, geophysical, or geotechnical survey vessel(s) and drilling rigs From a shore base location along coast of Nova Scotia Exploration Activities Types Seismic Surveying 4 Seabed Surveying Deepwater exploration activities to be considered in the SEA include: seismic and seabed (geophysical and geotechnical) surveys; drilling of wells (either exploration or delineation) including well abandonment. Purpose: Identify the character of prospective oil-bearing strata deep below the seafloor. Data Acquisition: Most commonly, two-dimensional (2-D) or three-dimensional (3-D), depending on the level detail of the information that is required. Survey areas can be 100 s (3-D) / 1000 s (2-D) of km 2. Typically, a 2-D survey consists of a small air gun array and a single streamer m in length, towed 2-4 m below the surface; and, a 3-D survey consists of airguns or more and 1-12 streamers up to 10,000 m in length (cable spread width up to 800 m), and towed 200 m behind the vessel, 4-6 m below the surface, at speeds of knots. Duration: Typically less than a month Purpose: Identify potential hazardous shallow gas, unstable substrate, and seabed obstructions using a variety of technologies at drilling locations and along flowline route corridors. Geophysical sampling: 2D high-resolution (2DHR) digital seismic (low-energy) consisting of a small air gun array and a single streamer 4 Marine vibroseis (placing marine vibrators on the seafloor) is a promising technology because it offers the potential for less environmental impact than airgun noise but is not considered a viable alternative at this time for technical and financial reasons. 2.4

11 1,200 m or less in length, towed 2-4 m below the surface. Other tools: Sub-bottom profiler, multi-beam echo-sounder, magnetometer, and side-scan sonar. Geotechnical sampling: Seabed core sampling potentially using a variety of technologies including geotechnical boring (well site locations only), vibrocores and cone penetrometer technology (CPT). Duration: Hours to days Deepwater Drilling Vertical Seismic Profiling (during drilling) Purpose: To drill exploration or delineation wells in water depths greater than 1,000m. Typical well may reach a depth of 4000m. Includes well abandonment following completion of drilling and well evaluation. Drillship: Uses a series of thrusters or powered propellers fore and aft and on both sides of the vessel to maintain the vessel in a relatively constant position. Semi-Submersible Drilling Unit: Typically, two longitudinal and streamlined lower hulls that support several vertical cylinders or columns, which in turn support the main deck of the rig. Once on site, the hulls and columns are filled with sufficient water so that the rig partially submerges; the main deck is above water and the hulls are below the water surface. Unit may either be moored to the bottom with a series of 6 to 12 anchors or use a dynamic positioning system with multi-directional thrusters. Duration: Approximately 3 months Purpose: To make seismic borehole measurements near the end of drilling to correlate with/confirm surface seismic data Vertical Seismic Imaging (VSI) Tool: A series of geophones are anchored in the wellbore at regular intervals to cover the entire recording depth. An acoustic source array is deployed over the side of the drill rig to a depth below the ocean surface of approximately four metres. At each anchoring of the VSI tool in the wellbore, the acoustic source is triggered approximately 5 times to create a sonic wave that is recorded by the VSI geophones anchored in the wellbore. The sonic wave, recorded by the 2.5

12 geophones, is digitized and transmitted to the surface recording equipment. Duration: Hours to days Management of Routine Discharges / Emissions / Solid Waste Table 1 describes routine discharges and emissions and solid wastes produced by various types of exploration activities along with related mitigation measures to reduce environmental impacts. Table 1 Routine Emissions / Discharges / Solid Waste Sources Characteristics Mitigation Exhaust fumes from generators, engine and utilities on offshore vessels/drilling rig. Flare emissions from drilling rig during well testing Heat/Lights Carbon Dioxide (CO 2 ), Sulphur Dioxide (SO 2), Nitrous Oxides (NO x,), Total Suspended Particles (TSP) The composition and amounts of exhaust emissions depend on the loading, fuel type and engine efficiency of the equipment. Because of the relatively short time frame for various exploration activities (refer to Section 2.2.2) including well testing (24 hrs), amounts of greenhouse gases and other atmospheric emissions anticipated to be minimal. Vessels/drilling rig navigation lights, deck lights and underwater lights - night time for the duration of operations; heat/light emissions from flares during well testing (24 hrs) Air emissions will comply with the latest version of the Air Quality Regulations (Nova Scotia Environment Act) 5, Regulations for the Prevention of Pollution from Ships and for Dangerous Chemicals 6 under the Canada Shipping Act MARPOL Annex VI 7, and Ambient Air Quality Objectives (CEPA) 8. Air emissions will be regulated as per latest version of the Offshore Waste Treatment Guidelines 9 Use of high efficiency burner on flare Compliance with the requirements of the latest version of the Canada Shipping Act and Collision Regulations (International Regulations for Preventing Collisions at Sea, 1972 with Canadian modification The CNSOPB expects all operators to take steps to minimize flare gas volumes and operators are encouraged to develop flare management plans that strive for the minimization of gas flaring volumes

13 Table 1 Noise Routine Emissions / Discharges / Solid Waste Sources Characteristics Mitigation Peak sound pressure from a large-scale seismic array (~ cu. inch) for a typical 2D or 3D exploration seismic survey is db re 1 µpa@ 1m and frequency range of 10 to 300 Hz. Noise generated by various technologies used for surveying the seabed is of low pressure 11 (below the CEAA EA threshold pressures of kpa at a distance of one metre from the seismic source (i.e., 229 db re 1 µpa@1m) and of high frequencies which attenuate over a short time (milliseconds) and distance ((metres). Vertical Seismic Profiling (VSP) consists of an acoustic airgun array made up of 4 x 40 in 3 and 4 x 150 in 3 acoustic sources, pressured up to 2000 psi and a sound pressure level of db re 1 µpa@ 1m. Noise generated during simultaneous drilling/production activities on Sable Island Bank has been shown to be dominated by noise from nearby standby/supply vessels and was attenuated to below threshold for potential adverse effects on marine mammals (180 db re 1 µpa@ 1m) m from sound source (i.e., SOEP Venture platform). Adherence to Statement of Canadian Practice with respect to the Mitigation of Seismic Sound in the Marine Environment 12 which outlines potential mitigation measures including shutting down survey operations when an endangered or threatened whale or turtle species is sighted within the safety zone 13, potential use of Passive Acoustic Monitoring, survey scheduling (shortterm/seasonal), enlarging the safety zone (beyond minimum 500 m) around airgun arrays, etc. Carry a Fisheries Liaison Officer (FLO) onboard the seismic vessel as per CNSOPB requirement 11 Possible exception is 2DHR seismic used for wellsite surveys. However, a 2DHR survey airgun array (4X 40 cu. inch = 160 cu. inch) has much smaller sound source compared to a large scale 2D or 3D seismic survey and is deployed over a much smaller area (typically less than 1 km2) Similar potential mitigation measures including shutdown when sighting an endangered marine mammal or sea turtle species is sighted would be applied within the 500-m safety zone around an operating drilling vessel 2.7

14 Table 1 Drill waste Routine Emissions / Discharges / Solid Waste Sources Characteristics Mitigation Bilge water Water-based mud (WBM) or Syntheticbased mud (SBM) or Enhanced mineral oil-based mud (EMOBM) /Cuttings Potentially oily water All components of drilling muds are to be screened as per the latest version of the Offshore Chemical Selection Guidelines for Drilling and Production Activities on Frontier Lands 14. All drilling muds and associated rock cuttings are to be treated and discharged as per the latest version of the Offshore Waste Treatment Guidelines. The current guidelines (NEB et al. 2010) specify: o o o Spent and excess WBM and WBM/cuttings can be discharged without treatment. Where there is technical justification (e.g., requirements for enhanced lubricity or for gas hydrate mitigation), operators may use SBM or EBOBM. Performance target for SBM or EMOBM/cuttings are not to exceed 6.9 g/100 g oil on wet solids). Treated to reduce oil concentration to <15 mg/l prior to ocean discharge or as per latest version of the Offshore Waste Treatment Guidelines Treated to reduce oil concentration to<15 mg/l prior to ocean discharge or as per latest version of the Offshore Waste Treatment Guidelines. Ballast water Sewage and Food Wastes Potentially oily water Localized organic enrichment Vessels will comply with provisions of MARPOL 15, the Ballast Water Control and Management Regulations) 16 under the Canada Shipping Act (including provisions to replace its ballast water before entering Canadian waters, if applicable). [Note: Any contaminated ballast water shall not be discharged unless through an Oily Water Separator]. Adherence to Regulations for the Prevention of Pollution from Ships and for Dangerous Chemicals 17 under the Canada Shipping Act

15 Table 1 Routine Emissions / Discharges / Solid Waste Sources Characteristics Mitigation Miscellaneous solid waste Paper, cardboard, recyclable cans, bottles and plastic, wood, scrap metal, etc. Transferred to shore for sorting, recycling and disposal according to the Nova Scotia Solid Waste- Resource Management Regulations and other municipal requirements Management of Accidental Releases 19 Spills (and unauthorized discharges) Halocarbons The CNSOPB requires each offshore operator to prepare a spill response plan to address spill prevention and response for accidental spills of hydrocarbons and unauthorized discharges. The plan should include contingency measures to address extreme weather scenarios. Each operator is also expected to take preventative steps in avoiding spills, leaks and discharges from reaching the environment. These preventative steps include: identifying and assessing potential sources and causes of leaks and spills and adjusting process equipment and operating practices accordingly. Steps to minimize effects of spills include spill containment measures and effective spill response training. Reporting procedures for spill incidents, which are to be outlined in the Spill Response Plan, are to be consistent with the latest version of the CNSOPB Guideline for the Reporting and Investigation of Incidents 20 which includes mandatory reporting to the Canadian Coast Guard and the CNSOPB within 24 hours. In the event of a large spill, operators are required to issue a Notice to Shipping/Mariners and are expected to establish ongoing communications with key commercial fisheries interests and other ocean users during spill response activities. The CNSOPB may also require each offshore operator to develop an Environmental Effects Monitoring (EEM) Plan for marine oil spills which specifically addresses post-spill monitoring of environmentally sensitive areas in the spill area. Adherence to CWS-approved protocols for handling stranded birds such as that outlined in Williams and Chardine's brochure entitled, The Leach's Storm-Petrel: General information and handling instruction. The use and handling of ozone-depleting substances and their halocarbon alternatives are regulated by Environment Canada through the Federal Halocarbon Regulations under the Canadian Environmental Protection Act 21 for the refrigeration, air-conditioning, fire-extinguishing, and solvent systems under federal jurisdiction To the marine environment

16 2.4 CALL FOR BIDS AREA INFORMATION Environmental Features Halocarbon releases must also be reported to Environment Canada as per their regulations, as well as the CNSOPB. Physical Seabed Characteristics 22 Climatology 23 Wind 24 Waves 25 The seafloor within the NS11-1 lease block area is mainly silt, clay and sand of Holocene age. Isolated gravel size material is rare but present. Includes areas of unique geology (iceberg furroughs, pits, complex/irregular bottom). Based on sediment sampling chemical characterization of exploration leases in the general vicinity, trace metal and petroleum hydrocarbon (1.0 to 94 mg/kg) concentrations are predicted to fall generally within the ranges typically observed for marine sediments on the Scotian Shelf and Grand Banks. Daily mean air temperatures: from -1.3 o C in Feb to 17.6 o C in Aug Extreme minimum air temperatures: from o C in Jan to 4.4 o C in Jul / Aug Extreme maximum air temperatures: from 12.8 o C in Feb to 29.6 o C in Jul Average days of fog: from 4 days in Dec to 22 days in July Average wind speed (m/s): from 4.8 in Jul to 9.8 in Jan. Most frequent wind direction: SW from May-Sep & W and NW from Oct-Mar. Max. hourly speed (m/s): from 17.3 in Jun/Jul (SW) to 28.5 in Dec (NW) Monthly mean Hsig (m) 26 : from 1.4 in Jul/Aug to 3.0 in Jan Monthly maximum Hsig (m): from 5.3 in June to 14.3 in Mar 5-year return Hmax (m) 27 : year return Hmax (m): Piper, D.J.W Surficial geology and physical properties 6: Deep-water surficial geology. In East Coast Basin Atlas Series: Scotian Shelf. Atl. Geoscience Centre, Geological Survey of Canada Environment Canada weather station on Sable Island. 24 Environment Canada weather station on Sable Island. 25 BEPCo. Canada Environmental Assessment Report Exploratory Drilling on EL 2407 July Significant wave height = average height of the waves which comprise the highest 33% of waves in a given sample period (typically 20 to 30 minutes). 27 Maximum wave height in a recorded burst of raw data. 2.10

17 Ocean current Generalized ocean circulation patterns are shown in Figure 2 Shelfbreak current (>1000 m isobath): seasonally varying SW flow along the Shelf edge of water derived from the Labrador Current; acts as a barrier to onshore transport. Ocean circulation patterns can vary over short time scales due to rapid changes in physical forcing variables (e.g., winds, warm core rings, and slope water intrusions) 32 Typical current speeds: 5-15 cm/s Peak current: near-surface flow of cm/s in the winter season Sea ice / icebergs 33 <1% frequency of sea ice Icebergs very uncommon Biological Ecosystem Components There is a general lack of information on the ecosystem of the SW Scotian Slope. Benthic faunal distribution appears to be patchy with low biodiversity although there are some localized areas of high benthic complexity 34. The absence of hard substrate and low currents likely limits coral development. Large crustacean species along the shallow shelf break area include Red crab, Jonah crab and Lobster. Most resident deep slope and mesopelagic fishes and squids are noncommercial. Many marine species are present on a seasonal basis as this area is located along a primary north-south migratory route for large pelagic fishes including sharks, swordfish, and tuna; most beaked and baleen whales, and sea turtles. Many land-based and seabird species also migrate through the area to and from southerly overwintering areas. For further details refer to Table Hannah et al Seasonal circulation on the Western and Central Scotian Shelf. J. Phys. Ocean Kennedy et al The Marine Ecosystem of Georges Bank CSAS Res. Doc. # Breeze et al The Scotian Shelf: An Ecological Overview for Ocean Planning. Can. Tech. Rept. Fish.& Aquat. Sci. # Brickman, D., Petrie, B.D., and Smith, P.C Assessing Ballast Water Exchange Zones on the Scotian Shelf and Gulf of Maine. Can. Sci. Adv. Sec. 2004/119: 50pp 32 J. Loder, DFO Science, pers.comm. 33 Environment Canada annual ice records Kristian Curran, DFO Habitat Branch, pers. comm. 2.11

18 Special Areas (in the vicinity of the SEA Study Area) 35 Roseway Basin Area to be Avoided for Right Whales: Roseway Basin on the southwestern Scotian Shelf is both an important commercial shipping route and an important feeding and socializing area during the summer and fall for the critically endangered North Atlantic Right Whale - one of only two known areas where large numbers of North Atlantic Right Whales gather on a seasonal basis in Canadian waters. (The other is the Lower Bay of Fundy). There are 3 other critical areas in nearby U.S. waters. Northeast Channel Coral Conservation Area: The Northeast Channel, which lies between the Scotian Shelf and Georges Bank supports a high density of two endangered octocoral species, bubblegum coral (Paragoria arborea) and seacorn coral (Primnoa resedaeformis). The northeast channel also experiences high levels of commercial vessel traffic. Georges Bank Oil and Gas Moratorium Area: Georges Bank, which straddles the Canada-United States maritime boundary, is a biologically productive and diverse ocean area. A moratorium on offshore petroleum activities (i.e,. exploration, drilling, and development) has been in place on Georges Bank and much of the Northeast Channel since With the passing of Bill 82 by the Nova Scotia Legislature on December 10 th 2010, the moratorium has been extended. The earliest the moratorium could be reviewed is the year Sable Island National Park (Designation pending): Sable Island on the eastern Scotian Shelf is a crescent shaped series of sand bars and dunes which extend approximately 40 km in length. The Island provides unique habitat to several flora and fauna species, some of which are endangered or of special concern. At present access to, and activities on, Sable Island are regulated under the legislative mandate of the Canadian Coast Guard, Department of Fisheries and Oceans (DFO), through the Canada Shipping Act, Sable Island Regulations. The island is also protected by the Migratory Bird Sanctuary (MBS) Regulations under the Migratory Birds Convention Act. The island has been selected for future designation as a National Park under Parks Canada. (Appendix B). Sable Offshore Energy Project (SOEP) gas/condensate production platforms and pipelines are located in the vicinity of Sable Island as well as the Deep Panuke platform scheduled to begin the production and export of natural gas to shore in late Haddock Box: The Haddock Box is an important fish conservation area on the western Scotian Shelf a nursery area for haddock which mainly overlies Emerald Bank. 35 Refer to Figure 3 - SEA Study Area. All Special Areas identified above overlap with the SEA Study Area (with the exception of the Sable Island National Park (designated) which was considered as a VEC in the SEA since it is the closest land mass to the NS11-1 lease block area. However, there are no designated special environmental areas that actually overlap with the NS11-1 lease block area. Actual distances (km) from closest point of the NS11-1 lease block area are: Georges Bank O&G Moratorium Area (50), Roseway Basin Right Whale Sanctuary (45), Northeast Channel Coral Conservation Area (48), Haddock Box (8), Sable Island National Park (designated) (100) 2.12

19 Figure 2 Ocean Circulation Patterns 2.13

20 Table 2 Ecosystem Components SW Scotian Slope Area FISH Groundfish: The Scotian Shelf and Slope represents the northern limit of some demersal fish species (e.g., pollock) and the southern limit of others (e.g., halibut). Commercial species found in the region include cod, halibut, haddock, flounder (spp.), American plaice, silver hake, and white hake. Non-commercial species include sand lance, winter skate, ocean pout, longhorn sculpin and the Atlantic sea-raven. Most groundfish shift from the upper areas of the banks in the summer, to deeper, warmer waters around the edges of the banks in winter. This includes cod, haddock, silver hake and American plaice. Those more tolerant of cooler water remain on the banks (e.g., flounder species and most skates). A few species are fished commercially on the SW Scotian Slope most notably Atlantic halibut (with cusk is a bycatch species). Deep slope (>900 m depth) species are mostly non-commercial and include: roughhead grenadier, longnose chimera, deep-sea cat shark, boa dragnonfish, blue hake, and black dogfish. Pelagic: The Scotian Slope is an important area for pelagic fishes include many highly migratory species such as tunas (e.g., Bluefin tuna), Swordfish and some shark species (e.g., adult femaie Porbeagle sharks) that winter (to spawn/give birth) in southern latitudes and migrate up the Atlantic coast in spring and early summer as the waters warm. The mesopelagic fish community is composed of lanternfish, viperfish, and hatchetfish. Spawning: Most demersal species fished on the Scotian Shelf spawn over the shelf itself. Concentrations of fish eggs and larvae of many commercial species can be found over the major banks on the Scotian Shelf from February to October. Spawning aggregations of cod, haddock, and flounder species can be found on Sable Island Bank, Western Bank, and Browns Bank during the spring. Little is known about the spawning habits of demersal species such as Silver hake, Atlantic halibut and Cusk. Common name Atlantic salmon Northern wolffish Atlantic wolffish White shark Acadian redfish American plaice Latin name Salmo salar 1 Anarhichas denticulatus Anarhichas lupus Carcharadon carcharias Sebastes fasciatus Hippoglossoi des platessoides FISH SPECIES AT RISK 36 SARA Sched Range / Population Risk category. 37 Atlantic Ocean / Inner Bay of Fundy 1 North Atlantic Ocean 1 North Atlantic Ocean 1 Atlantic Ocean No status No status Western Atlantic Ocean Atlantic Ocean Endangered (2010) Threatened (2001) Special Concern (2000) Endangered (2006) Threatened (2010) Threatened (2009) Likelihood of Occurrence in SW Scotian Slope Area Very Low (usually inner Bay of Fundy - summer / fall) Low (southern edge of range) Low (on silt/muddy bottom only occasionally) Low (seasonal migrants; more common in coastal areas) Low (depth range m) Low (preferred depths of m; southern edge of range) 36 For detailed information on SARA and additional information on at-risk species listed in Table 2 go to Government of Canada Species-at-risk Registry at 37 Only species that are on Schedule 1 are regulated under the SAR Act. Includes species that had been assessed by COSEWIC after October 1999 when Parliament passed the Act in December 2002; and species assessed or re-assessed after December 2002 and added to Schedule 1 by the Governor in Council on the recommendation of the Minister. 2.14

21 Table 2 Ecosystem Components SW Scotian Slope Area Common name Latin name SARA Sched. 38 Range / Population Risk category Likelihood of Occurrence in SW Scotian Slope Area Winter Skate Leucoraja ocellata No status Atlantic Ocean Threatened (2005) Georges Bank- Western Scotian Shelf- Bay of Fundy population Low (found in depths <370 m) Atlantic cod Gadus morhua No status North Atlantic Ocean Endangered (2010) Low (found in depths <500 m) Roughead grenadier Macrourus berglax No status North Atlantic Ocean Special Concern (2007) High (depth range to 2000 m; resident species) Cusk Brosme brosme No status Atlantic Ocean Threatened (2003; reaffirmed in 2006) Medium (depth range to 1200 m; prefer rough bottoms; resident species) Porbeagle shark Lamna nasus No status Atlantic Ocean; southern Indian, Pacific, Antarctic Oceans/Atlantic population Endangered (2004) Medium (widely distributed over Scotian Shelf ; adult females (only) migrate seasonally Blue shark Prionace glauca No status Atlantic Ocean, Pacific Ocean/Atlantic population Special Concern (2006) High (seasonal migrants, spring/summer) Basking shark Shortfin Mako shark Cetorhinus maximus Isurus oxyrinchus No status No status Atlantic Ocean/Atlantic population Widely distributed/atlantic population Special Concern (2009) Threatened (2006) Medium (prefers shallow coastal waters in summer; deep slope waters in winter) Medium (seasonal migrants, late summer-fall) Spiny dogfish Atlantic Bluefin tuna Squalus acanthias Thunnus thynnus thynnus No status No status Atlantic Ocean/Atlantic population Atlantic Ocean, Mediterranean Sea Special Concern (2009) Endangered (2011) Medium (widely distributed over Scotian Shelf and Slope; (nearshore summer; offshore winter) Medium (widely distributed over Scotian Shelf and Slope; seasonal migrants, July Nov) MARINE MAMMALS Concentration areas: Whales and seals are found throughout the Scotian Shelf, with particular concentrations around Sable Island and the Gully. Baleen whales: move into the area as early as March along the Shelf Edge and are associated with Western and Emerald Banks. By summer, the humpback, blue, fin, sei, northern right and minke whales have spread across the Scotian Shelf and are closely associated with the deeper waters and Shelf Edge. Numbers of whales are highest during the period July to November. 38 Only species that are on Schedule 1 are regulated under the SAR Act. Includes species that had been assessed by COSEWIC after October 1999 when Parliament passed the Act in December 2002; and species assessed or re-assessed after December 2002 and added to Schedule 1 by the Governor in Council on the recommendation of the Minister. 2.15

22 Table 2 Ecosystem Components SW Scotian Slope Area Toothed whales: include the sperm, northern bottlenose, and pilot whales, which can be found on the Shelf year-round with greater numbers during the summer and early fall. Smaller toothed whales include the common, white-sided, white-beaked and striped dolphins, and the harbour porpoise. A non-migratory, breeding population of northern bottlenose whales can be found in the Gully area year-round. Seals: The dominant seals in the study area include grey and harbour seals. They are widespread over the Shelf and inshore waters. However, harp, ringed and hooded seals have become more common on the Scotian Shelf. MAMMAL SPECIES AT RISK Common name Latin name SARA Sched. Range Risk category Likelihood of Occurrence in SW Scotian Slope Area Blue whale Balaenopter a musculus 1 Atlantic and Pacific Oceans/Atlantic population Endangered (2002) Medium (range widely in both coastal waters and open ocean; seasonally present, spring-fall) Fin whale Balaenopter a physalus 3 Atlantic and Pacific Oceans Special Concern (2005) Low (usually found in coastal waters) Humpback whale Megaptera novaeanglia e 3 Western North Atlantic Ocean Special Concern (2004) Low (usually found in coastal areas) Northern Bottlenose whale Hyperoodon ampullatus 1 North Atlantic Endangered (2011) Low (Gully MPA southernmost area where Scotian Shelf population routinely found; resident population) North Atlantic Right whale Eubalaena glacialis 1 North Atlantic Endangered (2003) Low (seasonal migrants, summer-fall; usually found in coastal waters; congregate (feeding) in Roseway Basin on Western Scotian Shelf) Sowerby s Beaked whale Mesoplodon bidens No status North Atlantic Special Concern (2006) High (Rare sightings have occurred in deep water along continental edge/slope during summer months) TURTLES Three species of sea turtle are known to occur off the Atlantic Canadian Coast, including the leatherback, Atlantic loggerhead and Kemp s Ridley. Another species, the green turtle, is a wide ranging species and may be an occasional visitor to the area. TURTLE SPECIES AT RISK Common name Latin name SARA Sched. Range / Population Risk category Likelihood of Occurrence in SW Scotian Slope Area Leatherback turtle Dermochelys coriacea 1 Atlantic and Pacific Oceans Endangered (2001) Medium (wide- ranging over Scotian Shelf and Slope during summer months) Loggerhead turtle Caretta caretta No status Atlantic Ocean Endangered (2010) Medium (wide- ranging over Scotian Shelf and Slope during summer months) BIRDS Species: over 25 species of seabirds have been observed on the Scotian Shelf. The offshore seabird community of the Scotian Shelf consists primarily of shearwaters and storm-petrels during the summer months, and in winter, kittiwakes, fulmars and alcids (Dovekie, Common and Thick-billed Murres, Razorbill and Atlantic Puffin). The endangered Roseate Tern has been observed nesting on the Sable Island in previous years. The Ipswich Sparrow, a species of special concern, nests almost exclusively on Sable 2.16

23 Table 2 Ecosystem Components SW Scotian Slope Area Island. Both species migrate seasonally between Sable Island and southerly overwintering locations. Distribution: depends on availability and distribution of preferred prey and breeding status of the species. Most species in the offshore waters are truly pelagic, spending all their time at sea. However breeding gulls and terns from Sable Island may be present in the vicinity of the island. BIRD SPECIES AT RISK Common name Latin name SARA Sched. Range / Population Risk category Likelihood of Occurrence in SW Scotian Slope Area Roseate tern Sterna dougallis 1 Atlantic, Indian and Pacific Oceans Endangered (2002); Recovery strategy (2006) Low (Primarily associated with Sable Island and few islands off coastal Nova Scotia); may overlap during seasonal migrations to/from southerly overwintering grounds) Ipswich sparrow (Savannah sparrow) Passerculus sandwichensis princeps 1 Nova Scotia - Sable Island Special Concern (2000) Low (Primarily associated with Sable Island; may overlap during seasonal migrations to/from southerly overwintering grounds) MARINE BENTHOS Dominant benthos: Benthic faunal distribution is predicted to be patchy, and low in abundance and diversity based on observations in nearby exploration leases. The benthic community is likely to be dominated by invertebrate groups such as (in order of relative abundance) anemones, ophuroids, polychaetes, sponges, bivalves, gastropods, and sea urchins. The absence of hard substrate and low currents likely limits coral development although black corals and sea pens have been observed in water depths up to 3000 m off of the Northeast Channel (E. Kenchington, DFO Science, pers. comm.) Commercial invertebrates: Offshore lobster, Red crab and Jonah crab, and seasonally the Northern shortfin squid. 2.17

24 2.4.2 Ocean Use Commercial Fish & Fisheries Groundfish: Commercial fisheries for most groundfish species take place primarily on the banks and basins overlying the Scotian Shelf itself and therefore do not overlap with the lease block areas. Commercial groundfish species include redfish, cod, haddock, Atlantic halibut, pollock, skate, white hake, catfish, monkfish, plaice, flounders, turbot and argentine. Ground fishing gear includes longlines and bottom trawls. Longline fishing for halibut takes place primarily along the edges of the Scotian Shelf and associated feeder canyons area from January to April; usually at a depth range of 600-1,000 m. Cusk, a groundfish SAR species, is occasionally caught as bycatch in this fishery. (Refer to Figure 7) Pelagics: Fishing for large pelagics such as tuna, swordfish and sharks is concentrated along the Scotian Shelf break and slope, almost exclusively in water depths ranging between 200 and 1000 m. This fishery primarily uses drifting or floating longlines (with baited hooks) which can be several kilometers in length. A small percentage of swordfish are also fished using harpoon. Harpooning is used by a limited number of fishers to harvest swordfish. (Refer to Figure 8) Shellfish: Shellfish fisheries along the southwestern Scotian Slope mainly involve the use of large offshore traps to harvest lobster, Jonah crab and deep-sea red crab mainly in deepwater canyons along the slope. In summer, lobsters move from deeper waters ( m) to shoal waters on the banks. Jonah crabs, which are found primarily at depths of m, are fished as a by-catch in the lobster fishery. The deep-sea red crab is fished mainly over mud, sand and hard bottoms at water depths of m. (Refer to Figures 4,5,& 6) Fisheries research surveys: include opportunistic surveys and regular surveys, such as: - Summer groundfish research vessel survey (Refer to Figure 12) - 4VWX halibut survey - 4VsW sentinel survey from spring to fall 2.18

25 Other Ocean Uses Commercial Shipping: Offshore NS accommodates considerable commercial shipping to and from the eastern seaboard of the US and from the Great Lakes and Europe. There is no single corridor by which the vessels pass. Commercial shipping follows dedicated routes and procedures upon nearing Halifax and the Strait of Canso. Outside of these controlled areas, mariners have discretion as to the selection of their preferred routing. (Refer to Figure 9) Military Activity: The Department of National Defense (DND) conducts training and operations in various areas designated as Operations Areas off the coast of NS. To date, there have been no interactions between offshore exploration activities and military training exercises because oil and gas proponents are obligated to consult with DND to determine potential interactions with training exercises prior to the start-up of operations. Additionally, it is understood that there are several offshore sites where, in the past, munitions have been dumped. Proponents are also obligated to consult with DND to determine potential interactions with unexploded munitions prior to activity commencement. (Refer to Figures 11 & 13) Petroleum Industry: There has been much 2D/2D seismic activity on the Scotian Shelf and Slope areas over the past years. More than 200 wells have been drilled offshore Nova Scotia (including several wells in the vicinity of the NS11-1 lease block area) since Mobil Canada spudded the first well on the Scotian Shelf in June To date, 23 significant discoveries and eight commercial hydrocarbon discoveries have been made offshore Nova Scotia. These discoveries have led to three major development Projects, including Cohasset-Panuke, SOEP, and most recently Deep Panuke, with first gas anticipated in the fall of There have been no exploration activities on the Scotian Shelf since 2004/5. (Refer to Figures 1 & 14) Seabed Cables: Several subsea telecommunication cables traverse though over the Scotian Shelf and Slope areas including the active Hibernia (Atlantic) Section A and D telecommunication cables which pass through the NS11-1 lease block area. (Refer to Figure 10) 2.19

26 3 ENVIRONMENTAL ASSESSMENT SCOPING The scoping for this SEA is intended to be consistent with guidance received from the CNSOPB in the SEA Scoping document for this Project in August, 2011 (Refer to Appendix B ). The main purpose of SEA scoping was to determine the likelihood of interaction of potential project pathways (i.e., discharges, emissions, spills, impact with physical structures) with selected VECs in order to focus the environmental effects assessment for the SEA (Section 4). The scoping also identified Information data gaps and outlined specific restrictive or mitigative measures that were considered during the environmental effects assessment for this SEA which may also have applicability to subsequent exploration project-specific environmental assessments. 3.1 REGULATORY CONTEXT Section 2.1 provides information on regulatory context with regard to environmental assessment and work authorization requirements. Additional relevant legislation and guidelines include the following: Fisheries Ac 39 t (DFO) Statement of Canadian Practice with respect to Seismic Sound in the Marine Environment 40 (DFO) Canadian Environmental Protection Act 41 (Environment Canada) Migratory Birds Convention Ac 42 t / Regulation (Environment Canada) Species at Risk Act (SARA) 43 (Environment Canada Canadian Wildlife Act 44 (Environment Canada) Navigable Waters Protection Act 45 (Transport Canada) Sable Island Regulations; Canada Shipping Act 46 (Transport Canada) Offshore Waste Treatment Guidelines 47 (CNSOPB) Offshore Chemical Selection Guidelines (CNSOPB) 48 Compensation Guidelines Respecting Damage Relating to Offshore Petroleum Activity (CNSOPB)

27 Nova Scotia Offshore Drilling and Production Regulations (CNSOPB) KEY DOCUMENTS REVIEWED FOR ISSUES SCOPING CEAA Cumulative Effects Assessment Practitioners Guide 51 CEAA operational policy statement Addressing Cumulative Environmental Effects under the Canadian Environmental Assessment Act 52 CEAA 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 Relevant deepwater exploration project information (i.e., Bepco, Torbrook (EnCana), Annapolis (Marathon), Newburn (Chevron) 53 ) in the Study Area The Scotian Shelf: An Ecological Overview for Ocean Planning 54 Seismic Generic Assessment 55. Environmental Assessment Biophysical Data Gap Study Petroleum Exploration Activities on the Offshore Scotian Shelf and Slope 56 Environmental Effects of Exploration Drilling Offshore Canada. 57 Environmental Assessment of Exploration Drilling off the Scotian Shelf 58 The Scotian Shelf: An Atlas of Human Activities 59 Acoustic Monitoring and Marine Mammal Surveys in The Gully and Outer Scotian Shelf before and during Active Seismic Programs 60 Consideration of the Potential Impacts on the Marine Environment Associated with Offshore Petroleum Exploration and Development Activities 61 The Marine Ecosystem of Georges Bank 62 Assessing Ballast Water Exchange Zones on the Scotian Shelf and Gulf of Maine 63 Atlas of important habitat for key fish species of the Scotian Shelf, Canada 64 Ecologically and Biologically Significant Areas of the Scotian Shelf and Environs: A Available on CNSOPB website at or contact CNSOPB directly (refer to Section for contact details)

28 Compilation of Scientific Expert Opinion 65 Comprehensive Study Report for Exploration Drilling Program on EL2407 BEPCO Canada Company PLANNED CONSULTATION / COMMUNICATIONS PROGRAM The following regulatory agencies and stakeholder groups / interests were consulted during the preparation of the SEA either individually and/or through the CNSOPB Fisheries Advisory Committee (FAC) 67 Fisheries and Oceans Environment Canada (incl. Canadian Wildlife Service) NS Dept of Fisheries and Aquaculture DND CFB Halifax for training exercises, unexploded ordnances Hibernia Atlantic (Telecommunication cable industry) Ecology Action Centre Atlantic Policy Congress of First Nation Chiefs Native Council/Maritime Aboriginal Peoples Council/ Netukulimkewe l Commission Atlantic Herring Co-op Ltd/Full Bay Scallop Association Results of consultation are summarized in Section SELECTION OF VALUED ENVIRONMENTAL COMPONENTS (VECS) Refer to Table 3. There must clearly be a pathway(s) between each VEC and petroleum exploration activities. Proposed VECs 68 for the assessment are : Species-at-Risk (SAR) Species designated as at-risk under the SARA in the Study area are listed in Table 1. The rationale behind the selection of a SAR occurring in the study area as a VEC representative for an ecosystem group (e.g. Blue whale as a VEC representative for baleen whales) is that SAR by definition are more sensitive particularly those designated as endangered or threatened and on Schedule 1; hence, if the SAR VEC is not impacted by an exploration activity (e.g., if Blue whale is not impacted); then other species of that group (i.e., other Special meeting of the FAC re SEA was held on September 7, The selection of Species-at-Risk and Special Areas as VEC categories has been adopted since species-at-risk 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. A secure species/population is one that has not been deemed at risk under SARA or by COSEWIC (thereby requiring a higher level of consideration (and protection) in an environmental assessment) or in the case of fish/shellfish, can be harvested commercially. Further, mitigation measures proposed in an environmental assessment to protect species listed under SARA and speciallydesignated environmental areas should also reduce the risk of adverse environmental effects on secure components of the ecosystem. As stated, 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 (For further details, refer to Appendix A Environmental Risk Assessment Process). 3.3

29 baleen whales) are not likely to be impacted. As per the SAR Act, the EA will consider impacts on a listed wildlife species, its critical habitat or the residences of individuals of that species. The 2004 Canadian Wildlife Service Environmental Assessment Best Practice Guide for Wildlife Risk in Canada will also provide guidance for developing consequence criteria related to effects on species and their habitats. Special Areas Designated areas of special interest for ecological or conservation purposes that could be potentially impacted by petroleum exploration activities. The scope of the assessment also includes the inhabitants of the special place which may not be covered under the SAR VEC. Commercial Fish and Fisheries (CF&F) Commercial fish and fisheries that could be impacted by petroleum exploration activities. The focus will be on potential disruptions to fishing activities through impacts on fisheries resources, displacement from current or traditional fishing areas or gear loss or damage resulting in a demonstrated financial loss to fisheries interests. 3.5 POTENTIAL INTERACTION OF PROJECT ACTIVITIES WITH VECS Refer to Table 3 Table 3 Environmental Components Marine Fish Selection of Valued Environmental Components (VECs) Scoping Considerations Cusk (a groundfish) 69, Bluefin tuna (a large pelagic fish) and Porbeagle shark (a large pelagic shark) are representative of the SAR fish types that are most likely to occur in the NS11-01 lease block area. Cusk are captured as incidental bycatch in the halibut longline (bottom gear) fishery which takes place along the edge of the Scotian Slope. COSEWIC has recently (2011) recommended that Bluefin tuna, a highly valued commercial species, be listed as an endangered species. The recent discovery of the endangered Porbeagle shark nursery area on Georges Bank is particular germane to this assessment. Hence, the Porbeagle shark was selected over the Blue shark (Special Concern status) which is also predicted to have a high likelihood of occurring in the NS11-1 lease block area (Table 2). [Note: The Swordfish resource will be assessed under the Commercial Fish and Fisheries VEC (see below)]. Selected VEC SAR (Cusk, Bluefin tuna, Porbeagle shark) CF&F (Swordfish) 69 Roughead grenadier, a deepwater species of special concern which has been fished commercially in the past off the SW Scotian Slope (I. Wentsell, Atlantic Policy Congress of First Nation Chiefs- pers. comm.), would also have been suitable SAR indicator groundfish species but the SW Scotian Slope is at the southern edge of its range (compared to the Cusk where the SW Scotian Slope area is at the centre of its abundance in the Atlantic refer to Cusk one-pager in Section 4.1.2) 3.4

30 Table 3 Environmental Components Marine Mammals Selection of Valued Environmental Components (VECs) Scoping Considerations Assessment will focus on endangered species that are highly likely to occur in the SEA study area in particular the NS11-01 lease block area. Toothed and baleen whales exhibit differences in hearing range and behaviours. Hence, assessment will use the endangered Sowerby s whale (a toothed whale) and the Blue whale (a baleen whale, SARA Sched. 1) as VECs to evaluate potential effects of exploration activities on marine mammals. The endangered (SARA Sched. 1) North Atlantic Right whale will be considered in the SEA under the Roseway Basin Right Whale Sanctuary Special Area VEC category. Selected VEC SAR (Sowerby s whale, Blue whale) Roseway Basin (North Atlantic Right whale) Sea Turtles Marine Birds Marine Benthos The Leatherback turtle was chosen as the indicator turtle SAR since it has endangered status is on SARA Schedule 1 and occurs widely over the SEA study area. An area off Georges Bank has been reported to be an important feeding area presumably because of high jellyfish concentrations, the preferred food of Leatherbacks. There are two marine bird Sched. 1 SAR species (Roseate tern (Endangered) & Ipswich sparrow (Special Concern) that occur in the SEA Study Area. The former is an endangered (SARA Sched. 1) species, which are closely associated with Sable Island 70, migrate seasonally to/from more southerly overwintering grounds over marine areas including possibly the SEA Study Area. The only commercially important benthic resources in the SEA Study Area are Offshore lobster (crustacean) and Sea scallop (bivalve). As such, these two species will be assessed under the VEC Commercial Fish and Fisheries. The Offshore lobster resource is fished along the southwestern Scotian Slope in depths generally shallower than the NS11-1 lease block area. The Sea scallop, which has a patchy distribution over the Scotian Shelf and Georges Bank, is a filterfeeder and sedentary making it potentially sensitive to environmental contaminants (i.e., from a spill release). Coral concentrations have also been found in the Northeast Channel, which lies between Georges Bank and the NS11-1 lease block area. Corals will be assessed under the Special Areas VEC category specifically, the Northeast Channel Coral Conservation Area. SAR (Leatherback turtle) Sable Island (Roseate tern, Ipswich sparrow) Commercial Fish and Fisheries (Sea scallop, Offshore lobster) Special Area (Northeast Channel Coral Conservation Area - Corals) 70 In the event of a large oil spill or release from a blowout, it is unlikely that oil will actually reach Sable Island. 3.5

31 Table 3 Environmental Components Special Areas Selection of Valued Environmental Components (VECs) Scoping Considerations There are no designated special environmental areas within the NS11-1 lease block area. However special areas (including inhabitants) in the SEA Study Area (i.e., Georges Bank, Sable Island, Northeast Channel Coral Conservation Area, Haddock Box Nursery Area, and Roseway Basin Right Whale Sanctuary) may be potentially affected in the event of a spill or by seismic noise emissions. Selected VEC Special Areas (Georges Bank O&G Moratorium Area, Sable Island National Park, Northeast Channel Coral Conservation Area, Haddock Box, Roseway Basin Right Whale Sanctuary) Commercial Fish & Fisheries Oil and gas exploration activities could potentially interact with commercial fisheries directly (i.e., interaction in the field) and indirectly (i.e., effects on fish and shellfish resources). Key fisheries in general vicinity of the lease block area that have potential to be affected by are longlining (floating gear) for Swordfish and tunas; trap fishing (fixed gear) for Offshore lobsters and dragging (mobile gear) for Sea scallops on Georges Bank and offshore banks on the Scotian Shelf. DFO conducts various fisheries research surveys in the Study area. The effect on Swordfish and Sea scallop resources will be assessed (see Marine Benthos above). Commercial Fish and Fisheries (Swordfish, Sea scallop, Offshore lobster) 3.6

32 Bluefin Tuna Porbeagle shark Cusk Sowerby s Whale Blue Whale Leatherback Turtle Swordfish Off. Lobster Sea scallop Sable Island Haddock Box Roseway Basin NE Channel Georges Bank STRATEGIC ENVIRONMENTAL ASSESSMENT Table 4 Interaction of VECs with Exploration Activities Pathways/Activities SAR CF & F Special Areas Project Activities and Pathways Notes Focus Of SEA Noise (seismic airguns, wellsite surveys & deepwater drilling) X X X X X X X X X X X Mortality or injury to marine mammals as a result of seismic activity is unlikely but possible effects of a behavioral nature (e.g., displacement and/or migratory diversion, changes in vocalization patterns) or of a physiological nature (i.e., in response to increased stress levels) may occur. Few, if any effects of noise, are predicted for large pelagic fish species such as swordfish, sharks and tunas or invertebrate species such as lobsters, crabs, or scallops or corals which do not contain sound sensitive organs such as air bladders like those found in some fish species and reside on the sea floor far from the seismic sound source on the sea surface. Noise from seismic airguns is also predicted to be at levels well below those shown to harm concentrations of fish (or shellfish) eggs/larvae but may affect the behaviour of juvenile and adult fish in the SEA Study Area. Sound levels from wellsite surveys are much less and will attenuate faster than sound from a 2D/3D seismic survey; and duration will be only a few days. Potentially harmful noise levels from drilling operations are predicted to be restricted to the immediate vicinity of the drilling platform and potentially masked by noise from nearby standby/support vessels and fishing trawlers. All MM & Sea turtle SARs Roseway Basin Rt Whale Sanctuary, Haddock Box Nursery Area & Georges Bank O&G Moratorium Area Therefore, the focus of the SEA will be potential effects of 2D/ 3D seismic only on all MM and Sea turtle SAR species and commercial fish resources in any 3.7

33 Bluefin Tuna Porbeagle shark Cusk Sowerby s Whale Blue Whale Leatherback Turtle Swordfish Off. Lobster Sea scallop Sable Island Haddock Box Roseway Basin NE Channel Georges Bank STRATEGIC ENVIRONMENTAL ASSESSMENT Table 4 Interaction of VECs with Exploration Activities Pathways/Activities SAR CF & F Special Areas Project Activities and Pathways Notes Focus Of SEA designated Special Area (with such inhabitants) which overlaps the SEA Study Area (Figure 3) that is, Haddock Box Nursery Area, Georges Bank O&G Moratorium Area, & Roseway Basin Right Whale Sanctuary. It should be noted that shutdown and other special mitigation measures (e.g., seasonal restrictions; no operations during periods of limited visibility (i.e., nightime or fog, etc) will be implemented as required to reduce potential for adverse effects on endangered whale and turtle species as per Statement of Canadian Practice with Respect To Mitigation of Seismic Sound in the Marine Environment. Trained wildlife observers will be present on seismic survey vessels. The CNSOPB may require detailed acoustic modeling for any potential future seismic or drilling project in the NS11-01 lease block area. Drill Waste (spent drilling mud and well cuttings) X X X X X X X X X Potential interactions of drill waste are not anticipated for any marine SAR species (with the possible exception of Cusk which is a bottom dwelling species) since all are highly mobile large pelagic species which should readily be able to avoid a plume of discharged drill waste. Commercially harvested invertebrate resources such as Offshore lobster and Sea scallop may also be affected. Effects (acute or chronic, long-term impacts such as reduced growth or reproductive potential) are predominantly associated with the smothering of slow-moving or sessile benthic organisms. However, Environmental Effects Cusk Offshore lobster resource 3.8

34 Bluefin Tuna Porbeagle shark Cusk Sowerby s Whale Blue Whale Leatherback Turtle Swordfish Off. Lobster Sea scallop Sable Island Haddock Box Roseway Basin NE Channel Georges Bank STRATEGIC ENVIRONMENTAL ASSESSMENT Table 4 Interaction of VECs with Exploration Activities Pathways/Activities SAR CF & F Special Areas Project Activities and Pathways Notes Focus Of SEA Monitoring (EEM) results at various drilling sites off Atlantic Canada (including deep water slope locations) have demonstrated that changes in the diversity and abundance of benthic organisms have been generally limited to within 1000 m of the drill site and returned to baseline conditions within 12 months of cessation of drilling discharges using Synthetic Based Mud (SBM) 71 or Enhanced Mineral Oil Based Mud (EMOBM) in combination with Water Based Mud (WBM). Further, the spatial area for observed biological effects was generally smaller than the area over which drilling muds were detected. Special Areas (and their inhabitants) and Sea scallop beds on the Scotian Shelf and Georges Bank are of sufficient distance away from the NS11-01 lease block to be unaffected by routine drilling discharges. For these reasons, the SEA will focus only on potential effects on Cusk and the Offshore lobster resource. Accidental Oil Spills X X X X X X X X X X X X X X Probability of extremely large spills (>150,000 barrels) from blowouts during exploration drilling off Nova Scotia has been estimated to be one-in-2000 per year (based on 10 wells/year drilling program). Based on trajectory modeling for subsea and surface blowouts at a hypothetical southwestern Scotian slope location (within NS11-01 lease block area) of 10,000 barrels per day (BOPD) of light oil (similar to Cohasset oil) or All VECs 71 Of particular relevance to this SEA were ROV videocamera observations following drilling at the Chevron H-23 Newburn deepwater exploration well on the Scotian slope which revealed an SBM cuttings pile with a radius of 5 m (an order of magnitude less than predicted). 3.9

35 Bluefin Tuna Porbeagle shark Cusk Sowerby s Whale Blue Whale Leatherback Turtle Swordfish Off. Lobster Sea scallop Sable Island Haddock Box Roseway Basin NE Channel Georges Bank STRATEGIC ENVIRONMENTAL ASSESSMENT Table 4 Interaction of VECs with Exploration Activities Pathways/Activities SAR CF & F Special Areas Project Activities and Pathways Notes Focus Of SEA condensate with 250 million cubic feet per day (MMSCFD) of gas, the maximum extent of the thin, narrow oil slick was 15 km (for a surface blowout during winter period; diffusion to 0.1 ppm at 38 hrs). Spill trajectory modeling for the proposed BEPCO project (also on southwestern Scotian slope) indicated that the worst case scenario during drilling was a 100 barrel diesel spill which could travel up to 37 km (to 0.1 ppm). While the Haddock Box Nursery Area is the only Special Area closer than 37 km from the NS11-1 lease block area, the potential interactions with all Special Areas will be assessed since the possibility exists that effects may be more extensive than results of dispersion modeling have indicated under extreme weather conditions (i.e, hurricanes, tropical storms, etc.) or if the migratory pathways of their inhabitants 72 overlap with the SEA Study Area. Air Emissions Atmospheric emissions should be similar to other ocean-going vessels of the same size (Table 3). No detailed assessment is necessary. N/A Presence of Structures X X X X There is a potential for interaction of seismic survey vessels and drilling rigs with fishing gear in particular with floating longlines (i.e., used in large pelagic fisheries) or fixed gear such as traps (i.e., used in offshore crustacean fisheries). There is also potential for interaction of vessel/platform structures (due to CF&Fs Sable Island Inhabitants (R. tern & I. sparrow) 72 Such as the R. tern and I. sparrow (SARA Sched. 1) which are closely associated with Sable Island National Park (designated) and migrate seasonally between Sable Island and southerly overwintering grounds 3.10

36 Bluefin Tuna Porbeagle shark Cusk Sowerby s Whale Blue Whale Leatherback Turtle Swordfish Off. Lobster Sea scallop Sable Island Haddock Box Roseway Basin NE Channel Georges Bank STRATEGIC ENVIRONMENTAL ASSESSMENT Table 4 Interaction of VECs with Exploration Activities Pathways/Activities SAR CF & F Special Areas Project Activities and Pathways Notes Focus Of SEA deck lights/flare on drilling rig) with two migratory bird SARs (R. tern & I. sparrow) on route to/from Sable Island and southerly overwintering grounds ASSESSMENT BOUNDARIES Spatial boundaries: For purposes of this SEA, the Study Area (Refer to Figure 3), a 75 km distance surrounding the NS11-01 lease block area, was determined based on the following rationale: overlaps with most of the SW Scotian Slope (and Shelf) area covers the estimated largest zone of influence from either a large accidental diesel oil spill (37 km) 73, condensate blow out 74 (<15 km) or the distances (<10 km) at which the acoustic level (160 db re 1 μpa SPL ) from a 2D or 3D seismic airgun survey has been known to affect the behaviour of marine mammals 75 (or sea turtles) or has been observed to affect distribution, local abundance, and catch rates (75 km) for some commercial fish species (cod, haddock) 76 ; accounts for potential wind-driven forces and/or occasional intrusions of warm-core eddies 77 which may carry oil (diesel or condensate) further on to shelf areas than estimated by spill modeling (see above); overlaps with most of the Special Areas (Refer to Figure 3) in the general vicinity of the NS11-01 lease block [Note: While slightly outside this Study Area, Sable Island National Park (Designation pending) was included in the SEA since it represents the closest land mass/shoreline to be potentially affected by an oil spill]. Temporal boundaries: Approximately five (5) years following release of the SEA report. 73 Based on dispersion modeling carried out for the Bepco EA for a spill of 100 barrels of diesel (Refer to CNSOPB website for detailed information on this project) 74 Based on dispersion modeling scenario for a hypothetical spill location on the SW Scotian Slope (Refer to Figure 1 and following reference provided in Section Environmental Assessment of Exploration Drilling off the Scotian Shelf 75 Refer to following reference provided in Section Acoustic Monitoring and Marine Mammal Surveys in The Gully and Outer Scotian Shelf before and during Active Seismic Programs 76 Refer to following reference provided in Section Consideration of the Potential Impacts on the Marine Environment Associated with Offshore Petroleum Exploration and Development Activities 77 Refer to following reference provided in Section The Marine Ecosystem of Georges Bank 3.11

37 Figure 3 SEA Study Area Refer to Section 3.6 for explanation of Study Area boundary 3.12

38 3.7 DATA GAPS AND UNCERTAINTIES 79 Key environmental data gaps 80 relevant to the scope and study area of this Project include: Identification of potential sublethal or longer term effects on individual fish and benthic invertebrates in the immediate vicinity of a seismic array; Detection of (and potential effects on) marine mammals and sea turtles in low light (i.e., at night) and in foggy conditions or beneath the sea surface in the immediate vicinity of a seismic array; Information on deep water (>1000 m) bottom-dwelling invertebrates such as corals and sponges and epi-, meso and bathypelagic fish; Understanding of Zone of Influence (ZOI) and effects (if any) on marine mammal (particularly at-risk species) for noise emanating from floating platforms used for deepwater drilling (i.e., Scotian Slope area); and Knowledge of critical periods (i.e., mating and calving) for marine mammals particularly at-risk species. [Note: The Exploration and Production (E&P) Sound and Marine Life Joint Industry Programme has commissioned a broad range of research studies with participation of the scientific community in both industry and academia to directly address identified knowledge gaps with respect to noise effects from on all sources of sound produced by the offshore oil and gas industries.] 79 These data gaps do not compromise the ability to identify the likelihood of potentially significant impacts with an adequate level of certainty for this assessment. 80 This section largely drawn from the following three reports referenced in Section 3.2: 1. Environmental Assessment Biophysical Data Gap Study Petroleum Exploration Activities on the Offshore Scotian Shelf and Slope 2. Consideration of the Potential Impacts on the Marine Environment Associated with Offshore Petroleum Exploration and Development Activities 3. The Scotian Shelf: An Ecological Overview for Ocean Planning 3.13

39 4 ENVIRONMENTAL EFFECTS ASSESSMENT 4.1 APPROACH USED FOR STRATEGIC ENVIRONMENTAL ASSESSMENT This SEA uses an environmental risk assessment (ERA) approach (For details, refer to Appendix A ), which is consistent with guidance from the CEA Agency for a SEA. The SEA addresses issues outlined in a scope which received commentary from Environment Canada, Fisheries and Oceans Canada and key stakeholders. Valued Ecosystem Component categories to be considered in the SEA are Species-at-Risk, Special Areas and Commercial Fish and Fisheries. The cumulative environmental effects assessment focuses on the VEC category Other Ocean Uses. The SEA also identifies information data gaps and general restrictive or mitigative measures that should be considered for application to any subsequent exploration projects in the NS, including seismic programs and exploratory wells which will require project-specific environmental assessments prior to program approval. 4.2 EFFECTS ON SPECIES AT RISK (SAR) Sowerby s Beaked Whale, Blue Whale and Leatherback Turtle 81 SARs that are closely associated with certain Special Areas such as the Roseate tern and Ipswich sparrow (Sable Island National Park (designated) and the North Atlantic Right whale (Roseway Basin Right Whale Sanctuary) are assessed under the applicable Special Area (Sect. 4.4) 4.1

40 Species At Risk Sowerby s Beaked Whale (Mesoplodon bidens) Status COSEWIC: Special Concern (November 2006) SARA: Under Consideration Population (Northwest Atlantic Ocean) There are no estimates of population size. This whale species is rarely sighted or identified suggesting low population numbers or this may reflect limited effort in appropriate areas. Description and Behavior The Sowerby s beaked whale is a small- to medium-sized toothed whale An adult Sowerby s beaked whale is typically m long and dark grey in colour. They have a small head with a long, narrow beak and a small triangular dorsal fin approximately 2/3 s of the way back from the beak to flukes. Their tail flukes generally have no centre notch, and they have relatively long pectoral fins. They are considered deep divers. Although the data are inconclusive, length at sexual maturity for both sexes is approximately 4 m. They appear to be social, generally sighted in groups of 2-10 animals, and mass shore strandings have occurred. Like most other beaked whales, they probably avoid powered vessels. Threats There is evidence that beaked whales are vulnerable to human-created, under-water noise pollution, such as ship propellers, drilling, and explosions. They are also vulnerable to ship strikes, fishing gear entanglement, and toxins in the water Killer whales and large sharks are their only probable predators. Habitat and Distribution. This species is found only in the North Atlantic and is most often sighted in deep water, along the continental shelf edge and slope - rarely seen in coastal waters. Their distribution is poorly known, as few at-sea sightings have been confirmed. They are considered to range offshore from Cape Cod to Davis Strait in the western Atlantic, and from Norway to Spain in the eastern Atlantic. In the mid-atlantic the species ranges from Iceland to the Azores and Madeira. The Government of Canada has designated the Gully (a large deep water canyon off the coast of Nova Scotia where Sowerby s beaked whales have been sighted) as a Marine Protected Area (MPA) under the Oceans Act. Regulations for this MPA "prohibit the disturbance, damage, destruction or removal of any living marine organism or any part of its habitat within the MPA". Distribution of Sowerby s Beaked Whale. Shaded areas represent general locations of known strandings or sightings (above). Group of Sowerby s Beaked Whales surfacing in the North Atlantic (below). Breeding Time and Location May be from late winter to spring unknown location Diet Mostly deep-water fish and squid. References Sowerby's Beaked Whale. Department of Fisheries and Oceans COSEWIC COSEWIC assessment and update status report on the Sowerby s beaked whale Mesoplodon bidens in Canada. Committee on the Status of Endangered Wildlife in Canada. Ottawa. vi + 20 pp. ( CW Azores Home Page. Photo- A female Sowerby s Beaked Whale breaching surface 4.2

41 Species Blue whale (Balaenoptera musculus) Family Rorquals (Balaenopteridae) SARA Population Atlantic Ocean <250 mature individuals (NW Atlantic) Global estimates range from Indications of low calving rate and low rate of recruitment to the studied population SARA Status Endangered (2005), Schedule 1 Description Largest animal known to have lived on Earth, up to 30 m (25 m in NW Atlantic) and 180 tons Massive jaw; dorsal fin far back on the body Typical mottled pigmentation allows ID tracking Threats Whaling reduced the original population (~1,500 individuals were taken east off Canada from out of >11,000 taken in the North Atlantic through 1960) Ship strikes (primary threat), increasing whale watching; entanglement in fishing gear; pollution and potential long-term effect of climate change on abundance of prey Habitat and Distribution Both coastal and open ocean; feeding aggregations often found at the shelf edge (krill concentrations) Found globally in all oceans; historically most abundant in southern oceans Thought to migrate from feeding high-latitudes in summer / fall to low-latitudes in winter (winter distribution not well understood) Two separated populations off eastern (from Scotian Shelf to Davis Straight) and western Canada Regular sightings in the Gulf and estuary of St. Lawrence from Apr-Dec Occasional sightings on the Scotian Shelf and slope from May-Oct; consistently found in the Gully area Gully MPA Movement of Whales Known Regular Occurrence Probable Regular Occurrence Diet Breeding Time and Hearing Range Almost solely krill (2-4 tons/day) Location Unknown Unknown; vocalizations Hz Behavior Mate and calve from late fall to mid-winter; single calf every 2-3 years after a month gestation Feed by gulping large quantities of water and krill, then strained through the baleen plates Breath 6-20 times at the surface over 1-5 minute, then dive for usually 5-15 min (up to 36 min recorded) Intense long duration call, appear to have greater acoustic power than any other animal (188 db re1μpa) References COSEWIC COSEWIC assessment and update status report on the Blue Whale Balaenoptera musculus in Canada. Committee on the Status of Endangered Wildlife in Canada. Ottawa. vi + 32 pp. Breeze, H., D.G. Fenton, R.J. Rutherford and M.A. Silva The Scotian Shelf: An Ecological Overview for Ocean Planning. Canadian Technical Report of Fisheries and Aquatic Sciences

42 Species Leatherback turtle (Dermochelys coriacea) SARA Population Pacific and Atlantic Ocean Global decline of >70% in 15 years 34,500 nesting females in Pacific (1995); Atlantic population more stable; no estimate for Canadian waters SARA Status Endangered (2002), Recovery Strategy (2007), Schedule 1 Description Largest of sea turtles; up to 2 m long; average weight of 500 kg Only turtle that lacks a hard shell, but instead has a leathery, cartilaginous covering Paddle-shaped front flippers longer than half the animal s body Black or dark blue backs with white / pink blotches; white belly Threats Destruction of nest on open beaches by flooding and erosion Decreased nesting by increased human use of beaches Predation and harvest of eggs by humans for consumption Potentially global warming, since sex ratio of the nests is dependent on temperature In Canadian waters, entanglement in fishing gear and ingestion of floating debris mistaken for jellyfish A long lifespan, very high rates of egg and hatchling mortality, and a late age of maturity makes it unusually vulnerable to even small increases in mortality rates Habitat and Distribution Highly migratory; males spend their entire lives in open sea; females come out of water to nest on beaches Most widely distributed of sea turtles, from N to 27 S in the Atlantic, Pacific and Indian Oceans Major nesting beaches located in Mexico, Costa Rica, French Guiana, Suriname, and Gabon Regularly observed migrating off eastern Canada from Jun-Oct, likely because of high prey concentrations (chiefly jellyfish). Shelf edge and slope areas appear to be important for leatherbacks; however, turtles have also been sighted in nearshore waters; they may forage on the Shelf for extended periods before migrating south. Leatherback Nesting Beaches Tagged Leatherback Migration Patterns Distribution Diet Breeding Time and Location Hearing Range Jellyfish and other soft-bodied vertebrates Unknown Unknown Behavior Females nest ~6 times at 8-12 day intervals in one nesting period (Mar-Jul), which occurs every 2-3 years. They excavate a nest with their hind flippers and lay eggs. Eggs hatch in about days. Unlike other sea turtles, may change nesting beaches, though they tend to stay in the same region Adults have few natural predators, only sharks and killer whales Can retain internal body temperature 18 higher than ambient, allowing them to survive in cold waters References COSEWIC COSEWIC assessment and update status report on the leatherback turtle Dermochelys coriacea in Canada. Committee on the Status of Endangered Wildlife in Canada. Ottawa. vii + 25 pp. Breeze, H., D.G. Fenton, R.J. Rutherford and M.A. Silva The Scotian Shelf: An Ecological Overview for Ocean Planning. Canadian Technical Report of Fisheries and Aquatic Sciences Sherrill-Mix, S.A., M.C. James, & R.A.Myers Migration cues and timing in leatherback turtles Behavioural Ecology 19(2)

43 Table 5 Environmental Effects Evaluation for the Marine Mammal SARs: Sowerby s Whale, Blue Whale and Sea Turtle SAR: Leatherback Turtle Description of Potential Effect Mitigation Measures Significance of Environmental Effect 82 Interaction #1: Contamination / oiling from seismic streamer break, accidental large spill of diesel, blowout of condensate/oil, or SBM release during drilling Refer to Table 4 Refer to Tables 1, 4 & 17 Risk Level 3 (Low Risk) A release of gel or fluid from a seismic streamer, light oils such as those likely to result from a diesel spill or a blowout during exploration activities will naturally evaporate and disperse quickly and hence have a very short persistence on the water surface particularly under typical choppy sea conditions (Refer to Table 4). Marine mammals have body coverings, unlike those of birds, that are relatively unaffected by oiling. Spills of light oil or condensate are likely to impair breathing in ways that would tend to repel marine mammals from the area before they are adversely affected. 83 It is not known if sea turtles can detect and avoid oil slicks. SBM released during drilling is not expected to significantly impact marine mammals due to its low toxicity and high dispersion in the water column. Any accidental spill will be reported to the CNSOPB immediately. In addition, the proponent s Emergency Response Plan (Refer to Section 2.2.4) will provide guidance on spill assessment, containment and recovery and environmental effects monitoring. Vessels associated with exploration activities will comply with IMO standards including treatment of routine discharges (i.e., bilge & ballast water) and will have standard spill response kits capable of containing and cleaning up small spills onboard the vessels. Potential interactions with marine mammal and turtle SAR species will be low since seismic survey vessels carry experienced, independent wildlife observers to visually monitor and record marine mammal and sea turtle interactions (if any). Risk of a spill from a seismic streamer break can be eliminated with the use of solid streamers Risk of a release of SBM can be eliminated by the exclusive use of WBM during drilling. Likelihood of Occurrence: E (Highly unlikely to occur 0.1% probability) Consequence: IV (Inconsequential or no adverse environmental effects) Interaction #2: Disturbance from noise during 2D / 3D seismic acquisition Refer to Tables 1 & 4 Refer to Interaction #1 above and to Tables 1, 4 & 17 Records indicate that there has been considerable 2D/3D seismic activity in the lease block area in the past (refer to Figure 14). There has been no documented marine mammal (or sea turtle) mortality as a consequence of seismic surveys (off Atlantic Shutdown and other special mitigation measures (e.g., seasonal restrictions; no operations during periods of limited Risk Level 1 for SARA Sch. 1 species that is, Blue whale & Leatherback turtle (High Risk) Likelihood of Occurrence: E (Highly unlikely 0.1% 82 Significance determined using Table 3, Appendix A following application of mitigation measure(s) indicated. 83 Office of Naval Research (ONR) Office of Naval Research on the Effects of Man-Made Noise on the Marine Environment, Washington, DC, February 9-12,

44 Table 5 Environmental Effects Evaluation for the Marine Mammal SARs: Sowerby s Whale, Blue Whale and Sea Turtle SAR: Leatherback Turtle Description of Potential Effect Mitigation Measures Significance of Environmental Effect 82 Canada or elsewhere in the world). Studies of individual incidents in which whales have stranded and seismic activity has occurred in the same area during the same time have been unable to document a cause and effect link. Nor are there any documented injuries to marine mammals or sea turtles as a result of seismic surveys. The effects that have been found are typical changes in behaviour, such as whales leaving areas where there is seismic activity 84. It is unclear if such a disturbance would be enough to affect seasonal migration or feeding patterns of individual SARs exposed to seismic noise. The NS11-1 leaseblock area is thought to be close to an important feeding area for Leatherback turtles (D. Fenton, DFO pers. comm.). With the absence of reliable information on the levels of sound likely to cause hearing damage in most marine mammal species, the present scientific consensus is that adverse hearing damage in a marine mammal will not arise at received transient sound levels of <180 db re Sea turtles are not expected to be more sensitive to noise than marine mammals. visibility (i.e., nightime or fog, etc); use of Passive Acoustic Monitoring (PAM)) will be implemented as required to reduce potential for adverse effects on marine mammal and turtle SARs (notably the Blue Whale and the Leatherback turtle which are SARA Schedule 1 endangered species) as per Statement of Canadian Practice with Respect To Mitigation of Seismic Sound in the Marine Environment. Detailed acoustic modeling for any potential future seismic or drilling project in the NS11-01 lease block area. probability) Consequence: I (Results in a non-permitted contravention of any of the prohibitions as stated in Sections incl. & 58 of SARA 85 to protect wildlife species listed as endangered or threatened on Schedule 1) Risk Level 3 for Sowerby s whale Likelihood of Occurrence: E (Highly unlikely 0.1% probability) Consequence III: Results in a non-permitted contravention of any of the prohibitions as stated in Sections incl. & 58 of SARA to protect wildlife species listed on Schedules 2 or 3 or any priority species recommended for potential listing by COSEWIC 84 NMFS National Marine Fisheries Service (Office of Protected Resources) Workshop on Acoustic Criteria, Silver Spring, MD, Sept 9-12, Many marine species protected under SARA are also protected under the Fisheries Act. For a fish as defined under the Fisheries Act, a significant adverse effect is one that results in an unauthorized destruction of fish by any means other than fishing as required under Section 32. For fish habitat as defined in the Fisheries Act, a significant adverse effect is one that results in an unmitigated or non-compensated net loss of fish habitat as required in a Fisheries Act Authorization under Section 35(2). It also includes the release of a deleterious substance under Section 36 of the Fisheries Act. 4.6

45 4.2.2 Cusk, Bluefin Tuna, Blue Shark, Porbeagle Shark Species Cusk (Brosme Brosme) SARA Population Atlantic Ocean Main population in Gulf of Maine / Scotian Shelf in decline since 1970; decline rate > 90% over three generations with declines in both length and weight Occurs in increasingly fewer survey trawls over time SARA Status Threatened (2003), not on a Schedule yet Description Only member of its genus; one of about 20 cod-like fish species (Gadidae) listed for east coast of Canada Identified by combination of single pollock and single dorsal fin Large, slow-growing to maximum length of 120 cm Threats Fishing is an important source of mortality. Despite a directed fishery, cusk is mainly caught as bycatch in cod, haddock, and pollock and halibut longline fisheries. Fishing resulted in average annual catch of 3469 tons from a max. of 5130 tons in 1973 to a low of 90 tons in 1999 in NAFO Unit 4X. Cusk was placed under bycatch limitations in 1999 with cap of 1000 tons on combined landings of all fleets. 80% of landings come from NAFO Unit 4X near the Bay of Fundy, SW Nova Scotia and Browns Bank. Despite 1999 restrictions, landings exceeded 1000 tons in 2001 and 2002 fishing years. Similar trends are observed in the United States, where the cusk fishery is not under management Hooded seals, cod, halibut and other fish species seem to be the only recorded natural predators Distribution Northern species inhabiting subarctic and boreal shelf waters of the north Atlantic Centre of abundance in western Atlantic is between N latitude in Gulf of Maine and SE Scotian Shelf Also occurs in deep waters along edge of continental shelf off Newfoundland and Labrador, but is rare Only three fish have been taken from the Gulf of St. Lawrence Core distribution in Gulf of Maine overlaps Canada-United States border Habitat Common on rough, rocky or gravel bottoms; seldom taken on bottoms of smooth clean sand Mostly occurs between m at temperatures of 6-10 C; however, can be found to depths of m and temperatures from 2-12 C Diet Crustaceans, shellfishes, starfishes Behavior Bottom-living, slow-moving, sedentary and solitary; do not form large aggregations Spawning occurs from April to July with peak spawning in late June on the Scotian Shelf Distribution of Cusk (East Coast of North America Strategic Assessment Project) Eggs are buoyant and hatch larvae measuring 4 mm. Larvae remain in the upper water column and settle to the bottom at ca mm 50% of adults mature at ca. 50 cm (5-6 years) although this varies among locations. COSEWIC report estimates generation time at 9 years (ca. 60 cm). Maximum age reported is 20 years. References COSEWIC COSEWIC assessment and status report on the cusk Brosme Brosme in Canada. Committee on the Status of Endangered Wildlife in Canada. Ottawa. Vi + 30 pp. 4.7

46 Species At Risk Porbeagle Shark (Lamna nasus) Population (Northwest Atlantic Ocean) In 2005, the abundance of spawning females was estimated at 6075, about 12% to 15% of its 1961 level. Population has remained constant since reduction of fishing quotas in Status - Endangered (COSEWIC May 2004) Description The dorsal side is dark grey to bluish black in colour and its belly is white. They can reach a maximum length of 3m. Males reach maturity at age 8 and females at age 13. Life expectancy is estimated to be between years. Very active swimmers that live in cold water. Threats Over-fishing and bycatches from other long-line fisheries Other potential threats (but to a lesser extent) are climate change, disease, and change in food supply. Habitat and Distribution. Found in the Northwest Atlantic (Canada, Iceland, Greenland, and the US) and in the Southern Atlantic, Southern Pacific, and Southern Indian Oceans. In Canada, this species occurs in an area extending from Newfoundland to the Gulf of St. Lawrence to the Scotian Shelf and the Bay of Fundy. They prefer cold waters ranging from 5-15 C and travel to remain in this temperature range. They are found at depths ranging from surface waters to depths up 1400m. They are typically found near continental shelves but are known to spend time in basins and near the coast. Mating in the Northwest Atlantic is thought to occur on the Grand Banks, off southern Newfoundland, at the entrance to the Gulf of St. Lawrence, and on Georges Bank. Breeding Time and Location During late fall, mature females began migrating south from Canadian waters to the Sargasso Sea (between Bermuda and Cuba) where they remain over the birthing period from March and April (at an average depth of 500m) Diet Mostly pelagic fish in the first half of the year, and mostly ground fish in the last half of the year when they move to shallower waters. References Porbeagle Shark migration patterns Summer spent in Northwest Atlantic. Spawning females migrate to Sargasso Sea birthing grounds in winter to average depths of 500m. Porbeagle Shark. Department of Fisheries and Oceans. DFO, Stock Assessment Report on NAFO Subareas 3 6 Porbeagle Shark. DFO Can. Sci. Advis. Sec. Sci. Advis. Rep. 2005/044. Satellite Tagging Uncovers Surprising Birthing Ground of Porbeagle Sharks. (January 2011). Department of Fisheries and Oceans. Porbeagle Shark. (January 2011). Species At Risk Public Registry. Government of Canada. Current Research on Porbeagle Sharks. Canadian Shark Research Laboratory

47 Species North Atlantic Bluefin Tuna (Thunnus thynnus thynnus) Population Atlantic Ocean 2 stocks (eastern and western) The abundance of spawning fish has declined by 69% over the past 2.7 generations. Status -Endangered (COSEWIC May 2011) Description The body of bluefin tuna is spindle shaped with a pointed snout, and is countershaded with darker colors dorsally (blue or black) and lighter colors ventrally (silver or gray). It is one of the largest bony fishes and can reach lengths of up to 3 m, although they are more commonly found from 0.5-2m in length. They are a slow-growing tuna species and can live up to 40 years with a mean generational time of years. Maturation occurs earlier for the eastern stock (3 years) than the western stock (9 years) Bluefin tuna are endothermic (warm-blooded) Threats Over-fishing Bycatches from other long-line fisheries Oil spills in spawning area (i.e., Gulf of Mexico; Caribbean Sea) Other potential threats (but to a lesser extent) are climate change, disease, and change in food supply. Habitat and Distribution. The bluefin tuna is a highly migratory species. They spawn in sub-tropical waters in the spring and early summer and then travel to the North Atlantic for feeding in Summer and Fall. The western stock spawns in the Gulf of Mexico and migrates North along the Gulf Stream up the east coast of US and Canada as far North as Labrador. The eastern stock spawns in the Mediterranean Sea and then migrates as far North as Iceland. There is some trans-atlantic migration during the feeding periods but both stocks return to their respective spawning grounds each year. They are typically found in surface or sub-surface waters but can dive to metres. Map showing migration patterns of both the eastern and western stocks (divided by management line at 45 degree longitude). Spawning grounds in the Gulf of Mexico and the Mediterranean Sea with Northern migration and some transatlantic migration. Fonteneau 1996 Diet Mainly smaller fish, but also includes; crabs, octopus, jellyfish, salps, and sponges Breeding Time and Location Mediterranean Sea (June- July) and Gulf of Mexico (mid- April and mid-june) Hearing Range Unknown References Fonteneau, A. Interactions between tuna fisheries: A global review with specific examples from the Atlantic Ocean. Status Review Report of Atlantic Bluefin Tuna. - May 20, 4.9

48 Table 6 Environmental Effects Evaluation for marine fish SARs: Cusk, Porbeagle Shark, Bluefin Tuna Description of Potential Effect Mitigation Measures Significance of Environmental Effect Interaction #1: Contamination / oiling from seismic streamer break, accidental large spill of diesel, blowout of condensate/oil, or SBM release during drilling Refer to Table 5 (Interaction #1) Refer to Tables 1, 4 & 17 Risk Level 3 (Low Risk) And Table 5 (Interaction #1) The lack of persistence of spill product will minimize risk to adult fish and fish eggs and larvae and tainting of most species of fish that could occur near the sea surface. The effects from exposure to the water soluble fraction of oil in the water column is expected to be negligible within the concentration ranges observed after an oil spill 86. Interaction #2: Disturbance from noise during 2D / 3D seismic acquisition Refer to Table 5 (Interaction #2) Recent studies involving caged fish have indicated that pressure waves from seismic air guns may cause physiological injuries to fish within approximately 5 m from the source with the most frequent and serious injuries occur at distances up to approx. 1.5 m (DNV, ). In the natural environment, fish are expected to avoid noise produced by the air guns and the towing vessel, hence to move out of the potential zone of physical impact. Since water depths in the NS lease block area are mostly greater than 1000 m, and the seismic source is deployed approximately 2.5 m below sea surface, individuals of bottomdwelling species such as Cusk are not anticipated to be present in the immediate vicinity of the seismic source, hence the risk of injury is highly unlikely (see above). Large pelagic species such as sharks and tunas do not have sound sensitive organs such as swim bladders and thus have low likelihood of being affected by seismic noise. However, seismic noise may temporarily affect the behaviour of other types of fish having swim bladders such as groundfish species (e.g., Cusk, Cod and Haddock) that are known to occur within the SEA Study Area. Fish in the early stages of life are most vulnerable to sound. Since the scale of the seismic Refer to Tables 1, 4 & 17 And Table 5 (Interaction #2) Likelihood of Occurrence: E (Highly unlikely 0.1%) Consequence: III (Results in a non-permitted contravention of any of the prohibitions as stated in Sections incl. & 58 of SARA to protect wildlife species listed on Schedules 2 or 3 or any priority species recommended for potential listing by COSEWIC) Risk Level 2 (Medium Risk) Likelihood of Occurrence: B (100% chance of occurring during seismic operations Consequence: III (Results in a non-permitted contravention of any of the prohibitions as stated in Sections incl. & 58 of SARA to protect wildlife species listed on Schedules 2 or 3 or any priority species recommended for potential listing by COSEWIC) 86 Booman, C, F. Midtoey, A.T. Smith, K. Westrheim, and L. Foeyn Effects of oil on marine organisms with particular reference to first feeding of fish larvae. Fisken Havet, Havorskgsinstituttet, Bergen (Norway). 87 DNV Energy (2007) Effects of seismic surveys on fish, fish catches and sea mammals rev 01, Cooperation group - Fishery Industry and Petroleum Industry 4.10

49 Table 6 Environmental Effects Evaluation for marine fish SARs: Cusk, Porbeagle Shark, Bluefin Tuna Description of Potential Effect survey is relatively small, spawning of resident species such as Cusk takes place over 000 s of square kilometers and over a period of several weeks to months and seasonal migratory species such as blue shark and bluefin tuna spawn far from the SW Scotian Slope area (see 1-pagers above), adverse effects on potential effects (if any) on fish eggs and larvae are expected to be minor and well within natural variability. Interaction #3: Effects of drill waste on Cusk The mud/cuttings pile that is likely to form near a deepwater drill site (e.g., 5 metre radius pile observed at Chevron Texaco Newburn-23 deepwater exploratory site on Scotian Slope) and cause smothering of benthic organisms (usually where thickness of cuttings exceeds 1 cm (Bakke et al ) probably consists of bentonite mud (and sand from the hole itself typically metre deep by metre wide) from the mud swish of the tophole section which typically occurs for a few days at the start of drilling rather than from the muds/cuttings which likely disperse widely in the water column after being released from the surface while drilling deeper hole sections. Effects of drill waste on Cusk are predicted to be minor (if any) since they do not occur in most of NS11-1 lease block area (I.e., depths greater than 1000 m) and do not form large aggregations in any particular location. Mitigation Measures Refer to Tables 1, 4 & 17 Adherence to CNSOPB Offshore Waste Treatment Guidelines and Offshore Chemicals Selection Guidelines. During BOP and riser installation, ROV survey of the seafloor around the well site will allow verification of cuttings mound predictions. Significance of Environmental Effect Risk Level 3, Low Risk Probability: D (100% probability of occurring during Drilling) Consequence: IV (Inconsequential or no adverse effects on Commercial fish resources) 88 Bakke, F.T., J.A. Berge, Naer, F., L. O. Reierson and K. Byrne Long-term 1989.Long-term recolonization and chemical changes in sediments contaminated with oil-based drill cuttings. Pp In F.R. Englehart, J.P. Ray and A.N. Gillam, eds. Drilling Wastes. Elseneir Applied Science. London. 4.11

50 4.3 EFFECTS ON COMMERCIAL FISH AND FISHERIES Swordfish, Offshore lobster and Sea scallop Species of Commercial Interest North Atlantic swordfish (Xiphias gladius) Description Swordfish are highly migratory pelagic fish Young Swordfish have rapid growth until age 3 and slow, thereafter They can reach a maximum size in excess of 500 kg Females are thought to reach maturity on average, at 180cm and 5 years Life expectancy is estimated up years Habitat and Distribution. Swordfish are found throughout the Atlantic Ocean and the Mediterranean Sea Stocks are separated into the North Atlantic (above 5 ), South Atlantic, and Mediterranean group. This stock separation is supported by recent genetic analyses. However, the precise boundaries between stocks are uncertain, and mixing is expected to be highest at the boundary in the tropical zone. North Atlantic Swordfish spend Jan-March in the Caribbean Sea and migrate into the Canadian Exclusive Economic Zone during summer and fall to feed in the fertile waters of the continental slope and shelf basins areas Threats Over-fishing and bycatches from other long-line fisheries, particularly the tuna fishery. Status of fishery There are two types of swordfish fishing sectors. Approximately, 90% longline and 10% harpoon and both occur mainly from June to November in NS waters Peak catch values were 20,236t in In 1999, the swordfish stock had been reduced to 67% of its healthy stock size and as a result, The International Commission for the Conservation of Atlantic Tuna (ICCAT), which manages swordfish stocks started a rebuilding program In 2009, the stocks were reported to be fully rebuilt due to high recruitment in the late 1990s and reduction of fishing pressure Harpooning for swordfish occurs along the edges of Georges and Browns Banks, and targets mainly the large female swordfish The Canadian longline fishery extends from Georges Bank to beyond the Flemish Cap east of Newfoundland Breeding Time and Location Swordfish spawn in the warm tropical and subtropical waters throughout the year. Diet Mostly groundfish, pelagic fish, deep-water fish, and invertebrates References Swordfish migration from Georges Bank in the summer to the Caribbean Sea in the winter. A harpoon, a satellite, and a computer tools of the trade for swordfish researchers. Department of Fisheries and Oceans. Atlantic Swordfish. Department of Fisheries and Oceans. Report of the Standing Committee on Research Statistics. International Commission for the Conservation of Atlantic Tunas. October Madrid, Spain. 4.12

51 Species Sea scallop, (Placopecten magellanicus) Description Scallops live up to 20 years with rapid growth between 3-5 years Spawning in late summer to fall depending on latitude - Gulf of Maine, Georges Bank, southern New England, and mid-atlantic Distinctive fan-shaped shell with radiating ribs and concentric growth rings Adductor muscle is the part of scallop commonly eaten Distribution The Gulf of St. Lawrence and northern Newfoundland to North Carolina North of Cape Cod - found at depths less than 20m, south of Cape Cod found at m deep Found in water temperatures between -1-18ºC Habitat Live in groups called scallop beds on the ocean bottom composed of rock, gravel or shell substrates Diet Suspension feeders on algae and phytoplankton Distribution of Atlantic Sea Scallop The New Bedford Scallop Rake Harvesting The offshore scallop rake, also known as the The New Bedford rake, is a metal frame with spikes to which a chain-mesh bag is attached. It is towed along the ocean bottom, and cuts into the surface of the seabed, raking in the catch. Rocks and other debris can also enter the bag along with the catch, substantially increasing the overall mass of the gear. Scallop rakes are generally towed with 2.8 cm warps. The offshore fishery which is managed under an Individual Transferable Quotas (ITQ) system can operate throughout the year. References Atlantic deep-sea scallop, Placopecten magellanicus. Giant or Atlantic Sea Scallop

52 Species of Commercial Interest Offshore Lobster (Homarus americanus) Resource Status In the offshore, lobster densities are typically times less than those of the more productive coastal water region but size of individual lobster is much larger due to lower fishing pressure. Canadian landings from this area have been relatively stable since 2000 Life Cycle and Ecology The life cycle and ecology of lobster in deep waters near offshore banks is far from complete. For example, the specific locations of settlement and nursery grounds remain unknown. In summer, lobsters in the SW Scotian Shelf region move from deeper waters (such as canyons along slope areas) to shoal water to moult and mate. The timing of summer migrations appears to be temperature dependent. Females carry eggs inside for 9 to 12 months, and then for another 9 to 12 months externally attached to the swimmerets under her tail. The first hatching of lobster eggs on the SW Scotian Shelf occurs in late July and early August Newly-hatched larvae move to surface waters where they feed on a variety of planktonic species such as cladocerans and copepods, as they develop through four moult stages over a period of 4 to 6 weeks. After approximately a month in the water column, lobster larvae settle to the seabed and continue with a fifth moult stage. In winter, lobsters migrate back to deeper waters, From every 50,000 eggs only 2 lobsters are expected to survive to legal size. Lobster larvae are carnivorous, feeding primarily on copepods, decapod crustacean larvae, and fish eggs. Adult lobsters feed primarily on bottom dwelling invertebrates (e.g., crabs, polychaetes, mussels, periwinkles, sea urchins, brittle stars, and sea stars), as well as fishes and seaweeds Lobsters prefer temperatures between 8-14C. Threats American lobster is not listed pursuant to SARA and has not been evaluated by COSEWIC. Previous studies on the effects of contaminants have demonstrated changes in physiology and behaviour of exposed lobsters. Ghost fishing by lost traps can be problematic. Fishery The offshore lobster fishery occurs in Lobster Fishing Area (LFA) 41, an area that includes part of the Gulf of Maine, Georges Bank, the Northeast Channel, the banks of the eastern shelf, and the shelf edge and slope. Most landings are from the Gulf of Maine and along the shelf edge from Georges Bank to LaHave Bank. The fishery is carried out using large traps. Unlike the inshore fishery, there is no limit on the number of traps; however a TAC (total allowable catch) is set for the offshore fishery along with a series of other management measures (minimum legal size, egg-bearing females must be returned, etc.). One firm (Clearwater) holds 100% of the Canadian offshore lobster harvesting licenses (8). Jonah crab is caught along with lobster, and offshore lobster license holders are given a quota for Jonah crab. Offshore lobster catches ( ) References The Marine Ecosystem of Georges Bank eng.html The Scotian Shelf: An Atlas of Human Activities

53 Table 7 Environmental Effects Evaluation for the Commercial Fish Resources: Swordfish, Offshore lobster, Sea Scallop Significance of Description of Potential Effect Mitigation Measures Environmental Effect Interaction #1: Contamination / oiling from seismic streamer break, accidental large spill of diesel, blowout of condensate/oil, or SBM release during drilling Refer to Table 4 & 5 (Interaction #1) Sea scallops are found in beds (patchy distribution) over the Scotian Shelf and Georges Bank (Refer to 1-pager above this section & Figure 4). They are not found in deeper slope areas. In the unlikely event of a spill, the lack of persistence of spill product will minimize risk to adult fish and fish eggs and larvae. Seasonal migratory commercial species such as the swordfish spawn far from SEA Study Area (Refer to 1-pager above this section). For deepwater crustacean species such as offshore lobster and red crab, eggs are carried on the abdomen of the females during the entire early development phase. Tainting of these species is highly unlikely since they are bottom-dwelling. The effects from exposure to the water soluble fraction of oil in the water column is expected to be negligible within the concentration ranges observed after an oil spill 1. Refer to Tables 1, 4 & 17 And Tables 5 & 6 (Interaction #1) Risk Level 3, Low Risk Likelihood of Occurrence: E (Highly unlikely 0.1%) Consequence: III (Potential localized and short-term (days) adverse effects on commercial fish resources Interaction #2: Effects of drill waste on commercial shellfish resources Refer to Table 6 (Interaction #3) Most of NS11-1 lease block bottom area has low biodiversity and densities of commercial shellfish resources such as Offshore lobster and Red crab. Sea scallop resources are located in shallower depths (i.e., on the Scotian Shelf). Refer to Tables 1, 4, 6 & 17 Adherence to CNSOPB Offshore Waste Treatment Guidelines and Offshore Chemicals Selection Guidelines. During BOP and riser installation, ROV survey of the seafloor around the well site will allow verification of cuttings mound predictions. Risk Level 3, Low Risk Likelihood of Occurrence: D (Not likely to occur- 1%) for Offshore lobster; E for Sea scallop (Highly unlikely 0.1%) Consequence: IV (Inconsequential or no adverse effects on Commercial fish resources) 4.15

54 4.3.2 Commercial Fisheries Commercial Fisheries The following maps (Figures 3 to 7 incl.) show geo-referenced selected commercial fisheries catch data relevant to this SEA assessment over the period (Source: DFO Atlas of Human Activities 2006 [Note: Review of unpublished DFO data for more recent years (2006-8) showed similar fisheries distributional patterns]). For reference, the NS11-01 lease block area and relevant DFO fisheries management areas for the respective species/groups are also shown on the maps. While not selected for assessment under the Commercial Fisheries in this SEA, maps are also provided showing catch data for Red crab & Jonah crab (Fig. 6) and groundfish ( Fig. 7) since reference was also made to these fisheries in the document. 4.16

55 Figure 4 Commercial Fisheries Sea Scallop Catches 4.17

56 Figure 5 Commercial Fisheries Offshore Lobster Catches 4.18

57 Figure 6 Commercial Fisheries Crab (Red Crab & Jonah Crab) Catches 4.19

58 Figure 7 Commercial Fisheries Groundfish Catches 4.20

59 Figure 8 Commercial Fisheries Large Pelagic Catch 4.21

60 Table 8 Environmental Effects Evaluation for Commercial Fisheries (Sea scallop, Offshore lobster, Swordfish) Description of Potential Effect Mitigation Measures Significance of Environmental Effect Interaction #1: Contamination / oiling from seismic streamer break, accidental large spill of diesel, blowout of condensate/oil, or SBM release during drilling Minor spills of light hydrocarbons will naturally evaporate and disperse Refer to Tables 1, 4 & 17and Tables 5, 6 & 7 quickly due to wave action and currents in the vicinity of the seismic vessel (Interaction #1) or drilling rig. Localized sublethal effects on fish may occur as a result of an oil spill, but a decrease in size of a fishery resource is highly unlikely. Tainting or perceived tainting of fish tissues by hydrocarbon dispersed in the water column may affect the marketability of seafood products. However, because of the lack of persistence and small volumes, and migratory nature of large pelagic fish commercial species such as swordfish (and some tuna and shark species) are not likely to be subjected to high enough concentrations of spill product for long enough to cause actual tainting. SBM released during drilling is not expected to significantly impact commercial shellfish (e.g., offshore lobster, sea scallop) fisheries in the Study area due to its low toxicity and small footprint (i.e., smothering) Adherence to the CNSOPB 'Compensation Guidelines Respecting Damages Relating To Offshore Petroleum Activity' Risk Level 3, Low Risk Likelihood of Occurrence: E (Highly unlikely -0.1%) for Sea scallop fishery ; D (Not likely to occur- 1.0%) for Offshore lobster & Swordfish fisheries Consequence: III (Potential localized and short term (days) minor adverse effects on Commercial fisheries) Interaction #2 : Effects from presence of structures on the survey (seabed or seismic) vessel(s) (including streamers on seismic vessels) or drilling rig(s) Refer to Tables 1, 4 & 17 Risk Level 3, Low Risk A seabed survey (i.e., geophysical or geotechnical) or seismic survey (2D or 3D) will not interact with the offshore Sea scallop fishery which utilizes Issuance of 'Notice to Shipping the location Likelihood of Occurrence: D mobile fishing gear (i.e., offshore scallop rake) to target commercial-size and scheduling of survey activities. (Not likely to occur- 1.0%) scallops in beds on shallow areas of Georges Bank and the Scotian Shelf for Offshore lobster and (i.e., not the deeper areas of the Scotian slope which underlies the NS11-1 Possible restrictions on seismic/seabed Swordfish fisheries; E lease block area (Refer to Figure 4). However, fisheries for large pelagic surveying to periods of good visibility (i.e., (Highly unlikely -0.1%) for species such as Swordfish (and some tunas, shark species) and avoiding darkness and fog) and only if the Sea scallop fishery crustaceans such as Offshore lobster and Red crab overlap with the NS11-1 survey area is free of fixed fishing gear (e.g., lease block area (Refer to Figures 5, 6, & 8). The large pelagics are fished offshore lobster traps). Consequence: III (Potential predominantly with baited hooks on floating longlines (50-60 km in length) localized and short-term while the latter are fished using large traps (i.e., fixed gear). Seismic survey The CNSOPB routinely requires Fisheries minor adverse effects on vessels with a large array of seismic streamers have the potential to interact Liaison Officers (FLO), who are familiar with commercial fisheries) with both of these gear types. However, longline vessels follow the large NS offshore fisheries, to be present on seismic pelagics as they move along the Shelf edge as they enter Canadian waters surveys vessel to communicate with fishing in the spring from Georges Bank, to the Scotian slope and to deeper areas vessels in the area to avoid potential of the Grand Banks and back again in the fall. Offshore lobster and Red crab interactions. fisheries are fished under an Individual Transferrable Quota (ITQ) system and therefore can be fished at any time during the year. Fisheries interests Adherence to the CNSOPB 'Compensation have shown in the past their capability and willingness to avoid potential Guidelines Respecting Damages Relating To 4.22

61 Table 8 Environmental Effects Evaluation for Commercial Fisheries (Sea scallop, Offshore lobster, Swordfish) Description of Potential Effect Mitigation Measures Significance of Environmental Effect interactions with seismic and exploration drilling activities. Offshore Petroleum Activity'. Effective consultation / communication between petroleum exploration interests and key commercial (and aboriginal) fisheries interests and DFO (i.e., with respect to research surveys) during the early planning stage (EA process) and just prior to start-up of seismic or drilling operations. 4.23

62 4.4 IMPACT ON SPECIAL AREAS Sable Island National Park (Designation pending) Location 160 km SE of Canso, NS Dimensions 42 km x 1.5 km (3400 ha) Administration Migratory bird sanctuary administered by Canadian Wildlife Service Access regulated by the Canadian Coast Guard (Sable Island regulations) Physiography Beaches, sand dunes, inland fields of grass and heath, and freshwater ponds Constantly re-shaped by winds, currents, waves and tides Climate Temperate oceanic, milder than mainland -5 to +5 C in winter, peak at 25 C in summer Average wind ~ 20 knots, mainly NW Windiest place, least amount of sunshine, and the most fog in NS Nova Scotia Sable Island Weather Station Collection of weather data and atmospheric research Maintenance of aids to navigation Scientific research Support services for offshore energy industry Vegetation 40% of land surface vegetated mainly by sandwort, marram grass, shrub heath, cranberry heath, pond edge herbaceous plant communities Only 1 tree (small pine) surviving from a planting; 175 plant species, including 6 species that considered to be rare in NS West Light Station East Light Wildlife Birds species sighted including breeding birds, migrating birds, and waterfowl nesting species including the Ipswich Savannah sparrow (SARA Sched. 1, Special Concern) which nests exclusively on the island (early June-early August); Common and Arctic terns with very small numbers of the endangered (SARA Sched. 1) Roseate tern (May-July); Leach s Storm petrel; gulls; shorebirds and ducks Seals -- Grey seals (largest breeding population in the world, late December to early February) and Harbour seals (late May to early June), both year-round residents -- Several hundred juvenile Harp and Hooded seals and one or two Ringed seals come ashore for a few hours or days during winter and early spring Wild horses: animals, descendants of domestic horses brought to the island during the late 1700s Invertebrates: 600 species including 3 moths, 1 beetle, 1 nematode, 1 freshwater sponge that are endemic References Sable Island Green Horse Society Website

63 4.4.2 Roseway Basin Right Whale Sanctuary Dimensions 1,800-sq-km zone Importance The Roseway Basin is both an important commercial shipping route and an important feeding and socializing area during the summer and fall for the critically endangered (SARA Sched. 1) North Atlantic Right Whale Current population is estimated at only 322 individuals, of which % of individuals are found seasonally in the Roseway Basin The Roseway Basin is one of only two known areas where large numbers of North Atlantic Right Whales gather on a seasonal basis in Canadian waters. (The other is the Lower Bay of Fundy). There are 3 other critical areas in nearby U.S. waters Designation On 1 June 2008, Transport Canada implemented the Roseway Basin Area to be Avoided (ATBA), following its adoption by the International Maritime Organization (IMO) The voluntary ATBA is in effect between June 1 and December 31, and aims to protect the North Atlantic Right Whale from mortalities related shipping vessel collisions Right Whale Characteristics The North Atlantic Right Whale feeds and socializes near or at the ocean surface, making it particularly susceptible to marine vessel collision About two-thirds of the population can be found feeding and nursing in Canadian waters during the summer months Large groups of right whales are often seen socializing in the Roseway Basin Conservation Area. References The North Atlantic Right Whale in Canada. Canadian Whale Institute. Species At Risk Public Registry. Government of Canada. North Atlantic Right Whale Ships asked to avoid whale route BBC News

64 4.4.3 Northeast Channel Coral Conservation Area Location The Northeast channel links the Gulf of Maine and the rest of the Northwest Atlantic. The Northeast Channel Conservation Area has been implemented to protect two octocoral species (see below) Dimensions 424 square kilometres (conservation area) Importance The Northeast Channel supports a high density of two endangered octocoral species, bubblegum coral (Paragoria arborea) and seacorn coral (Primnoa resedaeformis) The northeast channel also experiences high levels of commercial boating traffic Northeast Channel (left) located off of Southwest Nova Scotia containing a 424 square kilometer area designated as Northeast Channel Conservation Area (right) See Designation section above for description. Designation In June 2002, DFO established a 424-square-kilometre Coral Conservation Area in a portion of the Northeast Channel with the objective of protecting high densities of intact octocorals. No bottom fishing permitted in the zone outlined in red (shown above). Longline and handline fishing is permitted in the zone outlined in blue only if carrying an Observer (At-Sea) on board the vessel Coral Characteristics The two deep-water species of octocorals are particularly susceptible to bottom fishing disturbance due to their tall-upright structures and slow-growth Octocorals provide habitat and/or food for a variety of ecologically and economically important ground-dwelling species Two key octocoral species found (sea corn on the left, bubblegum coral on the right) in the Northeast Channel Fisheries and Oceans Canada. References Corals of Nova Scotia Fisheri Red trees and Bubblegum Corals Oceana. Fisheries and Oceans Canada

65 4.4.4 Georges Bank Oil and Gas Moratorium Area Location 20 Nautical Miles South of Cape Sable Island, on the Western Scotian Shelf Dimensions Its plateau and sloping sides cover an area of more than 40,000 km2, of which about 7,000 km2 is under Canadian jurisdiction and is a region known as the Northeast Peak Designated moratorium area Importance Georges Bank is a broad offshore bank on the continental shelf of the western North Atlantic, located between Cape Cod and the southwestern tip of Nova Scotia, characterized by a high diversity marine ecosystem that supports one of the richest fishing grounds in the world The international boundary between Canada and the United States crosses the Bank (see figure on left), with the highly productive Northeast Peak belonging to Canada Georges Bank is an important fishing ground for many species of groundfish, invertebrates and pelagic fish. Intensive fishing pressure has led to severe fishery management measures in recent years by both Canada and the U.S Designation A moratorium on offshore petroleum activities (i.e,. exploration, drilling, and development) has been in place on Georges Bank and much of the Northeast Channel since With the passing of Bill 82 by the Nova Scotia Legislature on December 10 th 2010, the moratorium has been extended. The earliest the moratorium could be reviewed is the year 2022 References The Possible Environmental Impacts of Petroleum Exploration Activities on the Georges Bank Ecosystem (Dec. 1998). Department of Fisheries and Oceans. K. Lee; S.L. Armsworthy; S.E. Cobanli; N.A. Cochrane; P.J. Cranford; A. Drozdowski; D. Hamoutene; C.G. Hannah; E. Kennedy; T. King; H. Niu; B.A. Law; Z. Li; T.G. Milligan; J. Neff; J.F. Payne; B.J. Robinson; M. Romero; T. Worcester. Environmental Impacts of Exploration and Production: Consideration of the Potential Interactions Associated with Offshore Petroleum Activities. - Draft May, Department of Fisheries and Oceans. Georges Bank Moratorium Extended. Province of Nova Scotia May 13,

66 4.4.5 Haddock Box Nursery Area Location Encompasses Emerald Bank, Western Gully, and a large area of Western Bank on the Scotian Shelf Dimensions 4000 nautical square miles; mostly less than 200 m water depth Background The Haddock Box is the largest of all commercial fishery closures on the Scotian Shelf, and was established on the Emerald and Western Banks of the Scotian Shelf in NAFO Division 4W in 1987 It is an important nursery area for haddock, and is closed year-round by DFO to groundfish gear[ Note: Bycatch of most groundfish species is low in the scallop drag fishery with the exception of monkfish] The fishery management objective for the area is to protect incoming recruits and thereby assist in the rebuilding of the haddock stock. The effectiveness of this management measure has been evaluated and was found to be only partially effective (Frank 2000) Importance Spawning area for groundfish, particularly haddock and cod Are of larval haddock that both remain in the area and disperse to other areas of the Scotian Shelf Area of high larval fish diversity Nursery area for juvenile haddock Area of high marine fish diversity and benthic species richness Area of many whale sightings including endangered blue and right whales and fin whale, a species of concern Pelagic birds are found regularly over this area References Breeze, H. (2004) Review of Criteria for Selecting Ecologically Significant Areas of the Scotian Shelf and Slope A Discussion Paper DFO Oceans and Coastal Management Report pp Comprehensive Study Report for Exploration Drilling Program on EL2407 BEPCO Canada Company 2006 Prepared by the CNSOPB Frank, K.T., Shackell, N.L. and Simon, J.E An evaluation of the Emerald/Western Bank juvenile haddock closed area. ICES Journal of Marine Science 57:

67 Table 9 Environmental Effects Evaluation for Special Areas: Sable Island National Park (designation pending), Roseway Basin Right Whale Sanctuary, Georges Bank Oil and Gas Moratorium Area, Northeast Channel Coral Conservation Area, and Haddock Box Description of Potential Effect Mitigation Measures Significance of Environmental Effect Interaction #1: Contamination / oiling from seismic streamer break, accidental large spill of diesel, blowout of condensate/oil, or SBM release during drilling Refer to relevant one-pagers for each Special Area above Minor spills of light hydrocarbons will naturally evaporate and disperse quickly due to wave action and currents in the vicinity of the seismic vessel or drilling rig. Contamination/oiling from an accidental large spill or blowout of light oil or condensate is unlikely to reach any of the designated Special Areas in the vicinity of the SW Slope area (Figure 3) (with the possible exception of the Haddock Box Nursery Area) since these areas are well outside the maximum extent (37 km) of a spill/release from its source estimated from various oil dispersion modeling scenarios (Refer to Section 3.6). Furthermore, the predominant current along the slope (SW direction) would tend to carry any oil slick away from the Scotian Shelf. However, as noted in Sect. 2.11& 5.1, extreme weather events (i.e., hurricanes, tropical storms, etc.) which produce strong wind-driven currents or intrusions of warm water (i.e., warm core eddies) over the shelf from slope areas (i.e., Gulf Stream) may result in oil being carried farther over Shelf areas than anticipated based on dispersion modeling results. Any condensate/ oil spill will travel on the sea surface and is therefore not likely to affect juvenile haddock (which are closely associated with the sea bottom) in the Haddock Box Nursery area or corals in the NS Channel Coral Conservation Area. Even if it reached another Special Area (such as Roseway Basin Right Whale Sanctuary or Georges Bank O&G Moratorium Area), an oil slick would be much reduced in size and therefore readily avoided by marine mammals (Table 5) or fish SARs (Table 6) such as the Right Whale or the Porbeagle Shark respectively. However, birds are highly vulnerable to oil contamination. A large spill or release of oil occurring during the Roseate tern (SARA Sched. 1, Endangered) breeding season (May-July) is unlikely to result in death of Refer to Tables 1, 4 & 17 and Tables 5, 6 & 7 (Interaction #1) Support ongoing monthly beached bird surveys by the resident biologist (Z. Lucas) on Sable Island to detect potential oiling of seabirds Adherence to Williams and Chardine protocol entitled The Leach s Storm Petrel: General Information and Handling Instructions for handling stranded birds on survey vessels or drilling platform. Scheduling flaring during well testing to avoid periods of low visibility (e.g., nighttime, foggy conditions) would also reduce the risk of interactions (i.e., contamination/oiling as well as attraction to flares/lights and collisions with vessel/platform structures) with migratory birds Risk Level 3, Low Risk for all Special Areas (and inhabitants) except Risk Level 1, High Risk for Sable Island National Park (for migratory endangered (SAA Sched. 1) bird seasonal inhabitants the Roseate tern & Ipswich sparrow): Likelihood of Occurrence: E (Highly unlikely - 0.1%) for all Special Areas except Haddock Box: D (Not likely to occur 1%) Consequence: III (Potential localized and short-term (days) adverse effects) for all Special Areas except Sable Island National Park (Park (designation pending) Consequence I (Results in a non-permitted contravention of any prohibition of SARA on Sched. 1 endangered migratory bird SARs that is, the seasonally migrant Roseate tern and Ipswich sparrow) 4.29

68 Table 9 Environmental Effects Evaluation for Special Areas: Sable Island National Park (designation pending), Roseway Basin Right Whale Sanctuary, Georges Bank Oil and Gas Moratorium Area, Northeast Channel Coral Conservation Area, and Haddock Box Description of Potential Effect individual Roseate terns while feeding in marine areas since there are only a few Roseate terns nesting on Sable Island and the estimated maximum extent of an oil plume (37 km) is well outside their foraging range (i.e., 20 km) around Sable Island. [Note: The Ipswich sparrow (SARA Sched. 1, Special Concern) does not forage in marine areas). However, both species migrate seasonally between Sable Island and more southerly overwintering grounds. While their migratory paths are unknown precisely (K. Allard, CWS pers. comm.), they pass over marine areas on these migrations including possibly the SEA Study Area. While the likelihood of an interaction of a large oil spill with these two species or other migratory birds is highly unlikely for reasons given above, it cannot be completely discounted during their seasonal migrations. Interaction #2: Disturbance from noise during 2D / 3D seismic acquisition Refer to Table 5 (Interaction #2) Seismic noise levels generated within the NS11-1 lease block are anticipated to degrade to less than the 180 db, the noise threshold estimated for adverse effects well before reaching designated Special Areas (i.e., Georges Bank O&G Moratorium Area, Roseway Basin Whale Sanctuary) of known importance to sensitive receptors in the marine ecosystem such as marine mammals. Observations by independent wildlife observers and field studies and reviews by DFO relevant to the offshore NS area (Refer to Section 3.2) have indicated a low level of attraction of seabirds, marine mammals or sea turtles to seismic vessels and associated streamers Interaction #3: Effects of drill waste on corals Refer to Table 7 (interaction #3) The Northeast Channel Coral Conservation Area is well outside the zone of influence of drill waste. However, it is recognized that there are Mitigation Measures Refer to Tables 1, 4 & 17 Refer to Table 5 (Interaction #2) Refer to Tables 1, 4 & 17 and Table 7 (interaction #3) The CNSOPB requires a pre-drilling ROV videocamera survey which would Significance of Environmental Effect Risk Level 3, Low Risk Likelihood of Occurrence: E (Highly unlikely - 0.1%) Consequence: III (Potential localized and short-term (days) minor adverse effects on diversity or abundance of inhabitants of a Special Area ; or on its esthetic values. Risk Level 3, Low Risk Likelihood of Occurrence: D (Not likely to occur 1.0 %) 4.30

69 Table 9 Environmental Effects Evaluation for Special Areas: Sable Island National Park (designation pending), Roseway Basin Right Whale Sanctuary, Georges Bank Oil and Gas Moratorium Area, Northeast Channel Coral Conservation Area, and Haddock Box Description of Potential Effect likely coral colonies in the vicinity of NS11-1 lease block area 89 Mitigation Measures identify any coral colonies in the immediate vicinity of a proposed well location Significance of Environmental Effect Consequence: IV (Inconsequential or no adverse effects on diversity or abundance of inhabitants of a Special Area ; or on its esthetic values) Interaction #4: Effects from presence of structures on the survey (seabed or seismic) vessel(s) or drilling rig(s) on migratory birds in particular the endangered seasonal inhabitants of Sable Island National Park (designation pending) that is the Roseate tern and Ipswich sparrow There is potential for interaction of vessel/platform structures (due to deck lights/flare on drilling rig) with two migratory bird SARs (Roseate tern & Ipswich sparrow) on route to/from Sable Island and southerly overwintering grounds. Refer to Tables 1, 4 & 17 The likely risk is predicted to be very low since the number of migrating individuals with flight paths that actually overlap with the NS11-1 leaseblock area is predicted to be low, due to the relatively short period of exploration drilling (1-2 months) and very short period of flaring during well testing (8-24 hours) and only if hydrocarbons are present. As a further precaution, flaring can be scheduled to avoid periods of low visibility (i.e., nighttime, foggy conditions) to reduce Risk Level 1 for endangered SARA Sch. 1 species (High Risk) Likelihood of Occurrence: E (Highly unlikely 0.1% probability) Consequence: I (Results in a nonpermitted contravention of any of the prohibitions as stated in Sections incl. & 58 of SARA 90 to protect wildlife species listed as endangered or threatened on Schedule 1) 89 Kenchington, E., Lirette, C., Cogswell, A., Archambault, D., Archambault, P., Benoit, H., Bernier, D., Brodie, B., Fuller, S., Gilkinson, K., Lévesque, M., Power, D., Siferd, T., Treble, M., and Wareham, V Delineating Coral and Sponge Concentrations in the Biogeographic Regions of the East Coast of Canada Using Spatial Analyses. DFO Can. Sci. Advis. Sec. Res. Doc. 2010/041. vi pp Many marine species protected under SARA are also protected under the Fisheries Act. For a fish as defined under the Fisheries Act, a significant adverse effect is one that results in an unauthorized destruction of fish by any means other than fishing as required under Section 32. For fish habitat as defined in the Fisheries Act, a significant adverse effect is one that results in an unmitigated or non-compensated net loss of fish habitat as required in a Fisheries Act Authorization under Section 35(2). It also includes the release of a deleterious substance under Section 36 of the Fisheries Act. 4.31

70 Table 9 Environmental Effects Evaluation for Special Areas: Sable Island National Park (designation pending), Roseway Basin Right Whale Sanctuary, Georges Bank Oil and Gas Moratorium Area, Northeast Channel Coral Conservation Area, and Haddock Box Description of Potential Effect Mitigation Measures potential for attraction of migratory birds to lights/heat. Lighting on seismic vessels is no different than most other ocean-going vessels. If offshore workers find an injured or dead bird on a vessel/platform they are expected to take the appropriate mitigative measures recommended by the Canadian Wildlife Service. Significance of Environmental Effect 4.32

71 5 EFFECTS OF THE ENVIRONMENT ON EXPLORATION ACTIVITIES 5.1 PHYSICAL ENVIRONMENT The SW Scotian Slope area is dominated by the circumpolar westerly flow common in this midlatitude area of North America Arctic air masses and tropical air masses from the Gulf of Mexico converge over the offshore area of Atlantic Canada with the dominant mid-latitude Westerlies. The surface climate of the prospective area depends on these airstreams and their fronts. Cold Arctic air masses predominate in the winter. Cooled tropical air causes stratiform cloud and extensive fog banks in spring and summer. Tropical and extratropical storms are frequent (and occasionally hurricanes), in particular from August through November. The prospective area climate is also highly influenced by the ocean (i.e., the Labrador Current and Gulf Stream). 5.2 CLIMATE CHANGE Since the nature of exploration activities is relatively short (maximum of 3 months for drilling) climate change effects due to global warming (e.g., sea level rise, changes in storm intensity, surface winds, ocean waves, ice conditions) will not be significant over the time frame of exploration activities. 5.3 FOG, ICEBERGS, SEA ICE, SUPERSTRUCTURE ICING On an average annual basis, fog with visibility <1 km is reported on 35% of days. The peak fog month is July, which typically reports fog on 65% of days. Contingency plans will be required since fog can affect exploration activities by limiting operations of helicopters and other activities. Icebergs originate from glaciers in Greenland that drift with the Labrador current and typically decay completely on the Grand Banks of Newfoundland before reaching the Scotian Shelf. Historically, maximum sea ice conditions do not extend as far south as the SW Scotian Slope area (typically about 300 km to the north). Further, any sightings of icebergs on the Scotian Shelf would be reported on Notice to Shipping if perceived to be a hazard to shipping. In the unlikely event of an iceberg being present, survey vessels will be able to maneuver to avoid any possible collision of the iceberg with the vessel or survey gear. Drilling platforms are built to withstand impacts with heavy ice, but workers will be evacuated beforehand as a precautionary measure. Saltwater icing is probable from November through April. Exploration programs may occur at any time of year, with superstructure icing of supply vessels, helicopter or of the jack-up rig being possible. If icing were to occur, all vessels and helicopters have equipment and procedures in place to adequately address the condition. 5.4 SEISMICITY & TSUNAMIS Specific earthquake zones and faults in the Nova Scotia offshore area are reasonably well known. The likelihood of an earthquake and resultant tsunami in the Scotian Slope area is extremely low but not unknown (e.g., 1929 Grand Banks earthquake with epicenter in the Laurentian Channel). 5.1

72 5.5 SEDIMENT TRANSPORT AND SEABED STABILITY The main purpose of any seabed or seismic survey is to employ geophysical and geotechnical technologies to gather data for analysis of sediment transport and seabed stability. There are a variety of sediments on the continental slope, with silty sediments carried down through suspension, and sandy and gravelly sediments slumped over the shelf edge. In general, the finer sediments are carried in a southwestward direction at the shelf break. 5.6 CONCLUSIONS With the appropriate mitigation measures, effects of the environment on potential exploration activities in the SW Scotian Slope area are predicted to be not significant. 5.2

73 6 CUMULATIVE EFFECTS ASSESSMENT (CEA) 6.1 CEA APPROACH Purpose of CEA Determine if environmental effects from exploration activities can interact in a cumulative way with other past, ongoing, and reasonably-foreseeable human activities and result in significant environmental effects on Valued Environmental Components. Baseline The existing natural and human environment in the study area is used as the baseline to assess potential degrees of changes resulting from CEA. Methodology for the CEA o Scoping exercise to identify past, ongoing, and reasonably-foreseeable human activities that are likely to interact cumulatively with environmental effects from exploration activities o Assess the potential impact of cumulative effects on each VEC o The CEA will focus on potential interactions of Other Ocean Uses 6.2 CEA SCOPING See Table 10; Figures 9-14 incl. 6.3 ASSESSMENT See Table 11 for assessment of potential cumulative effects on each VEC. Assessment boundaries for CEA are the same as the SEA Study Area described in section

74 Table 10 Activity Shipping (domestic, international, tourism) Telecommunication cables Commercial fishery Military exercises Use of Sable Island Other Ocean Uses Considered in the CEA Description Covers broad area of offshore Nova Scotia; Active (Hibernia A & D ) and abandoned cables traverse the NS11-1 lease block area Refer to Section 4.2; Large pelagic and Offshore crustacean fisheries take place in NS11-1 lease block area Takes place in Canadian Naval Training Areas There are usually four permanent staff at the station to collect weather data, provides aids to navigation, support for scientific research and for the offshore industry (air quality monitoring, emergency landing area). Temporal Interaction with Exploration Activities Past, present, future Past, present, future Past, present, future Past, present, future Past, present, future Spatial Interaction with Exploration Activities No designated shipping lanes in the Study Area Interaction could occur (Refer to Figure 9) Interaction could occur (Refer to Figure 10). Interaction likely to occur (Refer to Tables 3 & 4) Interaction could occur (see Figure 11) At its closest point, NS11-1 lease block area is over 100 km from Sable Island (Refer to Figure 1) Interaction unlikely to occur Cohasset-Panuke began production in 1992 and was abandoned in The sites were decommissioned in 2006 and included removal of the platforms and abandonment of the flowlines and cable (mostly buried) on the seabed. Past Oil and gas developments Sable Offshore Energy Project began production in December 1999 with Tier 1 (Thebaud, North Triumph, and Venture). Alma and South Venture from Tier 2 were completed in 2003 and Since 1999, there have been zero gas blowouts or condensate spills over 1 barrel since SOEP project inception. The observed average spill rate of other types of hydrocarbons (hydraulic fluid, diesel, other refined oil and mineral oil) over the same period (0.5 spills per year or one spill every 2 years Source: CNSOPB website) coincides with the annual probability (one-in-two chance per year) of having a small spill (1-50 barrels) that was predicted in the SOEP Environmental Impact Statement (EIS). Past, present, future Deep Panuke and SOEP facilities are over 100 km from the NS 11-1 lease block area (Refer to Figure 1) Interaction unlikely to occur The Deep Panuke Offshore Gas Development is currently undergoing commissioning. The production field centre (PFC) was installed during the summer of Work is now ongoing Present, future 6.2

75 Table 10 Activity Offshore Petroleum Drilling Other Ocean Uses Considered in the CEA Description to connect the subsea flowlines and umbilicals to the PFC and to complete hook up and commissioning in preparation for operations in An export pipeline will transport sales gas to shore in the same route corridor as the SOEP pipeline to shore. Production life is anticipated to be 11.5 years. Several exploration wells have been drilled in the vicinity of the NS11-1 lease block. There is currently one (1) exploration license (EL 2420) within the southwestern Scotian Slope area (Figure 1). Temporal Interaction with Exploration Activities Past, present, future Spatial Interaction with Exploration Activities A maximum of 1-2 wells per year can be expected to be drilled over entire offshore Nova Scotia area in the next few years 91 (C. Bonnell- Eisnor, CNSOPB pers. comm.) Seismic Exploration Marine Research & Monitoring Shipwrecks and UXOs Historic seismic coverage in the SW Scotian Shelf and Slope areas is shown in Figure 14. Past exploration 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 activities in the NS offshore were a wellsite survey / 2D / 3D seismic program on Blueberry (EL 2389), a VSP on Cree (EL 2361) in 2004, a seismic program off Cape Breton in 2005 and one partially in NS waters (in the Laurentian Channel) in Various ongoing marine surveys occur in various locations on the Scotian Shelf and Slope including NS11-1 lease block area. Other marine surveys (not shown) have been carried out on an opportunistic basis in SW Slope area. There are a few shipwrecks with possible UXOs on board within the NS11-1 lease block area Past, present, future Past, present, future Past, present, future Interaction could occur A maximum of 1-3 seismic surveys per year can be expected over entire offshore Nova Scotia area in the next few years (C. Bonnell- Eisnor, CNSOPB pers. comm.) Interaction could occur Interaction could occur (Refer to Figure 12a, b) Interaction could occur (Refer to Figure 13) 91 Contingent on sale of Signficant Discovery Licenses (SDLs) 6.3

76 Figure 9 Project Location Map and Marine Shipping Routes 6.4

77 Figure 10 Project Location Map and Submarine Cables 6.5

78 Figure 11 Project Location Map and Military Exercise Area 6.6

79 Figure 12 (a) Marine Research and Monitoring - DFO Marine Fish Research and Monitoring 6.7

80 Figure 12 (b) Marine Research and Monitoring Other ongoing programs 6.8

81 Figure 13 Shipwreck Locations, Ocean Disposals Sites, DND Legacy Sites 6.9

82 Figure 14 History of Seismic Coverage 6.10

83 Table 11 VECs and VEC subcategories Species at Risk Assessment of Cumulative Effects (with Other Ocean Uses) Cumulative Effects Assessment Potential for cumulative effects include avoidance / attraction, and direct injury or mortality (due to interaction with survey vessels) Sowerby s whale, Blue whale and Leatherback turtle, Cusk, Bluefin tuna Potential cumulative effects on these species and whales, sea turtles and fish in general are not expected to be significant due to the limited geographic extent (one or more parcels (seismic) or sites (drilling) within lease block) and short duration (maximum 2 months seismic; 3 months - drilling) of potential exploration activities and the unlikelihood of a potential major spill in isolation or simultaneously with a tanker (given the relatively low volume shipping traffic), SOEP or Deep Panuke operations and high evaporative/dispersal rate of spill product (condensate). Commercial Fish and Fisheries Potential for cumulative effects include potential taint and toxicity (due to oil spills) and disturbance (due to noise) Sea scallop, Offshore lobster and Swordfish resources Potential cumulative effects on these and other fish/shellfish resources are not expected to be significant due to the limited overlap with shellfish fisheries, limited geographic extent (one or more parcels (seismic) or sites (drilling) within the NS11-1 lease block) and short duration (maximum 2 months seismic; 3 months - drilling) of potential exploration activities and the unlikelihood of a potential major spill in isolation or simultaneously with a tanker (given the relatively low volume shipping traffic), SOEP or Deep Panuke operations and high evaporative/dispersal rate of spill product. Potential for cumulative effects include temporary avoidance of a potential fishing area during exploration activities (due to the survey vessel operational areal/drilling platform safety/exclusion zone (typically 500 m). Commercial fisheries Special Areas Mitigation measures such as a safety/exclusion zone (up to 1nM) around the survey vessels (and any towed gear) and drilling platform (typically 500 m), issuance of Notice to Shipping bulletins during the survey, direct consultation efforts prior to field activities will limit potential interactions with fisheries and other sector interests (i.e., DND, cable industry) and the presence of Fisheries Liaison Officers. Provided the above mitigation measures are implemented (as appropriate), potential cumulative effects on commercial fisheries are not expected to be significant. Potential for cumulative effects include noise disturbance of inhabitants of Special Areas and ecosystem contamination from oil spills Special Areas Potential cumulative effects on Special Areas in the vicinity of the SW Scotian Slope are not expected to be significant due to the limited or lack of overlap of the NS11-1 lease block and Special Areas, short duration (maximum 2 months seismic; 3 months - drilling) of exploration activities, the unlikelihood of a potential major spill in isolation or simultaneously with a tanker (given the relatively low volume shipping traffic), SOEP or Deep Panuke operations and high evaporative/dispersal rate of spill product. 6.11

84 CONSEQUENCES STRATEGIC ENVIRONMENTAL ASSESSMENT 7 SUMMARY AND CONCLUSIONS 7.1 SUMMARY OF ENVIRONMENTAL RISK ASSESSMENT Numbers in the tables below refer to the results of the environmental effects risk assessment conducted for potential interactions between selected VECs and exploration activities as determined by scoping for the SEA (Refer to Section 3 in particular Tables 2, 3 & 4) using the environmental risk assessment process outlined in Appendix A. The results (residual effects) of the risk assessment are summarized for each potential interaction with exploration activities - seismic noise (Table 12), drill waste (Table 13), accidental oil spills/releases (Table 14), and presence of structures (Table 15) following application of appropriate mitigation measures (Table 17). As noted in Appendix A, the level of environmental risk is based on the severity and the likelihood of occurrence as estimated using the Risk Matrix to categorize the possible combinations of severity and likelihood of occurrence to be higher, medium or lower risk - shown by shading (dark to light) and numbering (1 to 3). In general, there is a one order of magnitude reduction (i.e., factor of 10) in the stated probability for each decreasing Likelihood category. Risk level '1' corresponds to a significant adverse environmental effect under CEAA. Only the higher risk level 1 combinations (with black background) of severity and likelihood represent LIKELY significant adverse effects under CEAA. The level 1 combinations with gray shading represent areas of high risk and therefore will require special management to ensure that potentially significant adverse environmental effects are avoided. A level 2 is an adverse environmental effect that is with planned mitigation, not significant. A level 3 is an environmental effect that is even without mitigation, not significant and / or inconsequential Table 12 Environmental Assessment Risk Matrix for Noise LIKELIHOOD OF OCCURRENCE A B C D E I Blue whale & Leatherback turtle II III 2 2 All Marine Fish SARs Sowerby s whale IV 2 3 Haddock Box Nursery Area All other Special Areas Risk Levels 7.1

85 CONSEQUENCES CONSEQUENCES STRATEGIC ENVIRONMENTAL ASSESSMENT Table 13 Environmental Assessment Risk Matrix for Drill Waste LIKELIHOOD OF OCCURRENCE A B C D E I II III Offshore lobster 3 3 IV 2 3 resource Sea scallop Cusk resource Corals Risk Levels Table 14 Environmental Assessment Risk Matrix for Accidental Oil Spills/Releases LIKELIHOOD OF OCCURRENCE A B C D E 1 I Sable Island National Park (Roseate tern & Ipswich sparrow) II Haddock Box Nursery Area 3 III Offshore lobster & Swordfish Commercial Fisheries Cusk 3 All Commercial Fish Resources Sea scallop Fishery All Other Special Areas All Fish SARs IV All Marine Mammal & Sea Turtle SARs Risk Levels 7.2

86 CONSEQUENCES STRATEGIC ENVIRONMENTAL ASSESSMENT Table 15 Environmental Assessment Risk Matrix for Presence of Vessels/Platforms LIKELIHOOD OF OCCURRENCE A B C D E I Sable Island National Park (Roseate tern & Ipswich sparrow) II Commercial 3 III 2 2 Swordfish & Sea scallop 2 Offshore Fishery lobster Fisheries IV Risk Levels Table 16 Summary of Consultations Organizations Contact(s) Details CNSOPB Fisheries Advisory Committee (scheduled for early September, 2011) Informed fisheries interests representing: Full Bay Scallop Assoc,/Herring Coop, Maritime Aboriginal Resources Secretariat, Atlantic Policy Congress of First Nation Chiefs, Eastern Shore Fishermen s Federation/Eastern Shore Fishermen s Protective Assoc., Fisheries and Oceans Canada (Maritimes and Gulf Regions), NS Dept of Fisheries and Aquaculture Concerns expressed re: potential effects of exploration activities particularly seismic noise and oil spills on migratory marine fish, MM, and Sea turtle SAR species; also potential for increased rock slide activity due to seismic vibrations/drilling activity Fishers and offshore operators have proven in the past to be able to work together to avoid conflicts between fishing and seismic/drilling operations 7.3

87 Table 16 Summary of Consultations Organizations Contact(s) Details Atlantic Policy Congress of First Nation Chiefs Netukulimkewe l Commission Ian Wentzell, Senior Fisheries Advisor Tim Martin First Nation s communities with licenses/fishing access in the SW Scotian Slope area: Tuna: Acadia FN, Glooscap FN, Millbrook FN, St Mary s FN, Woodstock FN Swordfish: Acadia FN, Membertou FN, Millbrook FN, St Mary s FN, Wagmatcook FN, Waycobah FN, Fort Folly FN, Woodstock FN. Offshore lobster/red crab: No communities involvement Fort Folly FN owns a dedicated swordfish long line vessel the Chief Stephenson Bernard which fishes in SW Scotian Slope area typically from July to early October depending on weather conditions and location of the Gulf stream. Fort Folly First Nation on occasion leases quota from other communities. A number of the communities use their own vessels in the Tuna fishery. The Commission operates two groundfish longliners (halibut, haddock, cod) and one swordfish longliner that operate in deeper waters (>1000m) off SW Scotian Slope Hibernia Atlantic Alasdair Wilkie Hibernia Atlantic does not have any specific requirements regarding seismic surveying. Although notification would be appreciated. With regards to intrusive works on the seabed, Hibernia Atlantic would like to see twice water depth either side of the cable kept free to allow for repair of a cable without affecting other seabed users. Ecology Action Centre Mark Butler General concern: Government focus on petroleum exploration (i.e., instead of renewable energy alternatives) but understood that this concern was outside the scope of the SEA. Specific concerns: Potential effects on whales, sea turtles, and large pelagic species such as tunas, sharks in particular SAR species and corals and sponges recognize that there is a paucity of information available on the marine environment of the Scotian Slope area. Department of Naval Defence (DND) Kyle Penney Provided shipwreck and UXO georeferenced information for NS11-1 lease block area Provided departmental input Fisheries and Oceans Kristian Curran & Glen Herbert Canada Environment Canada Wayne Barchard Provided departmental (including Canadian Wildlife Service) input 7.4

88 7.2 SUMMARY OF CONSULTATIONS Table 16 lists the key commercial fisheries interests (including aboriginal fisheries interests), non-governmental groups and government agencies that were consulted to obtain information for the environmental assessment and project planning. Concerns focused on potential interactions of seismic and drilling operations and accidental spills with avian, fish, marine mammal and sea turtle SARs and corals. Potential conflicts between fishing and seismic/drilling operations can be avoided in most cases by good communications between petroleum exploration and fisheries interests. 7.3 SUMMARY OF MITIGATION AND FOLLOW-UP MEASURES Table 17 summarizes recommended potential mitigation from Section 3 (Scoping), Section 4 (Environmental Effects Assessment) and Section 6 (Cumulative Effects Assessment). Table 17 Summary of Potential Mitigation 92 Project Activities Interacting with VECs Mitigation Measures Independent trained observers on site to visually monitor and record potential marine mammals, sea turtles, and seabird interactions (if any) with the survey vessel Assessed VECs Noise Drill waste Accidental spills Adherence to the Statement of Canadian Practice with Respect to Mitigation of Seismic Sound in the Marine Environment which includes soft-start and safety zone monitoring Commencement of seismic data in daylight hours only (i.e., to avoid periods of low visibility that is, at night and during foggy conditions); and only if survey area is confirmed to be clear of marine mammal or sea turtle atrisk species. Possible seasonal restrictions on seismic activities Possible use of Passive Acoustic Monitoring (PAM) to detect possible presence of marine mammals or sea turtles in the seismic survey area Adherence to CNSOPB Offshore Waste Treatment Guidelines and Offshore Chemical Selection Guidelines Conduct of a pre-drilling ROV videocamera survey of seafloor Emergency/Spill Response Plan spill prevention measures during seismic and exploration drilling operations Use of solid seismic streamers to eliminate risk of spills from streamer breaks Fish, Marine mammal and Sea turtle SARs Special Areas Cusk Offshore lobster Corals All VECs 92 For a more complete list of potential mitigation measures for seismic and exploratory drilling activities, refer to Section 3.2 Environmental Assessment Biophysical Data Gap Study Petroleum Exploration Activities on the Offshore Scotian Shelf and Slope 7.5

89 Table 17 Summary of Potential Mitigation 92 Project Activities Interacting with VECs Mitigation Measures Assessed VECs Presence of survey vessel(s)/drilling platform(s) Development of and adherence to a Simultaneous Operations (SIMOPs) Plan to identify and coordinate with other vessels planned to be in the vicinity Survey vessel(s) compliant with IMO standards No at-sea transfers of fuel during seismic surveys Adherence to bulk transfer procedures during drilling Standard spill response kits for cleaning up small spills onboard the survey vessel Adherence to CNSOPB 'Compensation Guidelines Respecting Damages Relating To Offshore Petroleum Activity' Support of ongoing monthly beached bird surveys by the resident biologist (Z. Lucas) on Sable Island to detect potential oiling of seabirds or beaching of marine mammals Seasonal restrictions on seismic and drilling activities Issuance of 'Notice to Shipping on the location and scheduling of surveying or drilling activities Adherence to CNSOPB 'Compensation Guidelines Respecting Damages Relating To Offshore Petroleum Activity' Fisheries Liaison Officer onboard survey vessel(s) to obviate potential conflicts with fishing activities/gear Trained, experienced, independent wildlife observers onboard to help enforce corporate operations procedures, including safe operating distances and exclusion zones Consultation / communication with key organizations representing commercial (including aboriginal) fisheries interests in exploration activities area during the early planning stage (EA process) and just prior to seismic surveying or drilling start-up Consultation with DFO Science Branch to ensure that the seabed survey does not overlap with research vessel surveys in exploration activities area Adherence to Williams and Chardine protocol for handling stranded birds (if any) on the survey vessel(s) or drilling platform(s) Development of and adherence to a Simultaneous Operations (SimOps) Plan to identify and coordinate with other vessels planned to be in the vicinity Commercial Fisheries Sable Island National Park (Roseate tern & Ipswich sparrow) Other Ocean Uses 7.6

90 Table 17 Summary of Potential Mitigation 92 Project Activities Interacting with VECs Mitigation Measures Commencement of seismic data acquisition in daylight hours (i.e., to avoid periods of low visibility that is, at night and during foggy conditions) - and only if survey area confirmed to be clear of fixed gear (i.e., Offshore lobster or Red crab traps) or floating longline gear (i.e., for large pelagics). Scheduling flaring (during well testing) to avoid periods of low visibility (i.e., nighttime, foggy conditions) to reduce potential interactions (i.e., collisions, flaring mortality) with migratory birds Assessed VECs 7.4 SUMMARY AND CONCLUSIONS This document presents a SEA for potential offshore petroleum exploration-related activities in the NS11-1 lease block located on the SW Scotian Slope (Figure 1). The assessment addresses issues outlined in the Scoping Document (Appendix B) which received commentary from Environment Canada, Fisheries and Oceans Canada and stakeholders. Key commercial fisheries interests (including aboriginal fisheries interests), non-governmental groups and government agencies were also consulted to obtain information during the assessment. VECs considered in the SEA were selected from the following categories: Species-at-Risk, Special Areas, and Commercial Fish and Fisheries. The focus of the cumulative effects assessment was VEC category Other Ocean Uses. The focus of the SEA was consistent with concerns expressed during consultation regarding potential impacts of noise, drill waste and accidental spills on fish, marine mammal and sea turtle SARs and the inhabitants of special environmental and interference with commercial fisheries due to seismic noise and presence of seismic gear and drilling platforms. The SEA also identified potential mitigative measures to reduce environmental risk and data gaps and uncertainties with respect to the assessment of environmental effects of exploration activities. This SEA concluded that impacts of all potential interactions (Refer to Tables incl.) would not likely have significant adverse environmental direct or cumulative effects on selected VECs following the application of appropriate mitigation. Particular note should be taken of mitigation measures considered in the SEA to reduce the likelihood of significant adverse effects of seismic noise on two SARA 1-listed endangered marine mammal (i.e., Blue whale) and sea turtle (i.e., Leatherback turtle) species (Refer to Table 5, Interaction #5) and impacts with structures in particular flares on drilling rigs (Refer to Table 9, Interaction #4) on two SARA 1-listed endangered avian species associated with Sable Island (Roseate tern and Ipswich sparrow) that may occur seasonally in the NS11-1 lease block area while migrating between Nova Scotia and more southerly overwintering areas. 7.7

91 APPENDIX A Environmental Risk Assessment Process

92 Environmental Risk Assessment Process 1.0 BACKGROUND A Risk Assessment System is essentially a framework for identifying and managing risks associated with oil and gas operations. The objective of such a systematic approach to risk management is to identify hazards, to assess their risk, and where required, to determine prevention and mitigation measures to reduce risks to an acceptable level. Risk is a function of the probability or likelihood of occurrence that an incident will occur combined with the severity of its consequences. Risk from operations can be to health, safety and the environment, result in public disruption, and have financial consequences. The focus of this document is the assessment of environmental risk. A Risk Matrix is a knowledge-based, qualitative tool which is used to assess current risk by estimating the probability or likelihood of occurrence, and severity of the consequences of an incident which may occur during an operation or task. From assessment of these, a risk level is assigned to the operation. A Risk Matrix describes the risk in light of planned mitigation steps. The utility of a Risk Matrix lies not so much in establishing a specific risk level, but in helping to evaluate and convey relative risk importance and potential risk reduction from mitigation measures. Typically, a risk matrix for oil and gas operations is used to evaluate and communicate a potential risk scenario as regards the safety and health of workers and the public, the environment, public disruption, and financial loss. This guide outlines the framework for application of such a tool for the evaluation of environmental effects in an environmental assessment of offshore marine projects under the Canadian Environmental Assessment Act (CEAA). As such, the framework is adapted to align with the regulatory requirements and language of CEAA. It has generally been accepted practice, that Valued Environmental Components (VECs) represent the investigative focal point of any environmental assessment (EA) under CEAA (Hegmann et al ). Value may be attributed for economic, social, environmental, aesthetic or ethical reasons. Section 2.0 describes the methodological framework for Risk Assessment for environmental assessment under CEAA. Section 3.0 describes what should be included in the description of exploration activities. Section 4.0 describes how VECs are selected for assessment. Sections 5.0, 6.0 and 7.0 describe how the two components of the Risk Matrix are developed, the severity of the environmental consequences and the likelihood of their occurrence, respectively, and then their combination to evaluate risk. Section 8.0 describes how other considerations under CEAA are considered (i.e., cumulative environmental effects and follow-up). 93 Hegmann, G., C. Cocklin, R. Creasey, S. Dupuis, A. Kennedy, L. Kingsley, W. Ross, H. Spaling and D. Stalker and AXYS Environmental Consulting Ltd Cumulative Effects Assessment Practitioners Guide. prepared for the Canadian Environmental Assessment Agency. A.1

93 2.0 ENVIRONMENTAL RISK ASSESSMENT FRAMEWORK The steps of a risk management process when applied to an environmental assessment are: 1. Describe various exploration activities, including the footprint, activities, emissions and discharges, and planned mitigation. 2. Identify potential VECs that may be affected by exploration activities 3. Evaluate the probability (i.e., likelihood of occurrence) and consequences of Project-VEC interactions (i.e., the environmental effects) of exploration activities using a Risk Matrix. The mandatory factors that require consideration in all environmental assessments under CEAA are, without specific limitation under the authority of Section 16(3), onerous. 16. (1) Every screening or comprehensive study of a project and every mediation or assessment by a review panel shall include a consideration of the following factors: (a) the environmental effects of exploration activities, including the environmental effects of malfunctions or accidents that may occur in connection with exploration activities and any cumulative environmental effects that are likely to result from exploration activities in combination with other projects or activities that have been or will be carried out; (b) the significance of the effects referred to in paragraph (a); (c) comments from the public that are received in accordance with this Act and the regulations; (d) measures that are technically and economically feasible and that would mitigate any significant adverse environmental effects of exploration activities; and (e) any other matter relevant to the screening, comprehensive study, mediation or assessment by a review panel, such as the need for exploration activities and alternatives to exploration activities, that the responsible authority or, except in the case of a screening, the Minister after consulting with the responsible authority, may require to be considered. Thus, the EA must assess all environmental effects including those arising from accidents and malfunctions, and cumulative environmental effects. Depending upon the level of assessment or the identification of additional factors to be considered by the responsible authority, such matters including the need for exploration activities, alternatives to exploration activities and alternative means for carrying out exploration activities that are technically and economically feasible. Responsible authorities have the discretion to require consideration of any other factor it deems appropriate. Under CEAA, an environmental effect has a broad and complex definition: environmental effect means, in respect of a project, (a) any change that exploration activities may cause in the environment, including any change it may cause to a listed wildlife species, its critical habitat or the residences of individuals of that species, as those terms are defined in subsection 2(1) of the Species at Risk Act, (b) any effect of any change referred to in paragraph (a) on (i) health and socio-economic conditions, (ii) physical and cultural heritage, A.2

94 (iii) the current use of lands and resources for traditional purposes by aboriginal persons, or (iv) any structure, site or thing that is of historical, archaeological, paleontological or architectural significance, or (c) any change to exploration activities that may be caused by the environment, whether any such change or effect occurs within or outside Canada. The assessment of environmental risk for a marine development / activity should be implemented by a team consisting of a diverse range of relevant operational and environmental expertise. At least, one member of the team should have an environmental background including knowledge of other ocean uses especially by Aboriginal groups, local stakeholder communities, and commercial fisheries interests; another should represent the operations department; while the third should represent the facilities / engineering department. One of the members must have risk assessment training. There must clearly be at least one interaction between VECs and Project activities. VECs are to be assessed by considering potential interactions with exploration activities such as operational discharges (e.g., drill waste, produced water) and emissions (e.g., noise, unnatural light, and air contaminants); presence of structures (e.g., rig, pipeline, survey vessel); and accidental releases (e.g., spills). Potential accident scenarios should be identified as potential interactions for consideration. The risk analysis assumes that exploration activities have been designed to meet or exceed all regulatory guidelines or limits for discharges and emissions. Practically, the Risk Matrix can be used as a planning tool during the planning and design of exploration activities to evaluate the effectiveness of mitigation and identify the need for additional mitigation. For simplicity, the final analysis represents the evaluation of exploration activities after finalizing planned mitigation. 3.0 DESCRIPTION OF EXPLORATION ACTIVITIES A description of exploration activities should describe the facilities and activities associated with exploration activities. Depending upon the nature exploration activities, it will be necessary to describe each phase or group of activities as appropriate (e.g., surveying, drilling, construction, operation, decommissioning) and potential accidents and malfunctions. Emissions, discharges and wastes should be described. Mitigation 94 should be described for each phase or activity. Where required, the purpose, need for exploration activities, alternative means of carrying out exploration activities, and any other factors to be considered as determined by the responsible authority regarding exploration activities should be provided. The existing conditions of the receiving environment for exploration activities should be described in sufficient detail to understand the potential interactions with resources at risk. This description will be helpful in understanding which components of the environment that may be affected by exploration activities are at greatest risk and therefore the focus of the EA. 94 In CEAA mitigation in respect of a project is defined as the elimination, reduction or control of the adverse environmental effects of exploration activities, and includes restitution for any damage to the environment caused by such effects through replacement, restoration, compensation or any other means. A.3

95 4.0 VEC IDENTIFICATION The following VECs are proposed since they appear to cover most key resources and activities potentially affected by an offshore hydrocarbon-related project. Other VECs can be included where Project-environment interactions would indicate that there is a risk posed to other components of the environment. Species-at-Risk Species designated as at-risk under the Species-at-Risk Act (SARA) and determined to be potentially affected during project scoping (includes critical habitat or residences of individuals of that species). Special Areas Designated areas of special interest (e.g., ecological, conservation) that could be potentially affected by exploration activities. The scope of the assessment also includes 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 that could be affected by exploration activities. The focus of the assessment of the VEC is on potential disruptions to 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. Other Ocean Uses (As applicable) 95 Other ocean uses that could be affected by exploration activities in the offshore include current use and resources for traditional purposes by Aboriginal persons, marine shipping, military use, research surveys, and other petroleum development activities, etc. Discussion The selection of Species-at-Risk and Special Areas 96 as VEC categories is proposed since species-at-risk 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 of the ecosystem. During scoping, species-at-risk that have a reasonable potential for interaction with exploration activities must be considered for detailed assessment (to meet regulatory requirements and 95 The Other Ocean Uses VEC should be included in the matrix (or added following consultation) if it is determined during scoping that one or more other marine projects/activities is potentially directly affected by exploration activities. Alternately, if such project/activities are more likely to affect VECs due to interactions with other projects/activities, then such interactions should be assessed as cumulative environmental effects (see Sect. 8.0 below). 96 Recognized environmentally and biologically sensitive areas such as marine protected areas, coral conservation zones, national wildlife areas or parks, etc. A.4

96 expectations). Where there are several species-at-risk from within broad taxonomic ecosystem groupings such as fish, marine mammals, sea turtles, and seabirds, it is recommended that the evaluation be grouped where it is scientifically valid to do so (i.e., the habitat requirements, sensitivities, and behaviours are similar and the risk to perturbation by exploration activities, are similar). For example, endangered species such as the Blue whale and the Northern bottlenose whale would be considered under the Species-at-risk VEC in an environmental assessment for a project in the Nova Scotia offshore area (if their distribution overlapped with exploration activities study area) and could also be considered as VEC as indicators for marine mammals and more specifically for baleen and toothed whales, respectively. It is important that the selection of indicators from species-at-risk give careful consideration to the nature of exploration activities-vec interaction to ensure that the inherent assumptions of this approach are supportable and defensible and do not overlook important environmental effects that may reasonably require evaluation and the application of mitigation. Where they are not, it may be necessary to select VECs that might represent secure species or species groups. Similarly, where additional or enhanced mitigation measures were to be adopted by a Project to reduce environmental risk to a Special Area such as Sable Island or the Gully Marine Protected Area, then risk to other less environmentally sensitive locations within the exploration activities study area would also likely be reduced. The Commercial Fish and Fisheries VEC may address how Project facilities and activities might affect key fish populations in exploration activities area, their distribution, abundance and health, and their pursuit for commercial purposes. Commercial fish species by definition are secure species and likely not at risk of significant adverse environmental effects. Hence, the focus of the assessment of this VEC is the effect of exploration activities on the availability of commercial species for commercial fishing, and the ability to prosecute the fishery where it is licensed to occur. 5.0 DEFINITIONS OF SEVERITY Working definitions for level of severity for Consequence and Considerations categories are given in Table 1. These definitions are consistent with the criteria that are used for characterizing adverse environmental effects under the CEAA 97, requirements under the SARA 98 and consequence definitions related to environmental effects for EMDC risk scenario analysis. 97 Magnitude, geographic extent, duration and frequency, irreversibility and ecological context 98 For detailed information on SARA go to Government of Canada Species-at-risk Registry at A.5

97 Table 1 I Consequence Category Working Definitions of Consequences for an Environmental Risk Scenario Analysis - Offshore Exploration Activities Species-at-Risk Results in a non-permitted contravention of any of the prohibitions as stated in Sections incl. & 58 of SARA 100 to protect wildlife species listed as endangered or threatened on Schedule CONSEQUENCE CONSIDERATIONS Special Areas Potential widespread or long-term (years) significant adverse effects on biodiversity and / or abundance of inhabitants of a special area(s) ; or on its cultural or aesthetic values Commercial Fish and Fisheries Potential widespread or long-term (years) significant adverse effects on sustainable yield of a population(s) of commercial fish resources Unmitigated or uncompensated net financial loss to commercial fisheries that results in the following that cannot be mitigated or compensated: Fisheries license holders being displaced, unable to use areas traditionally or currently fished for all or most of a fishing season; and / or Fisheries license holders experiencing a demonstrated net income loss from fishing activities due to Project-related environmental effects for one year or more. Other Ocean Uses 99 (As applicable) Potential widespread or long-term (years) significant adverse effects on Other Ocean Uses 99 Significance may have to be defined to suit a specific other ocean use(s), if identified to be directly affected by exploration activities. 100 Many marine species protected under SARA are also protected under the Fisheries Act. For a fish as defined under the Fisheries Act, a significant adverse effect is one that results in an unauthorized destruction of fish by any means other than fishing as required under Section 32. For fish habitat as defined in the Fisheries Act, a significant adverse effect is one that results in an unmitigated or non-compensated net loss of fish habitat as required in a Fisheries Act Authorization under Section 35(2). It also includes the release of a deleterious substance under Section 36 of the Fisheries Act. 101 The Act establishes Schedule 1, as the official list of wildlife species at risk for those species as being either extirpated, endangered, or threatened. Once a species has been designated as endangered or threatened and added to Schedule 1 under SARA, the responsible federal agency is required to prepare a Recovery Strategy within one year, for species listed as endangered, and within two years for species listed as threatened or extirpated. A.6

98 Table 1 II Consequence Category Working Definitions of Consequences for an Environmental Risk Scenario Analysis - Offshore Exploration Activities Species-at-Risk Results in a non-permitted contravention of any of the prohibitions as stated in Sections incl.& 58 of SARA 102 to protect wildlife species listed as special concern on Schedule 1 CONSEQUENCE CONSIDERATIONS Special Areas Potential localized and medium-term (weeks / months) adverse effects on biodiversity and / or abundance of inhabitants of a special area(s) ; or on its cultural or aesthetic values Commercial Fish and Fisheries Potential localized and medium-term (weeks / months) adverse environmental effects on commercial fish resources. Mitigated or compensated net financial loss to commercial fisheries that results in the following: Fisheries license holders being displaced, unable to use areas traditionally or currently fished for all or most of a fishing season; and / or Fisheries license holders experiencing a demonstrated net income loss from fishing activities due to Project-related environmental effects for weeks / months. Other Ocean Uses 99 (As applicable) Potential localized regional and medium-term (weeks / months) adverse effects on Other Ocean uses 102 Sect. 32 (killing, harming listed species); Sect. 33 (damage or destruction of residence); Sect. 34 (application certain species in provinces); Sect. 35 (application certain species in territories; Sect. 36 (prohibitions re provincial and territorial classifications); Sect. 58 (destruction of critical habitat). A.7

99 Table 1 III IV Consequence Category Working Definitions of Consequences for an Environmental Risk Scenario Analysis - Offshore Exploration Activities Species-at-Risk Results in a non-permitted contravention of any of the prohibitions as stated in Sections incl. & 58 of SARA to protect wildlife species listed on Schedules 2 or 3 or any priority species recommended for potential listing by COSEWIC 103 Inconsequential or no adverse environmental effects CONSEQUENCE CONSIDERATIONS Special Areas Potential localized and short-term (days) adverse effects on biodiversity and / or abundance of inhabitants of a special area(s) ; or on its cultural or aesthetic values Inconsequential or no adverse effects on the special area(s) Commercial Fish and Fisheries Potential localized and short-term (days) adverse effects on commercial fish resources Mitigated or compensated net financial loss to commercial fisheries that results in the following: Fisheries license holders being displaced, unable to use areas traditionally or currently fished for a part of a fishing season; and / or Fisheries license holders experiencing a demonstrated net income loss from fishing activities due to Project-related environmental effects for one week or less. Inconsequential or no adverse effects on commercial fish resources or fisheries Other Ocean Uses 99 (As applicable) Potential localized and short-term (days) adverse effects on Other Ocean Uses Inconsequential, or no adverse effects on Other Ocean Uses 103 The Committee on the Status of Endangered Wildlife in Canada (COSEWIC) assesses species to determine whether they are at risk. COSEWIC s designations are based on status reports prepared by independent experts, and informed by the best available scientific research, community knowledge and traditional Aboriginal insights. For more background information on the listing process go to the COSEWIC website at A.8

100 6.0 DETERMINING THE LIKELIHOOD OF OCCURRENCE The proposed environmental risk matrix defines likelihood of occurrence levels (five) based on a range of frequencies of potential effects of the offshore marine activity. Specific probability levels are to be chosen by a risk assessment team for each phase of exploration activities based on personal experience, expert knowledge, statistical data, local operating conditions or special prevention and mitigation practices. The probability estimates are intended to provide reasonable guidance when making risk decisions. Table 2 Working Definitions for Likelihood of Occurrence Potential Environmental Effects of Offshore Marine Project / Activity Likelihood Definitions 104 Category Corporate Definition Working Definition A B C D E Possibility of Repeated Incidents or Continuous Possibility of Isolated Incidents Possibility of Occurring Sometime Not Likely to Occur Practically Impossible 7.0 ASSIGNING LEVEL OF RISK 20 or more times per facility life (i.e., Operating Facility) or 5 or more times during other project phases (i.e., Surveying, Drilling, Construction, Decommissioning), or continuous 5 or more times in facility life or 1 to 4 during other project phases Once in facility life cycle or low (10%) likelihood for other project phases Low (10%) likelihood of occurring once in facility life or very low (1%) likelihood for other project phases Very low (1%) likelihood of occurring once in facility life or highly unlikely (0.1%) in other project phases The level of environmental risk is based on the severity and the likelihood of occurrence as estimated using the Risk Matrix to categorize the possible combinations of severity and likelihood of occurrence to be higher, medium or lower risk - shown by shading (dark to light) and numbering (1 to 3). In general, there is a one order of magnitude reduction (i.e., factor of 10) in the stated probability for each decreasing Likelihood category. Risk level '1' corresponds to a significant adverse environmental effect under CEAA. Only the higher risk level 1 combinations (with black background) of severity and likelihood represent LIKELY significant adverse effects under CEAA. The level 1 combinations with gray shading represent areas of high risk and therefore will require special management to ensure that potentially significant adverse environmental effects are avoided. A level 2 is an adverse environmental effect that is with planned mitigation, not significant. A level 3 is an environmental effect that is even without mitigation, not significant and / or inconsequential. 104 As per EMDC Risk Matrix Application Guide A.9

101 CONSEQUENCES STRATEGIC ENVIRONMENTAL ASSESSMENT Table 3 Environmental Assessment Risk Matrix LIKELIHOOD OF OCCURRENCE A B C D E I II III IV Risk Levels A Risk Matrix should be completed for each Project activity / phase, on a VEC by VEC basis. The description and components considered as activities should be defined carefully so as to provide a level of analysis and complexity that is consistent with the nature and extent of the environmental effects of exploration activities. At the scoping stage, care should be taken to structure the analysis in a logical way to meet the requirements of CEAA while reflecting good scoping practices and considerations. 8.0 CUMULATIVE EFFECTS The EA should incorporate consideration of cumulative environmental effects. Cumulative effects are changes to the environment that are caused by an action in combination with other past, present and future human actions. The cumulative environmental effects assessment should follow the assessment of the environmental effects of exploration activities. This analysis must consider past, present and future projects and activities 105 that overlap with exploration activities. How far back and into the future is a scoping decision that should be determined in consultation with the responsible authority. Past and present cumulative environmental effects are best captured by a discussion of the baseline or existing conditions of the VEC without exploration activities. Cumulative environmental effects are evaluated by considering exploration activities environmental effects (and baseline conditions) in combination with future projects that are likely to be carried out. Significance should be determined using the same criteria developed for exploration activities. Where cumulative environmental effects are identified, the contribution of exploration activities should be described. Mitigation and the responsibility for its implementation should be identified, where warranted. 9.0 FOLLOW-UP To meet the requirements of CEAA, all environmental assessments must consider the need for follow-up (e.g., environmental effects monitoring). Where appropriate, the need for follow-up should be considered. For comprehensive studies and above, a follow-up program is mandatory. 105 Types of projects/activities that are typically considered in a cumulative environmental effects assessment for the offshore include use and resources by aboriginal persons, marine shipping, military use, research surveys, and other petroleum activities. A.10

102 APPENDIX B Scoping Document

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

104 EXPLORATION ACTIVITIES ON THE SOUTHWESTERN SCOTIAN SLOPE TABLE OF CONTENTS 1.0 Introduction 2.0 Background 3.0 Geographic Scope 4.0 Objectives 5.0 Past Exploration Activity 6.0 Scope of SEA 6.1 Spatial and Temporal Boundaries 6.2 Factors and Issues to be Considered Potential Exploration Activities-Environment Interactions Cumulative-Environment Interactions Environment-Exploration Activities Interactions 7.0 Conclusions and Recommendations 8.0 Consultations Page B.i

105 EXPLORATION ACTIVITIES ON THE SOUTHWESTERN SCOTIAN SLOPE 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 scoping document has been prepared by the CNSOPB, with advice obtained from stakeholders during a public comment period in July 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 site-specific 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 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 licenses may include: conduct of seismic surveys, other geophysical surveys, geotechnical surveys; drilling of wells (either exploration or delineation); and well abandonment. Page B.1

106 EXPLORATION ACTIVITIES ON THE SOUTHWESTERN SCOTIAN SLOPE 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 Call for Bids area is 1000 m. However, as per guidance from the CEA Agency 106, 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). 106 Operational Policy Statement entitled The Process for Defining the Spatial Boundary of a Study Area During an Environmental Assessment of Offshore Exploratory Drilling Projects (CEA Agency 2003) Page B.2

107 EXPLORATION ACTIVITIES ON THE SOUTHWESTERN SCOTIAN SLOPE 4.0 OBJECTIVES Figure 1: NS11-1 Call for Bids Location Map 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 Identify species-at-risk and special areas that may interact with exploration activities Recognized environmentally and biologically sensitive areas such as marine protected areas, coral conservation zones, national wildlife areas or parks, etc. Page B.3