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Project Description Shelburne 3-D Seismic Survey Exploration Licenses EL 2423; EL 2424; EL 2425; EL 2426 Shell Canada Limited

Project Description FinalActive · 5 Shell is currently preparing invitations to bid for a proposed 3D seismic programme, scheduled to begin in Q2/Q3 2013. Invitations and tenders

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Project Description

Shelburne 3-D Seismic Survey

Exploration Licenses

EL 2423; EL 2424; EL 2425; EL 2426

Shell Canada Limited

2

Table of Contents 1. Introduction ......................................................................................................................................... 4

1.1 Operator ........................................................................................................................................ 5

1.2 Contact Information ....................................................................................................................... 5

2. Regulatory Approvals .......................................................................................................................... 6

2.1 Canada Nova Scotia Benefits Plan ................................................................................................. 6

2.2 Stakeholder Engagement ................................................................................................................ 6

3. Project Description .............................................................................................................................. 7

3.1 Project Justification........................................................................................................................ 8

3.2 Seismic Surveys ............................................................................................................................. 8

3.2.1 Conventional 3D Seismic Surveys ........................................................................................... 8

3.2.2 3D Wide Azimuth (WAZ) ..................................................................................................... 11

3.2.3 Geo-hazard Assessments ....................................................................................................... 11

3.3 Project Phases and Scheduling ..................................................................................................... 12

4. Logistics and Support ........................................................................................................................ 13

4.1 Survey Vessels............................................................................................................................. 13

4.2 Chase Boats ................................................................................................................................. 13

4.3 Support Vessels ........................................................................................................................... 13

4.4 Helicopters .................................................................................................................................. 13

4.5 Shore Base ................................................................................................................................... 13

5. Health, Safety, Environment (HSE) ................................................................................................... 13

5.1 Safety .......................................................................................................................................... 14

5.2 Waste Management...................................................................................................................... 15

5.3 Accidental Events ........................................................................................................................ 15

6. Environmental Features ..................................................................................................................... 15

6.1 Physical environment ................................................................................................................... 15

6.2 Fish, Fish Habitat and Fisheries ................................................................................................... 16

6.3 Marine Mammals ......................................................................................................................... 16

6.4 Marine Benthos ........................................................................................................................... 16

6.5 Turtles ......................................................................................................................................... 17

6.6 Birds ............................................................................................................................................ 17

3

6.7 Species at Risk ............................................................................................................................. 17

6.8 Special Areas ............................................................................................................................... 18

7. Waterway Use ................................................................................................................................... 18

7.1 Commercial Fisheries .................................................................................................................. 18

7.2 Navigable Waters ........................................................................................................................ 18

7.3 Mitigation of Potential Impacts .................................................................................................... 19

References: ........................................................................................................................................... 20

List of Figures Figure 1. Location of Exploration Leases......................................................................................................4

Figure 2. Seismic Survey Area and Project Study Area................................................................................8

Figure 3. Conventional 3D marine seismic survey - Side view.................................................................... 9

Figure 4. Conventional 3D marine seismic survey - Top view.................................................................... 9

Figure 5. WAZ Survey configuration..........................................................................................................11

List of Appendices Appendix 1. Shell Commitment and Policy on Health, Security, Safety, the Environment and Social

Performance................................................................................................................................................ 21

Appendix 2. Shell Life Saving Rules......................................................................................................... 23

1. Introduction Shell Canada Limited (“Shell”)

License Nos. 2423; 2424; 2425 and 2426

approximately 1,376,490 ha or

(Figure 1). Shell has committed to

exploration period commencing on 1 March 2012.

the land block area and is currently

potential drilling locations within t

acquired through seismic surveys. At a later date and prior to the commencement of any drilling

activities, drill-site specific high resolution 2

potential geo-hazards, which may affect future drilling operations

may also be conducted to identify potential sea

be determined based on the locat

seismic surveys and the geo-hazard

Figure 1.

Limited (“Shell”) owns a 100% working interest in and is the operator of Exploration

423; 2424; 2425 and 2426 (the “Licenses”). These Licenses c

ha or 13,765 km2 and are located approximately 350 km

Shell has committed to conducting an exploration programme within an init

exploration period commencing on 1 March 2012. Shell has purchased the available 2D seismic data for

the land block area and is currently analyzing and re-processing the data. In order to select and confirm

potential drilling locations within the License area, 3D seismic data will be required, which will be

acquired through seismic surveys. At a later date and prior to the commencement of any drilling

high resolution 2D seismic surveys will also be conducted to h

hazards, which may affect future drilling operations. Side-scan sonar or multi

may also be conducted to identify potential sea-bed hazards. The specific type of geo

be determined based on the location and water depth of any drilling prospect.

hazard surveys will be referred to as “the Project”.

Figure 1. Location of Exploration Leases

4

owns a 100% working interest in and is the operator of Exploration

Licenses cover an area of

and are located approximately 350 km south of Halifax

within an initial 6 year

has purchased the available 2D seismic data for

processing the data. In order to select and confirm

will be required, which will be

acquired through seismic surveys. At a later date and prior to the commencement of any drilling

D seismic surveys will also be conducted to help identify

scan sonar or multi-beam surveys

bed hazards. The specific type of geo-hazard survey will

ion and water depth of any drilling prospect. Collectively, the 3-D

5

Shell is currently preparing invitations to bid for a proposed 3D seismic programme, scheduled to begin

in Q2/Q3 2013. Invitations and tenders will be managed in accordance with Canada Nova Scotia Offshore

Petroleum Board (CNSOPB) requirements for this process.

The Project will require approval from the CNSOPB. This project description is being submitted to the

CNOSPB as required to commence the environmental assessment process under the Canadian

Environmental Assessment Act (“CEAA”) for the Project and to initiate the coordination process under

the Federal Coordination Regulation. This project description together with the technical and scoping

advice to be received from the CNSOPB and other stakeholders will guide the preparation of a screening

level Environmental Assessment (EA).

1.1 Operator Shell Canada Limited

400-4th Avenue SW

Calgary, Alberta, Canada T2P 0J1

1.2 Contact Information Nova Scotia Office Manager TBD

Communications

Larry Lalonde

Manager, Communications, Canada Exploration and Commercial Projects

Shell Canada Limited

400 4th Avenue S.W.

Calgary, Alberta T2P 0J1

Email: [email protected]

Office: +1 403 691 2168

Exploration Team Lead Erik Goodwin

Nova Scotia Venture

Shell Deepwater Americas

Houston, Texas, US

Email: [email protected]

Office: +1 281 450 5841

Geophysical Operations Contact Robert M. Lupton

Supervisor Seismic Operations

Upstream Americas Exploration and Commercial,

Shell Canada Ltd,

PO Box 100, Station M,

Calgary, Alberta, Canada T2P 2H5.

Email: [email protected]

Office: +1 403 691 3215

6

Regulatory / Environment

Candice Cook-Ohryn

Environmental Planner

Shell Canada Limited

400 4th Avenue S.W.

Calgary, Alberta T2P 0J1

Email: [email protected]

Office: +1 403 384 8747

2. Regulatory Approvals Offshore Geophysical exploration activities require an authorisation from the CNSOPB. The Inclusion

List Regulations under CEAA identifies a marine seismic survey with an output level greater than 275.79

kPa at a distance of one metre from the seismic energy source as a trigger for an environmental

assessment. Offshore seismic activities are not listed on the Comprehensive Study List Regulations and

the Project is therefore subject to a screening level EA under the CEAA.

The purpose of this project description is to identify the scope of the Project, the basic features of the

Project that may require assessment under CEAA, and potential affects from the Project that may also

require assessment. This project description is also required to initiate the Federal Coordination

Regulations process under CEAA. The CNSOPB will act as the Responsible Authority (RA) and the

federal EA Coordinator for the Project. This project description is intended to assist the CNOSPB and

other federal departments in identifying the appropriate agencies with potential decision-making

responsibility under CEAA for the Project or with expert knowledge relevant to the evaluation of

potential Project impacts. This project description will also assist the CNOSPB in developing the

Scoping Document for the EA.

Although the Geophysical Work Authorization from the CNSOPB will trigger an EA under CEAA, Shell

does not anticipate needing any further authorizations from other government agencies that would trigger

an EA for the Project. However, because seismic survey activities may require a consideration of

potential effects on species such as seabirds, marine mammals, fish and commercial fisheries, government

agencies such as the Department of Fisheries and Oceans may have an interest or expertise in certain

environmental aspects of the proposed Project.

2.1 Canada Nova Scotia Benefits Plan Shell recognizes the importance of providing benefits associated with the Project to Canada and Nova

Scotia in particular. Shell will produce a Benefits Plan in accordance with CNSOPB regulatory

requirements as part of the geophysical authorization application.

2.2 Stakeholder Engagement Shell is committed to managing the impacts, both positive and negative, of our business on the

communities and societies in which we operate. We call this Social Performance. Social Performance

means being a good neighbour and ensuring the impacts of Shell’s activities on communities and local

residents are assessed and considered in business decisions. Shell seeks to minimize the negative impacts

7

of our business on our neighbours and enhance the positive benefits. Shell is committed to maintaining

respectful engagement throughout the business life-cycle. We believe that good Social Performance

creates a positive legacy in communities and our goal is to gain community acceptance for our business.

Shell will be initiating consultation with local stakeholders regarding our Shelburne Project in the near

future. Through this dialogue we hope to gain an understanding of the issues and any concerns so that we

can identify ways in which we can reduce potential negative impacts and enhance the benefits associated

with the Project.

3. Project Description This Project has been designated as the Shelburne 3D seismic survey. Figure 2 below shows the location

of Shell’s Nova Scotia Exploration Licence blocks, the proposed Study Area, and the proposed 2013

initial Seismic Survey Area.

The larger pink outline delineates the proposed Study Area for the Project. The Study Area delineates the

full areal extent within which geophysical surveys may be conducted as part of the Project inclusive of

seismic surveys as well as space required to allow for activities such as vessel turning radius. The exact

location of Project Study Area may be further delineated in the EA report once further Project details are

known. It is Shell’s intention that the environmental assessment will encompass the entire Study Area.

The red outline delineates the proposed initial 2013 Seismic Survey Area, which is the area currently

being considered for the first phase of 3D seismic survey activities. It is Shell’s intention to commence

marine 3D seismic and geo-hazard surveys beginning in 2013. The exact location of 2013 Seismic

Survey Area may be further delineated once further Project details are known.

Further geophysical surveys will be designed and conducted in subsequent years as appropriate based on

the results of the initial 3D seismic survey. Shallow geo-hazard surveys (high resolution 2D seismic; side

scan or multi beam sonar) will also be designed and implemented prior to any future drilling operations as

appropriate and as required by regulations. The location of these surveys has not yet been determined and

will be assessed based on Shell’s analysis of existing 2-D seismic data as well as the 2013 seismic data.

Figure 2. Seismic Survey Area and Project Study Area

3.1 Project Justification As part of the acquisition of the exploration licences described above, Shell has commit

geophysical and geo-technical work across these licenced blocks. Shell has already purchased and begun

to interpret vintage 2D seismic data currently available

evaluating the leases in a regional sense it is no

drilling targets. In order to more accurately

grid of good quality 3D seismic data.

drilling unsuccessful wells and help

3.2 Seismic Surveys A 3D seismic survey is considered the most effectiv

the exploration blocks. The 3D seismic activities will not only produce new and better images of the

subsurface but will also enable Shell to combine the new data with existing 2D seismic and associated

well data from the area. This ability to correlate all of the

volume increases interpretational accuracy and improves Shell’s decision

locations.

3.2.1 Conventional 3D Seismic Surveys

A 3D marine seismic survey incorporates the use of a seismic survey vessel sp

out this type of work. The main components of a 3D marine seismic survey include i) a seismic vessel (or

Figure 2. Seismic Survey Area and Project Study Area

of the exploration licences described above, Shell has commit

technical work across these licenced blocks. Shell has already purchased and begun

interpret vintage 2D seismic data currently available for these blocks. While

leases in a regional sense it is not feasible to use this data to accurately identify specific

more accurately identify preferred drilling locations, Shell requires a

of good quality 3D seismic data. Acquiring good quality 3D seismic data great

helps to identify potential drilling hazards.

A 3D seismic survey is considered the most effective method to consistently image

D seismic activities will not only produce new and better images of the

subsurface but will also enable Shell to combine the new data with existing 2D seismic and associated

well data from the area. This ability to correlate all of the various types of data into a continuous data

olume increases interpretational accuracy and improves Shell’s decision-making when selecting drilling

Conventional 3D Seismic Surveys

ncorporates the use of a seismic survey vessel specifically designed to carry

The main components of a 3D marine seismic survey include i) a seismic vessel (or

8

Figure 2. Seismic Survey Area and Project Study Area

of the exploration licences described above, Shell has committed to carrying out

technical work across these licenced blocks. Shell has already purchased and begun

these blocks. While this data is useful for

to accurately identify specific

Shell requires a consistent

ata greatly reduces the risk of

e method to consistently image the subsurface within

D seismic activities will not only produce new and better images of the

subsurface but will also enable Shell to combine the new data with existing 2D seismic and associated

ta into a continuous data

making when selecting drilling

ecifically designed to carry

The main components of a 3D marine seismic survey include i) a seismic vessel (or

vessels), ii) a towed source array (airguns), and iii) a towed receiver array (streamers).

below illustrate these various components.

Figure 3. Conventional 3D

Figure 4. Conventional

Marine seismic vessels may measure

designed to remain at sea for long periods of time and are typically equipped with integrated heli

allow for crew changes and re-supply by helicopter. While surveying, with equipment deployed, seis

vessel speed will typically range from approximately 4.5 to 5 knots along a sail

area. At the end of each sail-line the vessel will execute a turn to position itself onto another sail

vessels), ii) a towed source array (airguns), and iii) a towed receiver array (streamers).

these various components.

3D marine seismic survey - Side view (FLTC Services Ltd., 2009

nventional 3D marine seismic survey-Top view (Geomatic Solutions

measure up to 100m long with a crew of over 50 people. These vessels are

designed to remain at sea for long periods of time and are typically equipped with integrated heli

supply by helicopter. While surveying, with equipment deployed, seis

vessel speed will typically range from approximately 4.5 to 5 knots along a sail

line the vessel will execute a turn to position itself onto another sail

9

vessels), ii) a towed source array (airguns), and iii) a towed receiver array (streamers). Figure 3 and 4

FLTC Services Ltd., 2009)

Geomatic Solutions, 2012)

with a crew of over 50 people. These vessels are

designed to remain at sea for long periods of time and are typically equipped with integrated heli-decks to

supply by helicopter. While surveying, with equipment deployed, seismic

vessel speed will typically range from approximately 4.5 to 5 knots along a sail-line within the survey

line the vessel will execute a turn to position itself onto another sail-line.

10

Each turn may require a radius of 10 to 15kms and can take 2 to 3 hours to complete depending on the

amount of survey equipment being towed. Seismic vessels can continue operating in conditions up to Sea

State 5 with wave heights up to 3m or greater.

In a conventional configuration, one seismic vessel will tow one or more arrays equipped with air-guns,

approximately 100-200m behind it, which are used as the seismic source. These air-guns are steel

cylinders that are charged with compressed air at a typical pressure of around 2000psi. The air-guns do

not use explosives nor do they fire any type of projectile. A source array may consist of a series of air-

guns of varying volume which are positioned and fired in a precise sequence to produce a sound wave

specifically designed to image the sub surface in the desired manner as well as to minimize the pressure

wave and frequencies emitted into the surrounding marine environment. In the case of towing multiple

source arrays, each array will be fired individually, cycling from one array to the next in succession every

25 to 50m along the sail-line.

Further behind the air-guns, extending to a distance of 6 to 10 km, the seismic vessel will also tow 6 to 12

cables, or ‘streamers’, equipped with hydrophones sensors. These cables are usually towed at depths

ranging from 5m to 50m below the surface of the water, but are typically towed between 12 to15m below

the surface. Dilt floats are utilized in vessels towing large numbers of streamers in order to keep the front

end of the streamers at the specified depths. Paravanes are attached on each side of the seismic vessel to

maintain a consistent streamer spread width during towing.

The array of multiple streamers may spread over a width of 400m to 1000m on either side of the seismic

vessel. At the end of each streamer cable is a tail buoy with radar reflectors to act as a warning beacon to

nearby marine vessels. The sensors in the streamers act as receivers for the sound energy as it is reflected

off the sea bottom and the various layers of earth below the sea floor.

A conventional 3D marine seismic survey, using a single vessel towing both a source and receiver array

as described above, is classified as being Narrow Azimuth (NAZ) since, due to its design configuration, it

only acquires data from a relatively narrow range of angles from the source array to the receivers. In

terms of 3D marine surveys, this type of configuration is typically the fastest and most cost effective

option and is used where the geological setting is considered to be fairly simple. Variations of this method

may include using additional or longer streamers, multiple source arrays, or shorter distances between

source points.

It should be noted that there are many different variations of this basic configuration, each of which are

geared toward solving particular technical challenges encountered in a survey area. Such challenges

include, but are not limited to, water depth, current speed, seabed topography and geology, as well as

equipment availability. The Wide Azimuth (WAZ) configuration described below in Section 3.2.2 is the

preferred survey configuration currently being considered for this project based on the geological setting

and the operational timing window for the region.

The final choice of configuration however, as well as the parameters to be incorporated (source strength,

array configuration, streamer length etc) will not be decided until further geological information has been

obtained from the analysis of the 2D data and until Shell understands what ships and equipment will be

11

available from suppliers. Work is currently ongoing to acquire the necessary information and Shell

anticipates making a decision for the 2013 surveys in the coming months.

3.2.2 3D Wide Azimuth (WAZ)

For more complex geological settings, particularly basins underlain with salt like deepwater Nova Scotia,

it is usually desirable to have data acquired from a greater number of angles, or wider azimuths, than

possible with a conventional configuration. These WAZ 3D marine surveys require different acquisition

designs or vessel/source/cable configurations to accomplish the geophysical goals.

While the 3D WAZ configurations may vary from project to project, generally they all use some sort of

multi-vessel configuration where one or two cable vessels will be accompanied by up to 4 additional

vessels towing source arrays only. This type of configuration is logistically and technically complex, and

accordingly expensive, but is able to cover large areas fairly quickly. Figure 5 below shows a typical

WAZ survey vessel configuration utilizing 2 streamer vessels and 2 additional source vessels. This

configuration of 4 boats, often referred to as 4x2 WAZ acquisition (4 boats, 2 of which tow streamers), is

commonly employed because it significantly increases the efficiency of the operation.

Figure 5. WAZ Survey configuration (Fischer, 2008)

Due to the geological complexity of the exploration area, Shell’s preferred survey method for the 2013

and future 3D seismic surveys is the WAZ configuration. However, the final choice of configuration will

not been made until later in 2012 when further geological information has been obtained from the analysis

of the 2D data and until Shell understands what ships and equipment will be available from suppliers.

3.2.3 Geo-hazard Assessments

Geo-hazard assessments are carried out to locate and identify potential hazards either on the seabed or

within the first few hundred meters below the seafloor that might impact drilling operations. Sea-bed

hazards might include pipelines, wrecks, telecom cables and wellhead facilities while sub-surface hazards

may include pockets of shallow, high-pressure gas or deposits of gas-hydrates.

Prior to any drilling activity, Shell will conduct a comprehensive geo-hazard assessment for each

proposed drill site. The assessment will be completed by evaluating existing 2D and 3D seismic data to

12

identify seafloor and near seafloor drilling hazards that may affect the safety and efficiency of future

drilling operations. To support the geo-hazard assessment, a seabed survey may be conducted in 2014.

The types of surveys used in geo-hazard identification may include high resolution 2D seismic, which are

used to identify sub-surface hazards such as shallow gas or hydrate deposits; side-scan or multi-beam

sonar, which is used for locating objects on the sea-bed; or magnetic and gravity surveys, which can be

configured to locate hazards either at, or within a few hundred meters below, the sea-floor. Soil

characterization and near surface coring can also be performed if necessary.

The main components of the potential seabed survey would include the acquisition and interpretation of

echo-sounder, sub-bottom profiler, and side-scan sonar data around each proposed drill site to identify

natural and man-made seafloor hazards or obstructions. Based on results of the existing 2D and 3D

seismic assessment, a 2D High Resolution seismic survey may be conducted as part of the seabed

survey.

The final selection of the seabed survey area of interest, sensor package, configuration, and survey

contractor will not be made until a later date when further analysis of the available seismic data is

completed.

3.3 Project Phases and Scheduling The Project is currently expected to take place in at least two phases. The actual timing of these phases

will depend on many factors, including interpretation of results of prior phases and contracting and

procurement timelines.

Shell is currently re-processing and interpreting existing 2D seismic data. The results of that

interpretation may impact the timing and exact locations of the subsequent 3D seismic surveys within the

License area. However, the following schedule is currently anticipated:

• Phase 1: The proposed 3D seismic survey is currently anticipated to take place in 2013 within the

favourable weather window from April to September. Subject to weather delays, the seismic

program is expected to run continuously, day and night, within this time frame. It is possible that

magnetic or gravitational data may be acquired concurrently with the seismic using additional

instruments towed behind one or more of the seismic vessels but that has not yet been decided.

This data is passively acquired in that gravimeters and magnetometers, which record the gravity

and magnetic field of the earth (i.e. no type of source is required).

• Phase 2: A second 3D seismic survey may be conducted in 2014 within the same timeframe if

determined to be necessary from Phase 1 data. Additionally, geo-hazard surveys will be

conducted to assist in identifying possible seabed and shallow sub-surface hazards that might

pose a danger to drilling operations. Geo-hazard surveys would be conducted over potential

drilling locations and completed within 2-3 week timeframe for all potential locations.

• Other surveys may occur within the life of the Exploration Licences depending on the results of

the previous phases of assessment.

13

4. Logistics and Support Shell’s Nova Scotia exploration licences lie approximately 350 km south of Halifax in water depths

ranging from 1000 to 3000 m. The seismic surveys may take up to five months (April to September) to

complete and require the following logistics and support.

4.1 Survey Vessels Primary acquisition services will be provided by dedicated 3D seismic survey vessels through a Shell

approved seismic contractor. The number and specifications of the vessels to be used will be determined

according to the survey method selected, as well as the choice of contractor. The vessels will likely be in

the range of 80-100m in length and use some form of diesel-electric propulsion system.

4.2 Chase Boats Chase boats are usually used as part of a seismic survey to scout for navigation hazards such as fishing

gear or other debris. These boats will be in constant communication with the primary survey vessels.

There will likely be 2 to 3 chase boats supporting the seismic fleet depending on the number of seismic

vessels being used.

4.3 Support Vessels Support vessels may be used for crew changes and re-supply, but this will depend upon weather

conditions, sea states and the seismic survey vessels being used. Final determination of the specifications

of any supply vessels will be made after the seismic contractor has been chosen. Similarly, vessels

required for re-fuelling will be depend on the actual needs of the seismic vessels being used.

4.4 Helicopters The use of helicopter support is being considered for the Project, but the final decision has not been made.

Helicopters are typically used for crew shift changes, emergency medical evacuation and light re-supply.

Most of the larger survey vessels are equipped with integrated helicopter landing pads to facilitate such

airborne support while some of the smaller vessels may need to return to shore for crew changes or re-

supply.

4.5 Shore Base Shell will establish and maintain an office in Halifax, and currently anticipates having an office

established in 2013. Some of the seismic contractors may have their own local shore based facilities or

may choose to use existing port facilities for crew changes or re-supply.

5. Health, Safety, Environment (HSE) Shell’s general operating principles are underpinned by a deliberate focus on safety and environmental

protection. Shell’s HSSE SP Commitment and Policy is provided in Appendix 1 and outlines Shell’s

approach to HSSE Management as well as specific commitments regarding objectives and performance

expectations.

Shell meets or exceeds regulatory requirements applicable to its operations, which are designed to reduce

risks to the environment and keep people safe. Shell’s safety record is built on strict company standards,

14

multiple safety barriers to prevent incidents from occurring and to enable a quick and effective response

should it be necessary, extensive safety competence assurance, and a culture that requires workers,

contractors and visitors to stop any unsafe activities.

All operations relating to the Project will be required to comply with Shell standards and regulatory

standards as a minimum. Where requirements differ, the more stringent requirement will apply. Shell will

require contractors to demonstrate that they have an HSE Management system compatible with these

standards, and that they are committed to implementing it. In the event that sub-contractors are used the

main contractor will be required to ensure that these sub contractors also conform to the same standards

and requirements.

5.1 Safety All staff and contractors taking part in the Project will be required to understand and commit to the

following Shell safety programmes:

• Goal Zero,

• The 3 Golden Rules, and

• The 12 Life-Saving Rules.

Goal Zero is Shell’s company-wide program that captures its aim to operate with no harm to people and

no significant incidents in its daily operations. The 3 Golden Rules outline the main principles that

delineate how Shell undertakes business all the time in every operation and activity. The 3 Golden Rules

are as follows:

• Comply with the law, standards and procedures

• Intervene in unsafe or non-compliant situations

• Respect our neighbours

The 12 Life-Saving Rules are clearly established rules associated with those activities that are considered

to have the highest potential safety risk. They work to mitigate the identified risk and ensure that people

are protected where these activities are required for Shell business. The complete list of Shell’s Life-

Saving Rules is provided in Appendix 2 to this document.

All of these policies and initiatives receive a high level of attention and internal enforcement because of

their potential and focus on saving lives.

Shell Canada and its Contractors will institute appropriate health and safety programmes to provide a safe

working environment for all personnel and to ensure that operations are performed in a responsible

manner and in compliance with corporate standards and regulatory requirements.

Such programmes will include but not necessarily be limited to:

• Risk/ Hazard Assessments,

• Job Safety Analyses,

• Emergency Response Planning,

• Journey Management,

15

• Incident Reporting and Investigation – to include near miss, unsafe conditions and unsafe

acts,

• HSE audits,

• Provision of dedicated HSE support staff,

• Management review of audits and incident reports, and

• Training.

5.2 Waste Management Emissions and other waste discharges for the Project will be similar in nature to those of any standard

marine vessel and seismic operation. Waste management aboard the seismic vessels will be implemented

in a manner consistent with standard industry practices. The waste management procedures for each

specific vessel will be reviewed against applicable regulatory requirements for the region and

implemented in a manner that meets or exceeds those regulatory requirements.

5.3 Accidental Events Accidental events that might occur during the course of the seismic survey could include damage to or

loss of the towed streamers or source arrays, entanglement of seismic gear with fishing lines, vessel

collisions or spills of fuel into the ocean. There will be minimal amounts of marine fuel or other

contaminants on board the seismic vessels.

Seismic equipment will be retrieved from the water if sea states or wave heights reach unacceptable

limits. In case of severe weather, the vessels may return to shore until conditions improve.

The potential for entanglement of marine animals in the seismic equipment is reduced as a result of

inclusion of no tangle gear attached to the streamers. Additionally the utilization of a gradual pulse start

up as well as the presence of approved wildlife observers, often referred to as Marine Mammal Observers

(MMOs), on-board is anticipated to reduce the likelihood of conflict between marine species and seismic

vessels. Chase boats will also help minimize the risk of entanglements or collisions by scouting for

navigation hazards such as fishing boats, gear or other debris.

6. Environmental Features A Strategic Environmental Assessment (SEA) was completed in November 2011 for exploration activities

along the Southwestern Scotian Shelf (Hurley, 2011). This SEA corresponds with the land blocks

associated with EL 2423, 2424, 2425 and 2426 and the proposed Seismic Survey Area and Study Area.

Shell’s description of the physical and biological environmental conditions below is based upon the

information contained within the SEA document.

6.1 Physical environment The Shell exploration license land blocks are located approximately 350km south of Halifax in a regional

district identified as the Scotian Slope extending from the outer edge of the Scotian Shelf seaward to the

political and resource management border (Nova Scotia Museum of Natural History, 2012). Shell’s

Licenses are located in the southwestern portion of the Scotian Slope where water depths can range from

1000m to 3000m. The seafloor is mainly composed of silt, sand and clay material. Some of the geological

16

features present on the seafloor include iceberg furroughs and pits that have resulted in a complex and

irregular bottom.

The Southwest Scotian Slope area climate is heavily affected by the varying airstreams that converge in

this region. Fog is relatively common in spring and summer months and tropical storms frequent the area

in the late summer to early winter months. Meteorological and climate data for the Scotian Slope is

continuously collected from the Sable Island weather station. During the months of May to September

wind direction is most frequently southwest with an average wind speed in July of 4.8 m/s. Wave

conditions during the summer typically result in waves under 2m, but have been seen to exceed 5m in the

month of June. The conditions (wind, sea-state, ice, currents) that will be encountered during Project

activities are expected to be within the range of the conditions as described in the SEA document (Hurley

2011).

6.2 Fish, Fish Habitat and Fisheries A number of commercial demersal fish species, inclusive of cod, redfish, silver hake and American

plaice, are found in the region shifting from the upper banks in the summer to the lower banks in the

winter. Commercial fishing does occur though it is mostly concentrated along the shelf break in waters

between 200 and 1000m depth. Most resident deep water species (>900m) such as roughhead grenadier,

longnose chimera, deep-sea cat shark, boa dragonfish, blue hake and black dogfish, are identified as non-

commercial. The area is also a primary north-south migratory route for large pelagic fish, which results

in the seasonal presence of large marine species including sharks, swordfish, tuna, whales and sea turtles.

Further information regarding the fish species found in the SW Scotian Slope is detailed in the CNSOPB

SEA (Table 2) (Hurley, 2011).

Spawning by demersal fish is mostly concentrated over the shelf itself. During the spring, groups of cod,

haddock and flounder species have been observed to spawn on Sable Island, Browns Bank and Western

Bank. Concentrations of fish eggs and larvae from commercial fish species can be found along the shelf

banks from February to October.

6.3 Marine Mammals Marine mammal species are present within the Scotian Shelf and Slope area with heavy concentrations of

whales and seals identified around Sable Island and the Gully. Baleen whale species inclusive of

humpback, blue, fin, sei, northern right and minke whales are at their highest numbers from July to

November, but are present along the Scotian Shelf edge as early as March. Toothed whale species,

sperm, northern bottlenose and pilot, are present on the Scotian Shelf year-round with peak numbers

observed in summer and early fall each year. Grey, harbour, harp, ringed and hooded seals are present

along the Scotian shelf area and inshore waters, but are mostly concentrated around and north of Sable

Island (Hurley 2011, DFO 2011).

6.4 Marine Benthos Based on observations in nearby exploration leases, benthic diversity and abundance is estimated to be

low. Black corals and sea pens have been noted at depths up to 3000m, but coral development is likely

limited by the absence of hard substrates and low currents. The benthic community is estimated to consist

17

mainly of invertebrate groups such as anemones, ophiuroids, polychaetesm, sponges, bivalves, gastropods

and sea urchins (Hurley, 2011).

The shallow shelf break is characterized by large commercial crustacean species including Red and Jonah

crab as well as lobster. No noted shellfish spawning areas are known to occur in the SW Scotian Slope

Area.

6.5 Turtles Three species of turtle, leatherback, Atlantic loggerhead and Kemp’s Ridley are known to occur along the

Scotian shelf and slope areas. Both the leatherback and Atlantic loggerhead are commonly found in this

area during the summer months. Kemp’s Ridley has been observed in the area occasionally, but the

Scotian Slope is not identified as its normal foraging range (Hurley, 2011; DFO 2011). The green turtle

has also been identified as an occasional visitor in the area as a result of its wide range (Hurley 2011).

6.6 Birds Bird species are present year-round in the Scotian Shelf area with over 25 species having been observed.

During the summer months, offshore bird populations consist primarily of shearwaters and storm petrels

and kittiwakes, fulmars and alcids in the winter months. Migratory bird species inclusive of Roseate tern

and Ipswich sparrow, federally listed species at risk, present in the Scotian Slope area during their

seasonal migrations to and from Sable Island and their southerly overwintering habitat (Hurley 2011).

6.7 Species at Risk Species at Risk are those species that are designated as at risk under the Federal Species at Risk Act

(SARA). The CNSOPB SEA study identified four fish species listed under SARA to be at risk that may

occur within the SW Scotian Slope area. All four SARA fish species are considered to have a low

likelihood of occurrence within the SW Scotian Slope area as a result of preference for shallower water

depths or the Scotian Slope area being on the periphery of the species range. An additional 12 fish

species assessed to be at risk by the Committee on the Status of Endangered Wildlife in Canada

(COSEWIC), but not presently listed under SARA, were also identified. Three of these species were

identified to have a high likelihood of occurrence and five with a medium likelihood of occurrence within

the SW Scotian Slope area.

Five marine mammal species listed under SARA, were identified to have ranges which overlap with the

Project area. Two of these species, the Fin Whale and the Sowerby’s Beaked whale, are identified as

having a high likelihood of occurrence and one, the Blue whale, with a moderate likelihood. The

remaining two listed species, Northern Bottlenose whale and the North Atlantic whale, were identified to

have a low likelihood of occurrence based on preference for alternative habitat areas.

Two turtle species, one SARA listed, the Leatherback turtle and one COSEWIC assessed, the Loggerhead

turtle, were identified as having a medium likelihood of occurrence within the SW Scotian Slopes during

the summer months.

No SARA listed or COSEWIC assessed birds species with a high to moderate likelihood of occurrence

were identified for the SW Scotian Slope area. Two SARA listed migratory bird species, Roseate tern

18

and Ipswich sparrow, were identified to have a low likelihood of occurrence during seasonal migrations to

overwintering habitat.

Further details regarding the potential species at risk and their likelihood of occurrence within the Project

area are detailed in Table 2 of the SEA document (Hurley 2011).

6.8 Special Areas No identified special areas currently overlap with Shell’s proposed Seismic Study Area and Study Area.

Five special areas were identified by the SEA to be in the vicinity of the SW Scotian Slope Area. These

areas, listed in order of proximity to the closest Shell Exploration License boundary with approximate

distances noted in parenthesis, include Roseway Basin Right Whale Critical Habitat (45 km), Northeast

Channel Coral Conservation Area (48 km), Georges Banks Oil and Gas Moratorium area (49 km),

Haddock Box (50 km). Sable Island National Park and The Gully are both over 175 km from EL 2426

and are considered by Shell to be sufficiently distanced that they will likely not be affected by seismic

activities. Further information regarding the special areas within the vicinity of the SW Scotian Slope

areas is provided in the CNSOPB SEA (Section 2.12) (Hurley 2011).

7. Waterway Use

7.1 Commercial Fisheries Commercial fishing occurs within the SW Scotian Slope Area of the proposed seismic survey

concentrated along the Scotian Shelf and Slope in depths ranging from 200 to 1000m dependant on the

species. Commercial groundfish species include redfish, cod, haddock, Atlantic halibut, pollocks, skate,

white hake, catfish, monkfish, plaice, flounders, turbot and argentine are caught using longline and

bottom trawls. The SEA has identified the annual Atlantic halibut fishery from January through April as

notable. Pelagic species fished commercially mostly include tuna, swordfish and sharks. Commercial

fishing for these species usually involves drifting or floating longlines that can reach up to 40 km in

length. Additionally, a number of shellfish species are commercially fished within the SW Scotian Slope

area. Lobster, Jonah crab and deep-sea crab are caught in deep water canyons along the slope.

Based on information outlined in the CNSOPB SEA, commercial fishing for large pelagic species has the

largest overlap with the proposed Seismic Survey Area and Study Area. Offshore fishing for lobster, crab

and groundfish are also known to occur within the larger proposed Study Area, but fall outside of the

currently proposed Seismic Study Area (Section 4.3.2) (Hurley 2011).

Annual stock surveys are conducted by DFO inclusive of a summer groundfish survey, halibut survey and

fall and summer sentinel survey. The latest publicly available information from these surveys will be used

in the EA report.

7.2 Navigable Waters In addition to traffic from offshore oil and gas exploration and development activity, the SW Scotian

Slope area is host to a variety of ocean vessel traffic. A considerable volume of commercial shipping

traffic is present as a result of shipping to and from the eastern seaboard of the United States as well as

19

from the Great Lakes and Europe. The Department of National Defense (DND) also has ‘Operations

Areas’ within the SW Scotian Slope area where training and operations are conducted.

7.3 Mitigation of Potential Impacts Shell will implement the following measures in association with the Project to minimize the potential

impacts to the environmental features listed above:

• Shell and its contractors will comply with the applicable requirements in the Geophysical,

Geological, Environmental and Geotechnical Program Guidelines.

• Shell and its contractors will comply with the applicable requirements in Statement of Canadian

Practice for the Mitigation of Seismic Noise in the Marine Environment (DFO 2008).

• Dedicated wildlife observers will be present on board of the seismic vessels throughout the

duration of the survey to identify any potential interactions with turtles, marine mammals or

birds.

• A trained Fisheries Liaison Officer will be available to assist in the event that fisheries concerns

arise during the seismic surveys. This will assist with communication between parties operating

in the Survey Area and help to avoid conflicts between survey and fishing equipment.

Additional mitigation measures may be developed as part of the EA process.

20

References: Department of Fisheries and Oceans. (2008) Statement of Canadian Practice on the Mitigation of Seismic

Noise in the Marine Environment. 5 p.

Department of Fisheries and Oceans (2011). State of the Scotian Shelf Report: The Scotian Shelf in

Context. Accessed at: http://coinatlantic.ca/index.php/state-of-the-scotian-shelf. on May 23, 2012.

Fischer, P.A. (2008). The ‘azimuth explosion’ continues in marine seismic, World Oil, 1, 93-96.

FLTC Services Ltd. (2009). Seismic Surveys. Accessed at: http://fishsafe.eu/en/offshore-

structures/seismic-surveys.aspx on June 10, 2012.

Geomatic Solutions. (2012) Seismic Surveys. Accessed at: http://geomaticsolutions.com/seismic-surveys/

on June 8, 2012.

Hurley, Geoffrey V. (2011) Strategic Environmental Assessment – Petroleum Exploration Activities on

the Southwestern Scotian Slope. Consultant report was prepared by Hurley Environment Ltd. for the

Canada-Nova Scotia Offshore Petroleum Board November, 2011. 94 p. + appendices.

Nova Scotia Museum of National History. (2012) 940 Scotian Slope. Accessed at

http://museum.gov.ns.ca/mnh/nature/nhns2/900/940.htm on May 10, 2012.

APPENDIX 1

Shell HSSE SP Commitment and Policy

22

APPENDIX 2

Shell’s Life-Saving Rules

24

Work with a valid work

permit when required

Do not walk under a

suspended load

Conduct gas tests when

required

Do not smoke outside

designated smoking areas

Verify isolation before

work begins and use the

specified life protecting

equipment

No alcohol or drugs while

working or driving

Obtain authorization

before entering a confined

space

While driving, do not use

your phone and do not

exceed speed limits

Obtain authorization

before overriding or

disabling safety critical

equipment

Wear your seat belt

Protect yourself against a

fall when working at

height

Follow prescribed Journey

Management Plan