Environmental Impact Assessment Review Process for Oil and Gas Projects In Saskatchewan Larry Lechner, P. Eng. Director Environmental Assessment Branch The Saskatchewan Natural Gas Advantage Seminar November 21, 2005

Today’s objective…  To provide an overview of Saskatchewan Environment’s environmental review process for Oil and Gas projects –Environmental planning –Types of environmental concerns –Environmental review process Oil and Gas Review Process

Saskatchewan Environment’s Vision…  A high quality environment and healthy ecosystems in perpetuity, which sustain social, health and economic well-being for Saskatchewan citizens. Oil and Gas Review Process

Department Structure…  Central Office: Regina Environmental Assessment  Field Offices: Grasslands (Swift Current) Parkland (Saskatoon, Melville) Northwest (Meadow Lake)  Oil and Gas Coordinators – SE’s primary points of contact for oil & gas on environmental issues (contact names on web page) Oil and Gas Review Process

Environmental Planning…  Saskatchewan emphasizes early environmental planning and local consultation –Integral part of project development/Key to obtaining approvals –Avoids unnecessary impacts –Reduces liability for reclamation –Developers need to fully evaluate the project and site conditions to identify and resolve concerns –Early consultation with O&G coordinators encouraged –SE will work with you to identify concerns and “build the best project” –Prefer to avoid problems rather than fix them after the fact Oil and Gas Review Process

Types of Environmental Concerns…  Focus on natural environment and environmentally sensitive areas –Native vegetation – grasslands, forest –Rare species – plant and animals –Sensitive terrain and unique landscapes –Fish and fish habitat –Wildlife and wildlife habitat –Surface water –Groundwater –Heritage resources  Actual concerns dependent on specific location Oil and Gas Review Process

Environmental Review…  “Screening” is the process used to evaluate potential impacts  Usually at SE field office, in co-operation with land administrator on Crown land  Drilling projects on private land generally are self- screened by the developer using the Private Land Checklist  Most other projects are reviewed by SE Oil & Gas Coordinator based on Project Proposal  Project may require other approvals after receiving environmental clearance Oil and Gas Review Process

Formal Objectives of Review…  Regulatory clearance under Environmental Assessment Act  Identify other permitting requirements  Provide single, coordinated approval dealing with environmental and land issues when more than one department is involved (Harmonized review / approval process between SE + SAF) Oil and Gas Review Process

Informal Objectives of Review…  Promote up-front environmental planning as part of project planning by developer  Ensure environmental protection as part of development process  Provide basis for follow-up Oil and Gas Review Process

Environmental Assessment Review…  Key review process – Evaluate projects to identify: -impacts on any unique, rare or endangered feature of the environment -provincial resource use conflicts -unregulated releases of pollutants or by-products -widespread public concern because of environmental changes -impacts of new resource-use technology -significant environmental impacts from this or associated projects Oil and Gas Review Process

Environmental Assessment Review…  4 types of review depending on concerns: i)Project Proposal screening ii)Project on private lands (Private Land Checklist) iii)Environmental Protection Plan (EPP) iv)Full Scale EIA Oil and Gas Review Process

Environmental Assessment Review… i) Project Proposal Screening : -projects on crown land where significant concerns are unlikely; -projects screened at SE field offices; -emphasis on problem identification and avoidance; -one-stop environmental clearance from SE; -early planning and consultation are key -single report to SE and SAF on Crown grazing lands -report to SE on SE lands -turnaround time: within 10 working days of receiving a compete proposal Oil and Gas Review Process

Environmental Assessment Review… Guidance documents prepared to assist Proponents with Environmental Screening (Prepared with industry involvement through SPIGEC) : -”Environmental Assessment Act Guide to Proposal Development- Oil and Natural Gas Projects”, November ”Oil and Gas Development Survey Guidelines”, Saskatchewan Crown Agriculture and Resource Land, February 1999 Oil and Gas Review Process

Environmental Assessment Review… ii)Projects on private lands: - guidance document prepared to assist proponents “ Environmental Evaluation Checklist For Oil and Gas Development Projects on Private Land in Saskatchewan”, December 2000 (Prepared with industry involvement through SPIGEC): - self-screened by the developer - report to SE using Guide to Proposal Development only if checklist identifies concerns Oil and Gas Review Process

Environmental Assessment Review… iii)EPPs - Projects where significant concerns are likely - an interagency review coordinated by EA Branch (<10%) - “Guidelines for Preparation of an Environmental Protection Plan(EPP) for Oil & Gas Projects” – Appendix 2 – Areas where EPPs Are Likely Required - focus on demonstrating that planning has addressed key concerns - requires 30-day review by provincial & federal agencies – 2932 wells drilled, [204 wells, 7 seismic projects and 5 flowline projects subject to EPP review, most active areas: Shackelton SH, Manitou SH, Great SH, Grand Cheviot] (Oct 21/2005) Oil and Gas Review Process

Environmental Assessment Review… iv)Full-scale EIA - projects with major concerns after EPP–level planning is complete (rare – 9 for O&G projects in 25yrs) - more comprehensive than EPP - recent examples--- the Great Sand Hills - terms of reference prepared for project - EIS prepared - formal public involvement - final Ministerial Decision – yes, no, conditions - takes longer – 6 months to 1 year Oil and Gas Review Process

Concluding Remarks / Key Messages …  Up front planning is key  Show environment is part of project  Incorporate best practices  Full disclosure – details – follow guidelines  Consult early & often – government and local community Oil and Gas Review Process