Page 7 1 NON-TECHNICAL SUMMARY
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1 Page 7 1 NON-TECHNICAL SUMMARY This section provides a non-technical summary of the Environmental Impact Assessment (EIA) for Shell and its Consortium partners shallow coring program proposed to occur offshore northwest Greenland in The summary provides an overview of the regulatory requirements, a description of the Project, an overview of the environmental setting, the methods used to assess impacts, proposed mitigation measures, predicted impacts of noise and other Project activities, and it identifies data gaps and uncertainties. 1.1 Regulatory, Policy and Administrative Framework The EIA was prepared to meet appropriate Greenlandic legislation and regulatory requirements, incorporate relevant international standards, and integrate Shell s policies. Key guidance documents used to prepare this EIA include: Guidelines for preparing an Environmental Impact Assessment (EIA) report related to stratigraphic drilling offshore Greenland, April 2011 (NERI and BMP 2011a) Guidelines for preparing an EIA report for activities related to hydrocarbon exploration and exploitation offshore Greenland, January 2011 (NERI and BMP 2011b). Guidelines for application, execution, and reporting of offshore hydrocarbon exploration activities (excluding drilling) in Greenland, December 2011 (BMP 2011). Guidelines to EIA of seismic activities in Greenland waters, 3 rd revised edition, December 2011 (Kyhn et al. 2011). As required in Bureau of Minerals and Petroleum (BMP) Guidelines, Best Available Technology (BAT) and Best Environmental Practice (BEP; e.g., NORSOK, OSPAR, and MARPOL) were considered and incorporated into the Project where possible. Shell s Health, Safety, Security, Environment, and Social Performance Control Framework and Corporate Standards are incorporated into the Project and the EIA. 1.2 Project Description Shell Kanumas A/S (Shell), acting as an operator on behalf of the Baffin Bay operators and licensee consortium (ConocoPhillips, Maersk Oil, Cairn Energy, Nunaoil, GDF SUEZ, Dong Energy, and Statoil), is proposing to conduct a shallow coring program offshore northwest Greenland. The shallow coring or stratigraphic drilling is proposed to occur from early August to early October The coring program would involve the use of one vessel to acquire 11 coring samples at seven sites (Figure 1-1). Six sites are located north of the Qamut license and one site is located in the Anu license. The primary objective of the shallow coring program is to provide an understanding of the age and properties of the sediment and subsurface rock needed to make exploration decisions. Water depths at the coring sites range from about m.
2 Page 8 The coring program will be conducted by the contractor SIEM Offshore/Overseas Drilling Ltd. using the drilling vessel M/V JOIDES Resolution. The vessel, which can accommodate a crew of about 130, will not require resupply, refueling, or crew change. Coring depths are expected to average 500 m and range from m; the amount of time to drill an average core of 500 m is on the order of 4-5 days. The core diameter will be 25 cm. The JOIDES Resolution will use a hollow drill string through which seawater, the drilling fluid, is pumped to lubricate and cool the drill bit and remove cuttings (i.e., sediment and rock) from the borehole. At some coring sites, water-based drilling mud that contains naturally occurring minerals may be injected into the borehole to help remove the cuttings. The drilling vessel maintains position over the coring site by using Dynamic Positioning (DP) thrusters and satellite positioning systems. After coring at a site is complete, a small airgun array will be used to conduct a Check-Shot/Vertical Seismic Profiling procedure. This involves lowering a geophone down the borehole, which records intense sound pulses emitted from the airguns. The airguns will be fired 5 to 10 times per borehole to collect the required data. These data are used to more accurately determine the depth of the borehole in order to relate the borehole to seismic data collected during previous 2-D surveys.
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4 Page Environmental Setting The EIA provides a general overview of the baseline conditions in and near the area of the proposed shallow coring program. The Strategic Environmental Impact Assessment (SEIA) prepared for the Baffin Bay assessment area by the Danish Centre for Environment and Energy (DCE; Boertmann and Mosbech 2011) was a key source of information. Emphasis in Shell s EIA was placed on the biological and socioeconomic components that could be affected by Project activities. Information on fish, invertebrates, seabirds, marine mammals, commercial fisheries, subsistence fisheries, and subsistence hunting was reviewed. As part of the review, the conservation status of species occurring in and near the Project Area as assessed in Greenland (Red List) and internationally was determined. Baseline conditions were reviewed, particularly the distribution and abundance of species and their activities (i.e., breeding, migrating, feeding) near the proposed coring sites. The SEIA identified bowhead whales, narwhals, beluga whales, and walruses as the most sensitive species to seismic noise (from the Check-Shot/VSP array in this EIA). The occurrence of bowheads, belugas, and walruses do not generally overlap with the period when Shell is proposing to conduct shallow coring the exception are belugas that migrate in October in coastal waters. Of most relevance to this EIA are narwhals that summer primarily in coastal waters of Melville Bay and which are considered Critically Endangered on the Greenland Red List. The Melville Bay population is estimated at about 6,000 narwhals but this estimate is thought to be low. Narwhals migrate south to a deep basin of Baffin Bay from mid October to mid December; they feed there during the winter. A Narwhal Protection Zone (NPZ I) has been established in Melville Bay that restricts seismic activity from 1 June to 15 October. The closest shallow coring site is about 9 km from this protection zone. There is a subsistence hunt for narwhals in the coastal waters of Melville Bay that occurs during the same months (August and September) as the proposed coring program. The communities of Savissivik and the settlements of Upernavik participate in this hunt. Savissivik is located about 40 km from the closest coring site. 1.4 Impact Assessment Methods The methods used to assess the impacts of the Project were based in part on those used in the SEIA prepared by the Danish Centre for Environment and Energy (DCE; Boertmann and Mosbech 2011). Key aspects of the environment, typically called Valued Ecosystem Components (VECs) in EIAs, were selected for assessment including several marine mammals (narwhal, beluga whale, bowhead whale, walrus, ringed seal, bearded seal, and polar bear), seabirds, fish and invertebrates as well as their eggs and larvae. Commercial fisheries (mostly Greenland halibut and shrimp), subsistence fisheries, and the marine mammal subsistence hunt were considered VECs as well.
5 Page 11 One of the primary aspects of the proposed activity causing concern is the underwater noise created by the small airgun array used in the Check-Shot/VSP procedure and by the DP thrusters of the coring vessel and the impacts that such noise could have on narwhals and other marine mammals. To understand the effect of this noise, Shell conducted acoustic modelling of the Check-Shot/VSP array and the DP thrusters to estimate how far and at what sound levels this noise would travel. This information along with previous studies of how VECs respond to noise, allowed for predictions of whether the Project could have negligible, minor, moderate, or major impacts (magnitude), the size or spatial extent (km 2 ) of the impact, and how long an impact could occur (duration). Each impact prediction is accompanied by a level of confidence. Measures were identified to reduce or mitigate impacts. All of these factors were used to assess whether the proposed Project could significantly affect a VEC. In this EIA, a significant impact is defined as having a major magnitude of any duration or spatial extent; or having a moderate magnitude for a duration of greater than one year and over a spatial extent greater than 100 km 2. The magnitude of impacts can be rated as: Major: An impact on a VEC is rated major if it is judged to result in a 10%, or greater, change in the size or health of a population or the carrying capacity of its habitat, or affect the subsistence resource to an extent that is not socially tolerated. A change in a population can result from an absolute reduction in population size or from displacement of animals to areas outside the area of consideration. Moderate: An impact on a VEC is rated moderate if it is judged to result in a 1 10% change in the size or health of a population or the carrying capacity of its habitat, or noticeably affect the subsistence resource involved; impacts would be socially tolerated. Minor: An impact on a VEC is rated minor if it is judged to result in a <1% change in the size or health of the population or the carrying capacity of its habitat, or only slightly affect the subsistence resource involved. Negligible: Negligible impacts would result in no to very minimal effects to a VEC. 1.5 Summary of Potential Impacts and Mitigation Measures The main Project activity of concern is the underwater noise created by the Check- Shot/VSP array, as well as the noise from DP thrusters, and this was the focus of the EIA for each VEC. Particular emphasis was given to narwhals, and the impacts of noise on their hearing and behaviour. The impacts of drill cuttings and mud on marine life on the seafloor (i.e., benthos) near the coring sites were also assessed. The cuttings and mud will smother benthos in the immediate area around the borehole. Other Project activities like routine discharges of grey water (showers, wash water), black water (treated sewage), and macerated food waste and the physical presence of the vessel were also assessed but are not included in this non-technical summary because impacts were considered negligible.
6 Page Mitigation Measures As required by BMP, an Environmental Management Plan was prepared that includes the monitoring and mitigation measures planned to reduce impacts. Mitigation measures incorporate BEP and BAT and as a minimum follow appropriate BMP guidelines and legislation; mitigation measures are summarized in Table 1-1. TABLE 1-1. Summary of key mitigation measures. Check-Shot/VSP Array Noise Avoid Narwhal Protection Zone I Avoid narwhal and beluga migration periods Use of 2 Marine Mammal and Seabird Observers on the coring vessel Ramp up of the array Delay of ramp up for marine mammals seen inside of safety zone (500 m) Shutdown of airguns for marine mammals seen inside of safety zone Only operate during daylight and periods of good visibility Seabed Disturbance Use seawater as primary drilling fluid If muds are required, Attapulgite and perhaps barite (both OSPAR approved) will be used Use video camera to investigate seabed prior to coring to confirm absence of corals or sponges General Ship Operations Vessel will steer a straight course and maintain a constant speed whenever possible Reduce vessel lighting whenever it is safe and possible to do so to reduce chances of attracting seabirds Rescue and release any stranded seabirds Crew will keep a log of sightings and contacts with fishing (and other) vessels Emissions and Discharges Vessel will only use gasoil with a sulphur content of less than 1.5% (weight) Vessel will meet or exceed regulations (MARPOL) for vessel discharges and emissions Unplanned Events Emergency Response, Spill Response, and Ice Management plans Oil spill drills and oil spill kits Vessel will not refuel or require resupply Communications Meet with stakeholders, including communities to provide information about the Project and its potential impacts Notification of the shallow coring program details to BMP, Royal Greenland A/S, shipping and harbour authorities, and hunter associations before the start of the program Establish a grievance mechanism, that offers various ways (e.g., telephone, , personal contact) to enable local stakeholders to contact Shell directly to ensure timely resolution of concerns and complaints Start-up Meeting to ensure Shell and its Contractors fully understand mitigations Shell will contact the DCE prior to survey start to ensure that its monitoring and mitigation plan for marine mammals and seabirds meets DCE protocols
7 Page Overview of Previous Studies A thorough review of previous studies on noise impacts for all VECs was conducted for the EIA. It is important to note that Check-Shot/VSP procedures use small airgun arrays and are limited in duration compared to 2-D or 3-D seismic surveys. As noted earlier, the impacts of noise on marine mammal hearing and behaviour were assessed in the EIA. There is some evidence that belugas can incur temporary hearing loss (or impairment) if they are exposed to seismic noise at close distances. There have been no studies of permanent hearing damage caused by seismic noise. There have been few studies of beluga whale response to seismic surveys and no such studies are available for narwhals. Seismic monitoring programs (Miller et al. 2005) involving intensive aerial surveys and ship-based observations were conducted in the Canadian Beaufort Sea in Results suggest that belugas tended to avoid the area of seismic operations (a 3-D survey) by km. There have been no studies of narwhal hearing impairment or changes in behaviour of narwhals attributable to airgun sounds. For that reason, studies of beluga whales were used to assess potential impacts on both belugas and narwhals Residual Impacts After inclusion of the above-noted mitigation measures, there are no significant residual impacts predicted for the proposed shallow coring program (Table 1-2). All of the potential impacts (for routine activities, seabed disturbance, potential accidental spills of small fuel amounts, and coring vessel noise) considered for VECs have a magnitude rating of negligible, negligible to minor, or minor. The small Check-Shot/VSP array produces much lower sound levels than those made by a larger airgun array used during 2-D and 3-D seismic surveys. Based on a series of precautionary steps, it was predicted that 0.01% of the Melville Bay narwhal population may avoid the Check-Shot/VSP array when coring activities occur closest to the Narwhal Protection Zone I. The proportion of narwhals affected decreases when coring activities occur at farther distances from Melville Bay. Narwhals are not predicted to incur hearing damage from Check-Shot/VSP array noise given that narwhals (and other marine mammals) are expected to avoid at least the immediate area around the array and that mitigation measures (ramp up delays and array shutdowns in a 500 m zone; no airgun use during periods of poor visibility) will reduce exposure to sound levels thought to be high enough to cause hearing damage. Similarly, belugas are not expected to incur hearing damage and residual impacts on hearing were assessed as negligible. The impact of noise on beluga whale behaviour was judged as minor.
8 Page 14 TABLE 1-2. Summary of impact predictions for VECs and noise and for seabed disturbance and fish/invertebrate VECs. Project Activity / VEC Impact Magnitude Significance Check-Shot/VSP Array and DP Thruster Noise Narwhals: hearing Level of Confidence impacts Negligible Not Significant High Narwhals: behaviour impacts Minor Not Significant Medium Other marine mammals: hearing impacts Negligible Not Significant High Other marine mammals: behaviour impacts Minor Not Significant Medium Seabirds Negligible Not Significant High Marine mammal hunt Minor Not Significant Medium Fish and invertebrates (including eggs and larvae) Minor Not Significant Medium Commercial fisheries Minor Not Significant High Subsistence fishery Minor Not Significant High Seabed Disturbance a Fish and invertebrates (including eggs and larvae) Minor Not Significant High a Impacts of seabed disturbance (cuttings and mud) on other VECs were all negligible with high levels of confidence. The level of confidence in predictions for impacts of noise is ranked as medium for narwhal and beluga behaviour because there is no information on how narwhals respond to airgun noise and beluga studies are limited. Similarly, a confidence level of medium was given for fish and invertebrates because of limited information available on the impacts of airgun noise Cumulative Impacts The potential for cumulative impacts from all proposed activities has also been assessed. In addition to the proposed shallow coring program, Shell, ConocoPhillips and Maersk Oil are proposing to conduct seismic surveys during July to September 2012 in the Anu, Napu, Qamut, and Tooq licenses. It is possible that marine mammals, including narwhals, could be exposed to noise from some or all of these seismic and shallow coring operations. It is highly unlikely that the cumulative impact of the three seismic programs and shallow coring program would affect 10% or more (i.e., the criterion for assigning an impact rating of major ) of narwhals in the Melville Bay area. It is far more likely that the combined programs might affect 2-4% of the narwhal population and that impacts would be not significant. The level of confidence in this prediction is low to medium as it is uncertain if cumulative impacts would be additive or whether habituation would occur and behavioural response distances would decrease. Because of this, a precautionary approach has been taken in this impact assessment.
9 Page Data Gaps and Uncertainties One of the data gaps in this EIA is the absence of information on how narwhals respond to seismic noise, i.e., from the Check-Shot/VSP array this reduces the confidence in impact predictions. There is even more uncertainty in how multiple seismic programs and to a limited extent, a shallow coring program, will contribute to potential cumulative impacts on narwhals (and other VECs). Discussions have commenced regarding DCE/GINR-led studies designed to investigate the potential cumulative impacts assessed in this EIA, with emphasis on narwhals. Three studies are planned including those on sound travel of seismic noise, narwhal response to seismic noise, and the impacts of seismic noise on subsistence hunting in Melville Bay. Shell is committed to working closely with BMP, DCE and other Operators to facilitate a successful research program. This program will serve to address data gaps and provide a better basis for mitigation measures in future years.
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