Husky Oil Operations Limited
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1 Husky Oil Operations Limited 707 8th Avenue S.W. Bus: (403) Box 6525, Station D Fax: (403) Calgary, Alberta, Canada T2P 3G7 October 31, 2014 Sahtu Land &Water Board SLWB File: S13L1-005 Box 1 MWH File: Fort Good Hope, XOE OHO Attention: Bakhtiyor Mukhammadiev, Regulatory Specialist Re: Husky Oil Operations Limited 2014 Summer Site Inspection Report for Water Licence S13L1-005 (Slater River Wellsites and Groundwater Wells) Please consider the following information in response to the requirements outlined under the Terms and Conditions of the Husky Oil Operations Limited (Husky) Water Licence S13L Part B, Subpart 2(fl of the Terms and Conditions states that the Licensee shall submit to the Board, the Annual Summer Site Inspection report, detailing the results of the inspection as set out in Part E, Conditions Applying to Closure and Reclamation, sub-parts (1) to (5) inclusive. Northern EnviroSearch (Tulita) Ltd. (NESTL) was retained by Husky to conduct the Summer Site Inspections (SSI) and prepare a summary of their findings. Site photographs for the Slater River wellsites and monitoring (groundwater and thermistor) wells are attached. The Slater River SSI was conducted on September 16 and September 20, 2014 under mild, dry weather conditions (temperatures averaged C). Little Bear N-9 Wellsite (N64 58' 55.4", W126 31' 26.9") The N-9 wellsite is 23 km from the Government of Northwest Territories (GNWT) winter road and was constructed and drilled during the winter of 2011/2012. The site was cleared of trees using a D6 bulldozer. The bulldozer blades were elevated to reduce the potential for disturbance to the vegetative ground cover and the brush piles were mulched and spread over the lease. The winter access crosses through the centre of the wellsite and there is also asemi-circle detour around the wellsite required for non-wellsite traffic. Operational space on the lease was leveled using a snow and ice pad and minimal disturbance techniques. The well was shut in at the end of the drilling program and all surface equipment was removed. The chained well head and guard rail remain onsite. A permanent metal post with the well identification placard was installed on the well ground. In summer 2012, Husky conducted atwo-day garbage and debris clean-up of the N-9 site. During the winter of 2012/2013, Husky conducted completion activities. The well was shut in at the end of the 2012/203 completions program. A second clean-up of garbage and debris was completed during the summer of 2013.
2 Sahtu Land &Water Board 2014 SSI Report Water Licence S13L1-005 Bakhtiyor Mukhammadiev Husky Oil Operations Limited October 31, 2014 Page 2 of 4 The following items were noted during the 2014 inspection (Photographs 1 to 7): The wellhead was chained and securely locked and all gauges showed no pressure; Standing water was present inside the well cellar; The lease pad was spongy in some areas, but standing water was not observed and natural drainage on the lease seemed undisturbed; New vegetation and signs of regrowth were observed, including on the access road; No erosion or operational impacts were observed at this site; and, Mulched woody debris spread across the lease has provided a measure of erosion control and protection of the underlying ground cover (muskeg) from significant scalping or rutting. Actions Minor trash clean-up was conducted during the site inspection. Recommendation No additional actions are recommended at this time. The site will be inspected again in the summer of Little Bear H-64 Wellsite (N63 53' 28.7", W126 11' 26.9") The H-64 wellsite is approximately 23 km from the N-9 wellsite and was constructed and drilled during the winter of 2011/2012. The site was cleared of trees using a mulcher and the material was spread over the lease. Operational space on the lease was leveled using a snow and ice pad and minimal disturbance techniques. The well was shut in at the end of the drilling program and all surface equipment was removed. The chained well head and guard rail remain onsite. A permanent metal post with the well identification placard was installed on the guard rail. In the summer of 2012, Husky conducted atwo-day garbage and debris clean-up of the H-64 site. During the winter of 2012/2013, Husky conducted completion activities. The well was shut in at the end of the 2012/2013 completions program. A second clean-up of garbage and debris was completed during the summer of The following items were noted during the 2014 summer site inspection (Photographs 8 to 14): The well head was chained and securely locked and all gauges showed no pressure; Minor amounts of garbage and debris were removed from the site; Standing water was present inside the well cellar; New vegetation and signs of regrowth were observed, including on the access road; No erosion or operation impacts were observed at this site; and, Mulched woody debris spread across the lease has provided a measure of erosion control and protection of the underlying ground cover (muskeg) from significant scalping and rutting.
3 Sahtu Land &Water Board 2014 SSI Report Water Licence S13L1-005 Bakhtiyor Mukhammadiev Husky Oil Operations Limited October 31, 2014 Page 3 of 4 Actions Minor trash clean-up was conducted during the site inspection. Recommendations No additional actions are recommended at this time. The site will be inspected again in the summer of Little Bear G-70 Wellsite (N64 59' 28.3", W126 27' 162") The G-70 wellsite has not been cleared and no drilling activities have occurred Wellsite (N65 0' W126 23' ') The original 0-41 well lease area of 130 m x 200 m (2.6 hectares) was cleared however the 0-41 well was not drilled. The 0-41 well lease area is approved under WL S13L1-006 to be converted into a storage area. The proposed 0-41 location was inspected by air during the spring inspection and via foot during the fall inspection. For details of the inspection please refer to the 2014 Semi-Annual Site Inspection Report under WL S13L Monitoring Wells (Groundwater and Permafrost) Inspection of the permafrost monitoring and groundwater wells were included in the 2014 inspection: MW-01B & MW-01T MW-04T (N64 29' 30.6' W126 19" 59.4') MW-09A/B & MW-09T (N64 53' 20.8" W126 11' 39.6) MW-11T MW-12T MW-16T MW-17T MW-19B & MW-19T The following items were noted during the 2014 summer site inspection (Photographs 15 to 30): Wells were marked with red flags; Subsidence of abandoned well was evident at MW-19 (Photograph 30); No signs of erosion were observed on any of the well sites which had been drilled; and, New vegetation and signs of regrowth were observed, including on the access. Actions No actions were taken during the inspection. Recommendation Areas where subsidence was observed should be filled in, preferably with native material on site, if available.
4 Sahtu Land &Water Board Bakhtiyor Mukhammadiev October 31, SSI Report Water Licence S13L1-005 Husky Oil Operations Limited Paae 4 of 4 These sites will be inspected again in the summer of trust this meets the information requirements for the annual Summer Site Inspection report under Water Licence S13L If you have any questions, please contact the undersigned at (403) or by (Ken.Hansen(a~huskvenergy.com). Regards, HUSKY OIL OPERATIONS LIMITED. ~ Ken Hansen Project Manager -NWT cc: Katherine Ades Water Resource Officer, GNWT-ENR Stephen Deschene A/Regional Superintendent, GNWT-Lands Darren Heck Environmental Project Manager, NESTL Jenica von Kuster Environmental and Regulatory Coordinator -NWT, Husky Attach: 1. Site photographs
5 Photograph ID: 1 Little Bear N-9 Well Site East Aerial view of the N-9 Well Site. Photograph ID: 2 Little Bear N-9 Well Site Southwest View from the northern corner looking SW. Page 1 of 15
6 Photograph ID: 3 Little Bear N-9 Well Site Northeast View from the N-9 lease area north along the winter access route. Photograph ID: 4 Little Bear N-9 Well Site Northwest View from the eastern corner of the site towards the north. Page 2 of 15
7 Photograph ID: 5 Little Bear N-9 Well Site Northeast View from the southern corner of the site towards the NE. Photograph ID: 6 Little Bear N-9 Well Site South View from the N-9 lease area south along the winter access route. Page 3 of 15
8 Photograph ID: 7 Little Bear N-9 Well Site North View of the N-9 well head. Well head was chained and locked. Photograph ID: 8 Little Bear H-64 Well Site West Aerial view of the H-64 Well Site. Page 4 of 15
9 Photograph ID: 9 Little Bear H-64 Well Site South View from the northern corner of the site looking towards the south and access route to MW-19. Photograph ID: 10 Little Bear H-64 Well Site West View from the eastern corner of the site looking towards the west. Page 5 of 15
10 Photograph ID: 11 Little Bear H-64 Well Site North View from the southern corner of the site looking towards the north. Photograph ID: 12 Little Bear H-64 Well Site East View from the western corner of the site looking towards the east. Page 6 of 15
11 Photograph ID: 13 Little Bear H-64 Well Site South View of the H-64 well head signage. Photograph ID: 14 Little Bear H-64 Well Site South View of the H-64 well head. Well head was chained and locked. Page 7 of 15
12 Photograph ID: 15 Monitoring Well MW-04T West View of the MW-04T thermistor monitoring location. All wells were sign posted and flagged. Photograph ID: 16 Monitoring Well MW-12T East View from the SW corner looking east along the access route. Page 8 of 15
13 Photograph ID: 17 Monitoring Well MW-12T Northeast View from the SE corner looking towards the NE corner of the MW-12T well pad. A small clearing was observed adjacent to the MW-12T area. Photograph ID: 18 Monitoring Well MW-12T Moose rutting area observed adjacent to the MW-12T well pad. Page 9 of 15
14 Photograph ID: 19 Monitoring Well MW-12T West View from the NE corner looking towards the NW corner of the site. Photograph ID: 20 Monitoring Well MW-12T Southwest View of the thermistor monitoring location MW-12T from the NE corner. Page 10 of 15
15 Photograph ID: 21 Monitoring Well MW-17T Northeast View from the southern corner looking NE along the access route. Photograph ID: 22 Monitoring Well MW-17T Southeast View of the thermistor monitoring location MW-17T from the western corner looking across the site towards the SE. Page 11 of 15
16 Photograph ID: 23 Monitoring Well MW-17T South View from the northern corner looking south. Photograph ID: 24 Monitoring Well MW-17T Southwest View from the eastern corner looking SW along the access route Page 12 of 15
17 Photograph ID: 25 Monitoring Well MW-19 Northeast Aerial view of the MW-19 well. Photograph ID: 26 Monitoring Well MW-19 North View from the southern corner looking across the well pad towards the north. Page 13 of 15
18 Photograph ID: 27 Monitoring Well MW-19 Southeast View from the western corner looking towards the southern corner of the site. Photograph ID: 28 Monitoring Well MW-19 South View from the northern corner looking across the well pad towards the south. Page 14 of 15
19 Photograph ID: 29 Monitoring Well MW-19 West View from the eastern corner looking towards the northern corner. Photograph ID: 30 Monitoring Well MW-19 Southwest Subsidence of the ground was observed in the centre of the MW-19 well pad. Page 15 of 15
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