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L a rd n a d o and ter B Wa
Application for: New Land Use Permit X Amendment to ______
1. Applicant’s name and mailing address: Fax number: (867)669-2721 Kate Hearn Contaminants and Remediation Directorate Telephone number: (867)669-2769 Indian and Northern Affairs Canada - NT Region Box 1500 Yellowknife NT XIA 2R3
2. Head office address: Fax number: N/A
Field supervisor: Radiotelephone: Telephone number:
3. Other personnel (subcontractor, contractors, company staff etc.) The contract has been awarded to Shehtah Nabors.
Shehtah Nabors LP, 2800 500 4th Avenue SW, Calgary, AB T2P 2V6 Shehtah is a partnership between Shehtah Drilling LP and Nabors Canada. The partnership was formed to focus on work in Northern Canada. Shehtah Nabors LP will be responsible for overall control of the project.
Abandonrite, 2800 500 4th Avenue SW, Calgary, AB T2P 2V6 Abandonrite is a service provided by Nabors Canada, is a consulting group specialized in oil & gas well abandonment, suspension and surface lease reclamation. Abandonrite will coordinate and manage the project, provide abandonment program, supervise the field operation and pay all third party costs.
PAJAK Engineering, Suite 300, 707- 7th Avenue SW, Calgary, AB T2P 3H6 PAJAK will supply on-site drilling supervisor, safety coordinator and supply some other technical support if required.
Rowe's Construction, 25 Studney Drive Hay River, NT X0E 0R6 Rowe’s is a Hay River local based company. Rowe's will supply road/lease construction, final clean up and supply trucking, excavation, and welding, etc services.
Naegha Zhia Inc. PO BOX 3058 Hay River, NT X0E 1G4 Naegha Zhia will supply general laborers to the project
Other Subcontractors: We have talked with Nabors Drilling (drilling rig), Weatherford (fishing tools, casing and wellhead), Sanjel (cementing), OK Drilling (conductor pipe), Big Eagle (water hauling, vacuum truck, etc), Newalta (disposal), HSE Integrated (safety trailer, gas monitoring, etc). The project is still in design phase now, the exact services will be required on site and their providers will be confirmed in January, 2010.
Detailed designs are not yet completed, and some of the quantitative information provided in the application must be viewed as a reasonable estimate (i.e. precise numbers of personnel, type of equipment, etc will be disclosed to the board as soon as available and will at all times adhere to the guidelines of the Type A Land Use Permit.
TOTAL (Number of persons on site): Estimated personnel at site at one time is less than 20 people (5-10 people for --2 weeks to prepare access road and lease), <20 people on site to drill and abandon wells (5 days/well) including supervisors, engineer, rig crew, health and safety personal and essential services (water truck, vacuum truck, fishing & rental company representative). An estimated maximum person days: (10 x 14 = 140) + (20 x (3 x 5) = 300) = 440 people days.
4. Eligibility: (Refer to section 18 of the Mackenzie Valley Land Use Regulations)
a)(i) a)(ii) a)(iii) b)(i) X b)(ii)
5. a) Summary of operation (Describe purpose, nature and location of all activities.) Purpose of Project: There are 7 wells that were drilled in 1946 & 1947 located on an oxbow about 9 kilometers south of The Town of Hay River. The wells were shut in and have not been touched since 1947.
Well Name Lat Long Frobisher Test Well #1 N 60° 42.629 W 115° 53.342 Frobisher Test Well #7 N 60° 42.495 W 115° 52.804 Frobisher Test Well #8 N 60° 42.461 W 115° 53.811 Frobisher Test Well #6 N 60° 42.541 W 115° 53.307 Frobisher Test Well #4 N 60°42.378 W 115° 53.300 Frobisher Test Well #5 N 60°42.459 W 115° 53.300 Frobisher Test Well #5B N 60°42.461 W 115° 53.325 Note: See Section 16 in this application for the boundaries of the proposed land use operation area.
The wells were first discovered in 2004 by a local Hay River resident. The National Energy Board (NEB) inspected the wells in January 2005 and found that three of the seven wells to be leaking trace amounts of H2S gas, and were identified for abandonment. After an exhaustive search to find the rightful successors to the Frobisher Exploration Company, the NEB directed the crown to address the wells. Due to recorded H2S levels and the potential to flow large rates of salt water these wells need to be abandoned with a process designed to safely address all contingencies.
In 2005, INAC attempted to obtain a contractor to properly abandon the three potentially problematic wells. Land Use Permit (MV2006X004) was obtained, however, due to a lack of capacity in the industry at the time, few bids were received and the bids received were cost-prohibitive. Land Use Permit MV2006X004 expired on February 22nd, 2008.
Since 2006, INAC has conducted further testing of the wells to better understand the scope of the work, and successfully obtained a qualified well abandonment contractor (Shehtah Nabors LP) in March 2010. Shehtah Nabors LP is responsible for designing and conducting the well abandonment program.
This application is to obtain a Type A land use permit allowing the Crown to close the three potentially problematic gas wells (#4, #5, and #5B).
The Frobisher #4 well is open to atmosphere due to casing corrosion; the wellhead valve is lying on the ground beside the well. The well is currently weeping salt water at low rate onto the ground. No gas was observed venting from the well but the original investigation on these wells started from a complaint by a land owner about sour gas.
The Frobisher #5 has severe corrosion on the outside of the casing. No samples or pressures are known.
The Frobisher #5B was inspected in 2007 and PLIDCO® Sleeve allowed for pressures and gas samples to be obtained from inside the casing. Well has 100 % LEL’s and 100 ppm H2S with no pressure, It is possible there may be pressure present but that the well was frozen due to extreme temperatures when the inspection took place.
Proposed Access Road:
Originally, we had three access options (see Appendix A, Satellite Photo and Proposed Route).
A: Re-open the existing fire guard (~ 6 km) from HWY 5(Fort Smith Highway) down to the south and open access (~ 1.5 km) to the lease. Weakness of plan: Large work load to open access; limit access for heavy equipment; impact the business of the Ski Club.
B: Get access from the north bank of Hay River. Utilize the existing road of the Ski Club, get access to the river bank, build ice bridge across the river and then to the site. Weakness of Plan: Impact the business of the Golf Club/Ski Club; tight spots along the route, have to cut back the hill; relatively steeper to get onto the lease, have to use cat to pull equipment onto the well site; larger area need to be cleared of trees.
C: The selected route.
After consulting the Katlodeeche First Nation, Hay River Métis Council, property owners across the river and two site visits, all parties agreed to use the access route comes off from Hwy 2, along the existing gravel road around the gravel pit, following the trail to the south bank of Hay River.
By selecting this route, we made sure that: the bank is protected; minimum environmental impact was achieved; the entire access route will be built on the Crown land; shortest distance to the well site.
An ice bridge will be built across Hay River, and trees will be cut and cleared to the lease. It is anticipated that route to the site will abide by winter road guidelines and standard conditions with a minimum of 10 cm of snow pack. All work is intended to be completed in the winter months when the ground is frozen and vegetation will be less disturbed by equipment mobilization and demobilization.
The access route is about 800 m long and ~15 m wide. Also, a 100 m X 200 m lease surrounding wells will be constructed to allow enough room for equipment spacing purpose (see attached Appendix B, ERCB Well-Site Spacing—Minimum Distance Requirements). The total area need to be cleared is: (800 m X 15m=12000 m2)+ (200 m X 100 m =20000 m2) = 32000 m2 = 3.2 hectares
To ensure the river bank is protected, all construction work is scheduled to start after December 2010 when the ground conditions are frozen and vegetation will be less disturbed by equipment mobilization and demobilization. We will take the advantage of the natural curve of the river and build a ramp with snow and ice along the bank. We will make sure there is enough snow and ice coverage to protect the bank. As a precaution, extra rig matting will be moved in if necessary (on top of the standard matting package c/w the drilling rig) to protect the bank and the lease. It will be avoided to the greatest extent possible, but some levelling may still be required to gain access. If minor modifications have to be made to the bank, the original shape, vegetation, etc of the bank will be documented and the bank will be restored to its original condition after the job is completed.
Work Details: Based on the condition of wells e.g. integrity of surface casing, shut in pressure of well #5 (a site visit is scheduled on August 18th, 2010 and all three wells will be inspected), a detailed well abandonment program will be developed for each well and submitted to the National Energy Board (NEB) for approval to “alter the condition of a well” as required by the Canada Oil and Gas Drilling Regulations (O-7— SOR/79-82), Canada Oil and Gas Operations Act.
The proposed operations will include: A. Open access (Late December, 2010 to January, 2011) • Prepare the access from HWY 2 to the south bank of Hay River. Level and widen existing road • Build a ramp down the south bank. • Build an ice bridge across the river • Build a ramp up the north bank and lead to the lease • Move in equipment and prepare the lease, harvest trees B. Pounding conductor pipe around existing surface casing (January, 2011 to Early February, 2011) • Mobilize a conductor pipe pounding equipment and pound 20” conductor pipe around the existing casing • Cut the conductor pipe to proper height and weld on a flange for BOP’s C. Move in a coil tubing drilling rig and properly abandon the wells (February, 2011) • Equip the well with BOP’s • Pull and replace the casing in well • RIH and cement new 7”casing in well • Clean the well down to TD and cement well back to surface D. Air Monitoring. Two permanent air monitoring stations will be set up on site, to monitor the air quality 24 hours per day, for the entire rig work. E. Site clean up and waste disposal (February, 2011) • Remove the grease pit and truck to a licenced disposal facility for disposal • Clean up the rig tank and send to a licenced disposal facility for disposal. F. Cut and cap well (September, 2011) • Gas migration test • Cut and cap well
Shehtah Nabors is responsible to provide a site specific health and safety plan (SSHSP) and schedule to all parties involved and to provide daily operations updates if any anticipated changes occur. Shehtah Nabors will take the responsibility to carryout all public awareness with site users and block off trails when work is being carried out.
Consultation: INAC, PWGSC, Shehtah Nabors and Rowe’s Construction have engaged with the Katlodeeche First Nation, Hay River Métis Council , the Hay River Golf & Ski Clubs, and the public about the project since the wells were first discovered in 2004. Recently in May 2006, meetings were held in Hay River with the Katlodeeche First Nation and the Hay River Métis Council, and an open house was held at the Hay River Legion to address any concerns and obtain feedback from the general public. A follow-up meeting with the Katlodeeche First Nations was held on August 3rd, 2010 to finalize the access route. All people that have a potential interest in what is occurring has been contacted. This includes land owners who have property near the access route, as they may see higher volumes of traffic in the area during the closing or clearing of the access route (see Appendix C, Consultation Meeting Minutes and Public Consultation Letter).
Under Appendix C, you will find (in the same order): • Consultation Letter to all interested parties, December 09, 2005 • Consultation Letter to Northwest Territory Métis Nation, January 18, 2006 • Consultation Letter to all interested parties, August 20, 2009 • Consultation Letter to all interested parties, August 16, 2010 • Consultation Letter to the Ski Club, August 16, 2010 Note: Includes the May 3, 2010 conference call Meeting Minutes, INAC, PWSGC, CARD, Ski Club, Golf Club and Abandonrite • Consultation Letter to the Golf Club, August 16, 2010 • Meeting Minutes, Hay River, INAC/Ski Club, January 16, 2006 • Meeting Minutes, Hay River Métis Council, May 26, 2010 • Meeting Minutes, Hay River Katlodeeche First Nation, May 26, 2010 • Meeting Minutes, Hay River Katlodeeche First Nation, August 03, 2010
b) Please indicate if a camp is to be set up. (Please provide details on a separate page, if necessary.)
Due to the proximity of the Town of Hay River an on-site camp will not be necessary. A doghouse* c/w the drilling rig and an on site office trailer is necessary. Conductor pipe pounding will take 3~5 days, only during the daytime, actual rig work will be carried out 24 hours a day for approximately 9~12 days with 12 hour crew changes.
In Summary, land use consists of: • Clearing an access route to the well site; • Prepare lease; • Mobilizing equipment to the well site; • Abandon wells with cement plugs; and • Demobilizing equipment and wastes from well site.
Glossary: PPM: Parts per million PLIDCO® Sleeve: Once the PLIDCO® Split+Sleeve is bolted in place, the seal is complete. It is part of the cold tap tool. Conductor Pipe: A short string of large-diameter casing set to support the surface formations. For this project, another purpose of the conductor pipe is to support the BOP. BOP: Blowout Preventer. A group of large valves at the top of a well that may be closed if the drilling crew loses control of formation fluids. Lower Explosive Limit (LEL): The explosive limit of a gas or a vapor is the limiting concentration (in air) that is needed for the gas to ignite and explode. Coil Tubing Drilling Rig: The Nabors Hybrid Coil Tubing Drilling Rig use one continuous pipe and downhole mud motor instead of rotary table and joint pipes of a conventional drilling rig. The body of the coiled tubing has no connections to make or break while going in and out of the hole. This will reduce the possibility of being stuck in the hole and assure the continuously circulation of drilling mud. Coil tubing rig has huge advantage to either eliminate kicks or to control a blowout. By using the top drive unit, the coil tubing rig can also run casing and drill pipe if needed. Doghouse: The steel-sided room adjacent to the rig floor, usually having an access door close to the driller's controls. This general-purpose shelter is a combination tool shed, office, communications center, coffee room, lunchroom and general meeting place for the driller and his crew. It is at the same elevation as the rig floor, usually cantilevered out from the main substructure supporting the rig.
6. Summary of potential environmental and resource impacts (describe the effects of the proposed land-use operation on land, water, flora & fauna and related socio-economic impacts). Use separate page if necessary.)
The required area to be cleared is 800 m access road and a 100 m X 200 m lease. The majority of the access route on the south side of the river is not covered by trees now, if the road needs to be widened to 15 m wide, some poplar and pine trees will be cut and removed.
The proposed access road on the other side of the river and the lease clearing is composed of mixed forest (see Appendix D, Site Photos). Vegetation will not be removed near river banks therefore limiting potential erosion. Once completed the area will be left to naturally re- vegetate.
Soil disturbance will be minimal as the ground will be frozen during all phases of the work.
No anticipated negative socio-economic impacts, as the proposed work is in a short time frame and of relatively low dollar value. INAC encourages the contractor to hire local people.
No impact to fish bearing waters as the operations will occur in the winter months when ground is frozen. No wildlife impacts anticipated as the majority of this route has been used and cleared in the recent past.
As the activity will consist of drilling a former drill hole which once contained high volumes of saline water (5% NaCl, see Appendix E, Water Analysis Report) there is a potential that a 'blowout' could occur. Shehtah Nabors will provide a spill control contingency plan with a complete emergency procedure and safety mechanisms to eliminate potential surface water contamination. No impacts will occur to the groundwater.
There are no identified burial sites or historic sites within the proposed land use area. Once the access route has been surveyed, INAC will confirm with aboriginal groups to determine if there are additional impacts.
7. Proposed restoration plan (please use a separate page if necessary).
The post-abandonment activities are essentially a surface reclamation project. Differences between the site and the adjacent land must not interfere with normal land use and not show a negative impact on or offsite due to the abandonment activities. Coarse woody debris will be spread over the site and the cleared areas will be left to naturally re-vegetate. Problematic wells will be abandoned properly and casing will be cut and capped below ground level. While doing the cut and cap, the surface soil will be salvaged.
There shall be no evidence of bank instability (slumping, channelling within banks) resulting from abandonment activities that are greater than is found on the offsite banks. Short lived non-native species may be appropriate to assist with shore/bed stabilization.
Any potentially contaminated soil will be sampled and sent to the lab for analysis. Based on the status of contamination, further remediation planning will be provided if needed.
Once finished all equipment, fuel and all waste material will be taken off site. The waste material will be trucked to an approved facility for disposal. Access route will be blocked and marked.
8. Other rights, licences or permits related to this permit application (mineral rights, timber permits, water licences, etc.)
There are no licences, permits, mineral rights etc at this location. The Ski Club has a lease #085B 12005.
Roads: Is this to be a pioneered road? No. The majority of the proposed access road is low grade dirt road around the gravel pit . Has the route been laid out or ground truthed? The route has not been truthed.
9. Proposed disposal methods.
a) Garbage: Small quantity garbage will be removed from site for disposable at Hay River dump.
b) Sewage (Sanitary & Grey Water): All industrial garbage and saline water, drill cuttings, etc will be sent to Zama and/or High Level for disposal. (see Appendix F, Waste Disposal Facility Confirmation Letter, and Appendix G, Nabors Canada Safety Manual- Environmental Controls) c) Brush & trees: Brush and trees cleared when accessing site. Routes are chosen to minimize the amount of environmental disturbance. Vegetation will be used to block site access and remaining vegetation that is needed to be cut will be piled along the lease. All trees bigger than 13 centimetres will be harvested as required. d) Overburden (Organic soils, waste material, etc.): While doing the excavation, top soil will be piled separately and backfilled.
10. Equipment (includes drills, pumps, etc.) (Please use separate page if necessary.) Note: Equipment will not be on site the same time.
Type & number Size Proposed use 1 Coil Tubing Drilling Rig* (see Appendix H) 27.34 m x 3.9 m x 5.2 m, 74456 Kg Drill well
1 Cement Truck 50, 000 kg Mix and pump cement
1 Bulk Truck 80, 000 kg with 25 tonnes cement Deliver cement 1 Bull Dozer 25,000 kg Clear and build lease and access
4 Water Tanks 400 bbl each Store returns, back up storage
1 Vacuum Truck 22,350 kg Clean tank for disposal
15 Tractor Trailer Unit 40,000 kg each Equipment mobilization and demobilization
1 Hammer Unit 4000 lb drop Hammer Pound conductor pipe 2 Water Truck 22,350kg Send water for disposal
5 Pick up trucks 5000 kg of each Crew change, emergency response
* Nabors Drilling Rig # 94 CT. This equipment is going to be the heaviest and largest on site.
11. Fuels () Number of containers Capacity of containers Location
Diesel 2 truck Integral Fuel Tanks in Rig Max. 10,000 L for rig and Fuel Tank load 5,200 L for boiler
Gasoline N/A Service trucks will get fuel from The Town of Hay River
Aviation fuel N/A
Propane N/A
Other N/A
12. Containment fuel spill contingency plans. (Please attach separate contingency plan if necessary).
Spill kits will be available on site. Storage tanks are integral storage facilities for holding fuel. The drilling rig will be mobilized to site with minimal fuel contained in it. The fuel storage tanks in the rig will be filled by a fuel truck when on site (See Appendix G 8-4.101 for proposed spill contingency planning and reporting procedures ofNabors Canada. A site specific spill contingency plan will be provided prior starting the rig work.
13. Methods offuel transfer (to other tanks, vehicles, etc.)
Electric pump from fuel truck to Drilling Rig storage facility.
14. Period of operation (includes time to cover all phases ofproject work applied for, including restoration)
The operation will begin December 2010 if weather permits. The access road and lease will be prepared by end of January 2011 and the drilling will be finished and all equipment will be moved offlease before mid of March 2011. Following the well closure monitoring and inspection will occur at the site to the last quarter ofyear 2011 to ensure the wells are properly abandoned, and if so, the wells will be cut and capped.
15. Period of permit (up to five years, with maximum of two years of extension). The permit is requested for four years.
16. Location of activities by map co-ordinates (attach maps and sketches) - NAD83
Minimum latitude (degrees, minutes, seconds) Maximum latitude (degrees, minutes, seconds)
60 0 42' 9.51" 60 0 42' 29.92"
Minimum longitude (degrees, minutes, seconds) Maximum longitude (degrees, minutes, seconds)
0 115 53' 3.03" 115 0 53' 50.51"
Map Sheet no. J :250,000 map sheet 85B; 1 :50,000 map sheet 85 B 12
17. Applicant Print name in full I~T~5el( Signature ~~ Date ~ d-:S/IO' l 18. Fees Type A - $150.00 ** t e B - $150.00 ** (* *Application Fees are N on- Refundable**)
Land use fee: hectares @ $50.00lhectare $ Assignm~nt fee $50.00 $
Total application and land use fees $
Please make all cheques payable to "Receiver General of Canada"
Appendix A Satellite Photo and Proposed Route Great Slave lake
« CABIN 1 GOLF AND SKI CLUB HOUSES 6 7 SKI CABIN 8 5B 5 4 LIONEL GAGNIER LEONARD ANDERMAN RAFE SMITH YVETTE BRUNEAU APRIL GLAICAR SIMON GOUDREAU VERNA COURTOREILLE RICK EWASUK Municipal and Community Affairs Output Page Page 1 of 1 Frobisher Gas Well Access Copyright 2003 Government of the Nothwest Territories. DISCLAIMER : This is a product of the Municipal and Community Affairs. The information provided is only intended to be general summary information to the public. Please be aware that we do not control or guarantee the accuracy, relevance, timeliness, or completeness of this information. PROPRIETARY INFORMATION: Any resale of this information is prohibited, except in accordance with a licensing agreement. http://gis.maca.gov.nt.ca/servlet/com.esri.esrimap.Esrimap?ServiceName=MACA&Client... 6/18/2010 Appendix B ERCB Well-Site Spacing—Minimum Distance Requirements Appendix 6 Well-Site Spacing—Minimum Distance Requirements Flexible hose in degasser vent line or flare line 9 m Accumulator Remote BOP Flare pit/incinerator/burn pit controls 50 m 50 m 15 m Hydrocarbon make-up Internal combustion reserve (invert) engine exhaust 25 m 25 m 6 m Flame type equipment Internal combustion 50 m BOP hydraulic hoses 25 m engine without shutoff without fire sheathing devices 7 m Flexible hoses without Smoking fire sheathing in bleed-off and kill system Per electrical code Electrical motors and generators (arcing without purging) 50 m Electrical devices that are potential sources of ignition Oi l s t or age t ank EUB Directive 036: Drilling Blowout Prevention Requirements and Procedures (February 2006) • 151 Appendix C Consultation Meeting Minutes and Public Consultation Letter • Consultation Letter to all interested parties, December 09, 2005 • Consultation Letter to Northwest Territory Métis Nation, January 18, 2006 • Consultation Letter to all interested parties, August 20, 2009 • Consultation Letter to all interested parties, August 16, 2010 • Consultation Letter to the Ski Club, August 16, 2010 Note: Includes the May 3, 2010 conference call Meeting Minutes, INAC, PWSGC, CARD, Ski Club, Golf Club and Abandonrite • Consultation Letter to the Golf Club, August 16, 2010 • Meeting Minutes, Hay River, INAC/Ski Club, January 16, 2006 • Meeting Minutes, Hay River Métis Council, May 26, 2010 • Meeting Minutes, Hay River Katlodeeche First Nation, May 26, 2010 • Meeting Minutes, Hay River Katlodeeche First Nation, August 03, 2010 Indian and Northern Affaires indiennes Affairs Canada et du Nord Canada www.inac.gc.ca www.ainc.gc.ca December 9, 2005 To Whom It May Concern: RE: Closure of Frobisher Bay Abandon Sour Gas Wells It was brought to the attention of the Contaminants and Remediation Directorate (CARD) this year that 3 of the 7 abandon gas wells near Hay River are in questionable condition with the potential to cause significant human health and safety concerns to the users of the area. After determining that there are no land owners or companies responsible for health and safety issues at the site, Indian and Northern Affairs Canada has accepted the task to rectify this issue and ensure health and safety is addressed. Within the initial assessment some hydrogen sulphide (H2S) and methane (CH4) gases were detected. The concentrations however, are not of significant concern to human health and safety at this time (<1ppm for H2S and a max. of 20ppm for CH4). As conditions may change at the site so may the gas concentrations therefore, it is unacceptable based on standards in Alberta, to leave these wells in this condition. Closing wells are not a usual task carried out under CARD as it generally is the responsibility of the oil and gas exploration company once they have explored the site. Under the circumstances we would like to closes these wells as fast as possible with minimal disruption to the ski club area. Our current proposed schedule is as follows: Initial consultations December 9 to 16th, 2005 Apply for land use permit- December 2005 Apply for NEB permit- December 2005 Tender the work to close the wells- December 2005/January 2006 Follow-up consultations with Ski Club regarding access to the site- December 2006 Award contract – February 2006 Obtain health and Safety plan from the contractor- Mid February 2006 Begin Work- Late February early March 2006 Work complete- Late March 2006 It has been recommended that closure of the wells consist of putting a cement plug down into the opening of the wells using a coiled tubing unit. However, the method of closure will be depend on the contractor awarded the contact, it must however, meet the Alberta Standards. The coiled tubing rig is a relatively large piece of heavy equipment which will need access the wells which will cause some environmental disturbance. All wastes from the operation will be trucked off site for disposal. The estimated timeframe for the work once the site is accessible is ~4-5 days per well (3 wells to close). It is not intended that a camp is necessary on site due to the proximity of the Town of Hay River. The current proposed access route for heavy equipment is by crossing the river by the bridge and down a fire clearing running parallel to the river. However, other suggestions are welcomed and being explored. If you have any concerns/comments regarding accessing the site or work that is to be carryout please notify me prior to December 16th 2005, before submitting the land use permit document. Sincerely, Julie Ward Project Manager- Abandon Frobisher Gas Wells Contaminants and Remediation Directorate Tel: (867)669-2418 Fax: (867)669-2721 Indian and Northern Affaires indiannes 1+1 Affairs Canada et du Nord Canada www.inac.gc.ca www.aioc.gc.ca IMA committee Northwest Territory Metis Nation Fox: (867)872-2772 Phone: (867)872-2770 January 18, 2006 To IMA Committee Members, RE: Closure of Frobisher 8ay Abandon Sour Gas Wells I would like to apologise for not communicating sooner, as we haven't done work in the Hoy River Area and are not fully aware of the proper procedures under the IMA. Attached I have include all past faxes that hove been circulated to a large distribution list of people and organizations who need to be informed of our plans. I hove olso updated the distribution list to include your organization. Please refer to attached document for more specifics on concerns with the wells. As you will notice in the attached letter the issue was first brought to Petroleum Development, INAC and has since been taken over by Contaminants and Remediation Directorate, INAC in order to address the health and safety concerns by closing these former well sites. In December 2005 we were able to secure the funds to proceed with this closure and are now putting together an application for a land use permit. We hope that the application can be completed and submitted to the Mackenzie Volley Land and Water Boord by January 20th 2006, which would allow us to start the preparation work this fiscal and mobilize drilling rigs to site as soon as they become available and weather conditions permit. As the wells are located within the Hay River Ski Club lease boundary they are of greatest health and safety concern to the Ski Club members and the closure will immediately impact there daily operations, we meet with them on January 16'" 2006 to discuss accessing the wells and determine potential impacts on there ski club area. We determined the access route that would less impact the Ski Club operations would be from the east side of the river down an old fire guard route. Currently, we are looking at tendering entire project in early February and awarding the contract to the successful bidder in early March. We anticipate if there are no issues the land use permit wi ll be in place at this time. If so, we would begin with clearing the access route and sealing the wells this fiscal, if equipment is available. Initial discussion with oil and gas contractors indicated that all equipment is tied up in exploration work this year and they would not likely have a drill available to complete the closure. Therefore, the actual closure may not occur until winter of 2006/7 (next fiscal). As this is of great concern to us, we hope to proceed as soon as possible and therefore still preparing documentation and applications to carryout work this fiscal. If you have any concerns/comments regarding accessing the site or work that is to be carryout please notify me prior to January 20th 2006. Sincerely, CA-J~ ulie Ward Project Manager. Abandon Frobisher Gas Wells Contaminants and Remediation Directorate rei: (8671669.2418 Fax: (8671669.2721 Hay River, NT. X0E 1G1 Tel: (867)874-6522 Fax: (867)874-3237 President- Ian Laws Trails Coordinator- Pat Bobinski Hay River Ski Club PO Box 4389 Hay River NT X0E 1G3 Tel: (867)874-2411 Fax: (867)874-2681 Cc Andrew Forbes Senior Resource Management Officer District, Indian and Northern Affairs Canada Tel: (867)874-6994 Fax: (867)874-2460 Andy Graw Manger, Oil and Gas Indian and Northern Affairs Canada Tel: (867)669-2618 Fax: (867)669-2409 Kenneth G Gilmet Regional Sustainable Project Coordinator Senior Project Officer Public Works and Government Services Canada Tel: (780)497-3883 Fax: (780) 497-3842 Distribution List Chief Roy Fabian K’atlodeeche First Nation P.O. Box 3060 Hay River NT X0E 1G4 Fax: (867) 874-3229 Tel: (867) 874-6701 Chief Karen Felker West Point First Nation #1 4703 Mackenzie Highway Hay River, NT. X0E 0R9 Tel: (867)874-6677 Fax: (867)874-2486 Chief Lloyd Chicot Ka’a’gee Tu First Nation PO Box 4428 Hay River NT X0E 1G3 Tel: (867)825-2000 Fax: (867)825-2002 President Danny Beck Hay River Métis Council 102-31 Capital Dr. Hay River NT. X0E 1G2 Tel: (867)874-4470 Fax: (867)874-4472 Hay River Metis Nation 108 Gagnier St. Hay River NT X0E 1G1 Tel: (867)874-2583 e-mail: [email protected] Greg Stevens- Senior Administrative Officer Town of Hay River 73 Woodland Drive Fax Follow-up phone call: December 9th to January 5th 2006 No contact regarding fax sent on Dec. 9th January 5th 2006 Ian Laws, Ski Club President Called Ian Laws at home and left message January 6th 2006 Ian Laws, Ski Club President Ian Laws returned my call and we arranged a meeting with him and Pat Bobinski (trails coordinator) for January 16th or 17th 2006. Exchanged e-mail to keep in touch regarding meeting arrangements. January 18th 2006 1:30pm Chief Roy Fabian K’atlodeeche First Nations Administration forward me to CEO Simon. Left message for Simon to call me if he had any questions or concerns. January 18th 2006 1:35pm Chief Karen Felker West Point First Nations A/Band Manager Wendy Cayen Left message asking her to call me regarding fax disturbed a few weeks ago. Administration said she will be back at 3:30pm Chief Lloyd Chicot Ka’a’gee Tu First Nations Kakisa Lake Settlement (Not within area- no follow up) January 18th 2006 1:40pm President Danny Beck Hay River Métis Council Administration assistant: Carolyn Young asked me to contact the head of the IMA committee in Fort Smith because this is the proper channels to go through regarding this work. Fort Smith Métis council –IMA agreement (head of IMA committee) @ (867) 872-2770 January 18th 2006 1:45pm Contact for the IMA Ursula Vogt and Chris Heron Northwest Territory Métis Nation Ursula confirmed that consultations must be in writing. They didn’t receive original fax as it was sent to Hay River Metis and not the head of the IMA. I told her I would send fax to her @ 867-872-2772 and explained what the project detailed. Send original fax to the committee members of the IMA to consider this as pre consultation for application. January 18th 2006 3:00pm Town of Hay River Talked to Greg Stevens he indicated that it was best to talk with Todd Pittman. Todd Pittman- director of Public Works (867)874-6522 ex. #17 [email protected] Talked with Todd and will e-mail him all information regarding closing the wells. August 20th, 2009 Contaminants and Remediation Directorate Indian and Northern Affairs Canada P.O. Box 1500 Yellowknife, NT X1A 2R3 To Whom It May Concern: Re: Closure of Frobisher Bay Abandon Sour Gas Wells It was brought to the attention of Contaminants and Remediation Directorate (CARD), of Indian and Northern Affairs Canada (INAC) in 2004 that three gas wells near Hay River were in questionable condition with the potential to cause significant human health and safety concerns to the users of the area. After determining that there are no land owners or companies responsible for health and safety issues at the site, Indian and Northern Affairs Canada accepted the task to rectify this issue and ensure health and safety is addressed. The actual abandonment and restoration of the wells was expected to take place during the winter of 2005-06. Due to the high market demand and the unknown condition of these wells, the tendering process to obtain a company qualified to complete the closure work was unsuccessful. Therefore, in 2006 and 2007 INAC completed further investigations to gain a better understanding of these wells until closure could occur. It was concluded that although these wells should be closed the gas levels do not pose immediate threat to human health and wildlife. Now that further investigations of these wells are complete CARD plans to re-tender the contract to obtain a contractor to design and close the wells. Our estimated schedule for activities is as follows: • Tender the design/build contact – fall/winter 2009 • Consult all interested parties, governments and general public on approach – winter 2009/10 • Design completion – winter 2009/10 • Obtain Land-Use Permit and NEB permit – winter 2009/10* • Prepare access route – winter 2009/10* • Complete well closure Winter 2009/10* • Complete Surface debris cleanup – summer 2010* *If permitting can not be obtained in time for closure work to occur work will be carried out in winter 2010/11. Once the contractor has been awarded, the contractor along with representatives of CARD, PWGSC, and Petroleum Development Division of INAC will begin immediate discussions to address any concerns and receive any recommendations regarding the proposed plans, site access, employment opportunities, etc. Any concerns/comments regarding accessing the site or work that is to be carried out are welcomed and can be directed to Alison Heslep at 867-669-2769. Thank you, Julie Ward Project Manager Contaminants and Remediation Directorate NWT Region INAC-AINC Distribution List Chief Roy Fabian K’atlodeeche First Nation P.O. Box 3060 Hay River NT X0E 1G4 Fax: (867) 874-3229 Tel: (867) 874-6701 West Point First Nation #1 4703 Mackenzie Highway Hay River, NT X0E 0R9 Fax: (867) 874-2486 Tel: (867) 874-6677 Chief Lloyd Chichot Ka’a’gee Tu First Nation P.O. Box 4428 Hay River, NT X0E 1G3 Fax: (867) 825-2002 Tel: (867) 825-2000 President Danny Beck Hay River Mètis Council 102-31 Capital Dr. Hay River, NT X0E 1G2 Fax: (867) 874-4471 Tel: (867) 874-4470 Terry Molenkamp Senior Administrative Officer Town of Hay River 73 Woodland Drive Hay River, NT X0E 1G1 Fax: (867) 874-3237 Tel: (867) 874-6522 Wayne Korotash Hay River Golf Club P.O. Box 4387 Hay River, NT X0E 0R0 Fax: 867-874-3930 President- Ian Laws Trails Coordinator – Pat Bobinski Hay River Ski Club P.O. Box 4389 Hay River, NT X0E 1G3 Fax: (867) 874-2681 Tel: (867) 874-2411 Michael MacLeod MLA Deh Cho P.O. Box 149 Fort Providence, NT X0E 0L0 Fax: 867 699-4005 Tel : 867 699-4003 Jane Groenewegen MLA Hay River South 3-66 Woodland Dr. Hay River, NT X0E 1G1 Fax: 867 874-6143 Tel: 867 874-6141 Paul Delorey MLA Hay River North Suite 202, 76 Capital Drive Hay River, NT X0E 1G2 Fax: 867 874-6079 Tel: 867 874-6301 CC: Norm McCowan Resource Management Officer District, Indian and Northern Affairs Canada Tel: (867) 874-6994 Fax: (867) 874-2460 Angela Norris Petroleum Development Advisor Petroleum Development Division, Indian and Northern Affairs Canada Tel: (867) 669-2497 Fax: (867) 669-2409 Michael Vandell Petroleum Development Advisor Petroleum Development Division, Indian and Northern Affairs Canada Tel: (867) 699-3006 Fax: (867) 699-3007 David Hango A/Engineer Environmental Services Public Works and Government Services Canada Tel: (780) 497-3700 Jennifer Moores Communications Officer Indian and Northern Affairs Canada Tel: (867) 669-2584 Fax: (867) 669-2715 Indian and Northern Affalros indlcnnes lo, ••• Affairs Canada at du Nord Canada Cana· d a th August 16 , 2010 Contaminants and Remediation Directorate Indian and Northern Affairs Canada P.O. Box 1500 Yellowknife, NT XIA2R3 See attached distribution list Dear Sir/Madam: Re: Update on the Closure ofthe Old Frobisher Bay Sour Gas Wells th This letter is to provide follow up information on the letter dated August 20 , 2009 from Julie Ward ofthe Contaminants and Remediation Directorate (CARD) with Indian and Northern Affairs Canada (INAC) on the three gas wells drilled between 1922 and 1947 in the Hay River Area. The wells are located on an oxbow 9 kilometers south of Hay River across the river from the Hay River Golf Club. CARD is moving forward with work plans to address the safe abandonment of these wells that have been identified as an environmental health and safety concern. CARD and Public Works and Government Services have recently employed a qualified well abandonment contractor to develop the abandonment plan for the three wells. An investigation of the wells is scheduled for August 2010 to gather additional information on the gas levels and integrity of the wells to assist with the development of the well closure plan. CARD will soon be submitting an application for a Type "A" Land Use Permit to the Mackenzie Valley Land and Water Board to properly abandon these wells. The tentative schedule for the abandonment of wells #4 (IDI708), #5 (ID 1705), and #5B (ID 1709) are as follows: Pre-abandonment well investigations - August 2010 Land Use Permit Application - August 2010 Well closure design and cost estimate - September 2010 Application to alter the condition of the wells to the NEB - October 2010 Tentative construction start - site and access route preparation - Jan/February 2011 Downhole and surface abandonment - February 2011 Monitoring to ensure successful abandonment completed - Summer 2011 Completion of cut & cap of wells and final site clean-up - Summer 2011 The H2S levels measured in the areas of the wells do not pose an immediate risk to human or environmental health, but the three wells of concern are in poor condition and require proper abandonment using modem methods to ensure the wells are permanently secured. The wells are not easily accessible by the public, however until the wells are I.ndlan and Northern Affalres indlQnnes E;'1 ••• Affairs Canada et du Nord Canada Cana d a permanently secured, people are advised to stay away from the immediate area of these gas wells and warning signs have been posted in the area. Air quality monitoring will be carried out throughout the entire well abandonment process to ensure public safety. Public and environmental health and safety are of primary concern to Indian and Northern Affairs Canada (INAC) and in that recognition we are committed to keeping the community informed and will ensure we provide updates on the project as it progresses. Any concerns/comments regarding accessing the site or work that is to be carried out are welcomed and can be directed to Alison Heslep at 867-669-2769 or [email protected]. Thank you, Jane9 Arrlphlett Project Manager Contaminants and Remediation Directorate NWTRegion INAC-AINC f.ndlan and Northern Affaires indlennes l •• ••• Affairs Canada at du Nord Canada Cana··· d a Distribution List Chief Roy Fabian K'atlodeeche First Nation P.O. Box 3060 Hay River NT XOE IG4 Fax: (867) 874-3229 Tel: (867) 874-6701 West Point First Nation #1 4703 Mackenzie Highway Hay River, NT XOEOR9 Fax: (867) 874-2486 Tel: (867) 874-6677 Chief Lloyd Chichot Ka'a'gee Tu First Nation P.O. Box 4428 Hay River, NT XOE IG3 Fax: (867) 825-2002 Tel: (867) 825-2000 NWT Metis Nation Box 270 Fort Smith, NT XOE OPO Phone: (867) 872-2770 Fax (867) 872-2772 Paul Harrington Hay River Metis Council 102-31 Capital Dr. Hay River, NT XOE IG2 Fax: (867) 874-4471 Tel: (867) 874-4470 Kelly Schofield, Mayor Town of Hay River 73 Woodland Drive Hay River, NT XOE IGI Fax: (867) 874-3237 Tel: (867) 874-6522 Jeff Brockway Facilities Manager Hay River Golf Club P.O. Box 4387 [ooian and Northern Affalres indiennes l;'! ••• Affairs canada at du Nord Canada Cana d a Hay River, NT XOE ORO Fax: 867-874-3930 Pat Bobinski Hay River Ski Club P.O. Box 4389 Hay River, NT XOE IG3 Fax: (867) 8741-2681 Michael MacLeod MLADehCho P.O. Box 149 Fort Providence, NT XOE OLO Fax: 867 699-4005 Tel: 867 699-4003 Jane Groenewegen MLA Hay River South 3-66 Woodland Dr. Hay River, NT XOE IGI Fax: 867874-6143 Tel: 867874-6141 CC: Rob Walker Resource Management Officer District, Indian and Northern Affairs Canada Hay River Tel: (867) 874-6994 Fax: (867) 874-2460 Angela Norris Petroleum Development Advisor Petroleum Development Division, Indian and Northern Affairs Canada Tel: (867) 669-2497 Fax: (867) 669-2409 Michael Vandell Petroleum Development Advisor Petroleum Development Division, Indian and Northern Affairs Canada Tel: (867) 699-3006 Fax: (867) 699-3007 David Hango Project Manager Environmental Services Public Works and Government Services Canada Tel: (780) 497-3700 Christina Gray Communications Officer Indian and Northern Affairs Canada Tel: (867) 669-2458 Fax: (867) 669-2715 Indian and Northern Affaires Indienn9S Atr:airs Canada at du Nord Canada Canada th August 16 , 2010 Contaminants and Remediation Directorate Indian and Northern Affairs Canada P.O. Box 1500 Yellowknife, NT X1A2R3 To: Mr. Pat Bobinsky Trails Coordinator, Hay River Ski Club P.O. Box 4389 Hay River, NT XOE IG3 Fax: (867) 874-2681 Sent By Fax. Dear Mr. Bobinsky: Re: Site Access Route Selected for the Old Frobisher Sour Gas Wells. Further to our meeting on May 3 rd, 2010 regarding site access route options for the Frobisher Sour Gas wells, this letter is to provide an update for you on the final site rd access route chosen (see attachment #1 for meeting minutes from May 3 , 2010). It has been decided that the preferred route to access the old wells is to build an ice road from the southwest side of the river near the residences. The road will originate off Highway #2, along the existing gravel road around the gravel pit, following the trail to the south bank of the Hay River. An ice bridge will be built across Hay River, and trees will be cut and cleared to the lease (see attachment #2 - Site Access route map). After careful consideration of all site access options, it was decided that this option is the most cost effective, the most direct, and poses the least amount of disruption to the Ski Club and Golf Clubs. It is anticipated that route to the site will abide by winter road guidelines and standard conditions with a minimum of 10 cm of snow pack. All work is intended to be completed in the winter months when the ground is frozen and vegetation will be less disturbed by equipment mobilization and demobilization. While the department is no longer considering using the golf course parking lot or the road near the golf course for access to the river, closure of the ski trails across the river during the well abandonment activities in February 2011 will still be necessary for safety reasons. Efforts will be made to limit access to the wells by potential snow machines by blocking off all entry points to the wells using brush/felled trees...... Indian and Northern Affalrosrndlonnes • "'I"" Affwl'S Canada el du Nord Qanada Any concerns/comments regarding accessing the site or work that is to be carried out are welcomed and can be directed to Alison Heslep at 867-669-2769 or [email protected]. Thank you, J£Pliett Project Manager Contaminants and Remediation Directorate NWTRegion INAC-AINe PWGSC Hay River Well Abandonment Conference Call Meeting Minutes May 3, 2010 Opening: The regular meeting of the PWGSC Hay River Well Abandonment Project was called to order at 11:00 Am on May 03, 2010 in Edmonton/Calgary/Yellowknife/hay River by Alison Heisep. Present: Alison Heslep, CARD David Hango, Jared Buchko PWGSC Malcolm McKean, Mason Gao, Abandonrite Pat Bobinski, Ski Club Rob Walker LUP Inspector, Norm McCowan, INAC Hay River Office Jeff Brockway, Golf Club Item: Talk about the potential access: Highway #2-Ski Club Parking Lot-River Bank-Ice Bridge-River Bank-Lease Alison did a short introduction ofthe project and the purpose of this conference call. Malcolm introduced the potential access route and scope of the project. Pat and Jeffhad some comments about the access and the project. Facts: • This route is the simplest most direct access. • The hill down to the river is used by the ski club for training from November 1 to March 1. • This access might have some limitations for heavy equipment, tight spots, 6-8 feet wide for some parts, sliding and the existing retaining wall. • Closure of the ski trails across the river may be necessary for safety reason. • Will try to start building the access before winter, will move in rig early February, 2011. • The rig is 10 truck loads, (semi truck loads). It is legal to travel on highway. • Culverts on access route have weight limits. May need to be modified or protected. • INAC talked with NEB, other wells were abandoned already. This project only includes 3 wells. • Will build one lease for 3 well sites since the wells are so close to each other. • Will try to avoid using the golf course parking lot as a staging area. • Will need to assure Golf course of repairs to access. Guarantee all damage will be repaired. Agreement: • The ski club and golf course are very cooperative. The project has to be done. • All parties agreed to meet on site some time in May. t • Tentatively scheduled to meet on May 25 \ 2010 in Hay River. Site visit/public consultation/open house. **Next Call** TBD. ~~ J - - .- \ \ - I Title '()~-~-~D .~ - -.~.~ (.- ~ I I j 1/\ - (~ I Hay River Wells Abandonment .... I Proposed Access 0 ,...+-'1 ~~...-/\_J ...... I Prepared I .;~" I /' ~ By Note: The base map was downloaded http://gls.maoa.gov.nt.oa. Route and Shehtah Nabors lease will be surveyed prior to starting t..he field operations. "'" '~G £}, - Date .... /..(' ...... > }) - ~ ~ -- ~ ,~.:0...... :::~ .. ~. August, 2010 [ndian and Northern Affnlres indlennes ••• Affairs canada et du Nord Canooa th August 16 , 2010 Contaminants and Remediation Directorate Indian and N orthem Affairs Canada P.O. Box 1500 Yellowknife, NT X1A2R3 To: Mr. Jeff Brockway Facilities Manager, Hay River Golf Club P.O. Box 4387 Hay River, NT XOEORO Fax: (867) 874-3930 Sent By Fax. Dear Mr. Brockway: Re: Site Access Route Selected for the Old Frobisher Sour Gas Wells. rd Further to our meeting on May 3 , 2010 regarding site access route options for the Frobisher Sour Gas wells, this letter is to provide an update for you on the final site rd access route chosen (see attachment #1 for meeting minutes from May 3 , 2010). It has been decided that the preferred route to access the old wells is to build an ice road from the southwest side of the river near the residences. The road will originate off Highway #2, along the existing gravel road around the gravel pit, following the trail to the south bank of the Hay River. An ice bridge will be built across Hay River, and trees will be cut and cleared to the lease (see attachment #2 - Site Access route map). After careful consideration of all site access options, it was decided that this option is the most cost effective, the most direct, and poses the least amount of disruption to the Ski Club and Golf Clubs. It is anticipated that route to the site will abide by winter road guidelines and standard conditions with a minimum of 10 cm of snow pack. All work is intended to be completed in the winter months when the ground is frozen and vegetation will be less disturbed by equipment mobilization and demobilization. While the department is no longer considering using the golf course parking lot or the road near the golf course for access to the river, closure of the ski trails across the river during the well abandonment activities in February 2011 will still be necessary for safety reasons. Efforts will be made to limit access to the wells by potential snow machines by blocking off all entry points to the wells using brush/felled trees...... Indian and Northern Affa'lmsfndlennes r •• • T AffnirsCanada et du Nord canada Carna.··a d Any concerns/comments regarding accessing the site or work that is to be carried out are welcomed and can be directed to Alison Heslep at 867~669~2769 or [email protected]. Thank you, J2~Pliett Project Manager Contaminants and Remediation Directorate NWTRegion INAC~AINC PWGSC Hay River Well Abandonment Conference Call Meeting Minutes May 3, 2010 Opening: The regular meeting ofthe PWGSC Hay River Well Abandonment Project was called to order at 11:00 Am on May 03,2010 in EdmontoniCalgarylYellowknife/hay River by Alison Heisep. Present: Alison Heslep, CARD David Hango, Jared Buchko PWGSC Malcolm McKean, Mason Gao, Abandonrite Pat Bobinski, Ski Club Rob Walker LUP Inspector, Norm McCowan, INAC Hay River Office Jeff Brockway, Golf Club Item: Talk about the potential access: Highway #2-Ski Club Parking Lot-River Bank-Ice Bridge-River Bank-Lease Alison did a short introduction ofthe project and the purpose of this conference call. Malcolm introduced the potential access route and scope of the project. Pat and Jeffhad some comments about the access and the project. Facts: • This route is the simplest most direct access. • The hill down to the river is used by the ski club for training from November 1 to March 1. • This access might have some limitations for heavy equipment, tight spots, 6-8 feet wide for some parts, sliding and the existing retaining wall. • Closure of the ski trails across the river may be necessary for safety reason. • Will try to start building the access before winter, will move in rig early February, 2011. • The rig is 10 truck loads, (semi truck loads). It is legal to travel on highway. • Culverts on access route have weight limits. May need to be modified or protected. • INAC talked with NEB, other wells were abandoned already. This project only includes 3 wells. • Will build one lease for 3 well sites since the wells are so close to each other. • Will try to avoid using the golf course parking lot as a staging area. • Will need to assure Golf course of repairs to access. Guarantee all damage will be repaired. Agreement: • The ski club and golf course are very cooperative. The project has to be done. • All parties agreed to meet on site some time in May. th • Tentatively scheduled to meet on May 25 , 2010 in Hay River. Site visit/public consultation/open house. **Next Call** TBD. Minutes Submitted by: Abandonrite Approved bY~ ,/' ...... ~ .- ~. \ \ - I Title >------J -vi... 0 - '/) ~.. - .~-~ .- - (.- ~ I / //\ - ~ I . Hay River Wells Abandonment Proposed Access ~- Q~ ~~~~ 0 ... I Prepared •• + I :'w," I /' ~ By Note: The base map was downloaded http://gls.maca.gov.nt.C8. Route and Shehtah Nabors lease will be surveyed prior to starting :t,.he field operations. ... -0 bJ.,. - Date }L ~ -~.: _~C(.\ August, 2010 Draft-Minutes Frobisher Gas Wells Meeting Hay River, January 16, 2006, INAC District Office Attending Katherine Silcock (KS), INAC YK- Contaminants Julie Ward (JW), INAC YK- Contaminants Andy Graw (AG), INAC- YK Petroleum Development Andrew Forbes (AF) - INAC- Hay River District inspector Norm McCowan (NM) - INAC- Hay River District inspector Malcolm McKean (MM), Abandonrite Michael Vandell (MV), Fort Providence Petroleum Development Ian Lawes (IL), Hay river Ski Club President Pat Bobinski (PB) – Hay River Ski Club Trails Coordinator Introductions done by Julie. Andrew went through the presentation of the ski club and gas wells area. Specifically to look more at how we should the three approaches to the Frobisher Gas wells. Some background information provided by Pat Bobinski. Ed Studly– had a sawmill in the area this is possible the reason that some of the oxbow looks like it was cleared. 1975 – Pat gave some info about well #6 which was closed. He indicated that the smell at the time was very intense and therefore the well was addressed. At this time they used the access down a ramp from the ski club and across the river. Possibilities 1 – Go through the entrance to the ski club and cross the river from the north along the trail; 2 - cross the river at Rafe’s property to the south west, but the slope on the side near the wells is quite steep and may cause diff with erosion control etc..; 3 – Go down the fire guard and then cross over into the ski club area with the wells. Some clearing would be necessary. The access in from the fire guard will need to be negotiated with the ski club. Pat suggested that the lower trail be used which would widen the trail for the ski club but some of the sharper turns would need to be straightened. This would cause some but minimal disturbance to the ski club facilities. The fire guard comes down right by the lower (Solitude) trail, and a small trail (former Hay River Road) intersects the fire guard and the ski club trail. The ski club trail actually follows the former Hay River Road and following the trail will take the equipment within 500m form the well site. Pat took a cat excavator back there to reopen the trail and grade down some of the hills. He feels this would minimize potential damage to the ski club. AF – so they could start at the top of the trail to cut a wider trail for the ski club Pat- no real areas for new trails that they’re working on. AF - would make sure that the trail would be blocked off so that skidoo-ers wouldn’t be able to access the ski club trails, using vegetation from the clearing. Decision to incorporate into tender that cut vegetation is to be used to block trail after work is complete. MM – Indicated that 15ft width will be required to get the equipment to site and approx. 100m x 100m clearing around the wells. This will all need to be ok by the NEB. IL – Concern about skiers meeting up with equipment on the trail. Ian feels we need to have some sort of idea of how the trail will be sweeped to clear off the skiers in case of an emergency. PB – indicated that he could block off part of the trail when project is occurring. Therefore no skiers would be near the work area. AF – indicated that the work can’t commence until the land use permit is accepted and this would take a minimum of 45 days. IL – wrt the skiddooers and access to site – if you minimize the access (come in from the north side) there would be lessen opportunities for the skiddoers but then lots of people would use trails; plus it means a lot of heavy equipment in the parking lot of the ski club PB – Option #1 is not good for ski club operations. As this access route is used for 90% of the skiers/ biathlon, races etc. IL – Regarding clear of the brush Ian feel it can be piled on either side of the road and doesn’t feel this is an issue with ski club operations. PB – the ski trail which could potentially be used is fairly narrow and will need to be widened. AG - NEB will require responsible parties being notified etc. WRT the skiers using the trails during that period, there could be some sort of signs or notification with the ski club to notify of particular activities going on. MM – Indicated the possible timeframe for the work. To do the washing over and re- drilling would take no more than 3 days per well. AG – At max. with mobilization and demobilization we anticipate it to be no more than 16 days that there will be active equipment at site. MM- Explains the process drill rig will come on trailers. 9-11 loads of equipment. It would be a day to just bring it all into site and a day to bring all out. Because of the difficulty in obtaining equipment we have to take whatever drill we can get it may be that only a larger size would be available and would come in on larger trucks. AF – Proposed another alternative which is still coming in from the east but not down the solitude trail but another route on the south side of the oxbow. Therefore the only interference would be crossing the ski club tails at the further south point. JW – Told Pat that he could think about it. If he felt that there would be to much damage to the tail that we would choose an alternate route. PB - will discuss this further with ski club members and get an answer back to us soon. Pat feels that it might be difficult to get large trucks down the solitude trail, which would straighten it out too much and was envisioning something a little smaller in scale. AF – Questions if NEB would need escape route for health and safety concerns. AG – Indicated that probably not; he hasn’t seen it in an application of this type. MM – Indicated that there is not a huge volume of gas at the well surface. Even through it sour it is not enough to kill you. AG – Indicated that the content of gas is very low (~20ppm) and air dispersion is very quick.> So within 30-50ft of the well head it’s diluted enough that you don’t have to worry about it. MM- Emergency response will need to deal more with the saline water which could potentially be a larger concern. AF – can maybe go out to the west across the river if the NEB requires an escape route. JW – Questioned that so the worst case scenario is more from the fluid, not the gas? Malcolm confirmed that is the cast. AF – Indicated that all the times he was on site the small monitors didn’t pick up any readings. The monitors will detect a minimum of 1ppm. Andrew and Norm also indicated that they will continue to monitor at three locations. Action: Andrew to circulate the monitoring plans for current health and safety concerns with the wells. IL – we’ll talk to the ski club member. He feels that they probably won’t need a presentation at this time as long as maps are available. He indicated that it would likely be more of an issue with consultation with the broader community as a whole then the ski club members. JW – Indicated that some consultations have been done in the form of faxes and more follow up will occur over the next few weeks. MM – access should be completed this year but we will likely not be able to get equipment to do the well closure this year. The worst case scenario the road will be open for two years- this year to cut and clear and next year to do the work. JW – Confirmed that that the fire guard route is the preferred route to take by everyone. Action: Pat and Norm/Andrew will go and walk the solitude trail to see how much damage would occur by clearing and straightening the route. Pat and Ian left the meeting Logistical Planning Discussions AG – Is in agreement; seems to be the best route with the lowest amount of human interference. MM – Questioned the feasibility of the bridge crossing to access the fire guard. JW - Indicated that we could go over the river if there’s some sort of problem with the bridge. AG – Indicated that High Level would be the nearest tank supplier. AF – Indicated that there are a few companies in town that will be able to supply Cats, trailers and waste disposal services. MV - Evergreen Forestry would be able to help with the clearing. Owned by the two bands – Providence and Hay River. 874-6544, Fx – 874-4628 JW – consultations – definitely need to consult with Eileen Collins as her property is near the fireguard as well as the city, first nations etc.. AF – can work on some of the private consults within town because he knows the people and knows the well area. Andrew will send a e-mail to Julie when he talks to people and will note their concerns. JW – we sent faxes off, but if they have more questions and may require more information. I will follow up with a phone call to make sure that they’re getting the faxes and reading them. AF – Indicated that he is available to talk with them regarding the project and can do a presentation with anyone how requests. Also, indicated that he will start doing gas readings this week then every two weeks until ice break up. AG – will also require the schedule and results to pass on to the NEB. This will show them what we are doing. JW – It is not likely the work will be completed this year. Once we award a contractor which is now early march it will take 20 days at minimum to get an NEB permit together. So even if drill rigs come together we won’t be able to complete the work until next fiscal. AF- Indicated that April 1st is the cut off for winter conditions around Hay River. At that time the contractor will need to contract him (Andrew/Norm) and he will ok it if they can mobilize or demobilize past that date. MM – once the wells are closed it will be filled completely with cement so there won’t be a chance of it leaking again. It will be a 24 hr operation once it starts – with probable 2 crews which will stay in town. There will be about ten people on site at a time. May need some sewage and a couple of trailers where the consultant will stay. Such as a little grey water sump or container. There will be nothing left at site all wastes will be taken off site. JW – Questioned water source and needs. MM – estimating at maximum 60-1003m will be necessary to mix with drill muds for each well. AF – Indicated that all water can be trucked into site from town and volumes are not large enough to require a water licence. MM – drill cutting solids will need to be trucked out with the vacuum truck. The estimated drill cuttings volume is - 30m3 per well. Andrew indicated that Malcolm could possibly talk to Hazco regarding accepting the dry cuttings. Malcolm indiated that they will likely need to be tested first to indicate how much salt content they have and if it meets regulations in Hay River. Wet wastes will contain high content of salts (saline water) and therefore would have to go to Zama. Lk. northern AB. An estimate of 2-3 loads of wet wastes will likely need to be disposed of. AG – Indicated that the contractor should remove the grease pit at the same time there are trucks on site. He feels that people would probably wonder why the rest of the site isn’t cleaned. Andy feels that the pit found is likely not a sump but is a grease pit. – because if it was just mud it should be dried out which is wasn’t. Therefore it might be hydrocarbons. This will need to be trucked to Zama Lake. MM - estimated that it would be ~5K extra, worst case scenario – 15-20K, if we didn’t encounter other contamination and the size and depth of the pit was as anticipated. AF – Feels it might be best to remove it when the road is cleared – it’s about 50 ft from well 5 – and it will probably cause a hindrance with the clean up otherwise. JW – Right now we only are planning on addressing health and safety concerns, which means closing the wells only. We weren’t planning on addressing minor contamination issues. I understand the concern about public feedback on not addressing this pit. But, as it stands now we don’t know what it is, how much is there and what is the best way of addressing it. I will discuss issue further with our director. AF – Indicated that they will sample the site but it won’t be until spring. They also need bottles to sample. Action: Julie to sent appropriate bottles to Andrew and Norm; suggested tests for PCB, hydrocarbons, metals and sediment content. JW, KS, MM and AF went out to look at the fire guard entrance to see how much overgrowth is occurring; and to see the ski club entrances. Ski club would be challenging in terms of not disrupting the activities at the club – there are no easy turns so the trucks would have to move around the parking lot. Not totally feasible. Fireguard was slightly overgrown, but the route is defiantly visible. It would not be too difficult to clear out. Bush seems quite thick and lots of trees in the new areas to clear. PWGSC Hay River Well Abandonment Hay River Métis Council-Meeting Minutes May 26, 2010 Opening: The meeting of the PWGSC Hay River Well Abandonment Project was held at 12:30 Pm on May 26, 2010 in Hay River chaired by Alison Heslep. Present: Alison Heslep, Jane Amphlett, Duy-Linh Nguyen - INAC / CARD David Hango, Jared Buchko - PWGSC Malcolm McKean, Mason Gao - Shehtah Nabors Paul Harrington and 6 other council members, HRMGC Alison Heslep chaired the meeting. As requested by the Métis Council, Alison did not do the full version presentation about INAC/CARD. Malcolm went through the PPT presentation, INAC/PWGSC/Abandonrite answered questions by HRNGC during and after the presentation. Item 1: Current Status of the Wells • Wells are sitting in same condition as they were left 63 years ago. The original operator of the wells does not exist. • There is no access to the wells now. • Wells are marked with Yellow and Pink tape and survey stakes labeled identifying them. • The wells don’t present immediate safety and health threat to the public now. But the wells could leak with sour gas and salt water. • Well # 4 doesn’t have wellhead and the well is open to the atmosphere. • Well #5 has a valve on top of the highly corroded casing stub. • Well #5 B was tapped in 2007 with no pressure but the H2S reading was 100 ppm inside of the casing. Item 2: Scope of Work • Will investigate and decide the access route in June, 2010. Will start building access from end of 2010 to January, 2011. A drilling rig will be moved in (Nabors Coil Tubing Rig) February 2011. • The investigation in June will include exposing the casing stub enough to see if the quality of the casing is better. Then we can cut and replace the top section of the casing. • We will gain well control first and then wells will be cleaned down to at least the Fir Point and plugged back with cement to surface. • Each well will take 3-4 days of rig time if everything goes well. • Wells will be monitored to the Summer/Autumn 2011 then cut and capped. • Now we are still in the design phase. Item 3: Safety/Environmental Concerns and Solutions • Malcolm showed the H2S Health Effects chart and emphasized that H2S is harmful. • As required by NEB, all fluids will be disposed of properly (sent to ZAMA or High Level for disposal). • As allowed within the Land Use Permit, berms will be placed along the site to prevent any spills getting into the Hay River. • An ERP plan will be in place when work is being conducted. • HRNGC mentioned if it is possible to send somebody on site and represent the community to monitor the whole process and at least they want to be informed for the work process. Item 3: Potential Access Routes • It is impossible to determine what the original access route was. Now we are trying to decide the easiest access to the well site. • All trees bigger than 13 cm diameter have to be harvested. Paul mentioned that it is not hard to find somebody to harvest the trees. • Get access from the fire guard will cost $200,000 to $300,000 (2006 estimate). • Métis Council mentioned that try to keep away from the river if possible. • Potential access from the south is another option. Needs to figure out if the land is private or crown land. Items 4: Other Questions from HRNGC Q: What kind of rig will be used? A: Most likely it will be a Nabors coil tubing drilling rig. It is more suitable for the job. Q: Regarding the 4 previously abandoned wells, do we have any plan these wells? A: We do not a mandate to do anything other than completing the abandonment of the three existing wells. The NEB may request that the 4 previously abandoned wells have inspections completed to ensure no leaks at surface. Q: Is that possible there are more wells other than those 7 wells in this area? A: It is possible, the NEB has records of all wells licensed and drilled. Q: If there was no pressure in Well #5B, where did the H2S reading come from? A: The gas readings were Gas could bubble to the surface. Q: Can H2S affect wildlife in the area? A: Yes. Q: Sometimes you can smell rotten eggs in the Hay river area, where does that smell come from? Could that be from the wells? A: Hard to tell. INAC set up H2S monitoring stations for 1 month with no readings. Rotting organic materials and sewers can be sources for H2S. Q: How many trucks will come to work? A: Drilling rig is about 10 truck loads. Other services, e.g. trucks hauling other equipment, crew trucks, cementers, there will be slight increases in traffic on the highway. Rig crews will still in Hay River. Minutes Submitted by: Abandonrite Approved by: Meeting Attendance List 2010, May 26, Hay Rive r Uch's C~ PWGSC Hay River Well Abandonment Katlodeeche First Nation-Meeting Minutes May 26, 2010 Opening: The meeting of the PWGSC Hay River Well Abandonment Project was held at 13:30 Pm on May 26, 2010 in Katlodeeche Reserve chaired by Alison Heslep. Present: Alison Heslep, Jane Amphlett, Duy-Linh Nguyen, INAC / CARD David Hango, Jared Buchko PWGSC Malcolm McKean, Mason Gao, Shehtah Nabors Roy Fabian and 8 other council members, KFN Jack Rowe, Mark Rowe, Rowe’s Construction Angela Norris, Mike Vandell, INAC, Petroleum Development Alison Heslep chaired the meeting. Alison introduced INAC/CARD, background of the project and the potential employment opportunities. Malcolm explained the scope of work, abandonment plan, safety and environmental solutions relate to project in details. INAC/PWGSC/Abandonrite/Rowe’s answered questions by KFN during and after the presentation. Item 1: Background of the Project • In 2004, local residents reported the leaking wells. Failed to find owner of the wells and now INAC/CARD is responsible for the cleaning up. • Shehtah Nabors is the contractor for performing the well abandonments. • This is CARD’s first sour well abandonment project. Item 2: Employment Opportunities • There are job opportunities for trained people. • Highly specialized work, job opportunities are limited. • INAC encourages contractors to hire local people. • How many local labors will be required is not clear now. We have to choose the access first. After that we will know exactly what kind of equipment and trained people we will need. Items 3: Local Supplies • Drilling mud, 150 m casing for each well and oil well cement, those things can’t be supplied locally. Item 4: Potential Access Routes • KFN expressed their concerns about crossing the river and they prefer the route #2. • From KFN’s point of view, the route #2 will benefit more to the local people and minimize the impact on the river. • Potential salt water swamp on access route #2 may cause troubles for heavy equipment. • If crossing the river, Shehtah Nabors and Rowe’s construction have no intention to cut the bank. Will build ramp and use cat to pull equipment onto the site. • KFN invested in helicopters and they can supply helicopter for the site investigation if required. Agreements: • Roy will supply the contact people for KFN. • Before submitting the Land Use Permit application, will make sure the KFN was consulted. • Mike recommended forming a committee from all parties involved and work together on access selection and Land Use Permit application. All parties will get together again to discuss the access route. • The access route will be the easiest one and try to minimize the impact on the surrounding area. Minutes Submitted by: Abandonrite Approved by: M~tjng Attendance List 2010. May 26, Hay River ~ ~ B'l4- ~~.o,"" • PWGSC Hay River Well Abandonment Katlodeeche First Nation-Meeting Minutes August 3, 2010 Opening: This meeting was an update for the Chief and Council held at the Band office as part of there regular council meetings. Present: Jane Amphlett, Karen Macarthur, INAC / CARD Malcolm McKean, Shehtah Nabors Roy Fabian and 3 other council members, KFN 3 Katlodeeche First Nation staff, Scott Edgerton, Jennifer Lafleur, Vivian Lafluer Jack Rowe, Rowe’s Construction Mike Vandell, INAC, Petroleum Development, via conference call We were invited into the council meeting and Micheal Vandel informed Chief and council we were there to update the access into the Frobisher sites. Malcolm McKean then described two access routes we are currently pursuing and the opportunities that would be available. INAC/Abandonrite/Rowe’s answered questions by KFN during and after the discussion. Once discussion was completed we exited meeting so they could continue with other business. Points: questions and comments • In the next week people will be coming free from forest fires and be available to do slashing, clearing etc. • Chief mentioned it would be nice to get people working on the rig that was going to be on site, it was discussed that this is specialized work but Shehtah Nabors is always looking for new employees, Malcolm McKean to follow up with band Admin on opportunities for employment. • Possibility of job shadowing was mentioned by INAC/CARD. In roles with various positions. • It was also mentioned that the ice bridge construction and probably some sort of security gate would be required to limit access to the site. • Timing of project was discussed, with expectations to be completed well repair in Feb of 2011. Agreements: • INAC/CARD to work with Jennifer Lafluer and Scott Edgerton regarding job shadowing. • Malcolm McKean to follow up with Jennifer and Scott regarding Shehtah employment opportunities. • Confirmation of final access route and timing of land use access permit application passed onto the band once confirmed. Minutes Submitted by: Abandonrite Approved by: Appendix D Site Photos Photo 1 – Well 4, Facing East Photo 2 – Well 4, Open Well Head Project No. 1002775 Photo 3 – Well 4, Valve Broken From Well Head Photo 4 – Well 4, Depression in Ground North of the Well Project No. 1002775 Photo 5 – Well 4, Vapour Measurements with Gastech 1248ME Photo 6 – Core Boxes Near Well 5 Project No. 1002775 Photo 7 – Grease Pit Near Well 5 Photo 8 – Close-up of Grease Pit Material Project No. 1002775 Photo 9 – Well 5 Photo 10 – Drainage Swale Leading From Well 5 Project No. 1002775 Photo 11 – Discarded 45 Gallon Drum Near Well 5 Photo 12 – Well 5B Project No. 1002775 Photo 13 – Open Shallow Pit Adjacent to Well 5B Photo 14 – Signage Marking the Location of Well 6 Project No. 1002775 Photo 15 – Sand and Gravel Fill Cover at Well 6 Photo 16 – Derrick Hook Located Near Well 1 Project No. 1002775 Photo 17 – Miscellaneous Metal Debris Near Well 1 Photo 18 – Suspected Location of Well 1 Project No. 1002775 Photo 19 – Remains of a Former Log Building at Well 1 Photo 20 – Monitoring with Gastech ME Adjacent to Well 7 Project No. 1002775 Photo 21 – Cribwork Remains at Well 7 Photo 22 – Depression in Ground, Suspected Location of Well 8 Project No. 1002775 Photo 23 – Discarded Drum Near Well 8 Project No. 1002775 Appendix E Water Analysis Report WATER ANALYSIS A710262:E67478 Sample Point 1.0, C/ientl.D. Meter Number Laboratory Number ABANDON RITE ENVIRO. SERVICES INC. Operator Name LSD Wel/fD ABANDORITE FROBISHER #4 GM ABANDONRITE Well Name Name of Sampler Company WELL CASING PLASTIC ------Field or Area Pool or Zone Sample Point Container Identity Percent Full Test Recovery Sample Gathering Point Solution Gas ~/ntervall --- Interval 2 --- Interval 3 r:== Elevations (m) From: Well Fluid Status Well Status Mode Test Type No. Multiple Recovery To: KB GRD ,------Production Rates Gauge Pressures kPa Temperature °C Well Status Type Wef/Type 35 23.0 Waterm31d Oilm31d Gas 1000m3Jd Source As Received As Received Gas or Condensate Project Licence No. 2007/03/10 2007/03/15 2007/03/20 2007/03/20 BP ,MC3 Date Sampled Start Date Sampled End Date Received Date Reported Date Reissued Analyst CATIONS ANIONS ,.------Total Dissolved Solids (mg/L) Ion mg/L meq/L Ion mg/L meq/L 52500 49800 Measured Calculated Na 16400 713 CI 28000 795 K 138 3.4 HC03 450 7.4 1.037 1.338 Relative Density Refractive Index 39.3 Ca 2060 103 S04 1880 84600 0.12 Mg 882 72.3 C03 <0.5 <0.1 Conductivity (uS/cm) Resistivity (ohms) @2SoC 8800 369 Ba 0.03 <0.1 OH <0.5 <0.1 Total Hardness as CaC03 (mgIL) Total Alkalinity as CaC03 (mg/L) Sr 40.2 0.9 Total Fe (mgIL) Total Mn (mgIL) Fe 0.75 0.03 7.24 ABSENT Observed pH H2S Spot Test H+ Logarithmic Patterns of Dissolved Ions (meq/L) V ~ V Ca '" "- - HC03 r--.. Mg S04 r-r- f- I-"f- '" -r-- -- Fe ------C03 H Information not supplied by client .. data derived from LSD Information Results relate only to Items tested Remarks: CALGARY 2021-41 Avenue N.E., Calgary,Canada T2E 6P2 Tel: (403) 291-3077 Fax (403) 291·9468 GRANDE PRAIRIE #101, 7002 - 98 Street, Clairmont, Canada TOH OWO Tel: (780) 532·0227 Fax (780) 532-0288 EDMONTON 9331-48 Street, Edmonton, Canada T6B 2R4 Tel: (780) 468·3500 Fax (780) 466·3332 sTmlER Bay 6, 4705 - 42 Street, Stettler, Canada TOC2l0 Tel: (403) 742-1107 Fax (403) 742-0170 2007103/20 17:08 WATER ANALYSIS A710262:E67478 Sample Point 1.0. Client/.D. Meter Number Laboratory Number ABANDONRITE ENVIRO. SERVICES INC. Operator Name NTS (BG Survey) WelilD ABANDORITE FROBISHER #4 GM ABANDON RITE Well Name Name of Sampler Company WELL CASING PLASTIC ------Field or Area Pool or Zone Sample Point Container Identity Percent Full Test Recovery Sample Gathering Point Solution Gas ~/nteNal1 --- Interval 2 --- Interval 3 ~ Elevations (m) From: Well Fluid Status Well Status Mode Test Type No. Multiple Recovery To: KB GRD r------Production Rates Gauge Pressures kPa Temperature °C Well Status Type WeI/Type 23.0 Waterm3/d Difm3/d Gas 1000m3/d As Received Gas or Condensate Project Ucence No. 2007/03/10 2007/03/15 2007/03/20 2007/03/20 BP ,MC3 Date Sampled Slatt Date Sampled End Date Received Dale Reported Date Reissued Analyst PARAMETER DESCRIPTION Result unit MDL ndustrial Salinity (as NaCI) 5 % * Information not supplied by client •• data derived from LSD Information Results relate only to Items tested Remarks: CALGARY 2021-41 Avenue N.E., Calgary, Canada T2E 6P2 Tel: (403) 291-3077 Fax (403) 291·9468 GRANDE PRAIRIE #101, 7002 - 98 Street, Clairmont, Canada TOH OWO Tel; (780) 532-0227 Fax (780) 532-0288 EDMONTON 9331-48 Street, Edmonton, Canada T6B 2R4 Tel: (780)468-3500 Fax (780) 466-3332 STETILER Bay 6, 4705·42 Street, Stettler, Canada TOe2l0 Tel: (403)742-1107 Fax (403) 742·0170 2007103/20 17:08 Appendix F Waste Disposal Facility Confirmation Letter L Better ways to manage waste December 04, 2009 Mason Gao Abandonrite, a Service by Nabors Production Services 2800,500 4th Avenue SW . Calgary AB T2P 2V6 Dear Mason, This letter is to confirm that the Newalta Zama City facility has the ability to treat Dangerous Oilfield Waste (DOW) and Non-DOW, which including but not limited to salt water, cement returns, drilling mud, grease pit material. Our Facility is located at 12-18- 116-05W6, and our approval # is WM063 If you have further questions and or comments, please contact me at (780)-814-4154. Dale Andersen Northern Sales Representative Appendix G Nabors Canada Safety Manual- Environmental Controls And Emergency Contacts Nabors Canada LP SAFETY MANUAL ELEMENT: 08 ENVIRONMENTAL CONTROLS DATE: 01-Jan-04 SUB-ELEMENT: 4.0 PROCEDURES PAGE 139 of 217 NO.: 8-4.0 PROCEDURES 8-4.1 Environmental Hazard Reporting I. Environmental hazard reporting will reduce the potential for an incident. II. If you discover an environmental hazard, control the hazard if safe to do so. If you are unsure of how to control the environmental hazard, ask for help from your Site Supervisor or a co-worker. III. All employees will report an environmental hazard when they discover a situation that could lead to a spill or release. IV. All environmental hazards identified will be resolved, in order to decrease the potential for contamination of the environment. 8-4.2 Waste Management I. Nabors Canada LP is committed to the proper treatment and disposal of waste products generated by the company at all facilities. II. There are very few products in the control of the company which must be disposed of as a Dangerous Oilfield Waste (DOW), however, incidents may occur where DOW’s are generated and must be disposed as such. III. It is the policy of Nabors Canada LP to ensure that waste is separated into DOW and non-DOW groupings prior to disposal. Separated waste will be sent to the appropriate, licensed disposal facilities. IV. No employees will handle a DOW, apply treatment to render a waste non- dangerous or undertake spill clean up without proper training. V. Employees of Nabors Canada LP will be instructed that under no circumstances are chemicals or waste products to be burned in the flare pit. VI. Storage at both the well site and yard site will be in a manner which complies with the standards set by the provincial and federal regulations. VII. The key to Nabors Canada LP’s waste management program is to minimize waste. It is critical that every alternative, including reusing, recycling, reducing, recovering, and choosing environmentally friendly products, be used to minimize waste. This includes dangerous as well as non-dangerous oilfield wastes (DOW or non-DOW). In all cases, it is the responsibility of the waste generator to ensure Nabors Canada LP is committed to protect people and the environment. Safety is the way we do business and live our lives. Nabors Canada LP SAFETY MANUAL ELEMENT: 08 ENVIRONMENTAL CONTROLS DATE: 01-Jan-04 SUB-ELEMENT: 4.0 PROCEDURES PAGE 140 of 217 NO.: that each waste has been properly identified, characterized and is handled, treated and disposed of correctly. 8-4.2.1 Reduce: Generate less waste through more efficient practices. I. Order materials in bulk and in recyclable containers where possible to reduce number of containers requiring disposal. II. Eliminate leaks or spills through proper equipment inspection and handling procedures. III. Separate waste into recyclable and non-recyclable categories to reduce disposal costs and facilitate recycling. IV. Substitute non-hazardous materials for hazardous ones to reduce hazardous waste generation where ever possible. 8-4.2.2 Reuse: Generate less waste through reuse of materials. I. Send containers back to suppliers for refilling if and where possible. II. Reuse "consumable" items such as rags, pails etc. wherever possible. 8-4.2.3 Recycle: Minimize treatment and disposal of wastes by utilising recycling facilities. I. Minimize treatment and disposal of wastes by utilising recycling facilities. II. Most of the containers for products used by the company can be recycled. III. There are currently facilities for: a) Aerosol cans b) Batteries c) Cardboard d) Cutting oils e) Fuel and oil filters f) Metal drums g) Metals h) Plastic containers i) Tanks j) Used oil 8-4.2.4 Recover: Minimize treatment and disposal of wastes. I. Recover materials or energy used in other processes, for example water can be reused at the worksite. Nabors Canada LP is committed to protect people and the environment. Safety is the way we do business and live our lives. Nabors Canada LP SAFETY MANUAL ELEMENT: 08 ENVIRONMENTAL CONTROLS DATE: 01-Jan-04 SUB-ELEMENT: 4.0 PROCEDURES PAGE 141 of 217 NO.: 8-4.3 Waste Storage I. Wastes must be stored in such a manner so as to protect the environment. In most cases, proper storage is a matter of common sense. II. Wastes should be stored in covered sealed containers. Do not mix incompatible wastes (refer to MSDS, WHMIS, TDG, etc.) III. Drums containing liquid wastes should have the bungs securely in place to prevent rain and snow from entering them. Even if the volume is under 1 m3, covering drums that are outside with a protective cover is recommended. Where applicable, utilizing containers that are weather resistant, plastic, etc. is also recommended. IV. Separate storage bins or barrels should be set up for aerosol containers, paint cans, pipe dope containers, and any other such containers that can be collected and disposed of at a class 1a, 1b, or class 2 landfill. V. Caution must be used to ensure that when DOW’s are kept in a container that they are not contaminated with water or other products. Mixing different products with each other or water will make the waste difficult to recycle and therefore difficult to dispose. VI. Refer to the CAODC wall chart for specific storage requirements. VII. Examples of waste which may be found on the worksite: a) Used motor, hydraulic and gear oil b) Used oil and fuel filters, oily rags and grease cartridges c) Glycol, rig wash and paint products and containers d) Boiler blowdown water e) Used solvents f) Mud additive sacks and containers g) Drilling fluids h) Casing protectors 8-4.4 Worksite Disposal I. See CAODC wall chart for disposal details. 8-4.4.1 Worksite Disposal of Dangerous Oilfield Waste (Dow’s) Products I. In general, the CAODC wall chart entitled "Oilfield Waste Management Procedures" for the treatment, handling, and disposal of DOW’s should be followed. All DOW’s will be disposed of in a proper manner and Nabors Canada LP is committed to protect people and the environment. Safety is the way we do business and live our lives. Nabors Canada LP SAFETY MANUAL ELEMENT: 08 ENVIRONMENTAL CONTROLS DATE: 01-Jan-04 SUB-ELEMENT: 4.0 PROCEDURES PAGE 142 of 217 NO.: Shipping Document [Form 001] completed to ensure the DOW’s are directed to the proper disposal facility. II. Boiler water pH will be kept between 9.0 and 10.0 to ensure the blowdown water meets standards. All boiler blowdown water volumes are to be recorded in the tour book every time the boiler is blown down. These volumes will also be recorded on a Nabors bill of lading on a per well basis or once per month on long-term wells. III. Only RV antifreeze and environmentally friendly glycol is to be used for winterization of camp and rig equipment. 8-4.4.2 Worksite Disposal of Non-Dangerous Oilfield Waste (non-DOW’s) I. All non-DOW’s will be disposed of in a garbage bin or approved waste facility. II. All Non-DOW’s will be divided into four categories in the disposal bins: papers, woods, plastics and metals. (Where applicable) a) Papers will consist of all paper products, cardboard, rope and general garbage. This does not include mud additives containers, bags or sacks. b) Woods will consist of all wood products only. c) Plastics will consist of all plastics products including plastic pails. d) Metals will consist of all wire rope, cable, metal pails and metal scraps. III. All non-DOW’s will be documented on the Shipping Document when they leave location. IV. At no time is the flare pit to be used for garbage disposal or incineration. V. Operators are responsible for all waste that is generated on their site. Ensure they know of any wastes that you are disposing of. Participate in their environmental program. VI. The CAODC wall chart is a list of products and how they are handled, disposed of and the documentation required. This chart will be posted at all Nabors worksites that generate DOW’s. There may be other types of hazardous products at the worksite. The Site Supervisor will ensure they are inventoried as they are brought onto the location and a MSDS sheet must be made available. Nabors Canada LP is committed to protect people and the environment. Safety is the way we do business and live our lives. Nabors Canada LP SAFETY MANUAL ELEMENT: 08 ENVIRONMENTAL CONTROLS DATE: 01-Jan-04 SUB-ELEMENT: 4.0 PROCEDURES PAGE 143 of 217 NO.: 8-4.5 Yard/Shop Waste Disposal I. See CAODC wall chart for disposal details. 8-4.5.1 Hazardous Products I. All shop / warehouse hazardous products will be kept separately and marked according to their contents. The only exception to this is if the product is taken from stock for shipping purposes, in which case the hazardous products will be accompanied by a Shipping Document. II. All yard / shop hazardous waste for disposal will be put in containers and marked as to their contents. As with hazardous products, hazardous waste will all be kept in the designated location in the shop. All used oil will be accumulated in drums and disposed of when full. All oil or fuel filters will be kept in a barrel for disposal. A Shipping Document will be kept on record of all disposals. III. All sewage being transported for disposal will have a Shipping Document completed. 8-4.5.2 Non-Hazardous Products I. All non-hazardous waste will be disposed of in the main garbage bin. This bin will be used for all disposal needs with the exception of metal, which will be disposed of in the metal bin for recycling. II. All paper will be collected and recycled. 8-4.6 Camp I. See CAODC wall chart for details. II. Most products used in the operation of a camp facility are non-hazardous. Again, employees are urged to properly dispose of waste. All garbage is to be disposed of in the waste bin. All waste that is incinerated is to be disposed of after being burned. Employees are encouraged to recycle as many items as possible such as pop cans and containers. III. The human waste produced from the camp facility is the responsibility of the Operator, but employees should ensure that the waste is properly contained in the Nabors Canada LP is committed to protect people and the environment. Safety is the way we do business and live our lives. Nabors Canada LP SAFETY MANUAL ELEMENT: 08 ENVIRONMENTAL CONTROLS DATE: 01-Jan-04 SUB-ELEMENT: 4.0 PROCEDURES PAGE 144 of 217 NO.: sump pit and that the pit is properly fenced. Ensure that water wells drilled are more than 100 metres from the sump pit. IV. The fuel tank and propane tank are to be kept at least 6m from the camp facility. Personnel are to inspect these tanks periodically to ensure they are free from leaks. If a leak occurs, personnel are to try and contain the spill and report it to the appropriate supervisor. Employees are to ensure the electrical generating unit(s) is kept free from oil and fuel leaks. If a leak occurs, it is to be contained and repaired immediately. Any oil or fuel filters that are changed on the engine are to be properly disposed of, as outlined previously. 8-4.7 Waste Manifest I. AEUB Oilfield Waste Manifest must be completed when Nabors Canada LP generates oilfield wastes. 8-4.8 Permits of Exemption I. Permits of exemption allow the transporting of certain dangerous and hazardous goods without the need for full documentation. The permit is usable only if the conditions for usage are followed. If you transport any dangerous goods or hazardous waste without meeting the conditions of the permit, you are liable to receive a fine. II. Federally, the Transportation of Dangerous Goods (TDG) is under the jurisdiction of the Minister of Transportation and Provincial jurisdiction falls under Transportation and Utilities in Alberta, Saskatchewan Environment and Resources Management in Saskatchewan, and the Province of B.C. Motor Vehicle Branch in British Columbia. III. CAODC Transportation of Dangerous Goods Exemption Permits are required to move any piece of rig equipment containing dangerous goods. IV. Under TDG Regulations, all buildings or tanks are to be identified as to their contents and be permitted for transportation purposes. Each building and tank containing hazardous products must have a TDG placard indicating a Product Identification Number (PIN) on all four sides of the building or tank. A plastic or metal tube will also be attached to the exterior of the building, with CAODC identification, containing applicable Provincial Exemption Permits. PIN numbers and placards along with the exemption permits will be attached to the applicable building as follows: Nabors Canada LP is committed to protect people and the environment. Safety is the way we do business and live our lives. Nabors Canada LP SAFETY MANUAL ELEMENT: 08 ENVIRONMENTAL CONTROLS DATE: 01-Jan-04 SUB-ELEMENT: 4.0 PROCEDURES PAGE 145 of 217 NO.: V. All Site Supervisors are to ensure that the truck drivers responsible for transporting the units know the location of the TDG permits. VI. All Site Supervisors must ensure that the driver transporting the unit also has filled out the required TDG manifest. 8-4.9 Dangerous Goods and Oilfield Waste Bill Of Lading I. A Dangerous Goods & Oilfield Waste Bill of Lading must be completed and a copy of the bill of lading must accompany the shipment of the dangerous goods being transported. The bill of lading is only to be completed for the transportation of hazardous goods under the following circumstances: a) When transporting hazardous products between Nabors’ worksites. b) When disposing of hazardous waste. 8-4.10 Spills 8-4.10.1 Response I. Refer to Nabors Canada LP Emergency Management Plan contained in Element 4 of the NCSM. 8-4.10.2 Pre-Planning I. Prior to the beginning of any operation, the Nabors site supervisor is to determine which emergency services are available for the area he is in and the contact numbers are to be posted, as per company policy. II. The potential hazards on the location are to be determined and addressed. On drilling rigs, most spill hazards should be covered in the Operator Well Plan. III. Examples of hazardous release that could occur on the worksite are: a) Gas, oil, H2S or salt water blow-out b) Spill of oil base drilling fluid c) Diesel fuel or lubricating oil spill d) Spill of corrosive drilling fluid additives e) Spill of well workover fluids IV. Supervisory personnel should also do the following: a) Encourage each employee to be alert for any malfunction of equipment which may cause a pollution hazard and/or a safety threat. Nabors Canada LP is committed to protect people and the environment. Safety is the way we do business and live our lives. Nabors Canada LP SAFETY MANUAL ELEMENT: 08 ENVIRONMENTAL CONTROLS DATE: 01-Jan-04 SUB-ELEMENT: 4.0 PROCEDURES PAGE 146 of 217 NO.: b) When preparing to move a rig, the fuel tank, accumulator, oil tanks, etc. lines and valves are to be secured and plugged to eliminate any potential for a spill. If the rig is to be racked, main fuel tanks are to be emptied and all outlets plugged prior to stacking the rig. c) All unused valves, lines or outlets will be plugged or capped to prevent spills. 8-4.10.3 Spill Response and Reporting - Internal I. All spills, leaks, and releases of potentially harmful substances are to be internally reported according to the Incident Response Matrix. The Manager, HS&E or a designate will make any required reports to regulatory agencies. 8-4.10.4 Spill Response and Reporting - Alberta I. The Manager, HS&E or a designate will make any required reports to regulatory agencies. 8-4.10.4.1 Well Sites I. If a spill occurs with an unrefined product (crude oil or produced water) the following guidelines should be followed: II. Contact the local AEUB Field Office if: a) the volume of spill material is >2m3 on-lease; or b) any spill material escapes off-lease III. Complete an incident report and forward to the Environmental Coordinator if the volume is less than 2m3 and is contained on lease IV. If a spill occurs with a refined product (diesel, Varsol, chemical, lube oil, glycol, etc.) the following guidelines should be followed: a) Report spills or leaks of hazardous or dangerous goods where the spill: i. is of a volume greater than 2 m3 on lease; ii. enters into any natural waterway; and/or iii. escapes from the lease site. Nabors Canada LP is committed to protect people and the environment. Safety is the way we do business and live our lives. Nabors Canada LP SAFETY MANUAL ELEMENT: 08 ENVIRONMENTAL CONTROLS DATE: 01-Jan-04 SUB-ELEMENT: 4.0 PROCEDURES PAGE 147 of 217 NO.: b) Reports must be made to the local Alberta Energy & Utilities Board (AEUB) field office immediately upon discovery of the spill. If required, a written report will be submitted to the AEUB with the information requested. The AEUB may require a written report with the following information: i. the name, address, etc. of the drilling company and operator; ii. the location of the spill; iii. the source and cause of the spill; iv. the type and volume of product spills; v. the final distribution of recovered and un- recovered product; and vi. other details as required. 8-4.10.4.2 Yard Sites, Rig Rack Sites, and Rig Move Routes I. Spills of products at these sites are exempt from the reporting requirements of the Alberta Environmental Protection and Enhancement Act. II. Spills of controlled substances greater than the thresholds specified in the Transportation of Dangerous Goods Regulations should be reported to: a) the Director of Pollution Control, Alberta Department of Environment through Industrial Incident Reporting; b) anyone directly affected by the spill (for example, other yard sites, municipality, private landowners, etc.) III. The report to the Director should include: a) the location and time of the release; b) a description of circumstances leading up to the spill; c) details of any action taken or planned at the release site; d) the final distribution of recovered and unrecovered product; and e) reclamation plans if required. IV. A written report must also be sent to the Director’s office within seven days of the initial report being made. It should contain the following information: Nabors Canada LP is committed to protect people and the environment. Safety is the way we do business and live our lives. Nabors Canada LP SAFETY MANUAL ELEMENT: 08 ENVIRONMENTAL CONTROLS DATE: 01-Jan-04 SUB-ELEMENT: 4.0 PROCEDURES PAGE 148 of 217 NO.: a) date and time of the spill; b) location of the spill; c) duration of the release and its release rate; d) composition of the release showing, for each substance; i. its concentration ii. the total weight, quantity or amount e) a detailed description of the circumstances leading up to the release; f) steps or procedures which were taken to minimize, control or stop the release; and g) any other information as required by the Director. V. The written report should be sent to: ALBERTA ENVIRONMENT Pollution Control Division 11th Floor, 9820 - 106 Street Edmonton, Alberta T5K 2J6 VI. Spills or leaks at rig rack may not be detected until days or even weeks after the incident occurs, however, if such a release occurs, it should be reported and active clean-up measure implemented as soon as possible. 8-4.10.5 Spill Response and Reporting – British Columbia I. The BC regulations require the reporting of spills of any materials that could cause pollution, where the quantity of spilled material is equal or greater than that specified in the table below. The spill should be reported by the person who was in charge of the material before it was spilled, or by anyone observing a spill, if it appears that the spill has not been reported. The report should be made out to the Provincial Emergency Program: 1-800-663-3456; or 1-250-387-5956 or to the local police or nearest detachment of the RCMP. Nabors Canada LP is committed to protect people and the environment. Safety is the way we do business and live our lives. Nabors Canada LP SAFETY MANUAL ELEMENT: 08 ENVIRONMENTAL CONTROLS DATE: 01-Jan-04 SUB-ELEMENT: 4.0 PROCEDURES PAGE 149 of 217 NO.: TABLE 3: Reportable quantities for spills TDG Classification or Name Reportable of Spilled Substance Quantity 1 Any 2.1 10 kg 2.2 10 kg 2.3 5 kg 2.4 5 kg 3 100 L 4 25 kg 5.1 50 kg 5.2 1 kg 6.1 5 kg 6.2 Any 7 Any 8 5 kg 9.1 50 kg 9.2 1 kg 9.3 5 kg Waste Asbestos 50 kg Waste Oil 100 L Waste Pesticides 5 kg Any substance not listed that can cause pollution 200 kg II. The report should include the following information: a) name and telephone number of the person reporting the spill; b) name and telephone number and contact of the company or person who caused the spill; c) the time and place at which the spill occurred, together with a description of the area surrounding the spill; d) the type and quantity of material spilled; e) the cause and effect of spill f) details of any response action underway, including a list of agencies on the scene or advised on the spill; and g) details of further action. III. Containment and cleanup action should begin as soon as possible to protect human health and the environment. If the party causing the spill or the local response agency (agencies) is unable to respond Nabors Canada LP is committed to protect people and the environment. Safety is the way we do business and live our lives. Nabors Canada LP SAFETY MANUAL ELEMENT: 08 ENVIRONMENTAL CONTROLS DATE: 01-Jan-04 SUB-ELEMENT: 4.0 PROCEDURES PAGE 150 of 217 NO.: immediately to a spill, the Minister of Environment, Lands and Parks may step in to take control of the situation. 8-4.11 Rack Sites I. Rack sites will be considered the same as worksites. The area will be cleaned of all debris from painting or repairs that were done during racking. Permission must be received prior to cleaning or painting equipment while at a rack site. II. At rack sites, which are frequently left unattended for long periods, all storage of controlled substances will be secured against vandalism of theft. Prior to leaving the site unattended, all employees shall be responsible for ensuring that all controlled substances on site are not leaking from their containers and that they are secure from posing any environmental hazard to the surrounding population. III. Yard sites, which are more permanent facilities, will also need to be secured against vandalism. Equipment maintenance and storage frequently require handling significant volumes of controlled substances such as used oil, glycol, and diesel fuels. Spills of these products will be avoided if possible and cleaned up quickly in a safe manner if unavoidable. Contaminated soil and other waste obtained as a result of any spill cleanup will be stored securely until they can be disposed of in an appropriate manner. 8-4.12 Spill Response Kit I. Nabors Canada LP is still committed to being prepared for an unexpected spill. Subsequently, each rig has been equipped with a Spill Kit. Each kit will contain at a minimum: gloves, coveralls, goggles, disposable bags, shovels, brooms, and absorbents for spill response. If a major spill occurs our job is containment and in most cases specialist in environmental cleanup will be contacted. Nabors Canada LP is committed to protect people and the environment. Safety is the way we do business and live our lives. 8-5.0 RECORDS 8-5.1 Field I. A copy of the “permits of exemption” or “permits of an equivalent level of safety” will accompany each one of Nabors’ units that house or transport dangerous goods. II. Copies of all Incident Investigation Reports and Shipping Documents are to be kept in the Site Supervisor’s safety documentation file for a minimum of 2 years. III. All CAODC Environmental Alerts will be reviewed during the environmental meetings and kept for future reference in the safety documentation file. 8-5.2 Office I. Any environmental hazards or incidents identified will be filed after being fully resolved. II. All documentation drafted and published as a result of an emergency response, will be kept on file for a minimum of 2 years. III. All “permits of exemption” and “permits of an equivalent level of safety” will be monitored and updated as needed. EMERGENCY AND REGULATORY CONTACTS Medical Evacuation Contact H H Williams Memorial Hospital TEL: 867-874-6512 Hay River Health and Social Services Authority TEL: 867-874-7100 RCMP (Hay RIver) TEL: 867-874-1111 NWT Worker’s Compensation Health and Safety Board TEL: 1-800-661-0792 NWT Emergency Spill Line TEL: 867-920-8130 Environment Canada TEL: 780-951-8600 Government of NWT – Environment Forest Fire Reporting Line TEL: 1-877-698-3473 Hay River Wildlife Emergency Line TEL: 867-875-7640 Department of Fisheries and Oceans TEL: 1-866-290-3731 PWGSC Project Manager David Hango TEL: 780 497-3700 PWGSC Const. Safety Coordinator Corrine Stokowski TEL: 780-446-7451 Indian and Northern Affairs Canada Alison Heslep TEL: 867-669-2769 EMERGENCY CONTACT LIST - MANAGEMENT & STAFF Project Supervisor/Site Safety Representative Don Sadoway TEL: CEL: 780-916-0561 Superintendent of Operations Jack Rowe TEL: 867-874-3243 CEL: Safety/Loss Control Mark Taylor TEL: 403-508-1707 CEL: 403-826-7273 Project Manager Malcolm McKean TEL: 403-508-7902 CEL: 403-804-0157 Corporate Officer Office General TEL: 403-263-6777 Fax: 403-237-8001 Medic TEL: OTHER EMERGENCY RESPONSE CONTACT LIST – OUTSIDE AGENCIES Canadian Coast Guard TEL: 1-800-267-7270 Helicopter Company TEL: 867-873-2081 Katlodeeche First Nation TEL: 867-874-6701 Hay River Métis Council TEL: 867-874-4442 Appendix H Nabors Drilling Rig #94 CT General Layout • I 2 r----IFINDOUBT....PLEASEASKI ------'------'------'------'-----'------'------"-----'------'-----, D D / - - , " ~ , " I / ., I / \ r::l \ \ c \ o c ~~ (:l,.ooo B B I / I \ / I " / \ / R'>'!=)/"\ BUILDING STRUCTURE # """i'I',,"I/" / J1(l16-DA-011 CATWALK " J1016-DA·031 HYDRAULIC P!PE TUB J1016-0A-{)61 FLARE TANK J1016-DA-071 MUD TANK J1016-DA-111 PUMP#1 MOOULE J1016-DA-131 CHANGE I MEETING BUiLDING J1016-DA·141 CARRIER, BY OTHER J1016-0A-161 DOGHOUSE J1016-0A-211 GENERATORfTOOl HOUSE/CHANGE ROOM J1016-0A-221 VFOfWATER TANK MODULE J1016-DA-261 BOllER MODULE A J1016-DA-321 TOOLPUSHER HOUSE, BY OTHER A ~..,"'!;"~= ~L ",. GENERALLAYQUT ~~~:.WW~~g.,~~~!::-= r"":~~~~====~~:=~;j J'~15.fll(;'" =':':"'''::'';.'3=. ;~"'q r JiOlG-llMIOO 10 I":~\ r'~ . ~~ 2 Water Truck 22,350kg Send water for disposal 5 Pick up trucks 5000 kg of each Crew change, emergency response * Nabors Drilling Rig # 94 CT. This equipment is going to be the heaviest and largest on site. 11. Fuels () Number of containers Capacity of containers Location Diesel 2 truck Integral Fuel Tanks in Rig Max. 10,000 L for rig and Fuel Tank load 5,200 L for boiler Gasoline N/A Service trucks will get fuel from The Town of Hay River Aviation fuel N/A Propane N/A Other N/A 12. Containment fuel spill contingency plans. (Please attach separate contingency plan if necessary). Spill kits will be available on site. Storage tanks are integral storage facilities for holding fuel. The drilling rig will be mobilized to site with minimal fuel contained in it. The fuel storage tanks in the rig will be filled by a fuel truck when on site (See Appendix G 8-4.101 for proposed spill contingency planning and reporting procedures ofNabors Canada. A site specific spill contingency plan will be provided prior starting the rig work. 13. Methods offuel transfer (to other tanks, vehicles, etc.) Electric pump from fuel truck to Drilling Rig storage facility. 14. Period of operation (includes time to cover all phases ofproject work applied for, including restoration) The operation will begin December 2010 if weather permits. The access road and lease will be prepared by end of January 2011 and the drilling will be finished and all equipment will be moved offlease before mid of March 2011. Following the well closure monitoring and inspection will occur at the site to the last quarter ofyear 2011 to ensure the wells are properly abandoned, and if so, the wells will be cut and capped. 15. Period of permit (up to five years, with maximum of two years of extension). The permit is requested for four years. 16. Location of activities by map co-ordinates (attach maps and sketches) - NAD83 Minimum latitude (degrees, minutes, seconds) Maximum latitude (degrees, minutes, seconds) 60 0 42' 9.51" 60 0 42' 29.92" Minimum longitude (degrees, minutes, seconds) Maximum longitude (degrees, minutes, seconds) 0 115 53' 3.03" 115 0 53' 50.51" Map Sheet no. J :250,000 map sheet 85B; 1 :50,000 map sheet 85 B 12 17. Applicant Print name in full I~T~5el( Signature ~~ Date ~ d-:S/IO' l 18. Fees Type A - $150.00 ** t e B - $150.00 ** (* *Application Fees are N on- Refundable**) Land use fee: hectares @ $50.00lhectare $ Assignm~nt fee $50.00 $ Total application and land use fees $ Please make all cheques payable to "Receiver General of Canada"