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Project Description of a Designated Project Equinor Canada Ltd. Central Ridge Exploration Drilling Program Project Description May 2019 Central Ridge Exploration Drilling Program Project Description May 2019 TABLE OF CONTENTS 1.0 INTRODUCTION ....................................................................................................................12 1.1 Overview of the Flemish Pass Exploration Drilling Program ...................................................12 1.2 Project Description Approach .................................................................................................13 1.3 Identification and Overview of the Operator ............................................................................14 1.3.1 Equinor Canada’s Offshore Experience ......................................................................14 1.3.2 Equinor’s Management System ..................................................................................15 1.3.3 Equinor Canada Contacts ...........................................................................................15 1.4 Regulatory Context.................................................................................................................15 1.4.1 The Accord Acts .........................................................................................................15 1.4.2 Land Ownership and Licencing ...................................................................................16 1.4.3 Canadian Environmental Assessment Act, 2012 ........................................................28 1.4.4 Other Potential Regulatory and Policy Requirements and Interests ............................28 1.4.5 Federal Funding .........................................................................................................29 2.0 PROJECT DESCRIPTION .....................................................................................................29 2.1 Scope .....................................................................................................................................29 2.2 Purpose ..................................................................................................................................30 2.3 Location and Designated Project Area ...................................................................................30 2.3.1 Study Areas ................................................................................................................33 2.3.2 Temporal Boundaries .................................................................................................34 2.4 Components and Activities .....................................................................................................34 2.4.1 Drilling Installations and Activities ...............................................................................34 2.4.2 Geophysical, Environmental and Geotechnical Surveys .............................................36 2.4.3 Formation Flow Test with Flaring ................................................................................37 2.4.4 Well Decommissioning or Suspension ........................................................................38 2.4.5 Supply and Servicing ..................................................................................................38 2.5 Personnel ...............................................................................................................................39 2.6 Schedule ................................................................................................................................40 2.7 Waste Discharges and Emissions ..........................................................................................41 2.7.1 Air Emissions ..............................................................................................................42 2.7.2 Hazardous and Non-Hazardous Waste .......................................................................43 2.7.3 Drilling Waste .............................................................................................................44 2.7.3.1 Drill Mud and Cuttings .....................................................................................44 2.7.3.2 Cement ...........................................................................................................47 2.7.4 Liquid Waste ...............................................................................................................48 2.7.5 Heat, Light and Sound Emissions ...............................................................................50 2.7.5.1 Light and Heat Emissions ................................................................................50 2.7.5.2 Sound Emissions ............................................................................................50 2.8 Alternative Means ..................................................................................................................51 3.0 REGULATORY, INDIGENOUS AND STAKEHOLDER ENGAGEMENT ...............................53 3.1 Indigenous Groups .................................................................................................................54 Page 2 of 138 www.equinor.com Central Ridge Exploration Drilling Program Project Description May 2019 3.2 Stakeholder Groups ...............................................................................................................56 4.0 ENVIRONMENTAL ASSESSMENT SCOPE, APPROACH AND METHODS ........................57 4.1 Scope .....................................................................................................................................57 4.2 Valued Components ...............................................................................................................57 4.3 Environmental Effects Assessment ........................................................................................57 5.0 EXISTING PHYSICAL ENVIRONMENT ................................................................................58 5.1 Geology and Bathymetry ........................................................................................................58 5.2 Climatology ............................................................................................................................59 5.3 Oceanography ........................................................................................................................59 5.4 Ice Conditions ........................................................................................................................60 6.0 EXISTING BIOLOGICAL ENVIRONMENT ............................................................................60 6.1 Plankton, Plants and Macroalgae ...........................................................................................60 6.2 Pelagic Macroinvertebrates ....................................................................................................61 6.3 Benthic Invertebrates .............................................................................................................61 6.4 Corals and Sponges ...............................................................................................................62 6.5 Fish and Shellfish ...................................................................................................................63 6.6 Marine and Migratory Birds ....................................................................................................63 6.7 Marine Mammals and Sea Turtles ..........................................................................................65 6.8 Species at Risk and Species of Conservation Concern ..........................................................66 6.9 Special Areas .........................................................................................................................70 7.0 EXISTING HUMAN ENVIRONMENT .....................................................................................71 7.1 Indigenous Communities and Activities ..................................................................................71 7.2 Commercial Fisheries and Other Users ..................................................................................73 8.0 ENVIRONMENTAL EFFECTS ASSESSMENT ......................................................................74 8.1 Modelling ................................................................................................................................75 8.1.1 Drill Cuttings Dispersion Modelling .............................................................................75 8.1.2 Spill Trajectory Modelling ............................................................................................75 8.2 Marine Fish and Fish Habitat (including Species at Risk) .......................................................75 8.2.1 Anticipated Changes to the Environment ....................................................................76 8.2.2 Anticipated Effects (Planned Components and Activities) ...........................................76 8.2.2.1 Presence and Operation of Drilling Installation ................................................76 8.2.2.2 Drilling and Associated Marine Discharges .....................................................77 8.2.2.3 Formation Flow Testing with Flaring ................................................................78 8.2.2.4 Wellhead Decommissioning ............................................................................78 8.2.2.5
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