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Capricorn Greenland Exploration - 1
Social Impact Assessment, Exploration Drilling Programme, Sigguk Block, Disko West, Greenland
March 2010
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Delivering sustainable solutions in a more competitive world
Capricorn Greenland Exploration-1
Capricorn Sigguk Exploration Drilling SIA
March 2010
Reference 0108885
Prepared by: Kim Swanzey
For and on behalf of Environmental Resources Management
Approved by: Dr Kevin Murphy
Signed:
Position: Partner
Date: 1 March 2010
This report has been prepared by Environmental Resources Management the trading name of Environmental Resources Management Limited, with all reasonable skill, care and diligence within the terms of the Contract with the client, incorporating our General Terms and Conditions of Business and taking account of the resources devoted to it by agreement with the client.
We disclaim any responsibility to the client and others in respect of any matters outside the scope of the above.
This report is confidential to the client and we accept no responsibility of whatsoever nature to third parties to whom this report, or any part thereof, is made known. Any such party relies on the report at their own risk.
Environmental Resources Management Limited Incorporated in the United Kingdom with registration number 1014622 Registered Office: 2nd Floor, Exchequer Crt, 33 St Mary Axe, London, EC3A 8AA CONTENTS
NON TECHNICAL SUMMARY
1 INTRODUCTION 1-1
1.1 BACKGROUND 1-1 1.2 SCOPE 1-1 1.6 SOURCES OF INFORMATION 1-1
2 POLICY, REGULATORY AND ADMINISTRATIVE FRAMEWORK 2-1
2.1 APPLICABILITY TO THE EIA AND SIA 2-1 2.2 NATIONAL LEGISLATIVE FRAMEWORK 2-1 2.3 INTERNATIONAL TREATIES AND CONVENTIONS 2-3 2.4 INTERNATIONAL GUIDELINES AND STANDARDS FOR THE EXPLORATION AND PRODUCTION INDUSTRY 2-9
3 PROJECT DESCRIPTION 3-1
3.1 PROJECT OVERVIEW 3-1 3.2 PROPOSED WELL LOCATIONS 3-3 3.3 PROPOSED PROJECT SCHEDULE 3-5 3.4 PROPOSED DRILL UNITS 3-5 3.5 RESERVOIR RESOURCES 3-10 3.6 RIG MOBILISATION 3-12 3.7 DRILLING AND WELL CONSTRUCTION 3-12 3.8 MUD AND CUTTINGS DISPOSAL 3-15 3.9 WELL CLEANING, TESTING AND COMPLETION 3-17 3.10 CHEMICALS 3-18 3.11 CONSUMPTION AND EMISSIONS 3-21 3.12 SUPPORT OPERATIONS 3-24 3.13 OTHER DEVELOPMENT OPTIONS 3-30
4 ASSESSMENT METHODOLOGY 4-1
4.1 INTRODUCTION AND OVERVIEW OF THE IMPACT ASSESSMENT PROCESS 4-1 4.2 SCREENING 4-1 4.3 SCOPING 4-2 4.4 BASELINE DATA COLLECTION 4-5 4.5 INTERFACE WITH PROJECT PLANNING AND DESIGN 4-6 4.6 ASSESSMENT OF IMPACTS 4-7 4.7 MANAGEMENT AND MONITORING 4-12 4.8 REPORTING AND NEXT STEPS 4-12
5 SOCIO-ECONOMIC BASELINE DESCRIPTION 5-1
5.1 INTRODUCTION 5-1 5.2 ADMINISTRATIVE STRUCTURE & TERRITORIAL ORGANIZATION 5-5 5.3 DEMOGRAPHIC PROFILE 5-8 5.4 SOCIAL NETWORKS AND VULNERABILITY 5-13 5.5 ECONOMY 5-17 5.6 EMPLOYMENT 5-30 5.7 EDUCATION, TRAINING AND SKILLS 5-35 5.8 INFRASTRUCTURE 5-41 5.9 SECURITY 5-45
6 SOCIAL ASSESSMENT 6-1
6.1 INTRODUCTION 6-1 6.2 DESCRIPTION 6-1 6.3 REGULATORY FRAMEWORK 6-1 6.4 RECEPTORS 6-2 6.5 CONSULTATION 6-3 6.6 OVERALL IMPACT 6-3 6.7 SOCIOECONOMIC IMPACTS 6-6 6.8 INFRASTRUCTURE IMPACTS 6-8 6.9 IMPACTS ON LOCAL ENTERPRISE 6-13 6.10 IMPACTS ON COMMUNITY 6-17 6.11 CONCLUSION 6-18
7 SOCIAL MITIGATION AND MONITORING 7-1
7.1 INTRODUCTION 7-1 7.2 MANAGEMENT PLAN/ BENEFIT AND IMPACT PLAN 7-2 7.3 SUMMARY 7-5
NON-TECHNICAL SUMMARY
INTRODUCTION
This is the Non Technical Summary of a Social Impact Assessment (SIA) for an offshore multiple well exploration drilling programme (the Project). The programme will be conducted within the Sigguk exclusive licence 2008/10 (Sigguk Licence) off the north west coast of Greenland between June and October 2010, with a two month contingency window over November and December, in case relief well drilling is required. It is important to note that Project drilling activities may require all or only part of this period.
This SIA considers issues as they relate to the exploration drilling programme in the Sigguk License area. Further revisions of the SIA, with additional data collection and stakeholder consultation, will therefore be produced for any further exploratory drilling outside of the Sigguk 2010 campaign, or for any future stages of the exploration and potential development phases of work.
This SIA has been produced by Environmental Resources Management (ERM) on behalf of Capricorn Greenland Exploration-1 Ltd (Capricorn), a subsidiary of Cairn Energy PLC (Cairn). It has been undertaken in accordance with applicable Greenland legislation and standards, international guidance and the corporate policies and expectations of Cairn.
SIA STANDARDS AND PERMITTING
The regulatory framework for offshore oil and gas activities in Greenland is currently being revised. The Bureau of Minerals and Petroleum (BMP) is the main implementing agency for laws relating to hydrocarbon exploration, and has been consulted throughout this SIA process.
SCOPE
As well as the SIA, a separate Environmental Impact Assessment (EIA) has been produced for the Project by ERM on behalf of Capricorn. Physical and biological environmental factors are therefore excluded from the SIA and covered by the EIA.
The geographical scope of the SIA includes the municipality of Qaasuitsup, with particular attention paid to the towns of Ilulissat and Aasiaat, where some on-shore Project facilities may be located. Where information is available, it is also included for the towns of Qeqertarsuaq, Kangaatsiaq, Uummannaq, Upernavik, and Qasigiannguit.
The municipality of Qeqqata is also considered in this report, in terms of impacts to Sisimiut, from where significant quantities of Greenland-based services and materials will be sourced, and Kangerlussuaq, which will be the transit gateway for rotational workers entering and leaving Greenland.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION-1 i
Figure 1 (below) illustrates the Project area considered as part of this SIA.
Figure 1 Project-Affected Area
Source: nunagis.gl (2010)
PROJECT PROPONENT AND SIA PRACTITIONER
Project Proponent
Capricorn Greenland Exploration-1 is a subsidiary of Cairn Energy PLC based in Edinburgh, UK. Cairn is an independent, public oil and gas exploration and production company quoted on the London Stock Exchange.
SIA Practitioner
ERM is a leading global provider of environmental, health and safety, risk, and social consulting services, with 137 offices in 39 countries employing approximately 3,300 staff. ERM has worldwide expertise in environmental and social impact assessment for offshore oil and gas projects, including operations in Arctic waters.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION-1 ii ASSESSMENT METHODOLOGY
Overview of the Impact Assessment Process
This SIA has been undertaken following a systematic process that predicts and evaluates the probable impacts of the Project on aspects of the socio-economic environment; it identifies measures to mitigate adverse impacts, and to maximise benefits, as far as is reasonably practicable.
The overall approach is shown in Figure 2. Screening and Scoping for the SIA (and EIA) has been underway throughout Project planning and has involved consultation with the Greenland Government and key stakeholders, review of legislation and international standards and examination of previous studies. Engagement with the authorities and key stakeholders, affected populations in the Project area and Non-Governmental Organisations (NGOs) has continued throughout this process, as has interaction with the Capricorn Project Team.
Figure 2 Overview of IA Approach
Screening
Scoping
Assessment Stakeholderengagement
Predict magnitude of impacts
Evaluate their significance
collection and new and surveys) new collection Investigate options for mitigation Baseline studies (existing data (existing studies Baseline
Reassess residual impact (as required)
Management Plans/ Mitigation Register Interaction with project planning and design and planning project with Interaction
Reporting and Disclosure
Baseline Data Collection
To provide a social baseline against which potential impacts can be assessed, the SIA provides a description of the conditions that exist in the absence of the Project. The baseline identifies and assesses all stakeholders (also called “receptors”), as well as resources identified as having the potential to be significantly affected by the proposed Project.
In preparing this SIA, a range of existing information sources and existing studies have been used. A comprehensive literature review has been conducted using reports prepared by government agencies; Greenlandic and
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION-1 iii Danish research organizations, results from previously conducted studies in Greenland, and other published sources.
In order to supplement published information and data, a social baseline data gathering mission was undertaken in February 2010. Consultations undertaken as part of this mission are summarised in Table 1 below.
Table 1 Summary of Stakeholder Engagement
Location Stakeholders Engaged
• GA, NuSuKa, SIK • Greenland Travel Companies • Greenland Training Institutions • Air Greenland • Royal Arctic Line • Local Non-Government Organizations Nuuk • Beredskabskomiteen • KANUKOKA • Fishing Associations • Ministries of Internal Affairs; Environment and Nature; Financial Issues; Infrastructure; Housing and Traffic; Fishing, Hunting and Agriculture; Health and Social Affairs; Industry and Labour; Education, Culture, Church and Science; BMP • Town administration • Port Authority • Sisimiut Airport Authority (GLV) • Chamber of Commerce • Fire and Police • Training Institutions • Municipal Administration and Offshore Group • Police station • Ilulissat GA and Chamber of Commerce • INI • Small business owners • Local tourism operators • Chamber of Commerce Aasiaat • Local unemployed residents • Local fishermen and hunters • Town administration Uummannaq • Small business owners • Citizens • Qasigiannguit Town administration • Head of Culture • Qeqertarsuaq Town administration • Small business owners
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION-1 iv Figure 3 Public Consultation in Uummannaq (February 2010)
Source: ERM 2010
Following publication this non-technical summary (NTS), as well as the summary for the EIA, the findings of the Social and Environmental Impact Assessments will be communicated and verified through a public hearing process, during which time stakeholders will have the opportunity to query and comment on the report. This is expected to take place in mid-March 2010.
Assessment of Impacts
The assessment describes what will happen by predicting and quantifying as far as possible the magnitude of impacts. The term ‘magnitude’ is used as shorthand to encompass all the dimensions of the predicted impact including:
• the nature of the change (what is affected and how); • its size, scale or intensity; • its geographical extent and distribution; • its duration, frequency, reversibility, etc; and • where relevant, the probability of the impact occurring.
Magnitude also includes any uncertainty about the occurrence or scale of the impact. An overall grading is provided to determine whether an impact is of negligible, small, medium or large magnitude.
The next step in the assessment process is to explain what the magnitude of an impact means in terms of its importance to people and the environment. This is referred to as Evaluation of Significance.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION-1 v
Magnitude and sensitivity are considered in combination to evaluate whether an impact is significant and if so its degree of significance (see Figure 4).
Figure 4 Evaluation of Significance
Magnitude of Impact
Small Medium Large
Not Significant
Low Minor
Moderate
Major Value/Sensitivity of Resource/Receptor Value/Sensitivity High Medium
Mitigation and Residual Impacts
Impacts from both routine and non-routine Project activities are considered, taking into consideration existing mitigation measures within Project design. Where the assessment results in significant impacts, methods for practical and affordable mitigation are identified.
SOCIAL SETTING
Employment and Training
Employment and training of the population is considered to be a key priority by the Government of Greenland, and this was reflected in consultations with all stakeholder groups.
A range of training facilities exist in the Project area, including local Piareersarfiit, targeted training programmes provided through employee and business associations, as well as highly developed facilities such as the Sisimiut Building and Construction School (Figure 5). At the national level, other training facilities for training opportunities include the Metalwork and Industry school (in Nuuk), the Food Service and Preparation School (in Inuili), and the School for Merchant Mariners (in Paamiut).
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION-1 vi Figure 5 Sisimiut Building and Construction School
Source: ERM 2009
Access to education and training opportunities is challenged by poor attendance, low availability of trained teachers, and challenges in the social background of students. Students who are unable to access education and training and are therefore unable to acquire basic qualifications and skills face greater difficulties in qualifying for and maintaining stable employment.
Hunting and Fishing Activities
Hunting and fishing remain the dominant livelihood activities in the Project area, and provide an important source of income and subsistence as well as a critical aspect of Greenlandic cultural identity. Changes in climate, economy and aspirations of young people are resulting in progressive decline in hunting and fishing as the primary economic activity for families.
The majority of local fishing vessels are small-scale operations, though large commercial companies also work in the waters off the Project area. As demonstrated in Figure 6, fishing activities are focussed primarily along the inshore areas, which are accessible to both commercial and small-scale fishermen. Deeper waters are fished by commercial trawlers, and the area near the drilling licence is fished for halibut and, to a lesser extent, shrimp.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION-1 vii Figure 6 Fishing in Project Area
Source: ERM 2010
Although less significant as a commercial activity, hunting is an important source of income, through sale of meat and skins, as well as subsistence and culture in Greenland. Significant species include muskox, reindeer, seabirds, seals, walrus and whales.
Local Business Activity
The largest companies in Greenland tend to be Government-owned (such as Royal Arctic Line, Air Greenland, Royal Greenland and KNI A/S) – with some exceptions (such as Polar Seafood). Generally, however, the majority of private businesses in Greenland are small, with few medium-sized enterprises. Within the project area, the main sectors of business are construction and repair. Tourism is also important locally, although its contribution to the national economy is so far modest at the national scale. Within the project-affected area, tourism activities include dogsledding and skiing in the winter, hiking, whale watching, kayaking and sailing in the
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION-1 viii fjords in the summer, along with sports fishing and excursions to historical settlements and archaeological sites. Higher-level tourism infrastructure has been developed in the larger towns of Sisimiut, Ilulissat and Kangerlussuaq.
The majority of businesses are associated within Chambers of Commerce or similar businesses organizations. These structures promote economic and industrial development in the municipalities, through training and capacity building, encouraging collaboration.
Infrastructure
Towns and settlements in Greenland are not commonly connected by road. Instead, passenger and goods are transported by sea or air. Because of the importance of ports and airports as hubs of transport and commercial activity in Greenland, impacts to these are carefully considered.
Ports are an important gateway for marine traffic in Greenland; the larger ports, in particular, receive passenger vessels, cargo vessels, fishing trawlers, cruise vessels, small scale fishing boats, foreign vessels and vessels that need tank water and fuelling.
All towns and settlements will have a port of some level; however the main commercial ports in the Project area are located in the largest towns of Sisimiut, Ilulissat and Aasiaat.
Figure 7 Port of Sisimiut
Source: ERM 2009
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION-1 ix The port of Sisimiut (Figure 7) is the major port of the region, and will be used by the Project for storage and loading of supplies for the drill ships (through a contract with Royal Arctic Line). Currently, it is used by commercial fishing fleets, supply vessels, passenger ferries, and international cruise ships. Stakeholders have reported that traffic through this port is a serious issue, and raised concerns that Project activities might create further congestion. Port Authorities in Sisimiut reported that there is already a high likelihood of delays to port access at all times of the week (including Sundays), with delays reaching 12- 24 hours. Because the port is run by Royal Arctic Line, the issue raised was less about meeting the Project needs, and more about potential challenges faced by other port users.
Air Greenland is the only air carrier in Greenland. As the national aviation company, Air Greenland provides both commercial flight services and well as social transport needs for the country, including transport of goods and supplies and medical response/ transport.
Nearly all towns and settlements will have at least a helicopter pad, while most towns have at least a small airport. Airports in Greenland are managed by the Airport Authorities, which are responsible for the staffing and scheduling of national airports. In some towns, limited air tower controllers restrict the opening hours of airports, which can affect air travel to and from those areas.
The Aasiaat airport, which currently operates a six hour window, will have its capacity supplemented to meet Project needs for crew transport and emergency response. The airport authorities have indicated that they plan to reallocate four tower controllers from elsewhere in Greenland during the period of exploration drilling, to allow the airport to operate 24/7. There are no plans to develop airport infrastructure specifically for this Project; staff at airports from which supplemental operators have been drawn will be expected to compensate for the reduced manpower with overtime.
Greenland lacks the equipment and infrastructure necessary for high level emergency response or SAR. In recognition of this, Capricorn will establish oil spill equipment adequate to respond to a significant oil spill on the west coast. This means that in the already unlikely event of an oil spill, response could be immediately initiated, and access to response equipment would not be delayed.
Any significant non-routine event, including both oil spills and emergencies, would require a coordinated response among national authorities, who would need full awareness of Project-specific emergency planning provisions. In recognition of this, a contingency committee was created in 2000 to oversee emergency planning in mineral and petroleum projects. The committee represents the key organizations that would be implicated in the event of an emergency, including the police, Danish High Commission, Department of Health, Department of Environment, the national contingency committee, the Danish Maritime Authority, and the navy. In the context of a major event, the
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION-1 x committee ensures that relevant parties remain updated on the situation and that response is undertaken in a coordinated way, incorporating the capacities of all parties.
The contingency committee would be provided with the opportunity to review and comment on the health and safety plan of the Project. Training and emergency response simulations will ensure that the relevant personnel at both state and company level understand procedures in the event of an emergency, and gaps in capacity can be identified and addressed in advance of an actual event.
THE PROJECT
Capricorn has a working interest in a total of eight exploration licences off the south and west coasts of Greenland, although the current drilling programme and the remit of this SIA is concerned solely with the planned exploration programme in Block 1, Sigguk. The drilling programme is planned to take place over four months, with a two month contingency for relief well drilling in case of a major unplanned event (see Table 2 below).
Table 2 Outline Drilling Schedule
2010 May June July August Sept Oct Nov Dec
Mobilisation
Drilling (4 wells)
Relief Well
The programme will involve the drilling of four wells, with the possibility of drilling up to a further two wells in the same block within the existing project schedule should initial drilling go faster than expected and if it proves operationally worthwhile, and pending additional environmental approvals.
The drilling programme itself will employ a range of state-of-the-art technology and operating standards to meet the challenges of drilling in the offshore Arctic environment. Two mobile offshore drill units (MODUs) (Figure 8) will be employed in order to provide a high degree of operational and safety contingency. A number of vessels will be employed to provide support and emergency cover for the operations, including supply boats, support vessels and ice breakers. A ‘wareship’ will provide offshore storage and contingency accommodation off the coast at Aasiaat, with helicopters and fixed wing aircraft used to transfer personnel to and from the field area, the support facilities and the international airport at Kangerlussuaq. Existing onshore facilities at Nuuk, Aasiaat, Sisimiut and Ilulissat will be utilised for material lay down, helicopter operating base, handling of some wastes, supply of fuel, water and materials and limited onshore accommodation for up to 12 project personnel.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION-1 xi The two MODUs are the Stena Forth, a modern drill ship designed to work in deep water and harsh conditions including broken ice, and the Stena Don, a dynamically-positioned semi-submersible drilling unit also designed for work in harsh environments. As both MODUs remain on station using thrusters there is no requirement for anchoring during normal operations.
Figure 8 Stena Forth Drillship and Stena Don Semi-Submersible Drilling Rig
Source: Photo courtesy of Stena
The planned drilling depths are between 3,000 and 4,000m below seabed. The drilling process uses drilling bits of different sizes to drill a series of holes from the seabed to the planned well depth. The Project plans to use only substances categorised as those which Pose Little Or No Risk (PLONOR) to the Marine Environment, or that are ranked in the least potentially harmful hazard band (Gold or E).
Rock cuttings from the drilling process will be circulated back to the drilling unit where the muds are separated for reuse and the treated cuttings are discharged to sea. Between 500 and 740m3 of cuttings are expected to be produced from each well. Once each section of the hole has been drilled, the drill string will be lifted out and casing will be lowered into the hole and cemented into place.
If drilling results indicate the presence of hydrocarbons, the wells may be tested. Testing is used to establish reservoir and fluid characteristics such as pressure and flow rate. If required, there will be a controlled flow of hydrocarbons back to the drill unit where they will be tested and flared, which would involve periodic flaring over approximately 5 days. The likelihood of flaring being undertaken is estimated at less than 6% per well. Any flaring will require permitting by the Greenland authorities. A monitoring programme and an oil recovery vessel with full dispersant capability will be on standby throughout the process in case incomplete combustion of the flare leads to ‘drop out’ of any unburnt oil onto the sea surface.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION-1 xii Following completion, the wells will be plugged and activities suspended. Each well will have an industry standard wellhead at the surface, with a protective cover to prevent damage to or from the wellhead due to snagging or collision with vessels, trawling equipment or icebergs. Once all wells have been drilled, the MODUs and support vessels will demobilise to their next job or home base and leave Greenland waters.
SUMMARY OF IMPACTS AND MITIGATION
The proposed exploration activity has the potential to create a variety of social impacts during the five months that it will be active. The sources identified in this assessment are typical of offshore exploration operations around the world.
As currently proposed, there are no unusual or unique sources of social impacts associated with the drilling programme. An overview of the main areas of impact, related operations and mitigation measures is shown in Table 3 below.
Overall, the drilling programme is predicted to have a slightly positive social impact for Greenland. Negative social impacts are predicted to be not significant or minor, and most of these impacts will be managed through standard operating procedures.
The main reasons that the drilling programme is predicted to have minimal negative social impacts are that
• Most of the drilling activities are located at significant distance (approximately 150 kilometres offshore) from existing Greenlandic communities; and
• The Programme is of a very short duration (five months).
For many of the same reasons, the Programme is not anticipated to have a large and positive social impact. Although some economic benefits are anticipated for Greenlandic enterprises, notably for Air Greenland, Royal Arctic Line and their suppliers, local employment effects will be muted because the ships and crews will be mobilised from outside Greenland. Other opportunities for business development are likely to be limited to purchases of fuel, water, food and some consumables to support the drilling operations.
Opportunities to enhance the positive social impacts of the exploration programme, for example through training, are limited by its short time frame and the specialist nature of the work. These limitations could change if the current exploration programme is successful and leads to long-term development of offshore hydrocarbon resources, which is outside the remit of this current assessment.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION-1 xiii Table 3 Summary of Main Impacts, Significance and Management Measures
Potential Source/significance of Management Measures Impact impact Local One direct recruit and • Consideration given to recruiting Greenlandic labour if employment support for existing current staffing arrangements change. Greenlandic jobs in • Recommend undertaking preliminary workforce transportation and assessment during this phase of work to understand services. existing workforce capacity and gaps to be addressed Skills and No formal knowledge • Recommend undertaking an assessment of Greenlandic training transfer activities are training programmes and institutions to develop currently being understanding of training capacity and where support planned. could be provided if the Project proceeds to development. Commercial The 500m exclusion • Location and movements of drill rigs and associated fishing. zone around drilling vessels will be communicated to fishing and other operations and vessel vessels in the area with a dedicated communication movements to and from programme; the exploration area. • Designated vessels will monitor the exclusion zones and ensure that any approaching vessels are guided away from the rigs; • The drill ships and support vessels will be illuminated as required under the Navigation Act • Safety protocols will be established for radio communication with vessels entering the safety and security zone around the drill ships. • Recommend that Project vessels that could come into contact with local boaters have access to a Greenlandic speaker to ensure effective communication. Whale Drilling activities could • Area within which whales could be affected is expected Hunting disrupt whale to be limited movements in the area • Further consultation will be undertaken to determine if the potential impact on whales can be monitored during the period of operations.
Greenlandic Purchases of goods and • Air Greenland and Royal Arctic Line are expected to be enterprises services from contracted to provide transportation, supply, storage Greenlandic enterprises and support services to the exploration operation. • Local purchases of accommodation, foodstuffs, water, fuel and other supplies will be prioritised. Tourism Exploration related • No exploration related activities to take place in tourist activities in tourist areas. areas. • Accommodation of onshore workers will provide business to tourism and hospitality enterprises Housing Living and • Drilling crews will be accommodated offshore with no accommodation impact on municipal housing. arrangements for • Onshore workers (up to 30 aircrew in Ilulissat and 12 drilling crews operations personnel in Aasiaat) will stay in hotels, with no added pressure on municipal housing. • Contingency accommodation arrangements for delays in transfer of offshore workers will be provided by the wareship moored in Aasiaat and existing accommodation facilities in Kangerlussuaq, preventing unplanned presence of large numbers of offshore workers in Greenlandic communities.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION-1 xiv Potential Source/significance of Management Measures Impact impact Port Supply boats entering • Early and ongoing consultation with local authorities facilities port at Sisimiut may and other key stakeholders. displace other shipping • A schedule of regular vessel movements to and from the port and drill ships will be provided to port administration • Recommend that the Project consider alternatives to Sisimiut port where appropriate Airport Requirement for • Early and ongoing consultation with local air traffic services increased capacity at authorities and other key stakeholders Aasiaat could deprive • A schedule of regular scheduled flights to and from key other towns of air airports in Kangerlussuaq, Ilulissat and drill ships will traffic controllers, be provided to air transport authorities needed to keep airports open and operating Emergency Limited local capacity • Oil spill response equipment will be stored in Greenland response for emergency to allow immediate mobilisation to respond to a structures response, potential that significant spill offshore west Greenland. services could be • National structures will be engaged in health and safety overwhelmed planning for the Project, including drills. Local Interaction with drilling • Contact between drilling crews and Greenlanders will culture and crews be minimised by maintaining crews at sea for the community duration of the drilling programme. • Crews will be transferred directly between drill ships and airport at Kangerlussuaq
The management measures outlined in the SIA have been developed from extensive industry experience with offshore exploration drilling, and are tried and tested. Furthermore, the management systems required to implement the measures are well understood and known to be effective. Every attempt has been made to ensure positive social impacts for Greenland from the exploration programme and there is a high level of confidence that potential negative social impacts can be successfully minimised through the implementation of the management measures outlined above.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION-1 xv 1 INTRODUCTION
1.1 BACKGROUND
This study constitutes a Social Impact Assessment (SIA) for an exploration drilling programme to be conducted within the Sigguk exclusive licence 2008/10, Disko West area off western Greenland, due to start in the summer of 2010 and finish before the end of the year (the Project). This SIA has been produced by Environmental Resources Management (ERM) on behalf of Capricorn Greenland Exploration-1 (Capricorn).
1.2 SCOPE
The SIA will encompass offshore drilling operations and associated activities such as onshore base facilities and supply, offshore support facilities, crew change logistics, onshore accommodation, oil spill response planning and project resourcing including local goods, services and labour.
The Project is expected to involve the drilling of multiple exploration wells during 2010, taking place over a period of approximately five months starting in July, based on approval by the Government of Greenland. Procurement, storage, loading and mobilisation activities outside of Greenlandic territory are outside of the scope of the SIA.
The offshore operations will take place over a fixed, relatively short period utilising modern drill units which are highly self-sufficient. The proposed well sites are located in excess of 150km off the west coast of Greenland and will be supported by a range of vessels, helicopters and fixed wing aircraft during the operations.
The key reference document for completion of the SIA is; “Guidelines for Social Impact Assessment for mining projects in Greenland”, Bureau of Minerals and Petroleum, Greenland, November 2009. Although conceived for mineral exploitation projects, this document; “…shall with relevant modifications serve as guidelines….for petroleum projects when required by the BMP”. The stated objectives of the SIA process are:
to engage all relevant stakeholders in consultations and public hearings;
to provide a detailed description and analysis of the social pre-project baseline situation as a basis for development planning, mitigation and future monitoring;
to provide an assessment based on collected baseline data to identify both positive and negative social impacts at both the local and national level;
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 1-1 to optimize positive impacts and mitigate negative impacts from the activities throughout the project lifetime; and
to develop a Benefit and Impact Plan for implementation of the Impact Benefit Agreement.
Where the content of Chapters is consistent between the EIA and SIA (for example the Project Description or Impact Assessment Methodology employed by ERM), the same Chapter has been utilised for both the EIA and SIA to avoid any conflict or confusion between the two reports.
The table below shows clearly the breakdown of Chapters for the SIA, where Chapters are common between the EIA and SIA and how the framework of this report responds to the guidance provided by the BMP.
Table 1.1 Contents of this Social Impact Assessment
Chapter Title Explanation - Non-Technical Summary (NTS) Summary of this SIA. - Glossary Explanation of acronyms and terms used in both the EIA and SIA. Common for both reports. 1 Introduction This Chapter 2 Policy, legal and administrative Summary of the framework of legislation framework and standards within the Project operates. Common for both reports. 3 Project Description Detailed description of the drilling project and support operations. Includes Analysis of Alternatives. Common for both reports. 4 Methodologies Explanation of the method for assessing impacts applied by ERM Common for both reports. 5 Socio-Economic Baseline Description Description of the prevailing baseline socio-economic conditions. 6 Social Assessment Assessment of the potential impacts to the socio-economic baseline from project- related activities. 7 Social Mitigation and Monitoring. References the potential impacts and identifies possible mitigation for maximising development opportunities and mitigating negative impacts. Covers several components: - Mitigation measures & framework Benefit and Impact Plan. - Monitoring Plan - Evaluation Plan
Annex Updated Terms of Reference for SIA
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 1-2 2 POLICY, REGULATORY AND ADMINISTRATIVE FRAMEWORK
2.1 APPLICABILITY TO THE EIA AND SIA
This section includes information on the relevant national and international legislative tools that apply to the exploration and extraction of hydrocarbons offshore Western Greenland. Due to the overlap in scope, legislation and policy is outlined that is relevant to both the Environmental and Social Impact Assessments and a single Chapter on the policy, regulatory and administrative framework has been therefore been prepared for inclusion in both the EIA and SIA reports. The applicability of the legislation to either the environmental or social assessment has been stated below where relevant.
2.2 NATIONAL LEGISLATIVE FRAMEWORK
Greenland has been under home-rule from Denmark since 1979, with more competencies being transferred to the local government in 2008. Since the creation of the Home Rule Government, Greenland has been steadily increasing its self-governance, particularly with regard to the exploitation of natural resources. In 2009, the country's status changed as 'self rule' was introduced and reference is now simply made to the 'Greenland Government' rather than to the 'Home Rule Government'.
Greenland and other Nordic countries and autonomous regions are members of the Nordic Council and the Nordic Council of Ministers which facilitates parliamentary cooperation between member states. The Nordic countries have close cooperation on nature and environmental issues. Co-operation on environmental issues operates using four year environmental action plans which set out the priorities of Nordic cooperation on environmental matters and formulates the political themes and areas of focus of this cooperation. The Environmental Action Programme 2009-2012 has recently been published (www.norden.org) and focuses on climate change, the use and discharge of hazardous chemicals, protection of marine ecosystems and protection and utilisation of biological diversity. Greenland was also one of the founders of the environmental Arctic Council cooperation in 1996.
The following national legislation and guidelines will apply to the proposed 2010 Sigguk exploration drilling program (the Project) which is the focus of the assessments:
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 2-1 Table 2.1 Summary of National Legislation Applicable to Offshore Exploration
Title Summary & Relevance Year Applicability Greenland Parliament Act The Minerals Resources Act defines 2010 EIA and SIA no. 7 of December 7, 2009, the roles and responsibilities of the on mineral resources and Government and Operators, mineral resource activities specifies amongst other things (The Mineral Resources Licensing details, environmental Act), together with requirements, data ownership and associated published health and safety. A licence must commentary (pending, due be granted before exploration for release in 2010). drilling can be conducted and the drilling program must conform to the scope of licence obtained. Guidelines for preparing an The EIA Guidelines were revised in 2009 EIA Environmental Impact 2009 by the BMP. These guidelines Assessment Report for provide details of the content to be Activities Related to included and other general Exploration, Development, requirements for the EIA. The Production and Transport of Guidelines specify the EIA process, Hydrocarbons Offshore data requirements, publication and Greenland of 1st June 2009 consultation procedures and (revised 2010 version information sources. pending), (The EIA Guidelines) Executive Order on health, The draft Executive Order sets out 2010 EIA and SIA safety and the environment the general obligations, in connection with offshore management systems and HSE hydrocarbon activities in reporting requirements for Greenland (HES Executive businesses, the procedures for Order) – (pending - formal approvals and licences, risk version expected March assessment and emergency 2010). procedures to be employed and the requirements for environmental protection. Guidelines for submitting Currently applicable but subject to 2006 EIA and SIA applications for approval of revision. The 2006 Guidelines set offshore installations for out the legal framework, hydrocarbon exploration in management system requirements, Greenland, with particular safety and emergency response, emphasis on HSE (Health, permitting, reporting and Safety and Environmental) documentation expectations. requirements (2006). Guidelines for Social Impact Although targeted at mining 2009 SIA Assessments for Mining exploitation (ie development) Projects in Greenland projects, these guidelines; “…shall (November 2009). with relevant modifications serve as guidelines for mineral exploration projects and for petroleum projects when required by the BMP”. These guidelines provide details on how the SIA process should be conducted, the content to be included and other general requirements for the SIA. Act No. 882 of 25 August Act by which the International 2008 EIA and SIA 2008 on Safety at Sea Convention on Safety of Life at Sea (SOLAS) 1974 and the International Convention for the Prevention of
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 2-2 Title Summary & Relevance Year Applicability Pollution from Ships, 1973, as modified by the Protocol of 1978 (MARPOL) are implemented into Greenlandic law The Greenland Working Act No. 295 of 4 June 1986 on the SIA Environment Act No. 1048 Working Environment in of 26 October 2005 (The Greenland was enacted with the Working Environment Act). amendments provided for in section 3 of Act No. 193 of 26 March 1991 and Act No. 321 of 18 May 2005. The Greenland Working Environment Act seeks to create a safe and healthy working environment and establishes rules governing the health, safety and wellbeing of workers. Consolidated Act No. 368 of The 1998 Mineral Resources Act 1998 EIA and SIA 18 June 1998 on Mineral aims to ensure the proper Resources in Greenland, as exploitation of mineral resources in amended. Greenland and sets out the procedures for licensing, scientific studies, responsibilities of the various organisations and regulatory provision.
In addition, the Government of Greenland, Bureau of Minerals and Petroleum (BMP) has produced Seismic Survey Standards for Offshore West Greenland (May 2003). Although these guidelines apply primarily to seismic surveys, some elements will also apply to exploration drilling and associated activities (for example vessels, HSE requirements, certain well testing activities). A revised edition of these standards is due for release in the first quarter of 2010.
2.3 INTERNATIONAL TREATIES AND CONVENTIONS
Although Greenland originally joined the European Communities with Denmark in 1973, it subsequently changed its status in 1985 to become a European overseas territory. In 1979, the Greenland Home Rule was created and since then Greenland has signed a number of international treaties, agreements and conventions with regard to the environment. This section summarises selected global and regional environmental conventions and protocols to which Greenland is a signatory (Table 2.2). The conventions summarised below are not specific to oil and gas exploration operations, although their subject matter is relevant to the potential impacts of such operations on the environment. A guide to whether each item is directly applicable to the EIA or SIA (or both) is provided in the final column.
Table 2.2 Summary of International Conventions and Agreements Applicable to Offshore Exploration in Date Order
Title Summary & Relevance Year Applicability
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 2-3 Title Summary & Relevance Year Applicability Convention on Provides framework for national and 1971 EIA Wetlands of international cooperation for the International conservation and use of wetlands In force Importance and their resources. through the especially as kingdom of Waterfowl Habitat Greenland has a number of Ramsar Denmark (Ramsar Convention) sites including several on the west coast between Kangerlussuaq and Aasiaat and on Disko Island. Any impacts to protected wetlands will therefore be encompassed by this Convention. However, this convention has only minor relevance to offshore exploration.
Convention for the Aims to promote cooperation among 1972 EIA and SIA Protection of the nations to protect heritage from World Cultural and around the world that is of such In force National Heritage outstanding universal value that its through the (UNESCO / World conservation is important for current kingdom of Heritage and future generations. Ilulissat Denmark Convention) Icefjord on the west coast of Greenland is a UNESCO World Heritage Site. It is located approximately 250km east of the Licence Area and has only minor relevance to offshore exploration.
Convention on Controls the trade in endangered 1973 EIA and SIA International Trade species, eg polar bear, walrus, in relation to in Endangered narwhal. hunted Species of Wild species. Fauna and Flora This Convention would apply in (CITES/ Washington cases where endangered species were Convention) being imported/ exported and is therefore unlikely to be directly applicable to the Project.
Convention on the Included as part of the United 1979 EIA and SIA Conservation of Nations Environment Programme in relation to Migratory Species of (UNEP). Aims to conserve terrestrial, hunted Wild Animals (CMS marine and avian migratory species species. or Bonn Convention) (those that regularly cross international boundaries, including international waters).
There are a number of migratory species present off the west coast of Greenland, as detailed in the Baseline Chapter of the EIA, and the protection of these species will fall under this Convention.
United Nations Comprehensive regime of law and 1982 EIA and SIA Convention on the order in the world's oceans and seas Law of the Sea establishing rules governing all uses (UNCLOS) of the oceans and their resources.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 2-4 Title Summary & Relevance Year Applicability This Convention establishes the rights of coastal states, including navigation rights and the exploration for and exploitation of resources, such as oil and gas.
The Convention for Guides international cooperation on 1992 EIA the Protection of the the protection of the marine Marine Environment environment of the North-East of the North-East Atlantic. It combined and updated Atlantic (OSPAR the 1972 Oslo Convention on Convention) dumping waste at sea and the 1974 Paris Convention on land-based sources of marine pollution. This convention has been signed by all EU Member States, as well as Iceland, Norway and Switzerland.
The North-East Atlantic is defined as extending Westward to the east coast of Greenland. Although it is not directly applicable to the Project area lying off the west coast of Greenland, OSPAR standards and requirements are being followed as good practice.
United Nations Under this convention, developed 1992 EIA and SIA Framework countries are required to take Convention on measures aimed at reducing Climate Change emissions of greenhouse gasses (in (UNFCCC) particular carbon dioxide), and to provide assistance to developing countries.
Climate Change data for Greenland are collated and reported by the Danish Meteorological Institute (DMI) along with figures for Denmark and the Faroe Islands.
Convention on the Aims to protect human health and 1992 EIA and SIA Control of Trans- the environment against the adverse boundary effects resulting from the generation, Movements of management, transboundary Hazardous Waste movements and disposal of and their Disposal hazardous and other wastes. (Basel Convention) Any hazardous wastes produced by the survey which require International shipment for disposal are likely to be encompassed by the legislation.
Convention on The Convention establishes three 1992 EIA and SIA Biological Diversity main goals: the conservation of (CBD) biological diversity, the sustainable use of its components, and the fair and equitable sharing of the benefits
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 2-5 Title Summary & Relevance Year Applicability from the use of genetic resources.
The Convention guides national strategies and policies and implements themes such as sustainable use and the precautionary principle. Its application to the Project will be through the implementation of National laws and regulations.
International Union The IUCN assesses the conservation Founded EIA for the Conservation status of animal and plant species 1948. Red List of Nature (IUCN) and assigns a threat level to each. started in 1963 Lists of threatened species status and updated (IUCN red lists) are published for annually. different countries. In force A number of species from the IUCN through the lists are likely to be found in the kingdom of survey area and are described more Denmark fully in the Baseline Chapter of the EIA.
IMO Conventions
Convention on the Aims to prevent pollution of the sea 1972 EIA Prevention of Marine from the dumping of waste and other Pollution by matter liable to create hazards, harm Dumping of Wastes living resources and marine life, and Other Matter damage amenities or to interfere with (The London other legitimate uses of the sea. The Convention) dumping of Annex I materials is prohibited, Annex II materials require a prior special permit and all other wastes require a prior general permit.
Any release of waste material to sea from the drilling or support vessels will be regulated under this Convention.
Convention for the Considers and seeks to prevent 1973 EIA Prevention of pollution by oil, chemicals, and Pollution from Ships, harmful substances in packaged as modified by the form, sewage and garbage from Protocol of 1978 ships. (MARPOL 73/78) The MARPOL requirements apply to the operation of vessels and regulate releases to air and water, including sewage, garbage, oil and gaseous emissions.
Convention on Oil Parties to the OPRC convention are 1990 EIA and SIA Pollution required to establish measures for Preparedness, dealing with pollution incidents, Response and Co- either nationally or in co-operation
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 2-6 Title Summary & Relevance Year Applicability operation (OPRC 90) with other countries. Ships are required to carry a shipboard oil pollution emergency plan to be developed by IMO.
Oil pollution emergency plans and procedures aligned to IMO requirements will be in place through a project specific Oil Spill Response Plan.
Convention on Civil Covers pollution damage caused in Amended in EIA and SIA Liability for Oil the exclusive economic zone (EEZ) or 1992 Pollution Damage equivalent area of a State Party. (CLC 1992) Large scale fuel oil releases from a drilling vessel are extremely unlikely given the quantities of fuel onboard. An unexpected release of oil during drilling would have a greater impact. Details of the appropriate mitigation measures are summarised in Chapter 7; Environmental Mitigation & Monitoring and detailed in the Project Oil Spill Response Plan.
Convention on the The International Convention on the 2001 EIA Control of Harmful Control of Harmful Anti-fouling Anti-fouling Systems Systems on Ships will prohibit the on Ships (Convention use of harmful organo-tins in anti- on anti-fouling fouling paints used on ships and will systems) establish a mechanism to prevent the potential future use of other harmful substances in anti-fouling systems.
Anti-fouling coatings on the vessel’s hulls will be controlled by this Convention in order to limit polluting effects in the marine environment. Convention for the Aim to prevent, minimise and 2004 EIA Control and ultimately eliminate the transfer of Management of harmful aquatic organisms and Ships' Ballast Water pathogens through the control and and Sediments management of ballast water and (Convention on sediments. Ballast Water) The drilling vessels are not used to transport large loads and the exchange of ballast water during the drilling program will therefore be limited. Management of ballast water exchange will be undertaken in compliance with MARPOL.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 2-7
2.3.1 Transboundary Agreements
Greenland has signed up to a number of agreements that provide guidance on the protection of marine animals that have distributions across international boundaries (Table 2.3). In addition, Greenland is a member of several international organisations that advise on the sustainable use of Greenland’s marine resources such as the North East Atlantic Fishery Commission (NEAFC), North Atlantic Salmon Conservation Organisation (NASCO), and International Whaling Commission (IWC).
Table 2.3 Summary of Transboundary Agreements Applicable to Offshore Exploration
Name Summary Countries/Areas Involved Applicability The Makes decisions on whaling quotas International agreement EIA and SIA International and guidelines for best practices for among over 80 member Whaling whaling and for the protection of nations Commission whales. (IWC) For background information only. Does not apply to exploration drilling.
Joint Issues specific management Greenland and Canada EIA and SIA Commission recommendations in terms of hunting on levels and protection of narwhal and Conservation beluga. and Management Provides information on the status of Narwhal and vulnerability of these species, and Beluga which are likely to be present in the (JCNB) Project area.
North Issues specific management Greenland, Iceland, EIA and SIA Atlantic recommendations in terms of hunting Norway, the Faeroe Marine levels and protection. Islands Mammal Commission As above. Does not directly apply to (NAMMCO) exploration drilling, although it will affect the sensitivity of these species to additional impacts.
Northwest Agreement on fisheries covering the International agreement SIA only Atlantic northwest Atlantic outside the 200 among 14 countries Fisheries nautical mile zone. Organisation (NAFO) For background information on fisheries only. Unlikely to directly apply to exploration drilling. International Advises on fishing in waters between Applies to North Atlantic SIA only Council for Greenland and Iceland. countries such as the Denmark (including Exploration For background information on Greenland and the Faroe of the Sea fisheries only. Islands). (ICES) The Protects polar bears in the International agreement EIA and SIA
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 2-8 Name Summary Countries/Areas Involved Applicability Agreement circumpolar countries. between the States of the on Arctic region. Conservation There should be no direct interaction of Polar between the exploration drilling Bears program and polar bear populations. Circumpolar Protects eiders in the circumpolar Circumpolar agreement EIA and SIA Eider countries. Conservation Strategy Guides efforts to conserve, protect, and restore eider populations.
Greenland is a member of the Arctic Council which was established in 1996. It aims to provide a means for promoting cooperation, coordination and interaction among the Arctic States; Canada, Denmark, Finland, Iceland, Norway, Sweden, Russia, and the United States. There are also six permanent indigenous participants including the Inuit Circumpolar Council which represents Inuit from Greenland, Canada, Alaska and Chukotka. The Arctic Environmental Protection Strategy, which began in 1991 and was continued as part of the activities of the Arctic Council, developed the Arctic Monitoring and Assessment Programme (AMAP) to provide,
“reliable and sufficient information on the status of, and threats to, the Arctic environment, and provide scientific advice on actions to be taken in order to support Arctic governments in their efforts to take remedial and preventive actions relating to contaminants”.
AMAP has produced a document on the state of oil and gas activities in the Arctic and their effects and potential effects entitled ‘Arctic Oil and Gas 2007’. Whilst this document is not guidance for the oil and gas industry, it does provide useful information on the environmental, social and economic and health impacts of current oil and gas activities in the Arctic. The document also provides recommendations on how oil and gas activities should be managed in order to minimise impacts to the environment.
The Arctic council has produced Arctic Offshore Oil and Gas Guidelines (2009) that suggest operational steps to follow when planning for Arctic offshore oil and gas activities.
2.4 INTERNATIONAL GUIDELINES AND STANDARDS FOR THE EXPLORATION AND PRODUCTION INDUSTRY
This section provides an overview of the guidelines and standards that are produced within the Exploration and Production (E&P) sector. Capricorn is committed to ensuring that work is completed in accordance with international good industry practices in line with the standards and guidance shown in Table 2.4.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 2-9 The project will also be conducted within the framework of internal standards and commitments of Capricorn, the drilling management contractor Senergy and the drill rig operators, Stena Drilling. The environmental management of the project will follow the procedures and requirements as specified in Cairn Energy’s Corporate Responsibility Management System (CRMS) which incorporates health, safety and environment (HSE), corporate social responsibility (CSR) and security. The operations will also have to maintain compliance with Cairn Energy’s corporate responsibility (CR) commitments and procedures, comprising:
Group Health Safety and Environment (HSE) Policy; Group Corporate Social Responsibility (CSR) Policy; Group Security Policy; and Group Corporate Responsibility (CR) Guiding Principles.
These policies and management procedures will be bridged to the contractors own management system and implemented through a bespoke Project Plan and Emergency Response Plan, as defined in more detail in Chapter 7 of the EIA.
Table 2.4 Applicable Industry Standards and Guidance Documents
Guideline Date Standard Summary E&P Forum: Exploration 1993 Guidance is provided on area-specific waste and Production (E&P) management planning and methods for the handling Waste Management and treatment of primarily drilling and production Guidelines related waste streams.
Environmental Guidelines 1995 Useful guidance is provided regarding the planning for Exploration Operations and execution of seismic and drilling operations in Near-Shore and including liaison with government authorities and Sensitive Areas (UK fishing organisations, preparation of contingency Offshore Operators plans and waste management. Association Ltd (UKOOA) Guidelines for Fisheries 2008 Although most relevant to offshore seismic and Liaison, Issue 5 survey work, these Guidelines are also applicable to support vessels. Where commercial fishing activities may be impacted, liaison with fishing organisations is recommended. The latest guidelines include a new detailed and expanded section for assessing fishing claims, as well as the code of practice for interaction with inshore static gear fisheries.
E&P Forum / UNEP: 1997 This publication provides an overview of the Environmental environmental issues and technical and management Management in Oil and approaches to achieving high environmental Gas exploration and performance in oil and gas exploration and Production production.
Arctic Council Protection 2009 These Guidelines are intended to be of use at all of the Arctic Marine stages during planning, exploration and development Environment Working of offshore oil and gas activities and aim to protect Group: Arctic Offshore Oil arctic marine environment. & Gas Guidelines Source: http://www.bmp.gl/
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 2-10 Guideline Date Standard Summary Arctic Council Protection 2004 These guidelines have been provided for vessels of the Arctic Marine supplying oil to Arctic communities, industries, and Environment Guidelines other vessels working in the Arctic. The aim is to for Transfer of prevent cargo/fuel oil spillage, and the resulting Refined Oil and Oil environmental damage, during transfer between any Products in Arctic Waters two vessels or between a vessel and shore facility. (TROOP) Arctic Environment 1997 These guidelines summarise the key Tasks and Protection Strategy; Objectives of an arctic environment EIA, detail the Guidelines for particular considerations at each stage of the process Environmental and provide the specific factors of working in an arctic Impact Assessment (EIA) environment that need to be accounted for in the EIA. in the Arctic. OGP Guidelines: Oil & gas 2002 These guidelines were written for operations in UK exploration & production waters, but the principles, standards and operating in arctic offshore regions: procedures are applicable in other parts of the world Guidelines for and should be referred to where this would provide environmental protection best practice guidance.
OGP Key Questions in 2002 This guidance document discusses the types of social Managing Social Issues in issues and questions that should be considered at each Oil and Gas Projects stage of the Project’s life-cycle.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 2-11 3 PROJECT DESCRIPTION
3.1 PROJECT OVERVIEW
Capricorn Greenland Exploration 1 (“Capricorn”), a subsidiary of Cairn Energy (“Cairn”), is planning to undertake an exploration drilling programme in the Sigguk exclusive licence 2008/10 (Sigguk Block), Disko West Area offshore West Greenland in the summer of 2010 (see Figure 3.1). This follows a 2D Seismic programme undertaken in 2008 and further geophysical survey and environmental monitoring programmes completed in 2009.
The Disko West Area includes the north-eastern part of the Davis Strait and the south-eastern part of Baffin Bay, with Disko Island as the most prominent landscape on the Greenland coast. This area is a part of the Arctic Region, known for harsh weather conditions and drift ice.
The Sigguk Block is located over 100 km from the closest point of the west Greenland coast in water depths ranging from approximately 250 to 1,800 m. The block, in which Capricorn holds a 77.5% working interest, comprises the northern part of Capricorn’s Disko West License, which also includes a 77.5% working interest in the Eqqua Block (Block 3) located immediately to the south of Sigguk. Cairn Energy, through its exploration subsidiary Capricorn, has secured a working interest in a total of eight exploration licences off the south and west coasts of Greenland, although the current drilling programme and the remit of this EIA is concerned solely with the planned exploration programme in Block 1, Sigguk. The drilling programme is planned to take place between June and October 2010, with a two month contingency period built into the schedule over November and December for relief well drilling if required. If the operations proceed according to plan, the first drill unit will mobilise to Greenlandic waters in June and will demobilise following completion of all operations before the end of October the same year.
The drilling programme itself will employ a range of cutting-edge technology and operating standards to meet the challenges of drilling in the offshore arctic environment. Two mobile offshore drill units (MODUs) will be employed in order to provide a high degree of operational and safety contingency. A range of vessels will be employed to provide support and emergency cover for the operations, including supply boats, support vessels and ice breakers. Ongoing consultation with the public and stakeholders will also be carried out to ensure the local population remains fully informed and has the opportunity to engage during the planning process.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 3-1 Figure 3.1 Project Location
Hydrocarbon Licence Blocks Offshore Greenland (BMP, 2010)
Block 1 “Sigguk” shown shaded in blue (BMP, 2010)
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 3-2 3.2 PROPOSED WELL LOCATIONS
The programme will involve the drilling of four wells in the Sigguk Block in the Disko West Area, with the possibility of drilling up to a further two wells in the same block within the existing project schedule should initial drilling go faster than expected and if it proves to be operationally worthwhile. The locations for the first two wells have been confirmed, with the remaining wells to be drilled in any of four currently identified locations.
Table 3.1 Proposed Well Site Options
No. Location Name Coordinates Estimated Water X Y Depth (m) 1 Alpha (confirmed well site) 444436 7801685 -319 (+/-2m) 3 T8 (confirmed well site) 404788 7801397 -490 (+/-2m) 2 C3/T3 (option) 418861 7880420 -380 (+/-10m) 4 T4 (option) 395253 7894307 -485 (+/-10m) 5 T16 (option) 422105 7837428 -631 (+/-10m) 6 T23 (option) 423080 7809145 -431.7 (+/-2m)
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 3-3 T4 T3C3
T16
T23 T8 Alpha
Ilulissat Qerqertarsuaq
KEY: CLIENT: SIZE: TITLE: Capricorn Greenland A4 3 Well Locations Exploration-1 Figure .2 Location of Proposed Well Sites Licence Area ERM Eaton House Options within the Sigguk Block Wallbrook Court North Hinksey Lane Oxford, OX2 0QS DATE: 22/02/2010 CHECKED: RB PROJECT: 0108885 Telephone: 01865 384800 . Facsimile: 01865 204982 DRAWN: CJ APPROVED: JP As scale bar 0 50 SOURCE: Capricorn Greenland Exploration-1 DRAWING: REV: PROJECTION: WGS 1984 UTM Zone 21N well_site_options.mxd 0 Kilometres File: 0108885GreenlandWestGIS_CJ_JP\Outputs\22Feb10\PD\well_site_options.mxd © ERM This print is confidential and is supplied on the understanding that it will be used only as a record to identify or inspect parts, concepts or designs and that it is not disclosed to other persons or to be used for construction purposes without permission. 3.3 PROPOSED PROJECT SCHEDULE
The proposed drilling programme will utilise a two rig strategy, whereby two separate MODUs are utilised to drill the proposed wells during the overall project window. The first drill unit will mobilise and begin operations ahead of the second unit, with both units expected to be operating in parallel within the project area for around three months.
The first MODU will be a drillship (the “Stena Forth”), which is planned to mobilise to the region in June 2010 to commence drilling operations. The second MODU will be a semi-submersible drill rig (the “Stena Don”), which will be mobilised to the region to commence drilling in July 2010. Drilling is anticipated to be completed by the end of October 2010, with a 50 day relief well window as a contingency. A broad outline of the proposed schedule is presented in Figure 3.3 below.
Figure 3.3 Outline Drilling Schedule
2010 May June July August Sept Oct Nov Dec
Mobilisation
Drilling (4 wells)
Relief Well
3.4 PROPOSED DRILL UNITS
3.4.1 Drillship (Stena Forth)
The drillship to be utilised is the Stena Forth which is designed to work in broken ice and is illustrated in Figure 3.4 below. The drillship is a maritime vessel which includes two drilling well centres and the latest station-keeping equipment. The vessel is capable of operating in deep water. The Stena Forth will mobilise from its previous operating location in the Gulf of Mexico to either Invergordon on the north east coast of Scotland or St Johns on the east coast of Newfoundland where it will be resupplied and loaded with materials for the drilling campaign, before mobilising under its own power to Greenlandic waters.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 3-5 Figure 3.4 Stena Forth Drillship
Photo courtesy of Stena
The Stena Forth is expected to mobilise early June 2010 and will drill two wells to completion and will demobilise at the end of October 2010, depending on results of the wells drilled and the time available (an) additional well(s) may be drilled subject them being complete by the end of October. Selected technical specifications for the Stena Forth are presented in Table 3.2 below.
Table 3.2 Stena Forth Specifications
Rig type Dynamically Positioned Drillship Unit flag Bermudan Year of construction 2008 Unit design/shape Double Hull Drillship Type of Positioning system (anchor/dp/combined) Dynamically Positioned Vessel Class Weight (light ship) 38,948 mt Fuel consumption, drilling 40 t/day
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 3-6 Accommodation for maximum no. of personnel 180 (10 single & 85 double berth cabins) persons Length overall 228 m Breadth overall 42 m Storage Capacities Fuel 6,500 m3 Drilling water 5,000 m3 Potable water 2,000 m3 Mud processing tank 90 m3 Active liquid mud 746 m3 Reserve liquid mud 2,400 m3 Bulk bentonite/barite 420 m3 Bulk cement 420 m3 Sack storage 7,000 sacks Propulsion/Thrusters Thrusters\Type (azimuth/in line) Azimuth thrusters fixed, AQM UUC 455 L-Drive (Rolls Royce Aquamaster) Quantity No. 6 Thruster Power 5,500 kW Operational Capabilities Max. designed water depth capability 3,650 m Outfitted max/min water depth capability 2,285 m Drilling depth capability 10,700 m Transit speed towed (Estimated) n/a Transit speed self propelled (Estimated) 12 knots Mooring System 2 anchor winches Helicopter Landing Deck Location Forward end above bow Dimensions 25.9 m x 25.9 m Load capacity 12.8 mt Heli-refueling system type Yes/Helifuel A.S Fuel storage capacity 600 US gallons Power Supply Systems Diesel Engine Plant 6 Make/Type Wartsilla/16V32 Maximum continuous power 7,430 kW AC-Generator 6 Continuous power (Each) 7,430 kW Motors Thrusters Motors 6 Drilling Motors 16 Water Distillation 3 Capacity 30/90 m3 /day Boilers 2 Capacity 12,000 kg/h Living Quarters Total persons accommodated No. 180 Quantity of single bed rooms No. 10 Quantity of two bed rooms No. 85 Sewage Treatment System type 2 (biological vacuum combined – IMO)
3.4.2 Semi-Submersible (Stena Don)
The second proposed drill unit is the Stena Don, a dynamically-positioned semi-submersible MODU (Mobile Offshore Drilling Unit). The Stena Don is
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 3-7 expected to mobilise from Invergordon on the north east coast of Scotland before starting its self propelled transit to Greenlandic.
A semi-submersible is a floating vessel that is supported primarily on large pontoon-like structures submerged below the sea surface. This design has the advantage of minimising loading from waves and wind. Semi-submersibles can operate in a wide range of water depths, including deep water. Some rigs use anchors tethered by strong chains and wire cables, which are computer controlled to maintain station keeping. However the Stena Don uses a dynamic positioning system of thrusters for station keeping rather than using moorings, reducing the need for disturbance of the seabed by the placing of anchors. Detailed specifications are provided in Table 3.3.
Figure 3.5 Stena Don MODU
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 3-8 Table 3.3 Stena Don MODU Specifications
Rig type Semisubmersible Unit flag Marshall Island Year of construction 2001 Unit design/shape Twin Pontoon, 6 Columns (4 large, 2 small) CS30 Type of Positioning system Dynamic Positioned SDP 21/SDP11, Kongsberg, (anchor/dp/combined) Class 3 Weight (light ship) 17315 - 17,525t Fuel consumption, drilling t/day 40t/day Accommodation for maximum no. of 120 + 8 Offices personnel persons Length overall 95.5m Breadth overall 69m incl. helideck Storage Capacities Fuel 2611.2 m3 Drilling water 903.5 m3 Potable water 519.2 m3 Mud processing tank 396.6 m3 Active liquid mud 567.0 m3 Reserve liquid mud 396.0 m3 Bulk bentonite/barite 236.5 m3 (4 tanks) Bulk cement 236.5 m3 (4 tanks) Sack storage 2000 sacks Propulsion/Thrusters Thrusters\Type (azimuth/in line) Kamewa Aqua Master Quantity No. 6 Thruster Power 3.200 kW Operational Capabilities Max. designed water depth capability 500 m Outfitted max/min water depth capability 130 m – 500 m Drilling depth capability 27800 ft Transit speed towed (Estimated) 8 knots Transit speed self propelled (Estimated) 6 knots Mooring system N/A - Emergency Anchors only (2) Helicopter Landing Deck Location Port Fwd Corner Dimensions 22.80 m Load capacity Mt 15t Heli-refueling system type Carter Mod. 64200, delivered by Helifuel A/S Fuel storage capacity M3 2 x transportable tanks 720 USG each Power Supply Systems Diesel Engine Plant 9 Make/Type Wartsila type 16v25-3500kW NOx upgraded Maximum continuous power: 3.5 MW AC-Generator 9 Continuous power (Each) kw: 3500 kw Motors Thrusters Motors 6 x 3300 kW Drilling Motors 2 x 740 kW Water Distillation 2 Capacity M3/day: 3 x 30 m3/day Boilers 2 Capacity MW: 2.7 MW Living Quarters Total persons accommodated No. 120 persons Quantity of single bed rooms No. 2 Quantity of two bed rooms No. 50 Sewage Treatment
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 3-9 System type Hamworthy, Vacuum
Since the Stena Don is a dynamically-positioned rig, there is not a requirement for a dedicated anchor handling vessels to moor the rig. Operations support will be provided by a support vessel depending on the available SAR (Search and Rescue) cover on the voyage route.
3.5 RESERVOIR RESOURCES
In the Disko West area offshore western Greenland, a number of leads at both Cretaceous and Tertiary levels have been identified. Additional 2D seismic data was acquired in 2008 to mature the leads to prospect status. The main prospects are identified in the Cretaceous section in Block 1 (Sigguk). A series of large Tertiary fans of probable Miocene age have been identified, and are located in both Blocks 1 and 3. The interpreted Stratigraphy and petroleum systems of the West Greenland Shelf, showing the previous six wells drilled offshore Greenland (in blue) and penetration by onshore wells (in red) is provided in Figure 3.6 below.
3.5.1 Extract of Geological Overview from Geological Survey of Denmark and Greenland (GEUS): www.GEUS.dk.
The margin of West Greenland was formed by extensional opening of the Labrador Sea in late Mesozoic – early Cenozoic time. A complex of linked rift basins stretch from the Labrador Sea to northern Baffin Bay (1). Sedimentary basins, containing up to 8–10 km of sediments, are found primarily between 63°N and 68°N. The oldest sediments in the basins may be of Early Cretaceous age (2), and seismic data indicates at least two rifting events, the first in the Early Cretaceous and the second in the Campanian–Paleocene which was probably associated with the start of sea-floor spreading in the Labrador Sea.
Sea-floor spreading in the Labrador Sea was transferred to Baffin Bay to the north along a complex strike-slip fault system, the Ungava Fault Zone. Initial opening of the Labrador Sea was accompanied by voluminous volcanism, probably associated with the impact of the Iceland plume. The largest area of volcanic rocks is found north of 68°N and it extends onshore into the Nuussuaq Basin. Other areas of volcanism are found farther south on the Nukik Platform and on the Hecla and Maniitsoq Rises.
Thermal subsidence of the basin continued after cessation of sea-floor spreading in the Labrador Sea, probably in Middle or Late Eocene time, but
(1) 1 Chalmers, J.A. & Laursen, K.H. 1995. Labrador Sea: the extent of continental crust and the timing of the start of sea- floor spreading. Marine and Petroleum Geology, 12, 205–217
(2) 2 Chalmers, J.A., Dahl-Jensen, T., Bate, K.J. & Whittaker, R.C. 1995. Geology and petroleum prospectivity of the region offshore southern West Greenland - a summary. Rapport Grønlands Geologiske Undersøgelse, 165, 13–21.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 3-10 there appears to have been an episode of uplift of the basin margin in the Neogene. The northeastern part of the Sisimiut Basin is especially affected by this uplift, and the onshore Nuussuaq Basin probably owes its present-day exposure to it.
Figure 3.6 Stratigraphy and Petroleum Systems Elements Showing Previous Wells
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 3-11 3.6 RIG MOBILISATION
The drillship will be mobilised in June 2010. Icebreaker vessels will be utilised to permit entry of the drillship onto location offshore west Greenland to drill two wells to completion.
The semisubmersible rig will be mobilised at the end of June and is expected to start drilling the first of two wells by the first week in July. All four of the wells to be drilled are expected to be completed by the third week in October.
3.7 DRILLING AND WELL CONSTRUCTION
It is planned to drill four wells to approximately 3,000 – 4,000 m based on either a Tertiary or a Cretaceous target lead (with the possibility of a further two wells in the same area and based on the same models should time allow). Figure 3.7 illustrates the likely casing configuration and depth of both Tertiary and Cretaceous Wells.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 3-12 Figure 3.7 Casing Configuration for Tertiary and Cretaceous Well Designs
Casing Operational Summary Casing Operational Summary
Riser. Riser.
30" Conductor shoe @ +/- 433m MDBRT 30" Conductor shoe @ +/- 545m MDBRT
20" casing @ +/- 735m MDBRT. 20" casing @ +/- 725m MDBRT.
TOC 870 m MDBRT
TOC 13⅜" @ 1300 m MDBRT
TOC 9⅝" @ 1650 m MDBRT
13⅜" casing @ +/- 1800m MDBRT.
13⅜" casing @ +/- 1370m MDBRT.
TOL @ 1830 m MDBRT
9⅝" casing @ +/- 1980m MDBRT.
TOL @ 2950 m MDBRT
9⅝" casing @ +/- 3100m MDBRT.
7" Liner @ +/- 4273m MDBRT. 7" Liner @ +/- 3023m MDBRT. 8-1/2" Well TD @ 4275m MD / TVD BRT 8-1/2" Well TD @ 3025m MD / TVD BRT
Cretaceous Tertiary
The drilling process uses drilling bits of different sizes to drill a series of holes as illustrated above from the seabed to the planned well depth. Water based muds will be used as drilling fluids which will be circulated inside of the drill string to the bit. Drilling fluids have several functions including (1):
removing cuttings from the hole as they are produced; providing a barrier for well control; transmission of power to the drill bit; cool and lubricate the drill bit; and maintain formation stability.
(1) OGP (2009) Drilling Fluids and Health Risk Management, Report Number 396.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 3-13 Oil and gas is created at great pressure underground. When the wellbore encounters the reservoir the drilling fluid in the wellbore holds back the oil and gas until the fields has been evaluated and a decision been taken as to whether to convert the well for production. The specification of this fluid is one example of how the operation can implement measures to minimise potential impacts on the environment. During the Disko west drilling programme only water based drilling fluids (sometimes referred to as drilling mud) will be utilised.
Water based muds are primarily made up of water (approximately 75%) (freshwater, seawater or brine). In order for the muds to balance the reservoir pressure and for cuttings to be able to be lifted out of the hole effectively, inert chemicals are added such as barite and clays/polymers to achieve the appropriate viscosity. Studies have shown that these water based drilling fluids are essentially non-toxic and that the effect on marine life is slight to none when drill cuttings are discharged overboard. The vast majority of water based muds discharged are classified under Annex 6 of the OSPAR convention (OSPAR, 1999) as substances, which are considered to Pose Little Or No Risk to the environment (PLONOR chemicals).
The drilling muds will be pumped down the drill string and out through the bit. The cuttings will then be circulated up the annulus (the void between the drill string and the casing) where they will then be removed for treatment and reuse or disposal (see Section 3.8). The total volumes of mud and cuttings expected to be generated by each section of the two well designs (Tertiary and Cretaceous) is shown in Table 3.4 below.
Table 3.4 Estimated Quantities of Muds and Cuttings Generated by Drilling
Section Hole Size Volume of Cuttings (m3) Quantity of Mud (Metric Ton - MT) Tertiary Well Hole 1 36” 109.07 247.00 2 26” 123.37 284.00 3 17.5” 150.08 3003.00 4 12.25” 69.64 2629.50 5 8.5” 49.13 3118.50 TOTAL 501.29 9,282.00 Cretaceous Well Hole 1 36” 94.60 233.50 2 26” 213.68 468.50 3 17.5” 247.86 4015.50 4 12.25” 110.66 3786.00 5 8.5” 71.23 4284.00 TOTAL 738.02 12,787.50
Once each section of the hole has been drilled, the drill string will be lifted out and the casing will be lowered into the hole and cemented into place. The cement will be mixed with small quantities of chemicals (see Section 3.10) on the MODU prior to being pumped down the hole and forced into the annulus.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 3-14 Table 3.5 below presents the estimated volumes of cement required for the proposed wells.
Table 3.5 Estimated Cement Required for Tertiary and Cretaceous Wells Casing
Hole Size Length (m) Quantity of Cement (Metric Ton - MT) Tertiary Well Hole 36” 472 – 555 117 26” 555 – 735 194 17.5” 735 – 1380 87 12.25” 1380 – 1990 59 8.5” 1990 – 3023 37 Total 495 Cretaceous Well Hole 36” 361 – 433 102 26” 433 – 745 284 17.5” 745 – 1810 87 12.25” 1810 – 2780 87 8.5” 2780 – 4275 51 Total 611
3.8 MUD AND CUTTINGS DISPOSAL
Disposal of muds and cuttings will be made to the seabed during the initial sections of the drilling when an open hole is accessed on the seabed around the well bore. The quantities of mud and cuttings released and dispersion models for mud and cuttings discharge are detailed within the Impact Assessment section of the EIA.
Subsequent sections will be cased below the surface and drilled using a riser whilst circulating the drilling mud as described above to remove the cuttings from downhole. A blow-out preventer (BOP) will also be fitted on the seabed at the base of the riser. The riser allows the muds and cuttings from subsequent well sections to be returned to the drill unit where they will be separated and passed through the treatment system. The cuttings will be cleaned of the drilling fluid and discharged overboard to the sea via a caisson (discharge pipe), and the muds will be retained and recycled. The onboard mud treatment facilities on the Stena Forth drill ship comprise:
5 Thule Twin Deck Shale Shakers; a mud cleaner desilter; and a mud centrifuge.
Onboard mud treatment facilities on the Stena Don semi-submersible comprise four Shale Shakers.
The discharge route for the treated cuttings is shown in Table 5.6 below. A simplified schematic for both Tertiary and Cretaceous wells to demonstrate the different well diameters and quantities of cuttings generated is provided
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 3-15 in Figure 5.8. At the end of the drilling programme, the water based drilling muds will be discharged to sea.
Table 3.6 Discharge Location for Cleaned Cuttings
Section Hole Size Discharge Method Tertiary Well Hole 1 36” Seabed 2 26” Seabed 3 17.5” Surface 4 12.25” Surface 5 8.5” Surface TOTAL Cretaceous Well Hole 1 36” Seabed 2 26” Seabed 3 17.5” Surface 4 12.25” Surface 5 8.5” Surface TOTAL
Water based muds will be used throughout the drilling campaign and there will therefore be no oil on cuttings from the drilling materials. Any oil on cuttings from the geological formation encountered during drilling will be separated on the drilling unit using the treatment systems described above. Where there is the potential for residual oil on the cuttings following treatment, the discharge will be visually monitored and controlled as per Capricorn’s policy on discharge of cuttings to sea; “When drilling with Water Based Mud (WBM) drill cuttings shall be monitored, handling and treated to assure no hydrocarbon contaminated cutting are discharged overside that will result in an oil sheen on the sea surface”.
Figure 3.8 Well Schematic for Calculating Cuttings from Tertiary and Cretaceous Wells
Tertiary Cretaceous
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 3-16 3.9 WELL CLEANING, TESTING AND COMPLETION
If drilling results indicate the presence of hydrocarbons, the wells may subsequently be tested. Well testing represents a major source of data to engineers and geoscientists investigating the viability of the reservoir. Testing involves a range of techniques for establishing the characteristics of the reservoir and fluid such as pressure, temperature and flow rate.
Testing equipment (the test string) will be run down the hole and initial reservoir data acquired. Where required, there will be a controlled flow of hydrocarbons back to the drill unit where they will be tested and subsequently flared. The likelihood of flaring being undertaken is estimated by the project team at less than 6% per well.
The exact volume of hydrocarbons to be flared during any testing period will not be known until the well is tested. However, estimated figures provide an oil flow rate of 15,000 bpd, or if gas is encountered, 40 mmscfd (million standard cubic feet per day). Each zone of interest is likely to be tested, with an estimated 48 hours of total flow time per well spread over a period of up to 5 days. Total flared volume from each well would therefore be expected to be around 30,000 barrels (4,770m3) of oil, or 80mmscfd of gas.
Inefficient combustion of oil can lead to black smoke emissions and un- combusted hydrocarbons falling onto the sea surface (known as “drop out” or “carry over”). The well test flare would be continually monitored for signs of incomplete combustion and compressed air used to aid the combustion process. An oil recovery vessel with full dispersant capability will be on stand by during well test flaring.
Before any flaring can be carried out, a flaring consent must be applied for and issued by the BMP.
It is also planned to acquire a Vertical Seismic Profile (VSP) at each well location. Acquisition of VSP data is used to provide additional seismic information and tie together the well data and the seismic data. Various types of VSP exist, however in the majority of cases a seismic source is generated at the surface using an airgun, with the receiver array positioned in the well. The duration of a VSP is far shorter than a standard seismic survey, normally lasting less than a day as opposed to several months.
Following completion, the wells will be plugged and suspended in accordance with the BMP Exploratory Drilling and Oil & Gas UK Guidelines. Wells will be suspended with full isolation across all hydrocarbon and abnormally pressurized zones. There will be two 150 m tested cement plugs set to completely isolate the well from the surface. These cement plugs will be further backed up with a mechanical barrier set deep in the well above the hydrocarbon zone. The top of the top cement plug will be a minimum of 150 m below the seabed.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 3-17 Each well with have an industry standard wellhead. As it is planned to leave the wellheads in place, well head protection will be installed to prevent damage to or from the wellhead due to snagging or collision. The wellhead protection will consist of a metal structure covered in grating to prevent snagging and weighing approximately 7 tonnes. A diagram of the wellhead protection device is shown in Figure 3.9 below.
Figure 3.9 Wellhead Protection Diagram (dimensions in millimetres)
Structure shown without grating
3.10 CHEMICALS
Under the OSPAR Convention for the Protection of the Marine Environment of the North-East Atlantic, the Harmonised Offshore Chemical Notification Format (HOCNF) applies to all chemicals used in connection with offshore exploration and production activities in the OSPAR maritime area. Under the system, offshore chemicals are required to be ranked according to their calculated Hazard Quotients (HQ - ratio of Predicted Environmental Concentration (PEC) to Predicted No Effect Concentration (PNEC).
The OSPAR requirements are implemented in each offshore area according to an established set of criteria for testing and reporting chemical properties. OSPAR obliges authorities to use the CHARM ‘hazard assessment’ module as the primary tool for ranking. Inorganic chemicals and organic Chemicals with functions for which the CHARM model has no algorithms are ranked using the Offshore Chemical Notification Scheme (OCNS) hazard groups (see below). The drilling programme will be carried out in full accordance with the chemical classifications and notification limits of the scheme, with the calculated Hazard Quotients (HQ) for planned chemical use presented in Table 3.8 below. It is planned to use chemicals which have been assessed and provided with an HQ value under both the UK Offshore Chemical Notification Scheme (OCNS) and according to the Danish chemical register (PROBAS). This provides an additional level of verification and limits the range of chemicals available to the drilling campaign to those assessed and registered under the UK and Danish systems.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 3-18 The OCNS manages chemical use and discharge by the UK and Netherlands offshore petroleum industries. This system is regulated in the UK by the Department of Energy and Climate Change (DECC) using scientific and environmental advice from Cefas (Centre for Environment, Fisheries & Aquaculture Science). The OCNS complies fully with the requirements of HOCNF under the OSPAR Convention.
Table 3.7 HOCNF Hazard Quotient Bands
Hazard Quotient More Hazardous Min Value Max Value OCNS Category >1 <1 Gold >/=1 <30 Silver >/=30 <100 White >/=100 <300 Blue >/=300 <1000 Orange >/=1000 Purple
The intention is to utilise only the least hazardous category chemicals (Gold, or previously known as ‘E’). An example of the types and quantities of principal chemicals that may be used during the drilling campaign is given below for one well. A full chemical list (including contingency chemicals) is provided in Annex D.
The properties of substances on the OSPAR List of Substances Which Pose Little Or No Risk to the Marine Environment (PLONOR) are sufficiently well known that OSPAR do not require them to be tested. This includes inert substances and those which are understood to be of least potential impact to the marine environment. This list is reviewed annually and the notification requirements for these chemicals are given in the PLONOR document. Those chemicals classed as PLONOR are shown on the full chemical list provided in Annex D.
Table 3.8 Estimated Principal Chemical Use: Alpha Well (Cretaceous)
Chemical Name Function Estimated Estimated Hazard Use (tonnes) Discharge Quotient (tonnes) Section: 36” Drilling time: 1 day Mud/Fluid Name: Spud Mud Caustic Soda Water based Drilling Fluid 1.00 1.00 E Additive Barite Weighting Chemical 52.50 52.50 E Bentonite Viscosifier 21.00 21.00 E Soda Ash Other 1.00 1.00 E Section: 26” Drilling time: 2 days Mud/Fluid Name: Spud Mud Caustic Soda Water based Drilling Fluid 1.00 1.00 E Additive Barite Weighting Chemical 102.00 102.00 E Bentonite Viscosifier 49.50 49.50 E Soda Ash Other 1.00 1.00 E
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 3-19 Chemical Name Function Estimated Estimated Hazard Use (tonnes) Discharge Quotient (tonnes) Section: 17.5” Drilling time: 5 days Mud/Fluid Name: Ultradrill Potassium Water Based Drilling Fluid 94.50 94.50 E chloride Additive Potassium Water based Drilling Fluid 480.00 480.00 E chloride brine Additive Barite Weighting Chemical 537.00 537.00 E Safe-cide Biocide 1.00 1.00 GOLD Magnesium oxide Acidity Control Chemical 1.00 1.00 E Defoam ns Defoamer (Drilling) 1.00 1.00 GOLD Ultrahib Shale Inhibitor / Encapsulator 31.50 31.50 GOLD Ultracap Shale Inhibitor / Encapsulator 7.50 7.50 GOLD Ultrafree ns Drilling Lubricant 36.00 36.00 GOLD Flo-trol Fluid Loss Control Chemical 7.50 7.50 E Polypac - all Viscosifier 7.50 7.50 E grades Duo-vis Viscosifier 7.50 7.50 GOLD Soltex® additive Shale Inhibitor / Encapsulator 10.50 10.50 GOLD Section: 12.25” Drilling time: 5 days Mud/Fluid Name: Ultradrill Potassium Water Based Drilling Fluid 78.00 78.00 E chloride Additive Potassium Water based Drilling Fluid 394.50 394.50 E chloride brine Additive Barite Weighting Chemical 583.50 583.50 E Safe-cide Biocide 1.00 1.00 GOLD Magnesium oxide Acidity Control Chemical 1.00 1.00 E Defoam ns Defoamer (Drilling) 1.00 1.00 GOLD Ultrahib Shale Inhibitor / Encapsulator 27.00 27.00 GOLD Ultracap Shale Inhibitor / Encapsulator 6.00 6.00 GOLD Ultrafree ns Drilling Lubricant 28.50 28.50 GOLD Flo-trol Fluid Loss Control Chemical 6.00 6.00 E Polypac - all Viscosifier 6.00 6.00 E grades Duo-vis Viscosifier 6.00 6.00 GOLD Soltex® additive Shale Inhibitor / Encapsulator 7.50 7.50 GOLD Section: 8.5” Drilling time: 7 days Mud/Fluid Name: Ultradrill Potassium Water Based Drilling Fluid 79.50 79.50 E chloride Additive Potassium Water based Drilling Fluid 405.00 405.00 E chloride brine Additive Barite Weighting Chemical 751.50 751.50 E Safe-cide Biocide 1.00 1.00 GOLD Magnesium oxide Acidity Control Chemical 1.00 1.00 E Defoam ns Defoamer (Drilling) 1.00 1.00 GOLD Ultrahib Shale Inhibitor / Encapsulator 27.00 27.00 GOLD Ultracap Shale Inhibitor / Encapsulator 6.00 6.00 GOLD Ultrafree ns Drilling Lubricant 30.00 30.00 GOLD Flo-trol Fluid Loss Control Chemical 6.00 6.00 E Polypac - all Viscosifier 6.00 6.00 E grades Duo-vis Viscosifier 6.00 6.00 GOLD
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 3-20 3.11 CONSUMPTION AND EMISSIONS
Based on a maximum likely drilling programme of 150 days from entering Greenland territory to demobilising from Greenland waters (124 days for the Stena Forth MODU and 95 days for the Stena Don MODU), together with data from previous operations and standard industry sources, the drilling units and support vessels are expected to consume following quantities of materials.
Table 3.9 Estimated Consumption Figures - MODUs and Support Vessels
Description Daily Fuel Est No. Total Fuel Max Max. Potable Use operating Use POB water (Tonnes) Days on (Tonnes) consumption Project (litres) Stena Forth Drillship 40 150 6000 180 36000 Stena Don Semi Submersible 40 130 5200 102 20400 Ware Ship Vessel (Agile) 10 150 1500 112 22400 Icebreaker 1 - Fennica 35 150 5250 77 15400 Icebreaker 2 - Balder Viking 20 150 3000 45 9000 Multi Role - Icebreaker / IM 20 120 2400 Vessel (Vidar Viking) 31 6200 Multi Role - ERRV / Oil 15 120 1800 Recovery / IM (Loke Viking) 45 9000 ERRV (Standby Vessel) 7.5 120 900 (Esvagt Connector) 27 5400 Platform Support Vessel 10 100 1000 25 5000 ERRV (Standby Vessel) 7.5 120 900 (Esvagt Don) 27 5400 ERRV (Standby Vessel) 7.5 150 1125 27 5400 Estimated Total 212.5 29075 698 139600 Notes: Esvagt Connector and Esvagt Don; 15 crew plus 12 passengers. Rescue capacity has not been included. Where exact vessel specification is not available (unnamed vessels) max POB has been estimated based on similar vessels. Consumption and emission figures for the Stena Forth are based on data from its sister ship the Stena Carron, as figures for the Stena Forth are not currently available. Persons on Board (POB) are based on maximum capacity and actual personnel figures will be considerably lower. Operating days excludes contingency time or abnormal conditions eg relief well drilling.
Water will be needed for operational and domestic use onboard the Stena Forth, Stena Don, the Ware Ship and support vessels. Drilling will be undertaken using water based muds and it is estimated that approximately 1,590 m3 (10,000 barrels) of drilling water will be required per well. Based on published figures from the Norwegian Institute of Public Health1 it is estimated that approximately 200 Litres of potable water per person per day is required for a typical drilling operation. Potable water will be obtained from Sisimiut. Drilling water will be sourced from the ocean.
(1) Water Report 113 Safe, Sufficient and Good Potable Water Offshore. A guideline to design and operation of offshore potable water systems. 2009. Norwegian Institute of Public Health.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 3-21 The anticipated total fuel consumption during project operations is approximately 29,000 tonnes. Under the project plan for logistical support, fuel will be sourced from Sisimiut via Royal Arctic Line and arctic grade low sulphur fuels (≤ 1.5% sulphur content) will be used for both drilling units and support vessels.
Sikorsky S92 and S61 helicopters will be used to provide Search and Rescue (SAR) and crew-change support for the drilling operations. Fuel capacity and consumption figures for the support helicopters are as follows:
Sikorsky S61 (15 person capacity): Fuel capacity 2,475 litres, maximum range 1,111 km. Average fuel consumption 0.45km/l fuel.
Sikorsky S92 (19 person capacity): Fuel capacity 3,974 litres (with auxiliary tanks), maximum range 1,389 km. Average fuel consumption 0.35km/l fuel.
Actual fuel consumption will vary with payload, weather, speed etc. however taking average distance to the drilling area from the onshore base as 370km, average fuel consumption of 0.4 km/l fuel and operating two flights per day five days per week, an approximate figure for weekly helicopter fuel consumption would be: 18,500 litres.
Fixed wing aircraft will also be used to provide crew transfers from Kangerlussuaq to Aasiaat. The type and estimated fuel consumption of this aircraft is not currently known, however the distance from Kangerlussuaq- Airport to Aasiaat Airport as the crow flies is 207 km, so the expected one return flight per day from Kangerlussuaq to Aasiaat five days per week would equate to just over 2000 km of direct flying for the fixed wing support aircraft.
3.11.1 Waste
Waste produced by the MODUs will be segregated and managed according to the category of waste material as described below and within the framework of the overall Project Waste Management Plan. The plan will set out clear responsibilities, starting at the point of waste production. Similar considerations will apply to the supply and standby vessels although these will clearly generate much smaller volumes of waste. Waste materials will appropriately contained, secured and labelled for transfer by support vessel to Royal Arctic Line for re-use, recycling (eg metal waste), treatment and/or disposal (eg incineration). All waste transfers will be accompanied by the required documentation. Refer to Section 3.12.6 for further details of Waste Management.
Type 1 - Non- Hazardous Solid Wastes (controlled waste) This category includes pallets, plastics, packaging waste etc. The main sources are industrial refuse (packaging, cleaning materials etc) and maintenance wastes (filters, sandblast grits etc).
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 3-22 Type 2 – Oil Contaminated Materials (hazardous waste) This category includes filters, absorbents etc. The main sources are spill clean up and greases and fuel oils. Absorbents will be minimised to that required to control the spill. Any used absorbent will be placed in a labelled drum and stored in a secure location pending removal ashore. The supervisor will ensure the label describes the substances spilled.
Type 3 - Waste Oil (hazardous waste) This category includes lube oil, hydraulic oils, grease etc. The main sources are equipment lube oil changes. The engine lube oil tank will be used to store other sources of waste oil pending periodic removal and replacement. All waste oil produced and held on-board for subsequent transfer and disposal will be recorded in the waste oil log in accordance with MARPOL standards.
Type 4 - Scrap Metals (controlled waste) The main sources are used process equipment/used tanks, electrical cables, empty drums, used tubulars, used casing etc. Under the Waste Management Plan, scrap metal will be made as clean as possible of contaminating oil and grease, with such oily wastes consigned to Waste Type 2 for disposal. If suitable cleaning is not feasible the container will be treated as hazardous (see below) and managed accordingly.
Type 5 - Hazardous Materials (hazardous waste) This category includes excess/contaminated drilling and other chemicals, uncleaned drums/containers etc. The main sources are maintenance and drilling activities. Materials consigned to the hazardous waste skip must be compatible, undamaged and securely contained. Damaged containers will be washed clean. Where possible and safe to do so metal drums and containers will be washed before placing them in the scrap metal skip, or in the non- hazardous waste skip if non-metal. Washings will be contained within the hazardous drainage areas, providing that any residues that would pass through the hazardous drains separator are acceptable for discharge.
Type 6 – Clinical Wastes This category includes dressings, clinical and cleaning materials, blood samples, pathogenic organisms, plastic, glass, medicines, needles etc. The main sources are the MODU’s medical treatment facilities.
Table 3.10 Estimated Figures for Waste Production from the MODUs
Description Est No. Modelled waste production based on Project operating duration (kg) and annual waste production figures Days on Controlled Hazardous Clinical Total Project Waste Waste Waste Waste
Stena Forth Drillship 150 62709 57737 16 120463 Stena Don Semi Sub 130 53979 103040 2 157022 Total Estimated Figure 116689 160777 19 277485
Note: Consumption and emission figures for the Stena Forth are based on data from its sister ship the Stena Carron, as figures for the Stena Forth are not currently available.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 3-23 3.12 SUPPORT OPERATIONS
3.12.1 Personnel
A breakdown of the maximum Persons on Board (POB) for the various vessels and MODUs has been provided in Table 3.9 above. This is based on the maximum number of persons each vessel or rig can accommodate (excluding emergencies) and the actual number of personnel working offshore will be considerably less. Logistics provision is being made for an estimated 400 persons per month to crew change on and off the operations. Crew on the drill units will work on a rotation basis of 28 days on, 28 days off. All personnel working offshore will be in possession of appropriate emergency training and medical certification.
The marine crew of 18 for transit and an additional 10- 12 catering staff onboard the Ware Ship are likely to be employed locally.
3.12.2 Support Vessel Characteristics
Introduction
Approximately nine vessels in total, in addition to the two MODUs will be selected to provide for requirements and flexibility, including support of the operation and to provide cover for emergency stand-by, ice management / anchor handling, oil spill response, ice breaking and re-supply. This will include the following:
1 x accommodation vessel / warship; 2x icebreaker vessels; 1 multi role icebreaker and Ice Management (IM) vessel; 1 multi role Emergency Response and Rescue Vessel (ERRV), Oil Recovery and Ice Management Vessel; 2 x ERRV Standby vessels; 1 x Platform Supply Vessel (PSV); and 1 x Anchor Handling / ice breaker / ice management.
The drilling operations are therefore supported by a range of vessels designed not just to provide day-to-day platform support and resupply, but also equipped to act as icebreakers, ice management vessels, emergency response and rescue, oil recovery and tugs.
The vessels will be equipped with sufficient primary oil spill contingency equipment to deal with spills as outlined in the site specific oil spill contingency plan. Drilling support vessels work on a worldwide basis and as such the crew is internationally based. The exact nationality of the crew is as yet undetermined, however it is unlikely that personnel on the vessels will be sourced short term from Greenland due to the term of the project and the specialist skills required.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 3-24 Ware Ship (MV Agile)
The preferred supply method is to mobilise a ‘Wareship’ (the MV Agile) to carry all the supplies and contingency equipment for the drilling campaign (see Figure 3.10). The MV Agile is a subsea construction support vessel with a capacity for 15 flexible reels using a double deck storage system. This ship has a lower deck area of 1,200 m2 and a 1,000 m2 upper deck area for flowlines, umbilicals and subsea equipment. The ship is equipped with a 30t crane on the starboard quarter and a 50t crane on the upper deck. The ship will also provide a standby flotel facility with accommodation capacity for 112 personnel for delayed crew changes to avoid any potentially disruptive onshore interactions, workshop facilities for repair and maintenance requirements, a mid ocean helicopter divert station (suitable for S-92), an emergency response staging post and equipment and contingency supplies.
It is anticipated that during the project there will be a full marine crew of 18 for transit with an additional 10-12 catering staff for catering (30 total). Up to 60 persons are anticipated to be temporarily housed during crew changes. It is anticipated that personnel will access the ship either via helicopter or crew change tender. There will be no free access between the Ware Ship and shore which will minimise the interaction between foreign workers and local communities and businesses.
The ship has a capacity to carry up to 2,950 m3 of fuel, and estimated consumption in the various modes of operation is as follows:
2-3 m3 per day while anchored (2 bow anchors); 20 m3 per day when dynamically positioned (using thrusters to maintain position); 18 m3 per day while transiting; and 12 m3 per day when combined anchor and DP (i.e. in Aasiaat harbour).
Organic waste from the Ware Ship will be macerated and treated before discharge and non organic waste will be compacted and shipped to Royal Arctic Line (RAL) reception facilities in Aasiaat (onshore) for disposal (see Section 3.11.1).
The Ware Ship is anticipated to arrive in June 2010 and depart at the end of October 2010.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 3-25 Figure 3.10 Ware Ship Schematic and Photo
Table 3.11 MV Agile Specifications
Ship Scope Capabilities Light Construction, Inspection Maintenance Repair Unit flag Barbados Year of construction (built/rebuilt) 1978/2004 Unit design/shape Ro-Flo Type of Positioning system (anchor/dp/combined) DP Class 2 Kongsberg SDP 21 Weight (light ship) 3082 t Fuel consumption, drilling 10 t/day Accommodation for maximum no. of persons 112 Length overall 139.5 m Breadth overall 20.2 m Storage Capacities Fuel 2,950 m3 Potable water 436 m3 Propulsion/Thrusters Thrusters\Type (azimuth/in line) Tunnel Quantity No. 2 bow, 2 stern Thruster Power 1,100 kW each (4,400 kW) Operational Capabilities Maximum speed @ t/h 10 @ 1.25t Econ Speed @ t/h 9 @ 0.92 t Helicopter Landing Deck Type Sikorsky 92 Power Supply Systems Main Engines 2 off 2,391 kW
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 3-26 3.12.3 Onshore Supply Base
The Stena Forth will load equipment and supplies at Invergordon in Scotland, with St John’s Newfoundland the back up supply base in the event of delays. The wareship will also load supplies and equipment before mobilising to Greenlandic waters. The Stena Don will transit basically empty to ensure the pontoons are out of the water to improve surface transit speed.
Aasiaat has been identified as the preferred forward base for helicopter transfer of crews to the rigs and 24 hr Search and Rescue (SAR) operations, and with Ilulissat as the hanger base for helicopter operations (approximately 2 helicopter flights per day). Crews will be transferred to Aasiaat by fixed wing aircraft from the international airport in Kangerlussuaq. Sisimiut has been identified as the preferred base for refuelling, water supplies and the processing of rig household waste. Figure 3.11 shows the locations of onshore support facilities in relation to the licence area.
Royal Arctic Line (RAL) operate onshore supply base facilities in Aasiaat which will be utilised for the project, the base will provide the following:
Limited laydown and loading / unloading of supply boats – of which there are likely to be 1-2 per week.
Waste handling / disposal facilities.
Transport of materials to support onshore base operations (between RAL locations and airports).
Additional personnel with skills.
Storage for part of the Oil Spill Response equipment.
There will be onshore accommodation in Aasiaat for up to 12 Capricorn personnel.
RAL are the preferred supplier for local logistics interaction and management. Similarly, Air Greenland will be contacted for air supply transportation logistics, with helicopter services by Cougar based in Ilulissat and transferring crews out of Aasiaat (see Figure 3.12).
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 3-27 T4 T3C3
T16
T23 T8 Alpha
Ilulissat
Aasiaat
Kangerlussuaq q® Sisimiut
KEY: CLIENT: SIZE: TITLE: Capricorn Greenland A4 3 Exploration-1 Figure .11 Licence Area Onshore Support Facilities ERM Eaton House Wallbrook Court North Hinksey Lane Oxford, OX2 0QS DATE: 22/02/2010 CHECKED: RB PROJECT: 0108885 Telephone: 01865 384800 . Facsimile: 01865 204982 DRAWN: CJ APPROVED: JP As scale bar 0 45 SOURCE: Capricorn Greenland Exploration-1 DRAWING: REV: PROJECTION: WGS 1984 UTM Zone 21N Onshore Support Facilities.mxd 0 Kilometres File: 0108885GreenlandWestGIS_CJ_JP\Outputs\22Feb10\PD\Onshore Support Facilities.mxd © ERM This print is confidential and is supplied on the understanding that it will be used only as a record to identify or inspect parts, concepts or designs and that it is not disclosed to other persons or to be used for construction purposes without permission. Figure 3.12 Aasiaat Helicopter Base
3.12.4 Offshore Supplies
Offshore activities will be located in excess of 100 km from the nearest land. Therefore all drilling units will arrive and depart well locations without planned land fall. Instead they will be serviced regularly by supply boats.
Potable water, food and fuel will be re-supplied via Sisimiut, all other materials and consumables will be supplied from the UK.
Oil spill equipment will be stored at the onshore supply base in Aasiaat and will be flown to site as required. Please refer to the drilling campaign Oil Spill Response Plan for full details of response planning and contingency materials.
3.12.5 Helicopters and Support Aircraft
In compliance with the exploration strategy, Capricorn intends to use the best helicopter equipment which includes S92’s with full search and rescue (SAR) capability including night/poor weather auto hover recovery. These aircraft will have a maximum of one hour scramble capability to reflect the harsh weather environment.
The helicopters will be used to transfer crew to the rigs via Kangerlussuaq international airport and Aasiaat. Ilulissat is the preferred base for helicopter hangerage and support operations. The helicopter flight and ground crew are estimated to be 30 people, housed in hotel accommodation in Ilulisat. The helicopter provider is likely to be a large Canadian company with extensive Grand Banks offshore operational experience. Kangerlussuaq international airport has landing for Tier 3 Oil Spill Response equipment and a 60 person camp as contingency for delayed flights will be made available.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 3-29 Aircraft support for the operations will consist of the following:
1 Sikorsky S92 providing SAR Support (Figure 3.13); 1 Sikorsky S92 providing SAR and crew-change support; 1 Sikorsky S61 providing SAR and crew-change support (Figure 3.13); and Fixed wing aircraft providing crew transfer from Kangerlussuaq to Aasiaat.
Helicopters will be based at Ilulissat with fixed wing aircraft based at Kangerlussuaq. It is anticipated that the crew-change helicopters (S61 and S92) will each make one return flight per day to the Sigguk Licence Area five days per week, with the fixed wing aircraft also making one return flight per day from Kangerlussuaq to Aasiaat five days per week.
Figure 3.13 Sikorsky S92 (left) and S61 (right) Support Helicopters
3.12.6 Waste Management
Waste will be disposed of to the supply base onshore at Aasiaat (see Section 3.11.1). Specific waste handling/disposal routes and procedures will be detailed in a Waste Management Plan.
Waste materials will be separated offshore into hazardous and non-hazardous wastes, solids and liquids. Clinical waste will also be segregated and stored separately. Non hazardous waste materials will be disposed of by RAL (incineration). This will follow the established Stena procedures for segregation and shipping and RAL for handling onshore
3.13 OTHER DEVELOPMENT OPTIONS
An important element of the impact assessment is the consideration of project alternatives. In accordance with the applicable legislation and guidance in Greenland, this section also examines possible scenarios should the drilling programme be successful and future development shown to be both commercially and technically viable. Although this information is provided to
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 3-30 give an example of the future possibilities, the scope of both the environmental and social impact assessment remains limited to the actual 2010 exploration drilling programme.
3.13.1 Alternatives
The selection and alternatives for drilling locations, drill units and mud selection are described below. One alternative to be considered is the No Development Option, or what will the implications be (both positive and negative) should exploration drilling not proceed. The baseline will not remain static and likely future trends in the environmental and socio- economic baseline are accounted for in the impact assessment process (see Chapter 3 of the EIA for the Assessment Methodology and Chapter 6 for the Impact Assessment). In the No Development Option the potential impacts of offshore drilling identified within the EIA and SIA will not occur, however it should be recognised that the baseline will continue to be impacted by, for example, fishing and hunting, vessel activity, natural impacts such as iceberg movement or sedimentation, waste materials, sewage and polluted run-off, fall out of atmospheric pollutants or accidental releases and spills.
In the case of No Development, the exploration for and possible realisation of hydrocarbon resources will not take place. Potential revenue and employment from any future development will not be realised and the potential benefits to local businesses and communities from oil and gas activity will not take place. No Development will therefore inhibit offshore exploration activity and the potential future development of hydrocarbon resources, together with the possible benefits it may bring to the country; however it will also prevent the identified potential impacts of drilling activity from occurring, although the baseline environment will continue to be altered by other factors.
Drilling Locations
The drilling locations for the 2010 Disko West drilling campaign by Capricorn have been selected based on extensive geophysical; data acquisition and interpretation. Seismic exploration, electro-magnetic surveys, site surveys and environmental surveys have all been undertaken to provide information on the water column, seabed and particularly on the subsurface.
A summary of the petroleum geology is provided in Section 3.5. The presence of commercially viable hydrocarbon reserves is a complex interaction of many factors including time, pressures, source rock, reservoir rock, migration pathways and impermeable traps all of which need to be accounted for in interpreting the geophysical data and deciding whether, and where, to drill.
The identified drilling locations are therefore based on extensive geological and geophysical studies. Although these remote studies can provide petroleum geologists with a good idea of the subsurface and an indication of
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 3-31 where to drill, it is only through exploration drilling that the interpretation can be verified and actual subsurface data acquired.
Rig Selection
Both of the drilling units selected for this work are modern rigs designed for work in harsh environments at the water depths encountered in the Disko West area. Both units are operated by Stena Drilling Limited (Stena). Further technical details are provided in Section 3.4.
The Stena Forth is a state-of-the-art (sixth generation) dynamically positioned drillship designed for year-round operations in deep waters and harsh environments (operating at temperatures down to -20degC).
The Stena Don is a dynamically positioned (class 3), harsh environment semisubmersible drilling vessel designed for worldwide operations.
The drilling units have been selected based on their technical suitability for the water depths, drilling depths and environmental conditions of the Disko West area, and availability to conduct the operations.
Mud and Chemical Selection
During drilling, muds are used for several purposes (as weighting agents to control down-hole pressure, to lubricate and cool the drill bit and to carry the cuttings to the surface for disposal).
The drilling muds are formulated according to the well design and geological conditions expected. They comprise a base fluid, weighting agents and chemicals that are used to give the mud the exact properties it needs to make it as easy and safe as possible to drill. In addition to the operational characteristics, the muds are selected on the basis of ecological toxicity and bio-degradation rates. Water based mud systems have been selected for the exploration wells (as opposed to more harmful oil based systems) along with low-toxicity and inert chemicals as described in more detail with the Project Description.
3.13.2 Lifecycle of Activities
The current impact assessments (social and environmental) encompass short term exploration drilling activities and the associated support operations. Should exploration drilling be successful and sufficient reserves of hydrocarbons found, a number of development options exist which will be the subject of future environmental studies at the appropriate time. Previous operational studies have been carried out looking at the possible development options for hydrocarbon resources in this area, by a number of organisations, including:
APA Petroleum Engineering (2003);
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 3-32 Aker Engineering & Technology (2005 and 2008); US Geological Survey (USGS) (2008); and Genesis Oil and Gas (2009).
These studies have examined a number of options for oil field and gas field developments off the Greenland coast. For the Disko West area, assuming the most likely scenario that oil rather than gas is discovered, the options include:
A Floating Production Unit (FPU) or a Floating Production, Storage and Offloading vessel (FPSO) located at the field. This would allow export of the product directly from the field to reception terminals elsewhere, without the requirement for onshore processing / receiving facilities.
Subsea development offshore and a tieback (pipeline) to an onshore plant, with oil transportation from the plant to market via ice-breaking tankers delivering the crude to an existing transhipment terminal.
Options for a semisubmersible, a traditional Tension Leg Platform (TLP), a deepwater gravity based structure or a spread moored barge were examined in one of the studies but discounted.
Any future development of hydrocarbon resources in this area will likely require considerable support from onshore Greenland. The nature and extent of onshore support services, infrastructure, personnel and facilities will vary widely with the nature and size of any development. It should be noted that offshore field development is a long process, taking a number of years from successful drilling to first output (10 years or more in many instances) and that many more studies into these options will be undertaken over this period should viable reserves be discovered.
A current assessment of the development studies by Capricorn concludes:
Greenland field developments are likely to be in deep water in remote iceberg prone Arctic areas, requiring leading edge technology, high expenditure and long schedules.
At present rock properties, fluid properties, well rates and field sizes are all unknown.
FPSO development scenarios are technically feasible and are the base case for Greenland oil field developments.
The subsea to shore development scenario merits further study.
At this stage there is insufficient information to justify any particular development option as the selected option.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 3-33 Several options are therefore technically feasible and potentially economically viable, depending on the outcomes of exploration drilling and further studies. The feasibility of the options depends on specific site conditions and ice management. Some of the challenges with development in this area include:
iceberg frequency and size; extent and properties of sea ice; and site conditions at field.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 3-34 4 ASSESSMENT METHODOLOGY
4.1 INTRODUCTION AND OVERVIEW OF THE IMPACT ASSESSMENT PROCESS
This impact assessment (IA) has been undertaken following a systematic process that predicts and evaluates the impacts the proposed Project is expected to have on aspects of the physical and biological/natural environments (for the Environmental Impact Assessment) and human/socio- economic aspects (for the Social Impact Assessment), and identifies measures that the Company will take to avoid, reduce, remedy, offset or compensate for adverse impacts, and to provide benefits, as far as is reasonably practicable.
The overall approach followed is shown schematically in Figure 4.1 and the key steps are described in the subsequent section. It should be noted that IA is not a linear process, but one in which findings are revisited and modified as the Project and its IA progress.
Figure 4.1 Overview of IA Approach
Screening
Scoping
Assessment engagement Stakeholder Predict magnitude of impacts
Evaluate their significance
collectionand new surveys) Investigate options for mitigation Baseline studies (existing data
Reassess residual impact (as required)
Management Plans/ Mitigation Register Interaction with project planning and design
Reporting and Disclosure
4.2 SCREENING
The screening stage of the impact assessment process looks at the type of project and the applicable framework of legislation and standards to determine whether an assessment is required and form and scale of impact assessment that should be carried out.
Screening for this project has been undertaken through a review of the applicable national and client corporate standards and through a series of
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 4-1 consultation meetings with the Greenland authorities (through the BMP) and applicable consultees such as NERI. Consultations have been held in Denmark and Greenland during 2009 and 2010 and have involved representatives from Cairn, ERM, the BMP and NERI. The outcome of the early screening discussions established the requirement for an EIA for offshore exploration drilling and defined the broad scope and content of the study.
Subsequent discussions further refined the requirements and legal framework for undertaking the Environmental Impact Assessment for offshore drilling and also established the requirement for a separate Social Impact Assessment.
4.3 SCOPING
The first stage in any impact assessment is to identify the likely significant impacts of the Project that will require investigation and to develop the resulting terms of reference for the assessment studies. This involves the systematic consideration of the potential for interaction between activities involved in developing the Project and aspects of the physical and natural environment that may be affected. The interaction between Project activities and aspects of the social and socio-economic environment are considered within the Social Impact Assessment. The definition of the Project and its area of influence, and the types of impacts that have been addressed in this assessment are outlined below, including description of the spatial and temporal scope of the assessment. Further details are provided in the individual specialist sections of the report.
Definition of the Project and its Area of Influence
The Project is defined as including all those actions and activities which are a necessary part of the operations including all related and ancillary facilities without which the Project cannot proceed. In this instance, the Project is deemed to include the activities of the drilling units (MODUs) and support vessels, resupply, refuelling and crew-change operations, waste management as far as receipt by a registered waste carrier, survey planning and emergency preparedness. The temporal scope of the Project is taken as being from the time vessels, equipment and personnel enter Greenland territory to their demobilisation from Greenland at the end of the exploration drilling programme.
It is understood that the MODUs will utilise the port of Aasiaat for crew-changing and for providing logistical support through facilities operated by Royal Arctic Line (RAL), with Sisimiut utilised for resupply and refuelling, again through RAL facilities. Personnel will fly into and out of Greenland via the international airport at Kangerlussuaq, before transferring to Aasiaat. A wareship moored offshore will also be used to store materials and re-supply the drilling operations, as well as to provide contingency accommodation in case of delays with flight transfers during crew changes.
The definition of the Project excludes activities which are prompted to occur by the Project but which are not essential to its development and are undertaken by others, but, as noted below, the impacts of these developments are nevertheless taken into account in the assessment. Impacts have been assessed for all phases of Project development from project planning and contractor management through to mobilisation into Greenland waters, well drilling and support operations, well testing and close-out activities and demobilisation of the drill ship, semi-submersible rig and support craft from the Project area.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 4-2 Impacts have been assessed throughout the Area of Influence of the Project. This varies depending on the type of impact being considered and is defined in later specialist sections of the report. In each case it includes all that area within which it is considered that significant impacts could occur and takes into account:
the physical extent of the operations, defined by the limits of the Exploration License Area;
the nature of the baseline environment (biological, physical and socio-economic) and manner in which impacts are likely to be propagated beyond the Project boundary (for example underwater sound).
The area of influence may also extend across administrative or national boundaries and the assessment includes such trans-boundary effects.
Types of Impact The assessment has considered positive and negative impacts of the Project on physical natural, social and socio-economic resources and receptors.
Positive or beneficial impacts are those which are considered to present an improvement to the baseline or to introduce a new desirable factor. Negative or adverse impacts are the reverse.
Aspects of the environment include:
The physical environment includes geology and soils, land (eg coastlines), hydrology and hydrogeology, surface and ground water resources, air, noise, vibration, light and other forms of radiation. The biological or natural environment includes aquatic and terrestrial habitats, flora and fauna; biodiversity and the community, species and genetic levels; protected areas and ecosystem values. The cultural environment includes tangible and intangible sites and features of archaeological, historic, traditional, cultural or aesthetic interest, together with traditions and cultural practices and events. These aspects of the environment are considered within the Social Impact Assessment. The social and socioeconomic environment includes people and their homes, lands and other resources; their health, welfare, amenity, safety and security; lifestyles including subsistence activities, employment and incomes; business premises and economic activity; community facilities; infrastructure; local, regional and national economies. These aspects of the environment are considered within the Social Impact Assessment.
The term resources is used to describe features of the environment such as water resources, habitats, species, landscapes, etc which are valued by society for their intrinsic worth and/or their social or economic contribution. The term receptors is used to define people and communities who may be affected by the Project.
Timeframe Impacts include: permanent impacts that will arise from irreversible changes in conditions such as the removal of features; temporary impacts that will arise during short term activities such as construction or decommissioning; and longer term impacts that will arise over the duration of operational project activities. Short and long term impacts will cease on completion of the drilling activities although there may be a period before the environment returns to its previous condition.
Within each of these categories, the assessment considers impacts which are one-off or recurrent, and continuous or intermittent. If intermittent they may occur at varying frequency, and at regular (eg seasonally) or irregular intervals (eg depending on operating or weather conditions).
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 4-3 Direct, Induced and Higher Order Impacts The assessment includes direct impacts arising from activities associated with the Project (primary impacts) and impacts that follow on as a consequence of these (secondary and higher order impacts). So for example underwater sound from dynamic positioning thrusters on the MODUs may have a direct short term behavioural affect on the movement of fish. This temporary displacement of fish stocks may subsequently have either a positive or negative secondary effect on catch levels (depending on whether fish are displaced towards or away from established fishing grounds), however given the short-term nature there is unlikely to be any tertiary impact on economic performance or livelihoods.
Projects can also have induced impacts by stimulating other developments to take place which are not directly within the scope of or essential to the development of the Project. So for example, a Project may encourage people to move into an area attracted by the possibility of employment even though they may not actually obtain jobs at the facility, and as a result lead to building of new homes and other facilities. A new road or harbour improvement could encourage business to relocate because of access improvements, although this may not have been the intention of the developer. Given the short duration of the exploration drilling programme, it is not likely that there will be any induced impacts from further stimulated developments. Should this current phase of exploration drilling lead to subsequent production, induced impacts could potentially become pertinent and this is considered further within the Social Impact Assessment.
Cumulative Impacts The Project may also be taking place at the same time as other operations causing impacts affecting the same resources or receptors, such that there will be cumulative effects with the proposed Project. The impacts of other projects already underway or committed have been taken into account in describing the future baseline for the Project (ie the without Project situation against which the impacts of the Project are assessed), however, if there are other developments in the area which are in preparation or envisaged, but which are not yet committed, the cumulative effect of these with the Project is considered.
The Project definition encompasses the activities of both MODUs and the associated support operations. As such, the most likely potential cumulative impact from exploration drilling occurs where other operators are intending to drill or acquire seismic data in areas which may cause impacts affecting the same resources or receptors (eg marine mammals or fish).
Where a particular resource of receptor is affected by more than one type of impact from the Project the combined impact of these on the receptor will also be taken into account.
Routine and Non-Routine Impacts Finally the Impact Assessment has assessed both:
routine impacts resulting from planned activities of the Project; and non-routine impacts arising from: unplanned or accidental events within the Project such as equipment breakdown or catastrophic failure; and external events affecting the operation such as extreme weather activity.
The impact of non-routine events is assessed in terms of the Risk ie taking into account both the consequence of the event and the probability of occurrence (Risk = probability x consequence)
The aim of scoping has been to focus the assessment on the likely significant impacts. An initial scan of the Project and its environment was undertaken using early project and baseline data to identify all possible impacts. Those which might be expected to be significant were then identified taking into
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 4-4 account legislation, policy and good practice, the judgement of the specialists within the team and the views of consultees.
4.3.1 Consultation
Initial consultation has been undertaken with a limited number of key stakeholders, primarily for the purposes of initial screening, verifying the scope of work and gathering baseline data. This entailed communications with the Bureau of Minerals and Petroleum (BMP), The National Environmental Research Institute (NERI) – part of Aarhus University in Denmark and the Greenland Institute of Natural Resources (GINR). The views of key stakeholders, together with relevant guidance documents published by the BMP and NERI have been taken into account in developing the scope and approach of this assessment.
Further stakeholder consultation has been undertaken as part of the Social Impact Assessment, with full details included within the relevant Chapter of the SIA report.
During Scoping the team also considered:
The methods to be used to characterise the baseline environment and to predict and evaluate impacts - the details of these are described in each specialist section.
The likely availability of information given the relative scarcity of environmental data for certain topics such as marine mammal distribution.
The alternatives to be considered - these are described further in the Project Description Chapter.
It should be noted that although initial scoping was carried out early in the IA process, it is an activity that continues as new issues and information emerge during studies and stakeholder consultations, and as a result of development of the Project design. The results of scoping have been used to develop the structure of this assessment, to inform project workshops held with the client and to identify areas where baseline information is scarce and additional research may be warranted in future.
4.4 BASELINE DATA COLLECTION
To provide a baseline against which the impacts of the Project can be assessed the assessment provides a description of the conditions that will prevail in the absence of the Project. The baseline includes information on all receptors and resources that were identified during scoping as having the potential to be significantly affected by the proposed Project.
The description of the baseline has the following main objectives:
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 4-5 To identify the key environmental and socio-economic conditions in areas potentially affected by the Project and highlight those that may be vulnerable to aspects of the Project.
To describe and where possible quantify their characteristics (nature, condition, quality, extent, etc) now and in the future in the absence of the Project (1).
To provide data to aid the prediction and evaluation of possible impacts.
To inform judgements about the importance, value and sensitivity of resources and receptors.
For this IA, baseline data collection proceeded in stages:
Collection of available data from existing sources including: o government agencies; o research and academic organisations; o published sources; o external stakeholders and the public; and o previous exploration PEIAs held by the client.
Geophysical and environmental surveys of the well site locations to inform the physical and biological components of the baseline.
In-country information gathering and stakeholder interviews to inform the socio-economic baseline for the SIA.
4.5 INTERFACE WITH PROJECT PLANNING AND DESIGN
4.5.1 Developing the Project Description
A key aspect of the IA has been the interface between the IA Team and the Project team. The Project team has provided information for the assessment on details relating to the planning and operation of the Project. As impacts have been investigated the results have been fed back and appropriate mitigation measures agreed and integrated into the Project. This has been an iterative process throughout the studies.
As the Project has developed the description of the Project in Chapter 3 of the SIA has been revised to include all planned mitigation reflecting the commitment that has been made by the Project proponent to the agreed proposals. All the planned mitigation is identified in the Environmental
(1) As noted above, the future baseline takes into account trends that are apparent in the baseline (eg depletion of fisheries, hunting statistics). The future baseline also takes into consideration other developments in the area which are underway or committed, however in the context of a short-term activity such as exploration drilling, future baseline trends are less pertinent. The future baseline can be considered as the No Project scenario against which the impacts of the Project are assessed.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 4-6 Mitigation and Monitoring Plan which forms Chapter 7 of the EIA report and in the draft Benefit and Impact Plan within the SIA.
4.5.2 Consideration of Alternatives
As part of the Impact Assessment process, the IA team has reviewed alternatives to the proposed operations. These have included alternative methodologies and equipment, as well as the ‘no development option’.
4.6 ASSESSMENT OF IMPACTS
4.6.1 General Considerations
The assessment of impacts has proceeded through an iterative process considering four questions:
1. Prediction – What will happen to the human or natural environment as a consequence of this Project? 2. Evaluation – Does this impact matter? How important or significant is it? 3. Mitigation – If it is significant can anything be done about it? 4. Residual Impact – Is it still significant?
Where significant residual impacts remain further options for mitigation may be considered and impacts re-assessed until they are as low as reasonably practicable.
4.6.2 Predicting the Magnitude of Impacts
The IA describes what will happen by predicting the magnitude of impacts and quantifying these to the extent practicable. The term ‘magnitude’ is used as shorthand to encompass all the dimensions of the predicted impact including:
the nature of the change (what is affected and how); its size, scale or intensity; its geographical extent and distribution; its duration, frequency, reversibility, etc; and where relevant, the probability of the impact occurring as a result of accidental or unplanned events.
It also includes any uncertainty about the occurrence or scale of the impact, expressed as ranges, confidence limits or likelihood (1).
Magnitude therefore describes the actual change that is predicted to occur in the resource or receptor (eg the area and duration over which water may
(1) A distinction is made here between the probability of impact arising from a non-routine event such as an accidental explosion or spill, and the likelihood of an uncertain impact; for example it may not be certain that migrating species will be present during operations.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 4-7 become polluted and the level of increase in concentration; the degree and probability of impact on the livelihood of a local community; the probability and consequences in terms of fatalities from a major accident).
An overall grading of the magnitude of impacts is provided taking into account all the various dimensions to determine whether an impact is of negligible, small, medium or large magnitude. This scale is defined differently according to the type of impact and a more or less detailed scale may be used for particular impacts depending on the circumstances. For readily quantifiable impacts such as noise numerical values can be used whilst for other topics a more qualitative classification is necessary. The details of how magnitude is predicted and described for each impact are presented in the relevant chapters of the IA Report.
4.6.3 Evaluation of Significance
The next step in the assessment is to take the information on the magnitude of impacts, and explain what this means in terms of its importance to people and the environment, so that decision makers and stakeholders understand how much weight should be given to the issue in deciding on their view of the Project. This is referred to as Evaluation of Significance.
There is no statutory definition of significance; however, for the purposes of this IA, the following practical definition of when an impact is judged to be significant is used:
An impact is significant if, in isolation or in combination with other impacts, it should, in the judgement of the IA team, be reported in the IA report so that it can be taken into account in the decision on whether or not the Project should proceed and if so under what conditions.
This recognises that evaluation requires an exercise of judgement and that judgements may vary between parties in the process. The evaluation of impacts that is presented in this IA Report is based on the judgement of the IA team, informed by reference to legal standards, government policy, current good practice and the views of stakeholders.
Criteria for assessing the significance of impacts are clearly defined for each topic area and types of impact taking into account whether the Project will:
Cause legal or accepted environmental standards to be exceeded – eg air, water or soil quality, noise levels – or make a substantial contribution to the likelihood of a standard being exceeded.
Adversely affect protected areas or features, or valuable resources – nature conservation areas, rare or protected species, protected landscapes, historic features.
Conflict with established government policy eg to reduce CO2 emissions, recycle waste, protect human rights.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 4-8
Where standards are not available or provide insufficient information on their own to allow grading of significance, significance has been evaluated taking into account the magnitude of the impact and the value or sensitivity of the affected resource or receptor. Magnitude is defined across the various dimensions described in the previous section. The value of a resource is judged taking into account its quality and its importance as represented, for example, by its local, regional, national or international designation, its importance to the local or wider community, or its economic value. The sensitivity of receptors, for example a household, community or wider social group, will take into account their likely response to the change and their ability to adapt to and manage the effects of the impact.
Magnitude and value/sensitivity are looked at in combination to evaluate whether an impact is significant and if so its degree of significance. The principle is illustrated in Figure 4.2.
Figure 4.2 Evaluation of Significance
Magnitude of Impact
Small Medium Large
Not Significant
Low Minor
Moderate
Medium Medium
Major Value/Sensitivity of Resource/Receptor High
The majority of impacts from a well defined short duration activity such as offshore exploration drilling will be to natural populations and habitats, with potential short-term secondary impacts to human aspects such as fisheries activity. The specific criteria used to evaluate significance of impacts at a topic level (eg to biodiversity, livelihoods) are included in the appendices of the impact assessment report.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 4-9 4.6.4 Mitigation
Impact assessment is designed to ensure that decisions on Projects are made in full knowledge of their likely impacts on the environment and society. A vital step within the process is the identification of measures that can be taken to mitigate impacts so that these can be incorporated into the Project.
An important outcome of this IA has been the improvements it has generated in the environmental performance of the Project. This has been achieved by integrating mitigation into the design of the Project, the methods for its operation, and the management of the development process.
The process has involved identifying where significant impacts could occur and then working with the Project proponent to identify practical and affordable ways of mitigating those impacts as far as possible. These measures have been agreed with the Project proponent and integrated into the Project design.
Where a significant impact is identified, a hierarchy of options for mitigation has been considered to identify the preferred approach:
Avoid at source – remove the source of the impact, eg avoid water pollution by not using oil based muds for drilling.
Abate at source – reduce the source of the impact, eg reduce the level of air emissions through maintenance programmes and the use of modern equipment.
Attenuate – reduce the impact between the source and the receptor, eg reducing fisheries impacts through prior notification and good communications with fisheries groups.
Abate at the receptor – reduce the impact at the receptor, eg use of appropriate waste disposal (lined pits) to reduce groundwater impacts from landfill.
Remedy – repair the damage after it has occurred, eg clean-up and restoration activities following an accidental oil spill.
Compensate / offset – replace in kind or with a different resource of equal value, eg re-establishing / relocating habitats due to road building or major onshore infrastructure projects.
4.6.5 Assessing Residual Impacts
Following agreement on feasible mitigation the IA team has re-assessed the impacts taking into account the mitigation now integrated into design and operation of the Project. Where an impact could not be completely avoided the residual impact has been reassessed and the possibility for further
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 4-10 mitigation considered. All residual significant impacts are described in this report with commentary on why further mitigation is not feasible. Where the impact is of more than minor significance the IA explains how the impact has been reduced to as low as reasonably practicable.
The degree of significance attributed to residual impacts is related to the weight the IA team considers should be given to them in reaching a decision on the Project.
Any residual major impacts, whether positive or negative, are considered to warrant substantial weight, when compared with other environmental, social or economic costs and benefits, in the decision on whether the Project should be permitted to proceed; conditions should be imposed to ensure adverse impacts are strictly controlled and monitored and beneficial impacts are fully delivered.
Residual moderate impacts are considered to be of reducing importance to the decision, but still warranting careful attention to conditions regarding mitigation and monitoring, to ensure best available techniques are used to keep adverse impacts as low as reasonably practicable, and to ensure beneficial impacts are delivered.
Minor impacts should be brought to the attention of the decision-maker but are identified as warranting little if any weight in the decision; mitigation can be achieved using normal good practice and monitoring should be carried out to confirm that impacts do not exceed predicted levels.
4.6.6 Dealing with Uncertainty
Even with a firm Project design and an unchanging environment, predictions are by definition uncertain. In this IA predictions have been made using methods ranging from qualitative assessment and expert judgement to quantitative modelling. The accuracy of predictions will depend on the method and the quality of the input data on the Project and the environment. Where assumptions have been made, the natures of any uncertainties which stem from these are presented in the topic specific descriptions.
Uncertainty can also arise as a result of the stage in the planning process at the time of preparation of this IA report. Where this results in uncertainty that is material to the findings of the IA, this is clearly stated. The general approach has then been to take a conservative view of the likely residual impacts, to identify standards of performance which the Project will meet where firm predictions cannot be made, and to propose monitoring and further contingency measures.
In order to facilitate decision-making, areas of uncertainty, data gaps and deficiencies, and additional work required during further stages of Project development have been highlighted within the report.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 4-11
4.7 MANAGEMENT AND MONITORING
A range of different measures to mitigate impacts have been identified through the assessment and the developer is committed to their implementation within the Project. Within the EIA, these measures are set out in the Project description and the specialist chapters of the report and, to assist the reader, they have been brought together in the Environmental Mitigation and Monitoring Chapter (Chapter 7 of the EIA). Included in the Environmental Mitigation and Monitoring Chapter is the Environmental Protection Plan (EPP) as specified in the applicable EIA guidance documents referenced previously. The EPP is provided in tabular format for ease of use and quick referencing with the identified impacts in Chapter 6 of the EIA report.
Within the SIA, the measures for addressing impacts from the Project on the human environment are included in a draft Benefit and Impact Plan, which forms the basis for negotiating the Impact Benefit Agreement between the client and applicable Greenland authorities. A draft Monitoring Plan is also included within the SIA which sets out the necessary actions for measuring the implementation of the programmes in the Benefit and Impact Plan.
Based on the Monitoring Plan, an Evaluation Plan is also implemented in order to propose how the monitoring results should be evaluated and whether monitoring needs to be supplemented or adjusted, and if the Benefit and Impact Plan is sufficient and realistic etc.
4.8 REPORTING AND NEXT STEPS
The EIA and SIA reports will be submitted by Capricorn to the Greenland authorities (specifically the Bureau of Minerals and Petroleum) as part of the application to undertake exploration drilling activities. Also included within this application will be details of the Capricorn drilling management team, drilling contractor, emergency response procedures, Capricorn Corporate Responsibility ‘Guiding Principles’, company HSE policies and commitments, detailed oil spill response plan and Capricorn’s corporate management structure.
Public presentations giving the details of the Project have been undertaken as part of the Social Impact Assessment. Details of this and other stakeholder engagement activities are provided within the SIA report.
Subsequent dissemination of the EIA and SIA is managed by the Bureau of Minerals and Petroleum and it is understood that the documents will be made available for public release by the Greenland authorities.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 4-12 5 SOCIO-ECONOMIC BASELINE DESCRIPTION
5.1 INTRODUCTION
This Chapter describes existing baseline socio-economic conditions in the proposed Project area. The analysis includes a description of:
Administrative Setting and Territorial Organization; Demographic Profile; Social Networks and Vulnerability; Economy and Employment; Education, Training and Skills; Infrastructure; Security.
5.1.1 Project Study Area
The study area for the social baseline is focussed on the Project area, which consists of the municipality of Qaasuitsup, with particular attention paid to the towns of Ilulissat and Aasiaat, where some on-shore Project facilities may be located. Where information is available, it is also included for the towns of Qeqertarsuaq, Kangaatsiaq, Uummannaq, Upernavik, Kangaatsiaq, and Qasigiannguit.
The municipality of Qeqqata is also considered in this report, in terms of impacts to Sisimiut, from where significant quantities of Greenland-based services and materials will be sourced, and Kangerlussuaq, which will be the transit gateway for rotational workers entering and leaving Greenland. If onward air travel is delayed, these rotational workers will be temporarily accommodated in Kangerlussuaq or on a wareship in Aasiaat.
The Project area, including the municipalities and towns listed above, is located along the north western coastline of Greenland The map in Figure 5.1, below, illustrates the Project-affected area, including the municipalities of Qaasuitsup and Qeqqata, with the towns assessed in this baseline.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-1 Figure 5.1 Project-Affected Area
Source: nunagis.gl (2010)
A small project office (with one foreign and one local representative) will be based in the capital of Greenland, Nuuk. This city is discussed where administrative capacity will be affected by the Project, and where relevant as a comparative tool in analysis of the municipal context.
5.1.2 SIA Methodology
The information included in this chapter has been gathered from the following sources:
Desk-top studies and literature reviews using published documents and the results of previously conducted studies in the area, including (but not limited to):
o (Mobilitetsstyregruppen) “Mobilitet I Grønland” (Mobility in Greenland); o (Statistics Greenland) Greenland in Figures Annual Reports, 2008 and 2009; o (Statistics Greenland) Market Analysis of Tourism 2006-07, July 2008; o (R J Pember) Labour Statistics in Greenland - Review And Recommendations, August 2007;
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-2 o Act of Greenland Self-Government: Act no. 473, 12 June 2009; o (Stefansson Arctic Institute) Arctic Human Development Report, 2004; o (Directorate for Culture, Education, Research and the Church; Directorate for Business, Agriculture and the Labour Market; Directorate of Economics) Progress Through Training, Education and Development of Competencies. 2004; o (The Greenland-Danish Self-Government Commission) Report on Self- Government in Greenland, Executive Summary, April 2008 o (Ministry of Foreign Affairs of Denmark) Factsheet Denmark – Greenland (June 2008) o www.nunagis.gl (Greenland GIS Mapping Site); o www.bmp.gl (Bureau of Minerals and Petroleum); o www.climategreenland.com (COP15 Climate Greenland); o www.greenland.com (Official Tourism and Business site of Greenland); o uk.nanoq.gl (Greenland Self-Government site); o www.stat.gl (Statbank Greenland); o www.kanukoka.gl (KANUKOKA website); o www.qaasuitsup.gl (website for Qaasuitsup Kommunia); o www.aasiaat.gl (website for the former municipality of Aasiaat); o www.ilulissat.gl (website for the former municipality of Ilulissat); o www.disko.gl (website for tourism agency Destination Disko).
A social baseline data gathering mission, which was undertaken February 2010, involved key stakeholder meetings in the following locations:
o Nuuk (with GA; NUSAKA; SIK, KNAPK, Air Greenland Travel, Vejle Rejser, Tupilak Travel, Greenland Venture, Jern og metalskolen, skipperskolen i Paamiut; Air Greenland; Royal Arctic Line; ICC (1); Beredskabskomiteen; AvataQ; Ministry for Internal Affairs, Environment and Nature; Ministry for the Premier; Ministry for Financial Issues; Ministry for Infrastructure, Housing & Traffic; Ministry for Fishing, Hunting & Agriculture; Ministry for Health & Social Affairs; Ministry for Industry and Labour; Ministry of Education, Culture, Church and Science; KANUKOKA; BMP) o Ilulissat (with Municipal Administration and Offshore group; Police station; GA; INI; Disko Line representative; and Steen Bangsgaard) o Uummannaq (with town administration; politicians; and Hans Pavia Kristjensen) o Aasiaat (with Chamber of Commerce; Ejnar Østergaard Madsen) o Qasigiannguit (with town administration; and Lars Olsvig) o Qeqertarsuaq (with town administration; Jens Salling) o Sisimiut (with town administration; port authority; airport authority [GLV]; Chamber of Commerce; fire and police; Piareersarfiit)
(1) Based on institutional disapproval of the engagement process within the Act on Mineral Extraction (2009), the ICC has declined to engage formally in the SIA process for this project.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-3 During the same social baseline data gathering mission, focus group discussions were held in the following locations:
o Ilulissat (with local tourism operators); o Uummannaq (with local business managers; citizens) o Aasiaat (with unemployed residents; fishermen and hunters) o Qasigiannguit (with business managers) o Qeqertarsuaq (with local business managers)
5.1.3 Limitations
This baseline presents an analysis of the current socio-economic situation as relevant for the proposed Project, making use of existing information and data.
Where possible and appropriate, statistical evidence has been used in the analysis. It is important to note that statistical data collection in Greenland is challenged by changes to the framework of information collection, such as the administrative reorganization of the country in 2009, and by low resources to meet demands. Inconsistencies in data collection and reporting may exist between the national level and municipal level, as well as within the municipalities themselves. This challenges comparative data analysis, as well as effective trend assessment. Where specific data issues exist, they are highlighted and explained in the relevant sections of this report.
The baseline study was undertaken at a level that is appropriate to the scale of proposed Project activities. As an offshore, temporary project with limited on- shore presence or associated interaction with social groups, the scale of potential impacts and affected stakeholders is reduced. Stakeholder engagement and data gathering undertaken as part of the baseline study was commensurate with the scale of the Project; however, it was not possible to engage all stakeholders identified as part of the early Project scoping exercises in all towns of the Project area during the baseline mission; these stakeholders include:
o Women focus groups; o Tourism workers outside of Ilulissat; o Health care workers in the Project area.
After submission of this SIA to the Greenland Government, the report will be made available for public review through a public hearing process during March 2010, several months ahead of the planned operations. Feedback from disclosure consultations will be incorporated into the final version of the SIA
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-4 5.2 ADMINISTRATIVE STRUCTURE & TERRITORIAL ORGANIZATION
5.2.1 Territorial Divisions in Greenland
Until 2009, Greenland was divided into three counties (West Greenland, East Greenland and North Greenland), which in turn contained 18 municipalities. Following an administrative reorganization on 1 January 2009, the counties were eliminated and the divisions merged into four municipalities: Kujalleq, Qaasuitsup, Qeqqa, and Sermersooq. The Northeast Green land National Park is not part of any municipality. Maps in Figure 5.2 outline the municipal divisions before and after the 2009 reorganization.
Figure 5.2 Municipalities in Greenland
Pre-2009 Post-2009
Source: nunagis.gl (accessed 10 February 2010)
At the local level, municipalities are further divided into populated areas designated as towns, settlements and trading posts, which are the smallest category of populated area (so-called because they have insufficient inhabitants to maintain the status of settlement and thus do not have a permanent store).
Settlements and trading posts are generally oriented around towns, which provide services that can not be sustained by the smaller populations (eg some medical services, higher levels of basic education, etc).
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-5 5.2.2 Administrative Structure
National Government
Greenland was colonised by Denmark at the beginning of the 18th century; it remained a Danish colony until 1953, when it became a province of Denmark. In 1979, Greenland acquired Home Rule, giving Greenland the right to elect its own parliament and government. Since 1985, Greenland has obtained special arrangements with the EU and is now included as one of the Overseas Countries and Territories enjoying association arrangements (special relations).
On 21 June 2009, Self Governance was introduced to Greenland through the Act on Greenland Self-Government, which replaces the previous Home Rule Government with the Greenland Government (“Naalakkersuisut”) (1). While technically still a part of the Kingdom of Denmark (2), this Act recognizes the people of Greenland as distinct under International Law, and increases Greenland’s jurisdiction over territorial affairs (3). It also gives Greenland the option to obtain control over certain government affairs, including mineral resources, policing and judicial affairs (4).
Executive power is held by the Danish government, but legislative power is vested in both the government and th e Parliament of Greenland (“Inatsisartut”). The Parliament has 31 directly elected members who are normally elected for a period of four years (5). The most recent election was held on 2 June, 2009 (6), when the Inuit Ataqatigiit (IA) party won the election with 43.7 percent of votes, pushing the ruling Siumut party into second place with 33 percent of votes. A Coalition Agreement between the majority IA and the Democrats (9 percent), and Kattusseqatigiit parties (3 percent) was established on June 10th, 2009 (7). The Chairman of the IA party, Kuupik Kleist, became Prime Minister on 12th June.
The Parliament is responsible for appointing the Premier, who then appoints his Cabinet of ministers. The Cabinet is responsible for the daily operations of the Government of Greenland. Following Cabinet reform as part of Greenland Self-Rule and there are now nine Ministries (8) listed below in Figure 5.3, with Ministers as of February 2010 in brackets:
(1) The Greenland-Danish Self-Government Commission, Report on Self-Government in Greenland, Executive Summary, April 2008. (2) As such, Queen Margrethe II of Denmark is the Head of State for Greenland. (3) Denmark retains control over some aspects, such as military and consular affairs, airspace use and far-coastal search and rescue. (4) Transfer of authority is to be negotiated over time. See Act of Greenland Self-Government (Act no. 473 of 12 June 2009). For example, the Bureau of Minerals and Petroleum was transferred to within the Greenland Government 1 Jan 2010. (5) Elections must be called within a four year period, and may be called at any point during those four years. (6) BBC news, Opposition win Greenland election, http://news.bbc.co.uk/2/hi/europe/8080434.stm (accessed 10 February 2010) (7) Nanoq, New Greenland Government to focus on solidarity and equality http://uk.nanoq.gl/Emner/News/News_from_Government/2009/06/solidarity_and_equality.aspx (accessed 10 February 2010) (8) Nanoq, Government http://uk.nanoq.gl/Emner/Government.aspx (accessed 10 February 2010)
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-6 Figure 5.3 Organization Chart (September 2009)
Source: Government of Greenland uk.nanoq.gl/Emner/Government/~/media/6D5F5384F7D74D7296870083C4AB8232.ashx (Accessed 17 February 2010)
Until recently, the Bureau of Minerals and Petroleum operated under joint direction of the Danish and Greenland (Home Rule) governments. As such, it developed a distinct set of procedures for the administration and execution of mining licenses in Greenland. Since the Act on Self-Rule (June 2009), however, the Bureau has moved under the full jurisdiction of the Greenland (Self-Rule) government , specifically the Minister of Industry and Mineral Resources. In November 2009 the new Mineral Resources Act was approved by the Greenland Parliament, defining management of mineral resources activities in Greenland (including on/ off-shore licensing, explorations and exploitation). The Act assigns all responsibilities for mineral activities to the Greenland Government; however the Mineral Resources Authority is the administrative and competent authority with regards to implementing the Mineral Resources Act.
While systems are still being aligned, there are currently no formal processes for collaboration between the Bureau of Minerals and Petroleum and other agencies within Self-Rule. (1)
(1) The BMP has developed processes for Environmental and Social Impact Assessment of all mineral and minerals related projects in Greenland. Although the Ministry of Environment is currently developing its own SEA procedure for Greenland, there are no clear plans to base this on the existing BMP procedures. Meeting with GHR SEA (Nuuk) 23 June and 22 September 2009 and BMP (Nuuk) 22 September 2009.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-7 Municipal Government
The municipalities are organized within an umbrella association, KANUKOKA (“Kalaallit Nunaanni Kommuneqarfiit Kattuffiat”), which represents the shared interests of the municipalities at the national level within the Self-Rule Government.
Each of the four municipalities in Greenland is run by a municipal council, headed by a mayor. In Qaasuitsup Municipality, the mayor is Jess Svane, while the mayor of Qeqqata Municipality is Herman Berthelsen. (1) The municipalities are responsible for the welfare of the local communities, including childcare, elementary school, culture and leisure as well as various social services.(2)
Municipal councils consist of representatives from across the municipality, which are elected for four year terms. The most recent elections in Qaasuitsup and Qeqqata Municipalities were held in 2009, and the next round of municipal elections is expected in 2013.
5.3 DEMOGRAPHIC PROFILE
5.3.1 Population Distribution
Statistics for 2009 report that the current population of Greenland is 56,194.(3) The overall population density of Greenland is very low, at 0.14 people per km2 of ice-free area, compared to 127.9 per km2 for Denmark (4).
Almost 60 percent of the total population live in the six largest towns (Nuuk, Sisimiut, Ilulissat, Qaqortoq, Aasiaat and Maniitsoq). (5) The remainder of the population live in approximately 60 settlements. As a consequence of government centralisation schemes and natural migration to improved services, infrastructure and employment opportunities, there is an ongoing trend toward increasing urbanisation. (6)
5.3.2 Population Distribution by Age
National Profile
The age distribution of the population of Greenland is illustrated below, in Figure 5.4.
(1) Positions are accurate as of February 2010 (2) Ministry of Foreign Affairs of Denmark, Factsheet Denmark – Greenland (June 2008) (3) Statistics Greenland, Greenland in Figures 2009, June 2009 (4) Statistics Greenland, Greenland in Figures 2009, June 2009 (5) Nanoq, Population, http://uk.nanoq.gl/Emner/About/Population.aspx (accessed 9 February 2010) (6) Ministry of Foreign Affairs of Denmark, Factsheet Denmark – Greenland (June 2008)
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-8 Figure 5.4 National Population by Age and Gender (2007)
67+
60-66
25-59
18-24
15-17 Age Group
7-14
0-6
60 40 20 0 20 40 Male 60 Percentage in Age Group Female
Source: www.statbank.gl (accessed 18 February 2010)
Based on the above figures, the age group of 25-59 represents the greatest proportion of the population, indicating a youthful population with higher availability of productive workforce. The gender breakdown of the population is fairly even, with slightly higher numbers of males. This changes, however, in the major age group of 25-59, when the gender balance leans heavily towards men. This is associated in part to women leaving Greenland in early adulthood in search of better opportunities elsewhere.
Lower population numbers in residents 24 and younger are associated with implementation of birth control programmes in the past few years, as well as increasing trends towards women waiting longer to have their first child, and having fewer children. Lower numbers of those aged 60+ is due in part to people moving to Denmark after retirement as a result of better living conditions and improved services for seniors.
Project Area
The population in the Project area is reflected in Table 5.1. The low population is clear when compared with the capital city of Nuuk, which contains approximately 27 percent of the population; Sisimiut, the second largest populated town in Greenland, has only 11 percent of the population, while Ilulissat and Aasiaat, the largest towns of Qasuitsuup municipality, contain 9 percent and 5 percent of the national population, respectively. As one of the smaller towns, Qeqertarsuaq is home to 1.8 percent of the population.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-9 Table 5.1 Population, Project Area (2009)
Location Number of Residents Greenland Total 56,194 Nuuk 15,105 Sisimiut 6,239 Ilulissat 4,958 Aasiaat 3,197 Upernavik 2,908 Uummannaq 2,339 Kangaatsiaq 1,353 Qasigiannguit 1,230 Qeqertarsuaq 957 Source: statbank.gl (22 February 2010).
The population breakdown at the local level is broadly reflective of the national profile. Figure 5.5, below, provides a 2007 population pyramid for the municipality of Qasuitsuup.
Figure 5.5 Municipal Population by Age and Gender (2007)
67+
60-66
25-59
18-24
15-17 Group Age
7-14
0-6
60 40 20 0 20 40 60 Male Percentage in Age Group Female
Source: www.statbank.gl (accessed 18 February 2010)
5.3.3 Ethnicity
The indigenous Inuit are estimated to constitute approximately 85 percent of the population of Greenland, and are culturally similar to Inuit peoples in the Arctic regions of Canada, Alaska and Russia. The remainder of the population is primarily of Danish descent. (1)
It should be noted that data collection and interpretation in Greenland is challenged by current methods, which are summarised in Box 1.1.
(1) Ministry of Foreign Affairs of Denmark, Factsheet Denmark – Greenland (June 2008)
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-10 Box 5.1 Statistical Methodology in Greenland
Classification of the population according to ethnicity is a sensitive topic, due in part to prejudices and privileges that were established under Danish colonialism. As such, existing data collection methods differentiates only between people born in Greenland, and people born outside of Greenland.
This initial categorisation has significant implications for interpretation of all associated statistics in Greenland, including migration, employment, and education figures. This is acknowledged to be an issue in the statistical methodology of the country, and efforts to address these challenges are ongoing.
Relations between Danish and Greenlandic residents tend to be calm; there are few overt indications of tension and intermarriages are common. However, there are subtle undertones of division between the two groups, often based on historic colonial attitudes on both sides and manifested in generally segregated social circles and language.
5.3.4 Language and Communication
National Profile
The Act on Greenland Self-Government (June 2009) made Greenlandic the sole official language of the country. (1) All official documents and communication must be made available in Greenlandic, and people must have the opportunity to communicate in Greenlandic in formal discussions. Nevertheless, there is a minority population that speaks only Danish, and these stakeholders are also recognized by national processes. (2) In practice, however, translation can be a challenge, and the quality of Greenlandic language versions, when available, is not always to a high quality. (3)
Due to the traditional education system, which is based on the Danish model, most Greenlanders speak some Danish, although this is less common in settlements. The majority of people with Inuit ancestry speak Greenlandic, while few Danes speak this language. This has implications for access to education and employment opportunities, which often require written and spoken Danish language. Those from settlements and smaller towns are most seriously affected, as these are the areas where Danish is either not taught, or where the level of instruction does not provide fluency. These language barriers are also perceived to perpetuate advantages of Danish residents.
Project Area
Official statistics do not break down languages spoken by the population. A recent study estimated the language profile of Greenland’s towns and settlements;(4) the concluding tendencies from this study were that larger
(1) Article 20 of the Act on Greenland Self-Government. Prior to the Act, Danish also had status as an official language. (2) For example, Article 2.1 of the BMP SIA process stipulates that communication be undertaken in both Danish and Greenlandic. (3) Meeting with Ministry of Environment (Nuuk). 2 February 2010. (4) Befolkningsundersøgelsen i Grønland 2005-07, Bjerregaard et al. (2008)
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-11 towns are more likely to have both Danish and Greenlandic speakers, while smaller towns are generally Greenlandic speaking (see Table 5.2). This has implications in the Project area, where populations outside of the larger towns (Sisimiut, Ilulissat and to some extent Aasiaat) are less likely to have working abilities in languages other than Greenlandic.
Table 5.2 Language Skills
Only Greenlandic Greenlandic and Danish Only Danish Greenlanders: Nuuk 15,4 81,3 3,3 Big cities 32,2 67,2 0,7 Small cities 42,2 57,8 - Settlements 72,5 27,5 - Danes: 11,0 89,0 Source: Bjerregaard et al. (2008)
Communication
The national broadcast corporation, KNR (Kalallit Nunaata Radioa) has overall responsibility for radio and television services. Radio is an important medium in Greenland, and is often kept on in the background, at both homes and workplaces, throughout the day. Broadcasts are in Danish or Greenlandic, with Greenlandic dominating in local radio broadcasts outside of Nuuk.
There are two national newspapers in Greenland: Atuagagdliutit/Grønlandsposta and Sermitsiaq, both published in Greenlandic and Danish.
To date, information about industrial and extractive projects has been communicated to the population through technical publications, web resources (1) and public meetings. (2) Stakeholders have expressed that these communication methods are not very effective, for the following reasons:
Low levels of general understanding among the population, which limits their ability to contextualise and filter project information and forward looking statements;
Highly technical nature of information materials, which cannot be understood by the average person;
Non-inclusive and non-participatory nature of public meetings;
(1) Web resources include the website for the Bureau of Minerals and Petroleum (www.bmp.gl) and the site for the proposed Alcoa aluminium smelter (www.aluminium.gl), both of which include links to news and publications (2) The format of public meetings can vary, but generally consist of Project and Government representatives presenting the Project and associated studies to large, open attendance gatherings of community members. Participants are then given the opportunity to ask questions or comment on any component of the presentations. In most cases, public meetings target Project-affected areas through the towns.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-12 Inability of many people to navigate or, in some cases, access web-based resources;
Accelerated schedules that do not allow time for the review, consideration and communication necessary for full stakeholder understanding of the project.
5.4 SOCIAL NETWORKS AND VULNERABILITY
5.4.1 Social Networks
Family is very important in Greenland, and family relations form the basis of social networks, even in some of the larger towns. Particularly in settlements, most residents will be related in some way to a major family group; these ties are very important for establishing loyalty, responsibility and status.
As indicated in Table 5.3, these family networks exert stronger influence on leisure activities than in Nuuk. This is due in large part to closer physical proximity of people to relatives in settlements.
Table 5.3 Frequency of Family Gatherings (percent)
Nuuk Cities Settlements Males Females Males Females Males Females Every day or at least once a week 69.7 66.5 74.8 72.4 84.0 76.7 Every month 14.0 14.9 9.0 8.5 4.6 5.6 Rarely or never 16.3 18.6 16.1 19.1 11.4 17.7 Total 100 100 100 100 100 100 Source: Bjerregaard et al. 2008
5.4.2 Civil Society
Civil society, through non-governmental activity, is not very well developed or active in Greenland. There are a small number of organizations operating in the country that advocate for environmental and social rights, which frequently collaborate with organisations and individuals within Greenland and internationally. These organizations include:
AvataQ - a small (20 members) environmental organization based in Greenland, with a focus on the Greenland environment. The organization engages in awareness campaigns through letters, articles and participation in conferences. (1)
Inuit Circumpolar Council - (ICC) is an international organization, working across countries of the circumpolar region (including Canada, Alaska, Russia and Greenland) to represent Inuit rights and interests
(1) Meeting with representative of AvataQ (Nuuk). 1 February 2010
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-13 internationally, including protection of Inuit land. The organization has a special consultative role with the UN, and is a permanent participant in the Arctic Council. (1)
Earth Charter Initiative - a global network formed to promote the Earth Charter and support environmental sustainability, human rights and peace. The Initiative has a local office based in Greenland.(2)
Each of these organizations has publicly expressed concern about the development of the oil and gas sector in Greenland; while they do not oppose development in general, it is felt that decision making processes are not transparent, that the current approval process does not require effective public participation, and that resources are not being appropriately allocated to study the impacts of oil and gas developments and possible design alternatives. (3)
5.4.3 Vulnerability
Vulnerability is an important consideration in Greenland, where the population is undergoing dramatic changes at the levels of environment, politics, culture, and demographics. Vulnerable populations are those who are more likely to bear negative impacts – and face challenges in accessing the benefits – of development. These groups often need additional, targeted support in order to adapt to changes.
Stakeholders at both the national and local levels identified a number of factors that are often interrelated, which contribute to vulnerability in the country. These are described below.
Social Problems
“Social Problems” is a term used to describe a wide variety of issues, including backgrounds of abuse, alcohol or drug problems, depression or issues such as divorce or the death of a relative. In more severe cases, social problems can result in behavioural or mental problems that prevent individuals from acquiring necessary training, securing or maintaining steady income, or even functioning successfully in society. Social problems of this nature are also considered likely to affect future generations and create an ongoing burden on the state, (4) as children grow up in families that are often low-income, and may themselves be victims of neglect or abuse.
(1) ICC website (www.icc.gl). Accessed 20 February 2010 (2) Earth Action Initiative website (www.earthcharterinaction.org) . Accessed 20 February 2010 (3) Earth Action, “The Narsaq International Earth Day Recommendations 2008” (www.earthcharterinaction.org/content/attachments/1/Greenland%20Workshop_conclusions1.doc). ICC, “Inuit Call to Global Leaders: Act Now on Climate Change in the Arctic”, 13 November 2009 (www.inuitcircumpolar.com/files/uploads/icc-files/PR-2009-11-13-call-to-action.pdf). Both sitesaccessed 22 February 2010. Meeting with AvataQ (Nuuk) 1 February 2010. Meeting with ICC (Nuuk) 2 February 2010. (4) Meeting with Town Administration (Qeqertarsuaq) 8 February 2010
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-14 In recent years, there has been an intensification of efforts within the municipalities to identify and address these issues, and support resources include family counselling centres, psychologists, social workers, as well as increased training for teachers to identify cases of abuse. (1) Nevertheless, current capacity is still considered to be inadequate, (2) particularly in the settlements, where people often have to travel to seek professional support, and additional resources are required, particularly at the school level.
Changing Lifestyles
The population of Greenland has traditionally been characterised by its isolation and close reliance on nature for culture and livelihood. Changes in the economy and climate of Greenland are resulting in declining viability of fishing and hunting as an income-generating occupation. Stakeholders throughout the region have identified fishermen and hunters as a key vulnerable group, for the following reasons:
It is often difficult for hunters and fishermen, particularly older individuals, to surrender the freedom of their lifestyle and adapt to regular, scheduled work;
Many hunters and fishermen are resistant to initiatives that would update their qualifications and provide them with training to change livelihoods;
Hunters and fishermen are often rural, and lack access to training and alternative employment. (3)
As a result, it is felt that people who currently rely on the land for their livelihood are most vulnerable to ongoing changes that are occurring at a national level.
Low Education
Low education is a factor that combines with other elements of vulnerability to exacerbate challenges. There are particular population groups who are more likely to have low levels of education, including rural populations (who lack access to education infrastructure), hunters and fishermen, and people with a background of social problems (which prevent them from performing well or completing their education).
Under-educated people are less able to access information about proposed developments, particularly when materials are not provided in Greenlandic or are highly technical, and are therefore unable to contribute to the consultation and decision-making processes. Moreover, under-educated people lack the qualifications to apply for employment opportunities that result from new
(1) Meeting with Chamber of Commerce (Aasiaat). 7 February 2010 (2) Meeting with AvataQ (Nuuk). 1 February 2010 (3) Meeting with Chambers of Commerce (Ilulissat) 4 February 2010, (Aasiaat) 7 February 2010, (Sisimiut), personal communications, 2009.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-15 developments. These groups require targeted consultation, to engage them in the process, and comprehensive capacity building and training programmes that will provide them with the skills needed to compete for available local jobs. (1)
Unemployment
As mentioned in section 1.6, unemployment and underemployment are key concerns for the government of Greenland. The unemployed/ underemployed population of the country is characterised by low levels of education, social problems and their prevalence in rural settlements.
When unemployment is extended, it can lead to depression and low motivation. Unemployed stakeholders in Aasiaat felt that things are changing so quickly – it is difficult to keep up with new requirements and expectations when one is not integrated in the job market. (2) Not only does this prevent the unemployed from actually benefitting from job creation, but it also affects their ability to engage objectively in engagement activities: these groups are more likely to cling to promises projected by project promoters around potential job creation and are less likely to ask questions or express scepticism. (3)
In order to deliver on promises of local employment, efforts are needed to engage unemployed groups through existing training structures and provide them with the qualification needed to be competitive in the job market.
The significance of employment, both as a cause and effect of vulnerability, is a key consideration in Greenland. These are the first groups to lose employment during times of economic hardship, and they are the last to recover. Job creation, and facilitated access to jobs through training and preparatory programmes, are therefore a critical element in providing support to vulnerable members of Greenlandic society.
5.4.4 Types of Social Assistance
People in Greenland can be entitled to three types of social assistance when they are unable to earn an income. These are:
Unemployment benefits: provided to unionised workers who are temporarily unable to work; eligible workers must have worked a minimum of 13 consecutive weeks. (4)
Social benefits: paid to those who don’t work but are not entitled to unemployment benefits (e.g. those who have not worked for 13
(1) Meeting with SIK (Nuuk) 1 February 2010 (2) Meeting with unemployed people (Aasiaat) 6 February 2010 (3) Meeting with ICC (Nuuk) 1 February 2010 (4) Unemployment benefits are based on minimum wage for the position worked during the last 13 weeks of paid employment, and can be claimed for a total of 13 weeks within one year.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-16 consecutive weeks); there is no limit to how long a person who is not working can stay on social benefits. (1)
Pre-pension benefits: a medical classification for those who are assessed to be mentally or physically unable to work. (2)
5.5 ECONOMY
5.5.1 Overview
Greenland’s economy differs from other western economies in its geography, climatic conditions and low population density. The domestic market is relatively limited and highly dispersed.
Macroeconomic Issues
The fishing industry is the leading sector with derived effects on the rest of the economy. That makes Greenland highly dependent on developments in the prawn and fish stocks as well as the world market price of fish and fishery products. Developments within the fishing industry have thus contributed to the relatively large cyclical fluctuations experienced by Greenland (see Figure 5.6).
Figure 5.6 Annual Real GNP Growth (1995-2006)
pct. 10
8
6
4
2
0
-2 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Source: Statistics Greenland, National Accounts
The dependency on fishery is also reflected in the fact that fishery products make up almost 90 percent of Greenland’s export (see Figure 5.7)
(1) Depending on an assessment of the individual’s ability, they may be required to register for employment every two weeks; in the event that employment is secured, benefits cease. (2) Unlike other types of assistance, which are paid by the municipality, pre-pension benefits are paid by the Self-Rule Government.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-17 Figure 5.7 Greenland’s Export Distributed by Goods (2008)
Shrimp Halibut Crab Cod Other species Ore etc. Other
Source: Statistics Greenland, Foreign Trade (2009:1)
Apart from fishery, the economy is affected by transfers from Denmark. Block grants total approx. DKK 3.5 billions a year. In addition to that, the Danish Government finances other tasks, such as fisheries inspection, police and judicial system and meteorology.
These expenses total approx. DKK 800 million a year, and the total transfers from the Danish Government thus total DKK 4.3 billion a year. Block grants and other government transfers have, on the whole, been constant in real terms since the end of the 1980s.
Greenland further receives transfers from the EU amounting to a little more than DKK 300 million a year. About half of that constitute the payment for fishing quota, enabling foreign vessels to fish in Greenland waters, whereas the other half is budget support.
Generally seen the transfers mean that Greenland’s gross disposable national income (disposable GNI) is significantly larger than the total production (GDP). From a growth perspective, the fact that the transfers constitute such a large part of the total economy and have been constant in real terms, has the important consequence that they work as a stabilising factor in the economy.
Even though exports of fish and fishery products are large, imports are even larger, and Greenland has seen a deficit in the balance of goods and services of between 10 and 20 percent of the GNP during the period 2000 to 2006. A surplus in connection with transfers (in particular the block grant) totals approx. 40 percent of the GNP, meaning that the surplus on the balance of payments has been 15 - 25 percent of the GNP, however with a downward trend (see Figure 5.8)
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-18 Figure 5.8 Balance Of Payments in Percent of GNP (2000-2006)
Balance of Payments in % of the GNP 2001-2006
50,0%
40,0%
Balance 30,0%
20,0% Goods and services
10,0% Transfers
Percentage of GNP Percentage 0,0% 2001 2002 2003 2004 2005 2006 Property income and pay to -10,0% employees
-20,0%
-30,0%
Source: Statistics Greenland, Balance of Payments (2006)
As opposed to other small economies that depend on export of fish products and/or raw materials, inflation has been moderate throughout many years, even though it increased temporarily in 2008 (see Figure 5.9)
Figure 5.9 Inflation in Greenland (1996-2009)
Inflation Greenland 1996 - 2009
10,0%
9,0%
8,0%
7,0%
6,0%
5,0%
4,0%
3,0%
2,0%
1,0%
0,0% 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Inflation Greenland
Source: Statistics Greenland
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-19 Standards of Living and Income Distribution
The total income per inhabitant is only slightly lower than in the other Nordic countries (see Figure 5.10). However, the price level is relatively high, for which reason the number in the figure overestimates the purchasing power from income in the case of Greenland.
Figure 5.10 GNI per Inhabitant for Selected Countries (2003)
USA =100 100
80
60
40
20
0 USA Norw ay Iceland Denmark Canada Sw eden Finland Greenland
Source: Statistics Greenland, Statistical Yearbook 2007
The fact that income per inhabitant is at a relatively high level, does not mean that everyone in Greenland is well off. The Gini coefficient (1) shows that the income distribution (2) is somewhat more uneven than in the Nordic as well as the Central European countries (see Figure 5.11).
(1) The Gini coefficient is a measurement of the degree of income inequality. It has the value 0 if everyone has the same income and the value 1 if one person has all income. (2) There are methodical problems attached to this type of comparisons. It must, for example, be presumed that many persons in the remote districts with low income live partly from hunting and fishing for their own consumption. Furthermore, the public sector in Greenland provides a large number of services (such as education, medical or dental treatment) for free
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-20 Figure 5.11 The Gini Coefficient for Selected Countries (2007)
Gini-coefficients 2007
0,45
0,4
0,35
0,3
0,25
0,2 Coefficients
0,15
0,1
0,05
0 Greenland Denmark Sweden Norway Iceland OECD UK USA average
Source: Statistics Greenland, Indkomster 2009:2
5.5.2 Major Industries and Business
From Figure 5.12 it can be seen that the public sector and block grants etc. make up approximately half of the total income. The fishing industry is the largest single sector, particularly when combined with land-based trades.
Figure 5.12 Distribution of Total Income
Block grants, EU etc 19% 27% Public sector etc. 2% Fishery trade 8% Raw material extraction
2% Building and manufacturing 25% Tourism 17% Other land-based trades
Source: Grønlandsbanken, Annual Report (2007)
Currently, growth is also underway in the mineral extraction sector, with further plans for development of the tourism industry in Greenland.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-21 These sectors of activity are described below, broadly categorised into fishing and hunting, minerals and petrochemicals, small business/ private enterprise, tourism and hospitality, and public service.
Hunting and Fishing
Hunting and fishing accounts for over 1,450 officially registered jobs in Greenland.(1) Apart from being a large sector of commercial income, hunting and fishing are practiced privately for selling locally or subsistence and provides households with a significant portion of their income. Although the popularity of hunting and fishing as an occupation is declining overall, it is still important in rural areas, where alternative employment is less available.
The three large fishing companies operating in Greenland are as follows:
Royal Greenland A/S is the world’s largest retailer of cold-water prawns, which are sold on the northern European market.(2) The company has four larger plants in Greenland, including in Sisimiut and Nuuk (3).
Arctic Green Food A/S, which has its head office in Maniitsoq, deals with production, quality control of domestic products, product development and domestic sales. Arctic Green Food manages approximately 25 small factories in settlements and small towns in Greenland. (4)
Polar Seafood A/S manages a number of trawlers and plants for processing seafood, especially prawns, in Greenland and Denmark.(5)
Both Royal Greenland and Arctic Green Food are public companies, owned by the Self Rule Government, while Polar Seafood is a private company.
In the Project-affected area, fishing is considered to be the main sector of income. The majority of local fishing vessels are small-scale operations, though large commercial companies also work in the waters off the Project area. The main fish species include halibut, scallop, snow crab and shrimp. To a lesser extent, lumpsucker fish is harvested along shoreline areas. As demonstrated in Figure 5.13, fishing activities are focussed primarily along the inshore areas, which are accessible to both commercial and small-scale fishermen. Deeper waters are fished by commercial trawlers, and the area near the drilling licence is fished for halibut from mid-July until mid-November. (6) Fishermen consulted in this study felt that ongoing communication would be
(1) Statistics Greenland, Greenland in Figures 2009, June 2009 (2) Ministry of Foreign Affairs of Denmark, Factsheet Denmark – Greenland (June 2008) (3) Royal Greenland Where to Find Us, http://www.royalgreenland.com/en/Our-company/Where-to-find-us.aspx (accessed 10 February 2010) (4) Arctic Green Food, About Arctic Green Food http://www.arcticfood.gl/?GB/About%20Arctic%20Green%20Food.aspx (accessed 10 February 2010) (5) Ministry of Foreign Affairs of Denmark, Factsheet Denmark – Greenland (June 2008) (6) Fishing seasons for small-scale fishermen are longer. Department of Fishing, Hunting and Land Use (Nuuk) 2 February 2010.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-22 important; however, they did not feel that drilling activities would be a serious concern to commercial fishing activities. (1)
Figure 5.13 Fish Landings in Project Area (kg)
Source: ERM 2010
Hunting seasons are established according to the category of hunting licence (see Table 5.4). Seasons for commercial and recreational hunting can be contracted or extended by the Ministry for Fisheries, Hunting and Agriculture on an annual basis, based on animal populations at the time.
Table 5.4 Hunting Seasons
Winter Season Dec Jan Feb March April May Trophy hunting 15/03-15/04 Recreational hunting No winter season Commercial hunting 15/01 –15/03
(1) Meeting with representatives of fishing organizations KNAPK, Royal Greenland and AP (Nuuk) 2 February 2010
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-23 Summer Season June July Aug Sep Oct Nov Trophy hunting 1-31/07 Recreational hunting 1/08 – 15/10 Commercial hunting 1/08 – 15/10 Source: Department of Tourism and Business (Nuuk) personal communication
The most common game in the municipalities of Qaasuitsup and Qeqqata are reindeer, muskox, and seabirds. Figure 5.14 and Figure 5.15 illustrate the general areas of significance for these species along the west coast. Other species not represented in the table include seals, walrus and whales, which are hunted along the western coastline. Data on these species is sparse and poorly represented.
In addition to the income generated from commercial hunting from the sale of meat and skins, this activity is an important source of livelihood, as it supplements the food supply of both the hunters and those who may receive gifts of meat (often friends and relatives of the hunter). Hunting is also considered to be a critical element of Greenlandic culture, and by-products of hunting are used extensively in clothing, jewellery and other decorative items.
Figure 5.14 Hunting Areas – Muskox and Reindeer
Source: ERM 2010.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-24 Figure 5.15 Hunting Areas - Seabirds
Source: ERM 2010
Commercial hunters and fishers (those who earn at least 50 percent of their total income from hunting and fishing) must sell meat at the trading posts (brædtet) or (for fishermen) at the fish factories. Strict requirements are enforced at the brædtet to control the quality and safety of meat, (1) although people in the settlements have complained that requirements are too strict and make it difficult for local hunters and fishers to earn a living. (2) Fish plants, meanwhile, are susceptible to the demands of the international market and are not stable. In the past few years, several fishing plants have closed along the coast, putting many hundreds of people out of work. (3)
In addition, impacts from climate change (see Box 1.2) are being felt acutely among fishermen and hunters in Greenland, as the numbers and movements
(1) These include rules around the storage and transport of meat, and the term within which meant must be brought to market after being killed. For example, reindeer must be traded within 24 hours of being killed, and must be sold with all internal organs (except for the large intestine). Hunters (Qeqqata municipality), personal communications, 2009. (2) For example, if a hunter has had to travel far to find reindeer, it may be difficult for him to make it to a town with a brædtet within 24 hours. Weather is often an obstacle. Hunters (Qeqqata municipality), personal communications, 2009. (3) See meeting with hunters and fishermen (Aasiaat) 7 February 2010.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-25 of fish and animals are being affected by melting glaciers, warmer summers and water temperatures. Although people report greater availability of some species (including reindeer, salmon and cod), conditions are becoming unstable as a result of changing weather conditions. Stakeholders in Aasiaat reported that there has been a 50 percent decline in seal hunting compared to 2-3 years ago, and that seals do not follow the same routes as they used to; it was not known why this is occurring.(1) Impacts of such changes are significant, as hunters practice their trade using traditional knowledge around movements of seals and other species. (2)
Box 5.2 Climate Change in Greenland
Climate change is being felt acutely in the Arctic, including Greenland, where temperatures are increasing at higher rates than elsewhere in the world. Impacts from climate change are deeply interwoven and have been subject to intense scientific, political and environmental scrutiny. In brief, some of the climate-related issues facing Greenland include: Rising temperatures; Shrinking ice sheet; Increased rate of glacial “calving” (breaking off); Shorter winters/ longer summers; Receding Arctic sea; Rising sea levels; Changing sea currents; Changing conditions for flora and fauna.
These changes, and the follow-on impacts they engender, are affecting Greenland’s economy as well as traditional customs and livelihood activities, which are heavily reliant on the natural environment.
For more information on climate change and its impact in Greenland, see COP 15 – ClimateGreenland: www.climategreenland.com
As a result of these challenges, hunting and fishing is declining as a commercial occupation. While it remains an important source of supplemental income and subsistence as well as an integral aspect of cultural identity, young people are increasingly seeking employment in more formal sectors.
Minerals and Petrochemicals
In recent years there has been much focus on oil and mineral exploitation, and there are many promising projects. Figure 5.16 provides the licensing areas for mineral and petroleum activities at both the national level and in the Project area. So far, raw material extraction only constitute a small part of the economy; however, this is expected to change as extractive activities increase.
(1) Meeting with hunters and fishermen (Aasiaat) 7 February 2010. (2) Meeting with hunters and fishermen (Uummannaq) 5 February 2010
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-26 Figure 5.16 Minerals and Petroleum Licenses (2009)
Source: www.nunagis.gl (accessed 20 February 2010) – NOTE: site of proposed exploration drilling is marked with a star.
Legislation and approvals for mining and petrochemical projects mandate that local employment and contracting is maximised throughout the life of a project. In the olivine mine outside of Sisimiut about 80-90 per cent of a total staff of 30-40 persons are local people and in the goldmine in Southern Greenland 75 per cent of total employment is aimed to be local. Despite this, employment in the mining and extractive sector remains limited.
Factors that prevent increasing local workforce in mining and petrochemical projects include:
Local people face difficulties in meeting requirements of employment (such as specialised training, security clearance, or even written and spoken Danish/ English), and it can be challenging for foreign companies to understand how local employment should be maximised; and,
Many of the available workforce (including hunters and fishermen) who were able to qualify for employment find it difficult to adjust to the structured schedules, and leave their jobs.
An exception to general underemployment has been Sisimiut, where access to appropriate training facilities (through the Building and Construction school) has created a workforce better prepared to take advantage of growing employment opportunities.
In addition to direct employment associated with the mining and extractive sector, indirect benefits have been reported through servicing and supply
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-27 contracts. These types of contracts have been concentrated in Sisimiut, which has greater resources of service and supply companies.
Small Business/ Private Enterprise
The majority of private businesses in Greenland are small, with few medium- sized enterprises. Within the project area, the main sectors of business are construction and repair. Challenges facing private enterprise include:
Lack of available skilled workforce;
Challenges in retaining workforce – people do not like having to conform to regular routine, particularly in the summer;
Competition from government-owned companies, which are able to operate more cheaply than private companies;
Reluctance of banks to provide start-up financing (see section on financing, below).
There are few banks that are willing to provide loans for small and medium businesses. A Nordic bank called ‘West Nordic Fund’ provides financing for small businesses in Greenland; although it is considered a big lender, the total amount invested in Greenland last year was reportedly only DKK 100 million, primarily on building loans. (1) As such, even as a significant presence in business finance, it does not have adequate resources to meet current needs.
One alternative to bank financing is Greenland Venture – a government initiated agency that provides venture capital to help start up businesses with the necessary investment. Business owners with experience borrowing from Greenland Venture have expressed negative impressions of the organization, due to the influence it exerts as part of its support and for the cost involved in extricating themselves from this control.
The majority of businesses are associated within Chambers of Commerce or similar businesses organizations. These structures promote economic and industrial development in the municipalities, through training and capacity building, encouraging collaboration. Business associations in the Project area that are comparatively well developed are the Sisimiut Chamber of Trade and Industry, and the Ilulissat Chamber of Commerce (which exists within the local branch of the union GA).
Tourism and Hospitality
The role of tourism is modest, measured in relation to the total economy. However, it is important locally. A study carried out by Statistics Greenland(2) shows that some 49 percent of visitors to Greenland in 2007 stayed in the mid
(1) Small business owners and Chamber of Trade and Industry (Sisimiut), personal communications, 2009. (2) Statistics Greenland Market Analysis of Tourism 2006-07, July 2008
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-28 region of Greenland (which includes Qeqqata municipality), while 17 percent of visitors stayed in the Disko region (including Qaasuitsup Municipality).
Figure 5.17 Breakdown of Tourism by Region
Region Mid (Nuuk, Maniitsoq, 2% 4%1% Sisimiut and Kangerlussuaq)
Region East (Illoqqortoormiut, 17% Tasiilaq and settlement at Kulusuk)
Region Disko (Kagaatsiaq, Qasigiannguit, Aasiaat, Ilulissat, 49% Qeqertarsuaq) Region South (Nanortalik, Qaqortoq, Narsarsuaq, Ivittuut, Paamiut)
Region North (Uumannaq, Upernavik, Qaanaaq) 27% Not specified
Source: Statistics Greenland Market Analysis of Tourism 2006-07, July 2008 Note: This predates the redivision of municipalities in January 2009
Within the Project-affected area, tourism activities include dogsledding and skiing in the winter, hiking, whale watching, kayaking and sailing in the fjords in the summer, along with sports fishing and excursions to historical settlements and archaeological sites (including Ilimanaq and Oqaatsut). (1) Higher-level tourism infrastructure has been developed in the larger towns of Sisimiut, Ilulissat (2) and Kangerlussuaq.
Public Enterprise
The Government of Greenland is the (co-)owner of a number of enterprises that are privately owned in other countries (see Table 5.5). The large public commitment is historically founded and is partly linked up with the fact that a large part of Greenland’s enterprises are within, for instance, aviation, shipping and telecommunications, which are natural monopolies.
Table 5.5 The Largest Government-Owned Companies
Government of Greenland Net turnover in 2007, Company ownership share DKK million
Royal Greenland A/S 100 5,096
Royal Arctic Line A/S 100 793
(1) Meeting with town administration (Qeqertarsuaq) 8 February 2010 (2) Ilulissat is on the UNESCO list of World Heritage Sites and has a tourism infrastructure developed around the ice fjord.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-29 Air Greenland A/S 37.5 1,075
Tele Greenland A/S 100 668
KNI A/S (retail etc.) 100 2,068
Source: Government of Greenland (2008); Proposal for the Parliament Finance Act (2009)
5.6 EMPLOYMENT
5.6.1 National Profile
Employment in Greenland is characterised by a relatively low skilled labour force, which results in low levels of registered unemployment by creating an “employers’ market”, in which there are more jobs than there are people qualified for them. This is illustrated by official statistics, which reveal that almost 92.6% of the total available labour force is employed. Table 5.6 provides an overview of available official employment statistics for Greenland.
Table 5.6 Employment
2002 2003 2004 2005 2006 2007 Total population 56,542 56,676 56,854 56,969 56,648 56,648 Total labour force1 31,506 31,763 32,119 32,339 32,437 32,437 Employed labour force 28,840 28,979 29,409 29,783 30,058 - Employment rate 0.92 0.91 0.92 0.92 0.93 - Unemployed labour force3 2,666 2,784 2,710 2,556 2,379 2,199 Unemployment rate 8.5 8.8 8.4 7.9 7.3 6.8 Source: Greenland in Figures 2009, page 16 1 Persons aged 15-62 years, living in towns 2 Average number of persons out of work
It should be noted that official employment rates are based on the labour force in employment. Due to limitations in Employment Statistics (see Box 1.3), labour force numbers exclude many potential workers, including those in settlements or those born outside Greenland.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-30 Box 5.3 Employment Statistics in Greenland
Active population is calculated as all Greenlanders ages 15-62 and includes those in university or on social benefits. It excludes all those born outside Greenland. As such, the total calculated labour force includes those who are studying or otherwise unable to work, and excludes those who have moved to Greenland from outside.
In addition, some municipalities report those on social assistance as unemployed while others report only those who register with the labour office as unemployed. This is an acknowledged issue within StatsGreenland, and efforts are underway to address it.
A wider challenge, however, is the high degree of informal employment in Greenland, particularly in the settlements. This is reflected by the fact that population in settlements is not counted among the active population, and makes it difficult to effectively quantify employment rates throughout Greenland. (1) Source: StatsGreenland and Ministry of Social Affairs and Labour (Nuuk), personal communications 2009
Unemployment
Although the overall unemployment rates are not very high compared against many other nations at similar stages of development, unemployment and underemployment are a concern in the country, particularly among the unskilled workforce. Unemployment has been decreasing since 2002, particularly among women (see Figure 5.18). Higher unemployment among men is reportedly due in part to their greater numbers (particularly among working age populations) in Greenland, which means that men naturally form a higher proportion of the overall numbers of unemployed. This is further exacerbated by the fact that education levels are reportedly higher among women, giving them an advantage in available skilled jobs. (2)
(1) Statistics Greenland, Ministry of Social Affairs and Labour (Nuuk), personal communications, 2009. (2) Statistics Greenland (Nuuk), personal communications, 2009.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-31 Figure 5.18 Unemployment Rate
12 Unemployment rate Men 11 Women 10
9
8 Percent 7
6
5
4 2002 2003 2004 2005 2006 2007 Date
Source: Greenland in Figures 2009, page 16
5.6.2 Regional Employment
Within the Project-affected area there has been a gradual increase in the labour population, among both men and women. (1) Despite this, the number of registered unemployed has remained generally stable, indicating an unemployment rate that is gradually decreasing (see Figure 5.19).
Figure 5.19 Labour Force in the Project Area (Sisimiut, Kangaatsiaq, Aasiaat, Qasigiannguit, Ilulissat, Qeqertarsuaq, Uummannaq, and Upernavik)
7000
6000
5000
4000 Men Women 3000 Unemployed
2000
1000
0 1990 1995 2000 2005
Source: statbank.gl (accessed 25 January 2010) Note: The potentional labour force is defined by the number of persons aged 15-62 born in Greenland and living in towns January 1st.
(1) It is not known what caused the increase in labour force; it is possible that this was due to ongoing urbanization, as people who would not be counted among the labour force from settlements moved to towns.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-32
Employment within the Project-affected area remains predominantly seasonal (eg fishing and construction sectors), as demonstrated by the annual fluctuations in unemployment registration, indicated in Figure 5.20.
Figure 5.20 Registered Unemployment in the Project Area (Sisimiut, Kangaatsiaq, Aasiaat, Qasigiannguit, Ilulissat, Qeqertarsuaq, Uummannaq, and Upernavik) - 2008
1200
1000
800
600
400
200
0
t an eb pr ly ep J F Mar A u Oc May June J Aug S Nov Dec
Source: statbank.gl (accessed 25 January 2010)
A number of factors limiting the ability of unemployed people to take up jobs were identified by stakeholders. These can be summarised as follows:
Low levels of education (see Section 1.7); Lack of required skill levels, particularly languages; Lack of employment opportunities in the settlements; Lack of available housing and infrastructure in towns, preventing people from moving to growth areas for employment; Social problems that prevent applicants from taking advantage of training and employment opportunities; Inability to adapt to structure and scheduling of formal employment; Extended unemployment, leading to low motivation and depression.
5.6.3 Unionisation
Greenland has a strong union presence, and organization exists at all levels. The unions determine nearly all aspects of the occupational context, including salary, terms and conditions, and benefits. (1) Separate contracts are established for public and private sector employees. (2)
(1) Benefits include pension schemes, sick leave cover, medical support (for both employees and their families), and unemployment support. SIK (Qeqqata municipality), personal communication, 2009. (2) Although the terms and conditions are very similar, benefits for private sector employees are slightly better.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-33
Membership in any union is voluntary, and independent contracts can be negotiated for nearly all occupations. This is rare, however, as union involvement provides more security, stability and benefits. Unions also represent a pathway for importing knowledge to the country.(1)
The minimum wage for unionised workers in the public sector in October 2008 was DKK 76.70 per hour (unskilled workers) and DKK 91.80 per hour (skilled workers). Since then, minimum wage has increased at a rate of approximately 1.5 percent each year, based on negotiations between the government and unions.
Currently, industrial relations are fairly stable.
Employers’ Union
There are two employers’ associations; the Employer’s Association of Greenland (GA) and Nusaka(2). GA is the core employers’ representative body. Formed in 1996, the GA is divided into sectoral boards at the national level, with each board represented by elected member companies of that sector. GA associations at the local level vote for representation on the main GEA board. There are between 300 - 400 member establishments with 5,500 employees within all land based trade sectors (3).
Nusaka is a smaller body, and works primarily with small business owners who are based in Greenland. It was formed as Greenlandic alternative to GA, as GA was viewed by some to be dominated by Danish employers.(1)
Employees Unions
The largest labour union in Greenland is SIK (“Sulinermik Inuussutissarsiuteqartut Kattuffiat”), founded in 1953, which represents workers in all sectors. The national union board meets on an annual basis, during which time contractual agreements are reevaluated. Issues are discussed in consultation with employers and local branches.
SIK has local branches in nearly all settlements, represented at the local level as SIP. This presence includes the Qaasuitsup and Qeqqata municipalities, where local branches meet once a month, and more frequent meetings are held with representatives of particular sectors.
In addition to the SIK, other unions exist that represent particular occupations. For example, the KNAPK is an association that represents hunters and fishermen, while the PIP represents social workers with higher training. It is
(1) Meeting with Labour Unions (Nuuk), 1 February 2010 (2) Meeting with Labour Unions (Nuuk), 1 February 2010 (3) Employers Association of Greenland, Briefly about The Employers Association of Greenland (undated, leaflet). See also www.ga.gl.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-34 possible for employees to be members of both occupation-specific unions and the SIK simultaneously, but fees must be paid to each.
5.7 EDUCATION, TRAINING AND SKILLS
5.7.1 Introduction
Education and training levels in Greenland are low, due in part to poor attendance, low capacity of trained teachers, and challenges in the social background of students. While success rates at lower levels of the education system are not currently measured, it is estimated that only one third of Greenland’s potential workforce (persons aged 15-62) have an education that qualifies them for skilled employment, and that approximately 80 percent of unemployed workers are unskilled.
According to a recent interview study2 nearly 60 percent of the Greenland population has no education, and 30 percent only has completed primary education (see Table 5.7). It is also clear from Table 5.7 that educated populations are highest in Nuuk: this can be attributed both the availability of training structures in the capital city, as well as the number of jobs that require higher qualifications.
Table 5.7 Highest Level of Education Achieved (percent), Greenlandic population
No Basic Secondary Higher Total education
Nuuk 41,5 33,1 19,7 5,7 100
Cities 55,7 34,6 9,0 0,6 100
Settlements 80,2 16,8 3,1 - 100
I alt 58,6 30,1 9,8 1,5 100
Source: Bjerregaard et al. (2008)
The education and training system has been under reform since 2002, with associated funding policies and government action plans in 2004 and 2005 for post-primary education and training. (3) In 2006, Parliament adopted Greenland’s Education Programme, which works in two phases (Phase 1 runs until 2012 and Phase 2 runs until 2020) to improve the skills level of Greenland’s workforce. (4)
(1) Meeting with Union representatives (Nuuk), 2 February 2010 (1) 2 Befolkningsundersøgelsen i Grønland 2005-07, Bjerregaard et al. (2008) (3) See report "Progress through Education and Competency Development", Ministry of Culture, Education, Research and the Church; Ministry of Trade, Agriculture and the Labour Market; and the Finance Ministry. September 2004. (4) For details see “The Greenland Education Programme” (uk.nanoq.gl/Emner/International_relations/GEP.aspx). Accessed 20 February 2010.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-35 As a result of these measures, the education and training system in Greenland is improving. Commenced and completed educations have been increasing, while drop outs have been declining in recent years (see Table 5.8).
Table 5.8 Commenced, Discontinued and Completed Educations (2004-2008)
2004 2005 2006 2007 2008 Commenced 1068 995 1107 1116 1183 Discontinued 643 482 493 512 478 Completed 480 413 401 466 479 Source: Statistics Greenland, Uddannelse 2009:1
Although the education system is improving, it remains in a state of transition, like other government bodies. Key issues include low completion rates and high drop out rates or poor performance due to inadequate preparation of students at the primary level and delayed reaction within the higher education and training structures to accommodate ongoing changes.
5.7.2 Education System
The education system in Greenland is roughly divided into “basic” (grade one through ten), “secondary”, and “higher” education. Following completion of basic education and associated exams, students can qualify for secondary school, which provides more specialised education toward commerce, technical studies or academics. Graduates from (selected) secondary programmes are then eligible for higher education at the university in Nuuk or overseas – particularly to Denmark or other Scandinavian countries where Greenlandic students do not need to pay tuition fees.
Students who fail to qualify for secondary education can earn these prerequisites through a network of interim training structures, including preparatory education or local Piareersarfiit centres (see section 5.7.4).
Figure 5.21 illustrates the progression from basic through higher education levels, as well as the role of preparatory training to bridge any gaps in qualification between basic and secondary education.
Figure 5.21 Education System in Greenland
Basic Education Secondary Education Education University Gymnasium (gen. academics)
HTX (technical training)
HHX (Business training)
Source: ERM 2009
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-36
Education at all levels is free. Students who have to travel to attend courses are provided with study grants of DKK 4,500 per month (for those over 18) (1) or DKK 2,100 per month for those under 18; they can also earn an apprenticeship salary if in training.
The following sections provide an overview of the education system in Greenland at the basic, secondary and higher levels. Key focus, however, is on local capacity, on issues that relate to the system’s ability to prepare a trained workforce, and where additional capacity is needed.
5.7.3 Basic Education
Basic education starts at age five and finishes with grade 10 at age 14 or 15. Until two years ago, basic education was grades 1 through 11, but this was shortened in 2007. Basic education is compulsory, which means that students cannot be expelled before graduation; (2) however, students may choose to drop out of school, or may not pass exams required for graduation. Where higher grades of basic education are not available (such as in the settlements), students will travel to the nearest town to finish basic education, staying in dormitories.
Classes are taught in both Danish and Greenlandic, depending on the teacher. Danish is considered essential for higher education and skilled employment, but Danish language training capacity is limited outside of the larger towns. It has been noted in consultations that students from settlements where Danish language instruction is not available are at a disadvantage when it comes to applying for secondary education or employment, which generally require written and spoken Danish.
The table below shows the number of students and teachers in the basic school system in Greenland over the past six years. Overall a declining total number of pupils has been reported at various levels, and is attributed primarily to lower birth rates, caused by fewer young people in the country and fewer children being born, at a later age, among those who stay.
Table 5.9 Primary School
2003/04 2004/05 2005/06 2006/07 2007/08 Pupils, total 11,344 11,280 11,079 10,688 10,255 School teachers, total 1,217 1,268 1,247 1,216 1,189 Teachers per 100 pupils 10.7 11.2 11.3 11.4 11.6 Teachers born in Greenland 973 1006 1011 1021 1,012 Teachers born in Denmark 244 262 236 195 177 Source: Greenland in Figures 2009, page 25
(1) Students living in residence pay DKK 850 per month for rent. (2) Where a student presents a risk to himself or others, alternative education arrangements can be considered.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-37 It is worth noting that, although teacher to student ratio is improving over time, the availability of skilled teachers is reportedly a problem, particularly in the settlements. Skilled teachers are those who have completed teachers’ college; however, these are rare, and it is difficult to attract and keep these professionals without additional benefits. (1) Where there are not enough skilled teachers to meet demand, instructors with lower levels of training are brought in to fill the gaps.
5.7.4 Preparatory Training/ Continuation School
National Profile
As a result of government programmes to encourage higher education, increasing numbers of students are applying to secondary schools. Since the number of years of basic education was reduced, there has been a further boom in numbers of students coming out of basic education and applying for secondary school. However, many of these students are not qualified to go straight to secondary school; it is estimated that approximately half of students go to continuation school to obtain necessary prerequisites.
The largest of these preparatory/ continuation training structures is the “Piareersarfiit”, which provide guidance for job seekers and applicants for educational and training programmes through local centres. In 2007, the Piareersarfiit system merged with the Labour Market offices in the municipalities under a “One Door” principle, to streamline services and facilitate skills training.
There are 16 Piareersarfiit guidance offices in Greenland, where councillors are trained to help students decide what they want to do, and direct them to the necessary resources for achieving these goals. This may include courses to obtain necessary prerequisites for higher training, or apprenticeship opportunities and how to apply. In many cases, these pre-secondary training programmes also help younger students mature before moving on to the next level of education. For students in vocational training, they partner with trade schools, ensuring that students get necessary apprenticeship, and that businesses follow the rules for apprenticeship. Managers of Piareersarfiit offices meet two or three times per year to discuss national skills capacity.
In addition to the main Piareersarfiit centres, which are located in towns, there are smaller offices that provided counselling and access to training resources for residents of settlements.
Project Area
Within the Project area, there are Piareersarfiit centres in each of the towns that provide training and capacity building for youth and unemployed. A training programme has been developed in Aasiaat that is specifically targeted
(1) Benefits are in addition to the standard union contracts, and can include additional annual vacation, signing bonus, etc. These benefits must be agreed in the municipal budget.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-38 towards improving the qualification of local workforce. Two courses run for 12 weeks (one begins in early January, while the other starts mid-February), and provide students with skills development in English language, First Aid, drivers’ licence and trucking certificates. During the second part of the course, students have the opportunity to travel to Esbjerg in Denmark, (1) which is an industrial centre for the oil and gas sector; this allows students to develop a better understand of the requirements and realities of the industry. (2)
These courses have a capacity for 12 students in each programme, which was significantly lower than the demand of 120 applicants for the first round of course. Following a pilot roll-out of the training programme in Aasiaat, there are plans to offer the same courses in Upernavik, Uummannaq and in Qasigiannguit.
5.7.5 Secondary Education
There are three types of secondary schools that follow the basic education system; gymnasium (academic studies), HTX (technical studies) and HHX (business studies). Students must qualify for entrance to these (competency courses can be taken to acquire these). Students can start secondary school at any age.
High school programmes are generally three years in duration. There are normally high numbers of students who drop out, particularly in the earlier stages of education. Reasons cited for this include lack of maturity, lack of technical or psychological preparedness, or uncertainty about career objectives or interests. (3)
5.7.6 Vocational Training and University
National Profile
Vocational training has consistently been the most popular form of higher education in Greenland, and today constitutes approximately 65 percent of total completed educations. (4) There are six major training schools in Greenland. These are:
the Building and Construction school (5) (in Sisimiut) the ATI (Maniitsoq) the Metal and Industrial school (Nuuk) the Food Service and Preparation school (Inuili) the School of Commerce/ Tourism (Qaqortoq) the School of Commerce/ Administration (Nuuk) the School for Merchant Mariners (Paamiut)
(1) The first trip will begin 16 February 2010 (2) Meeting with GA (Ilulissat) 4 February 2010 and unemployed residents (Aasiaat) 6 February 2010 (3)Piareersarfiit and vocational training authorities (Qeqqata municipality), personal communication, 2009. (4 )Greenland in Figures 2008 & 2009. p. 26 (5) Programmes within the Building and Construction School include the Arctic Technology Centre (Artek), the Language School and the Mining School (among others).
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-39 the School for Hunting and Fishing (Uummannak) (1)
Training programmes are also provided by Piareersarfiit offices.
Vocational training programmes are designed to be 50 percent classroom work and 50 percent practical apprenticeship; as such, students must have an apprenticeship in place in order to be accepted into a training programme. In theory, students are responsible for setting up these apprenticeships themselves; in practice, however, Piareersarfiit offices can provide necessary support. Availability of apprenticeships is a serious factor that limits the capacity of vocational training programmes to meet applicant demand; according to education officials, there is a shortage of apprenticeship placements in Greenland. This is partially due to economic uncertainty, as companies cannot be confident that they will have enough business to keep an apprentice busy over the entire programme; there is also a natural limit to the number of apprentices that an approved business can take on, since each apprenticeship lasts up to four years. In order to encourage businesses to take apprentices, the government pays for the first year (2). Mandatory apprenticeship programmes for businesses over a certain value are being considered, but have not yet been put in place. (3)
There is one university in Greenland, in Nuuk, with courses in administration, culture and society, theology, media and language/ literature. The teachers’ college has been upgraded to association with the university. At the university, students can qualify for degrees from BA to PhD. The university is organised in four departments: (4)
Department of Administration (four teachers, approximately 55 students) Department of Cultural and Social History (four teachers; approximately 40 students) Department of Language, Literature & Media (four teachers; approximately 25 students) Department of Theology (two teachers; approximately 15 students).
In addition, the Arctic Technology Centre (Artek) was established in Sisimiut in 2000. The Centre provides higher education (Bachelor and Master Degrees) with a focus on Arctic conditions. As a partnership between the Sisimiut Building and Construction School and the Technical University of Denmark, students spend the final year of training at the university in Denmark.
(1) This is a new school, very small. (2) First year apprentice salary is DKK 4,200 per month. This increases with subsequent years, but rates vary from sector to sector, and are set by the associated labour and employer unions. Meeting with Ministry of Church, Culture and Research (Nuuk) 24 June 2009. (3)Ministry of Church, Culture and Research (Nuuk) personal communication, 2009 (4)University of Greenland, Education, http://www.ilisimatusarfik.gl/Uddannelse/tabid/62/language/en- US/Default.aspx (accessed 10 February 2010)
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-40 5.8 INFRASTRUCTURE
5.8.1 Housing
The majority of homes in Greenland are rented in the form of public housing – it is estimated that only approximately 20 percent of the population owns their own home. (1) This is due in part to the development drives of the 1960s, when large apartment blocks were built in the towns to encourage centralisation of the population away from sparsely populated settlements.
Today, housing is a significant issue in Greenland, both in terms of availability and quality of affordable housing.
Public Housing
Public housing in Greenland is owned by either the national or municipal government and managed by INI (“Inissiaatileqatigiiffik” – a state-owned company), and is provided on a subsidised rental basis to tenants. For example, a two-room apartment in Nuuk, with a market value of DKK 15,000 per month, would be rented by a government employee for DKK 3,000-4,000 per month, with the remaining DKK 11,000-12,000 covered by the government. (2) For those on social assistance, levels of subsidisation are determined by the municipality, based on annual income. There have been problems associated with this approach, as it fails to take into account overall expenditure, savings, or other factors. (3)
The majority of public housing stock dates back to the 1960-70s, when it was built by the Danish government as part of efforts to increase centralisation of the population. Ownership of public housing was transferred to the Government of Greenland in 1987, and very little maintenance has been commissioned since then. The condition of public housing stock is reportedly poor, and it is estimated that full renovation would cost approximately DKK 2.5 billion. (4)
Wait lists for available housing are common, ranging from a reported 2 years in Aasiaat to 2-3 years in Sisimiut and 4 years in Ilulissat. (5) The public housing shortage in Nuuk is most severe, where there is an estimated waiting list of 30-40 years in Nuuk.
Lack of available public housing is most acute at the lower-income levels. Construction of public housing has been extremely limited for the past 5
(1) Meeting with Greenland Development (Nuuk), 22 September 2009. (2) Meeting with Ministry of Social Affairs and Labour (Nuuk), 24 June 2009. The rental cost for public housing is evaluated based on a calculation of the average construction cost/ m2 x 1.5% (which goes to the government as owner of the building) x the size of the home (m2). Rental subsidisation is provided by the government (either as part of the employment agreement, for state workers, or based on income for low-income families. Meeting with INI (Sisimiut), 29 September 2009. (3) Meeting with INI (Sisimiut) 28 September 2009. (4) Meeting with INI (Sisimiut) 28 September 2009. (5) Meeting with INI (Sisimiut) 28 September 2009.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-41 years (1), when the 10-40-50 financing system for private ownership was introduced (see below). In Nuuk, the housing crisis is further exacerbated by the need to provide government workers, often on short-term contracts of 2-5 years, with rental housing. The provision of subsidies for housing, particularly for state employees, is very costly for the Government, which has more difficulty competing with private companies for available rental housing for employees.
Private Housing
Private home ownership is financed primarily through Danish lending companies, as there are no Greenland banks offering mortgages. During the economic crisis of the early 1990s, private lending stopped altogether, only starting up again (with high levels of caution) in the late 1990s, (2) and even then with a heavy focus on the growth areas.
In 2000-2001 a new lending programme to encourage private home ownership was developed, labelled 10-40-50. The premise of the programme is that private borrowers must put up 10 percent of the cost themselves, (3) 40 percent is provided jointly by the national and municipal governments (each providing 20 percent) in a 20 year, interest free loan. (4) The final 50 percent is provided by the private lending company. (5) In the settlements, where private mortgage companies are not generally willing to lend money, the lending programme is adapted to 95-5, in which the individual is responsible for 5 percent of the cost and 95 percent is covered by the government loan.
In the past five years, government funding has been funnelled into these private housing initiatives and away from the construction of public housing. This scheme is considered to be more financially sustainable, as the State has been able to move away from 100 percent financing of public housing (at a loss) to less than 40 percent of financing, in the form of repayable 20 year loans. The initiative has led to an increase in private housing in the last few years.
5.8.2 Utilities
The majority of energy is derived from non-renewable resources, although Greenland also has a number of hydroelectric plants. In 2003, 2,717 GWh of energy were consumed in Greenland, of which 7.5 percent was produced from renewable methods.
Heat and electricity in Greenland are supplied by power plants in each community. Power generation is based on diesel, which is supplied by the
(1) Meeting with Greenland Development (Nuuk), 22 September 2009 (2) Initially, private lending companies were only willing to finance 50% of the property value, though today this has increased to 70-80%. Meeting with Greenland Development (Nuuk), 22 September 2009. (3) This 10% is often provided through a loan from Greenland banks). (4) The 40 percent government loan is available for up to a maximum total of DKK 567,000. If more than that is required, the borrower must cover the extra cost. Meeting with Greenland Development (Nuuk), 22 September 2009. (5) Meeting with Greenland Development (Nuuk), 22 September 2009.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-42 company Polar Oil, which has its headquarters in Maniitsoq. The exceptions to this are cities that are connected to hydropower (including Nuuk, two cities in the south and one on the east coast). (1)
Until five years ago, prices for electricity and water were standardised across the country, but today prices are set by the municipalities based on the cost of production. (2) There is a limit to the amount that can be charged to residents. Because this limit is surpassed in nearly all towns and settlements by operating costs, government subsidisation is required to cover outstanding amounts. Prices for heating remain standardised. (3)
5.8.3 Waste Management
Household waste is collected from bins or plastic bags left outside houses by municipal trucks twice a week. Trash is then crushed and destroyed at an incinerator, located on the outskirts of towns or settlements.
Sewerage varies considerably between towns and settlements. There is a sewerage system in the towns, though not all houses are connected to this. Among houses not connected to central sewage systems, some have septic tanks, while the remaining houses have “plastic bag” toilets, in which waste goes into 30 litre plastic bags; these are tied off and collected by municipal workers. The bags are taken to central point and discharged before being pumped into the ocean. Grey water is also piped directly into ocean. Plastic bag toilets are more common in settlements, where piped sewage is not available. (4)
5.8.4 Transport Routes
Towns and settlements in Greenland are not commonly connected by road. Instead, passenger and goods are transported by sea or air. Roads within towns are often asphalted, though conditions can be poor. In settlements, roads are generally dirt or unsurfaced tracks.
Air Transport
Air Greenland is the only air carrier in Greenland, though there are reports of new companies under development. (5) As the national aviation company, Air Greenland provides both commercial flight services as well as social transport needs for the country, including transport of goods and supplies and medical response/ transport.
Because of the lack of a road network connecting towns and settlements, all towns and settlements will have at least a helicopter pad, while most towns
(1) Meeting with municipal administration (Maniitsoq) 27 June 2009 (2) Prices are established two years in arrears. (3) Meeting with municipal administration (Maniitsoq) 27 June 2009 (4)Director of Power Station (Qeqqata municipality), personal communication. 2009 (5) “Greenland Aviation” is the name of a helicopter company in the process of being set up in Greenland. Meeting with representatives from Business and Training structures (Nuuk). 1 February 2010.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-43 have at least a small airport. Airports in Greenland are managed by the Airport Authorities, which are responsible for the staffing and scheduling of national airports. It has been reported that airport usage is higher in the summer than it is in the winter; (1) in some towns, limited air tower controllers restrict the opening hours of airports, which can affect air travel to and from those areas.
The Aasiaat airport, which currently operates a six hour window, will have its capacity supplemented to meet Project needs for crew transport and emergency response. The airport authorities have indicated that they plan to reallocate four tower controllers from elsewhere in Greenland during the five months of exploration drilling, to allow the airport to operate 24/7. There are no plans to develop airport infrastructure for this Project; staff at airports from which supplemental operators have been drawn will be expected to compensate for the reduced manpower with overtime. (2)
Ports
Ports are an important gateway for marine traffic in Greenland, and receive passenger vessels, cargo vessels, trawlers, cruise vessels, fishing boats, foreign vessels and vessels that need to tank water and fuel. Ports are also an important location for the sale and trade of fish and meat for small scale hunters and fishermen, both at the local trading posts and fish factories, which are located within the ports.
Because of the importance of the ocean as a transport route, and the location of towns and settlements along the coastline, each town and settlement has at least one port. The main ports in the Project area are located in the largest towns of Sisimiut, Ilulissat and Aasiaat, ports of slightly smaller scale in Qasigiannguit and Qeqertarsuaq.
The port of Sisimiut is the major port of the region, and will be used by the Project for storage and loading of supplies for the drill ships (through a contract with Royal Arctic Lines), is currently used by commercial fishing fleets, supply vessels, passenger ferries, and international cruise ships. Stakeholders have reported that traffic through this port is a serious issue, and raised concerns that Project activities might create further congestion. Because the port is run by Royal Arctic Lines, the issue raised was less about meeting the Project needs, and more about potential challenges faces by other port users, which are ranked in priority from Royal Arctic vessels having first access, followed by fishing vessels, local passenger ships and international cruise ships. (3) In particular, commercial trawlers book the port through the summer period for offloading activities, which take place 24 hours a day Monday through Friday afternoon.
(1) Meeting with Air Greenland and Airport Authorities (Nuuk). 1 February 2010. (2) Meeting with Air Greenland and Airport Authorities (Nuuk). 1 February 2010. (3) Meeting with Department for Fishing, Hunting and Landuse, and meeting with representatives from Royal Greenland, KNAPK and AP (Nuuk). 2 February 2010. This view was contested by Sisimiut Port Authorities, who reported that the order at set by the Government is National Cargo Vessels, Passenger Vessels, Trawlers/ Cruise vessels/ foreign vessels, water and fuel vessels. Meeting with Port Authorities (Sisimiut) 10 February 2010.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-44
Port Authorities in Sisimiut reported that there is a high likelihood of delays (90 percent chance) of delays to port access at all times of the week (including Sundays). Delays can be 12- 24 hours in duration. The busiest months are May-December, and ports often faces issues related to capacity.(1)
5.9 SECURITY
National Profile
Police forces in Greenland are responsible for maintenance of the peace, as well as search and rescue operations in the near shore area (up to three nautical miles from shore). The Navy, which is under Danish jurisdiction, is responsible for search and rescue and emergency response in deep ocean (beyond three nautical miles from shore). Search and rescue activities are often undertaken with the support of the fire department.
Response in the event of emergency associated with Project work is a concern among both government stakeholders and the public. Greenland lacks the equipment and infrastructure necessary for high level emergency response or SAR.
In recognition of this, and the need to apply a coordinated response with full awareness of Project-specific emergency planning provisions, a contingency committee was created in 2000 to oversee emergency planning in mineral and petroleum projects. The committee represents the key organizations that would be implicated in the event of an emergency, including the police, Danish High Commission, Department of Health, Department of Environment, the national contingency committee, the Danish Maritime Authority, and the navy. In the context of a major event, (2) the committee ensures that relevant parties remain updated on the situation and that response is undertaken in a coordinated way, incorporating the capacities of all parties.
The contingency committee meets once a year or as necessary, and would be provided with the opportunity to review and comment on the health and safety plan of the Project. (3)
Project Area
The main police station of Qaasuitsup municipality is based in the municipal capital of Ilulissat. This police station oversees sub stations in Aasiaat, Uummannaq, Upernavik and Qasigiannguit, each of which has its own head
(1) Meeting with Port Authorities (Sisimiut) 10 February 2010. (2) There is no standard definition of “major event” (3) This plan must include description of disaster response and how relevant bodies, including media, would be engaged. The Cairn Health and Safety Plan will form a part of the application to drill to the Greenland Government.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-45 of police. (1) There are between 25-30 police officers in Qaasuitsup municipality, including approximately 11 in Ilulissat and 11 in Aasiaat. (2)
The police station in Sisimiut houses between eight to ten officers, and oversees police departments in the rest of the municipality (although Kangerlussuaq has its own police and fires response, due to the presence of the international airport there).
According to police representatives, the main types of criminal activity in the region are violence, theft, marijuana use and sexual abuse. It was noted that many incidents of violence are related to alcohol use. (3)
(1) The central police station in Ilulissat is currently run by a vice director, while the municipal director is based in Uummannaq for personal reasons. (2) Police force (Ilulissat) (3) Police force (Ilulissat) ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 5-46 6 SOCIAL ASSESSMENT
6.1 INTRODUCTION
This section presents the results of the social impact assessment, which identifies and analyses potential impacts to the human environment.
6.2 DESCRIPTION
The SIA presented herein covers planned offshore drilling operations in the Sigguk exclusive licence 2008/10, Disko West area off western Greenland and associated activities including onshore base facilities and materials storage; offshore support facilities; crew change logistics; onshore accommodation; provision of materials and supplies; and Project resourcing including local goods, services and labour. Procurement, storage, loading and mobilisation activities outside of Greenlandic territory are not in the scope of the SIA.
Onshore elements of the drilling programme that have been assessed involve activities in the settlement of Kangerlussuaq; in the towns of Aasiaat, Ilulissat and Sisimiut; and in the capital Nuuk.
6.3 REGULATORY FRAMEWORK
In line with SIA Guidelines by the Bureau of Minerals and Petroleum,1 this impact assessment draws on the social pre-Project baseline to identify both positive and negative social impacts associated with Project implementation. Measures to optimize positive impacts and mitigate negative impacts through the Project lifetime will be elaborated in the mitigation plan.2 This plan is presented as a Benefit and Impact Plan, which sets out the framework for cooperation between Capricorn and the national/ local authorities in relation to maximising development opportunities and mitigation measures.
In applying these guidelines to the exploration programme under assessment, the following circumstances apply:
• The exploration programme is a relatively short-term activity, expected to last less than five months from mobilisation of the drill units into Greenland water to completion of all wells.
• The drilling operations take place a considerable distance (>150km) offshore, with no cables, pipelines or permanent structures above the seabed (other than a protected wellhead at each drilling location) or any purpose built onshore facilities required.
(1) 1 BMP, “Guidelines for Social Impact Assessments for Mining Projects in Greenland”. November 2009 (2) 2 See report section ‘Benefits, Impacts, Monitoring and Evaluation’
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 6-1
• Drilling rigs and support vessels will be fully equipped and manned with the necessary personnel. They can hold large quantities of materials, food and water and are highly self-sufficient (eg with their own capacity for creating potable water).
• Additional fuel, food, potable water and the processing of rig household waste will also be required at regular intervals during the operations; these are expected to be sourced through contract with local suppliers such as Royal Arctic Line out of Sisimiut.
• A small number of Project personnel will be based onshore in Aasiaat (up to 12 people). These Project personnel will be experienced drilling, drilling services and logistics personnel from abroad. Approximately 30 helicopter and ground crew will be housed in Ilulissat. Two representative Capricorn Energy personnel are expected to be based in Nuuk.
• Storage facilities in the port of Aasiaat are expected to be contracted through Royal Arctic Line, for loading and unloading of supply boats, waste handling/ disposal facilities and storage for Oil Spill Response equipment.
• Aasiaat has been identified as the preferred forward base for helicopter transfer of crews to the rigs and 24hr Search and Rescue (SAR) operations and with Ilulissat as the hangar base for helicopter operations.
• Crews will be transferred to Aasiaat by fixed wing aircraft from the international airport in Kangerlussuaq and then transferred offshore by helicopter.
• To allow for flight delays and other unplanned events, there will be contingency accommodation for transiting workers on a wareship offshore of Aasiaat and at existing facilities in Kangerlussuaq.
The socio-economic impacts of offshore exploratory drilling, both positive and negative, have been identified and assessed in accordance with the Guidelines for Social Impact Assessment1 and the nature and scale of the planned operations. Should operations move from exploration drilling to development, more extensive socio-economic studies will be required.
6.4 RECEPTORS
Receptors are social entities – represented as groups, individuals, organisations - that may be exposed to stress arising from the activities of the
(3) 1 BMP, “Guidelines for Social Impact Assessments for Mining Projects in Greenland”. November 2009
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 6-2 exploration programme. Key receptors that were considered during the social assessment of the exploration programme include the following:
Residents of Project area Local workforce Commercial fishermen and hunters Chamber of Commerce and Small Business Owners Greenland Travel Companies and Local Tourism Operators Port Authorities Airport Authorities (GLV) Emergency Services including Police, Fire response and Health National and Municipal Administration
6.5 CONSULTATION
Initial consultation has been undertaken with a number of key stakeholders, primarily for the purposes of initial SIA screening, verifying the scope of work and gathering baseline data. The views of key stakeholders, together with relevant studies and publications, were taken into account in developing the scope and approach of this assessment.
Following publication of this report and a non-technical summary (NTS) of the study, the findings of this assessment will be communicated and verified through a public hearing process, during which time stakeholders will have the opportunity to query and comment on the report. This is expected to take place in March 2010.
6.6 OVERALL IMPACT
Overall, routine operations of the drilling programme are predicted to have a slightly positive social impact for Greenland. Negative social impacts are predicted to be not significant or minor, and most of these impacts will be managed through standard operating procedures.
The main reasons that the drilling programme is predicted to have minimal negative social impacts are that
Most of the drilling activities are located at significant distance (approximately 150 kilometres offshore) from existing Greenlandic communities; and
The Project is of a very short duration (estimated four to five months).
For many of the same reasons, the Project is not anticipated to have a large and positive social impact. Although some economic benefits are anticipated for Greenlandic enterprises, local employment effects will be muted because the ships and crews, as well as certain supplies, will be mobilised from outside
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 6-3 Greenland due to the specialist nature of the operations and the limited experience of similar operations in Greenland. Other opportunities for business development are likely to be limited to purchases of fuel, water, food and some consumables to support the drilling operations.
Opportunities to enhance the positive social impacts of the exploration programme, for example through training, are limited by its short time frame and the specialist nature of the work. These limitations could change if the current exploration programme is successful and leads to long-term development of offshore hydrocarbon resources. However, potential future activities are beyond the scope of this study.
The potential for negative impacts is higher in the event of non-routine operations. While planned operations will require very limited onshore workers accommodation, any flight delays out of Kangerlussuaq will require temporary accommodation in that town. Under these conditions, the risk of negative contact between workers and local population is increased.
Less likely, but more serious, would be impacts to coastal fishing and hunting resources from either a small release of fuel oil or diesel close to shore, or a major crude release at the drilling locations offshore, with potential economic consequences for activities such as fishing, hunting and tourism. Such an event could also lead to potential trans-boundary socio-political impacts and secondary economic impacts.
The potential impact of other unplanned events, such as intemperate weather delaying flights or stranding unexpected numbers of workers at the airport in Kangerlussuaq, are discussed in the appropriate section of the assessment, and management recommendations or mitigations are included.
6.6.1 Social impact assessment summary
Figure 6.1 below presents the results of the social impact assessment.
Figure 6.1 Summary social impact matrix
Phase: Exploration The impact of Drilling Project activities on: Not Local employment Significant Socio-economic Procurement of goods & services Minor from Greenland companies Positive Not Housing & accommodation Significant Transportation infrastructure Moderate Infrastructure & Services - port facilities Negative - airport services Not Community Health Services Significant
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 6-4 Not Tourism Significant Local enterprises Minor Commercial Fishing & Hunting Negative Not Skills & Training Significant Community Not Local Culture Significant
Key to significance rating Major positive Moderate positive Minor positive Not Significant Minor negative Moderate negative Major negative
As shown in Figure 1.1, the majority of the social impacts associated with the drilling programme are expected to be not significant or minor (for positive or negative impacts). Positive but minor impacts on Greenlandic enterprises are expected through some local procurement of goods and services. The transportation requirements of the drilling operations and crews will support existing job levels at Air Greenland and Royal Arctic Line. The Project could also have minor and negative impacts on local users of transportation infrastructure, notably the port in Sisimiut (which already has capacity challenges), and airport services in towns outside the Project area. There is also slightly increased potential for a shipping collision or other marine accident. One of the social management recommendations is for Capricorn to monitor boats fishing in the waters around the exploration drilling area, and to develop a means by which complaints, from fishermen and other navigation, can be communicated to the company and addressed. This was undertaken successfully in Capricorn’s previous seismic operations during 2008 and 2009.
The drilling programme could have a major negative social impact if an unplanned event led to a significant oil spill. The main risk of a large spill during exploration drilling is either a vessel collision or a loss of well control. However, the likelihood of this type of event occurring is very small, the requirements for mitigation are well understood, and Capricorn will have the appropriate mitigation procedures in place.
The section that follows describes each of the impacts and explains the ratings in more detail. The impacts are grouped by their major aspect – Socioeconomic; Infrastructure, Enterprise and Community. The discussion of each major aspect is structured as follows:
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 6-5 • Sources of impacts; • Project-specific controls • Predicted impacts, and • Management recommendations.
6.7 SOCIOECONOMIC IMPACTS
This section of the assessment describes the potential socioeconomic impacts of the Capricorn Drilling Project on local employment and procurement of goods and services.
6.7.1 Sources of Socioeconomic Impacts
The socioeconomic impacts of offshore hydrocarbon exploration programmes are relatively well understood. Depending on the scale and duration of the drilling programme, economic effects can be estimated with a high degree of accuracy. The sources of these effects can be divided into four main categories, as shown in Table 6.1.
Table 6.1 Potential socioeconomic impacts
Source of impacts Type of potential impact Local service and supply contracts for drilling Contracts with taxable revenue; new job operations creation and existing job maintenance Purchasing of supplies and consumable items Increased economic activity; sales taxes; new used in the drilling programme job creation and existing job maintenance Revenues received by local workforce directly Improvements in family income; income taxes involved in the drilling programme on employment Purchasing of consumer goods and services Creation of new jobs; improvements in family by those directly employed (including foreign income; sales taxes and employment taxes workers), ie the flow of revenue from workers to third parties
There are also potential gains to the Greenland national economy from exploration licensing and permitting.
6.7.2 Project-specific controls
No Project-specific controls have been developed by Capricorn Energy for local employment aspects of the exploration programme.
Air Greenland and Royal Arctic Line are expected to be contracted to provide various elements of the transportation, supply, storage and support services to the exploration operation. Additional local procurement will be required for onshore worker accommodations in Aasiaat, Ilulissat and, to a very limited degree, Nuuk.
6.7.3 Predicted impacts
Local Employment
Direct jobs associated with the exploration activity include all the people working for the prime contractor and all subcontractors, whether on site or
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 6-6 off, whose primary work tasks are connected to the exploration activity. At this time, Capricorn Energy, its contractors and major local suppliers estimate that direct recruitment of Greenlandic labour during the drilling programme will consist of one new local employee to support the Company’s representative office in Nuuk.
The drilling programme will help to maintain many existing Greenlandic jobs. These include ground crew and support staff for the helicopter and fixed wing flight operations. It is expected that employees of Royal Arctic Line will be involved in operating support vessels and a locally supplied vessel may be engaged to support personnel transfers. Greenlanders employed by port operators and other businesses will be engaged in storage of onshore materials; loading and unloading of the supply boats; handling and transport of materials to/from other facilities; storage of oil spill response equipment. Service providers for the onshore workers’ housing and contingency accommodation will be Greenlandic.
Indirect jobs include people employed in manufacturing and supplying goods and services such as communications that will be utilised during the drilling contract, as well as Greenlandic workers in businesses that provide food and accommodation. Again, the principal contribution of the drilling programme to indirect employment will be job maintenance. Greenland has a very small manufacturing base and the duration of the exploration programme is probably too short for Greenland businesses to recruit more labour.
Induced jobs are the consequence of the multiplier effects of direct and indirect jobs. The income earned by both the direct and indirect workers will be spent, in part, on consumer goods and services. Some induced job creation may arise from the drilling programme. Most of this job creation will arise in service industries such as restaurants and retail outlets in Aasiaat and Ilulissat.
Significance
Total direct, indirect and induced recruitment for Greenlandic labour during the Project is unlikely to exceed 10-20 positions, and most of these would terminate with the end of the drilling programme. The significance of employment opportunities associated with the Capricorn Drilling Project is therefore considered not significant.
Procurement of goods and services
Greenland will benefit from the direct procurement of goods and services used in the exploration programme. The main beneficiaries of local procurement are expected to be Air Greenland and Royal Arctic Line. Each of these companies could receive major procurement contracts that will last the duration of the exploration programme.
Other local suppliers that will potentially receive significant procurement business include hotel operators in Ilulissat (20-30 rooms over five months)
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 6-7 and Aasiaat (up to 12 rooms over five months). Arrangements for contingency accommodation in Kangerlussuaq could also be significant.
There will be procurement opportunities for food suppliers and potential minor procurement opportunities for suppliers of consumable items used on board the ships and in the drilling operation.
Significance
Local procurement of services from Greenlandic suppliers, although limited in number, will be of significant value. However, this benefit is tempered by the short duration of contracts. The significance of procurement opportunities associated with the Capricorn Drilling Project is therefore considered positive but minor.
6.7.4 Management recommendations
A preliminary workforce assessment should be undertaken during the exploration drilling programme to understand existing workforce capacity and gaps to be addressed if the Project proceeds to development;
Consideration should be given to recruiting Greenlandic labour where skills and qualifications exist;
Undertake a business assessment to understand existing supplies and services available in Greenland;
Service and supply needs for the Project should be evaluated with a view to maximise contracting of Greenland companies wherever possible.
Socioeconomic Impacts Local Workforce Not Significant Local Procurement Minor Positive
6.8 INFRASTRUCTURE IMPACTS
This section describes the potential impacts of the Capricorn exploration programme on local infrastructure. The primary concerns addressed in this section are the impacts of the drilling programme on the availability of accommodation, as well as the sufficiency of existing transportation infrastructure to meet the needs of the drilling programme without compromising other users.
6.8.1 Sources of potential impacts on infrastructure
Sources of potential impacts on infrastructure arising from the drilling programme are summarised in Table 6.2 below.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 6-8 Table 6.2 Potential Project-related impacts on infrastructure
Source of impacts Type of potential impact Onshore staff in Aasiaat (12) and Reduced availability of hotel accommodation for other flight crews (20-30) in Ilulissat visitors and tourists Demand for increased airport Reallocation of limited air traffic controllers from other capacity for Project airports to Aasiaat, reducing or delaying flights to other centres Supply ships in Sisimiut Insufficient moorage to accommodate other ships in Sisimiut harbour Inclement weather Sharply increased temporary demand for accommodation in Kangerlussuaq hotels, potentially squeezing out other visitors Increased demand on local health Demand for health care services exceeds capacity, structures reducing quality and availability of services for local residents Significant non-routine event Temporary loss of or restrictions on health care and (explosion, collision) emergency services for local residents
6.8.2 Project-specific Controls
Accommodation for drilling crews will be offshore with no impact on municipal housing.
Onshore workers (up to 30 aircrew in Ilulissat and 12 operations personnel in Aasiaat) will stay in hotels, with no added pressure on municipal housing.
Plans call for contingency accommodation for up to 60 personnel in Kangerlussuaq in case of transit flight delays.
International and internal transport by private charter will minimise negative effects on the availability of seats on commercial flights.
The drilling rigs and wareship are self-contained, providing their own power, water and sanitation and other infrastructure services.
6.8.3 Predicted impacts
Housing and accommodation
Housing is a significant issue in Greenland, both in terms of availability and quality of affordable housing. Approximately 20 percent of the population own their own home and the balance of the housing stock is public. Wait lists for available public housing range from a reported 2 years in Aasiaat to 2-3 years in Sisimiut and 4 years in Ilulissat. Lack of available public housing is most acute at the lower-income levels.
Accommodation for the Capricorn drilling crews will be provided on board ships and will not affect the public housing situation.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 6-9 The up to 12 Project personnel in Aasiaat are expected to be accommodated in hotels and guesthouses. There are at least five establishments in Aasiaat, including Aasiaat Guesthouse, Aasiaat Hotel Apartments, Aasiaat Seamen’s Home & Hotel, Egedesminde Guesthouse and Hotel & Restaurant Nanoq.
The 20-30 flight crew based in Ilulissat will be accommodated in hotels and guesthouses. There is a wide variety of accommodation in Ilulissat including the 87 room Hotel Arctic.
Contingency accommodation in Kangerlussuaq will be arranged through existing accommodation facilities. As the location for the international airport, Kangerlussuaq has accommodation facilities that include Kangerlussuaq Hotel and Conference Centre. The hotel has 143 beds and the Conference Centre also offers accommodation at an annex hotel in Umimmak that has 62 guestrooms.
Significance
Plans to accommodate most of the drilling programme staff offshore relieve any pressure that the Project might place on public housing in Greenland. There appears to be adequate commercial accommodation for onshore personnel in Aasiaat and Ilulissat, as well as the necessary contingency accommodation for up to 60 personnel in Kangerlussuaq. The significance of Project impacts on housing and accommodation is therefore considered to be not significant.
Transportation infrastructure – port facilities
Towns and settlements in Greenland rely on transportation by sea or air. Because of the importance of ports and airports as hubs of transport and commercial activity in Greenland, impacts to these have been carefully considered.
Ports are an important gateway for marine traffic in Greenland; the larger ports, in particular, receive passenger vessels, cargo vessels, fishing trawlers, cruise vessels, small scale fishing boats, foreign vessels and vessels that need tank water and fuelling.
Capricorn’s offshore exploration activities will rely on regular servicing by supply boats transporting materials from Aasiaat and Sisimiut. The supply base facilities in Aasiaat will provide limited laydown, waste handling, materials and storage for part of the Oil Spill Response equipment. The frequency of supply boat movements in Aasiaat is likely to be 1-2 per week.
Sisimiut has been identified as the preferred base for refuelling, water supplies and the processing of rig household waste. The frequency of supply boat movements in Sisimiut has not been confirmed.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 6-10 The port of Sisimiut is currently used by commercial fishing fleets, supply vessels, passenger ferries, and international cruise ships. Stakeholders have reported that traffic through this port is a serious issue, and raised concerns that Project activities might create further congestion. Because the port is run by Royal Arctic Line, the needs of other port users are ranked lower in priority than those of Royal Arctic vessels.
Port Authorities in Sisimiut reported that there is a high likelihood (90 percent chance) of delays to port access at all times of the week (including Sundays). Delays can be 12- 24 hours in duration. Delays are likely to affect commercial trawlers, which offload catches 24 hours a day Monday through Friday afternoon during the summer, as well as international cruise vessels and other cargo vessels.
Significance
There have not been any stakeholder concerns expressed regarding port congestion in Aasiaat, and the expected frequency of supply ship movements involved in Capricorn exploration activities is low. However, congestion in the Sisimiut port is already an issue, and stakeholders have raised concerns that Project activities might create further congestion. Although congestion issues are unlikely to affect the movement of Capricorn supply ships because of the priority granted to Royal Arctic vessels, other port users may be negatively impacted. Royal Arctic Services are expected to provide some of the supply ship functions through the port at Aasiaat. Pending confirmation of the expected frequency and duration of supply ship movements in Sisimiut port, the significance of Project impacts on port facilities is therefore considered negative and moderate.
Transportation infrastructure – airport services
The Aasiaat airport, which currently operates a six hour window, will have its capacity supplemented to meet Project needs for crew transport and emergency response. Airport authorities have indicated that they intend to achieve this by reassigning four tower controllers from elsewhere in Greenland to Aasiaat during the five month drilling programme. There are no plans currently to develop additional airport infrastructure for this Project; airports from which the additional Aasiaat operators have been drawn will offset the reduced manpower with overtime. Case studies in other towns of Greenland indicate that reduced tower operation can result in reduced operating hours for the airport, flight schedule unreliability and flight delays (sometimes resulting in overnight delays).
Significance
Due to the precedence of issues at small airports, and the higher level of airport activity during summer seasons, the significance of Project impacts on airport services in up to four towns outside the Project area is therefore considered negative and moderate.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 6-11 Local Health Services
As most of the activities associated with the drilling programme are offshore, community interaction will be limited. The use of health facilities and services such as doctors, dentists, chemists and hospital beds by the offshore workers should not be significant. There will be medical workers on board the drilling rigs and wareship, the minimum requirements for which are specified in internationally recognised standards such as the Convention on Safety Of Life at Sea (SOLAS, 1974). Apart from the 12 onshore staff in Aasiaat and the flight crews in Ilulissat, offshore workers are not expected to be in the local onshore communities for any length of time and are unlikely to seek elective healthcare services while in transit to their home countries.
Should a non-routine event of significant size occur, access to both regular and emergency health services could be reduced. The effects of the service reduction would be limited in duration but could be highly disruptive for local residents and service providers in the short term. Emergency Planning will therefore include early discussions with the health authorities on arrangements for triage, coordination of emergency response and maintenance of health services for local residents. These discussions can be coordinated through the contingency committee, created in 2000 to oversee emergency planning in mineral and petroleum Projects.
Significance
Community health impacts associated with the short drilling programme are unlikely, and hence their significance is assessed as not significant.
6.8.4 Management recommendations
Capricorn and its contractors to confirm the expected duration and frequency of supply ship movements to stakeholders in Aasiaat and Sisimiut. A regularly updated schedule of vessel movements to and from port and the drilling rigs should be provided to port administration.
Capricorn and its contractors should consider alternative locations to Sisimiut port for some loading/unloading activities in order to reduce capacity constraints.
A schedule of regular chartered flights to and from key airports in Kangerlussuaq, Aasiaat and the drilling rigs should be provided to air transport authorities.
Capricorn and/or its contractors should establish early and ongoing consultation with key transportation authorities (port and air traffic) with the intention of building working relationships and identifying workarounds and solutions to capacity constraints.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 6-12 Emergency Planning to be coordinated in consultation with the Greenland Contingency Committee, and to include early discussions with the appropriate health authorities on arrangements for triage, coordination of emergency response and maintenance of health services for local residents.
Infrastructure Impacts Housing and Accommodation Not Significant Transportation Infrastructure (port Moderate Negative facilities and airports) Local Health Services Not Significant
6.9 IMPACTS ON LOCAL ENTERPRISE
This section of the report describes the potential impacts of the drilling programme on Greenlandic enterprises in commercial fishing and hunting and tourism.
6.9.1 Sources of potential impacts on local enterprises
Sources of potential Project-related impacts on local enterprises are summarised in Table 6.3 below.
Table 6.3 Potential Project-related impacts on local enterprises
Source of impacts Type of potential impact
Potential navigation and collision hazards for Drilling rigs and vessel movements commercial fishing and whale hunting operators.
Exclusion zones Potential loss of revenue from hunting and fishing.
Affect whale movements through Project area, reduce Drilling activities income from whale hunting
Potential to exacerbate delays to cruise ship landings at Supply ships Sisimiut.
6.9.2 Project-specific Controls
No exploration related activities to take place in tourist areas
Regular communication will be developed with fishing operators and other mariners to ensure updated communication of the drilling operation and coordinates, and to facilitate coordination in the waters of the Project area;
Anti-collision radar will be installed on each of the drilling rigs, with responsibility assigned to designated personnel for monitoring and response and providing training on these responsibilities;
Both drilling rigs and associated support vessels will be illuminated as required under the Navigation Act and shall maintain a watch for shipping activity in the drilling area and exclusion zone;
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 6-13
The Exclusion safety perimeter zone will be monitored and enforced by dedicated Project vessels;
A schedule of regular vessel movements to and from the port and the drilling rigs will be established and communicated through the Port authorities, with updates on a regular basis.
6.9.3 Predicted impacts
Commercial fishing and hunting
The Greenlandic economy is highly dependent on natural resources and hunting/fishing is of high economic and socio-cultural importance. Seafood constitutes a large portion of Greenlandic exports, and fishing is the main source of employment and income in many towns and settlements, including the Project area.
The area around the drilling licence is too far from shore to interfere with the fishing activities of small-scale fishermen, whose activities are focused primarily along the inshore areas. Impacts to small-scale and inshore fishing activities are therefore not expected to be significant.
The exploration license area does overlap with active commercial fishing areas. These include areas of halibut fishing by trawlers, and small overlap with limited shrimp fishing areas (in the south-west corner of the license block). It is therefore possible that the Project will have some interaction with commercial fishing activities.
During preliminary seismic activities, potential impacts to fishing were mitigated with a communication procedure that provided fishermen with ongoing information about Project activities and location. This procedure will be implemented during the exploration phase of the Project.1
Representatives from fishing associations (including both commercial and small scale fishermen) did not consider that impacts from exploration activities will be significant. First, based on past experience with the promoters during the seismic phase of the Project, fishermen felt that the communication procedure provides appropriate levels of information to mitigate potential conflicts. Second, the area of overlap with fishing areas is comparatively small in proportion to the total fishing area, and is not considered to be a critical fishing location. Third, trawler operators asserted that vessels could go around the drill sites (and exclusion zones), as long as those locations were effectively communicated to them.
Seals, walruses and whales are hunted in the exploration area. The area around the drilling licence is too far from shore to interfere significantly with
(4) 1 Meeting with Representatives of fishing associations (Nuuk) 1 February 2010
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 6-14 hunting of seals and walruses. The drilling activity could potentially interfere with whale hunting. During a meeting with representatives from fishing associations held in Nuuk on 1 February 2010, a concern was raised that the area is a travel route for whales.
It is known that drilling activities can disrupt whale communications, and this is expected to be the case in the near vicinity of exploration drills. Whales will likely respond by avoiding the specific area, which could affect locations where whale hunting can take place. However, the territory for whale hunting is variable, and the range of impact is not expected to be large.
Significance
The exploration license area does overlap with active commercial fishing areas. However, this overlap is comparatively small in proportion to the total fishing area, and is not considered to be a critical fishing location. Commercial trawler operators have asserted that they could navigate around drill sites if locations are effectively communicated. Project plans to implement a communication procedure with commercial hunters and fishermen is considered adequate to mitigate potential conflicts and identify possible issues if/when they arise. Consequently, impacts to commercial hunting and fishing during the drilling programme are considered to be negative but minor.
Tourism
Tourism in Greenland is growing; however, the lack of appropriate infrastructure is a constraint on the industry. Bottlenecks can occur during the peak of the high season.
The Project affected area is located within the second most popular tourism region in Greenland. One of the most promising areas of tourism development in Greenland is cruise tourism. In 2006, Greenland received approximately 22,000 cruise passenger. There were a total of 157 calls at port by 28 different cruise ships, and passenger taxes amounted to approximately DKK 10 million in 2006.1
The number of cruises and visitors to Greenland has continued to grow. In 2010, the Tourism Council is anticipating 340 calls at port by 41 different cruise ships. Approximately 40 (12%) of these port calls are scheduled for Sisimiut.2
The drilling operation will be too far offshore to be visible to tourists on land, but the operations may be visible to tourists on board cruise ships proceeding north from coastal communities.
(5) 1 Greenland Tourism and Business Council, Annual Report (2006) (6) 2 Greenland Tourism and Business Council, Annual Report (2006). Only five calls are expected at the port of Aasiaat..
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 6-15 Significance
Tourism in Greenland has been expanding steadily and is becoming an increasingly important part of the economy. The industry has existing infrastructure problems that act as a constraint on its growth.
The on-shore accommodation requirements of the exploration programme are relatively modest and are not expected to compromise the availability of accommodation for tourists. Existing congestion at the port of Sisimiut may be exacerbated by the supply ships attached to the drilling programme, which could potentially contribute to delays for cruise ship seeking to call at port. As delays for cruise ships at Sisimiut are already anticipated, the significance of negative impacts occurring on tourism during the drilling programme has been rated as not significant.
It should be noted that in the event of a non-routine event such as an oil spill, the potential disruption to tourism activities would be greater because of the additional activity created by clean-up crews. The equipment and personnel requirements for dealing with potential spills will be detailed in a project specific Oil Spill Response Plan developed by Oil Spill Response Limited (OSRL), based on the results of oil spill dispersion modelling. In the event of a significant oil spill, the ports at Sisimiut and Aasiaat are likely to be effected to some degree, depending on the final location(s) for staging oil spill response capability.
6.9.4 Management recommendations
Commercial fishing and hunting
A range of measures should be put in place to protect operators of commercial fishing and whaling boats with licences to operate in the vicinity of the Project area. These include:
Monitoring of impacts to local fishing, hunting and maritime navigation throughout the Project to identify and address issues as they arise.
Specifically, targeted consultation with whale hunters to determine whale hunting activities and seasons in the Project area. If necessary, impacts to whales will be monitored.
Ensuring that Greenlandic speakers are available to Project vessels that may come into contact with small local boats, to ensure that communication is possible;
Maintaining communications with the fishing/hunting licence group(s) that operate in the exploration area, and providing them with ongoing information on the activities of the drilling operation and any undersea infrastructure that could pose a potential snagging hazard to trawlers, is recommended. A log of fishing and other commercial shipping traffic entering the Project area during the drilling operation could provide valuable information for any future assessments associated with permitting for development phase of the Project.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 6-16
Tourism
Information on the drilling programme, including the location of the drilling rigs and use of Sisimiut port, should be shared with the Tourism Council.
Impacts to Greenland Enterprise Commercial Fishing and Hunting Minor Negative Tourism Not Significant
6.10 IMPACTS ON COMMUNITY
This section of the report describes the potential impacts of the drilling programme on Greenlandic communities and community services.
6.10.1 Sources of potential impacts on community
Sources of potential programme-related impacts on community and community services are summarised in Table 1.4 below.
Table 6.4 Potential Project-related impacts on community
Source of impacts Type of potential impact Improvements in employability, wage levels, Training and skills development standards of living, and associated community sustainability Community interaction with drilling crews Cultural impacts
6.10.2 Project-specific controls
Contact between drilling crews and Greenlanders will be minimised by maintaining crews at sea for the duration of the drilling programme.
Crews will be transferred directly between the drilling rigs and airport at Kangerlussuaq to minimise interaction with communities.
6.10.3 Predicted impacts
Skills and training
Education and skill levels in Greenland are very low, due in part to low attendance, limited numbers of trained teachers, and challenges in the social background of students. Nearly 60 percent of the Greenland population has no education, and only 30 percent has completed primary education.
Capricorn does not have any plans at this time to provide any form of workforce preparation or pre-employment training for Greenlanders in association with the drilling programme.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 6-17 Significance
Knowledge transfer, in the form of training and education, has been identified by the Bureau of Minerals and Petroleum as an essential component for long term capacity building of local competence within the extractive industries. As currently planned, the exploration programme is unlikely to improve existing skill levels or to contribute to the government’s desire to build local capacity within the extractive industries. The significance of exploration programme activities to skills and training is therefore rated not significant.
Local culture
Towns where limited numbers of onshore workers will be accommodated – Aasiaat, Ilulissat and Nuuk – are relatively large and, as regional centres, residents are accustomed to people coming and going (eg for work, education, etc). It is not likely that impacts from onshore workers would be significant.
Significance
In Kangerlussuaq, where non-routine flight delays could require temporary onshore accommodation of transiting workforce, the scale of potential negative impacts is greater. However, as the international airport, Kangerlussuaq sees hundreds of travellers transit through the town each day, and weather delays can be common. Impacts to community and culture from non-routine accommodation of workers in Kangerlussuaq are therefore not considered to be significant.
6.10.4 Management recommendations
Knowledge transfer, in the form of training and education, has been identified by the Bureau of Minerals and Petroleum as an essential component for long term capacity building of local competence within the extractive industries. Moreover, training opportunities have been identified by stakeholders to be the key potential benefit of this Project.
It is recommended that Capricorn would undertake a training needs analysis to understand capacity for training and skills development in Greenland, if the Project proceeds to development, particularly in the sector of oil drilling and support operations. Where necessary, plans to provide training support could be developed and implemented.
Impacts to Community Skills and Training Not Significant Local Culture Not Significant
6.11 CONCLUSION
As demonstrated in this impact assessment, the social impacts associated with the proposed Project are considered to be largely insignificant, due to the
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 6-18 nature of the Project and existing mitigation measures incorporated in the Project design. The key issues that require attention are the potential impacts to port users and airport services, which are the only negative impacts considered to be moderate. The Project is also advised to consider measures to improve benefits to local workforce and training/ skills development, in recognition of key needs of Greenlandic society.
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 6-19 7 SOCIAL MITIGATION AND MONITORING
7.1 INTRODUCTION
This Chapter brings together the mitigation measures described in the Social Impact Assessment Chapter 6 and outlines the Social Management Plan (SMP) framework through which Capricorn will mitigate negative impact where necessary and maximise benefits where possible.
This Chapter of the SIA includes the following elements:
Area/ Mitigation; the measure designed to maximise a Project benefit or minimise a negative impact, where necessary and appropriate; Responsibility; for ensuring management measures are assigned necessary resources and are implemented; Timeframe; the rough schedule for implementation of management measures; Monitoring; mechanism by which implementation of management measures is to be verified; Evaluation; criteria according to which effectiveness of implementation of management measures is to be assessed.
The table below is intended to act as a framework document that sets out additional steps for Capricorn to consider in improving management of the social impacts identified in this study. The table provides a draft Benefit and Impact Plan, which defines the cooperation between Capricorn and the national/ local authorities in relation to maximising development opportunities and mitigation measures.
By combining the stages of a Benefit and Impact Plan with the recommendations for monitoring and evaluation, the “…relevant indicators based on the impacts and mitigation measures identified in the SIA” (BMP SIA Guidelines 2009) can be easily identified and cross referenced.
Table 1 sets out:
the measures which should be considered to mitigate potential impacts and maximise potential benefits; the timeframe for application of the measure and responsibility for putting it in place; and the plan for monitoring the effects of the measures and how the results of monitoring can be evaluated.
In accordance with the SIA Guidelines, the table below sets out the draft plans based on the results of the Social Impact Assessment. The final versions of the Benefit and Impact Plan, Monitoring Plan and Evaluation Plan will be produced following a period of consultation between Capricorn and the
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 7-1 Government of Greenland and taking account of the results of the public hearing process.
The final versions of these plans will form components of the Impact Benefit Agreement to be negotiated between Capricorn and the Government of Greenland following submission of the SIA.
7.2 MANAGEMENT PLAN/ BENEFIT AND IMPACT PLAN
The measures which form the draft framework for the Benefit and Impact, Monitoring and Evaluation Plan for social impacts identified in this study are summarised in Table 1.
Table 1 Summary of Mitigation Measures and Processes for Implementation
Area / Mitigation Responsibility Timeframe Monitoring Evaluation Local Employment & Workforce Undertake a preliminary Capricorn Drilling and post- Production of Success evaluated workforce assessment to drilling Period preliminary through the understand existing (2010) workforce identification of workforce capacity and assessment. current workforce where additional training capacity. is needed if project proceeded to development. Use local workforce for Capricorn Drilling Period Number of local Evaluate additional onshore support services Contractors (2010) workers employed employment against where suitable skills exist directly or indirectly predicted baseline, by the Project taking account of length of employment and any new skills developed. Local Procurement Undertake a business Capricorn Pre-Drilling Period Production of Success evaluated assessment to understand business based on existing supplies and Drilling Period assessment. identification of services available in (2010) business capacity. Greenland Maximise use of local Capricorn Pre-Drilling Period Local companies Using the results of companies for servicing Stena Drilling contracted by the monitoring, and supply (eg logistics Shipping and Drilling Period Project for services/ evaluate the and waste handling, fuel air transport (2010) supplies. provision of local and water supply) contractors Project spend on good and services local goods and for future drilling services. programmes against Performance this one to measure evaluation of local success. contractors.
Local Ports
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 7-2 Area / Mitigation Responsibility Timeframe Monitoring Evaluation Confirm expected Capricorn Prior to Record of Evaluate based on frequency and duration Shipping contractor commencement of communication with feedback and of port use to port port use and port authorities, records of authorities in Aasiaat and occupation of port demonstrated complaints from Sisimiut to verify space verification of other port users significance of impacts impacts during the Project.
Consider alternatives to Capricorn Prior to Documentation of Evaluate based on Sisimiut port for some Shipping contractor commencement of assessment of final use of ports activities in order to port use. alternatives. other than Sisimiut reduce capacity and based on constraints. Drilling Period Reduced use of feedback from other (2010) Sisimiut port where port users during appropriate the Project. Local Airports Provide schedule of Capricorn Prior to Record of Evaluate successful regular chartered flights Air transport commencement of communication with communications to/ from key airports in contractor air transport airport authorities; based on post- Kangerlussuaq, Ilulissat, documentation of Project feedback Aasiaat and drill rigs to Drilling Period any issues from key airports. air transport authorities. (2010)
Monitor airports from Capricorn Prior to reallocation Record of airport Evaluate based on where controllers have of airport tower opening hours assessment of been reassigned to ensure controllers before/ after change compared to capacity is not being reallocation of tower baseline conditions, compromised. Drilling Period controllers, as well feedback / (2010) as rate of on-time complaints received. flight arrivals/ departure.
Public Health Develop clear criteria & Capricorn Prior to arrival of Documentation of Evaluate based on conditions for use of local offshore or onshore procedures around records of incidents health services (including employees use of local health requiring health emergency situations); care under routine/ service resources in communicate these non-routine Greenland and criteria to health operations records of any providers & assess/ feedback / supplement capacity Documented complaints from where necessary analysis of capacity patients or health of health care to service professionals meet project needs. during the Project period.
Coordinate emergency Capricorn Prior to entry of Documentation of Evaluate planning Planning through the Greenland drilling rigs into comments from through successful Greenland Contingency Contingency Greenlandic waters Contingency emergency drills Committee to ensure Committee Committee to and simulations. consistency with national Emergency Plan; Evaluate in the procedures clear understanding event of a real of roles, emergency based on responsibilities, & response times for capacities appropriate measures. Hunting and Fishing
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 7-3 Area / Mitigation Responsibility Timeframe Monitoring Evaluation Pre-notification of Capricorn Prior to entry of Documentation of Through records of operations to hunting drilling rigs into consultation issues received, non- and fishing groups Greenlandic waters. meetings with conformances with hunters & fishermen the established in Project area procedure and feedback from local groups. Ongoing publication of Capricorn Drilling Period Schedule of Through records of drilling location and Vessel contractors (2010) broadcasts. issues received, non- vessel movements Record of vessel conformances with interactions. the established Record of incidents procedure and involving local feedback from local fishing/hunting groups. groups or individuals. Monitor impacts to local Capricorn Drilling Period Documentation of Through records of fishing, hunting (2010) ongoing complaints received, throughout the Project to consultation with vessel interactions identify and address hunters & fishermen with local groups, issues as they arise. in Project area, with non-conformances record of issues with the established raised and response. procedure and feedback from local groups. Ensure that there a Capricorn Drilling Period Availability of Records of Greenlandic speaker Shipping contractor (2010) Greenlandic-speaker communications available to Project to vessels; record of and of issues vessels that come into Greenlandic received, vessel contact with small local communications at interactions with boats sea local groups, non-
conformances with the established procedure and feedback from local groups. Further consultation will Capricorn Prior to entry of Documentation of Evaluate based on be undertaken to drilling rigs into consultation feedback and determine how any Greenlandic waters. meetings & records of potential impact on subsequent complaints from whales could be understanding of hunting groups monitored during the potential risks to during the Project. period of operations. whale; development Evaluate results of of monitoring of any marine mammal whale impacts if monitoring during warranted. the Project and any significant variation against the expected baseline. Tourism
ENVIRONMENTAL RESOURCES MANAGEMENT CAPRICORN GREENLAND EXPLORATION 1 7-4 Area / Mitigation Responsibility Timeframe Monitoring Evaluation Communicate plans for Capricorn Prior to entry of Record of Evaluate based on the drilling programme, drilling rigs into communication with feedback from including the location of Greenlandic waters Tourism Council; tourists and tourist drill rigs and use of & commencement of documentation of groups via the Sisimiut port, with port use. any issues Tourism Council, Tourism Council. plus any records of
delays or interactions between Project vessels and tourist vessels. Training and Skills Development Build on preliminary Capricorn Start with workforce Production of Evaluate based on workforce assessment to Greenland assessment during Training Needs implementation of undertake Training Operators Drilling Period Analysis for measures to address Needs Analysis (TNA) (2010) and then subsequent phases skills shortages for operations, should the build into industry of development. through national Project move into the focussed TNA prior structures and development phase, in to any future Development & through comparison order to understand development implementation of with future training capacity and operations, with training support workforce where support could be ongoing training through national assessments for provided. programmes over structures. subsequent drilling the long term programmes (to show whether local skills shortages are being addressed.
7.3 SUMMARY
The various plans provided above for addressing impacts and benefits, monitoring implementation and evaluating success are the starting point for future discussions towards completion of an Impact Benefit Agreement between Capricorn and the Government of Greenland.
The assessment of impacts and implementation of mitigation measures is targeted at a short-term, offshore exploration drilling programme. A number of measures have been identified to minimise the potential impacts and maximise the potential benefits of these operations over the Project period. It should be recognised, however, that identifying and addressing training needs and training capacity, reviewing local business capacity and suitability for servicing offshore operations and putting in place the resulting action plans and national programmes should be seen as part of a long-term strategy by the Greenland Government to address future potential opportunities in this sector, rather than a short term answer to meet temporary requirements of a single drilling programme.
The recent establishment of an operators association for exploration activities in Greenland will assist in coordinating future initiatives between the Greenland Government and the various operators to plan ongoing measures to identify and respond to any gaps in local skills or services.
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