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Sakhalin Energy Investment Company Ltd Classification: Unclassified BM Code: EP.17.03.07.04 Issue Purpose Approved for use September, 2009 Sakhalin Energy Investment Company Ltd. Biodiversity Action Plan Document Number: 0000-S-90-04-P-7123-00-E Revision 01 The copyright of this document is vested in Sakhalin Energy Investment Company LTD. All rights reserved. Neither the whole nor any part of this document may be reproduced, stored in any retrieval system or transmitted in any form or by any means (electronic, mechanical, reprographic, recording or otherwise) without the prior written consent of the copyright owner. The contents of this controlled document shall not be altered without formal approval of the document Custodian. 01 01 01 Biodiversity Action Plan Rev 01 Executive Summary Background Biodiversity is defined as the variability among living organisms of terrestrial, marine, and other aquatic ecosystems. Biodiversity and its associated ecological complexes are essential for effective functioning of healthy environments that provide services to support human life and livelihoods. It has received increasing emphasis by public and corporate organisations in recent years due to its key role in sustainable development. This emphasis is reflected in the National Strategy for the Conservation of Biodiversity in the Russian Federation, issued by the Russian Academy of Sciences and the Ministry of Natural Resources, which recognises the important role that commercial companies have in managing biodiversity through project activities and partnering with relevant organisations to achieve biodiversity goals. The conservation and protection of biodiversity is also addressed by the National Strategy for the Conservation of Rare and Endangered Species of Plants, Animals and Mashrooms, approved by the Ministry of Natural Resources of the Russian Federation in 2004. In line with these principles, Sakhalin Energy Investment Company (Sakhalin Energy, or SEIC) is committed to managing aspects of biodiversity that may be affected by its project activities. This commitment is reflected in Sakhalin Energy’s Commitment and Policy to Health, Safety and Environment, and in its Standard on Biodiversity, which states that Sakhalin Energy shall comply with applicable Russian Federation laws and regulations relating to biodiversity. Sakhalin Energy’s Biodiversity Action Plan (BAP) sets out Sakhalin Energy’s approach for fulfilling its commitments in respect of the management of biodiversity and ecological impacts arising from the construction process and during operations. It has been developed in conformance with corporate standards for biodiversity management, and in response to Lender requirements as specified in Sakhalin Energy’s Health, Safety, Environment and Social Action Plan (HSESAP). The structure and content of the BAP follows the guidelines of the International Petroleum Industry Environmental Conservation Association (IPIECA) for the development of biodiversity action plans, and also aligns with other international norms for BAP. Objectives The objectives of the BAP are to identify opportunities and actions to: • Minimise ecological impacts and to conserve biodiversity that could be affected by Sakhalin II’s activities; • Support the management of ecosystems essential for biodiversity conservation on Sakhalin; and • Engage with stakeholders to deliver both Sakhalin Energy’s commitments towards biodiversity interests and develop and support programmes / subjects of mutual interest. The BAP describes the identification and assessment of biodiversity interests potentially affected by Sakhalin II, and in a systematic and verifiable manner, the process of developing, implementing and monitoring actions that will contribute to the maintenance or enhancement of those interests. It presents a breadth and depth of detail, including significant work that has been undertaken to collate and assess existing data, to determine effects at the project level, and to provide management mechanisms for BAP implementation, particularly in relation to stakeholder interests. 0000-S-90-04-P-7123-00-E BM Code: EP.17.03.07.04 Page 3 of 167 Biodiversity Action Plan Rev 01 Determining Priorities for Management The BAP describes the rationale for the evaluation and determination of biodiversity priorities. Key criteria for priority selection include the social and ecological value placed on species and habitats, and the protection afforded them via legislation. Other considerations that were taken into account in determining priorities are: threatened species or ecosystems (including those not covered by legislation); areas of ‘natural’ or relatively intact habitat; habitats and areas supporting high species / habitat diversity; environments sensitive to potential impact; species and habitats where significant declines in populations and area have been documented and may be continuing; species of economic or social value; and areas and habitats that are considered important for providing and maintaining ecological processes and ecosystem function. While some biodiversity interests can be specifically singled out as having importance in relation to a single aspect, there is significant overlap between the various prioritisation criteria. Identified Biodiversity Priorities Accordingly, the following biodiversity priorities have been identified in relation to Sakhalin Energy’s environmental footprint: Species (and species groups) • All relevant species protected under Russian federal and local legislation, but with a particular focus on: o Steller’s sea-eagle o Siberian spruce grouse o Sakhalin taimen o Western Gray whale • Coastal and wetland birds of the Chaivo peninsula, including breeding Sakhalin subspecies of dunlin, Aleutian tern, spotted greenshank (if confirmed as breeding in the area) and migratory waterfowl; • Breeding birds of coniferous forest, including Siberian spruce grouse, long-billed murrelet, and black-billed capercaille; • Breeding birds of river valley mixed woodland, including spot-bill duck, mandarin duck and several species of owl; and • Salmonid fish populations of selected river systems (i.e. those that support significant areas of spawning and other habitat). Habitats • Dark coniferous forest – remaining blocks / areas of this habitat, particularly in the north of the island; • Larch-ledum forest – areas of intact habitat and well developed secondary forest; • Well developed and largely intact areas of secondary spruce-fir forest (e.g. Makarov mountains); • Mixed primary or well developed secondary deciduous-coniferous forest along river valleys; • Tracts of peatland and swamps supporting characteristic vegetation communities; • River catchments with significant areas of intact forest habitat and those supporting important salmon populations; • Shallow coastal lagoon systems and fringing wetland habitats; and 0000-S-90-04-P-7123-00-E BM Code: EP.17.03.07.04 Page 4 of 167 Biodiversity Action Plan Rev 01 • Coastal and marine waters in Aniva Bay and the northeast Sakhalin shelf. Determining Actions Significant effort has been made to avoid or minimise potential impacts on biodiversity interests during planning and construction of the project; many of the biodiversity priorities listed above are already recognised, managed and monitored via Sakhalin Energy’s HSE Management System. The BAP therefore aims to facilitate the management of biodiversity issues into and through the operations phase. The evaluation undertaken during the development of this BAP also considered the effectiveness of existing mitigation measures, and identifies the actions required to meet objectives for biodiversity management in relation to these impacts. Thus, actions have been identified to further manage habitat modification and fragmentation, the ecological effects of erosion, invasive species, induced access and disturbance. This BAP also highlights the need for oil spill response plans to address sensitive habitats and species. Implementation Implementation of the BAP requires an integrated approach. Already, commitments that are relevant to the management of biodiversity interests are included in Sakhalin Energy’s HSE- MS by way of the company’s Environmental Standards, the Environmental Monitoring Project (EMP), and HSESAP, all of which set the basis of the company’s obligations for environmental management. By using the existing strategies, plans, standards, procedures, and programmes of the HSE- MS, plus new action plans to cover gaps, biodiversity interests can be managed and monitored by a combination of elements conceptually understood as a biodiversity control framework. Thus, information on each priority will be consolidated into habitat and species action plans, including objectives and activities for protection of the biodiversity interest. Importantly, HAPs and SAPs will cross-reference existing controls under the HSE-MS. Sakhalin Energy manages biodiversity interests through an adaptive approach, using monitoring and baseline information to assess the biodiversity situation and achievement of BAP objectives. Ecological monitoring and analysis considers relationships between biotic and abiotic elements and evaluates trends in the health and integrity of species populations, communities, habitats and ecosystems, providing information for decision-making. The BAP therefore provides an overview of the company’s biodiversity monitoring programmes in relation to existing monitoring frameworks, such as those under the EMP and the HSESAP. Resource requirements for HAPs and SAPs (many of
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