WESTERN NEWFOUNDLAND & LABRADOR OFFSHORE AREA Strategic Environmental Assessment Update Draft Report Submitted to: Canada-Newfoundland and Labrador Offshore Petroleum Board 5th Floor TD Place, 140 Water Street St. John's, Newfoundland & Labrador Canada A1C 6H6 Submitted by: AMEC Environment & Infrastructure A Division of AMEC Americas Limited 133 Crosbie Road, PO Box 13216 St. John's, Newfoundland & Labrador Canada A1B 4A5 May 2013 AMEC TF 1282501 TABLE OF CONTENTS SECTION PAGE 1 INTRODUCTION ....................................................................................................................................... 1 1.1 Nature, Purpose and Context of the SEA Update ........................................................................................ 3 1.2 Document Organization ............................................................................................................................... 4 2 STRATEGIC ENVIRONMENTAL ASSESSMENT UPDATE: SCOPE, FOCUS AND APPROACH ............................... 5 2.1 The SEA Update and the Associated “Strategic Decision” ........................................................................... 5 2.2 Spatial and Temporal Boundaries ................................................................................................................ 6 2.3 SEA Update: Scoping Document .................................................................................................................. 8 2.4 Consultation Program .................................................................................................................................. 9 2.4.1 Public Open Houses .......................................................................................................................... 9 2.4.2 Stakeholder Meetings .................................................................................................................... 12 2.4.3 Aboriginal Engagement .................................................................................................................. 13 2.4.4 Other Submissions .......................................................................................................................... 13 2.4.5 Overview of Consultation Findings................................................................................................. 13 2.4.5.1 Environmental and Human Setting ..................................................................................... 14 2.4.5.2 Environmental Considerations and Possible Mitigation ..................................................... 15 2.4.5.3 Regulatory, Policy and Procedural Issues ........................................................................... 16 2.5 Identification of Valued Environmental Components ............................................................................... 19 2.6 SEA Update: Approach and Methodology ................................................................................................. 21 2.6.1 Environmental Setting .................................................................................................................... 22 2.6.2 Potential Environmental Interactions and Effects ......................................................................... 22 2.6.3 Environmental Mitigation Measures .............................................................................................. 22 2.6.4 Environmental Planning Considerations ........................................................................................ 22 2.6.5 Cumulative Environmental Effects ................................................................................................. 23 2.6.6 Information Availability and Requirements ................................................................................... 23 3 OFFSHORE OIL AND GAS ACTIVITIES IN THE WESTERN NL OFFSHORE AREA .............................................. 24 3.1 Overview of the Canada-Newfoundland and Labrador Offshore Petroleum Board and Associated Regulatory Processes ................................................................................................................................. 24 3.1.1 Land Rights Issuance Process ......................................................................................................... 25 3.1.1.1 Call for Nominations ........................................................................................................... 25 3.1.1.2 Calls for Bids ........................................................................................................................ 26 3.1.1.3 Exploration Licence ............................................................................................................. 26 3.1.1.4 Significant Discovery Licence .............................................................................................. 26 3.1.1.5 Production Licence .............................................................................................................. 27 3.1.2 Authorizations and Approvals ........................................................................................................ 27 3.1.2.1 Operating Licence ............................................................................................................... 28 3.1.2.2 Authorizations ..................................................................................................................... 28 3.1.2.3 Approvals ............................................................................................................................ 29 3.1.3 Environmental Assessment ............................................................................................................ 29 3.2 Generic Description of Oil and Gas Activities ............................................................................................ 31 3.2.1 Geophysical Surveys ....................................................................................................................... 31 3.2.1.1 Types of Geophysical Survey Methods ............................................................................... 31 3.2.1.2 Seismic Survey Equipment and Methods (Artificial Source Methods) ............................... 34 3.2.1.3 Sound Propagation During Offshore Seismic Surveys ........................................................ 35 3.2.1.4 Other Emissions and Potential Accidental Events and Malfunctions ................................. 36 3.2.2 Offshore Well Drilling ..................................................................................................................... 37 3.2.2.1 Offshore Drilling Installations ............................................................................................. 37 3.2.2.2 Offshore Drilling Activities .................................................................................................. 39 3.2.2.3 Potential Environmental Emissions Associated with Offshore Drilling Activities ............... 41 C-NLOPB • Western NL Offshore Area - SEA Update • Draft Report • May 2013 • AMEC Project #TF1282501 Page i 3.2.3 Onshore to Offshore Drilling .......................................................................................................... 44 3.2.4 Hydraulic Fracturing Activities ....................................................................................................... 46 3.2.5 Petroleum Production Activities .................................................................................................... 47 3.2.6 Potential Accidental Events and Malfunctions ............................................................................... 50 3.2.6.1 Spill History of the Offshore Petroleum Industry ............................................................... 50 3.2.6.2 Previous Spills in the NL Offshore Area .............................................................................. 57 3.2.6.3 Oil Spill Prevention and Response ...................................................................................... 65 3.3 Previous Oil and Gas Activity in the Western NL Offshore Area ............................................................... 70 3.4 Potential Future Offshore Exploration and Production Activities ............................................................. 75 4 ENVIRONMENTAL SETTING..................................................................................................................... 77 4.1 Physical Environment ................................................................................................................................. 77 4.1.1 Geology and Geomorphology ........................................................................................................ 77 4.1.1.1 Bedrock and Surficial Geology ............................................................................................ 77 4.1.1.2 Hydrocarbon Occurrence .................................................................................................... 84 4.1.1.3 Seismicity ............................................................................................................................ 85 4.1.1.4 Slope Stability...................................................................................................................... 88 4.1.1.5 Coastal Geomorphology ..................................................................................................... 89 4.1.2 Bathymetry ....................................................................................................................................