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Table of Contents

2 A Message from the Chair4 Board of Directors 4 Staff of The Maritimes Energy Association5 Committees of the Board6 Membership Report7 Association Activities & Reports: 2014/201512 Trade Missions Report14 Media Report15 Industry Submissions for 2014/201516 Provincial Industry Updates New Brunswick (NB) Nova Scotia (NS) Prince Edward Island (PEI)21 Appendix A: Current active leases and licenses in NB

23 Appendix B: Wind projects that received environmental approval in NS in 2015

23 Appendix C: Current onshore agreements in NS

23 Appendix D: Current active exploration licenses in NS

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Message from the Chair

It has been an exciting year for the energy industry in the Maritimes and I would like to thank you for your

support of the Maritimes Energy Association. We’ve seen several very encouraging developments in the

offshore and tidal sectors, and continue to strive for more development opportunities in our onshore sector.

In an industry that is constantly evolving, it remains one of our goals as The Maritimes Energy Association to

stay abreast of the constant changes and demands that the energy industry presents and how they affect

our members. Looking forward to 2016, climate change will be a very important conversation with the new

government of Canada, as well as with individual provinces.

Our association plays an important role in the energy industry in Eastern Canada - it is the place that

governments, investors, operators and producers are directed to by key stakeholders. We make our voice

heard through our submissions on local energy projects and also share the voice of industry leaders and

stakeholders through our various events and participation in international trade missions. Over the past

four years, the staff and the Board of Directors have worked together to make the association more inclusive

of all forms of energy. The Maritimes Energy Association team is strong and continues to move forward with

a commitment to achieving the goals that have been established.

In the past year we have been very busy! We hosted eleven events, organized three international pan-

Atlantic trade missions, held an extremely successful and newly revamped Core Energy Conference and

submitted six comments on energy projects in Eastern Canada. We have welcomed fifty new members and

raised thousands of dollars for our charitable partners. For the fourth year in a row, The

Maritimes Energy Association is one of the largest donors to Prostate Cancer Canada – Atlantic.

We are also very pleased to share that we finished the fiscal year in the black for the fifth year in a row!

Even with all of these accomplishments, our focus continues to be our members and the services that we

provide to them. Our daily Energy Bulletin continues to be a valuable resource and reference for members

as it provides them with current news from the industry as well as procurement opportunities. Whether it

is speaking at energy events, talking to decision-makers in the region or commenting on energy issues, our

most important responsibility is to support and represent local companies that employ thousands of people

and invest millions of dollars annually in our local communities. We strive to increase their opportunities

and potential in the energy industry locally, regionally, nationally and globally.

The Maritimes Energy Association was pleased to see the successful bids for the CNSOPB’s NS15-1 and now

having Statoil participate in our offshore E&P activities along with Shell, BP, Encana and ExxonMobil. We

were also very pleased to see the approval given to Shell Canada by the CNSOPB to drill exploratory wells

offshore Nova Scotia and that drilling is now underway by the Stena IceMAX. This is exciting news for our

region and the local energy sector as offshore development moves forward.

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The Maritimes Energy Association is a member of the New Brunswick Responsible Energy Development

Alliance which promotes responsible energy development and prosperity for New Brunswick led by the

development utilizing hydraulic fracturing technology. We look forward to seeing similar initiatives taking

place in Nova Scotia as well as the promotion of fact-based information needed to make informed decisions.

The LNG industry in Nova Scotia has seen its fair share of development this year with the National

Energy Board issuing import and export licenses to both BearHead LNG and Pieridae Energy. The

Energy East Pipeline continues to advance and we hope that favourable steps will be taken this year.

In other energy news, the Nova Scotia Government released its Electricity Plan for 2015-2040. This

comprehensive plan for Nova Scotia’s electricity future is centered on accountability, predictable and stable

rates, innovation and competition. Renewable generation and Emera’s Maritime Link project are important

elements to this plan.

Our association has been called a “strong voice for the energy industry in Eastern Canada.” We work with

governments, operators and other industry associations in a cooperative and collaborative effort to develop

and grow energy-related business. We strive to represent our member companies to the best of our ability,

and we strongly encourage our members to share your feedback with us and more importantly to let us

know how we can meet your expectations. Your feedback will allow us to assess and improve our services in

order to serve you better.

In closing, I would like to take this opportunity to thank my fellow Board members for their time and

dedication to our association. This is my last official association activity as the Chair of the Board of

Directors. I have thoroughly enjoyed my time as the Chair and the opportunity it has provided me to meet

so many hard-working and inspiring individuals from the many member companies. It has also been a

pleasure to sit on a board with so many talented and dedicated professionals. I look forward to seeing the association continue to grow and prosper in the coming years. The Maritimes Energy Association would not be where it is today without the dedication and commitment of our 2014/15 (“2015”) staff: Event Coordinator Adrienne Dean, Communications and Office Assistant Caitlin Gray, Business and Operations Manager Lori Peddle, Member Relations Coordinator Paula Broaders and CEO Ray Ritcey.

I invite you to read the following pages about the association’s activities as well as industry news from 2015. The past year has been a successful and memorable one and we look forward to an even more prosperous 2016.

Julie Hebert, P. EngChair – 2015 Board of Directors, The Maritimes Energy Association

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2015 Board of Directors

Chair, Julie Hebert – President, AMEC Black & McDonald

Vice-Chair, Darren Zwicker – New Brunswick Director – VP Facilities, Environmental Solutions Division of Terrapure Environmental

Secretary, Mike Morris – Renewable Energy Director

Treasurer, Paul Sanford – Regional Business Development Leader, Stantec Consulting

Past-Chair, Joe Fitzharris – Quality Manager, AMEC Black & McDonald

Rick Edwards – Member at Large – Area Manager, Atlantic Towing

Austen Hughes – Renewable Energy Director, VP Operations, Natural Forces

Carl Poirier – Member at Large - President & CEO, Carbon Capture and Storage Research Consortium of Nova Scotia (CCS Nova Scotia)

Amy Reid – Member at Large - Vice President - Atlantic Region, David Aplin Group

Stephen Sayle – Oil & Gas Director – CEO, SayleGroup Inc.

Bruce Strum – Member at Large - President, Strum Consulting

Stephen Wagner – Oil & Gas Director – Eastern Canada Manager, Baker Hughes

Mark Warren – Member at Large - Senior Project Manager, EastPoint Engineering

2015 Staff of The Maritimes Energy Association

Paula Broaders – Member Relations Coordinator

Adrienne Dean – Events Coordinator

Caitlin Gray – Communications and Office Assistant

Lori Peddle – Business & Operations Manager

Ray Ritcey – Chief Executive Officer

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Committees of the BoardExecutive Committee:

Julie Hebert, Chair, AMEC Black & McDonaldJoe Fitzharris, Past Chair, AMEC Black & McDonaldMike Morris, SecretaryPaul Sanford, Treasurer, Stantec ConsultingDarren Zwicker, Vice Chair, Terrapure Environmental

Closest to the Hole Golf Committee:

Mark Healy, AMEC Black & McDonald, Honourary ChairMatthew Beauchamp, Baker HughesChelsea Chisholm, David Aplin GroupKevin Dunphy, IKM TestingJennifer Matthews, CAPPBrett Spicer, Land & Sea InstrumentationAdrienne Dean, The Maritimes Energy Association

Core Energy Conference Committees:

Organizing Committee:

Julie Hebert, AMEC Black & McDonald, Chair Rick Edwards, Atlantic TowingJoe Fitzharris, AMEC Black & McDonald Mike MorrisSteve Sayle, SayleGroup Inc.Adrienne Dean, The Maritimes Energy Association

Programming Committee:

Joe Fitzharris, AMEC Black & McDonald, ChairMelissa Cooper, NS Department of EnergyJulie Hebert, AMEC Black & McDonaldLori MacLean, Encana CorporationAlice McCarron, ColourNoor Subeh, NS Department of EnergyAdrienne Dean, The Maritimes Energy Association

Core Golf Committee:

Mike Morris, ChairChelsea Chisholm, David Aplin GroupDavid Montgomery, Fulcrum TransportationRaye Myles, Aluma SystemsBryan Sayle, SayleGroup Inc.Adrienne Dean, The Maritimes Energy Association

Audit Committee:

Paul Sanford, Stantec Consulting, ChairJulie Hebert, AMEC Black & McDonaldJoe Fitzharris, AMEC Black & McDonaldLori Peddle, The Maritimes Energy AssociationRay Ritcey, The Maritimes Energy Association

Government Relations Committee:

Darren Zwicker, Terrapure Environmental, ChairJoe Fitzharris, AMEC Black & McDonaldCarl Poirier, CCS Nova ScotiaCaitlin Gray, The Maritimes Energy Association

Membership Committee:

Mark Warren, Eastpoint Engineering, ChairRob Green, K&D PrattPaula Broaders, The Maritimes Energy Association

Nominations Committee:

Joe Fitzharris, AMEC Black & McDonald, ChairRick Edwards, Atlantic TowingHeaton Rosborough, Rosborough Marine CentreMark Warren, Eastpoint EngineeringRobyn Webb, Halifax PartnershipPaula Broaders, The Maritimes Energy Association

Oil & Gas Committee:

Stephen Wagner, Baker Hughes, ChairStephen MacLellan, Corridor ResourcesColleen Mitchell, Atlantica Centre for EnergyPaul Sanford, Stantec ConsultingSteve Sayle, SayleGroup Inc.Bruce Strum, Strum ConsultingCaitlin Gray, The Maritimes Energy Association

Renewable Energy Committee:

Mike Morris, ChairAndrew Blackmer, Dillon Consulting LimitedCarys Burgess, EmeraAusten Hughes, Natural ForcesCarl Poirier, CCS Nova ScotiaKeith Towse, Lahave RenewablesJohn Woods, Minas EnergyCaitlin Gray, The Maritimes Energy Association

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Membership ReportIn 2015, The Maritimes Energy Association saw a 4% growth in membership from 305 to 317 member companies.

To increase the association’s profile and connect with industry representatives, the team played a role in several industry events over the past year:

AprilStaff representatives attended the Tri-City Mixer Tradeshow in Saint John, NB in April which is a joint venture of the Fredericton, Moncton, and Saint John Chambers of Commerce.

MayStaff representatives attended OTC Houston and All-Energy as part of the NS delegation which the association led.

JuneThe 2015 National Aboriginal Law Conference in Membertou, NS addressed the Nova Scotia Independent Panel on Hydraulic Fracturing. In addition, Ray attended the Public Talk on Hydraulic Fracturing with Dr. John Cherry and the Maritime Philanthropy Awards in which the association was nominated for Outstanding Small Business Philanthropist.

JulyAt SuperPort Days in Dundee, NS the association addressed energy opportunities in the province. Ray attended Dr. David Wheeler’s presentation at NSCC and toured the Dartmouth Coast Guard Base. Finally, Ray was a moderator at the 2015 Energy and Mines Ministers’ Conference.

AugustThe Encanex Open House took place and Ray attended a Hydraulic Fracturing Presentation at Dalhousie University featuring Maurice Dusseault.

SeptemberCumberland Energy Authority’s 1st Annual Energy Symposium.

OctoberWake Up Call Breakfast for PCC-Atlantic as well as the Caribbean Renewable Energy Forum (“CREF”).

NovemberThe Global Interdependence Center in Philadelphia hosted the Energy Interdependence in the Western Hemisphere Conference and the associated addressed Regional, National & Global Implications.

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Association Activities & ReportsEvents Report 2014/2015

Overview

The Maritimes Energy Association developed and hosted 11 events in fiscal 2015. These included a combination of briefings, supplier information sessions, networking events and the annual Core Energy Conference. Revenue and profit targets were exceeded and expenses were monitored closely and came in under budget.

Association events provide updates on procurement opportunities, project plans and developments within the industry. They also create valuable networking opportunities and provide for member companies the ability to promote their involvement through sponsorship. With so much activity in the region in 2015 there was certainly no shortage of topics to cover. A diverse mix of events contributed to over 1000 attendees over the course of the 2015 events calendar.

Briefings/Supplier Information Sessions

Our briefings in fiscal 2014/15 included the following topics:

• Oil & Gas 101 was held in November 2014 at the Halifax Harbourfront Marriott Hotel. Attendees were able to learn the basics of oil and gas from a variety of experienced speakers throughout the one-day event.

• Our Breakfast Briefing with BP Canada was held in April 2015 at the World Trade & Convention Centre and featured Mark Finley, General Manager of global energy markets and U.S. economics at BPas the keynote speaker. Mr. Finley addressed BP’s Energy Outlook 2035 which explores what the world’s energy mix may look like in the future.

• Our BP Canada Supplier Session was held in May 2015 at the Halifax Harbourfront Marriott and featured BP’s Regional Manager for Nova Scotia Anita Perry, BP Canada’s Regional Procurement Manager Muhammad Fahim and BP Canada’s Nova Scotia Project Logistics and Infrastructure Manager Eric Brizendine. This session was a great chance for attendees to hear an informal overview and discussion of BP’s logistics requirements, services to be contracted and related procurement processes and timelines.

• An Update on the Sable Offshore Energy Project with ExxonMobil Canada was held in June 2015 at the Halifax Harbourfront Marriott and featured Operations Superintendent Dylan Pugh and Decommissioning Project Manager Friedrich Krispin. Over 150 guests attended to hear an update on ExxonMobil’s decommissioning plans for the Sable Project.

• Our 2015 Briefing with the Canadian Gas Association’s Tim Egan presented by Heritage Gas was held in October at the World Trade & Convention Centre. Mr. Egan shared a national perspective on the value and opportunity presented as a result of the abundance of natural gas in North America. He also discussed existing and proposed infrastructure to bring more natural gas to Nova Scotia and how natural gas can help meet provincial objectives.

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Dinner Events

Annual Dinner

The Annual Dinner in February was once again a key networking event in our calendar and provided an opportunity to hear from Dr. David Wheeler, President and Vice-Chancellor of Cape Breton University and the Chair of the Nova Scotia Independent Panel on Hydraulic Fracturing. The dinner followed the Annual General Meeting (AGM) which marked the formal introduction of the 2015 Board of Directors. The event was held at the Halifax Harbourfront Marriott and attracted more than 200 guests. In addition, over $1,500 was raised for our charitable partner PCC-Atlantic.

Networking Events

Golf

Our annual Closest to the Hole Golf Tournament grew again in 2015 and was hosted at the Glen Arbour Golf Course in June. Players enjoyed a fun-filled day on the beautiful course. There were two BBQ stations on the course as well as several activities throughout the course run by various sponsors. The tournament had strong member support and raised over $12,000 for Prostate Cancer Canada-Atlantic.

Mixers

With the generous support of the association’s hospitality members, we hosted Jingle & Mingle in December 2014 at The Westin Nova Scotian. This complimentary event for members attracted close to 60 guests and was a wonderful opportunity for members to mingle and get into the holiday spirit. Mixers are a great way to give back to our members and sponsors while providing them with excellent networking opportunities.

Core Energy Conference

The 2015 Core Energy Conference at the end of September provided a definitive overview of the energy sector in our region and offered updates on the direction that several of the major projects will take in 2016. This year’s conference featured high-profile speakers from all over North America and covered all aspects of the energy industry.

The conference sessions were held over two days at Pier 21, the Canadian Museum of Immigration in Halifax. An Industry Gallery was developed again this year to showcase sponsors and member companies through displays to provide exposure.

Core Energy is the only conference in Canada that covers the complete energy sector; onshore and offshore, renewable and non-renewable, domestic and export markets. Topics at the 2015 conference included petroleum resource development, Nova Scotia LNG, marine renewable energy, regulatory processes, downstream energy solutions, electricity, Aboriginal/First Nations Engagement and hydraulic fracturing. Nova Scotia Energy Minister, the Honourable Michel P. Samson addressed the delegates at the beginning of the conference and keynote presentations were delivered by Mr. Lance Mortlock, Partner at Ernst & Young LLP and Executive Editor & Chief Forecaster Kurt Abraham from World Oil Magazine.

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There was extensive media coverage of the event locally as well as nationally. Media personnel attended from Platts (Calgary), CBC News, CTV News, Global News, The Chronicle Herald, All Nova Scotia, The Canadian Press and Radio Canada. Topics dicussed in these news articles include hydraulic fracturing in Nova Scotia, offshore exploration and development in Nova Scotia and the expansion of the local tidal industry.

We thank the following speakers and moderators for their contribution to the success of the 2015 Core Energy Conference:

Julie Hebert, President, AMEC Black & McDonald, Chair of The Maritimes Energy AssociationLance Mortlock, Partner, Canadian and Oil & Gas Strategy Lead, Ernst & Young LLPThe Honourable Michel P. Samson, Nova Scotia Minister of EnergyNancy Phillips, Director Business Development, Halifax PartnershipRobert O’Connor, Canada Exploration Manager, BPSandy MacMullin, Executive Director Petroleum Resources, Nova Scotia Department of EnergyMike Whalen, General Manager, Maritimes & Northeast PipelineMary Ellen Donovan, Q.C., Chair, QUEST NSRaymond Gorman, Q.C., Chairman, New Brunswick Energy & Utilities BoardPeter W. Gurnham, Q.C., Chair, Nova Scotia Utility & Review BoardTony Wright, General Manager, FORCEDr. Sue Molloy General Manager, Black Rock Tidal PowerDana Morin, Director of Business Development, Fundy TidalJeremy Poste, OpenHydro Canada Country Manager, Cape Sharp TidalCheryl Hodder, Q.C., Partner, McInnes CooperNeil Larlee, Director, Strategic Planning, New Brunswick PowerStephen MacDonald, Chief Executive Officer, EfficiencyOneGilles Volpé, General Manager, Enbridge Gas New BrunswickPaul Sanford, Regional Business Development Leader, StantecNancy G. Rubin, Q.C., Partner, Stewart McKelveyChuck Hartlen, Executive Vice President, Customer Experience, Nova Scotia PowerRick Janega, President & CEO, Emera NewfoundlandRosalie Francis, Articled Clerk, Burchells LLPEric Christmas, Director of Operations, Beaubassin Mi’kmaq Wind Management Ltd.Steve Parsons, General Manager, Eskasoni Corporate DivisionKurt Abraham, Executive Editor/Chief Oil Forecaster, World Oil MagazineMurray Coolican, Deputy Minister of Energy, Province of Nova ScotiaColleen Mitchell, President, Atlantica Centre for EnergyFrank Atherton, Deputy Chief Medical Officer of Health, Nova Scotia Department of HealthSteve Moran, President & CEO, Corridor Resources Inc.Ray Ritcey, CEO, The Maritimes Energy Association

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Salt Water Mixer

On the first evening of the Core Energy Conference, we hosted the inaugural Salt Water Mixer. This event included a harbour boat cruise followed by a lobster dinner at Murphy’s on the Water. It was a popular networking event for conference delegates and association members and the weather couldn’t have been better. The event featured a Dunk Tank Challenge where volunteers raised funds for Prostate Cancer Canada-Atlantic. At the end of the night, each member of the Executive Dunk Panel got dunked into an ice cold tank of water. The event raised $5,000 for our charitable partner, Prostate Cancer Canada – Atlantic.

Core Golf

The 2015 Core Golf Tournament was the closeout event to the Core Energy Conference. On October 16th, golfers took to the fairways at the Glen Arbour Golf Course. In addition to a great day on the course, golfers also helped raise over $1,600 for FEED Nova Scotia.

Charitable Partnerships

The Maritimes Energy Association continued to support our charitable partners by including a fundraising component to each of the following events:

Annual Dinner: Prostate Cancer Canada-Atlantic

Closest to the Hole Golf Tournament: Prostate Cancer

Canada-Atlantic

Core Energy Conference: Syria Emergency Relief Fund

Salt Water Mixer: Prostate Cancer Canada-Atlantic

Core Golf Tournament: FEED Nova Scotia

These events raised over $20,000 for our charitable partners in 2015. We are proud to announce that for the third consecutive year, The Maritimes Energy Association was the third largest donor to Prostate Cancer Canada – Atlantic raising $17,000 over the past year.

Executive Dunk Panel at the Salt Water Mixer

The Heritage Gas Team at Core Golf

Association Chair Julie Hebert addresses delegates at the 2015 Core Energy Conference

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SponsorsOur many events and activities would not be possible through the year without the support and commitment of our many sponsors. Thank you to our generous 80+ sponsors over the past year:

Aluma SystemsAMEC Black & McDonaldAtlantic Business InteriorsAtlantic TowingBaker HughesBearHead LNGBlue Water GroupBP Canada Energy Group ULCBreakwater GroupCanadian Gas AssociationCAPPCherubini Group of CompaniesClean Earth TechnologiesCommissionaires Nova ScotiaCougar Helicopters Inc.David Aplin GroupDominion Diving Ltd.DSS MarineDurty Nelly’sEast Coast Catering Ltd.Emera Inc.EM&I StantecEncana CorporationEncanexEnterprise Truck RentalEntiér Services Enviro Systems Inc.ExxonMobil CanadaFairfield Inn & Suites

Falck Safety ServicesFisher Transport LimitedFulcrum TransportationGolder AssociatesHalifax Marriott HarbourfrontHeritage Gas LimitedHiTech CommunicationsHNZ HelicoptersHSE IntegratedI. H. MathersIKM TestingIntegra TechnologiesInvestors GroupJohnson Inc.K & D PrattLand & SeaManga HotelsMaritimes & Northeast PipelineMaritime TravelMcInnes CooperMulgrave Machine WorksNatural Resources MagazineNOV WilsonNS Dept. of EnergyOceaneering Canada Ltd.Pennecon Energy Hydraulic Systems

Pennecon LimitedPF Collins

PomerleauPremiere Executive SuitesPort of ArgentiaProvincial Airlines Ltd.Residence Inn – MarriottRodd Hotels & ResortsSandalsSafety Step CanadaSayleGROUP Inc.SBM OffshoreSBW Wealth Management & Employee Benefits

Secunda Canada LP Shell CanadaSLR Consulting Ltd.SPE InternationalStantec ConsultingStrum ConsultingSurvival Systems TrainingTelusTerrapure EnvironmentalThe Lord Nelson Hotel & SuitesThe OGMThe Prince George HotelTTL Supply Ltd.Univar Canada Ltd.WeatherfordWorley ParsonsWSP Canada Inc.

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Trade Missions ReportThe Maritimes Energy Association leads a number of trade missions each year. The purpose of these missions is to introduce companies from Maritimes Canada, that are part of the energy industry supply chain, to new export markets and to expand current export opportunities. The association considers these missions an added service to member companies, although the missions are not restricted to just member companies. Over the past year, our association was involved in three trade missions and this is once again proof of the increasing global reach of the energy supply chain in the Maritimes.

The missions are organized with the support, cooperation and collaboration of the Atlantic Canada Opportunities Agency (ACOA), the International Business Development Agreement (IBDA) and the Nova Scotia Department of Energy (NSDOE). We would like to thank everyone involved for their continued confidence in our ability to lead such missions. Without the support from these organizations, leading these missions would not be possible. Funding received from ACOA, IBDA and/or the NSDOE enable the association to book trade show space, hire matchmakers and pay for booth design and construction.

Trade Missions are about opening doors and developing long-term trade and investment opportunities in foreign markets for Maritime Canadian businesses in the energy supply chain. They also help build the profile and promote the strength of Atlantic Canada’s energy sector, while helping our businesses position themselves in new markets.

These missions are a significant component of Maritime Canada’s international business development efforts and provide greater public profile for delegate companies and organizations, while expanding their local business network at the same time.

In 2015, The Maritimes Energy Association played an important role in the following successful missions:Offshore Technology Conference (OTC) Houston (Houston, TX, USA) – Organized in partnership with the NSDOE, twenty-six companies joined the Nova Scotia delegation and travelled to Houston in May. Founded in 1969, the Offshore Technology Conference is the world’s top event for the development of offshore resources in the fields of drilling, exploration, production, and environmental protection. This year’s sold-out exhibition was the largest in the history of the show. OTC Houston 2015 attracted 94,700 attendees from 130 countries and hosted 2,682 exhibiting companies. International companies made up 42 percent of exhibitors. The event featured 11 panel sessions, 29 executive keynote presentations at luncheons and breakfasts, as well as nearly 300 technical paper presentations.

The Nova Scotia Booth at OTC Houston 2015

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Caribbean Renewable Energy Forum (CREF) (Miami, Florida, USA) – Supported by ACOA and the NSDOE, eleven companies travelled to Miami as part of the Atlantic Canada Delegation in October. CREF provides a compelling mixture of world-class content and numerous opportunities to meet all of the key participants in this rapidly emerging renewables market. CREF 2015 is considered to be the largest annual gathering of the Caribbean energy market. 492 delegates from 41 countries, a record-breaking number of delegates, attended CREF this year. 21 Caribbean jurisdictions were also represented at CREF either by their government or by their utility, or in many instances, by both. In addition, CREF was proud to host over 100 speakers and moderators. CREF continues to grow every year and provides a region-wide opportunity for renewables development opportunities.

The Atlantic Canada Booth at All-Energy 2015

All-Energy (Glasgow, Scotland, UK) – Supported through funding from the IBDA, five companies travelled to Glasgow as members of the Atlantic Canada delegation in May. All-Energy is the UK’s largest renewable energy exhibition and conference and the 2015 event took place in Glasgow. There was a record-breaking attendance of more than 8,250 attendees from over 50 countries at the 15th show in the annual series. Previous events had been held in Aberdeen, with attendance at All-Energy 2014 being 6,875. All-Energy showcases the complete range of renewable and sustainable technologies through a world-class multi-stream conference. Alongside the major exhibition of 450+ exhibitors in 2015, the world-class conference featured over 440 conference and seminar speakers who took part in 120 hours of discussion, debate and knowledge sharing.

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Media Report

The association distributed eight news releases this past year:

January 12, 2015: Dr. David Wheeler to speak at 2015 Annual Dinner.

April 28, 2015: The Maritimes Energy Association Announces Appointment of New Chief Executive Officer.

May 4, 2015: Nova Scotia well-represented at OTC Houston.

September 22, 2015: Detailed agenda for 2015 Core Energy Conference now available.

October 16, 2015: Nova Scotia sending 11 companies to CREF.

October 22, 2015: Heritage Gas Presents a Natural Gas Update with Timothy M. Egan.

October 23, 2015: The Maritimes Energy Association Commends Decision By CNSOPB.

The association was featured and represented in several news stories and outlets throughout the past year:

February Association Chair Julie Hebert was quoted in an article in The Chronicle Herald regarding operational issues with Deep Panuke.

MayThe announcement of Deep Panuke becoming a seasonal operation and the announcement of ExxonMobil’s decommissioning of the Sable Project in May brought media coverage including quotes from CEO Ray Ritcey in The Chronicle Herald as well as CBC news. There were also numerous articles covering the announcement of Ray Ritcey as the new CEO of the association at the beginning of May. Also in May, CEO Ray Ritcey was featured on the Rick Howe Show on News 95.7 regarding his new role as CEO. To conclude media activity in May, John Brannen from Burnside News did a feature piece on the Nova Scotia Delegation to OTC Houston in May as well and the association did a response to a piece in The Chronicle Herald regarding the Nova Scotia Delegation at OTC Houston.

JuneThe association shared its thoughts on gas supply, pipeline expansion and development opportunities in an article in The Chronicle Herald. The association also shared its enthusiasm for Shell’s approval to drill offshore Nova Scotia in an article featured in The Chronicle Herald.

July Ray was quoted in the Cape Breton Post regarding the CNSOPB’s Call for Bids NS15-1.

SeptemberThere were numerous articles regarding our Core Energy Conference. The association also published an op-ed in The Chronicle Herald in September regarding Emera’s acquisition of TECO Energy. Please view the Core Energy Conference part of the “Events” section of the report regarding media coverage of the conference.

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OctoberThe Maritimes Energy Association was quoted in a CTV News article regarding the arrival of the Stena IceMax offshore Nova Scotia.

NovemberThe Maritimes Energy Association was quoted in Upstream regarding the extension of the George’s Bank Moratorium.

DecemberThe Maritimes Energy Association provided thoughts on the Sable Decommissioning Project and what it means for Nova Scotia in Upstream.

Industry Submissions for 2015The Maritimes Energy Associations recognizes the importance of engaging in public consultation processes and supporting the responsible development of the region’s energy resources, whether they be onshore or offshore, renewable or non-renewable, domestic or export markets.

Throughout 2015 the association commented on a total of nine projects or topics covering the three Mari-time Provinces, ranging from offshore safety and development to LNG site construction. All submissions can be viewed under the Association Documents section on our website.

Below is a list of the submissions made throughout the year and a short summary of the project or the Association’s position.

Date Project or Topic17 March 2015 Letter of Support: Approval of the Bear Head LNG Con-

struction in the Strait Area Region19 May 2015 Letter of Comment: Pieridae Energy Canada Ltd.’s

Application for License to Export & Import21 May 2015 Letter of Support: Environmental Assessment

Approval of Bear Head LNG Construction29 June 2015 Written Comment: CNSOPB’s Call for Bids NS15-116 July 2015 Nomination of The Municipality of the District of Guys-

borough for the CanWEA Group Leadership Award8 September 2015 Written Comment: BP Scotian Basin Exploration

Drilling Project Description Summary9 September 2015 Letter of Support: Upgrades to Emera Inc.’s Corporate

Headquarters on 5151 Terminal Rd.

15 October 2015 Written Comment: Draft Guidelines for the Preparation of an Environmental Impact Statement for the BP Scotian Basin Exploration Drilling Project

20 November 2015 Written Comment to the New Brunswick Commission on Hydraulic Fracturing

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Industry Updates

New Brunswick

Wind & Biomass

The government of New Brunswick is committed to increasing the amount of electricity from new renewable sources in New Brunswick to 40 per cent by 2020. At this time, approximately 28 per cent comes from renewable sources including wind, biomass and hydro-electric. New Brunswick’s major wind energy infrastructure consists of 113 turbines with a total generating capacity of 294 megawatts.

The five areas proposed for wind development are the Bay of Fundy, Tantramar, Miramichi Bay, Acadie/Chaleur and in-land New Brunswick.

There are currently three large-scale biomass facilities in New Brunswick which are using woody-based biomass to produce electricity:

The Twin Rivers Paper (87.0MW), Irving Pulp & Paper (30.0MW) as well as AV Cell Inc. (17.6MW) & Nackawic (25MW).

Oil & Gas

New Brunswick has a long history of oil and natural gas production dating back to 1859. Frederick Brook Shale is located in New Brunswick and extends over the southeastern part of the province. It is estimated that there are 78 trillion cubic feet of gas in the areas that have been located up until now. There are currently producing natural gas and oil wells from two operators: Corridor Resources and Contact Exploration. Nine companies hold a Crown licence to search or lease oil and gas within New Brunswick. Currently there are 24 active leases and 32 licences to search for oil and natural gas in New Brunswick totalling over 1.4 million hectares. Please refer to Appendix A for current list of active leases and licenses.

The Government of New Brunswick released its first progress report on the Oil and Natural Gas Blueprint in June 2014 which is a plan to “address the strategic economic, social and public health dimensions” of the province’s oil and natural gas sector. The report also highlighted the development of a new natural gas royalty regime, ensuring that NB residents benefit from the province’s natural resources.

Fredericton hosted the 40th Annual Exploration, Mining and Petroleum Conference in early November 2015 which attracted close to 300 delegates.

There continues to be a moratorium on hydraulic fracturing in the province following a review process that took place in 2010. The New Brunswick Responsible Energy Development Alliance (NBREDA) was established this past year which promotes responsible energy development and prosperity for New Brunswick led by development utilizing hydraulic fracturing technology. In addition, the New Brunswick Commission on Hydraulic Fracturing was created in March 2015 with the appointment of a three person panel. This panel, identified as a ‘citizen’s panel’ began work in May 2015 and engaged in public consultation.

Tidal

The Bay of Fundy, located in New Brunswick, has the highest tides in the world. New technologies with low environmental impact are currently being developed and tested in the Fundy region. New Brunswick continues to research the marine environment and any potential impacts from future tidal energy development. Any tidal energy development on the New Brunswick side of the Bay of Fundy will be done in consultation with all Bay of Fundy stakeholders.

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Nova Scotia

Wind

Nova Scotia’s wind portfolio continued to grow in 2015. Overall, four wind projects received environmental assessment (EA) approval by the Minister of Environment. Please refer to Appendix B for a list of these projects. Among these projects, construction began on the Porters Lake Wind Farm in Spring 2015 and on the Harriettsfield/Williamswood project inSummer 2015.

The South Canoe Wind Farm completed the construction process in June 2015 and began project operations. South Canoe includes 34 wind turbines which will produce 102 MW of power - enough to serve approximately 32,000 homes.

The Sable Wind Project, founded by the Municipality of Guysborough and Nova Scotia Power was the recipient of the Group Leadership Award by CanWEA this past Spring. The Sable Wind Farm is the only large-scale project in Nova Scotia that is majority-owned by a municipality. It is currently in operation and aims to play a key role in the provincial renewable energy development and help reach Nova Scotia’s renewable electricity target of 25% generation from renewable energy by 2015 and 40% by 2020.

Scotian Windfields also continue to grow their wind farms in the province. In January 2015, their Martock Ridge Wind Project began producing electricity for the West Hants and Windsor distribution grid. The project has a capacity of 6 MW and generates enough electricity to power approximately 1,870 homes in Nova Scotia.

Oil & Gas

Onshore

There continues to be legislation in place that bans hydraulic fracturing in Nova Scotia as a method to extract natural gas. However, there are several Liquefied Natural Gas (LNG) projects underway in the province. The National Energy Board of Canada issued import and export licenses to both Pieridae Energy and BearHead LNG. BearHead LNG received environmental approval in May 2015 and Construction of the BearHead LNG facility is scheduled to begin in 2016. Please refer to Appendix C for a list of current onshore agreements.

Sable Wind ProjectCourtesy of the Municipality of the District

of Guysborough and Nova Scotia Power Inc.

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Offshore

In October 2015, Shell received regulatory approval from the CNSOPB to begin drilling in the Shelburne Basin within a four-year window. The first phase of the drilling program includes drilling two exploratory wells: Cheshire and Monterey Jack. The drill ship, Stena IceMAX arrived offshore Nova Scotia in late October and has begun drilling.

BP is currently conducting a 3D Wide Azimuth (WAZ) seismic survey in and near Exploration Licenses (“ELs”) 2431, 2432, 2433, and 2434. This survey utilizes a five vessel fleet inclusive of two streamer/source vessels and three additional source vessels. The 3D WAZ

seismic survey occurred from mid-May to mid-September. BP acquired data over an area of approximately 7,752 km2. Water depths in the 2014 Seismic Activity Area ranges from approximately 100–4,000 m.

Call for Bids NS15-1 was issued in April 2015 for Exploration Licences consisting of nine parcels located on the western and central Scotian Shelf and Slope as well as on the Scotian Shelf in the Sable Subbasin. It was announced in early November that Statoil Canada Ltd. was the successful bidder for Parcels 1 and 2 for $82 million dollars. Please refer to Appendix D for a current list of Offshore Exploration Licenses.

Photo courtesy of Shell Canada

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Tidal

Following the installation of their underwater power cables in October 2014, the Fundy Ocean Research Center for Energy (FORCE) expanded their team in 2015, carried out significant marine activity and established their second Environmental Effects Monitoring Report as part of their Environmental Effects Monitoring Program. In addition, they introduced two advance underwater monitoring platforms in July which will provide real-time data on currents and turbulence, marine life activity, noise levels and seabed stability.

In December 2014, the following four FORCE developers received approval through Nova Scotia’s developmental feed-in tariff program for a total of 17.5 megawatts of electricity: Minas Energy (4 MW), Black Rock Tidal Power (5 MW), Atlantis Operations Canada, (4.5 MW) and Cape Sharp Tidal Venture (4 MW). In 2015, Cape Sharp Tidal awarded $33 million in contracts to local Nova Scotia companies as part of its commitment to invest 70 per cent of Phase 1 project costs locally to help grow the Province’s emerging tidal energy industry.

The Annapolis Tidal Power Plant, the first tidal power plant in North America, came online in 1984. It continues to generate 80 to 100 megawatt hours every day depending on the tides.

Maritime Link & Electricity

The Maritimes Energy Association has been a vocal supporter of the Maritime Link project, recognizing the Maritime Link and Muskrat falls as an enabling project. Not only will it diversify the region’s energy portfolio, but it will also make Nova Scotia part of an energy loop rather than at the end of the transmission line. The Maritime Link is expected to be commissioned in 2017.

In early September, Emera Inc. purchased TECO Energy , a U.S. energy company for $10.4 B US. The acquisition is expected to close in 2016 and will nearly double the size of its employees and asset base as well as provide services to over 2.4 million natural gas and electric customers. Emera also published its property development plans for its recently purchased building on Terminal Road in Halifax including the construction of a pedway. This renovation will provide a safer travel route and increased energy efficiency while showcasing innovative design.

Energy East

Energy East is a 4,600-kilometre pipeline that will carry 1.1 million barrels of crude oil per day from Alberta and Saskatchewan to refineries in Eastern Canada. Currently the main components are pipeline conversion, the construction of new pipeline and the construction of new pipeline facilities. The project continues to advance.

Photo courtesy of FORCE

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Prince Edward Island

Wind & Electricity

Prince Edward Island (PEI) is a leader in producing wind electricity. Their largest current wind farm has a generating capacity of 99 MW. It was established by GDF Suez North America and is located in West Cape.

Another large-scale project developed by the PEI Energy Corporation is the Hermanville/Clearspring Wind Farm which was commissioned in January 2014. The 30 MW project consists of ten ACCIONA AW116/3000 turbines.

With the Hermanville/Clearspring Wind Farm, 30% of Prince Edward Island’s energy demands are met by wind energy. This project promises to generate more than 110 million kilowatt-hours of emission-free electricity for PEI residents each year and has also been an economic generator for the province.

Prince Edward Island is host to the Wind Energy Institute of Canada, established in 1981 with the purpose of “advancing the development of wind energy through research, testing, innovation and collaboration.”

PEI reached a milestone for its underwater cable project on October 1, 2015 when it submitted the Environmental Impact Assessment Report for the proposed two new underwater electricity cables to the mainland. The 360 MW connection will be operated by Maritime Electric and owned by the province of PEI through the PEI Energy Corporation. If approved, construction will begin in 2016, with a scheduled completion date of June 2017. This project will provide energy security as well as opportunity for growth.

Oil & Gas

While there has yet to be commercial production of oil and gas in Prince Edward Island, the province does have a long history of exploration. The first offshore well in Atlantic Canada was drilled in 1943 off the coast of the province in eight meters of water, reaching a depth of 4,479 meters.

The most recent wells drilled in the province were in 2007. “Green Gables #3” was drilled by Corridor Resources to a depth of 2548 metres, and “New Harmony #1” was drilled by Corridor Resources / Petroworth Resources Inc. to a depth of 3234 metres. In total sixteen exploratory wells and one re-entry well have been drilled on and around the island.

Photo courtesy of the Wind Energy Institute of Canada

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APPENDIX A

LICENCE/LEASE RIGHT HOLDER FROM TO HAONG/lse 01-01R Kicking Horse Energy Inc. 12-Jul-02 9-Feb-17 717.80

ONG/lse 01-01/44 Kicking Horse Energy Inc. 12-Jul-02 9-Feb-17 359.50ONG/lse 03-02/55abgh Kicking Horse Energy Inc. 14-Feb-03 9-Feb-17 89.85ONG/lse 07-02 Kicking Horse Energy Inc. 10-Feb-07 13-Feb-17 4,315.30ONG/lse 07-05 Kicking Horse Energy Inc. 26-Oct-07 9-Feb-17 359.40ONG/lse 09-06 Kicking Horse Energy Inc. 14-Feb-09 13-Feb-17 4,675.90ONG/lse 13-01 Kicking Horse Energy Inc. 1-Dec-13 30-Nov-18 629.10ONG/lse 01-01 Pieridae Production Limited Partnership 12-Jul-02 9-Feb-17 6,375.90ONG/lse 01-01/27 Pieridae Production Limited Partnership 12-Jul-02 9-Feb-17 359.10ONG/lse 01-01/36 Pieridae Production Limited Partnership 12-Jul-02 9-Feb-17 359.20ONG/lse 01-01/85ijop Pieridae Production Limited Partnership 12-Jul-02 9-Feb-17 89.90ONG/lse 01-01/86 Pieridae Production Limited Partnership 12-Jul-02 9-Feb-17 359.20ONG/lse 07-01 Pieridae Production Limited Partnership 10-Feb-07 9-Feb-17 5,032.40ONG/lse 07-03 Pieridae Production Limited Partnership 10-Feb-07 9-Feb-17 718.40ONG/lse 07-04 Pieridae Production Limited Partnership 10-Feb-07 9-Feb-17 1,076.70ONG/lse 74-01 Irving Oil Limited 15-Mar-09 14-Mar-19 2,153.70ONG/lse 13-02C Corridor Resources Inc. 31-Dec-13 30-Dec-16 55,006.00ONG/lse 06-01 Corridor Resources Inc. 16-Jun-06 15-Jun-21 16,564.00ONG/lse 06-02 Corridor Resources Inc./PCS 16-Jun-06 15-Jun-21 1,441.00ONG/lse 09-01 Corridor Resources Inc./PCS 26-Jan-09 25-Jan-19 14,784.00ONG/lse 07-06A First Sahara Energy Inc. 26-Oct-07 25-Oct-17 1,054.48ONG/lse 07-06B First Sahara Energy Inc. 26-Oct-07 25-Oct-17 3,888.78ONG/lse 12-01R Beneficial Energy Group 13-Nov-11 12-Nov-16 8,221.40ONG/lse 12-04 Beneficial Energy Group 23-Nov-09 21-Nov-17 5,912.96 Licence to Search: ONG/lic 10-01 SWN Resources Canada, Inc. 17-Mar-10 16-Mar-21 35,473.60ONG/lic 10-02 SWN Resources Canada, Inc. 17-Mar-10 16-Mar-21 36,061.30ONG/lic 10-03 SWN Resources Canada, Inc. 17-Mar-10 16-Mar-21 35,123.00ONG/lic 10-04 SWN Resources Canada, Inc. 17-Mar-10 16-Mar-21 36,089.00ONG/lic 10-05 SWN Resources Canada, Inc. 17-Mar-10 16-Mar-21 35,603.11ONG/lic 10-06 SWN Resources Canada, Inc. 17-Mar-10 16-Mar-21 31,851.33ONG/lic 10-07 SWN Resources Canada, Inc. 17-Mar-10 16-Mar-21 34,498.61ONG/lic 10-08 SWN Resources Canada, Inc. 17-Mar-10 16-Mar-21 32,898.24ONG/lic 10-09 SWN Resources Canada, Inc. 17-Mar-10 16-Mar-21 32,698.14ONG/lic 10-10 SWN Resources Canada, Inc. 17-Mar-10 16-Mar-21 28,017.01

Current active leases and licenses in New Brunswick:

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ONG/lic 10-11 SWN Resources Canada, Inc. 17-Mar-10 16-Mar-21 34,687.61ONG/lic 10-12 SWN Resources Canada, Inc. 17-Mar-10 16-Mar-21 32,682.35ONG/lic 10-13 SWN Resources Canada, Inc. 17-Mar-10 16-Mar-21 34,528.14ONG/lic 10-14 SWN Resources Canada, Inc. 17-Mar-10 16-Mar-21 32,390.50ONG/lic 10-15 SWN Resources Canada, Inc. 17-Mar-10 16-Mar-21 34,772.60ONG/lic 10-16 SWN Resources Canada, Inc. 17-Mar-10 16-Mar-21 35,247.60ONG/lic 10-17 SWN Resources Canada, Inc. 17-Mar-10 16-Mar-21 34,530.08ONG/lic 10-18 SWN Resources Canada, Inc. 17-Mar-10 16-Mar-21 34,558.72ONG/lic 10-19 SWN Resources Canada, Inc. 17-Mar-10 16-Mar-21 25,291.60ONG/lic 10-20 SWN Resources Canada, Inc. 17-Mar-10 16-Mar-21 35,162.10ONG/lic 10-21 SWN Resources Canada, Inc. 17-Mar-10 16-Mar-21 33,757.81ONG/lic 10-22 SWN Resources Canada, Inc. 17-Mar-10 16-Mar-21 34,776.10ONG/lic 10-23 SWN Resources Canada, Inc. 17-Mar-10 16-Mar-21 35,463.70ONG/lic 10-24 SWN Resources Canada, Inc. 17-Mar-10 16-Mar-21 32,217.43ONG/lic 10-25 SWN Resources Canada, Inc. 17-Mar-10 16-Mar-21 27,107.43ONG/lic 10-26 SWN Resources Canada, Inc. 17-Mar-10 16-Mar-21 10,042.58ONG/lic 10-27 SWN Resources Canada, Inc. 17-Mar-10 16-Mar-21 20,358.38ONG/lic 10-28 SWN Resources Canada, Inc. 17-Mar-10 16-Mar-21 35,466.76ONG/lic 10-29 SWN Resources Canada, Inc. 17-Mar-10 16-Mar-21 33,164.50ONG/lic 10-30 SWN Resources Canada, Inc. 17-Mar-10 16-Mar-21 24,732.00ONG/lic 10-31 SWN Resources Canada, Inc. 17-Mar-10 16-Mar-21 32,393.29ONG/lic 10-32 SWN Resources Canada, Inc. 17-Mar-10 16-Mar-21 27,563.79

APPENDIX A con’t.

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APPENDIX BWind projects that received environmental approval in Nova Scotia in 2015:

Wind Project Proponent DatePorters Lake Wind Farm Project Watts Wind Energy Inc. January 30, 2015

Amherst Community Wind Farm Project

Mi’kmaq Wind4All Com-munities L.P.

February 17, 2015

Harrietsfield Williamswood Wind Farm Project

Watts Wind 4 Limited Partnership

May 26, 2015

Liverpool Wind Farm Project Liverpool Wind Energy Storage Project

October 28, 2015

APPENDIX CCurrent onshore agreements in Nova Scotia:

Company Name Information

Donkin Tenements Inc. Holds a coal gas agreement in the Sydney Basin area of Cape Breton.

East Coast Energy Inc.Holds the rights of a coal gas production agreement in the

Stellarton area.

Eastrock Resources Limited Holds two conventional exploration agreements in the province in Cumberland County area.

Elmworth Energy, subsidiary - of Triangle Petroleum Corporation

Holds a production lease representing Nova Scotia’s first onshore shale gas development and will cover a 10-year period.

St. Brendan’s Exploration Ltd. Awarded three exploration agreements for conventional rights in Cumberland, Colchester and Pictou Counties.

Stealth Ventures Ltd. Holds a coal gas production agreement in the Springhill area.

APPENDIX D

Current active exploration licenses in Nova Scotia:

EL # Company Issued Expiry Date Work Commitment $2423 Shell Canada Limited 1 Mar 2012 28 Feb 2018 $1,756,450.002424 Shell Canada Limited 1 Mar 2012 28 Feb 2018 $303,078,225.002425 Shell Canada Limited 1 Mar 2012 28 Feb 2018 $235,025,888.002426 Shell Canada Limited 1 Mar 2012 28 Feb 2018 $430,139,437.002427 Shell Canada Limited 15 Jan 2013 14 Jan 2019 $2,355,644.002428 Shell Canada Limited 15 Jan 2013 14 Jan 2019 $1,644,336.002429 Shell Canada Limited 15 Jan 2013 14 Jan 2019 $25,878,695.002430 Shell Canada Limited 15 Jan 2013 14 Jan 2019 $1,974,553.002431 BP Exploration (Canada) Limited 15 Jan 2013 14 Jan 2019 $5,281,593.002432 BP Exploration (Canada) Limited 15 Jan 2013 14 Jan 2019 $322,413,027.002433 BP Exploration (Canada) Limited 15 Jan 2013 14 Jan 2019 $637,977,927.002434 BP Exploration (Canada) Limited 15 Jan 2013 14 Jan 2019 $84,327,452.00

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