September, 2002September, 2002
An Overview of Atlantic Canada An Overview of Atlantic Canada Exploration and the Environmental Exploration and the Environmental Legislative Process, Offshore Nova Legislative Process, Offshore Nova Scotia, CanadaScotia, Canada
John HoggJohn HoggVice President, Atlantic CanadaVice President, Atlantic Canada
Offshore New Ventures ExplorationOffshore New Ventures Exploration
Facts about EnCana CorporationFacts about EnCana Corporation High quality assets – Opportunity Rich PortfolioHigh quality assets – Opportunity Rich Portfolio
Strong North American natural gas strategyStrong North American natural gas strategy
Superior oil growth; domestic and internationalSuperior oil growth; domestic and international
Balance sheet positioned for growthBalance sheet positioned for growth
590,000 BOE daily production (2002F, after royalties);590,000 BOE daily production (2002F, after royalties);64% gas64% gas
2.3 billion BOE proved reserves (year-end 2001,2.3 billion BOE proved reserves (year-end 2001,after royalties); 51% gasafter royalties); 51% gas
90% of reserves and production in North America90% of reserves and production in North America36 million acres net undeveloped land 36 million acres net undeveloped land
Approximately US$20 billion Value (as of July 24, 2002)Approximately US$20 billion Value (as of July 24, 2002)
Division Breakdown
2002 EnCana Capital Budget2002 EnCana Capital BudgetUS$3.2 Billion Gross*US$3.2 Billion Gross*
Onshore North America Breakdown
SAGD
6%
Syncrude9%
Natural Gas63%
Other Oil
22%
Offshore & New Ventures Exploration
14%
Offshore &International Development
12%
Onshore North America69%
Marketing & Midstream5%
* Prior to planned net dispositions of US$950 million
Halifax
A World Class International IndependentA World Class International Independent
Houston
Calgary
Quito
London
DubaiBahrain/QatarBahrain/Qatar
YemenYemen
AustraliaAustralia
U.K. North SeaU.K. North Sea
Atlantic CanadaAtlantic Canada
EcuadorEcuador
U.S. Gulf of MexicoU.S. Gulf of Mexico
Offices
International ProjectsInternational Projects
Legend
Rio de Janeiro
Sana’a
DohaN’Djamena
ChadChad
GhanaGhana
Alaska/Mackenzie DeltaAlaska/Mackenzie Delta
BrazilBrazil
Western Canada Western Canada
Atlantic CanadaAtlantic Canada
U.K.U.K.
Gulf of MexicoGulf of Mexico
EcuadorEcuador
U.S. RockiesU.S. Rockies
Six Key Growth PlatformsSix Key Growth Platforms
North of 60°North of 60°
SaskatchewanSaskatchewan
Grand BanksGrand Banksand Scotian Shelfand Scotian Shelf
Other FrontierOther Frontier
BritishBritishColumbiaColumbia 50505050 AlbertaAlberta
270270270270
63636363
175175175175
(includes other regions offshore East Coast & West Coast)
99Remaining
Produced
Source: National Energy Board / Canadian Association of Petroleum Producers Source: National Energy Board / Canadian Association of Petroleum Producers
Canada: How Much Gas is Out There?Canada: How Much Gas is Out There?
Item 1
Item 1
89898989
HalifaxHalifax
St. John’sSt. John’s
Scotian ShelfScotian Shelf
GrandGrandBanksBanks
Sable Offshore Sable Offshore Energy ProjectEnergy Project
150 km150 km
St. JohnSt. John
HiberniaHiberniaCharlottetownCharlottetown
TerraTerraNovaNova
Deep Deep PanukePanuke
Atlantic CanadaAtlantic Canada
BangorBangor
HiberniaHiberniaProductionProductionPlatformPlatform
Terra Nova Floating Production SystemTerra Nova Floating Production System
HalifaxHalifax
Atlantic Canada Gas TransportationAtlantic Canada Gas Transportation
Anticosti Basin Anticosti Basin
MagdalenMagdalenBasinBasin
Scotia
n Bas
inEnCana’sDeep Panuke400 MMcf/d – 2005
St. John’sSt. John’s
SOEI ~ 500 MMcf/d
BostonBoston
Sable Offshore Energy PlatformsSable Offshore Energy Platforms
Sable Thebaud Central FacilitySable Thebaud Central Facility
Deep Panuke Facilities DesignDeep Panuke Facilities Design
Atlantic Canada Mesozoic SubbasinsAtlantic Canada Mesozoic Subbasins60°W65°W70°W
New Brunswick P.E.I.
Newfoundland
GrandGrandBanksBanks
Laurentian Channel
Laurentian Channel
2000
km
45°N
200m200m
Nova Scotia
Scotian ShelfScotian Shelf
2000m2000m
2000m2000m
Quebec
200m200m
200m200m
45°W50°W55°W
45°N
50°N
HalifaxHalifax
St. John’sSt. John’s
Atlantic CanadaAtlantic CanadaRegional Land OverviewRegional Land Overview
45°N
50°N
P.E.I.P.E.I.
NewfoundlandNewfoundland
GrandBanks
120 Miles
Nova ScotiaNova Scotia
Scotian Shelf
2000m
200m
200m
NewNewBrunswickBrunswick
60°W65°W 55°W 50°W
200m
2000m
Laurentian Channel
45°W
EnCana Corporation Acreage
Scotian Shelf SubbasinsScotian Shelf SubbasinsSydney
LaHave
New BrunswickP.E.I.
200m200m
2000m2000m
60 Miles60 Miles
Scotian ShelfScotian Shelf
HalifaxHalifaxFundy
45° N45° N
Abenaki
GeorgesBank
Shelbourne
Banquereau
OrpheusGraben
Laurentian
Scotian Salt Province
60°W60°W65°W65°W 55°W55°W
Nova Scotia
SOEISOEI
Regulation of Canada East Coast WatersRegulation of Canada East Coast Waters
The Government of Canada and the Atlantic The Government of Canada and the Atlantic Provinces agreed to jointly administer the Provinces agreed to jointly administer the offshore by use of independent offshore boardsoffshore by use of independent offshore boards
Two Boards: Canada-Nova Scotia and Canada-Two Boards: Canada-Nova Scotia and Canada-Newfoundland Offshore Petroleum BoardsNewfoundland Offshore Petroleum Boards
Boards consist of two federal, two provincial and Boards consist of two federal, two provincial and one joint membersone joint members
Each Board Staff Administers: HSE, Resource Each Board Staff Administers: HSE, Resource Rights, Local Benefits, and Operations Rights, Local Benefits, and Operations ManagementManagement
Canada Nova Scotia Offshore Petroleum BoardCanada Nova Scotia Offshore Petroleum Board Mission StatementMission Statement To regulate petroleum activities offshore Nova Scotia in an efficient, fair and To regulate petroleum activities offshore Nova Scotia in an efficient, fair and
competent manner.competent manner.
MandateMandate The Canada-Nova Scotia Offshore Petroleum Board is the independent joint The Canada-Nova Scotia Offshore Petroleum Board is the independent joint
agency of the Governments of Canada and Nova Scotia established pursuant to agency of the Governments of Canada and Nova Scotia established pursuant to the federal Canada-Nova Scotia Offshore Petroleum Resources Accord the federal Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act and the provincial Canada-Nova Scotia Offshore Petroleum Implementation Act and the provincial Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation (Nova Scotia) Act. It is responsible for Resources Accord Implementation (Nova Scotia) Act. It is responsible for regulation of petroleum affairs and safe practices offshore Nova Scotia.regulation of petroleum affairs and safe practices offshore Nova Scotia.
The Board's principal responsibilities includeThe Board's principal responsibilities include Ensuring the safe conduct of offshore operations Ensuring the safe conduct of offshore operations
Protection of the environment during offshore petroleum activities Protection of the environment during offshore petroleum activities
Management of offshore oil and gas resources Management of offshore oil and gas resources
Review of industrial benefits and employment opportunities Review of industrial benefits and employment opportunities
Issuance of licenses for offshore exploration and development Issuance of licenses for offshore exploration and development
Resource evaluation, data collection and distributionResource evaluation, data collection and distribution
CNSOPB Land Issuance & Program ProceduresCNSOPB Land Issuance & Program ProceduresOverviewOverview
Nomination of Land
CNSOPB Strategic EA
Call for Bids
Exploration License
Seismic Program
Geophysical Program
Geotechnical Program
Drilling Program
Environmental Procedures for EL’sEnvironmental Procedures for EL’sStandard Field Program (Common)Standard Field Program (Common)
Environmental Assessment (EA)
Oil Spill Response Plan
(OSRP)
Additional Program Specific
Requirements
Program’s Approval
Reporting
Operational Procedures
Consultation ProcessPL
AN
NIN
GR
EPT.
OPS
Environmental ProceduresEnvironmental ProceduresSeismic Program (Specific Process)Seismic Program (Specific Process)
Environmental AssessmentIdentify critical time/areas for fishing/mammals/spawning
OSRP
Program’s Approval
FLO Report
Fisheries Liaison Observer (FLO)Ramp-up of airguns
Consultation•FEAC (Fisheries Environmental Advisory Committee) Meeting
•Direct information to Fisheries Representatives
•Consultation through Canada-Nova Scotia Offshore Petroleum Board (CNSOPB) and the Federal Departments of Environment Canada and the Department of Fisheries and Oceans (DFO)
•Notices to Mariners
•Fisheries Compensation
PLA
NN
ING
REP
T.O
PS
Environmental ProceduresEnvironmental ProceduresExploration Drilling Program, Pre-Drill (Specific Process)Exploration Drilling Program, Pre-Drill (Specific Process)
Environmental Assessment
OSRP
Program’s Approval
Consultation
•FEAC (Fisheries Environmental Advisory Committee) meeting
•direct info to fisheries reps
•consultation through CNSOPB, Environment Canada and DFO
PLA
NN
ING
Baseline Benthic
Data
Drilling Chemical Screening
Rig’s Metocean Equipment
Metocean Data for
Certifying Authority
Environmental ProceduresEnvironmental ProceduresExploration Drilling, While Drilling, (Specific Process)Exploration Drilling, While Drilling, (Specific Process)
Physical Environmental
Monitoring Program (meteo, waves, currents)
Consultation
• Notices to Mariners
• Fisheries Compensation
REP
T.O
PER
ATI
ON
S
OWTG (oil on cuttings,
bilge/ballast/deck drainage water,
sanitary/food waste…)
Environmental Monitoring
Program (EMP)(bird monitoring, benthic survey, tainting study…)
Metocean End of Well Report
Env. Compliance Monitoring Data
ECM Rpt
FLO Report
FLO (optional)
Environmental ProceduresEnvironmental ProceduresEnvironmental Assessment Process 2003 ModificationsEnvironmental Assessment Process 2003 Modifications
Existing CNSOPB Process (Timelines)Existing CNSOPB Process (Timelines) 30-day review by CNSOPB, DFO, Environment Canada30-day review by CNSOPB, DFO, Environment Canada NS Seismic Class Screening EA (1998, LGL document)NS Seismic Class Screening EA (1998, LGL document) NS Drilling Generic Assessment (2000, LGL document)NS Drilling Generic Assessment (2000, LGL document)
New CEAA (Canadian Environmental Assessment Act) Process New CEAA (Canadian Environmental Assessment Act) Process TimelinesTimelines
Effective Q1/03 (earliest)Effective Q1/03 (earliest) Screening Study: wellsite surveys, seismic surveys, and exploration drilling in area Screening Study: wellsite surveys, seismic surveys, and exploration drilling in area
previously assessed under CEAApreviously assessed under CEAA 6-month review6-month review
Comprehensive Study: exploration drilling in new areaComprehensive Study: exploration drilling in new area 12-month review12-month review
Websites for Additional InformationWebsites for Additional Information Canada Nova Scotia Offshore Petroleum BoardCanada Nova Scotia Offshore Petroleum Board
– www.cnsopb.ns.cawww.cnsopb.ns.ca
Canada Newfoundland Offshore Petroleum BoardCanada Newfoundland Offshore Petroleum Board– www.cnsopb.nfnet.com/www.cnsopb.nfnet.com/
Terra Nova ProjectTerra Nova Project– http://www.terranovaproject.com/http://www.terranovaproject.com/
HiberniaHibernia– www.hibernia.ca/www.hibernia.ca/
Sable Offshore Energy Inc.Sable Offshore Energy Inc.– www.soep.comwww.soep.com