Norway - British Colombia Offshore Oil & Gas November 18th

1. Norway - British Colombia Offshore Oil & GasNovember 18th Oil and gas development from an environmental perspective by Tone Skogen Deputy Director General Ministry of Petroleum and Energy

2. Norwegian petroleum policy • Environmental concerns have always been an integral part of the petroleum policy since activities started on the NCS 30 years ago • Emissions to air and discharges to the sea are of great concern • Norway’s two main industries operate in the same seas: Potential conflicts between petroleum activities and fisheries • Continuous challenge related to the marine environment • Guiding principle in the petroleum policy: Secure coexistence between petroleum activities, the fisheries and environmental concerns

3. Measures: Environmental Impact Assessments (1) • Impact assessments are carried out to ensure that petroleum activities are harmonised with other important interests, such as fisheries and the environment • The Petroleum Act requires that impact assessments are carried out before the opening of an area, before the development of a specific field and before the cessation of activities • Regional impact studies are carried out to provide an overall picture

4. Measures: Environmental Impact Assessments (2) • before the opening of an area • analysis are carried out by the authorities • local authorities and organisations are consulted • decision made by the Storting (Parliament) • before the development of a specific field • Operator must submit a PDO/PIO for approval by the authorities or the Storting • PDO/PIO must include an environmental impact assessment describing environmental effects and costs/benefits of any mitigatory measures • The program and the actual impact assessment are subject to public consultations • before cessation of activities

5. The Environmental Impact Assessment Study for Lofoten/ the Barents Sea • The Ministry of Petroleum and Energy, in close cooperation with the Ministries of Fisheries and Environment, is presently conducting an Environmental Impact Assessment (EIA) study of all-year petroleum activities in the northern seas from Lofoten and northward • Assuming there are special fishing and environmental challenges related to moving into more northern areas, new and more ambitious demands will be made in order to avoid conflicts with the environment and the fisheries • The EIA study will be the basis for the Government’s further decision-making regarding conditions for possible all-year petroleum activity in the area

6. Specific measures in vulnerable areas • Different challenges in the different parts of the NCS • The North Sea: Maturing fields and challenges related to produced water • Northern and coastal areas: Environmental vulnerable areas require specific measures, i.e: • block-specific conditions relating to environment and fishing • restrictions on seismic survey • strict curbs on discharges of produced water • limits on the number of exploration wells to be drilled simultaneously

7. Measures: Discharge permits • Operators must apply to the Pollution Control Authorities for a permit in order to discharge oil or chemicals • Regular monitoring by the operators is one of the requirements laid out in these permits • Monitoring by the operator is an important supplement to monitoring carried out by the authorities

8. Measures: Zero discharge philosophy • Important measure to minimise discharges to the sea from petroleum activities • Developed jointly by the authorities and the industry • Zero discharges is achieved by continuously reducing the release of environmentally harmful substances towards a level which equals zero for all practical purposes • Environmental harm depends on the content of potentially harmful substances as well as time and place of the discharge • The operators have developed strategies for zero harmful discharges from their fields by 2005, in line with the overall philosophy

9. Measures: CO2-tax • CO2-tax on emissions from the petroleum sector since 1991 • About US $ 40 per tonne CO2 • The tax has contributed to enhanced development of new environmentally friendly technology • The tax will be replaced by a broad national emissions trading system in the Kyoto-period (2008-2012)

10. Measures: Co-operation with the industry • MILJØFORUM • forum for dialogue established in 1995 • high-level participation from industry, research, green NGOs, fishery- organisations, shipping, authorities • several working groups - report recently submitted on “Use of the sea” on coexistence in the same seas (headed by the Norwegian Fishermen Association) • important for development of a common understanding of the challenges ahead • A research programme on potential long-term effects of discharges to the sea has recently been launched as a joint effort between the authorities and the industry • Annual publication to increase knowledge about environmental aspects of Norwegian oil and gas activities “Environment 2002” etc.

11. Internet address www.oed.dep.no www.mpe.dep.no CLICK HERE TO RETURN TO NORWEGIAN DELEGATION PAGE