White Rose Project Review Process

The Canada-Newfoundland Offshore Petroleum Board (C-NOPB) has received a Development Application for the White Rose project from Husky Oil Operations Limited (the Proponent). The application is comprised of a Development Plan, a Safety Plan and Concept Safety Analysis, an Environmental Impact Statement (EIS), a Socio-Economic Impact Statement (SEIS) and a Canada-Newfoundland Benefits Plan. The C-NOPB is now reviewing the Development Application for completeness in order to ensure it contains all of the information required by the C-NOPB Development Application Guidelines.

Prior to receipt of the Development Application, the C-NOPB, in co-operation with federal departments, initiated an environmental assessment under the Canadian Environmental Assessment Act (CEA Act). The Proponent submitted a draft Comprehensive Study Report (CSR) in early October of 2000. The CSR must be accepted by the Board, the Department of Fisheries and Oceans, Environment Canada and Industry Canada, in consultation with other government agencies. The CSR will then be submitted to the Canadian Environmental Assessment Agency and the federal Minister of Environment, who will make the report available for public review and comment. At the end of that process, the Minister of the Environment will determine if the project is likely to cause significant adverse environmental effects and if public concerns warrant a referral to a mediator or review panel. Should the Minister of the Environment decide to refer the project to a review panel, the C-NOPB and the Minister of the Environment will develop a joint public review process.

The Proponent has indicated its intention to develop the White Rose field using a floating production, storage and offloading system (FPSO) and sub-sea well-head structures located in "glory holes".

From a regulatory perspective, the White Rose proposal is very similar to the developmental approach followed in the Terra Nova project, therefore many aspects relating to technical and environmental issues have been previously studied in depth. The C-NOPB recognizes these factors, and has taken them into account in determining the appropriate process for dealing with the White Rose application. Nevertheless, it is an important part of the C-NOPB decision process that the general public have an opportunity to review and comment on the White Rose Development Application. Accordingly, the C-NOPB, pursuant to the Atlantic Accord Acts, has appointed a Commissioner to conduct a public review of the proposed project.

The Board is announcing today the appointment of Herbert M. Clarke as the Public Review Commissioner for the White Rose Development Application. The Commissioner�s first task will be to establish the necessary administrative and logistical support arrangements for the public review.

Mr. Clarke brings to this review process a wide range of credentials and first-hand knowledge of public policy issues relating to resource development from his experience as a senior executive in both the public and private sectors. He served the Government of Newfoundland and Labrador as Deputy Minister for several departments, and as Clerk of Executive Council, the most senior public service officer. He was the founding Chairman of the Fisheries Resource Conservation Council of Canada, Chairman of Marystown Shipyard, Executive Vice-President of Fishery Products International, and most recently, Vice-President, Corporate Affairs of Voisey�s Bay Nickel Company.

The Commissioner will receive written submissions and oral presentations through a public review process that will consider all matters relating to the White Rose Development Application, including consideration of human safety and environmental protection incorporated into the proposed design and operation of the project, development and exploitation of the petroleum resources in the designated area, and economic benefits to the Province of Newfoundland and Labrador and to Canada. The Commissioner�s mandate does not include the examination of matters beyond the proposal for the White Rose project, such as questions of energy policy, jurisdiction, fiscal or royalty regimes of governments, or divisions of revenues between the federal and provincial governments. The Commissioner�s mandate and scope of review is described in the attached Terms of Reference.

Appropriate resources will be provided so that the Commissioner may engage staff support and professional advice as deemed necessary.

The review process for the White Rose Development Application has begun with an examination by the C-NOPB to ensure completeness of the application. Following this, the complete application will be released to the public and handed to the Commissioner. At that point, the Commissioner will have six months to complete his review and submit a report. In addition to the public review, the Development Application will also be the subject of an internal review by the C-NOPB.

The scheduling and procedures for the public review sessions will be determined and announced by the Commissioner. Time will be provided for individuals and organizations to study the proposal and prepare briefs or submissions. It is anticipated that public hearings will commence in the Spring, and the Commissioner�s Report and Recommendations will be submitted in the Fall.

The Commissioner will be responsible for the scheduling of sessions and the application of procedures involved in the public review process, subject to the Terms of Reference from the C-NOPB and the provisions of the Atlantic Accord Acts. Appropriate notices will be given of the time and place of each public session so that concerned individuals or organizations will have ample opportunity to participate.