Environmental Excellence

1. Environmental Excellence Course Number NSTC-07 Revised 11-2011

2. Introduction

3. Goal To inform participants of their personal responsibility for following environmental rules and regulations in order to minimize the effects of oil and gas operations on the environment.

4. Objectives Participants will be able to: • Describe the expectations and responsibilities for complying with environmental regulations. • Describe the environmental requirements relating to air, land, water, and wildlife. • Follow safety rules for animal interactions.

5. Objectives Participants will be able to: • Follow spill prevention and reporting requirements. • Follow best practices for waste minimization, recycling, and waste management. • Reference the 2011 North Slope Environmental Field Handbook for specific guidelines related to these objectives.

6. Environmental Responsibility

7. Environmental Expectations • North Slope Operators have a unified commitment to environmental excellence and continuous improvement. • Everyone is expected to constantly assess impacts on the environment, make every effort to minimize those impacts, and apply lessons learned to each new project or work task. EFH page 8

8. Regulatory Framework • Federal, state, local agencies/laws • Regulations, right-of way agreements • Company policies and procedures EFH pages 14-15

9. Regulated Activities Extracting natural resources Off-pad activities Construction and maintenance projects Air quality Water treatment Waste disposal Wildlife Operating oil storage containers and pipelines 9 EFH, pages 12-13

10. Personal Responsibility • Remember that all companies and employees are visitors on the North Slope. • Follow company procedures and environmental regulations. • Be aware of environmental concerns related to your job and ask if you are not sure about what to do. • Look for ways to reduce environmental liabilities on the job. • Report all potential violations. EFH page 16

11. Company Responsibility • The company is responsible for the actions of its employees. • A poor compliance record can delay new permits, damage future prospects, and lead to stricter regulations. • Failure to comply with regulations and permits can result in civil, or criminal penalties. EFH pages 16

12. Air

13. Air Quality Control • The Clean Air Act (1970) sets national air quality standards and regulates emission of hazardous pollutants. • Facilities with emission sources must have Air Quality Control Permits from the Alaska Dept. of Environmental Conservation • Air monitoring stations on the North Slope measure standard wind speed, rainfall, and the level of pollutants. EFH page 18

14. Air Quality Permits Regulate the emission of carbon, sulfur, and nitrogen compounds, as well as particulate matter and other parameters. Set limits on operating hours, fuel usage, and visible emissions. Contain requirements for maintenance, monitoring, record keeping, and reporting. 14 EFH page 18

15. Emission Sources • Turbines • Heaters • Engines • Generators • Incinerators • Flares • Storage tank vapor collection systems EFH page 18

16. Types of Emissions • Black smoke from flares and other sources • Gas/vapor leaks • Idling engines • Open burning EFH pages 19-21

17. Equipment Modifications • Equipment modifications or changes in operating parameters can contribute to violations of air quality regulations or permit standards. • Always check to be sure that changes comply with permit conditions. EFH pages 19

18. Ultra Low Sulfur Diesel ULSD must be used in Alaska in the following equipment: Diesel-powered on-road vehicles (automobiles and trucks) Diesel-powered non-road equipment and engines (earth-moving equipment, drill rig engines, and portable generators/pumps) Marine engines and stationary equipment Be sure to fill up only from clearly marked ULSD bulk tanks and dispensers. 18 EFH page 20-21

19. Land

20. Land Ownership Most of the oil/gas operations on the North Slope are on federal, state, borough, or Native-owned lands. State lands are administered by the Alaska Dept. of Natural Resources. The U.S. Bureau of Land Management oversees federal lands. Right-of-way agreements govern activities within the pipeline corridor. EFH pages 14; 24

21. North Slope Borough Map

22. North Slope Communities and Population • Western Coast • Wainwright (551) • Point Lay (234) • Point Hope (713) • Inland • Atqasuk (201) Northern Coast • Kaktovik (286) • Nuiqsut (424) • Barrow (4,119) Inland • Deadhorse (4) • Anaktuvuk Pass (287)

23. Traditional Use Traditional use refers to the historical uses of fish and game for food, shelter, fuel, clothing, tools, and transportation. Both Native and non-Native residents living in rural Alaska have subsistence hunting, fishing, and trapping rights under the Alaska National Interest Lands Conservation Act (ANILCA) and the Marine Mammal Protection Act (MMPA-1972).

24. Traditional Use • Many traditional land use areas fall within oil lease areas. • Agreements have been made with local communities and the North Slope Borough so that production activities do not interfere with traditional use events such as the spring and fall bowhead whale hunts. EFH pages 15; 24

25. Tundra and Permafrost • Tundra is classified as wetland. • Tundra and permafrost areas are extremely sensitive to disturbances produced by construction and oil/gas operations. • Tundra travel refers to any off-road or off-pad travel. EFH pages 24-25

26. Tundra Travel • All tundra travel is allowed only by permit and is strictly monitored. • Winter tundra travel opens when there is enough snow and frost depth. • Tundra travel is not allowed during spring break-up. • Summer tundra travel opens July 15 and is limited to vehicles with smooth tracks. EFH page 24-25

27. Ice Roads and Pads Ice roads and pads extend across tundra, rivers, lakes and the frozen sea surface to provide critical links to sites without gravel road access. Use caution during travel and follow communication protocols. Report all polar bear sightings and do not proceed until instructed to do so. 27 EFH pages 26-27; 31

28. Water

29. Coastal Waters • All U.S. waters are protected by the Clean Water Act (1972). • The Beaufort and Chukchi Seas border Alaska’s northern coast where offshore exploration and drilling occur. • The pipeline terminus is located on Valdez Harbor which opens into Prince William Sound and the Gulf of Alaska.

30. Inland Waters • Protected waters also include rivers, lakes, streams, ponds, and wetlands. • Inland waters provide habitat for fish, waterfowl, sea life, and marine mammals. • Some artificial water bodies, such as old gravel pits and reservoirs also have protected status. EFH page 31

31. Wetlands • Wetlands are permanently or seasonally saturated with moisture. • They include tundra, coastal areas, swamps, flood plains, marshes, and bogs that provide habitat for plants, and feeding and nesting grounds for migrating birds. EFH pages 24; 31

32. Water Permits Are Required For • Surface water usage. • Drinking water systems. • Waste water discharge. • Control of water runoff and snow melt (storm water). • Discharge from dewatering pads and containments. • Ice road construction and maintenance. EFH pages 26; 30-33

33. Wildlife

34. Non-Interference Policy • Worker Safety • Report all wildlife sightings or unusual animal behavior immediately. • No hunting, fishing or trapping • Wildlife Safety • Animals are protected by law and always havethe “right-of-way”. • No feeding, handling, or harassing wildlife • Habitat Protection • Nesting areas, migratory routes, • Fisheries, calving areas, and grazing or recovery areas EFH pages 36

35. In May thousands of birds follow their annual migratory route along the Pacific Flyway to nesting ground on the North Slope of Alaska. Many birds, such as the Spectacled and Stellar’s Eiders, are protected by the Endangered Species Act. Birds EFH page 37

36. Foxes Many foxes carry rabies and can transmit it at any time. Assume that every fox is a rabies carrier. Never feed foxes or leave food where it is accessible. If you come into contact with a fox, go to the medical clinic as soon as possible for evaluation. 36 EFH page 36-37

37. Caribou Caribou are an important subsistence resource for local residents. Caribou migration occurs along the coastal plain in summer with calving in May and June. Be prepared to stop when you see caribou near or on the road and give them the right of way. Road restrictions may be in effect during calving season. 37 EFH page 38-39

38. If You See a Bear • Alert others in the area. • Notify Security immediately. • Retreat to the safe area. • Do not resort to hazing. EFH pages 39-42

39. Bear Safety • Keep your worksite free of food and garbage. • Don’t leave shop or building doors open. • When leaving a building, check to see if it is safe. • Use the buddy system. • Establish a safe area. • Designate a bear watch. • Be aware of your surroundings. EFH pages 39-42

40. Polar Bears • Polar bears are listed as threatened on the Endangered Species Act and protected under the Marine Mammal Protection Act (1972). • Only trained personnel are allowed to “haze” or “harass” polar bears. • Personnel must be familiar with the Wildlife Interaction Plan. Copies are available from the local Environmental Coordinator. EFH pages 40-42

41. Spills

42. Spill Prevention • Be familiar with spill prevention procedures. • Use drip liners and secondary containment. • Follow good housekeeping and job procedures. • Fluid transfers • Check for leaks. • Inspect hoses, connections. • Check container levels. • NEVER leave transfer operations unattended. EFH pages 45-49

43. Spill Detection • A spill is a release of oil or a hazardous substance to the air, ground or water. • Pay attention to color changes in the snow or soil that may cover a spill. • Report any changes in air quality such as petroleum smells or chemical fumes. • Respond appropriately to spill detection alarms and gas monitors. • Be observant as you drive along pipeline corridors. • Check hoses, valves, connections before and after operating equipment and/or making fluid transfers.

44. Spill Reporting • Report all spills/releases immediately regardless of size or location. • Follow company or local procedures. • Notify proper authority. • Ask if you are not sure. • Ensure personal safety and safety of co-workers. EFH pages 49-50

45. Spill Reporting • Provide the following information: • Person and/or department responsible • Contact phone number • Substance spilled • Location of spill • Description of the spill area • Possible cause of spill • Refer to the back cover of the EFH for the appropriate contact numbers for your operating area. EFH page 50

46. Training for Oil Handlers 46 • Regulations refer to personnel who operate, inspect, and maintain equipment used to handle oil and oil related products as “oil handlers.” • All oil handlers must take Oil Handlers Training (OHT) before performing any job on the North Slope.  • Oil Handlers training is a CBT course offered on the Oil Industry Toolbox 

47. Waste Management

48. Waste Management Resources 48 • Alaska Waste Disposal & Reuse Guide (“Red Book”) – provides information on waste classification, disposal, and reuse options • Waste Management Certification Training (“Red Book” Training) • North Slope Manifest – tracking form for wastes and recyclables • Company Environmental Staff EFH, pages 53-54

49. Waste Minimization 49 • Waste reduction can be achieved through: • Source reduction to limit the amount of material and products kept on site. • Product substitution to find less hazardous alternatives. • Source control to follow good housekeeping, waste segregation, and waste disposal practices. • Reuse and recycling so materials do not become waste. EFH, pages 52-53

50. Best Practices 50 • Minimization • Plan ahead • Reduce, substitute, reuse,and recycle • Management • Label all wastes • Separate wastes; don’t mix • Recognize difference between regular and hazardous wastes; different processes for handling various types of waste EFH pages 52-66