Developing International Standards for Arctic and Cold Climate Operations of the Oil and Gas Industry

1. Developing International Standards for Arctic and Cold Climate Operations of the Oil and Gas Industry W. (Bill) A. Adams, PhD RESTCO First International Congress on Industrial and Harbour Scientific Research Sept-Iles, Quebec, Canada

2. Outline of Presentation Background Existing work on oil spill response in Arctic and cold regions The International Standards Organization (ISO) Arctic oil and gas operations standards program Proposed new ISO standards program on “Arctic oil spill response” Summary

3. 1. Background from the Natioinal Energy Board (NEB) Report “The past is always present - Review of Offshore Drilling in the Canadian Arctic - Preparing for the future” December 2011

4. It is critical that the oil & gas community develop a social license in the arctic as they have been able to do in other southern locations. • This is because the Arctic’s environment is very sensitive to human disturbance and also that the people of the North are strongly tied to the land in respect of their culture and livelihoods. • Oil spill in the Arctic have a more severe consequence on the environment and the people in the North than compared to the South. • This underscores the need for operators and other oil and gas stakeholders to secure the social license to acquire and develop resources in the north. Social Licence Having effective, and accepted, standards helps with the development of an Arctic social license.

5. Canadian Government effort to reach consensus for Arctic oil and gas development – the NEB Photos from “The past is always present Review of Offshore Drilling in the Canadian Arctic Preparing for the future”December 2011 – NEB Canada

6. Regulatory Landscape • Arctic standards will be used by regulatory authorities whose jurisdictions include Arctic environments and in efforts by governments to modernize relevant regulations. • The ability to reference such standards in regulations or guidelines, such as the Certificate of Fitness Regulations and the Installation Regulations, could play an important role in the modernization of such regulations, provided that the international standards are aligned with regional interests and regional values.

7. Regulatory Landscape (continued) • Standards have a built in change process that is easier to update than regulations. This will be even more valuable in the Arctic context given the changes that are expected to occur in the Arctic with respect to changing climatic and environmental conditions, changes in the accessibility of northern resources, and the likely subsequent increase in resource development activity. • The development process also provides industry participants and interests • with a decision-making role in respect of the ultimate content of the • standards, thereby effectively giving industry a voice in terms of instruments • that can be referenced by regulation.

8. Why International standards for Arctic oil and gas ?

9. Why “Arctic” Standards? Photos from “The past is always present Review of Offshore Drilling in the Canadian Arctic Preparing for the future” December 2011 – NEB Canada

10. Challenges facing Arctic and Cold Regions Drilling • Harsh climate • Limited existing infrastructure and low population • Gas-on-gas competition • Exceptionally long project lead times • Spill containment/spill recovery • Overlapping/competing economic sovereignty claims • Country-specific environmental laws/regulations

11. Industry view of international standards? Numerous studies from the oil and gas industry show that investments in standards development is one of the most effective ways to leverage corporate engineering and R & D resources: *8 to 1 return on investment for participation in industry standards activities * 1 to 5 ratio for the engineering manpower required for standards development and harmonization initiatives versus if this work was completed on a company specific basis * Elimination of the need for costly special submittals to individual regulatory jurisdictions * Cost savings of up to 50 percent on new projects and 25 percent in operating costs have been documented Source: International Association of Oil & Gas Producers, “The value of Standardization”, 1995.

12. 2. Existing work on oil spill response in Arctic and cold regions(three examples) • Academic work - Centre for Earth Observing Sciences – several universities in Canada and internationally • (New Churchill Marine Observatory Research Centre) • The Arctic Council – Two Council working groups involved on this topic • The International Association of Oil and Gas Producers (IOGP) • Arctic Oil Spill Response Technology Joint Industry Programme (JIP)

13. Centre for Earth Observing Sciences focus on research on sea ice and oil spills (New Churchill Marine Observatory Research Centre) Canadian universities involved: Manitoba (lead) Calgary Victoria Laval Dalhousie International collaboration: Polar Science Center, U of Washington (USA) Greenland Climate Research Centre, Nuuk Arctic Research Centre, Aarhus, Denmark

14. The Arctic Council – Two Council working groupsand a Task Force involved on this topic 1. Emergency, Prevention, Preparedness and Response (EPPR) Working Group produced a report in 2016 on oil spill prevention standards 2. Protection of the Marine Arctic Environment (PAME) Working Group provides guidance and best practices in offshore oil and gas operations with recommendations on developing Arctic standards In 2014 - Senior Arctic Officials set up a new Task Force on Oil Pollution Prevention with a mandate to encourage cooperation between circumpolar regulators In 2017 – a report by Norway for EPPR was presented at the Arctic Council Ministerial Meeting in Fairbanks, Alaska “Standardization as a tool for the prevention of oil spills in the Arctic”

15. The International Association of Oil and Gas Producers Arctic Oil Spill Response Technology Joint IndustryProgramme (JIP) • JIP set up in 2012 with 9 oil and gas companies • to enhance oil spill response capabilities in the Arctic • 7 projects undertaken • Oil under ice • Dispersed oil in ice • Environmental impacts • Trajectory modelling • Oil-spill detection • Mechanical recovery • In situ burn

16. 3. The International Standards Organization (ISO) Arctic oil and gas operations standards program

17. ISO TC 67 - Materials, equipment and offshore structures for petroleum, petrochemical and natural gas industries • ISO TC 67 is the ISO TC overseeing the majority of oil and gas related standards developed through ISO. • There are 7 SubCommittees (SCs) and 8 Working Groups (WGs) under the direct responsibility of TC 67.

18. ISO TC67/SC8 - Background • In 2012 SC8 was established under the International Organization of Standards (ISO) for Oil & Gas offshore structures (i.e. TC67). • ISO TC67/SC8 has been mandated to develop standards for oil & gas operations in cold climate regions specifically; • ensuring safe and effective Arctic oil and operations, and; • also ensuring protection of the environment and people working, and living, in these regions • 10 countries are participating; • Canada; • Russia; • Great Britain; • France; • Italy; • Netherlands; • Singapore • Kazakhstan; and • The United States • Six different working groups have been organized with a country leading each work area; • Ice Management (Canada); • Escape, Evacuation and Rescue (Russia); • Environmental Monitoring (Russia); • Arctic Materials (Norway); • Physical Environment for Arctic Operations (Norway), and; • Working Environment (Norway). In each working group (other country lead) there is an internationally recognized Canadian Expert included, in addition each expert has numerous other Canadian Experts providing valuable input and review.

19. Canada’s Contribution to ISOTC67/SC8 • CSA has organized a technical committee of Canadian stakeholders in the form of a Harmonized Canadian Standards Mirror Committee (SMC) that work to advance Canada’s interests at the ISO table while also ensuring the best international standards are developed. • The harmonized mirror committee will also work to adopt or adapt the international standards into Canada as national standards, as appropriate. • The Canadian SMC has over 70 members from industry (oil and gas producers and from the services sector), government, academia, and the consulting sector. • Approximately 35 Canadians are international experts on ISO working groups as well. • Canada is also the lead of the ISO working group on Ice Management with a total of 14 Canadian experts contributing to this WG, with the Convenor being from Chevron, a global leader in Arctic oil and gas operations.

20. 1.       ISO 35101 - Petroleum and Natural Gas Industries - Arctic Operations - Working Environment (Norway)To develop a new ISO standard using expertise from countries with interests and experience from work in rcticconditions, including the following Arctic specific aspects: * Work in cold climate: health aspects of work in extreme climate. * Winterization issues to improve health and working environment conditions in cold climate. * Special ergonomic, chemical, noise and vibration challenges in these conditions. * Stress management: in extreme climate and training for Arctic

21. 2.       ISO 35103 - Petroleum and Natural Gas Industries - Arctic Operations – Environmental Monitoring ( Russia)Purpose to provide requirements, specifications and guidelines to ensure that environmental monitoring in the offshore Arctic region is fit for purposeStandard will be applicable to all Arctic oil and gas operations from license block acquisition, through exploration, engineering design, construction, commissioning, operation, decommissioning and restoration as well as emergency conditions.

22. 2. Environmental Monitoring (EM) (cont.) • Provide guidelines for development and execution of EM in oil and gas offshore production in the Arctic region. • The standard shall consider the production specifications, such as: • remoteness from the onshore base • underdevelopment or absolute unavailability of any infrastructure • daylight shortage • hyperborean temperature and weather conditions • sea ice • vulnerability of marine and cost environment

23. 2. Environmental Monitoring (EM) (cont.) • EM of the Arctic fields requires a special approach, focusing on such objects as marine environment (marine surface , sea ice surfaces, water column), sea bed, biota, atmosphere, and glaciers. • EM provides a quantitative and qualitative assessment of emissions and discharges, state of environmental components, which is to monitor both production-related environmental impact and baseline dynamics, as well as to immediately identify changes resultant from exploration of offshore hydrocarbon fields. • The standard shall provide practical recommendations on ensuring the adequate information support of management decisions, aimed at securing sustainable development of the Arctic region.

24. 3. ISO 35106 –Metocean, ice, and seabed data (Norway) The standard specifies requirements for the collection, analysis and presentation of relevant physical environmental data for (offshore) activities of the petroleum and natural gas industries in Arctic and cold regions. The standard being developed aims to contain requirements for the entire project life-cycle, including design and operations.Consolidate description of, and requirements to, the collection, analysis and presentation of data for the physical environment in one place.Ensure that all data required for operations are given due consideration.Ensure that all relevant data are properly collected and analysed.

25. 4. Ice Management (Canada) • In 2010, ISO completed the International Standard 19906, Petroleum and Natural Gas Industries – Arctic Offshore Structures; • This standard covers the safe design, construction, installation and operation of structures in Arctic and sub-Arctic sea ice and glacial ice conditions. • The document includes one section on Ice Management as a means of reducing ice actions on offshore structures, either bottom founded or floating and moored and/or dynamically positioned. • Subsequently, a study known as the Barents 2020 Project, identified a number of items that warranted greater attention in the Ice Management section: • In part to address a gap in standards, a subcommittee was established under ISO TC 67 in 2013 to develop standards for Arctic oil and gas operations. Six work items were proposed as part of the SC8 program, including a proposal by Canada on a Work Item for Ice Management.

26. 4. Ice Management (cont.) • The Canadian pioneering and development work, and many years of successful ice management operations in Canada and elsewhere, in both sea and glacial ice, placed Canada in a good position to Lead this project. • The Ice Management Standard will be Performance Based and require the same high level of safety demanded of Arctic Offshore Structures in ISO 19906. • The ice management working group has over 50 active international expert contributors, working for private companies, universities and government departments across 8 countries.

27. 4. Ice Management (cont.) • The Convenor of WG4 Ice Management was Robin Browne, Chevron Arctic Center, and the Secretary to WG4 is Paul Steenhof of CSA. • The work on an Ice Management standard is being undertaken according to 6 distinct task areas: • Task 0 Strategy and Philosophy • Task 1 Data Collection and Met-Ocean Information Requirements • Task 2 Monitoring and Forecasting • Task 3 Physical Ice Management • Task 4 Threat Assessment and Reporting, Safety Philosophy • Task 5 Quality Requirements of IM Training Companies. Ice Management Training – Specific Requirements

28. 5. Escape, Evacuation and Rescue (Russia) To ensure the objectives, requirements and guidelines for emergency response measures in Arctic regions are identified and is applicable to fixed offshore structures, floating production units, storage and off-take systems, hydrocarbon processing and refinery plantsThis International Standard does not apply specifically to escape evacuation and rescue for mobile offshore units. Where applicable, this standard may also be used for mobile offshore unitsIntended that this International Standard be utilized to harmonize development of emergency preparedness equipment and procedures in existing and future standards International Standard is not intended for the purpose of certificationUsers of this International Standard should note that while observing its requirements, they should, at the same time, ensure compliance with such statutory requirements, rules and regulations as may be applicable to the individual installation or plant concerned.

29. 6. Arctic Materials (Norway) Members: Canada (2), France (2), Italy (6), Netherlands (3), Norway (2), UK (1) and Russia (4)Define requirements for materials and fabrication processes used for the construction of petroleum and natural gas facilities located in Arctic regions and other regions with a cold climate.The work will focus on material properties that are significantly affected by the operating conditions in Arctic areas, including operation at low temperatures and the particular loading conditions related to interaction with ice and snow. Particular attention will be paid to items impacted by low temperatures

30. ISO TC67/SC8 – Current status • The Canadian Standards Mirror Committee to ISO TC 67/SC8 is in the process of reviewing the published standards that are now published for potential adoption/adaption into Canada. Some are now adopted for use in Canada

31. Canadian Response to TC 67 SC8 • Three ISO standards below published by 2018 and being considered for adoption in Canada and three close to publication • Petroleum and Natural Gas Industries Arctic Operations • - 1. ISO 35101 - Working Environment • - 2. ISO 35103 – Environmental Monitoring • - 3. ISO 35106 –Metocean, ice, and seabed data • New standard “Arctic Oil Spill Response” proposed by Canada and supported by Russia under consideration

32. 4. Proposed new ISO standards program on “Arctic oil spill response” • First proposed at Oslo Meeting November 2016 by Canada • A new Working Group would be formed to develop this Standard and approval from the International Arctic Operations Subcommittee (SC8) sought

33. Progress on a new proposed standard - Arctic Oil Spill Response • Canada offered to provide the secretariat and International Convenorship for the new Working Group • During 2017 and 2018 efforts to confirm Canadian Government support for this initiative have not been successful • Efforts continue to seek Canadian Government support prior to the next international meeting of SC 8 in Moscow Nov 2019

34. Proposed scope of new Standard –Arctic Oil Spill Response • The standard will be performance-based • Detection (radar, SAR satellite, drones, etc.) • Remediation (including the use of biotechnologies) for the elimination of oil products on/in ice, under ice, and in the water and shorelines • Monitoring the fate of oil • Use of technologies, including cold-water herders, dispersants and in-situ burning • Use of skimmer technologies suitable for open water and water containing ice • Response planning and coordination • Others that may arise

35. Proposed work program1. Detection (radar, SAR satellite, drones, etc.) Semi-Automated Classification of Oil slicks at sea using Radar and Optical imagery (SACORO) (C-Core, 2016)

36. 2. Proposed work programRemediation (including the use of biotechnologies) for the elimination of oil products on/in ice, under ice, and in the water Bioremediation Cleanup of Petroleum-Contaminated Soils on the Coast of Ellesmere Island in the Canadian High Arctic (National Research Council Canada, 2015)

37. Proposed work program3. Monitoring the fate of oil Basic oil Weathering Processes (based on ITOPF 2011) Oil-ice interactions (Bobra and Fingasin AMAP 1998)

38. Proposed work program4. Use of technologies, including cold-water herders, booms, in-situ burning, and dispersants Controlled burn of oil from Gulf of Mexico blowout - 2010 From WWF 2017 report on Arctic oil spill response

39. Proposed work program4.(Cont.) Use of technologies, including cold-water herders, booms, in-situ burning, and dispersants From WWF 2017 report on Arctic oil spill response

40. Proposed work program5. Use of skimmer technologies suitable for open water and water containing ice Different Types of Oil Skimming Systems from Nuka Research and Planning Group, LLC Gravity based - EST Canada

41. Proposed work program6. Response planning and coordination Oil Spill Response Process and Phases from WWF 2017 report on Nunavut community oil spill response plans

42. 5. Summary • Involvement in the international standards development process will help Canada, as well as the other countries involved, ensure both knowledge transfer and that international standards are locally relevant. • Involvement will help ensure that northern oil and gas exploration and production is undertaken responsibly across the circumpolar Arctic. • Another key reason for the suite of standards being developed through ISO TC 67/SC8 is that these will help protect the northern environment and the people that inhabit the north. • By focusing attention on operational processes and procedures, this will help ensure safe, effective and efficient development occurs in the North.

43. Summary (cont.) • It is also critical in order to reduce operational risks as well as for improving the safety of workers active in the Arctic. • Developing performance based operational standards will thereby also help oil and gas operators, service providers, as well as related regulatory authorities gain the social license to operate in the North. • Operational standards could also help drive continued technological and procedural improvements as related to oil and gas exploration and development due to the sharing of best practices and given that they will be performance based. • The standards will also have local and national relevance.

44. Summary (cont.) Canada is playing an important and decisive role in the development of the Arctic oil and gas operational standards. We have established a large technical committee of Canadian stakeholders with expertise across the full spectrum of topics included within the scope of ISO TC 67 SC8. These members are actively involved on each working group under SC8. The large size of this committee as well as it being so active reflects the expertise contained within Canadian companies, regulatory authorities, and research institutions in regards to the Arctic and the sustainable development of the region. The involvement of the Canadian Harmonized Mirror Committee will thereby help ensure that Canada’s interests are brought forward and encapsulated within the standards being developed.

45. Acknowledgements • Thanks to Stephen Green of Provincial Aerospace, St John’s Newfoundland, Canada, and • Paul Steenhof, CSA, Ottawa, Ontario, Canada for providing material for slides in this presentation

46. Thank YouContact infobill@restco.ca QUESTIONS?