1. Introduction:

The White Rose project will be subject to review under the Atlantic Accord legislation and the Canadian Environmental Assessment Act (CEA Act). The review process will follow three paths – an environmental assessment under the CEA Act in the form of a Comprehensive Study Report (CSR); a public review under the terms of the Accord legislation; and, an internal review by the staff of the Canada-Newfoundland Offshore Petroleum Board (C-NOPB). This process is described in the attached diagram.

The Development Application consists of five documents:

1. the Benefits Plan;
2. the Development Plan;
3. an Environmental Impact Statement;
4. a Socio-Economic Impact Statement; and
5. a Safety Plan and Concept Safety Analysis.

The C-NOPB will first review the information submitted to determine its completeness. The proponent will then be informed of, and if necessary asked to remedy any deficiencies. At this point the completed application will be made available to the public and handed to the Commissioner who will conduct a public review. The C-NOPB will also commence its own internal review of the Development Application.

At the end of the process, based on the public review and the internal review, the C-NOPB will issue a decision in the form of a Decision Report. That decision may take the form of approving or rejecting the proposal. If the C-NOPB approves the proposal, with or without conditions, that decision is then forwarded to provincial and federal energy ministers for approval or rejection.

2. Public Review

The C-NOPB has, pursuant to section 44 of the legislation, appointed a Commissioner to conduct a public review of the White Rose development proposal. The public review process is intended to provide all interested parties with an opportunity to become informed about the proposed development and to make their views known.

The Commissioner’s Terms of Reference are outlined in Attachment #3 .

The Commissioner will hold public hearings in appropriate locations in the province and report on those hearings to the C-NOPB, and the federal and provincial energy ministers.

The Commissioner will make recommendations on matters such as the proponent’s proposed approach to the development and exploitation of the resources, human safety incorporated into the design and operation of the production system, environmental effects, and the economic benefits that will accrue to the province and Canada. The Commissioner’s mandate does not include an examination of questions of energy policy, jurisdiction, the fiscal and royalty regime, or the division of revenues between the Government of Canada and the Government of Newfoundland and Labrador.

3. Internal C-NOPB Review

Under the Accord Acts, the C-NOPB is required to examine all aspects of a Development Application. As a component of this the C-NOPB staff will carry out an internal review of the Development Plan and Benefits Plan which includes matters of reservoir management, development drilling, Canada-Newfoundland benefits, environmental impacts and protection, production systems and safety plans. The C-NOPB’s internal review will include consultation with government departments and agencies and other experts as it determines appropriate. In particular, the C-NOPB will consult appropriate government departments and agencies concerning matters related to the Benefits Plan.

4. Environmental Assessment

The environmental assessment for the White Rose project will address both the environmental requirements of the CEA Act and those of the Accord Acts. This process began with the submission by Husky Oil Operations Limited, the project proponent, of a Project Description in March 2000.

Departments and agencies that are subject to the CEA Act determine, in consideration of the Project Description, whether an environmental assessment under the Act is required; and, if so whether they are likely to have particular expertise that would aid in the conduct of an assessment. The manner in which these determinations and communications are made is prescribed by the Federal Coordination Regulations under the CEA Act.

Those departments and agencies that are required to assess the project are termed “Responsible Authorities” (RA’s). In this particular case the RA’s identified were the C-NOPB (the lead RA), Environment Canada, Fisheries and Oceans and Industry Canada. Under the CEA Act, this project requires the conduct of a Comprehensive Study, which allows for public input and ultimately results in a CSR.

Based on the Project Description and pursuant to the Federal Coordination Regulations process, the C-NOPB and other RA’s for the project prepared a document (the Scoping Package) setting out the scope of the environmental assessment and provided it to the proponent for use in preparing the CSR. The Scoping package is available on the Public Registry established for the environmental assessment and a list of the documents contained in it may be obtained by contacting the Board at 709-778-1400. The project description may also be viewed on the Proponent’s website at www.huskywhiterose.com . During the preparation of the CSR, the proponent was responsible for consulting with interested parties in government and the public, and ensuring that any environmentally related concerns raised are fully considered.

The Proponent submitted a draft CSR to the Board in October 2000. The RA’s and other government agencies with related expertise are reviewing the CSR for its adherence to the scoping document. Upon completion of this review the C-NOPB, on behalf of all the RA’s, will submit the CSR to the Canadian Environmental Assessment Agency (CEAA) and to the federal Minister of the Environment. The Agency will make the CSR available for public comment and review in accordance with the CEA Act. Following this process, and any resultant modifications to the CSR, the Minister of the Environment will determine whether the project should be referred back to the responsible authorities, or require further environmental assessment by a review panel.

If the Minister of the Environment refers the project back to the responsible authorities, public hearings by the C-NOPB Commissioner will commence. In the event that the Minister determines further environmental assessment by a review panel is warranted, the C-NOPB and the Minister of the Environment will develop a joint public review process.

5. C-NOPB Decision

The decision of the C-NOPB with respect to the Development Plan will be contained in its decision report. Under the Accord Acts, approval of the Development Plan component of the Development Application is a fundamental decision that requires ministerial approval before being implemented.

ATTACHMENTS

Attachment #1 – Backgrounder: White Rose Development Project Review Process

Attachment #2 – Biography – Herbert M. Clarke

Attachment #3 – Commissioner’s Terms of Reference for The Proposed White Rose Project Public Review