1 ESRF NWT Upstream Oil & Gas Waste Stream Study: Regional Waste Management Modelling US-Canada Northern Oil and Gas Research Forum November 13, 2012, Anchorage Alaska Todd M. Paget, P. Eng. Industrial Specialist – Oil & Gas Environment Division Department of Environment and Natural Resources (ENR) Government of the Northwest Territories (GNWT)

Where? NWT, Canada Why? Project Motivation What? Regional Waste Management How? ESRF RWMTool Deliverables When? Timelines 2 ESRF NWT Upstream Oil & Gas Waste Stream Study:

3 Alaska Significant Resource Potential in NWT, Canada

4 NWT YK BC AB Beaufort Sea AK YK NWT Central Mackenzie Valley Beaufort: on, near, and offshore Mackenzie Valley - NWT AK

 Significant O&G potential in NWT: onshore, near-shore, offshore  Historically: reliance on municipal infrastructure for industrial waste  Existing NWT infrastructure does not meet industrial needs  Government, Land Claimants, Stakeholder concerns: ◦ Waste management for on-shore, near-shore and off-shore upstream oil and gas ◦ Various waste streams, substantial quantities ◦ facilities not designed, managed or licensed to accommodate ◦ Regulatory jurisdiction and requirements unclear ◦ Coordination of treatment/disposal lacking ◦ No integrated regional approaches  May result in adverse and unacceptable environmental economic effects/liabilities to NWT communities, governments  Future development exacerbates challenges  Result: determining approaches to waste management one of the most controversial and time-consuming aspects of planning, assessments and reviews… 5 ESRF NWT Upstream Oil & Gas Waste Stream Study: ESRF NWT Upstream Oil & Gas Waste Stream Study: Regional Waste Management Modelling Tool - RWMTool

6  O&G Waste Management identified as priority: ◦ Consultations in regional planning processes:  Beaufort Sea Strategic Regional Plan of Action  Beaufort Basin Regional Environmental Assessment  Significant during Joint Review Panel for proposed MGP  Regional Waste Management?  Requirements: ◦ Assess immediate and long-term regional management issues and options resulting from waste production and disposal  Infrastructure, transportation ◦ Where? On-shore, near-shore and off-shore in the NWT  Inuvialuit Settlement Region (ISR)  Gwich’in Settlement Area (GSA)  Sahtu Settlement Area (SSA) ESRF NWT Upstream Oil & Gas Waste Stream Study: ESRF NWT Upstream Oil & Gas Waste Stream Study: Regional Waste Management Modelling Tool - RWMTool

7  Environmental Studies Research Funds (ESRF): ◦ Initiated in 1983, receives its legislative mandate through the Canada Petroleum Resources Act (CPRA) ◦ Designed to assist in the decision-making process related to O&G exp. and dev. on Canada's frontier lands ◦ Frontier lands: where Canada has the rights situated in areas north of 60 degrees, and offshore of Canada's East and West Coasts ◦ Sponsors environmental and social studies pertaining to petroleum exploration, development, and production activities on frontier lands. ◦ Funding provided through levies on frontier lands paid by interested holders; i.e. O&G companies ◦ Directed by joint government/industry/public management board ◦ Administered by secretariat, in Office of Energy Research and Development, Natural Resources Canada, Ottawa, Ontario Project Concept and Proposal developed, submitted to ESRF…… ESRF NWT Upstream Oil & Gas Waste Stream Study: ESRF NWT Upstream Oil & Gas Waste Stream Study: Regional Waste Management Modelling Tool - RWMTool

8 Technical Objectives:  Combine waste streams, and projects over regional temporal and spatial boundaries  Built on database(s)  Waste stream types (WS) and quantities  Waste factors (WF)  Infrastructure and Design Standards in a Searchable Database  Simulate development scenarios projected over spatial and temporal boundaries ◦ Compare:  Mass balance scenarios over regional temporal and spatial boundaries  Infrastructure and Design Standards Develop info, options…………… ESRF NWT Upstream Oil & Gas Waste Stream Study: ESRF NWT Upstream Oil & Gas Waste Stream Study: Regional Waste Management Modelling Tool - RWMTool

 Compile waste tables  Verify types… 9 Typical Exploration/Seismic/Drilling/Completions/Workover Waste Types Blasting sand/materialMud sacks Cement returnsPipe/equipment hydrates Completion/W.O./well treatment fluidsPipe/equipment scale Blasting sand/materialProduced sand Deck drainageProduced water Drill cuttingsTank sludge Drilling fluidsThread protectors Hydraulic test (BOP) fluidsWashwater Hydraulic fluidWater (noncontact i.e. cooling water or fire water Industrial incineration ash ESRF NWT Upstream Oil & Gas Waste Stream Study: ESRF NWT Upstream Oil & Gas Waste Stream Study: Regional Waste Management Modelling Tool - RWMTool Typical Domestic Waste Types →→→ Sanitary fluidsgreywater blackwater Sanitary solidsHuman waste solids Sanitary incineration ash Domestic Solid WasteRefuse/trashType I/II/III waste Domestic incineration ash Recyclables Kitchen WasteKitchen solid food wasteCompostable Non-compostable Kitchen liquid waste Food contaminated packaging Recyclables Typical Industrial Field Support Waste Types Absorbent materialsHydraulic fluid AntifreezePallets Contaminated soilPallets Contaminated water/snowRags, oily BatteriesTires FiltersUnused and discarded materials Lab waste, sample wastes, and residuesUsed oil Solvents Near and offshore: Marine Operations Wastes Marine support vessels Drill ship Ice Breakers Establish Waste Factors (WF) Project over common times and spaces of operation…

10 Spatial Boundaries… time 1(t i ⇨t n ) time 2(t ii ⇨t n ) time 3 (t iii ⇨t n ) ∑WF y x t 2 ∑WF x x t 1 ∑WF z x t 3 ∑WF(x, y, z) x ∑ t n X Y Z Their wastes streams overlap in space and time… ∑WF(x, y, z) x t n = Scenario A ESRF NWT Upstream Oil & Gas Waste Stream Study: ESRF NWT Upstream Oil & Gas Waste Stream Study: Regional Waste Management Modelling Tool - RWMTool RWMTool Conceptual Example

11  Assist in identifying the economic constraints and opportunities with regard to regional waste management options  Assist decision-makers in developing regional waste management strategies: ◦ environmentally sound ◦ cost effective ◦ technically feasible ◦ socially acceptable  While minimizing the cumulative environmental impacts that may otherwise occur  Win win for everyone…. ESRF NWT Upstream Oil & Gas Waste Stream Study: ESRF NWT Upstream Oil & Gas Waste Stream Study: Regional Waste Management Modelling Tool - RWMTool

 Task 1: ◦ Gather and Prepare Model Input Data, and Database  Task 2: ◦ Compile Infrastructure and Design Standards in a Searchable Database  Task 3: Develop Regional Waste Modelling Tool: ◦ Application interface (API) OGC (Open Geospatial Consortium) compliant for integrations with GIS software and Web Mapping Services (WMS)  Task 4: ◦ Final Report 12 ESRF NWT Upstream Oil & Gas Waste Stream Study: ESRF NWT Upstream Oil & Gas Waste Stream Study: Regional Waste Management Modelling Tool - RWMTool

13 Environment & Natural Resources (ENR) – TAG Lead Environment Canada (EC) Aboriginal Affairs and Northern Development Canada (AANDC) Industry Rep Contractor (AMEC) TaskYearDue date 0 Contract Start Date 0 1-May-12 1 Gather and Prepare Model Input Data and Produce Database 1 31-Oct-12 2 Compile Infrastructure and Design Standards in a Searchable Database 1 30-Apr-13 3 Develop a Regional Waste Modelling Tool (RWMTool) 2 31-Oct-13 4 Draft Final Report 2 31-Jan-14 5 Final Report 2 30-Apr-14 ESRF NWT Upstream Oil & Gas Waste Stream Study: ESRF NWT Upstream Oil & Gas Waste Stream Study: Regional Waste Management Modelling Tool - RWMTool

Thank you! Questions? 14 Todd M. Paget, P. Eng. : Industrial Specialist – Oil & Gas Environment Division, ENR, GNWT ESRF NWT Upstream Oil & Gas Waste Stream Study: Regional Waste Management Modelling US-Canada Northern Oil and Gas Research Forum November 13, 2012, Anchorage Alaska