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Coexisting with the Fishing Industry Esso Norge AS An ExxonMobil Subsidiary

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ExxonMobilAn ExxonMobil Subsidiary

Coexisting with the Fishing Industry

Esso Norge ASAn ExxonMobil Subsidiary

ExxonMobil: Coexisting With the Fishing Industry

3

1 IntroductionGlobally, as nations work to improve their economies and

living standards, the need for adequate supplies of oil and naturalgas is critical.

For the foreseeable future energy demand is expected toincrease about 2% per year, with oil and natural gas continuing tobe the dominant sources of energy.

As a leader in the worldwide search for oil and natural gasresources, ExxonMobil’s activities often take us to oceans wheretraditionally fishery based activities have played a dominant role inthe local economy and society. We have long recognized that tosucceed we must coexist with the fishing industry and harmoniouslyshare the ocean and its seabed. Protection and maintenance ofthe fishing industry, the fishermen, and their communities should bea major priority for ExxonMobil.

Most of the fishermen with whom we talk believe that thefishing industry and the petroleum industry can coexist. They areconcerned, however, with the potential for:

♦ Competition for and loss of access to traditional fishinggrounds;

♦ Seafloor debris or obstructions from the oil industry thatcould damage fishing gear and cause loss of fishing catchand time;

♦ Pollution; and

♦ Increased vessel traffic.

At the same time they see the positive impacts of coexistence withthe oil industry such as:

♦ Increased emergency response resources in the area,i.e., response to vessels in distress; and

♦ Increased emergency response presence in the case ofpollution associated with other industries.

ExxonMobil has

long recognized

that for us to

succeed we must

coexist with the

fishing industry

and harmoniously

share the ocean

and its seabed.

ExxonMobil: Coexisting With the Fishing Industry

4

Principles

In coexisting with the fishing industry, ExxonMobil hasdeveloped certain principles to guide our engagement. Theyinclude:

♦ Acknowledging that both the fishing and the petroleumindustries are legitimate users of the sea and seabed;

♦ Taking steps to minimize impacts to the fishing industries;

♦ Practicing mutual avoidance and protection at sea;

♦ Making genuine efforts to avoid conflict; and

♦ Ensuring that fishermen have the same economicopportunities before, during and after the petroleumdevelopment activities.

Practices

Stemming from these principles, our engagement with thefishing industry can be characterized by these practices:

♦ Consultation is the rule. We recognize that goodcommunication, trust building, and a sense of goodwillare the key ingredients for a “successful” coexistence withthe fishing industries.

♦ Our approaches are “problem-solving” and not “deal-making.” Sound science is fundamental to us in resolvingtechnical challenges and a cornerstone in the process ofreaching agreement on specific issues.

♦ Financial compensation is the “mitigation of last resort.”Other appropriate means of mitigating anticipated oractual impacts would be implemented first.

Consultation is

the rule. We

recognize that

good

communication,

trust building, and

a sense of

goodwill are the

key ingredients for

a “successful”

coexistence with

the fishing

industries.

ExxonMobil: Coexisting With the Fishing Industry

5

2 Case Examples

2.1 NORWAYExxonMobil' policy is to conduct its business in a manner that

is compatible with the balanced environmental and economic needsof the communities in which it operates. We will always seek toexecute our activities according to Best Environmental Practices(BEP), using the Best Available Technologies (BAT).

Field operations will be designed to meet the zero dischargerequirements as they apply to all stages of field life, fromexploration through development, operation, and abandonment.

Measures will be implemented to avoid interference withnatural reproduction in the marine environment and quality of themarine environment and to avoid reduction of the quality of fish orother marine products for human consumption. A key objective iscoexistence with fisheries, the aquaculture industry andrecreational interests.

ExxonMobil has developed the following environmentalobjectives, which will be integrated into the planning and executionof activities during all phases of field life on the NorwegianContinental Shelf (NCS) (exploration, development, production, anddecommissioning):

♦ Protection of environmental resources

♦ Positive coexistence with other users of the sea, such asfisheries, aqua culture, and local communities

♦ Zero harmful discharges to sea within year end 2005

♦ Reduction of CO2, NOX, and VOC emissions bysystematically applying Best Available Technology (BAT)and thereby contributing to meeting national reductioncommitments

♦ Development of an oil spill response plan in accordancewith the cooperation between NOFO (Norwegian CleanSeas Association for Operating Companies), SFT (StatePollution Control Authority), and the IUAs (Inter-municipalCommittee Against Acute Pollution).

ExxonMobil has established a rigorous health, safety, andenvironmental management system that is consistent with theinternational standard ISO 14001. This system forms the basis forsystematic evaluation and management of environmental issues,

ExxonMobil

policy is to

conduct its

business in a

manner that is

compatible with

the balanced

environmental and

economic needs

of the

communities in

which it operates.

ExxonMobil: Coexisting With the Fishing Industry

6

integrating this into the overall planning and development of newfields and ensuring continuous improvement.

Sand Eel Field Research

ExxonMobil has through the Norwegian OilIndustry Association (OLF), contributedeconomically towards a field study on thepotential effects of seismic on the sand eel. TheMarine Institute in Bergen did the study.

The study was not conclusive on the effectsof seismic, but none of the results supportedearlier allegations of seismic's negative effects onthe sand eel stocks.

Ringhorne Field Development

In connection with the Ringhorne Jurassic development,ExxonMobil in 2002 established a consultation process with thefisheries in the area. The objective of the consultation was toestablish early dialogue to ensure that the new subsea pipelinesassociated with the development would minimize any impact on thefishery in the area. Measures taken included burying and backfillingof the pipelines outside of established safety zone to enableovertrawlability, and minimizing the rock size in the upper-mostlayer of those selected areas where rock dumping was applied.Prior to start-up of the installation work, the fishermen in the areawere notified through advertisements in several newspapers.These combined efforts helped to promote coexistence betweenthe oil industry and the fishery in the Ringhorne area.

The Ringhorne field has been developed with facilities forinjection of drilling waste, produced water and drainage water, andeffectively is a zero discharge platform.

Lesser (Raitt’s) Sand eel

(Ammodytes marinus)

The objective of

the consultation

was to establish

early dialogue to

ensure that the

new subsea

pipelines

associated with

the development

would minimize

any impact on the

fishery in the area.

ExxonMobil: Coexisting With the Fishing Industry

7

Hvitveis deep-sea Exploration Well – Naglfar Dome,Norwegian Sea

In connection with the preparations for the Hvitveis explorationdrilling in the Vøring Basin of the Norwegian Sea, ExxonMobilconducted an extensive consultation effort in Nordland county inthe winter and early spring of 2003. The consultation programincluded community meetings with the following stakeholders in theregion:

• Nordland County Leadership – Bodø

• Sandnessjøen Municipality

• Brønnøysund Municipality

• Lofoten Municipalities Board – Leknes

• Vesterålen Municipalities Board – Stokmarknes

• Nordland Fishery Association

• Fish Farm Association

• Coastcare – Svolvær

• Bodø Municipality

• Mosjøen Police – Mosjøen

• Rescue Center – Bodø

• Nordland Bench – Oslo

The Hvitveis well was completed with no environmental or safetyincidents.

ExxonMobil: Coexisting With the Fishing Industry

8

2.2 CANADAIn Atlantic Canada, the offshore petroleum industry is a

relatively new entrant into the traditionally fishery-basedeconomy. ExxonMobil has a dominant position and is theindustry leader in this region. By and large, the successfulcoexistence of the petroleum and fishing industries in thisarea is a reflection of ExxonMobil’s commitment to theseissues. The following are a number of case examples ofcoexistence between the fishermen and ExxonMobil in thisarea.

Hibernia Oil Development

Construction Phase Initiatives

The giant Hibernia oil field, situated on the Grand Banks ofNewfoundland, was discovered in 1979, and first oil was producedin December 1997. The Grand Banks have been known forhundreds of years as one of the world’s major fishing grounds.Recognizing the significance of the fishing industry there,ExxonMobil first initiated discussion with fishermen in 1980,followed by the establishment of a Fishery Advisory Committeechaired by ExxonMobil in 1982. Throughout the development ofthe field, ExxonMobil worked closely with the fishing industry.Some significant activities included:

♦ ExxonMobil conducted in-depth studies of the potentialsocioeconomic effects on the Newfoundland fishingindustry from offshore petroleum development. Thesestudies included interviews with hundreds of peopleactively working in the fishing industry, fish plant workers,deep-sea trawler crews, company executives, andindependent inshore fishermen. Over three-quarters ofthese Newfoundlanders contacted during our surveystated that “fish and oil can work side by side.”

♦ ExxonMobil included fishermen from the potentially-impacted communities around the nearshore deepwaterconstruction site to work with the major engineering-procurement-construction (EPC) contractors in resolvingtheir concerns. A Code of Practice was developed jointlyby the fishermen, the Hibernia owners, and the regulatoryagencies to address compensation and other issues. The

The Hibernia Oil Platform

ExxonMobil: Coexisting With the Fishing Industry

9

Code of Practice was followed by all Project Contractorsand subcontractors.

♦ ExxonMobil worked with the fishing communities directlyaffected by the inshore construction of the very large oilproduction platform (1990-1997). The waters adjacent tothe construction site have been used by inshorefishermen for more than a century. The “loss-of-access”compensation program developed was the first of its kind,compensating for the fishermen’s income loss andproviding additional incentive bonuses for fishermen whomade an effort to continue fishing, in waters away fromthe construction site.

The extensive fishery consultation and participation was key tothe successful implementation of the Hibernia project.

Production Phase Initiatives

♦ Production activities in the Newfoundland offshore areamay potentially present a risk to fishermen with respect togear, vessel damages, and oil spills. While fishermen areable to make claims through the courts under the civillaws of Canada or under offshore oil and gas legislation,(the Canada-Newfoundland Atlantic AccordImplementation Act), Hibernia has developed anadditional voluntary Program that offers a simpler processfor obtaining appropriate compensation.

Hibernia recognizes the need to compensate fishermen ina fair and timely manner for any actual loss it may cause.The purpose of the voluntary Program is to provide a fairand timely compensation to commercial fish harvesterswho sustain actual loss. The process provides amechanism for swift resolution of all legitimate claims andthe opportunity for all parties to minimize costs.

♦ Hibernia and other offshore operators in theNewfoundland offshore area actively participate in ONEOCEAN, an inter-industry organization established topromote cooperation and understanding between thefishing and petroleum industries. ONE OCEAN functionsas a liaison and cooperation link between the twoindustries, which operate in the same marineenvironment. Led by an Advisory Board ofrepresentatives from oil and gas operators and fishing

The extensive

fishery

consultation and

participation was

key to the

successful

implementation of

the Hibernia

project.

ExxonMobil: Coexisting With the Fishing Industry

10

industry organizations, ONE OCEAN works to enhanceeach industry's knowledge and understanding of the otherand facilitates resolution of issues of mutual concern.The organization is funded by the oil andgas industry.

Sable Offshore Energy Project

ExxonMobil is the operator and a major owner ofthe Sable project, located offshore in the CanadianAtlantic on the Scotian Shelf. The project involved thephased development of six natural gas fields, sixplatforms, interfield flowlines, and a 225 km submarinepipeline to onshore gas processing facilities, with firstgas realized in December 1999. The project offshorefacilities overlapped with a significant commercialscallop fishery, which accounted for 3-5% of the totaleastern Scotian Shelf scallop landings of about 950round tonnes. Although much of the Nova Scotianlabor force is employed in the service sector, fishing isstill the economic mainstay and way of life for many coastalcommunities.

Early in the planning for the Sable project, ExxonMobilrecognized the need for the project and the fishing industry tocoexist. In 1996, ExxonMobil launched an extensive consultationprogram with the fishermen, resulting in the formation of anoffshore fishery liaison committee and two nearshore fishery liaisoncommittees. The offshore committee consisted of nine largeoffshore fish harvesting and processing companies, particularlythose with fishing rights at or near the project production facilitiesand pipeline. A representative of the Nova Scotia SeafoodProducers Association chaired the committee. The nearshorefishery committees consisted of many independent fishermen andaquaculture companies at the pipeline landfall location.ExxonMobil was represented on each of these committees and alsosupplied and paid for an independent facilitator for each committee.Meetings took place in the boardroom of the large fishing union, aswell as at community halls and homes of the fishermen in smallerfishing villages.

Government fishery scientists were brought in to help withtechnical issues. For example, scallop fishermen were concernedwith the potential overlap of project facilities with the scalloptrawling operation. Government scallop specialists helped by using

Sable OffshoreEnergy Project

ExxonMobil: Coexisting With the Fishing Industry

11

their catch-data to assess the potential magnitude of theinteraction. A trawlability study was also conducted to determinethe interaction between the scallop trawling gear and the pipeline.Fishermen’s opinions were factored into the entire pipeline routeand landfall selection process.

For this project, the typical stages of engaging the fishermencan be described as follows:

1. Share with the fishermen preliminary project developmentplans, particularly information on the type of offshorefacilities, locations, operation logistics, constructionmethods, and schedules.

2. Understand the fisheries that overlap with the projectarea, particularly their locations and quantity of fish catch,the type of fishing operations employed, and theseasonality and sensitive periods of the fisheries.

3. Scope the issues of concern to the fishermen.

4. Assess the significance and the magnitude of thepotential impacts of the project on fisheries. Crediblethird-party data and specialists, usually from thegovernment and academia, were employed or brought into help with the assessment.

5. Agree on a list of issues that need to be resolved.

6. Establish a mechanism for communication and problem-solving throughout the different phases of the project;e.g., construction, operation, and decommissioning.

Agreements were reached with the three fishery liaisoncommittees in 1997, before the project construction phase.Financial compensation was considered only as a “mitigation of lastresort,” and no compensation was paid in advance of an impact.There was also no compensation simply for occupation of theseabed. The agreements followed a “response” approach to beinvoked only in the event of actual economic loss.

In the case of the Sable project, engaging the fishermen earlyin the development project to solve potential conflicts was asignificant factor leading to the government approval of thedevelopment.

In the case of

the Sable project,

engaging the

fishermen early in

the development

project to solve

potential conflicts

was a significant

factor leading to

the government

approval of the

development.

ExxonMobil: Coexisting With the Fishing Industry

12

Effects of the Sable Pipeline on the Snow Crab andLobster Fisheries

ExxonMobil is a partner in ongoing research to study the effectof the Sable submarine gathering lines on the lobster and snowcrab fisheries. The study included a field measurement program inthe vicinity of the Sable pipeline and a laboratory study of lobsterbehavior near a simulated pipeline in a tank environment at a localuniversity. The study focused on:

1. Lobster catchability in several segments along thenearshore pipeline route;

2. Acoustic survey in the region of the marine pipeline tomeasure pipeline signature;

3. Electromagnetic survey in the region of the marinepipeline to measure electromagnetic signatures; and

4. Laboratory program examining lobster mobility in thepresence of a simulated pipeline.

This research grew from a consultation with fishermen in thevicinity of our Sable operations. Fishermen were concerned that“noise” from the pipeline might affect the lobster fishery and lobstermobility. Preliminary results indicate that lobsters do not avoid thearea near a buried operational gas pipeline. No discernabledifferences in numbers of trapped lobsters between the control sitesand the pipeline corridor were observed.

This approach exemplifies ExxonMobil’s “science-based” and“problem-solving” approaches in engaging with commercialfishermen.

Piledriving and Vessel Sound Measurements DuringInstallation of a Gas Production Platform near SableIsland, Nova Scotia

Concern has been expressed by the fishing and scientificcommunities about the potential effects of underwater industrialnoise from the construction phase of the Sable Project on thefishery and marine mammals in the vicinity.

Because there had been few measurements of platforminstallation and construction noise, in 1998 ExxonMobil decided toconduct a study to document the levels and characteristics of theunderwater noise from piledriving of the caissons for the offshoreplatforms as well as the sounds of the construction barge andnearby vessels. The results indicate that sound pressure levels

This approach

exemplifies

ExxonMobil's

"science-based"

and "problem-

solving"

approaches in

engaging with

commercial

fishermen.

ExxonMobil: Coexisting With the Fishing Industry

13

which may cause avoidance behavior in fish are generally confined toareas close to the source.

This is another example of ExxonMobil’s approach to alleviatingconcerns of the fishermen by utilizing a “science-based” approach.

Studying the EnvironmentalEffects of Marine SeismicExploration on the Fish andFisheries of the Scotian Shelf

In 1998 ExxonMobil voluntarilyled the other offshore operators inAtlantic Canada to conduct a strategicenvironmental assessment of marineseismic exploration on the fish,fisheries, and marine mammals of theentire Scotian Shelf. This study wasthe first of its kind in Canada andestablished a proper scientificfoundation for assessing the effects ofunderwater noise in relation toseismic exploration. ExxonMobil also pioneered the employment ofFisher Observers on board our seismic vessels as independent, third-party observers to evaluate the impact of seismic operations on thefish, wildlife and the fishermen. These observers also acted as fishingvessel traffic coordinators and liaisons with regard to fishing activitiesaround the seismic operations at sea.

Sable Offshore Energy Environmental EffectsMonitoring Advisory Group (SEEMAG)

In 1998 ExxonMobil, as operator of the Sable project, establisheda multiple stakeholder group to help in monitoring of the effects of theSable project on the environment. The fishing industry was part of thisgroup, which also included scientists, environmental NGOs, theaquaculture industry, and First Nations. This group helped in thedesign of the environmental effects monitoring program and theinterpretation of its results. This program demonstrated ExxonMobil’sdesire for transparency in our operations and the participatoryapproach in engaging with the fishermen and other stakeholders in ouroperations.

Zones of Potential

Influence of Sound

ExxonMobil: Coexisting With the Fishing Industry

14

2.3 UNITED KINGDOM

Fishing Gear and Pipeline Interaction

In addition to actively engaging with the fishingindustry through the United Kingdom OffshoreOperators Association (Fisheries Liaison Committeeand Seismic Acquisition Sub Committee), ExxonMobilwas a sponsor of the 1998 “Trenching GuidelinesJoint Industry Project.” The study included extensiveresearch into the fishing gear and pipeline interactionissue, contributing to safer fishing operations.

2.4 UNITED STATES OF AMERICA

Interaction of Offshore Petroleum Activities withFisheries (Marine Seismic, Drilling, Production, andPipelining)

ExxonMobil founded and chaired (1996-2003) a multiplestakeholder coalition involving government, fisheries, and industrycharged with addressing the issue of underwater obstructions infishery areas of the Gulf of Mexico. This coalition has beeninstrumental in getting funding for removal of snags andobstructions, which has resulted in a safer environment forfishermen in Gulf waters. The coalition has also facilitateddiscussions between operators and fishermen to resolve conflictsand disputes and has helped to improve industry confidence in thedamage compensation funds administered by several statesbordering the Gulf of Mexico.

Flume Tank Test of Fishing

Gear Interaction with Pipeline

ExxonMobil: Coexisting With the Fishing Industry

15

2.5 AUSTRALIA

Effects of Seismic Operationson Scallop Fisheries in BassStrait

Over the past three decades theGippsland Basin in eastern Bass Straithas produced approximately half ofAustralia’s oil and one-third of its gasproduction. In recent years, however,production has been declining, and over70% of known reserves have now beenextracted. To identify further oil and gasreserves, Esso Australia initiated a seismic testing program in 2001covering 3900 km2 in eastern Bass Strait. The region selected forseismic testing also supports significant commercial trawl fisheriesand a scallop dredge fishing, and fishermen from these industriesexpressed concern that seismic testing might affect their fisheries.Specifically, fishermen expressed concern that seismic testingmight kill scallops, weaken the adductor muscle of scallops, orincrease the mortality of larval scallops and fish.

Esso Australia commissioned a study to investigate theconcerns of the fishermen, and a field program was undertaken inBass Strait to measure any impacts of seismic testing. The effectsof seismic testing on adult scallops were measured by comparingthe mortality and adductor muscle strength of scallops deployed inan area subject to seismic testing with those in a control areadistant from the testing. The effects of seismic testing on plankton,including larval scallops, were measured by comparing planktoncommunities immediately behind the seismic vessel with thosesampled before and 2 km distant from the seismic testing.

This study found that the mortality rate and adductor musclestrength of scallops suspended 19 m below the surface of BassStrait in the path of the airgun array was not significantly differentfrom those of scallops placed on a control plot 20 km away.Similarly, there was no major difference in the abundance ofplankton (including bivalve larvae) behind the seismic survey vesselfrom their abundance before the passage of the vessel or 2 kmdistant from the vessel. High levels of variability in plankton

Longline showing the

arrangement of scallop

lantern nets, weights, and

floats used in the

experiment

ExxonMobil: Coexisting With the Fishing Industry

16

communities meant that only large changes would have beendetected by our sampling, but the available literature suggests thateffects on plankton are confined to regions within 1-10 m ofairguns, so only very small effects were expected in Bass Strait.

Northern Fields Experience – Fisheries and SeismicOperations

The Bass Strait contains a number of regionally importantfisheries, various fish species are targeted, and fishing methodsinclude trawling, seining, scallop dredging, gill netting, andlonglining.

There is an existing arbitration and compensation scheme forgear and catch lost to oilfield equipment and operations. Thisscheme has been running successfully for some years. Given thesize and duration of the Northern Fields seismic project, we felt thatcloser liaison with the fishing industry was required.

Prior to the seismic operation, Esso Australia arranged aseries of public meetings with fisheries cooperatives in all theregional ports to present the project plans and discuss concerns.One of the fishermen was also contracted to act as onshore liaison.

Esso Australia created a photographic database of all fishingboats including ownership details, type of gear, and contact details.This information was supplied to the seismic vessel and chaseboat.

A cable maintenance corridor was established clear offisheries and other traffic. Laminated maps of the survey, includingnumbered “swaths” for identification of work areas and the cablemaintenance corridor, were distributed to the fishermen.

Prior to mobilization, Esso Australia hosted vessel tours forinterested fishermen at the port of mobilization and introduced keyfisheries leaders to captains of the seismic and chase vessels.

During the seismic shooting, weekly activity summary reportswere distributed to the fishing cooperatives by fisheriesrepresentatives, in which the vessel work area was identified byswath number. This allowed fishermen to plan their trips to avoidthe “active” area.

Esso Australia also rearranged its operational plans to avoidscallop spawning areas when concern was expressed and hostedvisits for six fisheries “leaders” to the seismic boat whilst inoperation.

Given the size and

duration of the

Northern Fields

seismic project,

we felt that closer

liaison with the

fishing industry

was required.

ExxonMobil: Coexisting With the Fishing Industry

17

At completion of the seismic operation, letters of thanks weresent to the cooperatives, and newspaper ads were run showingpictures of fishing vessels and thanking the fishermen for theircooperation.

2.6 MALAYSIA

Malaysian Experience – Fisheries and SeismicOperations

Seismic operations in the Malay Basin have somewhataffected the gross income of some fishing communities, particularlyon the eastern coast of peninsular Malaysia. This has resulted inthe Malaysian Government, State Fishery Department, and LocalFishing Agencies issuing seismic operation guidelines throughPETRONAS (the national oil company) to oil companies operatingin offshore Malaysia.

Under these guidelines, ExxonMobil would notify the StateFishery Department prior to the seismic operation via a letterindicating our intention to acquire a seismic survey. The letterwould indicate the location of the survey, the name of the vessel tobe used, the approximate timing of the survey, and safety advisoryinformation.

We would meet with the State Fishery Department to discussthe seismic operations and request their participation in the fishtrapsurvey process. About a month prior to seismic surveycommencement, a fishtrap survey would be conducted at theseismic site using a chartered vessel. Included in the crew wouldbe the surveyors, ExxonMobil representatives, State FisheryRepresentatives, and selected fishermen. During the fishtrapsurvey, affected fishtraps would be tagged, logged, andphotographed for identification, recovery, and compensation.

Based on the identification, the State Fishery Representativeswould then call the affected fishermen for a compensation meeting.The fishermen would need to bring their tags to identify whichaffected traps belong to them. During the meeting, the StateFishery Representatives and ExxonMobil representatives wouldagree on the amount of fishtraps found versus the fishermen’sclaim, and compensation would be finalized at this meeting. Theaffected fishermen would be asked to either relocate or removetheir traps.

We would meet

with the Malaysian

State Fishery

Department to

discuss the

seismic operations

and request their

participation in the

fishtrap survey

process.

ExxonMobil: Coexisting With the Fishing Industry

18

Another fish trap survey would be conducted two to three daysbefore the arrival of the seismic vessel to ensurethat the fishermen have moved the traps. StateFishery Representatives, at their option, would bepresent on the chase boat during this survey.

During seismic shooting, the chase boatwould provide surveillance of new traps being putout by the fishermen. All new traps found wouldbe logged and photographed by the chase vesselcrew. A report would be filed with the StateFishery Department on new traps found, andanother compensation meeting would beorganized for the new traps, if required.

Upon completion of the seismic operation,the State Fishery Department and the fishermenwould be acknowledged and thanked, andPETRONAS would be informed of the total fisherycompensation paid.

2.7 JAPAN

Japanese Fishing Trawl Gear and PipelineInteraction

The examination of the effects of trawl gear on pipelines hasnot been limited to the North Sea area. Esso Eastern, Inc., ofJapan was involved in 1979 in a series of model and offshore teststo ascertain the potential effects of trenchedand untrenched 12 in diameter pipelines onJapanese trawl gear. The tests establishedthat an untrenched 12 in diameter pipelinewill not damage trawl gear and will have aminimal effect on fishing activities. Theresults of these tests, together with ananalysis of pull-over forces on the pipeline,have led to the decision to install most ofthe pipeline on the seabed withouttrenching but with concrete coating over itsentire length.

A Japanese trawler with

trawl boards

Japanese fishing

vessels in port

ExxonMobil: Coexisting With the Fishing Industry

19

Japan – Sakhalin Pipeline Project

In planning for the potentialdevelopment of an offshore, large diametergas pipeline from Sakhalin Island to Japan,Exxon Japan Pipeline Ltd. is working withthe Japanese partner Japan SakhalinPipeline Co., Ltd., in one of the largestfishery consultation programs in the world.The stakeholders include fishingcooperative associations from fivesubprefectures on Hokkaido Island and sixprefectures on Honshu Island. Togetherthey represent over two hundred fishingcooperative units potentially affected by theproject. ExxonMobil and its Japanese partners are working to learnabout the nature of the fishing operations along the pipeline corridorand to solicit the fishermen’s concerns regarding the proposedproject.

Focused consultation committees have been establishedinvolving fishing unions, fishery scientists, government fisheryagencies, and the project owners. This consultation effort initiallyincluded fishing data collection and a preliminary impactassessment.

The second stage of the consultation effort will involvetechnical studies to resolve various pipeline-induced impacts. Amajor scientific review on the potential effects of offshore pipelineson commercial fisheries has been commissioned.

Japanese coastal

fishing village