EnvironmentalStudiesResearchFunds

ESRF Program Overview

January 2011

Table of Contents

Legislation………………………………………………….…3Purpose of Funds……………………………………….….4Frontier Lands…………………………………………….…5Funding: Regional Levies…………………………….….6Administration of Funds……………………………….…8ESRF Management Board.…………………………..….9Study Management………………………………………10ESRF Levy and Invoice Process……………………..13ESRF Contract Issuance Process……………….…..14Publications…………………………………………………152011 Research Priority Areas...........................162011 Research Projects..……………………...........17

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LegislationLegislation

• Originated in 1981, Section 49 of the Canada Oil and Gas Act (C0GA)

• Currently described in Part VII of the Canada Petroleum Resources Act (CPRA) assented to 18th November, 1986

• Ministers of Natural Resources Canada (NRCan) and Indian and Northern Affairs Canada (INAC) responsible for accounts

• Newfoundland and Labrador (NL) and Nova Scotia (NS) Accord legislation provides for application to Accord areas

• Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) and Canada-Nova Scotia Offshore Petroleum Board (C-NSOPB) approve levies for their respective areas of jurisdiction

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Purpose of FundsPurpose of Funds

“ To finance environmental and social studies pertaining to the manner in which, and the terms and conditions under which, exploration, development and production activities on frontier lands authorized under this Act or any other Act of Parliament should be conducted.”

Canada Petroleum Resources Act, s. 76

(2)

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Frontier LandsFrontier LandsCanada’s Frontier Lands

Non-Accord Area (INAC)

Non-Accord Area (NRCan)

Newfoundland and Labrador Accord Area

Nova Scotia Accord Area

#S

#S

#S#S

#S

#S

#S

#S

Oil and Gas ProjectsOil

Gas

Sable

Terra Nova

White RoseHibernia

Cameron Hills

Fort Liard

Norman Wells

Ikhil

Funding: Regional LeviesFunding: Regional Levies

• 31 ESRF regions• Unique annual levy in each region on

petroleum land interests (per hectare)• Overall budget set each calendar year• Levy in each region depends on:

• Applicability of each proposed study to a region

• Industry activity/interest within a region• Existence of moratorium/prohibition

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ESRF ESRF RegionsRegions

7

31

26

27

24

28

29

23 25

30

5

8

11

7

9

14

6

15

13

12

10

13a

21

16

19

22

1820

17

4

3

1

2

Administration of FundsAdministration of Funds

• 12-member Management Board Jointly, Ministers appoint 8 members:

Federal Government (4)o National Energy Board (NEB), Environment Canada (EC), Fisheries and Oceans Canada

(DFO) and Indian and Northern Affairs Canada (INAC) Industry (4)

o Industry representatives of the Canadian Association of Petroleum Producers (CAPP) Offshore Petroleum Boards (2)

C-NSOPB C-NLOPB

Public Members (2) INAC and NRCan Ministers may appoint one member each to the Board

• Chair – Jointly appointed by Ministers from within the Management Board• Administrator – Jointly appointed by Ministers• Secretariat – Administrative support from within NRCan

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ESRF Board MembershipESRF Board MembershipPaul Barnes (Industry) – Chair

Robert Steedman (NEB) Lynne Patenaude (EC)Patrice Simon (DFO) Vacant* (INAC)

Greg Janes (Industry) Alan Kennedy (Industry)Francine Wight (Industry)

Dave Burley (C-NLOPB) Eric Theriault (C-NSOPB)

Gerard Chidley Norman Snow(Public Member South) (Public Member North)

* Member to be appointed by both Ministers

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Study ManagementStudy Management

• Spring: ESRF Management Board establishes priority areas for research one year in advance

• Summer: Advisory Groups recommend proposals to support priority areas

• Fall: ESRF Management Board selects the final research proposals and determines the method of study - contract or Memorandum of Understanding (MOU)

• Regional Research Manager (RRM), ESRF Secretariat, and Public Works and Government Services Canada (PWGSC) develop the Statement of Work (SOW) to be incorporated in the Request for Proposal (RFP) which is either issued in a contract (posted on federal contracting site -MERX) by PWGSC or in a MOU by the ESRF Administrator

• Technical Advisory Group (TAG) provides input in developing the study RFP and reviewing of the final report

• ESRF Secretariat and Regional Research Managers administer contracts/MOUs and ensure overall technical consistency

• ESRF Management Board approves final report for public release

• ESRF Secretariat releases report on ESRF web site

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ESRF Annual CycleESRF Annual Cycle

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Step 1: Annual review of Priority Areas for research in February

Step 2: Proposals brought forward via Management Board members and/or Regional Advisory Committees

Step 3: First look at proposals by Management Board in Spring

Step 4: Management Board makes final funding decisions in early Fall

Step 5: Ministerial budget approval in early Fall

Step 6: Offshore Boards budget approvals by new year

Step 7: Invoices to interest owners in 1st quarter of year for approved projects

Step 8: RFPs posted on MERX or Memorandum of Understanding (MOU) co-signed with required Government Department

Step 9: Technical Advisory Groups established

Step 10: Project proceeds, administered by Secretariat and Regional Research Manager with technical support from Technical Advisory Group

Management Board Research Priorities setting

meeting for funding in

following year

Management Board Draft Proposals

review meeting

Regional Advisory Committees Research Priorities Recommendations Meeting

Regional Advisory Committees Research Proposals and Discussions

Regional Advisory Committees Draft Research Proposals Review & Recommendations Meeting

Management Board

final review of and funding

decisions for final projects

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ESRF Annual Cycle

*Fall - Secretariat confirms land holdings with regulators*Draft administrative budget prepared for annual meeting

*Winter - Secretariat receives approvals from Offshore Boards and then confirms land holdings with all regulators

*Secretariat prepares and issues levy notices to all interest owners*Levies collected and adjustments made to budgets

*Secretariat prepares levy package for approval by Ministers of NRCan and INAC*Upon approval, levy notices sent to Offshore Boards for approval

ESRF Levy and Invoice Process

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*ESRF Management Board approves draft admin budget*Secretariat prepares final study and admin budgets and distributes for Chair, CAPP and Offshore Boards’ approval

*ESRF MB approves study and recommends RFP process (MOU or Contract) *PWGSC reviews contract

with Secretariat and posts on MERX for minimum 15 days *Secretariat updates RFP notification on web site

*NRCan reviews contract with Secretariat and posts on MERX for minimum 40 days*Secretariat updates RFP notification on web site

*Secretariat drafts MOU and forwards to Participant

*Participant reviews, signs and returns MOU to Secretariat

*Secretariat establishes Evaluation Team*PWGSC forwards all responses for review by Evaluation Team

*Secretariat establishes Evaluation Team*NRCan forwards all responses for review by Evaluation Team

*RRM and TAG prepare draft Statement of Work (SOW)*RRM forwards SOW to Secretariat

*Secretariat drafts SOW and Evaluation Grid for either: -PWGSC R&D contract -NRCan Service contract -MOU

*MOU reviewed by NRCan Legal Services

*MOU initiated

PWGSC R&D Contract

NRCan Service Contract

Memorandum ofUnderstanding

*Evaluation Team selects potential winning bid*Secretariat convenes consensus meeting with PWGSC and Evaluation Team

*PWGSC reviews Evaluation team decision and if in agreement, notifies successful bidder*Contract issued

*Evaluation Team selects potential winning bid*Secretariat convenes consensus meeting with NRCan and Evaluation Team

*NRCan reviews Evaluation Team decision and if in agreement, notifies successful bidder*Contract issued

ESRF Contract Issuance Process

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Publication of ESRF StudiesPublication of ESRF Studies

• All research studies are published in the continuing ESRF reports series

• Approximately 179 published to date

• Reports, at no cost, are only available on the ESRF web site (www.esrfunds.org)

• All publications are listed in both the ESRF Annual Report and Study Publications section on ESRF web site

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2012 Research Priorities2012 Research Priorities

Northern• Oil Spill Preparedness, Fate and Effects• Regional Effects Management

East Coast• Oil Spill Preparedness, Fate and Effects• Seismic

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2011 Projects: North2011 Projects: North

• Arctic Coastal Ecosystems – Beaufort Sea/Mackenzie Delta Mapping

• Improving the accuracy of short-term ice and ocean forecasts in the Beaufort Sea

• Strategic Plan for Beaufort Spill Prevention and Management

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2011 Projects: East Coast2011 Projects: East Coast

• Assessment of the Potential for Impacts on Early Life Stages of Fish and Zooplankton around Petroleum Development Sites on the Grand Banks

• Data Display and Source Apportionment of Volatile Organic Compounds and Particulate Matter on Sable Island

• Seismic Sound and Fish Behaviour Workshop

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