Lancaster Sound NMCA Feasibility Consultation

Meeting Agenda and Minutes

May 13, 2014 @ 0830hrs 1200hrs
Location:
Shell Centre, 400 4th Avenue, SW. Calgary. (Participants will check in at security to register as
guests).
Participants:
QIA: Rosanne D'Orazio,
Nunavut Government: David Monteith, Linda Hamm, and Peter Frampton
Parks Canada: Kevin McNamee (via teleconference call) & Carey Elverum,
NRCAN: Danny Wright and Tom Brant
SHELL: Randy Hiscock, Kim Johnson, Christine Pagan & Linda Edmonds
Agenda Items:
1.

Background / Introductions

2.

Lancaster Sound NMCA (Presentation by Parks Canada)

3.

Ecological Values Report (Presentation by Parks Canada)

4.

Mineral Energy Resource Assessment (Presented by NRCAN)

5.

Qikiqtani Inuit Association Traditional Knowledge Study (Presentation by QIA)

6.

Future of Oil & Gas Exploration and Development in the Arctic (SHELL)

7.

Status of SHELL Oil Lease Baffin Bay (SHELL)

8.

General Discussion & Question and Answer period.

Meeting Review:

Kevin McNamee conducts short introduction to NMCAs and the Lancaster Sound
proposal.
Carey Elverum introduces the Lancaster Sound NMCA project and puts the north and
Traditional Inuit Knowledge into perspective.
Due to time constraints for some of the participants, Danny Wright (NRCAN) and
Rosanne DOrazio (QIA) present their information prior to Carey providing info on
Lancaster Sound and the Ecological Values project.

Christine Pagan notes that (based on SHELLs information) the MERA report is highly
optimistic and is doing parks a disservice with regards to the potential of oil and gas
reserves.
o Shell is way more conservative in their estimates.
o The report may entice others to explore the north.
o Go to USGS web site to external benchmark data for oil and gas reserves in the
arctic.
o Woodmark (http://www.eliteexploration.com/woodmark-energy-services/) and
IHS (www.ihs.com/industry/oil-gas) are two other sources of oil and gas information.
NRCN responds by stating that the information is as unbiased as possible and is based
on know / publicly available science - not on politics or shareholders views.
QIA asks SHELL (considering the community desire to expand the NMCA boundary)
what the possibly is of giving up the rights to the area near Bylot Island?
Randy Hiscock (SHELL) discusses the moratorium on oil and gas exploration in the
Eastern Arctic and other items:
o No paper work on moratorium in place. The moratorium is based on the fact that
there is no approved process in place at this time to drill for oil and gas.
o SHELL is not prepared to talk about the long term future of oil and gas
exploration in the Eastern Arctic at this time.
o However, oil and gas exploration is not a high priority (Eastern Arctic) in short (5
yrs) or mid-term (15+ yrs) plans for SHELL.
o Industry does not have new seismic data (new technologies) in the area in
question and without that type of information, SHELL will not proceed with oil and
gas development.
o Although Shell does not have any plans to develop the lease near Bylot Island,
the lease does not expire and SHELL will not speculate if they would consider
releasing the lease.
o Shell was involved in the creation of the NMCA in Haida Gwaii and has
established a record of collaboration with the Government.
It was noted Parks Canada does not implement a policy of appropriation of leases but
will keep stakeholders apprised of updates as the feasibility study moves forward.
SHELL indicated that if they were to give up the lease, they would need to get something
back in return:
o However Shell would have to appropriately assess the lease (only within the
lease boundaries) with new technologies (3D and 4D seismic) in order to
advance any decision.
o This poses a problem as the moratorium prevents them from doing the work
required to make a decision.
o There is a need to form strategies and polices that can help SHELL advance any
form of decision.
o It was also noted that dialogue on lease negotiations would have to occur at a
much higher level.

Question was raised on how the various departments responsible for protecting ocean
waters are working together to advance polices and how this falls into Canadas
commitment internationally.
o There are ongoing attempts to collaborate with other federal departments on this
issue.
o Industry is concerned that we did not consult on other options rather than jumping
directly into the NMCA.
o Action: Send Kim Johnson, Federal protected area Strategy.
It was noted that SUNCOR has an interest (sub lease) in the Shell lease, but Shell would
only deal with this if some form of request was made to negotiate the lease.

Meeting Minutes:
Recored by Carey Elverum.