PROJECT ENVIRONMENTAL ASSESSMENT TO CONTINUE AS A COMPREHENSIVE STUDY PARTICIPANT FUNDING AWARDED OTTAWA, February 18, 2005 -- The Honourable Stéphane Dion, Minister of the Environment, has determined that a comprehensive study is the most appropriate level of environmental assessment for the proposed Orphan Basin Exploratory Offshore Drilling Project in Newfoundland. The Minister based his decision on the report and recommendation submitted by the responsible authority, the Canada-Newfoundland Offshore Petroleum Board (C-NOPB). The report contains information on the scope of the proposed Orphan Basin Exploratory Offshore Drilling Project, the factors to be considered by the environmental assessment, public comments submitted to the C-NOPB, the potential of the project to cause adverse environmental effects and the ability of the comprehensive study to address issues relating to the project. "I am confident that a comprehensive study can address the issues related to the Orphan Basin Exploratory Offshore Drilling Project and I look forward to receiving a completed comprehensive study report from the responsible authority," said Minister Dion. The Minister's determination of the environmental assessment track is a new feature of the comprehensive study-level assessment process brought about by improvements to the Canadian Environmental Assessment Act which became law in October 2003. Early in the process, the Minister has the option of deciding, with public participation, whether a project should continue to be assessed as a comprehensive study or be referred to an independent review panel. The new requirement is intended to ensure that the process is more predictable and that the public have more opportunities for participation. Once the Minister has decided to continue with the comprehensive study, the project cannot be referred to a review panel at a later date. The C-NOPB will now continue the comprehensive study and submit its final report to the Minister of the Environment. At that time, the public will have an opportunity to comment on the findings and recommendations of the report before the Minister renders his decision. Chevron Canada Resources and its partners ExxonMobil Canada Ltd. and Imperial Oil Resources Ventures Ltd. are proposing to conduct an exploration drilling program in the Orphan Basin area, approximately 350 km northeast of St-John's. Chevron and its partners are proposing to drill up to three wells initially, with the possibility of adding nine additional wells. Drilling could begin as early as mid-2006. The Canadian Environmental Assessment Agency will act as the Federal Environmental Assessment Coordinator for this environmental assessment in order to coordinate the participation of the C-NOPB along with a number of federal departments, including Environment Canada, Transport Canada, Natural Resources Canada and Fisheries and Oceans Canada. A copy of the report on which the Minister based his decision can be obtained by contacting Kim Coady, Environmental Assessment Officer, C-NOPB at 709-778-1431 or by e-mail : ead@cnopb.nf.ca. Participant Funding The Canadian Environmental Assessment Agency will provide a total of $20,000 to two applicants to support their participation in the environmental assessment, by comprehensive study, of the proposed Orphan Basin Exploratory Offshore Drilling Project. The recipients are the Natural History Society of Newfoundland and Labrador Inc. and the Alder Institute Inc. Funding is available through the Participant Funding Program administered by the Agency. A funding review committee, independent from the comprehensive study environmental assessment process, was appointed to examine all participant funding applications. The Committee members were: Bill Coulter, Director, Atlantic Region, Canadian Environmental Assessment Agency, and Colleen Mercer Clarke. All of the Committee's recommendations were unanimous and are contained in the Report of the Funding Review Committee. -30- The Canadian Environmental Assessment Agency administers the federal environmental assessment process, which identifies the environmental effects of proposed projects and measures to address those effects, in support of sustainable development. For more information on this project and others in your area, please consult the Canadian Environmental Assessment Registry. Media may contact: Lucille Jamault Canadian Environmental Assessment Agency Place Bell Canada 160 Elgin Street, 22nd Floor Ottawa ON K1A 0H3 Tel.: (613) 957-0434 lucille.jamault@ceaa-acee.gc.ca