Archived - 2012-2013 Call for Bids for a Significant Discovery Licence in the Arctic Islands of Nunavut

Operators wishing to carry out activities as a result of this process will be required to comply with all federal environmental requirements defined in the Nunavut Land Claims Agreement as well as those stemming from the Canadian Environmental Assessment Act, the Canada Oil and Gas Operations Act, the Territorial Lands Act, the Arctic Waters Pollution Prevention Act, the Migratory Birds Convention Act, the Species at Risk Act, the Fisheries Act, the Canadian Environmental Protection Act and other applicable legislation.

Some areas on the map attached are of particular environmental importance. They have been identified to alert interested parties that additional operating terms and conditions may be applied at the activity stage. For example, the work season may be restricted to those months when the proposed type of activity will not have a significant impact on sensitive fish and marine habitats, mammals, birds or other species. In addition, extra conditions may be imposed relating to drilling fluids and waste discharges, and site specific environmental protection plans may be required prior to the commencement of activity. These environmental protection plans would describe the necessary procedures the operator would take to minimize any environmental impacts to a particular species in the region.

The Petroleum and Environmental Management Tool ranks the Arctic Islands of Nunavut and surrounding area in terms of relative environmental and socio-economic sensitivity. This information has been identified by specialists and is intended to alert interested parties that this area may be subject to additional regulatory terms and conditions. In areas of the Call not covered by the Petroleum and Environmental Management Tool, please refer to the "Area subject to specific environmental considerations" on the attached map.

Specific environmental information has been provided by Nunavut Tunngavik Incorporated and marine and wildlife specialists, such as Fisheries and Oceans Canada, Environment Canada and the Government of Nunavut. The Canadian Wildlife Service advises that the Ivory Gull has been listed by the Committee on the Status of Endangered Wildlife in Canada (COSEWIC) as "Endangered"; the Red Knot, a medium-sized shorebird which nests in the region, is listed as "Special Concern"; and the Ross's Gull is listed as "Threatened", under the Species at Risk Act. Information on all of the species at risk in this region can be found at www.sararegistry.gc.ca . The Canadian Wildlife Service has extensive information on known breeding locations in the high Arctic, and proponents should contact its Iqaluit office for further information (867-975-4633).

Fisheries and Oceans Canada encourages operators to contact its Iqaluit office for fisheries and mammal sensitivity information in the Nunavut area (867-979-8010).

Polar Bears and Peary Caribou inhabit the Arctic Islands of Nunavut. Polar Bears are listed as "Special Concern" by COSEWIC, while the Peary Caribou are listed as "Endangered" by the Government of Canada.

Management of bears and caribou is a territorial responsibility and thus proponents should contact the Iqaluit office of the Government of Nunavut for further information on important locations for these species (Department of Environment (867-975-7704).

The Nunavut Planning Commission has prepared a Draft Nunavut Land Use Plan to encourage discussion on land use planning in the Nunavut Settlement Area. The plan provides an illustration of how the Nunavut Land Use Plan may guide development, once approved. Industry is encouraged to look at the draft plan which can be accessed at: www.nunavut.ca/en/draft-plan.

The successful bidders shall comply with the terms of the Nunavut Land Claims Agreement. Interested parties are advised to obtain a copy of the agreement: www.rcaanc-cirnac.gc.ca/eng/1100100030601/.

Canada Petroleum Resources Act, section 21
Canada Oil and Gas Operations Act, section 5.2

1. Benefits Statement of Principles

   Companies engaged in exploration activities on frontier lands are expected to follow the principles outlined below.

   It is recognized that the nature and duration of work programs must be considered in determining the extent to which companies are able to implement the benefits principles.

   Industrial Benefits

   The company is committed to obtaining its goods and services on a fair and competitive basis. The company will support and encourage the development of regional businesses by considering potential suppliers for work associated with the program on the basis of best value, competitiveness and benefits to the regional communities and by providing relevant information to the supply community.

   Within the context of its general procurement policy, the company will conduct its operations so as to optimize the short and long-term benefits accruing to the North by providing opportunities for involving northern businesses on a full, fair and competitive basis.

   The company is committed to work with regional communities and government agencies to identify potential business development opportunities.

   The company is committed to ensuring that its contractors follow the above with respect to all subcontracting opportunities.

   Employment and Training

   The company is committed to the principles of fair and equal employment and training opportunities consistent with the Canadian Charter of Rights and Freedoms. This commitment will promote fairness in employment opportunities and avoid employment practices which result in employment barriers. The company will give first consideration to qualified individuals resident in the regional communities.

   The company is committed to work with regional communities and government agencies to identify potential employment and training opportunities.

   The company is committed to ensuring that its contractors follow the above with respect to all employment and training opportunities.

   Consultation

   The company is committed to providing appropriate information concerning its exploration programs to concerned individuals, groups and communities in the region. Exchanging relevant information in a timely fashion will enable the company to assess the potential local economic and employment opportunities.

   Compensation

   The company will provide fair and equitable compensation to individuals involved in hunting, trapping and fishing in the event of adverse impacts demonstrated to result from project-related activities.

2. Annual Report

   The company will submit an annual report within three months of the completion date of its seasonal work program.

   The report should contain the following information:

   • a brief work program description;
   • total program costs (total value of purchased goods and services, total direct wages and total direct work months);
   • total direct wages by northern community of residence;
   • total direct work months by community of residence;
   • number of northern community residents employed for each program component (e.g. seismic, drilling, support and construction);
   • total value of purchased goods and services from each northern community, including a brief description of the goods and services purchased from each community;
   • listing of consultations undertaken;
   • a brief description of any programs that may be undertaken in the next work season.

   Benefits Plans and Reports for Nunavut and the adjacent northern offshore are to be sent to AANDC Headquarters:

   Director
   Northern Petroleum Resources Directorate
   Northern Petroleum and Mineral Resources Branch
   Aboriginal Affairs and Northern Development Canada
   10 Wellington
   Gatineau, Quebec
   Postal Address:
   OTTAWA ON K1A 0H4

   Note: The Northern Benefits Requirement Associated with New Exploration Programs is currently under review. For more information on the review process and the interpretation of the current requirements, please contact: LOPC-COGOA@aadnc-aandc.gc.ca, or visit the web page.