We employ sound environmental planning to support our seismic, construction and drilling projects worldwide. This may involve baseline environmental studies, formal or informal environmental impact assessments and attendant protection plans, depending on the local environmental setting and sensitivities.
We believe that by identifying environmental risks before we begin our projects and implementing strategies to reduce potential impacts, we minimize our environmental footprint.
Planning Onshore Construction Projects
We carefully plan all construction projects and employ several measures to reduce environmental impact. These include minimizing the size of areas to be cleared or otherwise disturbed, salvaging topsoil for eventual use in site reclamation and properly controlling runoff and erosion. Efforts are made to avoid sensitive environmental features through routing and schedule adjustments and the use of directional drilling techniques. In some cases, wells can be drilled from common pads to minimize the environmental footprint in a given area and most pipeline stream crossings are drilled or bored. To assist in our monitoring efforts, environmental inspectors are hired to guide work in sensitive areas.
Minimizing Environmental Impacts in Peru
Few areas in the world require higher levels of environmental planning and protection than the Maranon Basin in northwestern Peru. To minimize the impact of Talisman’s exploration programs on the local ecosystem, the Company used sound industry management practices. No roads were built as materials for the seismic programs were brought in by helicopter or barge.
More than 400 local labourers from 18 surrounding indigenous communities and five indigenous federations were hired for the Block 101 seismic program. In addition, five community members were hired and trained as environmental observers to verify Talisman’s compliance with agreed environmental protection standards, ensure operations were conducted in a transparent way and allow concerns to be effectively communicated to operations managers. Talisman also contracted an environmental service company to provide additional assurance that the contractor was carrying out the seismic program according to Talisman’s HSE expectations.
During Block 101 seismic operations, Talisman ensured minimal disturbance during line clearing. In fact, 996 kilometres of seismic lines were opened, primarily through use of hand clearing methods. Line widths were limited to 1.5 metres or less and trees with a breast height diameter of 20 centimetres or greater were avoided. These measures helped to minimize impacts associated with the operations and allow for rapid recovery of the affected area. A thorough abandonment and restoration program was also implemented, including revegetation of deforested areas (such as camps and helipads) with native species and long-term commitments for follow up monitoring. In addition, endangered species identification training was provided to all crew members to minimize potential impacts on surrounding plants and animals. Independent Peruvian environmental consultants helped ensure Talisman’s operations were compliant with commitments made by the Company.
Environmental planning is underway in support of planned drilling in 2008. Key activities include the development of safety standards and training, drilling waste management and preparation of a compliance verification framework.
Environmental Remediation in Colombia
Despite careful planning and implementation efforts, environmental restoration work is occasionally required. In September 2007, Talisman and its operating partner completed a two-year slope monitoring program in the Acevedo Block in the Upper Magdalena Valley region of Colombia as part of environmental remediation efforts sanctioned by the Corporacion Autonoma Regional del Alto Magdalena for environmental damage on the block. Fulfilling standard obligations to the Environmental Ministry of Colombia, Talisman and its co-venturers also carried out a reforestation compensation plan, which included planting bamboo trees on a 12.5 hectare area in the block and maintaining the trees for four years. Given the successful growth of the bamboo trees to date, the government is currently considering removing the remaining two-year maintenance obligation. A decision is expected in 2008.
Reclamation Activities in Trinidad
In 2007, Talisman initiated reclamation activities in Trinidad intended to return all former exploration locations to their former land uses. Through the removal of construction materials and water crossings, de-compaction of soils, re-establishment of natural drainage patterns,
spreading of topsoil and planting of trees, Talisman is taking appropriate steps to promote natural revegetation processes at these sites as well as limit public access. Relevant regulatory bodies were consulted during all well abandonment and site reclamation activities. Talisman will continue to monitor the progress of this revegetation work in 2008.
Supporting Baseline Bird Studies in Malaysia
Vast jungle tracts, coastal wetlands, pristine beaches and coral islands distinguish the state of Terengganu on the east coast of Malaysia. While it is a natural haven for a large variety of bird life, there have been no baseline studies completed to understand the extent of bird life and potential for community-based bird-related tourism until recently. In 2007, Talisman supported the Malaysian Nature Society Terengganu Branch’s efforts to conduct field work and interviews with local communities to determine bird populations in their areas. The project aims to raise the profile of Terengganu as a biologically important area as well as an ecotourism destination.
Minimizing Environmental Impacts in the Western US
In 2007, Talisman consulted with multiple stakeholders prior to its exploration programs in the western US. The exploration work required approvals from multiple levels of government as well as consent from local landowners. In addition, the Company consulted several interest groups. The resulting agreements consider a variety of needs and perspectives, including impacts on trail wildlife such as elk, pronghorns, raptors and grouse. Other needs were addressed by altering traditional designs for future facilities like incinerators and ensuring no onsite sumps will be used.
Minimizing Environmental Impacts in Canada
Since 2005, Talisman has implemented the Alberta government’s Sustainable Resource Development’s Area Operating Agreement (AOA) process. What was once a small pilot project has expanded into a tool which is used for almost all public or Crown land in Alberta. In 2007, Talisman became the first energy company to implement a provincial AOA, improving efficiency and ensuring more coordination of industrial development, reduction of conflict with other stakeholders and management of cumulative impacts of the Company’s activities. The AOA process connects Talisman’s philosophies with the ultimate objective of Integrated Landscape Management (ILM) on Crown or public land. This coordinated development is especially important in the more environmentally sensitive areas of the province in which Talisman operates, such as Caribou Management Areas.
Protecting Biodiversity in Western Canada
Effective management of access and wildlife concerns remain key components of project planning for ongoing exploration and development activity in Western Canada. To manage these concerns, the Company continues to work with local forestry companies and other industry to coordinate access planning. Talisman also provided $110,000 in continued environmental research funding relating to coldwater fisheries, caribou, grizzly bears and the propagation of native plants for use in site reclamation. Talisman also supported the Alberta Ecotrust Foundation, which provides financial support for grassroots environmental projects developed by communities and NGOs in Alberta.
Exploration in the Northwest Territories in Canada
Following receipt of regulatory approvals for exploration activity near the community of Deline in the Great Bear Lake area of the Northwest Territories in 2006, Talisman successfully completed a 500-kilometre seismic exploration program in March 2007. Approvals for the work required the completion of a Traditional Use Study, emergency spill and environmental protection plans, an Access Agreement and Community Benefits Agreement and other regulatory approvals. During exploration, Deline-based contractors were awarded $4.07 million in contracts and 20 local community members were hired.
Supporting Habitat Restoration in British Columbia
In 2007, Talisman supported the Peace River Conservation Youth Crew. Employed by the Nature Trust of British Columbia, the Youth Crew restores habitat on conservation lands and collects baseline ecological information. Activities include removing invasive weeds, restoring grasslands and wetlands, installing interpretive signs, repairing perimeter fences to keep livestock off conservation lands, monitoring wildlife and performing community outreach and education.
Environmental Research and Protection in the UK
In 2007, Talisman’s support for environmental research and protection in the UK focused on sustainable energy technology, conservation and education. Three key programs demonstrate this commitment: the Pitcaple Environmental Project (PEP), the Highland Foundation for Wildlife Osprey Tracking Program and the Grampian Police Environmental Crime Unit.
The PEP combines cutting-edge sustainable energy technology with training for young adults with special needs. Talisman’s support will fund a geothermal heating system for a planned visitor centre, providing employment and training opportunities for these young adults. PEP aims to be a sustainable gardening project based on organic principles, environmental best practice and the production and use of renewable energy.
Talisman has supported the work of the Highland Foundation for Wildlife for the past four years. In 2007, Talisman supported the Osprey Tracking Program, which records the migratory path of ospreys from Scotland to Central Africa and back, with an aim to better understand this important species.
Government statistics show that 275 wildlife offences were reported in Scotland in 2006 and 2007. As such, Talisman was pleased to support the Grampian Police Environmental Crime Unit’s exhibition trailer, which is used by wildlife crime officers to visit schools, agricultural shows and other events across northeast Scotland. Grampian is the first police force in the UK to have such a dedicated resource in the increasingly high profile area of wildlife crime.
Spill Management
Talisman records and reports spills across its global operations. Spills are reviewed and any trends relating to cause are identified and addressed. In 2007, a number of spill response and prevention activities were completed across Talisman’s operations. In September, Talisman held its annual major spill response exercise at its Nigg oil terminal in the UK. This exercise involved local emergency response agencies and the Cromarty Port Authority and included the first major deployment of new oil spill containment and recovery equipment recently purchased by Talisman for Nigg. The spill response equipment is available to the Cromarty Port Authority along with trained personnel to enhance the regional capability in oil spill preparedness. Oil spill response plans were also developed in support of planned drilling operations, while Talisman’s Walk the Line campaign was implemented to improve the Company’s spill performance in 2007.
Managing Produced Water in the North Sea
Management of the produced water generated in the North Sea continued in 2007. While Talisman strives to employ technology to maintain high levels of production from operations, it must also mitigate the potential ecological effects of discharges of produced water. Talisman has already made significant investment in produced water reinjection technology on the Claymore, Clyde and Buchan fields. This has been an important step toward compliance with new regulations, which require a 15% reduction in the amount of oil discharged into the North Sea.
