1974 ENVIRONMENTAL PROrECTION REVIEW AND COORDINATION ACTIVITIES CONTENTS Page I. PERSPECTIVE 1. 2. 3. 4. 5. II. 2. 3. 4. May, 1 1 2 and Regulations and Regulations 3 4 6 Accomplishments and Production (1) Exploration (2) Logistics ( 3) Transportation (4) Marketing ( 5) Esso Chemical (6) Building Products Resources (7) New Energy Development (8) Business Oil Spill Incident Report Major Problems Remaining Plans 7 7 7 8 8 8 8 8 9 9 10 COORDINATION DEPARTMENT ACTIVITIES 1. 2. 3. 4. IV. Global Activities Law of the Sea Conference U.S. Overview (Regula tion , Status) Canada Overview Federal Legislation Provincial Legislation Public Attitude PERFORMANCE AND PROBLEMS OF OPERATING FUNCTIONS 1. III. No . Environmental Quality Committee Summary Service to Executive and Departments Technical Effort, Expenditures, and Budget Industry Activities CPA and APOA PACE SUMMARY 1975 12 13 14 14 15 18 - 1974 1 - ENVIRONMENTAL PRCYrECTION REVIEW AND COORDINATION ACTIVITIES SECTION I PERSPECTIVE 1. Global Activities The United Nations Environmental Program (UNEP) priorities remained as stated in our last review. Most of the activities were for planning purposes, expert meetings, intergovernmental conferences and seminars. Maurice Strong completed staffing of the Nairobi headquarters with a full slate of qualified experts. Strong feels the organization is now ready to recorranend concrete action proposals. ~rt UNEP has started to work closely with industry to explore ways to reduce global pollution. The Pulp and Paper Industry were the first singled out for consultations. Indications are that the oil industry,represented by IPIECA,will participate in a seminar with UNEP in early 1976. UNEP's major accomplishment in 1974 was obtaining agreement of the 16 Mediterranean countries to convene and discuss a comprehensive plan to protect the Mediterranean Sea. part of the impetus for such an accord was concern over increased oil pollution as a result of re-opening of the Suez Canal. Malta has proposed a regional centre to cope with massive oil spills. The Global Environmental Monitoring System under Dr. Francesco Sella, a distinguished Italian physicist, is rapidly taking shape. Within a few years, we should have the answers to Scandinavia "acid rains" and "where has all the ozone gone." 2. r,aw of the Sea Conference The Law of the Sea Conference held in Caracas last summer was adjourned after ten weeks without reaching a conclusive agreement on any of the major issues. Imperial made a submission in this regard to the Standing Committee on External Affairs and National Defence. The company strongly encouraged the Canadian Government in its ·stand for coastal state jurisdiction of subsea and subsoil resources to the seaward edge of the continental margin or 200 miles, whichever is greater. In the brief, Imperial also urged Canada to ratify the 1973 IMCO "Convention for the Prevention of Pollution from Ships". - 2 - conference Chart The major are: i ssues of the t o be Territ .rc-..o-a,:, ::.?<::: -:': or i a : Width 2• ,......--~ Right of innocent pa s sage f0r ,.... through "Internationa l Stra i.-::s - · J ~;,-,... ::: ____ ..... _ 3. International Agreements :=0r ,::~-- ~'==-~-·Ye.sE~-s . s~::s-.:::t -... transi tting a 11 seas co7er1._::-.s a::-.".: ;,:. -- ·.::.-:.:. -:::, ::. control standards, liabili-::::; 2::-.-::~:::;-?'== ·· ::::=-:.:.:::.: . provisions 4. Flag State regulations 5. Jurisdiction ~-- ,... vs. of Seabed Re so .ir:css - economic resource zo.e 200 miles, Continental u. s. s~~ 1. 2 3. '":-,, :; -:.:-'= :?- · =or Ccas-.::a: 5-::a-:.ss s·--c-..:::::;-,....'::::-: ; --;. 6. Definition of internationa: ri.s~-::s --:.c =~~i~c-:. a~~ obtain information fro Marine S=~e:::~~=~= ?ssea.:::c: 7. Right of Coastal States (Canada, ~c ~-?)5= stringent pollution contro: s-::a~car~s. -,--o .___,_ - overview . The "Great American Drea 1 :=or c:sa::: a:...::: a::-. '.:: c:..e2.r water,as mandated by congress under tbe c:ear =~=~=-::s= :97 and PL 92-500, the Federal Water Pollutio~ Cc-~rc: ~c~ ~-en~:::lf:nts 1972,is becoming even more illusory. Te:::: cor.sress passec. PL 92-500 the Environmental Protection Age:.. c=.:· es-::.:-::::eG -:.:::.e ccs:: of facilities,to comply with the standard o= ~es-:: ?rac::isab:e technology by 1977 and best availab:e b 1 :953 =c:: 2.:: --~:..c:..pa: sewage treatment discharges at 24 bil::..on dc::a::-s. CJ:::~ress by law was to provide 75"/o of the fundir.s. --=..-::.c:a::-_:::.:.sa-:.:..0:1 of intent of the law by EPA and the courts, ~~is es~;-a-:.e ~as grown to 350 billion dollars. - ~: sectors Despite this dilemma in the p b~:..c sec~~=. American industry have made great strides tcwa::1 2.c:-.ie··ing their objectives. We could cynically s arize -:.::e s.:.::··aticm, saying that in 1977 many American strea c: ·,..·.:.:: s::::._:._ .:>e fu4,o_ of of faeces, Chart __ 3__ but s In from convert relaxations standards as again improv point where There appears high enough catalyst. l l I L h. ui.r l qi,11 in It r- quipp d v h k l t ut 1m1t iv sh wn 11 · L nq l i lllf, th ir mi conv rl n1 t b 1 wi I I i ,u111 r, to pr lud• d l\} p '" l 'c1111 l 11,,,. ! l <, 1 l ri /Jr-rr- ra.X:!' A thr Ethyl Corporati lh1l ltid 111 ll1 1· 1lr: llh hi.~dl ' ( l. 'l'h1, €-c':was not a signi i iln 1· qlt I ll l pnll u 111 ·11 hl4·. h,.;. ~ J,...k.::: :. . e : in-gasoline phas - u judql1,1 I I Ii I 11 <· Jur"t 11/iI I .r.,0n r. 1 .•e -:;:-. and the full nin - m ml this most u • A new subj c of n 1id ·r, d,!1· ccrnr• -r.n 0 ,jJ l ..n,:; ...-=--:..::'}, 1 ry in p,111 i c· 11l11r: , i . gp /\ • " ranep:;r-: Thin hyp ot h·ii ,ir:qu · ha a·r: 'l.:.:.:. ~-:..::::-.-:.s and the petroleum indu phenomenon" hypoth sis. are transported nol on 1 y transport, atrnosph ri c r 1 sulphuric acid mist nd hy smog--occur. Thus on r qi emissions hundreds of mi 1 " credence, the pres n s r be abandoned inf vour of sources. h o t I Intl l o nq rJJ f1 ancr.;, , and a, r -~S' -:..·-:e: ti o n . \Wh I I hr; con•,ersiGn c= SC2 -:.c r Cttrb011 1 ,in St. Lawrence River on !-.pr i I I',, 1<1/ 1\ r:, Jltt·d jn ma::jor oi 1 spi 11. Containmenl , rirJ r; J 1,;rn ir, ·11,1 : f fuc cd to the romp letc satisfaction of u.s. ,u 1 hr;.rit ·,.,,·,ti h th(.. assistance of Exxon . A total of 3800 B. ,. ;r•,ipr·d from the ship and 3500 B. ererecovered. The coL,t ''>f th'; cl· nup was about $2.2 MM. ]<;'~'1on { learned, were made to Presentations , including Committ~0~. l ~rogram is under way to Region Corporate strengthen the capability in each region to respond to a major incident. ,l t rt Contingency plans are require: of locations which will sums for equipment and on-going indu stry. --: art being developed in a number the expenditure of sizable operations on the part of The total number of reported oil spill incidents decreased in 1974 compared to 1973 from 408 to 384 . The emphasis which has been placed on spill prevention and safety in the Transportation Depart ment, both in-house and with outside carriers, resulted in a substantial reduction in spill incidents in 1974. The impr oved performance of the outside carriers is particularly noteworthy. Despite this reduction in frequency, the volume of oil spilled increased from 9.8 MB in 1973 to 13.2 MB in 1974, Sarnia" incident. Most of the increase excluding the 11 Imperial 100 B) where the occurred in the major spill category (over in frequency. average spill size doubled despite a 35% reduction In examining the causes, tank o v erflows continued to account for a substantial portion of the work err o r incidents. In the equipment failure category, incidents due to corrosion were reduced primarily by the testing and replacement program in the production Department. art 12 3. Major problems Remaining _ Oil spill contingency major marine casualty offshore plan and response capability and (b) well blow-out in the _ Environmental Impact Statements projects; lead time for studies on major expansions for (a) Arctic and new - 10 - Drilling chart 14 Ground fluid water and soi l 'd waste contamination di'sposal from - Development of realistic Federal/Provincial/Industry in leaking refinery Task the underground emission Force - Optimization of designs for pollution hardware, e.g. sour water strippers, Arctic control bio-plant tanks guidelines by proces~es and oily and waste sludges - Reducing in-plant - Responding initiatives Government well-funded and noise between agencies; in obtaining in keeping - Maintaining the necessary in competition with other Federal agencies and between most acute in the Arctic multiplicity abreast of of environmental permit requirements permits priority on environmental matters compelling issues and challenges - Concern for the health effects of catalytic converters will require of gasoline. 4. levels to government requests for information and for increasingly stringent discharge controls. agencies (particularly Federal) are well-staffed, and becoming increasingly knowledgeable - Jurisdictional disputes Federal and Provincial Time delays and difficulty fence-line sulphate low-level emission from desulphurization Plans In keeping with our environmental policy, a great deal of effort will continue to be required in working with governments to ensure regulations are needed and achievable. Governments generally have shown a strong preference to work with industry associations and our industry has gained their respect by its positive and constructive attitude and accomplishments. It is crucial, therefore, that we continue to contribute our share to these activities. The implementation of projects to meet obvious deficiencies and meet regulations will continue in all aspects of our operations. Recognition of environmental implications and requirements has become much more commonplace in the hart operating functions end is incoming ?ll-accepted a part of any ten eke-pies will be cited of the many way! 0 the job. Ii in which we plea to cope with the outetending iceues. l. I I I I Develop expertise in formulating the require- cents for end ptepering Environmental develop-eat end epplicetion 0: new technology for mission control. incident prevention. mete treetnent and noise control continue phoned program to upgrade facility standards and operetion procedures agency plants) and reduce or eliminate waste production at Source water reuse) Develop Specific programs leek-testing W8. Minimum. end frequency for under- ground tanks. -..' COOPI)Il A'l !OlJ 1. vE~l-.V:V.?:t. ':' , ,. # f,·· Environmental The Environmental Qi):::: ..":/ S'.,"'.."'. ":,,......(;<:. "<;' . 1974. rn mid year, at th<: tr~<;'--~.:-, ,...,~ '>[,.; ':f;" :,1t':;:', examined its functions and pr0c~~,?~~. ~-~:~ .~~ , "'" ;.... ' sensus that agenda and preaent~t. '.,:.~ · ,f';~,.:. ':£;";--:. "; but that bi-monthly meetings ,:-::,,"',; ·: , •,:; .. :..,1.:;,::,/,"' , .. -' ives. A summary of the r1or:<:: ::•r.r.:;r ,:;:-: ~-:~ --:: ,;. '~', .. . <·~ ,;"~ actions taken were: ( 1) Guide lines were finally a:r;:,pr0·1~", '.:'.;~ -::·'.<; contaminated oil problems, it.c2. .<.::.r::: :::: ~....-:,~ ..-:.--:: waste lubricating oils. their draft Air Pollut iorj R~g--v:.~.."":-~;:E. M,,,~ z ~: ~,:,~~':.':. ~"<: regulations, if promulgatec. a.a. p.::::,:..;:,"'>Z'='~, ,.-:,:,:-:: ,. ,-: - -'"= industry hundreds of millior.a 0!: -:0::...~rz ::-:.r ~<::;;'f'l :=·'=·· deaulphurization facilitigs. Chart 16 (3) =-:.~ The need for an Oil Industry Co~t:r:~~~~7 ~:;;~ ~-~~ ~~ ~ Inlet to replace the Y<=!.ry expe:1s:..:..-,s ;_;r-:;:-£.z~:. Z.:., : :::-:::.::,F:-r~": Canada was recognized. B.C. re-;ie,-.a_ -:.-:.;;-;'?· -:-.-:::s w~::":: encouraged to de,relop the pla •. ar.c .rs~;'=:E": ~:--;z !:":-~ implementation. '~= = (4) An extenaiV'e reV'iew ·was ade of -c·.... ::: ....··:;r-:r:..a:. :S;;::::._-c:" z':. __ :_ and the le asona learned fror.; thi .a: i-:-.-:i-! s:::::. :- ·.<:: -:-:~ _":":'::'= ~,i:::..~--,..~~ recommended this experience be tra~s-~":~e~ -:~ ~:.:. -::::. -,,,•·-· (5) Eaao Chemical and the Med ic al Depar<:-""-.": X 19n 0.41 UNITS: GRAMS PER MILE 9.0 1.5 1974 LEGISLATIVE AND REGULATORY 1. ENVIRONMENTAL FEDERAL CONTAMINANTS 2. OCEAN CONTROL 3. NEW BRUNSWICK WATER QUALITY REGULATIONS FOR DISCHARGES 4. QUEBEC - VERY 5. ONTARIO GUIDELINES WATER EFFLUENTS 6. PERMIT SYSTEM FOR S S DISCH RGE INDUSTR1AL 7. ALBERTA REGU DEVEL. & RECLA 8. DUMPING DRAFT AIR COSTLY B.C. OBSTINATE REGU ATIO S ATIO 1 ACT ACT - POLLUTION S F TC - FEDERAL REGULATION FOR REFINERY ATl 'O E ACTIONS E ' ASTE CANADIAN PUBLIC ATTITUDE TO POLLUTION 1974/75 1970 (%) 1975 (%) 91 93 HAVE HEARD OR READ ABOUT POLLUTION Fairly Very Fairly 69 27 56 37 Yes No --Yes 61 35 57 Very HOW SERIOUS THINK IT IS DO YOU No - "- --- IS POLLUTION A PROBLEM IN YOUR AREA 40 U.S. PUBLIC ATTITUDE l974 /7h TO POLLUTI 1973 (0 o) SomeVery what Serious Serious Very Serious enou HOW SERIOUS IS WATER POLLUTION IN U.S. PUBLIC 40 1 27 CONGRESS 5 35 46 39 44 42 HOW SERIOUS IS Al R POLLUTION IN U.S. PUBLIC CONGRESS 34 30 ACCOMPLISHMENT 1. EXPLORATION AND PRODUCTION ENVIRONMENTAL BASELINE ASSESSMENT STUDIES AND DEL TA GAS SYSTEM BEAUFORT SEA ARCTIC ISLAND CONSTRUCTION 2. LOGISTICS WASTE WATER TREATMENT AND MONTREAL 3. TRANSPORTATION WATER POLLUTION PLANTS 4. DARTMOUTH PROTECTION AT MARKETING UPGRADED 39 CONSUMER PLANTS 10 ACCOMPLISHMENTS 5. {CO ESSO CHEMICAL PROGRAM TO REDUCE VCM I -PLA T A EMISSIONS; AND RES.fDUAL IN RES! 6. BUI LOI NG PRODUCTS SATURATOR AIR FILTRATION EQUJPME DESIGNED OR UNDER CONSTRUCTIO 7. NEW ENERGY RESOURCES INITIATED WATER COLD LAKE 8. BUSINESS REUSE STUDY FOR DEVELOPMENT BASELINE ENVIRONMENTAL STUDY GAYS RI VER LEAD/ZINC PROJECT FOR T PERI L R 1. CONTAJ ENT ND RECO ER IMPERIAL. . . . . . MOT ........ . USCG . . . . . . . . . . . . . . . . . . 2. SHORE CLEAN-UP EXXON .......................... I . 3. THI RD PARTY CLAIMS....................... . 4. FINE - USCG ............................. . 5. SHIP REPAIR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. BJOLOGICALASSESSMENT................... 7. ADJUSTOR'SFEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 ~ . 5 . 2,243.5 CENTRAL COMMAND * ON-SCENE COMMANDER GVTAGENCY LIAISON COMPTROLLER PUBLIC AFFAIRS * LEGAL CLAIMS WILDLIFE CLEANUP ADV ADVISOR ADVISORECOL'.Y COMMANDER * SPILL SOURCE CLAIMS SUPPORT SECURITY SUPERVISOR MANAGER OBSERVER ADJUSTER Al~ RNATiREOUIRLD FOR ''1 IIOl/R GOV, RAG/ NUMBER OFREPORTED OILSPILLS 1974- BY FUNCTION - 212** 200 **190 - -184 u, __. 150 __J 137 * 124 ci: u, - __J c3 u.. C) a:: LU 100 * 76 a:, ::E ::::> - :z 50 11 22 - ~ 0 '73 '74 '73 '74 1 73 '74 •73 '74 PRODUCTION LOGISTICSTRANSPORTATION MARKET !G **OIL £. ATER SPILL S *OUTS IDECARR IERS NUMBER OFREPORTED OfL SPILLS 1974 - BY CAUSES 245 250 211 200 163 u:> -J .....I Ct.. V) __, ,_ ~ 150 '" = 133 0 LL c:::> 0::: LJ.J ex:, 100 ::E 78* :::> 2: 59* 50 51** 33** 0 1 73 •74 WORK ERROR * TANK OVERFLOW •73 '74 EQUIPMENT FAILURE **CORR OS fON MAJOR PROBLEMS REMAI 01 L SPILL CONTINGENCY RESPONSE CAPABILITY (A) (B) I G PLA A MAJOR MARI E CASUAL ARCTIC WELL BLOW-OUT ENVIRONMENTAL LEAD RESPONDING IMPACT TIME STATEME FOR ST DIES TO GOVERNMENTS INFORMATION FURTHER CONTROLS INTER AND INTRA JURISDICTIONAL GOVERNMENT DISPUTES D Y TS MAJOR PROBLEMS REMAINING DRILLING FLUID AND SOLID (CONT'D) WASTE GROUNDWATER CONTAMINATION LEAKING UNDERGROUND TANKS REALISTIC REFINERY EMISSION OPTIMIZATION OF POLLUTION PROCESSES AND HARDWARE REDUCING LEVELS IN-PLANT AND DISPOSAL FROM GUIDELINES CONTROL FENCE-LINE NOISE MULTIPLICITY OF PERMITS - TIME DELAYS - AWARENESS OF REQUf RE!\t1ENTS MAINTAINING THE NECESSAR DESULPHURIZATION REDU ULPH T F ~JI PR! I RiT PLANS 1. DEVELOP EXPERTISE IN ENVIRONMENTAL JMPACT ASSESS.ME NT. 2. SUPPORT DEVELOPMENT AND APPLICATION OF NEW TECH OLGGY. 3. CONTINUE PROGRAMS TO UPGRADE FACILITY STANDARD 'S AND OPERATING PROCEDURES. 4. DEVELOP - PLANNED SPECIFIC PROGRAMS UNDERGROUND TANK LEA -K TESTING PROCEDURES, EQUIPMENT AND FREQUENCY NVIRONM N A ACTIVITI QUALITY COMMITT AND R PO 1. CORPORAT GUID LIN S OH WAS PRODUCED Ott HA 2. ENDORS D PACE OVERVIEW BRI F R 3. ENCOURAGEDBURRARD INLET OJ, PLAN I lb QUEBECAIR R P r ( 4. REVIEWED ACTIONS TAKEN, LESSONSLEAR ED, SARNIA SPILL PERAL 5. POTENTIAL OF VINYL CHLORIDE TO KILL LEARNED - APPROPRIATEACTION BY ESSOCHEM & MEDICAL TAKEN · 6. REVIEWED NEW POTENTIAL HEALTH SCARE - SULPHURIC ACID MIST EX CATALYTIC CONVERTERS 7. OIL SPILL PREVENTION, INCIDENTS AND ORGANIZATION REVIEWED 8. BEAUFORTSEA ENVIRONMENTAL PROGRAM EXPLAINED E ~ E _ ENVIRONMENTAL MANPOWER SUMMARY (MAN YEARS) 1972 LOGISTICS ........... 1974 1973 Full Part Full Part Full Part Time Time Time Time Time Time 12 20 11 21 16 36* 18 EXPLOR./PROD'N ..... 2 14 3 18 3 ESSO CHEMICAL ..... 2 8 2 8 4 4.5 2· 4 1 4.5 0 3.5 1 2 3 4 3 11.5 TRANSPORTATION MARKETING ......... BUILDING PRODUCTS ......... ... NEW ENERGY RESOURCES ......... REGION O.S. COORD .............. E.P. DEPARTMENT RESEARCH ... 2 1.5 0.1 0.1 1 5 6 5 3 3 3 ......... 49.5 27 TOTAL 1.4 76.5 1 0.5 1 1 30 58.1 35 77 88.1 112 *DOESNOT INCLUDEOPERATING MANPOWER (I.E. LAB, PROCESS, MECHANICAL) ESTIMATEDTO BE 28 MAN-YEARS . DOESNOT INCLUDE14 MAN-YEARS BY ENGINEERING CONSULTANTS . I-' ....J BUDGET EXPENDITURES- $MM 1974 1975 1976 1977 1978 22.2 19,0 21.9 25.6 41.7 EXPLORATl ON/ PRODUCTION 7.3 4.0 5.0 6.0 5.5 ESSOCHEMICAL 2.0 5.9 6.9 6.3 2.5 MARKETING 4.2 1.8 3.6 3.8 4.0 TRANSPORTATION 3.6 1.2 0.7 0.5 0.5 0.1 0.2 LOGISTICS BUSINESSDEVELOP. 39.3 31.9 38.2 42.4 54.2 NEW ENERGY RESOURCES SYNCRUDE 5.9 22.2 25.0 25.0 13.2 0.2 0.5 54.3 63.7 67.4 7.4 COLD LAKE TOTAL 45.2 PACE ORGANIZATrO , BOARD OF DI RECTO Rs' EE CES COMMITTEES OIL SPILL CONTINGENCY PLANNING BULK PLA. T STANDARDS WATER LEAD-IN-GASOLJ REGULATIONS AIR QUALITY QUALITY E RESEARCH AND DEVELOPMENT BOOM COMMERCIALIZATION MARINE MARINE PLAN PUBLIC RELATIONS WASTE OIL LEGAL CONTINGENCY PACE 1. OIL INDUSTRY CONTINGENCYPLANS NATIONAL COORDI ATI G COMMITTEE - INDUSTRY RESPONSECAPABILITY AT 147 LOCAno S - VIDEOTAPE TRAINING AIDS 2. PACE OIL SPILL BOOM - COMMERCIALLYAVAILABLE 3. AIR QUALITY COMMITTEE - GOVT./INDUSTRYTASK FORCE 0 REFINERY EMISSIONS 4. MARINE COMMITTEE - CODE OF PRACTICE FOR OIL TRANSFER 5. RESEARCHCOMMITTEE - 1974 BUDGET OF S128,000 FOR 9 PROJECTS 6. WASTE 01L COMMITTEE - CODESOF PRACTICE FOR COLLECTION AND DISPOSAL 7. WATER QUALITY COMMITTEE- FIVE REGlONAL TWO-DAY INDUSTRY SEMINARS - NEGOTIATIONS/BRIEFS WITH ONTARIO ALBERTA, QUEBEC, AND NEW BRUNSWICK I COST OF ENVIRONMENTAL ASSOCIATIONS(1974) Name Total Budget 1.0.L. Share $1,014,000 $350,000 CAGSL 3~088,000 125,000 BEAUFORT E.P. 4,100,000 410,000 LAVAL (Montreal) 188,000 28,500 LAMBTON (Sarnia) 195,000 36,400 PACE 273,000 64,300 TOTAL $8,858,000 $1,014,200 1973 TOTAL $5,783,500 $ 438,500 APOA ...., t-'