Mining & Environment Conference. Simon Hughes - Hatfield Consultants October

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1 Mining & Environment Conference Simon Hughes - Hatfield Consultants October

2 Overview Background Project Objectives Sustainable Development Reporting Earth Observation & Information Services Results Assurance Audit Future Conclusions Muskeg River Mine Tank Farm, Alberta

3 Background Funding - European Space Agency Earth Observation Market Development Program Project lead : Hatfield Consultants Business leaders in sustainable development (BLSDs): Shell Canada Ltd. and Albian Sands Energy Inc. Other team members: ACRI-st Dow and Associates Apolloni Virtual Studio PricewaterhouseCoopers Sustainable Asset Management

4 About Hatfield Since 1974, Hatfield has provided expert environmental services to industry and government Our key markets are Canada, Southeast Asia, Africa and South America Head office in Vancouver, B.C., second Canadian office in Fort McMurray, Alberta Joint venture offices in Chile, Indonesia and Thailand 55 professional staff Over 1100 projects completed

5 Project Objectives Primary objective: Deliver EO-based sustainability monitoring services to assist Shell Canada Ltd. & Albian Sands Energy with SD reporting Secondary objectives: Cost-effective information Enhance SD Report Third-party monitoring Independent audit 2006 Shell Canada Sustainable Development Report

6 Corporate Sustainable Development Integration of economic, environmental and social considerations in the decisionmaking process across all business activities Annual reporting Continually measuring performance and improvement

7 Shell Canada SD Principles Generate robust profitability Deliver value to customers Protect the environment Manage resources Respect and safeguard people Benefit communities Work with stakeholders

8 Earth Observation for SD Reporting 3 Services - Muskeg River and Jackpine Mines Mine activity mapping (development/reclamation) Vegetation monitoring Stakeholder communication Provides objective information Covers large areas Cost effective source of information Scientific content allows for analysis

9 Athabasca Oil Sands (North)

10 Muskeg River and Shell Jackpine (2005) Landsat-5 May 30, m resolution Display bands: 5,4,3

11 Muskeg River and Shell Jackpine (2006) SPOT-5 June 14, m resolution Display bands: 4,3,2

12 Muskeg River and Shell Jackpine (2007) SPOT-5 July, m resolution Display bands: 4,3,2

13 Muskeg River and Shell Jackpine (2004) ASAR Oct 13, m resolution Display bands: VH

14 Muskeg River and Shell Jackpine (2006) ASAR Oct 18, m resolution Display bands: VH

15 S1: Mine Activity Simplified mine activity classification used in hydrological modeling

16 S1: Mine Activity Context: Mine Surface Lease Area 8,000 ha 1,313 ha

17 S1: Mine Activity Context: Muskeg River Watershed 145,000ha 1,313 ha

18 S1: Jackpine Mine Activity Other Mine activity 1,313 ha Mine Lease Area 8,000 ha 16.18% Watershed 145,000 ha 1%

19 S2: Jackpine Vegetation Change Other Mine activity

20 S3: Stakeholder Communications

21 Services Summary 3 Services Mine activity mapping Vegetation monitoring Stakeholder communication Information products are simple and repeatable

22 Service Assurance Audit Builds stakeholder trust Not mandatory PricewaterhouseCoopers: Audit File Interviews with technical, management, financial and IT staff Review methods and processes Desk research and expert consultation Assurance received

23 Sustainable Development Report Information products, supporting documentation, graphics and assurance letters provided to Shell Content included in 2006 Shell Canada Sustainable Development Report

24 Outcomes

25 Outcomes (2) Shell Canada SD Report Shell Canada website GLOBE website Oil Sands Review Mining Association of Canada Newsletter Royal Dutch Shell European Space Agency

26 Future Developments Continue to work with oil sands companies on environmental monitoring Monitor reclamation Expand EO-CSD services to other mining and energy companies Application of high-resolution RADAR

27 EO-CSD Project Conclusions Use of Earth Observation not new, but how it was used is novel Successful Earth Observation-based services Assurance Contribute towards Sustainable Development Reporting Environmental and operational management

28 Simon Hughes Hatfield Consultants Bellevue Ave. West Vancouver, BC V7V 1A6

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