Environmental Impact Assessment in

the Oil and Gas Industry

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17 May 2023
Prof Mark Irvine

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By Way of Background
• ERM is a provider of environmental, health, safety, risk, social
and sustainability consulting services.
• Founded in 1971 we now have more than 7500 people in 42
countries and territories working out of more than 160 offices.

• Completed projects
in > 160 countries.

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What is an Environmental Impact Assessment ?

• Environmental Impact Assessment (EIA) is a process of

predicting and evaluating the likely significant environmental
impacts of a proposed project.
• It takes into account inter-related environmental, socio-
economic, cultural and human-health impacts, both beneficial
and adverse.
• The process includes the development of measures designed
to eliminate or mitigate potential adverse impacts and to
introduce or enhance benefits.
• The output of the process is an Environmental Statement (ES)
or EIA Report.
• It is a key process in project and regulatory decision making.

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 EIA – 3 Simple Questions
1. What is likely to happen (impact)?
[To the physical, chemical, biological, cultural,
health and social environment as a
consequence of the project.]
2. Is it important (significance)?
[For legal compliance, to decision makers,
stakeholders.]
3. What can we do about it (alternatives
/mitigation)?
[Through design, location, timing, approach,
management.]

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Why is an EIA Needed?

An EIA is the foundation for effective management of

environmental and social performance throughout a
project’s lifetime.
• Can be a legal requirement for approvals and
permitting.
• Voluntary Company requirement: Good Industry
Practice.
• Needed for access to finance eg World Bank,
Financial Institutions.

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Evolution of EIA
1969. US National Environmental Policy Act to assess the impacts of a
project before a decision could be made as to whether it should proceed.
1975. First proposal for EU Directive.
1985. EIA Directive (85/337/EEC) applies to a wide range of public and
private projects (Annex I: mandatory and II: depends on screening).
1997-2017. 6 Amendments.
1999. National Regulations eg Offshore Petroleum Production and
Pipelines (Assessment of Environmental Effects) Regulations 1999 (as
amended 2007, 2010, 2017). UK Offshore EIA Guidance 2018 Revision 4.
2020. UK EU Exit. Transition legislation.

Amendments to address:
• Integration of social, health, climate change, risk and other impacts.
• Focus on sustainable development principles, biodiversity.
• Greater consideration of transboundary and cumulative impacts.
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Overview of EIA Process

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 Typical UK Permitting Process

submission of
methodology,
Screening 1 – 3 months
plans and maps Is an EIA required or not?

-baseline information
-scoping of impacts
-consultation with
EIA Scoping Report 1 – 3 months
authorities and and Consultation
local groups

Scoping Opinion 1 – 2 months

Compile EIA
9 months to 1 year
from start.
EIA Submission Seasonal surveys

Determination 3-9 months

9 months Public Inquiry/ Decision 1 year

Hearing?
12 – 21 months
(without PI)
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 Legislative Review
• Understand local, national and international legislative
requirements.
• Understand minimum requirements/standards for emissions and
discharges.
• Familiar with permitting route, for both EIA and other permits.
• Identify key regulatory authorities and other stakeholders.
• For externally financed projects ensure understanding of relevant
requirements, eg IFC, World Bank Equator Principles.

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In EIA the term ‘environment’ includes
■ flora, fauna, ecosystems (biodiversity)
■ soil, water, air, climate
■ landscape
■ use of land, natural resources and raw materials
■ protected areas and sites of special significance
■ heritage, recreation and amenity assets
■ community human health and safety
■ livelihood, lifestyle and well-being of affected communities

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Overview of EIA Process

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Screening and Scoping - Purpose

Screening
Identifies if an EIA is required to the Project:
■ Regulatory/Administrative requirements
■ Lender and Corporate requirements

Scoping – spatial and temporal

Identifies the activities, area of influence and key potential
impacts to be assessed in the EIA (see scoping matrix).
The scoping process informs the developing design,
alternatives (eg siting, layout and timing with regard to key
sensitive receivers/receptors) and management approaches.

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Example Scoping Matrix
Environmental / Social Sensitivity
Physical Biological Social
No. Project Activity/Source of Potential Impact

Local Economy: Employment/Supply Chain

Plankton, Fish (including sharks and rays)

Coastal Protected Areas/Sensitive Areas

Ambient Air Quality and Climate Change

Interference with Fishing and Navigation

Tourism/ Recreation/Cultural Heritage

Utilities: Fuel, Water, Waste Facilities

Community Health, Safety & Security
Deep Sea Corals/Protected Areas
Seabed Geology and Sediments
Noise: Airborne and Underwater

Increase in Road Traffic

Benthic Communities

Seabirds/Waterfowl
Marine Mammals
Water Quality

Turtles
Light
A Exploratory Drilling Programme
1 Physical presence of MODU, wellhead and riser, exclusion zone
2 MODU and vessel DP/power generation
3 Physical presence of support vessels and helicopters
4 Well testing/seismic profiling
5 Discharges to sea (cuttings, cement)
6 Discharges to sea (sanitary, drainage, cooling water, ballast water)
7 Disposal of solid wastes/return of unused materials
8 Provision of fuel, drill water/potable water
9 Labour, equipment and services supply and onshore transport
B Accidental Event/ Emergency
1 Hydrocarbon Spills (fuel spills, drill fluid spills, well bore blow-out)
2 Emergency event/collision/accident

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The EIA Process: Project and Baseline
Definition

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Project Phases
Upstream Midstream Downstream

Exploration and
Development Production Transportation Processing Decommissioning
Appraisal

• Exploration/Appraisal – project design and decision

making.
• Development – site clearance/preparation,
installing infrastructure/buildings, fitting out,
commissioning.
• Production – start of operations and growth over
time or phases of development.
• Transport - pipeline or tanker.
• Processing - refinery, gas plant.
• Decommissioning – removal, restoration and post-
operation.
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 Project Components
■ Offshore Infrastructure and Associated Onshore LNG development

LNG Tankers and Support

Vessels

Jetty

Onshore Gas Processing

Facility

Offshore Drilling

Sub-sea Infrastructure /
Pipelines

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Area of Influence: Offshore
• Exploration: vessel transit routes and turning
areas, extent of seismic noise effects, drilling
footprints, cuttings distribution, exclusion
zones.
• Installation: tow out routes, noise effects.
Physical footprint of installation vessels,
moorings, facilities (subsea, fixed platforms,
FPSO etc).
• Pipeline routes and shore landings. Exclusion
zones, sediment plumes, protection.
• Operation: extent of impact from produced
water, cuttings, cooling water, exclusion zones
etc.
• Decommissioning as above and including
waste disposal sites.
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 Area of Influence: Onshore/Coastal

• Onshore construction areas, associated

facilities, reclamation areas, reclamation
materials.
• Transport routes to and from site.
• Vehicle movements (disruption to other
activities, displacement of wildlife).
• Areas affected by air emissions, water
discharges, waste disposal, airborne sound.
• Effects on water bodies from changes in
water quality, water flow, sediment
transport.
• Supplies of goods, services and staff.

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 Baseline Definition
Identify and describe the key environmental, socio-economic,
cultural and health conditions in the Area of Influence,
focussing on resources/receptors that may be impacted by the
Project:

• physical processes (eg meteorology, geology, topography,

seabed morphology, oceanography);
• chemical properties;
• biological resources;
• cultural heritage assets;
• socio-economic receptors.

Data gaps and uncertainty must be identified.

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UK Offshore SEA Baseline Data Source
■ UK undertook a series of
SEAs on implications of
future licensing rounds.
■ Forms basis of
environmental descriptions
prepared in support of
applications and
Environmental Statements.

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Habitat Maps

https://marine.gov.scot/sma/assessment/pr
edicted-extent-physical-disturbance-
seafloor

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Social Baseline Data Collection
Gather information on community health, education, demographics,
infrastructure, land use, water resources, livelihoods, employment.

■ Census data, health profiles, Socio-economic data .

■ Questionnaires.
■ Focus group discussions (eg community groups, fishers).
■ Key informant interviews (eg health workers, aid workers).
■ Community mapping (how the community uses local resources).
■ Land use (how land is used through the year and by who).

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Key Stakeholders ?

Government Ministries/Departments (National and Local)

Regulatory Agencies
Local Communities
Affected Businesses
NGOs
Media
Academics
Project Proponent and Shareholders
Workers

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The EIA Process: Impact Assessment

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 Physical Footprint
■ Offshore Infrastructure and Associated Onshore LNG development

LNG Tankers and Support

Vessels

Jetty

Onshore Gas Processing

Facility

Offshore Drilling

Sub-sea Infrastructure /
Pipelines

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Potential Impacts
Example: Field Development - key impacts
Light & visual Effluent discharges

Emissions to Air
Underwater sound
Land Clearance / Habitat
loss

Loss of containment

Waste production

Noise from piling

Small leaks and spills Seabed disturbance / Dredging

Blasting / Bouldering

Seabed disturbance

Loss of well control

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Possible Impacts
Example: Field Development – and some less obvious…
Workforce influx – positive Transportation to site / new Loss of access to coast
employment effects / negative roads and busier roads –
in terms of worker influx, safety issues
Influx & settlement
increase in disease and
cultural tensions
Resettlement & economic
displacement

Goods and services

Cumulative noise impacts

Marine Mammals / Fish Lack of access to cultural
and Turtles – disturbance worship site
may affect migratory
routes, breeding and
spawning areas

Loss of access to fishing

grounds
Changes in Beach profile
as a result of dredging
and modification to
coastal processes
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Sources of Discharges to Sea

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Impacts from Discharges
■ Impact from discharges depend on
physical and chemical properties
(toxicity and persistence).
■ Toxic effects can:
■ Be either acute or chronic.
■ Persistent chemicals:
■ May build up in the environment
■ Can lead to increased exposure levels
for plants and animals
■ Are known to bioaccumulate - food
chain effects
■ May cause illness, reproductive failure
and death

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 Drill Cuttings Dispersion Modelling

Deposition >0.01 mm. Area greater

than 1 mm within 200 m of disposal
site
Plan view >0.01 mg/l 50 m above
seabed

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Sources of Atmospheric Emissions ?

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Impacts from Atmospheric Emissions
■ Air Quality
■ Sulphur dioxide
■ Nitrogen dioxide
■ Particulate matter
■ Carbon monoxide
■ Complex Organics (PAHs, VOCs, benzene, dioxins and furans etc.)
■ Global warming (greenhouse effect) – CO2 / CH4 / VOC emissions from
e.g. power generation, flaring, venting, fugitive emissions and tanker
loading.
■ Acid rain – NOx and SOx emissions from power generation and flaring
and VOC emissions e.g. from fugitive emissions.
■ Ozone depletion – CFC emissions. Halon fire systems.
■ All have standards and guidelines, various time periods depending on
toxicity (hourly, daily, annual), standards not the same in all locations.
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Underwater Noise Modelling
■ Concern about effects of noise on
cetaceans (whales and dolphins) and
seals and to a lesser extent turtles,
fish and invertebrates.
■ Cetaceans use sound to
communicate, echolocation and prey
detection.
■ Range of effects from industrial noise,
including:
■ hearing damage and disturbance;
■ displacement of cetaceans from
feeding or breeding grounds and
migration routes;
■ displacement of prey species;
■ stress.

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Waste Categories
■ Waste generated offshore can be liquid or
solid.
■ Controlled waste is divided into two main
categories.
■ General waste; packaging, wood plastics. Inert or
non-hazardous.
■ Special Waste (or Hazardous Waste) includes
drill cuttings contaminated with oil, batteries,
spent solvent, oily rags and used chemicals.

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Identifying and Assessing Impacts

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Determining Magnitude

‘Size’ or degree of change.

Negligible

Small

Medium

Large

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Magnitude Rating

Change remains within the natural range or range commonly

Negligible
experienced.
Perceptible difference from baseline conditions. Tendency is that impact
Small is local, rare and affects a small proportion of receptors/resources and is
of a short duration.

Clearly evident difference from baseline conditions. Tendency is that

impact affects a substantial area or number of people and/or is of
Medium
medium duration. Frequency may be occasional and impact may be
regional in scale.

Change dominates over baseline conditions. Affects the majority of the

Large area or population in the area of influence and/or persists over many
years. The impact may be experienced over a regional or national area.

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Example
Duration of Frequency of Change
Extent of Effect effect effect relative to Magnitude
presence of the vessel Site Specific Temporary Routine Medium Medium
removal of sediment Site Specific Long term Routine High Medium-Large
fine sediment plume/elevated turbidity above background Sub Regional Temporary Routine Low Medium
20mg/l plume Local Temporary Routine Low Small-Medium
50mg/l plume Local Temporary Routine Medium Medium
100mg/l plume Site Specific Temporary Routine Medium Medium
sand deposition (formation of bedforms) Local Short term Routine Medium Medium
changes to sediment particle size Local Medium term Routine Low Medium
changes to 1 in 100 year wave heights - >5% change Local Long term Rare Medium Small-Medium
changes to 1 in 100 year wave heights - 2-5% change Sub Regional Long term Rare Low Small-Medium
changes to 5% exceedence wave heights >5% change Site Specific Long term Occasional Medium Small-Medium
changes to 5% exceedence wave heights 2-5% change Local Long term Occasional Low Small-Medium
changes to tidal currents - 10-20% change Site Specific Long term Routine Medium Medium
changes to tidal currents 2-10% change Local Long term Routine Low Medium
changes to sediment transport rates - 100-400 kg/m/tide Local Long term Routine Low Medium
changes to sediment transport rates - 400-1000 kg/m/tide Site Specific Long term Routine Medium Medium
underwater noise - strong behavioural response Site Specific Temporary Routine High Medium
underwater noise - mild behavioural response Local Temporary Routine Medium Small-Medium
underwater noise - low likelihood of effects - marine mammals Sub Regional Temporary Routine Low Small-Medium
underwater noise - low likelihood of effects - fish Local Temporary Routine Low Small
loss of access Site Specific Short term Routine High Medium-Large
change to benthic community composition* Local Medium term Intermittant Medium Medium-Large
change to distribution of fish Local Temporary Routine Low Small-Medium
vessel accident - health and safety impacts Regional Long term Rare High Medium-Large
pollution event Regional Medium term Rare High Medium-Large

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Importance/Value/Sensitivity of the Receptor

Importance/value can be described Sensitivity of Receptor:

using the following indicators:
• tolerance to /capacity for change
• legal protection
• adaptability
• local government policy
• recoverability
• international/national
standards/limits Importance/value/sensitivity can be
discussed as low, medium or high.
• stakeholder views
• economic value
• professional judgment of the
experts on the IA team

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Sensitivity/Importance/Vulnerability Criteria
BIODIVERSITY
Sensitivity Definition
Ecological receptors are abundant, common or widely distributed; generally
Low
adaptable to changing environments
Some ecological receptors have low abundance, restricted ranges, are currently
Medium under pressure or are slow to adapt to changing environments. Species are valued
locally/regionally and may be endemic, endangered or protected

Some ecological receptors in the area are rare or endemic, under significant
High pressure and/or highly sensitive to changing environments. Species are valued
nationally/globally and are listed as endangered or protected

SOCIO-ECONOMIC AND HEALTH

Sensitivity Definition
Able to adapt with relative ease and maintain pre-impact livelihoods and health
Low

Able to adapt with some difficulty and maintain pre-impact livelihoods and health but
Medium only with a degree of support

Not be able to adapt to changes and continue to maintain-pre impact livelihoods and
High health

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Evaluating Significance

Sensitivity of Resources/Vulnerability of Receptors

Low Medium High

Negligible Not Significant Not Significant Not Significant

Magnitude of Impact

Small Not Significant Minor Moderate

Medium Minor Moderate Major

Large Moderate Major Major

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Cumulative Impacts
• Oil and gas pipelines and
platforms
• Sub-sea cables
• Aggregate dredging and
disposal sites
• Offshore renewables
sites
• Fishing grounds
• Shipping routes

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 Gulf of Mexico Oil and Gas Industry

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Assessment of Unplanned Events in EIA
Oil Spill example
■ Probability/likelihood needs to be considered
■ Modelling used to predict the fate and transport in the marine
environment and inform ‘impact magnitude’

■ Can be used to predict:

■ Probability of surface and shoreline oiling
■ Surface thickness
■ Degree of shoreline oiling (tonnes)
■ Water column concentrations

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 Fate of Oil in the Marine Environment
■ Large oil spills are headline news
(e.g. Macondo and Exxon Valdez)
but probability is low.
■ Small spills from daily operations
occur and can lead to long term
cumulative effects.
■ Persistence of oil at sea depends on
the oil type e.g. diesel v heavy crude.
■ Effects range from toxicity to physical
impact and can be chronic or acute.
■ Offshore oil spills may impact:
■ offshore marine and bird life
■ offshore fishing industry
■ shoreline impacts are costly to deal
with and can impact tourism,
aquaculture, coastal ecology.
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Fate and Behaviour of Oil at Sea

(Source: ITOPF 2002)

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Assessment of Oil Spills in EIA

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Overview of EIA Process

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Mitigation Measures

Is mitigation required – is the impact significant ?

Look to industry standards and consider the following:

■ Changes to the design of the project and how it will be

constructed/operated.

■ Engineering controls and other physical measures applied (eg use of

effluent treatment equipment or spill prevention technology).

■ Operational plans and procedures (eg notification to other marine

users, navigation safety plans or waste management plans).

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Mitigation Hierarchy
Hierarchy of options for mitigation:
• avoid at source – remove the source of the impact;
• abate at source – reduce the source of the impact;
• abate at the receptor – reduce the impact at the receptor;
• Reinstate/remedy – repair the damage after it has occurred; and/or
• compensate or offset – replace in kind or with a different resource of
equal value. +ve
Net +ve
effect
Net impact (e.g. loss of habitat) and effect

Offset
Effect No net
Residual
loss
Residual Effect on Bio-
Effect on diversity
Residual Bio-
Effect on diversity Reinstate Reinstate
Residual Bio-
Effect on diversity Reduce Reduce Reduce
Potential Bio- Impact on Impact on Impact on
Effect diversity Receptor Receptor
Receptor
on Bio-
diversity Reduce Reduce Reduce Reduce
Impact at Impact at Impact at Impact at
Source Source Source Source

Avoid Avoid Avoid Avoid Avoid

Impact Impact Impact Impact Impact

-ve

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Mitigation Measures
■ A mitigation measure is a commitment to a firm action, not a
recommendation.
■ Key components
■ Objective: What are you trying to achieve?
■ Measure: What measures are required to meet the objective?
■ Resources Required: What resources will be required for this?
■ Costs: what will it cost and has this been budgeted for?
■ Responsibility: Who will be responsible for implementing the measure?
■ Timing: When should this be done/ achieved?
■ Key Performance Indicator: What will you use to monitor performance?

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Mitigation Principles

• Should be focused on the main impacting factors, area of influence, and

resources affected.
• Should be proportionate to the significance of the impact.
• Should be a function of Project phase.
• Should be developed in consultation with the regulatory authority and other
stakeholders.
• Effectiveness should be monitored and mitigation adapted as required,

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 EIA – 3 Simple Questions (plus 1 Difficult Question)

1. What is likely to happen (impact)?

2. Is it important (significance)?

3. What can we do about it (alternatives

/mitigation)?

4. How will we manage it and will it work

(management plans and monitoring)?

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EMP Implementation

Establish
Implementation
Impact Assessment Contractual
Mechanism Company ESHMP
ES with list of generic
and location specific
impact mitigation Develop Contract conditions Contractor’s EMP or bridging
measures Specifications document to EMP, procedures
Commitments Register and work instructions

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Monitoring

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Environmental Monitoring
The regular collection of biological, chemical
or physical data from pre-determined
locations such that environmental changes
can be quantified and evaluated and control
mechanisms tested.
Monitoring is used to:
• Test predictions

• Assess recovery

• Provide assurance

• Develop best practice

• Demonstrate stewardship

• Regulate

Baseline surveys, site monitoring and

reference stations
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 Devising a Monitoring Programme
The following needs to be considered:
• purpose
• parameters which would address the questions being
asked
• intensity (replication) and frequency of sampling (e.g.
consider season)
• sampling design, size of samples
• methodologies to be employed, including data analyses
• interpretation
• trigger levels (i.e. has the threshold for action been
agreed with regulators?)

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 Monitoring Parameters
Physical Chemical Biological

 Salinity  pH  Species abundance and

 Temperature  Redox diversity
 Currents  Dissolved oxygen  Biomass
 Waves  Nutrients  Productivity
 Bathymetry  Particulate/dissolved  Population structure
 Substrate type organic matter  Trophic interactions
 Suspended solids  Suspended solids  Habitat distribution
 Sediment transport  Specific chemicals in water  Rare and endangered
 Erosion/accretion and sediment species/habitats

Socioeconomic factors may also be relevant for some surveys, such as: fishing activity,
other vessel traffic and maritime archaeology.

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Seabed Habitats and Species
 Autonomous Underwater
Vehicles (AUV), Remotely
Operated Vehicles (ROV),
drop down video surveys.
 High definition still
photographs
 Habitat mapping
 Biological sediment
sampling
 Fauna retained in 0.5 mm or
1 mm sieve

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 Seabed Features

Cobble Reef Seagrass - Zostera

Sabellaria Reef (Ross Worm) Lophelia Reef

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Benthic Grabs

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 The soft sediment
benthos

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Sediment conditions – redox potential

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Combination of sampling approaches

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http://www.emodnet-seabedhabitats.eu/default.aspx?page=1840
 Summary
• Monitoring requirements vary from
country to country and depend on
domestic legislation.
• Scope of work is driven by legislation,
industry good practice and stakeholder
concerns.
• Established international methods and
standards exist.
• Monitoring programmes can address
data gaps, test impact hypotheses and
assess recovery.
• Monitoring should be focussed on
specific issues and have clearly
defined objectives.
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