Project Compliance

Sakhalin Energy compiled an Environmental Action Plan in 2007 following two 2006 audits by Rozpirorodnazor. The audits identified a number of environmental problems. The Environmental Action Plan has a special focus on river crossings, erosion control and land reinstatement.

	The Russian Federation Minister of Natural Resources and Environmental Protection, Yuri Trutnev, visited the Sakhalin-2 project facilities in September, 2008.
	Minister Trutnev praised the job carried out by Sakhalin Energy to eliminate environmental problems on the Sakhalin-2 project especially during the construction of the Trans-Sakhalin pipeline system, stating that, “The situation has changed in a fundamental way over the past two years. Sakhalin Energy has done a lot of work, with the result that one of most flagrantly non-compliant projects in terms of environmental protection has practically become an exemplary project.”
	Since the implementation of the Environmental Action Plan, Sakhalin Energy has stablised and fully reinstated the banks of a spawning river, installed culverts and completed the technical reinstatement of the pipelines Right of Way (RoW) as well as carried out biological reinstatement.
	Reinstatement work is 80% completed. Hazardous areas have been reinforced and technical precautions have been taken at tectonic fault areas.
	Minister Trutnev says that almost all problems have been eliminated and best practice used in implementing the EAP. “In my view the way the Company has practically completed the plan submitted a year ago and can be rated as ‘excellent’.’’