River Crossings, Erosion Control and Reinstatement

The two 800 km Sakhalin onshore pipelines are among the most complex in the world. They are being laid in temperatures as low as –40 degrees Celsius and across terrain where landslides and avalanches are not uncommon. With the development of both oil and gas resources, separate pipelines are required for the entire length of the route, which crosses more than 1,000 watercourses.

	Of the approximately 1,000 watercourses, 180 are salmon spawning rivers classified as being the most sensitive and of high commercial importance.
	In 2005, the Company revised its River Crossing Strategy (RCS) in close consultation with expert advisers, such as academics from the University of Birmingham. The overall objective of the RCS was to minimise environmental impact. It was approved by the potential lenders to the project in December 2005, ahead of the 2005/2006 winter crossing programme. Sakhalin Energy continued to implement this approach during the 2006/2007 season. In April 2007 all winter river crossings were completed.
	Sakhalin Island is known for its steep mountains, deep valleys and many thousands of watercourses. As a result, soil and silt entering rivers each spring is an annual phenomenon across the island when the heavy winter snows begin to thaw.
	The Company’s activities will potentially increase the amount of sediment entering the rivers, particularly if slopes and crossing areas are unstable and bare, and open to erosion by water. Sakhalin Energy implements best practice land management techniques to preserve salmon spawning grounds, by minimising Right of Way (RoW) related sediment entering the rivers and various actions preventing erosion processes.
	In particular during the 2006-2007 season, the Company continued to monitor and maintain temporary erosion controls across the RoW. In late 2007, a winterisation campaign was carried out on the RoW in order to minimise the potential erosion resulting from the 2008 spring thaw.
	The Spring Prioritisation programme for 2008 addressed post-thaw erosion issues that occurred across the Project. This programme included repairs to temporary erosion control measures, such as silt fences, and also completion of permanent engineered solutions to protect critical watercourses and steep slopes.
	With the pipelines now approaching completion, there will be greater focus on installing permanent reinstatement and erosion control measures in the coming 2008 summer season rather than the temporary erosion works required previously during the construction phase of the Project. This reflects Sakhalin Energy’s ongoing commitment to completing the Remedial Action Plan (RemAP).