Shell's offshore gear failure could create 'artificial reef'

Shell Canada has a decision to make.

Theoffshore oil and gas company mustdecide whether to retrieve or abandon atwo-kilometre pipe it accidentally dropped off the coast of Nova Scotia, and present its choice to the offshore regulator for approval.

A new report offers the first official third-party overview of what's at stake.

Thereportwasprepared by StantecConsulting Ltd. to compare the environmental effectsof two options for the pipe: leave it or retrieve it.

Information, not recommendations

The report lists the pros and cons of each option.

Retrieving the pipe, known in the industry as a riser, means cutting it into pieces, digging intothe sand beneath each piece, attaching a strap and hauling it to the surface.

The whole process could takeup to six months, the report estimates. It could take an additional month to retrieve a specialized connector, called a "lower marine riser package".

While this option removesthe riser from the ecosystem, there's arisk that cutting it into pieces could release floating debris that would likely be lost at sea.

The alternative is toabandon the riser.

This would leave the sea floor undisturbed, but adds the unpredictable potential of the equipment breakingapart or comingloose over time.

According to the report, one minor benefit to abandoning the riser would be "creating an artificial 'reef effect' in an area otherwise generally devoid of hard substrate."

No decision, no timeline

This report is the first piece of information in what will be alengthy process.

"The eventual fate of the riser remains under review," Kathleen Funke, spokesperson for the Canada-Nova Scotia Offshore Petroleum Board (CNSOPB), saidin an email yesterday.

"A definitive timeline for a decision has not been established," she said.

Environmental impactis just one of many factors that Shell Canada and the board must consider.

They will also assess risks to safety of personnel, and consult with other federal departments who may have shared jurisdiction over this incident.

For example, the Department of Fisheries and Oceans may have specific concerns under the Fisheries Act.

Millions at stake

The other factor for Shell Canada is cost.

The company will have to weigh the lossan expensivepiece of equipmentagainst the cost of hiring a specialized ship and crew to retrieve it. Both pricetags could be in the tens of millions of dollars.

A representative of Shell Canada confirms the company is still assessing its options and considering its next steps.

This incident began in March.

In rough weather,the riser broke free from asurface ship and fell to the bottom.

As it landed, itsnaked back and forth around the well headbut did not cause a leak or any damage to the equipment installed on the ocean floor.

That exploratory well has recently been shut down, with Shell Canada saying it did not find a commercial quantity of oil and gas.

The company will continue with its approved plan of drilling a second exploratory well 120 kilometres from the first one.

Shell Canada's competitor, BP, will begin its offshore exploration process in 2018.