In order to obtain the necessary Federal Government environmental clearance for exploration drilling in the Southern Davis Strait area the primary permit holders of this offshore region have in consultation with the Department of Indian and Northern Affairs undertaken a substantial environmental study program. Since July 1976 this program has involved numerous ship cruises and aircraft flights in the area to gather baseline data at a cost exceeding 3 million dollars. The major threat examined was the impact from the remote possibility of an oil blowout and potential effects of a resulting oil spill. Results of the studies submitted to DIAND early in 1978 indicate that while a significant environmental impact on a few selected species could occur in the worst case, the regional environmental was not highly sensitive to adverse impact from a major oil spill. This combined with available control measures to prevent occurrence of a blowout lead to a request for environmental clearance of drilling programs proposed for 1979 which is currently under evaluation by the government.
Underlying the sub-arctic waters of Davis Strait south and east of Baffin Island is a large untested sedimentary basin which may contain substantial volumes of hydrocarbons (Fig. 1). The need for new sources of hydrocarbons to augment Canada's dwindling energy supplies was presented in a report1 published by the Department of Energy, Mines and Resources in 1976. One of the recommendations resulting from the EMR study was, "To double, at a minimum, exploration and development activity in the frontier regions of Canada over the next three years under acceptable social and environmental conditions."
The Davis Strait region is clearly one of the frontiers that needs to be tested by exploratory drilling for its potential to provide additional petroleum supplies. Industry, for its part, is determined to proceed with the challenge at hand as evident from the relatively high level of frontier exploration activities during the past ten years on the oil and gas exploration permits held in the offshore regions of northern Canada. This paper will discuss environmental assessments relating to exploratory drilling on the oil and gas permits in the Davis Strait region, generally between latitude 61 ° 18' North and Cape Dyer at approximately 66 ° 20' North, all within the jurisdiction of the Department of Indian Affairs and Northern Development. The main industry permit holders in this region are shown in the map of Figure 2.
"An Energy Strategy for Canada; Policies for Self-Reliance"
Along with the national need to get on with exploration activity in the frontiers, as outlined above, the Davis Strait region permit holders also need to proceed with exploration drilling programs to comply with Federal land regulations which accelerate the progression of work obligations on exploration permits. Most of the permits held by industry in the region have matured to the point where annual work obligations can only be satisfied by relatively large expenditures associated with drilling programs. For this reason, coupled with the national need, it is important that exploration drilling approvals be considered without delay.