SDAG held a scoping meeting with public on August 26, 2010 in Teriberka, Murmansk Region on basic ESHIA (Project Environmental, Social and Health Impact Assessment) issues. ESHIA is carried out in compliance with environmental and social requirements of international finance institutions (International Finance Corporation, World Bank and EBRD), and international ecological legislation.

The main subject of the meeting was the discussion of the draft technical assignment to carry out ESHIA (rev.A-01) and draft interaction plan with stakeholders. Representatives of non-commercial public and ecological organizations, Ministry of Natural Resources of Murmansk Region, Heads of Administrations of Kola District and Teriberka, heads of key enterprises and social institutions, as well as the residents attended the meeting.

Results of unique by scope offshore, onshore and coastal 2007-2009 surveys of the project became the basis of the draft technical assignment to carry out ESHIA.

Drafts of both documents were available in August in public liaison offices in Moscow, Murmansk and Teriberka, where anyone could get acquainted with both drafts, and write comments in the Register of questions, comments and proposals. The electronic versions of draft documents were also available on www.shtokman.ru.

All comments made at the meeting of August 26, as well as those received from public liaison offices were processed and filed, and sent to appropriate SDAG units to be used to work out the final ESHIA report.

Following the results of the meeting the attendees approved the draft of the Technical Assignment for ESHIA, (rev. А-01) and draft of the Interaction plan (with Stakeholders) with due account to received comments and proposals.

Note: At the same time in compliance with Russian standards SDAG executes the Environmental Impact Assessment (OVOS). Both parallel works to assess the Company’s activity impact carried out in compliance with Russian and international standards will assure full scale assessment of potential project risks, and develop measures to mitigate or eliminate such risks.

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