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The World Bank Group consists of five closely associated institutions, all owned by member countries that carry ultimate decision-making power. Each institution plays a distinct role in the World Bank Group’s mission to fight poverty and improve living standards for people in the developing world.

 International Bank for Reconstruction and Development (“IBRD”) – The IBRD aims to reduce poverty in middle-income and creditworthy poorer countries by promoting sustainable development through loans, guarantees, risk management products, and analytical and advisory services. Established in 1944 as the original institution of the World Bank Group, IBRD is structured like a cooperative that is owned and operated for the benefit of its 185 member countries. Income generated by IBRD loans over the years has allowed the agency to fund important development activities and ensures the agency’s strong financial position. This enables borrowing in capital markets at low cost. Thus, IBRD is able to offer its clients good borrowing terms;

 International Development Association (“IDA”) – The IDA offers interest-free credits and grants to the world’s poorest countries. This highly concessional financing is vital because these countries have little or no capacity to borrow on market terms. IDA resources and technical assistance support country-led poverty reduction strategies in key areas: increased productivity, better governance and accountability, improved private investment climate, and access to education and health care for poor people;

 International Finance Corporation (“IFC”) – The IFC fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC’s vision is that people should have the opportunity to escape poverty and improve their lives. It seeks to reach businesses in regions and countries that have limited access to capital and provides finance in markets deemed too risky by commercial investors. IFC also adds value to the projects it finances through its corporate governance, environmental and social expertise. It is the largest multilateral source of debt and equity financing for private enterprise in developing countries;

 Multilateral Investment Guarantee Agency (“MIGA”) – Concerns about investment environments and perceptions of political risk often inhibit foreign direct investment, a key driver of economic growth in developing countries. The MIGA addresses these concerns by providing political risk insurance (guarantees), offering investor’s protection against noncommercial risks such as expropriation, currency inconvertibility, breach of contract, war and civil disturbance. MIGA

also provides advisory services to help countries attract and retain foreign investment, mediates investment disputes to keep current investments intact and remove potential obstacles to future investment, and disseminates information on investment opportunities to the international business community;

 International Centre for Settlement of Investment Disputes (“ICSID”) – The ICSID is an institution specifically designed to facilitate the settlement of investment disputes between governments and private foreign investors through conciliation and arbitration. Its aim is to foster an atmosphere of mutual confidence between states and investors in order to promote increased flows of international investment. Recourse to ICSID conciliation and arbitration is entirely voluntary. ICSID also issues publications on dispute settlement and foreign investment law.

The term “World Bank Group” encompasses all five institutions, while the term “World Bank” refers specifically to two of the five, IBRD and IDA.

The IFC fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing capital in the international financial markets, and providing advisory services to businesses and governments. It applies environmental and social standards to all the projects it finances to minimize project-related impacts on the environment and affected communities. In February 2006, the World Bank Group completed a rigorous process of updating its standards, namely:

 IFC Sustainability Framework, which includes the following policies, procedures and standards:

o Policy on Social and Environmental Sustainability – defines IFC’s role and responsibility in supporting project performance in partnership with clients;

o Disclosure Policy – defines IFC’s obligations to disclose information about itself as an institution and its activities;

o Environmental and Social Review Procedure – gives direction to IFC officers in implementing the Polity on Social and Environmental Sustainability and reviewing compliance and implementation by private sector projects;

o Performance Standards – defines clients’ roles and responsibilities for managing their projects and the requirements for receiving and retaining IFC support. The standards include requirements to disclose information; and

 World Bank Group Environmental, Health and Safety (“EHS”) Guidelines – industry sector specific technical guidance informing those parts of the new policy structure related to environmental, health and safety issues (replaces and combines the World Bank Group Pollution Prevention and Abatement Handbook and the IFC EHS Guidelines).

The IFC applies its Performance Standards to manage social and environmental risks and impacts and to enhance development opportunities in its private sector financing in its member countries eligible for financing. Performance Standards may also be applied by other financial institutions electing to apply them to projects in emerging markets. Together, the IFC’s eight Performance Standards establish standards that the client must meet throughout the life of an investment by IFC or other relevant financial institution (the term “client” is used throughout the Performance Standards broadly to refer to the party responsible for implementing and operating the project that is being financed, or the recipient of the financing, depending on the project structure and type of financing).

 Performance Standard 1 – Social and Environmental Assessment and Management System;

 Performance Standard 2 – Labor and Working Conditions;

 Performance Standard 3 – Pollution Prevention and Abatement;

 Performance Standard 4 – Community Health, Safety and Security;

 Performance Standard 5 – Land Acquisition and Involuntary Resettlement;

 Performance Standard 6 – Biodiversity Conservation and Sustainable Natural Resource Management;

 Performance Standard 7 – Indigenous Peoples; and

 Performance Standard 8 – Cultural Heritage.

In meeting the requirements of the IFC Performance Standards, clients must comply with applicable national laws, including those laws implementing host country obligations under international law.

IFC recently completed a fresh revision to its Sustainability Framework:

 April 14, 2011 – IFC posted its revised policies, procedures and standards on its web site;

 May 12, 2011 – These revisions were formally approved by IFC’s Board of Directors; and

 January 1, 2012 – These revisions become effective.

These revisions are summarized below:

 Sustainability Policy

o Strengthens IFC’s commitments to climate change, business and human rights, corporate governance and gender

o Revises and strengthens categorization system

 Greater emphasis on inherent risks and project context

 Categorizes actions by Financial Intermediaries (“FIs”) according to the level of their environmental and social risks

o Strengthens due diligence for FIs

o Clarifies due diligence for Advisory Services

o Strengthens disclosure requirements for extractive industry projects

 Performance Standard 1

o Changes name to “Assessment and Management of Environmental and Social Risks and Impacts”

o Refers to private sector responsibility to respect human rights

o Introduces better applicability to investments other than project finance (non-defined assets concept)

o Requires stakeholder engagement beyond Affected Communities

o Clarifies levels of stakeholder engagement under different circumstances

o Requires development of a formal environment and social policy reflecting principles of the Performance Standards

o Introduces participatory monitoring (when appropriate) as an option during implementation

o Requires period performance reviews by senior management

 Performance Standard 2

o Establishes requirement for comparable terms and conditions for migrant workers compared to non-migrant workers

o Introduces quality requirements for workers’ accommodation

o Requires ongoing monitoring of working conditions for workers under the age of 18 o Requires establishing policies and procedures to manage and monitor compliance of third

parties with Performance Standard 2

o Requires alternatives analysis in case of retrenchment o Requires ongoing monitoring of primary supply chain o Introduces “safety” trigger in primary supply chain

 Performance Standard 3

o Changes name to “Resource Efficiency and Pollution Prevention”

o Introduces a resource efficiency concept for energy, water and core material inputs o Strengthens focus on energy efficiency and greenhouse gas measurement

o Reduces greenhouse gas emissions thresholds for reporting to IFC from 100,000 tons of CO2 to 25,000 tons of CO2 per year

o Requires determination of accountability with regards to historical pollution o Introduces concept of “duty of care” for hazardous waste disposal

 Performance Standard 4

o Considers risks to communities associated with use and/or alteration of natural resources and climate change through an ecosystems approach

 Performance Standard 5

o Extends scope of application to restrictions on land use o Strengthens requirements regarding consultations

o Introduces a requirement for a completion audit under certain circumstances

 Performance Standard 6

o Changes name to “Biodiversity Conservation and Sustainable Management of Living Natural Resources”

o Clarifies definitions of and requirements for various types of habitats o Introduces stronger requirements for biodiversity offsets

o Introduces specific requirements for plantations and natural forests

o Introduces specific requirements for management of renewable natural resources o Strengthens supply chain scope

 Performance Standard 7

o Expands consideration of Indigenous Peoples’ specific circumstances in developing mitigation measures and compensation

o Introduces requirement for land acquisition due diligence with regards to lands subject to traditional ownership or under customary use

o Introduces the concept of Free, Prior and Informed Consent (“FPIC”) under certain circumstances

 Performance Standard 8

o Requires clients to allow access to cultural sites

Although the 2011 revisions are not technically effective until January 1, 2012, Shaw Consultants notes that several of these revisions have already been implemented by IFC staff on an “unwritten rule” basis.

Significantly, the 2011 revisions to IFC’s Sustainability Framework do not preclude the IFC from participating in oil and gas exploration and development, mining and other “extractive” projects. In addition, the IFC’s 2011 revisions discussed above do not affect the EHS Guidelines.

As of April 30, 2007, new versions of the EHS Guidelines are now in use. The EHS Guidelines replace those documents previously published in Part III of the Pollution Prevention and Abatement Handbook and on the IFC website.

The EHS Guidelines are technical reference documents with general and industry-specific examples of

“good international industry practice” as defined in IFC’s Performance Standard 3. They contain performance levels and measures that are generally considered to be achievable in new facilities at reasonable costs by existing technology. When host country regulations differ from the levels and measures presented in the EHS Guidelines, projects are expected to achieve whichever is more stringent.

If less stringent levels or measures are appropriate in view of specific project circumstances, a full and detailed justification for any proposed alternatives is needed as part of the site-specific environmental assessment. This justification should demonstrate that the choice for any alternate performance levels is protective of human health and the environment.

Shaw Consultants identified the following EHS Guidelines which are relevant to the Project:

 Environmental, Health and Safety General Guidelines – contain information on cross-cutting environmental, health and safety issues potentially applicable to all industry sectors. These guidelines should be used together with the relevant industry sector guideline; and

 Environmental, Health and Safety Guidelines for Onshore Oil and Gas Development – include information relevant to seismic exploration; exploratory and production drilling; development and production activities; transportation activities including pipelines; other facilities including pump stations, metering stations, pigging stations, compressor stations and storage facilities;

ancillary and support operations; and decommissioning.