ESIA Takara Geothermal Power Plant Vanuatu by Tim Hewatt

GEODYNAMICS

TAKARA GEOTHERMAL POWER PROJECT Draft Environmental and Social Impact Assessment

September 2014

Table of Contents Executive Summary Chapter 1. Introduction

Chapter 2. Project Approvals and Regulatory Framework

Chapter 3. Project Justification

Chapter 4. Project Description

Chapter 5. Existing Environment

Chapter 6. Impact Assessment – Exploration and Production Drilling

Chapter 7. Impact Assessment – Geothermal Plant Construction and Operation

Chapter 8. Environmental and Social Management and Monitoring Plan

Chapter 9. Conclusions and Recommendations

Chapter 10. References

Appendix A. ESI Terms of Reference

Appendix B. ESIA Equator Principles

Appendix C. ESIA Risk Register

Technical Report – Soils and Land Capability

Technical Report – Surface and Ground Water

Technical Report – Air Quality and Greenhouse Gas Emissions

Technical Report – Noise

Technical Report – Landscape and Visual Amenity

Technical Report – Terrestrial Ecology

Technical Report – Marine Ecology

Technical Report – Social and Cultural Heritage

Technical Report – Stakeholder and Community Consultation

Executive Summary

Table of Contents EXECUTIVE SUMMARY

Introduction Project Overview Project Proponent

1 1 1

Project Approvals and Regulatory Framework Environmental and Social Impact Assessment Scope Environmental and Social Impact Assessment Process

1 2 2

Project Justification

Project Description

Environmental and Social Impact Assessment

Soils and Land Capability

Surface and Groundwater

Air Quality

Greenhouse Gas Emissions

Noise

Landscape and Visual Amenity

Terrestrial and Aquatic Ecology

Marine Ecology

Social and Cultural

Stakeholder Consultation

Conclusions

Commitments

Recommendations

Project Benefits

Environmental and Social Impact Assessment - Executive Summary

EXECUTIVE SUMMARY Introduction Project Overview The Takara Geothermal Power Project (the Project) is proposed for a site located near the village of Takara, in the north-east of the island of Efate in the Republic of Vanuatu. Takara is located approximately 25 kilometres north-east along the Efate Ring Road from the capital of Port Vila. Geodynamics Limited (Geodynamics) proposes to undertake exploration drilling to confirm the size and nature of the geothermal resource, and enable further scoping of a possible geothermal power generation Project in the future. If the geothermal resource is favourable, then Geodynamics may proceed to production drilling and the construction of a geothermal plant, steamfield and associated infrastructure. Electricity generated by the Project could be used to displace a component of the island’s current diesel-based electricity generation. In January 2013 the Vanuatu government issued KUTh Energy with a 30 year exclusive Production Licence to develop geothermal electricity in the north of the island in locations identified by the company during the surface exploration phase of the Project. In January 2014, KUTh Energy was acquired by Australian company Geodynamics. Geodynamics have subsequently pursued the prospect of developing the geothermal resource at Takara, Efate. In regard to the scale of exploration drilling, the number of potentially affected sites discussed in this assessment represents a maximum case. Geodynamics may well develop an exploration plan that involves only some of the indicated sites, and so the Environmental and Social Impact Assessment (ESIA) should be viewed as being conservative in terms of the scale of impacts arising from the Project. Project Proponent The Project proponent is Geodynamics, a public company limited by shares, incorporated and domiciled in Australia. Geodynamics is an advanced geothermal exploration and development company which listed on the Australian Securities Exchange in September 2002. Geodynamics holds geothermal exploration licences over highly prospective areas in South Australia, Vanuatu and Solomon Islands. Geodynamics is Australia’s premier geothermal exploration and development company and a world leader in the emerging field of Enhanced Geothermal Systems (EGS), achieving a major milestone in 2013 with the successful demonstration of the 1 MWe Habanero Pilot Plant near Innamincka, South Australia – one of only four operating EGS plants globally.

Project Approvals and Regulatory Framework The principal Vanuatu legislation applicable includes the Geothermal Energy Act 1987 (GE Act), governing the prospecting and production of a geothermal resource. The Environmental Protection and Conservation Act 2002 (EPC Act) is the primary environmental approvals legislation administered by the Department of Environmental Protection and Conservation (DEPC). The Physical Planning Act (PP Act), covering local government requirements for Provincial Councils, is administered by the Shefa Provincial Council. Geodynamics has a current Production Licence for the development of geothermal electricity in the north of Efate, focussed in Takara, issued under the GE Act. This ESIA has been produced in support of a development application under Part 3 of the EPC Act, and prepared in accordance with Section 8(1) of the Act. The purpose of this ESIA is to provide the information required to enable government agencies and decision makers to consider the merits and implications of proceeding with the Project. It also serves to inform the local community, other stakeholders and the wider public about the Project. Environmental and Social Impact Assessment - Executive Summary 1

Environmental and Social Impact Assessment Scope The goal of this ESIA is to seek approval under the EPC Act, while addressing all phases of the Project in compliance with the intent of the Final Terms of Reference (ToR), produced by the DEPC. This ESIA has been completed to comply with the Project approval process as stated in the Environmental Management and Conservation Act 2002, and the Terms of Reference produced pursuant to the Environmental Impact Assessment Regulations 2011. This ESIA has been conducted in accordance with the Equator Principles (The Equator Principles Association, 2013). The Equator Principles are a set of values that have been adopted by the Equator Principle Financial Institutions (EPFI) including many private banks and lending institutions. The projects that they finance are developed in a manner to ensure sound environmental and social standards. The ESIA includes a table comparing the Equator Principles with relevant ESIA sections. Environmental and Social Impact Assessment Process The ESIA process that has been conducted is described in the Figure below. The first stage of the ESIA involved a team of technical specialists conducting baseline field studies at Takara within a designated study area for the planned drilling, construction and plant operation site. This included stakeholder and community consultation occurring with local villages prior to the studies commencing.

The second stage of the ESIA involved assessing how impacts from the proposed activities would alter the baseline conditions and determining the level of potential impacts that could occur. The third stage of the ESIA developed mitigation measures to reduce the potential environmental and social risks posed by the Project. This involved conducting an Environmental and Social Risk Workshop to assess each activity that could cause an impact, while assessing the likelihood and consequence of the impact, before and after mitigation controls are applied. The fourth stage of the ESIA developed the Draft ESIA report for review by DEPC, other Government agencies, stakeholders, community and interested public. This includes a four (4) week public consultation period where the ESIA will be available for Government and public review, with submissions on the ESIA due at the end of the four (4) weeks to DEPC. The fifth stage of the ESIA is responding to the public consultation submissions to develop a Final ESIA. This ESIA will include an Environmental and Social Management and Monitoring Plan (ESMMP) with commitments from Geodynamics to implement the ESMMP through the Project. The Director of the DEPC will subsequently review the ESIA in consultation with other agencies and nongovernment organisations as applicable, and make a determination on approval of the Project.

Environmental and Social Impact Assessment - Executive Summary 2

Project Justification Similar to many Pacific Island nations, Vanuatu has relatively expensive electricity generation costs and relatively poor transmission and distribution coverage. Thus cheaper electricity and improved access is a high priority as a stimulus for the nation’s social and economic development. The National Energy Roadmap (NERM) (2013 – 2020) was launched in April 2014 by the Vanuatu Prime Minister stating that it will set the direction and framework for developing Vanuatu’s energy sector. The overall vision of the NERM includes: “To energise Vanuatu’s growth and development through the provision of secure, affordable, widely accessible, high quality, clean energy services for an Educated, Healthy, and Wealthy nation”. The Project strongly aligns with Vanuatu’s development goals in the following areas: 

Expands generation capacity on Efate to facilitate increased access to domestic and business customers;

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Potential for reduction in electricity prices in the energy market from the geothermal least cost electricity generation, with flow on benefits to domestic and business customers;

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Contributes to Vanuatu’s NERM goal of self-sufficiency for energy with a reduction in reliance on imported diesel for power generation;

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The Project is the only viable option to achieve the NERM renewable target of 65% by 2020;

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Reduction in overall greenhouse gas emissions by Vanuatu through the displacement of diesel power generation with a lower carbon footprint geothermal energy generation;

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Provides base load power generation that is renewable energy; and

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Reduces volatility in electricity prices due to offsetting a significant portion of the diesel supply costs.

The investment and development activity associated with the Project will also provide community and economic benefits, including: 

Potential attraction of further investment in Vanuatu with confidence generated by the geothermal Project. The attraction of investment directly to the region as a result of the Project is unlikely in either Efate or Vanuatu. However, there is the potential for indirect investment with developments in Efate due to the confidence shown from an Australian listed company making an investment in Vanuatu. There is also the possible direct attraction of a commercial electricity user investing in Efate with supply from the geothermal plant in the medium to long-term;

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Business opportunities include supply of services for drilling and construction. Local Project benefits in the Takara local area will be limited, as subsistence farming and fishing are the main sources of livelihood. However the small workforce required for the construction of the Project may involve some labour from residents in the local Takara area; and

Environmental and Social Impact Assessment - Executive Summary 3

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Community Benefits Program (CBP) established for community projects. As part of the Project, a CBP will be established to provide funds for community projects in the Takara area. The program may include improvements in areas such as health, education and community infrastructure. This program will aim to facilitate increased employment and training opportunities, as well as increased economic diversification and jobs. Geodynamics has committed to using local businesses to supply the Project where possible.

Project Description The Takara project is expected to be developed in the following phases: 

Exploration drilling and confirmation of the geothermal resource (one (1) to four (4) wells);

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Production drilling of producing and injection wells (two (2) production wells and one (1) injection well) for Stage One;

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Construction of the geothermal plant, steamfield pipelines and associated infrastructure;

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Operation of the geothermal plant, including:

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Stage One development of a net 5 MWe plant to meet base load demand; and

Possible Stage Two development of a second net 5 MWe plant to meet future demand growth and improve load following;

Decommissioning and rehabilitation of the geothermal plant, pipelines and associated infrastructure.

The proposed Project infrastructure is shown in the figure below. At this stage of the Project, prior to the confirmation of the resource following exploration drilling and any detailed engineering design, the specific location of infrastructure is preliminary. The geothermal target zones within the study area are geophysical areas of interest that will be further assessed prior to and following exploration drilling. The target zone areas include Zones A, B, C, D and E, with potential drill pads and flowlines linking these locations to the geothermal plant. The exact locations of the production and injection wells, flowlines and access tracks will not be determined until following the exploration drilling and detailed engineering design. Drilling activities are proposed to take approximately 60 days (exploration) and 180 days (production) for each well. Subject to the outcomes of the exploration drilling and evaluation of the geothermal resource, construction activities are expected to take approximately 24 months. The geothermal power plant is expected to commence operations in 2018.

Environmental and Social Impact Assessment - Executive Summary 4

Project Description at Takara

Environmental and Social Impact Assessment The ESIA process incorporated the field and desktop assessment producing a Technical Report conducted for each discipline, including: 

Soils and land capability;

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Surface and groundwater;

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Air quality and greenhouse gas emissions;

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Noise;

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Landscape and visual amenity;

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Terrestrial ecology;

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Marine ecology;

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Social and cultural heritage; and

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Stakeholder and community consultation.

The ESIA includes an impact assessment for each of these technical disciplines as described below. Environmental and Social Impact Assessment - Executive Summary 5

Soils and Land Capability The Project’s footprint covers approximately 6.53 ha and three major soil trends. On the andesitic basaltic slopes of Quoin Hill the soils are deep heavy clay iron rich soils (Ferrosols). On the older uplifted coral limestone (abandoned airstrip) there is a combination of poorly developed (Rudosols) and marginally developed soils (Tenosols), and on the more recent coral limestone (coastal areas), the soil is a sandy Tensosol. The co-dominant soils are Ferrosols and Rudosols covering 74.9% (72.2 ha) of the Study Area. Of this, Ferrosols cover 44.8% and Rudosols 32.1 %. The most common soil units within the Project disturbance footprint are Ferrosols and Rudosols. The Project area is composed of a range of land capability classes. For the soil units covering the basaltic andesitic flow there are few limitations, with the exception of Soil Unit 1A that has undesirable acidity characteristics. For the soil units covering the older uplifted coral limestone reef, the main limitations are either shallow soil depth or weakly developed B horizons with high coral fragment content. These soils are not high quality agricultural soils and have therefore been assigned a low land capability class. Similarly the main limitation in the more recently uplifted coral reef is also poorly developed soil. A specific land contamination assessment was not conducted as part of the ESIA, but as part of the soils assessment, parameters for soil contamination were measured in a laboratory. These baseline soil contamination tests showed that laboratory detected concentrations of hydrocarbons and persistent organic pollutants in samples collected from selected locations in the Study Area were less than the laboratory’s limit of reporting (LOR). Some metal concentrations, specifically aluminium, iron and manganese were recorded as above the LOR at selected locations in the Study Area. Soil erodibility potential in the Study Area has been assessed as ‘low to moderate’ with erodibility driven by soil texture. The assessment has shown that the soil which may be subject to disturbance has a recommended stripping depth of 0.05 – 0.6 m. All subsoils associated with the andesitic basaltic hillslope are constrained by heavy subsoil clay content and topsoils will require amelioration to reduce the cloddiness. All soils associated with the coral reef limestone sequences were limited by depth to bedrock and presence of abundant coral fragments. The Project’s decommissioning and rehabilitation strategy has been considered and the risk to agricultural soil and land resources by major Project components has been assessed. Land temporarily impacted upon will be returned to pre-development condition. This includes land associated with all assessed components excluding the geothermal power plant. Therefore, there is no change in Land Capability Classes for temporary impacts. Of the 6.53 ha of land that will be impacted upon, 0.76 ha will be returned to a lower Land Capability class than its pre-development condition. This land is associated with the geothermal power plant site. This land capability has very severe limitations and is limited to restricted uses such as grazing, grassland or wildlife cover. Recommendations to minimise impacts on soil and land capability from the exploration, construction and operational phases of the Project have been provided. These include the rehabilitation, decommission and closure planning within the ESMMP.

Surface and Groundwater The Project area observations of the topography, soils, rainfall and hydrology found the following explanation of the interaction of surface waters with the hydrogeology. In the upper catchment in the south of the Project area, on the side of Quoin Hill, rainfall primarily runs off the basaltic hill top as surface flows over the thick, low permeability ferrosol soils associated with the weathered igneous bedrock on the slopes.

Environmental and Social Impact Assessment - Executive Summary 6

To the north of the basalt of Quoin Hill, at lower elevation, is a fringing limestone deposit representing the older of two raised reef deposits of the coastal flat areas of Takara. The upgradient area of these strata is mantled with a layer of eroded clay soils from the upper slopes. Beyond this to the south are thin rudosol soils overlying karstified limestone at shallow depth. Downslope to the north is a further, more recent, raised reef deposit which extends to the coast and comprises reef limestone with intermittent sand and silt strata. Groundwater flow in this area would be downslope from Quoin Hill to the coast, with potentially high flow rates through more permeable layers such as sands and coralline deposits. The majority of rainfall which infiltrates to ground in the Project area is therefore likely to seep into the limestone strata present in the vicinity of the airstrip and land to the north at the base of Quoin Hill. Groundwater was observed to range between approximately 1.9 and 2.7 m below ground level in shallow boreholes at the airstrip. The limestone is estimated to be approximately 30 m deep in this area, with altered basalt rock underlying the limestone. Groundwater is issued at the surface from springs and seepages to the north and east of the study area. Hot springs occur to the north east of the study area around Nasinu. These hot springs occur on the gently sloping land north of the airstrip, where the groundwater table intersects the topographic land surface. The high salinity and chemical composition of the water at the hot springs suggest that the spring discharges may comprise of geothermally altered seawater mixed with fresh water. Water quality monitoring results indicate that groundwater beneath the airstrip is of similar origin with high levels of dissolved salts present near the surface. A large pressure drop in the geothermal reservoir could potentially cause groundwater to be drawn down into the geothermal reservoir along high permeability paths. If the lateral permeability of the shallow groundwater aquifer is low or the aquifer confined in any location, then down flows may result in a significant drop in groundwater level within the shallow groundwater aquifer which could in turn lead to hot spring flows declining or ceasing. The hot springs and wetland areas are located approximately 200 to 400 m north of the Ring Road and greater than 500 m from the expected drill pad locations on the airstrip. Therefore groundwater levels would have to be drawn down over a significant linear distance to lower groundwater levels immediately upstream of the hot springs and wetlands. Based upon the observed shallow well recharge rates, it is expected that the permeability of the shallow limestone aquifer will be high. The high permeability of the limestone aquifer is likely to reduce the area of groundwater drawdown if a localised pressure drop occurs, providing the aquifer is not confined laterally. However, the conceptual development plan envisages full re-injection of produced liquids, which will maintain reservoir pressure and therefore should not lead to significant groundwater level changes. To minimise the risk of impacts to surface and groundwater as a result of the Project, the following mitigation measures are proposed in the ESMMP: ď&#x201A;ˇ

Chemicals and other hazardous substances will be stored in secure stores and fuel and lubricants will be stored in appropriately bunded containers. Spill trays will be used to contain fuel spillages during refuelling and spill kits will be used to minimise any accidental spillage impacts to groundwater. Storage tanks at the well pads to store geothermal brine will be designed to have sufficient storage capacity to store all geothermal fluids produced during the well testing plus an additional industry standard amount of freeboard for rainfall events.

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A reservoir management plan will be developed to ensure monitoring and contingency management measures are implemented throughout production in order to minimise the likelihood of pressure drops.

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A comprehensive groundwater and surface water monitoring program has been incorporated into the ESMMP to provide an early detection and response to any contamination events. This includes groundwater monitoring wells installed at strategic down gradient locations.

Environmental and Social Impact Assessment - Executive Summary 7

Air Quality Emissions associated with the combustion of diesel fuel in the drilling rigs, transport vehicles, construction machinery, electricity generators during exploration and construction, and emergency generators, firewater pumps, and service vehicles during operation have been considered to represent a negligible impact on air quality due to their small scale, relatively short duration and distance from receptors. Emissions identified as having the potential for minor impacts on local air quality are as follows: 

Fugitive dust emissions from construction activities: o

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Hydrogen Sulphide (H2S) emissions during well testing activities: o

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The effects of these activities will be reduced by using good working practices to minimise the generation of dust.

Only nuisance effects associated with increased ambient concentration of H2S are anticipated to be of concern, as health impacts only occur with exposure to very high concentrations, which are not expected to occur as a result of the Project. Impacts from the Project would be temporary and of short duration.

Release of Non-condensable Gases (NCGs) in the event of a well blowout: o

Well blowouts are a rare occurrence and with appropriate well blowout protection and safety monitoring systems (including warning alarms for high emissions of potentially hazardous gases, including H2S) incorporated as part of the drilling setup, it is expected that the risk of impacts to receptors is low.

The proposed use of binary technology for the power plant means that the potential for H2S health impacts and nuisance odour (and impacts from other NCGs) during the operation of the plant is reduced compared to flash plant technology, although some NGCs are still likely to be vented. Modelling of estimated H2S emissions from the operational phase of the Project indicates that the proposed power plant operation is unlikely to cause any odour nuisance or any adverse health impacts at any surrounding sensitive receptor locations. If the results of the exploration phase indicate that there is potential for the operations phase emissions to be higher than estimated in this study, which result in unacceptable impacts, then options exist to address this. These include pressurisation of brine production to keep gasses dissolved, scrubbing of H2S from vent streams, and capture/compression of the gasses for reinjection. These options can significantly affect the economic operation of the power plant and should not be mandated until the scale of the issue is assessed. It is proposed that a ground level concentration of 7 µg/m³ H2S (1-hour average) be used as a guideline for sensitive receptor locations. The table below compares the gaseous emissions for various power plants, showing the proposed Project will produce less Carbon Dioxide than a similar diesel generator and zero to negligible other emissions (based on the assumed fluid composition).

Environmental and Social Impact Assessment - Executive Summary 8

Gaseous Emissions from Various Power Plants Plant Type

CO2 (kg/MWh)

SO2 (kg/MWh)

Coal-fired steam plant

994

4.71

1.955

1.012

Oil-fired steam plant

758

5.44

1.814

N.A.

Gas turbine

550

0.100

1.343

0.0635

705

0.25

27.2

0.159

Diesel generator

NOX (kg/MWh)

14.6

Particulates (kg/MWh)

0.43

Hydrothermal Flash-steam The Geysers dry-stream Pumped closed-loop binary Proposed Takara Project

40.3

0.0001

0 3

0.00046

0 3

Negligible

300

Negligible

It is also noted that there is potential for this Project to result in a reduction in the electricity generation in Port Vila using diesel generators. To assess the potential reduction in air quality impacts at sensitive receptors surrounding the power station, a high level study was performed based on an assumed 5 MW reduction in power generation from the diesel generators. The results indicate that if implementation of the proposed Project is able to reduce electricity generation through diesel power plant at Port Vila by this level, that significant improvements in local ambient air quality levels may be achieved.

Greenhouse Gas Emissions The Greenhouse-gas Emissions (GHG) emissions estimate undertaken for the Project shows that it will not result in significant GHG emissions. Estimated emissions for the exploration drilling, production, drilling and construction phases are estimated to total approx. 16,000 tonnes CO2-e. The use of binary technology as currently proposed, means that during operation GHG emissions from the Stage One 5MWe power plant will be minimal and would not be expected to exceed the EP threshold of 25,000 tonnes CO2-e, for which the IFC standards require reporting. The estimated annual emissions associated with the operational phase are approx. 13,000 tonnes CO2-e, although this estimate is based on a number of assumptions that would need to be confirmed during the exploration phase. As noted above, if it is discovered that there is potential for these emissions to be significantly higher than estimated in this study, then design options exist to address this issue and reduce the GHG’s to acceptable levels. Overall the project will reduce the carbon intensity of electricity generation in Vanuatu and has the potential to reduce GHG emissions from the existing electricity network by approx. 35,000 tonnes CO2/annum (based on Stage 1, i.e. 5 MW). Alternatively, if Vanuatu’s electricity demand grows and emissions from the diesel generators do not decrease, the Project would still meet the increased demand without the additional GHG emissions that would occur if the increased demand was met through additional diesel generators. On this basis, once the Project is operational, the GHG emissions associated with the exploration, production drilling and construction phases could potentially be off-set within six months compared to diesel generation. With minor operational GHG emissions associated with the Project, there would be an ongoing benefit for Vanuatu’s GHG emissions into the future, which would increase if the second stage of 5 MW power generation was completed.

Environmental and Social Impact Assessment - Executive Summary 9

Noise Baseline noise monitoring was conducted to characterise the existing acoustic environment around the proposed Project site. Appropriate noise criteria were developed for the Project in accordance with the IFC and World Health Organisation (WHO) guidelines. Exploration, production, construction and operational phase noise levels were predicted using an acoustic computer model developed for the Project. Noise levels were predicted under calm and prevailing atmospheric conditions. Exploration and production drilling noise modelling has been conducted for all potential drilling options, including drilling at the western end of the airstrip, with the worst case noise levels at each receptor being reported and assessed. Noise modelling has indicated that noise emissions associated with the exploration and production drilling phases of the Project (including site clearing and drilling) are anticipated to be below the Project specific daytime noise criterion of 55 dBA LAeq(1hour) at all of the nearest noise sensitive receptors locations. The results of the night-time exploration drilling indicate a predicted isolated exceedance of the WHO sleep disturbance criterion at the Airstrip receptor location under prevailing wind and calm atmospheric conditions. The predicted marginal exceedance of the night-time sleep disturbance criterion at the airstrip receptor location may potentially result in sleep disturbance effects. The results of the night-time production drilling indicate the WHO sleep disturbance criterion may be exceeded by up to 10 dBA at the Airstrip receptor location under prevailing wind and calm atmospheric conditions. The predicted exceedance of the night-time sleep disturbance criterion at the airstrip receptor location may potentially result in sleep disturbance effects. Minor exceedances of the WHO sleep disturbance criterion (up to 2 dBA) are also predicted at the receptor locations in Nasinu, Maolapa and Safaki. Noise emissions are predicted to be below the receptors’ Project specific noise levels for the construction of the geothermal power plant during the daytime period under prevailing wind and calm atmospheric conditions. Construction activities are planned for daylight hours only. Noise modelling has indicated that operational noise levels associated with the proposed power station will be below the project specific noise criteria at the nearest noise sensitive receptors during the daytime period under calm and prevailing wind atmospheric conditions. Night-time geothermal power station operational noise levels indicate a predicted isolated exceedance of the WHO sleep disturbance criterion at the Airstrip receptor location under calm atmospheric conditions and an isolated exceedance under prevailing (i.e. from the south-east) wind at Safaki. Of the predicted night-time criterion exceedances, it is noted that the predicted 4 dBA exceedances of the night-time sleep disturbance criterion at the Airstrip and Safaki receptor locations may potentially result in sleep disturbance effects. LAmax noise levels associated with well testing and venting during the exploration and production drilling phases of the Project are predicted to be below the relevant sleep disturbance noise goal at all receptors with the exception of the Airstrip residence where a minor 4 dBA exceedance is predicted. While noise levels associated with the Project are generally below the WHO noise limits, recommendations have been made with regard to good international industry practice (GIIP) noise control measures to minimise noise emissions from all phases of the Project. Some recommended noise management strategies areas close to community areas include: 

Planning activities in consultation with local communities so that discretionary activities with the greatest potential to generate noise are planned during periods of the day that will result in least disturbance, where possible.

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Avoiding or minimising project transportation through community areas, particularly during sensitive periods (e.g. night-time).

Environmental and Social Impact Assessment - Executive Summary 10

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Advising community prior to known higher noise events such as well testing, so that the sudden emergence of the noise does not cause alarm.

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If the predicted sleep disturbance noise criterion exceedance is confirmed at the airstrip residence, then it is recommended that consultation with the affected receptor(s) take place to negotiate a mutually acceptable solution, for example, temporary relocation during exploration drilling, or provide upgrades to the affected residence to improve the acoustic insulation. Given the size of the drill rig, it would be difficult to mitigate noise emission levels at the source.

Landscape and Visual Amenity The landscape and visual amenity assessment has documented the baseline landscape environment, identified the potential impacting activities arising from the Project, and analysed the impact that these activities will have on the surrounding aesthetic environment. The impacting activities that will cause the greatest disturbance to visual amenity are the well drilling programs (exploration and production), where drill rigs will be visible to locals and tourists from various vantage points. The 18 m exploration rig will just be seen from the Ring Road, with the production rig more visible with a higher derrick to 50 m. These activities are for a moderate duration with a drilling program potentially over 24 months, with no long term visual impact, as the drill pads will predominately be rehabilitated to the existing land-use. The figure below shows an elevated view (50 metres above sea level (masl)), from Takara Landing access road toward the Project area showing production drilling construction infrastructure and with existing vegetation added. The orange columns are representative of the production drill rig derrick at three potential well pads. Production Drilling view from Takara Landing (elevated at 50 m masl)

Existing vegetation at the western end of the airstrip provides natural shielding of the drilling activities and the geothermal plant site from all vantage points on the Ring Road. This minimises long-term impacts, particularly to tourists travelling along the Ring Road and the community villages on the coast.

Environmental and Social Impact Assessment - Executive Summary 11

Steam will be generated from venting during well testing during drilling activities and the geothermal plant operation. The geothermal plant will have a small continuous flow of steam and noncondensable gases vented to atmosphere from the plant under normal operating conditions. This steam venting will likely be seen above the height of the fin-fan coolers (6 m). The presence of steam being visible in the Takara area will be a permanent but minor change to the landscape for the duration of the Project. The figure below shows an elevated view (50 metres masl), adjacent to Site E toward the Project area showing operation infrastructure with the geothermal plant (yellow) and steam field pipeline (grey). The entire geothermal plant is shown as 6 m in this visualisation; however, in reality only the fin-fan coolers would reach that height. A steam field pipeline is shown buried under the Ring Road and above ground back to the plant and to the wells, although this could change during detailed design. Note that this 50m view would only ever be realised by a light aircraft or similar, as there are no landforms capable of providing this perspective and the local villages and road are at much lower elevations. From ground level the top of the mask (derrick) would be visible from some vantage points in Takara. Plant and Steamfield Pipeline view from Site E to Quoin Hill (elevated at 50 m masl)

If cooling towers were selected as an option for the plant, condensation exhaust as a plume would be generated at a magnitude higher into the atmosphere. This would likely be visible from all Observer locations if the weather conditions were conducive to condensation forming in the air. A number of mitigation measures have been identified in order to minimise disturbance to visual amenity. The most significant and easily implementable of these is to minimise vegetation clearance, thereby maintaining existing natural visual screening. In particular, siting the main access road to the site closer to the Ring Road Corner Village will retain the shielding vegetation surrounding the drill sites, laydown area and proposed geothermal plant site.

Environmental and Social Impact Assessment - Executive Summary 12

Terrestrial and Aquatic Ecology The Project will have short to medium term impacts over a restricted part of the study area. Longer terms impacts will occur where permanent infrastructure is proposed, including the power plant, production wells, access tracks, along steam pipelines and along seawater pipeline (if seawater cooling chosen). The impact assessment presented in this report describes the following key impacts: 

Temporary disturbance to and loss of Secondary Forest on the slopes of Quoin Hill associated with clearing drill pads and access tracks;

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Habitat disturbance and loss and disturbance to life cycle activities for locally occurring fauna, in particular the Vanuatu Megapode, a range of native forest birds (most listed on IUCN Red List), flying foxes, and microchiropteran bats (Figure below shows the fauna habitat types in relation to Project infrastructure);

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Temporary disturbance to and permanent loss of gardens (fruit and vegetable crops, fruit trees and coconut palm plantations), which provide a source of food for the local community, associated with clearing drill pads and access tracks;

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Potential loss of individuals of culturally important plants, such as Gyrocarpus americanus (Canoe Tree, Kenutri);

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Potential disturbance to IUCN Red List plant species, particularly Erythrina variegata var. variegata, which is located near the proposed access track to Zone A and Cycas circinnalis which is located near the proposed seawater pipeline route; and

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Loss of grassland and shrubland on the flat sections of the study area (airstrip), which is of low floral diversity and low fauna habitat value, although small passerine birds utilise the shrub growth.

Most of the impacts on Secondary Forest associated with exploration and production drilling will be reversible and temporary, with drill pads and associated tracks to be rehabilitated at the completion of exploration and parts of other production drill pads to be rehabilitated after the production drilling phase (Note figure doesn’t include the access tracks). Overall these impacts are: 

Moderate to high in intensity, in that the removal of vegetation within the boundary of drill pad sites, the power plant, ancillary structures and access roads, will be complete and transformative within the immediate area;

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Limited in extent, in that drill pad dimensions 60 m by 60 m will be established during exploration, serviced by 4 m wide tracks, with 100 m by 100 m production drill pads to be established during the production drilling phase;

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Short in duration, with most disturbed areas to be rehabilitation after the exploration program, and then progressively after construction; and



Mainly restricted to areas of low biodiversity value, with the bulk of the structures to be built on the disturbed and regenerating grassland and shrubland areas of the airstrip and surrounding lands.

With the implementation of mitigation measures outlined in the ESMMP, impacts on flora and fauna are considered to be ‘moderate’ at the local scale in the short term, and ‘minor’ to negligible’ at a regional scale over the medium to long-term. This is predominately due to rehabilitation of the majority of the drill pad sites, access tracks and laydown area, returning them to ecological habitat in the medium term.

Environmental and Social Impact Assessment - Executive Summary 13

Fauna Habitat Types with Project Infrastructure

Environmental and Social Impact Assessment - Executive Summary 14

Marine Ecology A marine ecology assessment was conducted at Takara Landing as this site was selected as a potential area for the discharge of geothermal brine during drilling activities and seawater cooling discharge during plant operations. Neither of these options are the preferred design for the Project, but they have been assessed at the ESIA stage so that design options can be compared. The marine ecosystem in the investigation area at Takara Landing is in good overall condition. The outer fringing reef habitat displays low incidence of coral bleaching and disease, and the water and sediment analyses returned results indicating low levels of contamination (see Habitat Map figure below). The near shore marine habitats were found to be rich in the diversity of both hard and soft corals. Impacts on the marine environment from the exploration phase of the Project are expected to be negligible, provided that appropriate mitigation and management measures in the ESMMP are implemented. During exploration and production drilling phases produced geothermal fluids will be captured and stored in a lined pit within the drill pad site. The lined pit will be designed to be of sufficient size to capture the total volume of geothermal fluids during each well test, with an industry standard amount of freeboard included for rainfall events. The preferred method of disposal of the geothermal fluids will be to re-inject back into the geothermal reservoir. In the event that the geothermal fluid produced from the well test is not able to be re-injected for technical reasons, it will be discharged to the marine environment under controlled conditions as explained in the ESMMP. A decision on the method of disposal will only be made following testing of the reservoir fluid. To determine the potential dilution of the geothermal brine discharge, a 3-dimensional numerical model of the proposed discharged pipe was developed to help inform design of the discharge point and predict near field impact of the geothermal brine on the marine environment. This model was used to estimate dilution in the worst case scenario where no current, tide or wave action are included. Note that some constituents modelled are not expected to be within the geothermal brine, but have been modelled as a worst case situation. The concentrations for some of the modelled geothermal brine constituents (e.g. Mercury; Ammonia; Sulphate; Fluoride; Aluminium) may be higher or similar to that found in seawater. The dilution factor is not relevant if the concentration is lower than seawater. Results of simulations will be updated following water analysis during drilling stage of the project once more detailed information on the geothermal water quality is provided. The modelling suggests that if the geothermal brine is discharged according to the modelled scenario at a distance of at least 50 m beyond the edge of the reef there will be low impacts to the marine ecology as the dilution of the discharge plume will be at least 100 times within 50 m from the end of the discharge pipe.

Environmental and Social Impact Assessment - Executive Summary 15

Marine Ecology Habitat â&#x20AC;&#x201C; Takara Landing

Seawater cooling has been identified as a possible option for cooling of the geothermal plant during operations. Cool seawater will enter the plant in a closed system by which heat is exchanged via conduction and convection with the power plant working fluid. This cools and condenses the working fluid in preparation for re-cycling through the system. As the cooling and working fluid systems are comprised of isolated closed loops the only transfer to the seawater is heat. This heated water will be released back in to the marine environment at up to 10Â°C above ambient seawater temperature, depending on the results of further studies. This is the most significant risk to the marine environment posed by the proposed activities. Corals live in a thermal environment that is within a few degrees of their upper thermal limit. A prolonged exposure to temperatures above this thermal limit can initiate an irreversible coral bleaching event. Corals are likely to be increasingly susceptible to thermal stress as climate change causes a gradual rise in mean seawater surface temperatures. As the impacts of climate change are realised, the thermal tolerance of corals will be compromised. Therefore the introduction of an additional anthropogenic thermal stressor in to the system (in the form of heated water from the cooling system) may trigger a coral bleaching event if the heated water is not quickly dispersed throughout the water column and away from the coral rich fringing reef. In addition, the infrastructure associated with the seawater cooling system may directly impact on the marine environment. Seawater intakes may entrap organisms into the cooling system. Screens are commonly placed over the inlet to prevent large organisms and debris from being sucking into the cooling system. Organisms affected can range in size from minute plankton, including the eggs and larvae of species that are large as adults, through to larger organisms including fish, crabs and squid depending on the intake design. Because cooling systems operate more or less continuously and take in large volumes of water, species entrapment can potentially affect areas well beyond the immediate vicinity of the intake.

Environmental and Social Impact Assessment - Executive Summary 16

If seawater cooling is selected as the preferred option for the proposed geothermal plant it will be imperative that data is gathered relating to the dispersion of heated water discharge in the water column after release. This will require gathering information on tidal patterns, currents and wave action close to the discharge point. This information should then be used in conjunction with water quality data and climate data to model how heated water will be dispersed in the water column and along the coast after release. Any increases in water temperature as a result of the discharge must be assessed with regard to the potential impacts on coral species that may experience a localised increase in ambient water temperatures as a result of the discharge.

Social and Cultural The social and cultural baseline study involved a participatory approach whereby social structures, characteristics and norms as well as cultural manifestations, beliefs and values were explored through primary and secondary research. International and national commitments and legislation, as well as ‘good practice’ literature and case studies were reviewed. Primary research involved in-depth surveys and interactive consultation was undertaken with Takara residents (43 households and 10 focus groups with between 8 and80 people in attendance), relevant government agencies and related communities on the island of Emao. This provided a ‘snapshot’ of the characteristics of the Takara community. Key aspects include: 

There are four groups claiming the Takara area land namely: Ameara Manupangmanua, Karaf, Ntain Kanas and Ameara Liu. The decision regarding Kastom ownership currently rests with the Lands Tribunal with a decision pending. Two groups: Ameara Manupangmanua and NtainKanais were given joint custodianship of the Takara land in 2012 pending an appeal.



There is a close relationship between the island of Emao (Emau) and the current residents of Takara, with social networks, reciprocal obligations and continual inter-community travel.



The Takara land borders on the neighbouring community of Savak, the boundary of which lies towards the western end of the proposed Project site. This land on the border has been farmed by the Mangroaonga group from Emao since 1912.



A main source of income to the community is through sales of farm crops – the women travel to Port Vila to sell the produce.

Key potential impacts (both negative and positive) from the proposed Project are summarised as follows: 

Property and Kastom Land – future land access and impact on gardens, crops and plantation trees.



Culture and Social dynamics - including disturbance to Kastom norms, features and sites of cultural significance.



Population related impacts through influx of foreign workers to undertake drilling and construction activities for the Project.



Education and Training – limited opportunities for training and employment directly on the Project.



Vulnerable Groups, especially women and youths, may become further marginalised from jobs and benefits as they can be overlooked in the distribution of benefits and job opportunities and their productive development is limited within their traditional roles.



Economy, Employment and Livelihood such as business development opportunities both directly and for indirect service provision opportunities.



Institutional Structures and Governance especially an opportunity to improve interorganisational cooperation.

Environmental and Social Impact Assessment - Executive Summary 17



Community Facilities and Infrastructure - there is the opportunity to improve community infrastructure and visual amenity through community benefit supports.



Health and Wellbeing concerns as the potential for increased economic resources in the community also invite the potential for: increased substance abuse among the youth; nuisance impacts from Project noise; and increased traffic threatening local pedestrians.

The key negative impacts for the Project are likely to be of a temporary nature, lasting over the duration of exploration and construction phases. These mainly relate to: 

The drilling stage may directly affect Kastom land, through the clearing of gardens, crops and plantation trees to create drilling pads and access tracks.



The affected land for exploration drilling will subsequently be rehabilitated for Kastom land and gardens.



Potential for increased tension between different groups or communities due to perceived inequalities in the distribution of project benefits.



Potential nuisance impacts from project – noise, dust/odour and visual amenity.



Increased traffic along coastal Ring Road bringing goods and services to site with potential for increased accidents especially to children.



Vulnerable groups (e.g. women, youth and disabled) may be further marginalised and not have equal access to jobs and benefits.

A range of potential mitigation measures are outlined in the ESMMP to address these issues. The proposed Community Benefits Program (CBP) and the ESMMP are fundamental to addressing these impacts. In particular, the ESMMP will address the need for ongoing information and communication to keep the community informed of Project progress and activities. Keeping the community up-todate and engaged with the Project is vital for aligning with community values and securing long-term community support. In addition, positive opportunities exist to strengthen the knowledge base of the community around issues such as health and safety, substance abuse and wildlife conservation (e.g. the endangered scrub duck) which will be facilitated through the CBP. The Project scale is such that once operational, social and cultural impacts are likely to be minimal. By this time, Geodynamics will have initiated the CBP and a number of positive project benefits will have been realised in the community. Mitigation efforts related to these impacts are heavily reliant upon the effective implementation of the ESMMP as well as the proposed CBP. It must be recognised that mitigation involves a mutual obligation process. Responsibility for mitigation of impacts involves both the community and Geodynamics in order for the community to realise potential benefits and outcomes and minimise negative impacts. This will encourage local ownership of the Project, and enable Geodynamics to meet their social licence to operate obligations.

Environmental and Social Impact Assessment - Executive Summary 18

228000

229000

230000

Beachcomber Resort

8059200

Zone E Ring Road

Takara

Alternative Exploration Site to Zone D !

2. Takara Graveyard

3. Memorial at Marow Village

Takara Landing

Zone A

Baofatu 2 - Old Nakamal, Takara Graveyard

Zone B

8058200 8057200

2. Old Nakamal

1 - Airstrip Geothermal Feature

Zone C

H:\Projects-SLR\630-SrvNTL\620-BNE\620.11005 Proposed Takara Geothermal Project\Figures\ArcGIS\Report Figures\Social\SLR62011005_Social_A3_03.mxd

1. Airstrip Geothermal Feature

Rin g

Zone D

Ro a

3 - Marow Village

LEGEND ! !

Cultural Heritage Feature

Steam Piping Connecting Steam Field Water Supply Pipeline

Quoin Hill

Seawater Cooling Pipeline (if required)

Emao Island

Gardens

Scrub Duck

Scrub Duck Habitat

Gardens

Scrub Duck Habitat

Vanuatu Megapode Habitat (known)

Vanuatu Megapode Habitat (predicted) Takara Abandoned Airstrip

Project Components

Laydown Area

Geothermal Power Plant Site Exploration Drill Pad Sites

Production Well Pad Sites Injection Well Pad Site

Source: Esri, DigitalGlobe, GeoEye, i-cubed, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AEX, Getmapping, Aerogrid, IGN, IGP,

Drawn: Scale:

1:12,500

Projection:

Date:

Sheet Size:

21/08/2014

WGS 1984 UTM Zone 59S

The content contained within this document may be based on third party data. SLR Consulting Australia Pty Ltd does not guarantee the accuracy of such information.

250

ÂŠ

Areas of Cultural Significance 500

750

Stakeholder Consultation The community consultation process carried out during phase one (1) and two (2), and planned phase three (3), of the consultation during the ESIA can be summarised as a very positive relationship building experience between the Project ESIA team and the local stakeholders. It is a general observation by the Project ESIA team that there is a high level of both social and cultural capital in the study area at Takara. This social and cultural capital can offer a resilience mechanism for the community which can enable them to effectively manage change related to the Project impacts, while largely maintaining their cohesive social and cultural fabric. To manage such influences on the culture, the community must be well informed through consultation during the proposed Project.

Conclusions The Vanuatu Government has committed to the vision of a geothermal energy project through the National Energy Road Map, Priorities and Action Agenda (2006 – 2015) and the National Energy Policy Framework. The Project has received broad level support from the Government and the community in Takara, as shown through the ESIA stakeholder consultation process. The ESIA process and risk assessment workshops concluded that there would be no ‘High’ level residual risks associated with the Project, following the implementation of mitigation measures. Most impacts identified would be considered a ‘Low’ residual risk following mitigation. The impacts considered to pose a ‘Medium’ residual risk to the receiving environment are discussed further below. The ESIA process found there are four (4) impacts that pose a ‘Medium’ residual risk to the environment (three (3) during drilling / construction and one (1) during operation). Of these, two (2) are associated with optional design features (i.e. potential disposal of geothermal brine to the ocean from drilling activities and potential discharge of cooling water to the ocean during plant operation) which may or may not be part of the final geothermal plant design. The two (2) non-discretional environmental impacts are from the clearance of vegetation and gardens during the drilling and construction phases, leading to secondary impacts on the removal of valuable gardens and wildlife habitat (e.g. for the endangered scrub duck). The gardens are an important food source for the local Takara community and as such they are of social and cultural significance. Further details of the ‘Medium’ risks are summarised in the table below. Both these impacts are considered to be temporary and reversible as the majority of the cleared vegetation area will be rehabilitated to gardens or habitat after the Project.

Environmental and Social Impact Assessment - Executive Summary 20

Type and Duration of Environmental Impacts Project Phase

Type and Duration of Environmental Impact Short to Medium Term (< 3 years)

Exploration and Production Drilling Construction

Geothermal Plant Operation

Long-Term (> 3 years)

Residual Risk



Vegetation clearance of gardens - removal of valuable garden food source and social and cultural significance

Medium



Vegetation clearance of native habitat - loss of habitat for endangered species e.g. scrub duck

Medium



Geothermal brine discharge to ocean (option only, re-injection is preferred method) contaminants in ocean leading to flora and fauna damage

No (only if reinjection not feasible)

Medium



Seawater cooling outfall (option only) increased water temperature in ocean leading to flora and fauna damage

No (only if option selected)

Medium

The ESIA process found there are eight (8) ‘Medium’ social residual risks (four (4) during drilling / construction and four (4) during all phases). Of these, four (4) during the drilling / construction phase are within a short to medium term including direct impacts from the clearing of gardens, increased traffic, impacts from influx or workers and potential for disturbance of cultural sites or sites important to the local population for harvesting scrub duck eggs. The two (2) definite social impacts are from the clearing of gardens and vegetation and the disturbance from increased traffic and workers. The other two (2) from the influx of workers and cultural disturbance could have negligible impact if managed with the ESMMP mitigation. Further details of the ‘Medium’ risks are summarised in the table below. Type and Duration of Social Impacts Project Phase

Type and Duration of Social Impact Short to Medium Term (< 3 years)

Exploration and Production Drilling, Construction

All Phases

Long-Term (> 3 years)

Residual Risk



Work on community land, including clearing of gardens, crops and plantation trees during drilling and construction.

Medium



Increased traffic along coastal Ring Road bringing good and services to site with increased accident potential especially with children

Medium



Influx of workers to Takara for the Project, including from overseas, and other parts of Efate and nearby islands

Medium



Disturbance to / on places or characteristic features of cultural or historical significance scrub duck habitat

Medium



Increased access to economic resources for individuals and households, allowing potential for substance abuse

Yes (possibly)

Medium

Environmental and Social Impact Assessment - Executive Summary 21

Project Phase

Type and Duration of Social Impact Short to Medium Term (< 3 years)

Long-Term (> 3 years)

Residual Risk

ď&#x201A;ˇ

Potential for increased tension between different groups or communities due to perceived inequalities in the distribution of project benefits

Yes (possibly)

Medium

ď&#x201A;ˇ

Vulnerable groups (e.g. women, youth, elderly) may be further marginalised and not have access to jobs and benefits

Yes (possibly)

Medium

ď&#x201A;ˇ

Limited opportunity for training and skilled employment opportunities

Yes

Medium

The ESMMP has been prepared to specifically address the impacts raised in the ESIA process and incorporates the mitigation measures required to reduce risks to as low as reasonably practical. It incorporates an Environmental Policy, an Environmental and Social Management System, reference to the register of Environmental and Social Residual Risks and includes discipline-specific management and monitoring plans. The Management and Monitoring Plans have been developed for each of the environmental and social aspects assessed. These include measures to be implemented in order to avoid, minimise, and compensate for (where necessary) the identified risks and impacts to the community and the environment. With the implementation of the ESMMP, the Project can achieve good industry practice comparable with similar geothermal projects operating around the world. Impacts and risks caused by the Project will predominately be within the drilling and construction phases. The Project need and benefits are more applicable at a regional scale to Vanuatu, however the implementation of the Community Benefits Program will provide local benefits to the local community for the life of the Project and with a strategic focus can leave a lasting legacy.

Commitments As part of implementing the Project, Geodynamics commits to: 1. Develop an entitlements/compensation trust, agreed between Kastom land owners and Geodynamics, for use of land, which shall be payable to the rightful Kastom owner when determined by the current legal process. Funds shall be held in trust if exploration drilling commences before an owner is determined, and all rival claimants in the current dispute shall be consulted to endorse this approach. 2. Negotiate and implement a stakeholder agreed Community Benefits Program for the Project life and establish a board with strong and diverse local representation to identify, prioritise and manage projects. 3. Source labour, services and supply of goods locally (Takara), Efate or within Vanuatu by order of preference, where available. 4. If during exploration drilling and well testing, an unexpectedly high level of greenhouse gas is identified as a component of the geothermal fluid, then the project will re-evaluate its current power conversion technology concept with a view to re-injecting more greenhouse gas. GHG emissions will be as low as practical, shall remain below the emissions intensity of the displaced diesel generation and below the International Finance Corporation reporting threshold of 25,000 tonnes CO2-e per annum for Stage One (5 MWe) of the Project. 5. Update the ESIA as required by stakeholders, as detailed design develops and especially if project plans diverge from the technical assumptions contained in the ESIA.

Environmental and Social Impact Assessment - Executive Summary 22

Recommendations As part of implementing the ESIA for the Project, it is recommended that Geodynamics: 1. Implement ESMMP actions and reviews prior to each phase of the Project. 2. Implement the environmental and planning conditions of approval from the Vanuatu Government and embed these within the ESMMP. 3. Determine the plant cooling option during further engineering design. If the seawater cooling option is preferred, conduct further analysis of a potential pipeline route in consultation with the community(s) and conduct discharge dispersion modelling according to the ESMMP findings. 4. Undertake cultural awareness training with all Project staff, to ensure cultural sensitivities and community safety is prioritised during all Project stages. 5. Review and monitor these recommendations and the ESIA Conditions of Approval regularly and adapt the ESMMP to adapt and comply.

Project Benefits The ESIA has concluded that most impacts and risks caused by the Project will be within the drilling and construction phases. The implementation of the ESMMP will reduce impacts and risks to as low as reasonably practical to achieve good international industry practice. The overall positive impacts of the Project to Vanuatu, Efate and Takara on balance outweigh the negative impacts and suggest that the Project should proceed. The Project benefits can be summarised as: 

Expanded generation capacity on Efate to facilitate increased access for domestic and business customers;



Potential for reduction in electricity prices in the energy market from the geothermal least cost electricity generation, with flow on benefits to domestic and business customers;



Contribute to Vanuatu’s NERM goal of self-sufficiency for energy with a reduction in reliance on imported diesel for power generation and achieving renewable target of 65% by 2020;



Reduction in overall greenhouse gas emissions through the displacement of diesel power generation;



Potential improvements in Port Vila’s air quality with a reduction in diesel power generation air emissions; and



Community Benefits Program for the Takara area, to facilitate increased employment and training opportunities, through improvements for areas such as health, education and community infrastructure.

Environmental and Social Impact Assessment - Executive Summary 23

CHAPTER

Introduction

Table of Contents 1

INTRODUCTION

1.1

Project Background

1.2

Project Overview

1.3

Project Proponent

1.4

ESIA Methodology 1.4.1 ESIA Purpose 1.4.2 ESIA Scope

3 3 4

1.5

ESIA Structure

TABLES Table 1-1 ESIA Terms of Reference Contact Details

FIGURES Figure 1-1 Takara Geothermal Project Location

Chapter 1 - Introduction

INTRODUCTION

The Takara Geothermal Power Project (Project) is a proposed geothermal power Project located near Takara, in the north-east of the island of Efate in the Republic of Vanuatu. Takara is located approximately 25 kilometres north-east along the Efate Ring Road from the capital of Port Vila (refer Figure 1-1). Geodynamics Limited (Geodynamics) proposes to undertake exploration drilling to confirm the size and nature of the resource, and enable further scoping of a possible geothermal Project in the future. If the geothermal resource is favourable, then Geodynamics may proceed to production drilling and the construction of a geothermal plant, steamfield and associated infrastructure. Electricity generated by the Project could be used to displace a component of the islandâ&#x20AC;&#x2122;s current diesel-based electricity generation. In regard to the scale of exploration drilling described in the Project Description â&#x20AC;&#x201C; Chapter 4, the number of potentially affected sites represents a maximum case. Geodynamics may well develop an exploration plan that involves only some of the indicated sites, and so this Environmental and Social Impact Assessment (ESIA) should be viewed as being conservative in terms of the impacts that the Project could be expected to affect.

1.1

Project Background

In January 2012 the Vanuatu Government commissioned a report from the World Bank, titled Vanuatu: Efate Geothermal Power and Island-Ring Grid Development Framework, to investigate the potential for geothermal on the main island of Efate. That report was accepted by the Vanuatu government in May 2012. The government in conjunction with its development partners has also released a National Energy Road Map (NERM) for Vanuatu. Both of these reports identified the key role that geothermal would play in the future energy mix for Vanuatu. Consequently, the Vanuatu Minister of Lands and Natural Resources established a geothermal task force in 2012 to facilitate a geothermal project on Efate. In January 2013 the Vanuatu government issued KUTh Energy with a 30 year exclusive Production Licence to develop geothermal electricity in the north of the island in locations identified by the company during the surface exploration phase of the Project. In January 2014, KUTh Energy was acquired by Australian company Geodynamics Limited. Geodynamics have subsequently pursued the prospect of developing the geothermal resource at Takara, Efate.

1.2

Project Overview

The Takara project is expected to be developed in the following phases: 1. Exploration drilling and confirmation of the geothermal resource; 2. Production drilling of producing and injection wells; 3. Geothermal plant, pipelines and associated infrastructure construction; 4. Operation of the geothermal plant, including: o

Stage one development of a net 5 MWe plant to meet base load demand; and

Possible Stage two development of a second net 5 MWe plant to meet peak demand and future demand growth;

5. Decommissioning and rehabilitation of the geothermal plant, pipelines and associated infrastructure.

Chapter 1 - Introduction 1

The proposed location of the Project area on Efate in relation to Port Vila and surrounding islands is shown in Figure 1-1. At this stage of the Project, prior to the confirmation of the resource following exploration drilling and any detailed engineering design, the specific location infrastructure is not known. This ESIA has therefore assumed the likely location based on the current information available within the study area. A description of the exploration and production wells, geothermal plant, pipelines and associated infrastructure, along with representative photo examples are provided as a guide in the Project Description - Chapter 4. The geothermal target zones within the study area are geophysical areas of interest that will be further assessed prior to and following exploration drilling. The target zone areas include Zones A, B, C, D and E, with potential drill pads and flowline linking these locations to the geothermal plant. The exact locations of the production and injection wells, flowlines and access tracks will not be determined until following the exploration drilling and detailed engineering design. In February 2014 Geodynamics and kastom (traditional) owners signed an agreement for the commencement of activities for the first stage of the exploration phase, including this ESIA, community mapping and land valuations. This ESIA has been prepared to support the application by Geodynamics for consent under Part 3 of the Environmental Protection and Conservation Act 2002 (EPC Act). The primary components of the Project are summarised in Project Approvals and Regulatory Framework – Chapter 2.

1.3

Project Proponent

The Project is being developed by Geodynamics Limited, a public company limited by shares, incorporated and domiciled in Australia. Geodynamics is an advanced geothermal exploration and development company which listed on the Australian Securities Exchange in September 2002. Geodynamics holds geothermal exploration licences over highly prospective areas in South Australia, Vanuatu and Solomon Islands. Geodynamics is Australia’s most advanced geothermal exploration and development company and a world leader in the emerging field of Enhanced Geothermal Systems (EGS), achieving a major milestone in 2013 with the successful demonstration of the 1 MWe Habanero Pilot Plant near Innamincka, South Australia – one of only three operating EGS plants globally. In November 2012, the Company entered into a two stage earn-in agreement with Kentor Energy to acquire up to 70% interest in the Savo Island Geothermal Power Project in the Solomon Islands. This joint venture project presents a compelling new opportunity that with successful development could replace expensive diesel generated power to the city of Honiara and Gold Ridge Mine. Early exploration drilling is targeted for 2014. Geodynamics has further exploration interests in the Australian states of Northern Territory, and New South Wales. Geodynamics is committed to the effective environmental management of all its exploration, development and operating activities to minimise the impact on local communities, the natural landscape, waterways, flora and fauna. To support this goal, Geodynamics has implemented an Environmental Management System (EMS) that sets out clear policies, procedures and processes to reduce and mitigate the impact of their activities. The EMS reflects Geodynamics commitment to raising environmental awareness and ensuring all Geodynamics’ employees and contractors operate to a high level of environmental performance through regular training. Geodynamics adheres to the following environmental principles and standards: 

Maintain and continually improve the EMS;



Comply with all relevant laws, regulations and standards and aspire to delivering higher standards;

Chapter 1 - Introduction 2



Ensure that all employees and contractors receive appropriate training to fulfil their individual environmental responsibilities;



Ensure that the necessary resources and skills are retained to achieve the environmental commitments;



Develop and implement strategies to minimise pollution, manage waste effectively; use water and energy efficiently while addressing all relevant cultural heritage and biodiversity issues;



Formally monitor and report annually on environmental performance against defined objectives;



Require that companies providing contract services to Geodynamics manage their environmental performance in line with the Environment Policy; and



Work towards the achievement of a high level of external recognition for the quality of the onsite environmental management.

Geodynamics understands that its licence to operate comes from its performance in working together within the communities in which it operates. As Geodynamics progresses this Project, it aims to ensure that its communities remain informed and are consulted about the ongoing activities. Geodynamics recognises the importance of involving the local community in the decisions that affect them. Listening to the feedback and recommendations of community members as well as providing opportunities to raise questions and voice any concerns, will help Geodynamics develop a Project that brings benefits to all those impacted. Health and safety is also central to the Geodynamics corporate value system and the company strives to maintain an incident-free workplace. Geodynamics recognises that this goal is best achieved by developing a risk aware workforce and building a strong safety culture across the business through regular training, the implementation of strong governance measures, and careful monitoring of health and safety performance.

1.4

ESIA Methodology

1.4.1

ESIA Purpose

A development application under Part 3 of the EPC Act, such as this Project, must be accompanied by an ESIA prepared in accordance with Section 8(1) of the Act. The purpose of this ESIA is to provide the information required to enable government agencies and decision makers to consider the merits and implications of proceeding with the Project. It also serves to inform the local community, other stakeholders and the wider public about the Project. This ESIA has been prepared by SLR Consulting Australia Pty Ltd (SLR) on behalf of Geodynamics to support an application to permit the development of the Project. SLR has been pre-approved by the Department of Environmental Protection and Conservation (DEPC) to conduct Environmental Impact Assessments (EIA) in Vanuatu. The ESIA has been prepared to accompany a development application for the Project in accordance with the provisions of Part 3 of the EPC Act, the Equator Principals, and the legislative framework under which it is permissible. The ESIA has also been prepared using a risk-based assessment approach to identify and evaluate environmental, social and economic aspects relevant to the Project. This has been achieved through a process of ongoing consultation with stakeholders from government agencies and the surrounding community, risk assessments to appropriately identify and scope risk, robust specialist technical assessments and mitigation and management measures as appropriate for the Project. In accordance with Part 3 of the EPC Act, Section 8(1c), Geodynamics is required to identify and provide in this ESIA, the contact details of all personnel who prepared or participated in the preparation of the above Terms of Reference. These contacts have been provided in Table 1-1 below.

Chapter 1 - Introduction 3

Table 1-1 ESIA Terms of Reference Contact Details Name

Contact Details

Albert Williams Director, Department of Environmental Protection and Conservation

Mail: Private Mail Bag 9063, Port Vila, Republic of Vanuatu Ph: +678 25302

Stephen Daysh Director, Environmental Management Services

Ph: +64 6 834 4344 E: stephen.daysh@emslimited.co.nz

Tim Hewatt Vanuatu Representative, Geodynamics Tony Mills ESIA Project Director and Engineering Manager, Geodynamics

Ph: +678 7755657 E: tim.hewatt@geodynamics.com.au Ph: +617 3721 7500 E: tony.mills@geodynamics.com.au

Lochlan Gibson ESIA Project Manager, SLR Consulting

Ph: +614 00 025 339 E: lgibson@slrconsulting.com

1.4.2

ESIA Scope

The scope of this ESIA is to address all phases of the Project according to the Final Terms of Reference (ToR) for ESIA, produced by the DEPC (see Appendix A). Appendix A includes the elements of the ToR with a reference of how each has been addressed in the ESIA. The ESIA has also been undertaken in accordance with the Equator Principles (see Appendix B), and the International Finance Corporation Performance Standards. Details of the relevant legislation are presented in Project Approvals and Regulatory Framework – Chapter 2.

1.5

ESIA Structure

This ESIA report outlines the Project, describes the predicted environmental and social impacts, and proposes management and mitigation strategies to address these. The structure of the ESIA as explained in the ToR was to be completed in two phases: 

Project baseline assessment and exploration drilling and testing phase; and



Steamfield, power plant and transmission construction and operation phase.

The ESIA structure has however included both of these phases in the current ESIA. Where detailed engineering has not been completed, this ESIA has assessed potential options and if required a worst case scenario for a potential impact. This ESIA is intended to support the application for consent to undertake all the Project development phases, including; drilling, construction, operation, and decommissioning. As the details of the geothermal resource will be established by the exploration drilling, at this stage plant technology options and reservoir characteristics can only be considered at a high level, without detailed engineering design being completed. The structure of this report is outlined below, with a short summary of the contents of each section: Chapter 1: Introduction – This chapter outlines the background to the Project, provides an overview of the Project, and introduces the Project proponent. The ESIA methodology, scope, and document outline are also addressed. Chapter 2: Project Approvals and Regulatory Framework – This chapter outlines the relevant planning and approvals that apply to the Project. This includes Vanuatu legislation, Shefa Council Planning, and international agreements such as the Equator Principles and the International Finance Corporation (IFC) (World Bank) Performance Standards.

Chapter 1 - Introduction 4

Chapter 3: Project Justification – this chapter provides the justification for going ahead with the Project. It addresses aspects such as the Vanuatu energy market, geothermal power, and the need for the Project, and Project alternatives. It also outlines the site selection justification. Chapter 4: Project Description – this chapter explains the Project in detail. It provides information on the proposed exploration and production drilling, geothermal power plant construction and operation, and the proposed decommissioning and rehabilitation of the site at the cessation of operations. Chapter 5: Existing Environment – this chapter describes the existing environment at Takara prior to any works associated with the Project. This includes aspects such as the physical environment (land use, surface and groundwater, air quality, noise and landscape amenity), biological environment (marine and terrestrial ecology) and the social and cultural environment (land use and ownership, sensitive receptors and stakeholder and community consultation). Chapter 6: Impact Assessment – Exploration and Production Drilling – this chapter provides a description of the environmental impacts associated with the exploration and production drilling phase of the Project. Environmental aspects assessed include the physical environment (Climate, Seismic Activity and Topography, Land-use, Soils and Geology, Surface and Ground Water, Air Quality and Greenhouse Gas Emissions, Noise and Vibration, Landscape and Visual Amenity). It also addresses aspects associated with the biological environment (Terrestrial and Marine Ecology) and the Social / Cultural Environment (Social and Cultural, Land-use and Ownership, Sensitive Receptors and Stakeholder and Community Consultation). Chapter 7: Impact Assessment – Geothermal Plant Construction and Operation – This chapter provides a description of the environmental impacts associated with the construction and operation of the geothermal plant. Environmental aspects assessed include the physical environment (Climate, Seismic Activity and Topography, Land-use, Soils and Geology, Surface and Ground Water, Air Quality and Greenhouse Gas Emissions, Noise and Vibration, Landscape and Visual Amenity). It also addresses aspects associated with the biological environment (Terrestrial and Marine Ecology) and the Social / Cultural Environment (Social and Cultural, Land-use and Ownership, Sensitive Receptors and Stakeholder and Community Consultation). Chapter 8: Environmental and Social Management and Monitoring Plan – This chapter outlines the proposed environmental policy, environmental and social management system, and the environment and social residual risks. This chapter then provides in detail, the environmental and social mitigation control plans for each aspect assessed in Chapters 6 and 7. Chapter 9: Conclusions and Recommendations – this chapter summarises the significant environmental and social impacts, and summarises the Project need and Project alternatives. The chapter states how the document has complied with the ToR and the Equator Principles. It also provides a summary of all commitments and recommendations made in the ESIA. Chapter 10: References – this chapter lists all references used in the preparation of this ESIA. Appendix A, B and C – these appendices include a table for comparison of the ESIA ToR and Equator Principles, and the Environmental and Social Risk Registers. ESIA Technical Reports - these reports provide the baseline studies, monitoring results and impact assessment for the following technical disciplines: 1. Soils and Land Suitability; 2. Surface and Ground Water; 3. Air Quality and Greenhouse Gas Emissions; 4. Noise; 5. Landscape and Visual Amenity; 6. Terrestrial Ecology; 7. Marine Ecology; 8. Social and Cultural Heritage; and 9. Stakeholder and Community Consultation.

Chapter 1 - Introduction 5

Figure 1-1 Takara Geothermal Project Location

Chapter 1 - Introduction 6

CHAPTER

Project Approvals and Regulatory Framework

Table of Contents 2

PROJECT APPROVALS AND REGULATORY FRAMEWORK

2.1

Geothermal Approvals 2.1.1 Geothermal Energy Act 1987 2.1.2 Prospecting and Production Licence

1 1 1

2.2

Environmental Approvals 2.2.1 Environmental Management and Conservation Act 2002 2.2.2 Vanuatu Environmental and Social Impact Assessment Process 2.2.3 Project Environmental and Social Impact Assessment Process 2.2.4 ESIA Compliance 2.2.5 ESIA Terms of Reference

4 4 4 6 7 9

2.3

Planning Approvals 2.3.1 Physical Planning Act 2006

10 10

2.4

Shefa Provincial Council Planning 2.4.1 Shefa Provincial Government Council 2014-2018 Corporate Plan

10 10

2.5

Other Applicable Legislation 2.5.1 Foreshore Development Act 1975 2.5.2 National Parks Act 1993 2.5.3 Public Health Act 1994 2.5.4 Health and Safety at Work Act 1986 2.5.5 Fisheries Act 1985 2.5.6 Water Resources Management Act 2002

11 11 11 11 11 11 12

2.6

Vanuatu Climate Change Initiative

2.7

Vanuatu International Agreements 14 2.7.1 Equator Principles 14 2.7.2 International Finance Corporation (World Bank Group) Performance Standards 15 2.7.3 Convention on Biological Diversity 16 2.7.4 Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other Matter 1972 16 2.7.5 Convention for the Protection of the Natural Resources and Environment 16

Chapter 2 - Project Approvals and Regulatory Framework

Table of Contents TABLES Table 2-1 Production Licence Conditions Table 2-2 Requirements for the Contents of an ESIA Table 2-3 Vanuatu Climate Change Initiatives

3 8 13

FIGURES Figure 2-1 Efate Geothermal Prospecting Licence Area Figure 2-2 Efate Geothermal Production Licence Area Figure 2-3 Vanuatu Environmental and Social Impact Assessment Process Figure 2-4 Project Environmental and Social Assessment Process

Chapter 2 - Project Approvals and Regulatory Framework

2 3 5 7

PROJECT APPROVALS AND REGULATORY FRAMEWORK

This Chapter describes the Project approvals and relevant regulatory framework and the application to the Project. The principal Vanuatu legislation applicable includes the Geothermal Energy Act 1987 (GE Act), governing the prospecting and production of a geothermal resource. The Environmental Management and Conservation Act 2002 (EMC Act) is the primary environmental approvals legislation administered by the Department of Environmental Protection and Conservation (DEPC). The Physical Planning Act (PP Act), covering local government requirements for Provincial Councils, is governed by the Shefa Provincial Council.

2.1

Geothermal Approvals

2.1.1

Geothermal Energy Act 1987

This GE Act regulates the prospecting for geothermal energy sources and production of energy derived from within the ground by natural heat, and related matters such as surface rights and limitation of disturbance caused by prospecting or production. The Act stipulates that geothermal energy may be developed only through prospecting and production licenses issued by the Government. Further detail on the issuance of prospecting licenses is given by the Geothermal Energy (Prospecting Licenses) Regulation, Order 54 of 1987. The Minister may grant a prospecting licence in accordance with Part 5 of the Act, and a production licence in accordance with Part 7 of the Act. A prospecting license may be initially granted for up to 3 years, and may be renewed up to two times, with the duration of each renewal not to exceed 2 years. A production license is granted for 30 years in accordance with Part 7 of the Act. A production licence allows exclusive rights to the proponent for use of geothermal energy in the licensed area, and production of electricity from this resource. The proponent is also approved to sell any electricity produced, and store and dump any mineral or waste products. Production licences can be renewed subject to approval by the Minister. 2.1.2

Prospecting and Production Licence

In April 2009, an Australian company, KUTh Energy Limited (KUTh), obtained three prospecting licenses on Efate, as provided under the GE Act (refer Figure 2-1). The Teouma licence (Licence No. 29000) included a series of warm springs along the north-south Teuma Graben, a significant geological feature which cuts across the island of Efate. The Takara licence (No. 29001) included a 2 km2 area of 70째C saline springs close to the northeast coast of the island. The Epule licence (No. 210003) covered an extension of the coastal geothermal features from Takara that had been identified from KUTh's previous exploration.

Chapter 2 - Project Approvals and Regulatory Framework 1

Figure 2-1 Efate Geothermal Prospecting Licence Area

On 22 January 2013, a production licence for the Project was issued to KUTh from the Minister for Lands and Natural Resources under Section 21 of the GE Act for a period of 30 years, expiring in 2043 (refer Figure 2-2). This licence allows for the development of geothermal electricity in the north of Efate in locations identified by KUTh during the surface exploration phase of the project. The issuing of the production licence superseded the previously issued prospecting licences. Within the production licence, three areas were identified as potential geothermal resources. The Project has focussed on the Area C as shown in Figure 2-2. In January 2014, KUTh was acquired by Geodynamics. Geodynamics have subsequently pursued the prospect of developing the geothermal resource at Takara, Efate. The licence approves Geodynamics to develop the geothermal resource in the licensed area and pursue production of electricity.

Chapter 2 - Project Approvals and Regulatory Framework 2

Figure 2-2 Efate Geothermal Production Licence Area

Condition 5 of the production licence lists the environmental protection conditions of the licence. These have been reproduced in Table 2-1 below, as well as where they have been addressed within this ESIA. Table 2-1 Production Licence Conditions Requirement

Section Addressed

The Licensee shall conduct all geothermal production operations safely and in accordance with environmentally sound principles.

Section 8.1 and Section 8.2

The Licensee shall comply with the requirements of the Environmental Management and Conservation Act 2002 relating to protection of the environment in the licensed area and in the adjoining and neighbouring lands.

Section 2.2.1

The Licensee shall carry out all operations in a manner so as to mitigate pollution, safeguard natural resources, and to provide for the reasonable restoration of lands disturbed by such operations, and to minimize the effect of such operations on adjoining and neighbouring lands.

Section 8.4

Prior to carrying out the authorised activities, the Licensee shall commission an environmental impact assessment in respect of the authorised activities to be conducted under the Production Licence, which for the avoidance of doubt shall include all activities in Appendix B (1) (b) and (c).

This ESIA.

The Licensee shall include in the environmental impact assessment the details of any significant adverse effects which the authorised activities may have on the environment, and the proposals for mitigating those effects.

Section 6, Section 7 and Section 8.4

Chapter 2 - Project Approvals and Regulatory Framework 3

2.2

Environmental Approvals

2.2.1

Environmental Management and Conservation Act 2002

The EMC Act is the principal environmental act for Vanuatu. The Act deals with administration; environmental impact assessment; biodiversity and protected areas; and offenses under the Act. The process and procedures for an ESIA are outlined in the subsequent Environmental Impact Assessment Regulations (2011). 2.2.2

Vanuatu Environmental and Social Impact Assessment Process

The Vanuatu ESIA process is defined in the EMC Act. Under this Act, an ESIA is required to examine the environmental and social impacts of a proposed project, and outline how the impacts can be eliminated, managed or reduced with appropriate mitigation controls. The Vanuatu ESIA process is summarised in Figure 2-3, showing the path and current stage of the Project, which will be discussed in the following section. The first stage of the ESIA Process is the submission of a Project Application to the Director of the DEPC by the proponent. This Project Application includes project information, plans, project specifications and any other documentation as requested by the Director. The particulars of the project are registered in the Environmental Registry and a Preliminary Environmental Assessment (PEA) is then undertaken by the Director to determine whether or not a full ESIA is necessary. During this time the Director may seek comment on the Project Application from other agencies, non-government organisations or any person with a direct interest in the subject matter of the application. In August 2011, KUTh applied to the DEPC under Section 14 of the EMC Act for a determination on whether an ESIA was required for exploration drilling. The Director of the DEPC undertook a PEA and in a letter dated 19 October 2011, determined that the ESIA was not required and that the proposed first stage of drilling activities was approved. Following acquisition of KUTh, Geodynamics decided to conduct a voluntary ESIA and subsequently informed the DEPC, who developed Terms of Reference (ToR) that define the scope of work required in preparing the ESIA. The ToR was developed in consultation with any government agencies, non-government organisations, the general public, and any person with a direct interest in the Project. As part of the ESIA process, Geodynamics must conduct public consultations on the Project as directed by the Director, with all relevant stakeholders, custom landowners, chiefs and relevant parties. At least one of the public consultation meetings is required to be held in the close vicinity of the proposed development.

Chapter 2 - Project Approvals and Regulatory Framework 4

Figure 2-3 Vanuatu Environmental and Social Impact Assessment Process

Chapter 2 - Project Approvals and Regulatory Framework 5

2.2.3

Project Environmental and Social Impact Assessment Process

As required under Section 19 of the Act, on 4 March 2014 draft ToR were provided to Geodynamics for consultation and input. The comments received from Geodynamics on 6 March 2014 were considered during preparation of the final ToR, which were issued on 18 March 2014. Further detail on compliance with the ToR is provided in Section 2.2.5, with the ToR and compliance details in Appendix A. Geodynamics and SLR devised an ESIA process that complied with the ToR, while emphasising the socio-economic, cultural heritage and community consultation importance within an area such as Takara. In addition, the technical studies scopes were developed to focus on the key risks associated with a geothermal Project1. The Project ESIA process that has been conducted is described in Figure 2-4 below. The first stage of the ESIA involved a team of technical specialists conducting baseline field studies at Takara within a designated study area for the planned drilling, construction and plant operation site. This included stakeholder and community consultation occurring with local villages prior to the studies commencing. The baseline studies included: 1. Soils and land suitability: soil test pits and lab analysis of soil characteristics; 2. Surface and groundwater: water quality testing and lab analysis; 3. Air quality: physical observations of existing geothermal activity; 4. Noise: noise logging of background levels; 5. Landscape and visual amenity: analysis of existing landscape; 6. Terrestrial ecology: flora and fauna surveys; 7. Marine ecology: flora and fauna, water quality and benthic substrate lab analysis; 8. Socio-economic and cultural heritage: community surveys, cultural mapping; and 9. Stakeholder and community consultation: community meeting, ground and individual meetings to provide Project information and feedback regarding any concerns or suggestions. The second stage of the ESIA was assessing the baseline studies against the proposed Project and determining the level of potential impacts that could occur. Each of the technical disciplines produced a Technical Report conducting an impact assessment for that discipline (see Appendix B). The third stage of the ESIA is developing the mitigation controls to reduce the potential impact from the Project. This also involved conducting an Environmental and Social Risk Workshop to assess each activity that could cause an impact, while assessing the likelihood and consequence of the impact, before and following mitigation controls being applied. The residual risks following the adoption of mitigation controls, as shown in Appendix C. The fourth stage of the ESIA is developing the Draft ESIA report for review by DEPC, other Government agencies, stakeholders, community and interested public. This includes a four (4) week public consultation period where the ESIA will be available for Government and public review, with submissions on the ESIA due at the end of the four (4) weeks to DEPC. The fifth stage of the ESIA is responding to the public consultation submissions to develop a Final ESIA. This ESIA will include an Environmental and Social Management and Monitoring Plan (ESMMP) with commitments from Geodynamics to implement through the Project. The Director of the DEPC will then review the ESIA in consultation with other agencies and non-government organisations as applicable, and make a determination on the Project. An ESIA review committee may

SLR Consulting were engaged by Geodynamics to conduct the Project ESIA. SLR have been preapproved by DEPC as an EIA consultant in Vanuatu. Chapter 2 - Project Approvals and Regulatory Framework 6

also be established if required, to review the document and make any recommendations to the Director within 30 days of the submission of the Draft ESIA report. Figure 2-4 Project Environmental and Social Assessment Process

At this point the ESIA is either rejected, referred back to DEPC for more information in the form of a supplementary ESIA Report, or is approved with conditions and recommendations. If the Project is approved, it must substantially commence within 12 months of the date of the ESIA approval, or the approval will become invalid and a new application for a PEA is required. During operation of the approved development, regular compliance monitoring and inspections of environmental conditions is carried out by the DEPC. During each stage of the ESIA, stakeholder and community consultation was conducted to communicate to people potentially impacted by the Project, raise awareness through consultation and seek feedback. This process is documented in the Stakeholder and Community Consultation Technical Report, (SMEC, 2014) 2.2.4

ESIA Compliance

This ESIA has been undertaken in accordance with Part 3 of the EMC Act. Part 3, Section 8(1) of the Act outlines the requirements for the contents of an ESIA report. These requirements, and where they are addressed in this ESIA, are included in Table 2-2:

Chapter 2 - Project Approvals and Regulatory Framework 7

Table 2-2 Requirements for the Contents of an ESIA Requirement

Where addressed in ESIA

(1) An EIA report must, to the extent appropriate, include: (a) the name and location of the project, proposal or development activity and details of the project proponent, the date of preparation of the project, proposal or development activity and the person or body responsible for the preparation; and

Chapter 1

(b) attach copies of project plans and engineering design with clear units of measurement; and

Chapter 4

(c) the identity of any person or persons who prepared or participated in the preparation of the terms of reference, with full contact details; and

Chapter 1

(d) a description of the purpose and scope of the proposed project, proposal or development activity, including the background and rationale for the project, proposal or development activity and its intended goals and objectives; and

Chapter 4

(e) a description of the environmental setting of the site of the proposal, including a statement of environmental resources and conditions in the area before the implementation of the project, proposal or development activity, and a projection or estimation of changed environmental circumstances that may occur as a result of the project, proposal or development activity; and

Chapter 5

(f) a description of the possible environmental and resource management impacts of the project, proposal or development activity, including any pollution or waste that may be generated, and impacts occurring during construction, operation, decommissioning, and abandonment phases of the project, proposal or development activity; and

Chapters 6 and 7

(g) a statement of the various alternatives that have been considered for the project, proposal or development activity, including energy efficiency measures, that are reasonably foreseeable and technically and economically appropriate, including the option of taking no action, and an outline of the reasons for choosing the proposed action; and

Section 3.4, Chapter 3

(h) a statement of the mitigation action proposed in respect of any adverse impacts identified in the report; and

Chapter 8

(i) details of individuals, organisations, government offices, ministries, nongovernmental organisations, villagers, local councils, and others who have an interest, expertise, or jurisdiction regarding the project, proposal or development activity and who have been consulted; and

Sections 6.3 and 7.3, Chapter 6 and 7 and Stakeholder and Community Consultation Technical Report 9 (SMEC, 2014)

(j) details and copies of any agreements entered into between the project proponent and any villagers, local councils, and others concerning access, occupation, ownership and any other rights to the land that is the subject of the project, proposal or development activity; and

Section 6.3 and 7.3 and Social and Cultural Heritage Technical Report 8 (SMEC, 2014)

(k) a summary of the results of public consultations held on the project, proposal or development activity; and

As above (i)

(l) recommendations on the selected alternatives, mitigation measures, monitoring, other studies, analysis, and any additional consultation that may be required; and

Chapter 8 and 9, and Stakeholder and Community Consultation Technical Report 9 (SMEC, 2014)

(m) a recommendation as to whether an environmental bond should be taken from the project proponent, and the nature and amount of such bond; and

Chapter 9

(n) any other matter specified in the terms of reference.

Section 2.2.5 and Appendix A

Chapter 2 - Project Approvals and Regulatory Framework 8

2.2.5

ESIA Terms of Reference

In accordance with Part 4, Section 19 of the EMC Act and the EIA Regulation Order No. 175 2011, the ToR for the Project were issued by the Director of the DEPC (see Appendix A). The ToR outlines the relevant legislation applicable to the Project; namely the EMC Act, which set out the requirements for Environmental Impact Assessment, and the Environmental Impact Assessment Regulations 2011, which provide additional guidance and detail. This ESIA has been prepared in accordance with the EMC Act, as detailed in Section 2.2. The ToR also requires recognition of the 20 February 2014 Agreement with Custom Landowners, which authorises Geodynamics to access the land to undertake the necessary ESIA studies. This Agreement has been recognised, and is referred to in Section 6.3 and Section 7.3. The ToR allowed the ESIA to be completed in two phases. Phase One was to deal with baseline assessments, the exploration drilling activities, and a conceptual outline of the subsequent parts of the project. Phase Two was to cover the construction and operation of the Project, and required detailed environmental and socio-economic effects and modelling studies to be undertaken to identify mitigation measures for adverse impacts. This ESIA has been prepared to combine Phase One and Phase Two. A table listing the requirements for Phase One and Phase Two of the ESIA, as outlined in the ToR, and how they have been met in this combined document, are provided as Appendix A. A summary of the Phase One requirements and where they are addressed within this ESIA are listed below: 

A "baseline" description of the extent and nature of the Takara Geothermal Resource based on all relevant existing geo-science information (Chapter 5);



A statement outlining the rationale for the exploration drilling target areas (Section 3.6, Chapter 3);



A "baseline" description of the existing "non-geothermal" environment (Chapter 5);



Detailed plans of the location and nature of the proposed exploration drilling and testing programme (Chapter 4);



An outline of the proposed equipment and materials to be used and the drilling, testing and discharge management practices proposed to be employed (Section 4.3 and 4.4, Chapter 4);



Detail of the logistical considerations of equipment and materials procurement, and management practices to ensure there are no adverse environmental effects resulting from those activities (Section 4.7, Chapter 4);



Details of consultations carried out to date, identification of stakeholders, issues and concerns that have been identified, including land tenure and access (Sections 6.3 and 7.3, Chapters 6 and 7);



A project plan which sets out the proposed timeline and key steps and tasks for all exploration drilling and testing activities (Chapter 4);



An accompanying Environmental Management and Monitoring Plan (Chapter 8) (changed to include ‘Social’ as an ESMMP).

The Phase Two requirements are as follows: 

Plans of the location and nature of the proposed steamfield, power plant and transmission connection components of the project (Section 4.6, Chapter 4);



An outline of the proposed equipment and materials proposed for construction and operation of the plant (Sections 4.4 and 4.5, Chapter 4);

Chapter 2 - Project Approvals and Regulatory Framework 9



A description of the proposed production and reinjection well drilling process (Section 4.4.4, Chapter 4) including well and drilling pond design to avoid contamination of freshwater streams and aquifers (Section 8.4.2, Chapter 8);



A description of proposed water and wastewater treatment systems (Section 4.10, Chapter 4);



Environmental and Socio-economic Impact Assessments associated with steamfield, power plant and transmission construction and operations (Chapter 7);



A statement of mitigation actions proposed in respect of any adverse impacts identified in the assessments (Chapter 8);



A project plan which sets out the proposed timeline and key steps and tasks for all production activities (Chapter 4); and



An accompanying Environmental Management and Monitoring Plan (Chapter 8);

2.3

Planning Approvals

2.3.1

Physical Planning Act 2006

The Physical Planning Act 2006 is administered by Municipal and Provincial Councils, which can declare Physical Planning Areas (PPA) for which they must prepare and gazette a plan specifying those areas within which they are prepared to consider applications for specified kinds of development. Development in a PPA cannot be commenced without having first received permission from the relevant Council. The relevant council in this instance is Shefa Provincial Council. An application for development within a PPA is required to be made to the Council, who may either grant or refuse permission. If permission for a development is granted, it will lapse 24 months after approval unless the development has been completed. Alternatively an applicant can apply for general permission for a development subject to details being later agreed by the Council, known as ‘outline’ permission. Any permission granted under an outline application will lapse 12 months after approval unless it is subject to a later application. Following approval of the ESIA a letter will be sent to Council seeking approval to carry out development in a PPA. Geodynamics met with Council representatives on Thursday 5th June 2014, which meeting Council confirmed their support for the Project. Geodynamics discussed the approval process and review of the ESIA in conjunction with the DEPC. Facilitating the process for potential geothermal prospecting in Takara is specifically referred to as a planned activity in the Shefa Corporate Plan, which sets out the strategic direction of the Council for the five year period from 2014 to 2018, and contains the policy objectives, strategies and activities that the Council will pursue to achieve its vision for the community.

2.4

Shefa Provincial Council Planning

2.4.1

Shefa Provincial Government Council 2014-2018 Corporate Plan

The Shefa Provincial Government Council 2014-2018 Corporate Plan was developed to guide all planning and decision-making at both the political and administrative levels. It outlines the key long term commitments of the Council to the residents and provides focus and a roadmap for the Councils development from 2014 - 2018. The Corporate Plan also sets out the strategic direction of the Council and together with the Business Plan contains the policy objectives, strategies and activities that the Council will pursue during the plan period in order to achieve its vision for the community, and to respond to the range of policy directives, responsibilities and issues facing Council the community.

Chapter 2 - Project Approvals and Regulatory Framework 10

The aim of the plan is to allow for a better prioritisation of needs and demands for services and a more effective use of limited provincial resources. It also aims to support improved service delivery, avoid waste and duplication, promote more open communication with ratepayers and stakeholders, and lead to a more open and accountable Government. Section 2 of the Corporate Plan outlines the planned developments by Sector from 2014 to 2018. Facilitating the process for potential geothermal prospecting in Takara was listed in the Plan.

2.5

Other Applicable Legislation

2.5.1

Foreshore Development Act 1975

The Foreshore Development Act no. 31 of 1975 is administered by the Ministry of Internal Affairs. Under this Act it is a requirement for any foreshore development to firstly obtain permission for such development from the Minister responsible for town and country planning. Foreshore development is defined as building, engineering, or other operations on land below the mean high water mark and the bed of the sea within the territorial waters of Vanuatu (including the ports and harbours thereof. Under Section 3 of the Act, if the seawater cooling option was selected, an application for the consent of the Minister to install the inflow and outlet pipes would be lodged prior to construction. This application will be delivered to the office of the District Commissioner, at which time Geodynamics will advertise that the application will be on public display at this location for 14 days, as required under Section 3 of the Act. 2.5.2

National Parks Act 1993

The National Parks Act 1993 provides for the establishment of the National Parks Board under Section 3 and the ability of this board to declare national parks for the protection of all ecological functions therein. The Efate Land Management Area (National Park) has been established in the centre of the island to protect the islands natural, cultural and historical resources. While part of the Efate Land Management Area is located within the Production Licence Area, none is located within the proposed Project disturbance area, therefore this Act has not been considered further in the preparation of this ESIA. 2.5.3

Public Health Act 1994

The Public Health Act of 1994 provides the basic requirements for sanitary systems for all dwellings in rural and urban areas and the prevention of the contamination of water sources. In accordance with Part 8 of this Act, wastewater treatment system will be installed to collect and treat all domestic wastewater from amenities at the power plant (refer Section 4.5.2 for further detail regarding amenities). 2.5.4

Health and Safety at Work Act 1986

The Health and Safety Work Act 1986 provides for the health, safety and welfare of persons at work in Vanuatu. Section 2 of this Act outlines the duties of employers to their employees. This includes the provision and maintenance of safe plant and systems of work; ensuring safety in relation to the use, handling, storage and transport of substances; the provision of training and supervision; the provision of safe means of access to and egress from the workplace, and the provision of adequate facilities for employee welfare. Geodynamics will conduct the Project in accordance with the Act and ensure, so far as is reasonably practicable, that all employees and members of the community are not exposed to risks to their health or safety associated with the Project. 2.5.5

Fisheries Act 1985

The Fisheries Act 1985 provides for the control, development and matters relating to the fishery in water over which Vanuatu has control under the Maritime Zones Act. It outlines the issuance of licenses and permissions to fish within the waters of Vanuatu, regulates scientific research and provides for the conservation of fisheries resources including the protection of marine mammals and the establishment of marine protected areas. Chapter 2 - Project Approvals and Regulatory Framework 11

As detailed in Chapter 4, should the seawater cooling option be selected, the impacts of discharging heated water from the pipelines may affect the marine ecosystems. If seawater cooling is selected as the preferred option for the proposed geothermal plant further assessment will be undertaken prior to construction to determine the impacts of discharging heated water and the impacts of the intake and outflow pipes. The outcomes of these studies will be provided to the Director of Fisheries to determine if a permit is required under the Act. 2.5.6

Water Resources Management Act 2002

This Water Resources Management Act 2002 applies to all water in Vanuatu, including surface water, groundwater; and any estuarine or coastal sea water. Part 2 of the Act relates to the use of water and associated works, and outlines the process for applications to use water resources. The Director for Water Resources regulates and controls the taking or use of any water, the construction or operation of any bore or works, and the doing of any act which may detrimentally affect a water resource, and therefore this Act applies to the Project during both drilling and plant operation. Water required for exploration and production drilling will be sourced from Epule Creek. Further information on water usage during the project is provided in Chapter 4. Under Part 2, Sections 6 and 7 of the Act, a person must apply to the Director for the right to use water, or to construct, operate or maintain works, for any purpose that is not a customary or an existing use of water. This includes the aforementioned water uses associated with the Project. Following approval of the ESIA, Geodynamics will seek approval from the Director to use surface water and sea water, and to construct works associated with the use of water, in relation to the Project. In accordance with Section 10 of the Act, the application will be consistent with any National Water Resource Management Policy or Plan currently in force, and will outline how the project will not create a water shortage or a health nuisance; not adversely affect other lawful users of the water resource; not damage the water resource or its environment; be compatible with other uses and works in the immediate area; and be consistent with any relevant regulations.

2.6

Vanuatu Climate Change Initiative

In October 2012 Vanuatu established the National Advisory Board on Climate Change and Disaster Risk Reduction, which sits within Vanuatu Meteorology and Geo-hazards Department. The Board is a committee made up of government and non-government members whose primary purpose is to act as Vanuatuâ&#x20AC;&#x2122;s supreme policy making and advisory body for all disaster risk reduction and climate change programs, projects, initiatives and activities. There are a number of National Advisory Board implemented projects planned for 2013 to 2018. Some of these initiatives have been listed in Table 23.

Chapter 2 - Project Approvals and Regulatory Framework 12

Table 2-3 Vanuatu Climate Change Initiatives Initiative

Description

Coping with Climate Change in the Pacific Island Region

Aims to strengthen the capacities of Pacific member countries and regional organisations to cope with the impacts of climate change, such as changing rainfall patterns, longer drought periods, increased cyclone intensity and rising sea levels.

Review and Climate Mainstreaming of the National Curriculum

Involved amending the Year 11 to 13 curriculums to make students aware of the causes, impacts and solutions for adapting to climate change in Vanuatu.

ArtTEK Tanna: Societies Centre

Resilient

A centre providing informal training courses on climate change, community awareness, education, renewable energy, and the environment.

ADRA Vanuatu Sustainable Development Fund Water, Sanitation and Hygiene Project

Aims to improve the standard of living of those living in rural communities within Vanuatu who do not have reliable access to potable water and improved sanitation. Training will integrate disaster risk reduction activities to disaster-proof the new development and raise the community level of resiliency to disasters.

USAID - Pacific Islands Coastal Community Adaptation Project

An initiative to improve coastal zone and water resource management and strengthen disaster management for communities across the Pacific for the region to adapt to climate change.

Development of an overarching climate change and disaster risk reduction policy and action plan

An overarching climate change and disaster risk reduction policy and action plan

Kaikai blong laef - ADRA Vanuatu Food Security Pilot Project

A pilot program to increase food security in three locations in Vanuatu – Black Sands, Efate; Araki – Santo Island and Dixon Reef – Malekula Island. It aims to increase the production of food in local household gardens in these communities with the objectives of increasing disaster and climate change resilience; health outcomes and economic outcomes.

Joj blong yumi i help long taem blong disasta - Enhancing the Capacity of Churches to respond in a disaster

This project aims to develop a Disaster Management training program for Vanuatu Christian Churches so that Church organizations and volunteers can help their communities come prepared and assist during a rapid onset disaster.

Yumi stap redi long climate change CCA Consortium Program

A program which brings together a consortium of national and international NGOs lead by Oxfam to support increased community resilience to climate variability and change in Vanuatu.

Supporting Community Planning for more resilient Vanuatu

An initiative which aims to improve the resilience of remote communities of Vanuatu specifically: to contribute to the implementation of community mitigation and response plans by supporting response preparedness and access to safe drinking water activities

Nainé

The Project will provide a renewable energy source to reduce Vanuatu’s reliance on diesel based electricity generation. This will in turn reduce the islands carbon emissions, which are contributing to human induced climate change. Chapter 3 provides a more detailed explanation of the Project Justification. The Project will also generate a Community Benefits Program for the community which will allow for a benefits trust with funding from the Project, which could include climate change projects as decided by the trust.

Chapter 2 - Project Approvals and Regulatory Framework 13

2.7

Vanuatu International Agreements

2.7.1

Equator Principles

Geodynamics is undertaking this ESIA in accordance with the Equator Principles (The Equator Principles Association, 2013). The Equator Principles are a set of principles that have been adopted by the Equator Principle Financial Institutions (EPFI) including many private banks and lending institutions against which projects that they finance can be developed in a manner to ensure sound environmental and social standards. Appendix B includes a full description of the Equator Principles as a reference. A summary of the ten principles, including: Principle 1 - Review and Categorisation - The Equator Principles Financial Institutions (EPFI) assess each proposed project and categorise it according to the likely environmental and social impact that it may cause. This review is based on the IFC environmental and social screening which categorises projects into either category A, B or C in decreasing order of likely impact. The Takara project best fits in Category B: projects with potentially limited adverse social or environmental impacts that are few in number, generally site-specific, largely reversible and readily addressed through mitigation methods. Principle 2 - Environmental and Social Assessment - For each project assessed as being in either category A or B it is a requirement to undertake a social and environmental assessment process to address any social and environmental risks and impacts and propose mitigation and management measures for any impacts highlighted. This ESIA has been prepared to address the risks and impacts of the Project and propose mitigation and management measures. Principle 3 - Applicable Environmental and Social Standards - For all proposals requiring a social and environmental assessment, this assessment must address potential impacts according to the relevant countryâ&#x20AC;&#x2122;s laws, regulations and permits that pertain to environmental and social issues. As Vanuatu is a non-designated country, the project environmental compliance must also be evaluated against the applicable IFC Standards and applicable World Bank Group Environmental Health and Safety Guidelines (EHS Guidelines). The Project has been assessed against the relevant Vanuatu legislation (refer Section 2.1, 2.2 and 2.3) as well as the relevant IFC Standards and EHS Guidelines for environmental trigger levels or parameters for aspects such as air, noise and water (refer Chapters 6 and 7). Principle 4 - Environmental and Social Management System and Equator Principles Action Plan- The proponent is required to develop and maintain an Environmental and Social Management System (ESMS). Further, an Environmental and Social Management Plan (ESMP) is to be prepared to address issues raised in the Assessment process and incorporate actions required to comply with the applicable standards. Where the applicable standards are not met to the EPFIâ&#x20AC;&#x2122;s satisfaction, the client and the EPFI will agree an Equator Principles Action Plan. Chapter 8 of this ESIA has been developed to address this requirement. It incorporates an Environmental Policy, an Environmental Management System, a register of Environmental and Social Residual Risks and includes Environmental and Social Management and Monitoring Plan to address impacts and risks identified in Chapters 6 and 7. Principle 5 - Stakeholder Engagement - All Category A and Category B projects require effective stakeholder engagement to be undertaken as an ongoing process in a structured and culturally appropriate manner with affected communities and other stakeholders where relevant. The consultation process is required to be tailored to the risks and impacts of the project; the Projectâ&#x20AC;&#x2122;s phase of development; the language preferences of the affected communities; their decision-making processes; and the needs of disadvantaged and vulnerable groups. Consultation has been undertaken with due consideration to the cultural context and the potentially affected parties. A summary of consultation methods and outcomes is provided in Section 6.3 and Section 7.3. Principle 6 - Grievance Mechanism - To ensure the continuation of community engagement through the construction and operation of the proposed development, a grievance mechanism must be developed to allow impacts to be documented and dealt with. Grievance mechanisms are addressed in Section 8.5.8. Chapter 2 - Project Approvals and Regulatory Framework 14

Principle 7 - Independent Review - For applicable Category B projects, an independent consultant will be commissioned to review the assessment documentation including the ESMPs, the ESMS, and the stakeholder engagement process documentation as part of the EPFIs due diligence. Geodynamics will assist the independent reviewer as necessary to undertake the review and will allow any such documentation to be available Principle 8 - Covenants - Covenants are incorporated into the Equator Principles to ensure the project adheres to all local regulations and requirements and mitigation measures included in the Assessment. Geodynamics will covenant in the financial documentation, to comply with the ESMPs during the construction and operation of the project; to provide periodic reports to document compliance with the ESMPs and to provide representation of compliance with the relevant Vanuatu regulations. Principle 9 - Independent Monitoring and Reporting - As appropriate, EPFIs will require appointment of an independent environmental/social consultant to verify the monitoring information. Geodynamics supports any initiative regarding independent monitoring and reporting. Principle 10 - Reporting and Transparency - This principle requires EPFIs to report publically, on an annual basis, on transactions that have reached Financial Close, and on its Equator Principles implementation processes and experience. Reporting requirements of proponents are to ensure that at a minimum, a summary of the ESIA is accessible and available online. Proponents are also required to publicly report greenhouse gas emissions levels during the operational phase for projects emitting over 100,000 tonnes of CO2 equivalent annually. Geodynamics will provide this ESIA online during the public consultation period, however the project does not exceed the CO2 emissions reporting threshold, as outlined in Section 8.5.3 and Technical Report 6, Air Quality and GHG Technical Report (SLRc, 2014) 2.7.2

International Finance Corporation (World Bank Group) Performance Standards

The IFC Performance Standards on Environmental and Social Sustainability (2012) provide guidance on how to identify risks and impacts and are designed to help avoid mitigate and manage risks and impacts as a way of doing business in a sustainable way, including stakeholder engagement and disclosure obligations of the client in relation to project-level activities. Together, the eight Performance Standards establish standards that the client is to meet throughout the life of an investment by IFC: 

Performance Standard 1: Assessment and Management of Environmental and Social Risks and Impacts;



Performance Standard 2: Labour and Working Conditions;



Performance Standard 3: Resource Efficiency and Pollution Prevention;



Performance Standard 4: Community Health, Safety, and Security;



Performance Standard 5: Land Acquisition and Involuntary resettlement;



Performance Standard 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources;



Performance Standard 7: Indigenous Peoples; and



Performance Standard 8: Cultural Heritage.

Chapter 2 - Project Approvals and Regulatory Framework 15

Performance Standard 1 establishes the importance of integrated assessment to identify the environmental and social impacts, risks, and opportunities of projects; effective community engagement through disclosure of project-related information and consultation with local communities on matters that directly affect them; and the management of environmental and social performance throughout the life of the project. This ESIA has been prepared to meet Performance Standard 1, through the preparation of Chapter 6 (Impact Assessment â&#x20AC;&#x201C; Exploration and Production Drilling) and Chapter 7 (Impact Assessment â&#x20AC;&#x201C; Geothermal Plant Construction and Operation). Community consultation was undertaken throughout the ESIA process, as detailed in Section 6.3 and Section 7.3. Performance Standards 2 through 8 establish objectives and requirements to avoid, minimise, and where residual impacts remain, to compensate/offset for risks and impacts to workers, affected communities, and the environment. While all relevant environmental and social risks and potential impacts should be considered as part of the assessment, Performance Standards 2 through 8 describe potential environmental and social risks and impacts that require particular attention. Where environmental or social risks and impacts are identified, the proponent is required to manage them through its environmental and social management System consistent with Performance Standard 1. The environmental and social performance of the Project will be managed as detailed in Chapter 8 (ESMMP). This Chapter also includes measures that will be implemented to avoid, minimise, and compensate/offset risks and impacts to the community and the environment 2.7.3

Convention on Biological Diversity

Vanuatu is party to the Convention on Biological Diversity whose aim is to develop national strategies for the conservation and sustainable use of biological diversity. To implement this convention Vanuatu has established a National Biodiversity Strategy and Action Plan (NBSAP). The NBSAP categorises the fauna of Vanuatu into four groups, including; endemic animal species, animal species of cultural and economic value, animal species locally vulnerable to over exploitation and animal species that are rare or vulnerable. The terrestrial ecology impact assessment undertaken by SLR identified a number of species that represented each of these categories. The impacts to the biological environment from the project are outlined in Section 6.2 and Section 7.2. These impacts will be managed and mitigated as detailed in Section 8.5. 2.7.4

Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other Matter 1972

The Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other Matter 1972 amended by a Protocol of 1996 (London Convention) regulates the dumping of wastes at sea. The 1996 Protocol prohibits the dumping of any wastes or other matter with the exception of those listed in an Annex. The 1996 Protocol adopts the precautionary principle (and so is more restrictive than the 1972 convention) with permitted materials being confined to; dredged material, sewerage sludge, fish waste, man-made structures, inert inorganic geologic material, organic material of natural origin, and bulky un-harmful material like steel, and concrete. Vanuatu is a signatory to this convention. The outcomes of these studies would be used to determine if any permits are required in accordance with Article IV of this Convention. 2.7.5

Convention for the Protection of the Natural Resources and Environment

Vanuatu is party to the Convention for the Protection of the Natural Resources and Environment of the South Pacific Region 1990 (SPREP Convention or Noumea Convention) and its Protocol for the Prevention of Pollution of the South Pacific by Dumping (SPREP Dumping Protocol) and Protocol Concerning Co-operation in Combating Pollution Emergencies in the South Pacific Region (SPREP Pollution Emergencies Protocol). In order to protect the environment in the Pacific region, the Parties agree to take all appropriate measures in conformity with international law to prevent, reduce and control pollution in the Convention Area from any source, and to ensure sound environmental management and development of natural resources. The SPREP Dumping Protocol is of particular relevance to the Project should the seawater cooling option be selected. The objective of the Protocol is to prevent, reduce and control pollution by Chapter 2 - Project Approvals and Regulatory Framework 16

dumping of wastes and other matter in the South Pacific. The Protocol also constitutes the instrument for the contracting Parties to meet the obligations the IMO Convention on the Prevention of Marine Pollution by Dumping of Wastes and other Matter (1972). The dumping of wastes or other matter is prohibited unless a permit has been issued under Article 5 or 6 of the Protocol. The outcomes of these studies would be used to determine if any permits are required.

Chapter 2 - Project Approvals and Regulatory Framework 17

CHAPTER

Project Justification

Table of Contents 3

PROJECT JUSTIFICATION

3.1

Introduction

3.2

Overview 3.2.1 Electricity Supply 3.2.2 Electricity Pricing

1 2 4

3.3

Need for the Project 3.3.1 Electricity Load Demand 3.3.2 Electricity Pricing

7 7 8

3.4

Alignment of Geothermal Electricity with Existing Government Policy 3.4.1 Renewable Energy 3.4.2 Energy Security 3.4.3 Climate Change

9 10 10 11

3.5

Project Alternatives 3.5.1 Energy Sources 3.5.2 Plant Size 3.5.3 Plant Type 3.5.4 Cooling Options 3.5.5 Network Scenarios 3.5.6 The Option of Not Proceeding

11 11 12 12 13 13 13

3.6

Project Site Selection 3.6.1 Exploration and Production Drilling 3.6.2 Geothermal Plant 3.6.3 Pipelines and Associated Infrastructure

13 13 14 15

3.7

Project Benefits 3.7.1 Relative Significance of Project 3.7.2 Supply of Goods and Services 3.7.3 Economic and Business Impacts 3.7.4 Need for Additional Infrastructure to Support the Project 3.7.5 Future Development in North-East Efate 3.7.6 Impact of Living Standards in Local, Regional and Country Level

15 15 16 16 17 17 17

3.8

Project Impacts – Environmental and Social

3.9

Project Justification Summary

Chapter 3 – Project Justification

Table of Contents TABLES Table 3-1 Household Electrification by Area (Castlerock, 2012) Table 3-2 Estimates of Power Output Distributions at Each Prospect (KUTh, 2010)

4 14

FIGURES Figure 3-1 UNELCO Concession Area on Efate (Castlerock, 2012) 2 Figure 3-2 Main source of Lighting in Vanuatu Households (Urban and Rural Vanuatu National Statistics Office, 2009) 3 Figure 3-3 Percentage of Households with Power in Vanuatu (Vanuatu National Statistics Office, 2009) 4 Figure 3-4 Comparison of bills paid by “Other low voltage” across the Pacific Region (URA, 2013) 5 Figure 3-5 Comparison of bills paid by “Business customers” across the Pacific Region (URA, 2013) 6 Figure 3-6 Projected access to electricity within the current service area (Castlerock, 2012) 7 Figure 3-7 Electricity Load Forecast for Efate (Castlerock, 2012) 8 Figure 3-8 Comparison of LCOE between technologies (Castlerock, 2012) 8 Figure 3-9 Assumed Price Impact of Geothermal Power for the Load Forecast (Castlerock, 2012) 9 Figure 3-10 Estimated Levelised Cost of New Electric Generating Technologies in 2019 (2012 $/megawatt hour) (IER, 2013) 12

Chapter 3 – Project Justification

PROJECT JUSTIFICATION

3.1

Introduction

This Chapter provides an overview of the rationale for the exploration and development of a geothermal power plant at Takara, Vanuatu. The existing Vanuatu energy market is described, as well as the forecast energy requirements for the future. The need for an alternate energy source in Vanuatu is outlined, specifically in relation to Efate’s geothermal prospects.

3.2

Overview

Similar to many Pacific Island nations, Vanuatu has relatively expensive electricity and relatively low access levels. Thus cheaper electricity and improved access is a high priority for the nation’s social and economic development. The National Energy Roadmap (NERM) (2013 – 2020) was launched in April 2014 by the Vanuatu Prime Minister stating that it will set the direction and framework for developing Vanuatu’s energy sector. The overall vision of the NERM includes: “To energise Vanuatu’s growth and development through the provision of secure, affordable, widely accessible, high quality, clean energy services for an Educated, Healthy, and Wealthy nation”. The Project strongly aligns with Vanuatu’s development goals with an: 

Expanded generation capacity on Efate to facilitate increased access to domestic and business customers;



Potential for reduction in electricity prices in the energy market from the geothermal least cost electricity generation, with flow on benefits to domestic and business customers;



Contribute to Vanuatu’s NERM goal of self-sufficiency for energy with a reduction in reliance on imported diesel for power generation;



Viable option to achieve the NERM renewable target of 65% by 2020;



Reduction in overall greenhouse gas emissions of approximately 40,000 tonnes CO2e in Vanuatu through the displacement of diesel power generation with a lower carbon footprint geothermal energy generation;



Base load power generation that is renewable energy; and



Reduce volatility in electricity prices due to offsetting a significant portion of the diesel supply costs.

The investment and development activity associated with the Project will also provide community and economic benefits, including: 

Potential attraction of further ‘green energy’ or power customer investment in Vanuatu with confidence generated by the geothermal Project;



Business opportunities during drilling and construction for supply of services; and



Community Benefits Program and Kastom Owners Trust established for community projects.

Chapter 3 – Project Justification 1

3.2.1

Electricity Supply

Electricity generation in Vanuatu is predominately fuelled by imported diesel for generator sets located at the Port Vila power station. This accounts for 83% of the total of 26.6 MW of installed capacity with 4,791 MWh of generation in February 2013. Other electricity generation includes coconut oil (copra) for mixing with diesel in the generator sets with 11.9% of installed capacity, supplemented by wind with 5% and solar 0.2% (UNELCO, 2014). In 2014, the Government of Vanuatu initiated the National Energy Road Map (NERM), developed by the National Energy Taskforce, which would result in a high-level report drawing the evolution of Vanuatu’s energy market with a focus on the energy mix amongst other key issues. A key aim of the Energy Roadmap is to reduce the reliance on diesel-based electricity generation through increased usage of renewable energy sources. Electricity is supplied via concessions granted by the Vanuatu Government to private utilities. Three concessions, on the islands of Efate, Malakula and Tanna, are operated by Union Electrique du Vanuatu Limited (UNELCO), a subsidiary of GDF Suez. The fourth concession, serving Luganville on the island of Santo, is operated by US company Pernix Group. The concession on Efate is by far the largest, accounting for 86% of Vanuatu’s total 2010 utility generation of 68,671 MWh, and servicing 73% of the country’s 12,899 electricity consumers. The concession area extends across Efate. UNELCO holds the concession until 2031. The rest of Efate outside of the Port Vila concession is currently unserved by grid electricity, however the transmission is currently being extending in the north-east of Efate, with surveying being conducted past Takara. Figure 3-1 shows the UNELCO concession as at 2012 in blue. The figure shows the Ring Road (green line), secondary roads (blue line), location of households (green dots), Government health clinics (blue ‘H’), and Government schools (red house). Figure 3-1 UNELCO Concession Area on Efate (Castlerock, 2012)

Chapter 3 – Project Justification 2

As shown in Figure 3-1, the UNELCO concession contains approximately 94% of Efate’s households and most of Efate’s economic activity. However a portion of Efate remains outside the UNELCO concession, and is not served by grid electricity. Additionally, approximately 3,000 households within the Concession remain unconnected to the grid. The Vanuatu Government is currently considering an infill program to assist households that are unconnected within the concession area to obtain electricity connections. Connection of consumers in the unserved areas would require an extension of the existing network. High income households that are not connected utilise petrol generators to meet their domestic electricity needs, and use LPG for cooking. Some may have a solar photovoltaic lighting system. The low income households rely mainly on kerosene and candles for lighting, and wood or coconut shells for cooking (refer Figure 3-2). Figure 3-2 Main source of Lighting in Vanuatu Households (Urban and Rural Vanuatu National Statistics Office, 2009)

Chapter 3 – Project Justification 3

Table 3-1 combines information from the 2009 Efate Census on household location and the principal source of lighting. While Vanuatu’s national electrification ratio is only 28%, Table 3-1 shows that on Efate, where some 30% of Vanuatu’s population lives, the electrification ratio reaches 72%. Table 3-1 Household Electrification by Area (Castlerock, 2012) Number of Houses

Connected

Unconnected

Total

Concession / Served Area

9,601

2,585

12,186

Concession / Unserved Area

451

Non-Concession / Unserved Area

770

Total

9,601 (72%)

3,806 (28%)

13,407 (100%)

The current electricity supply throughout Vanuatu is dominated by diesel generation. For the Port Vila concession, UNELCO operates 23 MW of diesel capacity and 3 MW of wind power capacity. UNELCO also blends coconut oil with diesel on a limited basis. Pollack (2010) stated that in 2007, 0.88 GWh, or 1.7% of total electricity generation for Port Vila, was produced using coconut oil. As sown in Figure 3-3 below, the majority of the population in Vanuatu that were without power in 2006 lived in rural areas (Pollack, 2010). Figure 3-3 Percentage of Households with Power in Vanuatu (Vanuatu National Statistics Office, 2009)

3.2.2

Electricity Pricing

The Utilities Regulatory Act (No.11) was enacted in 2007 to establish the Utilities Regulatory Authority (URA) as the economic regulator of electricity and water. URA manages consumer complaints and advises the Government on matters related to these sectors. URA also monitors Vanuatu’s four electricity concessions on behalf of the Government, and renegotiates tariffs under the rules of the concessions agreements. Under the Port Vila concession agreement, the Government may review tariffs every five years or upon the occurrence of specified events.

Chapter 3 – Project Justification 4

URA, on behalf of the Government, conducted its first tariff review for the Port Vila concession in 2010. This resulted in the URA’s proposed 6.8% reduction in the base tariff. UNELCO contested the reduction, and initiated arbitration with the Government, as provided for by the concession agreement. The arbitration decision was issued at the end of April 2011, and in May 2011, the tariff was reduced by 4.7% on average for the, Port Vila, Malekula and Tanna concessions (URA, 2013). In addition, URA has put in place a transparent regulatory framework structure for tariff setting and it will review the price of electricity every five years. An URA report produced in 2013 compared the price of electricity in Vanuatu with other countries in the Pacific region. It concluded that for small domestic customers the price is significantly less than the regional average. However, for other low voltage users, it is significantly higher than the regional average (see Figure 3-4). Business customers are also charged more than the regional average, with this comparison more difficult due to more complex tariffs for high voltage connections (see Figure 35). URA also found that electricity customers in Vanuatu pay more tax to the government than other Pacific countries (URA, 2013). Figure 3-4 Comparison of bills paid by “Other low voltage” across the Pacific Region (URA, 2013)

Chapter 3 – Project Justification 5

Figure 3-5 Comparison of bills paid by “Business customers” across the Pacific Region (URA, 2013)

As an example, the domestic and business electricity pricing in Fiji is amongst the lowest in the Pacific region. Fiji’s power generation is 60% with hydro-electric power stations and up to 70% from renewable sources. This situation however does include subsidised electricity to rural Viti Levu and the whole of Vanua Levu and Ovalau through the Fiji Electricity Authority (FEA). The FEA offer significant non-commercial obligation (NCO) costs for subsidies totally $25M in 2012 (URA, 2013). The only development that could yield the quantum reduction in tariffs needed to significantly improve electricity affordability and the electrification ratio would be introduction of new, lower cost generation technologies that pass savings through to the power supply tariff. Geothermal power is the only renewable base load source capable of delivering these reductions. The World Bank report stated “The analysis concludes that geothermal power from Takara is the leastcost power supply addition for Efate under a broad range of conditions, and would generate net economic benefits for Vanuatu. Development of the Takara geothermal resource should therefore be prioritized above diesel, coconut oil or other wind or solar energy investment” (World Bank, 2011). The Vanuatu NERM stated ”…the potentially transformative Efate geothermal power and ring road network development project transaction that has been assessed in a Government sponsored prefeasibility study as the overall least cost option for scaling up access on Efate (subject to resource confirmation) and if efficiently structured, can substantially lower the cost of electricity production by substituting high cost base load diesel generation with significantly lower cost base load geothermal power.”

Chapter 3 – Project Justification 6

3.3

Need for the Project

3.3.1

Electricity Load Demand

As outlined in Section 3.1 above, electricity supply in Vanuatu is characterised by high domestic and business tariffs and a low electrification ratio. Electrical energy sales forecasts for the period 2010 to 2014 prepared by UNELCO noted the historical close correlation between real GDP and energy growth rates from 1999 to 2009, and anticipated load growth of between 3 to 4% per annum in the 2010 to 2014 period based on forecasts of GDP growth (Castlerock, 2012). Real GDP growth over this period has increased from 1.6 in 2010 to 2.8 in 2013, with a forecast for 2014 of 3.5 (DFAT, 2014 and IMF, 2014). Additional changes to the system such as the planned infill program to connect low income households (refer Section 3.1) would also increase demand on the current system. The infill program was predicted to lift total annual demand by about 1 GWh in 2013 (approximately 2% of total demand). Figure 3-6 illustrates the increasing demand on electricity based on the assumption that the number of households will continue to grow at historical rates and UNELCO will connect new higher income households. Figure 3-6 Projected access to electricity within the current service area (Castlerock, 2012)

This forecast increased electricity demand, and the current high tariffs on diesel generated electricity has resulted in the need for an alternative, low cost, power generation option for Vanuatu. A combined demand for electricity is likely with a program of infill, the introduction of a geothermal project with a potential reduction in the tariff and the demand from the grid extension. Total demand is dominated by areas already being serviced by UNELCO. Figure 3-7 combines the load forecasts for the currently served shown in Figure 3-1.

Chapter 3 â&#x20AC;&#x201C; Project Justification 7

Figure 3-7 Electricity Load Forecast for Efate (Castlerock, 2012)

3.3.2

Electricity Pricing

Geothermal power was found to be the least-cost generation option for Efate, as shown in Figure 3-8. The worst case scenario for geothermal energy was generally less costly than the best case for each of the other technologies, and when the best case for geothermal is compared to the best case for the next best technology (wind power), the wind power is 44% more expensive (Castlerock, 2012). Based on economic analysis, geothermal power has been identified as the least cost option for Efate when compared to all feasible alternatives, such as diesel, coconut oil, solar photovoltaic, or wind power. Besides diesel, geothermal is the only firm capacity alternative, and would provide a lower cost electricity generation alternative to the current situation of imported diesel into Vanuatu. Figure 3-8 Comparison of LCOE between technologies (Castlerock, 2012)

Chapter 3 â&#x20AC;&#x201C; Project Justification 8

Figure 3-9 shows the price trajectory of forecast electricity loads. The increasing cost of fuel prices is expected to increase the cost of electricity generation each year under the current diesel generator scenario. Geothermal power was found to help insulate power prices from increases in the price of diesel fuel. The two step downs in the â&#x20AC;&#x153;with geothermalâ&#x20AC;? tariff trajectory correspond to the start of each of the 4 MW geothermal units, as these units do not operate from the outset at their target capacity factor. However, from 2022 onwards the geothermal power plants would operate at their target of 92% plant load factor. Figure 3-9 Assumed Price Impact of Geothermal Power for the Load Forecast (Castlerock, 2012)

Castlerock (2012) found that an 8 MW net geothermal project at Takara would yield positive economic net benefits for Vanuatu. Even under conditions least favourable to geothermal power, geothermal electricity was economically less costly than other technologies under conditions most favourable for their deployment. Efate could potentially achieve a generation mix in which base load capacity and energy is served principally by geothermal, peak period energy is met largely by wind and solar photovoltaics, and diesel generation is used only for load following and ensuring peak time capacity. This would insulate electricity prices against future diesel price volatility.

3.4

Alignment of Geothermal Electricity with Existing Government Policy

The geothermal Project aligns with many key areas of Vanuatu Government policy, which is explained further in this section. The Project could contribute to achieving many of the existing Government policies regarding renewable energy, energy security and climate change.

Chapter 3 â&#x20AC;&#x201C; Project Justification 9

3.4.1

Renewable Energy

National Energy Road Map (2013 – 2020) The overall vision of the NERM includes: “A priority first case in point is the potentially transformative Efate geothermal power and ring road network development project transaction that has been assessed in a Government sponsored prefeasibility study as the overall least cost option for scaling up access on Efate (subject to resource confirmation) and if efficiently structured, can substantially lower the cost of electricity production by substituting high cost base load diesel generation with significantly lower cost base load geothermal power”. Priorities and Action Agenda (2006 – 2015) The Priorities and Action Agenda (2006 – 2015) includes Vanuatu’s development policies, strategies and performance indicators. Chapter 9 of the Agenda on Infrastructure and Utilities has as a priority and strategy to extend the coverage of rural electrification and the promotion of renewable energy. It also include a national vision of “An Educated, Healthy and Wealthy Vanuatu’, achieved through “private sector development and employment creation”. Planning Long Acting Short (2009 – 2012) The Planning Long Acting Short included the Government’s policy priorities for 2009 – 2012. The strategy heading of “Reliable and accessible infrastructure services”, including the following priorities: 

Ensure that power is more widely available at a fair price; and



Explore/expand and invest on potential renewable energy sources.

National Energy Policy Framework (2007) The aims of the National Energy Policy Framework (2007) include the following: 

Promote the use of environmentally friendly technologies;



Provide financial incentives for investment in environmentally sustainable technologies;



Encourage the promotion of alternative sources of energy for power production; and



Increase use of renewable energy in Vanuatu.

International Renewable Energy Agency (IRENA) Convention The International Renewable Energy Agency (IRENA) has published a series of reports that identify practices to facilitate renewable energy in the Pacific Islands. This has included reporting a power systems approach to addressing energy needs before challenges to increase renewable energy in the region. The Vanuatu Government has recently attended the IRENA annual conference and addressed the delegates to endorse a report on IRENA’s activities. 3.4.2

Energy Security

National Industrial Policy (2012) The National Industrial Policy and Framework (2012) has been developed to promote export led growth for the Vanuatu economy. The policy states that “Vanuatu is highly dependent on the imports of costly fossil fuels. In addition to significantly increasing the cost of energy, it increases the country’s vulnerability to sharp fluctuations in international markets for oil. It is essential for Vanuatu to explore alternative sources, including renewable and green energy.” Pacific Island Forum Communiqué The Pacific Island Forum Communique meets annually to develop collective responses to regional issues. In a recent meeting the “Leaders also highlighted the critical importance of efforts to reduce dependence on oil through measures to improve energy efficiency and move towards greater use of renewable energy.”

Chapter 3 – Project Justification 10

3.4.3

Climate Change

United Nations Framework Convention on Climate Change and Kyoto Protocol The Vanuatu Government has previously ratified the Kyoto Protocol to the United National Framework Convention on Climate Change on 17th July 2001, demonstrating a commitment to reduced greenhouse gas emissions (GHG). Even though the majority of GHG emissions in Vanuatu would be due to transport the energy sector is likely to account for approximately 20% of total GHG tonnes equivalent, thereby the reduction in diesel generation to renewables would contribute to some GHG emissions saving. The Vanuatu Draft Climate Change Policy 2011 indicates a “Committed to minimizing increases in GHG’s in the medium to long term”…“With the current dependency on fossil fuels, it is now realized that national economic growth and development could be greatly enhanced by maximizing the use of available renewable energy sources”. There is now a ‘very high confidence’ of the sea level continuing to rise and the annual mean temperatures and extremely high daily temperatures continuing to rise in Vanuatu, the Government’s response have also been to focus on the adaptation to climate change (Republic of Vanuatu, 2011, Australian Government, 2011). This includes Vanuatu’s commitment to the Pacific Islands Framework for Action on Climate Change (2006 – 2015), which focusses on practical responses and disaster preparedness for the effects of climate change.

3.5

Project Alternatives

3.5.1

Energy Sources

In determining the feasibility of geothermal energy to Efate, Castlerock (2012) compared the Takara Project to three alternative electricity generating technologies. These included diesel generation, wind power, and utility-scale solar photovoltaic. Coconut oil-fired diesel generation was not considered separately, as it was considered unlikely to have a material impact on the generation mix and was expected to be at least as costly as standard diesel generation. The analysis found that an 8 MW net geothermal project at Takara would yield positive economic net benefits for Vanuatu, and would be the economically least-cost option for new power generation. The economic attractiveness of geothermal power compared to other technologies depended on a number of parameters, including the economic discount rate, the future price of diesel fuel, and the capital costs of a geothermal power station. For each of these technologies, a best and worst case scenario was defined. The best case scenario was characterized by low capital and operating costs, a lower discount rate, low fuel cost escalation, higher plant capacity factors and the supply of base load power. The worst case applied pessimistic values for these parameters. These options then were assessed by determining the Levelised Cost Of Electricity (LCOE), which is the single price that could be charged for electricity production over the life of the project such that the present value of revenues would equal the present value of life-cycle costs. Another analysis of LCOE by the Institute for Energy Research (IER), found that geothermal was comparably cost effective with coal, biomass, wind and significantly cheaper than solar (refer Figure 3-10). This comparison did not include diesel generation and assumed costs the present value of the total cost of building and operating a plant over its financial life, converted to annual payments of the generation life of plant (IER, 2013).

Chapter 3 – Project Justification 11

Figure 3-10 Estimated Levelised Cost of New Electric Generating Technologies in 2019 (2012 $/megawatt hour) (IER, 2013)

3.5.2

Plant Size

In assessing the feasibility of geothermal power generation on Efate, the Castlerock Report (2012) considered two geothermal development scenarios. The first scenario involved exploration proving a commercially viable resource that could support a four (4) MWe net geothermal power plant. Assuming binary technology, this was referred to as the five (5) MWe gross scenario. The second scenario involved increasing the maximum capacity allowed by the system over time. This option was referred to as the 10 MWe gross scenario (which assuming binary technology would be roughly eight (8) MWe net power capacity). KUTh assessed that a Takara geothermal generation project could produce 9 to 28 MWe for a 30 year life, using a Binary Organic Rankine power plant. As detailed data on the geothermal resource will not be established until after exploration drilling, Geodynamics have proposed a two stage approach for the operation of the plant. Stage one (1) would involve development of a net five (5) MWe plant to meet base load demand based on grid stability limitations. Stage two (2) would involve development of a second net five (5) MWe plant to meet peak demand and future demand growth, depending on load growth. 3.5.3

Plant Type

In the initial stages of the Project, both binary and flash plants were considered. Flash plants involve geothermal fluids at temperatures greater than 182°C being pumped under high pressure into a tank at the surface held at a much lower pressure, causing some of the fluid to rapidly vaporize, or "flash." The vapor then drives a turbine, which drives a generator (U.S. Office of Energy Efficiency and Renewable Energy, 2014). The principle of a binary type geothermal power plant is to use a geothermal resource (steam or hot water), as a heating source to evaporate a low boiling point fluid (‘working fluid’), which drives a turbine to produce electricity. Binary plants can typically operate with geothermal fluid temperatures ranging from 85°C to 170°C (Maghiar and Antal, 2001). The temperature at Takara will not be known until following exploration drilling, but is expected to be in this range. Chapter 3 – Project Justification 12

Binary technology is typically more expensive than flash technology, however, binary technology was selected as the option deemed best suited to the expected range of resource temperatures at Takara. This temperature range is considered to be between 165°C and 180°C (Pollack, 2010). Similarly, Bath et al (1986) considered the base temperature at Takara to be up to 174°C. Binary technology is also deemed more appropriate than flash technology as it allows for considerable control over plant output. 3.5.4

Cooling Options

Three options for cooling were considered, these included dry air cooling, cooling towers and oncethrough sea-water cooling. Dry Air Cooling would include a bank of fin-fan coolers within the plant site. Air-cooled systems require a parasitic load to power the fans and are influenced by seasonal changes in air temperature. For a plant of this size, this option is considered the most likely and this type of cooling is frequently packaged with power plant equipment by the main manufacturers in the industry. Evaporative Cooling would incorporate one or more cooling towers within the plant site supplied by a cross-country water supply pipeline from Epule Creek, located approximately six (6) km’s south of the site. The availability of a reliable, clean water source is a requirement for this option. This option is considered less likely than dry-air, but more likely than sea-water cooling. Seawater Cooling would involve the construction of twin pipelines from the plant site to sea via the existing ‘Tarkara Landing’ reef crossing. The cooling water would then be discharged directly to the sea via an underwater pipeline and diffuser located in deeper water to allow sufficient thermal mixing within the water column. This option is least likely, however has been considered. This ESIA has assessed all three options for cooling, however the dry air cooling is considered the most likely option. The final option will be determined prior to construction based cost, and the environmental and social impacts associated with each option. 3.5.5

Network Scenarios

Network connection infrastructure is required to connect the power plant to the existing network. The transmission powerline connection was excluded from the ToR for this ESIA. In the Castlerock (2012) analysis of transmission routes during the initial planning stages, two alternative routes for the locations of the transmission lines linking the Project to Port Villa were considered; one along the existing Ring Road, and one through the interior of the island. Although the 43km Efate Ring Road route was considerably longer than the 20km interior route, it was determined that that costs of running the transmission circuit through the existing road corridor would be significantly less than the cost of establishing a new corridor through the interior. Subsequently, UNELCO have extended construction of the powerline easement in north Efate following the Ring Road (Castlerock, 2012). 3.5.6

The Option of Not Proceeding

In the event that the Project does not proceed, geothermal power would not be used to supplement Efate’s electricity supply. The current reliance on diesel generation would continue, with the stated Project benefits in Section 3.7, would not be realised.

3.6

Project Site Selection

3.6.1

Exploration and Production Drilling

The location of potential geothermal areas was previously identified by KUTh during compilation and assessment of previous geothermal exploration data, including resistivity data, aerial magnetics, spring geochemistry and geological mapping. This was followed in late 2009 by a 3D magneto telluric survey and a shallow soil temperature/CO2 flux survey in 2011-2012. This data identified three potential geothermal targets: 

In the low hills near Mt Fatmalapa and Quoin Hill (Target A);



Inland approximately midway between Target A and Target C (Target B); and Chapter 3 – Project Justification 13

ď&#x201A;ˇ

Near sea-level at Takara close to hot springs (Target C).

These target areas are shown on Figure 2-1, Chapter 2. KUTh reported the potential net power production estimates for each of the three targets. Table 3-2 indicates the probability that each prospect would yield the power indicated. A value of probability P10, P50 or P90 indicates that there is a 10%, 50% or 90% probability that the resource contains at least that amount of energy. A P90 value is more conservative than a P10 value and represents a conservative assumption for development purposes. Table 3-2 Estimates of Power Output Distributions at Each Prospect (KUTh, 2010) Target Zone

Estimated Power Plant Capacity (MWe) P10

P50

P90

7.4

9.6

Total Mean Value

83MWe

The Castlerock Report (2012) stated that Target A could be a former geothermal area which is currently inactive. The surface mapping undertaken suggested the area had been uplifted exposing the original reservoir with no surface expressions. Target B, which was identified from the 3D magneto telluric survey had no other supporting evidence of geothermal activity. Target C was assessed as having the highest priority as it provided the strongest evidence for an active geothermal system, as well as better access for drilling. Consequently Target C (Takara) was selected for initial development because of ease of access, strong indicators of a commercially viable resource and the ability to support the proposed development of an initial 4 MWe net off-take, with the possibility of further expansion to a second similar unit in the near future. Target B (Central) was identified as the preferred secondary target to support production at Takara because of the ease of supplying a single plant at Takara from that location. The first phase of the Project will involve exploration drilling and confirmation of the geothermal resource. The exploration drilling program well locations within Target C i.e. Zones A, B and C and a fourth site, located at either Zone D or a location on the airstrip (refer Figure 4-1, Chapter 4). The second phase of the Project will involve the drilling and testing of production and reinjection wells to provide sufficient fluid to commission the geothermal power plant. For the purposes of this ESIA, the production wells have been assumed to be at the same locations as the five exploration wells. Therefore the production wells will potentially be located at Zones A, B, C, D or a location on the airstrip, and the injection well at Zone E (Figure 4-1, Chapter 4). The exact location of the production and re-injection well will not be determined until after the exploration drilling and analysis has occurred. 3.6.2

Geothermal Plant

The proposed site of the geothermal plant has been located at the western end of the airstrip, as the requirement for bulk earthworks at this location is minimal and has less social and environmental impacts, as well as natural screening from the Ring Road. This proposed location in relation to Takara and the associated infrastructure is shown in Figure 4-1, Chapter 4. A single laydown area for all exploration and production drill sites has been located towards the northeastern end of the cleared airstrip adjacent to the Ring Road. This site has been selected for its proximity to the Ring Road and avoidance reduced environmental and social impacts. It is noted that at this stage of the Project, prior to the confirmation of the resource following exploration drilling and any detailed engineering design, the specific location of the Plant has not been confirmed.

Chapter 3 â&#x20AC;&#x201C; Project Justification 14

3.6.3

Pipelines and Associated Infrastructure

The proposed location of the Project pipelines and associated infrastructure is shown in Figure 4-1, Chapter 4. The steamfield pipeline routes have been selected based on a connection between the production and reinjection wells and the geothermal plant. If the seawater cooling option is selected, it would involve the construction of twin pipelines from the geothermal plant site to the ocean for potential discharge of heated cooling water. A desktop assessment with ground surveillance was undertaken to determine a location for the ocean outfall. Areas to the north of the site were not considered viable with the length of mangroves and reef habitat that would need to be crossed. Areas further south had similar issues with reef crossings. The Takara Landing crossing was chosen as a channel had previously been constructed through the reef thereby reducing the environmental impacts to construct an ocean outfall. If the seawater cooling option is considered during detailed detail, further analysis of a potential pipeline routes will be considered in consultation with the community. Water supply required for production drilling would be sourced from Epule Creek using a water supply pipeline near the Efate Ring Road (see Figure 4-1, Chapter 4, for location of the water supply site). This pipeline route was selected to follow the existing Ring Road as the pipeline can be laid adjacent to the road easement thereby reducing vegetation clearing and the crossing of people’s properties.

3.7

Project Benefits

3.7.1

Relative Significance of Project

Vanuatu The Project has an estimated total capital expenditure (CAPEX) in the order of AUD$40 million, including all the Project phases for Stage one (1) of a 5 MWe geothermal plant. This CAPEX expenditure will include specialist services such as a drilling rig contractor and drilling services companies with supply of drilling materials and equipment, construction and supply of the geothermal equipment and installation. The expenditure will be spent on technical specialist equipment, supplies and personnel that are mostly not available in Vanuatu. However, where possible, contracting services and supplies will be sourced from within Vanuatu. Vanuatu’s GDP in 2013 was $821 (US$M) and a forecast of $852 (US$M) in 2014 (DFAT, 2014, IMF, 2014). With the majority of the CAPEX spent outside of Vanuatu, Project is likely to have a low to negligible contribution to the Vanuatu economy through increasing the regional, island or national gross product and employment. The Project will reduce the carbon intensity of electricity generation in Vanuatu and has the potential to reduce GHG emissions from the existing electricity network (see ESIA Appendix D – Air Quality Technical Report). With minor operational GHG emissions associated with the Project, there would be an ongoing benefit for Vanuatu’s GHG emissions into the future, which would increase after the implementation of Stage 2. There is the potential for a reduction in electricity prices in the energy market as a result of the Project with the geothermal cost of electricity generation, with flow on benefits to domestic and business customers. The Project will also contribute to Vanuatu’s Energy Roadmap goal of self-sufficiency for energy with a reduction in reliance on imported diesel at uncontrolled prices and supply for power generation. Efate The most significant potential benefit of the Project to the island of Efate is the provision of an alternative electricity supply and the potential a reduction in the proportion of the existing diesel generated electricity.

Chapter 3 – Project Justification 15

There may be limited opportunities during earthworks for drilling or construction of the Project to provide earthmoving equipment or contracting. However, the majority of employment will require specialist fields of technical expertise that availability on Efate. Where possible, local labour or contractors will be used, however these opportunities are limited. The opportunities for improved standard of living as a result of improved access to non-essential goods and services are also limited. The attraction of investment directly to the region as a result of the Project is unlikely in either Efate or Vanuatu. However, there is the potential for indirect investment with developments in Efate due to the confidence shown from an Australian listed company making an investment in Vanuatu. There is also the possible direct attraction of a commercial electricity user investing in Efate with supply from the geothermal plant in the medium to long-term. Takara Area Local Project benefits in the Takara local will be limited, as subsistence farming and fishing are the main sources of livelihood (DFAT, 2014). However the small workforce required for the construction of the Project may involve some labour from residents in the local Takara area. Additionally, any transient employees, consultants or contractors working on the Project will increase the demand on local businesses such as the Beachcomber Lodge, if used for accommodation. Potential upward pressure on the price of goods or services in the short to medium term and increased demand on infrastructure is unlikely with the relatively small scale of the development. 3.7.2

Supply of Goods and Services

As Vanuatu's economic growth is driven largely by tourism these opportunities may be limited. Tourism and tourism-related services sectors (wholesale and retail trade, hotels and restaurants, and transport and communication) account for approximately 40 per cent of GDP and one third of people in formal employment (DFAT, 2014). The Project workforce during drilling will be working a roster and then travel back to their homebase and therefore will have limited opportunities for spending. There is however potential for tourism operators to provide services such as catering and cleaning services, labouring and supply of some materials for use with CBPâ&#x20AC;&#x2122;s. Where possible, local goods and services will be sourced locally from Efate and specifically the Takara area if available. 3.7.3

Economic and Business Impacts

Short-Term Geodynamics has committed to using local businesses to supply the Project where possible. Short term economic impacts of this will include increased opportunities for these local businesses such as the Beachcomber Lodge, the Takara corner store, and local suppliers of fruit and vegetables for catering. Local businesses in the area will also be supported by the establishment of the CBP (refer Section 3.5.1). Direct and indirect employment associated with the Project will be limited. Skills demand during drilling and construction of the Project will be quite specialised, however there is potential for Vanuatu personnel to be trained in the medium term as operators at the geothermal plant. The positions for drilling will require specialist skilled staff, including reservoir engineers with specific equipment which would be supplied as a contract package. Construction of the project would require plant operators, surveyors, electrical and instrumentation technicians, engineers, and licenced electricians. During operations the Project would require specialist production technicians and operators, control room technicians, and production and mechanical engineers. Whilst these positions are unlikely to be filled by local community members, they still may represent a positive impact to the community through the flow-on effects in the supply chain. There may be a short-term negative impact associated with the loss of areas currently used for subsistence gardening during drilling and construction for the Project. However as the disturbance areas will be offset, other gardens will be able to replace those lost.

Chapter 3 â&#x20AC;&#x201C; Project Justification 16

Additionally, the Project may potentially cause negative impacts to salaries in the Takara area from the Community Benefits Program during drilling and construction. Mitigation measures will be implemented to ensure local wages are maintained. The Community Benefits Program will be run with an emphasis on delivering meaningful projects to community with involvement, rather than increasing wages to unrealistic levels. Long-Term In addition to the direct economic benefits outlined above, there will be broader benefits to the Country in the form of royalty revenues and taxes associated with the generation of electricity at the Project. As the project will generate domestic power only, there will be no export income directly attributed to the Project, however the indirect impacts to the economy may support local business who export products. 3.7.4

Need for Additional Infrastructure to Support the Project

Additional infrastructure outside of the scope of this ESIA will be required to support the Project. This will include a transmission powerline to distribute the electricity to market. While the powerline is not part of the scope of this ESIA as it was excluded from the Terms of Reference by the DEPC (refer Section 4.6.3), it would still have positive economic impacts to the community. The construction of the powerline would employ a number of people and once operational, would provide power to areas of Efate that were previously not connected. 3.7.5

Future Development in North-East Efate

The Project area in north-east Efate is currently not a highly developed region. Potential future development in this area as a direct result of the project or from other geothermal prospects are limited, however indirect impacts may include tourism tours of the plant and education on geothermal energy. 3.7.6

Impact of Living Standards in Local, Regional and Country Level

The project will deliver a reliable source of cost-effective baseload power to areas of Efate that have previously relied on alternative sources of power. High income households that are not connected to the grid typically utilize petrol generators and LPG to meet their electricity needs, however low income households typically on kerosene, candles, and wood or coconut shells. The provision the electricity to these areas will reduce the risks associated with storing hydrocarbons, and having open fires in residential areas. The provision of a reliable energy source will also open up more possibilities for industry and tourism in the north of Efate, increasing employment opportunities, as detailed in Section 3.5.3.

3.8

Project Impacts â&#x20AC;&#x201C; Environmental and Social

The potential environmental and impacts of the Project are assessed in Chapter 6 and 7 of this ESIA. With the implementation of the ESMMP to mitigate potential and expected impacts associated with the Project, all impacts are within an acceptable range. Significant social impacts and risks will additionally be managed through a compensation strategy for any direct loss, a Community Benefits Fund to offset indirect impacts and a long-term Kastom Owners Trust established to provide economic benefit to the Kastom Owners over the life of the Project. The majority of environmental and social impacts are temporarily associated with the drilling and construction phases. During operation of the geothermal plant, local impacts are expected to be minor to the immediate environment and community.

Chapter 3 â&#x20AC;&#x201C; Project Justification 17

3.9

Project Justification Summary

As stated in the World Bank report (2011), “the analysis concludes that geothermal power from Takara is the least-cost power supply addition for Efate”. A summary of the Takara Geothermal Project benefits includes the following: 

Only viable option to achieve the NERM renewable targets;



Reduction in overall greenhouse gas emissions by Vanuatu through the displacement of diesel power generation with a lower carbon footprint geothermal energy generation;



Base load power generation that is renewable energy;



Increase in energy security through reduced reliance on imported diesel;



Contribute to Vanuatu’s Energy Roadmap goal of self-sufficiency for energy with a reduction in reliance on imported diesel for power generation;



Potential for reduction in electricity prices in the energy market from the geothermal cost of electricity generation, with flow on benefits to domestic and business customers;



Reduce volatility in electricity prices due to offsetting a portion of the diesel supply costs;



Potential attraction of further ‘green energy’ or power customer investment in Vanuatu with confidence generated by the geothermal Project;



Business opportunities during drilling and construction for supply of services; and



Community Benefits Program and Kastom Owners Trust established for community projects.

Chapter 3 – Project Justification 18

CHAPTER

Project Description

Table of Contents 4

PROJECT DESCRIPTION

4.1

Project Overview

4.2

Proposed Schedule

4.3

Exploration Drilling 4.3.1 Overview 4.3.2 Mobilisation to Site 4.3.3 Site Preparation and Drill Pad Layout 4.3.4 Drilling 4.3.5 Well Testing 4.3.6 Drill Pad and Access Tracks Clearing and Rehabilitation

6 6 6 7 9 11 12

4.4

Production Drilling 4.4.1 Overview 4.4.2 Mobilisation to Site 4.4.3 Site Preparation and Drill Pad Layout 4.4.4 Drilling 4.4.5 Production Drill Pad and Access Tracks Clearing and Rehabilitation

13 13 14 14 14 16

4.5

Geothermal Plant and Steam Field Construction 4.5.1 Geothermal Plant Construction 4.5.2 Construction Services 4.5.3 Geothermal Fluid Steam Field and Piping 4.5.4 Seawater Pipeline

16 16 17 17 18

4.6

Geothermal Plant Operation 4.6.1 Overview 4.6.2 Geothermal Power Plant 4.6.3 Geothermal Plant Process Specifications 4.6.4 Geothermal Plant Process Options 4.6.5 Geothermal Steam Field 4.6.6 Electrical Transmission Connection 4.6.7 Transportation Logistics 4.6.8 Workforce

19 19 20 24 24 27 27 28 28

4.7

Transport

4.8

Aviation

4.9

Inventory of Fuels, Chemicals and Hazardous Substances

Chapter 4 - Project Description

Table of Contents 4.10 Waste Generation and Disposal

4.11 Decommissioning and Rehabilitation

TABLES Table 4-1 Summary of Project Details Table 4-2 Estimated Project Schedule Table 4-3 Exploration Drilling: Land-use Type and Amount of Clearing Table 4-4 Geothermal Plant Process Specifications Table 4-5 Transport Trips during Project Phases Table 4-6 Summary of Transport Trips During Project Phases Table 4-7 Inventory of Fuels, Chemical and Hazardous Substances Table 4-8 Waste Generation and Disposal

2 4 13 24 29 30 31 34

FIGURES Figure 4-1 Project Description Summary Figure 4-2 Drill Pad Layout Figure 4-3 Laydown Area Layout Figure 4-4 Major Components of a Typical Drill Rig Figure 4-5 Typical Production Well Design Profile Figure 4-6 Geothermal Fluid Pipeline Figure 4-7 Seawater Pipeline Figure 4-8 Summary of a Binary Cycle Power Plant Figure 4-9 Geothermal Plant Layout (Air Cooled) Figure 4-10 Geothermal Plant Layout (Seawater Cooled) Figure 4-11 Geothermal Plant Process Flow Diagram (Air Cooled)

Chapter 4 - Project Description

5 7 8 10 15 18 19 20 22 23 26

PROJECT DESCRIPTION

4.1

Project Overview

This Chapter describes the proposed phases of the Project, including: 

Exploration drilling and confirmation of the geothermal resource;



Production drilling of producing and injection wells;



Geothermal plant, pipelines and associated infrastructure construction;



Operation of the geothermal plant, including:



Stage one development of a net 5 MWe plant to meet base load demand; and

Stage two development of a second net 5 MWe plant to meet peak demand and future demand growth;

Decommissioning and rehabilitation of the geothermal plant, pipelines and associated infrastructure.

The proposed location of the Project exploration and production wells, geothermal plant, pipelines and associated infrastructure is located in Figure 4-1. At this stage of the Project, prior to the confirmation of the resource following exploration drilling and any detailed engineering design, the specific location of this infrastructure is not known. This ESIA has therefore assumed the likely location based on the current information available within the study area. The Project wells, geothermal plant and associated infrastructure are shown in Figure 4-1. A representative photo example of the drilling rigs, geothermal plant and some of the infrastructure are also provided as a guide. The geothermal target zones within the study area are geophysical areas of interest that will be further assessed prior to and following exploration drilling. The target zone areas are labelled Zones A, B, C, D and E, with potential drill pads and flowlines linking the locations to the geothermal plant. The locations of these wells, flowlines and plant will not be determined until following the exploration drilling and detailed engineering design. Table 4-1 describes a summary of the Project phases and specification details for Stage one (1), with explanation in more detail within this Chapter.

Chapter 4 - Project Description 1

Table 4-1 Summary of Project Details Project Phase

Details

Project Overview Project Size - geothermal plant electricity generation

Five (5) MWe (Stage one (1)), 5 MWe (potential Stage two (2))

Exploration Drilling Number of exploration wells

One (1) to four (4)

Assumed size of exploration drill pads

60 x 60 m each

Location of 1200-1500m deep exploration wells

Zones A, B, C and Zone D or a location on the western end of the airstrip

Drilling fluid sump volume

30 x 15 x 1.5 m deep for each well site

Drilling water source

During exploration drilling, seawater will be sourced via a temporary water supply pipeline from the mouth of Epule River. Freshwater will be tankered from further upstream of Epule River.

Consolidation (cementing)

grouting

Drilling water take volume

Grouting may be applied for all exploration wells. This involves drilling slim hole stabilisation wells and filling the hole with grouting (cement), surrounding a well for stabilisation. 300 m3 supply per well (freshwater during drilling); plus 1,000 m3 per day over 20 days (seawater during drilling of the reservoir section).

Geothermal fluid produced during exploration well test and disposal method

400 m3 â&#x20AC;&#x201C; preferred disposal re-injection to reservoir or possible disposal to ocean under controlled conditions

Geotech bores

May be required as part of the exploration drilling phase. Would involve drilling to 50m depth, at the above-mentioned locations.

Size and location of laydown yard

Drilling equipment and consumable storage. A cleared area of 60 x 80 m would be required adjacent to the airstrip

Production Drilling Number of production wells

Two (2) (assumed for Stage 1) to four (4) wells

Assumed size of production and injection drill pads

100 x 100 m each

Location of production wells

Zones A and B or locations on the airstrip

Number of injection wells

One (1) (assumed from Stage 1) to two (2) wells

Location of injection wells

Zone E

Drilling water source

During production drilling, seawater will be sourced via a temporary water supply pipeline from the mouth of Epule River. Freshwater will be tankered from further upsteam of Epule River.

Chapter 4 - Project Description 2

Project Phase

Details

Drilling water take volume

1,500 m3 supply per well (freshwater during drilling); plus 3,600 m3 per day (maximum) over 20 days (seawater during drilling of the reservoir section).

Geothermal fluid produced during production well test

400 m3 - preferred disposal re-injection to reservoir or possible disposal to ocean under controlled conditions

Consolidation (cementing)

Grouting may be applied for all production well pads. This involves drilling slim hole stabilisation wells and filling the hole with grouting (cement), surrounding a well for stabilisation.

grouting

Geothermal Plant Probable Station

location

Power

Size of power station footprint

Western end of airstrip (see Table 4-1)

120 x 50 m (for air cooled option) 50 x 70 m (for water cooled option)

Power Plant Technology

Binary (closed-loop organic Rankine cycle)

Nature of produced geofluid

Two phase at surface

Process geofluid flow

Re-injected geo-fluid within a ‘closed’ process loop.

Separation philosophy

Wellhead separators with separate gas and liquid above-ground flowlines to plant

Well Lift

Assumed to be free-flow under artesian pressure. No down hole pumps are anticipated.

Reinjection requirement recharge reservoir Plant cooling philosophy

Pipelines

Assumed to be 100% of liquid production flow. Non-condensable gases will be vented. All of the following options are being considered: 

Dry air cooling with fin-fans;



Evaporative cooling, with water pipeline from Epule River (to the east); or



Seawater cooling, with pipeline to sea via existing Takara ‘landing’ reef crossing.



Seawater – if the seawater cooling option is selected, two (2) below ground inflow and outflow pipelines, each up to 1,000 mm nominal diameter from geothermal plant to Takara landing (offshore).



Flowlines – three (3) to five (5) (depending on separation configuration), above ground flowlines (production and injection wells) x 300 mm nominal diameter from wellheads to geothermal plant.



Water supply - if the evaporative cooling option is selected, one (1) to two (2) below ground pipelines of approximately 6 km’s from Epule River to the geothermal plant (150 mm nominal diameter each).

Chapter 4 - Project Description 3

4.2

Proposed Schedule

An overview of the proposed timeframes for each phase of the Project is presented below in Table 4-2 Exploration drilling is proposed to commence in the fourth quarter of 2014. Drilling activities are proposed to take approximately 60 days at each site, concluding in mid-2015. Subject to the outcomes of the exploration drilling and evaluation of the geothermal resource, construction activities are expected to commence in 2016 and take approximately 24 months. The geothermal power plant is expected to commence operations in 2018. Table 4-2 Estimated Project Schedule Phase

Aspect

Commencement

Concludes

Environmental and Social Impact Assessment (ESIA) Process

April 2014

September 2014

Exploration drilling - mobilisation, site preparation, well construction, drilling and well testing

Q4 2014

Q2 2015

Evaluate geothermal resource

Q1 2015

Q2 2015

Production drilling and well testing

Q3 2015

Q4 2016

Construction and plant commissioning

2016

2017

Operation

2018

30 year plant design life

Chapter 4 - Project Description 4

228000

229000

230000

Beachcomber Resort

8059200

Zone E Ring Road

Takara

Alternative Exploration Site to Zone D

Takara Landing

Zone A

Zone C

1. Efate Island - Vanuatu

2. Exploration Drill Rig

3. Production Drill Rig

4. Geothermal Power Plant

5. Steam Piping Connecting Steam Field

6. Steam Pipe with Expansion Joint

Zone B

8057200

8058200

H:\Projects-SLR\630-SrvNTL\620-BNE\620.11005 Proposed Takara Geothermal Project\Figures\ArcGIS\SLR62011005_ProjectDescriptionA3_04.mxd

Baofatu

Rin g

Zone D

Quoin Hill

Sara

LEGEND Steam Piping Connecting Steam Field (5, 6) Water Supply Pipeline Seawater Cooling Pipeline (if required) Laydown Area Epule

Geothermal Power Plant Site (4) Exploration Drill Pad Sites (2) Production Well Pad Sites (3) Injection Well Pad Site

Water Supply Pipe Sara - Takara

Takara Abandoned Airstrip

Drawn: Scale:

1:12,500

Projection:

Date:

Sheet Size:

25/06/2014

WGS 1984 UTM Zone 59S

The content contained within this document may be based on third party data. SLR Consulting Australia Pty Ltd does not guarantee the accuracy of such information.

250

ÂŠ

Project Description 500

750

FIGURE 1

4.3

Exploration Drilling

4.3.1

Overview

The first phase of the Project will involve exploration drilling and confirmation of the geothermal resource. The exploration drilling program will involve the drilling of one (1), and potentially up to four (4) geothermal exploration wells in the Takara area. The exploration wells are likely to be focussed within the target areas, located at Zones A, B and C and a fourth site, located at either Zone D or a location on the airstrip (refer Figure 4-1). The aim of the exploration drilling program will be to obtain temperature and pressure profiles, assess permeability, and obtain samples of fluids and rock formations at depth to determine the potential geothermal resource. The exact locations of the proposed drill holes within each of the proposed zones is still to be determined, and will be constrained by surface geo-thermal ‘hot-spots’ and environmental considerations in the area. The drilling sequence of the Zones has yet to be determined. Each well will take approximately 50 80 days to complete, and drill to a depth of approximately 1,500 m. Construction of the corresponding access tracks for each well will be undertaken prior to the commencement of the drilling program. Site preparation works and mobilisation activities will proceed during daylight hours only, however exploration drilling will be undertaken seven days per week, 24 hours per day. Exploration drilling preparation will comprise the following tasks: 

Mobilisation of people, machinery and equipment to Efate; and establish sea and road transport routes or temporary ocean landing area to Takara; and



Preparation of site including clearing vegetation and levelling site to construct drill pads, drilling sump and storage ponds, lay-down area, workers camp, water supply and temporary access roads.

Exploration drilling activity will comprise the following tasks: 

Drilling;



Well testing; and



Drill pad and lay down area rehabilitation.

An estimated schedule for completing the exploration drilling for each well, includes the following: 

Preparation of site, construct well pad and access tracks and establish temporary workers camp – 25 days;



Mobilise rig to site – 5 days;



Complete exploration drilling – 50- 80 days; and



Well testing – up to 20 days.

4.3.2

Mobilisation to Site

The HanJin drill rig proposed for exploration drilling is a track-mounted mobile unit that is supported by two track-mounted carrier vehicles, a tracked excavator / front end loader (also usable for lifting), and four wheel-drive or all terrain light vehicles. An example photo of the rig is shown in Figure 4-1. All of these vehicles will convey themselves and sundry drilling equipment such as mud tanks from the laydown area to the drill sites. The equipment will be transported from Port Vila port or an alternative local barge landing, to the laydown area via semi-trailers and low loaders. Subsequent deliveries of fuel, drill pipe and other consumables will follow a similar journey. Mobilisation will occur during daylight hours only.

Chapter 4 - Project Description 6

Each well site will enter the drilling phase sequentially, with the drill rig at any one site for approximately 50 â&#x20AC;&#x201C; 80 days. 4.3.3

Site Preparation and Drill Pad Layout

Prior to the commencement of exploration drilling, geotechnical data will be utilised to validate the location of the wells. After determining drill pad locations, survey and civil design works will be undertaken, followed by earthworks to clear the drill pads, each covering an area of approximately 60 x 60 metres (3,600 m2). After grading, the drill pads will have a drilling sump excavated, for the collection of waste drilling mud. A "cellar" will be excavated, covering an area of approximately 1 x 2 metres, to a depth of approximately 1 metre. The cellar will be concrete lined and a self-draining pipe will be installed to drain to the sump. An excavator-mounted auger or the HanJin drill rig will drill a starter hole and surface conductor casing will be installed and concreted in place. Figure 4-2 shows the major components of the drilling operation that will be required within the drill pad, including the drill rig, drill pipe rack, drill mud tanks, storage pond, cementing mixing tanks and pumps, chemical and fuel storage, water storage and temporary workshop/office. Figure 4-2 Drill Pad Layout

Workforce The exploration phase will require a drilling workforce of approximately 15 people working 12 hour shifts for 24 hours per day, to operate and maintain the drill rig and associated activities. Each drilling team will remain on site for a roster of approximately 4 â&#x20AC;&#x201C; 6 weeks, after which the team will have leave and another team will rotate to site.

Chapter 4 - Project Description 7

The workforce number will remain steady during the exploration drilling program for the one (1) to four (4) wells. It is likely that a separate temporary workers camp or modification to an existing nearby accommodation with temporary facilities will be used to house the drilling workforce during the drilling program. The workers camp is likely to be located either within the laydown area, or at the existing Beachcomber Resort located nearby to the Takara site. The resort has two existing rooms and kitchen and dining facilities. Temporary accommodation rooms and ablution facilities could potentially be added to the resort for the drilling workforce. Laydown Area A single laydown area will be established for all exploration drill sites during the exploration drilling phase. This laydown area will be used to store equipment and materials associated with drilling activities, and will be located on the cleared airstrip adjacent to the Efate Ring Road. The laydown area will cover an area of approximately 60 x 80 metres (4,800 m2), with an access track to the Efate Ring Road. The laydown area will include a bunded fuel containment area, storage for casing, drilling fluid additives, chemicals, equipment and machinery required during the exploration drilling activities. It is to be located adjacent to the airstrip towards the north-eastern end (see Figure 4-3). This area may also include temporary accommodation for the exploration drilling workforce. Figure 4-3 Laydown Area Layout

Chapter 4 - Project Description 8

Access Tracks Access tracks will be required from the sealed Efate Ring Road to the laydown area and to each drill pad, to allow transport of drilling equipment and materials to the drill pad sites. Where there are existing tracks, these will be widened to accommodate the required vehicles and machinery. Where there are no existing tracks, new tracks will be created. The access tracks will be constructed to 4 m wide. Vegetation will be cleared using earthmoving equipment and chainsaws as necessary. The tracks will then be scuffed to provide sufficient access for the mounted rig. Where necessary, gravel will be used to stabilise parts of the track, and erosion and sediment control measures will be used to prevent erosion of land and siltation of waterways. The nominal access tracks will use existing tracks along the airstrip to the plant site and laydown area. Access to the airstrip will be via the ring road east of zone E, with an existing track turning right prior to the Takara Village. These tracks will be maintained and used as required for the extent of the Project. 4.3.4

Drilling

The exploration wells will be "slim holes" internal diameter 98 mm (4”) at total depth and 445 mm (17.5”) at surface, with a depth of between 1,200-1,500 m. Drilling exploration holes will provide information on the following; 

Down hole temperature and pressure profiles;



Lithological and petrographic information;



Fault identification and orientation;



Location and quantification of permeable zones;



Detailed rock properties;



Productive output; and



Gas and water chemistry of discharged fluids.

Geotechnical bores may also be required as part of the exploration drilling phase which would involve drilling to 50 metres depth, at the above-mentioned exploration locations, prior to the exploration drilling wells. This would be performed with a trailer-mounted rig based in Vanuatu that was used previously for soils and geotechnical drilling as part of the ESIA baseline studies. Drilling Rig The HanJin drill rig is a relatively small track mounted rig with a derrick height of 18 m. This rig will be used to drill exploration wells at each of the drill pad sites within the Project area (Figure 4-1 and Figure 4-4, which shows the major components of a typical drill rig). The rig is self-propelled and will be jacked up above the ground to accommodate the blow-out prevention (BOP) equipment needed to control the expected pressures and fluids within the well. The well is drilled using rotary power at the rig floor, driving the drill pipe and bit (tungsten tipped and diamond coring tools) at depth to cut through rock. Drilling fluid is pumped down through the drill pipe and out the drill bit. The drilling fluid has a number of important roles in the drilling process to lubricant the bit; control pressure within the well (with the weight / density of the fluid); and transport drill cuttings (small pieces of rock), up the annulus of the well (between the drill pipe and the well walls). The drill cuttings are separated from the fluid at the surface and the drilling fluid re-circulated back down the hole. Each well is drilled to a design depth and then steel casing will be run inside the well to stabilise the walls of the well and assist to contain well pressure. This length of casing is then cemented to the inside of the well by pumping cement down the inside of the drill pipe and out of the bottom of the casing and back to the surface to seal the casing. This process is repeated with smaller hole and casing sizes at the necessary depths.

Chapter 4 - Project Description 9

Figure 4-4 Major Components of a Typical Drill Rig

The well pad will have the drilling rig and ancillary equipment as shown in Figure 4-4. This includes the mud system (pumps, mud tanks, cementing system with pumps, tanks amd mixers, site office/workshop, drill pipe and casing racks, fuel, chemical and water storage and fluid ponds for drill fluid waste and cuttings). Chapter 4 - Project Description 10

Safety monitoring systems with warning alarms for high emissions of potentially hazardous gases such as hydrogen sulphide (H2S) will be incorporated as part of the set-up, and appropriate safety procedures for continuous monitoring implemented. Core Sample As the well is being drilled to the required depth, a cylindrical core sample of rock will be taken from a core barrel (in 3 m lengths). An attached core barrel transmits the rotational energy from the rig at the surface to the core bit. When the core barrel is full, a special tool is run on wire inside the core rods and latches onto an inner sleeve of the core barrel, which contains the core sample. This is pulled to the surface when the core sample is laid out in labelled core boxes. Using the wire line an empty inner sleeve of the core barrel is run back into the core barrel to allow further samples of core to be cut. Depending on the hole depth, this process can take about 15-30 minutes to complete. Following the initial coring of the shallow portions of the hole, traditional rotary drilling will be used to expand the diameter of the hole for installation of the casing. Fuels, Chemicals and Hazardous Substances The volume of chemicals and fuels required during exploration drilling are provided in Table 4-7. During exploration drilling, bulk hazardous substances will be stored at the laydown area in a dedicated hazardous substance store, and fuel storage areas. Hazardous substances will be transported and stored at the drilling zones as required in order to limit the volumes of potential spills and potential tampering/vandalism. Spill trays, bunding around containers, and spill kits will also be used to control and minimise any chemical and fuel spillage to ground. Services Electrical power will be required at several sites within the Project area, including the laydown area, the active drill sites, and workers accommodation. A diesel generator will be provided at each of these sites, which will operate 24 hours a day. The total power requirement of the exploration phase of the Project is estimated to lie in the range of three (3) x 50 kVA generators. Telecommunication on the site will be satellite Voice Over Internet Protocol (VOIP), where available with the back-up of mobile phones. Water Supply Water supply is required for the exploration drilling, including mixing of the drilling fluid, cementing the casing and washing equipment. Exploration drilling water will be sourced from Epule River at the Epule Village. Freshwater will be transported via truck tanker to a storage tank located at the laydown area. Salt water will be pumped via a temporary pipeline. Estimates of required water volumes are presented in Table 4-1. Consolidation Grouting Consolidation grouting involves the drilling of multiple shallow holes in a pattern around the proposed drill location. The holes are injected with grout (cement). The pattern of holes typically forms an inverted conical pattern in the soil surrounding the drill site. The practice is employed when the nearsurface geotechnical conditions are weak or unknown. The purpose of this operation is to consolidate the surface soil and rock within this conical zone so that in the unlikely event that a well failure occurs at depth, ejected geofluid, steam and debris is diverted around the consolidated â&#x20AC;&#x153;coneâ&#x20AC;? as it ascends and will emerge a safe distance from the drill rig and its crew. Without this precaution, there is a risk that this ejecta will exit around the drill pipe and casing, which could be dangerous to the drilling crew. Consolidation grouting is a conservative precaution, but considered prudent due to the near surface strata, which in some locations is limestone karst with high porosity and voids. 4.3.5

Well Testing

For well testing, a portable water storage tank (above-ground type) with maximum dimensions of 25 x 25 metres will be erected at the well pad, together with well testing equipment including a cyclone silencer and weir box. A range of tests will be conducted on the well, including open flows to the water storage and gathering of down-hole reservoir data. Chapter 4 - Project Description 11

The permeability of the well will be assessed to determine the productivity of the well. This is completed using an injection test, by pumping water into the well at a range of rates while monitoring the wellhead pressure, followed by a pressure fall-off test. Following this testing, the well is left to reheat. Repeated pressure-temperature logs will be run over a few weeks to monitor the wells. When the well is sufficiently reheated, well discharge tests will be conducted. Wells will be discharged for a period long enough to determine the well productivity and estimate the likely well run-down over time. A short initial discharge will be made to clear the well of debris, and then the well will be discharged into a portable well test atmospheric separator that will enable measurements of flow and enthalpy. The atmospheric separator, also referred to as a silencer, separates mixed fluid into steam and brine, while reducing much of the noise from the steam discharge to the atmosphere. At the same time, it also allows brine flows to be measured via a built-in weir box. The well discharge test is run until stable conditions are obtained, which can take up to 20 days. Once the well has stabilised, samples of the discharge water and any separated steam will be collected for chemical analysis. Produced geothermal fluids will be captured and stored in a lined tank within the drill pad site. The geothermal fluids will either be re-injected back into the geothermal reservoir (preferred option), or potentially discharged to the marine environment under controlled conditions. A decision on the method of disposal will only be made following testing of the reservoir to allow for re-injection. The lined pit will be designed to be of sufficient size to capture the total volume of geothermal fluids during each well test, with an industry standard amount of freeboard for rainfall events. Following exploration drilling, the drilling storage sump (unlined pit within the drill pad containing drilling muds), is encouraged to dry out through evaporation and soakage and is eventually filled in as part of remediation of the drill pad. This is separate from the lined tank containing the geothermal fluids produced during well testing, as discussed above. 4.3.6

Drill Pad and Access Tracks Clearing and Rehabilitation

Table 4-3 describes the amount of earthworks and vegetation clearing that may be required for the drill pads and access tracks from the airstrip area. The location of the access tracks has not been determined, therefore a straight track from the airstrip area to the drill pad has been assumed. Figure 4-1 shows the approximate location of the geothermal resource Zones and drill pad locations.

Chapter 4 - Project Description 12

Table 4-3 Exploration Drilling: Land-use Type and Amount of Clearing Well Site and Access Track

Land-use

Approximate Earthworks (m3) and Clearing (m2)

Zone A – drill pad

Market Garden

Clearing – pad 3,600 m2 and track 600 m2

Access track (150 m)

Vegetation habitat

Zone B – drill pad

Market Garden

Access track (550 m)

Vegetation habitat

Zone C – drill pad

Market Garden

Access track (300 m)

Vegetation habitat

Zone D – drill pad

Market Garden

Access track (900 m)

Vegetation habitat

Airstrip (potential forth well at Zone D or airstrip) – drill pad

Cleared grassland of airstrip

Clearing – pad 3,600 m2 and track 2,200 m2

Clearing – pad 3,600 m2 and track 1,200 m2

Clearing – pad 3,600 m2 and track 3,600 m2

Clearing – pad 3,600 m2 and no track to be cleared

Access track – no track as access via existing tracks TOTAL 1

2 2 Clearing – pad 14,400 m and tracks 7,600 m 2 (Total - 22,000 m )

Notes: 1. Total clearing assumes Zone D is the well drilled and therefore amount of clearing i.e. reduced to 10,800 m2 for drill pad and 4,000 m2 for access tracks if a well is drilled on the airstrip and not Zone D (Total 2 14,400 m ).

Upon completion of exploration activities, drill pads and access tracks that will not be required for production drilling or geothermal plant infrastructure will be rehabilitated to the existing land-use according to the Environmental and Social Management and Monitoring Plan (ESMMP). The exploration drill pads will be fully rehabilitated.

4.4

Production Drilling

4.4.1

Overview

The second phase of the Project will involve the drilling and testing of production and reinjection wells to provide sufficient fluid to operate the geothermal power plant. The production wells will to potentially be located at Zones A and B or a location on the airstrip, and the injection well at Zone E (Figure 4-1). The aim of the production drilling program will be to access and collect fluid from the geothermal reservoir through the production wells to supply the geothermal plant. The injection wells will dispose of geothermal brine after geothermal energy has been extracted. The exact location of the production and re-injection well will not be determined until after the exploration drilling and analysis has occurred. The drilling sequence of the production wells has yet to be determined. Each well will take approximately 180 days to complete, and drill to a depth of at least 1,500 m to 2,000 m. The well design will only be finalised following analysis of the exploration program. Site preparation works and mobilisation activities will proceed during daylight hours only, however production drilling activity would be undertaken seven days per week, 24 hours per day. Where possible, access tracks and drill pads used during the exploration phase will be re-used to minimise land disturbance and disruption to market gardens. During the life of the geothermal power plant, declining output from the wells supplying the plant may mean that it may be necessary to drill additional production make-up wells. An estimated schedule for completing the production drilling for each well, includes the following: Chapter 4 - Project Description 13



Preparation of site, construct well pad and access tracks and establish temporary workers camp – 25 days;



Mobilise rig to site – 5 days;



Complete production drilling – 160 days; and



Well testing – up to 20 days.

The production drilling program will be similar to the exploration program in the preparation and activities to be completed. The following sections will highlight Project description areas that are different. 4.4.2

Mobilisation to Site

The production drill rig is a larger unit than the track-mounted rig used for exploration as the well is a larger diameter and therefore requires more power output to drill. An example photo of the production rig is shown in Figure 4-1. The equipment for the rig will be transported from Port Vila port or an alternative local barge landing, to the laydown area via semi-trailers/floats. Subsequent deliveries of fuel, drill pipe and other consumables will follow a similar journey. Mobilisation will occur during daylight hours only. 4.4.3

Site Preparation and Drill Pad Layout

The production wells will use the existing exploration drill pads where possible, with a larger area of 100 x 100 metres (10,000 m2). A new "cellar" will be excavated, covering an area of 1 x 2 metres, to a depth of approximately 1 metre, but otherwise using the same area for the production well. The injection well will require the same site preparation as a new production well. Figure 4-4 shows the major components of the drilling operation, which is the same as the exploration well. The production well will likely require a larger storage pond to allow for additional production water during well testing. Workforce The production phase will require the same drilling workforce as exploration of approximately 15 people working 12 hour shifts for 24 hours per day, to operate and maintain the drill rig and associated activities, with similar accommodation options required. Laydown Area The single laydown area from the exploration wells will be utilised of approximately 60 x 80 metres (4,800 m2), with an access track to the Efate Ring Road. Access Tracks Existing access tracks from the exploration program will be utilised from the sealed Efate Ring Road to the drill pad sites and laydown area. The tracks layout will be determined during engineering design. The tracks will be maintained and used as required for the extent of the Project. 4.4.4

Drilling

Drilling Rig The production drill rig is larger than the Hanjin rig (track mounted), used for drilling exploration wells, as the production and re-injection wells are a larger diameter requiring more power and also a larger BOP. The rig has a derrick height of about 52 m (full jack up height). This rig will be used to drill production and injection wells at each of the drill pad sites within the Project area (refer to Figure 4-1). Figure 4-4 shows the major components of a typical drill rig. The principles of drilling are the same as for the exploration wells, with the key difference being the well design. As these wells will need to produce geothermal fluids they are designed and constructed with production liner inside the larger diameter casing. An example of a typical well design with the diameter for drilling, casing and the ‘slotted’ liner for production are shown in Figure 4-5. Chapter 4 - Project Description 14

Figure 4-5 Typical Production Well Design Profile

The well pad will have the drilling rig and ancillary equipment as shown in Figure 4-2. The same equipment will be required for the production and injection wells, with larger sizes of pumps and equipment required. Upon completion of drilling, the wells will receive a wellhead and drilling equipment will be demobilised from the well pad. Fuels, Chemicals and Hazardous Substances The volume of chemicals and fuels required during production drilling are provided in Table 4-7. The storage locations for chemicals and materials will be secured where practical to avoid potential tampering with hazardous substances. Services Electrical power generation required during the production drilling will be in the range of two (2) x 1000 kVA generators. Chapter 4 - Project Description 15

Water Supply Water supply is required for the production drilling, and will be sourced from Epule River. During well testing, there will be a requirement for up to 3,600 m2 of seawater per day over 20 days, which will be sourced via a water supply pipeline installed from Epule River near the Efate Ring Road six (6) km’s from the laydown yard (see Figure 4-1 for location of water supply site). The pipeline would be a temporary plastic pipe with a nominal diameter of 110 mm placed above ground along a route following the Efate Ring Road to the laydown area to fill a lined tank. Approximately, 300 m3 per day per well of freshwater is expected to be required from Epule River during the production phase of the Project. When freshwater is required for production drilling, this will be sourced further upstream of Epule River at the Epule Village, and tankered to site and stored in the lined tank at the laydown area. Consolidation Grouting Consolidation grouting has been described in the exploration drilling section and will be used for the production wells as appropriate. Well Testing For well testing of the production and injection wells, similar well testing to the exploration wells will be performed, however with more emphasis of the production testing of flow from the geothermal reservoir. As for exploration, the produced geothermal fluids will be captured and stored in a lined tank within the drill pad site. The geothermal fluids will either be re-injected back into the geothermal reservoir (preferred option), or potentially discharged to the marine environment under controlled conditions. A decision on the method of disposal will only be made following testing of the reservoir to allow for reinjection. This will be conducted during the drilling of the first exploration well. 4.4.5

Production Drill Pad and Access Tracks Clearing and Rehabilitation

In term of earthworks and land-use clearing required for the production drill pad and access tracks, it is likely that the drill pads used will be at the exploration drill pad locations, with an additional size required. The production and injection drill pads are 100 x 100 m in area, which is a total of 10,000 m2 per well. Each production well drill pad will aim to use an existing cleared exploration drill pad site of 3,600 m2, therefore requiring an additional 6,400 m2 of clearing per well. Existing access tracks from the exploration wells will also be used. Upon completion of production drilling activities, surface disturbance that will not be required as part of the operational activities will be rehabilitated in accordance with the mitigation controls within the ESMMP. There will be two (2) production wells and one (1) injection wells required for the operation of the initial geothermal plant. An area of approximately 10 m x 10 m area will be required for access to each well head, with some additional area for a potential storage sump and an access track maintained for vehicles to the wells. Therefore, the remaining area not used for the well heads will be rehabilitated and returned to its previous land-use of garden or native habitat. If the Project does not proceed to operational activities, the wells will be capped and rehabilitated in an environmentally responsible manner and with due consideration to the community, and rehabilitated in accordance with the ESMMP. Details of site rehabilitation should the project proceed to operational activities are provided in section below.

4.5

Geothermal Plant and Steam Field Construction

4.5.1

Geothermal Plant Construction

Construction works for the geothermal power plant will include: 

Formation of power plant and switchyard site access roads;



Excavations for foundations and pavements, piling, surfacing pavements;

Chapter 4 - Project Description 16

ď&#x201A;ˇ

Laying concrete foundations for buildings, cooling towers or fan-fan coolers (if required), power switchyard equipment, pipelines and headers, separator stations and other associated equipment; and

ď&#x201A;ˇ

Construction of buildings and installation of the plant and equipment for power generation.

Construction of the power plant site will require vegetation and site clearance works as well as earthworks to construct a platform and foundations for the power plant. If the preferred site at the airstrip is feasible, then bulk earthworks would be reduced (see Figure 4-1 for location). During the site construction phase the site work-force will reach its maximum of 40 people. Site preparation work involves bulk earthworks including associated storm-water and sediment control work and road building. Establishing temporary construction facilities, security fencing, drainage controls and access control is also required. Any excavated material will be used for landscape bunds to minimise the requirement to remove material from the site. As the power plant installation nears completion, commissioning will commence; testing initially without, and then with, geothermal fluid. This involves cleaning of steam piping by steam blowing. Once the entire plant has been brought into operation a range of performance tests will be undertaken. Having successfully completed performance tests, the plant will be handed over for commercial operation. 4.5.2

Construction Services

Temporary power and telecommunications will be provided during construction. A dedicated construction power supply will be required at the power plant site, which will likely be from diesel powered generators. Fresh water supply used for construction will be supplied from Epule River and tankered and stored in water tanks on site. Domestic wastewater from amenities during construction at the power plant and switchyard sites will be collected and treated in a septic system and the resulting effluent disposed of via an evapotranspiration / soakage trench. Alternatively, a temporary on-site sewage treatment system may be constructed to meet the requirements of construction staff at the site. Some infrastructure services may be buried including electrical earthing with power lines run overhead. Telecommunications cables or fibre-optic cables will either be strung on the overhead power lines or in buried ducts within the pipe corridors. Farm and security fencing can be installed alongside service access tracks if required. 4.5.3

Geothermal Fluid Steam Field and Piping

Preparation of the steam field involves forming access roads, drilling pads and corridors for geothermal pipelines and undertaking associated excavation and site clearance. Concrete foundations for equipment will be constructed and equipment installed. On completion of construction, the steam field would be commissioned and tested for operation. Fluid piping easements up to 10 m wide will be required to enable access during construction. Vegetation clearing will be required to make a corridor for these pipes and access ways. These corridors will run alongside tracks/roads established during exploration where possible, and the proposed pipeline corridors are outlined in Figure 4-1. The pipelines would be 300 mm nominal diameter, raised above the ground on stays, with expansion joints at regular intervals (see Figure 4-6) During operation of the geothermal plant these easements can be reduced to less than 10 m.

Chapter 4 - Project Description 17

Figure 4-6 Geothermal Fluid Pipeline

4.5.4

Seawater Pipeline

If the seawater cooling option was selected during the engineering phase, then two (2) seawater cooling pipelines (inflow and outlet), would be constructed from the geothermal plant to the Takara Landing site and out to sea. The proposed route for the pipeline is shown in Figure 4-1, with the method for construction explained below in Figure 4-7. The pipelines would be up to 1,000 mm nominal diameter, with a construction corridor width of 10 m wide for excavated spoil, topsoil and working width.

Chapter 4 - Project Description 18

Figure 4-7 Seawater Pipeline

4.6

Geothermal Plant Operation

4.6.1

Overview

The principle of a binary type geothermal power plant is to use a geothermal resource (steam or hot water), as a heating source to evaporate a low boiling point fluid (â&#x20AC;&#x2DC;working fluidâ&#x20AC;&#x2122;), which drives a turbine to produce electricity. The plant will generate approximately 5 MWe of electricity during Stage One (1) of the Project, with a possible further 5 MWe during Stage Two. The plant will receive hot geothermal fluid from the two (2) production wells flowed through a vaporiser (heat exchanger) to transfer energy from the geothermal fluid to the working fluid. The working fluid has a lower boiling point and higher vapour pressure than steam at the same temperature. The working fluid is vaporised as it passes through the heat exchanger, and then expanded through a turbine to generate electricity. It is then cooled and condensed to begin the cycle again. The cooled geothermal fluid is also recirculated into the ground; therefore the system comprises two closed loops. This overview of a typical binary type plant is depicted in Figure 4-8.

Chapter 4 - Project Description 19

Figure 4-8 Summary of a Binary Cycle Power Plant

4.6.2

Geothermal Power Plant

The geothermal power plant site will have a footprint of approximately 120 x 50 metres (for the air cooled option) or 50 x 70 metres (for a water cooled option), nominally located at the western end of the existing airstrip (see Figure 4-1) If possible, the plant site will utilise the laydown yard used during the exploration phase. An indicative layout of the key components of a geothermal power plant (air and water cooled), is shown in Figure 4-9 and Figure 4-10, respectively. The components of these plants are listed and briefly described:

Chapter 4 - Project Description 20

Figure 4-10, respectively. The components of these plants are listed and briefly described below: 

Geothermal fluid piping – from production wells to plant and back to the injection well;



Separator – receives two phase (liquid and steam) flows from production wells and separates these phases;



Evaporator – heat exchanger between the geothermal fluid (steam and hot water), which vaporises the working fluid;



Pre-heaters – provides sensible heat to the liquid working fluid to prepare it for vaporisation;



Condenser – condenses working fluid to a liquid;



Cooling system – either a bank of fin-fan coolers, cooling towers or sea-water cooling exchange-piping and pump;



Working fluid storage tank and transfer pump – pressure vessel for intermittent storage of the working fluid;



Turbine / generator set - a generator is rotated by the turbine and generates electric power which is transmitted via a transformer to transmission powerlines to market;



Plant sub-station and control building – electricity transfer from generator to transmission powerlines;



Storage pond – lined brine storage for capturing geothermal fluid releases during a process upset or maintenance;



Workshop and water storage tank – small office space/workshop, kitchen and ablutions for operator use;



Fire protection system – piping and pump for water suppression; and



Access road to plant – from the Efate Ring Road through plant security fenced area.

Chapter 4 - Project Description 21

Figure 4-9 Geothermal Plant Layout (Air Cooled)

Chapter 4 - Project Description 22

Figure 4-10 Geothermal Plant Layout (Seawater Cooled)

Chapter 4 - Project Description 23

4.6.3

Geothermal Plant Process Specifications

A process flow diagram is shown in Figure 4-11 as a graphical representation of the geothermal process with reference to the process specifications. Table 4-4 below includes further details of the specifications. Table 4-4 Geothermal Plant Process Specifications Specification

Details

Binary plant configuration

Closed loop system with no liquid geofluid discharge to the environment.

Plant surface and boundary

A surface of compacted soil with an overlay of gravel and a security fence around the facility and each wellhead.

Air emissions

Venting of small quantities of non-condensable gases, which may include hydrogen sulphide. An odour could therefore be possible from the plant. Quantification of the air emissions and greenhouse gas emissions are included in the Air Quality Technical Report.

Greenhouse gas emissions

Venting of carbon dioxide and possibly methane. An accidental release of refrigerant working fluid could emit gas with a high Global Warming Potential (GWP), depending on the choice of refrigerant.

Noise emissions

Noise will be produced from the turbine, fin-fan coolers (if air cooled), steam venting, access traffic and water pumps. Quantification of the noise levels is included in the Noise Technical Report.

Working fluid

To be determined (see Section 4.6.4 below)

Piping scale

Calcium carbonate, silica and other minerals within the geothermal brine can cause scale build-up within the piping. This will be controlled with the injection of a scale inhibitor in small quantities.

Cooling system

To be determined (see Section 4.6.4 below). Options include:  Fin-fan cooler (air cooled heat exchanger). No atmospheric steam plume would be produced.  Cooling towers. A steam plume would be produced during some atmospheric conditions.  Sea-water cooling supply volume. No steam plume would be produced.

Transmission powerline

4.6.4

Powerline is not part of the scope of this ESIA as it was excluded from the Terms of Reference by the Department of Environmental Protection and Conservation.

Geothermal Plant Process Options

Working Fluid A number of options for working fluid are available, depending on the geothermal reservoir source. Potential working fluids include hydrocarbons, such as iso-propane, and iso-butane, and refrigerants such as ammonia. Binary plants can typically operate with geothermal fluid temperatures ranging from 85°C to 170°C (Maghiar and Antal, 2001). The temperature at Takara will not be known until following exploration drilling, but is expected to be in the higher range. Process Piping Cleaning Options As geothermal fluids generally contain calcium carbonate or silica which can cause scaling, the preheater and evaporator will be designed with a construction that enables periodic cleaning. However, there will also be a need to inject small quantities of corrosion and scale inhibitor within the closed loop system. Geothermal wells sometimes require chemical or mechanical cleaning. Chapter 4 - Project Description 24

Geothermal Plant Cooling The technology for cooling the working fluid is yet to be determined, but options will include the following: 

Dry Air Cooling: This option would include a bank of fin-fan coolers within the plant site. Figure 4-9 includes a graphic image and photo of a typical plant with fin-fan coolers. Aircooled systems require a parasitic load to power the fans and are influenced by seasonal changes in air temperature. For a plant of this size, this option is considered the most likely and this type of cooling is frequently packaged with power plant equipment by the main manufacturers in the industry.



Evaporative Cooling: This option would incorporate one or more cooling towers within the plant site supplied by a cross-country water supply pipeline from Epule River, located approximately six (6) km’s south of the site. The pipeline would be a buried plastic pipe with a nominal diameter of 150 mm, along a route following the Efate Ring Road to the airstrip and along to the geothermal plant (see Figure 4-1). The availability of a reliable, clean water source is a requirement for this option. This option is considered less likely than dry-air, but more likely than sea-water cooling.



Seawater Cooling: This option would involve the construction of twin pipelines of up to a diameter of 1,000 mm each from the plant site to sea via the existing “Tarkara Landing” reef crossing, as shown on Figure 4-1. The cooling water would then be discharged directly to the sea via an underwater pipeline and diffuser located in deeper water to allow sufficient thermal mixing within the water column. A seawater intake would also be located out to sea for supply of cool seawater to the plant site. A cross-section of the potential seawater pipeline is shown in Figure 4-7. This option is least likely, however will continue to be considered.

Chapter 4 - Project Description 25

Figure 4-11 Geothermal Plant Process Flow Diagram (Air Cooled)

Chapter 4 - Project Description 26

4.6.5

Geothermal Steam Field

A geothermal ‘steam field’ will operate to collect and transport the geothermal fluid required for power generation. The geothermal steam field will consist of: 

Production wells;



Separation station(s), including:



Two phase incoming pipelines, with expansion loops;

Separation equipment;

Condensate collection and disposal system;

Pressure relief system with vents and a pond / sump for releases during plant upset conditions; and

Injection well and injection pipeline.

Pipes will transport geothermal fluid from the production wellhead and separator station to the geothermal power plant. These pipes will be insulated to prevent safety issues from the hot pipes and to conserve heat. The pipes will likely be nominally 300 mm in diameter and be situated above ground level on supports that are concreted to the ground. Expansion loops are required to account for expansion of the steel on contact with the hot fluid. Figure 4-6 provides a description and a representative photo of the fluid piping. The final location and route of the piping will not be determined until following exploration drilling and detailed engineering design. Geothermal fluid condensate will be produced from the steam field, primarily across the walls of the steam pipes. Condensate produced in pipelines is likely to be collected in a collection drain pot, which allows small quantities of condensate water to drain at regular intervals along the pipeline. Testing of the geothermal fluids during the well testing will determine if condensate will need to be piped for reinjection or is safe to drain into the ground. The nature of produced geofluid will be two phase at the surface. The separation philosophy involves wellhead separators with separate steam and liquid above-ground flowlines to the plant. The well lift is assumed to free-flow under artesian pressure. The reinjection requirement to recharge reservoir is assumed to be 100% of production brine flow. Pressure relief is required on the steam gathering system. Typical events that will cause over pressure in the system include turbine trips. Bursting discs may be used for this purpose, but pressure relief valves can also be used. They can either discharge straight to atmosphere or be piped to the vent system, depending on the volume of the release. Steam venting is required to control the pressure of the system, especially in an event of a sudden load change and system upset. A series of vent valves, upstream of the power plant, allow steam to be vented as necessary. Lined storage sumps may be located at various locations around the steam field, including adjoining each production well pad sites, for the purposes of storing brine or condensate that is discharged due to operational upsets. The sump may hold fluids produced from the well during initial discharge tests. The sump contents will be pumped to injection wells. 4.6.6

Electrical Transmission Connection

Network connection infrastructure is required to connect the power plant to the existing network. The steam turbine equipment will be mechanically coupled to a generator, which produces the electrical power to be transmitted from the power plant. Power from the generator is transferred via insulated cable to a step-up transformer which will change the voltage of power transmitted. Power can then be exported via transmission lines. The transmission line for the Project is not included as part of this ESIA.

Chapter 4 - Project Description 27

In order to safely operate and transmit electrical power from one location to another, an outdoor switchyard and/or indoor switch room would be required. These facilities house equipment required to de-energise and protect the incoming and outgoing lines/cables. Switchyard and switch room equipment includes circuit breakers, surge arrestors, current transformers and voltage transformers. If the transmission voltages are greater than 33 kilovolts, an outdoor switchyard will likely be required. Otherwise an indoor switch room may be utilised, and all facilities would be housed indoors. 4.6.7

Transportation Logistics

A road and track network will be required to provide access to the main steam field equipment, well pads and the power plant. Roads or tracks will be constructed to steam field facilities including remote well pads, and along the pipe corridors. These will be used for access by operations staff for inspections, operation and maintenance. The roads may be surfaced with gravel, but gradients in steeper areas may be sealed. Pipe bridges will need to be constructed over any intermittent water courses, where required. Equipment, machinery and supplies will be required to be transported by sea to the Island of Efate. The majority are likely to be shipped to Port Vila and transported by road to site. There is also a possibility that some supplies or machinery could be transported by sea through the Takara Landing by a vessel with a drawbridge for unloading. This will be investigated further if necessary. 4.6.8

Workforce

The Takara Geothermal Power Plant would require a skilled workforce of approximately 40 staff during construction, and four (4) staff during each working shift of operations. The workforce during construction will be housed locally within a construction camp (within the laydown area), with fully catered facilities, or the workforce will be transported to site by bus daily. The possibility of accommodating the construction workforce and potentially geothermal plant operators at the Beachcomber Resort (located several kmâ&#x20AC;&#x2122;s from the site), will also be investigated. This would require the addition of temporary accommodation modules to supplement the existing facility.

4.7

Transport

Transport to and from the Takara site will be required during all phases of the Project. Equipment, material and supplies will either be shipped to Port Vila from overseas or supplied locally. It will then be transported by road from Port Vila by rigid or articulated trucks. If technically not feasible to transport by road because of bridge capacity, some loads may be ferried by boat to the Takara Landing with transport by road to site. Project staff will be transported by mini-bus or light vehicle from the construction camp or local accommodation. The transport trips for each Project phase are described in Table 4-5, with a summary of the average trips per day shown in Table 4-6.

Chapter 4 - Project Description 28

Table 4-5 Transport Trips during Project Phases Project Phase

Need for Vehicle Trip

Vehicle Trip Timing (Y/N) Day

Exploration Drilling

Production Drilling

Geothermal Plant and Associated Infrastructure Construction

Geothermal Plan Operation

Transport Arrangement

Vehicle Trips

Origin of Trip

Night

Supply rig equipment for mobilisation and demobilisation

Rigid or articulated truck

100 trucks

Port Vila

Drilling fuel, muds, chemicals and materials

Rigid or articulated truck

15 trucks

Port Vila

Supply water

Truck with water tanker

75 trucks

Local

Site workforce traffic 2 generation

Mini-bus shuttle

1000 trips

Local

Supply rig equipment for mobilisation and demobilisation

Rigid or articulated truck

200 trucks

Port Vila

Supply drilling fuel, muds, chemicals

Rigid or articulated truck

30 trucks

Port Vila

Supply water

Truck with water tanker

100 trips

Local

Site workforce traffic 2 generation

Mini-bus shuttle

4000 trips

Local

Supply construction materials

Rigid or articulated truck

50 trucks

Port Vila

Machinery and equipment

Rigid or articulated truck

50 trucks

Port Vila

Site workforce traffic generation 2

Bus shuttle

1100 trips

Local

Fuel, oil, chemicals and equipment

Rigid truck

2 trips per week

Port Vila

Maintenance and catering

Rigid truck or light-vehicle

3 trips per week

Port Vila

Site workforce traffic generation 4

Private or company lightvehicle

10-50 trips per week

Local / Regional

Notes: 1. 2. 3. 4.

Supply of drilling material will be scheduled during the day; however provision for potential supply at night could also occur. Assumes drilling camp located offsite from the laydown area. Workforce shift change-over to and from accommodation to drill rig site. Assumes operation workforce accommodation located in north of Efate.

Chapter 4 - Project Description 29

Table 4-6 Summary of Transport Trips During Project Phases Project Phase

Vehicle Trips

Total Trips 1

Totals Days (estimate) 2

Average Daily Trips

Truck

Light Vehicle

Exploration

190

1,000

1,190

460 3

2.6

Production

330

4,000

4,330

630 4

6.9

Construction

100

1,100

1,200

730

1.8

Operation

50 5

55 per week

Notes: 1. 2. 3. 4. 5.

4.8

Total vehicle trip includes all vehicle movements i.e. one trip in to and from site is considered two trips. Total day estimate is based on the total for each phase with higher case scenario. Exploration phase days is based on 115 days per well x 4 wells. Production phase days is based on 210 days per well x 3 wells. Operation phase light vehicle trips is based on the higher case scenario.

Aviation

The Takara airstrip was originally constructed during 1942 by the United States Navy to support air force and naval operations in the Pacific Ocean during World War II. After the war the airstrip was abandoned and to the current day used only for emergency airstrip for landings of light aircraft. There has been an initial proposal for a possible commercial airport being developed in the north of Efate, but this is not proceeding. An emergency landing along the abandoned airstrip is compatible during the exploration drilling phase of the project with the siting of a possible drill pad at the western end of the airstrip and the laydown area being located adjacent to the abandoned airstrip. However, the production drilling phase will include a drilling rig with a higher derrick (50 m) and a larger land area footprint thereby creating an aviation hazard. The airstrip would therefore need to be closed to emergency air traffic during this phase. The compatibility of the airstrip for emergency landings during operation of the geothermal plant will depend on the design of the plant and discussions with the Vanuatu aviation authority. For example, if cooling towers where chosen, they are a significant height and would likely emit a thermal updraft that would be hazardous to aircraft making an approach to land.

4.9

Inventory of Fuels, Chemicals and Hazardous Substances

An inventory of the fuels, chemicals and hazardous substances required for exploration and production drilling, construction and operation of the geothermal plant are provided in Table 4-7.

Chapter 4 - Project Description 30

Table 4-7 Inventory of Fuels, Chemical and Hazardous Substances Product

Quantity

Details / Use

Storage

Exploration Drilling

Production Drilling / Construction

Operation

Diesel

Approximately 55,000 L / month 1

Approximately 310,000 L / month 2

Approximately 2,000 L / month

Drilling rig, vehicles and generators

Above ground bunded storage tanks (1,000 L each) or 200 litre steel drums with bunded storage site

Petrol

1,000 L / month

< 500 L / month

Vehicle use

Above ground bunded storage tank within fuel storage site

Oils

4,000 L

10,000 L

To be determined

Lube oils for engine maintenance

Steel drums at bunded secure fuel storage site

Transformer oil

Nil

To be determined depending on design.

Insulating and cooling medium for the transformer

Within electricity transformer

Turbine lube oil

Nil

To be determined during design

Lube oil for operation and maintenance of turbine

Within turbines

Working fluid (isopropane, iso-butane or refrigerant)

Nil

To be determined during design. Nominal 5 – 8 tonnes

The working fluid has a lower boiling point and higher vapour pressure than steam at the same temperature. The working fluid is vaporised as it passes through a heat exchanger, and then expanded through a turbine to generate electricity.

Within ‘closed loop’ of geothermal plant. Additional within bunded storage tank. The tank may require pressurisation depending on the volatility of the fluid selected.

Sulphuric acid (H2SO4)

Nil

To be determined

Required to adjust the pH of brine to ensure that Silica Saturation Index (SSI) are maintained during plant operation

Secure hazardous substances store and bunded tanks on power plant site

Caustic Soda (NaOH)

< 1,000 kg

To be determined

May be required to ensure pH of the cooling water circuit is kept within limits (only for evaporation (cooling tower) cooling option)

Secure hazardous substances store and bunded tanks on drilling and power plant site

Cement

To be determined. Will vary between wells

None (unless new wells are required)

Cementing is used to secure the drill casing within the well

Secure hazardous substances store at main laydown area. Volumes will be stored at drill pads as required.

Chapter 4 - Project Description 31

Product

Quantity

Details / Use

Storage

Exploration Drilling

Production Drilling / Construction

Operation

Biocide (Sodium Hypochlorite, NaCIO), corrosion inhibitors, hydrochloric acid, antiscalants (polyacrylate chemicals)

< 1 tonne

To be determined during design

For wet cooling towers biocide dosing is required to prevent build-up of biologic growth such as algae. Corrosion inhibitors for evaporation (cooling tower) option. Hydrochloric acid for anti-scaling operations. Anti-scalants injected into brine before it is reinjected to the reservoir, or used throughout the plant.

Secure hazardous substances store on power plant site as required

Drilling chemicals

PHPA powder (JK 261)

Nil

Drilling fluid additive, 100 x 25 kg sacks

XCD powder (Xanthan Gum)

Nil

Drilling fluid additive 80 x 25 kg sacks

Secure hazardous substances store at main laydown area. Volumes will be stored at drill pads as required.

Drispac R (fluid loss control)

Nil

Drilling fluid additive, improves carrying capacity and promotes fragile gel strengths, 80 x 50 lb sacks

Narlex D72 (polymer thinner)

Nil

Dispersing agent, 50 x 25 kg sacks

Idocide 20 (biocide)

Nil

Used to kill / prevent bacteria and algae, 32 x 20 L pail

Castic soda (pH modifier)

Nil

Used to modify (increase) alkalinity, 32 x 20 L pail

Magox (magnesium oxide)

Nil

Used as antacid, 36 x 20 kg sack

Desco (thinner)

Nil

Used to thin drilling fluid, 5 x 25 lb sack

HT Lignite (sodium caustized)

Nil

Used to control filtration, 15 x 25 kg sack

Citric acid

Nil

Used to modify (increase) acidity, 5 x 25 kg sack

Sodium bicarbonate (baking soda)

Nil

Used as a chemical additive, 5 x 25 kg sack

Notes: 1.

Fuel use is an estimate only. Drilling rig and vehicle fuel use based on approximately 1,500 L / day and generator fuel use based on 10,000 L / month. Fuel use is an estimate only. Drilling rig and vehicle fuel use based on approximately 10,000 L / day and generator fuel use based on 10,000 L / month.

Chapter 4 - Project Description 32

4.10

Waste Generation and Disposal

A summary of all estimated wastes produced for the drilling and operation phases of the Project are shown in Table 4-8. Drilling waste in the form of cuttings and drilling muds will be produced during drilling. Drilling muds will be re-circulated during drilling, however will become more degraded and will require disposal either during or at the completion of drilling. The disposal method for the drilling fluid will be to evaporate liquids in the storage pond and fill in with existing spoil. Concentrated saline water (brine), will be produced from exploration and production wells and discharged to an excavated lined storage pondage or portable lined pond, before being tested to determine the most appropriate method of disposal. Possible disposal options could include reinjection or disposal at sea.

Chapter 4 - Project Description 33

Table 4-8 Waste Generation and Disposal Waste Type

Quantity

Generation / Use

Storage

Disposal

Exploration Drilling

Production Drilling Construction

General Waste and Maintenance Waste

7.5 kg / day 1

20 kg / day 2

2 kg / day 3 Maintenance waste produced periodically

Office material (paper, cardboard, packaging), food and drink material

Covered bins located within and adjacent to crib rooms, the laydown areas and other areas as required. Maintenance waste could include steel and aluminium scrap, pallets, wood and plastic.

General waste will be collected on a regular basis by an appropriately licensed contractor for off-site disposal within a waste facility approved to accept such waste. Products that can be recycled will be identified for disposal through a waste contractor.

Construction Waste

Nil

Dependent on the procurement of materials / supplies and the engineering design

Nil

Assume 10% of the total construction material (tonnes) will be waste

Stored in a dedicated area for re-use or disposal. Waste will likely include; cement, broken rock, plastics, metal, glass, fabrics, synthetic resins, cardboard, paper, inert and non-toxic waste Stored in designated scrap metal bins or specified areas in appropriate areas, such as adjacent to laydown area.

Re-use and recycling of waste where possible. Limited recycling facilities are on Efate. Steel / metal may be collected on a regular basis by a scrap metal recycler, or used by the local community.

Oil and grease

To be determined

The generation of waste oils and grease will be primarily limited to the routine maintenance of plant and equipment.

This waste will be stored in bunded storage containers. Oily water from the plant workshop, equipment storage and washdown bay areas will be drained to an on-site oil-water separator.

Oils and grease will be collected by a licensed waste contractor on a regular basis for recycling and/or off-site disposal within a waste facility approved to accept such waste. Licensed contractors will regularly service and maintain the separator and remove all waste hydrocarbons for recycling.

Bio-solids (sewage waste)

2,250 L / day, with approximately 2.1 kg of solid waste (dry) 4

6,000 L / day, with approximately 5.6 kg of solid waste (dry) 5

< 150 L / day, with 140 grams of solid waste (dry)

Generated by staff during working hours. Bio-solids includes waste from septic sewage treatment.

The wastewater system will be sized to service approximately five (5) people during operation of the plant. Bio-solids will be stored in septic tanks with periodic clean-out of sludge for disposal.

Wastewater will be serviced by a septic system and waste contractor maintained on an as required basis. Sludge from the septic tanks will be collected and disposed of in an approved facility.

Operation

Chapter 4 - Project Description 34

Waste Type

Quantity Exploration Drilling

Production Drilling Construction

Generation / Use

Storage

Disposal

Operation /

Drilling fluid

To be determined. Will vary between wells

Nil (unless new wells required)

Drilling mud for well control, cuttings transport and drill bit lubrication

Drilling fluids that are not recirculated will be flowed to an unlined drilling pond

Drilling fluid will be disposed to the ground, with liquids left to evaporate. Solids remaining will be covered to ground when filling in the hole.

Cement

To be determined. Will vary between wells

Nil (unless new wells required)

Excess cement from casing of wells

Stored in drilling sump for liquid evaporation

Dry cement will be left in drilling ponds and covered to ground when filling in the hole

Geothermal fluid

Up to 400 m3 per well produced during well testing (up to four wells – 1,600 m3)

Up to 400 m3 per well produced during well testing (three wells – 1,200 m3)

Binary plant with ‘closed’ system, therefore fluids re-injected

Geothermal fluids released from reservoir during well testing and production from well

Stored within ‘closed’ plant piping system. Steam and non-condensable gases (NCGs), will be released to atmosphere. Brine will be collected in a lined sump during well testing.

Brine will be either re-injected during operation, or if produced during well testing, the brine will be tested for water quality and if below acceptable limits either evaporated of liquids within the lined sump or discharged to the sea via a temporary discharge pipeline.

Condensate (condensed geothermal fluid)

Nil

To be determined

Inside of steam piping during maintenance

Collected in drainage pots along steam lines

Depending on the chemistry of the geothermal fluid, it will either be piped for re-injection or tested and if safe to the environment, disposed of at sea

Noncondensable gases

2 tonnes per well (up to four wells – 8 tonnes)

2 tonnes per well (three wells – 6 tonnes)

13,400 tonnes per year

Vented gas from geothermal process stream

Not stored

Non-condensable gases will be vented to atmosphere. These include carbon dioxide (CO2 98% (wt)), hydrogen sulphide (H2S 1.2% (wt)), and methane (CH40.5% (wt))

Vegetation (cleared)

Drill pads, laydown area and access tracks

Geothermal plant and pipelines

Vegetation (wood, foliage)

Stockpiled to edges of cleared areas.

Stockpiled vegetation to be mulched and re-used for site rehabilitation.

Notes: 1. 2. 3. 4.

Based on 15 workers during drilling, each producing 0.5 kg waste / day. Based on 40 workers during construction, each producing 0.5 kg waste / day. Based on 4 workers during plant operation, each producing 0.5 kg waste / day. Based on 15 workers during drilling, each producing 150 L / day wastewater with 140 g (dry) of solid waste. Based on 40 workers during construction, each producing 150 L / day wastewater with 140 g (dry) of solid waste.

Chapter 4 - Project Description 35

4.11

Decommissioning and Rehabilitation

The life of the geothermal power plant is dependent on the life of the geothermal resource. Pre-drill estimates suggest that a Takara geothermal generation project could produce 9 to 28 MWe for a 30 year life, using a Binary Organic Rankine power plant. The initial project size for this Project will be 5 MWe, based on market limitations and there is potential for subsequent project stages to double this, depending on load growth. If the resource conditions are still favourable, equipment can be refurbished or replaced at the end of their design life to upgrade and repair equipment to enable operation and generation to continue. The power plant and steam field will be designed to allow for full decommissioning, should that be required at the end of the plants design life, or before, if unforeseen conditions make the development uneconomic. Following decommissioning, the site will be restored to approximate its original condition or to a standard that results in stable environmental conditions. Decommissioning activities would include: 

closure of all facilities



plug and abandon wells



disconnect and plug underground pipelines



removal of aboveground components and gravel from well pads



access roads will be de-compacted and re-vegetated (if not maintained for other uses)



removal of other ancillary facility sites



rehabilitation and restoration of sites, including re-contouring the surface and re-vegetation.

The site activities associated with decommissioning are similar to those required for construction. Decommissioning activities will follow the good international industry practice methods which are established at the time. It is likely that for plant decommissioning on this scale, a specialist contractor would be engaged to oversee the entire plant and steam field decommissioning.

Chapter 4 - Project Description 36

CHAPTER

Existing Environment

Table of Contents 5

EXISTING ENVIRONMENT 5.1

Physical Environment 5.1.1 Climate, Seismic Activity and Topography 5.1.2 Land-use, Geology and Soils 5.1.3 Surface and Ground Water 5.1.3.1 Surface Water 5.1.3.2 Groundwater 5.1.4 Air Quality and Greenhouse Gas Emissions 5.1.5 Noise and Vibration 5.1.6 Landscape and Visual Amenity

1 1 5 8 8 11 13 13 14

5.2

Biological Environment 5.2.1 Terrestrial Ecology 5.2.1.1 Flora 5.2.1.2 Fauna 5.2.2 Aquatic Ecology 5.2.3 Marine Ecology

18 18 18 20 24 24

5.3

Social / Cultural Environment 5.3.1 Regional Setting 5.3.2 Population Characteristics 5.3.3 Culture and Social Dynamics 5.3.4 Education and Training 5.3.5 Vulnerable Groups 5.3.6 Economy, Employment and Livelihood 5.3.7 Fishing 5.3.8 Tourism 5.3.9 Governance Structure 5.3.10 Community Facilities and Infrastructure 5.3.11 Health and Well Being 5.3.12 Climate Change 5.3.13 Community Receptors

26 26 28 29 32 33 33 35 35 36 37 39 41 41

TABLES Table 5-1 Soil Types within the Project Area (SLR, 2014d) Table 5-2 Main Watercourse Water Balance Estimates Table 5-3 Takara Background Noise Levels Table 5-4 Vegetation Types Table 5-5 Mapped areas of habitat types Table 5-6 Key Development Indicators - Vanuatu Table 5-7 Highest Level of Education Attended for Adults

Chapter 5 – Existing Environment

6 10 13 20 21 28 32

Table of Contents FIGURES Figure 5-1 Rainfall in agricultural land on Efate 1 Figure 5-2 Port Vila Rainfall and Evaporation Statistics (SLR, 2014d) 2 Figure 5-3 Monthly Mean Temperatures Recorded in Port Vila (1991 – 2010) (SLR, 2014a) 2 Figure 5-4 Topography 4 Figure 5-5 Simplified N-S cross section through the area of the potential drill sites (Holl, 2014, cited in SLR, 2014e) 5 Figure 5-6 Soil Types 7 Figure 5-7 Catchment Plans 9 Figure 5-8 Conceptual schematic of the water balance for Watercourse 1 (Namot) 12 Figure 5-9 Takara Area Landscape 14 Figure 5-10 Abandoned Takara Airstrip Landscape 15 Figure 5-11 Typical Drill Zone Landscape 16 Figure 5-12 Typical Forest / Gardens Landscape 17 Figure 5-13 Vegetation Communities 19 Figure 5-14 Fauna Habitat Types and Resources 22 Figure 5-15 Habitat Map of Takara Investigation Area (SMEC, 2014a) 25 Figure 5-16 Map of Vanuatu Provinces 27 Figure 5-17 Hierarchy of community decision making in Takara 29 Figure 5-18 Areas of Cultural Significance 31 Figure 5-19 Agricultural production at Takara 35 Figure 5-20 Nasinu Village Hot Spring 36 Figure 5-21 Local Tourist Facilities 36 Figure 5-22 Poanangisu Village Church 38 Figure 5-23 Recreational Facilities - North Efate, Poanangisu (left) and Takara (right) 39 Figure 5-24 Poanangisu Police Post 40 Figure 5-25 Household Health Conditions 41 Figure 5-26 Community Sensitive Receptors 42

Chapter 5 – Existing Environment

EXISTING ENVIRONMENT

This section provides a detailed description of the existing physical, biological, and socio-cultural environment in the Project Area. Where relevant, descriptions of the wider Efate environment, adjoining marine environment and Vanuatu have also been included.

5.1

Physical Environment

5.1.1

Climate, Seismic Activity and Topography

Climate The Island of Efate in Vanuatu is located in a tropical region characterised by a cool dry season between the months of May and October, and a warm wet season between November and April. The dry season coincides with the occurrence of the south-east trade winds. The nearest long-term weather station is located in Port Vila, approximately 25 km south-east of the Project Area. The annual average rainfall at Port Villa is 2,218 mm with the majority of this rainfall falling in the summer months of December to March (Port Vila Rainfall and Evaporation Statistics, 2013). Orographic (i.e. topographically influenced) rainfall occurs on the island. During the wet season, rainfall is greater on the windward side of the island (south-east in particular) and during the dry season, rainfall is more scarce on the leeward sides (north-west in particular) (Vanuatu Meteorological Services, 2014). Average coastal rainfall patterns are presented in Figure 5-1 below. Figure 5-1 Rainfall in agricultural land on Efate

Source: Simeoni and Lebot (2012) as cited in SLR (2014d)

The Vanuatu Meteorological Service does not measure rainfall in the north-eastern portion of the island where the study area is located, but provided rainfall and evaporation data for Port Vila in the south-west of the island. A summary of the average rainfall and evaporation data and rainfall data for 12 months is presented in Figure 5-2 below. The preceding 12 months rainfall was only slightly below the historical average annual rainfall, so site characteristics including groundwater levels and surface water levels at the Project area are likely to be representative of normal conditions for this time of year. Based upon the likely wind conditions, it is expected that annual rainfall will be slightly greater in the study area than in Port Vila.

Chapter 5 â&#x20AC;&#x201C; Existing Environment 1

Figure 5-2 Port Vila Rainfall and Evaporation Statistics (SLR, 2014d)

Being an equatorial country, Vanuatu has relatively uniform temperature throughout the year (refer Figure 5-3). The warmest month is February and the coolest is August. In the coastal areas, daily temperature average 26°C in the hot season with an average maximum of 30°C and an average minimum of 24°C. Extreme night-time minimum temperature in some coastal areas may reach 13°C and the record low for Port Vila is 12°C. Humidity is often high. Port Vila has an average temperature of 25°C, with August averaging 23°C and February 27 °C (SLR, 2014a). Figure 5-3 Monthly Mean Temperatures Recorded in Port Vila (1991 – 2010) (SLR, 2014a)

Chapter 5 – Existing Environment 2

Seismic Activity Vanuatu is an archipelago of 82 volcanic islands and forms a part of the Pacific Ring of Fire; a string of volcanoes and sites of seismic activity around the edges of the Pacific tectonic plate. As a result earthquakes and volcanic eruptions are common. This section of the Pacific Ring of Fire is characterised by the convergence of the Pacific and the Australian tectonic plates producing two subduction zones (Vanuatu Meteorology and Geohazards Department, 2009). As a result, Vanuatu is bordered by a broken subduction trench to the west. The centre of the archipelago is anchored on island arc material generated at the convergent margin of the subducted, ancient Vitiaz arc, and the currently subducted region. The eastern part of the Vanuatu volcanic arc is a back-arc domain where oceanic basins were created. In addition, the dâ&#x20AC;&#x2122;Entrecasteaux Ridge impacts on the central part of the Vanuatu island arc, triggering a significant uprising of the volcanic chain. There are no active volcanoes on Efate; however numerous earthquakes are recorded every year (Vanuatu Meteorology and Geohazards Department, 2009). Topography The topography of Efate is characterised by a volcanic mountain-scape, with limited areas of coastal lowlands and coastline of coral and sand beaches, surrounded by fringing reef. The Takara area is generally low lying, with a predominantly flat terrain from the coast of Takara up to the foothills of Quoin Hill (refer Figure 5-4). The Project Area has a maximum elevation of 60 m in the south, with elevation decreasing in a northwardly direction. The area is dissected by ephemeral creeks creating a crest and gully landform. The crests are typically gently inclined (5-10%) with some flatter areas. The gullies have moderately to steeply inclined slopes (18-32%) with flat to gently inclined drainage lines. The topography towards the coast is flat to gently inclined (0-3%). The abandoned Takara airstrip is typically flat terrain, whereas the Epule River is characterised by low lying coastal flats surrounded by mountainous topography. The proposed locations of the drill holes are relatively flat at the lower slopes of Quoin Hill, with higher slopes up the hill. The forested areas involve gentle to steeply undulating terrain on the lower slopes of Quoin Hill.

Chapter 5 â&#x20AC;&#x201C; Existing Environment 3

229000

8060200

228000

0 0

8059200

Beachcomber Resort

Ring Road Takara

Takara Landing

Baofatu

110 170 200

40 50 60 70 80 90 100 120 140 160 180 210

10 20

Quoin Hill

190

Rin gR oa

130

150

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8058200

90 30

LEGEND

Watercourses Contours (2m) Disturbance Footprint

SLR Soils Assessment Study Area

Efate Topography

Digital Elevation Model (m) High : 444.521

100

Low : -51.3082 120

Date: 24/07/2014 Drawn: NT Scale: 1:16,000 Sheet Size: A4 Projection: WGS 1984 UTM Zone 59S

110 The content contained within this document may be based on third party data. SLR Consulting Australia Pty Ltd does not guarantee the accuracy of such information.

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Topography

FIGURE 5-4

5.1.2

Land-use, Geology and Soils

Land-use The Project Area falls within the “customary” land category, meaning at least one native land owning unit is legally recognised as a landowner (SLR, 2014d). The land at the footslopes of Quoin Hill has been historically utilised for coconuts and beef cattle grazing and is subject to primary forest clearance activities. The plantations have become disused and the land is now largely secondary forest interspersed with gardens. The land associated with the airstrip and older uplifted limestone reef in the east is covered by grassland and regenerating shrubland forest. Further to the east near the Village of Takara, the land is underlain by more recent limestone reef with beach forest (SLR, 2014d). Geology Efate is a Late Pliocene to Pleistocene volcanic island that rises to a height of approximately 650 m above sea level. Efate exhibits a series of elevated reef limestone terraces (Holocene age) that are widely preserved from sea level to heights over 600 m. Holl (2014) estimates the thickness of the limestone terrace to be approximately 25 m ± 10 m. All the drill sites are proposed to be located on the limestone terraces. Zones A to D are situated on top of the older raised reef platform whereas the airstrip and Zone E are located on the recently raised reef (Holl, 2014). These reefs have been uplifted, faulted and tilted and are believed to be underlain by the Efate Pumice formation which comprises pumiceous breccias and tuffs of the original strata-volcano (Howorth, 1983). The Efate Pumice formation is thought to be overlain in north Efate by the Pleistocene Basalt Volcanoes Formation (Tawake, 2005) and one of the main outcrops of this formation is the Quoin Hill volcanic centre. The Project Area includes the footslopes of Quoin Hill. The Project Area is comprised of three distinct features, an eroding Pliocene andesitic basalt flow in the south that abruptly meets an uplifted old coastal limestone formation, which grades into a more recently uplifted limestone formation and beach sand towards the coast. The andesitic flow is a mix of andesite, lava, breccia and tuff (SLR, 2014d). A conceptual geological cross section through the study area, sourced from Holl (2014), is shown in Figure 5-5. Figure 5-5 Simplified N-S cross section through the area of the potential drill sites (Holl, 2014, cited in SLR, 2014e)

Chapter 5 – Existing Environment 5

Soils Within the Study Area there are three major soil trends. On the andesitic basaltic slopes the soils are deep clay textured iron rich soils (Ferrosols). On the older uplifted coral limestone there is a combination of poorly developed soils (Rudosols) and marginally developed soils (Tenosols), and on the more recent coral limestone, a sandier textured Tensosol. A summary of the dominant soil units is provided in Table 5-1 and the key points are: 

The dominant underlying geology in the Study Area is older uplifted coral limestone reef covering 54.6% of the land. The soils developed on this geology are either weakly developed (Tenosols) or have almost nil soil profile development (Rudosols).



The second dominant geology driving soil formation is andesitic basalt (44.8%) on which deep red/brown clay rich soils have developed. These soils have different soil chemistry characteristics with pH ranging from moderately alkaline throughout to strongly acidic at depth.



The younger uplifted coral limestone reef covers only a small part of the Study Area and is represented by a sandy textured weakly developed soil (Tenosol).

Table 5-1 Soil Types within the Project Area (SLR, 2014d) Soil Unit No.

ASC Name

Short Description/Key Features

Quantity ha

Andesitic Basalt 1A

Red Ferrosol

Deep; neutral tending to strongly acidic in the subsoil; marginally sodic subsoil

17.5

18.2

Red Ferrosol

Deep; moderately alkaline trend throughout

12.4

12.9

Brown Ferrosol

Moderately deep: neutral trending to alkaline in the subsoil. Coral limestone bedrock at 0.9 m.

4.7

4.9

Red Ferrosol

Deep; moderately alkaline to slightly acidic

8.5

8.8

43.1

44.8

Subtotal Older Uplifted Coral Limestone 2A

Loamy Carbic Rudosol

Nil pedological development

29.1

30.1

Sandy Carbic Rudosol

Nil pedological development

1.9

2.0

Brown Calcenic Tenosol

Weakly developed soil

21.7

22.5

52.7

54.6

0.6

Subtotal

0.6

Total

96.4

100

Subtotal Recent Uplifted Coral Limestone 3A

Yellow Calcenic Tenosol

Weakly developed soil

Chapter 5 – Existing Environment 6

229000

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228000

Beachcomber Resort

8059200

2B Corner Village

2C 2A

2A 3A

Takara

Takara Landing

1C 1A

Rin g

Ro ad

Quoin Hill

8056200

8057200

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8058200

Baofatu

LEGEND Disturbance Footprint

SLR Soils Assessment Study Area

Soil Types

1A - Red Ferrosol (neutral to strongly acidic) 1B - Red Ferrosol (modertaley alkaline) 1C - Brown Ferrosol (neutral to mildly alkaline) 1D - Red Ferrosol (moderately alkaline to slightly acidic) 2A - Loamy Carbic Rudosol 2B - Sandy Carbic Rudosol 2C - Brown Calcenic Tenosol 3A - Yellow Calcenic Tenosol Date: 26/08/2014 Drawn: NT Scale: 1:16,000 Sheet Size: A4 Projection: WGS 1984 UTM Zone 59S

The content contained within this document may be based on third party data. SLR Consulting Australia Pty Ltd does not guarantee the accuracy of such information.

ÂŠ

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Soil Types

FIGURE 5 - 6

5.1.3 5.1.3.1

Surface and Ground Water Surface Water

There are four key watercourses that intersect the Project area, separated by steep banks, each running in a north to north-easterly direction towards the airstrip. The watercourses are shown in Figure 5-7 and are referred to locally as: 

Watercourse 1 - Namot – 29 ha catchment.



Watercourse 2 - Koloblob – 15 ha catchment.



Watercourse 3 - Tanarua– 53 ha catchment.



Watercourse 4 - Savaki – 31 ha catchment.

Zone A and Zone B are located in the Namot catchment. Zone C transects both the Koloblob and Tanarua catchments. Zone D transects both the Namot and Koloblob catchments. The location of the proposed disturbance areas within the catchments is shown in Figure 5-7. Namot, Koloblob and Tanarua Watercourse Characteristics The Namot, Koloblob and Tanarua watercourses have similar characteristics with a very wide base (approximately 30 – 40 m at their widest) and steep (approximately 1:4 to 1:2) side slopes within the mid and lower sections of the watercourses. No distinctive channel formation exists within the lower portions of the watercourses. A steep banked channel formation exists in the upper tributary of the Namot watercourse a short distance downstream of its headwaters. The local name for this tributary is Tapmara. Flow through the tributary is conveyed through a series of riffles and pools. Surface water runoff flows rapidly down the watercourses, with flow either extending across the base of the watercourse during peak flow periods (as observed at the Namot watercourse) or spread amongst various natural flow paths across the watercourse base during lesser flow periods (as observed at the Koloblob and Tanarua watercourses). As the longitudinal slope becomes flatter within the lower portions of the watercourse, flows tend to pool in topographical depressions before infiltrating into the ground. Surface water can pool for two to three weeks after heavy rainfall. Surface water flows from the upper catchment of the watercourses and drains to ground at the topographical depressions within the lower portion of the watercourse. Savaki Watercourse Characteristics The Savaki watercourse, which flows through the north western portion of the Project area comprises a narrower (approximately 10 m wide) base within its mid-section, before widening extensively with flow spreading across various flow paths within its lower portion. The watercourse side slopes are approximately 1:5 slope. Established trees spread throughout the lower reach watercourse base, with denser vegetation occurring in its upper reach. Surface water runoff conveyed down the watercourse drains to a series of topographical depressions beginning approximately 200 m to the south of the main road. Flow depths and velocities are greater through the Savaki watercourse than the other watercourses, and flows are typically conveyed quicker to the lower catchment.

Chapter 5 – Existing Environment 8

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40 30

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50 60 70

80 90 100 110 120 130 140 150 160 170 190 210

50 60 70

LEGEND Contours (2m)

Quoin Hill

220

200

170

180

160

SLR Identified WaterCourses

Indicative Drainage Zone Major Ephemeral Flow

Minor Ephemeral Flow

110 100

120

Drainage Areas

1 - Namot Watercourse

2 - Koloblob Watercourse 100

3 - Tanaura Watercourse 90 4 - Savaki Watercourse

70 60 50 40

Disturbance Footprint Date: 24/07/2014 Drawn: NT Scale: 1:10,000 Sheet Size: A4 Projection: WGS 1984 UTM Zone 59S

The content contained within this document may be based on third party data. SLR Consulting Australia Pty Ltd does not guarantee the accuracy of such information.

ÂŠ

100

150

200

Catchment Plan

FIGURE 5-7

A large patch of exposed coral exists across the base of the Savaki watercourse in its lower section. The vast majority of flow conveyed from the upper catchment tends to drain to ground rapidly at this location given the highly porous nature of the coral. Some small pools exist within a depression down gradient of the coral, approximately 75 m upstream of the main road; however this is likely to have resulted from local runoff generated in the lower catchment, rather than from surface water runoff which had flowed down from the upper catchment. A grass road drain runs either side of the main road downstream of the drainage points in the Savaki watercourse. A culvert beneath the road connects the road drains. The northern drain runs north before turning west. The drains are currently acting as soakaways, but drainage is inhibited, indicating a high groundwater level may be controlling the water level in the drain (SLR, 2014e). Ephemeral Watercourse Water Balance The water balance estimates undertaken by SLR (2014e) are outlined in Table 5-2. Table 5-2 Main Watercourse Water Balance Estimates Parameter

Units

Watercourse 1 (Namot)

Watercourse 2 (Koloblob)

Watercourse 3 (Tanarua)

Watercourse 4 (Savaki)

Approximate catchment area

37.2

22.0

46.8

32.5

Mean Rainfall

(ML/yr)

821.6

485.0

1034.2

717.5

Estimate of infiltration in upper catchment

(ML/yr)

28.8

17.0

36.2

25.1

Estimate of Evapotranspiration loss

(ML/yr)

536.1

316.5

674.8

468.2

Estimate of Mean Annual Flow to lower catchment

(ML/yr)

259.0

152.9

326.0

226.2

Estimate of Infiltration in lower catchment

(ML/yr)

258.9 to 258.0

152.8 to 151.9

325.9 to 325

226.1 to 225.2

Estimate of evapotranspiration in lower catchment

(ML/yr)

0.1 to 1

On an annual basis, the majority of water is lost through evaporation and transpiration (65%). Only a small proportion of water is predicted to infiltrate to groundwater in the upper catchment with approximately 35% (annually) forming surface water runoff, which flows to the drainage areas at the base of the slopes. During large storm events, the majority of rainfall forms surface water runoff. Groundwater resources are primarily recharged in the drainage areas in the lower, flatter portion of the catchment. The drainage areas contain either no soil, or shallow soils, overlying the highly permeable recent limestone reef. Infiltration rates within the drainage areas are therefore likely to be high. Airstrip The airstrip is typically dry except in the event of a significant, prolonged rainfall event(s) due to the high infiltration rates within the drainage areas upstream.

Chapter 5 â&#x20AC;&#x201C; Existing Environment 10

Hot Springs and Wetlands Hot springs discharge to wetland areas to the north and north east of the Project Area. Groundwater levels at the airstrip are approximately 1 m above water surface levels in the hot springs to the north and north east of the Project Area and approximately 1 to 1.5 m above water surface levels in the wetlands to the north and north east of the Project Area. Quarry Pond and Wetland A surface water pond created from historical quarrying exists to the east of the Project Area. A vegetated wetland is connected to the eastern side of the pond. The location and base elevation of the surface water pond and adjacent wetland indicates that the water level in these features is potentially maintained by groundwater inflow rather than surface water runoff. The chemical composition of the surface water pond is also very similar to that of groundwater beneath the airstrip and the hot springs, however the pond water temperature is ambient. Epule River The Epule River flows in a north easterly direction, flowing approximately 3.2 km to the south east of the Project Area at its closest point. The river is tidally influenced and water quality testing indicates that the river is brackish to saline in quality depending on depth and distance from the ocean. Drinking Water Supply The Takara villages utilises two (one old and one new) piped water supplies for both potable and nonpotable uses. The water is sourced from springs located to the south of the Quoin Hill and south of the Project area. Small open reservoirs have been constructed at two springs to collect the water. The water is gravity fed from each spring via pipes to separate tanks before being distributed to the taps in the village. The new water supply dam captures spring water in two small pools formed by a concrete dam. The watercourse which feeds the water supply spring flows above ground temporarily upstream. The old water supply tap often experiences blockages and other problems within the distribution system following heavy rainfall. A groundwater well, located in woodland to the south of Takara Landing village is used as a backup water supply when the tap systems are not operational. Given their location, the water supply springs are unlikely to be hydrologically connected to groundwater aquifers within the Project area. 5.1.3.2

Groundwater

SLR (2014e) anticipated that the presence of Quoin Hill in the southern part of the Project Area, and the coast to the north of the Project Area, would result in a general hydraulic gradient in a northerly to north-easterly direction, unless impacted by changing geology. The underlying groundwater at the site comprises a meteoric (rainfall derived) component and a geothermally derived component. The geothermal component comprises thermally altered seawater rising from depth through the underlying basalt. The meteoric component enters the ground following rainfall events and results in a shallow groundwater body comprising variably mixed freshwater and geothermally altered seawater, with fresh seawater also contributing nearer to the coast. The meteoric component of groundwater is believed to be more significant beneath the upper limestone reef deposits which receive much of the runoff from higher ground to the south (SLR, 2014e). In the upper catchment to the south, rainfall primarily runs off the basaltic hill top as surface flows over the thick, low permeability ferrosols associated with the weathered igneous bedrock on the slopes. This has incised visible channels in the clay soils on the upper slopes of Quoin Hill. Shallow groundwater is likely to be discharged as baseflow to the watercourses, which are ephemeral in nature; however SLR (2014e) consider that shallow groundwater does not contribute significantly to flow within the watercourses.

Chapter 5 â&#x20AC;&#x201C; Existing Environment 11

To the north of the basalt, at lower elevation, is a fringing limestone deposit representing the older of two raised reef deposits. The upgradient area of these strata is mantled with a layer of eroded clay soils from the upper slopes. Beyond this to the south are thin rudosols overlying karstified limestone at shallow depth. Surface water flows are noted to enter the area and seep relatively quickly to ground with limited local ponding and no significant channelling formed (SLR, 2014e). It is anticipated by SLR (2014e) that groundwater flow in this area would be generally downslope but largely governed by the distribution of fissures, fractures and other discontinuities, including dissolution features, typical of karst deposits. Downslope to the north is a further, more recent, raised reef deposit which extends to the coast and comprises reef limestone with intermittent sand and silt strata. Groundwater flow in this area is expected to be downslope, with potentially high flow rates through more permeable layers such as sands and coralline deposits (SLR, 2014e). The majority of rainfall which infiltrates to ground in the Project Area is therefore likely to seep into the limestone strata present in the vicinity of the airfield and land to the north of here. Groundwater was observed to range between approximately 1.9 and 2.7 m below ground level in wells at the air strip. The limestone is estimated to be approximately 30 m deep in this area, with basalt underlying (SLR, 2014e). Groundwater is issued at surface from springs and seepages to the north and east of the Project Area. Hot springs occur to the north east of the Project Area around Nasinu. These hot springs occur on the gently sloping land north of the airstrip, where the groundwater table intersects the topographic land surface. The high salinity and chemical composition of the water at the hot springs suggest that the spring discharges comprise mainly geothermally altered seawater mixed with fresh water. Groundwater beneath the airstrip is of similar origin. SLR undertook water balance modelling for each of the watercourses to gain an appreciation of potential annual flow and groundwater recharge volumes upstream of the airstrip. The water balance was undertaken with limited data. All hydrological and soil characteristics are theoretical and uncalibrated, therefore the results should be considered as outline estimates only. The water balance estimates are presented schematically for the Namot watercourse in Figure 5-8. Figure 5-8 Conceptual schematic of the water balance for Watercourse 1 (Namot)

Chapter 5 â&#x20AC;&#x201C; Existing Environment 12

5.1.4

Air Quality and Greenhouse Gas Emissions

There is no available ambient air quality or greenhouse gas emissions measurements for the Project Area, however there are no substantial sources of anthropogenic emissions in Takara or the surrounding environment (SLR, 2014a). The only sources of emissions identified by SLR (2014a) were from personal fires for cooking, waste disposal and after garden clearing, fires used in copra driers, and diesel generators used intermittently to charge batteries. Observations during SLR (2014a) field work indicated that natural levels of hydrogen sulphide in Takara are low, and were only detected at low levels in the immediate vicinity of the hot springs. The air quality in Tagabe, Port Vila (where the existing diesel-fired power station is located) was considered likely to be more impacted by emissions from local road traffic, the nearby airport and commercial/industrial activities in the local area (SLR, 2014a). The existing air quality was also considered to be impacted by emissions from the diesel-fired power station. The background air quality was expected to be generally good, given the siteâ&#x20AC;&#x2122;s coastal position, and the relatively low population size and absence of heavy industry. 5.1.5

Noise and Vibration

Background noise levels were monitored by SLR (2014c) at two locations considered to be representative of the nearest potentially affected residential receivers (Takara 1 and Takara 2). The first noise monitoring location, located adjacent to a residence 30 m south of the edge of the abandoned airstrip recorded background noises including wind through the trees, children playing to the side of the residence, and the occasional animal such as a domestic dog (SLR, 2014c). There was no audible noise from any public roads or the coastline. The second noise monitoring site, located adjacent to a residence approximately 20 m north of Efate Ring Road, recorded noises including wind through the trees and the occasional vehicle travelling along the Ring Road (SLR, 2014c). As few locals have a vehicle the only traffic along the Ring Road includes a public transport mini-van twice a day, tourist cars and the occasional service vehicle or truck. This second site is located approximately 80 m south of the edge of the marine environment; however as the coast has a large fringing reef and islands to the north there is little noise influence from the ocean. These background noise monitoring results are presented in Table 5-3 below. Table 5-3 Takara Background Noise Levels Ambient Noise Levels (dBA)

Date / Location 1

Takara 1 Day Time

Takara 2 Day Time

Overall LA903

Overall LAeq4

Overall LAMax

119

104

Takara 1 Night Time Takara 2 Night Time Notes: 1. 2. 3. 4.

Daytime 07:00 to 22:00. Night-time 22:00 to 07:00. The overall LA90 is the median of the daily LA90 noise levels during the monitoring period. The overall LAeq is the daily logarithmically averaged equivalent continuous noise level.

It was also noted that the night-time background and ambient noise levels at both sites were affected by rain therefore resulting in higher noise levels than during the daytime period, and potentially masking noise emissions from other sources.

Chapter 5 â&#x20AC;&#x201C; Existing Environment 13

5.1.6

Landscape and Visual Amenity

Takara Area The general topography pf the Takara area is low lying, predominantly flat terrain from the coast of Takara up to the foothills of Quoin Hill. Within the Takara area, the landscape is typically made up of cleared and or heavily disturbed coastal lowlands with grassland cover. Regenerating coastal scrub and pockets of primary forest in the hills are also present. Dwellings are typically made from locally sourced materials, and include bare earth floors, rooves and cladding of thatched local vegetation, occasional brick or rock constructions with some corrugated iron. Land uses are typically small family enclaves with simple dwelling structures. Localised subsistence cultivation is undertaken, and there is a small scale fishing industry along the coast, particularly at Takara Landing. The topography of the Takara area, an aerial image of the Takara area, the Beachcomber Resort Entrance, and the Takara Landing View to Emao Island are all presented in Figure 5-9. Figure 5-9 Takara Area Landscape Topography of Takara Area

Aerial Image of Takara Area

Beachcomber Resort Entrance

Takara Landing View to Emao Island

Chapter 5 â&#x20AC;&#x201C; Existing Environment 14

Abandoned Takara Airstrip The Abandoned Takara Airstrip was cleared and constructed by United States forces in WWII. The Airport is located on flat terrain and vegetation is typically cleared and or heavily disturbed coastal lowlands with grassland cover. The airstrip land is vacant and used as a community area and in the past has been used for off-road racing. The area is used for grazing by few local livestock and as a thoroughfare between the coast and slopes of Quoin Hill. There is also a football field at the eastern end of airstrip. The topography of Takara Airstrip, as well as an aerial image, a view across the airstrip to an existing residence, and the view across the airstrip to Quoin Hill are presented in Figure 5-10. Figure 5-10 Abandoned Takara Airstrip Landscape Topography of Old Takara Airstrip

Aerial Image of Old Takara Airstrip

View across abandoned airstrip to existing residence

View across abandoned airstrip to Quoin Hill

Chapter 5 â&#x20AC;&#x201C; Existing Environment 15

Typical Drill Zone The topography of the typical drill zone locations (refer Section 4.3) is relatively flat at lower slopes of Quoin Hill, with higher slopes up the hill. The vegetation of the area is made up of rainforest canopy species interspersed with market and subsistence gardens and plantations. The area has a generally dense canopy with regenerating native forest and gardens cleared at ground level. There are no built structures in the area, as the land is primarily used for native vegetation and fauna habitat, and subsistence and market gardening. The topography of the proposed drill pad areas, an aerial image of these areas, and images of the typical drill pad areas are presented in Figure 5-11 below. Figure 5-11 Typical Drill Zone Landscape Topography of Drill Pad Areas

Aerial Image Typical Drill Pad Area

Typical Drill Pad Area

Chapter 5 â&#x20AC;&#x201C; Existing Environment 16

Typical Forest / Gardens The topography of the typical forest and garden areas is gentle to steeply undulating terrain, located on the lower slopes of Quoin Hill. The area is covered in densely vegetated secondary forest, interspersed with partially cleared areas for crop production. There are no built structures and the land use is primarily native vegetation and fauna habitat. The land is also used for cattle grazing and subsistence and market gardening, with a number of coconut and fruit tree plantations. The topography of the typical forest/garden areas, an aerial image of these areas, and images of the typical vegetation are presented in Figure 5-12 below. Figure 5-12 Typical Forest / Gardens Landscape Topography of Typical Forest / Garden

Aerial Image of Typical Forest / Garden

Coconut Palm within plantation

Cleared area with recent garden planting

Chapter 5 â&#x20AC;&#x201C; Existing Environment 17

5.2

Biological Environment

5.2.1

Terrestrial Ecology

5.2.1.1

Flora

Although the islands of Melanesia have moist tropical climate and the vegetation mostly consists of evergreen forests, the forests of Vanuatu are generally lacking in diversity in comparison with the vegetation of other Melanesian islands (SLR, 2014f). This has been attributed to a number of factors, including the comparative geological youth of the islands, as well as their geographical isolation and the frequency of cyclones and seismic and volcanic activity. SLR undertook a baseline flora assessment of the Project Area, during which a total of 294 plant species were recorded, including two endemic species (Ficus aspera and Geiossois denhamii) and five species that are listed in the IUCN Red List (SLR, 2014f). These plant species are classified as LC (Least Concern) in the IUCN Red List and exist in the Project area: 

Cycas circinalis (Namele). One individual was recorded on the edge of a track, adjacent to Takara Landing village and adjacent to the proposed alignment of the seawater pipeline;



Erythrina variegata var. variegata, (Narara), a tree, but mostly occurring as a shrub, which was an occasional occurrence along vegetation edges in secondary forest, and an uncommon occurrence in patches of regenerating scrub in grassland;



Patches of Canavalia sericea, a groundcover, usually over sand, were recorded in sections of hind-dune, usually immediately behind the first line of Scaevola taccada or Pandanus;



Several small clumps of Brachiaria reptans, a grass, were recorded in open patches of secondary forest, adjacent to Zone C; and



Scattered individuals of Fimbristylis cymosa (tentatively identified), a sedge, were recorded in low-lying patches within the Seashore Forest and in Grassland.

The Vanuatu National Biodiversity Strategy and Action Plan (NBSAP, Environmental Unit, 1999) categorises the flora of Vanuatu into four groups, including; endemic plant species, plant species of cultural and economic value, plant species locally vulnerable to over exploitation and plant species that are rare or vulnerable. 101 of the 294 species recorded are described as culturally and economically important, and one species (Santalum austro-caledonicum) is listed as ‘Rare or Threatened’ and ‘vulnerable to exploitation’. Four broad vegetation types are located within the Project area, which include: 

Primary Forest, occurring on a ridge and drainage line in the south-west of the site, on the mid-slopes of Quoin Hill;



Secondary Forest including gardens, extending from the grassland and up the lower slopes of Quoin Hill;



Grassland, including regenerating scrub and forest, covering a large proportion of the airfield; and



Seashore Forest, extending from the fringing reef inland towards the road.

The area of each vegetation type within the project are listed in Table 5-4 and shown on Figure 5-13.

Chapter 5 – Existing Environment 18

229000

8060200

228000

8059200

Beachcomber Resort

Zone E

Injection Drill Pad Ring Road

Takara

Laydown Area

Geothermal Power Station

Alternative Exploration Site to Zone D

Seawater Cooling Pipeline (if required) Takara Landing

Zone A

Zone C

Baofatu

Production Drill Pads

Exploration Drill Zones 8058200

Zone B Rin gR oa

Quoin Hill

8056200

8057200

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Zone D

LEGEND Vegetation Community Primary Forest Secondary Forest and Gardens Grassland and Regenerating Shrubland Forest Beach Forest Disturbance Footprint Date: 24/07/2014 Drawn: NT Scale: 1:16,000 Sheet Size: A4 Projection: WGS 1984 UTM Zone 59S

The content contained within this document may be based on third party data. SLR Consulting Australia Pty Ltd does not guarantee the accuracy of such information.

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Vegetation Communities

FIGURE 5-13

Table 5-4 Vegetation Types Vegetation type

Area (ha)

Primary Forest

4.8

Secondary Forest and Gardens

75.5

Grassland and Regenerating Shrubland Forest

65.8

Seashore Forest

14.1

Total Area (ha)

160.2

Primary Forest is located in the south-western parts of the Project area, on the mid-slopes of Quoin Hill. The patch follows two main drainage lines, as well as a section of steep ridgeline. The height of the patches is usually >20m, with emergents to 28m, and the projective foliage cover is usually over 60%. Ficus (fig) species occur as emergents, especially further upslope. Trees have buttress root systems and there is a sparse mid-storey to groundcover of ferns and forbs. Vine (liana) and shrub thickets are common, especially along vegetation edges, and terrestrial and epiphytic ferns are common. Secondary Forest (including gardens) extends from the southern edge of grassland, upslope to the southern limit of the Project area. Tracks extend from the grassland upslope to various gardens, and some garden areas are fenced. The vegetation is of variable height, structure and density, depending on disturbance history. Height ranges from <0.3m in the grassland patches, to 3m in current gardens, to regenerating fallow areas with emergent trees to 26m and a mid-storey from 4 to 12m. Projective foliage cover varies from <30% in current gardens to >60% in regenerating fallow patches. Vines are common, especially along tracks and vegetation edges. Some monotypic plantations occur, and lines of citrus species form an edge to some tracks and gardens. A wide range of introduced and native food trees occur. On the mid-slopes, in the southwest portion of the Project area, there are some patches of grassland, consisting mostly of exotic grass species. In the early stages of secondary succession, heliophytic vines are abundant within recently cleared patches. Grassland (including Regenerating Shrubland) occurs over the area that had been cleared and levelled for the abandoned airstrip. Most of the area is covered by grass and forb species, with regenerating scrub mainly restricted to edges and low-lying patches. This vegetation type extends eastwards to the Ring Road, northwards towards Nasinu Village and southwards to the foothills of Quoin Hill. The areas of grassland vary in height from 0.5m to 1.2m. The patches of regenerating shrub thicket vary from 3m to 5m. Projective foliage cover varies from <30% in most grasslands to <50% within regenerating shrub thickets. This vegetation has the lowest diversity of the four vegetation types occurring in the Project area and has the highest representation of introduced grass and forb species. Seashore Forest occurs as a mostly dense thicket extending from behind the Takara village houses on the Ring Road to the beach. The vegetation is of variable height, ranging from 1m close to the beach to 12m closer to dwellings on the ring road. Projective foliage cover varies from <20% adjacent to the beach to <65% within dense thickets. Vines are common within the canopy and seedlings and juvenile trees and shrubs are plentiful, especially along track edges. An old road forms a gap heading northwest to southeast. Natural self-recruitment is occurring over the road alignment, although introduced grass and forb species have established a dense cover in some patches. Other gaps are not so extensive, and are the result of pedestrian access and tree-felling. 5.2.1.2

Fauna

SLR undertook a baseline fauna assessment of the Project Area, during which three broad habitat types were present: ď&#x201A;ˇ

Forest, including Primary Forest, occurring on the mid-slopes of Quoin Hill and Secondary Forest, including gardens and plantations, extending from the grassland and up the lower slopes of Quoin Hill.

Chapter 5 â&#x20AC;&#x201C; Existing Environment 20



Grassland, including regenerating scrub and forest, which occupies the relatively flat, level ground of the airstrip, between the Ring Road and the foothills, and north of the Ring Road (in Zone E); and



Seashore Forest, extending from the fringing reef inland towards the Ring Road (through which the seawater pipeline is proposed to travel).

An additional habitat type, Freshwater Wetland, was recorded in close proximity to the study area. Each of these broad habitat types is described below. The area of each habitat type, as mapped during the site survey, is listed in Table 5-5, and the locations and extent of each habitat type are indicated in Figure 5-14. Table 5-5 Mapped areas of habitat types Vegetation type

Area (ha)

Forest (including Primary Forest, Secondary Forest and Aquatic/Riparian)

80.3

Grassland and Regenerating Shrubland Forest

65.8

Seashore Forest

14.1

Total Area (ha)

160.2

Forest habitats within the study area are described in Section 5.2.1.1. A range of introduced ground species occur throughout this habitat, including feral cat, domestic dog, and pig, which are likely to be natural predators of the locally indigenous birds, reptiles and mammals of the locality. Resources observed and available to locally occurring fauna in the Forest habitat include fruits of planted fruit trees and native rainforest trees, flowers and blossom of all trees and plants, rock ledges and overhangs, coconut palms, and tree-hollows. Forest habitats are utilised by a range of native and introduced species. Fauna species observed in this habitat and likely to utilise this habitat include: 

Ground dwelling mammals, including dogs, feral cats and wild pigs;



Ground dwelling birds, notably the Vanuatu Megapode, of which mound nests and direct footage was recorded in the western parts of the study area, southwest of the airstrip;



Forest birds, particularly the larger doves, such as the Pacific Imperial Pigeon and Pacific Emerald Dove, parrots (e.g. Coconut Lorikeet), Vanuatu Kingfisher and the Grey-eared Honeyeater; and



Flying foxes, which were spotlighted foraging within the Coconut Palms and on rainforest trees; and microchiropteran bats, which were recorded in this habitat type.

Grassland and Regenerating Shrubland is described in Section 5.2.1.1. The grassland habitat is largely homogeneous and simple in structure. The grasses, when seeding, would provide a source of forage for locally occurring small granivorous birds, such as the introduced Common Waxbill. The airspace above the grassland contains a range of flying insects that provide a source of forage for some bird species, typically those that range widely over large spaces and are mostly on the wing, such as Welcome Swallow, Pacific Swallow and White-breasted Woodswallow. Species, Indian Myna, were recorded in this habitat.

Chapter 5 – Existing Environment 21

229000

8060200

228000

8059200

Ring Road

H Zone C

8058200

Exploration Drill Zones

Hollow-bearing Trees

8057200

Takara

^ Seawater Cooling Pipeline (if required)

H ^^

Baofatu

Production Drill Pads Coconut Palms

H H

Takara Landing

Zone A

Zone D

8056200

Laydown Area

Geothermal Power Station

Alternative Exploration HSite to Zone D

H:\Projects-SLR\630-SrvNTL\620-BNE\620.11005 Proposed Takara Geothermal Project\Figures\ArcGIS\Report Figures\ESIA\SLR62011005_F5-14FaunaHabitats_01.mxd

Beachcomber Resort

Zone E

Injection Drill Pad

Fruit Trees and Gardens Zone B

Rin gR oa

Quoin Hill

LEGEND Habitat Type Forest Grassland and Regenerating Shrubland Beach Forest Fauna Resources

Frogs (Green and Golden Bell Frog)

Habitat (including hollow-bearing) Trees

Megapode Nests Vanuatu Megapode Habitat (known) Vanuatu Megapode Habitat (predicted) Freshwater Wetland Aquatic and Riparian Disturbance Footprint Date: 24/07/2014 Drawn: NT Scale: 1:16,000 Sheet Size: A4 Projection: WGS 1984 UTM Zone 59S

The content contained within this document may be based on third party data. SLR Consulting Australia Pty Ltd does not guarantee the accuracy of such information.

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Fauna Habitat Types & Resources

FIGURE 5-14

The stands of shrub growth that occur throughout provide more substantial shelter and foraging resources for locally occurring birds, and possibly small ground mammals and bats. The dense cover provided by the shrub canopy would provide protection from predatory birds and daytime heat, and the presence of a limited range of flowering plants would provide a source of fruit and blossom for a selection of mainly bird species. Indeed, birds were active in these shrubland patches during the survey, and the suite of species recorded in this habitat differed from those recorded in forest habitats on the adjoining footslopes. Species such as the Long-tailed Triller, Buff-bellied Monarch and Melanesia Whistler, were recorded in these areas, along with smaller passerine species such as the Vanuatu White-eye, Pacific Swallow and White-breasted Woodswallow. The introduced Indian Myna was prevalent throughout this habitat. Microbats were observed overhead during dusk and spotlighting surveys in the grassland habitats, although there are little if any, roosting sites in these areas, as the trees do not appear to contain hollows or other roosting resources. The soils in this habitat type are most heavily compacted, as a result of the previous use as an airfield. Hence, the ground is not suitable for burrowing animals recorded elsewhere in the study area (e.g. Vanuatu Megapode, pigs, and rats). Seashore Forest is described in Section 5.2.1.1. For locally occurring fauna, the dense forest canopy provides protection from heat and sunlight, wind and rain, and the flowering plants present provide a source of forage. The habitat area is subject to frequent and ongoing human disturbance, including pedestrian access, hunting and tree-felling. Seashore Forest is utilised by a range of native and introduced species. Fauna species observed in this habitat and those that are likely to utilise this habitat include ground dwelling mammals, the Vanuatu Megapode, forest birds, and flying foxes. Reports from local villagers suggest that the Vanuatu Megapode was historically numerous in this habitat type, however there was little evidence of its presence during the SLR survey. Freshwater Wetland is located beyond the eastern limit of the study area. Adult male Green and Gold Bell Frogs were observed and heard calling from this wetland. Similarly, a population of Green and Golden Bell Frogs was recorded on the edges of a wetland system located north of the Ring Road. It is likely that the wetland in this area forms the southern margins of a more extensive wetland system that extends north towards to the hind dunes north of Takara. Fauna Species A fauna assemblage of 39 vertebrate species was by SLR during the baseline studies, comprising 36 native species and six exotic species. The fauna assemblage is composed of 27 birds, six mammals, five reptiles and one amphibian. The 27 bird species recorded included shorebirds, wetland birds, small to medium sized woodland birds, forest birds; large raptorial birds; large ground birds, and small passerines. The five reptile species recorded included the Pacific Boa, Melanesian slender-toed gecko, House gecko, Vanuatu snake-eyed skink, and Pacific slender-toed gecko. One amphibian species was recorded during the survey period – the introduced Green & Golden Bell Frog (Litoria aurea). Eleven mammal species were recorded within the study area. These include one rodent, two flying foxes, four introduced/domesticated ground mammals; and four microchiropteran bats. According to the NBSAP, seven of the SLR recorded species are ‘endemic to Vanuatu’ (six birds, one mammal), six are ‘of cultural and economic value’ (four birds, two mammals), five are ‘locally vulnerable to overexploitation’ (three birds, two mammals), and six are ‘rare or vulnerable’ (three birds, three mammals). Of the avifauna assemblage recorded during the current investigation, 27 birds are listed under the IUCN Red List. Of these, 24 are listed as Least Concern, two as Vulnerable (Vanuatu Megapode, Vanuatu Imperial Pigeon) and one as Near Threatened (Vanuatu Kingfisher). Six of the recorded mammal species are on the IUCN Red List, including two as least concern (Polynesian rat, Little Bentwing-bat), two as vulnerable (Vanuatu flying fox, Pacific flying fox) one as endangered (Fijian Free-tailed Bat) and one as data deficient (Small Melanesian Bent-wing-bat). Of particular note are the presence of the Red Listed flying foxes within the study area and the record of the Fijian Mastiff-Bat Tadarida (syn Chaerephon) bregullae. Chapter 5 – Existing Environment 23

Four of the five reptiles recorded during the current study (Pacific boa, House gecko, Melanesian slender-toed gecko and Pacific slender-toed gecko) are listed as ‘Least Concern’ on the Red List. 5.2.2

Aquatic Ecology

The following wetland types occur within the locality of the Project area at Takara: 

hot springs with algae, including the hot springs tourist site located west of the Project area, plus one small hot spring located just south of the airstrip. Aquatic habitats have not been observed at the hot spring site within the Project area;



freshwater swamp and marsh, with two sites recorded close to, but outside of, the Project area; and



lowland rivers.

In relation to lowland rivers, several watercourses drain the Project area as outlined in Section 5.1.3. The water courses that traverse the Project area all originate on the slopes of Quoin Hill to the south. They traverse downslope through areas of Primary and Secondary forest in a generally northerly direction, before terminating at the base of the hill, south of the airstrip. The watercourses are considered to be ephemeral and would be dry (or restricted to subsurface flows) during drier months. The Epule River flows in a north easterly direction, flowing approximately 3.2 km to the southeast of the study area at its closest point. It is intended to abstract surface water from the river for use as a freshwater resource for the project. An aquatic habitat assessment was conducted, and water quality sampled, at a point on the lower portion of the River near the proposed abstraction site. The river was observed to be tidally influenced at this location and water quality testing indicates that the river is brackish to saline, depending on depth and distance from the ocean. No aquatic fauna surveys were conducted by SLR as part of the baseline flora and fauna assessment. Given the ephemeral nature of the watercourses within the Project area, the lack of connectivity between the watercourses that traverse the Project area, and the sea or nearest estuary, it is unlikely that the Project area supports a substantial or permanent freshwater aquatic fauna (SLR, 2014f). The exception is the Epule River, which is a larger permanent slow flowing river that discharges at the coast just north of the village of Epule. These features suggest that a diverse and permanent aquatic fauna assemblage is present in the river year round (SLR, 2014f). 5.2.3

Marine Ecology

The marine environment adjacent to the Project are comprises of a mosaic of habitats that form a flat reef extending out from the beach/shore, which becomes immersed at low tide, and an outer fringing reef that slopes into deeper water. A natural occurring hydrothermal vent is also located within the reef flat habitat. The intertidal nature of this area also exposes large portions of the reef to harsh climatic conditions. Soft corals dominate the more turbulent waters of the outer fringing reef, and hard corals dominate the sheltered waters of the reef flat habitat. These reef flat areas contain high numbers of species including molluscs, worms and decapod crustaceans. Five marine benthic habitat types were identified, including: 

Habitat 1 - Outer Fringing Reef - a high impact zone approximately 200 m from the shore where the reef flats drop steeply to approximately 10 m forming a sheer coral wall which supports a highly diverse mixed coral community. This habitat supported the widest diversity of coral species, however the soft coral species were dominant in the coral community. The Outer Fringing Reef is 7.92 ha in size.



Habitat 2 - Near Shore Coastal Habitat - the zone extending seaward from the foot of the wall formed by the Outer Fringing Reef, with water depths ranging from 10-35 metres. The substrate in this habitat is predominantly crushed coral and rock It is the area where the primarily wave action occurs, consisting predominantly of sandy and interspersed rocky substrate. Coral coverage is sparse in this habitat due to the lack of hard substrate and reduced light levels at depth. Near shore coastal waters habitat covers an area of 13.7 ha.

Chapter 5 – Existing Environment 24



Habitat 3 - Reef Flats - This habitat lies on the sheltered side of the reef between the Outer Fringing Reef and the Beach/Rocky Shore and ranges in water depth from 0-1.5 meres. The substrate consists mainly of coral rock, loose sand, algae and hard corals. This area is 13 .92 ha in size and typically can experience the widest variations in temperature and salinity due to its shallow nature.



Habitat 4 - Reef Flat/Seagrass Complex - This habitat lies on the sheltered side of the reef between the Outer Fringing Reef and the Beach/Rocky Shore in water depths ranging from 01.5 meters, consisting of a similar substrate composition to that found within the Reef Flat area. However, the loose sandy substrate areas support a sparse covering of sea grasses and filamentous algae. This habitat type is 0.83 ha in size.



Habitat 5 - Intertidal Zone - This habitat forms the zone between the land and the Reef Flat and is 3.29 ha in size. It typically consists of loose sediment (sand, gravel, cobbles) closet to the land and extends into a rocky intertidal area that consists of solid rocks. Intertidal habitats are typically biologically rich and many gastropod and bivalve molluscs were observed as well as crabs and fish.

These habitat areas are shown in Figure 5.15 below. Figure 5-15 Habitat Map of Takara Investigation Area (SMEC, 2014a)

Marine benthic habitats are classified as healthy (SMEC, 2014a). The representative coral communities show little sign of disease, anthropogenic induced stress or bleaching. The baseline marine water quality results indicate that water quality is also good, due to the small local population, lack of large-scale agriculture or industry, the exposed nature of the coast and resultant high water circulation.

Chapter 5 – Existing Environment 25

Silver concentration within sediments exceeds the representative guideline trigger levels of the National Assessment Guidelines for Dredging (NAGD) and National Oceanic and Atmospheric Administration (NOAA) screening levels, however as silver concentrations are naturally elevated in water around hot springs and steam wells, the elevated silver concentration levels are attributed to natural processes (SMEC, 2014a). Apart from elevated silver concentrations, sediments near the Project area have a low contamination status (SMEC, 2014a). The sediment in the marine environment is comprised of very coarse grain crushed coral with very few fines and low organic content. The large grain size limits the infauna community at each site to organisms with a hard carapace (e.g. crabs) or an outer shell (e.g. molluscs) (SMEC, 2014a). Marine animal tissue metal concentrations were within the Australia New Zealand Food Authority (ANZFA) standards (SMEC, 2014a). There is a wide diversity of reef fish in the marine areas adjacent to the Project site, with most fish species small to medium in size (SMEC, 2014a). Dugongs and hawksbill turtles have also been recorded in the area; however the beach is not conducive to marine turtle nesting. Marine turtles have been observed nesting on adjacent beaches (SMEC, 2014a).

5.3

Social / Cultural Environment

5.3.1

Regional Setting

Efate is located in Shefa Province and is one of the six provinces within the Republic of Vanuatu (refer Figure 5-16). Efate has a population of 79,212 people based on the latest estimate by the Vanuatu Statistic Office (SMEC, 2014b). Shefa is made up of approximately 27 islands, Efate being the most populated and also the location of the Vanuatu capital, Port Vila. Both anecdotal and statistical information shows an increase in urbanisation, migration from other provinces and general increases in population from within Shefa (SMEC, 2014b). Most of Shefaâ&#x20AC;&#x2122;s population reside in the coastal areas of Efate and this includes the coastal villages within Takara, where the proposed Project is to be developed.

Chapter 5 â&#x20AC;&#x201C; Existing Environment 26

Figure 5-16 Map of Vanuatu Provinces

Historically the Melanesian people of Efate resided in small, group-based villages, separated by mountains, jungle and rocky coastlines (Vanuatu 2006). Each group had their own language and particular cultural norms and nuances. The residents of Efate lived and continue to live in the shadow of their ancestorsâ&#x20AC;&#x2122; spirits. Magic provided a defence against angry spirits. In this context there are a number of myths and creation stories which signify the origins of different claimants to the Takara area. In the 1880s both France and the United Kingdom (UK) claimed parts of the country for farming, as a trade centre and for missionary work. By 1906 France and the UK agreed on a framework for jointly managing the archipelago as the New Hebrides (SMEC, 2014b). Ongoing disputes arose with the local Ni-Vanuatu inhabitants largely over land disputes which were quelled by the British and French governments by force. The 1940s WWII brought a large American military presence to Vanuatu with the country utilised as a base for attacks on the Japanese in Solomon Islands and Papua New Guinea. The Americans largely treated the Ni-Vanuatu people with more respect than their colonial masters and they also paid wages for their services. This encouraged the Ni-Vanuatu people to renew their aspirations for independence. By the 1970s Efate became the centre for the independence movement with Father Walter Lini leading the first National Party as Prime Minister in government from 1980 to 1991. The Republic of Vanuatu was founded in 1980.

Chapter 5 â&#x20AC;&#x201C; Existing Environment 27

5.3.2

Population Characteristics

The 2009 Census records the Vanuatu population as 234,023 (SMEC, 2014b). Yet the majority of people in Vanuatu live in rural villages of less than 200 people. The average recorded growth rate is 2.3 percent (Vanuatu Census 2009, cited in SMEC, 2014b). Vanuatu’s human development index value in 2012 was 0.626, in the medium human development category, positioning the country at 124 out of 187 countries and territories (Government of Vanuatu; 2014, cited in SMEC, 2014b). Table 5-6 below provides the broader picture of Vanuatu’s Key Development Indicators 2010-2011. Table 5-6 Key Development Indicators - Vanuatu Indicators

Measure

Year

Human Development Index and (ranking)

0.617 (125 of 187)

2011

GDP per capita in PPP terms (constant 2005 international $)

$4,939

2011

Multidimensional Poverty Index (%)

0.129

2011

Proportion of population in severe poverty

6.5%

2011

Proportion of population vulnerable to poverty

35%

2011

Population Growth Rate

2.3%

2011

Life expectancy at birth

2011

Maternal Mortality ration(per 100,000 live births

110

2010

Infant mortality ratio (per 1,000 live births) 25 2010 Source: International Human Development Indicators Vanuatu Country Profile 2011; WPRO CHIPS 2011 (cited in SMEC, 2014b).

Approximately 20 percent of the Vanuatu population reside in the capital Port Vila (population 44,040) which is also located in the Shefa Province. The remaining population of Shefa Province live in rural areas. Takara is a small rural village located in Northern Efate in the Shefa Province with a recorded population in 2007 of 228 people (VNSO 2007 cited in SMEC, 2014b). The Takara community is made up of two core villages: Natakoma Komuniti (the Corner Village) and Takara Landing. There is also one neighbouring village: Savak, whose boundaries meet with Takara’s boundaries to the west of the abandoned airstrip near the proposed drilling site for the Project. There is a close relationship between the island of Emao (Emau) and Takara, with close networks, reciprocal obligations and constant inter community travel. The 2009 Census reveals that Rural Efate is home to 33 percent of the Efate population. In rural Efate 34.5 percent of the population; and in Emau approximately 47.5 percent of the population are under 15 years of age. This leads to high dependency rates within the community. It also presents a significant challenge in coming years as younger members of the community must transition from compulsory free primary education to secondary education which is costly and not affordable to many. In the SIA survey undertaken by SMEC (2014b), 50 percent of respondents indicated they earned between 600 to 4000 vatu per month. Almost two thirds (61%) of households comprise 5 to 10 persons. Household size is subject to variations due to regular migration between Takara, Natakoma and Emao Island villages. Only 16 percent of households surveyed had over 10 people living in their house, and most community members do not believe that overcrowding was an issue in their community (SMEC, 2014b). The majority of houses are built from a mixture of corrugated iron sheets and wood although a few also have coconut thatching in the walls and or roofs. Many are situated on concrete slabs. The yards are kept neat and clean by the women and despite having limited material goods there is a general sense of pride in the community (SMEC, 2014b).

Chapter 5 – Existing Environment 28

5.3.3

Culture and Social Dynamics

Land has always been an integral part of the Takara claimant’s culture and identity, defining traditional landowners and providing the food security for the resident communities. This is consolidated in the Vanuatu Constitution (1980) which states that ‘the rules of Kastom shall form the basis of ownership and use of land’. Community Roles and Social Hierarchy The social hierarchical structure of Takara community is common across the claimant groups to the area. The hierarchy can be summarised as indicated in Figure 5-17. Figure 5-17 Hierarchy of community decision making in Takara

The chiefs are traditional leaders with a right to speak for Kastom. They are headed by a Paramount Chief who represents the community at the Malvatumauri – (Council of Chiefs). All community decision making is made by the chiefs with the paramount chief making the final decision. Currently this title is undecided, pending the decision on the Kastom owner of Takara. Land and Kastom The Takara culture is immersed in land and Kastom, with land providing subsistence agriculture which provides both food security as well as culturally significant offerings for Kastom events. Yams are the most important cultural crop and cultivation decides the cycle of the year, and months follow the planting and harvest of yams (SMEC 2014b). While land boundaries exist between different areas (that is Takara and Savaki), the land within the Takara area is currently managed under the custodianship of the Ameara Wetern Manapangmanua and NtainKanas groups until such time that there is a decision on the appropriate Kastom landowner. Upon such a time the paramount chief(s) can be appointed for the area. Within each group the land is communal and to acquire land for gardening, people must approach the relevant chiefly spokesperson. Once land is acquired each claimant group has slightly different practices regarding ongoing land use and ownership. These are summarised as follows: 

Some groups within Takara and Savaki identify that the land boundary belongs to the paramount chief; however the land itself can be passed down to children through the male lineage.

Chapter 5 – Existing Environment 29



The Ameara Wetern Manapangmanua group jointly maintain the custodianship of the Takara land (with the Ntainkanais Group) under their paramount chief, Chief Billy Ameara of Takara who was recently ordained by the group as the Ameara Liu. His spokesperson can determine who has access to garden areas. While this position is currently not legally recognised as Paramount Chief of Takara until a land decision has been reached through the Tribunal, his position is consolidated within the Ameara Wetern Manapangmanua Group.

Cultural Heritage Cultural heritage can be broadly defined as the qualities and attributes possessed by places and objects that have aesthetic, historic, scientific, cultural or social value for past, present or future generations. It includes the intangible heritage, such as stories, legends, memories, social customs, values and practices, aesthetic and spiritual beliefs, artistic expression, language and other aspects of human activity (Australian Government, 2001). Furthermore, cultural heritage is constantly evolving with the significance of a place and object increasing because of its rarity or special associations with a person or group of persons, or a, period in time or an event. However, its significance can be reduced by a number of internal and external environmental influences. Cultural heritage is central to the identity, liveability and sense of community of the Takara community in a period of potential growth. It is a view their origins, their past and provides a pathway to their future. As such cultural heritage encompasses and enriches people’s psychological, emotional and spiritual wellbeing and provides the cohesiveness and connection to community and the local environment that is enduring over time. Key significant aspects of Takara’s cultural heritage include the following: 

The Nakamal is the administrative hub of a community. It is where the community decisions are made and where community priorities are determined. It holds cultural significance as it is where customary decisions are made by the community chiefs and leaders. A very old Nakamal is located on the eastern side of Quoin Hill, outside the proposed Project site, signified by a large Banyan tree, which encompasses an old oak tree. A sizeable Nakamal is being built at Natakoma and a larger one at Takara Landing is currently being constructed. These will become the chiefly community halls where all community business will be conducted.



A geothermal surface feature is located south-west of the abandoned airstrip. The feature has heated groundwater leading to warm soil at the ground surface, which is used to cook some foods, including the scrub duck eggs and dry the coconut fronds and pandanus leaves (the material used to weave baskets).



A key local food source, the ‘scrub ducks’ (megapoda) also bears a cultural significance to the Ameara group. It is reported by local residents that the scrub ducks were once plentiful and laid their eggs on the coastal areas in sand. However with population growth the numbers have been reduced considerably and now they lay their eggs in a more protected cave areas on the hillside of Quoin Hill.



Cemeteries are provide a historic record of the Takara society and the areas growth and evolution. The cemeteries on the hillside are a legacy of the tribal wars. While the cemeteries do not hold the ancestors of the current custodians of Takara, and indeed the local guides did not know whose remains rested in the graves, the respect for the dead was evident. The Cemetery at Wiana on the island of Emao is the site where many of the current Takara custodians will be laid to rest. The graveyard is situated on the seaside facing Takara. However, this site is being undermined by severe erosion from the sea as a result of ‘climate change’ effects. Efforts are being undertaken to mitigate this damage from the sea.



Memorials describe an event of cultural significance to a community.

These areas of cultural significance are presented in Figure 5-18.

Chapter 5 – Existing Environment 30

5.3.4

Education and Training

A number of studies and surveys, in relation to education and literacy levels in Shefa have been undertaken. Most recently the Education Experience Survey and Literacy Assessment Shefa Province, Vanuatu (ASPBAE and VEPAC, April 2011) highlighted education as a key socio-economic concern, which can be translated at local levels to the study area at Takara. As shown in Table 5-7, a high percentage of Shefa’s population has completed primary education (70.7%). This is important, as primary education provides the basic knowledge and skills to undertake important to daily life activities (i.e hygiene, sanitation, health, nutrition). Significantly less attended secondary education (Secondary to Year 10 – 16.75%; Secondary to Year 12/13 – 2.85%). Tertiary educational attainment in Shefa is the lowest at only 0.45 percent. Table 5-7 Highest Level of Education Attended for Adults Declared Level of Schooling Never Attended Primary Secondary to Year 10 Secondary to Year 12/13 University Total

Percentage Adults Attended 9.25 70.7 16.75 2.85 0.45 100

Data Source: Education Experience Survey and Literacy Assessment, Shefa Province, Vanuatu, ASPBAE and VEPAC, April 2011

Primary Education Generally, more males completed primary education compared to females, although the difference is not so significant with 71.9 percent and 66.3 percent for males and females respectively. It is noteworthy that the percentage of primary education completion was higher for the younger age cohort with 70 percent for age cohort 25 to 29 years old and 54.7 percent for age cohort 50 to 60 years old. The results of the survey reveal an increasing percentage of primary education completion for younger population. This trend suggests positive signs of improvement for primary education in Shefa. Secondary Education As shown in Table 5-7, only 16.75% of the population have completed year 10 and 2.85% completed Year 12/13. Similar to primary education, more males have completed secondary education than females. Tertiary Education Tertiary education is the least attended level of education in Shefa. Unlike primary and secondary education levels, tertiary education is currently attended by more females than males but completed by more males than females. Community and Technical / Vocational Education In addition to formal education, community and technical education are also accessible in Shefa. Thirty percent of the population have participated in community education/training program in the last three years based from the education experience survey (ASPBAE and VEPAC; April 2011). The focus of these training programs was: religious instruction, literacy improvement, cash income skills, community development and health. Technical/vocational education, on the other hand, was attended by only 10 percent of both females and males. In the study area, there are two primary schools servicing Takara, namely Takara Primary School which has a current enrolment of 65 students and extends to Grade 4 only and Manua Primary School in Poanangisu Village which extends to Grade 8.

Chapter 5 – Existing Environment 32

Onesua Presbyterian College is a private high school located in the study area. Onesua is one of only six Secondary schools in Vanuatu, and students come from all the Islands, to board there in term time. Principal Graeme Kalmar is now leading the College, with 30 academic staff and 24 auxiliary staff. They have a student population of about 400 ranging from Year 7 to Year 12, and have recently begun a Year 13 programme. Epule Rural Training Centre operates in the broader study area, offering courses in carpentry, mechanics, home care and electrical studies. The Australian Aid (DFAT) Government-funded Technical Vocational Education and Training (TVET) Sector Strengthening Program has provided significant funding for this college. It was suggested by Provincial authorities that the training centre may be relocated to Port Vila in the near future. The Shefa Strategic Development Plan refers to a number of challenges with education, including a lack of ownership by local stakeholders (parents, chiefs, churches etc) to support schools and poor school governance, which limits ability to collect data. In addition to this, resourcing, in terms of finding qualified teachers willing to transfer out of Port Vila and poor facilities, including in some teachers not having desks or houses to reside in, are some of the issues generally facing the education sector in Shefa Province and would equally apply to local schools in Takara. 5.3.5

Vulnerable Groups

Pacific Island Communities (PICs), which include Vanuatu, represent a diverse group of countries, are often referred to as being among the most vulnerable in the world. (Fenny: 2013) Vanuatu, as with most PICs is a small and open economy, that is considerably exposed to the effects of natural hazards and economic shocks and therefore with limited resources has a limited ability to manage these impacts. Although a common definition of vulnerability does not exist, it is a multifaceted, multidimensional concept. There is, however, general agreement that vulnerability is a forward-looking measure of wellbeing and differs from the concept of poverty, which assesses current (rather than future) wellbeing status. This vulnerability can be further exacerbated when people feel increased anxiety and insecurity. Key vulnerable groups, may be negatively affected by the Project and become further marginalised than they already are, for example: Women  Tend have lower levels of education, and therefore qualifications, 

Lower literacy and less likely to speak English which can preclude them from certain jobs;



Cultural aspects, relating to male dominance where women are generally excluded from community decision making.

Youth  Low levels of access to funding for upper primary, high school and tertiary study. Disabled  Little or no facilities to support the disabled. 5.3.6

Economy, Employment and Livelihood

The Shefa Strategic Development Plan, highlights the following sectors as the main contributors to Shefa economic development, namely: 

Agriculture



Fisheries



Livestock



Markets

Chapter 5 – Existing Environment 33



Forestry



Tourism



Small Business/Trades/Industry.

At a local level, there are significant opportunities to enhance a number of these sectors. The Shefa Development Strategy highlights opportunities for coffee and kava agricultural development on Efate. In terms of fisheries, a lack of facilities and infrastructure are the greatest constraints to further developing this industry on Efate and in the study area. Livestock from the study area contributes less than 1 percent of the total livestock sold at Marobe Markets, Port Vila. (Shefa Provincal Council: 2013) In terms of local markets, the establishment of active road markets along the coastal road has commenced recently with a limited level of local uptake. This is largely due to local preference for communities to sell at Port Vila markets as it offers a faster monetary return. The Shefa Development Strategy highlights that a road market is planned for Takara. Tourism in the area is limited to two existing accommodation facilities, Beachcomber Resort and Bamboo Beach Restaurant and Bungalows. Nasinu Hot Springs facility is also located in the study area, and is frequented by tourists and also used by local community members. It is operated by members of the local community. At a local level, household income levels are relatively low, with over 56 percent of respondents only receiving 4000 vatu or less per month. Up to 80 percent of this income is derived from from agricultural produce sale at markets Other than employment locally at tourist facilties, the other main sources of income for community members is from emplioyment on the New Zealand Recognised Seasonal Employer (RSE) scheme. RSE is aimed at recruiting workers from PICs to meet labour demands for New Zealand’s horticulture and viticulture sectors. This scheme was an industry-led initiative following many years of labour shortages in these sectors. At a local level, the RSE scheme has benefitted the livelihoods of number of local community members enabling them to contribute to community education and housing needs and in some cases fund new business opportunities. As well as providing an additional source of income to meet Kastom exchange obligations embedded in culturally significant reciprocal relationships. Agriculture Agriculture forms the back bone of the Vanuatu economy employing approximately 80 percent of the working age population and producing 20 percent of GDP. Locally, agriculture (mostly commonly referred to as gardens) is extremely important providing for both food security and income generation to many families in the community. Community surveys undertaken for the SIA, indicated that 83 percent of household respondents rely on garden crops for income. Virtually all of the arable land on the Quoin hillside above Takara is farmed at some time providing the staple foods for community families. Extra crops are sold in Port Vila markets by the women. As one woman suggested “you [foreigners] buy food from the shop and the farm garden is our shop” (Takara Respondent 2014).

Chapter 5 – Existing Environment 34

Figure 5-19 Agricultural production at Takara

5.3.7

Fishing

A fourteen year ban for off-shore fishing has recently been lifted from the Takara area apart from turtles (whereby the ban remains). Fish stocks had become severely depleted, resulting in a government enforced fish ban. Both men and women have a role in fishing. While women collect the sea shells and other reef dwellers such as octopus and smaller reef fish, and the men fish for larger reef fish in the deeper sea in the channel off the Takara shoreline. Both men and women respondents indicated that fishing was both a source of food as well as an enjoyable leisure activity for them. However, it is significantly limited as an income generating activity in the local community due to little or no infrastructure. 5.3.8

Tourism

Tourism is the most developed industry of Vanuatu and contributes approximately 40 percent of the GDP (Vanuatu National Statistics Office, 2012). The 2011 value for International tourism, receipts in Vanuatu was USD$252 million. Over the past 16 years, the value for this indicator has fluctuated between USD$252 million in 2011 and USD$45 million in 1995 (Vanuatu National Statistics Office, 2012). Tourism in Efate has largely concentrated around Port Vila and the benefits have not trickled down to the poorest groups. Recent branding and marketing of the Vanuatu tourism product around the slogan â&#x20AC;&#x2DC;Discover what mattersâ&#x20AC;&#x2122; seeks to encourage tourists to visit the more peripheral destinations in the country in an effort to more equitably spread the benefits of tourism. As previously mentioned, local tourist attractions include Nasinu Village Hot Spring (Figure 5-20) and two tourist accommodation facilities, namely Beachcomber Resort and Bamboo Beach Resort (Figure 5-21) which are of average standard, with significant redevelopment potential.

Chapter 5 â&#x20AC;&#x201C; Existing Environment 35

Figure 5-20 Nasinu Village Hot Spring

Figure 5-21 Local Tourist Facilities

5.3.9

Governance Structure

Vanuatu is a democratic republic with two spheres of government: national and local. Both local government and decentralisation are enshrined in the constitution and the main governing legislation is the Decentralisation and Local Government Regions Act 1994. The Department of Local Authorities within the Ministry of Internal Affairs is responsible for overseeing local government, which comprises six provincial councils and three municipal councils. While local government can alter the fees charged for various services, it has no authority over the level of taxes. Approximately 70 percent of central grants to local government go towards administrative expenses while the remaining 30 percent is earmarked for small capital projects. Local government is responsible for various services ranging from education to regional planning. The Provincial Councils and Municipal Councils are mandated by the Decentralization and Local Government Regions Act 1994 to introduce their own by-laws for management and development. These could include by-laws covering environmental protection and management which are passed by the Councils and approved by the Minister of Internal Affairs, before they become law.

Chapter 5 â&#x20AC;&#x201C; Existing Environment 36

The role given to the Malvatumauri by the constitution has been limited until recent Land Reform Legislation, whereby greater power has been given with regards to determining customary land ownership. It has ‘a general competence to discuss all matters relating to custom and tradition’ and also ‘may make recommendations for the preservation and promotion of Ni-Vanuatu culture and languages’. The Malvatumauri has over time become more active in establishing structures for chiefly councils and attempting to establish procedures for registering chiefly title. It has also become more vocal in expressing dissatisfaction with the powers of chiefs in general, arguing that the State should legislate for chiefly powers in relation to conflict management. The important role that they play in village life to manage local conflict is not recognised in a legal sense and this limits their ability to manage conflict. At a local level, the important role that the chiefly system plays in local governance within villages should not be underestimated and can be utilised as the project progresses to ensure key matters affecting the local community are progressed positively in partnership with Geodynamics. The SIA project team noted in the consultation process that by encouraging participation from all stakeholders there was a willingness to work together for the overall good of the community. With strengthening of governance structures and better coordination of assistance to the local level, there is potential for greater community benefits to be realised by the community. For example, improved coordination with the Shefa Provincial Council and donor organisations may help to better address basic community needs at Takara. As an example of the potential for inter–organisation cooperation, during the ESIA consultation process, an erosion issue at Wiana Village on Emao Island was highlighted to the project team. As a result of this visit, this issue was referred to by Ministry of Public Infrastructure and Utilities (MIPU) Public Works Department (PWD) Climate Change Officer. It is now likely that adaptation activities will be initiated via a coordinated approach with Shefa Provincial Council, MIPU/PWD and funding assistance from an interested donor organization. 5.3.10 Community Facilities and Infrastructure Health Facilities Government health services comprise a four-tier system including: referral hospitals, health centres, dispensaries; and community supported aid posts. The country is divided into the Northern and Southern Health Care Directorates. The Southern Health Care Directorate coordinates health services provided by the southern provinces of Shefa and Tafea. Each province is made up of several islands which are then divided into zones. Health facilities are distributed amongst these zones. There is a referral hospital in each of the two Health Care Directorates. Community and preventive services include: malaria control, environmental health, immunizations, reproductive health, MCH/Reproductive Health/Family Planning, STIs and HIV/AIDS, TB/leprosy, IMCI, nutrition and health promotion programs. The Poanangisu health facility located in the study area is defined as a primary health facility (Dispensary) as follows: “Serving a population of up to 5,000 and staffed by a registered nurse and Nurse Aid providing essential primary health care through general outpatient consultations for common illnesses, MCH/RH services and with 2 to 4 inpatient beds. The main purpose of beds is for stabilization of patients before transfer to Provincial Hospital but also deliveries. Open from 8.00 am to 5.00 pm with staff living nearby and on-call 24 hours.” The Poanangisu Dispensary is the primary health facility that services the study area. It has no doctor and has a total staff of three (3) comprising a Nurse Practitioner, Nurse Aid and Midwife. It serves a catchment population (including offshore islands) of approximately 4,000 people and it is estimated to review 300 patients per month. Staff estimated that approximately 60 percent of the current case load is for reactive treatment, with 40 percent of their workload devoted to preventive medicine. The preventative medicine is undertaken via monthly village visits to discuss health topics (e.g. contraception) with community members.

Chapter 5 – Existing Environment 37

Places of Worship Churches are located in all villages in the study area (refer Figure 5-22). Church and religion are important expressions of peopleâ&#x20AC;&#x2122;s beliefs and values within the community. The community is largely Presbyterian and the local church pastors have a well-respected role in the community. Nearly all respondents in the SIA survey indicated that they regularly (weekly) attend formal church services. A few community members belong to either the Seven Day Adventist church or a nondenominational service which is hosted at the top end of the runway near the proposed exploration site. Figure 5-22 Poanangisu Village Church

Airstrip An abandoned airstrip that was used during WWII is located within the study area and would be impacted by the proposed geothermal Project. During SIA consultation, the Project team were advised that the airstrip was used on an infrequent basis for emergency landings. Recreational Facilities The North Efate Regional recreational facility is located Poanangisu, and adjacent to the airstrip (refer to Figure 5-23) is the main playing fields and recreational area for the Takara and Natakoma communities. Both volleyball and soccer are enjoyed by community members. During SIA consultation, most community members mentioned these activities as their main recreational pursuits, in addition to their cultural practices. Facilities, while constantly in use have largely poor quality equipment and no toilet or grand stand. The North Efate fields adjoin the Poanangisu Nakamal and are also used for key community celebrations such as Shefa Day, Vanuatu Independence Day celebrations and other cultural celebrations. The area is a central focus for North Efate communities and there is desire by the local community to prepare a master plan for this area.

Chapter 5 â&#x20AC;&#x201C; Existing Environment 38

Figure 5-23 Recreational Facilities - North Efate, Poanangisu (left) and Takara (right)

Water and Sanitation The villages, Natakoma and Takara Landing have access to reticulated water. Installation of a running water supply to the area was recently undertaken and funded by Japan International Cooperation Agency (JICA). In Natakoma village there are a number of taps used for household use and in Takara Landing village each household has a tap. It is understood that sanitation was also part of this project. However, at the time of the SIA consultation, sanitation facilities had not been installed in either community. Energy An extension of the electricity grid to Ulei and planned past Takara on the north-west of Efate will connect rural households, public institutions, resorts and potentially stimulate growth around the Ring Road of Efate. This project could possibly be incorporated into the network development supporting the Takara geothermal development, should the proposed geothermal project proceed, however further electrical engineering study would be required. Currently there is no power provided to any of the villages in the study area. The majority of households have access to limited solar power and in some cases community members mentioned to the SIA project team that they had access to small diesel generators. For cooking, wood is the primary fuel source used by most households surveyed. Transport The Efate Ring Road from Port Vila to Takara is a fully sealed two lane carriageway, recently constructed with funding from the Millennium Development Project. It has considerably enhanced the safety for both vehicles and the considerable number of pedestrians that use this road on a daily basis. At the time of construction, the Vanuatu Government hoped that this road would increase commercial activities and employment opportunities in the study areas and other coastal communities. Although the road has considerably enhanced safety for all users, the Project will bring additional traffic through coastal communities to Takara. 5.3.11 Health and Well Being Safety The Shefa Development strategy highlights a number of policing and judicial challenges of relevance to the study area. For Poanangisu Police Post (Figure 5-24), the Strategy highlights the following challenges: 

the ‘lands issue’; and



Increasing use of and sale of marijuana by youth.

Chapter 5 – Existing Environment 39

These two issues were confirmed in discussions with Poanangisu Police Post Senior Sergeant during the SIA consultation and both have implications for the project. In addition, the increasing use of marijuana by local youth was also raised as an issue in community consultations with women and youth. During consultation, some community members expressed concerns regarding an increase in youth under influence undertaking petty crimes in the local area. For this reason, the SIA project team were warned by local community members to lock cars whilst in study area. Figure 5-24 Poanangisu Police Post

Health Surveys conducted during the SIA identified that many people had experienced recent illnesses. The main health problems identified were food and water related illnesses such as diarrhoea and mosquito borne illnesses such as malaria and dengue fever, as shown in Figure 5-25 below. (Note: The question that was asked for the SIA survey, enabled respondents to provide multiple responses, hence the percentages in the graph in Figure 5-25 do not add to 100 percent). Health issues in the study area are similar to those experienced throughout Vanuatu. However, it was interesting to note that several community members also mentioned lifestyle related diseases including high blood pressure and diabetes.

Chapter 5 â&#x20AC;&#x201C; Existing Environment 40

Figure 5-25 Household Health Conditions

60.0%

What is the main health problem in your household? 54.2% 45.8%

50.0% 40.0%

33.3%

30.0% 20.8% 20.0% 10.0% 0.0% Malaria

Pneumonia

Injuries

Diarrhoea

5.3.12 Climate Change Climate Change is a significant issue to impact on the study area, more particularly coastal villages on Emao Island with significant erosion issues now being faced in Wiana and Marow villages. In addition, Takara Landing is vulnerable due to its coastal proximity, low elevation above sea level, particularly during extreme weather events such as cyclones. At Wiana and Marow villages coastal erosion is impacting on cultural heritage and community infrastructure (i.e. cemetery and cyclone shelter). Communities in the study area are reliant on the natural environment for housing, food and in some instances medicinal purposes; hence any impact on the environment reduces their long term sustainability. The Project team noted that communities are active in developing mitigations to reduce climate change impacts but have limited capacity in most instances to respond appropriately. 5.3.13 Community Receptors SLR (2014a) noted that sensitive receivers to the east of the Project area are the villages of Takara (the Corner Village), Nasinu, Takara Landing and Baofatu; to the south east is Onesua and to the west are Safaki and Maolapa. Individual residential receivers are also located along Efate Ring Road and adjacent to the abandoned airstrip. Other potential sensitive receivers include the Takara Church in Takara Village and the Beachcomber Resort located to the north-east of Takara. The identified community sensitive receptor locations are presented in Figure 5-26.

Chapter 5 – Existing Environment 41

228000

229000

230000

8060200

8061200

227000

Maolapa

. !

8059200

Beachcomber Resort Beachcomber

Nasinu

Ring Road

Takara Church

. !

. ! Safaki

. !

resort

Takara

Takara South

. !

Airstrip residence

Takara Landing

. !

Baofatu Baofatu

8058200

H:\Projects-SLR\630-SrvNTL\620-BNE\620.11005 Proposed Takara Geothermal Project\Figures\ArcGIS\Report Figures\ESIA\SLR62011005_F5-26_AQAssessmentLocs_01.mxd

. !

Rin gR oa

Quoin Hill

Onesua

. !

8057200 8056200

Takara Landing

Onesua

Community Sensitive Receptor Locations

. !

Institutional

. !

Residential Injection Well Pad Site

Production Well Pad Sites Exploration Drill Pad Sites

. !

Paonangisu

. !

Sara *

. ! Vareani Saipiri

. !

Maolapa west

. !

Safaki

Epule

. !

Laydown Area

. !

Geothermal Power Plant Site Date: 25/07/2014 Drawn: NT Scale: 1:20,000 Sheet Size: A4 Projection: WGS 1984 UTM Zone 59S

The content contained within this document may be based on third party data. SLR Consulting Australia Pty Ltd does not guarantee the accuracy of such information.

ÂŠ

250

Community Sensitive Receptor Locations

FIGURE 5-26

Sensitive social and cultural water receptors identified by SLR (2014e) include: 

Lower portions of the ephemeral watercourses where fruit and food production plants are grown;



Hot springs at Nasinu used for bathing;



Shallow groundwater bore at Beachcomber Resort used for filling the swimming pool; and



Any other shallow groundwater wells down gradient of the site which may be used for washing or as a backup water supply.

Fruit trees are grown by the local villagers in the lower portion of the watercourses. Given the potential for plant uptake of contaminants, surface water and shallow groundwater resources within the base of the watercourse are considered to be a sensitive receptor. Any contamination to groundwater within the study area could potentially lead to contamination of the water in the hot springs and that used at the resort. Whilst no detailed monitoring of groundwater levels, hot spring flows or hot spring pool water levels has been conducted it is likely that groundwater levels influence the hot spring flow and hot spring pool water levels, therefore lowering of groundwater levels could potentially impact on hot spring flows and pools. If the spring water supply pipes to Takara Landing are not operational, the Takara Landing villagers use the groundwater well as a backup water supply. This is approximately 1.5 km to the west of Zone B. Shallow groundwater is likely to flow north or north easterly across the study area, therefore the groundwater well is unlikely to be impacted by any contamination to shallow groundwater as a result of the works. Given the wells proximity to the coast and distance from the drill zones, lowering of piezometric levels as a result of the project are unlikely to impact on the water level within the well. This groundwater well is thereby not considered to be a sensitive receptor.

Chapter 5 – Existing Environment 43

CHAPTER

Impact Assessment Exploration and Production Drilling

Table of Contents 6

IMPACT ASSESSMENT – EXPLORATION AND PRODUCTION DRILLING

6.1

Soils and Land Suitability 6.1.1 Sources of Impact 6.1.2 Sensitive Receptors 6.1.3 Impact Assessment 6.1.4 Mitigation Measures

1 1 1 1 3

6.2

Surface and Ground Water 6.2.1 Sources of Impact 6.2.2 Sensitive Receptors 6.2.3 Impact Assessment 6.2.4 Mitigation Measures

3 3 4 5 6

6.3

Air Quality and Greenhouse Gas Emissions 6.3.1 Sources of Impact 6.3.2 Sensitive Receptors 6.3.3 Impact Assessment 6.3.4 Mitigation Measures

7 7 7 8 9

6.4

Noise and Vibration 6.4.1 Sources of Impact 6.4.2 Sensitive Receptors 6.4.3 Impact Assessment 6.4.4 Mitigation Measures

9 9 10 10 14

6.5

Landscape and Visual Amenity 6.5.1 Sources of Impact 6.5.2 Sensitive Receptors 6.5.3 Impact Assessment 6.5.4 Mitigation Measures

14 14 15 16 19

6.6

Terrestrial Ecology 6.6.1 Sources of Impact 6.6.2 Sensitive Receptors 6.6.3 Impact Assessment 6.6.4 Mitigation Measures 6.6.5 Positive Impacts

20 20 20 21 23 24

6.7

Marine Ecology 6.7.1 Sources of Impact 6.7.2 Sensitive Receptors 6.7.3 Impact Assessment 6.7.4 Mitigation Measures

24 24 24 25 26

6.8

Social / Cultural Environment 6.8.1 Sources of Impact

27 27

Chapter 6 - Impact Assessment Exploration and Production Drilling

Table of Contents 6.8.2 6.8.3 6.8.4 6.8.5 6.8.6 6.9

Sensitive Receptors Impact Assessment Health and Wellbeing Mitigation Positive Impacts

Significant Environmental Impacts 6.9.1 Terrestrial Ecology 6.9.2 Marine Ecology

6.10 Significant Social Impacts

27 28 31 31 32 33 33 33 34

TABLES Table 6-1 Project Components Disturbance Footprint for Drilling Activities Table 6-2 Exploration Phase Combustion-Related GHG Emissions Table 6-3 Predicted Night-time Exploration (Drilling) Noise Levels Table 6-4 Predicted Night-time Production (Drilling) Noise Levels Table 6-5 Exploration Drilling – Extent of Vegetation Clearing Table 6-6 Production drilling – Extent of Vegetation Clearing Table 6-7 Areas of Habitat Type to be Disturbed During Drilling Table 6-8 Significant Environmental Impacts Table 6-9 Significant Social and Cultural Impacts

2 9 11 11 21 22 22 34 35

FIGURES Figure 6-1 Production Drilling Noise (Night) – Prevailing Winds Figure 6-2 Visual Impact Observer Locations Figure 6-3 Viewshed Analysis – Location 4 Figure 6-4 Observer Location 4 View Toward Project Area (to the North-West). Figure 6-5 Elevated View of Project Area – Observer Location 1 (Exploration Drilling) Figure 6-6 Elevated View of Project Area (With Vegetation) – Observer Location 4 (Production Drilling) Figure 6-7 Marine Ecology Potential Impact Area

Chapter 6 - Impact Assessment Exploration and Production Drilling

13 16 17 18 18 19 25

IMPACT ASSESSMENT – EXPLORATION AND PRODUCTION DRILLING

This Chapter provides an impact assessment of the exploration and production drilling phases of the Project. It describes the sources of the impacts relating to sensitive receptors, such as nearby residences and community areas. The impacts are then assessed according to residual risks following the implementation of mitigation measures as described in Chapter 8 of the ESMMP. Any positive impacts are stated from the Social Risk Register. Significant environmental and social impacts are also summarised from both the Environmental and Social Registers (ESIA Appendix C).

6.1

Soils and Land Suitability

6.1.1

Sources of Impact

The drilling phase of the Project will disturb soil and changes land uses resulting in the following impacts: 

Short-term loss of agricultural land resources;



Reduced resilience of impacted soil resources to disturbance;



Increased soil erosion hazard potential;



Reduced soil quality for use in rehabilitation works; and



Potential sources of land contamination from drilling activities in the event of loss of containment.

Vulnerabilities A number of features of land and soil structure are vulnerable to impacts from the proposed activities during the exploration and production drilling phases of the Project: 

Temporary and permanent changes in Land Capability Class;



Changes of soil mineral content and structure;



Increases in soil erosion potential;



Over stripping of top soils; and



Potential for land contamination from hazardous materials and production wastes.

6.1.2

Sensitive Receptors

In the local Takara area and specifically on the northern slope of Quoin Hill, agriculture (mostly commonly referred to as gardens) is extremely important, providing both food security and income generation for many families in the community. Virtually all of the arable land on the Quoin hillside above Takara has been farmed at some time providing the staple foods for community families, with extra produce being sold in the Port Vila markets by the women to generate extra income. 6.1.3

Impact Assessment

Impact on Soil Resources The Project disturbance footprint, in terms of activities that will physically disturb the soil profile, covers approximately 4.2 ha of land. The areas and nature of disturbance are summarised in Table 6-1.

Chapter 6 - Impact Assessment Exploration and Production Drilling 1

Table 6-1 Project Components Disturbance Footprint for Drilling Activities Project Component

Details

Exploration drill pad sites (Zones A, B, C, D or alternative airstrip site)

Footprint of 60 m x 60 m each (0.36 ha). Only two sites have been assumed part of the Production well sites footprint therefore only the land area associated with two sites is calculated.

0.72

Production well pad sites (Zones A and B)

Footprint 100 m x 100 m each (1 ha). Actual drill site once established will be approx. 10 m x 10 m (0.01 ha) within the larger footprint area. Production wells established as part of production phase also form part of the operational footprint.

2.0

Injection well pad site (Zone E)

Footprint 100 m x 100 m (1 ha). Actual injection site once established will be approx. 10 m x 10 m (0.01 ha) Injection well established as part of production phase also form part of the operational footprint.

1.0

Laydown Area

Footprint of 60 m x 80 m (0.48 ha). The laydown area will be used during all phases of the Project (including drilling)

0.48

4.2

100.0

Exploration and Production Drilling Phase 1

Total

The exploration and production wells, excluding alternative Exploration Zone D and Production Zone E drill pads, are located on the iron rich, clayey textured ferrosol soil units and constitutes 41.6% of the Project’s disturbance footprint. These soils are good quality agricultural soils with a high capacity to respond to rehabilitation works. Impact on Agricultural Productivity Potential Land temporarily impacted upon during drilling, both directly and indirectly, will be returned to predevelopment condition. This includes land associated with all assessed components, excluding the geothermal power plant. Therefore there is no change in Land Capability classes for temporary impacts from the drilling activities. Soil Erosion Hazard Assessment The majority of the soil within the Project disturbance footprint (80.6%) has a moderate erosion risk rating; and the soil within the remaining fifth (19.4%) of the Project disturbance footprint has a low erosion risk rating. This is associated with Soil Unit 1A and 1C. These soils will be disturbed by the drill pad sites. Soil Stripping Resource Assessment The Project’s decommissioning and rehabilitation strategy commits to rehabilitating disturbed land to target Land Capability classes. These classes are predominately the same as the pre-development classes. To achieve rehabilitation goals, disturbed soil will be salvaged, stored and re-used during rehabilitation works. This section provides an assessment of the quality of soil resources for rehabilitation works, recommended stripping depths and recommendations to improve soil quality. The assessment has shown that the capability of the soil within the Study Area have a recommended topsoil stripping depth of 0.05 – 0.6 m, which varies between soil types. All topsoils associated with ferrosols are constrained by high topsoil clay content. Soils with high clay content tend to form soil clods and inhibit seed germination when re-applied as topdressing material. The ferrosol’s subsoil contains higher clay content and is not suitable for rehabilitation works. All soils associated with the coral reef limestone sequences (i.e. Rudosols and Tenosols) are limited by weak soil structure, shallowness of topsoil or presence of abundant coral fragments. The ESMMP details the maximum recommended stripping depths for each soil type and their corresponding major constraints.

Chapter 6 - Impact Assessment Exploration and Production Drilling 2

Approximately half of the disturbance footprint (49.1%) is limited by shallow soil depth to bedrock. Consequently, there will be limited amount of material available for rehabilitation works. Approximately one-third (36.1%) of the disturbance footprint is limited by high clay content in the subsoil. Should the subsoil be required for rehabilitation works, amelioration with gypsum will be required to assist the breaking of soil ‘clods’. A further 5.5% is limited by a combination of high subsoil clay content and subsoil acidity. Lime will be required to increase soil pH levels. A minor part of the footprint is limited by high coral fragment content. Potential for Land Contamination The Project will use fuel and chemicals (some of which are hazardous substances) during the exploration, production and operational phases. The Project’s ESIA Chapter 4 – Project Description, provides detail on their use during each phase and an overview is provided here. The Project will use hydrocarbons in the form of fuels and oils for drilling, vehicles, generators and turbine/transformer maintenance. Hazardous chemicals will be used throughout Project phases for drilling activities as well as the generation of electricity. The safe use and storage of these chemicals has been addressed in the Project’s ESIA Chapter 8 – ESMMP, whereby appropriate storage measures have been identified to limit the potential for land contamination from unintentional spills. Given the measures proposed to be employed, the risk of land contamination is considered to be low. 6.1.4

Mitigation Measures

Recommendations to minimise impacts on soil and land capability from the exploration and production drilling phases of the Project have been provided. These include the development of a rehabilitation plan within the ESMMP. This plan will build on the Project’s ESIA and include target rehabilitation goals, soil management protocols, erosion and sediment controls and decommissioning details to ensure that long-term rehabilitation goals are satisfied and provide information on the type of materials to be used, potential contamination pathways and potential impacts to environmental and human health.

6.2

Surface and Ground Water

6.2.1

Sources of Impact

Exploration Drilling Aspects of the exploration drilling phase which may impact on surface water or groundwater resources include: 



Increased erosion and sedimentation potential of the disturbed areas as a result of vegetation clearing activities include: o

Construction of temporary 4 m wide access roads / tracks. Where there are no existing tracks, new tracks will be created;

Earthworks and construction of 60 x 60 m drill pads, 30 x 15 x 1.5 m deep drilling sump (unlined), lined pond (to capture all geothermal fluids), storage pads, storage pond and other components; and

Construction of the laydown yard.

Contamination of receiving surface and groundwater as a result of leakage of pollutants from the site. Potential sources of pollution include: o

Groundwater contamination as a result of the spillage of hazardous substances;

Groundwater contamination as a result of drilling fluids passing to the surrounding aquifer during the drilling process or from imperfectly cemented exploration wells;

Drilling effluent containing the drilled solids and drilling fluids that is not recirculated will be discharged to an unlined drilling pond to allow the fluids to infiltrate to ground or evaporate and suspended solids to settle in the sump. Drilling chemicals may seep into shallow groundwater aquifers beneath the sump;

Chapter 6 - Impact Assessment Exploration and Production Drilling 3

Wastewater will be discharged to septic tanks which will be pumped out periodically. Pollutants could seep to the shallow groundwater aquifer from drainage receptacles;

Geothermal discharges from the well discharge testing will be contained in a lined sump before either being reinjected or discharged to the marine environment (to meet controlled conditions). Any spillage or leakage of brine could contaminate groundwater.



Impacts to environmental flows as a result of the abstraction of water from Epule River via a temporary pipeline and tanker extraction to supply exploration drilling activities.



The construction of access tracks within the hills up-gradient of the airstrip may obstruct or alter ephemeral watercourse flow paths and thereby alter erosion and sedimentation processes within the watercourses.

Production Drilling Aspects of the production drilling phase which may impact on surface water or groundwater resources include: 



6.2.2

Increased erosion and sedimentation potential of the disturbed areas as a result of vegetation clearing activities include: o

Construction of any new access tracks not constructed during the exploration phase;

Extension of existing exploration drill pads or construction of new drill pads and injection well pads (same footprint as drill pad) with a larger 100 x 100 m area, cellar, drilling sump, storage pads and a larger storage pond.

Contamination of receiving surface and groundwater as a result of leakage of pollutants from the site. Potential sources of pollution include: o

Groundwater contamination as a result of drilling fluids passing from imperfectly cemented production wells to the surrounding aquifer;

Spillage of hazardous substances during the construction of the injection well pad could lead to groundwater contamination; and

Impacts to environmental flows as a result of the abstraction of water from Epule River via a temporary pipeline or tanker transfer to supply production drilling activities.

Sensitive Receptors

Sensitive environmental and social receptors include: 

Aquatic communities within temporary pools and saturated soils within the drainage areas of the Namot, Koloblob and Tanarua watercourses;



Ephemeral pools in the upper portion of the ephemeral watercourses where invertebrate and macro invertebrate habitat exists;



Lower portions of the ephemeral watercourses where fruit and food garden plants are grown;



Hot springs at Nasinu used for bathing;



Shallow groundwater bore at Beachcomber Resort used for filling the swimming pool;



Any other shallow groundwater wells down gradient of the site which may be used for washing or as a backup water supply; and

Chapter 6 - Impact Assessment Exploration and Production Drilling 4

ď&#x201A;ˇ 6.2.3

Wetland areas to the north of the ring road and to the east of the study area. Impact Assessment

Potential Erosion and Sedimentation Impacts The ferrosols on the valley slopes to the south of the airstrip comprise deep clay soils which are likely to be stable whilst vegetated but erodible if cleared. Rudosols were identified to be thin around the cleared areas of the airstrip. If vegetation is removed in this area then the soils could be rapidly eroded, exposing the bare rock below. The removal of vegetation and earthworks during the construction of the access tracks and drill pads may cause erosion of land and watercourse and increased sediment loads conveyed by surface water runoff to the ephemeral watercourses. Works in Zone A and Zone B would impact on the Namot watercourse. Works in Zone C and Zone D would impact on the Koloblob watercourse and Tanarua watercourses. The ferrosols on the valley slopes within the ephemeral watercourse catchment comprise deep clay soils which are likely to be stable whilst vegetated but erodible if cleared. The watercourses are ephemeral, with surface water runoff draining to ground primarily within the lower portions of watercourses after a heavy rainfall event. Given the temporary nature of flows and surface water in pools and drainage areas, an increase in suspended sediment concentration in flow and pools and sediment deposition in pools and drainage areas is unlikely to have a detrimental impact on plants, invertebrates and macro invertebrates which inhabit the pools and drainage areas. The removal of vegetation and earthworks during the construction of the injection well drill pads in Zone E may cause land erosion and increased sediment deposition in the wetland down gradient of hot springs to the north, north east and north-west of Zone E and any roadside drains adjacent to the ring road. Rudosols were identified to be thin around the cleared areas of the airstrip and Zone E If vegetation is removed then the rudosol soils could be rapidly eroded, exposing the bare rock below. A paddock between Zone E and the hot springs provides a flat graded grass buffer (approximately 100 m) which will act as an effective sediment trap; therefore impacts to aquatic ecology in the wetland are unlikely and would only be temporary during construction. Potential Spillage of Hazardous Substances An inventory of fuels, chemicals, hazardous substances and waste, including details on quantity, use and storage is provided in Table 4-7 and Table 4-8 of the ESIA Chapter 4, Project Description. There is potential for spillage or leakage of hazardous substances to land or water, during the production, storage or transport of substances to and from the site. With the appropriate mitigation measures in place, the risk of a significant spill or leak is considered low. Spillage in Zone A, B, C and D Spillage of hazardous substances within the drill pads located in Zone A, B, C and D could lead to contaminants being conveyed by surface water runoff to ephemeral watercourses. Ephemeral watercourses drain to ground within natural depressions or in down gradient drainage areas where fruit trees and other food production plants are often grown. There is potential for contaminants which migrate to temporary pools to impact on aquatic ecology. Due to the ephemeral nature of watercourses within the study area they are unlikely to support significant aquatic communities. Any that do exist are only likely to be active during short periods after rainfall events when temporary pools are present. Dilution of contaminants in surface water runoff is likely to reduce the risk of impacts to aquatic ecology within the watercourses. Contamination of shallow groundwater in the drainage areas could lead to uptake of contaminants by fruit trees and other food production plants which may impact on consumer health. Contaminants could also migrate down gradient and impact on sensitive receptors south of the airstrip as detailed above. Minor spills of hazardous substances are unlikely to pose a risk to groundwater and surface waters down gradient. However, a significant spill could lead to contaminants leaching through the soil and contaminating shallow groundwater and impacting the nearby hot springs and the beachcomber resort pool and wetlands down gradient of the airstrip or Zone E.

Chapter 6 - Impact Assessment Exploration and Production Drilling 5

Leakage of Geothermal Fluids from Lined Sumps Leakage of geothermal fluid from lined sumps during operational upsets could potentially impact on groundwater chemistry by increasing the concentration of dissolved minerals within the shallow aquifer. This could impact on the suitability of the hot springs for bathing and the aquatic ecology within wetlands. Groundwater Level and Temperature Variation A large pressure drop could cause groundwater to be drawn down into the geothermal reservoir along high permeability paths resulting in a significant drop in groundwater level which could lead to hot spring flows declining or ceasing. Declining pressures in the deep geothermal reservoir may also induce steam flow to the surface leading to local groundwater heating. Conversely, temperature decreases may occur when a pressure drop causes hot water to drain downwards before being replaced by cold groundwater moving in laterally. Groundwater level variations may impact on aquatic ecology within the wetlands. Cessation of hot spring flows, significant water level reductions in the hot spring pools and changes in hot spring temperature may impact on the suitability of the hot springs for use as a tourist attraction and for bathing and cooking by locals. Other Potential Impacts of Low Significance The following potential impacts are considered to be of low risk to the aquatic environment due to low risk of likelihood and/or low level of impact: 

Release of drilling fluids via downhole seepages during the drilling process;



Infiltration of drilling fluids through the unlined sumps;



Spillages and accidental leakages of geothermal fluids at the steam field;



Leakage of geothermal fluids from the wells following a catastrophic casing failure;



Failure or short circuiting of the treatment system leading to pollutants seeping to groundwater beneath the septic tank drainage receptacles;



Obstruction of minor flow surface water paths;



Surface water contamination as a result of a spillage of hazardous substance within Zone A, B, C or D; and



Increase in sediment loading to the ephemeral watercourses.

6.2.4

Mitigation Measures

Spillage of Hazardous Substances Standard control measures will be implemented on the site relating to the safe storage of hazardous substances. Details of these control measures are provided in Table 8-15 (ESIA Chapter 8, ESMMP). A groundwater and surface water monitoring program will be implemented on the site as detailed in Tables 8-4, 8-5 and 8-6 (ESIA Chapter 8, ESMMP). Leakage of Geothermal Fluids from Lined Sumps The lined sumps at the well pads (storage capacity of approximately 675 m3) will be designed to have sufficient storage capacity to store all geothermal fluids produced during the well testing plus an additional industry standard amount of freeboard for rainfall events. Geothermal fluids will be left to cool prior to re-injection into the geothermal reservoir. Re-injection may not be feasible for the exploration well. If unfeasible it is understood that brine concentrate could be discharged to the marine environment subject to appropriate impact assessment (refer to Marine Ecology Technical Report, SMECa, 2014).

Chapter 6 - Impact Assessment Exploration and Production Drilling 6

Lined sumps will be located at various locations around the steam field, possibly including adjoining each production well pad site to store the brine and condensate discharged as a result of operational upsets. All sump levels will be pro-actively managed such that they are not at risk of overtopping during periods of heavy rainfall. Groundwater Level and Temperature Variation A reservoir management plan should be developed to ensure monitoring and responsive measures are implemented throughout production in order to minimise the likelihood and consequences of unforseen pressure drops.

6.3

Air Quality and Greenhouse Gas Emissions

6.3.1

Sources of Impact

The tasks and activities that are likely to be sources of dust and emissions associated with the exploration and production drilling phases of the project are: 

Preparation of the drilling site - The use of heavy machinery is likely to be a source of dust generation during vegetation clearing, earth works and access road grading. There will also be emissions from the use of diesel powers construction machinery. Potential pollutants from diesel combustion include nitrogen oxides (NOX) (which comprises of nitrogen dioxide (NO2) and nitric oxide (NO)), sulphur dioxide (SO2), carbon monoxide (CO), carbon dioxide (CO2), and particulate matter smaller than 10 and 2.5 microns (PM10 and PM2.5 respectively). Dust generation and emissions from heavy machinery will be transient, limited to daylight hours and will last approximately 25 days.



Mobilisation to the drilling site - Traffic movements and generator use are likely to be sources of nuisance dust and emissions from diesel engines. Dust generation and emissions from heavy machinery will be transient, limited to daylight hours and will last approximately 5 days.



Exploration well drilling - The exploration phase also involves the drilling of one (1), and up to four (4) geothermal exploration wells in the Takara area, in an attempt to validate the outputs of the geothermal reservoir modelling.



Production well drilling - The production phase involves the drilling of up to three (3) wells, with some requiring the expansion of the exploration phase drilling pads to accommodate the larger drill rig requiring additional vegetation clearing and grading. A larger diesel powered drill rig will be used for the production phase which will produce more emissions. The production drill will operate over a 24 hour period



Well testing - Once the drilling is completed, wells will be discharged for a sufficient period (up to 20 days per well) to determine well productivity. A short initial discharge will be made to clear the well of debris, and then the well will be discharged into a portable well test silencer that will enable measurements of flow and enthalpy to be taken. This test will be run until stable conditions are reached and could release between 10 and 50 tonnes per hour of geothermal fluid (including brine, steam and non-condensable gases (NCGs)). Emission of NCGs is likely to be around one to three per cent of the total combined emissions (including steam) and will include hydrogen sulphide (H2S) carbon dioxide (CO2), and minor pollutants; mercury (Hg), arsenic (As), ammonia (NH3), fluoride (F-).

6.3.2

Sensitive Receptors

Figure 5-26 (ESIA Chapter 5), illustrates the location of Project related activities in relation to the nearest sensitive receptors that have been identified through analysis of aerial photography and site visits. To the east of the study area are the villages of Takara, Nasinu, Takara Landing and Baofatu; to the south east is Onesua and to the west are Safaki and Maolapa. Individual residential receptors are also located along Efate Ring Road and adjacent to the abandoned airstrip.

Chapter 6 - Impact Assessment Exploration and Production Drilling 7

Other noise sensitive receptors include the Takara Church in Takara Village and the Beachcomber Resort located to the north-east of Takara. 6.3.3

Impact Assessment

Nuisance Dust With most drilling and construction activities expected to occur no closer than 250 m from the nearest identified sensitive receptor (i.e. the ‘Airstrip Residence’), modelling projects that there will a ‘low’ risk of nuisance impacts. When considered in the context of the relatively short duration of the earthworks and the projected rainfall of the area, it is considered that sensitive receptors will experience no significant impact from generated dust emissions as long as the recommended dust mitigation measures are implemented. Combustion Gasses Combustion emissions associated with exploration and production activities for the most part will be emitted more than 250 m from the nearest sensitive receptors and emissions from the main source (the drilling rig) will occur over a relatively short duration (approximately two months at each well pad). As such, it is considered that the potential impact on people living and working in the surrounding area from combustion gas emissions will be negligible. H2S and Odour Exploration drilling - Based on modelling results the proposed exploration well operations are unlikely to cause any adverse health impacts due to elevated H2S concentrations at any of the surrounding sensitive receptors. The highest H2S concentrations predicted by modelling was 100 µg/m³ at the nearest sensitive receptor based on the assumed fluid composition. This is well below the WHO lowest observable adverse effect level of 15,000 µg/m³; however, this level is above the NZ MfE H2S guideline for protection against potential odour nuisance impacts of 7 µg/m3. The results of the dispersion modelling therefore indicate that it is possible that there will be downwind odour impacts during well testing activities that have the potential, under certain meteorological conditions, to be regarded as a nuisance (offensive or objectionable). However, the emission of H2S from well testing operations would only occur for a short duration of up to 20 days for each well. Production well testing - Maximum 1-hour average H2S concentrations predicted for the production well testing activities are significantly higher than for the exploration wells due the higher geothermal fluid volumes assumed. Nonetheless, the predicted worst case concentrations are still well below the WHO lowest observable adverse effect level (LOAEL) of 15,000 µg/m³ indicating that there is negiligible risk of adverse health impacts. Modelling does indicate that there is an increased potential for odour nuisance impacts during the production well testing process. The chemistry of the geothermal fluids is yet to be confirmed, this will enable the potential for odours to be more accurately determined. In addition, experience from the exploration well testing activities (e.g. observations of local residents etc.) will inform the understanding of potential impacts during production well testing. As with exploration, the release of NCGs will be short term during production well testing and safety monitoring systems with warning alarms for high emissions of potentially hazardous gases will be incorporated as part of the drilling set-up. Mercury Annual average mercury emissions concentrations were predicted by the modelling to be significantly below the NZ AAQG for mercury (organic) of 0.13 µg/m³, based on an assumed brine composition1. Mercury emissions from all proposed activities are not considered to have the potential for any adverse impacts to surrounding sensitive receptors.

1 Annual averages are modelled based on climatic averages for example wind speed and direction. Chapter 6 - Impact Assessment Exploration and Production Drilling 8

This will be confirmed after exploration drilling provides more accurate information on the presence or otherwise of mercury, to be used during production drilling and further phases of the Project. 6.3.4

Mitigation Measures

The unmitigated impacts of nuisance dust and emissions are not considered to be significant in the wider context of the Project. As such, adherence to Good International Practices (GIP) for dust generation and emissions control as described in the Environmental, Health, and Safety (EHS) Guidelines – Air Emissions Ambient Air Quality (IFC, 2007) are deemed sufficient to mitigate the potential air quality impacts associated with all stages of this project. Routine maintenance checks will be undertaken on wellheads and blowout prevention equipment to check they are maintained in a good working condition. Local residents will be consulted as appropriate, particularly prior to well testing procedures to inform them of potential odour emissions and the expected duration of such activities. Greenhouse Gas Emissions Greenhouse gas (GHG) emissions resulting from the combustion of diesel fuel during the exploration phase of the Project have been accounted for using emission factors in IPCC (2006) Volume 2 Chapter 2 (Stationary Combustion) and Chapter 3 (Mobile Combustion) as presented in Table 6-2. Only GHG for the exploration phase are shown as the production drilling phase is combined with construction phase in the ESIA Chapter 7. The energy content of diesel oil has been assumed to be 38.6 GJ/kL (DCCEE, 2011). Emissions are based on the combustion of fuel and do not take into account additional lifecycle emissions (such as refining and transport). Table 6-2 Exploration Phase Combustion-Related GHG Emissions Source

Estimated Fuel Use (kL)

Drilling rig, service vehicles and rental trucks

CO2

CH4

Total Emissions

N2O

(tonnes CO2-e)

360

74,100

3.9

1,048

74,100

3.0

0.6

230

Generators TOTAL

Emission Factor * (kg/TJ fuel)

440

1,278

Sourced from SLRc, 2014

Emissions of CO2 from exploration well testing have been estimated based on the following; 

Up to 50 tonnes/hour geothermal fluid could be released per well;



Assumed 0.5% of the steam is NCGs and CO2 makes up 98%(wt) of the NCGs; and



Release occurs for 20 days.

This gives a total combined emission of 470 tonnes CO2 for four wells.

6.4

Noise and Vibration

6.4.1

Sources of Impact

Exploration Drilling The tasks and activities that are likely to be sources of noise/vibration associated with this phase of the Project are: 

Preparation of the drilling site – The use of heavy machinery is likely to be a source of noise during vegetation clearing and construction of the drill pad, access roads and temporary workers camp. Noise generation will be transient, limited to daylight hours.

Chapter 6 - Impact Assessment Exploration and Production Drilling 9



Mobilisation to the drilling site - Traffic movements and generator use are likely to be sources of noise. Noise generation will be transient, limited to daylight hours.



Perform exploration drilling – Use of the Hanjin drill rig will be a source of noise. Noise generation will be continuous over the 24 hour period.



Well testing – Venting of the well will be a source of noise. Noise generation will be transient at any time over the 24 hour period, with duration limited to 20 days per well.

Production Drilling The tasks, activities and sources of noise/vibration associated with this phase of the Project are: 



Mobilisation to the drilling site - Traffic movements and generator use are likely to be sources of noise. Noise generation will be transient, limited to daylight hours.



Perform production drilling – Use of the production drill rig will be a source of noise. Noise generation will be continuous over the 24 hour period.



Well testing – Venting of the well will be a source of noise. Noise generation will be transient at any time over the 24 hour period, with duration limited to 20 days per well.

6.4.2

Sensitive Receptors

To the east of the study area are the villages of Takara, Nasinu, Takara Landing and Baofatu; to the south east is Onesua and to the west are Safaki and Maolapa. Individual residential receptors are also located along Efate Ring Road and adjacent to the abandoned airstrip. Other noise sensitive receptors include the Takara Church in Takara Village and the Beachcomber Resort located to the north-east of Takara. 6.4.3

Impact Assessment

Exploration Drilling and Clearing The worst case LAeq(1hour) noise levels from the exploration phase of the Project are predicted to be below the project specific daytime noise trigger value of 55 dBA LAeq(1hour) at all of the nearest noise sensitive receptor locations. Noise level predictions to the nearest affected residential receptors are presented in Table 6-3 for night-time drilling activities. The results of the night-time drilling scenario presented in Table 6-3 indicate a predicted isolated exceedance of the WHO sleep disturbance trigger value at the Airstrip receiver location under prevailing wind and calm atmospheric conditions. It has been assumed that drilling on the airstrip will be conducted at the western end. Should drilling be undertaken towards the east of the airstrip it is likely to result in exceedences of the noise criteria at the nearest noise sensitive receptors, particularly Takara, Baofatu and Nasinu.

Chapter 6 - Impact Assessment Exploration and Production Drilling 10

Table 6-3 Predicted Night-time Exploration (Drilling) Noise Levels Location

Period

Predicted Noise Level LAeq(8hour) (dBA) Calm

Prevailing Winds

Airstrip residence

Night

Takara

Night

Takara Landing

Night

Takara South

Night

Baofatu

Night

Nasinu

Night

Maolapa

Night

Safaki

Night

Onesua

Night

<20

Takara Church

Night

Beachcomber Resort

Night

Project Specific Noise Criteria (LAeq,8hour) 35

Production Drilling The worst case LAeq(1hour) noise levels from the production drilling phase of the Project are predicted to be below the project specific daytime noise trigger value of 55 dBA LAeq(1hour) at all of the nearest noise sensitive receptor locations. Noise level predictions to the nearest affected residential receptors are presented in Table 6-4 for the proposed night-time production drilling activities. Predicted noise levels are the worst case noise levels for each receptor location from activities in any proposed drilling zone. Table 6-4 Predicted Night-time Production (Drilling) Noise Levels Location

Period

Predicted Noise Level LAeq(8hour) (dBA) Calm

Prevailing Winds

Airstrip residence

Night

Takara

Night

Takara Landing

Night

Takara South

Night

Baofatu

Night

Nasinu

Night

Maolapa

Night

Safaki

Night

Onesua

Night

<20

Takara Church

Night

Beachcomber Resort

Night

Project Specific Noise Criteria (LAeq,8hour) 35

The results of the night-time production drilling scenario presented in Table 6-4 indicate the following exceedances of the WHO sleep disturbance trigger value during the night-time: ď&#x201A;ˇ

A 10 dBA and 6 dBA exceedence at the Airport residence under calm and prevailing conditions respectively.

ď&#x201A;ˇ

A 2 dBA exceedence in Nasinu under calm conditions.

Chapter 6 - Impact Assessment Exploration and Production Drilling 11

ď&#x201A;ˇ

A 1 dBA exceedence in Maolapa under prevailing wind conditions.

ď&#x201A;ˇ

A 2 dBA exceedence in Safaki under prevailing wind conditions.

The predicted exceedances of the night-time sleep disturbance trigger value at the Airport residence are significant and may result in sleep disturbance effects at this receptor location. The predicted minor exceedances of the night-time sleep disturbance trigger value at the other locations may result in sleep disturbance effects. A comparison of the predicted production noise levels with the existing ambient noise levels indicates that production drilling noise levels are generally less than the measured, existing LAeq noise levels during the daytime and night time periods, noting the effect of rain on noise levels measured during the night-time. Outer envelope (i.e. worst case) noise contours for the prevailing wind atmospheric conditions for the production drilling works are presented in Figure 6-1.

Chapter 6 - Impact Assessment Exploration and Production Drilling 12

227000

228000

229000

230000

8060200

8061200

226000

Maolapa

. !

8059200

Ring Road

Nasinu

. !

Alternative Exploration Site to Zone D

Safaki

. !

Beachcomber Resort . ! Beachcomber resort

Takara Church

Zone A

Zone C

Takara

. ! . ! Takara

Airstrip residence

Takara South

. ! Takara

. !

Landing

Baofatu

Zone B

8058200

Takara Landing

. !

Rin

Zone D

Quoin Hill #

Onesua

. !

8056200

8057200

H:\Projects-SLR\630-SrvNTL\620-BNE\620.11005 Proposed Takara Geothermal Project\Figures\ArcGIS\Report Figures\Acoustics\SLR62011005_D6_ESIA6-1_PrevailingProduction_01.mxd

. !

Zone E

LEGEND

. !

Noise Receivers

Injection Well Pad Site

Production Noise (Prevailing Wind) LAeq (1hour)

Production Well Pad Sites

30 dBA

Geothermal Power Plant Site

40 dBA

Exploration Drill Pad Sites

35 dBA (Night-time Criteria) 45 dBA Date: 22/08/2014 Drawn: NT Scale: 1:25,000 Sheet Size: A4 Projection: WGS 1984 UTM Zone 59S

50 dBA

55 dBA (Daytime Criteria) 60 dBA

Epule

65 dBA 70 dBA

The content contained within this document may be based on third party data. SLR Consulting Australia Pty Ltd does not guarantee the accuracy of such information.

ÂŠ

100 200 300 400 500

Prevailing Wind Production Noise

FIGURE 6 - 1

6.4.4

Mitigation Measures

This assessment has identified that the noise levels associated with the Project are generally below the EHS Guideline noise limits. As such, adherence to GIIP for noise prevention and control as described in the Environmental, Health, and Safety (EHS) Guidelines – Environmental Noise Management (IFC, 2007) are deemed sufficient to mitigate the noise and vibration impacts associated with all stages of this project. Recommended measures that can be implemented facilitate adherence have been provided in Table 30 of the Noise Impact Assessment Report (SLRd, 2014). With regard to the ‘Airstrip Residence’ that will have noise exceedance for drilling activities, consultation will occur with the affected resident to negotiate a mutually acceptable solution, for example, temporary relocation during the production drilling works at the applicable well locations, or provide upgrades to the affected residence to improve the acoustic insulation.

6.5

Landscape and Visual Amenity

6.5.1

Sources of Impact

The Landscape and Visual Amenity assessment identified the following activities as potential sources of impact on the aesthetic and/or visual amenity of impacted areas. Exploration Drilling Sites Activities that may impact the aesthetic and/or visual amenity values of areas within the Project footprint as a result of the construction of the exploration drill pads and drilling include: 

Vegetation clearing for the drill pads and access tracks;



Earthworks to create level drill pads and laydown area for drilling activities (3,600m2);



Steam venting during well testing;



Presence of temporary drill rig and associated well infrastructure; and



Lighting for 24/7 operation of the production drill rig.

Production Drilling Sites Activities that may impact the aesthetic and/or amenity values of areas within the Project footprint as a result of the construction of the exploration drill pads and drilling include: 

Vegetation clearing (minor as sites will have been cleared previously for exploration drilling);



Minor earthworks to create level drill pads for drilling and associated activities;



Steam venting during well testing;



Presence of temporary drill rig and associated well infrastructure; and



Lighting for 24/7 operation of exploration drilling.

Laydown Areas Activities that may impact the aesthetic and/or visual amenity values of areas within the Project footprint as a result of the construction of the Laydown Area include: 

Minor Vegetation clearing (mostly already cleared - grassland);



Minor earthworks for equipment storage, and associated activities;



Presence of temporary accommodation facilities and vehicle park-up area; and



Presence of fuel storage depot.

Chapter 6 - Impact Assessment Exploration and Production Drilling 14

Access Tracks Activities that may impact the aesthetic and/or visual amenity values of areas within the Project footprint as a result of the construction of access tracks include: 

Minor Vegetation clearing; and



Minor additional ground disturbance.

6.5.2

Sensitive Receptors

When assessing the aesthetic impacts of infrastructure sensitive receptors are considered as accessible vantage points from which the observer’s enjoyment of the view shed is diminished by the profile of the infrastructure. The location of these vantage points in relation to areas where visible project related infrastructure will be located is shown in Figure 6-2. Four vantage points were considered by this assessment: Observer Location 1 – This location is situated on the Ring Road at the Corner Village area, opposite the entrance to the Beachcomber Resort looking west towards the Project site. Observer Location 2 - This location is situated just off the Ring Road north-east of the Project area; at the likely vehicular access turnoff to the Project area. This location is just 750m from the proposed geothermal power plant site. Observer Location 3 - This location is situated just off the Ring Road directly to the north of the Project area. This is approximately the nearest location along the Ring Road to the Project area. This location is only 200m from the geothermal power plant site. Observer Location 4 - This location is situated at the edge of the Ring Road adjacent to the turn off to Takara Landing (to the east). It has a view in a north westerly direction towards the Project area. This location is 1.3km from the geothermal power plant site.

Chapter 6 - Impact Assessment Exploration and Production Drilling 15

Figure 6-2 Visual Impact Observer Locations

Â 6.5.3

Impact Assessment

Observer Location 1 - From this location 18m exploration derrick would be visible at drill zone A only. The production rig derrick at 50m tall would be visible from this observer location when operating at all drill zones. Observer Location 2 - An 18m exploration derrick would be visible at drill zones A and E only. The production rig derrick at 50m tall would be visible from this observer location when operating at all drill zones. Observer Location 3 - An 18m exploration derrick would be visible at drill zone E only. The production rig derrick at 50m tall would be visible from this observer location when operating at all drill zones. Observer Location 4 - This site has the most expansive view of the Project area from the road due to the lack of tall shielding vegetation (see Figure 6-3). An 18m exploration derrick would be visible at drill zones A and E only. The production rig derrick would be visible from this observer location when operating at all drill zones. Figure 6-4 shows the ground level view of Observer Location 4.

Chapter 6 - Impact Assessment Exploration and Production Drilling 16

Viewshed and Line of Sight Analysis Injection Drill Pad

Zone E

Laydown Area

Geothermal Power Station

Alternative Exploration Site to Zone D

# 0A

Zone A

Zone C

Production Drill Pads

Exploration Drill Zones

LEGEND

Zone B

# 0

Zone D

Observer Location 4 Line of Sight (ground + vegetation) Green - Visible Red - Not Visible Elevation Profile

Bare Ground Viewshed Not Visible Visible

Project Disturbance Footprint

Elevation (m)

Elevation Profile 4.6 4.4 4.2 4 3.8 3.6 3.4 3.2 3 2.8 2.6 0

100

200

300

400

500

600

700

800

Distance From Proposed Power Station (m)

900

1,000

1,100

1,200

1,300

Vegetation Profile

A 3D View (Ground and Vegetation) B A Date: 28/08/2014 Drawn: NT Scale: 1:15,000 Sheet Size: A4 Projection: WGS 1984 UTM Zone 59S

The content contained within this document may be based on third party data. SLR Consulting Australia Pty Ltd does not guarantee the accuracy of such information.

ÂŠ

250

Viewshed Analysis - Location 4

FIGURE 6 - 3

Figure 6-4 Observer Location 4 View Toward Project Area (to the North-West).

Figure 6-5 and Figure 6-6 shows an elevated View (50masl), from Takara toward the Project showing the exploration (Observer Location 1), and production drilling (Observer Location 4) phase respectively. Figure 6-5 Elevated View of Project Area â&#x20AC;&#x201C; Observer Location 1 (Exploration Drilling)

Chapter 6 - Impact Assessment Exploration and Production Drilling 18

Figure 6-6 Elevated View of Project Area (With Vegetation) – Observer Location 4 (Production Drilling)

6.5.4

Mitigation Measures

The Project will undoubtedly have some impact on the existing visual amenity surrounding the Project area. However, the moderate impacts are related to temporary activities such as the production drill rig during the day and lighting at night. The other moderate impacts include the clearing of vegetation and earthworks for construction. The majority of these areas will be rehabilitated allowing the return to native vegetation and / or market gardening. Also the Project is not located close to any areas of high population density or in an area that is heavily visited by tourists, therefore the number of sensitive receptors that will be exposed to the temporarily compromised aesthetics of the area is small. The detailed design of the Project is the phase at which most gains can be achieved in terms of minimising visual impacts. The following recommendations should be considered during project design: 

Plan project activities in consultation with the local community so that activities with the greatest potential to generate visual impact are managed according to community expectations;



Minimise structure heights where possible; and



Maintain existing vegetation that will provide visual screening to the Project.

In addition, adherence to GIIP will be sufficient to mitigate the moderate aesthetic and amenity impacts associated with all stages of this project. Recommended measures that can be implemented facilitate adherence have been provided in Table 4 of the Landscape and Visual Amenity Technical Report (SLRe, 2014).

Chapter 6 - Impact Assessment Exploration and Production Drilling 19

6.6

Terrestrial Ecology

6.6.1

Sources of Impact

The main activities that may be a source of impact to the terrestrial ecology of the area as a result of the drilling phases are: 

Habitat disturbance from vegetation clearing for drill pad sites, with disturbance to and loss of secondary forest on the slopes of Quoin Hill and grassland to airstrip area;



Temporary disturbance to and permanent loss of gardens, which provide a source of food for the local community, associated with clearing for drill pads;



Potential pollution from geothermal brine mixing with local groundwater resources, thereby affecting local freshwater wetland systems (which appear to be groundwater connected);



Disturbance or entrainment of freshwater fish and other aquatic fauna in the Epule River, during pumping of freshwater from the river;



Noise affecting the life cycles of local fauna; and



Traffic related fauna injuries.

6.6.2

Sensitive Receptors

Flora A total of 294 plant species were recorded during the survey. This total includes two endemic species (Ficus aspera and Geiossois denhamii) and five species that are listed in the International Union for Conservation of Nature (IUCN) Red List. 101 species are culturally and economically important, and one species (Santalum austro-caledonicum) is listed as ‘Rare or Threatened’ and ‘vulnerable to exploitation’. Another 17 species are listed as invasive in Vanuatu. Four broad vegetation types were identified within the study area: Primary Forest, Secondary Forest (including gardens), Grassland (including regenerating scrub), and Seashore Forest. The most extensive vegetation type is Grassland, which covers the low lying and flat terrain of the former airstrip. Secondary Forest covers much of the foothills of Quoin Hill in the south of the study area, with small patches of Primary Rainforest present, and Seashore Forest occurring between the beach at Takara Landing and the Ring Road. Fauna A fauna assemblage of 39 vertebrate species was recorded during the survey, comprising 36 native species and 6 exotic species. The fauna assemblage comprises 27 birds, 6 mammals, 5 reptiles and 1 amphibian. Of the avifauna assemblage recorded during the current investigation, 27 birds are listed under the IUCN Red List. Of these, 24 are listed as ‘Least Concern’, two as ‘Vulnerable’ (Vanuatu Megapode, Vanuatu Imperial Pigeon) and one as ‘Near Threatened’ (Vanuatu Kingfisher). Six of the recorded mammal species were listed on the IUCN Red List, including two as ‘Least Concern’ (Polynesian rat, Little Bentwing-bat), two as ‘Vulnerable’ (Vanuatu flying fox, Pacific flying fox) one as ‘Endangered’ (Fijian Free-tailed Bat) and one as ’Data Deficient’ (Small Melanesian Bent-wing-bat). Four of the five reptiles recorded during the current study (Pacific boa, House gecko, Melanesian slender-toed gecko and Pacific slender-toed gecko) are listed as ‘Least Concern’ on the Red List. Seven of the recorded species are ‘endemic to Vanuatu’ (six birds, one mammal), six are ‘of cultural and economic value’ (four birds, two mammals), five are ‘locally vulnerable to overexploitation’ (three birds, two mammals), and six are ‘rare or vulnerable’ (three birds, three mammals). Aquatic One amphibian species was recorded during the survey period – the introduced Green & Golden Bell Frog (Litoria aurea). This species is native to coastal areas of New South Wales, Australia, where it is listed as endangered under State and national legislation. Bouchet et al. (2011) note that the species was introduced to Vanuatu and has been recorded from Efate, Santo, Malekula and Aore. At Takara,

Chapter 6 - Impact Assessment Exploration and Production Drilling 20

adult male frogs were heard calling and were observed within the water and on fringing vegetation in two locations: 

in a low lying ponded area, west of the Ring Road and northeast of the eastern end of the airstrip; and



in a broad shallow pond system to the north of the Ring Road, south-west of the Beachcomber Resort.

Both of these sites are located outside of the study area and are likely to be temporary (ephemeral) wetland systems, which contained ponded water after the substantial rainfall that had occurred during the field survey. 6.6.3

Impact Assessment

Flora Impacts on flora will occur during the exploration and production drilling phase as a result of clearing vegetation and earthworks to construct drill pads, well sump and storage ponds; lay-down area; workers camp; water supply and temporary access roads. Most of the vegetation clearing will occur during the exploration phase. Table 6-5 lists the vegetation removal by type. The areas listed in Table 6-5 are based on GIS calculations for the laydown area, access tacks and exploration drill pads. Table 6-5 Exploration Drilling – Extent of Vegetation Clearing Vegetation type

Area (ha)

Grassland and Regenerating Shrubland Forest

0.00

Secondary Forest and Gardens

2.62

Seashore Forest

0.00

Primary Forest

0.02

Total

2.64

Clearing of exploration drill pads in Zones A, B, C and D will require the removal of 14,400 m2 of Secondary Forest, including active and fallow gardens. Clearing (or in some cases widening) of access tracks from the airstrip upslope to the exploration drill pads will require the removal of 7,600 m2 of Secondary Forest, including active and fallow gardens. It is likely that either fruit trees, including Mango, Nakatambol (Dracontomelon vitiense), Coconut Palm, Sago Palm or Cacao or timber trees, including (Canoe Tree, Kenutri), (Gyrocarpus americanus), Milk Tree, Melek Tri (Antiaris toxicaria) and White Wood, Waetwud (Endospermum medullosum) occur within areas proposed for clearing. Individuals of the IUCN Red List species Erythrina variegata var. variegata may occur within areas proposed for clearing. Upon completion of exploration activities, drill pads and access tracks that will not be required for production drilling or geothermal plant infrastructure will be rehabilitated to the existing land-use according to the ESMMP (ESIA, Chapter 8). In terms of the duration and permanency of impacts on flora, vegetation loss and disturbance associated drill pads will be during the exploration phase only. The drill pads and access tracks will be rehabilitated following exploration. Hence the clearing impacts, for the most part, will result in temporary loss of native vegetation and planted gardens, with most of these areas to be rehabilitated following drilling phase. During production drilling, an additional 0.64 hectares of clearing per well will be required, totalling 1.2 hectares of clearing of Secondary Forest (including gardens) for the two production wells. Additionally, the establishment of the injection well will require the removal of 10,000 m2 of Grassland and Regenerating Shrub Forest. These impacts are listed below in Table 6-6.

Chapter 6 - Impact Assessment Exploration and Production Drilling 21

Table 6-6 Production drilling – Extent of Vegetation Clearing Vegetation type

Area (ha)

Grassland and Regenerating Shrubland Forest

0.99

Secondary Forest and Gardens

1.30

Seashore Forest

0.00

Primary Forest

0.00

Total

2.29

Overall, the key impacts on flora associated with exploration and production drilling include: 

Temporary disturbance to and permanent loss of Secondary Forest on the slopes of Quoin Hill associated with clearing drill pads and access tracks;



Temporary disturbance to and permanent loss of gardens, which provide a source of food for the local community, associated with clearing drill pads and access tracks;



Potential loss of individuals of culturally important plants, such as Gyrocarpus americanus (Canoe Tree, Kenutri);



Potential disturbance to Erythrina variegata var. variegata, a threatened plant. Further design work and field surveys to locate individuals of this plant are required to determine if the Project will have a direct impact on this species;



Loss of grassland, which is of low floral diversity and conservation value;



Rehabilitation of all exploration drill pad sites to existing land-use i.e. native vegetation or gardens; and



Rehabilitation of all production drill pad sites to existing land-use with the retention of approximately 10 m x 10 m fencing around the two (2) production and one (1) injection well head. All the other areas of the drill pad will be rehabilitated.

Fauna Impacts on fauna species and their habitat will occur during the exploration and production drilling phase in association with the clearing of vegetation and earthworks outlined above in ‘Flora’ Section. A breakdown of fauna habitat clearing required for the drilling phases in listed by habitat type in Table 6-7. Table 6-7 Areas of Habitat Type to be Disturbed During Drilling Vegetation type

Area (ha)

Forest

3.93

Grassland and Regenerating Shrubland Forest

0.99

Seashore Forest

0.00

Total Area (ha)

4.92

As listed in Table 6-7, the key impact of the drilling phases is the temporary disturbance to and permanent loss of Forest habitat. As described previously, this habitat type provides foraging and shelter resources for: 

The Vanuatu Megapode, a threatened species, and other ground dwelling birds (Red Jungle fowl);



A range of forest birds that are native to Vanuatu, some of which are listed on the IUCN Red List (e.g. Vanuatu Imperial Pigeon);



Flying foxes, which feed on the fruits of the forest trees and garden plants in this area; and



Microchiropteran bats, which forage for insects above and through the forest canopy.

Chapter 6 - Impact Assessment Exploration and Production Drilling 22

In relation to the Megapode, nest sites are present just north of Zone C, as shown in Figure 5-14 (ESIA Chapter 5). The drill pad for Zone C is located south of the nest sites, but the access track may disturb Megapode nesting sites and will disturb foraging habitat for this species. Further design work and field surveys would be required to determine the exact area of habitat loss for this species. However, provided the access track avoids the actual nest sites, the area of habitat loss will be small to negligible (around 4 m wide over approximately 20 m of track). Moreover, the access track will be rehabilitated to its current condition following the completion of exploration drilling activities. In relation to other fauna types that could be affected (e.g. birds and bats), they are all generally mobile and dispersive and forage widely over the locality. They would not be adversely affected by the loss of a relatively small area of foraging habitat associated with the drilling works. However, preclearing surveys would be required prior to any clearing works, targeting nesting birds and roosting bats, to identify any nest or roost sites so that they can either be avoided or relocated (if feasible). Aquatic In relation to freshwater aquatic ecosystems within the study area, drilling activities could have the following impacts: 

Temporary lowering of water levels in freshwater wetlands, near the Ring Road, thereby affecting the availability of foraging and breeding habitat for the frog population (i.e. Green and Golden Bell Frog) recorded at this location; and



Inadvertent introduction of pollutants into aquifers that are hydrologically connected to the freshwater wetlands discussed above, thereby causing mortalities or disease, and/or reducing breeding success in locally occurring frog populations.

The implementation of suitable mitigation measures during the drilling program will reduce the risk of such impacts to low or negligible levels. The construction of access tracks and drill pads during the exploration phase could disturb existing drainage lines and riparian vegetation. Potential impacts include: 

Disturbance to riparian habitat during vegetation clearing;



Changes to hydrological regime, affecting local occurring aquatic species (if present) and terrestrial riparian species; and



Reduction in quality of temporary aquatic habitat during rainfall events, due to erosion and sedimentation.

However, the proposed access tracks and drill pads sites are all located on ridgelines and so avoid the main watercourses within the study area. Provided suitable erosion controls and surface water management measures are implemented, impacts on riparian and aquatic habitats are expected to be minimal. 6.6.4

Mitigation Measures

Flora Impact mitigation measures for the Project which are specific to the existing vegetation are: 

Rehabilitated sites should be monitored for weed germination and development for at least one year after completion of the Project; and



Identification of rare or economically/culturally significant plant species during clearing and construction activities.

Chapter 6 - Impact Assessment Exploration and Production Drilling 23

Fauna The key impact mitigation measures for fauna include: 

Pre-clearing surveys for the threatened Vanuatu Megapode and its nesting sites, prior to clearing exploration tracks and pads, particularly in the vicinity of Zone C;



Rehabilitation of exploration track and drill pads to return Megapode foraging habitat to its current condition (i.e. of equal or better habitat quality);



Periodic monitoring of Megapode nest sites, nesting behaviour and general habits of the Megapode during the drilling and construction phases, to gauge the effect of the Project on breeding behaviours and reproductive success and life cycle processes (to be conducted by a local ecologist or wildlife specialist); and



Pre-clearing surveys and flagging of important habitat trees, targeting roosting micro-bats and flying foxes, large and/or mature hollow-bearing trees and large fruit and/or rainforest trees. Where possible, habitat trees will be avoided in the alignment of access tracks and the positioning of drill pads.

Aquatic Ecosystems The key impact mitigation measures for aquatic ecosystems and fauna include: 

Erosion controls as per ESMMP to prevent sedimentation of watercourses within proximity to exploration drill zones A, B, C and D;



Drilling protection measures, to avoid spilling or leaking of drilling fluids into aquifers or surface watercourses;



Avoid vegetation clearing within or adjacent to watercourses and wetlands, whether ephemeral or permanent; and



Design of the saltwater pipeline offtake on the Epule River and freshwater abstraction point to avoid fish entrapment (combination of suitable screens and pumping regime); regular inspections of the offtake during exploration and production drilling phases to monitor potential fish entrapment or other adverse effects (with allowance for adaptive management).

6.6.5

Positive Impacts

Positive impacts associated with the terrestrial ecology may occur with education of the significance of the endangered Megapode with the local community. This may lead to reduced collection of nest eggs and a focus on assisting with the conservation of the species in the Quoin Hill and Takara areas.

6.7

Marine Ecology

6.7.1

Sources of Impact

The nature of activities to be undertaken during the exploration and production drilling phase of the Project that are likely to impact the marine environment, include: 

Geothermal brine leakage to the marine environmental following exploration well tests;



The possible development of barge landing facilities and associated vessel traffic hazards including vessels running aground and/or anchoring while transporting equipment;



Water and contaminant discharges from drilling and associated land-based operations; and



Earthworks exposing bare soil, leading to increased sediment deposition to the marine environment.

6.7.2

Sensitive Receptors

Sensitive receptors in the near shore marine environment can be directly impacted by Project associated activities (e.g. damage to coral by marine vessels or landing stage upgrade activities), or

Chapter 6 - Impact Assessment Exploration and Production Drilling 24

they can be indirect impacts resulting from changes to the receiving environment which degrade habitat quality (e.g. thermal pollution or declines in water quality). Marine ecology transect and quadrat habitat surveys concluded that five distinct marine habitat types are represented in the investigation area (see Figure 6-7), including: 

Sand/coral rock intertidal zone;



Hard coral dominated reef flats;



Hard coral dominated reef flat/sea grass complex;



Soft coral dominated outer fringing reef; and



Near shore coastal habitats.

The results of this survey indicate that the marine ecosystem in the investigation area is in good overall condition. The outer fringing reef habitat displays low incidences of coral bleaching and disease, and the water and sediment analyses returned results indicating low levels of contamination. Figure 6-7 Marine Ecology Potential Impact Area

6.7.3

Impact Assessment

The impact pathways via which marine sensitive receptors are likely to be impacted by activities associated with the proposed project are: 

Declines in water quality as a result of potential chemical pollutants contained in released of geothermal brine (if re-injection of brine is not technically possible);



Declines in water quality as a result of chemical spills originating at the project site;



Sedimentation caused by terrestrial erosion as a result of project activities; and



Damage to corals from project related vessels.

Chapter 6 - Impact Assessment Exploration and Production Drilling 25

The primary impacts anticipated from the Project on the marine environment are associated with declines in water quality as a result of the potential release of geothermal brine in to the near shore environment. Re-injection of the geothermal brine produced during drilling well tests is the intended action. If for technical reasons it cannot be re-injected it will be discharged to the ocean offshore of the Takara Landing. The discharge of geothermal brine to the marine environment could potentially cause temporary localised increases in the concentrations of inorganics, dissolved metals and heavy metals. The risk of impact to the marine environment posed by these discharges will depend on the volume of brine released, the concentration of potentially impacting components and the rate at which the brine is diluted once it enters the marine environment. Some very preliminary discharge and dilution modelling has been completed as part of this ESIA in which some very broad assumptions were made about the chemical composition of the discharge brine, the design of the outfall structure and the physical parameters that affect dispersal and dilution in sea water. The modelling included computational simulations of discharge dilution using a geometric model for the following selected components, with discussion for each model run: 

Arsenic was modelled and found to be diluted by approximately 100 times at 45 m from the discharge exit, with dilution of approximately 10 times at 5 m from the discharge exit. Note however that arsenic is not in the design basis brine composition, and has been modelled for illustrative purposes only in the event that it is discovered in the fluid analysis during exploration drilling.



Mercury was modelled and found to be diluted by approximately 100 times at 50 m from the discharge exit. Note however that arsenic is not in the design basis brine composition, and has been modelled for illustrative purposes only in the event that it is discovered in the fluid analysis during exploration drilling.



NH3 is diluted by approximately 100 times at 53 m from the discharge exit.



SO4 is diluted by approximately 100 times at 49 m from the discharge exit.



Fluoride is diluted by approximately 100 times at 48 m from the discharge exit.



Dissolved Metals; Aluminium is diluted by approximately 100 times at 47.5m from the discharge exit



Dissolved Metals; Barium is diluted by approximately 100 times at 47.5m from the discharge exit

The sea water concentrations for some of the modelled geothermal brine concentrates of ions, inorganics and metals (e.g. Mercury; Ammonia Nitrogen; Sulphate; Fluoride; Aluminium) may be higher or similar to that found in seawater. The dilution factor is therefore not relevant if the concentration is lower than seawater. 6.7.4

Mitigation Measures

Based on this modelling analysis of the limited data available it would appear that analyte concentrations in brine would remain above those of the receiving seawater within 50 m of the discharge point. Therefore, the design of a discharge pipe should be situated at least 50 m past the edge of the reef and with discharge into the water column to aid dispersion. The remaining impacts to the marine environment from the proposed activities are considered to be minor and can be minimised by adherence to GIIP described below and in ESMMP. It is possible that dilution in seawater will reduce the concentration of any harmful pollutants present in drilling brine to negligible levels soon after release, however this should be demonstrated through robust modelling before any brine is released in to the receiving environment. Following the drilling of the first well and analysis of the actual constituents of the geothermal brine, the modelling will be re-run to demonstrate the size of the pollutant plume within the drilling brine

Chapter 6 - Impact Assessment Exploration and Production Drilling 26

discharge. This will then determine the distance the discharge pipe can be situated from the edge of the reef.

6.8

Social / Cultural Environment

6.8.1

Sources of Impact

Activities that have potential to both positively and negatively impact on the social and cultural heritage assets of the area during the exploration and production drilling phases of the Project are listed below. Sources of Negative Impacts  Vegetation clearing and construction resulting in direct losses of land and property or degradation of land classification; 

Vegetation and clearing causing disturbance to Kastom norms, features and sites of cultural significance;



Disruption of local cultural dynamics as a result of the influx of foreign workers to service the Project;



Limited opportunity for training and skilled employment opportunities to access work opportunities;



Under representation of vulnerable groups (e.g. women, youth, disabled), in the existing social structure puts them at risk of being overlooked for distribution of Project related benefits;



With an increase in the economic standing of much of the local population as a result of the Project there is an increased risk of substance abuse among youth and potential for increased tension between different groups or communities due to perceived inequalities in the distribution of project benefits; and



General health and wellbeing could be impacted by nuisance impacts from Project generated noise, air pollution and increased traffic movements.

Sources of Positive Impacts  The construction and production activities associated with the Project will likely serve as stimulus for the local economy and businesses, creating job opportunities and improving the living standards of the local population; 

The Project is likely to act as a catalyst for improvement of institutional structures, governance and organisational cooperation as the local leaders learn to deal with the new civic issues raised by development of the Project; and



Mitigation activities and revenue generated by the Project will provide opportunity for improvements in community facilities and infrastructure through a Community Benefits Program (CBP).

6.8.2

Sensitive Receptors

The Takara community, for the purpose of this Project, is considered to be made up of two core villages: Natakoma Komuniti (the Corner Village) and Takara Landing, with residences close to the abandoned airstrip and Savak to the east of the site. Until 2010 when “Natakoma Komuniti” was named, the two villages were termed Takara A and Takara B. Natakoma was named through an amalgamation of the key groups residing in the community (Ntainkanas, Karaf and Mangaroa). There are four groups claiming land ownership in the Takara area, namely: Ameara Wetern Manupangmanua, Karaf, Ntain Kanas and Ameara Liu. The decision regarding Kastom ownership currently rests with the Lands Tribunal with a decision currently pending. Two groups: Ameara Manupangmanua and NtainKanais have been given joint custodianship of the Takara land in 2012 pending appeal.

Chapter 6 - Impact Assessment Exploration and Production Drilling 27

There is a close relationship between the island of Emao (Emau) and Takara, with close networks, reciprocal obligations and constant inter community travel. The Takara land borders on the neighbouring community of Savak, the boundary of which lies towards the western end of the proposed Project site. This land on the border has been farmed by the Mangroaonga group from Emao who purchased the land through customary purchase from a Savak chief in 1912. 6.8.3

Impact Assessment

Property and Kastom Land Potential impacts on property and Kastom land during drilling would include: 

Clearing of gardens, crops and plantation trees to create drilling pads and access tracks.



Affected land for drilling will be rehabilitated for Kastom land and gardens.



The affected land for production drilling will be rehabilitated with a small area required for ongoing production for the life of the Project. Rehabilitated areas will be available as Kastom land and gardens.

The first exploration drill site is planned to be located on the existing airstrip (alternate exploration site to Zone D). This will minimise disturbance to or clearing of gardens, crops and plantation trees. However, exploration Zones A, B and C will require clearings and appropriate compensatory benefits to those directly affected. The siting of an exploration well on the abandoned airstrip will eliminate impacts to gardens within this area. For areas that may require disturbance to gardens (Zones A, B and C), Geodynamics will work with the affected garden owners, community leaders and the Government to compensate for any loss or interruption to crops, and where possible, arrange for relocation to alternative garden areas. Geodynamics commits to ongoing consultation with the local community and impacted community members. Culture and Social dynamics Potential direct impacts on culture and social dynamics during drilling activities would include: 

Disturbance to / on places or characteristic features of cultural or historical significance (e.g. cemeteries).



Disturbance to / on places or characteristic features of cultural or historical significance (e.g. scrub duck habitat potentially affecting the nesting and reproductive practices of the scrub duck).



Potential for increased tension between different groups or communities due to perceived inequalities in the distribution of project benefits.

Given the relatively small footprint of the proposed geothermal drill sites it is unlikely that a large physical space will be affected by the Project and sites of cultural significance can be avoided. The scrub duck habitat lies within the proposed exploratory zone and the Project will avoid their habitat as much as possible given their environmental significance as an endangered species; and their cultural significance to some groups. Mitigation controls for the scrub duck habitat and potential nesting sites are detailed in the Terrestrial Ecology Technical Report (SLRf, 2014). Potential indirect and perceived impacts on culture and social dynamics during drilling activities would include: 

Project workforce is not respectful of Kastom (e.g. not respecting local norms, such as Sunday church, appropriate clothing etc.)

Chapter 6 - Impact Assessment Exploration and Production Drilling 28

ď&#x201A;ˇ

Western influences (through a foreign workforce) in the community during the exploration, construction stage and to a lesser extent the operational stage with different rules of engagement and behaviours can threaten traditional structures. Western influences can appear exciting for the under-employed youth who may wish to mimic their behaviours, clothing etc. This has been noted as a concern by some respondents.

Given the relatively small number of workers required for exploration and production drilling phase, the impacts of western influences on the local Kastom are likely to be minimal and manageable. Population Potential impacts on population during drilling would include an influx of workers to Takara for the Project, including from overseas, other parts of Efate and nearby islands. The exploration and production drilling phase will only require about 15 people working 12 hours shifts, 24 hours per day on a roster. These workers are likely to be sourced from Australia or New Zealand and would operate onsite for approximately 4 to 6 weeks, with one team leaving and another returning to site during this project phase for approximately a year (total for both phases). A small number of skilled workers and labourers will be required to support drilling activities and for support activities. It is likely that these will be sourced from Takara. Given the small number of workers required for the exploration phase, the temporary influx of workers to Takara from other parts of Efate or nearby islands is unlikely to impact on the total population. There is the capacity within Takara and Natakoma communities to respond to the needs for unskilled labour and to some extent this is anticipated by the local community. The SIA Project team noted significant movement between Takara and Emao Island communities, and the anticipation of employment may result in more community members settling in Takara on either a temporary or permanent basis. Education As was noted in ESIA Chapter 5, school attainment and literacy rates are low in Shefa Province. The ability to utilise local community members for workforce opportunities is largely limited to unskilled and labouring roles. This offers an opportunity for the Project to identify key skilled operational roles that could be sourced locally given specific training which could be subsidised through a Community Benefit Program. Vulnerable Groups Vulnerable groups (e.g. women, youth, disabled) may be marginalised and may not have equal access to jobs and benefits. Culturally, men will speak on behalf of women, even though it is largely women who tend the gardens that are likely to be impacted by the Project. Women are therefore more susceptible to any potential impacts to communal gardens. During exploration and production drilling, it is expected that men (including local youth) may benefit from local labouring job opportunities than women, such as ground clearing for drilling and fencing equipment. Unless women are aware of opportunities in areas such as catering and cleaning and can organise themselves to benefit from these opportunities, they may be overlooked and be further marginalised from opportunities and benefits. It is thus important that the women are not overlooked as potential project beneficiaries and they receive adequate information and support to realise these benefits. It is also important that those women whose gardens are impacted are appropriately considered and compensated in order to enable them to access alternative employment opportunities. Targeted ongoing consultation with vulnerable groups is essential in order to ensure that community benefits also reach them. Economy, Employment and Livelihood Potential impacts on economy, employment and livelihoods during drilling would include: ď&#x201A;ˇ

Some increased access to economic resources for individuals and households, providing opportunities to support improved standards of living (Agriculture Impact) - Increased demand for local food crops and fish;

ď&#x201A;ˇ

Minor opportunities for training and employment in areas to better realise tourism potential in the area (accommodation, fishing, hot springs); and

Chapter 6 - Impact Assessment Exploration and Production Drilling 29

ď&#x201A;ˇ

Minor opportunities for business and industry in Port Vila including increased demand for goods and services to support exploration activities, such as transport of materials, equipment and resources.

Impact on individuals for loss of gardens will ultimately depend on the location of the Project and the amount of land that is required for exploration and production activities. There is no doubt that the loss of productive land will impact on income and livelihoods and fair and gender equal compensation arrangements will need to be put in place by Geodynamics. Land that has undergone exploration but is not required for the Project has the ability to be fully restored and rehabilitated, enabling the replacement planting of crops and plantation trees. Exploration and production drilling will provide some opportunities for employment, although direct employment will be limited. Indirect opportunities from the Project as a result of increased demand for goods and services will have an some impact on the primary, secondary and tertiary social-cultural areas of influence. Wages from direct or indirect employment will provide benefits for individuals and households. Benefits from wages are likely to have a multiplier effect, used to purchase more goods and services and potentially for investment in local enterprises in Takara, especially agriculture, tourism and services. Agriculture For agriculture, the Project can translate into an increased demand for local produce as well as provide the capability to invest in infrastructure to support agricultural production. The improved viability of road side stalls, through the provision of an available local market for selling produce as well as local food products is likely to offer a positive benefit from this project. Tourism and Associated Services The Takara surrounds are poorly developed as a tourism destination offering basic attractions and services. The main tourism attraction is the Beachcomber Resort offering simple accommodation and hospitality and employing approximately 7-10 local people. The Bamboo Beach Resort is a smaller tourist operation east of Takara also offering basic bungalow accommodation and limited hospitality. The Nasinu Hot Springs brings in an income for the local operators. With an increased focus on Northern Efate, there is the potential to redevelop and enhance these existing facilities locally at Takara. Concerns were raised regarding the impact of the proposed geothermal Project on the Nasinu Hot Springs. The fear is that the proposed project will affect the flow and temperature of water to the hot springs. This in turn would affect the income received from guests swimming in the hot springs. While reassurance was provided to the residents that this was not likely to occur, ongoing communication with this operation is recommended. The Surface and Groundwater Technical Report further explains the risk and planned mitigation measures regarding this issue (SLRb, 2014). Dependent on where the workers for the proposed Project would be housed, the Beachcomber Resort does have the capacity to extend its hospitality services and accommodation facilities. The operation currently does not have enough rooms, facilities and staff to cater for the proposed drilling and construction workforce. Additional makeshift or permanent accommodation facilities would strengthen the opportunities of Beachcomber Resort post construction. This could offer a viable training opportunity for local youths. It is important that the location of the proposed Project does not result in a negative visual amenity to the tourist potential of the area. It is recommended that with a little effort the proposed project can either blend into the local environment or indeed enhance it (such as local paintings on the walls). The Landscape and Visual Amenity Technical Report further explains the risk and planning mitigation measures regarding this issue (SLRe, 2014). Institutional Structures and Governance Potential impacts on institutional structures and governance during drilling would include potential opportunities to improve inter-organisation cooperation.

Chapter 6 - Impact Assessment Exploration and Production Drilling 30

This is often poorly considered and managed in many locations which result in either paucity of efforts or duplication of efforts across specific interventions. The development of a partnership approach with local sectorial and regional agencies (e.g. Department of Environment, Ministry of Education as well as Shefa Provincial Council) and donor agencies, (e.g. Department of Foreign Affairs and Trade (DFAT) – Australian Aid, Japan International Cooperation Agency (JICA), and Asian Development Bank (ADB)) to the delivery of strategic interventions and benefits to the community can strengthen outcomes for the community. Community Facilities and Infrastructure Potential impacts on community infrastructure and facilities during drilling would include: 

Opportunities to improve community infrastructure and visual amenity through implementation of community investment initiatives.

During the exploration and production phase, Geodynamics is committed to undertake a range of strategic community work programs. There is an opportunity for investment to improve community infrastructure as described in the following impacts. 6.8.4

Health and Wellbeing

Potential impacts on health and wellbeing during drilling would include: 

Potential nuisance impacts from Project generated – noise, dust/odour and visual intrusion;



Changes in community perceptions around health, safety and security and environmental impacts;



Increased access to economic resources for individuals and households, allowing potential for substance abuse especially amongst the youth through increased spending capacity; and



Increased traffic along coastal Ring Road bringing goods and services to site with increased accident potential especially with children.

Prior to the exploration phase commencing, Geodynamics will consult with affected households to discuss potential noise issues with them. Although the noise exceedance is not high there is potential for stress and anxiety to occur if there is not adequate communication to explain the process and options available to affected households. During the consultation community anxiety in relation to the unknown impacts of the Project (e.g. earthquakes occurring as a result of Project), were a high concern for many community members and if these are not proactively managed they may impact on community health and result in negative perceptions of safety and security. Ongoing consultation with local communities will need to be undertaken as a priority by Geodynamics to help address concerns in relation to the proposed Project impacts. This will help to reassure the community and provide sufficient opportunities for the community to understand and process information being provided, so that there are no surprises in relation to the exploration and production drilling phase or any other stage of the Project. 6.8.5

Mitigation

A suite of mitigation and management measures have been developed to address the impacts identified in Section 6.8.3 these are detailed in the ESMMP in Chapter 8 of this ESIA. In addition to implementing the impact specific measures detailed in the ESMMP it is intended that that:  A CBP and a Kastom Owners Trust (KOT) are established prior to commencement of the production drilling; and 

An inclusive negotiation process is entered in to with all groups, to ensure that the CBP includes a range of projects that are targeted across key groups in Takara.

A range of impact mitigation measures have been identified in order to avoid or minimise adverse effects on social and cultural heritage, as outlined below:

Chapter 6 - Impact Assessment Exploration and Production Drilling 31



Prior to final siting of exploration infrastructure (and clearing) consult with Takara Chiefs/Community Leaders;



Consultation with sensitive receptors (e.g. households near Project activities) in accordance with ESMMP - discuss options for resettlement or noise attenuation;



Undertake consultation with local communities about Project activities during operation phase including discussion about potential impacts and mitigations. These should include as minimum:



Community meetings in Nakamal;

Meetings with Women’s group;

Briefings with police, schools, health centre and local tourist operators; and

Community updates/flyers/posters in local language.

Survey with local community to determine: o

Perceptions of safety and security (including antisocial behaviour) and effectiveness of plans/programs implemented by Geodynamics;

Awareness of increased traffic on coastal Ring Road; and

Attitudes towards workforce interaction with the local community.

Analyse effectiveness of actions by reviewing: o

Number of near miss reports and traffic incidents on public roads;

Number of security/safety incidents reported by local community, and attributed to Geodynamics employees; and

Undertake consultation as per exploration and production drilling.



Review response times and actions taken in relation to community complaints and grievances;



Monitor specific complaints and grievances and mechanism to address recurring community issues;



Audit induction/education programs to ensure 100% of employees and contractors are informed of the Workforce Code of Conduct and Cultural Awareness Program.

6.8.6

Positive Impacts

Positive impacts to the community as a result of the Project are summarised in Section 7.9.5, ESIA Chapter 7 and shown in Appendix C Social Risk Register. The positive impacts are mostly associated with the medium to long-term phases of the Project, and are therefore related more to the operation phase of the Project. The benefits identified are based on the results of a Project workshop to assess the type, mitigation support measure and positive impact significance. The workshop followed a methodology using the ‘Social Aspects Rating Matrix’ shown in Appendix C. Each positive impact was assessed for the consequence, level of severity and likelihood given a score. The score amount equates to a level of significance between ‘low’ and ‘very high’. The positive impacts identified are all ‘Medium’. The ‘Medium’ positive impact can result from the potential increased access to resources for individuals and the community. Although direct employment opportunities for the community are relatively small, the opportunity for the Project to assist with livelihoods, small business opportunities, training and community infrastructure will have a ‘Medium’ positive impact.

Chapter 6 - Impact Assessment Exploration and Production Drilling 32

6.9

Significant Environmental Impacts

Table 6-8 summarises the environmental impacts associated with the exploration and production drilling phases of the Project. Following the implementation of mitigation controls for each impact, the residual significance for each is shown as ‘Medium’. There are no impacts identified that are considered ‘High’, and ‘Low’ impacts are shown in Appendix C, Environmental Risk Register. As shown in Appendix C, the majority of the environmental impacts are associated with construction impacts causing a ‘nuisance’ or increased risk, but are temporary for the duration of drilling. These environmental impacts are based on the results of a Project workshop to assess the type, mitigation and residual significance of each impact. The workshop followed a methodology using the ‘Environmental Aspects Rating Matrix’ shown in Appendix C. Each negative impact was assessed for the consequence and likelihood and given a score. The score amount equates to a level of significance between ‘low’, ‘medium’ and ‘high’. The positive impacts identified are all ‘Medium’. As shown in Table 6-8 there are two (2) impacts stated that could cause a ‘Medium’ residual negative impact. The first of these is the clearing of native vegetation for drilling, causing a loss of habitat that could impact the Megapode (Scrub Duck). The other potential impact is to the marine environment if the discharge of geothermal brine is required, if re-injection is not possible. Both potential impacts are explained below. 6.9.1

Terrestrial Ecology

The primary impact on the terrestrial ecology of the area will be the loss of approximately 4.9 ha of land to the Project footprint during construction. This land currently provides habitat to a variety of flora and fauna including listed species. As terrestrial habitat is a finite resource any losses will have an impact to the wildlife residing in the area. However, direct impacts can be minimised by conducting pre-clearance surveys of areas before all works and rehabilitating disturbed areas post-Project as detailed in the ESMMP. As habitat is a finite resource no mitigation measures can fully compensate for losses therefore the residual risk to the terrestrial habitats of the receiving environment from activities associated with the phases of the Project is classified as ‘Medium’. 6.9.2

Marine Ecology

The primary impacts anticipated from the exploratory and production drilling phases of the Project on the marine environment are associated with the potential declines in water quality as a result of the release of drilling geothermal brine in to the near shore environment. This will only occur if re-injection of the geothermal brine into the reservoir is not technically feasible. The dilution in seawater will reduce the concentration of any harmful pollutants present in geothermal brine to negligible levels within approximately 50 m of the release point (based on preliminary discharge modelling) however further modelling if recommended following analysis of the brine following the drilling of the first exploration well. In the absence of detailed modelling the residual risk to the marine ecology of the receiving environment from activities associated with the exploratory an drilling phases of the project is classified as ‘Medium’.

Chapter 6 - Impact Assessment Exploration and Production Drilling 33

Table 6-8 Significant Environmental Impacts Description of Impact

Activity

Vegetation clearance

Loss of habitat for endangered species e.g. scrub duck

Geothermal brine discharge (if required)

Contaminants in ocean leading to flora and fauna damage

6.10

Project Stage

Drilling / Construction

Drilling

Mitigation Measures

1) Pre-clearance survey will be completed prior to construction. 2) Communication with community. 3) If birds persistently return to the disturbed area during construction then exclusion fencing can be installed. Eggs can be re-located. 4) Rehabilitate area of disturbance. 1) Re-injection of geothermal brine is preferred method of disposal. 2) Design of discharge point for water column height, location, velocity. 3) Modelling of predicted dilution factor from discharge point.

Consequence / Likelihood

Residual Risk

Moderate

Unlikely

Medium

Minor

Possible

Medium

Significant Social Impacts

The social and cultural aspects are the most complex components of this assessment due to the cultural and political sensitivities that currently exist within the affected communities; therefore assessing the residual risks to social components is not as straight forward as for the physical and biological components. The majority of social and cultural impacts are associated with drilling impacts causing a ‘nuisance’ or increased risk, but are temporary for the duration of the drilling campaign. All the impacts stated are due applicable to all phases, including drilling. Table 6-9 summarises the social and cultural impacts associated with the construction and operation phases of the Project. Following the implementation of mitigation controls for each impact, the residual significance for each is shown as ‘Medium’. There are no impacts identified that are considered ‘High’, and ‘Low’ impacts are shown in Appendix C.

Chapter 6 - Impact Assessment Exploration and Production Drilling 34

Table 6-9 Significant Social and Cultural Impacts Description of Impact

Aspect

Mitigation Measure

Residual Risk

Work on land, including possible clearing of gardens, crops and plantation trees during the drilling phase

Property and community land

1. Where possible restrict all work to non-garden areas. 2. Implement a KOT to pay rent to eventually declared Kastom owners. 3. Implement a local work plan to hire local workers for drilling and community projects during exploration drilling phase. 4. Implement agreed consultation process outlined in ESMMP

Medium

Increased traffic along coastal Ring Road bringing good and services to site with increased accident potential especially with children

Health and Wellbeing

Medium

Increased access to economic resources for individuals and households, allowing potential for substance abuse especially amongst the youth through increased spending capacity.

Health and Wellbeing

Potential for increased tension between different groups or communities due to perceived inequalities in the distribution of project benefits

Culture & Social Dynamics

1. CBP is developed with representation from all groups and maintained throughout life of project 2. Clearly delineate KOT rent payments (once Kastom owner is declared) from Community Benefits 3. Implement ESMMP consultation process

Medium

Vulnerable groups (e.g. women, youth, disabled) may be marginalised and not have access to jobs and benefits

Vulnerable groups

1. ESMMP consultation contains direct strategies to involve women and youth. 2. CBT supports women and youth specific projects. 3. Establish a Takara womenâ&#x20AC;&#x2122;s group to allow easy direction of questions and concerns to Geodynamics.

Medium

Limited opportunity for training and skilled employment opportunities

Education and Training

1. As part of CBP, investigate opportunities to upskill and train local community members for future project roles. 2.CBT supports education and training programs

Medium

Influx of workers to Takara for the Project, including from overseas, and other parts of Efate and nearby islands

Demographic change

1. As part of CBP, hire local workers for drilling and community projects. 2. CBT used to employ local workers on local community projects and/ or define key skill roles position(s) during operations that could be sourced locally with further skills training and implement scholarship/traineeship/graduate program. 3. Provide Workers camp provided for overseas workforce 4. Implement Workers Code of Conduct which includes Cultural Awareness

Medium

1. Company policy to avoid scrub duck key habitat areas through project design. 2. Cultural mapping highlights sensitive areas and project staff made aware of this as part cultural awareness training. 3. Implement ESMMP consultation process

Medium

Disturbance to / on places or characteristic features of cultural or historical significance - scrub duck habitat

Culture & Social Dynamics

1. CBT identifies opportunities to sponsor community awareness programs that educate community members about drug use, sponsor cultural appropriate programs e.g. Won Smol Bag Performance used to promote messages.

Chapter 6 - Impact Assessment Exploration and Production Drilling 35

Medium

CHAPTER

Impact Assessment - Geothermal Plant Construction and Operation

Table of Contents 7

IMPACT ASSESSMENT – GEOTHERMAL PLANT CONSTRUCTION AND OPERATION

7.1

Climate, Seismic Activity and Topography 7.1.1 Sources of Impact 7.1.2 Impact Assessment 7.1.3 Mitigation Measures

1 1 1 2

7.2

Soils and Land Suitability 7.2.1 Sources of Impact 7.2.2 Sensitive Receptors 7.2.3 Impact Assessment 7.2.4 Mitigation Measures

2 2 3 3 5

7.3

Surface and Ground Water 7.3.1 Sources of Impact 7.3.2 Sensitive Receptors 7.3.3 Impact Assessment 7.3.4 Mitigation Measures

5 5 6 6 9

7.4

Air Quality and Greenhouse Gas Emissions 7.4.1 Sources of Impact 7.4.2 Sensitive Receptors 7.4.3 Impact Assessment - Construction 7.4.4 Impact Assessment – Operation 7.4.5 Mitigation Measures 7.4.6 Positive Impacts

10 10 10 11 12 14 15

7.5

Noise and Vibration 7.5.1 Sources of Impact 7.5.2 Sensitive Receptors 7.5.3 Impact Assessment - Construction 7.5.4 Impact Assessment - Operation 7.5.5 Impact Assessment - Decommissioning 7.5.6 Mitigation Measures

16 16 16 16 19 21 23

7.6

Landscape and Visual Amenity 7.6.1 Sources of Impact 7.6.2 Sensitive Receptors 7.6.3 Impact Assessment 7.6.4 Mitigation Measures

23 23 23 23 26

7.7

Terrestrial and Aquatic Ecology 7.7.1 Sources of Impact 7.7.2 Sensitive Receptors

26 26 27

Chapter 7 – Impact Assessment Geothermal Plant Construction and Operation

Table of Contents 7.7.3 7.7.4 7.7.5 7.7.6

Impact Assessment - Construction Impact Assessment – Operations and Decommissioning Mitigation Measures Positive Impacts

27 28 29 29

7.8

Marine Ecology 7.8.1 Sources of Impact 7.8.2 Sensitive Receptors 7.8.3 Impact Assessment – Construction 7.8.4 Impact Assessment – Operation 7.8.5 Mitigation Measures

29 29 30 30 31 32

7.9

Social and Cultural Heritage 7.9.1 Sources of Impact 7.9.2 Sensitive Receptors 7.9.3 Impact Assessment 7.9.4 Mitigation Measures 7.9.5 Positive Impacts

32 32 33 33 36 37

7.10 Significant Environmental Impacts 7.10.1 Terrestrial Ecology 7.10.2 Marine Ecology

39 39 39

7.11 Significant Social Impacts

Chapter 7 – Impact Assessment Geothermal Plant Construction and Operation

Table of Contents TABLES Table 7-1 Project Components Disturbance Footprint Table 7-2 Construction Phase Combustion-Related GHG Emissions Table 7-3 Gaseous Emissions from Various Power Plants Table 7-4 Summary of Estimated GHG Emissions Table 7-5 Predicted Daytime Construction Noise Levels LAeq(1 hour) Table 7-6 Predicted Daytime Operational Noise Levels LAeq(1 hour) Table 7-7 Predicted Night-time Operational Noise Levels LAeq(8 hour) Table 7-8 Predicted Maximum Noise Levels from a Rupture Disk Blow - LAmax Table 7-9 Construction Phase – Vegetation Clearing Impacts Table 7-10 Summary of Positive Impacts Table 7-11 Significant Environmental Impacts Table 7-12 Significant Social and Cultural Impacts

3 12 13 14 16 19 19 20 27 38 40 41

FIGURES Figure 7-1 Figure 7-2 Figure 7-3 Figure 7-4 Figure 7-5 Figure 7-6 Figure 7-7

Conceptual cross section in north direction from airstrip Conceptual cross-section in northeast direction from airstrip Construction Noise – Prevailing Winds Prevailing Wind Operational Noise Viewshed Analysis – Location 1 Elevated View of Project Area – Site E (Operations) Observer Location 1 towards Project Area (West-south-west)

Chapter 7 – Impact Assessment Geothermal Plant Construction and Operation

9 9 18 22 24 25 26

IMPACT ASSESSMENT – GEOTHERMAL PLANT CONSTRUCTION AND OPERATION

This Chapter provides an impact assessment of the construction and operation of the geothermal plant and associated infrastructure. It describes the sources of the impacts relating to sensitive receptors, such as nearby residences and community areas. The impacts are then assessed according to residual risks following mitigation measures applied as stated in Chapter 8 of the ESMMP. Any positive impacts are stated from the Social Risk Register. Significant environmental and social impacts are also summarised from both the Environmental and Social Registers (ESIA Appendix C).

7.1

Climate, Seismic Activity and Topography

7.1.1 Sources of Impact The development of the Project has the potential to cause impacts from induced seismic activity, land subsidence (change in topography), and the potential effects of climate change causing sea level rise with indirect impacts to the Project. All these sources of impact are considered low risk when the stated mitigation measures are applied.

Sensitive Receptors Figure 5-26 (ESIA Chapter 5), illustrates the location of the Project activities in relation to the nearest potentially sensitive receptors that have been identified through analysis of aerial photography and site visits. These include the community villages surrounding the site; and agricultural land (mostly commonly referred to as gardens) on the northern slope of Quoin Hill which are extremely important providing for both food security and income generation to many families in the community. 7.1.2 Impact Assessment

Potential for Land Subsidence There are numerous examples from around the world which have recorded land subsidence occurring within a geothermal field. In New Zealand, the Wairakei and Ohaaki fields have experienced subsidence; with a depression or ‘bowl’ occurring at Wairakei some 1.5 km from the centre of the production field. However, a large dry-steam field in Italy (Larderello) has been operating for over 100 years with negligible subsidence. The large geothermal area of the Imperial Valley in the United States has nearly 500 MW of power generation, and the Cerro Prieto area in Mexico with over 700 MW, with both having not experienced significant subsidence (Narasimhan and Goyal, 1982). Geothermal reservoir production at much greater rates than re-injection can lead to surface subsidence. In the case of Wairakei, in the first few years of operation the residual brine was flowed to an adjacent river and not re-injected back into the reservoir. Over 50 years of operation, much of it without re-injection, the rates of subsidence at Wairakei reached nearly 500 mm/yr (DiPippo, 2008). The risk of land subsidence is reduced with the re-injection of fluid, provided that reservoir fluid pressure is also maintained. The re-injection of fluid into the reservoir is normally incorporated for geothermal projects from the start to minimise the risk of land subsidence and prolong the life of the reservoir (DiPippo, 2008). With the intent to re-inject all geothermal brine produced at Takara, the risk of land subsidence is considered to be low. Above all, with the relatively small size of the production rates for a 5 MW plant and the additional mitigation measures explained in Section 7.1.3, it is expected that reservoir pressures will be maintained and subsidence will not occur.

Chapter 7 – Impact Assessment Geothermal Plant Construction and Operation 1

Potential for Induced Seismicity Induced seismicity refers to an event where “a change in fluid pressure within a stressed rock formation leads to a movement in the fractured rocks” (page 399, DiPippo, 2008). This energy release can be felt or heard at surface by persons in the area as a seismic event. This can happen if fluids are injected underground at high pressure, however in normal hydrothermal settings this is not a significant risk as high pressures are not needed for reinjection of brines (DiPippo, 2008). In normal geothermal systems such as is expected at Takara, high pressures are not needed for the re-injection of the residual brines. High pressure injection of fluids has been used for the creation and maintenance of Enhanced Geothermal Systems (EGS) in various research projects around the world. However, given the expected reservoir rocks, depth and pressure at Takara this technology is not deemed necessary (DiPippo, 2008). Therefore the potential for an induced seismic event is a low risk as high pressure re-injection is not likely to be required at Takara and the mitigation measures such as measuring seismicity and analysing the reservoir will be implemented, as explained in Section 7.1.3. It is important to note that Vanuatu is situated within the ‘Ring of Fire’ area within tectonic plates that are moving. Therefore, seismic events are going to occur, with or without the Takara Project commencing.

Potential for Climate Change Impacts The risk of climate change directly impacting the Project during its operational life will most likely relate to potential sea level rise at Takara and subsequent inundation of the surrounding land and an increase in the volatility of extreme weather events. This is referring to the impact of climate change to the Project, and not the Project affecting climate change. As stated in the greenhouse gas sections of this ESIA, the Project will have a positive impact on the emissions of greenhouse gas. 7.1.3 Mitigation Measures The potential risk of land subsidence is mitigated through the key principle of the Project to re-inject all of the produced geothermal liquid produced, as well as continually monitoring of reservoir pressure to ensure it remains within acceptable operational limits. Induced seismicity will be managed through firstly the collection of baseline geological data during drilling to understand the formation and geothermal reservoir. Then an analysis of the geological and tectonic conditions will be undertaken of the site. The Project will then setup a seismic monitoring system prior to operations that will link with the Vanuatu Government monitoring system. There will also be a communication and education strategy developed to inform the community of the residual seismic risk. The risk to the Project from climate change can only be mitigated through consideration of the potential impacts during the detailed design phase. The design will consider the relative height level of the plant to projected rises in sea level and the ability of buildings and infrastructure to withstand more volatile weather events. This risk should also be assessed with the development of the Project Emergency Response Plan prior to operations.

7.2

Soils and Land Suitability

7.2.1 Sources of Impact The development of the Project will disturb and impact land associated with the construction phase of the Project, including impact from: 

Short-term loss of agricultural land resources;



Reduced resilience of impacted soil resources to disturbance;



Increased soil erosion hazard potential;



Reduced soil quality for use in rehabilitation works; and



Potential sources of land contamination from Project construction.

Chapter 7 – Impact Assessment Geothermal Plant Construction and Operation 2

The operational phase of the Project will not impact any additional land and therefore impacts will include: 

Long-term loss of agricultural land resources;



Potential sources of land contamination from geothermal plant and steam field operations in the event of loss of containment; and



Decommissioning and rehabilitation of disturbed land at the end of the Project life.

7.2.2 Sensitive Receptors The sensitive receptors are the same as for drilling activities and include the local Takara area and specifically on the northern slope of Quoin Hill, agriculture (mostly commonly referred to as gardens) is extremely important providing for both food security and income generation to many families in the community. 7.2.3 Impact Assessment

Impact on Soil Resources The disturbance footprint to land and soils for the construction and operation phase covers approximately 2.81 ha of land within the Study Area. If the seawater cooling option is not selected then the only new disturbance to soil resources is for the geothermal plant. The steamfield pipelines won’t cause a permanent disturbance and the production wells will be a relatively small area following rehabilitation. The power plant and auxiliary infrastructure to be located on what is presently poorly to weakly developed Rudosols and Tenosols. These soils are poor quality agricultural soils and are not currently used for community gardens. Table 7-1 provides a summary of Project components considered in this impact assessment section. Table 7-1 Project Components Disturbance Footprint Project Component

Details

Geothermal Power Plant Site

Footprint of power plant (0.76 ha). Includes land that may be used as an alternate site for Zone D exploration well. As footprints overlap, treated as a single unit.

0.76

Laydown Area (same area as for drilling)

Footprint of 60 m x 80 m (0.48 ha). The laydown area will be used during all phases of the Project (including drilling)

0.48

Seawater Pipeline (buried) (if required)

Pipeline corridor approximately 10 m in width during construction and easement rehabilitated during operation

1.57

2.81

100.0

Production/Operational Phase

Total

Chapter 7 – Impact Assessment Geothermal Plant Construction and Operation 3

Impact on Agricultural Productivity Potential

Permanent Impacts Of the 2.81 ha of land that will be impacted upon overall, 0.76 ha will be returned to a lower Land Capability class than its pre-development condition. This land is associated with the geothermal power plant and was assessed in the pre-development condition as Land Capability Class VI1. This class of land has severe limitations and is generally unsuited to cultivation and is limited to use as pasture, grassland or wildlife cover. The target post-development Land Capability class is Class VII. The Project’s decommissioning and rehabilitation strategy has been considered and the risk to agricultural soil and land resources by major Project components assessed. There are two impact types, temporary and permanent. Land temporarily impacted upon will be returned to pre-development condition. This includes land associated with all assessed components excluding the geothermal power plant. Therefore, there is no change in Land Capability classes for temporary impacts. Class VII land already has very severe limitations and is limited to restricted uses such as grazing, grassland or wildlife cover. Therefore, there is a predicted permanent reduction in Land Capability Class VI of 0.76 ha and a corresponding increase in Land Capability Class VII of 0.76 ha. It is expected that the power plant site following the Project life, will have decreased land capability as the construction activities will significantly disturb the shallow soil profile.

Temporary Impacts Land temporarily impacted upon, both directly and indirectly, will be returned to pre-development condition. This includes land associated with all assessed components, excluding the geothermal power plant. Therefore there is no change in Land Capability classes for temporary impacts.

Soil Erosion Hazard Assessment Soil erosion can be a significant hazard for construction sites where vegetative cover is disturbed and the soil is subject to the erosive agents of water and wind. Soil erosion and sedimentation occurs when soil particles detach and are transported offsite. This detachment is affected by a range of site specific factors. The main factors for the Study Area are inherent soil erodibility and steepness of terrain on Quoin Hill. The Study Area covers land that has a low to moderate soil erosion potential. Soil units to be impacted by the Project’s geothermal power plant and auxiliary infrastructure have weakly developed soil characteristics, which facilitate soil particle detachment and offsite transport with wind and rain. However, these sites are also on very flat land and situated on porous limestone geology leading to decreased rainfall runoff associated with overland flow from Quoin Hill.

Soil Stripping Resource Assessment The Project’s decommissioning and rehabilitation strategy commits to rehabilitating disturbed land to target Land Capability classes. These classes are predominately the same as the pre-development classes. To achieve rehabilitation goals, disturbed soil will be salvaged, stored and re-used during rehabilitation works. This section provides an assessment of the quality of soil resources for rehabilitation works, recommended stripping depths and recommendations to improve soil quality. The assessment has shown that the capability of the soil within the Study Area have a recommended topsoil stripping depth of 0.05 – 0.6 m, which varies between soil types. All soils associated with Ferrosols are constrained by high topsoil clay content. Soils with high clay content tend to form clods and inhibit seed germination when re-applied as topdressing material. The Ferrosols subsoil contains higher clay content and is not suitable for rehabilitation works. The soils will require amelioration with gypsum to break up the clay and reduce ‘cloddiness’. All soils associated with the coral reef limestone sequences (i.e. Rudosols and Tenosols) are limited by weak soil structure, shallowness of topsoil or presence of abundant coral fragments. The ESMMP details the maximum recommended stripping depths for each soil type and their corresponding major constraints.

1 Refer to Section 5.2, Soils and Land Capability Technical Report (SLRa, 2014) for description of land classes. Chapter 7 – Impact Assessment Geothermal Plant Construction and Operation 4

Potential for Land Contamination The Project will use fuel and chemicals (some of which are hazardous substances) during the exploration, production and operational phases. The Project’s ESIA Chapter 4 – Project Description, provides detail on the type, amount and their use during each phase. The Project will use hydrocarbons in the form of fuels and oils for construction and operations, vehicles, generators and turbine/transformer maintenance. Hazardous chemicals will be used throughout Project phases as well as the generation of electricity. The safe use and storage of these chemicals has been addressed in the Project’s ESIA Chapter 8 – ESMMP, whereby appropriate storage measures have been identified to limit the potential for land contamination from unintentional spills. Given the measures proposed to be employed, the risk of land contamination is considered to be low. 7.2.4 Mitigation Measures Table 8.2 of the ESMMP (Chapter 8), includes the soils and land suitability mitigation measures. Some of the key mitigation measures include: 

Prepare Site Specific Erosion and Sediment Control Plan (avoid disturbance of existing water courses);



Seeding of stockpiled soil to stabilise;



Following completion of the exploration activities, assess whether disturbed areas such as access tracks are required for long term operations; and



Rehabilitate all disturbed areas, including stockpiles, not required for long-term operations using sterile seed mixes.

7.3

Surface and Ground Water

7.3.1 Sources of Impact Aspects of the construction phase which may impact on surface water or groundwater resources include: 

Clearing of vegetation and earthworks to allow construction of a platform and foundations for the power plant and preparation of the steam field (including forming access roads, drilling pads and 10 m wide corridors for geothermal fluid pipes);



Excavations which may intercept groundwater for foundations and pavements;



Construction of the power plant and switchyard site;



Disposal of effluent from the septic tank system to a soakage trench;



Discharge of stormwater from cleared areas and from progressively developed areas;



Transport (on access tracks), storage (at the laydown area and construction areas), refuelling and usage of hazardous substances including fuel and plant chemicals; and



Abstraction of water from Epule River.

Aspects of the operational phase which could potentially impact on groundwater or surface waters include: 

Leakage or spill of geothermal fluids from imperfectly cemented wells;



Reinjection of cooled geothermal fluids to ground via an imperfectly cemented injection well;



Leakage or spill of geothermal fluids causing contamination of aquifers during the storage and disposal which are released during a process upset or maintenance;



Leakage or spill of condensate during transfer from steam field pipeline to injection well and spillage thereafter;

Chapter 7 – Impact Assessment Geothermal Plant Construction and Operation 5



Disposal of effluent from the septic tank system;



Storage of fuel, lubricants and chemicals within the plant, refuelling and refilling of chemicals;



Discharge of stormwater from roofs and hardstand areas; and



Abstraction of water from Epule River to potentially supply cooling towers for evaporative cooling process option (if selected).

7.3.2 Sensitive Receptors Sensitive environmental and social receptors include: 

Aquatic communities within temporary pools and saturated soils within the drainage areas of the Namot, Koloblob and Tanarua watercourses;



Ephemeral pools in the upper portion of the ephemeral watercourses where invertebrate and macro invertebrate habitat exists;



Lower portions of the ephemeral watercourses where fruit and food garden plants are grown;



Hot springs at Nasinu used for bathing;



Shallow groundwater bore at Beachcomber Resort used for filling the swimming pool;



Any other shallow groundwater wells down gradient of the site which may be used for washing or as a backup water supply; and



Wetland areas to the north of the ring road and to the east of the study area.

7.3.3 Impact Assessment The primary pathways of impact to the surface and groundwater resources were identified to be through accidental spills or leakage’s of geothermal brine or hazardous substances and changes to groundwater levels and temperature caused by normal operation.

Potential Erosion and Sedimentation Impacts The Ferrosols on the valley slopes to the south of the airstrip comprise deep clay soils which are likely to be stable whilst vegetated but erodible if cleared. Rudosols were identified to be thin around the cleared areas of the airstrip. If vegetation is removed in this area then the soils could be rapidly eroded, exposing the bare rock below. The removal of vegetation and earthworks during the construction may cause land erosion and watercourse erosion and an increase in sediment loads conveyed by surface water runoff to the ephemeral watercourses. The watercourses are ephemeral, with surface water runoff draining to ground primarily within the lower portions of watercourses after a heavy rainfall event. Given the temporary nature of flows and surface water in pools and drainage areas, an increase in suspended sediment concentration in flow and pools and sediment deposition in pools and drainage areas is unlikely to have a detrimental impact on plants, invertebrates and macro invertebrates which inhabit the pools and drainage areas.

Potential Spillage of Hazardous Substances An inventory of fuels, chemicals, hazardous substances and waste including details on quantity, use and storage is provided in Table 4-7 and Table 4-8 of the ESIA Chapter 4, Project Description. There is a potential for spillage or leakage of hazardous substances to land or water, during the production, storage or transport to and from the site. With the appropriate mitigation measures in place, the risk of a significant spill or leak is considered to be low.

Chapter 7 – Impact Assessment Geothermal Plant Construction and Operation 6

Spillage on the Airstrip or Zone E Spillage of hazardous substances could lead to contaminants leaching through the soil and contaminating shallow groundwater. A significant spill on the airstrip could lead to human health impacts, associated with skin contact, at the hot springs or beachcomber resort pool. Aquatic ecology in wetlands down gradient of the airstrip or Zone E could be impacted. Small spills of contaminants could be attenuated within the shallow aquifer, however potentially high flow rates and therefore fast contaminant migration rates could occur through sands and coralline deposits as described in Section 5.1.3 of the ESIA Chapter 5, Existing Environment. The potential risk of a spill of hazardous substances during construction and operation with mitigation controls in place are considered to be low.

Potential Impacts to Epule River The Epule River is a significant perennial watercourse. The proposed water abstraction location is situated within a tidally influenced portion of the river less than 1 km upstream of the river mouth. The proposed abstraction rates are low and are unlikely to result in changes of flow velocity or result in entrainment issues that will negatively impact aquatic wildlife within this reach of the river. Should future operations require significant volumes of water to be abstracted from a non â&#x20AC;&#x201C; tidally influenced portion of the river, then the impacts to the aquatic environment should be reassessed.

Potential Impacts of Excavations A direct pathway to groundwater exists from excavations below the groundwater table. Spillage of fuel or other hazardous substances within close proximity of excavations is likely to pose an increased contamination risk to groundwater. The use of appropriate storage, bunding and spill management techniques will minimise the potential for contaminating groundwater at excavation sites.

Potential for Release of Geothermal Fluid during Production and Reinjection The plant comprises a closed loop system, whereby geothermal brine is contained during production before being reinjected back into the geothermal reservoir without any geothermal releases to the environment. The geothermal fluid is produced (via the production well) and injected (via injection wells) through thermally insulated pipes to prevent release of geothermal fluids to groundwater aquifers. Therefore during normal operation, there will be no impact on groundwater chemistry within the shallow aquifers as a result of production and injection of geothermal fluid. All exploration and production wells will have three concentric steel casings which are cemented in place across the shallow groundwater aquifer. Therefore, only in the unlikely event of a catastrophic failure of the well casing within the shallow aquifer zone could geothermal fluids leak from the well into the shallow groundwater aquifers.

Potential for Release of Geothermal Fluids at the Steam Field Geothermal fluid condensate will be produced from the steam field. Condensate produced in pipelines is likely to be collected in a collection drain pot, where small quantities will either be reinjected or drained to ground, depending on the composition determined during exploration. Testing of the geothermal fluid during the well testing will determine whether the condensate will need to be piped for reinjection or is suitable in terms of its water quality to drain to ground. Spillage or leakage of brine and condensate discharged as a result of operational upsets in the steam field may impact on groundwater chemistry. Lined sumps will be located at various locations around the steam field and possibly incorporated within each production well pad site to store the brine and condensate discharged as a result of operational upsets. The sump contents will be pumped to injection wells for reinjection to the geothermal reservoir. Brine or condensate spills in the steam field are likely to occur infrequently, temporarily and be low in volume. However, a significant spillage or leakage of brine and condensate from the sump could impact on groundwater chemistry which could impact on the aquatic ecology of wetlands down gradient. Chapter 7 â&#x20AC;&#x201C; Impact Assessment Geothermal Plant Construction and Operation 7

Potential Impacts associated with Geothermal Fluid Production Although the conceptual development plan envisages full re-injection of produced liquids to maintain reservoir pressures, the pressure in the deep geothermal reservoir could decrease during production. Pressure drops are unlikely to occur during the initial well discharge tests due to the low flow rates and short durations. Large pressure drops in the geothermal reservoir have been observed in numerous geothermal fields. The impacts of these pressure drops have included dropping levels in shallow groundwater aquifers (Wairakei), increased groundwater temperatures resulting from steam heating (Wairakei) and declining flow rates from hot springs and geysers (Tongonan and Rotorua). However, it should be noted that the power stations at these projects were much larger than the 5 MWe proposed for Stage 1 of the Project and full re-injection was not undertaken at any of these projects. In contrast, the Takara Project plans to re-inject all produced geothermal liquids from the commencement of operations, with the intention of maintaining the reservoir at or near its original pressure. Recovery from adverse pressure effects on existing geothermal features has been demonstrated at Rotorua, where a change in bore management policy to raise pressure caused a significant recovery of geysers and springs (Bromley, 2003). A temporary, hot spring recovery effect was also observed at Tongonan in the Philippines (Hunt, 2001). This demonstrates that changes to geothermal features can potentially be reversible during a recovery period if pressure drops occur. Figure 7-1 and Figure 7-2 indicate that groundwater levels at the airstrip are approximately 1 m above water surface levels in the hot springs to the north and north east of the study area and approximately 1 to 1.5 m above water surface levels in the wetlands to the north and north east of the study area. However the distance between the proposed well pads and sensitive receptors such as the hot springs and wetlands is significant (greater than 400m) as shown in Figure 7-1 and Figure 7-2. Based on the observed shallow well recharge rates, it is expected that the permeability of the shallow limestone aquifer will be high. The high permeability of the shallow aquifer and the separation between the shallow aquifer and the geothermal reservoir are likely to reduce the potential for groundwater drawdown. The chemistry of the groundwater in the Project area suggests that seawater is being drawn into the geothermal system at depth, which (if hydraulic connectivity is good) may mitigate to some degree any potential reduction in piezometric water levels in the shallow groundwater aquifer, but potentially increase salinity. Given that the thermally heated groundwater at the airstrip and wetland areas downstream of the hot springs are already influenced by seawater mixing, minor increases in salinity are unlikely to detrimentally impact aquatic species.

Chapter 7 â&#x20AC;&#x201C; Impact Assessment Geothermal Plant Construction and Operation 8

Figure 7- 1 Conceptual cross section in north direction from airstrip

Figure 7-2 Conceptual cross-section in northeast direction from airstrip

Cessation of Production and Plugging of Wells during Decommissioning Cessation of production and plugging of the wells may lead to variations in pressure and temperature in the deep geothermal system. Recovery of pressures and temperatures may have a negative or positive impact on the shallow groundwater system and hot spring flows. As discussed above, recovery of pressure led to a recovery of spring flows at Rotorua (Bromley, 2003). Improper sealing of wells could enable geothermal fluids to migrate to shallow aquifers, which may impact on the geothermal resource and the quality of the affected aquifer. Impacts to shallow groundwater will be dependent on the elevation (in relation to shallow aquifers) and extent of any seal breaking. 7.3.4 Mitigation Measures During construction the use of erosion and sediment control measures will minimise the erosion of land and sedimentation within the watercourses. The clearing of vegetation and earthworks will also only be conducted in sequence when required, thereby reducing the area exposed and maximising areas being rehabilitated.

Chapter 7 â&#x20AC;&#x201C; Impact Assessment Geothermal Plant Construction and Operation 9

A reservoir management plan will be developed to ensure monitoring and responses are implemented throughout production in order to minimise the likelihood of pressure drops. This will facilitate management of any unforseen pressure drops which could lead to impacts such as variations in groundwater level and temperature which may adversely affect hot spring flows and temperature. The surface water and groundwater sampling plan within the ESMMP should be reviewed prior to the exploration phase in order to confirm the sampling locations, sampling frequency, analytes to be tested, and trigger values. The sampling methodology and management actions in response to any trigger value exceedances should also be set within the sampling plan. The sampling plan is detailed in Tables 8-4, 8-5 and 8-6 (ESIA Chapter 8, ESMMP). For the Epule River water intake pipe, the risk of fish entrainment could be reduced by installing an intake screen, horizontal intake rather than vertical to avoid bottom dwelling species and the intake velocity reduced where possible. The use of appropriate storage, bunding and spill management techniques will minimise the potential for contaminating surface water and groundwater resources, as per the ESMMP.

7.4

Air Quality and Greenhouse Gas Emissions

7.4.1 Sources of Impact Aspects of the construction phase which may impact air quality include: 

Formation (or expansion, if required) of production well pads, foundations for power plant and switchyard, construction of site access roads and steam lines leading to fugitive dust from cleaning and earthworks;



Transport vehicles, construction machinery, and electricity generators producing air emissions from diesel combustion; and



Production well testing and steam blow leading to air emissions of Non-Condensable Gases (NCGs) including H2S, CO2, and potential traces of Hg, As, NH3, F- (~1-3% of total combined steam).

Aspects of the operation phase which may impact air quality include: 

Power plant with continuous minor venting of NCGs including H2S, CO2, and potential traces of Hg, As, NH3, F-;



Production wells venting NCGs in upset conditions and steam lines venting NCGs in the unlikely event of pipeline failure;



Emergency generators, firewater pumps, and service vehicles producing air emissions from diesel combustion;



Positive impact due to potential off-setting of power demand at Port Vila diesel power station, with reductions in emissions of products of diesel combustion; and



Well Bleeding -- there is an operational scenario whereby one or more wells may be placed on “bleed” for periods of several hours or several days, typically to keep them warm whilst the power plant is shutdown for maintenance etc. This could occur during night time hours. Noise levels from this activity are anticipated to be lower than those from typical exploration and production drilling activities and consequently have not been quantitatively assessed.

7.4.2 Sensitive Receptors Figure 5-26 (ESIA Chapter 5), illustrates the location of the Project activities in relation to the nearest potentially sensitive receptors that have been identified through analysis of aerial photography and site visits. To the east of the study area are the villages of Takara, Nasinu, Takara Landing and Baofatu; to the south east is Onesua and to the west are Safaki and Maolapa. Individual residential receivers are also located along Efate Ring Road and adjacent to the abandoned airstrip. Other potential sensitive receivers include the Takara Church in Takara Village and the Beachcomber Resort located to the north-east of Takara. Chapter 7 – Impact Assessment Geothermal Plant Construction and Operation 10

7.4.3 Impact Assessment - Construction

Nuisance Dust As with drilling activities, the potential nuisance dust impacts associated with most construction activities can be screened out of further assessment due to the distance from the source to the receptors, and additional works on access tracks would be no greater than those associated with the exploration activities. The dust emission class for earthworks associated with construction of the power station would be considered ‘medium’ by the definition identified in Air Quality Technical Report (SLRc, 2014) (note that not all the criteria need to be met for a particular class): 

Total site area 2,500 m2 – 10,000 m2;



Soil type with large grain size;



Five to ten heavy earth moving vehicles active at any one time;



Formation of bunds 4-8 m in height (this criteria is unlikely to be met); and



Total material moved less than 20,000 - 100,000 tonne.

Based on the current preferred siting, the identified construction activities would occur at least 500 m from the nearest sensitive receptors and on this basis, fugitive dust emissions from the power station construction activities may reasonably be screened out of further detailed assessment and are assumed to have a negligible potential for nuisance impacts. In addition, should the power plant site need to be moved from the current preferred site, as long as it is more than 100 m from the nearest sensitive receptors, it will result in a ‘low’ risk of nuisance impacts. Appropriate dust mitigation measures are discussed in Section 7.4.5.

Combustion Gases As with exploration, combustion emissions associated with construction activities for the most part will be more than 250 m from sensitive receptors and will occur over a relatively short duration. Therefore, it is considered that the potential impact on people living and working in the surrounding area from combustion emissions will be negligible.

H2S and Odour Maximum 1-hour average H2S concentrations predicted for the production well testing activities are significantly higher than for the exploration wells due the higher geothermal fluid volumes assumed. Nonetheless the predicted worst case concentrations are still well below the WHO lowest observable adverse effect level (LOAEL) of 15,000 µg/m³, indicating that there is negligible risk of adverse health impacts. Based upon the assumptions presented in the report, the modelling does indicate that there is an increased potential for odour nuisance impacts, however during the exploration process, the chemistry of the geothermal fluid will be confirmed which will enable the potential for odours to be more accurately determined. In addition, experience from the exploration well testing activities (e.g. observations of local residents etc.) will inform the understanding of potential impacts during production well testing. As with exploration, the release of NCGs will be short term during production well testing and safety monitoring systems with warning alarms for high emissions of potentially hazardous gases will be incorporated as part of the Project set-up. The FIDOL assessment for odour impacts during exploration undertaken above, will equally apply to the construction phase, as there is likely to be H2S levels above the nuisance odour limit identified in the New Zealand Ambient Air Quality Guidelines (NZ AAQG), however the emissions will occur for short durations only during well testing.

Chapter 7 – Impact Assessment Geothermal Plant Construction and Operation 11

Mercury The maximum annual average mercury concentration predicted by the modelling at any sensitive receptor due to production well testing activities was 0.00022 µg/m³, based on an assumed brine composition. This is below the NZ AAQG for mercury (organic) of 0.13 µg/m³. Based on the modelling results, mercury emissions from the proposed production well activities are not considered to have the potential for any adverse impacts at any of the surrounding sensitive receptors. This will be confirmed after exploration drilling provides more accurate information on the presence or otherwise of mercury.

Greenhouse Gas Emissions – Production Drilling and Construction The total estimated fuel-related CO2-e emissions, as well as fuel use data and emission factors, for the construction phase of the Project are presented in Table 7-2. Production drilling was included in the technical report and has therefore been included here for completeness. The amount of diesel consumed during the construction phase has been estimated based on the following: 

Diesel use by the drilling rig, service vehicle etc. has been scaled up from the exploration usage estimate based on number of days of drilling (i.e. a factor of 2.25 = (4 wells x 60 days each) / (3 wells x 180 days each));



Diesel use by generators for the drilling activities have been scaled up from the exploration usage estimate based on number of days of drilling (i.e. a factor of 2.25 = (4 wells x 60 days each) / (3 wells x 180 days each)); and



Diesel associated with construction of the power plant has been estimated based on SLR’s experience with similar sized projects.

Emissions of CO2 from production well testing have been estimated based on the following: 

Up to 300 tonnes/hour geothermal fluid could be released per well;



Assumed 0.5% of the steam is NCGs and CO2 makes up 98%(wt) of the NCGs; and



Release occurs for 20 days.

This gives a total combined emission of 1,411 tonnes CO2 for two production wells. Table 7-2 Construction Phase Combustion-Related GHG Emissions Source

Estimated Fuel Use (kL)

Emission Factor * (tonnes/kL fuel) CO2

CH4

Total Emissions N2O

(tonnes CO2-e)

Drilling rig, service vehicles and rental trucks

810

74,100

3.9

2,357

Generators

180

74,100

3.0

0.6

524

Power plant construction and commissioning

4,000

74,100

3.9

11,640

TOTAL

4,990

14,521

Sourced from (IPCC 2006)

7.4.4 Impact Assessment – Operation As noted in the IFC’s Environmental, Health, and Safety Guidelines for Geothermal Power Generation, geothermal power plant emissions are negligible compared to those of fossil fuel combustion-based power plants. Binary technologies can have close to zero emissions of hydrogen sulphide (H2S) or mercury (Hg) to atmosphere because of reinjection of all geothermal liquid.

Chapter 7 – Impact Assessment Geothermal Plant Construction and Operation 12

Combustion Gases Combustion emissions from the operation of the power plant will be restricted to occasional use equipment such as emergency generators, firewater pumps, and maintenance vehicles. Therefore, it is considered that the potential impact on people living and working in the surrounding area from combustion emissions will be negligible. In Port Vila, there is potential for this Project to result in a reduction in the electricity generation using diesel generators. To assess the potential reduction in air quality impacts at sensitive receptors surrounding the power station, a high level study was performed based on an assumed 5 MW reduction in power generation from the diesel generators. The results indicate that if implementation of the proposed Project is able to reduce electricity generation through diesel power plant at Port Vila by this level, that significant improvements in local ambient air quality levels may be achieved. The benefits of the binary process in terms of a reduced potential for air quality impacts compared with carbon based generation is illustrated in Table 7-3 (DiPippo, 2008 and USEPA AP 42, 1996). Table 7-3 Gaseous Emissions from Various Power Plants Plant Type

CO2 (kg/MWh)

SO2 (kg/MWh)

Coal-fired steam plant

994

4.71

1.955

1.012

Oil-fired steam plant

758

5.44

1.814

N.A.

Gas turbine

550

0.100

1.343

0.0635

705

0.25

27.2

0.159

Diesel generator

NOX (kg/MWh)

14.6

Particulates (kg/MWh)

0.43

Hydrothermal Flash-steam The Geysers dry-stream Pumped closed-loop binary Proposed Takara Project

40.3

0.0001

0 3

0.00046

0 3

Negligible

300

Negligible

SOURCE: DiPippo, 2008 and USEPA AP42, 1996 1. Based on a 500 ppm sulphur content of diesel 2. Uncontrolled emission factor 3. From H2S abatement system

Note that the operational carbon dioxide emissions for the Project are based on assumed concentration of NGCs and a proposed power plant technology option. This figure will be updated following exploration drilling and well testing.

H2S and Odour In binary geothermal plants, the release of NCGs is minimised, but may still occur. Based on the modelling results presented in Air Quality Technical Report (SLRc, 2014), the proposed power plant operation is unlikely to cause any adverse health impacts or odour nuisance due to elevated H2S concentrations at any of the surrounding sensitive receptors. The results indicate that the highest maximum 1-hour ground level H2S concentration was predicted to be 6.3 µg/m³ at the Airstrip Residence. This is below the NZ Ministry for the Environment (MfE) H2S guideline for protection against potential odour nuisance impacts of 7 µg/m3 and significantly below the WHO LOAEL of 15,000 µg/m³.

Chapter 7 – Impact Assessment Geothermal Plant Construction and Operation 13

The Project will be able to confirm the assumptions used in this assessment only after exploration drilling has been completed. If it is discovered that there is potential for these emissions, when propagated to sensitive receiver locations, to result in unacceptable impacts, then options exist to address this. These include pressurisation of brine production to keep gasses dissolved, scrubbing of H2S from vent streams, and capture/compression of the gasses for reinjection. These options can significantly affect the economic operation of the power plant and should not be mandated or recommended until the scale of the issue is assessed. It is proposed that a ground level concentration of 7 µg/m³ H2S (1-hour average) be used as a guideline for sensitive receptor locations. There is potential for elevated H2S emissions during upset conditions such as releases from pressure relief valves in the power plant, venting from the production wells or releases as a result of pipeline failure. These emissions would be infrequent and occur for only short periods, and while they may result in detectable odours downwind, concentrations would not have the potential to exceed healthbased criteria. Any impacts would be anticipated to be less than that associated with production well testing.

Mercury As for H2S, under normal operating conditions emissions of mercury from the power plant will be minimal and there would be no potential for off-site impacts. Should elevated mercury emissions occur as a result of upset conditions, such releases would be infrequent and occur for only short periods, and would not have the potential to exceed the annual average health-based air quality criterion. Greenhouse Gas Emissions – Construction and Operations Annual operational emissions have been estimated based on the following: 

Brine flow of 85 kg/s; and



Assumed 0.5% of the steam is NCGs and CO2 makes up 98% (wt) of the NCGs.

This gives a GHG emission load of 1.5 tonnes/hour CO2, which is equivalent to 13,134 tonnes/annum. Table 7-4 Summary of Estimated GHG Emissions Project Phase

Duration

Emissions from Diesel Combustion (tonnes CO2-e)

Emissions from Venting of NCGs (tonnes CO2-e)

Total Emissions (tonnes CO2-e)

Exploration drilling

6 - 12 months

1,278

470

1,748

Construction and production drilling

2 years

14,521

1,411

15,921

negligible

13,134 (annually)

Operational Phase 7.4.5 Mitigation Measures

Air Quality Although the unmitigated impacts of nuisance dust are not considered to be significant in the wider context of the Project, there could be individual residences located at closer proximity to construction sites than assumed by the time construction begins, as well as the local use of near-by walking tracks with access to market gardens and recreational areas. The Project will apply good working practices to minimise potential generation and propagation of dust through a range of suitable mitigation techniques such as water suppression (as required), covering or enclosed storage of aggregates (including topsoil and sand) where practical, and limiting dust generation activities in high winds or specific wind directions as required. Local residents will be consulted as appropriate, particularly prior to well testing procedures to inform them of potential odour emissions and the expected duration of such activities. Chapter 7 – Impact Assessment Geothermal Plant Construction and Operation 14

As part of good working practice, the Construction Manager will complete routine checks on dust generation from construction activities, and confirm if water suppression is required. In addition a mechanism for complaints regarding dust will be available to the community and due regard given to any issues raised. Specific monitoring requirements around emissions of H2S and other minor pollutants such as Hg, As, NH3, and F, may be required during operation, however this cannot be confirmed until the geothermal reservoir chemistry is known and the final plant engineering design is undertaken.

Greenhouse Gases The major contributor to GHG emissions during the construction phase of the Project is diesel combustion from mobile and fixed equipment. As part of the wider Project, reduction in vehicle fuel use can be attained by managing material requirements and deliveries, and coordinating material deliveries with shift changes. Generator emissions can be reduced by employing the use of renewable options such as solar water heating and photovoltaic lighting where practical. The use of binary technology for the power plant will reduce emissions of CO2 to minimal levels for the operational phase of the Project. GHG emissions associated with diesel combustion during the operational phase will also be minimal. For example, generation from diesel generators is reported to produce approximately 800 kgCO2e/MWh (CDM, 2005). Based on assumptions used in this assessment, emissions from the Project are estimated to be significantly lower than this at approximately 300 kgCO2-e/MWh. The assumptions used to calculate this estimated emission load would be confirmed during the exploration phase. 7.4.6 Positive Impacts There is potential for this Project to result in a reduction in the electricity generation in Port Vila using diesel generators. To assess the potential reduction in air quality impacts at sensitive receptors surrounding the power station, a preliminary study was performed based on an assumed 5 MW reduction in power generation from the diesel generators. The results indicate that if implementation of the proposed Project is able to reduce electricity generation through diesel power plant at Port Vila by this level, that significant improvements in local ambient air quality levels may be achieved. Overall the Project will reduce the carbon intensity of electricity generation in Vanuatu and has the potential to reduce GHG emissions from the existing electricity network by 35,040 tonnes CO2/annum (based on Stage 1, i.e. 5 MW). The IPCC Special Report on Renewable Energy Sources and Climate Change Mitigation (2011) notes that “overall, geothermal technologies are environmentally advantageous because there is no combustion process emitting carbon dioxide (CO2)”, and indeed, the geothermal power plant if developed, could reduce the requirement for diesel-fuelled electricity generation at Port Vila, resulting in reduced CO2-e emissions per MWh of generated electricity. Alternatively, if Vanuatu’s electricity demand grows and emissions from the diesel generators do not decrease, the Project would still meet the increased demand without the additional GHG emissions that would occur if the increased demand was meet through additional diesel generators. On this basis, once the Project is operational, the GHG emissions associated with the exploration, production drilling and construction phases could potentially be off-set within six months compared to diesel generation. With negligible operational GHG emissions associated with the Project, there would be an ongoing benefit for Vanuatu’s GHG emissions into the future, which would increase after the implementation of Stage 2.

Chapter 7 – Impact Assessment Geothermal Plant Construction and Operation 15

7.5

Noise and Vibration

7.5.1 Sources of Impact Construction of the geothermal power station will involve the following: 

Formation of power plant and switchyard site access roads;



Excavations for foundations and pavements, piling, surfacing pavements;



Laying concrete foundations for buildings, cooling towers or fin-fan coolers (if required), power switchyard equipment, pipelines and headers, separator stations and other associated equipment; and



Construction of buildings and installation of the plant and equipment for power generation.

Construction of the geothermal power plant will be restricted to day light hours. The geothermal power plant will operate 24 hours per day. It is noted that the design of the power plant will not be finalised until after the exploration phase has confirmed the viability of the geothermal resource. Therefore, this assessment has provided a preliminary assessment of potential noise impacts of the operational phase of the power plant based upon an assumed air-cooled power plant design. The likely noise generating items of plant and equipment were provided by Geodynamics for the purpose of the noise modelling. 7.5.2 Sensitive Receptors Figure 7- 3 illustrates the location of the Project infrastructure in relation to the nearest noise sensitive receptors. Relevant noise sensitive receptors have been identified through analysis of aerial photography and site visits. To the east of the study area are the villages of Takara, Nasinu, Takara Landing and Baofatu; to the south east is Onesua and to the west are Safaki and Maolapa. Individual residential receivers are also located along Efate Ring Road and adjacent to the abandoned airstrip. Other noise sensitive receivers include the Takara Church in Takara Village and the Beachcomber Resort located to the north-east of Takara. 7.5.3 Impact Assessment - Construction Noise level predictions to the nearest potentially affected sensitive receptors are presented in Table 7-5 for the proposed daytime construction of the power station. Table 7-5 Predicted Daytime Construction Noise Levels LAeq(1 hour) Location

Period

Predicted Noise Level LAeq(1hour) (dBA) Calm

Airstrip residence

Day

Prevailing Winds

Takara

Day

Takara Landing

Day

Takara South

Day

Baofatu

Day

Nasinu

Day

Maolapa

Day

Safaki

Day

Onesua

Day

<20

Takara Church

Day

Beachcomber Resort

Day

Chapter 7 – Impact Assessment Geothermal Plant Construction and Operation 16

Project Specific Noise Criteria (LAeq,1hour)

As presented in Table 7-5, construction noise levels are predicted to be below the Project specific noise goal for the construction of the geothermal power plant during the day. A comparison of the predicted construction noise levels with the existing ambient noise levels indicates that construction noise levels are generally less than the measured, existing LAeq noise levels during the daytime. Noise contours for the prevailing wind atmospheric conditions for the construction works are presented in Figure 7-8. Construction activities will be undertaken during the daylight hours only, therefore there will be no noise impacts from construction activities at night.

Chapter 7 â&#x20AC;&#x201C; Impact Assessment Geothermal Plant Construction and Operation 17

Figure 7- 3 Construction Noise – Prevailing Winds

Chapter 7 – Impact Assessment Geothermal Plant Construction and Operation 18

7.5.4 Impact Assessment - Operation Noise level predictions to the nearest potentially affected residential receivers are presented in Table 7-6 for the proposed daytime operation of the geothermal power plant and Table 7-7 for night-time operation of the geothermal power plant. Table 7-6 Predicted Daytime Operational Noise Levels LAeq(1 hour) Location

Period

Predicted Noise Level LAeq(1hour) (dBA) Calm

Prevailing Winds

Airstrip residence

Day

Takara

Day

Takara Landing

Day

Takara South

Day

Baofatu

Day

Nasinu

Day

Maolapa

Day

Safaki

Day

Onesua

Day

<20

Takara Church

Day

Beachcomber Resort

Day

Project Specific Noise Criteria (LAeq,1hour)

Table 7-7 Predicted Night-time Operational Noise Levels LAeq(8 hour) Location

Period

Predicted Noise Level LAeq(8hour) (dBA) Calm

Prevailing Winds

Airstrip residence

Night

Takara

Night

Takara Landing

Night

Takara South

Night

Baofatu

Night

Nasinu

Night

Maolapa

Night

Safaki

Night

Onesua

Night

<20

Takara Church

Night

Beachcomber Resort

Night

Project Specific Noise Criteria (LAeq,8hour)

As presented in Table 7-6, LAeq(1hour) noise levels are predicted to be below the Project specific noise levels for the operation of the geothermal power plant during the daytime under prevailing wind and calm atmospheric conditions. Night-time geothermal power plant operational noise levels, presented in Table 7-7, indicate a predicted isolated exceedance of the WHO sleep disturbance trigger value at the Airstrip receiver location under calm atmospheric conditions and an isolated exceedance under prevailing (i.e. from the south-east) wind at Safaki.

Chapter 7 â&#x20AC;&#x201C; Impact Assessment Geothermal Plant Construction and Operation 19

The predicted marginal 4 dBA exceedances of the night-time sleep disturbance criterion at the Airstrip and Safaki receptor locations may potentially result in sleep disturbance effects. Appropriate noise management recommendations are presented in Section 7.5.6. Noise contours for the prevailing wind atmospheric conditions for the geothermal power plant operations are presented in Figure 7- 4. The meteorological parameters for this modelling assumed a wind speed of 3 m/s and direction from the south-east. Predicted LAmax noise levels due to a rupture disk failure during the operational phase of the Project are presented in Table 7-8 together with the sleep disturbance noise goals. Table 7-8 Predicted Maximum Noise Levels from a Rupture Disk Blow - LAmax Predicted Maximum Noise Level LAmax (dBA)

Location

Airstrip residence

Takara

Takara Landing

Takara South

Baofatu

Nasinu

Maolapa

Safaki

Onesua

Takara Church

Beachcomber Resort

Sleep Disturbance Noise Goal LAmax (dBA)

As presented in Table 7-8, noise levels due to a rupture disk blow are predicted to be above the sleep disturbance noise goal at all of the nearest receiver locations (except Onesue). It is noted that a rupture disk failure is a rare event, designed to occur as a safety precaution in extreme conditions. It is also noted that existing maximum noise levels (refer Table 7-8) also regularly exceed the sleep disturbance noise goals and are significantly above those predicted from the Project, as the rupture disk blow is a significant noise event with a short duration. Noise modelling has indicated that operational noise levels associated with the proposed power station will be below the Project specific noise criteria at the nearest noise sensitive receivers during the daytime period under calm and prevailing wind atmospheric conditions. Night-time geothermal power plant operational noise levels, presented in Table 7-7 indicate a predicted isolated exceedance of the WHO sleep disturbance criterion at the Airstrip receptor location under calm atmospheric conditions and an isolated exceedance under prevailing (i.e. from the southeast) wind at Safaki. Of the predicted night-time criterion exceedances, it is noted that the predicted minor 4 dBA exceedances of the night-time sleep disturbance criterion at the Airstrip and Safaki receptor locations may result in sleep disturbance effects. At this stage, the noise impact assessment has considered noise emissions assuming that the plant design will be air cooled. Therefore the study does not consider noise emissions from sea water pumps. In the event that the plant design elects to utilise seawater cooling this will be assessed at a later stage, if necessary. LAmax noise levels associated with well testing and venting during the exploration and production phases of the Project are predicted to be below the relevant sleep disturbance noise goal at all receptors with the exception of the Airstrip residence where a minor 4 dBA exceedance is predicted.

Chapter 7 â&#x20AC;&#x201C; Impact Assessment Geothermal Plant Construction and Operation 20

Noise levels due to a rupture disk blow are predicted to be above the sleep disturbance noise goal at all of the nearby receptor locations. It is noted that a rupture disk failure is a rare event, designed to occur as a safety precaution in extreme conditions. While noise levels associated with the Project are generally below the EHS Guideline noise limits, recommendations have been made with regard to good international industry practice (GIIP) noise control measures to minimise noise emissions from all phases of the Project. Furthermore, where exceedances of the Project specific noise criteria have been predicted, appropriate noise mitigation and management strategies have been recommended in the ESMMP. 7.5.5 Impact Assessment - Decommissioning Activities associated with the decommissioning of the geothermal power plant are likely to be similar to those associated with its construction. Therefore, noise levels are likely to be similar to those presented in Table 7-5. Noise emissions are predicted to be below the Project specific noise levels for the decommissioning of the geothermal power plant during the daytime period under prevailing wind and calm atmospheric conditions. Decommissioning activities are planned for daylight hours only.

Chapter 7 â&#x20AC;&#x201C; Impact Assessment Geothermal Plant Construction and Operation 21

Figure 7- 4 Prevailing Wind Operational Noise

Chapter 7 â&#x20AC;&#x201C; Impact Assessment Geothermal Plant Construction and Operation 22

7.5.6 Mitigation Measures The EHS Guidelines contains general guidance with regard to GIIP for noise prevention and control. While noise levels associated with the Project are generally below the EHS Guideline noise limits, it is recommended that where appropriate GIIP noise management techniques should be considered for the proposed Project. Some recommended noise management strategies to consider in areas close to community areas include: 



Avoiding or minimizing Project transportation through community areas, particularly during sensitive periods (e.g. night-time); and



Advising the community prior to known higher noise events such as well testing, so that sudden loud noises do not cause alarm.

7.6

Landscape and Visual Amenity

7.6.1 Sources of Impact The main activities that may cause landscape and visual impact as a result of the construction and operation of the geothermal power plant are: 

Vegetation clearing (minor due to majority of clearing having been undertaken for exploration and production drilling);



Minor earthworks for infrastructure footings, road and track upgrades etc.;



Placing of permanent structures for electricity generation;



Possible inclusion of cooling towers which may create condensation plumes;



Security fencing;



Minimal lighting for safety aspects of operation; and



Generation of minor steam plumes from the plant.

7.6.2 Sensitive Receptors Figure 5-26 (ESIA Chapter 5), illustrates the location of the Project activities in relation to the nearest potentially sensitive receptors that have been identified through analysis of aerial photography and site visits. Observer locations (1 – 4), are shown in Figure 6-2 (ESIA Chapter 6), for the viewshed analysis to the Project site. 7.6.3 Impact Assessment

Observer Location 1 This location is situated on the Ring Road at the Corner Village area, opposite the entrance to the Beachcomber Resort looking west towards the Project site. This location is low lying as demonstrated in the elevation profile (see Figure 7-5). The bare earth viewshed shows limited visible ground surface in the surrounds. From this location the geothermal power plant and steamfield pipeline is obscured by vegetation and landform.

Chapter 7 – Impact Assessment Geothermal Plant Construction and Operation 23

Figure 7-5 Viewshed Analysis – Location 1

Chapter 7 – Impact Assessment Geothermal Plant Construction and Operation 24

Steam will be generated and vented during normal geothermal plant operation. The geothermal plant will have minor flow of non-condensable gases being vented to atmosphere from the plant under normal operating conditions. This steam venting may be seen above the height of the fin-fan coolers (6 m). The presence of steam being visible in the Takara area will be a permanent but minor change to the landscape for the duration of the Project. If cooling towers selected as an option for the plant, a condensation plume would be generated at a greater volume and higher into the atmosphere. Figure 7-6 shows an elevated View (50 metres above sea level (masl)), adjacent to Site E toward the Project area showing operation infrastructure with the geothermal plant (yellow) and steam field pipeline (grey). The whole geothermal plant is shown as 6 m, where only the fin-fan coolers would be that height. The steam field pipeline is shown buried under the Ring Road and above ground back to the plant and to the wells, although this could change during detailed design. Note that this 50m view would only ever be realised by a light aircraft or similar, as there are no landforms capable of providing this perspective and the local villages and road are at much lower elevations. Figure 7-6 Elevated View of Project Area â&#x20AC;&#x201C; Site E (Operations)

Figure 7-7 shows the ground level view from Observer Location 1 west-south-west of the project site. As the previous viewshed analysis shows, from this location the geothermal plant would not be visible, unless cooling towers were used, in which case a rising steam condensation may be seen.

Chapter 7 â&#x20AC;&#x201C; Impact Assessment Geothermal Plant Construction and Operation 25

Figure 7-7 Observer Location 1 towards Project Area (West-south-west)

7.6.4 Mitigation Measures A number of mitigation measures have been identified in order to minimise disturbance to visual amenity. The most significant and easily implementable of which is to minimise vegetation clearance, thereby maintaining existing natural visual screening. In particular, siting the main access road to the site closer to the Ring Road corner village will retain the shielding vegetation surrounding the drill sites, laydown area and proposed geothermal plant site. The other key mitigation is the communication and education strategy to inform community of activities that may cause a visual amenity nuisance. For example, a process upset may cause an brief increase in steam emission which in some cases could be communicated to the community beforehand to ensure they are aware of the activity and understand that there is no safety risk.

7.7

Terrestrial and Aquatic Ecology

7.7.1 Sources of Impact The main activities that may be a source of impact to the terrestrial ecology of the area as a result of the construction and operation of the geothermal power plant are: 

Habitat disturbance from vegetation clearing for steamfield pipeline, geothermal plant and potential seawater cooling pipeline, with disturbance to and loss of secondary forest on the slopes of Quoin Hill and grassland to airstrip area;



Temporary disturbance to and permanent loss of gardens, which provide a source of food for the local community, associated with clearing for steamfield pipeline;



Accidental pollution from geothermal brine mixing with local groundwater resources, thereby affecting local freshwater wetland systems (which appear to be groundwater connected);



Disturbance or entrainment of freshwater fish and other aquatic fauna in the Epule River, during pumping of freshwater from the river;



Noise affecting the life cycles of local fauna; and



Traffic related fauna injuries. Chapter 7 – Impact Assessment Geothermal Plant Construction and Operation 26

7.7.2 Sensitive Receptors The primary terrestrial sensitive receptors which are considered to be vulnerable from the proposed activities are listed species of flora and fauna, and areas of vegetation that act as habitat for these species. These are explained in further in Section 6.6.2 of (ESIA Chapter 6). 7.7.3 Impact Assessment - Construction

Flora Impacts on flora species and vegetation will occur during the construction phase as a result of clearing associated with construction of the power plant, fresh water pipeline, steam pipeline network and seawater pipeline (if seawater cooling is chosen). Most of the vegetation clearing will occur within the flat and modified area of the airstrip, with the majority of vegetation to be affected comprising Grassland and Regenerating Shrub Forest. The areas of vegetation types to be disturbed or removed during construction are listed in Table 7-9. These calculations assume that seawater cooling will be the preferred cooling option for the power plant. However, should air cooling be adopted, the seawater pipeline would not be required and the area of Seashore Forest to be cleared would reduce to zero, with the area of Grassland to be cleared reducing by 0.8 ha. Table 7-9 Construction Phase – Vegetation Clearing Impacts Vegetation type

Area (ha)

Grassland and Regenerating Shrubland Forest

3.01

Secondary Forest and Gardens

0.97

Seashore Forest (if seawater pipeline required)

0.52

Primary Forest

0.00

Total

4.5

Fauna Impacts on fauna species and their habitat will occur during the construction phase in association with construction of the power plant, drilling seawater pipeline, geothermal fluid pipeline network and seawater pipeline (if seawater cooling is chosen). Most of the clearing will occur within the generally flat and modified area of the airstrip, with the majority of habitat to be affected comprising Grassland and Regenerating Shrub Forest (Table 7-9). This habitat type provides foraging and shelter resources for: 

Small passerine birds (e.g. Silver-eye, Long-tailed Triller, Melanesian Flycatcher); and



Foraging microchiropteran bats and (to a lesser degree) flying foxes.

These fauna types are all generally mobile and dispersive and forage widely over the locality. The regional viability of populations will not be significantly adversely affected by the loss of a relatively small area of foraging habitat associated with the construction phase works. However, pre-clearing surveys would be required prior to any clearing works, to avoid (where possible) local direct impacts through the removal of nest or roost sites. The loss of around three hectares of grassland and shrubland habitat associated with establishment of the power plant (Table 7-9), is not likely to have a measurable effect on local fauna populations or their life cycles. The Vanuatu White-eye was observed in this habitat and is listed as ‘least concern’ on the IUCN Red List. However, this species is common and widespread in Vanuatu and is not reliant solely on this habitat type or the Project area. The impact of the power plant and associated infrastructure on this species, and other small passerine birds, in this area is likely to be negligible.

Chapter 7 – Impact Assessment Geothermal Plant Construction and Operation 27

The presence of construction machinery and plant, and light vehicles within the construction site and travelling to and from the site will increase the risk of injuries or mortalities for local fauna, particularly birds, and ground mammals. However, this risk is considered to be low, as the species that could be affected are all highly mobile and would readily disperse into adjoining habitats when startled by vehicles. Also there are no slow moving ground dwelling species, sedentary or burrowing species within the study area that are at risk of vehicle collision. Nonetheless, the risk of animal/vehicle collisions, especially during peak periods of vehicle movement, cannot be ruled out.

Aquatic Construction of the power plant and ancillary infrastructure, by its nature and location, is not likely to have any measurable effect on aquatic or riparian ecosystems. The construction of a sea water supply pipeline from the mouth of the Epule River will occur along the Ring Road within the existing drainage line with minimal disturbance to aquatic environments. 7.7.4 Impact Assessment – Operations and Decommissioning Of the operational activities, effluent discharge, potential well blowouts, pipeline failures and water extraction could affect local flora and fauna. The following potential impacts have been identified: 

Well blowouts and discharge of geothermal fluid into local groundwater resources, thereby affecting local freshwater wetland systems (which appear to be groundwater connected);



Impacts on local freshwater fish and other aquatic fauna in the Epule River, during pumping of freshwater from the river;



Noise affecting the life cycles of local fauna; and



Traffic related fauna injuries, as noted above.

The risk of discharge of geothermal fluid is considered to be low risk with mitigation controls in place to reduce the residual risk to an acceptable level. The impacts to the Epule River are likely to be negligible given the proposed abstraction rates are low and are unlikely to influence the aquatic environment within this reach of the river. Should future operations require significant volumes of water to be abstracted from a non – tidally influenced portion of the river, then the impacts to the aquatic environment will be reassessed. The site activities associated with decommissioning are similar to those required for construction. However, impacts on locally occurring flora and fauna are predicted to be minimal, mainly because decommissioning activities will occur within areas already cleared, disturbed and/or built up over the life of the Project. Notwithstanding, there would remain some potential for residual adverse effects on local biota, as follows: 

Accidental discharge of drilling fluids into local surface or groundwater resources during plugging of wells and underground pipelines, thereby affecting local freshwater wetland systems;



Noise affecting the life cycles of local fauna, as noted in Section 7.5; and



Traffic related fauna injuries, as noted in Section 7.9 .

Decommissioning activities within and around the power plant and within the flat and modified areas of the airstrip would have minor to negligible impacts on local biota and their habitats. Construction traffic and activities in the vicinity of the production drill pads at Zones A and B could have minor detrimental effects on flora and fauna in the event that small areas of additional vegetation clearing area are required, and through noise disturbance to local fauna residing on the site and potential vehicle collisions. However, the main effect of the decommissioning phase in this area will be the rehabilitation of drill pads and access tracks (and areas disturbed by the steam pipe network), with suitably established targets and performance indicators. The aim of the rehabilitation would be to re-establish gardens and native forest vegetation in these areas, whilst simultaneously stabilising soils to avoid surface water erosion of topsoil.

Chapter 7 – Impact Assessment Geothermal Plant Construction and Operation 28

Overall, taking into consideration the predicted nature and condition of the study area at the end of the Project life, decommissioning activities are likely to have minor to negligible adverse effects on local flora and fauna (and their habitats), including species of conservation and cultural significance, and on ecosystem function in general. The impacts from operation of the geothermal plant are likely to be low based on the noise emissions during normal plant operation and no new areas of vegetation clearing are expected. The traffic volume will reduce significantly as only a small workforce will work during daylight hours with some site delivery. 7.7.5 Mitigation Measures A range of impact mitigation measures have been identified in order to avoid or minimise adverse impacts on local flora and fauna, as outlined below: 

Pre-clearing surveys for the threatened Vanuatu Megapode (and its nests), as well as habitat trees, with ongoing monitoring of Megapode nest sites prior to construction;



Advise Project staff during induction about the Megapode species that should be noted and avoided if encountered;



Identification of rare or significant plant species, through pre-clearing surveys;



Following completion of construction, assess during design phase whether disturbed areas such as access tracks are required for operations;



Weed management during and after construction;



Seed and propagule collection, for forest trees and culturally significant plant species, including the potential establishment of a temporary plant nursery to be maintained by interested locals (possible part of Community Benefits Program);



If seawater pipeline option required, review pipeline route to avoid sensitive sites;



Construction activities only during daylight hours;



Vehicles to travel along designated access tracks and avoid disturbing new areas;



Erosion controls as per ESMMP to prevent sedimentation of watercourses during construction; and



Site rehabilitation and revegetation as required during and post construction.

7.7.6 Positive Impacts Positive impacts associated with the terrestrial ecology may occur with education of the significance of the endangered Megapode with the local community. This may lead to reduced collection of nest eggs and a focus on assisting with the conservation of the species in the Quoin Hill and Takara areas.

7.8

Marine Ecology

7.8.1 Sources of Impact Activities that have potential to impact on the marine environment during the construction and operation phase include: 

The potential development or expansion of barge landing facilities and associated vessel traffic hazards including vessels running aground and/or anchoring while transporting equipment;



The installation of intake and discharge seawater cooling pipes (if required);



Water and contaminant discharges or spills from land-based operations;

Chapter 7 – Impact Assessment Geothermal Plant Construction and Operation 29



Earthworks exposing bare soil, leading to increased sediment deposition in the marine environment; and



Potential discharge of seawater cooling water from the geothermal plant (if required).

7.8.2 Sensitive Receptors Marine ecology transect and quadrat habitat surveys concluded that five distinct marine habitat types are represented in the investigation area (see Figure 5.5, Chapter 5), including: 

Sand/coral rock intertidal zone;



Hard coral dominated reef flats;



Hard coral dominated reef flat/sea grass complex;



Soft coral dominated outer fringing reef; and



Near shore coastal habitats.

7.8.3 Impact Assessment – Construction Potential effects of construction activities include: 

Increased sedimentation and turbidity due to runoff from construction works of the seawater pipeline which can have harmful effects on seagrass and reef habitats in smothering of corals and seagrass beds, increased levels of disease, and/or coral bleaching (Note however that the current proposal is to install the pipeline inside the existing boating channel, assuming that this is possible and assuming that sea water cooling is required);



Oil and chemicals washed in to the marine environment can cause a decrease in water quality and resulting toxicity to marine organisms and contamination of marine food resources (i.e. shellfish and finfish);



Elevated levels of organic matter in the water resulting from runoff from the development site can deplete dissolved oxygen levels in the water, which may cause disease or death in marine organisms;



Alteration of coastal processes around the boat ramp could result in undesirable shoreline erosion or accretion; sedimentary accretion could bury seagrass or coral reef habitats; and



Underwater noise and vibration associated impacts from seawater pipeline trenching and pile driving.

Impacts on the marine valued environmental components (VEC’s) are likely to be highest during the construction phase of the Project. Direct impacts to the marine environment may be associated with installation of the seawater cooling intake and discharge pipelines and the potential construction of a barge ramp for the transport of equipment, if these options are required. If selected as the preferred option, construction of the seawater cooling system will involve the installation of a new sea water intake pipe and discharge pipe. Design of the pipes has not yet been completed, so their location, length, diameter and position in relation to the sea bed (i.e. buried or on top) are all currently unknown. It is likely that pipes will be designed to extend past the outer fringing reef habitat into relatively deep waters within the near shore coastal water habitat. This will maximise dilution of thermal effluent to maintain cooling efficiency and achieve minimal elevation of seawater temperature. The seawater intake should also be located away the outer fringing reef habitat where species entrainment is less likely.

Chapter 7 – Impact Assessment Geothermal Plant Construction and Operation 30

The amount of heavy construction machinery used is likely to peak during the construction phase, resulting in the possible need for barge transfers of equipment to the island and associated physical disturbance to the coastal marine environment. Impacts associated with land-based runoff into the adjacent coastal zone will also be highest during the construction period, when the largest number of vehicles, construction equipment and personnel will be present. Risks of environmental incidents such as oil spills or vessel collisions are also highest at this time, due to the large number of vessels, vehicles and machinery on site. The risks to the marine environment during the construction phase can be addressed with mitigation measures that will result in a lower residual risk. 7.8.4 Impact Assessment â&#x20AC;&#x201C; Operation Risks to the marine environment associated with operational phases of the Project will be relatively minor in scale, particularly if a land based air cooling option is selected over the seawater option to cool the geothermal plant.

Seawater Cooling The use of seawater has been identified as a possible option for cooling of the geothermal plant. Cool seawater will enter the plant in a closed system by which heat is exchanged via conduction and convection with the organic working fluid. This cools and condenses the organic working fluid as part of a continuous cycle. As the cooling and injection systems are comprised of separate closed loops, the only transfer to the seawater is heat. This heated water will be released back in to the marine environment at approximately 10Â°C above ambient seawater temperature, although this will need to be confirmed as environmentally and technically suitable during detailed design. This is the most significant risk to the marine environment posed by the proposed operational activities. Corals live within a thermal environment that is within a few degrees of their upper thermal limit. A prolonged exposure to temperatures above this thermal limit can initiate an irreversible coral bleaching event. Corals are likely to be increasingly susceptible to thermal stress as climate change causes a gradual rise in mean seawater surface temperatures. As the impacts of climate change are realised, the thermal tolerance of corals will be compromised. Therefore the introduction of an additional anthropogenic thermal stressor in to the system (in the form of heated water from the cooling system) may trigger a coral bleaching event if the heated water is not quickly dispersed throughout the water column and away from the coral rich fringing reef. In addition, the infrastructure associated with the seawater cooling system may directly impact on the marine environment. Seawater intakes may entrap organisms into the cooling system. Screens are commonly placed over the inlet to prevent large organisms and debris from being sucking into the cooling system. Organisms affected can range in size from minute plankton, including the eggs and larvae of species that are large as adults, through to larger organisms including fish, crabs, squid, depending on the intake design. Because cooling systems operate more or less continuously and take in large volumes of water, species entrapment can potentially affect areas well beyond the immediate vicinity of the intake. In addition, there may be potential for contamination issues if chemical anti-scalants or anti-corrosion products are used in the maintenance of the cooling system. If seawater cooling is selected as the preferred option for the proposed geothermal plant it will be imperative that data is gathered relating to the dispersion of heated water and brine discharge in the water column after release. This will require gathering information on tidal patterns, currents and wave action close to the discharge point. This information should then be used with water quality data and climate data to model how heated water will be dispersed in the water column and along the coast after release. Any increases in water temperature as a result of the discharge must be assessed with regard to the potential impacts to coral species that may experience a localised increase in ambient water temperatures as a result of the discharge.

Chapter 7 â&#x20AC;&#x201C; Impact Assessment Geothermal Plant Construction and Operation 31

Hazardous Materials Storage Diesel fuel, oil and chemicals will be stored on site in manner that contains any spillage and minimises the effects from adverse weather conditions. There is some potential for leaking oil and grease from vehicles, spillage from refuelling and construction equipment to reach the marine environment. Treatment and storage of hazardous waste materials is addressed in the ESMMP.

Solid Waste Management Domestic and industrial waste generated during construction will be collected on site before being removed off site with contaminated materials stored separately from other solid wastes. Any waste not collected has the potential to reach the ocean through the surface and groundwater pathways. Measures describing how onsite wastes should be reused, recycled and disposed of are described in Section 8.5.9 of the ESMMP, Chapter 8. 7.8.5 Mitigation Measures A range of impact mitigation measures have been identified in order to avoid or minimise adverse effects on marine flora and fauna, including: 

Select a pipeline alignment that minimises the width of pipeline corridor to limit physical damage to outer fringing reef habitat;



Select sandy bottom substrates where possible during the route selection;



Reduce the construction width within the foreshore and coral reef area to minimise physical disturbance;



Use sediments curtains to contain sediment during marine construction;



Develop a monitoring plan within the ESMMP to periodically monitor the health of corals during the construction and operational phase;



Design seawater intake to minimise intake velocity;



Include a screen on the end of the intake pipe to minimise entrainment;



Install a velocity cap that directs intake currents horizontally rather than vertically;



During engineering design to select the plant cooling option, take into account the potential environmental risks associated with the seawater cooling option;



If a seawater cooling system is implemented locate the discharge pipeline in an area of deep water to maximise dilution;



Implement a study to collect current and wave action data to develop a hydro-dynamic dispersion model;



Locate diffuser at sufficient distance from coral reefs to minimise thermal effects;



Design pipeline and diffuser to maximise thermal dilution and minimise the spatial extent to near-field mixing;



Monitor water temperatures around the outfall during operations; and



Regularly monitor the health of corals during construction and operational phase.

7.9

Social and Cultural Heritage

7.9.1 Sources of Impact During the construction phase potential sources of impact will include: 

Construction of geothermal plant, steam field and access roads with temporary loss of land;



Noise and potentially dust nuisance to surrounding residences; Chapter 7 – Impact Assessment Geothermal Plant Construction and Operation 32



Landscape and visual amenity of construction activity;



Construction workforce living in temporary accommodation near the local community (50 people); and



Traffic and transport of workforce, machinery and supply of equipment and materials.

During the operation phase potential sources of impact will include: 

Established plant site with permanent loss of land - plant, piping and equipment on site a footprint of approximately 120 x 50 m (for the air cooled option) or 50 x 70 m (for a water cooled option), nominally located at the western end of the existing airstrip and steam field pipelines to production and injection wells;



Noise nuisance to surrounding residences;



Landscape and visual amenity of plant and steam field;



Operation workforce living in permanent accommodation near the local community (five (5) people); and



Traffic and transport of workforce and materials.

7.9.2 Sensitive Receptors The Takara community for the purpose of this Project is made up of two core villages: Natakoma Komuniti (the Corner Village) and Takara Landing, with residences close to the abandoned airstrip and Savak to the east of the site. Until 2010 when “Natakoma Komuniti” was named, the two villages were termed Takara A and Takara B. Natakoma was named through an amalgamation of the key groups residing in the community (Ntainkanas, Karaf and Mangaroa). There are four groups claiming the Takara area for land ownership namely: Ameara Wetern Manupangmanua, Karaf, Ntain Kanas and Ameara Liu. The decision regarding Kastom ownership currently rests with the Lands Tribunal with a decision pending. Two groups: Ameara Manupangmanua and NtainKanais have been given joint custodianship of the Takara land in 2012 pending appeal. There is a close relationship between the island of Emao (Emau) and Takara, with close networks, reciprocal obligations and constant inter community travel. The Takara land borders on the neighbouring community of Savak, the boundary of which lies towards the western end of the proposed Project site. This land on the border has been farmed by the Mangroaonga group from Emao who purchased the land through customary purchase from a Savak chief in 1912. 7.9.3 Impact Assessment

Property and Kastom Land Potential impacts on property and Kastom land during construction and operations would include: 

Work on Kastom land, including possible clearing of gardens, crops and plantation trees for construction of power plant operation;



Ongoing access to Kastom land in the future for ancillary infrastructure during construction and operations; and



The threat to the local Kastom would be a higher risk during Project construction, given the larger number of ‘foreign’ workers employed in this phase of the Project.

Given the current planning for the proposed geothermal plant, it is expected that the construction of the power plant and associated infrastructure is most likely to be sited close to the existing airfield to minimise impact on gardens. However construction of the steam field infrastructure is likely to impact on garden areas, further up the slope of Quoin Hill. Chapter 7 – Impact Assessment Geothermal Plant Construction and Operation 33

Geodynamics commit to ongoing consultation with the local community and impacted community members.

Culture and Social dynamics Potential impacts on culture and social dynamics during construction and operations would include: 

Disturbance to places or characteristic features of cultural or historical significance cemeteries;



Disturbance to places or characteristic features of cultural or historical significance - scrub duck habitat; and



Potential for increased tension between different groups or communities due to perceived inequalities in the distribution of Project benefits.

Given the relatively small footprint of the proposed geothermal plant it is unlikely that a large physical space will be impacted by the Project and all sites of cultural significance are expected to be avoided. It has been acknowledged that the scrub duck habitat may be situated close to where a well may be drilled on the hillside. Mitigation controls are addressed in the Terrestrial Ecology Technical Report (SLRf, 2014). Indirect and perceived impacts which may cause more concern to the community during construction and operations could also include: 

Project workforce is not respectful of Kastom (e.g. not respecting local norms, i.e. Sunday church, appropriate clothing); and



Western influences (through foreign workforce interactions with the community), has the potential to impact retention of local Kastom.

The risk levels would be a higher during Project construction, given the scale of Project workforce (approximately 50 people) during this phase of the Project. However, workforce induction, training and cultural awareness programs should help minimise potential risks.

Population Potential impacts on population during construction and operations would include an influx of workers to Takara for the Project, including from overseas, and other parts of Efate and nearby islands. The construction phase will see a significant increase in Project workforce (up to 50). It is proposed that these workers would be housed either in a camp close to the site near the runway or alternatively at the extended Beachcomber Resort. This construction workforce would be resident in Takara for a period of approximately 12 months. Following construction of the plant and associated facilities the operational stage would commence and the workforce required would reduce to a staff of approximately four (4) people for the operating phase.

Education Potential training opportunities would be limited to those identified within the Community Benefits Trust (CBT) and negotiated with the community. This could include: scholarships for High school or Tertiary Training; for community youth with potential (criteria to be developed); and/or ongoing kindergarten assistance.

Vulnerable Groups Vulnerable groups (e.g. women, youth, disabled) during construction and operations may be marginalised and may not have equal access to jobs and benefits. Throughout construction and operations, it is expected that men (including local youth) are more likely to benefit from direct local job opportunities than women, given that the nature of these jobs is likely to involve manual labour. However the large number of workers residing close to the community during construction will provide opportunities for the provision of ancillary services to Project workers, including:

Chapter 7 – Impact Assessment Geothermal Plant Construction and Operation 34



Foodstuffs and Catering;



Cleaning of rooms and compound;



Washing of clothes; and



Island massage and hot springs treatments.

In order to provide these services the women and youth need to be included in ongoing and targeted consultation so that they are prepared for the arrival of different workforce numbers with their varied requirements. It needs to be decided by women in community women’s groups how the community as a whole can best benefit from these short term opportunities; what is required to offer a quality service; and how can the proposed service be promoted to the incoming workers.

Economy, Employment and Livelihood Potential impacts on economy, employment and livelihood during construction and operations would include: 

Increased access to economic resources for individuals and households, providing opportunities to support improved standards of living (Agriculture Impact) - Increased demand for local food crops and fish;



Opportunities for training and employment in areas to better realise tourism potential in the area (accommodation, fishing, hot springs); and



Opportunities for business and industry in Port Vila including increased demand for goods and services to support exploration activities, such as transport of materials, equipment and resources.

Aesthetics and visual impact should be considered for the design of the geothermal plant in order to enhance rather than detract from the unique qualities of the area. Mitigation controls are explained in the Landscape and Visual Amenity Technical Report (SLRe, 2014). The geothermal plant operation will cause visual impacts in the local area. Equipment with neutral, non-reflective colours that blend with the surrounding landscape can reduce these negative visual impacts. Alternatively an operation can develop in such a way that it presents a tourism attraction itself, such as using local paintings (such as those in the Wiana ‘Mamma’s hall’) to adorn walls and fences. Facility buildings can also be built using traditional architecture styles, such as the local primary school, which has won global award for its design.

Institutional Structures and Governance Potential impacts on institutional structures and governance during construction and operations would include potential opportunities to improve inter-organisation cooperation. This is often poorly considered and managed in many locations which results in either paucity of efforts or duplication of efforts across specific interventions. The development of a partnership approach with local sectorial and regional agencies (for example, Department of Environment, Ministry of Education as well as Shefa Provincial Council) and donor agencies, for example, Department of Foreign Affairs and Trade (DFAT) – Australian Aid, Japan International Cooperation Agency (JICA), and Asian Development Bank (ADB) to the delivery of strategic interventions and benefits to the community can strengthen outcomes for the community.

Community Facilities and Infrastructure Potential impacts on community infrastructure and facilities during construction and operations would include: 

Opportunities to improve community infrastructure and visual amenity through implementation of Community Benefits Program (CBP).

Chapter 7 – Impact Assessment Geothermal Plant Construction and Operation 35

As with exploration phase, safety management procedures would be implemented as part of the management of construction and operation activities, to minimise potential safety incidents both on work sites and transporting equipment to the work place. This includes the requirement for workers to comply with strict worker health and safety procedures, including: training and inductions, use of worker personal protective equipment, and no use of alcohol or drugs (including kava) during shifts. First aid facilities would also be provided at the workers camp and emergency response procedures and processes would be put in place to transport any seriously workers to Port Vila or Australia for treatment. In terms of opportunities to enhance visual amenity, the current environmental landscape is rudimentary, characterised by hot springs and pools, sea and seascapes which have the potential to be enhanced through better facilities and local services. Nasinu Hot Springs offers a tourist opportunity which is currently underdeveloped.

Health and Wellbeing Potential impacts on health and wellbeing during construction and operations would include: 

Potential nuisance impacts from Project generated – noise, dust/odour and visual intrusion;



Changes in community perceptions around health, safety and security and environmental impacts; and



Increased access to economic resources for individuals and households, allowing potential for substance abuse especially amongst the youth through increased spending capacity.

7.9.4 Mitigation Measures A suite of mitigation and management measures have been developed to address the impacts identified in Section 6.8.3 these are detailed in the ESMMP in Chapter 8 of this ESIA. In addition to implementing the impact specific measures detailed in the ESMMP it is intended that: 

A Community Benefits Trust and a Kastom Owners Trust (KOT) are established prior to commencement of the production drilling and implemented through the construction and operation phases (a preliminary version of this should be established at the exploration drilling stage); and



An inclusive negotiation process is entered in to with all groups, to ensure that the CBT includes a range of CBPs that are targeted across key groups in Takara.

A range of impact mitigation measures have been identified in order to avoid or minimise adverse effects on social and cultural heritage, as outlined below: 

Prior to final siting of Project infrastructure (and clearing) consult with Takara Chiefs/Community Leaders;



Consultation with sensitive receptors (e.g. households near Project activities) in accordance with the ESMMP (ESIA Chapter 8) - discuss options for resettlement or noise attenuation;



Undertake consultation with local communities about Project activities during operation phase including discussion about potential impacts and mitigations. These should include as minimum:



Community meetings in Nakamal;

Meetings with Women’s group;

Briefings with police, schools, health centre and local tourist operators; and

Community updates/flyers/posters in local language.

Survey with local community to determine: o

Perceptions of safety and security (including antisocial behaviour) and effectiveness of plans/programs implemented by Geodynamics; Chapter 7 – Impact Assessment Geothermal Plant Construction and Operation 36



Awareness of increased traffic on coastal Ring Road; and

Attitudes towards workforce interaction with the local community.

Analyse effectiveness of actions by reviewing: o

Number of near miss reports and traffic incidents on public roads;

Number of security/safety incidents reported by local community, and attributed to Geodynamics employees; and

Undertake consultation as per construction and operation.



Review response times and actions taken in relation to community complaints and grievances;



Monitor specific complaints and grievances and mechanism to address recurring community issues; and



Audit induction/education programs to ensure 100% of employees and contractors are informed of the Workforce Code of Conduct and Cultural Awareness Program.

7.9.5 Positive Impacts Positive impacts to the community as a result of the Project are summarised in Table 7-10. These benefits are based on the results of a Project workshop to assess the type, mitigation and residual significance of each impact. The workshop followed a methodology using the ‘Social Aspects Rating Matrix’ shown in Appendix C. Each positive impact was assessed for the consequence, level of severity and likelihood given a score. The score amount equates to a level of significance between ‘low’ and ‘very high’. The positive impacts identified are all ‘Medium’. The ‘Medium’ positive impacts can result from the potential increased access to resources for individuals and the community. Although the employment directly for the community is relatively low, the opportunity for the Project to assist with livelihoods, small business opportunities, training and community infrastructure will have a ‘Medium’ positive impact.

Chapter 7 – Impact Assessment Geothermal Plant Construction and Operation 37

Table 7-10 Summary of Positive Impacts Socioeconomic & cultural issue

Support Measures

Positive Impact Significance

Economy, Employment and Livelihoods

1. Encourage commercial local sale of agriculture and fisheries products. 2. Project promotes use of local produce for workforce catering. 3. Investigate opportunity to provide a regular transport service from Takara to Port Vila to sell produce. 4. Support for local selling of agricultural products.

Medium

Opportunities for training and employment in areas to better realise tourism and hospitality potential in the area (accommodation, fishing, hot springs)

Economy, Employment and Livelihoods

1. Maintain visual aesthetics and impact of current environment to encourage local tourism opportunities: - Use colours for equipment and facilities that blend into or accentuate local environment; - Encourage opportunities for improving hospitality services- job opportunities for local catering businesses; - Encourage opportunity for other small businesses – cleaning, washing, leisure related activities for workers.

Medium

Potential opportunities to improve interorganisation cooperation

Culture & Social Dynamics

1. Through CBT existing programs that are being provided by government, donors, NGO’s are identified that assist community capacity to support business/grow community income e.g. value adding to agricultural production. 2. Geodynamics representative to participate in CBT.

Medium

Opportunities to improve community infrastructure and visual amenity through implementation of community investment initiatives

Community Infrastructure

CBP used to identify community priorities to improve community infrastructure and visual amenity of existing tourist facilities.

Medium

Economy, Employment and Livelihoods

1. Maintain visual aesthetics and impact of current environment to encourage local tourism opportunities: - Use colours for equipment and facilities that blend into or accentuate local environment: - Encourage opportunities for improving hospitality services- job opportunities for local catering businesses: - Encourage opportunity for other small businesses – cleaning, washing, leisure related activities for workers.

Medium

Description of Impact Opportunities for small business and service development in community to support overseas workforce – increasing income generation to improve living standards – e.g. Agricultural impact – increased demand and sale of locally produced foods

Opportunities for training and employment in areas to better realise tourism and hospitality potential in the area (accommodation, fishing, hot springs)

Chapter 7 – Impact Assessment Geothermal Plant Construction and Operation 38

7.10 Significant Environmental Impacts Table 7-11 summarises the environmental impacts associated with the construction and operation phases of the Project. Following the implementation of mitigation controls for each impact, the residual significance for each is shown as ‘Medium’. There are no impacts identified that are considered ‘High’, and ‘Low’ impacts are shown in Appendix C, Environmental Risk Register. As shown in Appendix C, the majority of the environmental impacts are associated with construction impacts causing a ‘nuisance’ or increased risk, but are temporary for the duration of construction. These environmental impacts are based on the results of a Project workshop to assess the type, mitigation and residual significance of each impact. The workshop followed a methodology using the ‘Environmental Aspects Rating Matrix’ shown in Appendix C. Each negative impact was assessed for the consequence and likelihood given a score. The score amount equates to a level of significance between ‘low’, ‘medium’ and ‘high’. The positive impacts identified are all ‘Medium’. As shown in Table 7-11 there are two (2) impacts stated that could cause a ‘Medium’ residual negative impact. The first of these is the clearing of native vegetation for construction, causing a loss of habitat that could impact the Megapode (Scrub Duck). The other potential impact is to the marine environment if a seawater cooling option is chosen. Both potential impacts are explained below. 7.10.1 Terrestrial Ecology The primary impact on the terrestrial ecology of the area will be the loss of approximately 4.5 ha of land to the Project footprint during construction. This land currently provides habitat to a variety of flora and fauna including listed species. As terrestrial habitat is a finite resource any losses will have an impact to the wildlife residing in the area. However, direct impacts can be minimised by conducting pre-clearance surveys of areas before all works and rehabilitating disturbed areas post-Project as detailed in the ESMMP. As habitat is a finite resource no mitigation measures can fully compensate for losses therefore the residual risk to the terrestrial habitats of the receiving environment from activities associated with the phases of the Project is classified as ‘Medium’. 7.10.2 Marine Ecology The primary impact anticipated from the operational phase of the Project on the marine environment is associated with the potential discharge of heated seawater into the near shore environment. This heated water will be released back in to the marine environment at approximately 10°C above ambient seawater temperature. Corals live within a thermal environment that is within a few degrees of their upper thermal limit. A prolonged exposure to temperatures above this thermal limit can initiate an irreversible coral bleaching event. Corals are likely to be increasingly susceptible to thermal stress as climate change causes a gradual rise in mean seawater surface temperatures. As the impacts of climate change are realised, the thermal tolerance of corals will be compromised. Therefore the introduction of an additional anthropogenic thermal stressor in to the system (in the form of heated water from the cooling system) may trigger a coral bleaching event if the heated water is not quickly dispersed throughout the water column and away from the coral rich fringing reef.

Chapter 7 – Impact Assessment Geothermal Plant Construction and Operation 39

Table 7-11 Significant Environmental Impacts Description of Impact

Activity

Vegetation clearance

Seawater cooling outfall (if required)

7.11

Loss of habitat for endangered species e.g. scrub duck

Increased water temperature in ocean leading to flora and fauna damage

Project Stage

Mitigation Measures

Consequence / Likelihood

Residual Risk

Drilling / Construction

Moderate

Unlikely

Medium

Operation

Note: Seawater cooling of plant is an option only at this stage. Reassessment of impacts required if this option chosen during engineering design. 1) Design of discharge point for water column height, location, velocity. 2) Modelling of predicted dilution factor and expected plume from discharge point. 3) Monitoring of post-discharge water quality and impacts.

Moderate

Unlikely

Medium

Significant Social Impacts

The social and cultural aspects are the most complex components of this assessment due to the cultural and political sensitivities that currently exist within the affected communities; therefore assessing the residual risks to social components is not as straight forward as for the physical and biological components. Table 7-12 summarises the social and cultural impacts associated with the construction and operation phases of the Project. Following the implementation of mitigation controls for each impact, the residual significance for each is shown as ‘Medium’. There are no impacts identified that are considered ‘High’, and ‘Low’ impacts are shown in Appendix C. The social and cultural impacts shown in Table 7-12 are associated with construction impacts causing a ‘nuisance’ or increased risk, but are temporary for the duration of the construction phase. There are no ‘Medium’ impacts that are only associated with the operation phase and not construction.

Chapter 7 – Impact Assessment Geothermal Plant Construction and Operation 40

Table 7-12 Significant Social and Cultural Impacts Aspect

Work on land, including possible clearing of gardens, crops and plantation trees during construction.

1. Where possible restrict all work to non-garden areas. Property and community land 2. Implement a KOT to pay rent to eventually declared Kastom owners. 3. Implement a local work plan to hire local workers for drilling and community projects during exploration drilling phase. 4. Implement agreed consultation process outlined in ESMMP

Increased traffic along coastal Ring Road bringing good and services to site with increased accident potential especially with children

Health and Wellbeing

Increased access to economic resources for individuals and households, allowing potential for substance abuse especially amongst the youth through increased spending capacity.

Health and Wellbeing

Potential for increased tension between different groups or communities due to perceived inequalities in the distribution of project benefits

Culture & Social Dynamics

Medium

Vulnerable groups (e.g. women, youth, disabled) may be marginalised and not have access to jobs and benefits

Vulnerable groups

Medium

Limited opportunity for training and skilled employment opportunities

Education and Training

1. As part of CBP, investigate opportunities to upskill and train local community members for future project roles. 2.CBT supports education and training programs

Medium

Influx of workers to Takara for the Project, including from overseas, and other parts of Efate and nearby islands

Demographic change

Medium

Disturbance to / on places or characteristic features of cultural or historical significance - scrub duck habitat

Culture & Social Dynamics

Mitigation Measure

Residual Risk

Description of Impact

1. ESMMP outlines dates when large volumes of project traffic are expected and these are communicated to communities (communication methods set out in ESMMP consultation process). Avoidance of peak times when pedestrian traffic is high particularly around school start and finish. 2. Driver education/awareness undertaken 3. School road safety training program. 1. CBT identifies opportunities to sponsor community awareness programs that educate community members about drug use, sponsor cultural appropriate programs e.g. Won Smol Bag Performance used to promote messages.

Chapter 7 â&#x20AC;&#x201C; Impact Assessment Geothermal Plant Construction and Operation 41

Medium

CHAPTER

Environmental and Social Management and Monitoring Plan

Table of Contents 8

ENVIRONMENTAL AND SOCIAL MANAGEMENT AND MONITORING PLAN

8.1

Introduction

8.2

Environmental and Social Management System Requirements 8.2.1 Environmental and Social Impact Assessment Terms of Reference 8.2.2 Equator Principles 8.2.3 International Financial Corporation (World Bank Group) Performance Standards

1 1 1 1

8.3

Environmental Policy 8.3.1 Geodynamics’ Existing Environmental Policy 8.3.2 Geodynamics’ Environmental Management System (EMS)

2 2 3

8.4

Identification of Risks and Impacts 8.4.1 Environmental and Social Risk Registers

5 5

8.5

Management and Monitoring Plans (MMPs) 8.5.1 Soils and Land Suitability 8.5.2 Surface and Ground Water 8.5.3 Air Quality and Greenhouse Gas Emissions 8.5.4 Noise 8.5.5 Landscape and Visual Amenity 8.5.6 Terrestrial and Aquatic Ecology 8.5.7 Marine Ecology 8.5.8 Social, Cultural Heritage and Stakeholder and Community Consultation 8.5.9 Waste and Hazardous Substances 8.5.10 Spill Response 8.5.11 Traffic and Transport

Chapter 8 – Environmental and Social Management and Monitoring Plan

5 5 9 19 21 22 23 26 28 30 34 35

Table of Contents TABLES Table 8-1 Performance Standard Requirements for and ESMS Table 8-2 Management and Monitoring Plan - Soils and Land Suitability Table 8-3 Recommended Soil Stripping Depths Table 8-4 Management and Monitoring Plan - Surface and Ground Water Table 8-5 Groundwater Quality Assessment Criteria Table 8-6 Surface Water Quality Assessment Criteria Table 8-7 Management and Monitoring Plan – Air Quality Table 8-8 Management and Monitoring Plan – Greenhouse Gas Table 8-9 Management and Monitoring Plan - Noise Table 8-10 Management and Monitoring Plan - Landscape and Visual Amenity Table 8-11 Management and Monitoring Plan - Terrestrial and Aquatic Ecology Table 8-12 Project roles for Ecological Monitoring Program Table 8-13 Management and Monitoring Plan – Marine Ecology Table 8-14 Management and Monitoring Plan – Social, Cultural Heritage and Stakeholder and Community Consultation Table 8-15 Management and Monitoring Plan – Hazardous Substances Table 8-16 Management and Monitoring Plan - Waste Table 8-17 Management and Monitoring Plan – Spill Response Table 8-18 Management and Monitoring Plan –Traffic and Transport

2 5 8 9 15 18 20 20 21 22 23 25 26 28 30 33 34 35

FIGURES Figure 8-1 Geodynamics Environmental Management System Structure Figure 8-2 Proposed Groundwater Monitoring Well Locations

Chapter 8 – Environmental and Social Management and Monitoring Plan

4 12

ENVIRONMENTAL AND SOCIAL MANAGEMENT AND MONITORING PLAN

8.1

Introduction

This Chapter describes the Environmental and Social Management System (ESMS) to be implemented by Geodynamics and the Environmental and Social Management and Monitoring Plan (ESMMP) developed for the Project in line with the requirements of the ESIA ToR, Equator Principles and IFC Performance Standards. The ESMMP has been prepared to address the impacts raised in the ESIA process and incorporates the mitigation measures required to reduce risks to as low as reasonably practical. It incorporates an Environmental Policy, an ESMS, reference to the register of Environmental and Social Risk Registers (ESIA Appendix C) and includes discipline specific management and monitoring plans. The Management and Monitoring Plans (MMPs) have been developed for each of the environmental and social aspects assessed in Chapter 6 and Chapter 7 and include measures to be implemented to avoid, minimise, and compensate/offset the identified risks and impacts to the community and the environment.

8.2

Environmental and Social Management System Requirements

8.2.1

Environmental and Social Impact Assessment Terms of Reference

This ESMMP complies with the ESIA ToR as shown in the Section 9 (i) of ESIA Appendix A, specifically to: •

Avoid as far as practicable any adverse environmental effects and areas of human habitation and use;

•

Develop a community engagement plan; and

•

Develop a monitoring plan.

8.2.2

Equator Principles

Equator Principle 4 Environmental and Social Management System and Equator Principles Action Plan states that: For all Category A and Category B Projects, the Equator Principles Financial Institutions (EFPI’s) will require the client to develop or maintain and ESMS. Further, an Environmental and Social Management Plan (ESMP) will be prepared by the client to address issues raised in the Assessment process and incorporate actions required to comply with the applicable standards. Where the applicable standards are not met to the EPFI’s satisfaction, the client and the EPFI’s will agree and Equator Principle Action Plan (AP). The Equator Principle AP is intended to outline gaps and commitments to meet EPFI requirements in line with the applicable standards. 8.2.3

International Financial Corporation (World Bank Group) Performance Standards

The applicable standards with which the ESMS and ESMP must comply are outlined in the IFC Performance Standard 1 Assessment and Management of Environmental and Social Risks and Impacts. Performance Standard 1 identifies the following elements that must be incorporated into an ESMS: •

Policy;

•

Identification of risks and impacts;

•

Management programmes;

Chapter 8 – Environmental and Social Management and Monitoring Plan 1

•

Organisational capacity and competency;

•

Emergency preparedness and response;

•

Monitoring and review;

•

Stakeholder engagement;

•

External communications and grievance mechanisms; and

•

Ongoing reporting to affected communities.

Table 8-1 describes how these elements will be incorporated into the ESMS for the Project to ensure alignment with the Equator Principles. Table 8-1 Performance Standard Requirements for and ESMS Performance Standard

Description

Section

Policy

Establish policy defining environmental and social objectives and principles that guide project to achieve sound environmental and social performance

Section 8.3

Identification of risks and impacts

Establish a process for identifying and assessing environmental and social risks

Section 8.4

Management programmes

Establish management programs that describe mitigation and performance improvement measures and actions that address environmental and social risks

Section 8.5

Capacity/ competency

Define roles, responsibilities and authority to implement EMS

Section 8.5

Emergency preparedness/ response

Prepare and maintain Emergency Response Plan (ERP) to respond to accidental and emergency situations

Section 8.3.2

Monitoring and review

Develop procedures to monitor and measure effectiveness of the management program and compliance with legal requirements

Section 8.3.2

Stakeholder engagement

Conduct ongoing process of stakeholder analysis and planning, disclosure and dissemination of information, consultation and participation, grievance resolution mechanism and reporting to affected communities

Section 8.5.8

Communications and grievances

Establish procedures for registering and dealing with external communications from the public Establish grievance mechanism to facilitate resolution of grievances raised by affected communities

Section 8.5.8

Reporting

Undertake periodic reporting to affected communities

Section 8.5.8 and 8.3.2

8.3

Environmental Policy

8.3.1

Geodynamics’ Existing Environmental Policy

Geodynamics has an existing Environmental Policy that describes their commitment to environmental and social management. The policy was endorsed by Geodynamics’ Chief Executive Officer in June 2011 and is communicated to all staff during their induction as well as being displayed throughout Geodynamics’ offices and field sites. The Geodynamics Environmental Policy is reproduced as follows: Our environmental performance needs to be consistent with what the community, our regulators and shareholders expect from a renewable energy company working in a fragile environment.

Chapter 8 – Environmental and Social Management and Monitoring Plan 2

Geodynamics is committed to the effective environmental management of all its exploration, development and operating activities; while at the same time minimising the social impact for the benefit of present and future generations. Our vision is to become a world leading geothermal energy company, supplying competitive zero carbon energy and base load power to market. The Company recognises that there are potential environmental impacts associated with exploration and resource development which must be identified at the outset and managed effectively throughout the life of the project. To achieve this, we will: •

Maintain and continually improve the Environmental Management System across the organisation.

•

Comply with all relevant laws, regulations and standards and aspire to higher standards within the business.

•

Ensure that all employees and contractors receive appropriate training to fulfil their individual environmental responsibilities.

•

Ensure that we have the necessary resources and skills to achieve our environmental commitments,

•

Implement strategies to minimise pollution, manage waste effectively, use water and energy efficiently and address relevant cultural heritage and biodiversity issues.

•

Formally monitor, audit, review and report annually on our environmental performance against defined objectives.

•

Require that companies providing contract services to Geodynamics manage their environmental performance in line with this policy.

•

Work towards the achievement of a high level of external recognition for the quality of our on-site environmental management.

Geodynamics is committed to providing the resources and support required for the achievement of best practice and the ongoing improvement of environmental management at all of our sites. 8.3.2

Geodynamics’ Environmental Management System (EMS)

The Equator Principles define the Environmental and Social Management System (ESMS) as the overarching environmental, social, health and safety management system which may be applicable at a corporate or Project level. The ESMS is designed to identify, assess and manage ongoing risks and impacts from the Project. Geodynamics has an Environmental Management System (EMS) certified under AS/NZS ISO 14001:2004 Environmental Management Systems. It consists of a set of processes and practices which have been prepared to ensure that Geodynamics meets the commitments of its environmental policy and minimises its environmental effects. Geodynamics’ EMS is currently implemented for its existing geothermal power operations in the Cooper Basin in Central Australia and will be utilised for the Project. The structure of the EMS adheres to the AS/NZS ISO14001:2004 and is presented in Figure 8-1.

Chapter 8 – Environmental and Social Management and Monitoring Plan 3

Figure 8-1 Geodynamics Environmental Management System Structure

Organisational capacity and competency Geodynamics’ has defined roles and responsibilities for implementing and reviewing their EMS. These will cover Project related activities and will define the personnel responsible for the implementation of the specific management, mitigation and monitoring measures outlined in the MMPs (see Section 8.5) Emergency Preparedness and Response Emergency response is covered under Geodynamics’ Health and Safety Management System. A specific Emergency Response Plan (ERP) will be prepared for the Project prior to work commencing. This will include notification and reporting of environmental and social incidents that are defined as an emergency. Incidents will be recorded and immediate action taken to lessen the impacts of the incident as much as possible. Depending on the scale of the incident, the relevant authorities will also be notified and an investigation carried out into the causes and corrective actions that are required to prevent future recurrence. Monitoring, Review and Reporting To determine whether the environmental and social impacts are within the accepted limits, monitoring will be conducted as part of the works. Monitoring proposed as part of the Project is summarised in the MMPs presented in Section 8.5. The effectiveness of the EMS and MMPs will also be reviewed periodically by undertaking inspections to verify that it is functioning effectively for the Project. The findings of these inspections will be reported to Geodynamics’ senior management team and any corrective actions will be incorporated into relevant management plans and procedures. Geodynamics will report the findings of the monitoring and inspections conducted for the Project as specified by the Department of Environment Protection and Conservation (DEPC) and consequent Project approval. According to Geodynamics’ EMS, it will report internally on its environmental performance on an annual basis. Geodynamics should conduct a regular site inspection and annual audit of compliance with this ESMMP. This should include Geodynamics contractors and if relevant sub-contractors. Stakeholder and Community Engagement A specific MMP has been developed to ensure continued and effective stakeholder and community consultation throughout the Project. This MMP is presented in Section 8.5.6.

Chapter 8 – Environmental and Social Management and Monitoring Plan 4

8.4

Identification of Risks and Impacts

Through the preparation of the ESIA, the potential environmental and social impacts from the exploration, construction, operation and decommissioning phases of the Project have been assessed. ESIA Chapter 6 assesses the impacts of the exploration and production drilling phases of the Project, whilst ESIA Chapter 7 assesses those from the geothermal plant construction and operational phases. 8.4.1

Environmental and Social Risk Registers

In accordance with the principles of the EMS, an aspects register has been developed for the Project incorporated within an Environmental and Social Risk Registers (see ESIA Appendix C). The aspects registers includes an integrated risk rating tool to determine the level of risk ranking, based on the likelihood and consequences of each risk occurring. Each aspect is rated prior to applying mitigation measures, which are proposed to mitigate the risk to as low as reasonably practical. The risk rating tool is then used with consideration of the mitigation measures, to determine the residual risk. If the MMPs outlined in Section 8.5 are implemented it is anticipated that the residual environmental and social risk will generally be low with a small number of activities remaining a medium risk. Remaining items of medium residual risk are discussed in ESIA Chapter 6 and 7. The rating systems and the criteria used for determining the level of risk associated with the Project for the various environmental and social aspects are summarised in ESIA Appendix C.

8.5

Management and Monitoring Plans (MMPs)

The following MMPs for specific disciplines have been developed from the ESIA Technical Reports and the impact assessment in Chapter 6 and 7 of this ESIA. The MMPs are intended to reduce environmental and social risks to as low as reasonably practical. The MMPs for the Project are presented below. These stipulate specific management, mitigation and monitoring measures to be implemented to avoid, minimise, and compensate/offset the identified risks and impacts to the community and the environment for each of the assessed environmental and social aspects. 8.5.1

Soils and Land Suitability

The development of the Project will impact on soil and agricultural land resources during the exploration, construction and operation of Project components. Table 8-2 presents the mitigation measures and management recommendations to minimise soil and land impacts from the Project. Table 8-2 Management and Monitoring Plan - Soils and Land Suitability Aspect

Mitigation Measures

When

Who

Objective

To minimise short and long term impacts to agricultural soil and land resources

Targets

Implement appropriate soil and rehabilitation management measures to ensure that rehabilitation goals are met during all stages of the Project.

Chapter 8 â&#x20AC;&#x201C; Environmental and Social Management and Monitoring Plan 5

Aspect

Mitigation Measures

When

Who

Exploration drilling

Site Superintendent with advice from the Drilling Contractor

Exploration drilling

Site Superintendent with advice from the Drilling Contractor

Rehabilitation of land to target post-development land capability classes Soil Salvage Works

Prior to disturbance works, soil stripping limitations associated with the proposed disturbance area are to be identified, rehabilitation methods articulated in Table 8-11. During the stripping of soil: • Prior to clearing and soil stripping commencing, the limits of these works should be clearly delineated by pegs placed at intervals on each side of the disturbed area by a suitably qualified supervisor. All operations will be planned to ensure that there is no damage to any trees and pasture areas outside the limits to be cleared. • Strip material to the depths stated in Error! Reference source not found.. • Maintain soil in a slightly moist condition during stripping. Material should not be stripped in either an excessively dry or wet condition. • Less aggressive soil-handling equipment should be used during the stripping and transport of the stripped soil.

Soil Storage

Soil Respreading

Storage of soil: • Where the pre-disturbance land capability is suited to cultivation (Classes II and III in Zones A, B, C and D) the topsoil and any stripped subsoil will be stored separately. • Ameliorate soil as per Error! Reference source not found. and/or in accordance with the rehabilitation methods in Table 8-11. • The surface of soil stockpiles will be left in a coarsely textured condition. This will promote infiltration and minimise erosion until vegetation is established, as well as preventing anaerobic zones forming. • The maximum topsoil stockpile height will be 3 m. Spreading of soil and re-seeding: • Prior to spreading stockpiled topsoil onto, a weed assessment of stockpiles will be undertaken to determine if individual stockpiles require herbicide application and / or ‘scalping’ of weed species prior to topsoil spreading. • Topsoil will be spread, treated with fertiliser and seeded in one consecutive operation in order to reduce the potential for topsoil loss from wind and water erosion. •

•

Progressive Rehabilitation

Exploration drilling

Site Superintendent with advice from the Drilling Contractor

Exploration drilling

Site Superintendent with advice from the Drilling Contractor

All topsoiled areas will be scarified prior to or during seeding to reduce run-off and increase infiltration. This can be undertaken by contour tilling with a machinery blade or similar. Seed mix or propagules selected are to be representative of impacted area pre-disturbance and commensurate with surrounding landform. Where the pre-disturbance land capability is suited to cultivation (Classes II and III) the topsoil and any stripped subsoil will be spread with particular attention given to ensuring that the soil is re-profiled with appropriate A and B soil horizons.

Progressive Rehabilitation: • Rehabilitation of exploration drill pads is to commence following infrastructure decommissioning works, and alternative interim rehabilitation plans will be implemented if the site is to be subsequently production drilled, after a delay of some months.

Chapter 8 – Environmental and Social Management and Monitoring Plan 6

Aspect

Mitigation Measures

When

Who

Rehabilitation Monitoring

Rehabilitation Monitoring: • Monitoring to measure the success of rehabilitation works will be undertaken. Monitoring requirements are documented in Table 8-11. • Where gardens are to be disturbed and rehabilitated (i.e. Zone A, B, C and D), monitoring will include an assessment of agronomic potential. • Fertiliser additions will be undertaken upon receipt of soil test results during a progressive soil-testing program should the re-vegetation monitoring program indicate that it is required.

Exploration drilling

Site Superintendent

General

Production drilling may occur in Zones A and B. These zones are associated with the Ferrosol soil units and include gardens as well as vegetation habitat. Mitigation measures are as detailed for Exploration activities.

Production Drilling

Site Superintendent with advice from the Drilling Contractor

Long-term Soil Stockpiles

Operation activities are proposed to potentially occur in all parts of the disturbance footprint, excluding exploration Zones C and D. The operational footprint is associated with the Ferrosol, Tenosol and Rudosol soil units and includes gardens as well as vegetation habitat. Mitigation measures are as detailed for Exploration activities and also include: • Where long-term stockpiling of soils is required the following measures will apply: - An inventory of available soil will be maintained to ensure adequate topsoil materials continue to be available for rehabilitation activities. - Where the soil will be stored for greater than 12 months, the stockpile will be seeded and fertilised as soon as possible to enable a healthy annual pasture sward to provide sufficient competition to minimise the emergence of undesirable weed species. - Prior to spreading stockpiled topsoil onto reshaped land, a soil chemical and physical analysis is to be undertaken and amelioration shall be provided if required to improve physical and chemical properties e.g. pH, water holding capacity etc.

Operations

Site Superintendent

Exploration drilling

Site Superintendent with advice from the Drilling Contractor

Minimise offsite movement of erosion and sediment Erosion and Sediment Controls

Key rehabilitation objectives will include: • Minimise erosion and sedimentation from all active and rehabilitated areas, thereby minimising sediment ingress into surrounding surface waters. • Segregate contact water (surface run-off from disturbed catchments; e.g., active areas of disturbance, stockpiles and rehabilitated areas until stabilised), from clean water (surface run-off from catchments that are undisturbed or relatively undisturbed by project-related activities and rehabilitated catchments) and maximise the retention time of contact water so that any discharge meets the water quality normally present in the catchment. • •

•

Manage surface flows upstream of the Project area so that rehabilitation activities are not affected by flooding. Prevent erosion of the ephemeral watercourses that traverse the site; establish sustainable long-term surface water management features following rehabilitation of the site, including implementation of an effective re-vegetation and maintenance program. Monitor the effectiveness of surface water and sediment controls in order to meet the quality of the water quality normally present in the catchment.

Chapter 8 – Environmental and Social Management and Monitoring Plan 7

Aspect

Mitigation Measures

When

The following measures will be required: • Identify the inherent erosion hazard risk associated with soil material to be disturbed. • Minimise land disturbance by clearing the smallest practical area of land ahead of construction, as well as ensuring the land is disturbed for the shortest possible and practical time. • Limit the cleared width to that required to accommodate the proposed operations; • Stage clearing activities, where possible, so that only the areas which are being actively cleared, therefore, limiting the time the areas are exposed. • • •

Who

Exploration drilling

Site Superintendent with advice from the Drilling Contractor

Exploration drilling

Site Superintendent with advice from the Drilling Contractor

Operations

Site Superintendent

Vegetate topsoil stockpiles as soon as practical. Use diversionary structures such as drains, berms and banks to isolate clean and dirty water. Use sediment pond structures where space permits to retain dirty water and allow time for sedimentation to enable clean water to be discharged.

Minimise Potential Land Contamination Controls

Prior to works, identify the specific fuel and hazardous chemicals to be used at exploration sites (i.e. Zones, A, B, C and D) and list all materials to be used, quantities, storage and transport protocols. This will include an Emergency Response Plan should an unintentional spill occur. All fuel and hazardous chemicals will be stored within bunded areas.

Decommission Project Components Appropriately Decommissioning

Prior to closure, the Project will prepare a detailed Decommissioning and Rehabilitation Strategy that details how each operational Project component will be decommissioned and the land rehabilitated to target post-mining land capability class goals.

Table 8-3 presents the recommended topsoil stripping depths for the Project soil units. Table 8-3 Recommended Soil Stripping Depths Soil Unit

Stripping Depth

Limitations to Soil Stripping Depth

Amelioration Required within Recommended Striping Depth Ameliorate topsoil with gypsum to reduce clodiness of fine textured soil.

Name

Red Ferrosol

0.5

Strong subsoil acidity; heavy subsoil clay content

Red Ferrosol

0.3

Heavy subsoil clay content

Brown Ferrosol

0.4

Heavy subsoil clay content

Red Ferrosol

0.6

Heavy subsoil clay content

Loamy Carbic Rudosol

0.3

Shallow depth to bedrock/weathering zone

Ameliorate topsoil with organic amendments to improve soil structure.

Sandy Carbic Rudosol

0.1

Shallow depth to bedrock/weathering zone

Nil

Brown Calcenic Tenosol

0.05

High subsoil coral fragment content

Ameliorate topsoil with organic amendments to improve soil structure.

Yellow Calcenic Tenosol

0.15

High subsoil coral fragment content

Chapter 8 – Environmental and Social Management and Monitoring Plan 8

8.5.2

Surface and Ground Water

Table 8-4 presents the mitigation measures and management recommendations to minimise surface and ground water impacts from the Project. Table 8-4 Management and Monitoring Plan - Surface and Ground Water Erosion and Sediment Control Aspect

Mitigation Measures

When

Who

Objective

To reduce downstream impacts of the project, e.g. total suspended solids, metals, oil and grease.

Targets

For erosion and sediment control to be appropriately integrated into all phases of construction and design.

Erosion and Sediment Management

Industry practice erosion and sediment control measures will be implemented, as detailed Section 8.5.1.

Exploration and Production drilling Construction

Construction Contractor with advice from the Site Superintendent

Monitoring and Review

•

Exploration and Production drilling Construction

Site Superintendent

When

Who

•

All erosion and sediment controls will be checked daily and after rain. If damaged, blocked or not serviceable they must be fixed/cleaned. Accumulated sediment should be disposed of at an appropriate fill location (such as a dedicated storage pond or bunded stockpile area).

Stormwater Drainage Aspect

Mitigation Measures

Objective

• •

To manage stormwater generated from the development. To replicate the current hydrological regime, as far as practical.

•

To implement an appropriate stormwater management infrastructure to ensure controlled stormwater discharges during all phases of the project and minimise contaminated stormwater runoff from discharging down gradient of the site.

•

Stormwater management infrastructure will be designed to appropriate Vanuatu or Australian stormwater industry standards, where available.

Exploration drilling, Production drilling and Construction

Construction Contractor based on advice from Design Engineer

•

All temporary drainage controls will be checked daily and after heavy rain during construction. If damaged, blocked or not serviceable they must be fixed/unblocked.

Drilling phases and Construction

Site Superintendent

•

Six (6) Monthly (or after heavy rainfall) assessment of maintenance requirements for all drainage structures during operation.

Operation

Target

Stormwater Management Monitoring and Review Monitoring and Review

Site Superintendent

Hydrological Mitigation Aspect Objective Target Road Design

Mitigation Measures •

To prevent any significant disruption to the existing hydrological regime, as far as printed

•

No major blockage or diversion of major watercourse flow paths

•

Design access roads to run from the abandoned airstrip along the ridges to avoid any major watercourse crossings being required. Piped bridges (culverts) will be used to convey flow where access roads cross minor flow paths.

•

When

Who

Exploration drilling, Production drilling and Construction

Design Engineer and Construction Contractor

Chapter 8 – Environmental and Social Management and Monitoring Plan 9

Deep Reservoir Management Aspect Objective Target

Mitigation Measures

When

•

To manage and maintain the reservoir pressure so that artesian flow is maintained.

• •

Minimise water level variations in shallow groundwater To prevent any significant disruption of hot springs

•

A reservoir management plan should be developed to ensure monitoring and responsive management measures are implemented throughout production in order to minimise the likelihood of pressure drops and manage any unforeseen pressure drops or temperature rise.

Production management

Who

Hydrogeologist – geothermal specialist Operation

Groundwater Monitoring Aspect

Mitigation Measures •

• • Objective • • •

When

Who

To enable early detection and response to down gradient groundwater impacts of the project, e.g. total dissolved solids, metals, hydrocarbons, drilling additives To monitor water levels during well discharge tests To detect any problems with subsurface leakage from exploration and production wells To detect any problems with leakage from lined storage ponds / sumps To identify potential impacts to local groundwater levels To detect pollutants which have migrated from surface to groundwater

Target

•

No significant deterioration in existing ground water conditions

Installation of groundwater monitoring wells

•

Groundwater monitoring wells should be installed at strategic locations across the site as detailed in Table 8-2 and baseline data collected prior to work commencing.

Exploration and Production drilling, Construction

Hydrogeologist

Monitoring and Review

•

Groundwater levels should be monitored before, during and after the well discharge tests.

Exploration and Production drilling

Hydrogeologist / Site Engineer

•

Groundwater quality (including hot spring sampling) and groundwater levels should be monitored before, during and after the exploration phase, monthly during the drilling and construction phases and on a biannual basis thereafter. The appropriateness of this monitoring interval should be checked following the exploration monitoring results. Groundwater and hot spring chemistry monitoring should be undertaken at relevant down gradient wells after any significant spill incident. Monitoring should be conducted weekly thereafter until conditions return to normal.

All phases

Hydrogeologist / Site Engineer

When

Who

Monitoring and Review •

Surface water monitoring Aspect

Mitigation Measures •

Objective • Target

•

To enable early detection and response to surface water impacts of the project, e.g. metals, oil and grease To identify any failures in erosion and sediment and controls. To detect pollutants which have migrated from the project site to surface waters.

Chapter 8 – Environmental and Social Management and Monitoring Plan 10

• •

Monitoring

•

Surface water quality monitoring should be conducted prior to the exploration phase. Where drilling and construction works are occurring within land to the south of the airstrip, surface water quality monitoring should be conducted following a heavy rainfall event. Surface water monitoring should be undertaken during the first flow event after any spill incident in Zone A, B, C and D. Samples should be collected from the most immediate location down gradient of the spill and at the standard sampling location of the receiving watercourse (see Surface and Ground Water Technical Report, SLRb, 2014). Surface water monitoring should only be conducted during the operational phase if operational impacts have occurred.

All Phases

Site Engineer

When

Who

Drilling and Geothermal fluid management Aspect

Mitigation Measures •

Objective

Target Drilling Fluid selection

• • •

Selection of appropriate drilling fluids. Prevent geothermal fluids from discharging to surface water or groundwater during discharge tests, until analysis has been completed.

•

Drilling additives/fluids should not contain volatile or mobile petroleum hydrocarbons.

Exploration and Production phase

Drilling supervisor

•

Subject to final well design, three concentric casings will be cemented in place in the wells across the shallow aquifer. Geothermal fluid discharges from well discharge tests will be stored in lined sumps. Brine discharges during operational upsets will also be stored in lined sumps unless testing during the exploration phase determines that they are suitable for release. The lined sumps will be sized to contain all geothermal fluids abstracted during the well discharge tests plus a suitable storage allowance for rainwater. Unless brine chemistry proves to be benign, brine is intended to be re-injected into the reservoir. It this is not possible, discharge to ocean would occur to comply with Table 8-13.

All phases

Drilling supervisor

When

Who

All phases

Design Engineer and Construction Contractor

• Geothermal Fluid Management during discharge tests and production

To reduce down gradient groundwater and surface water quality impacts associated with drilling fluid use and disposal. To reduce down gradient groundwater and surface water quality impacts associated with geothermal fluid disposal.

•

Sanitation Waste Management Aspect

Mitigation Measures •

Objective • • Target • • Septic tank system Monitoring and review

• •

To reduce down gradient water quality impacts associated with the septic tank system To prevent failure of the septic tank system To minimise pollutant migration to groundwater and surface waters To prevent clogging of soils around disposal system The septic tank system should be designed to Vanuatu or Australian wastewater industry standards All waste sludge should be disposed of at an appropriate waste disposal facility Septic tanks should be inspected regularly and pumped out as required to prevent sludge build up and maintain design capacity

All phases

Chapter 8 – Environmental and Social Management and Monitoring Plan 11

Site facilities maintenance team

Groundwater Monitoring Locations It is recommended that groundwater monitoring wells be installed a strategic down gradient locations adjacent to the exploration drill sites prior to the commencement of drilling. Only these initial wells are required prior to the exploration phase. Monitoring well emplacement can be undertaken in stages as and when exploration zones are confirmed. Existing baseline groundwater samples were not collected from dedicated groundwater monitoring wells, therefore it is recommended that groundwater monitoring wells be installed at strategic down gradient locations adjacent to the exploration drill site prior to the commencement of the exploration phase. The recommended monitoring well locations are shown in Figure 8-2. The figure assumes that the exploratory wells will be constructed in Zones A, B, E and/or the airstrip. Similar layouts would be adopted for Zones C and D should these require drilling. Due to consolidation grouting it is anticipated that pH levels in groundwater will be raised temporarily in the vicinity of the boreholes. In order to monitor wider impacts and avoid contamination of screen zones with grout, the monitoring wells should be located outside the construction platform area and a minimum distance of 25m from the perimeter of the consolidation grouting grid. Groundwater monitoring wells should be installed to the base of the limestone aquifer. Wells should be screened across the entire aquifer. A further two wells will be installed for control purposes, to detect potential groundwater variations unrelated to the drilling activities. These will initially be established immediately south of Zone B and the airstrip drilling site which is the alternative to Zone D. This latter well will require replacement with a well due south of the southernmost drilling area should Zone C and/or Zone D drilling take place. Figure 8-2 Proposed Groundwater Monitoring Well Locations

Chapter 8 â&#x20AC;&#x201C; Environmental and Social Management and Monitoring Plan 12

The hot spring baseline sampling locations W5 and W8 and the groundwater bore tap at Beachcomber Resort (sample location W11) should also be included in the groundwater monitoring programme to monitor potential water chemistry impacts at the hot springs and Beachcomber Resort. Water levels in the hot spring bathing areas should also be monitored to check for any significant reductions in water level or change in temperature. Schedule Groundwater and hot spring chemistry and level monitoring should be conducted at all locations prior to, during and after the exploration phase. It is recommended that groundwater monitoring be conducted on a monthly basis during the drilling phases and on a biannual basis thereafter. The appropriateness of this monitoring interval should be checked following the exploration monitoring results. Groundwater and hot spring chemistry monitoring should also be undertaken at relevant down gradient wells/springs after any spill incident. Monitoring should be conducted weekly until conditions return to normal. Groundwater levels should also be monitored at the monitoring wells before and after the well discharge tests are undertaken (during the exploration and production drilling phases) to assess any potential connection between the shallow and deep aquifers. Testing and Analysis Unless low flow methods are to be used, prior to sampling all monitoring wells should be purged of three well volumes of standing water or until water quality parameters (pH, EC and temperature) are stabilised. Given the remote location and absence of local testing facilities it is anticipated that there may be a significant delay in the production of testing results. This may lead to a delay in any required mitigation. Consequently, SLR recommends an initial screen testing of water samples, using an appropriately calibrated water quality meter to measure pH, temperature, EC, redox, TDS and Dissolved Oxygen. An initial screen for the presence of hydrocarbons using field based methodology should also be adopted. This should involve the use of a proprietary field kit for qualitatively detecting a range of hydrocarbons (oils, fuel etc.) in water. It should be used by a competent, experienced water sampling operative. Should hydrocarbons be detected in groundwater, further sampling and laboratory testing will be required. All monitoring results should be recorded. Should monitoring indicate a significant deviation from established baseline characteristics or consecutive rounds of deteriorating conditions, sampling and testing of groundwater will be required in accordance with the analysis suite listed below and a review of potentially contaminating activities and mitigation measures conducted. It is recommended that as a minimum a full analysis suite is conducted on samples collected prior to and after drilling/installation/testing operations and quarterly (with a minimum of one round) during drilling. It is recommended to use the following groundwater chemistry laboratory analysis suite: •

TRH + Silica Gel Clean Up (i.e. TPH);

•

BTEX (Benzene, Toluene, Ethlbenzene, Xylenes);

•

Napthalene;

•

PAHs;

•

Dissolved Metals (Al, As, Ba, B, Cd, Cr, Cr6+, Cu, Fe, Pb, Li, Mn, Ni, Se, Ag, Zn);

•

Total Nitrogen; and

•

pH.

The following additional analytes should be tested for in any boreholes hydraulically down gradient of toilet facilities and effluent storage areas and treatment plant: •

E.coli

•

Ammonia Chapter 8 – Environmental and Social Management and Monitoring Plan 13

•

Nutrients

Assessment Criteria The recommended assessment criteria are outlined in Table 8-5 below. The assessment criteria were selected based upon the following procedure: •

Currently, only limited groundwater data is available and it is not known if groundwater conditions fluctuate seasonally or due to other factors. Consequently, it is recommended that further samples are collected following installation of new monitoring bores and a review baseline data in relation to ANZECC guidelines conducted;

•

It is noted that exceedances of the ANZECC guidelines are already present in the groundwater tested from the airstrip and hot springs area, primarily due to the mixing of geothermal brines with percolated rainwater. The objective of the monitoring programme is to give early indication of any significant deterioration in existing groundwater conditions which may be the result of drilling or well operations. Where max baseline concentrations in hot springs and hot groundwater samples exceed ANZECC guidelines (95% protection of freshwater species, 95% protection of marine water species and recreational water quality criteria for primary contact), the max baseline concentration was selected as the trigger value. As noted above these values were based on limited data and should be confirmed when initial baseline data from the new monitoring wells is available; and

•

Where baseline concentration is less than ANZECC concentration the most stringent ANZECC water quality criteria was selected.

Chapter 8 – Environmental and Social Management and Monitoring Plan 14

Table 8-5 Groundwater Quality Assessment Criteria Analyte

Units

Ecological Trigger Value

Method of Selection

TPH (C10-C36)

µg/L

6000

Based upon Dutch Intervention Guidelines, 2009, Annex, Table 1, for Mineral Oil

Benzene

µg/L

ANZECC Water quality guidelines for recreational purposes

Toluene

µg/L

Ethylbenzene

µg/L

m/p Xylene

µg/L

200

ANZECC Freshwater 95% Protection Trigger Level

o-xylene

µg/L

350

ANZECC Freshwater 95% Protection Trigger Level

Naphthalene

µg/L

ANZECC Freshwater 95% Protection Trigger Level

Total PAH

µg/L

Max hot spring sample concentration (60%ile concentration of Hot groundwater samples)

Aluminium, Al

µg/L

ANZECC Freshwater 95% Protection Trigger Level

Arsenic, As

µg/L

Max hot spring sample concentration

Barium, Ba

µg/L

790

Max hot spring sample concentration

Boron, B

µg/L

8800

Max hot spring sample concentration

Cadmium, Cd

µg/L

0.2

ANZECC Freshwater 95% Protection Trigger Level

Chromium, Cr

µg/L

ANZECC Marine Water 95% Protection Trigger Level for CrVI. When Total Cr exceeds trigger level, further testing for CrVI should be undertaken.

Cobalt, Co

µg/L

ANZECC Marine Water 95% Protection Trigger Level

Copper, Cu

µg/L

1.3

ANZECC Marine Water 95% Protection Trigger Level

Iron, Fe

µg/L

1000

Max hot spring sample concentration

Lead, Pb

µg/L

3.4

ANZECC Freshwater 95% Protection Trigger Level

Lithium, Li

µg/L

Determine Trigger Level from monitoring data collected prior to Exploration Phase

Manganese, Mn

µg/L

170

Max hot spring sample concentration

Mercury

mg/L

ANZECC Water Quality Guidelines for recreational purposes

Nickel, Ni

µg/L

Max groundwater sample concentration

Selenium, Se

µg/L

ANZECC Freshwater 95% Protection Trigger Level

Zinc, Zn

µg/L

ANZECC Freshwater 95% Protection Trigger Level

Total Nitrogen

mg/L

0.35

Target contaminant is Ammonia but due to potential for ammonia to oxidise in time taken to transport samples to Australia, Total Nitrogen should be analysed. ANZECC Freshwater Protection of Slightly disturbed ecosystems in Tropical Australia (wetlands)

6.0-8.0

ANZECC Freshwater Protection of Slightly disturbed ecosystems in Tropical Australia (wetlands)

Chapter 8 – Environmental and Social Management and Monitoring Plan 15

Table 8-5 should be reviewed with consideration to the new baseline data collected prior to the exploration phase. The trigger levels for As, Ba, B, Fe, Mn and Ni should be updated to the 90 percentile concentration (or an appropriate alternative statistical criteria) for the combined dataset. Surface water monitoring The surface water monitoring should be reviewed prior to the exploration phase in order to confirm appropriate sampling locations, sampling frequency, analyte testing and trigger values. The sampling methodology and management actions to respond to any trigger value exceedances should also be set. Sampling Locations The sampling locations should replicate the baseline surface water sampling locations for the Namot, Koloblob, Tanarua and Savaki watercourses (see Surface and Ground Water Technical Report, ESIA SLRb, 2014). Samples should also be collected from wetland areas down gradient of the hot springs. Schedule Surface water monitoring should be conducted prior to the exploration phase to establish further baseline data. Where construction works for the drilling and construction phases involve work up gradient of the airstrip then surface water monitoring should be conducted on a quarterly basis during these works. Surface water monitoring should also be undertaken after any significant spill incident. Sampling should be conducted at the closest appropriate location down gradient location of the spill area and at the standard sampling location within the receiving watercourse (refer to SLRb, 2014, Figure A1, Appendix A 1) during the first rainfall event which produces flow after the spill event. No surface water monitoring is deemed to be required during the operational phase unless operational impacts have occurred. Surface water monitoring should be conducted during, or within two (2) hours of a rainfall event which generates flow in the watercourse. Flow was observed to occur in the watercourses after approximately 25 to 30 mm of rainfall. Depending on soil moisture levels prior to a rainfall event, approximately 50 mm of rainfall may be required to generate flow at the sampling locations. Therefore it is recommended that surface water sampling be planned in advance for days when greater than 50 mm of rainfall is forecast. This is particularly relevant during the drier months between July and October where a heavy rainfall event may occur but runoff may be limited as a result of the preceding dry conditions. Testing and Analysis It is recommended to use the following surface water chemistry laboratory analysis suite: •

TRH + Silica Gel Clean Up (i.e. TPH);

•

BTEX (Benzene, Toluene, Ethlbenzene, Xylenes);

•

Napthalene;

•

PAHs;

•

Total Metals (Al, As, Ba, B, Cd, Cr, Cr6+, Cu, Fe, Pb, Li, Mn, Ni, Se, Zn);

•

Ammonia; and

•

pH.

Chapter 8 – Environmental and Social Management and Monitoring Plan 16

Assessment Criteria The recommended assessment criteria are outlined in Review baseline data in relation to ANZECC guideline criteria for 95% protection of freshwater species; •

Where max baseline concentration in the watercourse samples exceeds the ANZECC guideline criteria for 95% protection of freshwater, max baseline concentration was selected as the trigger value;

•

Where baseline concentration is less than the ANZECC guideline criteria for 95% protection of freshwater the ANZECC criteria was selected; and Where no ANZECC criteria were available, appropriate alternative criteria was selected.

•

The assessment criteria in Table 8-6 were selected based upon the following procedure: •

Review baseline data in relation to ANZECC guideline criteria for 95% protection of freshwater species;

•

Where max baseline concentration in the watercourse samples exceeds the ANZECC guideline criteria for 95% protection of freshwater, max baseline concentration was selected as the trigger value;

•

Where baseline concentration is less than the ANZECC guideline criteria for 95% protection of freshwater the ANZECC criteria was selected; and

•

Where no ANZECC criteria were available, appropriate alternative criteria was selected.

Chapter 8 – Environmental and Social Management and Monitoring Plan 17

Table 8-6 Surface Water Quality Assessment Criteria Analyte

Units

Ecological Trigger Value

Method of Selection

TPH (C10-C36)

µg/L

6000

Based upon Dutch Intervention Guidelines, 2009, Annex, Table 1, for Mineral Oil

Benzene

µg/L

950

ANZECC Freshwater 95% Protection Trigger Level

Toluene

µg/L

Ethylbenzene

µg/L

m/p Xylene

µg/L

200

ANZECC Freshwater 95% Protection Trigger Level

o-xylene

µg/L

350

ANZECC Freshwater 95% Protection Trigger Level

Naphthalene

µg/L

ANZECC Freshwater 95% Protection Trigger Level

Total PAH

µg/L

Aluminium, Al

µg/L

ANZECC Freshwater 95% Protection Trigger Level

Arsenic, As

µg/L

ANZECC Freshwater 95% Protection Trigger Level

Barium, Ba

µg/L

Max concentration of watercourse samples

Boron, B

µg/L

110

Max concentration of watercourse samples

Cadmium, Cd

µg/L

0.2

ANZECC Freshwater 95% Protection Trigger Level

Chromium, Cr

µg/L

Max concentration of watercourse samples.

Cobalt, Co

µg/L

Max concentration of watercourse samples

Copper, Cu

µg/L

1.3

ANZECC Marine Water 95% Protection Trigger Level

Iron, Fe

µg/L

2600

Max concentration of watercourse samples

Lead, Pb

µg/L

3.4

ANZECC Freshwater 95% Protection Trigger Level

Lithium, Li

µg/L

Determine Trigger Level from monitoring data collected prior to Exploration Phase

Manganese, Mn

µg/L

1900

ANZECC Freshwater 95% Protection Trigger Level

Mercury

µg/L

0.00011

ANZECC Freshwater 95% Protection Trigger Level

Nickel, Ni

µg/L

Max concentration of watercourse samples

Selenium, Se

µg/L

ANZECC Freshwater 95% Protection Trigger Level

Zinc, Zn

µg/L

ANZECC Freshwater 95% Protection Trigger Level

Total Nitrogen

mg/L

0.35

6.0-8.0

ANZECC Freshwater Protection of Slightly disturbed ecosystems in Tropical Australia (wetlands)

Trigger levels adopted in Review baseline data in relation to ANZECC guideline criteria for 95% protection of freshwater species; •

Where max baseline concentration in the watercourse samples exceeds the ANZECC guideline criteria for 95% protection of freshwater, max baseline concentration was selected as the trigger value;

•

Where baseline concentration is less than the ANZECC guideline criteria for 95% protection of freshwater the ANZECC criteria was selected; and

Chapter 8 – Environmental and Social Management and Monitoring Plan 18

â&#x20AC;˘

Where no ANZECC criteria were available, appropriate alternative criteria was selected.

Table 8-6 should be reviewed with consideration to the new data collected prior to the exploration phase. Trigger levels for Ba, B, Cr, Co, Fe, and Ni should be updated to the 90 percentile concentration (or appropriate alternative statistical criteria) for the combined dataset. 8.5.3

Air Quality and Greenhouse Gas Emissions

Air Quality Relevant management and monitoring strategies to avoid, minimise the air quality impacts of the project are discussed below and summarised in Table 8-7. Management The Project will apply good working practices to minimise potential generation and propagation of dust through a range of suitable mitigation techniques such as water suppression (if required), covering or enclosed storage of aggregates (including topsoil and sand) where practical, and limiting dust generation activities in high winds or specific wind directions, if required. Local residents will be consulted as appropriate, particularly prior to well testing procedures to inform them of potential odour emissions and the expected duration of such activities. Monitoring Safety monitoring systems with warning alarms for high emissions of potentially hazardous gases, including H2S, will be incorporated as part of the drilling set-up. As well as providing direct safety measures in the event of a blowout, the control measures will highlight potential H2S emissions issues which could arise during well testing. An appropriate early warning and notification system will be developed for use following detection of any dangerous H2S emissions. During well testing, a mechanism for complaints regarding odour will be available to the local community, and due regard given to any issues raised. All complaints will be considered and if required, investigated, with the findings and controls put in place communicated to the complainant. Specific monitoring requirements around emissions of H2S and other minor pollutants such as Hg, As, NH3, and F , may be required during operation, however this will not be known until the geothermal reservoir chemistry is known and the final plant engineering design is undertaken.

Chapter 8 â&#x20AC;&#x201C; Environmental and Social Management and Monitoring Plan 19

Table 8-7 Management and Monitoring Plan – Air Quality Air Quality Aspect

Mitigation Measures

When

Who

Objective

To reduce downwind air quality impacts of the project, e.g. the potential for odour nuisance impacts, dust nuisance impacts and/or health-related impacts

Targets

For air quality management to be appropriately integrated into all phases of construction and design.

Air Quality Management

Apply good working practices to minimise dust emissions from earthworks and construction activities through mitigation techniques such as water suppression (if required), covering or enclosed storage of aggregates (including topsoil and sand) where practical, and limiting dust generation activities in high winds or specific wind directions, if required.

Exploration and production drilling and construction of power plant

Construction Contractor with advice from Site Superintendent

Air Chemistry

Review specific monitoring requirements around emissions of H2S and other minor pollutants such as Hg, As, NH3 and F, following analysis of the geothermal reservoir chemistry.

Exploration and production drilling

Site Superintendent

Dust

Assess through routine checks, the generation of dust and determine if dust suppression is required

Construction

Site Superintendent

Air Quality Management

Consult with local residents as appropriate, particularly prior to well testing procedures to inform them of potential odour emissions and the expected duration of such activities.

Exploration and production drilling

Site Superintendent

Monitoring and Review

Perform regular maintenance on diesel-powered fixed and mobile equipment as per the manufacturer’s specifications to ensure emissions are minimised. Perform routine maintenance checks on wellheads and blowout prevention equipment to check they are in good condition.

Exploration and production drilling

Construction Contractor with advice from Site Superintendent

Greenhouse Gas Relevant management and monitoring strategies to minimise the impacts of greenhouse gas emissions from the project are outlined below and summarised in Table 8-8. Monitoring Greenhouse gas emission inventories will be compiled on an ‘as required’ basis. Systems will be implemented as part of the operational reporting procedures to record the relevant activity data (i.e. fuel use, venting volumes and compositions etc.) to assist in the accurate estimation of GHG emissions from the Project. Table 8-8 Management and Monitoring Plan – Greenhouse Gas Greenhouse Gas Aspect

Mitigation Measures

When

Who

Objective

To minimise emissions of greenhouse gases associated with the project.

Targets

For greenhouse gas minimisation to be appropriately integrated into all phases of construction and design.

Greenhouse Gas

Undertake an efficient drilling campaign that minimises fuel consumption and associated GHG emissions.

Exploration and production drilling

Construction Contractor with advice from the Site Superintendent

Greenhouse Gas

Manage material requirements and deliveries, and coordinate material deliveries with shift changes. Use renewable options such as solar water heating and photovoltaic lighting where practical.

All stages

Construction Contractor with advice from the Site Superintendent

Monitoring and Review

Systems will be implemented as part of the operational reporting procedures to record the relevant activity data (i.e. fuel use, venting volumes and compositions etc.) to assist in the accurate estimation of GHG emissions from the Project.

All stages

Site Superintendent

Chapter 8 – Environmental and Social Management and Monitoring Plan 20

8.5.4

Noise

Table 8-9 presents the mitigation, management and monitoring recommendations to minimise noise impacts from the Project. Table 8-9 Management and Monitoring Plan - Noise Noise Management and Monitoring Aspect

Mitigation Measures

When

Who

Objective

To minimise noise impacts from the Project

Targets

Implement appropriate noise control and management measures to ensure that noise emissions criteria are met during all stages of the project.

Aspect

Mitigation Measures

When

Who

Exploration

•

Monitor noise emission levels at the commencement of exploration drilling to confirm the actual levels. If the predicted sleep disturbance noise criterion exceedance is confirmed, then it is recommended that consultation with the sole affected receiver(s) take place to negotiate a mutually acceptable solution, for example, temporary relocation during exploration drilling, or provide upgrades to the affected residence to improve the acoustic insulation. Given the size of the drill rig, it would be difficult to mitigate noise emission levels at the source. Plan activities in consultation with local communities so that activities with the greatest potential to generate noise are scheduled during periods of the day that will result in least disturbance, where possible. Avoid project transportation through community areas, particularly during sensitive periods (i.e. night-time). Orient directional noise sources such that the greatest noise emissions away from the receivers.

Exploration drilling

Drilling Contractor with advice from the Site Superintendent

Orientation of directional noise sources such that the greatest noise emissions are oriented away from the receivers. Consult with the affected receiver(s) to negotiate a mutually acceptable solution, for example, temporary relocation during the production drilling works at the applicable well locations, or provide upgrades to the affected residence to improve the acoustic insulation.

Production drilling

Drilling Contractor with advice from the Site Superintendent

Orientation of vents such that greatest noise emissions are oriented away from the receivers. Consider discharge into a portable well separator (silencer) to minimise noise. Where venting and well testing activities cannot be avoided during the night-time period, advance notice should be provided to the affected Airstrip receiver(s) and a mutually acceptable solution should be negotiated to preserve the night-time amenity.

Exploration and production drilling

Drilling Contractor with advice from the Site Superintendent

•

• Production drilling

• •

Well testing

• • •

Well bleeding

•

Advising community prior to well bleeding noise events to ensure awareness of the works programme amongst affected residents.

Exploration and production drilling

Drilling Contractor with advice from the Site Superintendent

Construction

•

Regular/routine community consultation/communication to ensure awareness of works programme amongst affected residents.

Construction

Construction Contractor with advice from the Site Superintendent

Chapter 8 – Environmental and Social Management and Monitoring Plan 21

Aspect

Mitigation Measures

When

Who

Rupture disk

•

Operation

Site Superintendent

8.5.5

Prior to commissioning of the geothermal power plant, all noise sensitive receivers should be educated as to the nature of this event to allay fears should it occur, particularly during the night-time period. The key information to convey should include: - The rupture disk blow is typically a rare event and is a fail-safe system incorporated into the plant design. - It cannot be scheduled and therefore could potentially occur during the night-time period. - The noise associated with the rupture disk event is relatively high compared to normal operational noise from the geothermal power plant. - Noise modelling indicates that noise from a rupture disk blow at all noise sensitive receiver locations is well below internationally recognised health and safety noise limits with respect to protection against hearing damage.

Landscape and Visual Amenity

Table 8-10 details mitigation measures and management recommendations to minimise visual landscape impacts from the Project. Table 8-10 Management and Monitoring Plan - Landscape and Visual Amenity Landscape and Visual Impact Mitigation and Control Aspect

Mitigation Measures

When

Who

Objective

To minimise impacts on the visual landscape environment around the study area

Targets

Implement appropriate landscape management measures to ensure that the visual impact of the project is minimised

Vegetation Clearing

•

Ensure site selection takes into account existing vegetation to maximise any existing cleared or disturbed areas and minimise additional required clearing Minimise clearing of vegetation adjacent to the laydown area to maintain shielding from the Ring Road Revegetate all areas not required for next phased post exploration drilling or construction. Rehabilitate with appropriate species for existing land-use.

Exploration and production drilling Construction

Drilling Manager Site Superintendent

Avoid crossing watercourses and gullies and incorporate natural contours in the drill pad design Apply appropriate erosion and sediment controls to ensure no adverse down slope visual impacts from offsite sediment loss

Exploration and production drilling Engineering Design

Engineering Manager

Ensure lighting for exploration and production drilling is appropriately directed to minimise night light impacts Minimise vegetation clearing to maintain as much visual screening as possible from lighting

Exploration and production drilling Engineering Design

Drilling Manager Site Superintendent

• • Earthworks

• •

Lighting

• •

Chapter 8 – Environmental and Social Management and Monitoring Plan 22

Landscape and Visual Impact Mitigation and Control Aspect

Mitigation Measures

When

Who

Water Pumping Infrastructure

•

Water pump should be sited in an area or enclosure to blend into the existing environment from Epule River or Takara Landing (if required)

Construction Operation

Drilling Manager

Main track

access

•

Develop main access track to site from Ring Road heading east approximately 500 m from Site E with a right-hand turn to the eastern end of the airstrip. This will retain the vegetation shielding adjacent to the geothermal plant site alongside the Ring Road. Note that no new tracks will be created until the decision is made to proceed with production drilling.

Exploration and production drilling Engineering Design

Engineering Design Manager

Geothermal plant and well testing

•

Implement consultation strategy to inform community of the expected presence of steam generated from the wells and/or geothermal plant, causing plumes of steam visible from villages and potentially surrounding communities

Construction Operation

Site Superintendent

Permanent structures for geothermal plant

•

Colours and materials to be used in the design of buildings and equipment should be selected to blend into the existing environment, where possible

Engineering Design Operation

Engineering Design Manager

8.5.6

Terrestrial and Aquatic Ecology

Table 8-11 presents the mitigation, management and monitoring recommendations to minimise impacts from the Project on terrestrial and aquatic ecology. Table 8-11 Management and Monitoring Plan - Terrestrial and Aquatic Ecology Management and Monitoring Plan - Terrestrial and Aquatic Ecology Aspect

Mitigation Measures

When

Who

Objective

To maintain the existing ecological function of habitats impacted while minimising clearing to protect existing species populations. Implement appropriate ecological management measures to limit impacts to the Megapod, existing habitat and plant populations.

Targets

• • •

Avoid direct loss of a Megapod from direct or indirect Project activities Avoid any unnecessary vegetation clearing. Rehabilitation ground cover of at least 75% after 12 months following reinstatement of soils and vegetation establishment, with <25% weed species.

Chapter 8 – Environmental and Social Management and Monitoring Plan 23

Flora Aspect

Mitigation Measures

When

Who

Permanent loss of vegetation (Zone A and B production wells)

•

Compensatory actions (negotiated with landowners) if any productive food or timber trees permanently removed. Geodynamics would work with the affected garden owners, community leaders and Government to minimise loss of land suitable for cropping, compensate for any loss of crops or productive land and seek to arrange relocation to (or establishment of) alternative gardens. Seeds and other propagules (e.g. cuttings) of forest trees and culturally significant plant species (e.g. timber, food and medicinal plants), should be collected prior to disturbance. Propagation of collected seed and propagules for replanting during rehabilitation works.

Exploration and production drilling

Local community/ Local Ecologist

Cycas circinnalis (cycad) flagged and fenced during clearing for saltwater pipeline (north of Takara Landing village). Individuals of Sandalwood flagged and protected during clearing for access track to Zones A and B. Specimens of important timber and food trees, flagged and avoided if possible. Compensatory actions negotiated with landowner if any mature productive trees are removed (as above).

Exploration and production drilling

Local community/ Local Ecologist

Any individuals of Santalum austro-caledonicum (Sandalwood) which have been planted within gardens should be avoided and protected if possible during clearing and construction for the access track from the proposed power station site to Zones A and B. Mature specimens of important timber and food trees should be avoided and protected where possible, including Gyrocarpus americanus (Kenutri), Cocos nucifera (coconut), Metroxylon warburgii (Natakura) and Mangifera indica (Mango). Compensatory actions should be negotiated with the landowner if any mature productive trees are required to be removed.

Exploration and production drilling

Local community/ Local Ecologist

Seeds and other propagules of forest trees and culturally significant plant species (e.g. timber, food and medicinal plants) collected prior to disturbance. Propagation of collected seed for replanting during rehabilitation works Protective temporary fencing should be installed, in order to protect any trees or plants which have been identified as significant and worthy of retention during clearing.

Pre-drilling and during drilling (as seeding occurs)

Local community / Local Ecologist

•

Rehabilitation of disturbed areas to pre-existing vegetation type and condition (or better), using: - Natural regeneration techniques - Broadcast of seed - Planting of tubestock (only where resilience is low and/or regeneration is unsuccessful) - Mulching, erosion controls and surface water management as per MMP.

Postexploration and postconstruction

Site Superintendent / Local Ecologist

•

Rehabilitated sites should be monitored for weed germination and development for at least one year after completion of the rehabilitation. Target weeds include: Lantana camara, Merremia peltata, Mikania micrantha, Mimosa pudica, Stachytarpheta urticaefolia and Paspalum conjugatum.

Construction and Operation

Site Superintendent / Local Ecologist

•

• Loss of culturally significant plants

• • • •

Loss of significant garden and timber plants

•

Temporary vegetation removal and disturbance

Weed invasion

• • •

Chapter 8 – Environmental and Social Management and Monitoring Plan 24

Fauna Aspect

Mitigation Measures

When

Who

Loss of Megapode nest sites (breeding activity)

•

Pre-clearing surveys for the threatened Vanuatu Megapode and its nesting sites. Baseline monitoring (including camera surveillance) of nest sites (establish monitoring sites prior to drilling).

Exploration and production drilling

Local Ecologist

Removal of or reduction in available Megapode foraging habitat

•

Rehabilitation of exploration track and drill pads (C and D) to return Megapode foraging habitat to its current condition as far as practical.

Exploration and production drilling

Site Superintendent / Local Ecologist

Removal of habitat trees (esp. birds an bats)

•

Pre-clearing surveys and flagging of habitat trees along access track and within drill pad sites. Tree-felling protocol, with ecologist or wildlife handler present during felling of habitat trees (to rescue and release any captured animals. Avoid flagged trees where possible.

Exploration and production drilling

Local Ecologist

Fauna injury or mortality (vehicle collisions)

• •

Set speed limits within construction site, with appropriate speed signs. Initial site briefing for construction staff on presence of species of conservation and cultural significance.

Construction

Site Superintendent / Local Ecologist

•

Design of the saltwater pipeline inlet and the freshwater extraction point on the Epule River to avoid fish entrapment. Inspections of the saltwater pipeline inlet on the Epule River for fish entrapment (and adaptive response as required).

Detailed design; exploration and production drilling

Project Engineer

•

• •

Aquatic Fish entrapment and turbidity at Epule River intake

•

Ecological Monitoring Roles Implementation of the mitigation measures listed above will require the follow project roles listed in Table 8-12. Table 8-12 Project roles for Ecological Monitoring Program Role

Requirements and responsibilities

When

Local Ecologist

• • • • • •

Suitably qualified ecologist. Design and oversight of ecological monitoring programme. Sign-off on monitoring progress reports and field data collected. Based in Vanuatu, preferably Efate. Assist local community with seed and propagule collection Conduct monitoring inspections, collect site data, and provide regular reports to Local Ecologist, as per mitigation measures listed in Table 8-11.

All project phases

Local community

• • •

Seed and propagule collection Plant propagation activities Assist with planting and garden establishment as part of rehabilitation works

Prior to, during and after exploration and production drilling

Site Superintendent

•

Construction program, including installation of mitigation measures (as applicable) listed in MMP Site safety and coordination of ecological monitoring activities

Drilling and construction phases

•

Chapter 8 – Environmental and Social Management and Monitoring Plan 25

Role

Requirements and responsibilities

When

Project Engineer

•

Detailed design; Exploration and production drilling

8.5.7

Design of freshwater pipeline offtake (Epule River) and pumping regime with fish entrapment avoidance measures

Marine Ecology

Table 8-13 presents the mitigation, management and monitoring recommendations to minimise impacts from the Project on marine ecology. The seawater pipeline cooling mitigation measures are only applicable if the seawater cooling options is selected for the geothermal plant. The mitigation measures for ocean vessels utilising Takara Landing are only an option if some land-based transport is not feasible. The preferred and expected option is land-based transport. Table 8-13 Management and Monitoring Plan – Marine Ecology Marine Ecology Management and Monitoring Aspect

Mitigation Measures

When

Who

Objective

To eliminate or minimise impacts on the marine environment.

Targets

Implement appropriate mitigation and management measures to ensure that the impacts of the project on the marine environment are minimised.

Construction and decommissioning of a seawater pipeline and intake and discharge system.

•

Select a pipeline alignment that minimises the width of pipeline corridor to limit physical damage to outer fringing reef habitat. Select sandy bottom substrates where possible during the route selection. Reduce the construction width within the foreshore and coral reef area to a minimal to reduce physical disturbance. Use sediments curtains to contain sediment during marine construction. Periodically monitor the health of corals during the construction and operational phase.

Construction and decommissioning

Construction Manager Site Superintendent

• • • •

Entrapment of marine fauna in seawater pipeline intake system.

• •

Design seawater intake to minimise intake velocity. Install a velocity cap that directs intake currents horizontally rather than vertically.

Construction and operations

Construction Contractor

Increase in sea temperature surrounding the seawater cooling system discharge pipeline, causing stress and/or bleaching of corals (if required)

•

During engineering design of the plant cooling option, take into account the potential environmental risks associated with the seawater cooling option. If a seawater cooling system is implemented locate the discharge pipeline in an area of deep water to maximise dilution. Implement a study to collect current and wave action data to develop a hydro-dynamic dispersion model. Locate diffuser at sufficient distance from coral reefs to minimise thermal effects. Design pipeline and diffuser to maximise thermal dilution and minimise the spatial extent of near-field mixing. Monitor water temperatures around the outfall during operations. Regularly monitor the health of corals during construction and operational phase.

Construction and operations

Design Engineer

•

• • • • •

Chapter 8 – Environmental and Social Management and Monitoring Plan 26

Marine Ecology Management and Monitoring Aspect

Mitigation Measures

When

Who

Discharge of geothermal fluid during exploration and production drilling post well test (if option of re-injection is not feasible)

•

Geothermal fluid settled within lined pond to reduce temperature to ambient prior to discharge. Discharge under controlled conditions for volume, velocity and location according to below: - Design discharge pipe floating at surface with outfall pipe to within >2m below the surface, >50m from the end of the reef drop-off. - Design for high velocity discharge to aid mixing. - Consider re-running the discharge modelling with updated geothermal chemistry and the preferred pipe design.

Exploration and production drilling

Drilling Contractor

Discharge of containments from vessels running aground

•

Develop and implement a procedure to manage the environmental risks. Use qualified skippers familiar with the local conditions.

All phases

Site Superintendent

Increased sediment runoff from the Project area into adjacent marine waters, affecting corals and seagrass

•

Use erosion and sediment control systems in accordance with MMP (refer Table 8-2).

All phases

Site Superintendent

•

Develop and implement environmental management plans to control the release of contaminants and minimise the likelihood of spills. Store hazardous substances in appropriate containers. Utilise spillage areas to prevent spill from being distributed into adjacent marine systems.

All phases

Site Superintendent

Monitor the extent and severity of plumes during works and modify. Use sediments curtains during construction activities in marine environments. Time works to avoid sensitive periods (e.g. coral spawning).

Drilling and construction

Site Superintendent

•

Develop boat standard procedure, identifying key anchoring areas away from sensitive habitats. Utilise experienced and qualified skippers.

Drilling, construction and decommissioning

Site Superintendent

•

Select as deep a site as possible away from sensitive habitats and utilise barges with their own ramps where possible. Minimise the extent of works.

Drilling and construction

Site Superintendent

Operations

Site Superintendent

Reduction in Water Quality due to contaminant runoff from the Project site. Sediment plumes and associated declines in water quality associated with the construction activities. Damage to corals from vessel anchoring or accidental grounding Disturbance to intertidal and shallow coastal habitats through construction of a barge ramp. Monitoring Plan (seawater cooling, if required)

•

• • • • •

•

A marine resources monitoring plan would only be necessary of the seawater cooling option is implemented. In this case the monitoring plan would include the following elements: • Periodic habitat mapping • Regular coral health mapping • Regular water quality monitoring of discharge • Regular water quality monitoring of receiving environment • Realtime monitoring of discharge water temperatures • Ongoing monitoring of currents and tidal patterns.

Chapter 8 – Environmental and Social Management and Monitoring Plan 27

8.5.8

Social, Cultural Heritage and Stakeholder and Community Consultation

Table 8-14 presents the mitigation measures and management recommendations to minimise social and cultural heritage impacts from the Project, and to continue the stakeholder and community consultation throughout the Project phases. A range of measures as set out in Table 8-14 will be implemented during exploration to avoid, manage or mitigate potential impact, in accordance with IFC Performance Standard 1 Objective (June 2012) which states: •

To promote improved environmental and social performance of clients through the effective use of management systems.

•

To ensure that grievances from affected communities and external communications from other stakeholders are responded to and managed appropriately.

•

To promote and provide means for adequate engagement with affected communities throughout the project cycle on issues that could potentially affect them and to ensure that relevant environmental and social information is disclosed and disseminated.

These objectives are considered fundamental to the approach Geodynamics will put in place through all project phases to ensure social-economic and cultural heritage risks are minimised. They form the basis of mitigation measures as described below in Table 8-14. Geodynamics recognise that keeping the community up-to-date and engaged with the Project is vital for aligning with community values and securing long-term community support. Geodynamics recognise that the general community will have an interest for work in their community, despite exploration, construction and operational phase’s impacts being isolated to particular geographic locations. Table 8-14 Management and Monitoring Plan – Social, Cultural Heritage and Stakeholder and Community Consultation Communication and Consultation Plan Aspect

Mitigation Measures

When

Who

Objective

• •

All Phases

Project Community Representative

All Phases

Project Community Representative

• • •

To keep stakeholders informed of key Project activities To consult and educate stakeholders (especially gender dimensions) on all aspects of the project To generate and document broad community support for the Project To improve communications between interested parties and provide mechanism for inter-agency coordination to support Community Benefits Program To scribe formal complaint submittal and resolution mechanisms

• To ensure disclosure of project documents and activities throughout all phases of the project

Targets

• • •

Community informed of project activities and key events nuisance prior to them occurring Emerging community issues are proactively managed Community complaints responded to and minimised, where possible

• No community safety incidents

Chapter 8 – Environmental and Social Management and Monitoring Plan 28

Communication and Consultation Plan Aspect

Mitigation Measures

When

Who

Land Access

•

Community Benefit Program and Community Benefits Trust or equivalent structures established (including potential local employment opportunities) Agreed compensation for legally determined Kastom land owner. Community Complaints / Grievance mechanism Implemented Prior to siting of exploration infrastructure (and clearing) consult with Takara Chiefs/Community Leaders. Consultation with sensitive receivers (e.g. households near airport) in accordance with MMP - discuss options for resettlement or noise attenuation. Undertake consultation with local communities about Project activities during pre-exploration including discussion about potential impacts and mitigations. These should include as minimum: - Community meetings in Nakamal - Meetings with Women’s group - Briefings with police, schools, health centre and local tourist operators - Community Updates/flyers/posters in local language

Post ESIA

Site Superintendent and Project Community Representative

Develop a workforce induction process that includes cultural awareness training for workers. This cultural awareness training will be developed in consultation with Takara Chiefs/Community leaders. Develop a workforce training process that includes Workers Code of Conduct and will cover: - Drug and alcohol management (including Kava) - Camp access and hours of movement outside of camp - Cultural awareness and appropriate local interaction - Restricted leisure activities (e.g. fishing, swimming) if applicable - Noise management. Implement Emergency Response Plan. Limit movement of machinery and heavy equipment on Sunday during church times, where possible.

Planning

Project Community Representative

• • • •

•

Pre- Exploration and Production Drilling

•

• •

• Implement driver awareness and education training and travel in peak school hour start and finish times minimised.

Exploration and Production Drilling

•

Consultation with sensitive receivers (e.g. households near airport) in accordance with MMP - discuss options for resettlement or noise attenuation.

Exploration and Drilling

Project Community Representative

Construction

•

Consultation with sensitive receivers (e.g. households near airport) in accordance with MMP - discuss options for resettlement or noise attenuation Undertake consultation as per exploration and production drilling.

Construction and Production Drilling

Project Community Representative Construction Manager

Undertake consultation with local communities about Project activities during operation phase including discussion about potential impacts and mitigations. These should include as minimum: - Community meetings in Nakamal - Meetings with Women’s group - Briefings with police, schools, health centre and local tourist operators - Community Updates/flyers/posters in local language

Operations

Project Community Representative Site Operations Manager

• Operations

•

Chapter 8 – Environmental and Social Management and Monitoring Plan 29

Communication and Consultation Plan Aspect

Mitigation Measures

When

Who

Monitoring and Review Community Safety

•

All phases (every six months for first two years of project and then annually)

Independent Auditor

Monitoring and Review Community Safety

Analyse effectiveness of actions by reviewing: - Number of near miss reports and traffic incidents on public roads; - Number of security/safety incidents reported by local community, and attributed to Geodynamics employees; and - Number of complaints or grievances.

Monthly

Project Community Representative

Monitoring and Review Issue Management and Grievances

•

Monthly

Project Community Representative

Monitoring and Review Worker Behaviour

Audit Geodynamics induction/education programs to ensure 100% of employees and contractors are informed of: • Workforce Code of Conduct and Cultural Awareness Program

Weekly

Project Community Representative

8.5.9

•

• •

All complaints provided to the Project must be met with a respectful response to the compliant within an acceptable period Survey with local community to determine: - Perceptions of safety and security (including antisocial behaviour) and effectiveness of plans/programs implemented by Geodynamics; - Awareness of increased traffic on coastal Ring Road; and - Attitudes towards workforce interaction with the local community.

Develop a complaints register to log, collate and track all complaints made and the responses given over the life of the Project Review response times and actions taken in relation to community complaints and grievances Monitor specific complaints and grievances and mechanism to address recurring community issues

Waste and Hazardous Substances

Table 8-15 presents the mitigation measures and management recommendations to minimise impacts from hazardous substances utilised during the Project. Table 8-15 Management and Monitoring Plan – Hazardous Substances Hazardous Substances Management and Monitoring Aspect

Mitigation Measures

When

Who

Objective

To minimise the potential environmental impacts of hazardous substances associated with the Project.

Targets

For appropriate management of hazardous substances to be incorporated into all phases of the Project.

Management

Hazardous substances will be controlled according to the Geodynamics Chemical Safety Guide (Geodynamics, 2012). This will ensure the following information is readily available to all employees and representatives for all hazardous substances: • A register of hazardous materials and dangerous goods. • Material Safety Data Sheets (MSDSs) compiled in accordance with the approved code of practice for the preparation of MSDS. • Labels on containers in accordance with the approved code of practice for the labelling of workplace substances. • Reports prepared as a result of workplace assessments • Results of health surveillance programs provided medical confidentiality can be maintained. • Any other relevant information.

All stages

Site Superintendent

Chapter 8 – Environmental and Social Management and Monitoring Plan 30

Hazardous Substances Management and Monitoring Aspect

Mitigation Measures

When

Who

Training

Inductions and training will be provided to all employees whose work potentially exposes them to hazardous materials; and to all employees supervising others who are using hazardous materials

All stages

Site Superintendent

Storage

Hazardous substances will be stored at the laydown area and on-site in accordance with the Geodynamics Chemical Safety Guide (Geodynamics, 2012) as follows: • MSDSs must be available at the point of use. • Hazardous substances storage containers which are unsafe (eg damaged or leaking etc) will be clearly marked as “out of service” to prevent their use until they are disposed of. • Appropriate bunding will be used where there is a risk of leaks, spills or loss of containment, including at - All tanks and other vessels containing hazardous materials - Any other areas where spills may occur, such as fuelling stations, decanting areas and drum storage areas. • Level protection, including automatic trips, to prevent overflows during the filling of tanks. • Regular inspections of hazardous substance storage areas for spills, leaks and potential hazards. Deficiencies and incidents must be recorded and immediately reported to the work area manager. • Storage will be risk assessed in consultation with HSE. • Storage areas will be secured (or manned) where practical to avoid unauthorised access and potential tampering.

All stages

Site Superintendent

Use

Hazardous substances will be used and handled in accordance with the Geodynamics Chemical Safety Guide (Geodynamics, 2012) as follows: • Standard Operating Procedures (SOPs) must be prepared and implemented including (but not limited to) the following: - Incompatibility of substances when mixed (ie fire or explosion risk) - Precautions for pouring, decanting or transferring substances - Spill response procedures - Personal protective equipment (PPE) to be used with the substance • Operations requiring assessment by personnel with appropriate chemical qualifications prior to work commencing.

All stages

Site Superintendent

Chapter 8 – Environmental and Social Management and Monitoring Plan 31

Hazardous Substances Management and Monitoring Aspect

Mitigation Measures

When

Who

Transport

Hazardous substances will be transported in accordance with the Geodynamics Chemical Safety Guide (Geodynamics, 2012) as follows: • Transport vehicles to be marked and carry documentation to meet the UN Transport of dangerous goods model regulations • Appropriate spill control equipment must be available in sufficient quantities for any foreseeable spills. • Appropriate firefighting equipment must be available, suitable to the substances being transported. • Any such equipment must be routinely inspected and maintained in good working order and state of readiness. • No chemicals will be accepted onto a Geodynamics site without relevant health, safety and emergency information being made available by the supplier including MSDSs complied in accordance with the approved code of practice. • Vehicles and other equipment to be turned off during fuelling operations. • Provisions will be made for the containment, collection and disposal of waste oil and spills that are generated as a result of refuelling activities. Provisions may be in the form of a bunded and impervious area, with a spill and effluent collection system. Alternatively, a portable collection sump will be placed underneath the maintenance and refuelling areas to contain any spillage and/or minor leaks.

All stages

Site Superintendent

Disposal

Refer Table 8-16.

Monitoring and review

A monitoring/auditing regime will be implemented to ensure that the Hazardous Substances Plan is being complied with, including: • hazardous substances stored in the correct location • containers are secure and water tight • storage areas are tidy and appropriate • MSDS are current and relevant • Site signage is relevant and in good condition • Hazardous Substance Register is up to date • Protective equipment is available and in good working order • Staff training is being implemented and is relevant • Excess chemicals are disposed of appropriately • Spill kits and firefighting equipment are complete and appropriate

All stages

Site Superintendent

Table 8-16 presents the mitigation measures and management recommendations to minimise impacts environmental and social impacts from waste associated with the Project.

Chapter 8 – Environmental and Social Management and Monitoring Plan 32

Table 8-16 Management and Monitoring Plan - Waste General Waste Management and Monitoring Aspect

Mitigation Measures

When

Who

Objective

To minimise the potential environmental impacts of waste associated with the Project.

Targets

To minimise and manage the amount of waste produced on site

Waste prevention

Minimise waste production though: • Ensuring items are not over packaged • Ensure construction material is not over specified • Setting up recycling systems for locally recyclable materials, where possible (Note: limited recycling in Port Villa). • Seeking feedback on minimising waste.

All stages

Site Superintendent

Training

Educate and train staff and contractors on waste minimisation and separation onsite through actions such as: • Including waste minimisation and management in site inductions • Reminders such as signage and notices • Setting targets for waste minimisation.

All stages

Site Superintendent

Storage (non hazardous waste)

Before the commencement of work, develop recycling and spill mitigation to: • Ensure materials that can be reused or recycled are separated as they are generated and placed in separate areas to prevent cross contamination • Store waste in the appropriate place once work has finished for the day • Waste signs shall be put on all waste containers and collection areas. Each sign shall be highly visible and easily seen by the person using the waste container or area.

Transport and disposal

• •

All stages

Site Superintendent

All stages

Site Superintendent

When

Who

• • • Monitoring and review

Ensure waste is transported in sealed, watertight containers. Ensure the receiving location is lawfully able to receive the waste types being transported there. Ensure the chain of custody documentation is in place and used. Ensure appropriate documentation is in place for any trans-boundary shipment of wastes. Report on total waste quantities sent to each disposal, recycling or treatment location.

A monitoring/auditing regime will be implemented to ensure that the Waste Management Plan is being complied with, including: The monthly inspection of waste collection units to check: • Efforts to minimise the amounts of water produced are being undertaken • That wastes are being separated correctly • That waste units are secure and watertight • That waste being disposed of reaches its destination and is being disposed of in accordance with local regulations • That waste has not been leaving the site inappropriately.

Hazardous Waste Management and Monitoring Aspect

Mitigation Measures

Objectives

To minimise the potential environmental impacts of hazardous waste associated with the Project

Targets

For appropriate management of hazardous waste to be incorporated into all phases of the Project

Chapter 8 – Environmental and Social Management and Monitoring Plan 33

General Waste Management and Monitoring Aspect

Mitigation Measures

When

Who

Management

•

All stages

Site Superintendent

All stages

Site Superintendent

•

• •

•

Training

If hazardous waste can’t be deposited of in Vanuatu without causing environmental harm, it will to transported to an approved facilities out of country for proper treatment and disposal. Each container containing hazardous substances shall be identified with labels and signs that comply with local and/or international labelling requirements such as capacity and type of substance being stored Hazardous wastes generated will be stored in the hazardous waste depot at the end of each working day (where they are portable) All oil and chemical spills should be cleaned up immediately with the appropriate spill equipment. Where a continuous source or leak occurs it should be safely contained, stopped when safe to do so, and then cleaned up All vehicle maintenance should be done inside garages on hardstand or a maintenance stand should be provided where all works on construction machinery can be carried out. A similar facility should be provided for all refuelling activities. Ensuring that these activities are confined to the designated areas will facilitate the control of potential pollutants Waste signs shall be put on all waste containers and collection areas. Each sign shall be highly visible and easily seen by the person using the waste container or area

workers will be trained in the correct way to handle hazardous waste and will be provided with, and required to wear, the appropriate PPE

8.5.10 Spill Response Table 8-17 presents the management and monitoring plan to ensure effective response to spills from Project activities. Table 8-17 Management and Monitoring Plan – Spill Response Spill Response Management and Monitoring Aspect

Mitigation Measures

When

Who

Objective

To minimise the potential environmental impacts of hazardous substances spills associated with the Project.

Targets

To contain, collect and dispose of waste and oil spills that are generated as part of the Project

Spill management during refuelling and refilling of equipment

Spill containment and clean up equipment will be located onsite and on vehicles transporting fuel to the well pad sites. This will include equipment for: • containing and cleaning any spill such as a shovel, broom, sandbags, booms and absorbent material. All spills will be handled with compatible materials • if material is spilt on soil, the contaminated soil will be scooped up and placed in a drum for disposal to an appropriate disposal facility • storing and disposing of spilled material such as safe containers, bags, and drums • protecting the safety of staff such as Personal Protective Equipment (PPE) • any spills should be contained, cleaned up immediately and disposed of at an approved facility. In the event of a large spill, areas of contaminated soil should be excavated and replaced with clean fill to prevent or minimise groundwater contamination, with treatment of any stormwater runoff or process water prior to disposal.

All stages

Site Superintendent

Chapter 8 – Environmental and Social Management and Monitoring Plan 34

Spill Response Management and Monitoring Aspect

Mitigation Measures

When

Who

Spill management of waste

In the event of a spill of hazardous waste during operation, spill containment and clean up equipment will be located on-site. This should include equipment for: • containing and cleaning any spill such as a shovel, broom, drain covers, sandbags, booms and absorbent material. All spills will be handled with compatible materials • storing and disposing of spilled material such as safe containers, bags, and drums • protecting the safety of staff such as PPE. Any spills will be contained and cleaned up immediately.

All stages

Site Superintendent

8.5.11 Traffic and Transport Transport to and from the Takara site will be required during all phases of the Project. Equipment, material and supplies will either be shipped to Port Vila from overseas or supplied locally. It will then be transported by road from Port Vila by rigid or articulated trucks. If technically not feasible to transport by road because of bridge capacity, some loads may be ferried by boat to the Takara Landing with transport by road to site. The preferred option is to transport by land. Project staff will be transported by mini-bus or light vehicle from the construction camp or local accommodation. The transport trips for each Project phase are described in the ESIA Project Description (ESIA Chapter 4). Table 8-18 presents the mitigation measures and management to minimise environmental and social impacts due to traffic and transport associated with the Project. Table 8-18 Management and Monitoring Plan –Traffic and Transport Traffic and Transport Management and Monitoring Aspect

Mitigation Measures

When

Who

Objective

To ensure both a safe and efficient transport environment.

Targets

Reduce the risk of traffic and transport movements from Project vehicles impacting the community or other stakeholders.

All phases

•

Communicate to community if large volumes of traffic are expected in a particular event, or if a number of vehicles will be expected during the night (outside of normal shift changes). Where possible, plan major machinery or equipment arrivals outside of peak pedestrian traffic such as school start and finish and Sunday church.

Prior to traffic event

Site Superintendent or Community Representative

Upgrade the main access track to site from Ring Road heading east approximately 500 m from Site E with a right-hand turn to the eastern end of the airstrip. No new tracks will be formed until the production drilling phase. Site induction includes driver education / awareness training. Provide school road safety training program to schools.

Prior to exploration drilling

Site Superintendent Project Engineer Community Representative

• Exploration and Well Testing

•

• • Production Drilling and Construction

•

Inform the Vanuatu Aviation Authority of the drilling rig hazard and therefore the airstrip should be closed to emergency air traffic.

Prior to production drilling

Site Superintendent

Operations

•

Review compatibility of the airstrip for emergency landings during the operation of the geothermal plant.

Prior to operations

Site Superintendent

Chapter 8 – Environmental and Social Management and Monitoring Plan 35

CHAPTER

Conclusions and Recommendations

Table of Contents 9

CONCLUSIONS AND RECOMMENDATIONS

9.1

Conclusions 9.1.1 Project Need and Benefits

1 2

9.2

Statement of Commitments

9.3

Recommendations

TABLES Table 1 Type and Duration of Environmental Impacts Table 2 Type and Duration of Social Impacts

Chapter 9 – Conclusions and Recommendations

1 2

CONCLUSIONS AND RECOMMENDATIONS

9.1

Conclusions

The Vanuatu Government has committed to the vision of a geothermal energy project through the National Energy Road Map, Priorities and Action Agenda (2006 – 2015) and the National Energy Policy Framework. The Project has received broad level support from the Government and the community in Takara, as shown through the ESIA stakeholder consultation process. The ESIA process and risk assessment workshops concluded that there would be no ‘High’ level residual risks associated with the Project, following the implementation of mitigation measures. Most impacts identified would be considered a ‘Low’ residual risk following mitigation. The impacts considered to pose a ‘Medium’ residual risk to the receiving environment are discussed further below. The ESIA process found there are four (4) impacts that pose a ‘Medium’ residual risk to the environment (three (3) during drilling / construction and one (1) during operation). Of these, two (2) are associated with optional design features (i.e. potential disposal of geothermal brine to the ocean from drilling activities and potential discharge of cooling water to the ocean during plant operation) which may or may not be part of the final geothermal plant design. The two (2) non-discretional environmental impacts are from the clearance of vegetation and gardens during the drilling and construction phases, leading to secondary impacts on the removal of valuable gardens and wildlife habitat (e.g. for the endangered scrub duck). The gardens are an important food source for the local Takara community and as such they are of social and cultural significance. Further details of the ‘Medium’ risks are summarised in Error! Not a valid bookmark self-reference.. Both these impacts are considered to be temporary and reversible as the majority of the cleared vegetation area will be rehabilitated to gardens or habitat after the Project. Table 1 Type and Duration of Environmental Impacts Project Phase

Type and Duration of Environmental Impact Short to Medium Term (< 3 years)

Exploration and Production Drilling Construction

Geothermal Plant Operation

Long-Term (> 3 years)

Residual Risk



Vegetation clearance - removal of valuable garden food source of social and cultural significance

Medium



Vegetation clearance - loss of habitat for endangered species e.g. scrub duck

Medium



Geothermal brine discharge to ocean (option only, reinjection is preferred method) - contaminants in ocean leading to a decline in water quality

No (only if reinjection not feasible)

Medium



Seawater cooling outfall (option only) - increased water temperature in ocean leading to localised coral bleaching

No (only if option selected)

Medium

Chapter 9 – Conclusions and Recommendations 1

Table 2 Type and Duration of Social Impacts Project Phase

Type and Duration of Social Impact Short to Medium Term (< 3 years)

Exploration and Production Drilling, Construction

All Phases

Long-Term (> 3 years)

Residual Risk



Work on community land, including clearing of gardens, crops and plantation trees during drilling and construction.

Medium



Increased traffic along coastal Ring Road bringing goods and services to site with increased accident potential

Medium



Influx of workers to Takara for the Project, including from overseas, and other parts of Efate and nearby islands

Medium



Disturbance to / on places or characteristic features of cultural or historical significance - scrub duck habitat

Medium



Increased access to economic resources for individuals and households, allowing potential for substance abuse

Yes (possibly)

Medium



Potential for increased tension between different groups or communities due to perceived inequalities in the distribution of project benefits

Yes (possibly)

Medium



Vulnerable groups (e.g. women, youth, elderly) may be marginalised and not have access to jobs and benefits

Yes (possibly)

Medium



Limited opportunity for employment opportunities

Yes

Medium

training

and

skilled

The ESIA has developed a comprehensive ESMMP focussed on reducing the impacts to residual levels of at least ‘Medium’. It has been prepared to specifically address the impacts raised in the ESIA process and incorporates the mitigation measures required to reduce risks to as low as reasonably practical. It incorporates an Environmental Policy, an Environmental and Social Management System, reference to the register of Environmental and Social Residual Risks (ESIA Appendix C) and includes discipline specific management and monitoring plans. The Management and Monitoring Plans have been developed for each of the environmental and social aspects assessed in Chapter 6 and Chapter 7. These include measures to be implemented in order to avoid, minimise, and compensate for (where necessary the identified risks and impacts to the community and the environment. SLR believe that with the implementation of the ESMMP, the Project can achieve good industry practice compared to similar geothermal projects operating around the world. Impacts and risks associated with the Project will be predominately within the drilling and construction phases. The overall Project benefits are regional in scale applicable to Vanuatu, however the implementation of the Community Benefits Program provides an opportunity to provide benefits to the local community for the life of the Project and with a strategic focus to leave a lasting legacy. 9.1.1

Project Need and Benefits

As stated in the World Bank report (2011) pertaining to geothermal power in Efate, “the analysis concludes that geothermal power from Takara is the least-cost power supply addition for Efate”. A summary of the Project need and benefits includes the following:

Chapter 9 – Conclusions and Recommendations 2



Project constituents the only viable options to achieve the Vanuatu Government’s National Energy Road Map for renewable targets;



Reduction in overall greenhouse gas emissions by Vanuatu through the displacement of diesel power generation with a lower carbon footprint geothermal energy generation;



A base load power generation that is from a renewable resource;



Increase in energy security through a diversified fuel mix;



Environmental and economic gains through reduced reliance on expansive carbon based thermal generation based on imported diesel;



Contribute to Vanuatu’s National Energy Road Map goal of self-sufficiency for energy with a reduction in reliance on imported diesel for power generation;



Potential for reduction in electricity prices in the energy market from the geothermal cost of electricity generation, with flow on benefits to domestic and business customers; and



Reduce volatility in electricity prices due to offsetting a portion of the diesel generation with its variable fuel supply costs.

The investment and development activity associated with the Project will also provide regional and local community and economic benefits, including: 

Potential attraction of further foreign investment to Vanuatu with confidence generated by the geothermal Project proceeding;



Business opportunities during drilling and construction for supply of services. Local Project benefits to the Takara local community will be limited, as subsistence farming and fishing are the main sources of livelihood. However the small workforce required for the construction of the Project will seek to involve some labour from residents in the local Takara area; and



A Community Benefits Program will be established to support community projects. This program will aim to facilitate increased employment and training opportunities, as well as increased economic diversification and jobs. Geodynamics has committed to using local businesses to supply the Project where possible.

ESIA Terms of Reference and Equator Principles This ESIA has been completed to comply with the approval process as stated in Vanuatu’s Environmental Management and Conservation Act 2002, and the Project Terms of Reference produced pursuant to the Environmental Impact Assessment Regulations 2011. Geodynamics and SLR have devised and implemented an ESIA process that complies with the Terms of Reference (ToR), while emphasising the socio-economic, cultural heritage and community consultation importance within an area such as Takara. In addition, each technical studies was developed to focus on the key risks associated with a typical geothermal energy Project. The ToR required that the ESIA be completed in Two Phases. Phase One was to deal with baseline assessments, the exploration drilling activities, and a conceptual outline of the subsequent parts of the Project. Phase Two was scoped to cover the construction and operational phases of the Project, and required detailed environmental and socio-economic effects and modelling studies to be undertaken to identify mitigation measures for adverse impacts. This ESIA report has combined the findings and recommendations for Phase One and Phase Two. A table in the ESIA (Appendix A) lists the requirements for Phase One and Phase Two of the ESIA, as outlined in the ToR, and explains how these have been addressed by this combined document, is provided the ESIA.

Chapter 9 – Conclusions and Recommendations 3

This ESIA has been completed in accordance with the Equator Principles (The Equator Principles Association, 2013). The Equator Principles are a set of values that have been adopted by the Equator Principle Financial Institutions including many private banks and lending institutions which related to sound environmental and social performance. The ESIA includes a table (Appendix B), comparing the Equator Principles against compliant ESIA sections.

9.2

Statement of Commitments

As part of implementing the Project, Geodynamics commits to: 1. Develop an entitlements/compensation trust, agreed between Kastom land owners and Geodynamics, for use of land, which shall be payable to the rightful Kastom owner when determined by the current legal process. Funds shall be held in trust if exploration drilling commences before an owner is determined, and all rival claimants in the current dispute shall be consulted to endorse this approach. 2. Negotiate and implement a stakeholder agreed Community Benefits Program for the Project life and establish a board with strong and diverse local representation to identify, prioritise and manage projects. 3. Source labour, services and supply of goods locally (Takara), Efate or within Vanuatu by order of preference, where available. 4. If during exploration drilling and well testing, an unexpectedly high level of greenhouse gas is identified as a component of the geothermal fluid, then the project will re-evaluate its current power conversion technology concept with a view to re-injecting more greenhouse gas. GHG emissions will be as low as practical, shall remain below the emissions intensity of the displaced diesel generation and below the International Finance Corporation reporting threshold of 25,000 tonnes CO2-e per annum for Stage One (5 MWe) of the Project. 5. Update the ESIA as required by stakeholders, as detailed design develops and especially if project plans diverge from the technical assumptions contained in the ESIA

9.3

Recommendations

As part of implementing the ESIA for the Project, it is recommended that Geodynamics: 1. Implement ESMMP actions and reviews prior to each phase of the Project. 2. Implement the environmental and planning conditions of approval from the Vanuatu Government and embed these within the ESMMP. 3. Determine the plant cooling option during further engineering design. If the seawater cooling option is preferred, conduct further analysis of a potential pipeline route in consultation with the community(s) and conduct discharge dispersion modelling according to the ESMMP findings. 4. Undertake cultural awareness training with all Project staff, to ensure cultural sensitivities and community safety is prioritised during all Project stages. 5. Review and monitor these recommendations and the ESIA Conditions of Approval regularly and adapt the ESMMP to adapt and comply.

Chapter 9 â&#x20AC;&#x201C; Conclusions and Recommendations 4

CHAPTER

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APPENDIX

ESIA Terms of Reference

Appendix A – Terms of Reference Terms of Reference Section

Where Addressed in ESIA

1. Relevant Legislation EIA approval for the project is required under the Republic of Vanuatu Environmental Management and Conservation Act 2002 (CAP 283) – “the Act”. In 2011 additional Environmental Impact Assessment Regulations – “the EIA Regulations” were issued under the Act (Order No. 175 of 2011) and these regulations were subsequently amended in 2012 (Order No. 102 of 2012). The EIA Regulations were issued under paragraphs 45(1)(b) and (d) of the Act which are set out below: 45(1) The Minister may make regulations to give effect to the purposes and provisions of this Act, including for all or any of the following: (b) to prescribe and promote standards, guidelines or codes of environmental practice to give effects to any requirement under this Act; (d) to provide for the variation of any environmental assessment procedure. Part 3 (paragraphs 11 to 28) of the Act sets out the requirements for “Environmental Impact Assessment”, however these requirements need to be read in association with the EIA Regulations which provide additional guidance and detail.

This ESIA has been prepared in accordance with both the Environmental Management and Conservation Act 2002 and the Environmental Impact Assessment Regulations, refer Section 2.2.1

2. Requirement for EIA Terms of Reference Section 19 of the Act states that: 19.Terms of Reference for EIA (1) The Director must develop a terms of reference for any work that is to be undertaken for an EIA, including a description of the scope of work required. (2) In developing the terms of reference, the Director must give special consideration to the need for consultation, participation and involvement of custom landowners, chiefs and other interested parties, and may consult with the National Council of Chiefs for that purpose. (3) The Director must refer the terms of reference for the EIA to the project proponent for written comment within 15 business days or such longer period as the Director specifies. (4) Within 30 business days after receiving any written comments from the project proponent, the Director must make such revisions as are considered appropriate, and issue the final terms of reference to the project proponent. A copy of the terms of reference must be lodged in the Environmental Registry at the same time. (5) Unless otherwise agreed, all costs associated with the preparation of an EIA are the responsibility of the project proponent.

Section 2.2.5 of the ESIA and this document detail the Project Terms of Reference and how these have been addressed in this ESIA.

3. Recognition of 20 February 2014 Agreement with Custom Landowners On 20 February 2014 the Prime Minister, senior government officials, and representatives of the project proponent met in Port Vila with custom landowner representatives and signed an agreement which authorises the project proponent access to land to undertake the necessary EIA studies. This is an important agreement to acknowledge in terms of the requirements of Paragraph 19(2) of the Act referenced above and provides a sound platform for the completion of the necessary EIA studies.

This Agreement has been recognised in the ESIA, and is referred to in the Social and Cultural Heritage Assessment (SMEC, 2014b).

Appendix A – Terms of Reference 1

Appendix A – Terms of Reference Terms of Reference Section

Where Addressed in ESIA

4. Consultation with the Project Proponent In January 2013 the Vanuatu government issued KUTh Energy a 30 year Production License to develop geothermal electricity in an area in the north of Efate Island. The assets of KUTh Energy have been merged with Geodynamics Limited which is now the project proponent. Under Republic of Vanuatu law, the Director of the Department of Environmental Protection and Conservation has responsibility for preparing the EIA Terms of Reference (this document), with a process set out for consultation with and input from the project proponent as provided in paragraph 19 of the Act (see above). A draft Terms of Reference was provided to Geodynamics Limited by the Director on 4 March 2014 under Section 19(3) of the Act and a response was received from Geodynamics Limited on 6 March 2014. The Director has considered the comments by Geodynamics Limited and has amended the Terms of Reference to take account of these comments. The EIA will be undertaken in accordance with this Final Terms of Reference issued by the Director under paragraph 19 (4) of the Act.

Chapter 2.2.5 of the ESIA and this Appendix detail the Final Terms of Reference and how these have been addressed in this ESIA.

5. General Scope, Format and Content of the Takara Geothermal EIA The EIA Regulations set out the general requirements for EIA studies undertaken within the Republic of Vanuatu. These are not repeated here in full, however subject to the detailed scope of this Terms of Reference outlined in Section 8 below, the project proponent is required to adhere to these requirements when completing the EIA for lodgement with the Director as set out in the following sections of the EIA Regulations: 6. Conduct of EIA 7. Preparation of EIA Report 8. Contents of EIA Report 9. Environmental Management and Monitoring Plan

The ESIA has been prepared in accordance with the EIA Regulations (refer Chapter 2.2.1).

6. Appointment of Independent Consultant(s) In terms of Section 6 of the Regulations, which requires the independent consultant(s) engaged to undertake the EIA to be selected and appointed by the Director in consultation with interested parties, a pragmatic approach shall be employed for the Takara Geothermal project EIA as follows: a) Prior to the creation of this Terms of Reference, the project proponent has selected a preferred consultant following a request for expressions of interest from multiple sources. This preferred consultant shall review this Terms of Reference in draft form and amend its proposal and its methodology for performing the EIA if necessary. The project proponent shall ensure that the preferred consultant is aware of and delivers in accordance with the Terms of Reference. b) The project proponent shall write to the Director outlining the range of proposals received, and the reasons for selection of the preferred consultant. This shall include forwarding the proposals of all invited consultants. These proposals shall contain their relevant qualifications and experience to undertake the various components of the EIA; c) The Director shall approve the appointment of the independent consultant(s) recommended by the project proponent provided he is satisfied that a robust selection process has been employed and has been adequately documented to cover the matters outlined under b) above; and d) The recommended independent consultant(s) will then need to apply for registration under section 27 of the EIA Regulations prior to commencing work on the EIA.

SLR Consulting were engaged by Geodynamics to conduct the Project ESIA. SLR have been pre-approved by DEPC as an EIA consultant in Vanuatu (refer Chapter 2.2.3).

Appendix A – Terms of Reference 2

Appendix A – Terms of Reference Terms of Reference Section

Where Addressed in ESIA

7. Public Consultation The project proponent is to liaise with the Director regarding public consultation processes, which shall be carried out generally in accordance with Section 10 of the Regulations.

The public consultations undertaken as part of the ESIA are detailed in the Stakeholder and Community Consultation Report (SMEC, 2014c).

8. Takara Geothermal EIA to be completed in Two Phases With a greenfield geothermal development project such as Takara, it is difficult to finalise detailed plans for the location, sizing and configuration of steamfield equipment (production and reinjection wells, pipelines, separators, control equipment etc.) or the power plant components (type, size and location of the power plant, cooling system and transmission connection) until after the exploration drilling and testing phase has been completed and resource information has been gathered to base these key commercial and engineering decisions on. While it is considered important to prepare a comprehensive EIA covering all potential environmental effects for the proposed Takara geothermal development, given the fact outlined above, it is recognised that more specific detail and certainty will be able to be provided for the exploration drilling and testing phase than for the subsequent steamfield, power plant and transmission construction and operational phase. Accordingly the EIA is to be completed in distinct two phases as outlined below.

This ESIA has been prepared to combine Phase One and Phase Two, with Geodynamics seeking approval for both Phases of the Project (refer Section 2.2.5).

8a Phase One EIA Outline The first EIA phase deals with baseline assessments and the development of an Environmental Management and Monitoring Plan for exploration drilling activities. The EIA document shall be accompanied by a separate Environmental Management and Monitoring Plan, focused on exploration drilling. In addition, this phase shall include a conceptual outline of the subsequent parts of the project, including the production steamfield (production and reinjection wells, pipelines and separation plant), the power plant and associated cooling facilities, and the proposed grid connection and transmission facilities .

The Project Description is provided as Chapter 4, The Existing Environment has been outlined in Chapter 5, Chapter 6 outlines the Impact Assessment for Exploration And Production Drilling, the impact assessment for Geothermal Plant Construction And Operation has been provided as Chapter 7, and the Environmental Management and Monitoring Plan is provided as Chapter 8.

8b Phase Two EIA Outline The second EIA phase will cover the construction and operation of the production steamfield (production and reinjection wells, pipelines and separation plant), the power plant and associated cooling facilities, and the proposed grid connection and transmission facilities. This phase requires detailed environmental and socio-economic effects and modelling studies to be undertaken, which will feed into identification of mitigation measures for identified adverse impacts and the development of an associated but separately documented Environmental Management and Monitoring Plan for these activities. This Phase Two EIA/EMMP will form a separate submission, and shall incorporate design outcomes identified from the exploration drilling. Phase Two modelling studies will utilise baseline field data that is gathered soon after the commencement of the EIA study (during Phase One). The early availability of this data will inform and enhance the Phase One process, albeit without detailed analysis and modelling.

Appendix A – Terms of Reference 3

Appendix A – Terms of Reference Terms of Reference Section

Where Addressed in ESIA

8c Approval Process The project proponent shall submit the Phase One EIA report and associated Environmental Management and Monitoring Plan to the Director for approval to undertake exploration drilling and associated activities. Following completion of the exploration drilling and associated activities the project proponent shall submit the Phase Two EIA report and associated Environmental Management and Monitoring Plan to the Director for approval to undertake the steamfield (including production and injection well pads), power plant and transmission connection components of the project.

This ESIA has been prepared to combine Phase One and Phase Two, with Geodynamics seeking approval for both Phases of the Project (refer Section 2.2.5).

9. Phase One – EIA Terms of Reference - Project Baseline Assessment and Exploration Drilling and Testing Phase In completing this Phase in addition to covering the requirements of Sections 8 and 9 of the EIA Regulations, the project proponent shall ensure the following information is specifically covered in the EIA document:

See below

a) A “baseline” description of the extent and nature of the Takara Geothermal Resource based on all relevant existing geo-science information (i.e. underlying geology, geochemistry and geophysical data, along with the nature and location of surface geothermal features – springs, fumaroles, hot ground etc.);

Chapter 5

b) A statement outlining the rationale for the exploration drilling target areas given the resource information document in a) above;

Chapter 3.5

c) A “baseline” description (and associated mapping) of the existing “non-geothermal” environment in the area proposed for the exploration drilling and testing activities and potential geothermal steamfield and power plant areas. The baseline description shall cover the following aspects:

Chapter 5

i. Soils (including field sampling)

Chapter 5.1.2

ii. Groundwater

Chapter 5.1.4.2

iii. Fresh and surface water resources

Chapter 5.1.4.1

iv. Ecology of flora and fauna

Chapter 5.2.1

v. Marine ecology (since seawater cooling water takes and/or any marine discharges are proposed as an option)

Chapter 5.2.2

vi. Landscape and Visual Amenity

Chapter 5.1.5

vii. Baseline Air Quality

Chapter 5.1.5

viii. Baseline Noise environment

Chapter 5.1.6

ix. Human habitation and use (dwellings, gardens, fruit trees, community facilities, recreation and cultural areas, burial sites etc.)

Chapter 5.3

x. Transport, covering a description of current access and traffic levels

Chapter 5.3

d) Detailed plans of the location and nature of the proposed exploration drilling and testing programme, including a detailed description of all earthworks and civil infrastructure, water requirements and sources of water to be used;

Chapter 4

e) An outline of the proposed equipment and materials to be used and the drilling, testing and discharge management practices proposed to be employed, including a description of how the wells, drilling ponds and testing facilities will be designed to avoid contamination of freshwater streams and aquifers;

Chapters 4.2 and 4.3

f) Detail of the logistical considerations of equipment and materials procurement (including fuel) detailed in e) above, including shipping and freight as applicable, and management practices to ensure there are no adverse environmental effects resulting from those activities.

Chapter 4.7

Appendix A – Terms of Reference 4

Appendix A – Terms of Reference Terms of Reference Section

Where Addressed in ESIA

g) Details of consultations carried out to date, identification of stakeholders, issues and concerns that have been identified, including land tenure and access.

Stakeholder and Community Consultation Report (SMEC, 2014c).

h) A project plan which sets out the proposed timeline and key steps and tasks for all exploration drilling and testing activities, including mobilisation, access track construction, well site establishment, drilling and testing duration, demobilisation, land reinstatement and other clean-up activities.

Chapter 4

i) An accompanying Environmental Management and Monitoring Plan (EMMP) which outlines:

Chapter 8

i. How the drilling exploration and testing activities have been located so as to avoid as far as practicable any adverse environmental effects on significant natural resources and ecologically important areas (particularly freshwater streams and aquifers) and areas of human habitation and use (including avoiding exposing people to unreasonable air discharge and noise effects);

Chapter 8.5

ii. The management practices and techniques proposed to minimise the effects of exploration drilling and testing activities on the environment and communities including erosion, sediment and stormwater controls associated with the civil infrastructure (access roads and tracks, transport management, exploration well pads, testing facilities etc.) and the proposed waste and hazardous substances management arrangements;

Chapter 8.5

iii. A community engagement plan (which may be an accompanying separate document) which explains the processes for ongoing consultation with the local community. The plan should include details on the engagement process and tools used to identify and record potential environmental or social issues, the communication of these issues to the wider stakeholder community, and how any specific mitigation measures relating to identified community effects will be implemented. In addition to the prevention and mitigation of negative impacts on the community, the plan should detail how opportunities for local work during the drilling exploration and testing phase of the project will be identified and actioned;

Chapter 8.5.8

iv. A monitoring plan which describes the environmental monitoring proposed for the site establishment, and exploration drilling and testing phase. The monitoring protocol should outline all parameters proposed to be monitored and their locations, along with a reporting and management response protocol if adverse environmental effects are observed from the monitoring results.

Chapter 8.5

10. Phase Two EIA Terms of Reference– Steamfield, Power Plant and Transmission Construction and Operation Phase In completing this Phase in addition to covering the requirements of Sections 8 and 9 of the EIA Regulations, the project proponent shall ensure the following information is specifically covered in the EIA document:

See below

a) Plans of the location and nature of the proposed steamfield (including production and injection well pads), power plant and transmission connection components of the project including a description of the plant (including the nature of proposed cooling systems, gas dispersion or abatement systems, and any new transmission facilities required), along with the associated earthworks and civil infrastructure requirements;

Chapter 4.5

b) An outline of the proposed equipment and materials proposed for construction and operation of the plant so far as is practicable, including infrastructure, drilling, testing and discharge management practices proposed to be employed, including a description of how the wells, drilling ponds and production facilities will be designed to avoid contamination of freshwater streams and aquifers;

Chapter 4.4 and 4.5

c) Detail of the logistical considerations of equipment and materials procurement (including fuel) detailed in b) above, including shipping and freight as applicable, and management practices to ensure there are no adverse environmental effects resulting from those activities.

Chapter 4.7

Appendix A – Terms of Reference 5

Appendix A – Terms of Reference Terms of Reference Section

Where Addressed in ESIA

d) A description of the proposed production and reinjection well drilling process including well and drilling pond design to avoid contamination of freshwater streams and aquifers;

Chapter 4.4.5 and Chapter 8.4.2

e) A description of proposed water and wastewater treatment systems, including raw water and potable water supply, stormwater, domestic wastewater, cooling tower blowdown and other process discharges;

Chapter 4.9

f) Environmental and Socio-economic Impact Assessments associated with steamfield, power plant and transmission construction and operations defined above, prepared by the consultant, taking account of the baseline environment studies undertaken in the Phase One EIA and covering the following:

Chapter 7

i. Noise impacts (including modelling the effects on identified sensitive receiving environments)

Chapter 7.1.5

ii. Air discharges(including modelling the effects on identified sensitive receiving environments)

Chapter 7.1.4

iii. Ecological impacts on flora and fauna( including the marine environment if seawater cooling water takes and/or any marine discharges are proposed as an option)

Chapter 7.2.1 and Chapter 7.2.2

iv. Effects on freshwater resources

Chapter 7.1.3

v. Landscape and Visual Amenity impacts

Chapter 7.1.8

vi. Impacts on shallow geothermal features

Chapter 7.1.1

vii. Social and Community Impacts (including from transport)

Chapter 7.3

viii. Any effects (positive or negative) on eco-system services, and local or national industry that is displaced or compensated by activities associated with the project

Chapter 7.3.7

ix. Economic effects on other national or local industries or sectors, e.g. energy, farming, tourism, labour.

Chapter 7.3.7

x. Economic Benefits of the project covering both local and wider benefits;

Chapter 7.3.7

g) For each of the assessment areas outlined in f) above the consultant shall prepare a statement of mitigation actions proposed in respect of any adverse impacts identified in the assessments;

Chapter 8

h) A project plan which sets out the proposed timeline and key steps and tasks for all steamfield, power plant and transmission connection construction, demobilisation, land reinstatement and other clean-up activities.

Chapter 4

i) An accompanying Environmental Management and Monitoring Plan (EMMP) which outlines:

Chapter 8

i. How the steamfield, power plant and transmission connection activities have been located so as to avoid as far as practicable any adverse environmental effects on significant natural resources (particularly freshwater streams and aquifers) and areas of human habitation and use (including avoiding exposing people to unreasonable air discharges and noise). Areas of public access will be distinguished from secure areas;

Chapter 8.5

ii. The management practices and techniques proposed to minimise the effects of steamfield, power plant and transmission connection activities on the environment and communities including erosion, sediment and stormwater controls associated with the civil infrastructure (access roads and tracks, well pads, pipelines, separation plant, power plant and associated cooling facilities and the grid connection and transmission infrastructure) and the proposed waste and hazardous substances management arrangements; This proposal should include design consideration given to seasonal variation, climate change, severe weather events, and sea level rise as applicable.

Chapter 8.5

Appendix A – Terms of Reference 6

Appendix A – Terms of Reference Terms of Reference Section

Where Addressed in ESIA

iii. A community engagement plan (which may be an accompanying separate document) which explains processes for regular ongoing consultation with the local community, how any specific mitigation measures relating to identified community effects will be implemented, and how opportunities for local work or support during the steamfield, power plant and transmission connection construction and operational phase of the project will be identified and actioned;

Chapter 8.5.8

iv. A monitoring plan which describes the environmental monitoring proposed for the steamfield, power plant and transmission connection construction and operational phase. The monitoring plan should outline all parameters proposed to be monitored and their locations along with a reporting and management response protocol if adverse environmental effects are observed from the monitoring results.

Chapter 8.5

11. Standards of Environmental and Social Project Performance This Terms of Reference is based on the environmental regulatory framework in Vanuatu, and includes specific requirements associated with the potential effects of geothermal project development. Notwithstanding these requirements it is expected that the EIA will also meet the Equator Principle standards, such that it would meet the International Finance Corporation (World Bank) Performance Standards.

The Equator Principle Standards have been met in the preparation of this ESIA, as outlined in Section 2.7.1 and Appendix B.

Appendix A – Terms of Reference 7

APPENDIX

ESIA Equator Principles

Appendix B – Equator Principles Equator Principles Reference

How addressed in this ESIA

Principle 1: Review and Categorisation When a Project is proposed for financing, the EPFI will, as part of its internal environmental and social review and due diligence, categorise it based on the magnitude of its potential environmental and social risks and impacts. Such screening is based on the environmental and social categorisation process of the International Finance Corporation (IFC). Using categorisation, the EPFI’s environmental and social due diligence is commensurate with the nature, scale and stage of the Project, and with the level of environmental and social risks and impacts. The categories are: Category A – Projects with potential significant adverse environmental and social risks and/or impacts that are diverse, irreversible or unprecedented; Category B – Projects with potential limited adverse environmental and social risks and/or impacts that are few in number, generally site-specific, largely reversible and readily addressed through mitigation measures; and Category C – Projects with minimal or no adverse environmental and social risks and/or impacts.

The Takara project best fits in Category B: projects with potentially limited adverse social or environmental impacts that are few in number, generally site-specific, largely reversible and readily addressed through mitigation methods

Principle 2: Environmental and Social Assessment For all Category A and Category B Projects, the EPFI will require the client to conduct an Assessment process to address, to the EPFI’s satisfaction, the relevant environmental and social risks and impacts of the proposed Project (which may include the illustrative list of issues found in Exhibit II). The Assessment Documentation should propose measures to minimise, mitigate, and offset adverse impacts in a manner relevant and appropriate to the nature and scale of the proposed Project. The Assessment Documentation will be an adequate, accurate and objective evaluation and presentation of the environmental and social risks and impacts, whether prepared by the client, consultants or external experts. For Category A, and as appropriate, Category B Projects, the Assessment Documentation includes an Environmental and Social Impact Assessment (ESIA). One or more specialised studies may also need to be undertaken. Furthermore, in limited high risk circumstances, it may be appropriate for the client to complement its Assessment Documentation with specific human rights due diligence. For other Projects, a limited or focused environmental or social assessment (e.g. audit), or straight-forward application of environmental siting, pollution standards, design criteria, or construction standards may be carried out. For all Projects, in all locations, when combined Scope 1 and Scope 2 Emissions are expected to be more than 100,000 tonnes of CO2 equivalent annually, an alternatives analysis will be conducted to evaluate less Greenhouse Gas (GHG) intensive alternatives. Refer to Annex A for alternatives analysis requirements.

This ESIA has been prepared to address the risks and impacts of the Project (refer Chapter 6 Impact Assessment – Exploration And Production Drilling, Chapter 7 Impact Assessment – Geothermal Plant Construction And Operation, and Appendix C Environmental Risk Register) and propose mitigation and management measures (refer Chapter 8 Environmental And Social Management And Monitoring Plan).

Principle 3: Applicable Environmental and Social Standards The Assessment process should, in the first instance, address compliance with relevant host country laws, regulations and permits that pertain to environmental and social issues. EPFIs operate in diverse markets: some with robust environmental and social governance, legislation systems and institutional capacity designed to protect their people and the natural environment; and some with evolving technical and

The Project has been assessed against the relevant Vanuatu legislation (refer Chapter 2.1 Geothermal Approvals, Chapter 2.2 Environmental Approvals, and Chapter 2.3 Planning Approvals).

Appendix B – Equator Principles 1

Appendix B – Equator Principles Equator Principles Reference

How addressed in this ESIA

institutional capacity to manage environmental and social issues. The EPFI will require that the Assessment process evaluates compliance with the applicable standards as follows: 1. For Projects located in Non-Designated Countries, the Assessment process evaluates compliance with the then applicable IFC Performance Standards on Environmental and Social Sustainability (Performance Standards) and the World Bank Group Environmental, Health and Safety Guidelines (EHS Guidelines) (Exhibit III). 2. For Projects located in Designated Countries, the Assessment process evaluates compliance with relevant host country laws, regulations and permits that pertain to environmental and social issues. Host country laws meet the requirements of environmental and/or social assessments (Principle 2), management systems and plans (Principle 4), Stakeholder Engagement (Principle 5) and, grievance mechanisms (Principle 6). The Assessment process will establish to the EPFI’s satisfaction the Project's overall compliance with, or justified deviation from, the applicable standards. The applicable standards (as described above) represent the minimum standards adopted by the EPFI. The EPFI may, at their sole discretion, apply additional requirements.

However, as Vanuatu is a non-designated country, the Projects environmental compliance must also be evaluated against the applicable IFC Standards and applicable World Bank Group Environmental Health and Safety Guidelines (EHS Guidelines) for environmental trigger levels or parameters for aspects such as Air Quality (refer Chapter 6.1.3 and Chapter 7.1.4), Noise (refer Chapter 6.1.4 and Chapter 7.1.5), and Water (refer Chapter 6.1.2 and Chapter 7.1.3).

Principle 4: Environmental and Social Management System and Equator Principles Action Plan For all Category A and Category B Projects, the EPFI will require the client to develop or maintain an Environmental and Social Management System (ESMS). Further, an Environmental and Social Management Plan (ESMP) will be prepared by the client to address issues raised in the Assessment process and incorporate actions required to comply with the applicable standards. Where the applicable standards are not met to the EPFI’s satisfaction, the client and the EPFI will agree an Equator Principles Action Plan (AP). The Equator Principles AP is intended to outline gaps and commitments to meet EPFI requirements in line with the applicable standards.

Chapter 8 of this ESIA has been developed to address this requirement. It incorporates an Environmental Policy, an Environmental Management System, a register of Environmental and Social Residual Risks and includes Environmental and Social Management and Monitoring Plan to address impacts and risks identified in Chapters 6 and 7.

Principle 5: Stakeholder Engagement For all Category A and Category B Projects, the EPFI will require the client to demonstrate effective Stakeholder Engagement as an ongoing process in a structured and culturally appropriate manner with Affected Communities and, where relevant, Other Stakeholders. For Projects with potentially significant adverse impacts on Affected Communities, the client will conduct an Informed Consultation and Participation process. The client will tailor its consultation process to: the risks and impacts of the Project; the Project’s phase of development; the language preferences of the Affected Communities; their decision-making processes; and the needs of disadvantaged and vulnerable groups. This process should be free from external manipulation, interference, coercion and intimidation. To facilitate Stakeholder Engagement, the client will, commensurate to the Project’s risks and impacts, make the appropriate Assessment Documentation readily available to the Affected Communities, and where relevant Other Stakeholders, in the local language and in a culturally appropriate manner. The client will take account of, and document, the results of the Stakeholder Engagement process, including any actions

As mentioned in Principle 1, the Project has been defined as a Category B Project and is therefore required to demonstrate effective Stakeholder Engagement. Consultation has been undertaken with due consideration to the cultural context and the potentially affected parties. A summary of consultation methods and outcomes is provided in Chapter 6.3 (Impact Assessment – Exploration And Production Drilling- Social / Cultural Environment) and Chapter 7.3 (Impact Assessment – Geothermal Plant

Appendix B – Equator Principles 2

Appendix B – Equator Principles Equator Principles Reference

How addressed in this ESIA

agreed resulting from such process. For Projects with environmental or social risks and adverse impacts, disclosure should occur early in the Assessment process, in any event before the Project construction commences, and on an ongoing basis. EPFIs recognise that indigenous peoples may represent vulnerable segments of project-affected communities. Projects affecting indigenous peoples will be subject to a process of Informed Consultation and Participation, and will need to comply with the rights and protections for indigenous peoples contained in relevant national law, including those laws implementing host country obligations under international law. Consistent with the special circumstances described in IFC Performance Standard 7 (when relevant as defined in Principle 3), Projects with adverse impacts on indigenous people will require their Free, Prior and Informed Consent (FPIC).

Construction And Operation - Social / Cultural Environment). The Environmental and Social Mitigation Control Plans in relation to Stakeholder and Community Consultation are detailed in Chapter 8.4.9.

Principle 6: Grievance Mechanism For all Category A and, as appropriate, Category B Projects, the EPFI will require the client, as part of the ESMS, to establish a grievance mechanism designed to receive and facilitate resolution of concerns and grievances about the Project’s environmental and social performance. The grievance mechanism is required to be scaled to the risks and impacts of the Project and have Affected Communities as its primary user. It will seek to resolve concerns promptly, using an understandable and transparent consultative process that is culturally appropriate, readily accessible, at no cost, and without retribution to the party that originated the issue or concern. The mechanism should not impede access to judicial or administrative remedies. The client will inform the Affected Communities about the mechanism in the course of the Stakeholder Engagement process.

Grievance mechanisms are addressed in Chapter 8.5.8. The grievance mechanism has been developed commensurate to the risks and impacts of the Project as listed in Appendix C (Environmental Risk Register). These grievance mechanisms were developed in consultation with the community during the Stakeholder Engagement process (refer Chapter 6.3.3 and Chapter 7.3.3).

Principle 7: Independent Review Project Finance For all Category A and, as appropriate, Category B Projects, an Independent Environmental and Social Consultant, not directly associated with the client, will carry out an Independent Review of the Assessment Documentation including the ESMPs, the ESMS, and the Stakeholder Engagement process documentation in order to assist the EPFI's due diligence, and assess Equator Principles compliance. The Independent Environmental and Social Consultant will also propose or opine on a suitable Equator Principles AP capable of bringing the Project into compliance with the Equator Principles, or indicate when compliance is not possible. Project-Related Corporate Loans An Independent Review by an Independent Environmental and Social Consultant is required for Projects with potential high risk impacts including, but not limited to, any of the following:  adverse impacts on indigenous peoples  Critical Habitat impacts  significant cultural heritage impacts

Geodynamics will assist the independent reviewer as necessary to undertake the review and will allow any such documentation to be available.

Appendix B – Equator Principles 3

Appendix B – Equator Principles Equator Principles Reference

How addressed in this ESIA

 large-scale resettlement In other Category A, and as appropriate Category B, Project-Related Corporate Loans, the EPFI may determine whether an Independent Review is appropriate or if internal review by the EPFI is sufficient. This may take into account the due diligence performed by a multilateral or bilateral financial institution or an OECD Export Credit Agency, if relevant. Principle 8: Covenants An important strength of the Equator Principles is the incorporation of covenants linked to compliance. For all Projects, the client will covenant in the financing documentation to comply with all relevant host country environmental and social laws, regulations and permits in all material respects. Furthermore for all Category A and Category B Projects, the client will covenant the financial documentation: a) to comply with the ESMPs and Equator Principles AP (where applicable) during the construction and operation of the Project in all material respects; and b) to provide periodic reports in a format agreed with the EPFI (with the frequency of these reports proportionate to the severity of impacts, or as required by law, but not less than annually), prepared by in-house staff or third party experts, that i) document compliance with the ESMPs and Equator Principles AP (where applicable), and ii) provide representation of compliance with relevant local, state and host country environmental and social laws, regulations and permits; and c) to decommission the facilities, where applicable and appropriate, in accordance with an agreed decommissioning plan. Where a client is not in compliance with its environmental and social covenants, the EPFI will work with the client on remedial actions to bring the Project back into compliance to the extent feasible. If the client fails to re-establish compliance within an agreed grace period, the EPFI reserves the right to exercise remedies, as considered appropriate.

Geodynamics will covenant in the financial documentation, to comply with the ESMPs during the construction and operation of the project; to provide periodic reports to document compliance with the ESMPs and to provide representation of compliance with the relevant Vanuatu regulations.

Principle 9: Independent Monitoring and Reporting Project Finance To assess Project compliance with the Equator Principles and ensure ongoing monitoring and reporting after Financial Close and over the life of the loan, the EPFI will, for all Category A and, as appropriate, Category B Projects, require the appointment of an Independent Environmental and Social Consultant, or require that the client retain qualified and experienced external experts to verify its monitoring information which would be shared with the EPFI. Project-Related Corporate Loans For Projects where an Independent Review is required under Principle 7, the EPFI will require the appointment of an Independent Environmental and Social Consultant after Financial Close, or require that the client retain qualified and experienced external experts to verify its monitoring information which would be shared with the EPFI.

Geodynamics supports any initiative regarding independent monitoring and reporting.

Principle 10: Reporting and Transparency

Geodynamics will provide this ESIA online Appendix B – Equator Principles 4

Appendix B – Equator Principles Equator Principles Reference

How addressed in this ESIA

Client Reporting Requirements The following client reporting requirements are in addition to the disclosure requirements in Principle 5. For all Category A and, as appropriate, Category B Projects:  The client will ensure that, at a minimum, a summary of the ESIA is accessible and available online.  The client will publicly report GHG emission levels (combined Scope 1 and Scope 2 Emissions) during the operational phase for Projects emitting over 100,000 tonnes of CO2 equivalent annually. Refer to Annex A for detailed requirements on GHG emissions reporting. EPFI Reporting Requirements The EPFI will report publicly, at least annually, on transactions that have reached Financial Close and on its Equator Principles implementation processes and experience, taking into account appropriate confidentiality considerations. The EPFI will report according to the minimum reporting requirements detailed in Annex B.

during the public consultation period, however the project does not exceed the CO2 emissions reporting threshold, as outlined in Section 8.5.3 (Environmental and Social Mitigation Control Plans - Air Quality and Greenhouse Gas Emissions), and the Air Quality and Greenhouse Gas Assessment (SLR, 2014a).

Appendix B – Equator Principles 5

APPENDIX

Environmental and Social Registers

Activity

Vegetation clearance

Geothermal brine discharge

Vegetation clearance

Seawater cooling outfall

Aspect

Social

Ecology (terrestrial)

Vehicle transport of equipment and personnel to/from Takara

Social

Geothermal fluid production

Loss of habitat for endangered species e.g. scrub duck

Increased water temperature Ecology (Marine) in ocean leading to flora and fauna damage

Water Soils

Construction of Seawater cooling pipeline (across land)

Removal of valuable garden food source and cultural significance

Contaminants in ocean Ecology (Marine) leading to flora and fauna damage

Well testing or reservoir production

Earthworks to level sites

Description of Impact

Ecology (terrestrial)

Ecology (Terrestrial) / Noise

Land / Soils

Generation of liquid waste (geothermal brine), with potential spill or leak Disturb/displace community activities Damage to habitat from sedimentation

Disturbance directly to terrestrial flora and fauna

Land subsidence

Project Stage

Location

Consequence

Likelihood

Drilling Construction

Disturbance Areas

Moderate

Almost Certain

Drilling

Water outlet (Takara Landing)

Drilling Construction

Disturbance Areas

Moderate

Possible

Significance

Minor

Possible

Medium

1) Re-injection of geothermal brine is preferred method of disposal. 2) Design of discharge point for water column height, location, velocity. 3) Modelling of predicted dilution factor from discharge point. 4) Monitoring of post-discharge water quality and impacts.

Minor

Possible

Medium

Moderate

Unlikely

Medium

Moderate

Unlikely

Medium

Minor

Unlikely

Low

Minor

Unlikely

Low

Minor

Unlikely

Low

Minor

Unlikely

Low

Moderate

Rare

Low

Major

Likely

Medium

Drilling

Drill Sites

Moderate

Likely

Medium

Project site

Moderate

Unlikely

Medium

Drill and plant site

Moderate

Unlikely

Medium

Seawater pipeline

Moderate

Possible

Residual Significance

1) Minimise clearing of gardens. Obtain land access with affected garden owners. 2) Agree appropriate compensation for any loss or interruption of cropping and arrange relocation to alternative garden areas.

Plant Site

Construction

Consequence Likelihood

Medium

Operation

Drilling Construction Drilling Construction

Mitigation Control

Medium

Operation

Project site

Major

Unlikely

Medium

1) Collect brine in lined tank, which will be regularly inspected for integrity. 2) Preference is for brine to be re-injected or if not feasible, discharged to marine environment. 1) Regular/routine community consultation/communication to ensure awareness of works programme amongst community. 1) Site Specific Sediment and Erosion Control implementation. Note: Seawater cooling of plant is an option at this stage. Reassessment of impacts required if this option chosen during engineering design. 1) Route selection to avoid dwellings and gardens 2) Rehabilitate area of disturbance 3) Construction during daylight hours with consultation prior and during 4) Pre-clearance survey will be completed prior to construction. 1) Re-injection of all produced geothermal liquid. 2) Maintain and monitoring of reservoir pressure. 3) Procedure to manage a change in reservoir pressure.

Production Drilling Operations - well bleed outside of daylight hours - continuous noise hours / days

Noise

Noise disturbance causing nuisance

Drilling

Drill Sites

Minor

Possible

Medium

1) Communication strategy to inform prior to community event occurring. 2) Consultation with nearest residences about temporary measures to reduce impact.

Minor

Unlikely

Low

Lighting

Social

Disturb local residents and fauna

Drilling

Drill Sites

Minor

Possible

Medium

1) Flood lighting placed to minimise disturbance. 2) Turn off all unnecessary lighting at night to avoid attracting migratory birds.

Minor

Unlikely

Low

Transport / traffic to and from site

Social

Increased risk of accident

Drilling Construction

Takara area

Moderate

Possible

Medium

1) Driver training and driving rules adherence.

Minor

Unlikely

Low

Transport / traffic to and from site

Social

Impact to tourism from nuisance

Drilling Construction

Takara area

Minor

Possible

Medium

1) Visual screening where possible.. 2) Plant and drilling sites at western end of airstrip shielded by vegetation from Ring Road.

Minor

Rare

Low

Earthworks to level sites

Social

Damage to market gardens

Drilling Construction

Drill and plant site

Moderate

Likely

Medium

Minor

Possible

Low

Geothermal reservoir production

Social

Loss of geothermal flow for tourist attractions

Drilling Operation

Takara area

Moderate

Possible

Medium

1) Re-injection of all produced geothermal liquid. 2) Maintain and monitoring of reservoir pressure. 3) Procedure to manage a change in reservoir pressure.

Moderate

Rare

Low

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SLR Consulting Australia Pty Ltd

Drill rig movements

Social

Damage to terrestrial flora and fauna

Drilling

Project site

Moderate

Possible

Medium

1) Vehicles to travel along designated access tracks and avoid disturbing new areas. threatened (least concern) habitat (e.g. scrub duck) found so that these may be clearly marked on a map. 2) Advise project staff during induction of the species that should be noted if encountered. 3) Following completion of the drilling, assess during design phase whether disturbed areas such as access tracks are required for operations. 4) Rehabilitate all disturbed areas as per the ESMMP.

1) Vehicles to travel along designated access tracks and avoid disturbing new areas 2) Minimise vehicle movements. 3) Threatened (least concern) habitat (e.g. scrub duck) found so that these may be clearly marked on a map 4) Advise project staff during induction of the species that should be noted if encountered 5) Following completion of the drilling, assess during design phase whether disturbed areas such as access tracks are required for operations. 6) Rehabilitate all disturbed areas as per the ESMMP.

Minor

Unlikely

Low

Minor

Unlikely

Low

Vegetation clearance

Social

Reduced visual amenity

Drilling

Disturbance Areas

Minor

Likely

Medium

Exploration and Production Drilling Operations

Water

Water depletion affecting community and environment

Drilling

Drill Sites

Minor

Likely

Medium

1) Minimise water required for cementing through design. 2) Select location where there is sufficient flow to allow for water take.

Minor

Unlikely

Low

Minor

Unlikely

Low

Earthworks

Soils / Water

Erosion and sedimentation offsite of disturbance

Soils / Dust generation Water / Social

Spill/leak of hazardous substances and waste onto land or into water (waste oil, caustic)

Drilling Construction

Disturbance Areas

Moderate

Unlikely

Medium

1 )Prepare Site Specific Erosion and Sediment Control Plan (avoid disturbance of existing water courses). 2) Seeding of stockpiled soil to stabilise 3) Following completion of the exploration activities, assess whether disturbed areas such as access tracks are required for long term operations. 4) Rehabilitate all disturbed areas, including stockpiles, not required for long- term operations using sterile seed mixes

Drilling

Disturbance Areas

Minor

Almost Certain

Medium

1) Rehabilitation of stockpiled soil to stabilise banks. 2) Carry out watering of exposed areas and stockpiles as required to suppress dust. 3) Minimise size of exposed areas and stockpiles.

Minor

Unlikely

Low

Medium

1) Hazardous substances and waste to be transported in sealed containers in accordance with MSDS requirements. 2) Hazardous substances and waste placed in drip trays to contain minor leaks/spills. 3) Portaloos to be secured to vehicle when being transported to and from drill sites 4) All active project sites to carry spill response kits. 5) Project spill response planning included in ESMMP. 6) All personnel to be provided spill response training as part of site induction.

Minor

Unlikely

Low

Minor

Unlikely

Low

Minor

Unlikely

Low

Minor

Unlikely

Low

Drilling Construction Operation

Project site

Water supply for drilling

Water depletion affecting Water / Aquatic community and environmental Ecology flow and aquatic ecology

Drilling

Drill Site / Water Inlet (Epule River)

Moderate

Unlikely

Medium

1) Seawater will be used for the majority of drilling volume required. Freshwater will be used only for specific parts of the drilling program and potable use on site. 2 Design inlet pipe to reduce possible fish entrapment. 3) Water supply pumped as required per well for well test, allowing environmental flows to recover following extraction.

Water supply of freshwater for drilling

Water quality Effect to environmental flow Ecology (Marine)

Drilling

Water inlet (Epule)

Moderate

Possible

Medium

1) Use seawater in preference to freshwater where possible to minimise impact on community/environment

Drilling

Drill Sites

Moderate

Unlikely

Medium

1) Ongoing monitoring to identify any surface expressions of drilling fluid 2) Reduce the loss with Lost Circulation Materials (LCM) and/or cement Drilling fluid polymer to not include petroleum hydrocarbon

Vehicle transport of hazardous substances and waste to/from Takara

Exploration and Production Drilling Operations

Transport

Water Ecology (Terrestrial)

Surface expressions of drilling fluid

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Minor

Possible

SLR Consulting Australia Pty Ltd

Project drilling, construction and operation use of hazardous substances, including transport, storage and refilling.

Water Soils

Spill/leak of hazardous substances causing contamination of land, surface and/or groundwater

Drilling Operations

Water Soils

Well blow out

Drilling Operations

Drilling Operations to stabilise surface (grouting)

Production of geothermal fluid to plant

All

Drill Sites, Laydown Area, Plant Site

Moderate

Possible

Medium

Drilling

Drill Sites

Major

Possible

Medium

1) Install well blow out preventer once surface casing cemented. 2) ERP to include well blowout response. 3) Well designed to the production shoe has cemented casing strings installed.

Medium

1) Use water based drilling muds only. 2) Recycle and re-use drilling muds where possible. 3) Collect waste in unlined sump. 4) Cover sumps once drilling complete and fluids have dried out. drilling additives with any hydrocarbons are to be used.

Water Soils

Generation of drilling waste (drilling fluids)

Drilling

Water Soils

Excessive cement injection raises pH

Drilling

Drill Sites

Drill pads

Minor

Moderate

Possible

Likely

Minor

Unlikely

Low

Moderate

Rare

Low

Minor

Unlikely

Low

5) N

Medium

1) Controlled grouting procedures prevent unlimited injection of cement.

Minor

Unlikely

Low

1) Collect baseline geological data of formation / reservoir. 2) Study geologic and tectonic conditions at the site. 3) Vanuatu Government seismic monitoring system prior to operations. 4) Takara seismic monitoring system prior to operations. 5) Communication and education strategy to inform of seismic risk.

Minor

Unlikely

Low

Induced seismicity

Operation

Takara area

Moderate

Possible

Medium

Ecology (Marine)

Entrainment of marine and aquatic fauna in water in take

Operation

Pump station

Minor

Unlikely

Low

1) Minimise intake velocity. 2) Screen intake. 3) Horizontal intake rather than vertical.

Minor

Unlikely

Low

Well testing or reservoir production of steam / hot water during operation of plant.

Ecology (Terrestrial)

Damage to terrestrial flora and fauna

Drilling

Drill Sites

Minor

Unlikely

Low

1) Instruct employees, contractors, and site visitors to avoid harassment and disturbance of wildlife, especially duringreproductive (e.g. courtship, nesting) seasons 2) Record observations of potential wildlife problems, including wildlife mortality.

Minor

Rare

Low

Mechanical operation of drill rig

Ecology (terrestrial)

Disturbance for endangered species e.g. scrub duck

Drilling

Drill Sites

Moderate

Rare

Low

Minor

Unlikely

Low

Minor

Unlikely

Low

Insignificant

Unlikely

Low

Minor

Rare

Low

Pumping water

Vehicle transport of equipment and personnel to/from Takara

Geothermal Plant Operation

Drill rig movements

Social

1) All active sites to carry spill kits. Vehicles transporting liquid hazardous substances to carry spill kits. 2) Maintain vehicles in good working order to prevent leaks of oil and fuel. 2) All personnel to be provided spill response training as part of site induction. 3) Mobile bunding option for fuel will be considered. Refer to bunding standard for guidance (110% of storage value). 4) Refuel in designated refuelling areas only. 5) Drip trays and bunding to be in place at refuelling areas at all times. 6) Spill kits to be held at all locations where hazardous sustances are storage or refuelled. 7) Plant in Operation - Regular integrity inspections of storage and closed loop piping / facilities. 8) Appropriate storage in bunded area and refilling area. 9) Hazardous substances stored in a location where they are: 路 secure 路 covered 路 in sealed containers 路 inside a bunded container with sufficient capacity to contain a spill 10) Spill response planning in ESMMP at operations phase

Ecology (Terrestrial)

GHG / Odour

Noise

Project site

Minor

Unlikely

Low

Operation

Plant Site

Minor

Unlikely

Low

1) Design and location of vent in relation to odour.

Drilling

Project site

Minor

Unlikely

Low

1) The drill rig will only be moved from one drill site to the next during daylight hours.

Damage to terrestrial flora and Drilling fauna Construction

Emission of greenhouse gases through venting (geothermal production). Potential Odour. Noise disturbance causing nuisance

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SLR Consulting Australia Pty Ltd

Noise

Noise disturbance causing nuisance

Pumping water

Unlikely

1) Consider discharge into portable well test separator (silencer) to minimise noise. 2) Communication Strategy to inform prior to event occurring.

Unlikely

Low

Insignificant

Unlikely

Low

1) Mitigation assessment completed from consultation with the residence near the airstrip. 2) Additional barriers may be considered dependent on negotiation with this residence.

Minor

Unlikely

Low

1) Communication Strategy to inform prior to event occurring. 2) The use of machinery to create access tracks will be limited to daylight hours

Minor

Unlikely

Low

1) Vehicles primarily used during daylight hours - deliveries can be scheduled for daylight hours. Crew changes one in / one out.

Insignificant

Possible

Low

Insignificant

Likely

Low

Minor

Unlikely

Low

Insignificant

Unlikely

Low

Drill Sites

Noise

Noise disturbance causing nuisance

Drilling

Water intake (Epule River)

Insignificant

Unlikely

Low

Mechanical operation of drill rig

Noise

Noise disturbance causing nuisance

Drilling

Drill Sites

Minor

Unlikely

Low

Vegetation clearance and earthworks

Noise

Noise disturbance causing nuisance

Drilling / Construction

Disturbance Areas

Minor

Unlikely

Vehicle transport of equipment and personnel to/from Takara

Noise

Noise disturbance causing nuisance

Drilling / Construction

Takara area

Insignificant

Unlikely

Mechanical operation of geothermal plant

Noise

Noise disturbance causing nuisance

Transport / traffic to and from site

Social

Nuisance to community

Domestic camp activity

Social Noise

Drilling and construction

Visual

Waste

Storage of general waste

Minor

Drilling

Well testing or reservoir production

Low

Note: nearest business is a restaurant currently not in use. If in use when we are to use the pump reassess . 1) Screen water pump(s) if required to avoid disturbing community.

Note: process disturbance would be the time there is more noise otherwise not regarded as an issue. 1) Specific noise mitigation measures included in ESMMP.

Operation

Plant Site

Minor

Unlikely

Low

Drilling Construction

Takara area

Minor

Unlikely

Low

1) Designated access point from Ring Road travelling east via a right hand turn-off approximately 500 m past Site E.

Drilling

Laydown Area and Camp

Insignificant

Likely

Low

Note: Two options for camp - Beachcombers Resort or construction camp as annex of laydown area. Generator would be the main noise at night and vehicles transport. 1) All personnel to behave in accordance with code of conduct. 2) Construction camp would not allow the consumption of alcohol.

Visual amenity of clearing and Drilling machinery Construction

Takara area

Minor

Unlikely

Low

1) Communication and education strategy to inform community of activities.

Minor

Possible

Low

Poor waste management may Drilling lead to littering and Construction contamination of land

Drill Site, Laydown Area and Camp

Low

1) Install bins to collect general waste 2) General waste to be transported to Port Vila for disposal to landfill. 3) Sewage treatment system to treat on site with sewage sludge transported to Port Vila for disposal to landfill.

Minor

Unlikely

Low

Noise disturbance

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Minor

Unlikely

SLR Consulting Australia Pty Ltd

Environmental Aspects Rating Matrix Historical

Unheard of in the industry

Frequency

< Once in a 100 years

Once in 10-100 years

Once in 1-10 years

About once per year

Several times per year

<1 in 10,000

Between 1 in 1,000 and 1 in 10,000

Between 1 in 100 and 1 in 1,000

Between 1 in 10 and 1 in 100

>1 in 10

Rare

Unlikely

Possible

Likely

Almost Certain

Probability

Has occurred once or Has occurred many Has occurred once or twice in the industry times in the industry twice in the company

Has occurred frequently in the company

RATINGS Safety

Cost

Schedule

Environment

Reputation

1 or more fatalities or >$10M total permanent disability

>2 years change to Permanent impact, long schedule term (decades) regional impact

Adverse global media coverage. Major stakeholders terminate. Company at stake.

1 or more partial disability

1-2 years to change Long term (decades) local to schedule area impact. Medium term (years) regional impact

Adverse national media coverage. Company on notice

6-12 months change Medium term (years) local to schedule area impact. Short term(months) regional impact

Long term (weeks), local media and local interest

2-6 months change Short term (months) local to schedule area impact

Short term (days), local media and local interest

Lost time injury

Medical attention, light duties

$1M-10M

$100k-$1M

$10k-$100k

Minor injury/illness. $0-$!0k First aid needed. No lost time injury

<2 months change to schedule

Temporary impact (days/weeks) to immediate area

Catastrophic

Major

Moderate

Minor

Insignificant

Local interest only, quickly forgotten

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Description of Impact

Socio-economic & cultural issue

Project Phase

Extent

Opportunities for small business and service development in community to support overseas workforce – increasing income generation to improve living standards – e.g. Agricultural impact – increased demand and sale of locally produced foods

Opportunities for training and employment in areas to better realise tourism and hospitality potential in the area (accommodation, fishing, hot springs)

Economy, Employment and Livelihoods

Construction

All Phases

Level of Severity

Consequence

Areas nearby

Duration

Short-medium

Medium-term

Nature of Severity

Likelihood

Severity

Medium

Level of Significance

Negative Impact

Low

Positive Impact

Possible

Mitigation Measures

Positive Impact

Medium

Possible

Medium

Potential opportunities to improve inter-organisation cooperation

Culture & Social Dynamics

All Phases

Efate Island

Short-medium

Low

Positive Impact

Possible

Medium

Opportunities to improve community infrastructure and visual amenity through implementation of community investment initiatives

Community Infrastructure

All Phases

Areas nearby

Long-term

Low

Positive Impact

Possible

Medium

Opportunities for training and employment in areas to better realise tourism and hospitality potential in the area (accommodation, fishing, hot springs)

Work on kastom land, including possible clearing of gardens, crops and plantation trees during production drilling and plant operation.

Economy, Employment and Livelihoods

Property and kastom land

All Phases

Drilling / Construction

Areas nearby

Site-Specific

Long-term

Short-medium

Medium

Low

Medium

Positive Impact

Negative Impact

Possible

Medium

High

Increased traffic along coastal Ring Road bringing good and services to site with increased accident potential Health and Wellbeing especially with children

Drilling / Construction

Efate Island

Short-medium

High

Negative Impact

Possible

High

Increased access to economic resources for individuals and households, allowing potential for substance abuse Health and Wellbeing especially amongst the youth through increased spending capacity .

All Phases

Areas nearby

Short-medium

High

Medium

Negative Impact

Possible

High

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Residual Risk

Negative Impact

1. Encourage commercial local sale of agriculture and fisheries products. 2. Project promotes use of local produce for workforce catering 3. Investigate opportunity to provide a regular transport service from Takara to Port Vila to sell produce 4. Support for local selling of agricultural products.

1. Maintain visual aesthetics and impact of current environment to encourage local tourism opportunities - Use colours for equipment and facilities that blend into or accentuate local environment - Encourage opportunities for improving hospitality services- job opportunities for local catering businesses - Encourage opportunity for other small businesses – cleaning, washing, leisure related activities for workers.

1. Through CBT existing programs that are being provided by government, donors, NGO’s are identified that assist community capacity to support business/grow community income e.g. value adding to agricultural production 2. Geodynamics representative to participate in CBT

CBP used to identify community priorities to improve community infrastructure and visual amenity of existing tourist facilities

1. Where possible restrict all work to non-garden areas. 2. Implement a Kastom Owners Trust (KOT) to pay rent to eventually declared Kastom owners. 3. Implement a local work plan to hire local workers for drilling and community projects during exploration drilling phase. 4. Implement agreed consultation process outlined in ESMMP

1.CBT identifies opportunities to sponsor community awareness programs that educate community members about drug use, sponsor cultural appropriate programs e.g. Won Smol Bag Performance used to promote messages.

Medium

Potential for increased tension between different groups Culture & Social or communities due to perceived inequalities in the Dynamics distribution of project benefits

Vulnerable groups (e.g. women, youth, disabled) may be marginalised and not have access to jobs and benefits

Limited opportunity for training and skilled employment opportunities

Vulnerable groups

Education and Training

All Phases

Influx of workers to Takara for the Project, including from overseas, and other parts of Efate and nearby islands

Demographic change

Drilling / Construction

Disturbance to / on places or characteristic features of cultural or historical significance - scrub duck habitat

Culture & Social Dynamics

Drilling / Construction

Project workforce is not respectful of kastom (e.g. not respecting local norms, i.e. Sunday church )

Culture & Social Dynamics

Western influences (through foreign workforce) has the Culture & Social potential to impact retention on local kastom Dynamics

Changes in community perceptions around health, safety and security and environmental impacts

Health and Wellbeing

All Phases

Efate Island

Areas nearby

Short-medium

Medium-term

Long-term

Short-term

Medium

Low

Medium

Low

Medium

Negative Impact

Medium

Negative Impact

Medium

Negative Impact

Low

Negative Impact

Medium

Negative Impact

Low

Negative Impact

Low

Negative Impact

Medium

Negative Impact

Possible

Almost Certain

Possible

High

Medium

Potential nuisance impacts from project – noise, odour and visual amenity

Health and Wellbeing

All Phases

Areas nearby

Short-medium

Medium

Low

Negative Impact

Likely

Medium

Inability to use existing runway for emergency landings

Landuse

All Phases

Site-Specific

Short-term

medium

Low

Negative Impact

Possible

Medium

1. CBP is developed with representation from all groups and maintained throughout life of project 2. Clearly delineate KOTrent payments (once Kastom owner is declared) from Community Benefits 3. Implement ESMMP consultation process

1. ESMMP consultation contains direct strategies to involve women and youth. 2. CBT supports women and youth specific projects. 3. Establish a Takara women’s group to allow easy direction of questions and concerns to Geodynamics.

1. As part of CBP, investigate opportunities to upskill and train local community members for future project roles. 2.CBT supports education and training programs

Develop Geodynamics Cultural Training which includes: - Cultural awareness training of all workers – with community - Develop Workforce Code of Conduct. - Map ‘no go’ areas for staff.

1. Implement Cultural Training Program. 2. Establish separate workforce accommodation. 3. CBT may assist community with protecting Kastom practices (language documented, songs and oral history recorded etc)

1. Implement ESMP consultation process which will involve ongoing community awareness and education for project across all sub groups. 2. Provide information as it comes to hand in a factual and pragmatic manner

1. Implement ESMMP. 2. Potential temporary resettlement of one or two houses on the airstrip that are likely to be severely impacted by drilling noise 3. Minimise visibility of separated water plume

1. Inform Aviation authorities when Geodynamics is activities on the site.

Medium

Low

Social Aspects Rating Matrix Consequence Rating Extent

Rating

Level of Severity Rating

+ Duration + Severity

Extent

Duration

Likelihood Rating

Severity

X Rating

Level of Significance

Level

Positive Impact

Negative Impact

Rating

Likelihood

Descriptor

Score

Negative

Positive

Significantly positive and enduring impact on social, economic or cultural environment

Irreparable damage to/destruction of highly valued items of great cultural significance or complete breakdown of social order

Almost Certain

Greater than 90% chance of impact occurring

76 and over

Very high

International scale

Permanent / irreversible (more than 50 years)

Very high

National scale (Vanuatu)

Long-term (25-50 years)

High

High improvement to social, economic or cultural Serious social issues/temporary environment or quality of life for cease of systems functioning affected people

Probable

50-90% chance of impact occurring

51-75

High

Whole of Efate Island

Medium-term (525 years)

Medium

Moderate social issues and/or Moderate improvement to moderately significant damage to social, economic or cultural items of cultural significance. environment or quality of life for Social environment altered but affected people systems continue to function

Possible

10-50% chance of impact occurring

26-50

Medium

Low

Minor improvement to quality of life and/or social functioning

Minor changes to the social environment, which are easily reversible over time

Unlikely

Less than 10% chance of impact occurring

0-25

Low

Negligible

Negligible improvement to quality of life and/or the social, economic or cultural environment

Negligible impacts on the local population, repairable over time. Temporary impairment of the availability of items of cultural significance

Rare

Impossible

Areas near the project Short-medium infrastructure (i.e. North term (1-5 years) quadrant of the island(

Site-specific

Short-term (less than 1 year)