APPLICATION FOR NON-PASTORAL USE OF PASTORAL LAND (s.86 Pastoral Land Act) 1: APPLICANT’S DETAILS

Legune Land Pty Ltd Name of Lessee Brian ACN John 092 818McLean 810 Applicant’s Full Name Lessee Position (eg. Lessee / Manager) 07 4619 8777 Telephone

Mobile 07 4693 1580 Facsimile [email protected] Email PO Box 158 PITTSWORTH QLD 4356 Postal Address

2: DETAILS OF LEASE ON WHICH NON-PASTORAL USE IS PROPOSED

Legune Station Lease Name Perpetual Pastoral Lease NT No. 1062 Pastoral Lease Number Perpetual Lease Expiry Date (for Term lease) NT Portions 798, 3222 NT Portion Number Victoria River District Location / Pastoral District 1788 km ² Total Area of Lease (km2) ~38 km² Size of Proposed Area for Non-Pastoral Use (km2) Total area dedicated to aquaculture operations at full scale is 25 858 ha. For Stage 1 approximately 3800 ha are required as non-pastoral use. Refer Table 1 for specifics

Project Sea Dragon Pty Ltd October 2016 1

Refer Attachment 1 Location of Proposed Area for Non-Pastoral Use (attach geo- referenced locality plan)

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2B. Project Proponent

Project Sea Dragon Pty Ltd (PSD) ACN 604 936 192 Name of Proponent Christopher David Mitchell Applicants Full Name Position Managing Director

08 9321 4111 Telephone

Mobile 08 9321 4411 Facsimile [email protected] Email

P.O. Box 7312 Cloisters Square, Perth WA 6850 Postal Address

3: FEES AND CHARGES

An application fee and annual charges apply to non-pastoral use permits using a two-tiered system. Tier 1 covers basic operations that require minimal development such as tourism campgrounds. Tier 2 covers more substantial operations such as horticulture, aquaculture, forestry, purpose-built tourism accommodation, station stores and extensive agriculture that require a valuation based on the proposed purpose.

Application Fee The current one-off application fee for Tier 1 non-pastoral operations is $1,350.00 and for Tier 2 non-pastoral operations is $2,950.00. Payment is required at the time the application is lodged.

Annual Fees For Tier 1 non-pastoral operations an annual flat rate fee of $500.00 will be charged for the duration of the non-pastoral use permit.

For Tier 2 non-pastoral operations the annual fee charged for the duration of the permit is calculated using the following formula: (Unimproved Value (UV) of the land for purpose x percentage) x revenue unit which is currently $1.07.

UV per Hectare UV x 1000 UV 1000 x (UV x 3%) x Revenue Annual Fee for Agriculture hectares 3% Unit ($1.07) Payable $650 $650 000 $19 500 $20 865.50 $20 865.50

*Please note this is an example only. Each property will have a different UV depending on its location and intended non-pastoral use*

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The payment of annual fees for both Tier 1 and Tier 2 will be staged as follows:

Year 1: Only the application fee is charged Year 2: 25% of the calculated annual fee is charged Year 3: 50% of the calculated annual fee is charged Year 4: 75% of the calculated annual fee is charged Year 5: 100% of the calculated annual fee is charged

For more information about the structure of non-pastoral use fees and charges please refer to the Non-Pastoral Use Guidelines 2014.

4: NON-PASTORAL USE PURPOSE

Tourism Forestry

Horticulture Agriculture

 Aquaculture Other

4.1 Non-pastoral use details

Seafarms proposes to develop Project Sea Dragon, a large, land-based aquaculture facility on Legune Station for the year-round production of Black Tiger prawns (Penaeus monodon). Project Sea Dragon is a staged project with a long development timeline of approximately ten years. Stage 1 will comprise circa 1120 hectares of grow-out ponds and supporting infrastructure, with subsequent stages expanding to 10,000 hectares of grow-out ponds and associated infrastructure.

Table 1 below indicates the components of the Project at Stage 1. All of the Project elements to be situated on Legune Station are collectively referred to as the “Grow-out Facility” (See Attachment 2 – Master Plan). The Grow-out Facility includes the Grow-out Centre as well as the Environmental Protection Zones, headworks infrastructure and ancillary infrastructure to support the Grow-out Centre (e.g. roads, canals and channels, power plant and accommodation facilities). For further detail refer to Section 11.

The attached Master Plan (Attachment 2) shows a proposed lay-out of aquaculture facilities to conform with a notional 10,000 ha of production ponds.

Stage 1 of the development consisting of three (3) farms is shown in darker grey with internal blue markings. Engineering design and feasibility and environmental assessment work has been focused on

Project Sea Dragon Pty Ltd October 2016 4 this part of the footprint together with the services required to develop the first stage. Headworks infrastructure is being designed to support subsequent stages.

The second grouping shows farms marked out in light grey and indicates area where there is medium confidence of being able to locate future farms. The dashed outlines show the potential locations of farms where engineering assessment has not yet been undertaken, and therefore these areas have the lowest level of precision and certainty.

Project Sea Dragon reiterates that environmental approvals have been sought for Stage 1 of the development to this point only. The utility of the Master Plan is that for the purposes of non-Pastoral Use it enables the Pastoral Lands Board to consider the full extent of the proposal for Non-Pastoral Use. In building these facilities flexibility will be required in order to take account of more precise information in relation to environmental, cultural and heritage matters.

TABLE 1: PROJECT SEA DRAGON – COMPONENTS

Project Component Stage 1 Footprint (ha) Seawater intake pump station 9.32 Seawater intake channel 64.64 Settlement and maintenance pond 336.31

Main feeder channel 88.01 Freshwater channel 160.11 Farm 1 (including grow-out ponds, farm feeder channel, pond feeder 531.61 channels, pond discharge channels and farm discharge channel)

Farm 2 (including grow-out ponds, farm feeder channel, pond feeder 485.10 channels, pond discharge channels and farm discharge channel)

Farm 3 (including grow-out ponds, farm feeder channel, pond feeder 472.58 channel, pond discharge channel and farm discharge channel)

Grow-out ponds Included in farm areas - individually each grow-out pond is 10 ha

Farm feeder channels Included in grow-out farm footprint Pond feeder channels Included in grow-out farm footprint Pond discharge channels Included in grow-out farm footprint Farm discharge channels Included in grow-out farm footprint Internal farm recycling ponds (IFRP) 441.51 Main discharge channel (MDC) 120.18 Biosecurity zones 168.29 Environmental protection zone (EPZ) and outfall 376.44

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Project Component Stage 1 Footprint (ha) Farm services area 1 5.70 Farm services area 2 5.76 Legune Access Road 131.16 Central service road 129.73 Transmission line corridor 157.74 Central Facilities 21.48 Village 28.62 Borrow pits (shale and laterite) 52.86 Solar farms 50.27 Airstrip 23.55 Electrical Substation 0.48

These calculations of footprint refer to land use and are not equivalent to the areas calculated in the land clearing application for Stage 1.

Attachment 11 is a map showing the proposed arrangement of aquaculture facilities based on the Master Plan and any other relevant information currently available. The red boundary shows the indicative limit to the aquaculture operations; the area within the red boundary markings is calculated to be 25,858 ha.

There are a number of caveats to the proposed boundaries shown on Attachment 11. These are: i) Further consideration of sacred sites through both an Aboriginal Areas Protection Authority investigation and discussions with Traditional Owners towards an ILUA (see section 10) ii) Detailed design engineering and cost feasibility including issues that may emerge in relation to water movement (for Stages after Stage 1) iii) Environmental approvals.

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5: LAND CLEARING

Does the proposed area for non-pastoral use require a clearing permit?

 Yes No

If yes please advise the current status of the land clearing application:

Approved

Pending approval

 Application to be lodged

An application to clear land will be lodged. A map showing the vegetation communities on the property is at Attachment 3. A vegetation clearing map is at Attachment 4.

Land will be cleared to prepare the site for earthworks to construct the infrastructure for Stage 1. Most of the area to be cleared for ponds is pasture, vegetated by native and introduced species.

Additional clearing will be required for service corridors, borrow pit, and village and power station footprints that are located higher in the landscape in open woodland.

6: WATER REQUIREMENTS

Licensing provisions apply to Water Control Districts and Water Allocation Plan areas. Contact the Department of Land Resource Management (DLRM) Water Resources Division on (08) 8999 4613 for advice on whether this applies to you.

Is a water license required?  Yes No

If yes please advise the current status of the water license:

 Approved (please attach copy of permit)

Pending approval

Application to be lodged

Project Sea Dragon requires both freshwater and seawater. There is sufficient fresh water available from the property’s existing dam to satisfy the Project’s needs for Stage 1 (7 to 9 GL/y). The dam’s current capacity is 35 GL. At full scale development the Project requires an average of 75 to 90 GL/y of fresh water.

There is an existing and current license for freshwater extraction from Forsyth Creek Dam (License Number: 8110019) that enables the extraction of water for the property (Attachment 5). It is envisaged that the transfer of this license and then its extension will be required.

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As the Project expands, additional water storage including access to fresh water supply will need to be secured, which may require a water license. Options for freshwater, including the construction of dams for additional water storage, are under investigation.

Seawater will be sourced from Forsyth Creek. The point of intake is 129.414 E, 14.976 E.

Seafarms will lodge an application for a surface water extraction licence to take saltwater from the estuary of Forsyth Creek.

7: SACRED SITES

Are there any sacred sites or significant sites protected under the Aboriginal Sacred Sites Act located within the proposed area for non-pastoral use?

 Yes No

Please provide a copy of the report from the Aboriginal Areas Protection Authority (AAPA) outlining the results of a register inspection. Contact AAPA on (08) 8999 5511or visit www.aapant.org.au.

A copy of the report from the Aboriginal Areas Protection Authority is at Attachment 6/1 and 6/2.

8: SITES OF CONSERVATION SIGNIFICANCE

Are there any sites of conservation significance located within the proposed area for non-pastoral use?

 Yes No

If yes, please show the location of sites of conservation significance on a map and describe how risk will be mitigated.

The Stage 1 Legune Grow-out Facility project footprint is situated within the Legune Coastal Floodplain Site of Conservation Significance (Attachment 7). Potential impacts on the conservation values of the Legune Floodplain are comprehensively assessed as part of the EIS, as described in the following section (section 9) of this application.

As part of the EIS a full environmental risk assessment was undertaken, available at https://ntepa.nt.gov.au/__data/assets/pdf_file/0003/375951/draft_eis_seadragon_legune_growout_v1_ ch8_risk_assessment.pdf

The following table summarises the key elements from the risk assessment and the Pastoral Lands Board may wish to note that governance and management of environmental risks on an on-going basis are usually managed through an Approved Environmental Management Plan and any other conditions imposed by the EPA on the project.

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The Legune coastal floodplain has been identified by the Northern Territory Government as a site of conservation significance for the following reasons:

 Potential presence of threatened species  Abundance of waterbirds including total number and counts of individual species  Presence of waterbird breeding colonies  Presence of turtle nesting site at Turtle Point  Presence of wetlands of national significance in the Directory of Important Wetlands.

Risk Initial Risk Control Strategies Residual Risk Evaluation Rationale Rating Rating

Likelihood Consequence Level Risk Likelihood Consequence Level Risk

Clearing of 3 3 M Undertake pre-clearance 2 2 L Vegetation clearing vegetation for the surveys to confirm the will have no direct project results in a presence or absence or indirect impact significant impact threatened fauna species. on the turtle on the values of Utilise spotter catchers to nesting site at the Legune Coastal conduct pre-clearance Turtle Point. Floodplain Site of assessments and attend Vegetation clearing Conservation clearing as required. will have no direct Significance Minimise vegetation or indirect impact clearance to the smallest on waterbird extent possible. breeding colonies Clearly mark out limits of As assessed in the clearing and individuals to Terrestrial Fauna retain. and Avifauna Avoid land clearing during assessment for the the wet season. EIS (Volume 2, Install structures that Chapter 6) clearing would capture sediment of vegetation will downstream of not result in a development. significant impact Stage clearing of vegetation to nationally to minimise areas of bare significant ground and clear land only aggregations of as required and in waterbirds, in accordance with the terms of both erosion and sediment overall waterbird control plan. abundance and the Clearing to be undertaken abundance of sequentially to encourage individual species. fauna to disperse. As assessed in the Rehabilitate/stabilise Terrestrial Fauna cleared land as soon as and Avifauna possible after works have assessment for the been completed. EIS (Volume 2, Develop and implement Chapter 6) clearing vegetation clearing sub- of vegetation will plans which include areas not result in a not to be cleared (no-go significant impact areas) and make all to any listed workers aware of them threatened species. through environmental The project has management plan and site been designed to

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work briefings. avoid impacts on Development and wetlands of implement fauna national management plan including significance. A procedures for managing small area included vegetation clearing in the mapped operations and any direct extent of wetlands fauna impacts (injuries, of national entrapments etc). significance will be Controlled burns and/or intersected by the vegetation mulched for re- central services use where practicable, no road. This area is disposal of cleared mapped as a void. vegetation into waterways These areas are or wetlands. located on higher No laydown areas or ground and are not material storage in wetland subject to areas. inundation. Where practicable, temporary fencing to exclude fauna from vegetation clearing areas. Apply buffers and visual screens between construction areas and migratory and waterbird habitat at the Alligator Creek road crossing. Retain screening vegetation to waterbird habitat areas as long as possible during construction. Soil management procedures to target specific areas subject to salinity, sodicity and enhanced erosion including mitigation, soil amelioration and rehabilitation as required. Strict controls for waterway crossing works including erosion and sediment controls, defined trafficable areas etc.

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Sites of Conservation Significance Search

NT Sites of Conservation Significance: www. lrm.nt.gov.au/plants-and-animals/conservation-for- land-managers/sites-of-conservation-significance/map

Register of the National Estate: www.environment.gov.au/cgi-bin/ahdb/search.pl

NT Parks and Reserves: www.ntlis.nt.gov.au/imfPublic/imf.jsp?site=nreta (check box for “Parks and Wildlife”, refresh map, click and drag over area of interest)

9: ENVIRONMENT PROTECTION

Non–pastoral use activities must comply with the Waste Management and Pollution Control Act, the Environmental Assessment Act and the Public and Environmental Health Act. This will be taken into account when considering your application.

Project Sea Dragon (PSD) is committed to ecologically sustainable aquaculture and the implementation of world’s best practice operations and environmental management systems, while continually improving processes to deliver optimal environmental outcomes.

Stage 1 of Project Sea Dragon (the Project) is being assessed at the highest level of assessment – Environmental Impact Statement (EIS), under the NT Environmental Protection Act, and has been deemed to have the potential to impact on matter(s) of national significance under the Commonwealth Environment Protection and Biodiversity Act 1999 (EPBC Act). Accordingly, the proponent submitted a Notice of Intent (NoI) to the NT Environment Protection Agency (EPA) in July 2015, which has informed the EPA’s framing of Terms of Reference for the EIS. The NoI (and Terms of Reference) was advertised publicly on the NT EPA website, as per government policy. The environmental approvals strategy will incorporate environmental and social impact assessment requirements.

A Bilateral Agreement in regards to the Commonwealth EPBC Act exists between the Northern Territory and Australian Governments, and accordingly a single EIS was prepared to address the requirements of both governments. The NT and Australian Governments will both be required to approve the Project under their relevant regulatory statutes. Development of other facilities that are components of the entire Project will be referred to agencies as required. This ‘split referral’ approach was agreed by governments as a result of consultations.

PSD will act as the sole proponent for all aspects of Project Sea Dragon and is responsible for the design and acquisition of a set of baseline environmental data suitable for the purposes of an EIS. Having secured an Access and Option Agreement (AO) with the lessees of Legune Station, the proponent commenced data collection in April 2015.

The Environmental Impact Statement was lodged with the NT EPA on the 29th September 2016 and was publicly advertised on the 8th October 2016. The Executive Summary of the EIS is attached here as Appendix 1.

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10: NATIVE TITLE ACT

The Pastoral Land Board will continue to ensure the provisions of the Native Title Act are complied with before approving a permit. Notification as required is the responsibility of the Board.

Project Sea Dragon is aware that Native Title has been determined over the Legune Pastoral Lease (Federal Court Number(s): NTD9/2010; NNTT Number: DCD2011/007).

A search of the NT Heritage Database indicates that there are registered and recorded heritage sites on and near the land proposed for the Project.

The Project footprint has been developed to avoid known sacred sites.

Project Sea Dragon has consistently acknowledged the rights of Native Title Holders and wishes to develop an Indigenous Land Use Agreement with Native Title holders. To this end Project Sea Dragon wrote to the Northern Land Council (NLC) initially in September 2014 seeking to commence discussions towards an Indigenous Land Use Agreement, and reiterated its request in March 2015.

Since then Project Sea Dragon has met regularly with NLC officers, presented the Project to both the NLC and Traditional Owners and has participated in discussions with Native Title holders as organised by the NLC as the relevant representative body.

Notwithstanding that the development of the Project is intended to occur over multiple stages with the initial environmental approval being sought for the First Stage, Project Sea Dragon has presented the development concept to Native Title holders on the basis of a full-scale development to ensure that they are fully informed of the potential project scale and opportunity.

Project Sea Dragon also respects the expressed desire as conveyed through the NLC by Traditional Owners for discussions between Project Sea Dragon and Native Title holders to remain confidential.

As the proponent of the project, Project Sea Dragon will continue to work towards reaching a mutually acceptable agreement with Native Title Holders as expressed within an Indigenous Land Use Agreement.

In addition, Project Sea Dragon is also mindful of the provisions of the Sacred Sites Act. An Authority Certificate was obtained to permit investigative ‘early’ works at Legune in order to prove-up earth-moving concepts as part of the Bankable Feasibility Study. Authority Certificate(s) for the non-pastoral Land Uses(s) as described in this application have been applied for and the proponent understands that required work is underway.

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11: DETAILS OF INTENDED NON-PASTORAL USE

Please write a comprehensive description of the proposal including level of development/usage (i.e. visitor numbers for tourism, number of trees and species type for horticulture or forestry), whether outside operators will be involved, management setup, proposed access etc.

The intended non-pastoral use is aquaculture. The proposal is to construct and operate a land-based aquaculture facility for the production of black tiger prawns (Penaeus monodon). The development will be staged over several years, commencing with the construction of Stage 1 in 2017. This includes grow-out farms for the prawns and ancillary infrastructure: power generation, staff accommodation, irrigation infrastructure, drainage channels, water intake pipelines, administration facilities, service corridors, roadworks etc. Stage 1 of the Project with 1120 hectares of grow-out ponds will produce approximately 14,000 tonnes per annum (tpa) of prawns. Expansion of the project from Stage 1 to full scale will give a cumulative 10,000 hectares of prawn ponds with a forecast annual production of 120,000 tpa of prawns.

The Grow-Out Centre is located on Legune Station, comprising NT Portions 798 and 3222. The main project area is on the estuarine-deltaic plain (i.e., floodplain, nominally above RL +4.5-5m AHD) of Legune Station, utilising the largely grassed areas currently used for cattle operations. The Grow-out facilities will be constructed on these areas to provide flood immunity, storm surge and sea level rise immunity, and to avoid the coastal plain (nominally below RL +4.5-5m AHD) containing wetlands, intertidal ecosystems and potential acid-sulphate soils.

Ponds and channels will be constructed entirely of the naturally occurring surface clay soils (commonly referred to as the ‘black soil plains’) on the floodplain which has hitherto supported the pastoral operations. Ponds and channels will not be lined with any other materials, as these soils provide the impermeability needed to retain the water for operations. All ponds and channels have been designed to be based at the natural surface or as close to that surface as possible, to avoid the underlying silts and PASS layers identified in the geotechnical investigations.

In Stage 1 a total of 3 Farms will be built, each consisting of:

Up to 40 ponds, of 10 ha each. Each pond is nominally 316m x 316m, but in some cases the dimensions may be slightly rectangular. The layout of each farm varies slightly (refer Attachments 8 noted below for detailed mapping). o Farm 1 will have 40 ponds (refer Attachment 8/1) o Farm 2 will have 36 ponds (refer Attachment 8/2 o Farm 3 will have 36 ponds (refer Attachment 8/3) A farm feeder channel (FFC). Pond feeder channels (PFC). These may number 3 or 4, depending on the individual farm layout. Pond discharge channels (PDC). These may number 2 or 3, depending on the individual farm layout. A farm discharge channel (FDC). An Internal Farm Recycling Pond (IFRP), having a minimum depth of 1.5m and a volume, when combined with the FDC, of a minimum of 30% of the total farm ponds volume.

The 3 Farms in Stage 1 will be supported by: Seafarms Group Limited October 2016 13

Farm services (infrastructure) Common water intake infrastructure, comprising: o A seawater intake pump station o A seawater intake channel o A settlement pond o A Main Feeder Channel (MFC) o A freshwater channel (FWC) Common water discharge infrastructure, comprising: o A Main Discharge Channel (MDC) o An Environmental Protection Zone (EPZ) and outfall

Farms will operate independently of each other, but coordinate in respect of water balance.

Road access to the Project is from Western . It will be necessary to upgrade the public road (Weaber Plains/Cave Spring road) between the WA border and Legune. The proposed road accessing the property is outside the Legune cadastre.

It will also be necessary to upgrade roading within the property as part of the project. This roading has the potential to serve multiple purposes as it will enhance the ability for the cattle operations to turn-off cattle and get them to market during any month of the year whereas currently the pastoral lease is inaccessible by road during much of the wet season and the floodplain is not trafficable for much of that time.

Refer Attachment 9 for road access map.

A full project overview can be found in Volume 1 of the EIS.

Pastoral use

Legune Station is currently managed as a large-scale pastoral operation, carrying up to 32,000 head of cattle on the pastoral lease. Pastoral operations on Legune will be impacted by PSD construction and operations; primarily through a reduction in cattle-carrying capacity and control of the fresh water resource. An analysis of the expected impact to the pastoral operation is presented as Attachment 10, outlining impact on grazing area, carrying capacity and turnoff.

Pastoral operations will be impacted due to: Reduced pasture area - as fertile floodplain is covered by prawn ponds and infrastructure Restricted cattle operations movement – due to water channels and traffic corridors Reduction/cessation of pasture irrigation – as water is prioritised for use in the prawn farms

As PSD develops, up to 20,000 hectares of the fertile floodplain is removed from grazing, reducing grazing capacity by 3000 to 6000 adult equivalents.

Refer to Attachment 11 for detailed mapping of pastoral and project areas.

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Economic benefits of the proposal

As a requirement of the EIS, Project Sea Dragon commissioned Acil Allen to undertake an economic analysis of both Stage 1 of the project and the full scale project. The analysis of Stage 1 on Legune Station (the grow-out facility, across 23 years of operational life, and its impact on the Northern Territory, the Kununurra region and more broadly, Australia as a whole) found that the construction and operations of the Stage 1 Grow-out Facility would have a significant positive impact on employment, real income and real economic output across these areas over the period 2017-2024 (2024 being the point at which steady state operations are reached).

Stage 1 at Legune Station will increase real income across:

The Northern Territory: by a cumulative total of $350 million The Kununurra region – by a cumulative total of $162 million Australia as a whole – by a cumulative total of $1,478 million For context, this is equivalent to a one - off increase in the average real income of all current residents of the Northern Territory of $1090.00

Stage 1 at Legune Station will increase real economic output across:

The Northern Territory - by a cumulative total of $502 million The Kununurra region - by a cumulative total of $108 million Australia as a whole (real GDP) - by a cumulative total of $903 million

Employment: Stage 1 at Legune Station is expected to create direct employment of 444 FTE workers during the construction period, 2017-2019. Peak construction employment will occur in the second year of construction, with just over 300 FTE workers employed. At Stage 1 steady state operations (2024), the Project will employ approximately 334 FTE workers

Project Sea Dragon at full-scale is expected to result in:

Prawn production valued at an average of $ 3 billion per year, over the period 2017-2032 An increase in the NT’s real GSP by a cumulative total of $19.7 billion (to 2032) An average annual increase of employment in the NT of around 905 FTE jobs a year A construction workforce over the period 2017-2024 of 2,800 FTE jobs A steady state operating workforce of 1, 800 FTE a year (from 2024 onwards)

The Executive Summary of an Acil Allen Economic Assessment for Stage 1 of the Project is at Appendix 2.

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12: EXPECTED DURATION OF NON-PASTORAL USE

Under the new amendments to the Pastoral Land Act non-pastoral use permits can now be approved for a period of up to 30 years, or in the case of a Term Pastoral Lease until the expiry of the lease. Please write the number of years expected for this non-pastoral use enterprise

The Project intends to continue as a sustainable aquaculture operation with the current application being for 30 years with an anticipated option to renew being exercised 28 years from granting of the non-pastoral use. The Proponent expects to apply to renew the non-pastoral use permit. Beyond these statutory and regulatory constraints there is no intrinsic technical limit to the continuation of the operations.

13: DETAILS AND COST ESTIMATES OF INFRASTRUCTURE / DEVELOPMENT

All cost estimates are preliminary and are based on the information at hand. Cost estimates are intended to be ±10% upon completion of the Bankable Feasibility Study. Ultimately costs will depend on final engineering design and contracted prices. These cost estimates are sufficient for the Pastoral Lands Board to understand the nature and scale of the proposed investment. The Proponent will be working to reduce the initial capital costs.

TABLE 2: COST ESTIMATES, INFRASTRUCTURE

Proposed Description of Infrastructure Preliminary Estimated Cost Grow-out farms, village Aquaculture ponds, water conveyance channels, AUD $ 297M Refer Attachment 8 for Grow- accommodation out farms layout Power station The power requirement for Stage 1 of the development at Legune has been calculated to be 24 MW. The Diesel only: 24 MW, AUD preferred solution for this power generation is a hybrid $ 24M renewable-hybrid (Photovoltaic and Low-load Use Diesel) system. This Non-Pastoral Use permit application Hybrid Renewables-Diesel reflects this solution. system: 24 MW, AUD $96 Nonetheless a ‘Base case’ for a diesel only solution has M also been prepared. Achievement of the preferred solution depends on financing. In terms of the Pastoral Land Board’s consideration, the total power requirement for the 10,000 ha of production ponds will be determined based on data available from Stage 1.

Central facilities Power station and switchyard, LNG & diesel storage, AUD $65M based on Hybrid laboratory, administration, amenities, feed store, cool

store, maintenance workshop, warehouse, car parking Renewables – Diesel System

Roads The development requires upgrading of the public road to the $38M – internal access C-D boundary of the lease and then there is a requirement for a roads central access road marked C-D & E-F on attachment 7 This E-F infrastructure can support the broader development of multiple uses within the property. Cost will also vary according Refer Attachment 9 to final road design and engineering.

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14: DESCRIPTION OF SITE

Please provide an accurate description of the site (topography/vegetation), photographs and comments on any possible environmental impacts.

The Project is proposed to be located at Legune Station in the Northern Territory. The Station has historically been used for cattle grazing under a pastoral lease and was originally as outstation of the Victoria River Downs Station. The improvements on the land include dwellings and farm sheds, cattle yards, stock watering points, paddocks and fencing, and a 35,000 ML freshwater dam constructed on Forsyth Creek (2006) that is used for the irrigation of pasture during the dry season. The Legune property is the most modified of all the candidate sites assessed by PSD for large-scale prawn grow-out.

The northern part of Legune Station comprises tidal flats (referred to below as the coastal plain) bordering the Victoria and Keep Rivers. These areas are subject to tidal inundation and consist of poorly drained clays and mud. The majority of the project footprint is located south of the tidal flats in the estuarine deltaic plain (above the areas of regular tidal inundation) and comprises poorly drained black soils derived from the underlying carbonates or volcanics. The estuarine-deltaic plain is seasonally flooded and inundated for 3 to 6 months a year. Desiccation cracks and gilgais form on these soils as they dry after the wet season (Dunster et al., 2000). Quaternary coastal alluvium, sheetwash and sheetflood deposits are scattered throughout this area. Other project elements lie to the south-west of the coastal floodplains, within the lateritic plains and rises associated with deeply weathered profiles (laterite) including sand sheets and other depositional products. Within these lateritic plains calcareous sandstone, quartzic dolarinite and leached carbonite rocks of the Burt Range Formation are present.

More specifically, the footprint for Project Sea Dragon is located entirely on a stepped series of four plains extending from the delta between the mouths of the Keep and Victoria Rivers to the foot of the Legune ranges and Spirit Hills.

In order of increasing elevation, these plains are: The coastal plain – a very extensive, contiguous plain formed from marine sediments, subject to tidal influence and elevated from just below sea level to approximately five metres AHD. The estuarine-deltaic plain – a broad, contiguous plain above the level of tidal influence (except perhaps during king tides and cyclones), composed of black/brown cracking clays deposited during flood events by the Victoria and Keep Rivers, and elevated between approximately five and ten metres AHD. The majority of the Project is located on this plain. The coastal erosional plain – a sandy/sandy clay plain, often laterised and a remnant of a land surface that likely predates the coastal and estuarine-deltaic plain and which has been encroached upon by both (and is being eroded by the processes that formed them). It is present within the Project Area as one large plain and a number of smaller remnants. It is situated between 10 and 50 m elevation. A flood-out plain associated with a tributary of Sandy Creek - it crosses the Project Area in the far south, and is characterised by seasonally inundated swamps. It lies between 10 and 25 m elevation and has the smallest Project Area extent of any of the plains.

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Refer Attachment 12 for a comprehensive description of the four plains and associated vegetation.

Reference: Dunster, JN, Beier, PR, Burgess, JM and Cutovinos, A 2000, Auvergne, Northern Territory. 2nd edition. 1:250, 000 scale geological map, SD52-15. Northern Territory Geological Survey, Darwin.

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15: STAGING OF DEVELOPMENT

TABLE 3: STAGING OF DEVELOPMENT – STAGE 1

Activity Milestone Details

Project Sanction (all Approvals received) March 2017 1st wild catch into Founder Stock Centre, Exmouth September 2016 Legune construction commencement Precise commencement of - Farms, channels, seawater intake May 2017 works is dependent upon - Roadworks July 2017 obtaining the Permits to proceed. Commencement is - Village May 2017 also dependent upon seasonal - Power generation, Central Facilities, etc. April 2019 conditions. - Pumps, piping, electrical controls July 2018

Legune Construction completion In practice the proponent - Farms, channels, seawater intake October 2019 anticipates a rolling - Roadworks October 2018 commissioning with handover to operations commencing as - Village November 2017 each farm is commissioned. - Infrastructure (power, Central Facilities, etc.) December 2019 Commence operations at - Pumps, piping, electrical controls November 2019 Legune

16: OTHER RELEVANT INFORMATION

Additional information can also be provided in attachments if required. Attach plans outlining the development to assist in assessment of the application.

Project Sea Dragon has been awarded Major Project status by the Northern Territory and Western Australian Governments, and Major Project Facilitation status by the Australian Government. As the Project requires coordination between State and Federal governments, it is anticipated that the following will be negotiated:

A non-binding Project Facilitation Agreement (PFA) between the NT Government and PSD that outlines the key objectives for each party from the development of the project, and documents how the parties will interact. As it is likely that Project Sea Dragon will also trigger the Commonwealth EPBC Act, it is recommended exploring if the PFA could also incorporate the responsibilities and accountabilities of Department of the Environment. A Project Development Agreement between the parties which typically defines the deliverables for each party.

Seafarms Group Limited October 2016 19

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Project Sea Dragon Stage 1 Legune Grow-out Facility CO2 �·�seafarms n Draft Environmental Impact Statement Australia

� CONTENTS

L 1 Introduction ...... 1 1.1 Project Sea Dragon Overview ...... 1 1.2 Stage 1 Legune Grow-Out Facility Draft Environmental Impact Statement ...... 1 0 1.3 Legune Station Grow Out Facilfty- Stage 1...... 4 2 Project Proponent ...... 8 D 2.1 Project Proponent ...... 8 2.2 About Seafarms ...... 8 D 3 Legune Stage 1 Grow-out Facility Project Description ...... 9 3.1 Construction ...... 9 D 3.2 Operations ...... :...... 10 4 Approvals, Conditions and Agreements ...... 14 0 4.1 Current Agreements ...... 14 4.2 Commonwealth Legislation ...... 14 4.3 Northern Territory Legislation ...... 14 0 4.4 Northern Territory Policies and Guidelines...... 15 5 Project Alternatives ...... 16 0 5.1 Not Proceeding with the Project ...... 16 5.2 Project Location ...... 16 0 5.3 Project Design ...... 16 5.4 Operations ...... 18 D 6 Water Balance ...... 19 7 Ecologically Sustainable Development ...... 20 D 8 Risk Assessment ...... 21 8.1 Method ...... 21 D 9 Environmental Values ...... 23 9.1 Proximity to Significant Sites and Features ...... 23 9.2 Geology, Geomorphology and Soils ...... 23 0 9.3 Marine and Estuarine Water ...... 26 9.4 Freshwater ...... 30 0 9.5 Groundwater ...... 32 9.6 Terrestrial Flora ...... 34 0 9.7 Terrestrial Fauna and Avifauna ...... 39 9.8 Estuarine and Marine Ecology ...... 41 D

Executive Summary u

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Project Sea Dragon Stage 1 Legune Grow-out Facility 2 11!,seafarms r Draft Environmental Impact Statement CAustraliao �· r I' 47 species have material cultural significance (e.g., as a source of glue/resin, fibre, soap, insect repellent etc) r • 42 species are utilised for weapons or have a technological use, including musical instruments, pipes, fish poison, shields, spears etc. r I' 21 are utilised as source of medicine. 9.6.3 Local Vegetation Communities Clearing of less than 5% of the extent of a vegetation community at the local scale is considered to have a r minor to negligible impact on that community overall. Only three of the 16 vegetation communities mapped within the Project footprint will require clearing of more than 5 % of the extent at the local scale (i.e. within Legune Station), they are: Wild plum low open woodland (9%), Northern rice grass (Xeroch/oa imberbis) r grassland (8%) and Canegrass (Ophiuros exa/tatus) grassland (6%). Wild plum low open woodland is primarily located on the estuarine-deltaic plain in one large patch dominated r by one species, wild plum, and is unique within the Project area, and may be a rarely occurring community. However it is not protected, and does not contain threatened species or their habitats, or any species that are otherwise noteworthy. Other wild plum areas exist on the site, though lacking the large mature trees. r The clearing of 2,930 ha of northern rice grass and canegress grasslands for the Project will have a minor impact on vegetation community diversity at the local level, as large areas of this community will still be retained (92% of rice grass and 94% of canegrass grasslands in the Project area, assuring they will still be well r represented at the local scale).

£1.6.11 Vf!g�tc1tlo11 LO�li fltthfl BlorHl(IOnilliln1% of the total unit/class area in the bioregion, namely: l a. Xerochloa (ricegrass) grassland (unit 104)- clearing will remove 2,920 ha, which equates to 4% of its bioregional extent and 3% of its NT-wide extent, and l b. Mixed closed-grassland/sedgeland (seasonal floodplain) (unit 54) - clearing will remove 186 ha, which equates to 4% of its bioregional occurrence and 0.02% of its NT-wide extent.

For the purpose of assessing impact for the Project, clearing impacts of one percent or less at a bioregional and L NT-wide scale have been assessed as negligible. As such, the impact of the proposed clearing of northern rice grass grassland at a bioregional and NT-wide scale L will be minor, since =96% of the total extent at the bioregional level and =97% at the NT level will remain, ensuring it continues to maintain its representation at these scales. Similarly, the retention of 96% of the bioregional extent and over 99% of the NT-wide extent of mixed closed-grassland/sedgeland indicates that L clearing impacts on this vegetation unit will be minor at the bioregional scale and negligible at the NT-wide scale. L 9.6.5 Weeds One Class A declared weed was detected in Legune Station - gamba grass (Andropogon gayanus). Two individuals of this species were found in one location, in a fenced enclosure for a pump at the Linden's bore L yards. It is not accessible to stock and it does not appear to be spreading. One Class A weed, chinee apple (Ziziphus mauritiana) has been recorded in Legune Station previously. However, no plants of this species were L recorded during the field survey. ------L Executive Summary 36 L

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Project Sea Dragon Stage 1 Legune Grow-out Facility C 2 "",,..seafarms r Draft Environmental Impact Statement Australia

r P Benthic macroinvertebrate communities have relatively low abundance and diversity, and are dominated by polychaetes and crustaceans, with few filter feeders. These communities are limited by high turbidity, r high sediment mobility, and long exposure periods. P Avicennia marina var. eucalyptifolia was the dominant mangrove species at most survey sites and was present at all sites, and mangrove communities were found to be in good health, indicating unimpacted r communities. P Several commercial and recreational fisheries operate in the region, targeting prawns, mud crabs, barramundi, threadfin salmon and a variety of other estuarine and pelagic species. Seafood from the r Territory is marketed as being from a pristine environment, and from heavily regulated fisheries.

P There are 15 aquatic species listed as threatened under the EPBC Act and/or the TPWC Act in the region. r Of these, nine - northern river shark, speaHooth shark, dwarf sawfish, green sawfish, freshwater sawfish, green turtle, hawksbill turtle, olive ridley turtle and flatback turtle were considered to have high or r moderate likelihood of occurring in the estuarine environment surrounding the Project. P The desktop assessment identified 18 aquatic species listed as migratory under the EPBC Act within the region. Of these, eight - green turtle, hawksbill turtle, olive ridley turtle, flatback turtle, estuarine crocodile, r dugong, Australian snubfin dolphin and Australian humpback dolphin were considered to have high or moderate likelihood of occurring in the estuarine environment surrounding the Project.

The key risks to these species are related to entrainment or impingement in the intake structure, water quality r changes due to site discharges, particularly the main controlled releases from the EPZ, escape of prawns and prawn diseases into wild stocks, noise and light impacts, and boat impacts. However, the results of the imrac:t assessment found that these risks are unlikely to cause a significant impact to any threatened or migratory species.

9.8.1 Environmental Values l In relation to estuarine, marine and freshwater aquatic ecosystems, the primary environmental value is the protection of these aquatic ecosystems. This includes protection and maintenance of: l P community and species diversity P threatened and near threatened species, and L P aquatic habitat. 9.8.2 Potential Risks and Impacts to Environmental Values L The potential impacts to estuarine and marine ecologies have been identified as: P Direct disturbance of habitat for aquatic flora and fauna from vegetation clearing and earthworks L P Changes to floodplain hydrology as a result of changes to the terrain and blocking of flood waters (although these will be engineered away), and the cessation of dry season flows from Forsyth Creek L P The creation of waterway barriers in freshwater waterways P Entrainment or impingement of aquatic fauna at the seawater intake pump station on Forsyth Creek. L P Changes in water quality resulting from: L � vegetation clearing and earthworks L Executive Summary 42 L

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r Attachment 2 LEGEND: COITTOURLEVEL· BELOW RL 0.0 r CONTOUR LEVEL- RL 0.0 SETTLEMENT CONTOUR LEVEL· RL 0.5 PONDS CONTOUR LEVEL- RL 1.0 CONTOUR LEVEL. RL 1.5 CONTOUR LEVEL -RL 2.0 r CONTOUR LEVEL -RL 2.5 CONTOUR LEVEL· RL 3.0 CONTOUR LEVEL· RL 3.5 CONTOUR LEVEL· RL 4.0 COITTOUR LEVEL- RL 4.5 r CONTOUR LEVEL - R L 5.0 CONTOUR LEVEL· RL 5.5 CONTOUR LEVEL· RL 6.0 CONTOUR LEVEL - RL 6.5 CONTOUR LEVEL - RL 7.0 r CONTOUR LEVEL· RL 7.5 CONTOUR LEVEL. RL 8.0 CONTOUR LEVEL· RL 8.5 CONTOUR LEVEL-RL 9.0 CONTOUR LEVEL -RL-9.5 r CONTOUR LEVEL- RL 10.0 CONTOUR LEVEL· RL 10.5 CONTOUR LEVEL • RL 11.0 CONTOUR LEVEL· RL 11.5 CONTOUR LEVEL· RL 12.0 CONTOUR LEVEL- RL 12.5 r CONTOURLEVEL-RL 13.0 CONTOUR LEVEL-RL 13.5 CONTOUR LEVEL- RL 14.0 CONTOUR LEVEL - ABOVE RL 14.0 r MANGROVE CONFLICT r [0 FARM-STAGE 1

I,.-�------, I I I I I FARM- FunJRE EXPANSION r L-...1------� 1-,----I FARM POTENTIAL rurunE I FXPANSl()N __1 J.... ___ I �SI UAfllNE WA TEil iN i AKI: t NOTES: TO WEST FOR EXPANSION 1. All FARMS ARE SEPARATED BY A 250m �IIJ·S�CURII V llJNE. 2. ALL FEEDER CHANNELS ARE OUTSIDE THE 250m L BIO-SECURITY ZONE. 3. MOC= MAIN DISCHARGE CHANNEL L MFC = MAIN FEEDER CHANNEL

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