WATERMARK COAL PROJECT ENVIRONMENTAL IMPACT STATEMENT February 2013

AD Preliminary Contamination Assessment Preliminary Contamination Assessment AD

WATERMARK COAL PROJECT

PRELIMINARY CONTAMINATION ASSESSMENT

Prepared by:

HANSEN BAILEY 6 / 127 – 129 John Street SINGLETON NSW 2330

October 2012

For:

SHENHUA WATERMARK COAL PTY LIMITED 368 - 370 Conadilly Street NSW 2380

Hansen Bailey Environmental Impact Statement February 2013 Preliminary Contamination Assessment AD Watermark Coal Project Appendix AD Preliminary Contamination Assessment October 2012 for Shenhua Watermark Coal Pty Limited Page ii

TABLE OF CONTENTS

1 BACKGROUND ...... 1 1.1 THE PROJECT ...... 1

1.2 DOCUMENT PURPOSE & OBJECTIVES ...... 2

1.3 DOCUMENT STRUCTURE ...... 2

2 REGULATORY FRAMEWORK ...... 6 2.1 INTRODUCTION ...... 6

2.2 ENVIRONMENTAL PLANNING AND ASSESSMENT ACT 1979 ...... 6

2.3 CONTAMINATED LAND MANAGEMENT ACT 1997 ...... 6

2.4 STATE ENVIRONMENTAL PLANNING POLICY 55 ...... 6

3 EXISTING ENVIRONMENT ...... 8 3.1 TOPOGRAPHY AND CATCHMENTS ...... 8

3.2 LAND USE ...... 8

3.3 LAND OWNERSHIP ...... 9

4 METHODOLOGY ...... 13

5 DESKTOP STUDY ...... 14 5.1 REVIEW OF SOIL LANDSCAPE MAP ...... 14

5.2 HISTORICAL AERIAL PHOTO REVIEW ...... 14

5.3 SEARCH OF THE EPA CONTAMINATION REGISTER ...... 15

6 REVIEW OF PROPERTY CONDITION REPORTS ...... 22

7 REVIEW OF HISTORIC HERITAGE IMPACT ASSESSMENT ...... 27

8 IDENTIFIED POTENTIAL CONTAMINANT SOURCES ...... 28

9 MITIGATION AND MANAGEMENT ...... 30

10 LIMITATIONS ...... 31

12 REFERENCES ...... 32

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LIST OF TABLES LIST OF TABLES Table 1 Historical Aerial Photo Observations ...... 14  Table 12 HistoricalReview of Aerial Property Photo Condition Observations Reports ...... 14 22 Table 23 Review of PropertyHistoric Heritage Condition Impact Reports Assessment ...... 2227 Table 34 ReviewPotential of Contaminant Historic Heritage Sources Impact ...... Assessment ...... 2728 Table 4 Potential Contaminant Sources ...... 28 

LIST OF FIGURES LIST OF FIGURES Figure 1 Regional Locality ...... 4 Figure 12 RegionalConceptual Locality Project ...... Layout ...... 45 Figure 23 ConceptualOverall Land Project Ownership Layout ...... 10 5 Figure 34 OverallLand Ownership Land Ownership (Breeza) ...... 1011 Figure 45 LandAcquired Ownership Property (Breeza) Names ...... and Boundaries ...... 1112 Figure 56 Acquired1954 Aerial Property Photo ...... 16Names and Boundaries ...... 12 Figure 67 19541967 Aerial Photo ...... 16...... 17 Figure 78 19671976 Aerial Photo ...... 17...... 18 Figure 89 19761989 Aerial Photo ...... 18...... 19 Figure 910 19891998 Aerial Photo ...... 19...... 20 Figure 1011 19982003 Aerial Photo ...... 20...... 21 Figure 11 2003 Aerial Photo ...... 21

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iii Hansen Bailey Environmental Impact Statement February 2013 Preliminary Contamination Assessment AD Watermark Coal Project Appendix AD Preliminary Contamination Assessment October 2012 for Shenhua Watermark Coal Pty Limited Page 1

WATERMARK COAL PROJECT PRELIMINARY CONTAMINATION ASSESSMENT

for Shenhua Watermark Coal Pty Limited

1 BACKGROUND

In October 2008, Shenhua Watermark Coal Pty Limited (Shenhua Watermark) was granted Exploration Licence (EL) 7223. Shenhua Watermark is a subsidiary of the Shenhua Corporation. The Watermark Coal Project (the Project) is located within EL 7223, approximately 25 kilometres (km) south south-east of the township of Gunnedah and to the immediate west of the village of Breeza, within the Gunnedah Local Government Area (LGA). The Project is approximately 282 km by rail from the export Port of Newcastle. Figure 1 illustrates the regional locality of the Project in relation to the nearest town centres of Breeza and Gunnedah.

1.1 THE PROJECT Shenhua Watermark is seeking State Significant Development Consent under Division 4.1 of the Environmental Planning & Assessment Act 1979 (EP&A Act) for the Project. The Project Application Boundary (Project Boundary) is shown on Figure 2. The Project generally comprises:

x The construction and operation of an open cut mining operation extracting up to 10 Million tonnes per annum (Mtpa) of Run of Mine (ROM) coal for a 30 year period; x An open cut mining fleet of excavators and shovels, supported by haul trucks, dozers, graders, drill rigs and water carts; x Progressive rehabilitation of all disturbed areas; x The construction and operation of a Coal Handling and Preparation Plant (CHPP) with a throughput of 10 Mtpa ROM coal; x The co-disposal of tailings and coarse reject within the Overburden Emplacement Areas (OEA); x The construction and operation of a rail spur, rail loop, rail overpass, associated load out facility and connection to the - Moree Railway Line; x The construction and operation of a Mine Access Road; x The construction and operation of administration, workshop and related facilities;

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x The construction and operation of ground and surface water management and reticulation infrastructure including pipelines, pumping stations and associated infrastructure for access to water from groundwater aquifers, the and private dams to the north-east of the Project Boundary; x The installation of communications and electricity reticulation infrastructure; and x A workforce of up to approximately 600 full-time equivalent employees during construction and up to 600 full-time equivalent employees during the operation of the Project.

The conceptual layout of the Project is shown in Figure 2. 1.2 DOCUMENT PURPOSE & OBJECTIVES The purpose of this Preliminary Contamination Assessment (PCA) is to form part of the Environmental Impact Statement (EIS) being prepared by Hansen Bailey to support an application for State Significant Development Consent under Division 4.1 of Part 4 of the EP&A Act. This PCA addresses the relevant Director-General’s Environmental Assessment Requirements (DGRs) issued for the EIS by the (NSW) Department of Planning and Infrastructure (DP&I) on 19 April 2012 which states: “The EIS must also include a detailed description and assessment of the potential impacts on… soils and land capability (including salinisation and contamination)”. The specific objectives of this PCA were to:

x Identify all past and present potentially contaminating activities; x Identify potential contamination types; x Discuss the site condition; x Provide a preliminary assessment of contamination within the Project Boundary; and x Assess the need for further investigations.

1.3 DOCUMENT STRUCTURE This report contains 11 sections. This section (Section 1) provides background information on the Project and a description of the purpose of this PCA. The remainder of the report is structured as follows:

x Section 2 outlines the regulatory framework applicable to this PCA; x Section 3 summarises the existing environment within the Project Boundary; x Section 4 describes the methodology used for this PCA; x Section 5 provides the results of a desktop study of available information; x Section 6 provides a review of available property condition reports;

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x Section 7 provides a review of the Historic Heritage Impact Assessment prepared as part of the EIS for the Project; x Section 8 summarises the potentially contaminated areas identified within the Project Boundary; x Section 9 identifies mitigation and management measures based on the results of this PCA; x Section 10 outlines the limitations of this PCA; and x Section 11 lists references provided throughout the PCA.

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3 Environmental Impact Statement February 2013 Hansen Bailey Preliminary Contamination Assessment AD

Kamilaroi N LOCALITY PLAN Road N W E

Creek Highway Kelvin S

Watermark Project Highway GUNNEDAH

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Highway Mooki River Road Road

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Werris Henesey

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Ridge arabran Road Coonab duval - Cattle QUIRINDI

More Spring Quirindi Creek Road Road Creek

rang man Lane Ridge Coomoo Warrah rabran Yara Tama Coonaba Quirindi Borambil Road Warrah Creek Mooki River Big

Gananny

Creek

Coomoo WILLOW BLACKVILLE 0 6 12 TREE Yarraman Kilometres

EL 7223 Project Boundary WATERMARK COAL PROJECT Roads Rail River & Creeks Water Storage Regional Locality Towns National Park State Forest Figure Cad File: 07152E.dwg Date: 02.03.11 Drawn: JD 1

4 Hansen Bailey Environmental Impact Statement February 2013 AD Preliminary Contamination Assessment  Figure Drawn: JD

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5 Environmental Impact Statement February 2013 Hansen Bailey Preliminary Contamination Assessment Watermark Coal Project Appendix AD AD Preliminary Contamination Assessment October 2012 for Shenhua Watermark Coal Pty Limited Page 6

2 REGULATORY FRAMEWORK

2.1 INTRODUCTION This PCA has been prepared in accordance with the regulatory framework outlined below and with reference to the following guidelines:

x Guidelines for Consultants Reporting on Contaminated Sites (NSW Office of Environment and Heritage, 2011); and x Managing Land Contamination, Planning Guidelines, SEPP 55 – Remediation of Land (NSW Department of Urban Affairs and Planning & NSW Environment Protection Authority (EPA), 1998).

2.2 ENVIRONMENTAL PLANNING AND ASSESSMENT ACT 1979 As described in Section 1, Shenhua Watermark is seeking State Significant Development Consent under Division 4.1 of Part 4 of the EP&A Act for the Project. The determining authority is the Minister for Planning & Infrastructure. The EP&A Act provides an important role in the management of land contamination is NSW by incorporating mechanisms to ensure that:

x Planning authorities consider contamination issues when they are making rezoning and development decisions; x Local councils provide information about land contamination on planning certificates that they issue under Section 149 of the EP&A Act; and x Land remediation is facilitated and controlled through State Environmental Planning Policy 55 - Remediation of Land (SEPP 55).

2.3 CONTAMINATED LAND MANAGEMENT ACT 1997 The Contaminated Land Management Act 1997 (CLM Act) regulates significantly contaminated sites in NSW. The general objective of the CLM Act is to establish a process for investigating and (where appropriate) remediating land that the NSW Environment Protection Authority (EPA) considers to be contaminated significantly enough to require regulation.

2.4 STATE ENVIRONMENTAL PLANNING POLICY 55 SEPP 55 – Remediation of Land (SEPP 55) was enacted to provide a state wide approach to the remediation of contaminated land for the purpose of minimising the risk of harm to the health of humans and the environment. Managing Land Contamination, Planning Guidelines, SEPP 55 – Remediation of Land (the Guidelines) have been prepared to assist in managing land contamination in NSW in accordance with SEPP 55. Specifically, the Guidelines provide:

x Information to assist in the investigation of contamination possibilities;

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6 Hansen Bailey Environmental Impact Statement February 2013 Preliminary Contamination Assessment AD Watermark Coal Project Appendix AD Preliminary Contamination Assessment October 2012 for Shenhua Watermark Coal Pty Limited Page 7

x A decision making process that responds to the information obtained from an investigation; x Information on how planning and development control can cover the issues of contamination and remediation; x A suggested policy approach for planning authorities; x Discussion of information management systems and notification and notation schemes, including the use of section 149 planning certificate notations; and x Approaches to prevent contamination and reduce the environmental impact from remediation activities.

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7 Environmental Impact Statement February 2013 Hansen Bailey Preliminary Contamination Assessment Watermark Coal Project Appendix AD AD Preliminary Contamination Assessment October 2012 for Shenhua Watermark Coal Pty Limited Page 8

3 EXISTING ENVIRONMENT

3.1 TOPOGRAPHY AND CATCHMENTS The Project is located within the Gunnedah Basin which is one of the main coal basins within NSW. The closest township to the Project is the village of Breeza to the east of the Project Boundary. Gunnedah is located approximately 25 km to the north north-west of the Project Boundary, whilst Tamworth is located approximately 50 km to the east north-east. The Kamilaroi Highway and Werris Creek - Moree Railway Line run adjacent to the Project Boundary in the east and form part of an important road and rail network that provides access throughout the region. The is located approximately 324 metres (m) above sea level on the of the Namoi River Valley. The region is generally flat with only 1% of the Gunnedah Shire recording land slopes greater than 15 degrees and within which the Project is generally located. Topography is variable across the Project Boundary. Topographic highs can be found in the vicinity of the Eastern, Western and Southern Mining Areas including Mt Watermark (512 m Australian Height Datum (AHD)), Smokey Point (447 m AHD), Black Mountain (393 m AHD) and an unnamed topographic high within and to the north of the Western Mining Area, which is referred to as ‘Springhurst Hill’ by local residents. The black soil plains are located outside of the Project Boundary to the south and south- east. Gently undulating cleared grasslands (approximately 310 m AHD) dominate the central and western portions of the Project Boundary. The Project Boundary is located within the catchment of the Mooki River, a tributary of the Namoi River (see Figure 2). The headwaters of the Mooki River originate on the northern slopes of the Liverpool Ranges and Coolah Tops, flowing in a northerly direction to the Namoi River north-east of Gunnedah. Several ephemeral first and second order streams traverse and drain the land within the Project Boundary, including Watermark Gully, Native Dog Gully and a series of smaller unnamed watercourses.

3.2 LAND USE The local area within the vicinity of the Project Boundary has had a long history of agricultural production. In more recent years, major cropping areas have shifted towards establishment on the black soil plains while grazing has been transferred to land situated on the lighter red soils and ridge country, as seen within the Project Boundary. Today the key enterprises within the Project Boundary encompass a range of sheep and cattle grazing and cropping, including wheat, sorghum and barley. The current state of the land within the Project Boundary is a reflection of past agricultural practices, including vegetation clearing, weed invasion, pasture improvement, altered natural drainage, feral animals, erosion and salinity. The majority of the land is comprised of large expanses of grassland interspersed with isolated remnant woodland patches along boundary fences, road verges, on hills and steep slopes.

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8 Hansen Bailey Environmental Impact Statement February 2013 Watermark Coal Project Appendix AD PreliminaryPreliminary Contamination Contamination Assessment Assessment October 2012 AD for Shenhua Watermark Coal Pty Limited Page 9

3.3 LAND OWNERSHIP Land ownership within and surrounding the Project Boundary is shown on Figure 3, whilst Figure 4 provides an inset of the landownership within the village of Breeza. All of the land within the Project Boundary is owned by Shenhua Watermark with the exception of a small parcel of Crown land on Mt Watermark. Private freehold land primarily surrounds the Project Boundary with the exception of the fore mentioned and Breeza State Forest to the south-west, which is owned by the State and managed by Forests NSW. Property titles and boundaries of land holdings referred to throughout this PCA are presented in Figure 5.

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9 Environmental Impact Statement February 2013 Hansen Bailey Hansen Bailey 171 138 1 Shenhua Watermark 118 VR Vescio 129 128 132 147 137 142 143 144 127 128 130 131 Coal Pty Ltd 119 Rossmar Park Pastoral 135 139 23 N 140 133 19 16 2 Crown Co Pty Ltd 144 4 BM , MA & CB O'Malley 120 BA , NJ Evans 6 15 134 5 LJ Sedran 121 BA , NJ & GC Evans 166 170 W E 23 6 KK & MR Picton 122 MC , WP & WA Burt 5 8 18 33 7 WJ & JA Picton 123 WA & MC Burt 151 4 10 24 17 8 WH & PG Schubert 124 SL & MJ Piper 9 21 2 22 145 9 DE & EC Mirow 125 G Clift 10 RA & AE Fullwood 127 BA & KS Pryor S 16 30 24 26 Pty Ltd 128 KK & MR Picton 14 11 129 13 The Cedars Pty Ltd WJ & EL Le Cornu 167 12 Kalimna Holdings 130 PY & DM Hubbard 20 150 Pty Ltd 131 JA , BP , JM & 13 PR & DM Gibbons HA Middlebrook 11 25 14 JR & ND McNamara 132 OL & WK Manning Werris Creek - Moree Rail Line 15 NR Squires 133 Sandhurst Trustees Ltd 12 7 34 65 26 25 32 16 MA & LL Latham 134 HY & GG Hubbard 28 17 135 146 NSW Grain PK Baker 27 Corporation Ltd 136 Hamblin Pastoral Co 103 18 TJR Lyle Pty Ltd Kamilaroi 19 JR Lyle 137 Kaythree Pty Ltd 20 SB Lyle 138 Woneena Pty Ltd 7 32 21 Clearpine Pty Ltd 139 Camilleri Farms Pty Ltd 22 Nullabean Pastoral Co 140 EC Riordan Pty Ltd 141 JJ Warner & 2 2 JM Mackay 1 31 94 23 AR Riordan Highway 24 Kalori Pty Ltd 142 C Bellenger SEE FIG 4A 25 RE & BM Baker 143 Lyne Pastoral Co Nea Siding Road 26 GJ Baker Pty Ltd 104 27 JD , NM & DJ Tudgey 144 HR Hicks 30 28 DJ Tudgey 145 BJ & JJ McNamara 152 105 25 41 29 DJ & JM Tudgey 146 CC Alston 29 96 95 30 PJ , DJ & LM Warmoll 147 Paul Ramsey 97 101 31 PJ & DJ Warmoll Agribusiness Pty Ltd The Dip Road 32 PJ , DJ , LME , LF 148 MLD Bonner 98 105 Warmoll & AM Waugh 149 WTA & P Craig 106 33 ME , J & I Fairhall 150 LM Sulman 125 59 95 2 108 34 TN Bailey 151 SJ & MA Kelly 153 39 LJ & S Collins 152 Singlestone Pty Ltd 41 102 148 PB & RL Baldo 153 Rarene Pty Ltd 107 108 59 DT Clift 154 KJ & CM Kelly 107 98 Environmental Impact Statement February 2013 60 RS & A Clift 155 BS Kelly 97 2 61 RS Clift 156 KJ Kelly 2 62 M Clift 157 Grein Pty Ltd 109 99 64 PK Clift & MH Lane 158 J & NP Malden 154 98 65 LH Tregenza 159 Nilwon Pastoral Co 60 Clift Road 119 ContaminationPreliminary Assessment 94 WTA Craig Pty Ltd 116 95 ST , JW & NL Craig 160 M & KA Clift 62 123 100 149 96 MJ Parry 161 Carbon Minerals NL 64 61 97 AL Pursehouse 162 JBS Pty Ltd 115 118 98 AL & CI Pursehouse 163 WH & EC Ryan 99 Pursehouse Properties 164 RJF Cohen 155 121 Pty Ltd 165 MJ & NG Bradfield 100 Pursehouse 166 RC , WP Barnett & IW , 169 117 122 2 Investments Pty Ltd JK Merrick 110 111 120 113 101 Boala Ltd 167 KM & HJ Fulwood 64 112 102 Holifall Pty Ltd 60 168 AH Craig 156 124 103 Fordham 169 159 DR & DW Frankham 113 121 104 Piyawoola Pty Ltd 170 PG & C Mahoney 024 160 163 111 165 105 Lochiel Park Pty Ltd 171 SA Shannon 114 164 Kilometres 113 106 AR Delve 157 158 161 162 107 Byrwyn Pty Ltd 108 BJ Kelly & PG Calbert EL 7223 109 Rejilo Pty Ltd Disturbance Boundary (Indicative) WATERMARK COAL PROJECT 110 Quimili Pty Ltd Project Boundary 111 Public Coucil Road Residence - Privately Owned 112 Single Tree Pty Ltd Residence - Owned by Shenhua Watermark Coal P/L 113 Frofour Pty Ltd Land Ownership (Overall) 114 GS Norman 115 Birrawa Pastoral Pty Ltd Figure 116 CJ & PA Duddy Pty Ltd 117 CJ Duddy Cad File: 08747A.dwg Date: 10.09.12 Drawn: CP 3 AD 10 AD 11

1 Shenhua Watermark Coal Pty Ltd 2 ContaminationPreliminary Assessment Crown N 3 Telstra Corporation Ltd 32 17 NSW Grain Corporation Ltd 31 25 RE & BM Baker W E 17 29 DJ & JM Tudgey 37 49 31 PJ & DJ Warmoll 87 32 PJ , DJ , LME , LF Warmoll & AM Waugh Kamilaroi Highway 35 31 34 TN Bailey 40 38 35 M Salavador S 36 LW Sullivan 36 85 Environmental Impact Statement February 2013 37 LM Newell 38 84 38 NG Peterson & MJ Wilson 42 45 86 40 LAC Ridgeway 47 41 PB & RL Baldo 48 46 42 Walhallow Local Aboriginal Land Council 1 43 RE & JF O'Farrell 3 43 50 72 44 PJ & CG Van De Moosdijk 51 45 HG & EM Mills 44 83 46 ED Mills 52 93 82 47 CA Griffiths 55 78 48 MD Neave 41 2 75 49 GR Neave 76 50 DR McVeigh & WA Lewis 41 51 BW Dunstan 77 52 BM Pepper 80 58 53 R Merciera & B Cockerill 56 54 HJ Lickorish 53 81 68 55 AGA Auctions Pty Ltd 2 54 56 Acrobatic Pty Ltd 79 57 JB , SW & WW Clift 65 78 58 W Clift 31 63 W , S Clift & J Cock 74 31 65 LH Tregenza 88 66 KM Donnelly 73 71 67 SJ Smith 41 68 T Smith 70 69 NE Hutton 70 G Cohen 71 NB King 56 72 NB & ME King 58 73 ARH O'Rourke 2 34 74 LL Cameron 70 75 W Johnson 71 76 MA Brown 89 77 HG Brown 25 78 PH Hicks 91 79 NI Wright 90 57 80 AA Mendoza 81 SJ & SC Ryan 82 ITT & VL Rowney 92 83 KD & RM Sampson 63 84 GL Matthews 29 85 WR Matthews 86 S Griffin 87 SG Carr 65 88 BF Manning 0 0.2 0.4 66 89 RC & LA Wiles 90 BJ & GD Taber 67 91 BT O'Keefe Kilometres 92 RJ Nutbeam 69 93 WR & SG Steedman 94 WTA Craig :$7(50$5.&2$/352-(&7

Hansen Bailey Land Ownership ( Breeza )

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Highway Figure

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Acquired Property Names and Boundaries TATHRA Mooki Mooki

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GUNNADOO

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Lane Court DIXIE KALMINA RIDGE WATERMARK

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4 METHODOLOGY

To assess the history and land use of the Project Boundary, a desktop study of the following available information was undertaken, including:

 Review of a soil landscape map to identify any land registered as ‘Disturbed’;  Review of historical aerial photos to identify past land use and potentially contaminating activities; and  Search of the register of the NSW Contaminated Sites Notified to the EPA (EPA, 2012).

The findings of the desktop study are provided in Section 5. As part of the property acquisition process by Shenhua Watermark, inspections were undertaken to develop an understanding of the existing condition of each property. The inspections focused on the state of repair of structures, fixtures and appliances, identification of any occupational health and safety hazards, fencing, paddocks, dams and vegetation. The results of each inspection were presented in property condition reports. A Historic Heritage Impact Assessment was undertaken by AECOM Australia Pty Limited (AECOM) to determine the potential impacts of the Project on historic heritage items identified within and adjacent to the Project Boundary (AECOM, 2012) (see Appendix Q of EIS). As part of the assessment, a field survey targeted for sites of historical significance was undertaken within the Project Boundary. Although the property condition reports and the Historic Heritage Impact Assessment were not undertaken for the purpose of assessing contamination, some of the observations presented throughout each of the reports were considered relevant to identifying areas of potential contamination throughout the Project Boundary. For this reason, these reports were reviewed and observations considered relevant to this PCA were included.

The findings of the review of available property condition reports are presented in Section 6 and the findings of the review of the Historic Heritage Impact Assessment are presented in Section 7. A summary of the areas of potential contamination identified by this PCA is provided in Section 8.

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13 Environmental Impact Statement February 2013 Hansen Bailey Preliminary Contamination Assessment Watermark Coal Project Appendix AD AD Preliminary Contamination Assessment October 2012 for Shenhua Watermark Coal Pty Limited Page 14

5 DESKTOP STUDY

5.1 REVIEW OF SOIL LANDSCAPE MAP The soil landscapes within the Project Boundary have been mapped by the NSW Department of Land and Water Conservation incorporating the Soil Conservation Service of NSW at the scale of 1:100,000 (Banks, 1995). The soil landscape map was reviewed for this PCA to identify any areas mapped as disturbed terrain within the Project Boundary, which indicates that the natural soil profile in the area has been disturbed by human activities, and may have been backfilled with imported filling materials (e.g. land fill sites). Two small areas located in the eastern portion of the Project Boundary were identified as disturbed terrain. The disturbed areas are located in the eastern portion of the Moondyne property and the western portion of the Lilyfield property.

5.2 HISTORICAL AERIAL PHOTO REVIEW Aerial photos for 1954, 1967, 1976, 1989, 1998, and 2003 were investigated to identify previous land use and potentially contaminating activities throughout the Project Boundary. The aerial photos are presented in Figure 6 to Figure 11. The results of the historical aerial photo review are presented in Table 1. The results of the historical aerial photo review indicate that since 1954, the area within the Project Boundary has generally been cleared, displaying evidence of heavy agricultural activity such as cropping, erosion bunds, and farm dams. Two potential quarries were observed in the western portion of the Project Boundary between 1954 and 1967. Vegetation cover was observed at the surface of these potential quarries in the 1989, 1998, and 2003 aerial photos, indicating that excavations ceased at these potential quarries sometime between 1976 and 1989. A third potential quarry was identified in the southern portion of the Project Boundary in the 1976 aerial photo. Scattered objects of various sizes were observed between the two potential quarries located in the western portion of the Project Boundary in the 1989 aerial photo and adjacent to a patch of bushland in the southern-most portion of the Project Boundary in the 1998 aerial photo.

Table 1 Historical Aerial Photo Observations

Figure Year Colour Main Observations The following observations were made from the 1954 aerial photo: x The area within and surrounding the Project Boundary has generally been cleared, with the exception of scattered trees and occasional Black and patches of bushland. Cropping and erosion control bunds are visible Figure 6 1954 White across the majority of cleared areas x Several scattered objects of various sizes (potential dumped waste / storage area) are visible in the eastern portion of The Wilgas property

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14 Hansen Bailey Environmental Impact Statement February 2013 Preliminary Contamination Assessment AD Watermark Coal Project Appendix AD Preliminary Contamination Assessment October 2012 for Shenhua Watermark Coal Pty Limited Page 15

Figure Year Colour Main Observations x Breeza State Forest is heavily forested with the exception of an approximately kite shaped clearing in the central northern portion of the area x Watermark Gully is visible, running approximately north north-east from the central portion of the Project Boundary. Several farm dams are visible within or immediately adjacent to Watermark Gully x Several residential sized structures are visible across the Project Boundary x Unsealed roads are visible at the current location of The Dip Road, Nea Siding Road, Clift Road, and Goran Lake Road x Mooki River is visible to the east of the Project Boundary Similar to the 1954 aerial photo with the following notable exceptions: x Several farm dams have been constructed throughout the western portion of the Project Boundary x Two large excavations (potential quarries) are visible in the eastern portion of the Moondyne property and southern portion of the Lilyfield Black and Figure 7 1967 property. The Lilyfield property excavation is located within a patch of White bushland. The locations of the two excavations appear to coincide with the Disturbed landscape identified during the soil landscape map review (Section 5.1) x A large excavation (potential quarry) is visible in the southern portion of The Wilgas property Similar to the 1967 aerial photo with the following notable exception: Black and x A large excavation (potential quarry) appears to have been Figure 8 1976 White constructed at the northern extent of a patch of bushland in the central portion of the Linavardi property Similar to the 1976 aerial photo with the following notable exceptions: x Several farm dams have been constructed throughout the eastern portion of the Project Boundary Figure 9 1989 Colour x Slight vegetation coverage is visible at the surface of the two excavations (potential quarries) identified in the Moondyne and Lilyfield properties Similar to the 1989 aerial photo with the following notable exception: x Several scattered objects of various sizes (potential dumped waste / Figure 10 1998 Colour storage area) are visible at the ground surface in the north-western corner of the Urubula property Figure 11 2003 Colour Similar to the 1998 aerial photo

5.3 SEARCH OF THE EPA CONTAMINATION REGISTER A review of the NSW Contaminated Sites Notified to the EPA (EPA, 2012) indicated the land within the Project Boundary has no statutory notices issued under the provision of the CLM Act. The closest registered sites are service station sites located in Gunnedah, approximately 25 km north north-west of the Project Boundary.

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Figure Cad File: 08030A.dwg Date: 10.01.12 Drawn: CP  Preliminary Contamination Assessment Watermark Coal Project Appendix AD AD Preliminary Contamination Assessment October 2012 for Shenhua Watermark Coal Pty Limited Page 22

6 REVIEW OF PROPERTY CONDITION REPORTS

As part of the property acquisition process by Shenhua Watermark, inspections were undertaken to develop an understanding of the existing condition of each property. The inspections focused on the state of repair of structures, fixtures and appliances, identification of any occupational health and safety hazards, fencing, paddocks, dams and vegetation. The results of each inspection were presented in property condition reports. The property condition reports were reviewed in order to provide an indication of potential contamination based on available information. The potential sources of contamination that were identified are presented in Table 2. Table 2 Review of Property Condition Reports

Property Deposited Approximate Potential Sources of Lot Address Name Plan Area (ha) Contamination Identified

Rubbish tip (possibly the potential quarry identified in the 1019 The Dip 1976 aerial photo review (see Linavardi 76 755486 311.6 Road Breeza Section 5.2)), concrete septic NSW 2381 tank, machinery shed, gravel quarry 99 755477 106 755477 110 755477 6995 Concrete septic tank in poor 116 755477 Kamilaroi condition, machinery sheds Dixie1 127 755477 842 Highway (including potential chemical Breeza NSW 40 755514 mixing area) 2381 A 188131 177 755490 178 755490 17-20 205657 Concrete septic tank, two 3 205657 above ground fuel storage 131 The Dip 1 356076 tanks, machinery sheds, Tathra1 938.3 Road Breeza workshop (including potential 46 755477 NSW 2381 chemical mixing area) 1 & 2 250019 2 114960

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22 Hansen Bailey Environmental Impact Statement February 2013 Preliminary Contamination Assessment AD Watermark Coal Project Appendix AD Preliminary Contamination Assessment October 2012 for Shenhua Watermark Coal Pty Limited Page 23

Property Deposited Approximate Potential Sources of Lot Address Name Plan Area (ha) Contamination Identified

1 114901

2 114901 45 Duddy Concrete septic tank, former Elsdon1 178 Road Breeza piggery, machinery shed, sheep 1 205657 NSW 2381 shower/dip

2 800019 Concrete septic tank, machinery Keinghton, 45 755477 48 The Dip shed / chemical storage shed Carinya and 47 755477 798.2 Road Breeza (including potential chemical Cloveneden 125 755477 NSW 2381 mixing area), workshop, rubbish tip 172 755477 849 Nea Siding Road The Yarrens 54 755514 194.3 Concrete septic tank Curlewis NSW 2381 129 755477 47 and 123 "Long drop" toilet , a disused Colley Road sheep dip in the sheep yard, Inverness 109 755477 503.6 Breeza NSW above ground fuel tank, 7 755514 2381 machinery shed Two disused pig sheds, two 96 concrete septic tanks, sheep Springhurst yard with disused sheep shower Springhurst1 8 755514 518.0 Road dip, machinery shed (including Curlewis NSW potential chemical mixing area), 2381 rubbish tip, above ground fuel tank 156 755477 107 Court Shearing shed (possible sheep Shar 229.4 Road Breeza dip), machinery shed 540 1028326 NSW 2381 Concrete septic tank, workshop (including potential chemical mixing area), machinery shed, woolshed, sheep shower / dip, 151 Whitby old disused piggery. Road Lilyfield 55 755514 411.0 The potential quarry identified in Curlewis NSW the southern portion of the 2381 Lilyfield property (see Sections 5.1 & 5.2) was not identified in the property condition report

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Property Deposited Approximate Potential Sources of Lot Address Name Plan Area (ha) Contamination Identified

2 533460 5881 Kamilaroi Concrete septic tank, chemical Cardington 183.7 Highway storage shed, rubbish tip 88 755477 Breeza NSW 2381 730 Nea Outside toilet with no shed Siding Road sitting directly on top of cement Marney A 370032 24.3 Curlewis NSW septic in very poor condition, 2381 meat house shed 1 1140092 1 & 2 390664 Concrete septic tank, wool shed, two above ground fuel A 381597 47 Duddy storage tanks, shearing shed / Boondah1 P 381598 594.7 Road Breeza sheep yard (potential sheep O 381599 NSW 2381 dip), machinery shed, chemical storage shed (including 1 390666 potential chemical mixing area) 2 751015

1 114960 5975 Three year old plastic septic Kamilaroi tank, chemical storage shed, The Wilgas 427.2 Highway shearing shed, shower dip, 123 755477 Breeza NSW former plunge sheep dip, two 2381 above ground fuel storage tanks 610 Nea Siding Road Wattlevale1 45 755514 242.8 Plastic septic tank Curlewis NSW 2381

50 755514 Near new plastic septic system (Moondyne). 51 664450 The potential former quarry 535 Nea identified in the eastern portion Tilbrook and Siding Road 479.2 of the Moondyne property in the Moondyne Curlewis NSW soil landscape and historical 2381 2 350472 aerial photo review (see Sections 5.1 & 5.2) was not identified in the property condition report 173 755477 176 755477 282 Rowarth Concrete septic tank, two Hill 60 284.2 Road Breeza machinery sheds, storage shed, Part 2 778623 NSW 2381 car shed and workshop B 370032

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Property Deposited Approximate Potential Sources of Lot Address Name Plan Area (ha) Contamination Identified

46 755514 535 Boori Concrete septic tank, storage Road Monivae1 47 755514 682.2 shed, chemical shed, piggery, Curlewis rubbish tip B 370032 NSW 2381 B 188131 46 Colley Kalmina 174.8 Road Breeza None 128 755477 NSW 2381

Concrete and plastic septic 6295 tanks, workshop, shearing Kamilaroi shed, disused sheep dip. Demeter 124 755477 445.2 Highway According to the property Breeza NSW condition report, the sheep dip 2381 has previously been tested and no traces of arsenic were found. 1258 The Dip 43, CP Concrete septic, shearing shed Barwo 753 Rd, Breeza 77, 78 5668.1781 (possible sheep dip) 2381 5756 Kamilaroi Browns Corner 1 800019 96.4 Highway None Breeza NSW 2381 729 Court 144 755477 Machinery shed, shearing shed, Flakenhoe 485.5 Lane Breeza sheep shower dip 199 755477 NSW 2381 393 Court Old concrete septic with broken Gunnadoo 541 1028326 292.6 Lane Breeza lid NSW 2381 42 755514 930 Nea Concrete septic in working Siding Road Lochiel East1 48 755514 373.9 order, machinery shed, rubbish Curlewis NSW tip 61 755514 2381 146 Whitby Concrete septic tank, two car Road garage with fibro walls, animal Molonga 53 755514 279.2 Curlewis NSW shed / former piggery / sheep 2381 dip

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Property Deposited Approximate Potential Sources of Lot Address Name Plan Area (ha) Contamination Identified

1 633273 1 830875 21 114901 528 Cull Road Concrete septic tank, workshop Stafford / Part 1 CP 696.1 Breeza NSW (including potential chemical Stafford 56 3121.1781 2381 mixing area) and sheds CP 2 633273 Watermark and Court Lane Plastic septic tank and concrete Watermark 117 755477 582.8 Breeza NSW septic tank, machinery sheds Ridge 2381 CP 58 3121.1781 CP 59 3121.1781 CP 70 3121.1781 CP 72 3121.1781 CP Two concrete septic tanks, 1 73 1288 Clift Urubula and 755486 workshop (Urubula) (including 816.7 Road Breeza Birrawa1 potential chemical mixing area), 5 114901 NSW 2381 rubbish tip 6 114901 7 114901 8 114901 9 114901 10 114901 11 114901 1 829331 1-3 217616 No septic system was 479 Court connected. Plumbing emptied Santa Capri 155 755477 192.0 Road Breeza into a hole in the ground outside NSW 2381 of the cottage 343 Nea Sheep dip, shearing shed, Siding Rd chemical storage in shearing Gleneyre1 9 755514 210.24 Curlewis NSW shed, machinery sheds / 2381 workshop, septic system CP – Crown Plan 1 – Property is partially within the Project Boundary (see Figure 5), therefore potential sources of contamination may be situated outside of the Project Boundary

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7 REVIEW OF HISTORIC HERITAGE IMPACT ASSESSMENT

As part of the Historic Heritage Impact Assessment undertaken by AECOM, a field survey targeted for sites of historical significance was undertaken within the Project Boundary in April 2011 and February 2012. The Historic Heritage Impact Assessment was not primarily conducted to identify areas of potential contamination and the personnel undertaking the inspections were not qualified to undertake contamination assessments. However, the results of the inspections were reviewed in order to provide additional potential contamination information based on available information. The potential sources of contamination that were identified during the review of the Historic Heritage Impact Assessment are presented in Table 3. Table 3 Review of Historic Heritage Impact Assessment

Property Name Potential Sources of Contamination In-ground septic tank, depression with building rubble at the surface (adjacent to the Shar septic tank) Demeter Rubbish tip containing rubbish dumped by the previous owner for nearly 100 years The Wilgas Waste rock pile next to disused coal mine, rail siding (associated with the coal mine) Clift Coal Mine, waste rock pile (adjacent to the coal mine), rubbish tip (appears to be Cardington located within the former mine entrance depression) Keinghton Machinery sheds Cloveneden External toilet with pressure tank located above Inverness Slaughtering shed Watermark Demolished (bulldozed) brick kiln and associated shed, two poultry yards Linavardi Poultry shed Barwo Farm machinery within and surrounding sheds Construction materials bulldozed into a pile (including materials potentially containing Flakenhoe asbestos), workshop

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8 IDENTIFIED POTENTIAL CONTAMINANT SOURCES

On the basis of the available site history and a review of observations presented in the property condition reports and during the Historic Heritage Impact Assessment, the principle sources of potential contamination identified are presented in Table 4. It is noted that many of the property condition reports were undertaken for properties that are only partially located within the Project Boundary, therefore the potential sources of contamination listed in Table 4 for those properties may not be located within the Project Boundary. Table 4 Potential Contaminant Sources

Type of Potential Sources of Contamination Contaminant x Potential impact to soils throughout the Project Boundary due to long term agriculture land use x Potential chemical mixing areas (herbicide mixing). Usually located near chemical storage and machinery storage areas (Dixie1, Tathra1, Keinghton, Deregistered and Springhurst1, Lilyfield, Boondah1, Stafford / Part Stafford1 and Urubula1) concentrated chemical x Sheep showers / dips identified at Elsdon1, Inverness, Springhurst1, Lilyfield, use The Wilgas, Demeter, Flakenhoe, Molonga, Elsdon, Gleneyre1 and Lauriston1 x Possible sites for sheep dips (consider known woolsheds as a likely source) at Shar, Boondah1 and Barwo. x Rubbish tips at Linavardi, Keinghton, Cardington, Springhurst1, Lochiel East1 and Demeter, Monivae1 and Urubula1 x Scattered objects of various sizes (potential dumped waste / storage area) at 1 Imported filling and The Wilgas and Urubula , identified in the aerial photo review (see waste materials Section 5.2) x Potential quarries at Moondyne, Lilyfield, The Wilgas and Linavardi x Former coal mines, sidings, and associated stockpiled materials at The Wilgas and Cardington x Septic tanks and disposal areas, notably the septic tanks in poor condition at 1 Sewage / sewage Dixie and Marney treatment and disposal x The “long drop” toilet at Inverness and the sewage disposal location at Santa Capri

x Former piggeries / pig sheds at Elsdon, Springhurst1, Lilyfield, Monivae1 and Lauriston1 Livestock slaughter x Meat house at Marney operations x Slaughtering shed at Inverness x Poultry shed at Linavardi

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Type of Potential Sources of Contamination Contaminant x Demolished (bulldozed) brick kiln and associated shed at Watermark / Watermark Ridge Building materials x Construction materials bulldozed into a pile (including fibrous cement materials) at Flakenhoe x Fibrous cement shed at Lauriston1 x Workshops, machinery sheds and chemical storage sheds at Linavardi, Dixie1, Tathra1, Elsdon, Keinghton, Inverness, Springhurst1, Shar, Lilyfield, Cardington, Boondah1, The Wilgas, Hill 60, Monivae1, Demeter, Barwo, 1 1 Potential chemical leaks Flakenhoe, Lochiel East , Stafford / Part Stafford , Watermark / Watermark 1 1 1 1 and spills Ridge, Urubula , Gleneyre , Roanoke and Lauriston x Above ground fuel storage tanks identified at Tathra1, Inverness, Springhurst1, Boondah1 and The Wilgas x Underground fuel storage tank identified at Lauriston1

1 – Property is partially within the Project Boundary (see Figure 5), therefore identified potential sources of contamination may be situated outside of the Project Boundary

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9 MITIGATION AND MANAGEMENT

Although multiple potential sources of contamination were identified within the Project Boundary, the majority of the potential sources of contamination identified are associated with structures and activities likely to be identified on other properties with an extensive history of agricultural land use. The results of this PCA identified the need for an additional investigation to be undertaken to assess the extent of contamination throughout the Project Boundary. It is recommended that a contamination investigation should be undertaken by a licensed contractor to further assess the extent of contamination prior to the disturbance of the sources of contamination, with consideration of the potentially contaminated areas outlined in Section 8. Following the detailed contamination investigation, a remedial action plan should be prepared for the Project to manage any identified contamination.

* * *

for HANSEN BAILEY

Melissa Walker James Bailey Senior Environmental Scientist Director

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10 LIMITATIONS

This PCA was prepared by Hansen Bailey to provide a preliminary indication of contamination conditions within the Project Boundary based on available information at the time of the assessment and does not constitute a detailed site investigation undertaken by a licensed contractor. A detailed site investigation should be undertaken by a licensed contractor to assess the extent of contamination prior to the disturbance of the sources of contamination. The property condition reports and Historic Heritage Impact Assessment reviewed in Section 6 and Section 7 were not prepared for the purpose of a contamination assessment and therefore the observations made were not targeted towards potential contaminant sources.

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12 REFERENCES

x AECOM Australia Pty Limited (2012). Watermark Coal Project Historic Heritage Impact Assessment.

x Banks R G (1995). Soil Landscapes of the Curlewis 1:100,000 Sheet, NSW Department of Conservation and Land Management, Sydney.

x NSW Department of Urban Affairs and Planning & NSW Environment Protection Authority (1998). Managing Land Contamination, Planning Guidelines, SEPP 55 – Remediation of Land.

x NSW Environment Protection Authority (2012). List of NSW Contaminated Sites, http://www.environment.nsw.gov.au/clm/publiclist.htm, accessed 14 June 2012.

x NSW Office of Environment and Heritage (2011). Guidelines for Consultants Reporting on Contaminated Sites.

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