Sarulla O P E R a T I O N S L T D

Sarulla O p e r a t i o n s L t d

Environmental Management Plan

Development of Sarulla Geothermal Field and Power Plant of 330 MW Capacity North Tapanuli Regency, North Sumatera Province

August 2009

VALIDATION SHEET

GOVERNOR OF NORTH SUMATERA DECREE NUMBER: 671.26/3067/K/2009 ON 12 AUGUST 2009

CONCERNING

ENVIRONMENTAL FEASIBILITY OF THE DEVELOPMENT OF SARULLA GEOTHERMAL FIELD AND POWER PLANT WITH CAPACITY OF 330 MW IN

NORTH TAPANULI REGENCY

NORTH SUMATERA PROVINCE

Sarulla Operations Ltd (SOL) 2009

STATEMENT No: SOL-092/DIR/VII/2009

The undersigned,

Name : Aries Pardjimanto Position : Director Company : Sarulla Operations Ltd. (SOL) Address : The Energy 50th Floor, SCBD Lot 11A Jl. Jend. Sudirman Kav. 52-53 Jakarta 12190 – Indonesia Telephone : 021-29951300 Fax : 021-5225877

As the project proponent for the Development of Sarulla Geothermal Field and Power Plant of 330 MW Capacity in Pahae Jae and Pahae Julu Districts, North Tapanuli Regency, North Sumatera Province, states that:

1. We will implement the commitments on environmental management and monitoring as specified in Environmental Management Plan and Environmental Monitoring Plan for the Development of Sarulla Geothermal Field and Power Plant of 330 MW Capacity in Pahae Jae and Pahae Julu Districts, North Tapanuli Regency, North Sumatera Province.

2. We will undertake environmental management and monitoring as appropriate in accordance with relevant regulations.

This statement is prepared truthfully and to be used appropriately.

Jakarta, June 2009 Sarulla Operations Ltd. (SOL)

Aries Pardjimanto Director

FOREWORD

SARULLA OPERATIONS LTD., (SOL) a consortium between PT MEDCO GEOPOWER SARULLA, ORSARULLA INC., SARULLA POWER ASSET LTD., and KYUDEN SARULLA PTE LTD, plans to develop Sarulla geothermal field and 330 MW power plant in Pahae Jae and Pahae Julu Districts of Tapanuli Utara Regency, Sumatera Utara Province.

The development of this project will bring positive impacts but on the other hand possibilities of negative impacts on physical-chemical components, biological components, and socio-economic, socio-cultural, and public health components.

AMDAL documents of Sarulla geothermal field development were approved in November 2005 by the Governor of Sumatera Utara. Considering (a) additional activities like production well operation and drilling; (b) changes in vapor and brine cooling system from water to air, which is more environmentally friendly; (c) constructions and operations of internal electricity transmission from Silangkitang (SIL) to Namora I Langit NIL; (d) changes of project proponent from PT PLN (Persero) to Sarulla Operations Ltd. (SOL), the 2005 AMDAL documents have been revised in order to continue the development of Sarulla geothermal field and power plant.

Following an approval of Term of Reference Document by the Environmental Impact Control Agency of North Sumatera Province No: 973/BPDL-SU/BTL/2008 on 8 August 2008, the Environmental Impact Statement (ANDAL), Environmental Management Plan (RKL) and Environmental Monitoring Plan (RPL) documents have been prepared. These documents have been prepared in accordance to Minister of Environment Decree No. 08 of 2006 regarding Guidance for Preparing Environmental Impact Assessment Documents.

Sarulla Operations Ltd. is committed to environment, health and safety (HSE) in conducting its activities. It is expected that this project will give benefits to the stakeholders, especially to local communities, local government, employees and its shareholders.

To those who have helped in the completions of ANDAL, RKL, and RPL documents, we express our gratitude.

Jakarta, June 2009

Project Proponent, Sarulla Operations Ltd., (SOL)

Aries Pardjimanto Director

ENVIRONMENTAL MONITORING PLAN/RKL SARULLA OPERATIONS LIMITED (SOL)

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TABLE OF CONTENTS

VALIDATION SHEET ...... I

STATEMENT ...... II

FOREWORD ...... III

TABLE OF CONTENTS ...... IV

LIST OF APPENDICES...... VI

LIST OF MAPS ...... VI

CHAPTER I INTRODUCTION...... I-1

1.1 AIMS AND OBJECTIVES...... I-1 1.1.1 Aims...... I-1 1.1.2 Objectives...... I-3

1.2 ENVIRONMENTAL POLICY...... I-3

1.3 THE PURPOSES OF ENVIRONMENTAL MANAGEMENT PLAN (RKL)...... I-4

CHAPTER II ENVIRONEMNTAL MANAGEMENT APPROACH...... II-1

2.1 TECHNOLOGICAL APPROACH ...... II-1 2.1.1 Power plant technology ...... II-1 2.1.2 Drilling technology...... II-1 2.1.3 Air pollution control technology ...... II-2 2.1.4 Waste management technology...... II-2

2.2 SOCIO-ECONOMIC APPROACH ...... II-2 2.2.1 Anticipative Approach...... II-3 2.2.2 Direct and indirect approaches...... II-3 2.2.3 Segmentary approach...... II-3 2.2.4 Stimulative approach ...... II-3 2.2.5 Qualitative and quantitative approaches ...... II-4 2.2.6 Community development approach...... II-4

2.3 INSTITUTIONAL APPROACH ...... II-4

2.4 ENVIRONMENTAL MANAGEMENT APPROACH ...... II-5

CHAPTER III ENVIRONMENTAL MANAGEMENT PLAN...... III-1

3.1 PRE-CONSTRUCTION STAGE ...... III-1 3.1.1 Socio-economic, socio-cultural, and public health components...... III-1 3.1.1.1 Land ownership and occupancy ...... III-1 3.1.1.2 Community unrest ...... III-2

3.2 CONSTRUCTION STAGE ...... III-3

ENVIRONMENTAL MONITORING PLAN/RKL SARULLA OPERATIONS LIMITED (SOL)

3.2.1 Geophysical and chemical components ...... III-3 3.2.1.1 H2S ...... III-3 3.2.1.2 Noise...... III-4 3.2.2 Socio-economic, socio-cultural, and public health components...... III-6 3.2.2.1 Job opportunities ...... III-6 3.2.2.2 Business opportunities...... III-7 3.2.2.3 Community income...... III-7 3.2.2.4 Community unrest ...... III-8 3.2.2.5 Transportation ...... III-10

3.3 OPERATION STAGE...... III-11 3.3.1 Geophysical and chemical components ...... III-11 3.3.1.1 H2S ...... III-11 3.3.1.2 Noise...... III-12 3.3.2 Socio-economic, socio-cultural, and public health components...... III-13 3.3.2.1 Job opportunities ...... III-13 3.3.2.2 Business opportunities...... III-14 3.3.2.3 Community income...... III-15 3.3.2.4 Community unrest ...... III-16

3.4 OTHER MONITORING ...... III-17 3.4.1 Solid and liquid waste monitoring...... III-17 3.4.1.1 Surface water quality ...... III-17 3.4.2 Community development programs ...... III-19 3.4.2.1 Provision of education services and facilities..III-19 3.4.2.2 Provision of public health services ...... III-20 3.4.2.3 Initiatives for improving farming and agriculture cultivation techniques ...... III-20 3.4.2.4 Local business opportunities ...... III-21 3.4.2.5 Provision of public infrastructures ...... III-23 3.4.2.6 Cultural preservation...... III-24 3.4.2.7 Awareness of SOL activities ...... III-25

3.5 POST-OPERATION STAGE ...... III-26 3.5.1 Socio-economic, socio-cultural, and public health components...... III-26 3.5.1.1 Job opportunities ...... III-26 3.5.1.2 Business opportunities...... III-27 3.5.1.3 Community income...... III-27 3.5.1.4 Community unrest ...... III-28

3.6 POST-OPERATION ENVIRONMENTAL MANAGEMENT PLANS .....III-29 3.6.1 Closure of production and reinjection wells...... III-29 3.6.2 Deactivation of pipelines and supporting facilities ...... III-30 3.6.3 Deactivation of geothermal power plants...... III-30

BIBLIOGRAPHY

ENVIRONMENTAL MONITORING PLAN/RKL SARULLA OPERATIONS LIMITED (SOL)

LIST OF APPENDICES

Appendix 1 Environmental Management Plan Matrix Summary

Appendix 2 SOL Organization Chart

LIST OF MAPS

Map I-1 Project Location ...... I-2

Map III-1 Environmental Management Plan Locations ...... III-31

ENVIRONMENTAL MONITORING PLAN/RKL SARULLA OPERATIONS LIMITED (SOL)

CHAPTER I INTRODUCTION

In compliance with the applicable regulations in Indonesia, this Environmental Management Plan (Rencana Pengelolaan Lingkungan = RKL) shall be submitted with Environmental Impact Statement (Analisis Dampak Lingkungan Hidup = ANDAL) and Environmental Monitoring Plan (Rencana Pemantauan Lingkungan Hidup = RPL). This RKL was prepared in accordance with Minister of Environment Regulation No. 08 of 2006 concerning guidance on the preparation of Environmental Impact Analysis (Analisis Mengenai Dampak Lingkungan = AMDAL).

The development of Sarulla geothermal field and power plant Sarulla PLTP is located ± 40 km south of the city of Tarutung on the Trans-Sumatra highway (Tarutung-Sipirok) with Sarulla Operations Ltd (hereafter referred to as SOL) as the project proponent. Administratively this project is located in Pahae Jae and Pahae Julu Districts, North Tapanuli Regency, North Sumatera Province (see Map 1-1).

1.1 AIMS AND OBJECTIVES

1.1.1 Aims

The ANDAL document identified positive and negative significant impacts on the environment due to the activities of developing Sarulla geothermal field and power plant. Aims of the Environmental Management Plan are: • To comply with all applicable regulations in relation to pollution control, waste management and environmental quality monitoring; • To ensure that SOL activities are environmentally sound and sustainable i.e. effective management of natural resources to support economic and social developments in Indonesia, in particular to support economic and social developments in North Tapanuli Regency, North Sumatera Province; • To manage environmental changes resulting from the activities of developing Sarulla geothermal field and power plant hence safeguarding environmental quality; • To increase the positive impacts (benefits) and to prevent, control and manage the negative impacts (risk).

ENVIRONMENTAL MONITORING PLAN/RKL SARULLA OPERATIONS LIMITED (SOL)

I-1 380000 430000 480000 99°0'0"E 530000 580000 95°0'0"E 100°0'0"E 105°0'0"E 110°0'0"E

Kota Pari Propinsi Binjai MEDAN Batangkus Nanggroe Aceh 5°0'0"N Darusslam Lokasi Peta 5°0'0"N 400000 Lubuk Pakam Perbaungan Sialangbuah SELAT MALAKA Tanjung Marowa Kutacane Bohorok Tanjung Langkat Sungairampah Propinsi Pancurbatu Kabupaten Tanjungberingin Malaka Strait Sumatera

Bandarkhalipah 3°30'0"N Utara Propinsi Deli Serdang Pangkalandodek Riau

Kabupaten Bangunpurba Rantaulahan 0°0'0" SUMATERA 0°0'0" Lawe Sigala-gala timur Propinsi Sibolangit Tebing Tinggi Padang Propinsi Langkat Polonia Airport Martebing Bekancan Kotarih Jambi Indrapura Pebatu Propinsi Propinsi Sumatera Bengkulu Selatan Asahan Berastagi Labuhanruku G. Sinabung Propinsi Dolokmerawan Limapuluh

5°0'0"S Lampung 5°0'0"S Jakarta

350000 Kabanjahe Serbelawan Perdagangan Sungaihalai Laubaleng Tigabinanga Saran Padang 95°0'0"E 100°0'0"E 105°0'0"E 110°0'0"E Kisaran Sondi LEGENDA Merek Saribudolok 3°0'0"N Legend PROPINSI DK. Sibuaton Pematangsiantar NANGGROE ACEH Simpang Empat Ibukota Propinsi Tanjung Balai Provincial Capital DARUSSALAM Tigabalata Pematangtanah J Ibu Kota Kabupaten/Kotamadya Begrun DL. Bubun Tigadolok Regency Capital/Municipality Maras DANAU TOBA Ibu Kota Kecamatan dll Mandoge District Capital Sidikalang Toba Lake Gunung Mountain Kabupaten Jalan 300000 Rundeng Tomok Prapat Road Sabulus Salam Kabupaten Dairi Asahan DK. Pusuk Bukit Pangururan Rel Kereta Api Lumbanjulu Railway PULAU DK. Karombatang Aek Kanopan a Salak SAMOSIR Batas administrasi Propinsi Tete Province Administrative Boundary Samosir Island Batas Administratif Kabupaten Butar Mogang Regency Administrative Boundary Porsea PROPINSI 2°30'0"N Sungai River Lipat Kajang SUMATERA UTARA Laguboti DK. Sipajek Parlilitan Bakara Balige Singkil Baru Parsoburan Doloksanggul

250000 SiborongborongKabupaten Kabupaten Tapanuli Utara 0212.5 550Kilometers Onanganjang Labuhan Batu DK. Martujung Parmonangan Sipahutar

Garoga Sumber (Source) : Tarutung Pangaribuan Barus Peta Rupa Bumi Indonesia (BAKOSURTANAL) The Shuttle Radar Topography Mission (SRTM), Resolusi 90 meter

2°0'0"N Iniversal Transverse Merecator (UTM), Zona 47 Utarah, Datum Reference WGS 84 SAMUDERA HINDIA LOKASI PROYEK Kabupaten RENCANA PENGELOLAAN LINGKUNGAN Indian Ocean Tapanuli ENVIRONMENTAL MANAGEMENT PLAN Ten gah LOKASI PROYEK PENGEMBANGAN Sarulla 200000 PANAS BUMI DAN PEMBANGUNAN PLTP SARULLA Sibolga Pulau Nias Kabupaten PROJECT LOCATION OF GEOTHERMAL POWER PLANT Nias Island Tapanuli Selatan Skala Digambar Oleh 1:300.000 Scale Drawn By GGG Peta Diperiksa Oleh Sipirok I - 1 ABU Map Proofreader Tanggal Revisi Digabung Oleh 98°0'0"E 98°30'0"E 99°0'0"E 99°30'0"E 25/10/08 ERM Revision Date Compilation

The Environmental Management Plan was prepared to maintain the equilibrium between environmental components in the vicinity of the project area by: • Determining preventive, management and control measures on the negative impacts and enhance the positive impacts from the activities of developing Sarulla geothermal field and power plant; • Involving relevant government agencies and authorities in the environmental management in North Tapanuli Regency, North Sumatera Province; • Providing sufficient funds to implement the Environmental Management Plan and the Environmental Monitoring Plan to preserve current environmental conditions.

1.1.2 Objectives

Objectives of the Environmental Management Plan are as follow: • To provide guidelines and directions to implement the environmental management and monitoring of the development of Sarulla geothermal field and power plant; • To ensure that any environmental changes due to the activities of developing Sarulla geothermal field and power plant in North Tapanuli Regency, North Sumatera Province does not decrease environmental quality; • To preserve and maintain environmental quality around the development of Sarulla geothermal field and power plant project area in North Tapanuli Regency, North Sumatera Province; • To enhance and further develop the positive impacts and to control the negative impacts arising from the development of Sarulla geothermal field and power plant; • To establish mechanisms to coordinate environmental management activities with relevant government agencies.

1.2 ENVIRONMENTAL POLICY

According to SOL’s environmental policy, SOL is obliged to adhere to all applicable regulations concerning the environment, and health and safety, as well as to contribute to community development in the vicinity of the development of Sarulla geothermal field and power plant project area. SOL is committed to implement international standard best practice on environmental management, and health and safety (lingkungan, kesehatan dan keselamatan kerja = K3L). SOL acknowledges that its environmental management system must be integrated in each stage of the development of Sarulla geothermal field and power station. The success of its management system is measured by the following key points: • Existence of work environment where employees are able to fulfill their obligations without risks of having accidents or work-related injuries;

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• Pollution prevention; • Compliance with applicable Government regulations and SOL’s commitments to the environment, and health and safety; • Fulfillment of stakeholders’ expectations which include employees, local communities, governments, shareholders, and SOL customers; • Efficient use of natural resources; • Continuous improvements.

To achieve all of the above points, SOL is committed to implement a management system on the environment, health and safety as follows: • To identify environmental, health and safety risks in all activities of developing Sarulla geothermal field and power plant; • To establish objectives and targets for each significant risk; • To implement plans, standards, and procedures to manage and monitor such risks; • To carry out audits, evaluate and report the performance on the environment, health and safety on a regular basis; • To undertake continuous improvements in order to achieve compliance with applicable regulations and SOL’s commitments.

SOL organization structure to develop Sarulla geothermal field and power plant is presented in Appendix 2.

1.3 THE PURPOSES OF ENVIRONMENTAL MANAGEMENT PLAN (RKL)

One of the purposes of environmental management is to maintain environmental carrying capacity while achieving the schedule targeted to develop Sarulla geothermal field and power plant.

The Environmental Management Plan serves as directions and guidelines for SOL as the project proponent, and also for government agencies. The purposes of the Environmental Management Plan are: • To provide directions for the project proponent to managing the environment in the vicinity of the project area; • To serve as guidelines for the project proponent, government agencies and institutions in the implementation on environmental management in accordance to one’s functions and responsibilities; • To assist the government in environmental decision-making, planning and management; • To assist regional/local governments in environmental monitoring and development in order to preserve the environment; • To avoid conflicts between local communities and the project proponent;

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• To prevent environmental degradation and to focus on enhancing the positive impacts for local communities and regional/local governments.

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CHAPTER II ENVIRONEMNTAL MANAGEMENT APPROACH

2.1 TECHNOLOGICAL APPROACH

Process and technical approach, in accordance with currently available technology, is to be used to prevent, control, minimize and manage the negative impacts of the project activities. As much as possible, efforts are directed to preserve the environment and not to exceed environmental carrying capacity. Specific technical program includes:

2.1.1 Power plant technology

The development of Sarulla power plant employs air cooling system from Ormat Energy Converter (OEC). Hence, the development does not require make-up water. Brine and steam are to be re-injected into reinjection wells.

2.1.2 Drilling technology

Drilling includes production wells and reinjection wells. The drilling process will use water base mud (WBM) to prevent the borehole walls from caving during drilling. At certain depths, well casing will be installed to prevent caving of the borehole, and to prevent leakage from or to soil and rock formations. After the drilling is completed, well head will be equipped with tools to control fluid flow rate from the well. It is anticipated that drilling will utilize water from Batang Toru River approximately 400m3 for each well.

Chemicals required for drilling activity consist of WBM and cementing materials. The types and the amounts of the chemical required depend on the depth and the characteristics of the drilled formations. The typical chemicals required are as follow: • Barite; • Bentonite; • Caustic soda; • Sodium bicarbonate; • Hightemp defloculent; • Hightemp fluid (control additive).

Each chemical has its own MSDS and most of the chemicals are categorized as non- hazardous and non-toxic (non-B3) based on a list published by the United States

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Environmental Protection Agency (US-EPA). Storage and treatment of these chemicals and their residuals will refer to the associated MSDS.

Directional drilling technology will be employed to ensure an efficient use of drilling well pads during well development.

2.1.3 Air pollution control technology

Non-condensable gases (NCG) in the steam (mostly CO2 and a small amount of H2S) will be piped from Bottoming OECs heat exchangers to top of air cooled condenser fan and released to atmosphere.

2.1.4 Waste management technology

• Oil and chemical waste

The oil and chemical waste from the geothermal field and the power plant will be treated according to Government Regulation No. 85 of 1999 concerning changes to Government Regulation No. 18 of 1999 concerning the management of hazardous and toxic wastes. Used lubricant oil will be temporarily stored in a drum before handled by a licensed waste management contractor. • Liquid waste

Liquid waste from the power plant operation is originated from domestic waste and steam. Domestic waste is transferred to septic tanks whilst steam is re-

injected into reinjection wells and if required, H2SO4 is to be added to control pH. • Solid waste

Solid waste in forms of metals and cables are to be collected and transferred to a temporary storage near the project area. The temporary storage area is to be integrated with the temporary storage area for the installation of transmission network.

Domestic solid waste is biodegradable and to be collected in a temporary storage area at the project location. The waste will be handled by a licensed waste management contractor and transferred into the nearest licensed final disposal area.

2.2 SOCIO-ECONOMIC APPROACH

This approach includes steps for the project proponent to manage significant impacts by undertaking activities based on social interactions and collaborations with central/regional/local governments. The approach is specified as follows: 1. To involve local communities in the vicinity of the project area to actively participate in environmental management activities;

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2. To prioritize local workforce recruitment according to skills possessed and to pass SOL selection process; 3. To collaborate with third-party in providing goods and services thus improving local economy; 4. To provide public facilities to local communities in the vicinity of the project area according to project proponent’s capability; 5. To create and maintain harmonized social interaction with local communities in the vicinity of the project area to avoid social problems.

2.2.1 Anticipative Approach

This approach is identical to preventative efforts to avoid negative impacts (that can be predicted) as early as possible, or if unavoidable, to minimize the impacts as much as possible.

The initial step is to provide transparent information on the project activities. Information shall be presented in a clear and simple format, easily understood by local communities in order to minimize discrepancies between the project proponent and the local communities.

The anticipative approach shall be undertaken periodically in the form of consultation.

2.2.2 Direct and indirect approaches

Direct approach: directly towards local communities interested in the project.

Indirect approach: by approaching informal leaders i.e. community, religious and traditional leaders who lead non governmental institutions and considered as role models in the communities.

2.2.3 Segmentary approach

This is a segmented approach to be undertaken when complicated and interconnected problems occur.

A mediator with the ability to carry out segmentary approach proportionally and not to ignore issues between different stakeholders is necessary to reach a solution.

This approach is effective to manage community unrest in relation to workforce mobilization prior to and following the end of construction stage.

2.2.4 Stimulative approach

This approach focuses on managing socio-economic-cultural impacts as construction stage ends. The process of social adaption within the local communities with the project existence in their life does not stop as operation stage commences.

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The local communities still have to seek their new identity i.e. integration between the traditional and geothermal industry styles.

Stimulus shall be provided to put an end to gaps that exist due to discontinued primary impacts and to create secondary impacts.

2.2.5 Qualitative and quantitative approaches

Qualitative approach: the focus of this approach is to measure the success of the environmental management system related to socio-cultural parameters. Exact science cannot approach parameters such as cultural, custom, community perception, etc. Thus analogical methods and value judgment play an important role as qualitative approach.

Quantitative approach: can be used as guidelines to evaluate the success of the environmental management system related to socio-economic parameters. Quantitative calculations can be implemented to measure increase and decrease of community income before and after the project, business growth and decline, number of assets, turnover, capital, etc.

2.2.6 Community development approach

In order to manage the environmental impacts due to project activities, the project proponent shall undertake community development programs. The programs are expected to accommodate community participation together with the project proponent in environmental management.

2.3 INSTITUTIONAL APPROACH

Environmental management activities are not solely project proponent’s responsibilities but require involvement and integration between relevant institutions. It is therefore important to: • Coordinate with relevant institutions to develop and monitor the environment, and health and safety; • Coordinate with North Tapanuli Regency and relevant institutions in managing potential social issues; • Cooperate with various stakeholders including Non Governmental Organizations and local community leaders in undertaking community development programs; • Inform local communities on the objectives and benefits of the development of Sarulla geothermal field and power plant.

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2.4 ENVIRONMENTAL MANAGEMENT APPROACH

As a commitment to the highest environmental management standard, the project proponent plans to implement an environmental management system such as ISO 14001 or similar standard.

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CHAPTER III ENVIRONMENTAL MANAGEMENT PLAN

3.1 PRE-CONSTRUCTION STAGE

3.1.1 Socio-economic, socio-cultural, and public health components

3.1.1.1 Land ownership and occupancy

1. Significant impact and source of significant impact a) Significant impact Land ownership b) Source of significant impact Land acquisition

2. Impact indicator • Changes in land ownership that used to be owned by local community in the vicinity of the project areas • Community unrest due to the land acquisition

3. Environmental management objective To avoid and minimize community unrest due to land acquisition process

4. Environmental management plan • Prepare a project plan and to coordinate with relevant authorities on areas which will be acquired • Undertake public consultation for each land acquisition activity • Persuasively approach land owners/users in order to obtain information on land ownership status and size of land • Investigate, ensure and record the land ownership information • Coordinate with relevant local authorities (National Land Agency North Tapanuli Regency, Head of District (camat) and village heads (kepala desa) during the land acquisition process • Obtain mutual agreements between the project proponent and land owners on the values and forms of compensation towards land and vegetation acquisitions in accordance with applicable laws and regulations

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5. Environmental management location The development of geothermal field and Sarulla power plant project area in Pahae Jae and Pahae Julu Districts, North Tapanuli Regency

6. Environmental management period During the pre-construction stage

7. Environmental management institutions • Implementer: SOL • Supervisor: National Land Agency (BPN), North Tapanuli Regency • Reporting to: Environmental Impact Management Agency (Bapedalda) of North Sumatera Province, Environmental Office of North Tapanuli Regency, Mining and Energy Agency of North Sumatera Province, Mining and Energy Agency of North Tapanuli Regency, Directorate General of Mineral, Coal and Geothermal of Department of Mineral and Energy Resources

3.1.1.2 Community unrest

1. Significant impact and source of significant impact a) Significant impact Community unrest b) Source of significant impact Land acquisition

2. Impact indicator • Complaints from the community regarding boundaries and size of land • Different opinions in land value and compensation types for land and/or vegetation acquisitions

3. Environmental management objective To avoid and minimize community unrest due to land acquisition process

4. Environmental management plan • Prepare a work plan consisting of land acquisition mechanism, land compensation system and monitoring plan • Consult and disseminate accurate information regarding land acquisition activities • Carry out land acquisition activities fairly and openly

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5. Environmental management location Villages in the vicinity of the development of geothermal fields and Sarulla power plant project area in Pahae Jae and Pahae Julu Districts, North Tapanuli Regency

6. Environmental management period During the pre-construction stage

7. Environmental management institutions • Implementer: SOL • Supervisor: Environmental Impact Management Agency (Bapedalda) of North Sumatera Province, Environmental Office of North Tapanuli Regency • Reporting to: Environmental Impact Management Agency (Bapedalda) of North Sumatera Province, Environmental Office of North Tapanuli Regency, Mining and Energy Agency of North Sumatera Province, Mining and Energy Agency of North Tapanuli Regency, Directorate General of Mineral, Coal and Geothermal of Department of Mineral and Energy Resources

3.2 CONSTRUCTION STAGE

3.2.1 Geophysical and chemical components

3.2.1.1 H2S

1. Significant impact and source of significant impact a) Significant impact

H2S concentrations in ambient air b) Source of significant impact Well drilling and production testing

2. Impact indicator Minister of Environment Decree No. Kep-50/MENLH/11/ 1996

3. Environmental management objective

To minimize H2S concentration in ambient air

4. Environmental management plan • Secure well locations and limit access for local communities

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• Workers nearby well locations must be equipped with PPE (Personal Protective Equipment)

• Production test locations will be equipped with H2S monitoring equipment • Maintenance of construction vehicles • Reduce vehicles speed to a maximum of 40 km/hour • Put ’Do Not Enter’ signs for unauthorized personnel during the drilling and test production

• Evacuate personnel and residents around well locations if H2S concentration is exceeded

• If based on monitoring results the H2S concentration exceeds the threshold, production wells will be reduced to ensure achievement

of H2S concentration standard

5. Environmental management location Around the area of well drilling and production testing

6. Environmental management period During the construction stage

7. Environmental management institutions • Implementer: SOL. • Supervisor: Environmental Impact Management Agency (Bapedalda) of North Sumatera Province, Environmental Office of North Tapanuli Regency • Reporting to: Environmental Impact Management Agency (Bapedalda) of North Sumatera Province, Environmental Office of North Tapanuli Regency, Mining and Energy Agency of North Sumatera Province, Mining and Energy Agency of North Tapanuli Regency, Directorate General of Mineral, Coal and Geothermal of Department of Mineral and Energy Resources

3.2.1.2 Noise

1. Significant impact and source of significant impact a) Significant impact Noise b) Source of significant impact • Mobilization of equipment and material • Well drilling and production testing

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• Power plant construction

2. Impact indicator Minister of Environment Decree No Kep-48/MENLH/11/1996

3. Environmental management objective To minimize an increased in noise level

4. Environmental management plan • Maintenance of construction vehicles • Reduce vehicles speed to a maximum of 40 km/hour • Install silencer to reduce noise • Workers nearby production test well to use ear muff • Put ’Do Not Enter’ signs for unauthorized personnel during the drilling • Plant trees with wide canopies to reduce noise level • Consultation with communities close to the project location

5. Environmental management location • Road access within the development of Sarulla geothermal fields and power plant project area • Well locations • Power plant construction area

6. Environmental management period During the construction stage

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3.2.2 Socio-economic, socio-cultural, and public health components

3.2.2.1 Job opportunities

1. Significant impact and source of significant impact a) Significant impact Job opportunities b) Source of significant impact Workforce recruitment

2. Impact indicator Numbers of local and non-local workers recruited by SOL and its contractors

3. Environmental management objective • To optimize job opportunities for local communities • To prioritize local communities in workforce recruitment

4. Environmental management plan • Provide job opportunities for local communities who fulfill company’s requirements and qualifications • Encourage contractors to hire as many local workers as possible

5. Environmental management location Villages in the vicinity of the development of geothermal field and Sarulla power plant project area in Pahae Jae and Pahae Julu Districts, North Tapanuli Regency

6. Environmental management period During the construction stage

7. Environmental management Institutions • Implementer: SOL • Supervisor: Labor Agency of North Tapanuli Regency • Reporting to: Environmental Impact Management Agency (Bapedalda) of North Sumatera Province, Environmental Office of North Tapanuli Regency, Mining and Energy Agency of North Sumatera Province, Mining and Energy Agency of North Tapanuli Regency, Directorate General of Mineral, Coal and Geothermal of Department of Mineral and Energy Resources

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3.2.2.2 Business opportunities

1. Significant impact and source of significant impact a) Significant impact Business opportunities b) Source of significant impact Construction activities

2. Impact indicator Creation of business opportunities for local communities

3. Environmental management objective To increase local communities’ participation in project activities

5. Environmental management location Villages in the vicinity of the development of geothermal field and Sarulla power plant project area in Pahae Jae and Pahae Julu Districts, North Tapanuli Regency

6. Environmental management period During the construction stage

7. Environmental management Institutions • Implementer: SOL • Supervisor: Labor Agency of North Tapanuli Regency • Reporting to: Environmental Impact Management Agency (Bapedalda) of North Sumatera Province, Environmental Office of North Tapanuli Regency , Mining and Energy Agency of North Sumatera Province, Mining and Energy Agency of North Tapanuli Regency, Directorate General of Mineral, Coal and Geothermal of Department of Mineral and Energy Resources

3.2.2.3 Community income

1. Significant impact and source of significant impact a) Significant impact Community income

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b) Source of significant impact Construction activities

2. Impact indicator Household income

3. Environmental management objective • To optimize job opportunities for local communities • To prioritize local communities in workforce recruitment • To increase the level of participation of local businesses in the project

4. Environmental management plan • Provide job opportunities for local communities who fulfill company’s requirements and qualifications • Provide opportunities for local businesses to participate in the provision of goods and services

5. Environmental management location Villages in the vicinity of the development of geothermal field and Sarulla power plant project area in Pahae Jae and Pahae Julu Districts, North Tapanuli Regency

6. Environmental management period During the construction stage

7. Environmental management institutions • Implementer: SOL • Supervisor: Labor Agency of North Tapanuli Regency • Reporting to: Environmental Impact Management Agency (Bapedalda) of North Sumatera Province, Environmental Office of North Tapanuli Regency, Mining and Energy Agency of North Sumatera Province, Mining and Energy Agency of North Tapanuli Regency, Directorate General of Mineral, Coal and Geothermal of Department of Mineral and Energy Resources

3.2.2.4 Community unrest

1. Significant impact and source of significant impact a) Significant impact Community unrest b) Source of significant impact • Workforce recruitment

ENVIRONMENTAL MONITORING PLAN/RKL SARULLA OPERATIONS LTD. (SOL)

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• Well drilling and production testing • Installation of transmission network

2. Impact indicator • Community complaints regarding workforce recruitment • Local concerns toward well drilling and production testing • Local concerns toward transmission network

3. Environmental management objective • To avoid and minimize community unrest towards workforce recruitment during the construction stage • To avoid community unrest towards well drilling activity • To avoid community unrest towards installation of transmission network

4. Environmental management plan • Prepare a work plan on local workforce recruitment during drilling and installation of transmission network • Consult and disseminate accurate information on workforce recruitment and its requirements fairly and openly • Public consultation on the drilling plan • Public consultation on the plan to install transmission network

5. Environmental management location • Villages in the vicinity of the development of geothermal field and Sarulla power plant project area in Pahae Jae and Pahae Julu Districts, North Tapanuli Regency • Villages in the transmission network area

6. Environmental management period During the construction stage

7. Environmental management Institutions • Implementer: SOL • Supervisor: Environmental Impact Management Agency (Bapedalda) of North Sumatera Province, Environmental Office of North Tapanuli Regency • Reporting to: Environmental Impact Management Agency (Bapedalda) of North Sumatera Province, Environmental Office of North Tapanuli Regency, Mining and Energy Agency of North Sumatera Province, Mining and Energy Agency of North Tapanuli

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Regency, Directorate General of Mineral, Coal and Geothermal of Department of Mineral and Energy Resources

3.2.2.5 Transportation

1. Significant impact and source of significant impact a) Significant impact Ground traffic disruption b) Source of significant impact Mobilization of equipment and materials

2. Impact indicator • PHF (Peak Hours Factors) • Number of traffic accidents

3. Environmental management objective • To minimize traffic congestion • To minimize traffic accidents • To increase traffic safety

4. Environmental management plan • Installation and maintenance of traffic signals • Cover trucks properly to avoid spillage of materials onto the road • Collaborate with professional contractors in the provision of transportation services for equipment and materials • Routine and scheduled maintenance for heavy duty vehicles • Routine road inspections with relevant government authorities to ensure safe and good road conditions, and that local communities’ activities do not endanger traffic conditions • Operation of heavy duty vehicles during non-peak hours

5. Environmental management location Roads accessed by project vehicles in North Tapanuli Regency

6. Environmental management period During the construction stage

7. Environmental management Institutions • Implementer: SOL • Supervisor: Traffic and Road Transportation Agency of North Tapanuli Regency

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• Reporting to: Environmental Impact Management Agency (Bapedalda) of North Sumatera Province, Environmental Office of North Tapanuli Regency, Mining and Energy Agency of North Sumatera Province, Mining and Energy Agency of North Tapanuli Regency, Directorate General of Mineral, Coal and Geothermal of Department of Mineral and Energy Resources

3.3 OPERATION STAGE

3.3.1 Geophysical and chemical components

3.3.1.1 H2S

1. Significant impact and source of significant impact a) Significant impact

H2S concentrations in ambient air b) Source of significant impact Power plant operation

2. Impact indicator Minister of Environment Decree No. Kep-50/MENLH/ 11/1996

3. Environmental management objective

To minimize H2S concentrations in the ambient air

4. Environmental management plan

• If the H2S concentration at the monitoring locations exceed the odor

quality standard of 0.02 ppm, emission of H2S from power plant will be controlled using technologies such as LO-CAT sulfur recovery unit until the concentration meets the odor quality standard • Secure power plant location and limit access for local communities • Workers working in the surrounding power plant area must be equipped with PPE (Personal Protective Equipment)

• Equip power plant with H2S monitoring equipment

5. Environmental management location Around power plant locations

6. Environmental management period During the operation stage

7. Environmental management institutions • Implementer: SOL

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• Supervisor: Environmental Impact Management Agency (Bapedalda) of North Sumatera Province, Environmental Office of North Tapanuli Regency • Reporting to: Environmental Impact Management Agency (Bapedalda) of North Sumatera Province, Environmental Office of North Tapanuli Regency, Mining and Energy Agency of North Sumatera Province, Mining and Energy Agency of North Tapanuli Regency, Directorate General of Mineral, Coal and Geothermal of Department of Mineral and Energy Resources

3.3.1.2 Noise

1. Significant impact and source of significant impact a) Significant impact Noise level b) Source of significant impact Power plant operation

2. Impact indicator Minister of Environment Decree No. Kep-48/MENLH/ 11/1996

3. Environmental management objective To minimize an increase in noise level

4. Environmental management plan • Workers in and around power plant to use ear muff • Install silencer to reduce noise • Plant trees with wide canopies to reduce noise level

5. Environmental management location Around power plant locations

6. Environmental management period During the operation stage

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Sumatera Province, Mining and Energy Agency of North Tapanuli Regency, Directorate General of Mineral, Coal and Geothermal of Department of Mineral and Energy Resources

3.3.2 Socio-economic, socio-cultural, and public health components

3.3.2.1 Job opportunities

1. Significant impact and source of significant impact a) Significant impact Job opportunities b) Source of significant impact Workforce recruitment

2. Impact indicator Numbers of local and non-local workers recruited by SOL and its contractors

3. Environmental management objective • To optimize job opportunities for local communities • To prioritize local communities in workforce recruitment

4. Environmental management plan • Provide job opportunities for local communities who fulfill company’s requirements and qualification • Encourage contractors to hire as many local workers as possible

5. Environmental management location Villages in the vicinity of the development of geothermal field and Sarulla power plant project area in Pahae Jae and Pahae Julu Districts, North Tapanuli Regency

6. Environmental management period During the operation stage

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Regency, Directorate General of Mineral, Coal and Geothermal of Department of Mineral and Energy Resources

3.3.2.2 Business opportunities

1. Significant impact and source of significant impact a) Significant impact Business opportunities b) Source of significant impact Operation activities

2. Impact indicator Creation of business opportunities for the local communities

3. Environmental management objective To increase local communities’ participation in the project

4. Environmental management plan • Provide opportunities for local businesses to participate in the provision of goods and services • Provide guidance for local businesses in order to fulfill company’s standards

5. Environmental management location Villages in the vicinity of the development of geothermal field and Sarulla power plant project area in Pahae Jae and Pahae Julu Districts, North Tapanuli Regency

6. Environmental management period During the operation stage

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3.3.2.3 Community income

1. Significant impact and source of significant impact a) Significant impact Community income b) Source of significant impact Operation activities

2. Impact indicator Household income

4. Environmental management plan • Provide job opportunities for local communities who fulfill company’s requirements and qualifications • Provide opportunities for local workers to grow and expand

5. Environmental management location Villages in the vicinity of the development of geothermal field and Sarulla power plant project area in Pahae Jae and Pahae Julu Districts, North Tapanuli Regency

6. Environmental management period During the operation stage

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3.3.2.4 Community unrest

1. Significant impact and source of significant impact a) Significant impact Community unrest b) Source of significant impact Workforce recruitment Operation of transmission network

2. Impact indicator • Community complaints regarding workforce recruitment • Local concerns toward operation of transmission network

3. Environmental management objective • To avoid and minimize community unrest towards workforce recruitment during the operation stage • To avoid community unrest towards operation of transmission network

4. Environmental management plan • Prepare a work plan on local workforce recruitment in fair and open ways • Public consultation on the operation of transmission network

6. Environmental management period During the operation stage

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Sumatera Province, Mining and Energy Agency of North Tapanuli Regency, Directorate General of Mineral, Coal and Geothermal of Department of Mineral and Energy Resources

3.4 OTHER MONITORING

3.4.1 Solid and liquid waste monitoring

3.4.1.1 Surface water quality

1. Significant impact and source of significant impact a) Significant impact Heavy metals, hazardous and toxic (B3) wastes b) Source of significant impact Drilling wells, sump pit, well production (during production test) which potentially produce both B3 and non-B3 wastes

2. Impact indicator • Compliance with waste water quality standards • Compliance with Minister of Energy and Mineral Resources Decree No. 45 of 2006 regarding the Management of Drilling Reservoir, Slurry Waste and Drill Powder in Oil and Gas Drilling Activities • Compliance with B3 waste regulations (Government Regulations No. 18 of 1999 and No. 85 of 1999)

3. Environmental management objective • To reduce impacts to surface and ground water qualities • To ensure proper management of B3 wastes according to the applicable B3 regulations

4. Environmental management plan a) Domestic solid waste: Solid waste disposal to landfills b) Liquid waste: • Liquid domestic waste water treatment from all project activities in domestic waste water treatment plant • Condensate and brine generated during the power plant production testing and operational to be injected into reinjection wells • Construction of sump pit that is coated with waterproof layer. Collected water in the sump pit, used in the drilling process as drilling mud component to be returned into the wells

ENVIRONMENTAL MONITORING PLAN/RKL SARULLA OPERATIONS LTD. (SOL)

III-17 c) B3 waste: • Fragments in the drilling mud to be stored in the sump pit • Drilling mud to be stored in the sump pit • Ensure that equipment and materials purchased by SOL do not contain PCBs, asbestos, ozone depleting substances and other prohibited materials according to relevant regulations • Neutralize and securely store used lead acid batteries • Collection of used oil, which then stored into drums and handed over to registered B3 management companies for further process • Installation of secondary containments around flammable and hazardous materials as required • Regular training on B3 waste management for employees

5. Environmental management location • Sarulla project area in Pahae Jae and Pahae Julu Districts, North Tapanuli Regency • B3 wastes temporary storage • Domestic waste water treatment plant. • Non B3 waste landfill • Well locations

6. Environmental management period During the operation stage

7. Environmental management institutions • Implementer: SOL • Supervisor: Environmental Impact Management Agency (Bapedalda) of North Sumatera Province, Environmental Office of North Tapanuli Regency • Reporting to: Environmental Impact Management Agency (Bapedalda) of North Sumatera Province, Environmental Office of North Tapanuli Regency • Mining and Energy Agency of North Sumatera Province • Mining and Energy Agency of North Tapanuli Regency • Directorate General of Mineral, Coal and Geothermal of Department of Mineral and Energy Resources

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3.4.2 Community development programs

3.4.2.1 Provision of education services and facilities

1. Significant impact and source of significant impact a) Significant impact Provision of education services and facilities for local communities b) Source of significant impact Increased demands for education services and facilities

2. Impact indicator Distribution of education facilities around the project area in Pahe Jae and Pahe Julu Districts, North Tapanuli Regency

3. Environmental management objective • To assist local governments in the provision of required education services and facilities under Community Development Program • To ensure responsible and effective use of Community Development Program funds

4. Environmental management plan Cooperation with relevant stakeholders in formal education and training to improve the qualities of local community resources

5. Environmental management location Villages in the vicinity of the development of geothermal field and Sarulla power plant project area in Pahae Jae and Pahae Julu Districts, North Tapanuli Regency

6. Environmental management period During the operation stage

7. Environmental management institutions • Implementer: SOL • Supervisor: Education Agency of North Tapanuli Regency • Reporting to: Environmental Impact Management Agency (Bapedalda) of North Sumatera Province, Environmental Office of North Tapanuli Regency, Mining and Energy Agency of North Sumatera Province, Mining and Energy Agency of North Tapanuli Regency, Directorate General of Mineral, Coal and Geothermal of Department of Mineral and Energy Resources

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3.4.2.2 Provision of public health services

1. Significant impact and source of significant impact a) Significant impact Provision of public health services and facilities b) Source of significant impact Increased demands for health services and facilities

2. Impact indicator Distribution of health facilities around the project area in Pahe Jae and Pahe Julu Districts, North Tapanuli Regency

3. Environmental management objective To assist local governments in the provision of required health services and facilities under Community Development Program

4. Environmental management plan Cooperation with relevant stakeholders in health services

5. Environmental management location Villages in the vicinity of the development of geothermal field and Sarulla power plant project area in Pahae Jae and Pahae Julu Districts, North Tapanuli Regency

6. Environmental management period During the operation stage

7. Environmental management institutions • Implementer: SOL • Supervisor: Health Agency of North Tapanuli Regency • Reporting to: Environmental Impact Management Agency (Bapedalda) of North Sumatera Province, Environmental Office of North Tapanuli Regency, Mining and Energy Agency of North Sumatera Province, Mining and Energy Agency of North Tapanuli Regency, Directorate General of Mineral, Coal and Geothermal of Department of Mineral and Energy Resources

3.4.2.3 Initiatives for improving farming and agriculture cultivation techniques

1. Significant impact and source of significant impact a) Significant impact Agriculture productivity in Pahe Jae and Pahe Julu Districts, North Tapanuli Regency

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b) Source of significant impact • Limited knowledge on agricultural commodities with high economic values amongst young farmers • Low level of interest on agricultural activities amongst younger generation • Shortage of agriculture production • Limited high quality agricultural production facilities • Limited skills in using agricultural machineries amongst farmers

2. Impact indicator Production level and types of agricultural commodities around the project area in Pahe Jae and Pahe Julu Districts, North Tapanuli Regency

3. Environmental management objective • To maintain and increase production level and agriculture commodity types • To increase competitiveness of local agriculture commodities

4. Environmental management plan Cooperation with relevant stakeholders in local agriculture

5. Environmental management location Villages in the vicinity of the development of geothermal field and Sarulla power plant project area in Pahae Jae and Pahae Julu Districts, North Tapanuli Regency

6. Environmental management period During the operation stage

7. Environmental management institutions • Implementer: SOL • Supervisor: Agriculture Agency of North Tapanuli Regency • Reporting to: Environmental Impact Management Agency (Bapedalda) of North Sumatera Province, Environmental Office of North Tapanuli Regency, Mining and Energy Agency of North Sumatera Province, Mining and Energy Agency of North Tapanuli Regency, Directorate General of Mineral, Coal and Geothermal of Department of Mineral and Energy Resources

3.4.2.4 Local business opportunities

1. Significant impact and source of significant impact a) Significant impact

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Local communities’ participation level in various economic activities b) Source of significant impact • Level of local community participation integrally and equally in local business opportunities • Level of local community’s business skill • Availability of access to sources of funding and capitals

2. Impact indicator • Number of locally owned and managed businesses • Types of goods and services provided • Local economic activities value

3. Environmental management objective To increase participation of local communities in economic activities

4. Environmental management plan • Encourage the use and purchase of local products and services by SOL and its contractors • Provide assistance in training and opportunities to participate in local business activities • Increase local communities’ involvement in entrepreneurship through local business activities • Cooperation with local communities to improve the qualities of local goods and services

5. Environmental management location Villages in the vicinity of the development of geothermal field and Sarulla power plant project area in Pahae Jae and Pahae Julu Districts, North Tapanuli Regency

6. Environmental management period During the operation stage

7. Environmental management institutions • Implementer: SOL • Supervisor: Industrial Agency of North Tapanuli Regency • Reporting to: Environmental Impact Management Agency (Bapedalda) of North Sumatera Province, Environmental Office of North Tapanuli Regency, Mining and Energy Agency of North Sumatera Province, Mining and Energy Agency of North Tapanuli Regency, Directorate General of Mineral, Coal and Geothermal of Department of Mineral and Energy Resources

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3.4.2.5 Provision of public infrastructures

1. Significant impact and source of significant impact a) Significant impact Local communities’ needs and demands for public services b) Source of significant impact • Rapid growth and development rates • Local communities’ increased demands for public services

2. Impact indicator Local governments’ request to provide public infrastructures

3. Environmental management objective To support local governments in its efforts to provide adequate public services to local communities

4. Environmental management plan • Cooperation with local governments to determine public infrastructures to be provided • Encourage and assist local governments to develop its own social service initiatives

5. Environmental management location Villages in the vicinity of the development of geothermal field and Sarulla power plant project area in Pahae Jae and Pahae Julu Districts, North Tapanuli Regency

6. Environmental management period During the operation stage

7. Environmental management institutions • Implementer: SOL • Supervisor: Public Work Agency of North Tapanuli Regency • Reporting to: Environmental Impact Management Agency (Bapedalda) of North Sumatera Province, Environmental Office of North Tapanuli Regency, Mining and Energy Agency of North Sumatera Province, Mining and Energy Agency of North Tapanuli Regency, Directorate General of Mineral, Coal and Geothermal of Department of Mineral and Energy Resources

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3.4.2.6 Cultural preservation

1. Significant impact and source of significant impact a) Significant impact Changes in traditional, cultural values and customs b) Source of significant impact Increasing presence of modern society and its associated infrastructures and materials

2. Impact indicator Traditional activities, cultural festivals, books and monographs on language, history, sociology and local anthropology

3. Environmental management objective To assist local communities in keeping their traditional cultures intact

4. Environmental management plan Support local ethnics program s and activities, preserve local culture including traditional activities (dances), cultural festivals, seminars and conferences, books and monographs on language, history, sociology and local anthropology

5. Environmental management location Villages in the vicinity of the development of geothermal field and Sarulla power plant project area in Pahae Jae and Pahae Julu Districts, North Tapanuli Regency

6. Environmental management period During the operation stage

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3.4.2.7 Awareness of SOL activities

1. Significant impact and source of significant impact c) Significant impact Accuracy and completeness of information about SOL activities within the local communities d) Source of significant impact Misinformation circulating in the local communities concerning SOL activities

2. Impact indicator Lack of awareness and understanding of SOL activities (such as employment, training and business opportunities) within the workforce and local communities

3. Environmental management objective To ensure accuracy and completeness of information about SOL activities

4. Environmental management plan Regular information dissemination related to SOL activities to community leaders and local government

5. Environmental management location Villages in the vicinity of the development of geothermal field and Sarulla power plant project area in Pahae Jae and Pahae Julu Districts, North Tapanuli Regency

6. Environmental management period During the operation stage

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3.5 POST-OPERATION STAGE

3.5.1 Socio-economic, socio-cultural, and public health components

3.5.1.1 Job opportunities

1. Significant impact and source of significant impact a) Significant impact Community unrest b) Source of significant impact Employee release

2. Impact indicator Unemployment due to employee release

3. Environmental management objective To prevent high level of unemployment to occur by the end of the project

4. Environmental management plan Consultation with workers on the plan to release employees

5. Environmental management location Villages in the vicinity of the development of geothermal field and Sarulla power plant project area in Pahae Jae and Pahae Julu Districts, North Tapanuli Regency

6. Environmental management period During the post-operation stage

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3.5.1.2 Business opportunities

1. Significant impact and source of significant impact a) Significant impact Business opportunities b) Source of significant impact Completion of the operation stage

2. Impact indicator Reduction of business opportunities for local communities

3. Environmental management objective To maintain business opportunities for local communities

4. Environmental management plan Public consultation on the completion of project activities

5. Environmental management location Villages in the vicinity of the development of geothermal field and Sarulla power plant project area in Pahae Jae and Pahae Julu Districts, North Tapanuli Regency

6. Environmental management period During the post-operation stage

7. Environmental management institutions • Implementer: SOL • Supervisor: Labor Agency and Industrial Agency of North Tapanuli Regency • Reporting to: Environmental Impact Management Agency (Bapedalda) of North Sumatera Province, Environmental Office of North Tapanuli Regency, Mining and Energy Agency of North Sumatera Province, Mining and Energy Agency of North Tapanuli Regency, Directorate General of Mineral, Coal and Geothermal of Department of Mineral and Energy Resources

3.5.1.3 Community income

1. Significant impact and source of significant impact a) Significant impact Community income b) Source of significant impact Completion of the operation stage

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2. Impact indicator • Reduction of business opportunities for local communities • Reduction of community income around project location

3. Environmental management objective To avoid a decrease in community income

4. Environmental management plan • Consultation with workers on the plan to release employees • Provide adequate compensation to workers in accordance with applicable regulations • Public consultation on the completion of project activities

5. Environmental management location Villages in the vicinity of the development of geothermal field and Sarulla power plant project area in Pahae Jae and Pahae Julu Districts, North Tapanuli Regency

6. Environmental management period During the post-operation stage

3.5.1.4 Community unrest

1. Significant impact and source of significant impact a) Significant impact Community unrest b) Source of significant impact Workforce release

2. Impact indicator Community unrest due to workforce release

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3. Environmental management objective To avoid and minimize community unrest due to workforce release

4. Environmental management plan • Prepare a work plan on workforce release • Consultation with workers on the plan to release employees

5. Environmental management location Villages in the vicinity of the development of geothermal field and Sarulla power plant project area in Pahae Jae and Pahae Julu Districts, North Tapanuli Regency Villages in the transmission network area

6. Environmental management period During the post-operation stage

7. Environmental management institutions • Implementer: SOL • Supervisor: Environmental Impact Management Agency (Bapedalda) of North Sumatera Province, Environmental Office of North Tapanuli Regency • Reporting to: Environmental Impact Management Agency (Bapedalda) of North Sumatera Province • Environmental Office of North Tapanuli Regency • Mining and Energy Agency of North Sumatera Province • Mining and Energy Agency of North Tapanuli Regency • Directorate General of Mineral, Coal and Geothermal of Department of Mineral and Energy Resources

3.6 POST-OPERATION ENVIRONMENTAL MANAGEMENT PLANS

The post-operation stage occurs if and when transmission line or power plant equipment cannot serve its economic function, and therefore shall be deactivated. The deactivation process is anticipated to last 6 to 8 months prior to decommissioning. Local industries (especially PT. PLN) will be notified to asses the possibility to utilize the geothermal energy.

3.6.1 Closure of production and reinjection wells

Wells will be deactivated by following well closure procedure and areas around the wells will be rehabilitated. Reclamation of the wells area will be conducted with planting local plants. Well closure procedure is as follows:

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• To block the borehole with cement with a minimum of 30 m thickness placed on top of productions casing shoe and another layer of cement on top. Mud with similar or greater density than those used as drilling mud will be used as filling between the cement layers; • Production and reinjection wells closure will follow the procedure for permanent well closure.

3.6.2 Deactivation of pipelines and supporting facilities

All pipelines, pumps and separators will be deactivated in this stage following the procedure specified below: • Pipelines and other supporting facilities will be dismantled, loaded onto trucks then sold to scrap metal buyers, or disposed to a licensed disposal area; • Well pads will be replanted with grass and local plants.

3.6.3 Deactivation of geothermal power plants

As the operation stage is completed, all power plants will ceased to operate and will be demolished. • All functional equipment will be dismantled to be reused in other projects in Indonesia or abroad, or to be sold; • The remainder of equipment and buildings will be demolished. The debris will be sold to debris buyer or loaded onto trucks to be disposed to a licensed disposal area; • Power plant locations will be rehabilitated i.e. replanted with grass and local vegetation; • Unused land will be sold; • SOL workforce release will work follow the applicable law and regulations, and will comply with work contracts.

A summary of matrix of project closure is provided in Appendix 1.

ENVIRONMENTAL MONITORING PLAN/RKL SARULLA OPERATIONS LTD. (SOL)

III-30 500000 502500 505000 507500 510000 512500 515000 99°0'0"E

450000 500000 550000 ! 0 Lumban Dolok 1 ! DK. SIDUADUA! B a B Pematangsiantar ta Tanjung Balai n g KECAMATAN To Lumban Dolok 2 Dolok Siduad ru SIATAS BARITA SUMATERA DK. SIBATUB BATU 1420 300000 UTARA 1208 DANAU B TOBA 1234 B DK. TOLONG 1448 B 215000 1055 1285 B

B 250000 A

i Lokasi Peta m !

s Rantauprapat ! 1120 o Ta rutu ng B m

Onanhasang 1°56'0"N Sarulla ung Plaraja al 200000 ! g Sibolga ar im . S A Sibatu batu 1398 212500 910 B B Siparbar 927 B Pantis Peanor nor DK. GARUANG 887 B NIL WJ-R1 1240 Siantolung B

Aek Sitapean A 890 . NAMORA I LANGIT N F B a mb ilu 210000

n 1°54'0"N Hutajulu g Onanhasang KECAMATAN 878 Simataniari PAHAEJULU 1540 rce B NIL2-1 . A B P/S NIL3 A dis an ulu NIL3-1 . H u j A 1466 NIL2 -ba au Lumban Jaen B 1436 Sib A. B Sibaganding n a s NIL2-2 a NIL1 h 940 a Lumban garogi D

207500 984 B . B A 1240 NIL1-1 NIL WJ-P1 663 B B T. TANAH BLERANG NAMORA I LANGIT DK. AEKHOLANG 888 Simanampang

B 1°52'0"N g n la u H Labupining . BIG A A . Lingkung Aek 205000 T. PINDUA 914 1262 B B 1305 DK. SIALANG Simargunding Sitoluama B DK. SIOMBUN Sigompulan 1 B a t a n n ta g ru t a o rg r a u P Sigompulan 2 A. Simardangilang Pandahanan Sira 900 Sampil T. TINUOAN B

B 1°50'0"N

202500 1073 DK. PANGULU BALAM SIL2-1 SIL1-3 SIL2 915 B SILANGKITANG Silangkitang SIL1 SIL1-2 SIL1-1 P/S Sigurung gurung Pardamean Nainggolan SIL3-1 Pagaran Gunungtua Pardomuan Nainggolan Pringoloan A. Parihanan Pargaulan SIL3 200000 Hantopaniang KECAMATAN Huta Simarpinggan Siriaria PAHAEJAE Huta Bagot Haruara 1°48'0"N DK. SORIMBUNG Sihobuk B917 811 A. Lumbangaraga Par T. LIANG GARAHA B id atan T. SIBATUBATU 830 B Sarulla 596 970 Siparandean 197500 B B Aek Bulu A. tik Bar 126 A. Bo ebe B Huta Aek Botik

Hita janji Maria Sirihitrihit Tarutung Dua ¤ T. ADIAN HARAHA Huta Sitonggi to Sibulanbulan Ba Huta Aek B

ta 1°46'0"N 0120.5 Km B590 ng toru 195000 Labuha Lambir Hita janji Maria

99°0'0"E 99°2'0"E 99°4'0"E 99°6'0"E 99°8'0"E Legenda Legend Sumber (Source) : Peta Topografi - BAKOSURTANAL, 1977, Skala 1 : 50,000. Titik Ketinggian Sumur Eksplorasi Namora I Langit dan Silangkitang B Medco Geothermal Indonesia Elevation Point Namora I Langit and Silangkitang Exploration Wells Jalan Arteri Lokasi Sumur Baru (West JEC) RENCANA PENGELOLAAN LINGKUNGAN Arteri Road New Well Site (West JEC) ENVIRONMENTAL MANAGEMENT PLAN Jalan Kolektor P/S Pembangkit Listrik Collector Road Power Station Jalan Lokal Lokasi pengelolaan Lingkungan LOKASI PENGELOLAAN LINGKUNGAN Local Road Keterangan : Environmental Management Site Note : ENVIRONMENTAL MANAGEMENT SITE Batas Kecamatan DK : Bukit Kecamatan Boundary Skala Digambar Oleh Hill GGG Sungai Aek : Sungai Scale 1 : 100.000 Drafter River Diperiksa Oleh River Peta ABU Map III - 1 Proofreader Permukiman T. :Tinggi Tanggal Revisi Digabung Oleh Elevation 23/10/08 ERM Village Date Revision Compilation

BIBLIOGRAPHY

APHA, 1992. Standard Methods, APHA, AWWA, WPCF, Washington DC.

Arsyad, S., 1989. Konservasi Tanah dan Air, IPB – Press, Bogor

Cox, G. W., 1975. Laboratory Manual of General Ecology. Wm. C. Brown Co. Inc. Dubuque, Iowa.

Dinas Kesehatan Propinsi Sumatra Utara. 2002. Profil Kesehatan Propinsi Sumatra Utara 2001. Medan.

Hammer, W.I. 1981. Second Soil Conservation. Consultant Report. AGOF/INS/78/006. Tech. Note No. 10. Centre for Soil Research, Bogor, Indonesia

London, J.R. 1984. Soil Suitability for Crops. Booker Tropical Soil Manual, Booker Agric, Int’l Ltd., London.

Neuman, W. L. 2000. Social Research Method: Qualitative and Quantitative Approaches. Fourth Edition. Allyn & Bacon. New York.

Odum, E.P., 1971. Fundamental of Ecology., W.B. Saunders and Co. Philadelphia

Pertamina Unocal North Sumatera Geothermal, Ltd.,1998. Analisis Dampak Lingkungan (ANDAL) Pengembangan Lapangan Panas Bumi Silangkitang dan Pembangunan PLTP Sarulla Unit 1 dengan Kapasitas 110 MW, Kabupaten Tapanuli Utara, Provinsi Sumatera Utara. LP-ITB. Jakarta.

PT. PLN (Persero)., 2005. Analisis Dampak Lingkungan (ANDAL) PLTP Sarulla Tapanuli Utara, Prov. Sumatera Utara. PT. Berlian Jaya Mandiri. Medan

Rusli, Said. 1996. Pengantar Ilmu Kependudukan. Edisi 7 (Revisi). LP3ES. Jakarta.

Soemarwoto, O. 1991. Analisis Dampak Lingkungan (. Gajah Mada University Press, Yokyakarta.

Suratmo, G., 1988, Analisis Mengenai Dampak Lingkungan, Gajah Mada University Press, Yogyakarta.

West Japan Engineering Consultant, Inc., 2007. Indonesia Sarulla Geothermal Project. West JEC. Japan

Wishmeyer, W.H., and D.D. Smith., 1978. Predicting rainfall erosion losses: a guide to conservation planning. USDA Agr. Handbook.

ENVIRONMENTAL MONITORING PLAN/RKL SARULLA OPERATIONS LTD. (SOL)

III-1

Appendix 1 ENVIRONMENTAL MANAGEMENT PLAN MATRIX SUMMARY

Environmental Management Plan Summary Matrix

Significant Environmental Source of Environmental Environmental Environmental Environmental Management Institution Impact Impact Indicator Environmental Management Plan Component/ Activity Significant Impact Management Objective Management Location Management Period Parameter Implementer Supervisor Reporting to A. Pre‐construction stage Socio‐economic, socio‐cultural, and public health components Land ownership and Land ownership Land acquisition • Changes in land To avoid and minimize • Prepare a project plan and to The development of During the pre‐construction SOL National Land Agency • Environmental occupancy ownership that community unrest due coordinate with relevant authorities geothermal field and stage (BPN), North Tapanuli Impact used to be owned to land acquisition on areas which will be acquired Sarulla power plant Regency Management by local community process • Undertake public consultation for project area in Pahae Jae Agency (Bapedalda) in the vicinity of each land acquisition activity and Pahae Julu Districts, of North Sumatera the project areas • Persuasively approach land North Tapanuli Regency Province • Community unrest owners/users in order to obtain • Environmental due to the land information on land ownership status Office of North acquisition and size of land Tapanuli Regency • Investigate, ensure and record the • Mining and Energy land ownership information Agency of North • Coordinate with relevant local Sumatera Province authorities (National Land Agency • Mining and Energy North Tapanuli Regency, Head of Agency of North District (camat) and village heads Tapanuli Regency (kepala desa) during the land • Directorate General acquisition process of Mineral, Coal and • Obtain mutual agreements between Geothermal of the project proponent and land Department of owners on the values and forms of Mineral and Energy compensation towards land and Resources vegetation acquisitions in accordance with applicable laws and regulations Community unrest Community Land acquisition • Complaints from • To avoid and • Prepare a work plan consisting of land Villages in the vicinity of During the pre‐construction SOL • Environmental • Environmental unrest the community minimize community acquisition mechanism, land the development of stage Impact Impact regarding unrest due to land compensation system and monitoring geothermal fields and Management Management boundaries and acquisition process plan Sarulla power plant Agency Agency (Bapedalda) size of land • Consult and disseminate accurate project area in Pahae Jae (Bapedalda) of of North Sumatera • Different opinions information regarding land acquisition and Pahae Julu Districts, North Sumatera Province in land value and activities North Tapanuli Regency Province • Environmental compensation • Carry out land acquisition activities • Environmental Office of North types for land fairly and openly Office of North Tapanuli Regency and/or vegetation Tapanuli Regency • Mining and Energy acquisitions Agency of North Sumatera Province • Mining and Energy Agency of North Tapanuli Regency • Directorate General of Mineral, Coal and Geothermal of Department of Mineral and Energy Resources

ENVIRONMENTAL MONITORING PLAN/RKL SARULLA OPERATIONS LTD. (SOL)

Environmental Management Plan Summary Matrix

H2S H2S Well drilling and Minister of To minimize H2S • Secure well locations and limit access Around the area of well During the construction SOL • Environmental • Environmental concentrations production testing Environment Decree concentration in for local communities drilling and production stage Impact Impact in ambient air No. Kep‐ ambient air • Workers nearby well locations must testing Management Management 50/MENLH/11/ 1996 be equipped with PPE (Personal Agency Agency (Bapedalda) Protective Equipment) (Bapedalda) of of North Sumatera • Production test locations will be North Sumatera Province Province equipped with H2S monitoring • Environmental equipment • Environmental Office of North • Maintenance of construction vehicles Office of North Tapanuli Regency Tapanuli Regency • Reduce vehicles speed to a maximum • Mining and Energy of 40 km/hour Agency of North • Put ’Do Not Enter’ signs for Sumatera Province unauthorized personnel during the • Mining and Energy drilling and test production Agency of North • Evacuate personnel and residents Tapanuli Regency around well locations if H2S • Directorate General concentration is exceeded of Mineral, Coal and Geothermal of • If based on monitoring results the H2S concentration exceeds the threshold, Department of production wells will be reduced to Mineral and Energy Resources ensure achievement of H2S concentration standard

Noise Noise • Mobilization of Minister of To minimize an • Maintenance of construction vehicles • Road access within During the construction SOL • Environmental • Environmental equipment and Environment Decree increased in noise level • Reduce vehicles speed to a maximum the development of stage Impact Impact materials No. Kep‐ of 40 km/hour Sarulla geothermal Management Management • Well drilling and 48/MENLH/11/1996 • Install silencer to reduce noise fields and power Agency Agency (Bapedalda) plant project area (Bapedalda) of of North Sumatera production • Workers nearby production test well North Sumatera Province testing to use ear muff • Well locations Province • Environmental • Power plant • Put ’Do Not Enter’ signs for • Power plant • Environmental Office of North construction unauthorized personnel during the construction area Office of North Tapanuli Regency drilling Tapanuli Regency • • Plant trees with wide canopies to Mining and Energy reduce noise level Agency of North Sumatera Province • Consultation with communities close to the project location • Mining and Energy Agency of North Tapanuli Regency • Directorate General of Mineral, Coal and Geothermal of Department of Mineral and Energy Resources

ENVIRONMENTAL MONITORING PLAN/RKL SARULLA OPERATIONS LTD. (SOL)

Environmental Management Plan Summary Matrix

Business opportunities Business Construction Creation of business To increase local Provide opportunities for local businesses Villages in the vicinity of During the construction SOL Labor Agency of • Environmental opportunities activities opportunities for communities’ to participate in the provision of goods the development of stage North Tapanuli Impact local communities participation in project and services geothermal field and Regency Management activities Sarulla power plant Agency (Bapedalda) project area in Pahae Jae of North Sumatera and Pahae Julu Districts, Province North Tapanuli Regency • Environmental Office of North Tapanuli Regency • Mining and Energy Agency of North Sumatera Province • Mining and Energy Agency of North Tapanuli Regency • Directorate General of Mineral, Coal and Geothermal of Department of Mineral and Energy Resources

ENVIRONMENTAL MONITORING PLAN/RKL SARULLA OPERATIONS LTD. (SOL)

Environmental Management Plan Summary Matrix

Community unrest Community • Workforce • Community • To avoid and • Prepare a work plan on local • Villages in the vicinity During the construction SOL • Environmental • Environmental unrest recruitment complaints minimize workforce recruitment during drilling of the development stage Impact Impact • Well drilling and regarding community unrest and installation of transmission of geothermal field Management Management production workforce towards workforce network and Sarulla power Agency Agency (Bapedalda) testing recruitment recruitment during • Consult and disseminate accurate plant project area in (Bapedalda) of of North Sumatera • Installation of • Local concerns the construction information on workforce recruitment Pahae Jae and Pahae North Sumatera Province transmission toward well stage and its requirements fairly and openly Julu Districts, North Province • Environmental network drilling and • To avoid community • Public consultation on the drilling plan Tapanuli Regency • Environmental Office of North production testing unrest towards well • Public consultation on the plan to • Villages in the Office of North Tapanuli Regency • Local concerns drilling activity install transmission network transmission network Tapanuli Regency • Mining and Energy toward • To avoid community area Agency of North transmission unrest towards Sumatera Province network installation of • Mining and Energy transmission Agency of North network Tapanuli Regency • Directorate General of Mineral, Coal and Geothermal of Department of Mineral and Energy Resources

ENVIRONMENTAL MONITORING PLAN/RKL SARULLA OPERATIONS LTD. (SOL)

Environmental Management Plan Summary Matrix

C. Operation stage Geophysical and chemical components

H2S H2S Power plant Minister of To minimize H2S • If the H2S concentration at the Around power plant During the operation stage SOL • Environmental • Environmental concentrations operation Environment Decree concentrations in the monitoring locations exceed the odor locations Impact Impact in ambient air No. Kep‐50/MENLH/ ambient air quality standard of 0.02 ppm, Management Management 11/1996 emission of H2S from power plant will Agency Agency (Bapedalda) be controlled using technologies such (Bapedalda) of of North Sumatera as LO‐CAT sulfur recovery unit until North Sumatera Province the concentration meets the odor Province • Environmental quality standard • Environmental Office of North • Secure power plant location and limit Office of North Tapanuli Regency access for local communities Tapanuli Regency • Mining and Energy • Workers working in the surrounding Agency of North power plant area must be equipped Sumatera Province with PPE (Personal Protective • Mining and Energy Equipment) Agency of North • Equip power plant with H2S Tapanuli Regency monitoring equipment • Directorate General of Mineral, Coal and Geothermal of Department of Mineral and Energy Resources

ENVIRONMENTAL MONITORING PLAN/RKL SARULLA OPERATIONS LTD. (SOL)

Environmental Management Plan Summary Matrix

Province • Environmental • Environmental Office of North Office of North Tapanuli Regency Tapanuli Regency • Mining and Energy Agency of North Sumatera Province • Mining and Energy Agency of North Tapanuli Regency • Directorate General of Mineral, Coal and Geothermal of Department of Mineral and Energy Resources

Socio‐economic, socio‐cultural, and public health components Job opportunities Job Workforce Numbers of local and • To optimize job • Provide job opportunities for local Villages in the vicinity of During the operation stage SOL Labor Agency of • Environmental opportunities recruitment non‐local workers opportunities for communities who fulfill company’s the development of North Tapanuli Impact recruited by SOL and local communities requirements and qualification geothermal field and Regency Management its contractors • To prioritize local • Encourage contractors to hire as many Sarulla power plant Agency (Bapedalda) communities in local workers as possible project area in Pahae Jae of North Sumatera workforce and Pahae Julu Districts, Province recruitment North Tapanuli Regency • Environmental Office of North Tapanuli Regency • Mining and Energy Agency of North Sumatera Province • Mining and Energy Agency of North Tapanuli Regency • Directorate General of Mineral, Coal and Geothermal of Department of Mineral and Energy Resources

ENVIRONMENTAL MONITORING PLAN/RKL SARULLA OPERATIONS LTD. (SOL)

Environmental Management Plan Summary Matrix

Community income Community Operation activities Household income • To optimize job • Provide job opportunities for local Villages in the vicinity of During the operation stage SOL Labor Agency and • Environmental income opportunities for communities who fulfill company’s the development of Industrial Agency of Impact local communities requirements and qualifications geothermal field and North Tapanuli Management • To prioritize local • Provide opportunities for local Sarulla power plant Regency Agency (Bapedalda) communities in workers to grow and expand project area in Pahae Jae of North Sumatera workforce and Pahae Julu Districts, Province recruitment North Tapanuli Regency • Environmental • To increase the level Office of North of participation of Tapanuli Regency local businesses in • Mining and Energy the project Agency of North Sumatera Province • Mining and Energy Agency of North Tapanuli Regency • Directorate General of Mineral, Coal and Geothermal of Department of Mineral and Energy Resources

ENVIRONMENTAL MONITORING PLAN/RKL SARULLA OPERATIONS LTD. (SOL)

Environmental Management Plan Summary Matrix

ENVIRONMENTAL MONITORING PLAN/RKL SARULLA OPERATIONS LTD. (SOL)

Environmental Management Plan Summary Matrix

Significant Environmental Source of Environmental Environmental Environmental Environmental Management Institution Impact Impact Indicator Environmental Management Plan Component/ Activity Significant Impact Management Objective Management Location Management Period Parameter Implementer Supervisor Reporting to D. Other monitoring Solid and liquid waste monitoring Surface water quality Heavy metals, Drilling wells, sump • Compliance with • To reduce impacts Domestic solid waste: • Sarulla project area in During the operation stage SOL • Environmental • Environmental hazardous and pit, well production waste water to surface and • Solid waste disposal to landfills Pahae Jae and Pahae Impact Impact toxic (B3) (during production quality standards ground water Julu Districts, North Management Management wastes qualities Tapanuli Regency Agency Agency (Bapedalda) test) which • Compliance with Liquid waste: potentially produce • To ensure proper • B3 wastes temporary (Bapedalda) of of North Sumatera Minister of Energy • Liquid domestic waste water both B3 and non‐ management of B3 storage North Sumatera Province and Mineral treatment from all project activities in B3 wastes Province • Resources Decree wastes according to domestic waste water treatment plant • Domestic waste Environmental No. 45 of 2006 the applicable B3 • Environmental Office of North • Condensate and brine generated water treatment regarding the regulations Office of North Tapanuli Regency during the power plant production plant. Management of Tapanuli Regency • testing and operational to be injected • Non B3 waste landfill Mining and Energy Drilling Reservoir, into reinjection wells • Well locations Agency of North Slurry Waste and Sumatera Province • Construction of sump pit that is Drill Powder in Oil • coated with waterproof layer. Mining and Energy and Gas Drilling Agency of North Activities Collected water in the sump pit, used in the drilling process as drilling mud Tapanuli Regency • Compliance with component to be returned into the • Directorate General B3 waste wells of Mineral, Coal and regulations Geothermal of (Government Department of B3 waste: Regulations No. 18 Mineral and Energy of 1999 and No. 85 • Fragments in the drilling mud to be Resources of 1999) stored in the sump pit • Drilling mud to be stored in the sump pit • Ensure that equipment and materials purchased by SOL do not contain PCBs, asbestos, ozone depleting substances and other prohibited materials according to relevant regulations • Neutralize and securely store used lead acid batteries • Collection of used oil, which then stored into drums and handed over to registered B3 management companies for further process • Installation of secondary containments around flammable and hazardous materials as required • Regular training on B3 waste management for employees

ENVIRONMENTAL MONITORING PLAN/RKL SARULLA OPERATIONS LTD. (SOL)

Environmental Management Plan Summary Matrix

Provision of public health Provision of Increased demands Distribution of health To assist local Cooperation with relevant stakeholders Villages in the vicinity of During the operation stage SOL Health Agency of • Environmental services public health for health services facilities around the governments in the in health services the development of North Tapanuli Impact services and and facilities project area in Pahe provision of required geothermal field and Regency Management facilities Jae and Pahe Julu health services and Sarulla power plant Agency (Bapedalda) Districts, North facilities under project area in Pahae Jae of North Sumatera Tapanuli Regency Community and Pahae Julu Districts, Province Development Program North Tapanuli Regency • Environmental Office of North Tapanuli Regency • Mining and Energy Agency of North Sumatera Province • Mining and Energy Agency of North Tapanuli Regency • Directorate General of Mineral, Coal and Geothermal of Department of Mineral and Energy Resources

ENVIRONMENTAL MONITORING PLAN/RKL SARULLA OPERATIONS LTD. (SOL)

Environmental Management Plan Summary Matrix

Local business Local • Level of local • Number of locally To increase • Encourage the use and purchase of Villages in the vicinity of During the operation stage SOL Industrial Agency of • Environmental opportunities communities’ community owned and participation of local local products and services by SOL and the development of North Tapanuli Impact participation participation managed communities in its contractors geothermal field and Regency Management level in various integrally and businesses economic activities • Provide assistance in training and Sarulla power plant Agency (Bapedalda) economic equally in local • Types of goods and opportunities to participate in local project area in Pahae Jae of North Sumatera activities business services provided business activities and Pahae Julu Districts, Province opportunities North Tapanuli Regency • Local economic • Increase local communities’ • Environmental • Level of local activities value involvement in entrepreneurship Office of North community’s through local business activities Tapanuli Regency business skill • Cooperation with local communities to • Mining and Energy • Availability of improve the qualities of local goods Agency of North access to sources and services Sumatera Province of funding and • Mining and Energy capitals Agency of North Tapanuli Regency • Directorate General of Mineral, Coal and Geothermal of Department of Mineral and Energy Resources

ENVIRONMENTAL MONITORING PLAN/RKL SARULLA OPERATIONS LTD. (SOL)

Environmental Management Plan Summary Matrix

Cultural preservation Changes in Increasing presence Traditional activities, To assist local Support local ethnics program s and Villages in the vicinity of During the operation stage SOL Education Agency of • Environmental traditional, of modern society cultural festivals, communities in keeping activities, preserve local culture including the development of North Tapanuli Impact cultural values and its associated books and their traditional traditional activities (dances), cultural geothermal field and Regency Management and customs infrastructures and monographs on cultures intact festivals, seminars and conferences, Sarulla power plant Agency (Bapedalda) materials language, history, books and monographs on language, project area in Pahae Jae of North Sumatera sociology and local history, sociology and local anthropology and Pahae Julu Districts, Province anthropology North Tapanuli Regency • Environmental Office of North Tapanuli Regency • Mining and Energy Agency of North Sumatera Province • Mining and Energy Agency of North Tapanuli Regency • Directorate General of Mineral, Coal and Geothermal of Department of Mineral and Energy Resources

ENVIRONMENTAL MONITORING PLAN/RKL SARULLA OPERATIONS LTD. (SOL)

Environmental Management Plan Summary Matrix

E. Post‐operation stage Socio‐economic, socio‐cultural, and public health components Job opportunities Community Employee release Unemployment due To prevent high level of Consultation with workers on the plan to Villages in the vicinity of During the post‐operation SOL Labor Agency of • Environmental unrest to employee release unemployment to occur release employees the development of stage North Tapanuli Impact by the end of the geothermal field and Regency Management project Sarulla power plant Agency (Bapedalda) project area in Pahae Jae of North Sumatera and Pahae Julu Districts, Province North Tapanuli Regency • Environmental Office of North Tapanuli Regency • Mining and Energy Agency of North Sumatera Province • Mining and Energy Agency of North Tapanuli Regency • Directorate General of Mineral, Coal and Geothermal of Department of Mineral and Energy Resources

ENVIRONMENTAL MONITORING PLAN/RKL SARULLA OPERATIONS LTD. (SOL)

Environmental Management Plan Summary Matrix

Community income Community Completion of the • Reduction of To avoid a decrease in • Consultation with workers on the plan • Villages in the vicinity During the post‐operation SOL Labor Agency and • Environmental income operation stage business community income to release employees of the development of stage Industrial Agency of Impact opportunities for • Provide adequate compensation to geothermal field and North Tapanuli Management Regency local communities workers in accordance with applicable Sarulla power plant Agency (Bapedalda) • Reduction of regulations project area in Pahae of North Sumatera Jae and Pahae Julu Province community income • Public consultation on the completion Districts, North around project of project activities • Environmental Tapanuli Regency Office of North location Tapanuli Regency • Mining and Energy Agency of North Sumatera Province • Mining and Energy Agency of North Tapanuli Regency • Directorate General of Mineral, Coal and Geothermal of Department of Mineral and Energy Resources

ENVIRONMENTAL MONITORING PLAN/RKL SARULLA OPERATIONS LTD. (SOL)

Environmental Management Plan Summary Matrix

ENVIRONMENTAL MONITORING PLAN/RKL SARULLA OPERATIONS LTD. (SOL)

Appendix 2 SOL ORGANIZATION CHART

Board of Directors

General Manager

Secretary

Public Affairs Technical Human Resorces Finance HSE Manager Manager Manager Manager Manager

Land Acquisition Operation Health & Safety Supervisor Supervisor Supervisor

Technical Environmental Supervisor Supervisor

Sarulla Operations Ltd. Organization Structure