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Caroona Coal Project Application for Gateway Certificate Appendix C Preliminary Groundwater Assessment

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Caroona Coal Project Application for Gateway Certificate Appendix C Preliminary Groundwater Assessment Caroona Coal Project Application for Gateway Certificate Appendix C Preliminary Groundwater Assessment CAROONA COAL PROJECT: GATEWAY APPLICATION PRELIMINARY GROUNDWATER ASSESSMENT FOR BHP BILLITON By C. Nicol, T. Liu and Dr N. P. Merrick Heritage Computing Pty Ltd trading as HydroSimulations Report: HC2013/25 Date: March 2014 EXECUTIVE SUMMARY HydroSimulations has been engaged by Coal Mines Australia Pty Ltd (CMAL), a wholly owned subsidiary of BHP Billiton, to undertake a Preliminary Groundwater Assessment for the proposed Caroona Coal Project (the Project), for the purposes of assessment under the New South Wales (NSW) Government’s Gateway Application Process. A further groundwater assessment will be undertaken for the Environmental Impact Statement (EIS). The Project is a proposed underground (longwall) coal mining operation targeting the Hoskissons Coal seam, with an operational life of approximately 30 years. The Project is located in the New England North West Region, approximately 40 kilometres (km) south east of Gunnedah in NSW. The Project area is located within Exploration Licence (EL) 6505. Consistent with the requirements of the Strategic Regional Land Use Policy Guideline for Gateway Applicants (NSW Government, 2013) (Gateway Application Guidelines), the assessment relies on numerical modelling of potential risks of mine development in terms of the NSW Aquifer Interference (AI) Policy and Gateway Application requirements. This modelling was undertaken in consideration of the Murray-Darling Basin Commission (MDBC) Groundwater Flow Modelling Guideline (MDBC, 2001) and the relatively new National Guidelines, sponsored by the National Water Commission (Barnett et al., 2012). A review of the data, literature and conceptual hydrogeology associated with other studies from the area and surrounds was carried out as a basis for model development. This was supported by a review of currently available information on geology, rock mass hydraulic properties, and strata geometry in the vicinity of the Project. The complexity of the numerical groundwater model developed as part of this study is appropriate for this preliminary groundwater assessment by simulating contrasts in hydraulic properties and hydraulic gradients that may be associated with changes to the groundwater system as a result of the proposed development. The AI Policy framework has been developed by the NSW Government to assist with the assessment and management of activities with potential to affect groundwater resources. The AI Policy framework has been developed by the NSW Office of Water (NOW) which identifies two Levels of minimal impact considerations, as described below: Level 1 impact, which is considered acceptable. Level 2 impact, which requires further studies to assess whether a project will prevent the long-term viability of a dependent ecosystem or significant site, or needs other arrangements to mitigate the impacts. Caroona Coal Project: Gateway Application Preliminary Groundwater Assessment i Consistent with the Gateway Application Guidelines, this report assesses impacts on groundwater designated as ‘highly productive’ groundwater. The key findings of the preliminary groundwater assessment with respect to NOW’s AI Policy are as follows: The Project meets the Level 1 Minimal Impact Considerations of the AI Policy for ‘highly productive’ groundwater associated with the Namoi Alluvium (i.e. Upper and Lower Namoi Groundwater Sources), and with the Liverpool Range Basalts (i.e. NSW Murray Darling Basin Fractured Rock Groundwater Sources [Liverpool Ranges Basalt MDB]). The Project triggers the Level 2 Minimal Impact Considerations of the AI Policy for the ‘highly productive’ Jurassic NSW Murray Darling Basin Porous Rock Groundwater Sources (Gunnedah-Oxley Basin MDB [Spring Ridge]). This is due to a model estimation of more than 2 metres (m) cumulative drawdown at 27 water supply works. Consistent with the findings of the Namoi Catchment Water Study, BHP Billiton has committed to “make good” provisions for any groundwater users adversely affected by mine operations and associated impacts – i.e. provision of alternative water supply or remedial works (e.g. deepening of existing wells or bores). A Groundwater Management Plan will be developed prior to the commencement of longwall mining to define groundwater level triggers, including a Trigger Action Response Plan, and appropriate management responses and mitigation measures. The impact assessment presented in this preliminary groundwater assessment will be refined as part of the groundwater assessment to accompany the Project EIS. As part of the Gateway Assessment, a number of bores were inspected to confirm their location, hydrogeological characteristics and usage (i.e. a bore census). BHP Billiton will conduct a second stage of the bore census in consultation with relevant landholders to confirm the status, location and details of the bores not yet inspected in order to inform further impact assessment work planned for the EIS. Caroona Coal Project: Gateway Application Preliminary Groundwater Assessment ii DOCUMENT REGISTER Revision Description Date 1 Preliminary draft. Data analysis section only. 05/12/2013 Draft for internal and external review. Completed Sections 3 through 8 2 12/01/2014 (model build, calibration and predictions). Draft for external review. Completed Section 2, added predictive 3 24/01/2014 sensitivity, revised sections 4 through 8 (model predictions). 4 Incorporated BHP/Resource Strategies/preliminary Frans Kalf comments. 16/02/2014 5 Final Draft. Incorporated BHP/Resource Strategies/Frans Kalf comments. 03/03/2014 6 Final. Incorporated BHP/Resource Strategies comments. 18/03/2014 Caroona Coal Project: Gateway Application Preliminary Groundwater Assessment iii TABLE OF CONTENTS EXECUTIVE SUMMARY ........................................................................................... I 1 INTRODUCTION ............................................................................................ 1 1.1 NATURE OF THE PROJECT ................................................................................... 1 1.2 SCOPE OF WORK .............................................................................................. 3 1.3 WATER REGULATION ........................................................................................ 4 1.4 APPROACH TO THE GATEWAY PROCESS ................................................................ 6 1.5 NAMOI CATCHMENT WATER STUDY .................................................................... 7 2 HYDROGEOLOGICAL SETTING AND CONCEPTUALISATION ............................ 12 2.1 TOPOGRAPHY ................................................................................................ 12 2.2 RAINFALL AND EVAPORATION ........................................................................... 12 2.3 SURFACE DRAINAGE ........................................................................................ 15 2.4 GEOLOGY...................................................................................................... 16 2.5 NEARBY MINES AND PROJECTS ......................................................................... 18 2.6 GROUNDWATER OCCURRENCE AND FLOW SYSTEMS .............................................. 18 2.6.1 Groundwater Monitoring ................................................................. 21 2.6.2 Groundwater Recharge .................................................................... 31 2.6.3 Groundwater Use ............................................................................. 32 2.6.4 Groundwater Quality ....................................................................... 32 2.6.4.1 Salinity .......................................................................................... 32 2.6.4.2 pH .................................................................................................. 35 2.6.5 Hydraulic Properties......................................................................... 36 2.6.5.1 Hydraulic Conductivity (K)............................................................. 38 2.6.5.2 Specific Yield ................................................................................. 41 2.6.5.3 Specific Storage............................................................................. 41 2.6.6 Groundwater-Surface Water Interaction......................................... 42 2.7 CONCEPTUAL HYDROGEOLOGICAL MODEL .......................................................... 43 2.7.1 Hydrostratigraphic Units .................................................................. 43 Caroona Coal Project: Gateway Application Preliminary Groundwater Assessment iv 2.7.2 Recharge .......................................................................................... 43 2.7.3 Discharge .......................................................................................... 43 2.7.4 Hydraulic Properties......................................................................... 44 2.7.5 Impact of Mining on Overburden .................................................... 44 2.7.6 Water Balance Changes Due to Mining ........................................... 45 3 GROUNDWATER SIMULATION MODEL ........................................................ 68 3.1 MODEL SOFTWARE AND COMPLEXITY ................................................................ 68 3.2 MODEL LAYERS AND GEOMETRY ....................................................................... 69 3.3 BOUNDARY CONDITIONS .................................................................................
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