File No.APPC-IND0CR(NGL)/1/2018-EE(PCB)-APPCB(KRSN)

MINUTES OF THE ENVIRONMENTAL PUBLIC HEARING HELD ON 29.12.2017 AT ZP HIGH SCHOOL, (V) & (M), FOR DEVELOPMENT DRILLING OF WELLS (3 NO.S) AND ESTABLISHMENT OF EARLY PRODUCTION SYSTEM (1 NO.) IN THE ONLAND NELP-V, BLOCK KG- ONN-2003/1 AT NAGAYALANKA, KRISHNA DISTRICT BY M/S. OIL AND NATURAL GAS CORPORATION LTD. PANEL MEMBERS:

1. Sri B.R.Ambedkar, Chairman, District Revenue Officer and Additional District Magistrate, Krishna Dist.

2. Sri E.Satyanarayana, Rept. of A.P.Pollution Control Environmental Engineer Board, Regional Office, , Krishna Dist., .

Industry Representatives :

1. Sri P.V.Satish Kumar, GM (P), & Project Manager, Nagayalanka, 2. Sri V.R.K.S. Sarma, DGM (Chem.)-HEAD HSE, M/s.Oil and Natural Gas Corporation Ltd.,

At the outset, the Environmental Engineer, APPCB, RO, Vijayawada welcomed the public gathered for the Environmental Public Hearing and briefed about the proposal of M/s. Oil and Natural Gas Corporation Ltd., that they proposed for development drilling of wells (3 nos.) and to establish Early Production System (1 no.) in the onland NELP-V, BLOCK KG-ONN-2003/1 at Nagayalanka (V) & (M), Krishna District. He further informed that as per the Ministry of Environment, Forests & Climate Change, GOI Notification, dated 14.09.2006, for the projects listed in Category-A 1(b) of the Schedule, Environmental Public Hearing is mandatory to be conducted as part of obtaining Environmental Clearance (EC). In accordance with the procedure prescribed for the public hearing in the MoE&F notification dt. 14.09.2006, the AP Pollution Control Board, Vijayawada issued press advertisement in Andhra Jyothi (Telugu) and The Hindu (English) daily news papers on 27.11.2017 about the Environmental Public hearing inviting concerns of the public, comments, views, objections, apprehensions, clarifications and suggestions etc., if any, on the project proposal in writing from the public, bonafied residents, environmental groups and others located near the proposed project area likely to be affected for a minimum

Page 1 of 13 File No.APPC-IND0CR(NGL)/1/2018-EE(PCB)-APPCB(KRSN)

period of 30 days. He further informd that the copies of Draft Environmental Impact Assessment (EIA) report and the Executive Summary in Telugu & English were made available to the Public at the places mentioned in the advertisement. During the period of 30 days from the date of issue of advertisement, the AP Pollution Control Board has received 2 nos. of representations from the following: 1. Sri Vootkuri Sunanda Reddy, Environmentalist, Nalgonda, Telangana State. 2. Dr. K. Babu Rao, Chief Scientist (Retd.), Hyderabad.

He added that the proceeding of the public hearing would be submitted to MoEF &CC, GOI., along with the statement of representations received and the proponent’s response for taking further necessary action. He requested the District Revenue Officer & Additional District Magistrate, Krishna District and Chairman of environmental public hearing panel to conduct the proceedings.

Sri B.R.Ambedkar, District Revenue Officer and Additional District Magistrate, Krishna District while welcoming the public and press stated that the purpose of the public hearing is to obtain the views / suggestions / objections of the public and the officials would note down the public views. The Proceedings and video of the public hearing would be forwarded to MoEF, GoI for further course of action. He requested the people to avail the opportunity and express their views. Then he requested the Proponent of the Project to explain in detail about the project, its environmental impacts and control measures proposed.

Sri P.V.Satish Kumar, GM Production and Project Manager, has welcomed the gathering and informed that ONGC, a public sector unit is striving for self reliance in Oil and Natural Gas Production, by earning foreign exchange. ONGC is committed to allocate 2% of its profits for Socio Economic Development of surrounding villages wherein drilling of wells being carried out by taking of developmental activities under Corporation Social Responsibility (CSR). He informed that our Country requires 194 MT of oil, out of which 18% of oil is produced in and the remaining 82% is imported. Therefore it is necessary to increase the oil production. The total oil production contributed natively is 18% out of which 70% is produced from ONGC. He requested the Head, HSE, KG Basin to explain about the details of proposed project and Environmental aspects and EIA report.

Page 2 of 13 File No.APPC-IND0CR(NGL)/1/2018-EE(PCB)-APPCB(KRSN)

Sri V.R.K.S. Sarma, DGM (Chem.)-HEAD HSE, M/s.Oil and Natural Gas Corporation Ltd., while briefing about the project informed that M/s. Oil and Natural Gas Corporation Limited (ONGC) is India's largest oil and gas exploration and Production Company.

The on-land Block KG-ONN-2003/1 was awarded under NELP Round-V in 2005. Currently, the consortium partners in the Block are ONGC and Cairn India Limited (CIL) with Participating interest of 51% and 49% respectively. ONGC is the Operator during Development and Production Phase w.e.f. 09.07.2014. KG-ONN-2003/1 on- shore block is spread over an area of 55.446 sq. km. The block is located in KG basin falls in Krishna District of Andhra Pradesh.

MoEF&CC has issued Terms of Reference (TOR) vide letter dated Lr. No. J- 11011/410/2014-IA II(I) dated 30th March 2015 for “Development drilling of 31 nos. wells and establishment of 1 no. of Early Production System (EPS)”, but, M/s. ONGC proposed only to drill 3 nos. of development wells and establish 1 no. of EPS at NAG-1Z-ST in KG-ONN-2003/1 block i.e., at Vakkapatlavari palem village , with a total project cost of Rs. 264.0 Crores.

He explained that development drilling is a one-time activity and the operations last very short period of 3 to 4 months under normal conditions for drilling an average depth of 4200 mts. Each location requires 5 to 6 acres of land for drilling. The Early Production System (EPS) is proposed to locate at NAG-1Z-ST in KG-ONN-2003/1 block (Nagayalanka Block). After drilling at three proposed wells, the oil and gas will be treated in EPS. The proposed EPS will be having a handling capacity of 379 cum/day of crude oil and 1.5 lakhs Cu m/day of gas. The water requirement for the project is about 10 m3/day for domestic usages and 15 m3/day for operations which will be supplied through water tankers.

He informed that it is a joint venture of ONGC and Cairn Energy India Ltd. During exploratory stage, the operator is Cairn Energy India Ltd., and during drilling stage ONGC is the operator. During exploratory process at Nagayalanka village, seven wells are identified out of which two wells are found to be mineralized.

Page 3 of 13 File No.APPC-IND0CR(NGL)/1/2018-EE(PCB)-APPCB(KRSN)

He informed that the operations are being carried out under Rajahmundry Assets of ONGC, Rajahmundry. So far Rajahmundry Assets has drilled 637 no.s of wells in East Godavari District, West Godavari District & Krishna District, out of which oil wells are 69, Gas wells are 201 no.s and abandoned wells are 367 no.s.

Environmental study has been carried out within the entire KG-ONN-2003/1 block during pre-monsoon season of the year 2017, for three months period.

Ambient Air Quality (AAQ) is measured in the study area which represents mostly rural/residential environment. Four ambient air quality monitoring stations were selected in and around the proposed well & EPS sites and studies were carried for parameters as per NAAQMS including VOCs. The 24hr average value of ambient air quality in respect of all the parameters is observed to be well within the prescribed

3 CPCB limits in KG Basin. SO2 is observed to be ranged between 7.9 to 17.5 µg/m ,

3 NOX is observed to be between 10.3 to 25.6 µg/m , CO ranged in between 243 to

3 3 316 µg/m , PM2.5 is in the range of 17 to 40.6 µg/m whereas PM10 is in between 35 to 51 µg/m3, Ammonia is observed o be from 4.7 – 11.4 µg/m3, Ozone is in between 3.3 & 9.3 µg/m3), and Benzene is observed to be less than 0.01 µg/m3.

Baseline noise levels were also monitored at proposed locations and are in the range of 43.4 to 51.7 dB(A) in the day time and 39.1 to 42.2 dB(A) in the night time.

The 24hr average value of ambient air and noise quality in respect of all the parameters is observed to be well within the prescribed CPCB limits in KG Basin.

Water Quality was measured through eight ground and one surface water samples and the results indicated that the ground water and surface water quality was found to be within the limits as per IS:10500 except at few locations where tidal influence was existing.

While briefing about the Environmental Management plant, he informed that M/s. ONGC proposed to use bio fuel system, a mixture of diesel and gas as fuel that may reduce the exhaust of sulfur dio oxide emissions into the atmosphere. The Produced waste water generates will be collected in a pit lined with High density Poly ethylene sheets to avoid ground water pollution. The waste water after separation, treated in

Page 4 of 13 File No.APPC-IND0CR(NGL)/1/2018-EE(PCB)-APPCB(KRSN)

mobile Effluent treatment plant of M/s. ONGC. The treated produced water after complying with APPCB waste water discharge standards will be re-injected into the reservoir through injection wells or else will be used for green belt development, if salinity is less. He added that they would use only water based mud while drilling.

Quality of ambient air and noise shall be monitored periodically during and after drilling as per the Norms.

He stated that there are no incidence of any land subsidence in the gas fields or adjoining areas of KG Basin. From geological considerations also this region does not appear to be prone to significant land subsidence. He further informed that ONGC engaged Delta studies institute, Andhra University for study of land subsidence.

He further informed that M/s. ONGC is operating in the KG Basin for more than 25 years and the baseline studies carried/monitoring data collected reflected practically no impact on the environmental quality wherever E&P Operations of M/s. ONGC were carried over these years. As there are no industrial activities in this Nagayalanka area the quality of air and water is within the norms. The drilling activities will have no significant impact on the environmental conditions. Regarding CSR activities he informed that Rajahmundry assets has spent Rs.9.5 crores during the year 2016-17 for CSR.

The District Revenue Officer and Additional District Magistrate, Krishna requested the public to express their concerns, opinion, suggestions, views etc. on the proposed project.

1. Sri Ambati Shyam Prasad, Sarpanch, Vakkapatlavaripalem (V), Nagayalanka (M), Krishna Dist. he raised the following issues :  Earlier Cairn Energy India Ltd., conducted drilling activities in this area and the villagers fully supported for their activities. But, they have not involved any developmental activities in the villages. While drilling the adjacent agricultural lands were damaged, but they have not made any compensation. The waste water was transported through tankers for

Page 5 of 13 File No.APPC-IND0CR(NGL)/1/2018-EE(PCB)-APPCB(KRSN)

disposal, but while transportation lot of spillages were there along the road and causing pollution problems.  The groundwater in this area is saline and they are not laying bore wells.  He pointed out that employment to the local youth were not given by M/s.Cairn Energy Ltd. and doubted ONGC also may not give employment to the local villagers.  Regarding CSR activities he suggested that the amount shall be spent in the surrounding villages for digital education in schools, construction of compound walls, providing of drinking water facilities, construction of toilets to achieve complete ODF villages. Providing nutritious food to children in the Anganvadi centres.  Government should take whole responsibility, if at all, any damage done to the environment by the drilling activities of OGNC.  He expressed his fears about land subsidence and hope that the surrounding agricultural lands would not get affected.

2. Smt. Bavireddy Nagavenkata sreelakshmi, Sarpanch, Nangegedda Grampanchayat:  She expressed that they don’t know the profits and expenditure of the ONGC activities would be taken up here and they don’t know how much amount they would spend in this area under CSR activities. They have not made any transparency about spending of the amount earlier. The Anganvadi centres in Nangeggada village is in dilapidated condition and she requested to adopt the Anganvadi centres in the village. She demanded the following to be taken up under CSR activities.  Unemployed youth in the villages shall be accommodated in the ONGC works in this area.  Supply of RO water for the villagers.  CSR amount shall be spent for the surrounding villages for developmental activities in consultation with Sarpanches.  She has an apprehension that the gas leakages and pollution problems & their ill effects in the surrounding villages as was happened in East Godavari KG basin of ONGC as heard.

Page 6 of 13 File No.APPC-IND0CR(NGL)/1/2018-EE(PCB)-APPCB(KRSN)

 Noise pollution, day and night they faced while drilling was carried out earlier in this area.

3. Sri Bavi Reddy Venkateswarao, MPTC, Nangegedda:  While speaking on the occasion he informed that earlier Cairn Energy India Ltd., carried out drilling activities in this area and the villagers and they faced pollution problems. They burnt the waste water in the pit and occasionally the heat spread to surrounding agricultural lands and causing damage. The ONGC activities shall not cause pollution problems to the surroundings as happened earlier. He further raised the following:  Earlier roads were damaged because of plying of heavy vehicles of M/s. Cairn Energy Ltd. But, those roads were not yet repaired till now.  Earlier incidence of oil spillages in the surrounding agricultural lands due to drilling activity/ effluent transport/ flaring of effluent result in public agitations. This should not be repeated.  Vehicle contract / any mode of employment not given to local youth. Preference shall be given to the locals in employment opportunities.  RO water shall be supplied to the surrounding villages.  Drilling activities shall be carried out with effective noise mitigation measures.  Safety measures shall be followed at the time of flaring of effluent / excess gases.  The Anganvadi centres (2 nos.) in Nangeggada village shall be taken care of with CSR funds.  Equitable distribution of CSR funds to all the affected villages for developmental activities.  Tree plantation along with tree guards shall be taken up in villages.

4. Sri Simhadri Krishna Prasad, Journalist Nagayalanka: He sought the following clarifications:  What is the Quantum of crude and natural gas deposited in the reservoirs of Nagayalanka area and the wealth generated from the above and how much amount would be spent in this area.

Page 7 of 13 File No.APPC-IND0CR(NGL)/1/2018-EE(PCB)-APPCB(KRSN)

 The CSR fund to be spent here is only temporary and sought permanent developmental activities in this area.

5. Sri Sudheer, Nagayalanka:, He welcomed the proposal and express the following:  He expressed his fears about land subsidence of the soil in this area due to ONGC drilling activities. He suggested the experts should come and study in this area and clarify the public.  How the CSR funds of 2% profit would be utilized. He suggested that the amount should be spent through NGOs and Panchayats of the surrounding villages. This area is backward in education and therefore, the facilities shall be made available for Anganvadi centres for which the industry should support. The CSR fund shall be spent keeping in view of long term benefits.  Drilling shall be carried out only after following required measures for environmental protection and greenbelt shall be developed on large scale to protect environment.  To impart skill development training to the locals for self employment.

6. Sri Cheurkuri Venugopal, Guntupalli:  While speaking on the occasion he informed that the ONGC officials stated that the waste water generated from drilling activities would be transported to Rajahmundry for treatment and disposal. He expressed his doubt that this waste water would not reach Rajahmundry for treatment and would be discharged in between on road side and cause pollution problems. He expressed that insurance policy for agriculture is not being implemented in this area. He suggested that the future generation shall not get effected in this area because of ONGC activity.

7. Sri Mandali Uday Bhaskar, Ex Sarpanch, Bhavadevarapalli:  He informed that the economy of this area is agriculture based and for the past 4 to 5 years drilling activity was carried out in this area, but the people in this area are not getting beneficiated. The people in this area are not happy with the activities of the ONGC. He hoped that the proposed ONGC

Page 8 of 13 File No.APPC-IND0CR(NGL)/1/2018-EE(PCB)-APPCB(KRSN)

activity would not have any impact on the agriculture activity in this area. He stated that the CSR activities shall be fulfilled as committed by ONGC. He suggested that to form a developmental committee with village Sarpanches and NGOs for spending CSR fund. RO plants shall be setup in the villages for supply of drinking water.  Revetment of village tank which was damaged due to plying heavy vehicles should be repaired.

8. Sri Sunanda Reddy, Environmentalist, Hyderabad: He welcomed the project for getting EC. He suggested the following:  Supply of drinking water to the villages within 10 km from the sea using CSR funds.  Plantation shall be taken up in the villages and also avenue plantation and maintain for at least 2 to 3 years with support of village committees.  Laying of village roads using CSR funds.  It is suggested to MoEF&CC, GOI that mineral cess of 33% generated from ONGC activities shall be spent in this area through District Collector.  Pollution control systems shall strictly be implemented during drilling operations to meet the standards.  The developmental works based on demand shall be taken up.

9. Sri Avula Basavaiah, Koduru, President Zilla Raytu Sangam  He expressed his doubt that as to whether Koduru village would also get affected. He sought clarification as to how much land is required for drilling wells and how much compensation would be paid.  He demanded that the public hearing shall be conducted again as the villagers in the surrounding villages not known about ONGC activities.

10.Sri Ambati Venakata Ramana, Vakkapatlavaripalem: He raised the following issues:  He asked whether any vehicle contract / catering contract / daily labor / any mode of employment have been given to the local people for the past two years. He demanded employment shall be given to educated youth of

Page 9 of 13 File No.APPC-IND0CR(NGL)/1/2018-EE(PCB)-APPCB(KRSN)

the surrounding villages and also to provide skill development training programmes for them.  ONGC shall provide drinking water facility to the surrounding villages as the ground water is saline in nature.  Due to plying of ONGC vehicles severe traffic problem would be there and roads would be damaged, as these were experienced for the past two years because of the drilling activity. Village roads shall be laid to avoid public inconvenience.  Enquired how far the products / benefits obtained while drilling activity and how far would be useful for the State.  The ONGC shall take full responsibility if any accidents or losses occured due to the drilling activities.

11.Sri Tamma Rattaiah, Koduru:  He informed that while carrying out drilling earlier no compensation was paid for the damages caused. He further informed that no safety precautions / pollution control measures were taken while drilling. He demanded that the ONGC to take all the required precautions / pollution control measures while carrying out drilling.

12.Sri Kollati Srinivasa Rao, :  He expressed his concern that the incidents like Pasarlapudi blowout shall not be repeated in this area and requested the project proponent to take all precautionary / pollution control measures.  He demanded that the profits obtained from the activities of ONGC in this area shall be utilized for development of this area only.  Leakages / spills occurred earlier while drilling in area shall not be recurred. Compensation shall be paid for the damages caused.  ONGC shall be held responsible for land subsidence, if any,.

13.Sri Repalle Jayaprakash, Koduru: He expressed that the public hearing advertisement was given in only two news papers and public announcement on public hearing was made only for two days before the public hearing which is not adequate for knowing the

Page 10 of 13 File No.APPC-IND0CR(NGL)/1/2018-EE(PCB)-APPCB(KRSN)

public in the surrounding villages. He demanded to conduct public hearing again. He enquired about the compensations being paid on what basis. ONGC shall not discharge any waste water on agricultural lands.

14.Sri Talasila Nageswara Rao, Andhra Bhoomi Reporter Journalist, Nagayalanka: He raised the following:  Environmental protection measures shall be taken up while drilling activities.  What action ONGC shall be taken for already environmentally affected villages.  He demanded to conduct public hearing again as public are not properly intimated.

15.Sri Seelam Narayana Rao, :  He informed that the ONGC is carrying out drilling and drawing oil, but the oil and the benefits are enjoying by some other corporate company. He demanded that the benefits shall be reached the public here only because ONGC is a public sector company.  He enquired how much amount of compensation paid to the farmers earlier. What norms they are following for acquisition of land.  Drinking water facility shall be provided to the surrounding villages.  No environmental damage shall be caused to the surroundings by drilling activities of ONGC. Measures shall be taken for control of noise and air pollution.  Development of surrounding villages shall be taken on priority.

16.Sri V.Radhakriahna, Teacher, : He informed that the ground water in this area is having salinity in some parts and sweet water in some parts. He enquired as to whether the drilling activity causes sweet water to become saline as sea is nearby to the drill sites.

The District Revenue Officer and Additional District Magistrate asked the Project Proponent to respond on the issues raised by the public.

Page 11 of 13 File No.APPC-IND0CR(NGL)/1/2018-EE(PCB)-APPCB(KRSN)

Sri P.V.Satish Kumar, GM Production, M/s. ONGC while responding on the issues raised by the public stated as follows:

 CSR funds would be spent for developmental activities as per the request made by Sarpanches of the villages and through registered NGOs. The fund would also be given to Revenue Divisional Officer; MPDO, MRO for spending in the villages.  If the Sarpanch of the Grampanchayat shows the land they would setup RO plant.  For development of schools the Head Master shall make a request letter for their requirements.  Individual toilets under Swach Bharath shall be constructed as per the requirement of the Grama Sarpanch.  Funds shall also be given to the Government Hospitals / Anganvadi centres etc. as per their request letter of Superintendent of Hospital / District Collector.  They would install silent generators for their drilling activities and there would be no noise pollution.  The waste water collection pit of the drill site shall be provided with impervious lining to avoid seepage.  ONGC has not taken up any production activities in this are so far.  He clarified that there would be no land subsidence because of the drilling activities.  Tree plantation / avenue plantation shall be taken up by engaging registered NGOs. Tree guards shall also be provided.  The roads if any damaged because of their activity those would be repaired if the request received from the Sarpanch of the Grampanchayat.  The Anganvadi requirements would be fulfilled.  Preference for employment / contracts would be given to the local eligible people.

The Environmental Engineer clarified that the procedure prescribed for Environmental Public Hearing in EIA Notification dated 14-09-2006 was followed scrupulously.

Page 12 of 13 File No.APPC-IND0CR(NGL)/1/2018-EE(PCB)-APPCB(KRSN)

The District Revenue Officer and Additional District Magistrate, Krishna, While concluding the public hearing summed up the public opinion expressed and informed that the minutes recorded along with the response of the project proponent on the points raised shall be submitted to MOE & CC, GOI for taking a decision.

The Environmental Engineer, AP Pollution Control Board proposed vote of thanks for the Chair.

District Revenue Officer & Additional District Magistrate Environmental Engineer Krishna Dist. APPCB, VJA

Page 13 of 13