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Kandym Gas Field Development Kandym Gas Field Development Environmental Impact Assessment May 18, 2011 Prepared by: LUKOIL Uzbekistan Operating Company 1, A. Khodjaev str., Tashkent 100027, Republic of Uzbekistan Contents 1. Executive Summary ................................................................................................ 1 2. Legal framework ..................................................................................................... 4 2.1 Legislation ............................................................................................................... 4 2.2 Institutional framework .......................................................................................... 10 2.3 PSA Environment Protection Requirements ......................................................... 11 2.4 Requirements to EIA Procedure ........................................................................... 15 2.5 Environmental Standards ...................................................................................... 16 3. Project Description ................................................................................................ 19 4. Description of environmental conditions ............................................................... 36 4.1 Topography and Geology ..................................................................................... 37 4.2 Desertification ....................................................................................................... 38 4.3 Climate .............................................................................................................. 40 4.4 Air Quality ............................................................................................................. 40 4.5 Surface and Ground waters .................................................................................. 46 4.6 Soil and Subsoil .................................................................................................... 53 4.7 Radiation .............................................................................................................. 71 4.8 Flora and Fauna .................................................................................................... 74 4.9 Social situation analysis ........................................................................................ 77 5. Expected Environmental and Social Impacts and Mitigation Measures ................ 82 5.1 Expected Environmental Impacts and Mitigation Measures ................................. 82 5.1.1 Wells construction ................................................................................................. 82 5.1.1.1 Impacts on Air Quality ........................................................................................... 82 5.1.1.2 Impacts on Water Quality ...................................................................................... 84 5.1.1.3 Impacts on Wastes Generation ............................................................................. 85 5.1.2 Development of gas-condensate fields ................................................................. 87 5.1.3 Impacts on Water and Waste Water Quality ......................................................... 92 5.1.4 Construction-period infrastructure ......................................................................... 96 5.1.5 Impact on Desertification ...................................................................................... 98 5.1.6 Potential Impact on Birds ...................................................................................... 98 5.1.7 Potential Noise Impacts ........................................................................................ 99 5.2 Social Impacts and Mitigation Measures ............................................................ 100 5.2.1 Impacts of Land Acquisition ................................................................................ 100 5.2.2 Impacts on Employment and Local Development ............................................... 105 5.3 Cumulative and Induced Impacts ........................................................................ 108 5.4 Impact Summary of Mitigating Measures ............................................................ 109 6. Analysis of alternatives ....................................................................................... 116 6.1 Selection of preferred alternative ........................................................................ 116 6.2 No action alternative ........................................................................................... 117 6.3 Alternative to Kandym GPP ................................................................................ 118 6.4 Selection of Final Alternatives ............................................................................. 118 7. Disclosure, consultations and participation ......................................................... 119 7.1 Project Design and Preparation .......................................................................... 119 7.2 Construction and Operations Phase ................................................................... 122 8. Procedure for addressing grievances ................................................................. 124 Kandym Gas Field Development Environmental Impact Assessment 18 May 2011 9. Environmental Management Plan (EMP) ............................................................ 126 9.1 Health, Safety and Environment Program .......................................................... 127 9.1.1 HSE Policy, Objective & Commitment ................................................................ 128 9.1.2 Structure and responsibility ................................................................................. 129 9.1.3 Preventive Measures Program ........................................................................... 131 9.1.4 Occupational health and safety ........................................................................... 132 9.1.5 Emergency Response Plan ................................................................................ 132 9.1.6 Emergency Response Plan Committee .............................................................. 133 9.2 Environmental Monitoring Program .................................................................... 133 9.2.1 Internal Monitoring .............................................................................................. 133 9.2.2 Documentation and Reporting ............................................................................ 137 9.3 External Monitoring ............................................................................................. 137 9.3.1 ISO 14001 and OHSAS 18001 Management System Audit ............................... 137 9.3.2 State Regulations Required Environmental Inventory ........................................ 138 9.3.3 ADB SPS Monitoring Requirements by External Expert ..................................... 138 9.4 Institutional Arrangements, Implementation methods and efficiency indicators .. 140 9.4.1 Institutional Arrangements .................................................................................. 140 9.4.2 Implementation methods and efficiency indicators ............................................. 140 9.5 EMP budget ........................................................................................................ 141 10. Conclusions and Recommendations .................................................................. 145 10.1 EIA Process ........................................................................................................ 145 10.2 Results ............................................................................................................ 145 Kandym Gas Field Development Environmental Impact Assessment 18 May 2011 List of attachments Attachment No.1. Conclusion of the State Environmental Expertise Committee for EIA of the GPP complex construction and Kandym group of fields development. Attachment No.2. Detailed map of Kandym Group оf Fields. Attachment No.3.1 Observation network layout within the framework of Environmental Audit Section of the Kandym Group of Fields. Attachment No.3.2 Environmental Audit Methodology. Attachment No.4. Handbook of plants and animals in Khauzak-Shady and Kandym Group of Fields (Bukhara region). Attachment No.5. Conclusion of the State Environmental Expertise Committee for “Report on Environmental Audit of the Contract Area consisting of: the Kandym Group of Fields, Khauzak-Shady Site and Kungrad Site”. Attachment No.6. Plan of organizational and engineering actions in Health, Safety and Environment of “LUKOIL Uzbekistan Operating Company” LLC for 2010. Attachment No.7. Action plan of Environmental Protection and Rational Exploitation of Natural Resources of “LUKOIL Uzbekistan Operating Company” LLC for 2010. Attachment No.8. Health, Safety and Environment Program in respect jf Oil and Gas Operations within the Contract Area for projects of Kandym-Khauzak-Shady-Kungrad and Gissar-Ustyurt for 2010-2012. Attachment No.9. Report on Implementation of Action Plan of Environment Protection and Rational Exploitation of Natural Resources for 12 months of 2009 in Bukhara region (Khauzak – Shady section and Kandym group of fields). Attachment No.10. Report on Implementation of Action Plan of Environmental Protection and Rational Exploitation of Natural Resources for 12 months of 2010 in Bukhara region (Khauzak – Shady section and
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