Amended Rocky Hill Coal Project Part 8 Aquatic Ecology Assessment

Development Application No. SSD 5156

Prepared by: Cardno Ecology Lab

June 2016 This page has intentionally been left blank

ABN: 46 114 162 597

Aquatic Ecology Assessment

Prepared for: R.W. Corkery & Co. Pty Limited 1st Floor, 12 Dangar Road PO Box 239 BROOKLYN NSW 2083

Tel: (02) 9985 8511 Email: [email protected]

On behalf of: Gloucester Resources Limited Level 37 Riverside Centre 123 Eagle Street BRISBANE QLD 4000

Tel: (07) 3006 1830 Fax: (07) 3006 1840 Email: [email protected]

Prepared by: Cardno NSW/ACT Pty Ltd Trading as Cardno Ecology Lab Level 9, The Forum 203 Pacific Highway ST LEONARDS NSW 2065

Tel: (02) 9496 7700 Email: [email protected]

June 2016

GLOUCESTER RESOURCES LIMITED SPECIALIST CONSULTANT STUDIES Amended Rocky Hill Coal Project Part 8: Aquatic Ecology Assessment Report No. 806/14

This Copyright is included for the protection of this document

COPYRIGHT

© Cardno NSW/ACT Pty Ltd T/as Cardno Ecology Lab, 2016 and © Gloucester Resources Limited, 2016

All intellectual property and copyright reserved.

Apart from any fair dealing for the purpose of private study, research, criticism or review, as permitted under the Copyright Act, 1968, no part of this report may be reproduced, transmitted, stored in a retrieval system or adapted in any form or by any means (electronic, mechanical, photocopying, recording or otherwise) without written permission. Enquiries should be addressed to Cardno Ecology Lab.

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SPECIALIST CONSULTANT STUDIES GLOUCESTER RESOURCES LIMITED Part 8: Aquatic Ecology Assessment Amended Rocky Hill Coal Project Report No. 806/14

FOREWORD

Since the exhibition of the Environmental Impact Statement for the Rocky Hill Coal Project in 2013, Gloucester Resources Limited has reached an agreement with Yancoal Limited to utilise the existing facilities at the nearby Stratford Mining Complex to process and despatch coal mined from the Rocky Hill Mine Area.

Consequently, Gloucester Resources Limited has amended the Rocky Hill Coal Project to provide for the transportation of sized coal to the Stratford Mining Complex via a private haul road and no longer intends to construct or use the previously proposed Rocky Hill coal handling and preparation plant (CHPP), overland conveyor, rail loop and train load-out facility. In addition, the amended Project would no longer involve the development of the formerly proposed Weismantel Pit.

For the purposes of this report, the 2013 Rocky Hill Coal Project is referred to as the “2013 Project” whilst the amended Rocky Hill Coal Project is referred to as the “amended Project”. It is noted that Appendix 8 presents an overview of the key differences between the aquatic ecology assessment for the 2013 Project and the amended Project.

This report effectively presents an update of the 2013 Aquatic Ecology Assessment in light of these amendments to the Rocky Hill Coal Project.

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GLOUCESTER RESOURCES LIMITED SPECIALIST CONSULTANT STUDIES Amended Rocky Hill Coal Project Part 8: Aquatic Ecology Assessment Report No. 806/14

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SPECIALIST CONSULTANT STUDIES GLOUCESTER RESOURCES LIMITED Part 8: Aquatic Ecology Assessment Amended Rocky Hill Coal Project Report No. 806/14 CONTENTS Page COMMONLY USED ACRONYMS ...... 8-8

EXECUTIVE SUMMARY...... 8-9

1. GENERAL INTRODUCTION ...... 8-13 1.1 BACKGROUND, AIMS AND SCOPE ...... 8-13 1.2 OVERVIEW OF THE AMENDED PROJECT ...... 8-14 1.3 THE SITE AND THE STUDY AREA ...... 8-17

2. RELEVANT LEGISLATION ...... 8-18 2.1 INTRODUCTION ...... 8-18 2.2 COMMONWEALTH LEGISLATION ...... 8-18 2.3 STATE LEGISLATION ...... 8-18 2.4 LOCAL ENVIRONMENTAL PLANS ...... 8-21

3. GOVERNMENT REQUIREMENTS AND MATTERS FOR THE AMENDED PROJECT ...... 8-22

4. DESCRIPTION OF THE AQUATIC ENVIRONMENT ...... 8-24 4.1 REVIEW OF EXISTING INFORMATION ...... 8-24 4.1.1 Physical Setting, Land Use and Climate ...... 8-24 4.1.2 Surface Waters ...... 8-25 4.1.3 Groundwater Systems ...... 8-26 4.1.4 Aquatic Habitats and Biota ...... 8-27 4.1.5 Stygofauna ...... 8-28 4.2 FIELD STUDIES ...... 8-31 4.2.1 Field and Laboratory Methods ...... 8-31 4.2.2 Laboratory Methods ...... 8-36 4.2.3 Data Analysis ...... 8-36 4.2.4 Results –Surface Waters ...... 8-38 4.2.5 Results - Stygofauna ...... 8-58

5. THREATENED SPECIES ISSUES FOR AQUATIC ECOSYSTEMS ...... 8-64 5.1 METHODS...... 8-64 5.2 RESULTS ...... 8-64 5.2.1 Listings under the EPBC Act ...... 8-65 5.2.2 Threatened Species Conservation Act 1995 (TSC Act) ...... 8-66 5.2.3 Fisheries Management Act 1994 (FM Act) ...... 8-67

6. ASSESSMENT OF IMPACTS ...... 8-69 6.1 SUMMARY OF ASPECTS OF THE AMENDED PROJECT RELATING TO AQUATIC ECOLOGY ...... 8-69 6.1.1 Key Mine Components Relevant to Aquatic Ecology ...... 8-69 6.1.2 Water Management ...... 8-71 6.2 IMPACTS ON AQUATIC ECOSYSTEMS ...... 8-75 6.2.1 Surface Water Ecosystems ...... 8-75 6.2.2 Stygofauna ...... 8-78

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GLOUCESTER RESOURCES LIMITED SPECIALIST CONSULTANT STUDIES Amended Rocky Hill Coal Project Part 8: Aquatic Ecology Assessment Report No. 806/14 CONTENTS Page 6.3 CUMULATIVE IMPACT ASSESSMENT ...... 8-78 6.4 CONSIDERATION OF MITIGATION MEASURES ...... 8-80

7. ENVIRONMENTAL MANAGEMENT AND MONITORING ...... 8-81

8. ACKNOWLEDGEMENTS ...... 8-82

9. REFERENCES ...... 8-83

APPENDICES Appendix 1 Key to Study Site Labels used for the Original Site Inspection (19-20 October 2010) and the Subsequent Field Assessments (15-19 November 2010; 1-2 February 2016) of the Study Area ...... 8-89 Appendix 2 River Descriptors, Categories and Values used in the Modified Riparian, Channel and Environmental Inventory ...... 8-93 Appendix 3 Fish Habitat Classification for Watercourses ...... 8-97 Appendix 4 Water Quality Measurements taken in situ at 19 Sites within the Study Area in 2010 and at 5 sites in 2016 ...... 8-101 Appendix 5 Macroinvertebrate Assemblage Data for Pool Edge Habitat Sampled at 12 Sites in the Study Area ...... 8-105 Appendix 6 Macroinvertebrate Assemblage Data for Rifle Habitat Sampled at 2 Sites in the Study Area ...... 8-109 Appendix 7 Abundance of Freshwater Fish and Macroinvertebrates Captured by Electrofishing within the Study Area (November 2010) ...... 8-113 Appendix 8 Key Differences between the Aquatic Ecology Assessment for the 2013 Project and Amended Project ...... 8-117

FIGURES Figure 1 Location of the Study Area, the Mine Area and Aquatic Ecology Survey Sites for surface waters ...... 8-15 Figure 2 Boreholes sampled for Stygofauna in April/May 2011 ...... 8-16 Figure 3 Location of the Mine Area within the Catchment ...... 8-25 Figure 4: Characteristics of water flow at Gauge 208028 on Avon River at the times or sampling in a) 2010 and b) 2016 ...... 8-39 Figure 5 Mean (± 1SE) per groundwater borehole for pH (pH units) and Electrical Conductivity ...... 8-61 Figure 6 Proposed Layout of Mine Area (Source: RW Corkery & Co Pty Limited) ...... 8-68

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SPECIALIST CONSULTANT STUDIES GLOUCESTER RESOURCES LIMITED Part 8: Aquatic Ecology Assessment Amended Rocky Hill Coal Project Report No. 806/14 CONTENTS Page TABLES Table 1 Coverage of DGRs and Additional Matters ...... 8-22 Table 2 Species of freshwater fish that may occur, or suitable habitat may occur, within the region of the Study Area, indicated by a tick ...... 8-28 Table 3 Published preferred conditions for stygofauna presence and comparison with groundwater characteristics of the Mine Area ...... 8-30 Table 4 GPS coordinates, Riparian Channel and Environmental Inventory (RCE) scores and fish habitat classification within the Study Area ...... 8-31 Table 5 Date and type of sampling undertaken at surface waters within the Study Area ...... 8-32 Table 6 Features of boreholes sampled for Stygofauna at the Mine Area...... 8-35 Table 7 Comparison of in situ water quality measurements with ANZECC (2000) threshold limits for lowland watercourses in south-east Australia ...... 8-43 Table 8 Percentage cover of macrophytes recorded within the channel “wetted width” at each site in 2010 ...... 8-45 Table 9 AusRivAs scores for macroinvertebrates from edge and rifle habitat in November, 2010 ...... 8-46 Table 10 Summary of aquifer depth, water volume sampled and invertebrates collected ...... 8-59 Table 11 Invertebrates collected from boreholes ...... 8-60 Table 12 Relevant threatened and protected aquatic species which may occur, or suitable habitat may occur, within the vicinity of the Study Area ...... 8-65

PLATES Plate 1 Avon River, November 2012 ...... 8-40 Plate 2 Confluence of Avon River and Oaky Creek, October 2010 ...... 8-41 Plate 3 Macrophytes recorded in the Study Area ...... 8-47 Plate 4 The culvert at Wenham Cox Road crossing of Avon River ...... 8-48 Plate 5 Habitats in Waukivory Creek, November 2010 ...... 8-49 Plate 6 Damselfly (suborder Zygoptera) emerging from its aquatic larval stage...... 8-50 Plate 7 Site 15, view downstream, Mograni Creek ...... 8-54 Plate 8 Unnamed ephemeral watercourses within the Mine Area, October 2010 ...... 8-56 Plate 9 Pond at south western end of the Mine Area (October 2010) ...... 8-57 Plate 10 Bore water from the Mine Area being pumped over a 63 µm sieve to retain potential stygofauna ...... 8-62

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GLOUCESTER RESOURCES LIMITED SPECIALIST CONSULTANT STUDIES Amended Rocky Hill Coal Project Part 8: Aquatic Ecology Assessment Report No. 806/14

COMMONLY USED ACRONYMS

AGL AGL Upstream Infrastructure Investments Pty ltd AIP Aquifer Interference Policy CEL Cardno Ecology Lab CHPP Coal Handling and Preparation Plant CMA Catchment Management Authority DECCW Department of Environment, Climate Change and Water DGRs Director-General’s Requirements DP&I Department of Planning and Infrastructure DPI Department of Primary Industries EC Electrical conductivity EEC Endangered ecological community EIS Environmental Impact Statement EP&A Act Environmental Planning and Assessment Act 1979 EPA Environment Protection Authority EPBC Act Environment Protection and Biodiversity Conservation Act 1999 FM Act Fisheries Management Act 1994 GRL Gloucester Resources Limited LGA Local Government Area NES National Environmental Significance NPWS NSW National Parks and Wildlife Service RAM Rapid Assessment Method RWC R. W. Corkery & Co Pty Limited DSEWPaC Department of Sustainability, Environment, Water, Population and Communities TSC Act Threatened Species Conservation Act 1995

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SPECIALIST CONSULTANT STUDIES GLOUCESTER RESOURCES LIMITED Part 8: Aquatic Ecology Assessment Amended Rocky Hill Coal Project Report No. 806/14

EXECUTIVE SUMMARY

Background and Aims The aims of the aquatic ecology investigations were to describe the existing aquatic habitats, water quality and aquatic flora and fauna of the Study Area, identify constraints and opportunities in relation to aquatic ecology and assess potential impacts (and mitigation measures) relating to the amended Project. Additionally, a survey of stygofauna (invertebrates) that may be living within groundwater systems beneath the Mine Area was undertaken. A report was prepared on behalf of GRL in 2012. This report has been revised to reflect the amended Project, as provided to CEL by RWC

Description of the Existing Environment Two permanent watercourses, Waukivory Creek and the Avon River flow generally west of the Mine Area in a northerly direction. These watercourses merge adjacent to the Mine Area, then flow into the Gloucester and Manning Rivers. A third watercourse, Oaky Creek, flows in a westerly direction and is aligned roughly parallel to the northern boundary of the Mine Area; it joins the Avon River downstream of the confluence of the Avon River with Waukivory Creek. These watercourses merge adjacent to the Mine Area, then flow into the Gloucester and Manning Rivers. A fourth watercourse, Dog Trap Creek, flows northwest into the Avon River, with its confluence to the southwest of the Mine Area, but is not within or adjacent to the Mine Area. Potential issues related to Dog Trap Creek are dealt with in a separate report. Field work undertaken for surface waters as part of the 2013 Project was done in 2010 and 2011 and focused primarily on Waukivory Creek, the Avon River and Oaky Creek. Fieldwork for the amended Project was done in February 2016 and focused on Waukivory Creek and the Avon River. The amended Project would not physically disturb Avon River or Oaky Creek, but a private haul road would cross Waukivory Creek. No major obstructions to flow or fish passage are known to occur between the Mine Area and the Pacific Ocean, and as such the Study Area has a fish assemblage that includes species that migrate between the ocean and upper reaches of the catchment. The Avon River base flow tends to persist over long periods due to moderate average rainfall and groundwater inflows largely from adjacent alluvial groundwater systems. Surface water in the vicinity of the Mine Area has moderate to high electrical conductivity (EC) which reflects naturally high salinity in soils and groundwater and the diffuse anthropogenic effects of agriculture. Field measurements of EC indicated some variability among watercourses, with the Avon River having a higher EC value than Waukivory Creek and hence a “signature” upstream and downstream of its confluence with Waukivory Creek. Notwithstanding this, EC in all watercourses exceeded water quality guidelines for the protection of aquatic ecosystems.

Riparian and instream habitats have been substantially altered by historical and ongoing agricultural land use practices. Aquatic plant assemblages showed little diversity, comprising introduced and native species tolerant to disturbance. Macroinvertebrate communities were similarly impaired and dominated by pollution-tolerant taxa, which is indicative of local habitat degradation and poor water quality. Most of the sites visited along the Avon River, Waukivory Creek or Oaky Creek had evidence of habitat impairment, including adjacent land cleared for agriculture and erosion caused by stock access and several waterway crossings. Fish habitat within the Study Area was generally of low to moderate ecological value. Nine fish species were observed, including long-fin eels, gudgeons and mosquito fish; although as many as 25 species may be present within the Study Area.

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GLOUCESTER RESOURCES LIMITED SPECIALIST CONSULTANT STUDIES Amended Rocky Hill Coal Project Part 8: Aquatic Ecology Assessment Report No. 806/14

Several small, unnamed watercourses flow intermittently from a ridgeline to the east of and into and across the Mine Area, and then into Waukivory Creek or the Avon River. During the site inspections, these watercourses had surface water on either side of road culverts, but they may be expected to become dry (at least on the surface) during drought periods. These watercourses were extremely degraded.

Database and literature searches for threatened species indicated that no threatened species of fish or aquatic macroinvertebrates are likely to occur in the Study Area. These searches indicated that one threatened macrophyte (aquatic plant), tall knotweed, may either occur in the vicinity of the Study Area or there may be suitable habitat present. However, the species is not considered likely to inhabit the Study Area as it was not observed during targeted field searches of the Study Area and the nearest records are 85km to the south in a different catchment. As such, tall knotweed is not a constraint to the amended Project.

Groundwater systems have been identified beneath the Mine Area in relation to alluvium, coal seams and the regolith or colluvial soils, and these have the potential to be affected by the amended Project. As part of the investigations, groundwater in existing boreholes was sampled to identify the presence of stygofauna that may occur within the groundwater systems.

Stygofauna comprise highly specialised aquatic macroinvertebrates and (rarely) some fish that are adapted to living in groundwater habitats. They may exhibit high levels of endemism (i.e. species restricted to particular localities) and they may function in breakdown of organic material and assist in the transfer of water by burrowing. They have been studied intensively in relation to mining assessments in Western Australia (e.g. Pilbara region) and more recently in Queensland and . Previous studies have indicated stygofauna in alluvial groundwater systems tend to be present in greater diversity and abundance than in coal seam groundwater systems. The frequently high EC of waters in the latter has been suggested as a cause of these depauperate assemblages of stygofauna. As a rough guide, deep groundwater systems and groundwater with EC values exceeding 3000 µS/cm are thought to be generally unsuitable for stygofauna.

Stygofauna were sampled within boreholes drilled for sampling geological strata and groundwater chemistry within the Mine Area. In total, 36 samples were collected from groundwater within the three types of groundwater systems on three occasions from April to May 2011. Stygofauna were sampled by pumping water from boreholes through a fine mesh and examining under microscope the material retained on the mesh.

At the times of sampling, groundwater samples from all groundwater systems had high EC, ranging from 1240 µS/cm to 7690 µS/cm. There was large variability among boreholes and within the three types of groundwater, but variability through time was generally small. With the exception of one sample, all the coal seam samples had EC values > 3000 µS/cm and in some samples EC values exceeded 6000 µS/cm. In total, 432 invertebrates were collected from nine taxa. Four individuals were collected from the coal seam groundwater, representing < 1% of total abundance. All the taxa collected were either terrestrial or soil/water dwelling taxa that are not obligate stygofauna. Three groups, Acarina (mites), Nematoda (roundworms) and Oligochaeta (segmented worms) are common in soil and groundwater and may be derived from either. Two mite taxa were eyeless and without pigment, both of which are common traits of groundwater fauna but are also present in soils. Crustaceans such as Copepoda, Amphipoda and Syncarida, taxa considered to be obligate groundwater taxa, were not found in any of the samples.

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SPECIALIST CONSULTANT STUDIES GLOUCESTER RESOURCES LIMITED Part 8: Aquatic Ecology Assessment Amended Rocky Hill Coal Project Report No. 806/14

The survey of stygofauna indicates that the fauna sampled within the boreholes would not have significant environmental implications for the amended Project. Notwithstanding this, there are other environmental issues associated with the management of groundwater that require careful assessment and management (e.g. interactions between groundwater and surface water and implications for the ecology of surface waters) and these are considered in other reports for the amended Project.

Assessment of Impacts The amended Project incorporates features designed to remove or minimise environmental impacts to nearby watercourses including Waukivory Creek, the Avon River and Oaky Creek. One key feature is the development of a water management system for the Mine Area, which separates saline water, sediment-laden water and clean surface runoff with different levels of treatment for each component. Saline water, with elevated EC values and potential for elevated concentrations of metals, would be collected and used on-site. It is envisaged that water would not need to be drawn from the Avon River during the operational stages of the amended Project, however if there were such a need, off takes would not exceed the nominated quantities on the approved extraction licences. Sediment-laden water would be stored in dams on site to allow sediment to settle prior to release. Surface runoff from the slopes to the east of the Mine Area would be diverted around the Mine Area to Oaky Creek and Waukivory Creek via diversion channels. Upon completion of mining, the channels would be decommissioned and pre-mining flows re-established. No open cut pit voids would be retained post-mining, with the landform being returned to agriculture, and with watercourses re-established with several farm dams to supply water for stock.

Computer modelling by other specialist consultants predicts that there would be minimal change in groundwater or surface water inputs into adjacent watercourses and minimal change to flooding characteristics (i.e. levels and flow). Some physical changes to existing watercourses are predicted to occur in three areas. First, potential disturbance could occur at the crossings of Waukivory Creek and the Avon River by a proposed overland coal conveyor. This conveyor has been designed so that there would be no in-stream structures (e.g. footings) and so that it would be elevated above most flood levels likely to occur within the watercourses or their floodplains.

Second, the existing road bridge over the Avon River at Jacks Road would be replaced. This would be constructed ensuring minimal loss of native riparian vegetation and the structure designed to ensure no loss of connectivity and hence fish passage, upstream into Waukivory Creek and the Avon River.

Third, the flow of water into Oaky Creek from the north-flowing diversion channel may lead to some erosion of the creek bank at several “pinch points” because more water would be flowing into this creek during periods of high flow. If this occurs, erosion may occur in the short section of Oaky Creek between McKinleys Lane and the confluence with the Avon River. Despite this section having limited ecological value, it is recommended that the geomorphology and ecology of this creek be monitored before, during and, if necessary, after the diversion channel becomes operational.

The amended Project is most unlikely to affect any threatened aquatic species, or significantly exacerbate any key threatening processes. Moreover, the amended Project is unlikely to affect aquatic biodiversity (e.g. occurrence and abundance of aquatic flora and fauna) or ecological processes such as fish passage.

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GLOUCESTER RESOURCES LIMITED SPECIALIST CONSULTANT STUDIES Amended Rocky Hill Coal Project Part 8: Aquatic Ecology Assessment Report No. 806/14

Environmental Management and Monitoring The design of the amended Project indicates that impacts to aquatic ecosystems can generally be managed by careful development and implementation of water management planning and the design of the amended Project. A precautionary approach, however, warrants that monitoring of surface waters be undertaken well before, then during and if necessary after the operation of the amended Project. It is recommended that a monitoring program be developed for the Avon River, Waukivory Creek, Oaky Creek and suitable reference creeks within the vicinity of the Mine Area. The major components include geomorphology and flow, water quality and quantitative and semi-quantitative sampling of aquatic biota.

Given that stygofauna are not sufficiently abundant beneath the Mine Area, it is not recommended that a monitoring program be developed for these organisms.

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SPECIALIST CONSULTANT STUDIES GLOUCESTER RESOURCES LIMITED Part 8: Aquatic Ecology Assessment Amended Rocky Hill Coal Project Report No. 806/14 1. GENERAL INTRODUCTION

1.1 BACKGROUND, AIMS AND SCOPE

In August 2013, Gloucester Resources Limited (“GRL” or “the Applicant”) submitted a Development Application (No. SSD 5156) for the Rocky Hill Coal Project (the 2013 Project) which was supported by an Environmental Impact Statement (EIS) prepared by R.W. Corkery & Co. Pty Limited on behalf of GRL. The 2013 Project comprised the development of an open- cut coal mine to produce up to 2.5 million tonnes per annum (Mtpa) of run-of-mine (ROM) coal, a coal handling and preparation plant (CHPP), an overland conveyor and a rail load-out facility. The 2013 Project also anticipated up to 1.75Mtpa of product coal would be transported by rail to the for export. The Site for the Project is situated 3.5km to 7.0km southeast of the Gloucester urban area within the former Gloucester Local Government Area, in New South Wales.

In June 2015, GRL submitted a request that the NSW Department of Planning and Environment (DPE) place the determination of its development application on hold as it was in negotiations regarding a potential commercial arrangement with the owner of the Stratford Mining Complex, namely, Yancoal Australia Limited (Yancoal). In December 2015, GRL and Yancoal formally advised DPE that a commercial agreement had been reached between the two companies whereby sized ROM coal would be transported from the Rocky Hill Mine Area to the Stratford Mining Complex via a private haul road and processed in the Stratford CHPP before being loaded onto rail for transportation to the Port of Newcastle. Hence the amended Project will no longer require its own CHPP, overland conveyor, rail loop or train loader.

This document has been prepared as a stand-alone document to accompany the Environmental Impact Statement (EIS) for the amended Project. It draws upon existing information on threatened aquatic species and the ecology of aquatic ecosystems; specific field surveys commissioned by RWC that were undertaken by CEL; and other specialist inputs, including the description of the amended Project prepared by RWC in the EIS for the amended Project and studies on surface water (WRM, 2016) and groundwater (AGE, 2016).

The aims of the aquatic ecology investigations were to describe the existing aquatic habitats, water quality and aquatic flora and fauna of the Study Area specific to the amended Project and assess potential impacts (and mitigation measures) relating to the amended Project. The broad scope of works for the amended Project included the following tasks. 1. Review available literature on the aquatic ecology of the Study Area. 2. Undertake a desktop review of threatened species issues for aquatic ecology (including State and Commonwealth legislation). The search included aquatic plants, aquatic invertebrates and fish. This report does not include consideration of frogs, aquatic reptiles, birds and aquatic mammals. These taxa are considered by other specialists engaged on the amended Project (Biosis, 2016).

Provide advice on legal requirements (including referrals and permits) arising from the presence of matters of conservation significance and relevant recovery and/or threat abatement plans. 1. Compile an inventory of observed and expected aquatic species and habitats within the Study Area. 2. Assess the condition of aquatic ecology habitats within the Study Area.

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GLOUCESTER RESOURCES LIMITED SPECIALIST CONSULTANT STUDIES Amended Rocky Hill Coal Project Part 8: Aquatic Ecology Assessment Report No. 806/14

3. Describe the local and regional extent of aquatic species within the Study Area. 4. Describe the conservation status of all threatened species likely to occur, or whose habitat may occur, within the Study Area. 5. Assess the likely impacts of the amended Project on aquatic habitats, flora and fauna and recommendations for avoiding or mitigating such impacts. 6. Make recommendations for environmental management of the amended Project, including any monitoring, environmental offsets, post-operation rehabilitation and reporting that may be warranted for the long term management of the amended Rocky Hill Coal Project, subject to its approval.

As part of the aquatic ecological investigations for the amended Project, groundwater in existing boreholes within the Mine Area (Figure 2) was sampled to identify the presence of macroinvertebrates that may occur within the groundwater systems (known as stygofauna). The study of stygofauna was done collaboratively between CEL (study design, project management and reporting), Carbon Based Environmental Pty Limited (collection and delivery of samples) and Macquarie University (sorting and identification of stygofauna; assistance with interpretation of data).

1.2 OVERVIEW OF THE AMENDED PROJECT

The proposed amended Rocky Hill Coal Project comprises three principal components (see Section 6). 1. the “Mine Area” incorporating three contiguous open cut pits, a run-of-mine (ROM) pad with a breaker station and sized coal bin, amenity barriers, overburden emplacements and an administration area with site offices and amenities, workshop, water treatment plant and ancillary facilities. 2. The “private haul road” , i.e. a 4.4km sealed road to be used for the transportation of sized coal from the Rocky Hill Mine Area to the Stratford Mining Complex for washing and despatch to the Port of Newcastle. The private haul road extends from the southern boundary of the Rocky Hill Mine Area to the northern boundary of the Stratford Mining Complex, owned by Stratford Coal Pty Limited. 3. Two “power line corridors” incorporating a re-located 132kV power line and a new low voltage (11kV or as nominated by Essential Energy) power line external to the Rocky Hill Mine Area.

Each of these components is located in an area referred to as “the Site”.

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SPECIALIST CONSULTANT STUDIES GLOUCESTER RESOURCES LIMITED Part 8: Aquatic Ecology Assessment Amended Rocky Hill Coal Project Report No. 806/14

Figure 1 Location of the Study Area, the Mine Area and Aquatic Ecology Survey Sites for surface waters

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GLOUCESTER RESOURCES LIMITED SPECIALIST CONSULTANT STUDIES Amended Rocky Hill Coal Project Part 8: Aquatic Ecology Assessment Report No. 806/14

Figure 2 Boreholes sampled for Stygofauna in April/May 2011

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SPECIALIST CONSULTANT STUDIES GLOUCESTER RESOURCES LIMITED Part 8: Aquatic Ecology Assessment Amended Rocky Hill Coal Project Report No. 806/14 1.3 THE SITE AND THE STUDY AREA

The area in which the amended Project comprises the following:  The Mine Area;  The private haul road; and  The power line corridors.

The Study Area includes the general setting in which the amended Project would occur. The defined Study Area which covers an area of approximately 90km2 includes the following aquatic habitats associated with surface waters (Figure 1).  A reach of the Avon River upstream of its confluence with the .  A reach of Waukivory Creek upstream of its confluence with the Avon River.  A reach of Mograni Creek upstream of its confluence with the Avon River.  A reach of Oaky Creek upstream of its confluence with the Avon River.  A reach of the Gloucester River immediately upstream and downstream of its confluence with the Avon River.  Several small, un-named watercourses that direct runoff westwards across the Mine Area from the Mograni Range to the east.

Under the amended Project, there is provision for a private haul road to transport coal from the Mine Area to the Stratford Mining Complex. The haul road would cross Waukivory Creek and extend roughly southwards to the Stratford Mining Complex. It would cross another creek, Dog Trap Creek: this watercourse is outside the area covered by GRL’s application and is addressed within the modification application by Stratford Coal Pty Limited.

In addition to surface waters, three distinct groundwater systems relevant to aquatic ecology have been identified within and in the vicinity of the Mine Area, namely: i) Permian coal seams and interburden; ii) shallow weathered bedrock with associated colluvial deposits; and iii) shallow alluvium associated with the floodplains of Waukivory Creek and the Avon River.

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GLOUCESTER RESOURCES LIMITED SPECIALIST CONSULTANT STUDIES Amended Rocky Hill Coal Project Part 8: Aquatic Ecology Assessment Report No. 806/14 2. RELEVANT LEGISLATION

2.1 INTRODUCTION

There are legislative instruments that are applicable to the aquatic ecology of surface water and groundwater at the Commonwealth, State and/or Local levels. There are also specific issues that have been identified as part of the consultation process for the amended Project. These are described in the following subsections. More specifically, there are instruments related to threatened species, populations and communities and to key threatening processes. These are also outlined in the followed subsections and considered in detail in Section 5.

2.2 COMMONWEALTH LEGISLATION

Environment Protection and Biodiversity Conservation Act 1999 The Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) requires approval of the Commonwealth Minister for the Department of the Environment (previously the Department of Sustainability, Environment, Water, Population and Communities) for actions that may have a significant impact on matters of National Environmental Significance (NES). Matters of NES relevant to a proposal include threatened species listed under the EPBC Act. There are no World Heritage Areas, National Heritage Places, Ramsar wetlands or Commonwealth marine areas in the Study Area and the amended Project does not involve a nuclear action.

Any proposed action that is expected to have a significant impact on matters of NES must be referred to the Commonwealth Minister for the Environment for assessment under the EPBC Act, or assessed under the bilateral agreement between the Commonwealth and the State in which development is proposed (i.e. NSW).

A Referral under the EPBC Act was submitted to the Department of the Environment on 5 April 2012 and it was determined on 11 May 2012 that the proposed Rocky Hill Coal Project was not a controlled action under the EPBC Act.

2.3 STATE LEGISLATION

Environmental Planning and Assessment Act 1979 The Environmental Planning and Assessment Act 1979 (EP&A Act) institutes a system of environmental planning and assessment in NSW and is administered by the NSW Department of Planning and Environment. Part 4 (Division 4.1) of the EP&A Act sets out the approvals process for State significant development and infrastructure. GRL is applying for development consent as a State significant development for which the Minister for Planning and Environment or the Planning Assessment Commission (as a delegate of the Minister) would be the consent authority for the development application.

Section 5A (s.5A) of the EP&A Act lists seven factors that must be taken into account in an Assessment of Significance to assess potential impacts of a proposed development on threatened species, populations or ecological communities (or their habitats) listed under the Fisheries Management Act 1994 (FM Act) or Threatened Species Conservation Act 1995 (TSC Act). The Assessment of Significance determines whether a proposed development is likely to impose a significant effect on threatened biota.

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SPECIALIST CONSULTANT STUDIES GLOUCESTER RESOURCES LIMITED Part 8: Aquatic Ecology Assessment Amended Rocky Hill Coal Project Report No. 806/14

There is no requirement for the consent authority to consider s.5A of the EP&A Act when determining a development application under Part 4 (Division 4.1) of the Act. However, the assessment criteria established under Assessments of Significance, pursuant to s.5A of the EP&A, will be used to determine the likelihood that the amended Project would have a significant impact on threatened species, populations and communities.

Fisheries Management Act 1994 The Fisheries and Management Act 1994 (FM Act) and its Regulations are administered by the Department of Primary Industries (Fisheries) (denoted NSW Fisheries hereafter) and are relevant to aquatic habitat and biota that have the potential to be affected by the amended Project. The FM Act lists endangered and vulnerable species, populations and ecological communities under Schedules 4, 4A and 5. Schedule 6 of the FM Act lists Key Threatening Processes for species, populations and ecological communities in NSW waters. This document considers potential impacts to all species, populations and ecological communities listed on the FM Act that are known or considered likely to occur within the Study Area as a result of the investigations undertaken for the amended Project.

The classification of watercourses and watercourses surveyed in the Study Area was undertaken according to criteria developed by NSW Fisheries (Smith and Pollard 1999, Fairfull and Witheridge 2003, Fairfull 2013). Any crossing of a watercourse or drainage line should be designed and constructed to comply with these guidelines and policies.

Section 1.2 of NSW Policy and Guidelines: Aquatic Habitat Management and Fish Conservation (Smith and Pollard 1999, Fairfull 2013) requires environmental compensation (creation of new habitat of the type lost) on a 2:1 basis where a significant environmental impact is unavoidable.

Other relevant sections of FM Act include:  Section 37 – a permit is required to harm more fish or invertebrates than is currently allowed by restrictions on daily limits;  Section 201 – a permit is required for any dredging or reclamation works; and  Section 219 – a permit is required for any obstructions to fish passage.

Threatened Species Conservation Act 1995 The Threatened Species Conservation Act 1995 (TSC Act) lists threatened species, populations and ecological communities under Schedules 1 and 2 of the Act, that are priorities for conservation within NSW. Schedule 3 of the TSC Act lists Key Threatening Processes for species, populations and ecological communities within NSW. The environmental assessment considers potential impacts to aquatic plant species and populations listed on the TSC Act that are known or likely to occur within the Study Area.

Management of Groundwater under the Water Management Act 2000 and Water Act 1912 In New South Wales, groundwater has been regulated at least since 1912 (Water Act 1912) and more recently under the Water Management Act 2000 and, while there has been a major recognition of the importance of groundwater in NSW, there has been far less legislative consideration of stygofauna as part of the groundwater ecosystem. In September 2012, the

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GLOUCESTER RESOURCES LIMITED SPECIALIST CONSULTANT STUDIES Amended Rocky Hill Coal Project Part 8: Aquatic Ecology Assessment Report No. 806/14

NSW Government introduced the NSW Aquifer Interference Policy (AIP) (NOW 2012a) which places a significant emphasis on potential impacts to groundwater associated with the coal and coal seam gas industries. The AIP requires that all water “taken” by aquifer interference activities, regardless of its quality, needs to be accounted for within the limits set by the policy and its related legislation.

A water licence is required under the Water Management Act 2000 for groundwater covered by a water sharing plan unless an exemption applies, or water is being taken under a basic landholder right. The Water Sharing Plan for the Lower North Coast Unregulated and Alluvial Water Sources (see below) requires the inflow from the alluvial groundwater system to the open cut pits to be covered by a water access licence. The Permian groundwater in the Mine Area is currently licensed under the Water Act 1912 but is included in the draft Water Sharing Plan for the North Coast Fractured and Porous Rock Groundwater Sources. This water sharing plan is scheduled to commence in late 2016.

The background document for the Water Sharing Plan for the Lower North Coast Unregulated and Alluvial Water Sources (NSW DWE 2009) noted that no wetlands or endangered ecological communities (EECs) considered to be highly dependent on groundwater (GDEs) had been identified on alluvial floodplains in the Lower North Coast Catchments at the time of that report, but there were a number of potentially groundwater dependent wetlands and EECs that would be investigated during the term of the Water Sharing Plan. Subsequent searches examined the National Atlas of Groundwater Dependent Ecosystems (BOM Webpage: search date 6 June 2016) and the water-dependent asset register for the Gloucester subregion (McVicar, et al. 2015). GDEs were not identified as occurring within the Mine Area.

Under the AIP, aquifer interference could include any of the following (NOW 2012a).  Penetration of an aquifer.  The interference with water in an aquifer.  Obstruction of the flow of water in an aquifer.  Taking of water from an aquifer in the course of carrying out mining, or any other activity prescribed by the regulations.  Disposal of water taken from an aquifer in the course of carrying out mining, or any other activity prescribed by the regulations.

The Water Sharing Plans (surface and groundwater issues) The NSW Department of Primary Industries Water has designated water catchments within NSW into various water management areas. The Avon River occurs within Lower North Coast Water Management Area which also includes the entire catchment for the Manning River and those for the Karuah and Myall rivers. The water sharing plan for this area commenced on 1 August 2009. A Report card for the Avon River water source (August 2009) identifies management rules for surface and ground water, including access and trading rules. Key factors for management included the following attributes:  Relative instream value – rated as Low – identified the presence of one threatened bird species, four threatened amphibian species and the presence of platypus.

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SPECIALIST CONSULTANT STUDIES GLOUCESTER RESOURCES LIMITED Part 8: Aquatic Ecology Assessment Amended Rocky Hill Coal Project Report No. 806/14

 Hydrological stress – rated as High – peak extraction demand exceeds available flows in December.  Relative economic significant of irrigation (within catchment – rated as Medium – medium economic dependence of the local community on water extracted for irrigation.  Risk to instream value (from water extraction) – rated as Medium – instream values were assessed as at medium risk of being impacted by extractions from the water source.

The Avon River report card also noted that alluvial aquifers in the water source are highly connected to their adjoining streams and alluvial abstraction can have an impact on the river. From Year 6 of the water sharing plan, (i.e. from 1 August 2015) access rules will apply to aquifer access licences from the alluvial within 40m of an unregulated river (i.e. including the Avon River).

2.4 LOCAL ENVIRONMENTAL PLANS

Gloucester Local Environment Plan 2010 Land within Mine Area is zoned RU1 (Primary Production), E3 (Environmental Management) and SP-2 (Infrastructure) under the Gloucester Local Environmental Plan 2010. The planning objectives for the RU1 and E3 zones are as follow.

Zone RU1  To encourage sustainable primary industry production by maintaining and enhancing the natural resources base.  To encourage diversity in primary industry enterprises and systems appropriate for the area.  To minimise the fragmentation and alienation of resource lands.  To minimise conflict between land uses within this zone and land uses within adjoining zones.  To encourage ecotourism enterprises that minimise any adverse effect on primary industry production and the scenic amenity of the area.

Zone E3  To protect, manage and restore areas with special ecological, scientific, cultural or aesthetic values.  To provide for a limited range of development that does not have an adverse effect on those values.  To conserve biological diversity and native vegetation corridors, and their scenic qualities, in a rural setting.

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GLOUCESTER RESOURCES LIMITED SPECIALIST CONSULTANT STUDIES Amended Rocky Hill Coal Project Part 8: Aquatic Ecology Assessment Report No. 806/14 3. GOVERNMENT REQUIREME NTS AND MATTERS F O R T H E AMENDED PROJECT

Relevant requirements and matters required for consideration in this report were provided by NSW DP&I, DPI (Fisheries) and the NSW EPA. Each of the requirements or matters has been addressed in this document in the section(s) nominated in Table 1.

Table 1

Coverage of DGRs and Additional Matters Page 1 of 2 Government Relevant Agency Paraphrased Requirement Section(s) AQUATIC ECOLOGY DP&I The EIS must address measures taken to avoid, reduce or mitigate (24/04/12) impacts on biodiversity: including:  a detailed assessment of potential impacts of the development on 6.2 any terrestrial or aquatic threatened species or populations and their habitats, endangered ecological communities and groundwater dependent ecosystems DPI The EIS must: 4.1; 4.1.4; (Fisheries)  Describe and discuss significant habitat areas within the Study Area 4.2.4, 4.2.5 (22/06/12)  Outline the habitat requirements of threatened species likely to occur 5 in the Study Area  Indicate the location, nature and extent of habitat removal or 6.1; 6.2.1.1 modification which may result from the proposed action  Discuss the potential impact of the modification or removal of habitat 6.2.1.1; 6.2.1.3  Identify and discuss any potential for the proposal to introduce 6.1, 6.2.1.1; barriers to the movement of fish species 6.2.1.3  Describe and discuss any other potential impacts of the proposal on 6.2.1 fish species or their habitat Clarify and assess the actual footprint and any impact on Oaky Creek it 6.2.1.1 intersects the predicted areas of impact. Identify in the water management strategies that the diversion of water around the pit is delivered to existing watercourses to ensure that further 6.2.1.1, 7 degradation of the watercourses does not occur. Outline the final land use and any proposed remediation work to be 6.1.1, 7 carried out on final voids. The EIS must consider how the proposal has been or may be modified and managed to conserve fisheries habitat on the subject site and in the 6.2.1.1, 6.2.1.3 Study Area In discussing alternatives to the proposal, and the measures proposed to mitigate any effects of the proposal, consideration must be given to developing long term management strategies to protect areas within the 6.1.1; 7.0 Study Area which are of particular importance for fish species. This may include proposals to restore or improve habitat. Any proposed pre-construction monitoring plans or on-going monitoring of the effectiveness of the mitigation measures must be outlined in 7.0 detail, including the objectives of the monitoring program, method of monitoring, reporting framework, duration and frequency.

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SPECIALIST CONSULTANT STUDIES GLOUCESTER RESOURCES LIMITED Part 8: Aquatic Ecology Assessment Amended Rocky Hill Coal Project Report No. 806/14

Table 1 (Cont’d) Coverage of DGRs and Additional Matters Page 2 of 2 Government Relevant Agency Paraphrased Requirement Section(s) AQUATIC ECOLOGY (Cont’d) EPA Assess all water discharges (direct and indirect) expected to occur (02/04/12) throughout the mine life. Discharge locations, receiving waters and likely impacts on the aquatic ecology of the receiving waters must be 6.1.2 assessed in detail. Indirect discharges include any runoff or percolation of wastewaters that might occur following irrigation of mine water. Describe how predicted impacts will be monitored and assessed over time. The proponent should develop a water quality and aquatic ecosystem monitoring program to monitor the responses for each component or process that affects the Water Quality Objectives that includes, for example: 7.0 + see WRM (2016) c) adequate data for evaluating compliance with water quality standards and/or Water Quality Objectives; d) measurement of pollutants identified or expected to be present in any direct or indirect discharge. Take into account the following guideline (as applicable). 5.2.3; 6.1.1,  Policy and Guidelines – Aquatic Habitat Management and Fish 6.2.1.1, 6.3 Conservation (NSW Fisheries)

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GLOUCESTER RESOURCES LIMITED SPECIALIST CONSULTANT STUDIES Amended Rocky Hill Coal Project Part 8: Aquatic Ecology Assessment Report No. 806/14 4. DESCRIPTION OF THE A Q U AT I C ENVIRONMENT 4.1 REVIEW OF EXISTING INFORMATION

Existing information on aquatic habitats and associated aquatic biota within and in the vicinity of the Mine Area was obtained by a review of aerial photography (Google Earth images), previous work undertaken for the 2013 Project, a description of the amended Project and a search for relevant literature using the internet and the CEL library.

4.1.1 Physical Setting, Land Use and Climate

The Mine Area is located in the Gloucester Valley and forms part of the Lower North Coast Subregion of the Hunter – Central Rivers Catchment, in the southern section of the Manning River system (Figure 3). The eastern boundary of the proposed area of disturbance within the Mine Area occurs at an elevation of approximately 200m AHD in the foothills of the Mograni Range. The western boundary of the Mine Area occurs at an elevation of approximately 100m AHD and is set back from the eastern bank of Waukivory Creek and, for a short distance along the Avon River, downstream of its confluence with Waukivory Creek (Figure 2). Waukivory Creek and the Avon River are the main watercourses that flow through the Study Area, lying adjacent and downstream of the Mine Area, and flow into the Gloucester River which ultimately flows into the Manning River (Figure 3).

Waukivory Creek originates to the east of the Glen and flows in a north- westerly direction. It turns west at the southern end of the Mine Area and then around the southern and western boundaries of the Mine Area before flowing into the Avon River (between Sites 4 and 5) (Figure 1). The Avon River originates in the Avon River State Forest and Running Creek Nature Reserve, to the east of the Chichester State Forest. It flows eastwards to Stratford and then turns northwards until its confluence with Waukivory Creek, approximately 4.5km south of Gloucester. The Avon River then meanders through the flat valley floor topography and is joined by the smaller Oaky Creek just after it passes under Jacks Road (to the northwest of the Mine Area). Another 4km downstream, Mograni Creek flows from the east into Avon River, approximately 1km upstream of the Avon River’s confluence with the larger Gloucester River. Further downstream, the Gloucester River is joined almost immediately by the Barrington River and eventually discharges into the Manning River 20km to the north-east, which flows to the ocean, passing the towns of Wingham and Taree (Figure 3).

The lowlands of the Gloucester Valley have been cleared extensively, primarily for agricultural activity. Agriculture within the Gloucester Shire is traditionally based around dairying, however, the extent of dairying has declined significantly over recent years with beef cattle now being Gloucester’s major agricultural enterprise (Essential Solutions and RWC, 2016).

There are two existing open cut coal mines within the Gloucester Basin, both operated by Yancoal Australia Limited, formerly Gloucester Coal Limited. They are the Stratford Coal Mine (located approximately 5km south of the Mine Area) and the Duralie Coal Mine, located approximately 22km south of the Mine Area within the catchment and within the Great Lakes Local Government Area. In late 2012, Stratford Coal Limited, a subsidiary of Yancoal Australia Limited, formerly Gloucester Coal Ltd lodged its development application to extend its Stratford operations for a period of 11 years and approval was subsequently granted.

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SPECIALIST CONSULTANT STUDIES GLOUCESTER RESOURCES LIMITED Part 8: Aquatic Ecology Assessment Amended Rocky Hill Coal Project Report No. 806/14

Figure 3 Location of the Mine Area within the Manning River Catchment

AGL Upstream Infrastructure Investments Pty Ltd (AGL) undertook seismic exploration within the Gloucester Basin (including parts of the Mine Area) focusing on defining coal seam gas reserves in coal seams located deeper in the Basin than those targeted by GRL for coal mining. AGL subsequently received approval to develop the Stage 1 Gas Field Development Area centred on the town of Stratford, but has announced that it will not be proceeding with the development.

The climate in the vicinity of Gloucester is warm temperate. Average rainfall at Gloucester is approximately 984 mm/yr, with peak precipitation occurring typically between December and March. The driest months are from July to December, however, the variability in quantity and timing of rainfall from one year to the next is high.

4.1.2 Surface Waters

The Avon River has a total catchment area of 290km2. A water gauge on the Avon River (GS208028) is located just downstream of the Waukivory Creek confluence and has a catchment area of approximately 225km2 (Figure 1). The flow records show that base flow tends to persist over long periods; the median is 10.2 ML/day and the mean flow is 92 ML/day, reflecting a relatively large proportion of high flows (WRM 2016). The relative low frequency of zero flow-days has been attributed to groundwater inflows from the alluvial groundwater systems adjacent to the Avon River and its tributaries. The mean annual flow volume at GS208028 from September 2004 – December 2015 was 38,337 ML/yr (NSW Office of Water, 2016). Gloucester and surrounding low-lying land and river flats are prone to flooding following significant rainfall events and water velocities in these rivers can be high.

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GLOUCESTER RESOURCES LIMITED SPECIALIST CONSULTANT STUDIES Amended Rocky Hill Coal Project Part 8: Aquatic Ecology Assessment Report No. 806/14

A number of watercourses within the Study Area have recorded moderate to high electrical conductivity (EC) (IIA 2009, Gloucester Coal Ltd 2010, WRM 2016). Previous sampling within the Avon River has recorded EC ranging from 80 – 2,160 µS/cm (Turak et al. 2000, Resource Strategies 2002, Gloucester Shire Council 2009, IIA 2009). Monitoring of smaller watercourses downstream of Stratford Coal Mine (Bowens Road North) discharge point has recorded much higher EC, with one site in Avondale Creek as high at 13,000 µS/cm (Resource Strategies 2002). NSW coastal lowland rivers (rivers below 150m AHD) are typically in the range of 200 – 300 µS/cm although these rivers may naturally have much higher conductivity during low flow periods and/or if the system receives saline groundwater inputs. The ANZECC (2000) EC threshold limits for the protection of aquatic ecosystems in lowland rivers are 125 - 2,200 µS/cm. The Avon River catchment has naturally high soil and groundwater salinity which is attributed to the geology of the area (i.e. coal and shale deposits) (IIA 2009). Saline groundwater contributions to base flow, particularly during low rainfall periods, can elevate the EC of surface waters. Anthropogenic causes of surface water salinity are also present within the Study Area, such as the diffuse but potentially significant contribution from agricultural practices.

Downstream of the Avon River, the receiving waters of the Gloucester River have a much lower salinity. Sites sampled from 1995 - 1999 upstream of Avon River confluence ranged from 3 - 95 µS/cm (Turak et al. 2000).

4.1.3 Groundwater Systems

There are three groundwater systems within the boundary of the Mine Area and the surrounding area. The first is a shallow alluvial groundwater system associated with the Waukivory Creek and Avon River floodplains. The alluvial sediments are composed of silty sands, gravely sands and clays. Recharge of the groundwater system is from direct infiltration of rainfall, the Permian coal measures, and potentially from the Waukivory Creek and Avon River during dry periods when groundwater is lower than the channel base. Generally, the water table is 2m-4m below the alluvial floodplain and discharges into these watercourses, contributing to base flow. Groundwater EC within the shallow alluvium ranges from 500 µS/cm to 1900 µS/cm (AGE, 2016).

The second groundwater system is shallow weathered bedrock with associated colluvial deposits. This groundwater system is located at the base of the steep slopes to the east of the Mine Are and is recharged by rainfall and runoff from the ridge slopes. Groundwater flow is to the west (i.e. towards Waukivory Creek and Avon River) and there is some recharge of the underlying coal seam groundwater systems. The groundwater in this groundwater system is considered to be brackish to saline (AGE, 2016).

The third is a Permian coal measures groundwater system of which the coal seams are the prime water-bearing strata. The coal seams form the main continuous groundwater systems in the Gloucester Basin and are recharged by direct rainfall in outcrop areas or via leakage from overlying weathered bedrock and colluvial deposits. Groundwater levels vary with topography, being 15m – 20m below the surface in elevated areas to 2m – 6m below the surface at floodplain level. The groundwater flow is to the west–southwest and potentially discharges into the shallow alluvial groundwater system along the Avon River/Waukivory Creek system via fractured overburden. Groundwater in the coal seams is generally saline, slightly acidic (pH 6.2 – 7.0) and highly mineralised. Previous sampling indicates that EC increases with depth, from 1,395 µS/cm near the surface to 3,070 µS/cm at 97m (AGE, 2016). Groundwater monitoring around the Stratford Coal Mine pits found EC ranged from 2000 – 9000 µS/cm. Average annual inflows from the Permian coal measures into the open cut pits are predicted by AGE (2016) at 727ML/yr over the 16 year mining period with a peak at 1,100ML/yr in Year 7.

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SPECIALIST CONSULTANT STUDIES GLOUCESTER RESOURCES LIMITED Part 8: Aquatic Ecology Assessment Amended Rocky Hill Coal Project Report No. 806/14 4.1.4 Aquatic Habitats and Biota

Many of the watercourses within the Study Area have been cleared to the bank, with the few remaining strips of native riparian vegetation restricted to sections of larger rivers, such as the Gloucester River (AECOM 2009). Riparian habitat has also often been heavily disturbed by weeds including Camphor Laurel (Cinnamomum camphora), Lantana (Lantana camara), privet (Ligustrum species) and willow (Salix species).

Degradation of riparian and aquatic habitat and poor water quality has impacted aquatic macroinvertebrate communities within the Study Area. Macroinvertebrates have been sampled previously in riffle and pool edge habitat in Avon River (at the Jacks Road crossing) as part of a wider assessment of river health in NSW (Turak et al. 2000). AusRivAS methods were used to assess the health of the Avon River reach downstream of Stratford during surveys in autumn (pool edge habitat only) and spring (pool edge and riffle habitat) in 1997. The AusRivAS assessments indicated some impairment to the aquatic macroinvertebrate community consistent with habitat degradation and poor water quality. Similarly, a long term monitoring program for Bowens Road North Coal Mine found that macroinvertebrate communities from six sites, including two on the Avon River downstream of Stratford, were dominated by pollution-tolerant taxa indicating that water quality was ‘very poor’ to ‘poor’ and that for the majority of sites and years sampled the assemblages were moderately to grossly impaired (IIA 2009). Water chemistry (particularly EC) and flow levels were considered to have the greatest influence on macroinvertebrate biological diversity, with the lowest diversity recorded during periods of prolonged low flows and high EC (IIA 2009).

In contrast, the same study of river health in NSW surveyed three sites in the Gloucester River, two upstream of the Avon River confluence and one downstream. For all years, seasons and habitats, the Gloucester River sites were found to have healthy and rich assemblages of macroinvertebrates equivalent to reference (undisturbed) conditions (Turak et al. 2000).

The Manning River system is relatively unusual in NSW in that all major rivers and creeks comprising the system are unregulated. The NSW Detailed Weir Review has not identified any weirs that require remediation to restore natural flow regimes and fish passage for this drainage (NSW DPI 2006a). NSW Fisheries have identified five road causeways crossing the Gloucester River that may impede fish passage under some flow conditions but all these are upstream of the Avon River confluence and would therefore have little or no effect on fish movement between the Gloucester River and into the Avon River catchment (NSW DPI 2006b). This system does not have large dams, or as far as is known, other large barriers, hence it maintains connectivity between the watercourses of the Study Area and the Pacific Ocean. Numerous species of fish migrate between the upper reaches of rivers and estuaries or the sea, which potentially leads to a relatively large species richness of fishes within the Study Area. Previous surveys, published distributions and habitat requirements indicate that up to 25 species may be present, including 20 native species (Table 2).

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GLOUCESTER RESOURCES LIMITED SPECIALIST CONSULTANT STUDIES Amended Rocky Hill Coal Project Part 8: Aquatic Ecology Assessment Report No. 806/14

Table 2

Species of freshwater fish that may occur, or suitable habitat may occur, within the region of the Study Area, indicated by a tick

Avon River & Gloucester Hunter - Central Waukivory River Rivers Region Creek Cardno Harris & DPI McDowall Ecology Lab Gehrke 2006a 1996 Family Name Species Name Common Name 2010 1997 Anguillidae Anguilla australis Short finned eel     Anguillidae Anguilla reinhardtii Long finned eel    Clupeidae Potamalosa richmondia Freshwater herring    Galaxiidae Galaxias brevipinnis Climbing galaxias  Galaxiidae Galaxias olidus Mountain galaxias    Salmonidae Oncorhynchus mykiss Rainbow trout#    Salmonidae Salmo trutta Brown trout#   Retropinnidae Retropinna semoni Australian smelt     Cyprinidae Carassius auratus Goldfish#     Cyprinidae Cyprinus carpio Carp#   Ariidae Arius graeffei Freshwater fork tailed   catfish Plotosidae Tandanus tandanus Freshwater catfish*   Poeciliidae Gambusia holbrooki Mosquito fish#    Scorpaenidae Notesthes robusta Bullrout    Percichthyidae Macquaria novemaculeata Australian bass    Terapontidae Leiopotherapon unicolor Spangled perch  Mugilidae Mugil cephalus Sea mullet    Mugilidae Myxus petardi Freshwater mullet   Gobiidae Gobiomorphus australis Striped gudgeon    Gobiidae Gobiomorphus coxii Cox's gudgeon     Gobiidae Hypseleotris compressa Empire gudgeon    Gobiidae Hypseleotris galii Fire-tailed gudgeon     Gobiidae Hypseleotris klunzingeri Western carp   gudgeon Gobiidae Philypnodon grandiceps Flathead gudgeon     Gobiidae Philypnodon macrostomus Dwarf flathead     gudgeon # introduced species; * translocated native species outside its natural range

4.1.5 Stygofauna

Stygofauna comprise highly specialised aquatic macroinvertebrates and (rarely) some fish that are adapted to living in groundwater habitats, including groundwater systems (also known as aquifers “which can yield productive volumes of groundwater”1), waters held with spaces surrounding fractured rock and water-filled subterranean cavities (Tomlinson and Boulton 2010, Eberhard 2007; see also review in NOW 2012b). Groundwater systems may be associated with existing features of the land surface (e.g. permanent, seasonal or ephemeral

1 Source: NSW Aquifer Interference Policy (Section 1.2)

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SPECIALIST CONSULTANT STUDIES GLOUCESTER RESOURCES LIMITED Part 8: Aquatic Ecology Assessment Amended Rocky Hill Coal Project Report No. 806/14 watercourses and are typically referred to as alluvial groundwater systems) or deeper features which may or may not be partitioned from the existing land surface (e.g. deep coal seams). Stygofauna have been characterised into three broad groups, namely:  stygoxenes, which occur in subterranean waters but must leave for some period(s) to complete their life cycles;  stygophiles, which are able to live out life cycles in subterranean or surface waters; and  stygobites, which are obligate dwellers in subterranean waters.

The latter group typically displays common morphological characteristics, such as loss of eyes, pale or no pigmentation and enhanced non-optic sensory structures (Eberhard 2007). Sampling of groundwater may yield all three types of stygofauna. It may also yield obligate surface dwellers, for example where samples are taken from hyporheic habitats (the mixing zone between surface and groundwater – typically beneath or adjacent to streams). Finally, terrestrial or flying organisms may be sampled in groundwater, when they fall into boreholes from the air or land surface.

Stygofauna are made up predominantly of many kinds of crustaceans, plus worms, snails, insects and a few other invertebrate groups. Taxa are often closely related to those on other continents, a pattern of relationship indicating that they had common ancestry on the ancient supercontinents of Gondwana and Pangaea or in the Tethys Ocean (Humphreys 2006). Notwithstanding this broad origin, stygofauna may exhibit high levels of endemism (i.e. species that are restricted to particular localities) and, given the poor understanding of detailed taxonomy of the group, DNA analyses are being used to discriminate taxonomic groups where identification of species based on morphological features is not currently reliable.

Stygofauna contribute to the biodiversity of Australia (Tomlinson and Boulton 2010, Humphreys 2006). They may be functionally important, especially in hyporheic zones, and they may function in breakdown of organic material and grazing of biofilms and assist in the transfer of water by altering interstitial pore size as a result of burrowing/tunnelling within groundwater systems (Hancock et al. 2005). Boulton et al. (2008) identified ecosystem services that may be provided by groundwater and/or stygofauna, including: prevention of land subsidence; erosion and flood control via absorption of flood waters, reception and bioremediation of wastes and other by-products of human activities; and improvement in water quality through biogeochemical water purification.

Threats that have been identified in relation to stygofauna typically relate to disturbance of groundwater habitats, such as water abstraction, artificial filling and contamination (including introduction of toxic chemicals or clogging of pore spaces by fine sediments) (NOW 2012b, Tomlinson and Boulton 2010, Humphreys 2006). Additionally, life-history adaptations to the groundwater environment may make stygofauna more susceptible to environmental disturbance, including production of fewer but larger eggs, prolonged egg development and greater longevity compared with surface-dwelling relatives (Tomlinson and Boulton 2010).

Research on stygofauna in Australia has been relative intensive in northern Western Australia, particularly in relation to mining activities (e.g. Pilbara region – Eberhard et al. 2005). Several studies in eastern Australia have identified a relatively diverse stygofauna present in alluvial groundwater systems, including sites in Queensland and the of New South Wales (Tomlinson and Boulton 2010, Hancock and Boulton 2008, 2009). In these latter

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GLOUCESTER RESOURCES LIMITED SPECIALIST CONSULTANT STUDIES Amended Rocky Hill Coal Project Part 8: Aquatic Ecology Assessment Report No. 806/14 studies, the greatest number of taxa came from boreholes with low electrical conductivity (i.e. EC <1500 µS/cm) and the richest boreholes (in terms of stygofauna) occurred where the water table was less than 10m deep, associated with the alluvium of larger river systems and near phraeophytic trees (i.e. with deep roots penetrating the saturated water of groundwater systems).

Comparative studies in New South Wales and Queensland have indicated that stygofauna in alluvial groundwater systems tend to be present in greater diversity and abundance than in Permian coal seam groundwater systems (ALS 2010a, b, Eco Logical 2014, 2015a, b)). The frequently high EC of waters, low oxygen concentrations and limited connectivity within coal seam aquifers and between coal seam aquifers and upper, alluvial aquifers in the latter has been suggested as a cause of these depauperate assemblages of stygofauna (ALS 2010a, Eco Logical 2015a & b). As a rough guide, deep groundwater systems and/or groundwater with conductivities exceeding 3000 µS/cm are thought generally to be unsuitable for stygofauna (Table 3). On the basis of previous investigations, one might predict few or no stygofauna in the coal measures to be extracted within the Rocky Hill Mine Area, but the potential presence of stygofauna in the alluvial aquifers in close proximity to the Avon River.

Table 3

Published preferred conditions for stygofauna presence and comparison with groundwater characteristics of the Mine Area

Conditions of 3 Aquifer Types beneath 2 Reported Conditions the Mine Area Characteristic Conducive to Stygofauna1 Alluvium Interburden Coal Groundwater quality < 3000 µS/cm-1 1240 to 6790 2410 to 7690 2630 to 6490 (electrical conductivity) Groundwater quality (pH) known range: 4.3 to 7.37 6.19 to 7.50 5.75 to 7.38 7.01 to 11.90 units Depth of groundwater < 10 m below ground level 7.6 to 11.2 24 to 42 66 to 97 body (bgl) Geology Presence of cavities, unknown unknown unknown fractures or interstices Source: 1. Hancock and Boulton (2008) in (ALS 2010A) 2. AGE (2016)

Legislative requirements exist for environmental assessments of stygofauna in relation to mining activities in WA and Qld. In NSW, groundwater has been regulated at least since 1912 (Water Act 2012) and, while there has been a major recognition of the importance of groundwater in NSW, there has been far less legislative consideration of stygofauna as part of the groundwater ecosystem.

In summary, stygofauna are aquatic organisms associated with groundwater habitats. They contribute to Australia’s biodiversity, provide a range of ecosystem services and species may be at relatively risk of extinction from groundwater disturbance due to high levels of endemism and their adaptations to groundwater habitats. Current research suggests that shallow alluvium groundwater systems associated with moderate to large rivers tend to support a greater diversity and abundance of stygofauna, while deep coal-related groundwater systems (especially with high conductivity) tend to provide much less suitable habitat.

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SPECIALIST CONSULTANT STUDIES GLOUCESTER RESOURCES LIMITED Part 8: Aquatic Ecology Assessment Amended Rocky Hill Coal Project Report No. 806/14 4.2 FIELD STUDIES

The review of existing publicly available information was determined to be insufficient to provide a description of the aquatic environment suitable for assessing the potential impacts of the amended Project. This section describes field and laboratory studies designed to assemble site-specific information to enable an appropriate assessment of the effects of the amended Project on aquatic ecosystems.

4.2.1 Field and Laboratory Methods

The Mine Area and the proposed bridge location over Waukivory Creek (for the private haul road) were visited in 2010, and 2016 to collect information on the existing ecology of surface waters. GPS positions and dates of sampling are shown in Tables 4 and 5, respectively. Groundwater was surveyed for stygofauna in 2011 (Section 4.2.2).

Table 4

GPS coordinates, Riparian Channel and Environmental Inventory (RCE) scores and fish habitat classification within the Study Area Sites in bold sampled in 2010 and 2016, except Site 20, which was sampled only in 2016. RCE and Fish Habitat scores in brackets were results of assessments in 2016.

Fish Habitat Site Easting Northing Waterway RCE Score Classification 1 0399573 6446130 Avon River 27 2 2 0400588 6447299 Avon River 30 (32) 2 (2) 3 0401934 6451525 Avon River 27 2 4 0402077 6452241 Avon River 32 (31) 2 (2) 5 0402577 6452757 Avon River 25 (31) 2 (2) 6 0403448 6454672 Avon River 30 (31) 2 (2) 7 0403274 6455073 Avon River 27 2 8 0403077 6458286 Avon River 32 2 9 0404997 6449981 Waukivory Creek 34 2 10 0403855 6450581 Waukivory Creek 31 2 11 0402713 6451321 Waukivory Creek 29 2 12 0402746 6452135 Waukivory Creek 28 2 13 0404852 6454007 Oaky Creek 29 3 14 0403768 6454668 Oaky Creek 18 3 15 0405141 6459533 Mograni Creek 27 2 16 0403669 6458734 Mograni Creek 26 2 17 0401037 6458405 Gloucester River 34 1 18 0401759 6458802 Gloucester River 40 1 19 0401796 6460236 Gloucester River 31 1 20 0404450 6450266 Waukivory Creek (44) (2) 1. Datum: UTM WGS 84 Zone: 56H 2. Sites in bold sampled in 2010 and 2016, except Site 20, which was sampled only in 2016. RCE and Fish Habitat scores in brackets were results of assessments in 2016.

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GLOUCESTER RESOURCES LIMITED SPECIALIST CONSULTANT STUDIES Amended Rocky Hill Coal Project Part 8: Aquatic Ecology Assessment Report No. 806/14

Table 5

Date and type of sampling undertaken at surface waters within the Study Area

Site Water Quality Riparian, Channel Macro- Macro- Fish and Environmental phytes invertebrates Inventory 1 16/11/10 & 18/11/10 16/11/2010 16/11/2010 16/11/2010 16/11/2010 16/11/10 & 18/11/10; 16/11/2010; 16/11/2010 16/11/2010 16/11/2010 2 02/02/2016 02/02/2016 3 17/11/2010 17/11/2010 17/11/2010 17/11/2010 17/11/2010 15/11/10 & 18/11/10; 15/11/2010; 15/11/2010 15/11/2010 15/11/2010 4 02/02/2016 02/02/2016 16/11/10 & 18/11/10; 16/11/2010; 16/11/2010 16/11/2010 16/11/2010 5 02/02/2016 02/02/2016 17/11/10 & 18/11/10; 17/11/2010; 17/11/2010 17/11/2010 17/11/2010 6 02/02/2016 02/02/2016 7 17/11/10 & 18/11/10 17/11/2010 17/11/2010 17/11/2010 17/11/2010 8 17/11/10 & 18/11/10 17/11/2010 17/11/2010 17/11/2010 17/11/2010 9 16/11/10 & 18/11/10 16/11/2010 16/11/2010 16/11/2010 16/11/2010 10 15/11/10 & 18/11/10 15/11/2010 15/11/2010 15/11/2010 15/11/2010 11 15/11/2010 15/11/2010 15/11/2010 15/11/2010 15/11/2010 12 16/11/10 & 18/11/10 16/11/2010 16/11/2010 16/11/2010 16/11/2010 13 18/11/2010 18/11/2010 14 18/11/2010 18/11/2010 15 18/11/2010 18/11/2010 16 18/11/2010 18/11/2010 17 17/11/10 & 18/11/10 17/11/2010 18 17/11/10 & 18/11/10 17/11/2010 19 18/11/2010 18/11/2010 20 02/02/2016 02/02/2016 02/02/2016 02/02/2016 02/02/2016

4.2.1.1 Sampling Sites and Habitat Characteristics of Surface Waters

A preliminary site inspection of surface waters occurred on 19 and 20 October 2010. More detailed field investigations of aquatic habitat, biota and water quality at sites within the Study Area were undertaken from 15–19 November 2010. Weather conditions during the main field investigations were overcast and included periods of significant rainfall. Nineteen sites were surveyed within the Study Area in 2010, representing different sections of the watercourses of interest and included places that may be affected by the 2013 Project at that time or that may be able to serve as reference sites against which changes due to the 2013 Project may be measured. A further site on Waukivory Creek (Site 20) and a selection of sites previously surveyed in November 2010 were visited in February 2016 (Table 4, Figure 1). The aim of sampling in 2016 was to describe the proposed crossing of Waukivory Creek and the private haul road (Site 20) between the Rocky Hill Mine Area and Stratford Mining Complex. It should be noted that Site 20 is the same as Site 4, as labelled during the preliminary inspection in October 2010. It has been renamed as Site 20 because it aligns better with the more comprehensive sampling undertaken in November 2010.

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SPECIALIST CONSULTANT STUDIES GLOUCESTER RESOURCES LIMITED Part 8: Aquatic Ecology Assessment Amended Rocky Hill Coal Project Report No. 806/14

Aquatic ecology sampling included the description of aquatic habitat, measurement of water quality and an assessment of aquatic biota including macrophyte (aquatic plants and algae), macroinvertebrate and fish assemblages. A number of sites were assessed for habitat and water quality only in order to characterise patterns in water chemistry throughout the Study Area.

Appendix 1 provides a key for name changes made to sites in this report that were initially described in the site inspection (Cardno Ecology Lab 2010) and subsequent sampling later in 2010 (Cardno Ecology Lab 2013) and 2016 (this report).

Staff from CEL undertook an induction for safe work methods upon arrival during each visit to the Mine Area. The induction was supervised by management of GRL and staff from CEL complied with all requirements while on-site. Access to watercourses by 4WD vehicle and walking was permitted and it was advised that permission to access two sections of the Avon River (between Sites 5 and 6, and Sites 7 and 8, Figure 1) had not been obtained from the landowners during the period of field work. Therefore, these reaches were not included in the aquatic ecology assessment.

At each site, the time and date of the inspection; GPS position (datum WGS84; accuracy <10 m) were recorded; physical and biological characteristics of instream and riparian habitats were noted; and a minimum of two photographs each were taken upstream and downstream of the viewing position. The data obtained were used to provide two measures of stream conditions.  A standardised description of adjacent land and condition of riverbanks, channel and bed was recorded using the ‘Riparian, Channel and Environmental Inventory’ (RCE), developed by NSW Environment Protection Authority (EPA) (Chessman et al. 1997). RCE is used to scale and quantify the environmental state of particular locations based on surrounding land use, geomorphology, channel bed forms, and riparian and instream vegetation. The RCE score for each site is calculated by summing the scores for 13 descriptors. The highest possible score (52) is assigned to streams with no obvious physical disruption; the lowest score (13) is assigned to heavily disturbed streams. The descriptors and their categories are given in Appendix 2.  The potential for sites to provide fish habitat was graded according to criteria developed by NSW Fisheries (Smith and Pollard 1999; Fairfull and Witheridge 2003, Fairfull 2013). These criteria are given in Appendix 3.

4.2.1.2 Water Quality of Surface Waters

In 2010, water quality was measured using a Yeo-Kal 611 probe and in 2016 a Sonde water quality meter was used. In 2010 and 2016 physical-chemical properties measured included: electrical conductivity (EC, µS/cm); temperature (0C); turbidity (NTU); dissolved oxygen (mg L-1 and % saturation); and pH. ORP (oxidation reduction potential: mV) was measured in 2010 but -1 not 2016 (as it was not available on the Sonde). Alkalinity (mg CaCO3 Litre ) was measured as part of the AusRivAS sampling protocol in 2010, using hand-held titration cells from CHEMetrics.

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GLOUCESTER RESOURCES LIMITED SPECIALIST CONSULTANT STUDIES Amended Rocky Hill Coal Project Part 8: Aquatic Ecology Assessment Report No. 806/14

Two replicate measures of each water quality variable were taken from just below the water surface at each site, except for alkalinity where only one measure was taken.

The in situ water quality readings were used to provide a snap shot description of water characteristics in each watercourse inspected and to enable comparison with Australia, New Zealand Environment Conservation Council (ANZECC) 2000 guidelines for the protection of aquatic ecosystems within lowland rivers in south-eastern Australia.

4.2.1.3 Macrophytes in Surface Waters

Percentage cover of aquatic plants (“macrophytes”) was estimated at Sites 1 – 12 and Site 20 where aquatic biota were surveyed. In some cases, plants were collected, photographed and returned to the laboratory for identification.

4.2.1.4 Macroinvertebrates in Surface Waters

Macroinvertebrates associated with edge habitat at Sites 1 – 12 (Figure 1) and from riffle habitat at Sites 9 and 10 were sampled during the spring period (defined as occurring from 15 September to 15 December) in accordance with the Rapid Assessment Method (RAM) based on AusRivAS (Turak et al. 2004). Edge habitat is defined as areas along creek banks with little or no flow, including alcoves and backwaters, with abundant leaf litter, fine sediment deposits, macrophyte beds, overhanging banks and areas with trailing bank vegetation (Turak et al. 2004). Riffle habitat is an area of broken water with high velocity that generally has some cobble or boulder substratum. Riffle habitat at Site 6 could not be sampled safely due to rising river height on 17 November 2010.

The longitudinal extent of sites defined for macroinvertebrate sampling under the AusRivAS protocol are determined as a distance ten times the modal channel width or a minimum of 100m in length. In this study, the latter was used. Samples were collected over a cumulative length of 10m of edge habitat within each site, usually in 1m-2m long sections within the 100 m of watercourse, ensuring that all significant sub-habitats within each site were sampled (Turak et al. 2004). The chemical and physical variables required for running the AusRivAS predictive model were recorded from each site. The timing of the visit to Site 20 was outside the AusRivAS spring and autumn periods, so the complete protocol was not implemented at that site.

Dip nets with a mesh size of 250µm were used to collect the macroinvertebrates. The dip net was first used to disturb animals by agitating bottom sediments and suspending invertebrates into the water column. The net was then swept through this “cloud” of material to collect suspended and surface dwelling animals. Each macroinvertebrate sample was rinsed in the net with local water to winnow out fine particles and the remaining material was placed in a white sorting tray. Animals were removed from the tray using forceps and pipettes. Trained staff removed animals for a minimum period of 40 minutes. Thereafter, removals were performed in ten minute periods to a total of one hour, at which time removals would cease if no new taxa were found in a ten minute period. The animals collected from each sample were placed inside a labelled jar containing 70% ethanol preservative and returned to the laboratory for further processing. At Site 20, a dip net was used to agitate habitat and collect invertebrates as described above. Samples were placed in a white tray and identified to the lowest possible taxonomic level in the field.

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SPECIALIST CONSULTANT STUDIES GLOUCESTER RESOURCES LIMITED Part 8: Aquatic Ecology Assessment Amended Rocky Hill Coal Project Report No. 806/14 4.2.1.5 Fish in Surface Waters

A snapshot survey of fish and large mobile macroinvertebrates was undertaken at Sites 1 – 12 (November 2010) and Site 20 (February 2016) by electrofishing using a Smith-Root backpack unit. This is a commonly used, effective and non-destructive technique for sampling fish in freshwater habitats. The technique involves discharging an electric pulse into the water which stuns fish, allowing them to be easily netted, counted, identified and released. Electrofishing was done in appropriate habitat such as pool edges, riffles, around submerged wood debris (‘snags’) and beneath overhanging banks and vegetation. One staff member operated the electrofisher, while a second equipped with a dip net was responsible for capture of stunned fish. Captured fish were placed into a fish box filled with stream water for identification and subsequent release. Native fish and invertebrates were returned to the water unharmed, but introduced pest species, such as mosquito fish (Gambusia holbrooki) and goldfish (Carassius auratus), were euthanized humanely with benzocaine and disposed of by burial.

The entire 100 m length of each site was electrofished and duration of fishing recorded. The amount of fishable habitat varied among sites and so did the time fished. Fishing power (amps) was standardised across sites by adjusting voltage output according to the electrical conductivity of the water.

4.2.1.6 Stygofauna (Groundwater)

Stygofauna were sampled advantageously within nine boreholes drilled for sampling geological strata and groundwater chemistry within the Mine Area (Figure 2). In total, 36 samples were collected from groundwater within groundwater systems from three depth strata on three occasions from April to May 2011 (Table 6). The total volume of water pumped was recorded (± approximately 1 L) and water samples were taken concurrently for measurement of water quality indicators. Table 6

Features of boreholes sampled for Stygofauna at the Mine Area

Screened Bore Total Depth Interval Aquifer Code (mbgl) (mbgl) Type Dates Sampled for Stygofauna GR-P1 10.2 5.5 to 8.5 Alluvium 26/04/2011 11/05/2011 23/05/2011 GR-P2 10 4 to 9 Alluvium 27/04/2011 11/05/2011 23/05/2011 GR-P3 11.2 5 to 9 Alluvium 27/04/2011 11/05/2011 23/05/2011 GR-P4 37 32.5 to 35.5 Interburden 27/04/2011 11/05/2011 23/05/2011 GR-P5 30 23 to 29 Interburden 27/04/2011 11/05/2011 23/05/2011 GR-P6 24 17 to 23 Interburden 26/04/2011 11/05/2011 25/05/2011 GR-P6a 97 89 to 95 Coal 26/04/2011 13/05/2011 - GR-P7 7.6 4 to 7 Alluvium 26/04/2011 11/05/2011 - GR-P7a 72 59 to 71 Coal 26/04/2011 13/05/2011 - GR-P8 42 29 to 41 Interburden 27/04/2011 11/05/2011 25/05/2011 GR-P8a 72 70 to 62 Coal 27/04/2011 13/05/2011 25/05/2011 GR-P9 34 24 to 33 Interburden 27/04/2011 11/05/2011 23/05/2011 GR-P9a 66 59 to 65 Coal 27/04/2011 13/05/2011 25/05/2011

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GLOUCESTER RESOURCES LIMITED SPECIALIST CONSULTANT STUDIES Amended Rocky Hill Coal Project Part 8: Aquatic Ecology Assessment Report No. 806/14

Samples were collected for stygofauna by pumping water from boreholes through a 63 µm mesh. The material retained for each sample on the mesh was washed carefully into a labelled jar and then topped-up with 100% ethyl alcohol. Samples were transferred to Macquarie University for processing (accompanied by a chain-of-custody form).

4.2.2 Laboratory Methods

In the CEL laboratory, all macroinvertebrates in each AusRivAS sample were placed in a petri dish, identified using a binocular microscope and counted to a maximum of ten animals per taxon as per the AusRivAS protocol. Taxa were identified to family level except for Araneae, Cladocera, Copepoda, Hydracarina, Nematoda, Nemertea, Oligochaeta and Ostracoda. Chironomidae were identified to sub-family level as required for input to the model. Identification of animals was validated by another experienced scientist performing QA checks on each sample.

Stygofauna samples were sorted under a binocular microscope and all invertebrates were identified to the lowest taxon practicable and counted.

All laboratory data were initially recorded on paper data sheets and were later transferred to an Excel spread sheet for data analysis and interpretation.

4.2.3 Data Analysis

4.2.3.1 Water Quality of Surface Waters

The results of water quality data collected in situ during site inspections by CEL were used to assess water quality within the Study Area in terms of the health of aquatic ecosystems by comparison with the ANZECC (2000) guidelines for upland rivers in south-eastern Australia.

As water quality data were collected at one time only, they were “snapshot” in nature, and do not provide information on possible variations through time. Sampling over longer periods was undertaken as part of the surface water quality investigations for the amended Project (WRM 2016).

4.2.3.2 Macroinvertebrates of Surface Waters

The AusRivAS protocol uses an internet-based software package to determine the environmental condition of a waterway based on predictive models of the distribution of aquatic macroinvertebrates at undisturbed, reference sites. Observed freshwater macroinvertebrate assemblages (i.e. those collected in the field) are compared to macroinvertebrate assemblages expected from reference (undisturbed) watercourses of the same type, to provide a basis to assess the health of watercourses within the Study Area. The data from selected sites for this study were analysed using the NSW model for pool edge and riffle habitats sampled in spring. The AusRivAS predictive model generates the following indices.  OE50Taxa - This is the number of macroinvertebrate families with a greater than 50% predicted probability of occurrence that were actually observed (i.e. collected) at a site expressed as a ratio of the number of macroinvertebrate families with a greater than 50% probability of occurrence expected to occur at

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SPECIALIST CONSULTANT STUDIES GLOUCESTER RESOURCES LIMITED Part 8: Aquatic Ecology Assessment Amended Rocky Hill Coal Project Report No. 806/14

undisturbed reference sites with similar physical and chemical characteristics. OE50 taxa values range from 0 to slightly greater than 1 and provide a measure of the impairment of macroinvertebrate assemblages at each site. Values close to 0 indicate an impoverished assemblage while values close to 1 indicate that the condition of the assemblage is similar to that of the reference streams.  Overall Bands derived from OE50Taxa scores which indicate the level of impairment of the assemblage. AusRivAS spring bands for edge (E) and riffle (R) habitat are graded as follows:  Band X = Richer invertebrate assemblage than reference condition (E: OE50 > 1.16, R: OE50 > 1.18);  Band A = Equivalent to reference condition (E: OE50 upper limit = 1.16, E: OE50 upper limit = 1.18);  Band B = Sites below reference condition (i.e. significantly impaired) (E: OE50 upper limit = 0.83, E: OE50 upper limit = 0.80);  Band C = Sites well below reference condition (i.e. severely impaired) (E: OE50 upper limit = 0.51, E: OE50 upper limit = 0.43); and  Band D = Impoverished (E: OE50 upper limit = 0.19, E: OE50 upper limit = 0.06).

The revised SIGNAL2 biotic index (Stream Invertebrate Grade Number Average Level) developed by Chessman (2003) was also used to determine the environmental quality of sites on the basis of the presence or absence of families of macroinvertebrates. This method assigns grade numbers between 1 and 10 to each macroinvertebrate family or taxa found, based largely on their responses to chemical pollutants. The sum of all grade numbers for that habitat was then divided by the total number of families recorded in each habitat to calculate the SIGNAL2 index. The SIGNAL2 index therefore uses the average sensitivity of macroinvertebrate families to present a snapshot of biotic integrity at a site. SIGNAL2 values are as follows:  SIGNAL > 6 = Healthy habitat;  SIGNAL 5 – 6 = Mild pollution;  SIGNAL 4 – 5 = Moderate pollution;  SIGNAL < 4 = Severe pollution.

Two SIGNAL scores produced by the AusRivAS predictive model were also examined:  O0Signal index - observed SIGNAL score for taxa that have a probability of occurrence greater than 0%. This is calculated by averaging the SIGNAL grades for all the taxa observed and is equivalent to the SIGNAL score developed by Chessman (1995).  OE0Signal index - the ratio of the observed to expected SIGNAL score per site for taxa that have a probability of occurrence of more than 0%.

While AusRivAS and SIGNAL are useful indices of the current health of watercourses within the Study Area, quantitative sampling methods would be more appropriate for ongoing monitoring should it be required.

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GLOUCESTER RESOURCES LIMITED SPECIALIST CONSULTANT STUDIES Amended Rocky Hill Coal Project Part 8: Aquatic Ecology Assessment Report No. 806/14 4.2.3.3 Stygofauna

The numbers obtained for invertebrates from the groundwater samples were small and/or highly variable. Thus, the results did not warrant such analyses other than simple calculation of means and standard errors. Additionally, the mean volumes of water collected for each of the main groundwater system types sampled were similar and the data were not adjusted for a standard volume of water.

4.2.4 Results –Surface Waters

4.2.4.1 Aquatic Ecology Field Assessment

The field data collection period (15-19 November 2010) followed two weeks in which 76 mm of rainfall occurred at Gloucester, with concomitant effects on the flow of local watercourses. Elevated river height and increased turbidity made assessment of macrophyte cover difficult at some sites. Eight millimetres of rain fell during the second day of sampling (16 November) followed by another 30.4 mm on 17 November which resulted in significant flow increases in local watercourses (as demonstrated by the water height in Figure 4). AusRivAS sampling and electrofishing were completed at Sites 3, 6, 7 and 8 during the morning of 17 November. Flood flows can affect aquatic macroinvertebrate communities and therefore AusRivAS assessments. Thus, sampling was completed as waterway heights were rising but were curtailed prior to the significantly elevated flow levels experienced later that day and for the remainder of the week. The increased flows on 17 November had the effect of reducing EC at sites sampled on that day. To obtain an improved assessment of EC patterns, water quality sampling was repeated for all sites on 18 November 2010, except at Sites 3 and 11 where vehicle access was not possible. The following subsections provide habitat descriptions and results of sampling within the major watercourses in proximity to the Mine Area.

The period of collection of field data in February 2016 was preceded by rainfall events of a much lesser magnitude than was experienced in 2010.

4.2.4.1.1 The Avon River

Site Locations and Condition Sites 1 - 8 were surveyed along Avon River (Figure 1, Plates 1 and 2): Sites 1 - 4 were upstream of the confluence with Waukivory Creek; Sites 5 - 8 were downstream of the confluence. Sites 1 and 2 were > 5km upstream of the overland conveyor (formerly proposed as part of the 2013 Project) that would have crossed the Avon River and Site 3 was in the vicinity of the formerly proposed crossing. Site 5 was downstream of the Waukivory Creek confluence and Sites 6 and 7 were downstream of the confluence with Oaky Creek. Site 8 was the furthest downstream site on the Avon River at The Bridge crossing, < 1km upstream of the Mograni Creek confluence (Figure 1).

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SPECIALIST CONSULTANT STUDIES GLOUCESTER RESOURCES LIMITED Part 8: Aquatic Ecology Assessment Amended Rocky Hill Coal Project Report No. 806/14

No data available

No data available

Days: November 2010

No data available

Days: January and February 2016

Figure 4: Characteristics of water flow at Gauge 208028 on Avon River at the times or sampling in a) 2010 and b) 2016 Red ovals represent periods of sampling in 2010 and 2016. Source: DPI - Water

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GLOUCESTER RESOURCES LIMITED SPECIALIST CONSULTANT STUDIES Amended Rocky Hill Coal Project Part 8: Aquatic Ecology Assessment Report No. 806/14

Plate 1 Avon River, November 2012

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SPECIALIST CONSULTANT STUDIES GLOUCESTER RESOURCES LIMITED Part 8: Aquatic Ecology Assessment Amended Rocky Hill Coal Project Report No. 806/14

Plate 2 Confluence of Avon River and Oaky Creek, October 2010

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GLOUCESTER RESOURCES LIMITED SPECIALIST CONSULTANT STUDIES Amended Rocky Hill Coal Project Part 8: Aquatic Ecology Assessment Report No. 806/14

The Avon River recorded poor to moderate RCE scores and were classified as moderate fish habitat (Table 4). The sites with the largest RCE scores had wider and more complete riparian habitat, although the vegetation was often dominated by exotic trees, pasture grasses and annual weeds. The riparian zone along the Avon River had been heavily degraded and clearing of vegetation had led to bank erosion and invasion by exotic plant species. The channel was dominated by long pool sections and cobble/pebble riffle habitat was only observed at Site 6. With the exception of this riffle, sand and silt comprised the dominant channel substrata. The four sites on the Avon River that were revisited in 2016 showed a marginal increase in RCE scores and no change in fish habitat classification (Table 4).

Water Quality In the 2010 survey, dissolved oxygen was below the ANZECC (2000) threshold limits for the protection of aquatic ecosystems in lowland rivers at all Avon River sites sampled (Table 7a). Turbidity was in excess of the ANZECC limits at 7 of the 8 sites sampled reflecting the increased flow from the recent rainfall events and the degraded channel banks and riparian vegetation in the region. EC and pH were generally within the ANZECC threshold limits (Table 7 and Appendix 4). EC ranged from 81 – 226 µs/cm, with the lowest levels at the upstream Sites 1 and 2 (Appendix 4) and the highest levels at Sites 3 and 4. Waukivory Creek had marginally lower EC than the lower reaches of the Avon River, and as a result inflows from Waukivory Creek appeared to reduce EC in the reach of the Avon River downstream of its confluence (Sites 5 and 6, Appendix 4). This pattern of relatively higher EC in Avon River immediately upstream of Waukivory Creek is similar to that observed during the initial site inspection (Cardno Ecology Lab 2010). EC values recorded during the flow event on 18 November 2010 were generally lower than recorded at the same sites on 15 and 16 November 2010 as EC tends to decline when flows increase in a waterway. There was little difference in water quality at either end of inaccessible reaches in the Avon River (between Sites 5 and 6, and Sites 7 and 8) indicating that further water quality sampling in these sections was unnecessary.

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SPECIALIST CONSULTANT STUDIES GLOUCESTER RESOURCES LIMITED Part 8: Aquatic Ecology Assessment Amended Rocky Hill Coal Project Report No. 806/14

Table 7

Comparison of in situ water quality measurements with ANZECC (2000) threshold limits for lowland watercourses in south-east Australia

Waterway Conductivity Dissolved Oxygen ANZECC (2000) (µs/cm) pH (% sat.)1 Turbidity (NTU)1 Site Limit: 125 - 2200 6.50 - 8.50 85 - 110 6 - 50 a) 2010 Survey 1 Avon River     2 Avon River     3 Avon River     4 Avon River     5 Avon River     6 Avon River     7 Avon River     8 Avon River     9 Waukivory Creek     10 Waukivory Creek     11 Waukivory Creek     12 Waukivory Creek     13 Oaky Creek     14 Oaky Creek     15 Mograni Creek     16 Mograni Creek     17 Gloucester River     18 Gloucester River     19 Gloucester River     b) 2016 Survey 2 Avon River     4 Avon River     5 Avon River     6 Avon River     20 Waukivory Creek     1. Arrows indicate values above or below limits, tick indicates within limits (see Appendix 4 for raw data).

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GLOUCESTER RESOURCES LIMITED SPECIALIST CONSULTANT STUDIES Amended Rocky Hill Coal Project Part 8: Aquatic Ecology Assessment Report No. 806/14

Macrophytes The macrophyte communities in the Avon River were characterised by mat rush (Lomandra longifolia), common rush (Juncus usitatus) (Plate 3a), umbrella sedge (Cyperus eragrostis), spotted knotweed (Persicaria strigosa) (Plate 3b) and the introduced curled dock (Rumex crispus) on the margins of the channel wetted-width (Table 8). These species are generally more common on the banks and are only infrequently inundated during elevated flows. Macrophytes more commonly found within the wetted width included the submerged blunt pondweed (Potamogeton ochreatus) and water milfoil (Myriophyllum latifolium) and the emergent species of water ribbons (Triglochin microtuberosum) (Plate 3c, Table 8). The introduced species Sagittaria platyphylla (Plate 3d) was also observed in the pool edge habitat at Site 5. The native macrophyte species present within the Avon River have a wide distribution and are abundant in similar aquatic habitats elsewhere.

Macroinvertebrates Macroinvertebrate assemblages in the Avon River were moderately to significantly impaired, suggesting pollution and/or local habitat degradation. In total, 58 taxa were recorded from the 8 pool edge sites sampled, ranging from 20 taxa at Site 2 to 30 taxa at Site 1. Three taxa (Caenidae, Dixidae and Ceratopogonidae) recorded in Waukivory Creek were absent from the Avon River samples (Appendix 5). AusRivAS analyses of the Avon River macroinvertebrate assemblages indicated that the river ranged from significantly impaired (Band B) to equivalent to reference condition (Band A) (Table 9). With the exception of Site 1, those sites classified as Band A were only marginally above the upper limit for Band B and some of the taxa predicted to occur at these sites were absent (Table 9). Most O0Signal scores were <4, signifying watercourses with severe pollution and/or degraded habitat as the macroinvertebrate assemblages were dominated by pollution-tolerant taxa. Most OE0 Signal scores were <1, indicating that the assemblages in the Avon River sites had a greater proportion of pollution- tolerant taxa than at equivalent reference (undisturbed) sites (Table 9).

Fishes The Avon River contained moderate fish habitat and was considered a Class 2 Waterway (Table 4, Appendix 3). The waterway contained deep pools, undercut banks, submerged woody debris and limited riffle habitat at Site 6. A culvert at Site 2 created a potential low-flow barrier to fish passage (Plate 4a), but this is well upstream of the Mine Area. Nine species of fish were recorded in Avon River with four or five species recorded at most sites (Table 2, Appendix 7). Assemblages were characterised by long finned eel (Anguilla reinhardtii), small native gudgeons and the introduced mosquito fish (Gambusia holbrooki) (Plates 4 and 6, Appendix 7), which was present at five sites sampled in the Avon River. Freshwater shrimp (Atyidae) and freshwater prawns (Macrobrachium sp.) were commonly caught at each site (Plate 4). Elevated flow conditions reduced the effectiveness of the backpack electrofisher and made it impossible to utilise other methods safely or effectively (e.g. seine nets). CEL staff received anecdotal accounts from several local residents of the presence of larger species, including diadromous fishes such as Australian bass (Macquaria novemaculeata) and sea mullet (Mugil cephalus).

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Aquatic Ecology8: Part CONSULTANTSPECIALIST STUDIES Table 8

Percentage cover of macrophytes recorded within the channel “wetted width” at each site in 2010 Sites Family Name Species Name Common Name 1 2 3 4 5 6 7 8 9 10 11 12 i. Flowering Plants # + Alismataceae Sagittaria platyphylla Sagittaria

Callitriche stagnalis + Assessment Callitrichaceae Starwort Cyperus eragrostis + 2 1 1 2 + 3 1 3 Cyperaceae Umbrella sedge Isolepis inundata + + + + + + Cyperaceae Isolepis Cyperaceae Schoenoplectus validus River clubrush + + +

Haloragaceae Myriophyllum latifolium Watermilfoil 2 1 + +

+ + + + + + + + + + + Juncaceae Juncus usitatus Common rush 1 + + + 1 + + Juncaginaceae Triglochin microtuberosum Water ribbons + Lemnaceae Spirodella sp. Duckweed Poaceae Phragmites australis Common reed 2

+ + Polygonaceae Persicaria decipiens Slender knotweed + + + 2 Polygonaceae Persicaria strigosa Spotted knotweed # + + + + + + + Polygonaceae Rumex crispus Curled dock Potamogetonaceae Potamogeton tricarinatus Floating pondweed 1

Potamogeton ochreatus 8 1 + + + 3 + Potamogetonaceae Blunt pondweed Typha orientalis + + + Typhaceae Cumbungi

Xanthorrhoeaceae Lomandra longifolia Mat rush + + 1 5 2 2 1 2 5 + + 2 LIMITED GLOUCESTER RESOURCES ii. Freshwater Algae

Chara sp. 4 + + Rocky Hill Co Amended Characeae Stonewort # introduced species "+" indicates species is present with cover < 1%

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Table 9

AusRivAs scores for macroinvertebrates from edge and rifle habitat in November, 2010

a. Edge Habitat (Spring 2010)

Site NTE50 NTP50 NTC50 OE50 E50Signal O50Signal OE50Signal E0Signal O0Signal OE0Signal Band ill Coal Project 1 10.41 13 11 1.06 3.93 4.18 1.06 3.96 4.22 1.06 A 2 10.45 13 8 0.77 3.92 4.25 1.08 3.93 3.68 0.94 B 3 10.39 13 9 0.87 3.93 4.11 1.04 3.96 3.38 0.85 A

4 10.47 13 7 0.67 3.92 4.57 1.17 3.93 3.96 1.01 B 5 10.21 13 7 0.69 3.97 4.29 1.08 4.03 3.35 0.83 B

6 10.37 13 9 0.87 3.94 3.56 0.90 3.97 3.67 0.92 A 7 10.64 14 9 0.85 3.88 3.56 0.92 4.05 3.42 0.84 A 8 10.57 14 7 0.66 3.88 3.43 0.88 4.06 3.22 0.79 B 9 12.97 18 10 0.77 4.59 4.30 0.94 4.55 3.58 0.79 B 10 9.34 12 8 0.86 4.09 3.88 0.95 4.23 3.56 0.84 A 11 10.43 13 8 0.77 3.92 4.13 1.05 3.94 3.89 0.99 B 12 10.27 13 8 0.78 3.95 4.25 1.08 4.01 3.67 0.92 B b. Riffle Habitat (Spring 2010)

Site NTE50 NTP50 NTC50 OE50 E50Signal O50Signal OE50Signal E0Signal O0Signal OE0Signal Band CONSULTANTSPECIALIST STUDIES

9 16.26 21 17 1.05 5.75 5.76 1.00 5.78 5.00 0.86 A Aquatic Ecology8: Part Assessment 10 16.46 22 12 0.73 5.63 5.83 1.04 5.62 4.74 0.84 B Ausrivas band categories: Band X = macroinvertebrate assemblage within the Mine Area is richer (more taxa) than the reference condition; Band A = assemblage is similar to the reference condition; Band B = assemblage is significantly impaired relative to the reference condition; Band C = assemblage is severely impaired relative to the reference condition; Band D = the assemblage is impoverished.

SPECIALIST CONSULTANT STUDIES GLOUCESTER RESOURCES LIMITED Part 8: Aquatic Ecology Assessment Amended Rocky Hill Coal Project Report No. 806/14

Plate 3 Macrophytes recorded in the Study Area

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Plate 4 The culvert at Wenham Cox Road crossing of Avon River

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Plate 5 Habitats in Waukivory Creek, November 2010

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Plate 6 Damselfly (suborder Zygoptera) emerging from its aquatic larval stage

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4.2.4.1.2 Waukivory Creek

Site Locations and Condition In 2010, four sites (Sites 9 - 12) were surveyed in Waukivory Creek (Figure 1, Plate 5). Site 9 occurred to the south and upstream of the Mine Area. The other sites sampled at that time occurred adjacent to the Mine Area. Site 20 was located between sites 9 and 10 and was surveyed in February 2016. Site 20 is at the crossing of the proposed private haul road leading to the Stratford Mining Complex.

Waukivory Creek recorded poor to moderate RCE scores (Table 4). Sites 9 (2010) and 20 (2016) recorded the highest RCE score because they had relatively intact riparian vegetation, the channel bed was dominated by pebbles and cobbles and the creek supported short sections of riffle habitat. Further downstream and adjacent to the Mine Area, riparian habitat was degraded or absent entirely, channel banks were steep and often heavily eroded and livestock had unrestricted water access. The channel was dominated by long pool sections and sandy silt substratum, with one small riffle observed at a vehicle river crossing at Site 10.

There were several other notable features at Site 20. There was a small timber bridge that spanned the creek approximately 1 m above the water level at the time of the visit. The width of the channel at the bridge was approximately 9 m. There was flood debris around the timber pylons and on the bridge deck, indicating inundation of the bridge during high flows. Downstream of the bridge was a riffle/run sequence, with a large pool extending directly upstream and downstream of the bridge with a water depth of <1m. The bed of the stream was dominated by cobbles and larger rocks, with a relatively small amount of silt. The edges of the banks contained large trees, including eucalypts, casuarinas and several large, unidentified trees. The edges graded into pasture on each side of the stream. During the visit, several water dragons and a large goanna were observed.

Water Quality Dissolved oxygen and turbidity did not comply with the ANZECC (2000) threshold limits at all four sites sampled in 2010 (Table 7a) nor at Site 20 sampled in 2016 (Table 7b). Turbidity exceeded ANZECC limits in 2010 but was below the limit at Site 20 in 2016, reflecting the increased flow from the preceding rainfall events in 2010 and the degraded channel banks and riparian vegetation in the region. EC and pH were generally within the ANZECC threshold limits in 2010 (Table 7a, Appendix 4), but EC exceeded the limit in 2016 (Table 7b). EC ranged from 102 – 138 µs/cm in 2010, but was marginally less than the Avon River above its confluence with the Avon River. In 2016, the average EC at Site 20 was 3,049 µS/cm (SE = 3.1, n = 8). This was similar to the sites sampled on the Avon River at that time, suggesting a broad-scale difference between the samples taken in 2010 and 2016.

Macrophytes Fewer macrophytes were recorded in Waukivory Creek than in the Avon River. This may be due to several factors, including the small river order and larger percentage of hard substratum in Waukivory Creek; or to fewer sites being sampled there (4 sites along Waukivory Creek, 8 sites along Avon River – Figure 1). The macrophyte communities at the Waukivory Creek sites were dominated by the same taxa that characterised the Avon River assemblages, namely mat rush, umbrella sedge, common rush, water ribbons and blunt pondweed (Table 8). These macrophyte species are ubiquitous and abundant elsewhere. Macrophytes were similar in

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2016 to 2010, with Site 20 on Waukivory Creek being similar to other sites on Waukivory Creek sampled in 2010. Site 20 was characterised by Lomandra and small amounts of Juncus growing along the channel edge and fine, short algae growing on rocks within the channel but with no observed instream macrophytes at that site.

Macroinvertebrates Macroinvertebrate assemblages indicated that Waukivory Creek was moderately to significantly impaired, reflecting pollution and/or local habitat degradation. In total, 39 and 28 taxa were recorded from four pool edge samples and two riffle samples respectively, ranging from 19 taxa in the Site 10 riffle to 27 taxa in the Site 10 pool edge (Appendices 5 and 6). AusRivAS analyses of the macroinvertebrate assemblages indicated that both riffle and pool edge habitat Waukivory Creek ranged from significantly impaired (Band B) to equivalent to reference condition (Band A) (Table 9). While the Site 10 edge sample was classed as Band A, they were marginally above the upper limit for Band B and some of the taxa predicted to occur at this site were absent.

All edge O0Signal scores were <4, signifying severe pollution and/or degraded habitat as the macroinvertebrate assemblage was dominated by pollution-tolerant taxa. Similarly, all edge OE0 Signal scores were <1, indicating that the assemblages in Waukivory Creek pool edge habitat had a greater proportion of pollution-tolerant taxa than at equivalent reference sites (Table 9). Although riffle habitat was less common in the creek, it was less degraded than edge habitat. Signal scores for this habitat indicated an assemblage experiencing mild to moderate pollution or disturbance and the riffle assemblage at Site 9 was equivalent to reference condition.

In 2016, AusRivAS sampling was not undertaken; however, random passes with sweep nets through in-stream habitat yielded a range of taxa, including crustaceans, (Paratya and Macrobrachium), dragonflies (Odonata), mayflies (Ephemeroptera) and midges (Chironomidae).

Fishes Waukivory Creek contained moderate fish habitat and is considered a Class 2 Waterway (Table 4, Appendix 3). It contained deep pools, undercut banks, some submerged woody debris and riffle habitat in upstream sections. A four-box culvert at Site 9 would present a barrier to upstream fish passage during periods of low flow. Six species of fish were recorded from the creek and, as with the Avon River, the fish assemblage was dominated by long finned eels, gudgeons and mosquito fish (Appendix 7). In 2016, long finned eels, gudgeons and mosquito fish were collected by electrofishing at Site 20. Freshwater shrimp and freshwater prawns were also recorded by electrofishing at each site. Elevated flow conditions reduced the effectiveness of the backpack electrofisher in 2010 and made it impossible to utilise other methods safely or effectively (e.g. seine nets). Given the suitable habitat and lack of downstream barriers to passage, many diadromous species whose natural distribution includes the Manning River catchment would be expected to occur in the sections of Waukivory Creek inspected for this investigation.

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4.2.4.1.3 Oaky Creek

Site Locations and Condition Two sites (Sites 13 and 14) were surveyed in Oaky Creek in 2010 (Figure 1, Plate 6c and d). Site 14 was at the Waukivory Road crossing of Oaky Creek, a short distance upstream of its confluence with Avon River. Site 13 was further upstream, adjacent to the McKinleys Lane turn off.

Site 14 was considered to be highly degraded: riparian habitat was virtually absent, dominated instead by pasture grasses and annual weeds. Downstream of the road crossing the banks of the creek consisted of steep and heavily eroded bare soil. The channel bed was composed of loose fine sediments that had accumulated at several points, braiding the channel and providing habitat for annual weeds. The riparian habitat at Site 13 was less degraded than Site 14, but it was still substantially modified. Bank erosion at Site 13 was present but less prevalent, and the channel bed was composed primarily of cobble and pebble (Table 4).

Water Quality EC, pH and turbidity at both sites in this creek were within relevant ANZECC thresholds for protection of aquatic ecosystems (Table 6). Dissolved oxygen concentration was below the lower ANZECC threshold. EC was greater than at Site 6 in the Avon River, just downstream of the confluence of these two watercourses. Although elevated flows in November 2011 reduced Oaky Creek EC relative to the values recorded during the site inspection in October, the pattern of increasing EC from Site 13 to Site 14 in Oaky Creek and the higher EC at Site 14 than at Site 6 in Avon River, remained the same at both times.

Macroinvertebrates and fish were not sampled in Oaky Creek due to the limited habitat within the creek. Field observations indicated that the creek provided minimal fish habitat and it was thus was considered to be a Class 3 Waterway (Table 4).

4.2.4.1.4 Mograni Creek

Site Locations and Condition Two sites (Sites 15 and 16) were sampled in 2010 for water quality and habitat characteristics in Mograni Creek (Plate 7a and b). Site 16 occurred approximately 1.5km upstream from the confluence of Mograni Creek with the Avon River. Site 17 was located further upstream at the Mograni Creek Road crossing (Figure 1).

Both sites were degraded and had relatively poor RCE scores (Table 4). Riparian habitat was generally narrow and incomplete or absent entirely. Pasture grasses and annual weeds only partially stabilised eroded banks and livestock access was common.

Water Quality EC and pH were within ANZECC thresholds for the protection of aquatic ecosystems at both sites (Table 5). EC was greater in Mograni Creek than in the Avon River at Site 8, just upstream of the Mograni Creek confluence (Appendix 4). Dissolved oxygen and turbidity exceeded the ANZECC thresholds at both sites.

Mograni Creek provided moderate fish habitat and was considered a Class 2 Waterway (Table 4).

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Plate 7 Site 15, view downstream, Mograni Creek

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4.2.4.1.5 Gloucester River

Site Locations and Condition Sites 17 - 19 were sampled in 2010 for water quality and habitat characteristics in the Gloucester River (Plates 6c and d). Sites 17 and 18 occurred upstream of the Avon River confluence, to the west and north of Gloucester respectively; Site 19 was on the Gloucester River 500m downstream of the Avon River confluence (Figure 1). The position of the sites was designed to indicate the effect (if any) of the Avon River discharge on the water characteristics of the larger Gloucester River.

The Gloucester River sites varied in habitat quality, but was generally high (Table 4: RCE values ranged from 31 to 40). Site 18 had a broad and complete riparian zone, with frequent alternation of riffle and pool habitat and little accumulation of loose sediments. In contrast, riparian vegetation was absent from large sections of Site 19, erosion was severe and bank collapses prevalent (Table 4).

Water Quality At Sites 17 and 18 (upstream of the Avon River confluence) pH and turbidity were within ANZECC thresholds and mean EC was just below the ANZECC lower limit. Downstream of the confluence at Site 19, the EC was slightly greater (but within ANZECC limits) and turbidity exceeded the upper ANZECC limit. Dissolved oxygen levels at all three sites were outside the ANZECC threshold limits.

Gloucester River provided major fish habitat and was considered a Class 1 Waterway (Table 4). Anecdotal accounts received during field studies indicated the presence of freshwater catfish (Tandanus tandanus) and larger diadromous species (e.g. Australian bass and sea mullet).

4.2.4.1.6 Unnamed Watercourses within the Mine Area

Site Locations and Condition Five unnamed watercourses and two dams were surveyed on the Mine Area during the site inspection in October 2010 (Plates 8 and 9).

The watercourses all drained into Oaky Creek, Waukivory Creek or Avon River. In terms of quality of aquatic habitat, they were considered to be degraded and ephemeral, often consisting only of an indistinct channel that had been colonised by pasture grasses. Further, they were considered unlikely to provide fish habitat (Class 4 watercourses). Water would pool occasionally in these watercourses in association with single pipe culverts across McKinleys Lane, which supported low-diversity macrophyte assemblages dominated by cumbungi (Typha orientalis) which is tolerant of low flows (Plate 8a and c). The EC within these ephemeral pools was often higher than the other watercourses within the Study Area.

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Plate 8 Unnamed ephemeral watercourses within the Mine Area, October 2010

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Plate 9 Pond at south western end of the Mine Area (October 2010)

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Two small dams were inspected on the most southern of these watercourses, approximately 250m east of Site 11 on Waukivory Creek, on the creek floodplain within the Mine Area (Plate 9). Both were in open pasture and had been degraded by livestock. Common rush, pasture grasses and cumbungi fringed the pond edges and dense duckweed blanketed much of outer wetted width. The macrophyte water milfoil and mosquito fish were abundant. Three further dams were present on this same waterway upstream of McKinleys Lane. At the time of the site inspection, access to these dams was not possible. Observations from the roadway and Google Earth indicated that the dams supported similar artificial and degraded lentic (still water) habitat and biota to those dams surveyed downstream.

These watercourses and dams had low ecological value with regard to the relevant aquatic species considered in this report and it was not considered necessary to include further sampling in subsequent field assessments.

4.2.5 Results - Stygofauna

4.2.5.1 Borehole Depths and Water Chemistry

Water samples were collected from boreholes within the three groundwater systems at the following depths.  Alluvium groundwater system at approximately 10m below ground level on average.  Interburden groundwater system at approximately 33m depth.  Coal seam groundwater system at approximately 77m depth (Tables 10 and 11).

The average volume of water per sample ranged from about 35 L (interburden) to 38 L (alluvium and coal seams). pH ranged from 6.19 to 11.90 pH units (Table 2, Table 11, Figure 5) and was relatively consistent across all boreholes, with the exception GRP6a where pH was highly alkaline (Figure 5). Mean EC was generally high across all boreholes, but was variable, even within different groundwater systems, ranging from 1240 µS/cm to 7690 µS/cm. The highest ECs were recorded in GRP1 (alluvium), GRP4 and GRP9 (interburden) and GRP8a (coal) (Figure 5). AGE (2016) noted poor water quality in parts of the alluvium system, which indicated connectivity across the groundwater systems. More detailed descriptions of water chemistry are provided by AGE (2016).

4.2.5.2 Invertebrates

In total, 432 individuals from nine invertebrate taxa were collected during the survey (Table 11). A broad breakdown of the collection among groundwater system types yielded the following.  Alluvium groundwater system – 384 individuals from 5 taxa.  Interburden groundwater system – 44 individuals from 9 taxa.  Coal groundwater system – 4 individuals from 3 taxa.

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Aquatic Ecology8: Part SPECIALIST Table 10

Summary of aquifer depth, water volume sampled and invertebrates collected

Total Mean Mean Taxon Abundance

Aquifer Type Depth Volume CONSULTANTSTUDIES Terrestrial (mbgl)* of Water Collembola Collembola Acarina Acarina Acarina Nematoda Chironominae (winged) Oligochaeta Pumped #1 #2 #1 #2 #3 (L) invert

Assessment Alluvium (n=12) Mean 9.75 38.18 0.18 0.00 32.18 1.82 0.00 0.00 0.00 0.64 0.09 Standard Error 0.76 3.39 0.11 0.00 29.01 1.57 0.00 0.00 0.00 0.35 0.08 Interburden (n=15)

Mean 33.00 35.40 0.40 0.00 0.73 1.47 0.00 0.13 0.00 0.20 0.00 Standard Error 2.74 3.19 0.16 0.00 0.67 1.47 0.00 0.09 0.00 0.11 0.00 Coal (n=10) Mean 76.75 38.00 0.00 0.10 0.00 0.00 0.10 0.00 0.10 0.10 0.00 Standard Error 6.90 4.16 0.00 0.10 0.00 0.00 0.10 0.00 0.10 0.10 0.00 Sampled in April-May 2011 n = number of bores x sample times for each aquifer type * Statistics for total depth below ground had sample sizes (i.e. number of bores) of 4, 5 and 4 for alluvium, interburden and coal aquifers, respectively.

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Table 11

Invertebrates collected from boreholes Volume Taxon Bore Aquifer Date of Water Terrestrial pH EC Collembola Collembola Acarina Acarina Acarina Totals Code Type Sampled Pumped Nematoda Chironominae (winged) Oligochaeta #1 #2 #1 #2 #3 (L) invert GRP1 Alluvium 26/04/2011 75 6.44 6300 0 0 0 0 0 0 0 0 0 0 GRP1 11/05/2011 35 6.85 6790 0 0 0 0 0 0 0 0 0 0 GRP1 23/05/2011 35 6.49 6280 0 0 0 0 0 0 0 1 0 1 GRP2 Alluvium 27/04/2011 35 6.19 1900 0 0 0 0 0 0 0 0 0 0

GRP2 11/05/2011 35 6.70 2060 1 0 0 0 0 0 0 0 0 1 GRP2 23/05/2011 35 6.21 1750 0 0 0 0 0 0 0 0 0 0 GRP3 Alluvium 27/04/2011 35 6.58 3610 0 0 4 1 0 0 0 4 0 9

GRP3 11/05/2011 35 6.86 3660 0 0 350 19 0 0 0 0 1 370 GRP3 23/05/2011 35 6.55 3930 0 0 0 0 0 0 0 0 0 0 GRP4 Interburden 27/04/2011 35 6.22 6420 1 0 0 0 0 0 0 0 0 1 GRP4 11/05/2011 65 6.14 7690 0 0 0 0 0 0 0 0 0 0 GRP4 23/05/2011 35 5.75 7180 1 0 0 0 0 0 0 0 0 1 GRP5 Interburden 27/04/2011 30 6.46 3680 0 0 0 0 0 1 0 0 0 1 GRP5 11/05/2011 35 6.52 3990 0 0 0 0 0 0 0 0 0 0 GRP5 23/05/2011 20 6.27 4050 0 0 10 22 0 1 0 1 0 34 GRP6 Interburden 26/04/2011 30 6.85 2580 0 0 0 0 0 0 0 0 0 0 GRP6 11/05/2011 50 6.90 2860 2 0 0 0 0 0 0 0 0 2 GRP6 25/05/2011 35 6.83 2800 0 0 0 0 0 0 0 0 0 0 GRP6a Coal 26/04/2011 30 11.90 4180 0 0 0 0 1 0 0 0 0 1 GRP6a 13/05/2011 65 9.06 3960 0 0 0 0 0 0 0 0 0 0 GRP7 Alluvium 26/04/2011 30 6.98 1350 0 0 0 0 0 0 0 0 0 0 GRP7 11/05/2011 35 7.50 1520 1 0 0 0 0 0 0 2 0 3

SPECIALIST CONSULTANTSPECIALIST STUDIES GRP7a Coal 26/04/2011 30 7.20 3370 0 1 0 0 0 0 1 0 0 2

GRP7a 13/05/2011 30 7.15 3720 0 0 0 0 0 0 0 0 0 0 Aquatic Ecology8: Part Assessment GRP8 Interburden 27/04/2011 30 7.02 5680 1 0 0 0 0 0 0 0 0 1 GRP8 11/05/2011 33 7.03 5380 0 0 0 0 0 0 0 0 0 0 GRP8 25/05/2011 35 6.90 4970 0 0 0 0 0 0 0 1 0 1 GRP8a Coal 27/04/2011 35 7.14 6490 0 0 0 0 0 0 0 0 0 0 GRP8a 13/05/2011 30 7.09 5910 0 0 0 0 0 0 0 0 0 0 GRP8a 25/05/2011 35 6.95 5720 0 0 0 0 0 0 0 1 0 1 GRP9 Interburden 27/04/2011 13 6.68 7610 1 0 0 0 0 0 0 0 0 1 GRP9 11/05/2011 50 6.82 7560 0 0 1 0 0 0 0 1 0 2 GRP9 23/05/2011 35 6.61 6880 0 0 0 0 0 0 0 0 0 0 GRP9a Coal 27/04/2011 30 6.58 4180 0 0 0 0 0 0 0 0 0 0 GRP9a 13/05/2011 60 6.76 4470 0 0 0 0 0 0 0 0 0 0 GRP9a 25/05/2011 35 6.36 4540 0 0 0 0 0 0 0 0 0 0 Totals 8 1 365 42 1 2 1 11 1 432 Sampled on three occasions in April-May 2011

SPECIALIST CONSULTANT STUDIES GLOUCESTER RESOURCES LIMITED Part 8: Aquatic Ecology Assessment Amended Rocky Hill Coal Project Report No. 806/14

8 000

6 000

4 000

2 000

Figure 5 Mean (± 1SE) per groundwater borehole for pH (pH units) and Electrical Conductivity EC (µS/cm) sampled over time within three groundwater systems. n = 3 for all boreholes except GRP6a and 7a, where n = 2. See Figure 2 for position of boreholes.

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Plate 10 Bore water from the Mine Area being pumped over a 63 µm sieve to retain potential stygofauna

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Nineteen of the samples did not contain any invertebrates – of the 17 samples containing invertebrates, eight contained only terrestrial (winged) taxa or Collembola, which are not aquatic. The other nine samples contained a mixture of Acarina (mites), Nematoda (roundworms) and Oligochaeta (segmented worms). These taxa may occur in soil and groundwater habitats and may be derived from either and hence they are not considered to be obligate stygofauna.

The mites (Acarina #1 and #3 – Tables 10 and 11) were eyeless and lacking pigment, which are common traits of groundwater fauna, but these features also can occur in soil fauna. Crustaceans such as Copepoda, Amphipoda and Syncarida, which are considered to be obligate groundwater taxa, were not found in any of the samples. Acarina #1 occurred in one of the alluvium boreholes (GRP3) at all three times of sampling and in one of the interburden boreholes (GPR5) on the third sampling occasion. Acarina #3 was sampled from GPR5 on times 1 and 2 (Table 11). Both these boreholes had ECs above the level considered optimal for stygofauna (i.e. GPR3: range 3610 – 3930 µS/cm, GPR5: 3680 – 4050 µS/cm).

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GLOUCESTER RESOURCES LIMITED SPECIALIST CONSULTANT STUDIES Amended Rocky Hill Coal Project Part 8: Aquatic Ecology Assessment Report No. 806/14 5. THREATENED SPECIES I S S U E S F O R AQ U AT I C ECOSYSTEMS

5.1 METHODS

Threatened species, populations and endangered ecological communities (EECs) that do or may occur within the vicinity of the Study Area were identified by reviewing the current listings on databases maintained by Commonwealth Department of Sustainability, Environment, Water, Population and Communities (DSEWPaC), NSW Fisheries and the EPA. Database searches were originally undertaken on 3 December 2010 and revised on 4 September 2012 and 25 February 2016. The following search tools were used:  The DSEWPaC Environmental Reporting Tool: used to determine relevant matters of National Environmental Significance (NES) listed under the schedules of the EPBC Act pertaining to the Study Area. The search area was the Gloucester Local Government Area (LGA)  The NSW Fisheries Threatened and Protected Species Record Viewer: used to search for records of relevant threatened and protected species listed by Schedules 4, 4A and 5 of the FM Act occurring in the Gloucester LGA and the broader Hunter – Central Rivers Catchment Management Authority (CMA) area;  The NSW BioNet website for the Atlas of NSW Wildlife (Office of Environment and Heritage): used to determine whether relevant threatened species, populations or aquatic EECs listed under the TSC Act were present. The Karuah Manning CMA sub-region was selected as the search region;  Threatened species listed by the Gloucester Shire Council Comprehensive State of Environment Report (2009);

Searches were also done for the presence of significant or critical aquatic habitat present within the vicinity of the Study Area, such as Ramsar wetlands.

5.2 RESULTS

Database and literature searches indicated that one relevant threatened aquatic species - tall knotweed (Persicaria elatior) may either occur or suitable habitat for it may occur within the Gloucester LGA, that is, an area substantially larger than the Study Area (Table 12). Tall knotweed was not observed during the field survey and the likelihood of its occurrence within the Study Area was considered small, either due to a lack of suitable habitat or the highly modified nature of its preferred habitat. As such, tall knotweed is not considered to be a constraint to the amended Project.

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SPECIALIST CONSULTANT STUDIES GLOUCESTER RESOURCES LIMITED Part 8: Aquatic Ecology Assessment Amended Rocky Hill Coal Project Report No. 806/14

Table 12

Relevant threatened and protected aquatic species which may occur, or suitable habitat may occur, within the vicinity of the Study Area

a. List of scheduled aquatic species under the EPBC Act relevant to the amended Project. Common Name Scientific Name Category Vulnerable Species Tall knotweed Persicaria elatior Aquatic plant b. List of scheduled aquatic species under the TSC Act relevant to the amended Project. Common Name Scientific Name Category Vulnerable Species Tall knotweed Persicaria elatior Aquatic plant

5.2.1 Listings under the EPBC Act

5.2.1.1 Threatened Species

The DSEWPaC Environmental Reporting Tool indicated that no relevant threatened species or suitable habitat occurred in the vicinity of the Study Area. However, tall knotweed (Persicaria elatior) is listed as threatened under both the EPBC Act and the TSC Act. The OEH BioNet search tool indicated tall knotweed is present within the Karuah Manning sub-region of the Hunter – Central Rivers Catchment. The discrepancy between the two search tools is due to the wider area searched by the OEH BioNet search tool (see Section 5.2.3).

Tall knotweed grows on sandy, alluvial soil in swampy areas and riparian herb lands along watercourses and lake edges. Associated plant species include Melaleuca linearfolia, M. quinquenervia, Pseudognaphalium luteoalbum, Persicaria hydropiper and Floydia praealta. Relatively little is known about the extent of the species’ historical distribution or its ecological requirements. Major threats to tall knotweed include localised disturbance from clearing and track maintenance and hydrological changes to wetlands.

The OEH website lists tall knotweed as ‘known’ to occur in the Karuah – Manning and Hunter sub regions of the Hunter – Central Rivers Catchment Management Region. There are three records of tall knotweed from the area around Raymond Terrace, just north of Newcastle and approximately 85km south of the Study Area. These records are confined to the Hunter River and Karuah River catchments. There are no records from within the Manning River catchment and the species was not observed despite a targeted search in the Study Area. While it is possible habitat for tall knotweed occurs within the Study Area, this is only because of OEH’s somewhat ambiguous definition of the species’ listed habitat requirements, which are ubiquitous throughout NSW. It is considered unlikely that tall knotweed occurs within the Study Area.

As such, it was not necessary to include this species in the referral to Commonwealth Minister for DSEWPaC (then SEWPaC) submitted on 5 April 2012 (see Section 2.2). Tall knotweed is not considered to be a constraint to the amended Project.

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GLOUCESTER RESOURCES LIMITED SPECIALIST CONSULTANT STUDIES Amended Rocky Hill Coal Project Part 8: Aquatic Ecology Assessment Report No. 806/14 5.2.1.2 Invasive Species

The DSEWPaC Environmental Reporting Tool indicated that the invasive aquatic weed Salvinia (Salvinia molesta) may either occur or suitable habitat for it may occur in the vicinity of the Study Area.

Salvinia is a Weed of National Significance. It poses a significant environmental and economic threat and is highly invasive. The species can rapidly spread from small single plants and infest still or slow-moving watercourses, displace and shade out native aquatic vegetation, impede oxygen exchange and making the water unsuitable for fish and other animals. Salvinia spreads downstream during flooding and colonises new catchments by human activities, intentionally or attached to boats and other aquatic equipment.

Salvinia has been declared a Class 3 Noxious Weed in the Gloucester LGA and as such “the plant must be fully and continuously suppressed and destroyed”. Class 3 noxious weeds are plants that pose a serious threat to primary production or the environment of an area, are not widely distributed in the area and are likely to spread in the area or to another area.

Salvinia was not observed within the Study Area during the site inspections. There was ample low-velocity waterway habitat within the Study Area and although it is possible it was not observed because prior flow events had washed colonies downstream or that it persists in private water storages such as farm dams, its presence or absence within the Study Area cannot be confirmed.

5.2.1.3 Key Threatening Processes

There are no Key Threatening Processes listed under the EPBC Act relevant to the amended Project and the aquatic ecology of the Study Area.

5.2.2 Threatened Species Conservation Act 1995 (TSC Act)

5.2.2.1 Threatened Species

The Wildlife Atlas Search and BioNet tools indicated that the macrophyte tall knotweed may either occur or suitable habitat for it may occur in the vicinity of the Study Area (Table 11). Tall knotweed is listed as vulnerable under the TSC Act.

It is unlikely that tall knotweed occurs within the Study Area (see Section 5.2.2.1).

5.2.2.2 Key Threatening Processes

Two key threatening processes listed under Schedule 3 of the TSC Act are relevant to the amended Project. 1. Alteration to the natural flow regimes of rivers and streams and their floodplains and wetlands; and 2. Predation by Gambusia holbrooki Girard, 1859 (plague minnow or mosquito fish).

Both these processes are addressed in Section 6 of this report.

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SPECIALIST CONSULTANT STUDIES GLOUCESTER RESOURCES LIMITED Part 8: Aquatic Ecology Assessment Amended Rocky Hill Coal Project Report No. 806/14 5.2.3 Fisheries Management Act 1994 (FM Act)

5.2.3.1 Threatened Species, Populations and Endangered Ecological Communities

No species, populations or EECs listed as protected or threatened under the FM Act were considered likely to occur or that suitable habitat for them may occur in the vicinity of the Study Area.

5.2.3.2 Protected Species and Habitats

Aquatic habitat protected in NSW under the Fish Habitat Protection Plan No.1 is present in the Study Area and in downstream areas. This includes wetlands, sand and gravel substrata, reed beds and other aquatic plants, large woody debris and rocks. Section 1.2 of NSW Policy and Guidelines: Aquatic Habitat Management and Fish Conservation (Smith and Pollard 1999, Fairfull 2013) requires environmental compensation (creation of new habitat of the type lost) on a 2:1 basis where a significant environmental impact on protected aquatic habitat is unavoidable.

The amended Project would involve the loss of all aquatic habitat and biota only from ephemeral watercourses and water bodies within the area of disturbance within the Mine Area (Figure 6). This loss, however, is not considered to be significant given the low ecological value of the aquatic habitat within the areas of planned disturbance within the Mine Area. Therefore, this is not considered a constraint to the amended Project.

Invasive Species The invasive macrophyte Sagittaria platyphylla was observed in the Avon River at Site 5. Sagittaria has been declared a Class 5 noxious weed in the Gloucester Shire. There are no requirements for landowners or occupiers to control existing plants of Class 5 weeds. However, the weeds are "notifiable" and a range of restrictions on their sale and movement exists.

5.2.3.3 Key Threatening Processes

Four key threatening processes listed under the FM Act are relevant to the proposed works: 1. Degradation of riparian vegetation; 2. Removal of large woody debris from NSW rivers and streams; 3. Installation of instream structures and mechanisms that alter natural flow; and 4. Introduction of fish to fresh waters within a river catchment outside their natural range.

These processes are assessed in Section 6 of this report.

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Figure 6 Proposed Layout of Mine Area (Source: RW Corkery & Co Pty Limited)

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SPECIALIST CONSULTANT STUDIES GLOUCESTER RESOURCES LIMITED Part 8: Aquatic Ecology Assessment Amended Rocky Hill Coal Project Report No. 806/14 6. ASSESSMENT OF IMPACT S

6.1 SUMMARY OF ASPECTS OF THE AMENDED PROJECT RELATING TO AQUATIC ECOLOGY

Key aspects of the amended Project that are relevant to aquatic ecology issues are summarised from the EIS as follows.

6.1.1 Key Mine Components Relevant to Aquatic Ecology

Figure 2.5 from the EIS displays the conceptual layout of the Mine Area, including the following major components.  The Mine Area entrance off McKinleys Lane, approximately 50m south of the intersection with Waukivory Road.  An administration area, incorporating site offices, amenities, workshop, water treatment plant and ancillary facilities. The administration area is located on land off McKinleys Lane and would be accessed by a private road, referred to as the Mine Area access road, which would be aligned generally parallel to and immediately east of McKinleys Lane.  Three contiguous open cut pits (Avon, Bowen Road and Main) varying in depth from approximately 80m to 220m. Though based on current planning, the open cut pit depths nominated are approximate only given the steeply dipping nature of the coal seams, the extent of geological knowledge, and the potential effects of changes in controlling economic factors. The ultimate depths of development in each open cut pit would reflect the optimisation of coal quality, the outcomes of detailed planning as coal extraction progresses and market factors.  A series of interim and long term amenity barriers to visually screen areas of activity and/or to provide for noise mitigation. The upper surfaces of the barriers would either mimic the existing underlying landform or provide a variable comparatively natural appearance. The barriers would either be stand-alone structures (i.e. the western and northern amenity barrier) or comprise the western faces of the permanent overburden emplacement as it is progressively developed (i.e. the interim amenity barriers).  A consolidated in-pit overburden emplacement and permanent out-of-pit overburden emplacement extending to the west of the open cut pits. An interim overburden emplacement which would be located to the north of the permanent overburden emplacement but would be removed at the cessation of coal extraction to provide some of the backfill for the final void in the Main Pit.  A ROM pad and associated breaker station comprising a feed conveyor, rotary breaker, a sized coal conveyor and a nominal 500t capacity overhead sized coal bin from which 60t nominal capacity road-registered trucks would be loaded. The ROM pad would have a capacity to store approximately 80 000t of coal awaiting processing through the breaker station, i.e. sufficient capacity for approximately two weeks production at the maximum scheduled

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production rate. A sump constructed within the ROM pad would capture runoff from the pad. The sump would be provide a relatively impervious surface and would be drained periodically, with the captured water disposed-of appropriately.  A 5km section of re-located 132kV power line and a new 11kV power line providing power for the on-site operations. The remaining sections of the re- located 132kV power line and the 11kV power line lie external to the Mine Area within the defined power line corridors.

Figure 2.8 from the EIS displays the 4.4km private haul road comprising a minimum 7m seal on a 10m formation extending between the sized coal bin and the boundary of ML1733, the northern extent of the Stratford Mining Complex. The private haul road would link with a section of new road to be constructed within ML1733 and then into the existing on-site haul road system within the Stratford Mining Complex. Waukivory Creek would be spanned by a prefabricated steelframe bridge. The crossing of Waukivory Creek would be designed to conform with environmental requirements of NSW DPI (Fisheries).

An important component of the Mine Area layout includes the construction of diversion channels running north-south on the eastern side of the Mine Area. The role of these channels is to intercept surface water flowing onto the Mine Area from the steeper eastern slopes. Water would be diverted to the north into Oaky Creek and to the south into Waukivory Creek. Importantly, as none of the diverted water would flow though the Mine Area, it would have a water quality similar to existing runoff in that area. Ultimately, the channels would be decommissioned at the completion of mining to re-instate patterns of pre-mining drainage.

Other components of the amended Project include access roads, work buildings and various services, including water supply, fuel storage, materials storage areas and a sewerage system which would be of a size suitable for the workforce at the Mine Area. Additionally, there would be some off-site works required to upgrade traffic and transport infrastructure in the area. Of relevance to aquatic ecology is the proposed replacement of the existing bridge across the Avon River at Jacks Road.

It is expected that the first coal would be dispatched for export approximately 20 months after the commencement of the site-establishment and construction stage. Based on the proposed production schedule, mining would continue for approximately 16 years. Rehabilitation of areas of disturbance would be undertaken progressively throughout the operational life of the mine, with the final rehabilitation activities including the backfilling of the residual void in the area of the Main Pit using materials reclaimed from the interim out-of-pit emplacement and the western and northern amenity barrier, and revegetation of the remaining areas of disturbance occurring over a three year period after completion of coal extraction activities. Thus, there would be no void remaining once the mining and rehabilitation have been completed. Temporary rehabilitation of interim surfaces would be undertaken to minimise the potential for dust emission and erosion and sedimentation. In the short to medium term, the objective of rehabilitation would be to stabilise all earthworks, amenity barriers, watercourses and other disturbed areas. In the longer term, the objectives would be to undertake rehabilitation to: create a landform that would be safe, stable, sustainable and suitable for long term agriculture; re-instate a small proportion of the landform with native vegetation; to provide fauna habitat and corridors; and to ensure that mining leases over the rehabilitated land can be relinquished and security returned within a reasonable timeframe.

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The final landform has been planned through the use of the following domains. 1. Open cut pits and permanent out-of-pit emplacements. These would have comparable form and drainage patterns, but would be up to 45m higher than the pre-mining landform within the permanent overburden emplacement. Watercourses would direct runoff to Waukivory Creek or Oaky Creek or onto adjoining land to the west. A series of farm dams would be constructed on watercourses as sediment-control structures and as long term water supply for grazing. 2. Interim out-of-pit emplacement. Materials would be recovered on completion and used to partly backfill the Main Pit to create the final landform in this section of the Mine Area. The final landform in this area would be comparable to the pre- mining condition in terms of elevations, slopes and watercourses and these lines would also have dams constructed on them to control sediment and provide a water supply for stock. 3. Western and northern amenity barrier. Following removal of materials in Domain 2, materials in the western and northern amenity barrier would be recovered and used to backfill the remaining void in the Main Pit. The final landform in this area would be comparable to the pre-mining landform with gentle slopes to Waukivory Creek. The dams adjacent to the footprint of the former amenity barrier would be retained to control any sediment-laden runoff during the final rehabilitation phase and to provide a source of stock water following the return of the land to a grazing land use. 4. Mine area infrastructure. The internal road network around the margins of proposed operational areas would be generally retained at the same elevation and with comparable drainage.

6.1.2 Water Management

The management of water for the amended Project, including volumes, flow rates and water quality, will be crucial for ensuring the protection of aquatic ecosystems in the Study Area. Water for the mining operations would be obtained from four source: 1. Groundwater and surface water accumulating within the various open cut pits throughout the mine life. 2. Surface water drawn from on-site sediment control or water storage dams. 3. Waukivory Creek and/or Avon River within the limitation of GRL’s existing water access licences. Water from this source would be used only in the event that inadequate water can be obtained from Sources 1 and 2 and in accordance with any limitation/restriction on extraction from those sources. 4. Treated water from the water treatment plant would be used to improve the quality of the water from Source 1. 5. Gloucester township water supply for potable water requirements that would be trucked into the Mine Area and stored on-site in tanks.

This issue is dealt with in detail within the EIS and specialist reports on surface water (WRM, 2016) and groundwater (AGE, 2016).

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6.1.2.1 Surface Water

WRM (2016) undertook a range of studies on watercourses within and adjacent to the Mine Area, including geomorphology, flooding issues and water quality. The southern part of the western and northern amenity barrier within the Mine Area would impinge slightly on the floodplain of Waukivory Creek but this would have only a very small effect on flood levels and flood flows. The barrier itself would prevent any floodwaters from Waukivory Creek from entering the area of disturbance caused by mining. Water quality was assessed as being moderate compared against 95% protection levels for aquatic ecosystems, as listed by ANZECC (2000). Elevated baseline conductivity (more so in the Avon River than Waukivory Creek), some metals (e.g. cadmium, copper, lead and zinc), total nitrogen and total phosphorous were recorded at some sites and times.

Management of water for the amended Project would have three zones (WRM 2016): 1. Saline Water Zone. This would be used to manage saline groundwater seepage and surface runoff from pit areas. Electrical conductivity levels in this water would be high and there would be a risk of elevated concentrations of dissolved metals. This water would be managed within a closed system without release to the broader environment. During the first 12 years of operation, water collecting in the pits would be transferred to two environmental dams, located immediately east of the western and northern amenity barrier. These dams would have an operating level set at 1:100 ARI without overtopping. This water would form the first priority water source for dust suppression. From Year 13 onwards, this water would be managed with a single large dam constructed above the former Avon and Bowen Road Pits. 2. Dirty (sediment-laden) Water Zone. This would comprise runoff from overburden emplacements and would be directed to a series of sediment dams constructed upslope of the proposed amenity barriers. After settlement of suspended sediments in these dams, the water would be suitable for release in accordance with site-licence discharge conditions. 3. Clean Water Zone. This system would comprise clean water diversion channels to intercept clean water before entering areas of disturbance and to direct water from rehabilitated areas away from areas of disturbance. Temporary clean water diversion channels constructed upslope of operations to direct water from steep local catchments around the area of disturbance. One channel would direct water south into Waukivory Creek; the other would direct water to the north to Oaky Creek. These channels would largely follow natural contours of hill slopes, have a gentle gradient, and be grass-lined (except at areas of exposed bedrock). The section of each channel just prior to entering the receiving creeks would be rock- lined to prevent erosion in the channel and dissipate energy before the water flows into the receiving creeks. The amenity barriers (particularly the western and northern amenity barrier) would serve as flood levees to protect operational areas during flooding of Waukivory Creek and the Avon River.

The amended Project also incorporates a water treatment plant on-site which, for Year 4 onwards, will treat approximately 2.5ML/day water from the saline water zone. All treated water from the treatment plant would be pumped from the plant to adjacent land for irrigation of pasture and fodder crops. A solid salt product, rather than brine, would be produced for disposal off site or by another approved method.

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As part of the environmental assessment for the amended Project, WRM (2016) constructed a water balance model. It was noted that water balance would vary from year to year due to various stages of the mine’s operation and climatic conditions. Based on predicted water inputs and usage, WRM (2016) assessed potential impacts on downstream stream flow as follows:  Potential Extraction from the Avon River Water Source – It is expected that all site water demands would be supplied using water captured from the saline water zone or network of sediment dams recognising the following.  During development of the open cut pits in Year 1, groundwater inflows may not be as high as predicted and, if the required water is not available from sediment dams it may be necessary to draw supplementary supplies from the Avon River Water Source, relying upon GRL’s water access licences.  The volume extracted would not exceed GRL’s entitlement, which equates to 267 ML/yr.  Interception of runoff in the saline water zone – Capture of this water effectively removes it from the Avon River downstream from the Mine Area. This loss is expected to be very small (between 0.2% and 1.4% loss of surface runoff over the life of the amended Project). This estimate is likely to be conservative because rainfall upstream of the Mine Area (both in the Avon River and Waukivory Creek) is greater than adjacent to the Mine Area.  Temporary change in runoff characteristics – During operations, overburden emplacements would see enhanced infiltration until topsoiled and vegetated. This would cause a reduction in runoff from the overburden areas until vegetation is established. Following all mining-related activities, runoff characteristics of the final landform would be similar to the pre-mining condition.  Loss of base flow recharge – AGE (2016) has predicted that there would be a temporary loss of groundwater flow from the Permian strata to the Quaternary Alluvium of between approximately 0.02 ML/day and 0.53 ML/day. The peak loss would occur for a short period in Year 11 of operations, and then reduce to 0.26 ML/day by Year 16. The cumulative reduction in groundwater flow from the Permian strata over the 16-year mine life would be 1601 ML, equating to an average loss of 0.27 ML/day. Post-mining, AGE (2016) predicts groundwater flows within the Mine Area would return to pre-mining levels within 10 years.

Potential impacts on downstream water quality were assessed as follows in relation to the proposed water management system (WRM 2016): 1. Saline Water Zone – This water has the greatest potential for contamination with salts and metals. As all this water would be used on site or treated to a water quality similar to that within the Avon River and used for agricultural (irrigation) purposes on adjoining land, there would be no adverse impacts on downstream water quality. In the event of prolonged rainfall and irrigation of adjoining land is not practical, the Applicant would discharge the treated water to allow it to flow into the Avon River, most likely at a time when the flow rate in the Avon River is in excess of 25ML/day. 2. Dirty water zone – Water captured in this zone is predicted to be of acceptable water quality and suitable for release in accordance with water quality limits that

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would be specified in the environment protection licence, i.e. once settlement of sufficient amounts of suspended sediments had occurred. WRM (2016) has suggested EPL limits based on ANZECC (2000) and the 80th percentile of water monitoring results (see Section 4.8.2 in WRM 2016). 3. Flooding – Flood modelling by WRM (2016) predicted a reduction in the local catchment areas draining through the Mine Area and an increase in the catchment area draining to Oaky Creek due to the redirected flows from the northern clean water diversion channel (note: this diversion channel would be decommissioned after mining operations cease). Flood level impacts in Waukivory Creek and the Avon River would be restricted to areas immediately adjacent to the western and northern amenity barrier due to a minor reduction in the width of the floodplains caused by the positioning of the toe of this barrier and in areas within 100m of the proposed private haul road crossing of Waukivory Creek. Flooding impacts are predicted to be minor (WRM 2016), and, in a 1:100 AEP flood event, would result in localised difference of more than 0.1m in two small areas adjacent to the western and northern amenity barrier and 0.5m to 1.0m within 100m upstream of the private haul road crossing. Flood velocity impacts in Waukivory Creek and the Avon River would be restricted to areas immediately adjacent to the western and northern amenity barrier, with maximum differences 100m from the barrier of approximately 0.3 m/s, and immediately downstream of the private haul road crossing of Waukivory Creek, with differences of up to 3.0m/s.

In terms of geomorphic stability, WRM (2016) predicted that there would be no significant impact on the channels of the Avon River or Waukivory Creek. Oaky Creek would be subject to an increased risk of bank erosion during flood events due to the clean water diversion channel flows when it is operational (i.e. the risk would cease once the mine was decommissioned) but this increased risk would still be within the bounds of natural flooding within the creek. The greatest potential for impact would occur at pinch points over a 3.2km section of the creek downstream of the confluence with the diversion channel. The outlets for the clean water diversion channels are relatively steep and would be stabilised with energy-dissipation structures to mitigate the risk of localised erosion and mobilisation of sediments.

6.1.2.2 Groundwater

As part of the environmental assessment for the 2013 Project, GRL commissioned field investigations of groundwater utilising 13 boreholes within the proposed area of disturbance. In June 2012, an additional two boreholes were drilled that were outside the Mine Area (AGE 2016). The groundwater systems beneath and adjacent to the Mine Area have previously been described in Section 4.1.3.

Predictive modelling by AGE (2016) assessed impacts of the amended Project on the alluvial groundwater system. Modelling indicated a minor decrease in water transfer from the Permian strata to the alluvial groundwater system, with maximum effect occurring in Year 11. As this flow results from drawdowns within the Permian system, the water would remain within the Permian layer. Once mining ceases, the Permian system would begin to repressurise, with 95% recovery occurring within five years and almost complete recovery occurring within ten years of cessation of mining. AGE (2016) suggested that the minor loss of water to the alluvial groundwater system from the Permian system did not warrant any mitigation measures.

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However, it was recommended that additional boreholes be installed to enable monitoring during mining operations because ten of the existing boreholes are in the Mine Area and hence would be removed due to excavation of the pits (AGE, 2016).

6.2 IMPACTS ON AQUATIC ECOSYSTEMS

The design of the amended Project, and particularly those components related to water management, address many of the potential impacts that might otherwise be associated with a project of this nature. In particular, there would be little physical interaction between the Avon River, Waukivory Creek and Oaky Creek and the amended Project, with the following relatively minor exceptions:  a slight impingement of the western and northern amenity barrier on the floodplains of Waukivory Creek and the Avon River;  the entry points of the clean water diversion channels into Waukivory Creek and Oaky Creek;  the works proposed for the bridge crossing of the Avon River at Jacks Road; and  the bridge crossing of the private haul road at Waukivory Creek.

6.2.1 Surface Water Ecosystems

6.2.1.1 Habitats

Modelling by WRM (2016) indicates that any changes in water flow or flooding associated with Waukivory Creek and the Avon River would not alter channel structure and therefore associated aquatic habitats. The reductions in flows that may result from either a minor loss of groundwater flow or extraction of water under licence (this is not expected, but considered as a precautionary measure – WRM 2016) would not be expected to lower water levels to the point when physical barriers to movement by fishes within these watercourses would be created.

The Northern Clean Water Diversion Channel would increase flows into Oaky Creek and may cause erosion at pinch points along the stream between the point of entry into Oaky Creek and its confluence with the Avon River. This would occur only during the period of mine operations because the diversion channel would be decommissioned following completion of mining, and flows within Oaky Creek would revert to pre-mining conditions.

Oaky Creek was assessed as having minimal habitat for fish at two sites between the Avon River and McKinleys Lane (Section 4.2.2.1.3). Macroinvertebrates were not sampled in this creek but the limited habitats would be expected to support a relatively depauperate macroinvertebrate fauna. A small increase in flow from the diversion channel may have a beneficial effect on aquatic ecology. A larger increase causing erosion would increase turbidity and transport sediments downstream. Given that the risk would be limited to several pinch points rather than the whole section of creek (WRM, 2016), potential impacts on aquatic ecology are expected to be small and confined to the period of mining. In the event that monitoring identifies erosion in Oaky Creek, mitigation measures may include increasing the amount of dissipation within the relevant section of the channel and/or addition of a small dam along the channel to store water, which could then be pumped into a channel downstream of the dam once flows reduce.

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The entry point of the south-flowing channel into Waukivory Creek would have dissipators and erosion controls measures and is not predicted to lead to erosion either in channel or in Waukivory Creek (WRM 2016).

The existing bridge over the Avon River at Jacks Road is relatively small and currently allows flow and hence passage for fishes to Waukivory Creek and the upper sections of the Avon River. Detailed designs for the bridge were not available for this assessment, but it is likely that impacts to the Avon River would be minor provided that the works are designed and constructed in accordance with guidelines issued by NSW DPI (Fisheries) (Fairfull and Witheridge 2003, NSW DPI 2006b, Fairfull 2013).

As with the upgrade of the bridge at Jacks Road, the private haul road crossing Waukivory Road would be expected to have minor effect on stream ecology, especially given the commitment by the Applicant to ensure compliance with guidelines issued by NSW DPI (Fisheries). In fact, the proposed bridge is expected to improve the aquatic condition of the creek, as it will be slightly higher above the existing bridge (hence less potential for trapping flood debris); and it is the intention to avoid, if practicable, having pylons within the creek channel (hence having less impact on stream flow).

6.2.1.2 Water Quality

The water management system designed for the amended Project identifies and manages water that may be of poor water quality (i.e. the Saline Water System). This water would be used on-site and not released. Water associated with the Dirty Water Zone would be captured in sediment dams to allow sediments to settle and would not be released until it satisfied licencing requirements. Water from the Clean Water Zone would be intercepted prior to flowing into disturbed areas and hence would be of the same quality as existing runoff from the eastern side of the Mine Area.

Given the range of controls incorporated into the amended Project it is predicted that water quality associated with the amended Project would not affect the ecology of surface waters.

6.2.1.3 Aquatic Flora and Fauna

6.2.1.3.1 Threatened and Invasive Species Issues

Database searches identified only the tall knotweed (listed under the EPBC and TSC Acts) as potentially occurring within the Study Area. Neither this species, nor any other listed species was observed during the field investigations. Three records of tall knotweed found during the database search were specimens in the Hunter and Karuah catchments. On the basis of the investigations undertaken, it is considered unlikely that there are threatened aquatic species that could be at risk as a result of the amended Project.

There are three invasive species that do or could occur within the Study Area. Salvinia (Class 3 noxious weed) may occur within the Study Area but was not recorded during the field investigations. Sagittaria (Class 3) was recorded at one site on the Avon River. Mosquito fish were recorded at seven sites – five on the Avon River and two in Waukivory Creek, including the location of the proposed crossing for the private haul road. They were also recorded on one of the dams on the Mine Area. This species is also listed as a key threatening process and is discussed below. The key issues associated with invasive species include the need to report

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SPECIALIST CONSULTANT STUDIES GLOUCESTER RESOURCES LIMITED Part 8: Aquatic Ecology Assessment Amended Rocky Hill Coal Project Report No. 806/14 occurrence of some species (in this case, Salvinia), the need to ensure that activities associated with the amended Project do not lead to the introduction of invasive species and the need to ensure that activities do not facilitate the spread of invasive species within a region. These issues should be addressed as part of the management plan developed for the operation of the amended Project. These issues can be addressed by incorporating provisions for reporting on invasive species (e.g. targeted observations during monitoring) of water bodies and management of exchange of surfaces waters between the Mine Area and surrounding watercourses in terms of potential translocation of invasive species.

Six key threatening processes have been identified as being of potential relevance to the amended Project (Sections 5.2.3.2 and 5.2.3.3). Two processes are relevant under the TSC Act:  Alteration to natural flow regimes of rivers and streams and their floodplains and wetlands. As shown in reports by WRM (2016) and AGE (2016), the amended Project would have only a very minor effect on flow regimes and floodplains of Waukivory Creek and the Avon River. The extent of change predicted is not expected to threaten ecological processes or biodiversity associated with these watercourses. There would also be some risk of bank erosion in Oaky Creek due to additional flows associated with the northern Clean Water Diversion Channel. This represents a minor effect given that the risk applies over a short section of the creek and at a few pinch points, rather than the whole section of that creek. Notwithstanding this, WRM (2016) has recommended monitoring of erosion and it may appropriate to incorporate additional dissipators into the outlet of this diversion channel or incorporate a small dam to store water during high rainfall events.  Predation by mosquito fish (Gambusia holbrooki). As noted above, this species already appears to be widespread in the Study Area, being present in streams and at least one dam within the Mine Area. The amended Project would, therefore, not cause the introduction of this species in the area. It may be possible, however, to limit its spread by managing dewatering of dams on the Mine Area by treating the water to kill mosquito fish or screening pipes. It is recommended that, as part of the management plan for the amended Project, all dams are treated prior to dewatering activities to euthanize any mosquito fish present prior to dewatering.

Four processes are relevant under the FM Act.  Degradation of riparian vegetation. This could occur potentially as a result of construction of the private haul road bridge over Waukivory Creek, replacement of the bridge crossing the Avon River at Jacks Road, or bank erosion along small sections of Oaky Creek. The following measures are therefore recommended.  The bridge crossing proposed for the private haul road is essentially adjacent to pasture land and should be positioned to ensure minimal damage to native riparian vegetation (especially established native trees). This issue is also addressed as part of the Terrestrial Ecology report by Biosis (2016), including biodiversity offsets for riparian vegetation.  The replacement of the bridge crossing at Jacks Road should be subject to a management plan to minimise harm to riparian and instream vegetation. This

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GLOUCESTER RESOURCES LIMITED SPECIALIST CONSULTANT STUDIES Amended Rocky Hill Coal Project Part 8: Aquatic Ecology Assessment Report No. 806/14

would require detailed mapping of vegetation prior to construction, a detailed plan to avoid any unacceptable damage during reconstruction and re-planting as required following the completion of construction activities.  Much of the riparian habitat along the section of Oaky Creek under consideration borders on pasture, with a small amount of in-stream vegetation. It is recommended that if erosion occurs (this would be monitored as recommended by WRM 2016) measures be established to mitigate erosion and/or replant riparian vegetation as necessary.  Removal of large woody debris. This would not occur under the amended Project.  Installation of instream structures and mechanisms that alter natural flow. This would not occur under the amended Project. Note that dissipators proposed for the diversion channel would be placed within the diversion channels rather than within Oaky or Waukivory creeks.  Introduction of fish to freshwaters within a river catchment outside their natural range. This would not occur under the amended Project (note the issue of possible movement of mosquito fish is considered above).

6.2.1.3.2 Biodiversity

The habitats and aquatic communities of the Study Area were assessed as being of moderate to significant impairment in terms of the AusRivAS model and of moderate to poor habitat quality for fish. Notwithstanding this, the river system as a whole is significant in that there are no major barriers to movement by fishes between the ocean and the upper sections of Waukivory Creek and the Avon River. Eels, which are migratory, were recorded during field investigations and anecdotal evidence indicates that other migratory fishes such as Australian bass and mullet also occur in watercourses adjacent to the Mine Area.

However, the amended Project is not expected to interfere significantly with local ecological processes nor with longitudinal connectivity (i.e. fish passage) within the system.

6.2.2 Stygofauna

The survey of stygofauna indicated a variety of terrestrial or aquatic invertebrates occurring within boreholes which probably entered these boreholes through the surface orifices of the boreholes. Both the field sampling and existing literature suggest that it is unlikely that obligate stygofauna would occur at the Mine Area. Hence stygofauna would not have significant environmental implications for the amended Project. Outside the Mine Area, there would be little or no disturbance to the floodplains.

6.3 CUMULATIVE IMPACT ASSESSMENT

Cumulative impacts are interactive effects of multiple human activities on the environment. They can be considered in terms of multiple aspects of the same development (e.g. combined effects of open cut pits and access roads) or multiple aspects of different developments (e.g. combined effects of open cut pits of two or more separate mines).

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The amended Project includes a range of activities that could potentially affect aquatic ecology within the local area, i.e. within 5km of the Mine Area. The assessment of impacts provided in Section 6.2 considered a number of different, interrelated activities, particularly in relation to the management of water within and around the Mine Area, and the long term rehabilitation of the Mine Area. Cumulatively, impacts are assessed as being manageable in terms of aquatic habitats, flora and fauna and issues associated with threatened aquatic species.

Another project within the local area has potential to interact cumulatively with the amended Project namely, Stratford Coal Mine Extension Project. WRM (2016) and AGE (2016) have assessed cumulative impacts of these developments with the amended Project for surface water and groundwater, respectively.

AGE (2016) also undertook predictive modelling of the cumulative impact of the Stratford Coal Mine Extension with the amended Project. The modelling suggested limited drawdown of groundwater in the Permian strata up to 1.5 km from the open pits and this is of a similar magnitude to that predicted for the amended Project. AGE (2016) concluded that there would be no cumulative groundwater impact between the Stratford Coal Mine Extension and the amended Project as the predicted drawdown from both sites would not overlap.

On the basis of the groundwater modelling and the survey of stygofauna undertaken the for the 2013 Project, it is concluded that:  The small likelihood that obligate stygofauna occur within the groundwater strata at the Mine Area indicates that any cumulative effects of the amended Project with other development in the region would not be an issue for stygofauna.  Cumulative interactions between groundwater and surface water would have minimal impact on the habitats or biota of watercourses in the area.

WRM (2016) assessed the cumulative effect of the amended Project with the Stratford Coal Mine Extension on surface waters in two ways: potential cumulative impacts on stream flow loss and potential impacts on downstream water quality. In terms of potential stream flow loss, the existing Stratford Coal Mine is estimated to cause a loss of catchment of 6.4km2, with the proposed extension contributing a further 1.4km2 (WRM 2016). The predicted reduction in base flow was estimated to be less than 0.1ML/day (WRM 2016).

The amended Project for the Rocky Hill Coal Project incorporates a range of measures to minimise loss of surface water, including the use of water within licence allocations, use of diversion channels and release of water from dams, whilst saline water, derived largely from groundwater, would be used on site or adjacent agricultural land, following treatment. These measures, combined with the small losses of catchment predicted for the Stratford Coal Mine Extension, indicate that the cumulative loss of surface water would be very small and have minimal effect on aquatic habitats and biota.

A variety of measures have been identified to manage water quality for the Stratford Coal Mine Extension, including incorporation of contained water storages at the mine at the Stratford Mining Complex (Gilbert and Associates cited in WRM 2016) with a very low risk of spillages. These, along with the measures designed for the amended Project, would ensure low risk of adverse impacts to aquatic ecology from poor water quality.

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GLOUCESTER RESOURCES LIMITED SPECIALIST CONSULTANT STUDIES Amended Rocky Hill Coal Project Part 8: Aquatic Ecology Assessment Report No. 806/14 6.4 CONSIDERATION OF MITIGATION MEASURES

Numerous measures have been incorporated into the amended Project to mitigate potential impacts of a development of this nature. This applies particularly to water management at the Mine Area. Where impacts could occur in relation to works proposed off-site (e.g. bridge works on the Avon River at Jacks Road), such works should be done in accordance with policies and guidelines prepared by NSW Fisheries (Smith and Pollard 1999, Fairfull and Witheridge 2003, Fairfull 2016). Some measures are also suggested in relation to potential for erosion in Oaky Creek and management of mosquito fish on the Mine Area (see above). In the longer term, the Mine Area would be rehabilitated following completion of mining with landform, including watercourses, broadly similar to the pre-existing conditions.

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SPECIALIST CONSULTANT STUDIES GLOUCESTER RESOURCES LIMITED Part 8: Aquatic Ecology Assessment Amended Rocky Hill Coal Project Report No. 806/14 7. ENVIRONMENTAL MANAGE M E N T AN D MONITORING

While the design of the amended Project indicates that impacts to aquatic ecosystems can generally be managed by careful development and implementation of water management planning and the design of the Mine Area, a precautionary approach warrants that monitoring of surface waters be undertaken before, during and after the operation of the mine. Given the likelihood that obligate stygofauna are not present at the Mine Area, it is not recommended that a monitoring program be developed for these organisms, although it will be important to monitor water quality of all water zones within the Mine Area and in groundwater boreholes.

It is recommended that a detailed environmental management and monitoring plan be developed for aquatic ecology prior to commencement of works for the amended Project. Note that permits will be required from NSW DPI (Fisheries) to collect aquatic flora and fauna and that permits will also be required (in addition) to obtain Ethics Approval for surveys of aquatic vertebrates.

At this stage, it is recommended that such a program be developed for monitoring potential change in Waukivory Creek, the Avon River, Oaky Creek and suitable reference creeks or rivers within the region. The major environmental indicators that should be selected include the following: 1. Geomorphology and flow, including wetted perimeter, depth, location of riffles and riffle architecture in relation to fish passage. 2. Water quality monitoring at regular intervals and following major flow events. 3. Quantitative and semi-quantitative for aquatic biota, including: a. Macrophytes and riparian vegetation (including potential presence, and if necessary eradication, of invasive species) b. Macroinvertebrates, including rapid assessment methods (AusRivAS) and replicated, quantitative sampling c. Fish, including rapid assessments and quantitative sampling

The intensity of sampling and environmental indicators selected may vary from site-to-site and be dependent of the type of effect that could occur at different sites. For example, more emphasis on geomorphology issues may be required for sampling at the confluence of the diversion channels with Waukivory and Oaky Creeks than sites upstream of the diversion channels. Surveys should be undertaken prior to commencement of site establishment and construction activities to provide a spatial and temporal baseline against which any future changes can be measured in the context of natural variability. Reference sites should include locations upstream of the Mine Area in Waukivory Creek, the Avon River and Oaky Creek and similar sites in other watercourses, for example Mograni Creek and the Gloucester River.

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GLOUCESTER RESOURCES LIMITED SPECIALIST CONSULTANT STUDIES Amended Rocky Hill Coal Project Part 8: Aquatic Ecology Assessment Report No. 806/14 8. ACKNOWLEDGEMENTS

Author: Dr Marcus Lincoln Smith

Reviewed by: Matt Harper.

Field Work: Marcus Lincoln Smith, Bob Hunt, Matt Harper and Daniel Pygas

Assistance with logistics and fieldwork: Nick Warren, Norm Hennessey, Maurice March and Allison Thomas.

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SPECIALIST CONSULTANT STUDIES GLOUCESTER RESOURCES LIMITED Part 8: Aquatic Ecology Assessment Amended Rocky Hill Coal Project Report No. 806/14 9. REFERENCES

AECOM (2009). AGL Gloucester Seismic Survey. Gloucester NSW. Prepared for AGL Gloucester LE Pty Ltd.

AGE (2016). Rocky Hill Coal project: Groundwater Impact Assessment. Prepared by Australasian Groundwater and Environmental Consultants Pty Ltd, Bowen Hills, Qld, 4006. 123 pages plus appendices.

ALS (2010a). Grosvenor Stygofauna Survey. Prepared for Anglo Coal (Grosvenor) by ALS Water Sciences Group, Yeerongipilly, QLD. Document No. EE2010-79, 20 pages.

ALS (2010b). Codrilla Mine Stygofauna Pilot Survey Report. Prepared for McCollum Environmental Management Services Pty Ltd by ALS Water Sciences Group, Yeerongipilly, QLD. Document No. EE2010-80, 15 pages.

ANZECC/ARMCANZ (2000). Australian guidelines for water quality monitoring and reporting. National water quality management strategy, No.7.Prepared for: Australian & New Zealand Governments. ANZECC//ARMCANZ, Australia.

Boulton, A. J., Fenwick, G. D., Hancock, P. J. and Harvey, M. S. (2008). Biodiversity, functional roles and ecosystem services of groundwater invertebrates. Invertebrate Systematics 22, pp. 103-116.

Cardno Ecology Lab (2010). Gloucester Coal Mine – Preliminary aquatic survey of Mine Exploration Licence 6253 Area. Report prepared for R.W. Corkery & Co. Pty. Limited.

Cardno Ecology Lab (2011). Gloucester Coal Project: Aquatic Ecology Opportunities and Constraints. Report prepared for R. W. Corkery and Co. Pty. Limited. Cardno Ecology Lab, Brookvale, NSW, 56 pages.

Chessman, B., Growns, I., Kotlash, A.R. (1997). Objective derivation of macroinvertebrate family sensitivity grade numbers for the SIGNAL biotic index: application to the Hunter River system, New South Wales. Marine and Freshwater Research, 48, 159-172.

Chessman, B. C. (2003). New sensitivity grades for Australian river macroinvertebrates. Marine and Freshwater Research 54, pp. 95-103.

Biosis Pty Ltd (2016). Amended Rocky Hill Coal Project: Terrestrial Biodiversity Assessment. Prepared for Gloucester Resources Limited. 206 pages.

Eberhard, S. (2007). Classification of Subterranean Fauna. Subterranean Ecology. Prepared for the Department of Environment and Conservation, Western Australia, Greenwood, WA. Project 49, pp 2–7.

Eberhard, S. M., Halse, S. A. and Humphreys, W. F. (2005). Stygofauna in the Pilbara region of north-west Western Australia: a review. Journal of the Royal Society of Western Australia 88, p 167–176.

Eco Logical (2014). Stygofauna Assessment Baralaba North Continued Operations Project. Prepared for Cockatoo Coal Limited. April 2014.

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Eco Logical (2015a). Drayton South Coal Project Stygofauna Impact Assessment. Report prepared for Hansen Bailey Environmental Consultants. February 2015.

Eco Logical (2015b). Bylong Coal Project Environmental Impact Statement: Stygofauna Impact Assessment. Report prepared for Hansen Bailey Environmental Consultants. July 2015.

Eldin, N.N. (2002). Road construction: Material and Methods. Journal of Environmental Engineering, 128(5):423-430.

Essential Solutions and RWC (2016). Agricultural Impact Statement, Part 13 of the Specialist Consultant Studies Compendium.

Fairfull, S. (2013). Policy and Guidelines for Fish Habitat Conservation and Management (2013 Update). NSW Department of Primary Industries. 87 pages.

Fairfull, S. and Witheridge, G. (2003). Why do Fish Need to Cross the Road? Fish Passage Requirements for Waterway Crossings. NSW Fisheries, Cronulla, 16 pp.

Gloucester Coal Ltd. (2010). Exploration Drilling Program – Review of Environmental Factors.

Gloucester Shire Council (2009). Comprehensive State of Environment Report. Gloucester Shire Council, NSW.

Gloucester Shire Council (2011). Supplementary State of Environment Report 2011. Gloucester Shire Council, NSW.

Hancock, P. J. and Boulton, A. J. (2009). Sampling groundwater fauna: efficiency of rapid assessment methods tested in bores in eastern Australia. Freshwater Biology 54, pp. 902-917.

Hancock, P. J. and Boulton, A. J. (2008). Stygofauna biodiversity and endemism in four alluvial aquifers in eastern Australia. Invertebrate Systematics 22, pp. 117-126.

Hancock, P. J., Boulton, A. J. and Humphreys, W. F. (2005). Aquifers and hyporheic zones: Towards an ecological understanding of groundwater. Hydrogeology Journal 13, pp. 98-111.

Harris, J. H. and Gehrke, P. C. (1997). Fish & Rivers in Stress: The NSW Rivers Survey. NSW Fisheries, Cronulla, NSW, 298 pp.

Humphreys, W. F. (2006). Aquifers: the ultimate groundwater-dependent ecosystems. Australian Journal of Botany 54, pp. 115-132.

IIA (Invertebrate Identification Australasia). (2009). Biological Monitoring of the Stratford (Bowen Road North) Coal Mine. Study 3, Survey 7, October 2009. Report for Stratford Coal Pty Ltd.

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McVicar, T. R., Macfarlane, C., McNamara, J. M., Marston, F. M., Mount, R. E., Raisbeck- Brown, N., Wang, J., Moran, B. T., Moore, B., Holland, K. L., Marvanek, S. P., Li, L. T., Zhang, Y., Q. and Barron, O. V. (2015). Description of the water-dependent asset register for the Gloucester subregion from the Northern Basin Bioregional Assessment. Department of the Environment, Bureau of Meteorology, CSIRO and Geoscience Australia, Australia.

McDowall, R. (1996). Freshwater Fishes of South-Eastern Australia. Reed Books, Sydney NSW, 1-247 pp.

NOW (2012a). NSW Aquifer Interference Policy: NSW Government policy for the licencing and assessment of aquifer interference activities. NSW Department of Primary Industries (NSW Office of Water). 32 pages. Available through www.water.nsw.gov.au, September 2012.

NOW (2012b). Risk Assessment Guidelines for Groundwater Dependent Ecosystems: Volume 1 – The Conceptual Framework. NSW Department of Primary Industries (NSW Office of Water). 140 pages. Available through www.water.nsw.gov.au, May 2012.

NSW DPI (Department of Primary Industries) (2006a). Reducing the impact of weirs on aquatic habitat – New South Wales Detailed Weir Review. Hunter / Central Rivers CMA Region. Report to the New South Wales Environmental Trust. NSW Department of Primary Industries, Flemington, NSW.

NSW DPI (Department of Primary Industries) (2006b). Reducing the impact of road crossing on aquatic habitat in coastal waterways – Hunter / Central Rivers, NSW. Report to the New South Wales Environmental Trust. NSW Department of Primary Industries, Flemington, NSW.

Resource Strategies (2002). Bowens Road North Open Cut Coal Mine – Site Water Management Plan. Prepared for Stratford Coal Pty Ltd.

RWC (2010). Review of Environmental Factors for the Gloucester Exploration Program EL 6523. Prepared for Gloucester Resources Limited by R.W. Corkery & Co. Pty. Limited

Smith, A. K. and Pollard, D. A. (1999). Policy and Guidelines Aquatic Habitat Management and Fish Conservation: 1999 Update. NSW Fisheries, Port Stephens Research Centre, Port Stephens NSW.

Tomlinson, M. and Boulton, A. J. (2010). Ecology and management of subsurface groundwater dependent ecosystems in Australia - a review. Marine & Freshwater Research 61, pp. 936-949.

Turak, E., Hose, G., and Waddell, N. (2000). Australia-Wide Assessment of River Health: New South Wales Bioassessment Report (NSW Final Report), Monitoring River Heath Initiative Technical Report, Commonwealth of Australia and NSW Environment Protection Authority, Canberra and Sydney. Avon River details accessed online at http://www.environment.gov.au/water/publications/environmental/rivers/nrhp/catchment s-nsw/mann504.html

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Turak, E., Waddell, N. and Johnstone, G. (2004). New South Wales (NSW) Australian River Assessment System (AusRivAS) Sampling and Processing Manual. Department of Environment and Conservation (NSW).

WRM (2016). Amended Rocky Hill Coal Project Surface Water Assessment. Report prepared for Gloucester Resources Limited by WRM water & Environment Pty Ltd, Paddington Qld. 98 pages plus appendices.

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(Total No. of pages including blank pages = 34)

Appendix 1 Key to Study Site Labels used for the Original Site Inspection (19-20 October 2010) and the Subsequent Field Assessments (15-19 November 2010) of the Study Area (4 pages)

Appendix 2 River Descriptors, Categories and Values used in the Modified Riparian, Channel and Environmental Inventory (4 pages)

Appendix 3 Fish Habitat Classification for Watercourses (4 pages)

Appendix 4 Water Quality Measurements Taken In Situ at 19 Sites Within the Study Area (4 pages)

Appendix 5 Macro invertebrate Assemblage Data for Pool Edge Habitat Sampled at 12 Sites in the Study Area (4 pages)

Appendix 6 Macroinvertebrate Assemblage Data for Rifle Habitat Sampled at 2 Sites in the Study Area (4 pages)

Appendix 7 Abundance of Freshwater Fish and Macroinvertebrates Captured by Electrofishing within the Study Area (4 pages)

Appendix 8 Key Differences between the Aquatic Ecology Assessment for the 2013 Project and Amended Project (4 pages)

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Appendix 1

Key to Study Site Labels used for the Original Site Inspection (19-20 October 2010) and the Subsequent Field Assessments (15-19 November 2010; 1-2 February 2016) of the Study Area Note: Site 4 surveyed on Waukivory Creek in October 2010 is the same as Site 20 visited in February 2016.

(Total No. of pages including blank pages = 4)

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Site Inspection Field Assessment Waterway Easting Northing 19 - 20 Oct 2010 15 - 19 Nov 2010

Site Numbers Site Numbers

1 * Waukivory Creek 0402737 6451238 2 11 Waukivory Creek 0402713 6451321 3 10 Waukivory Creek 0403855 6450581 4 * Waukivory Creek 0404451 6450261 5 9 Waukivory Creek 0404997 6449981 6 * Waukivory Creek 0402646 6451764 7 12 Waukivory Creek 0402746 6452135 8 * Avon / Waukivory Confl. 0402733 6452526 9 5 Avon River 0402577 6452757 10 4 Avon River 0402077 6452241 11 8 Avon River 0403077 6458286 12 3 Avon River 0401934 6451525 13 6 Avon River 0403448 6454672 14 14 Oaky Creek 0403768 6454668 15 13 Oaky Creek 0404852 6454007 16 * Unnamed 0404800 6453699 17 * Unnamed 0404675 6452938 18 * Unnamed 0404542 6452178 19 * Unnamed 0404524 6452009 20 * Unnamed 0404389 6451211 * 1 Avon River 0399573 6446130 * 2 Avon River 0400588 6447299 * 7 Avon River 0403274 6455073 * 19 Gloucester River 0401796 6460236 * 17 Gloucester River 0401037 6458405 * 18 Gloucester River 0401759 6458802 * 16 Mograni Creek 0403669 6458734 * 15 Mograni Creek 0405141 6459533 * not sampled

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Appendix 2

River Descriptors, Categories and Values used in the Modified Riparian, Channel and Environmental Inventory

(Total No. of pages including blank pages = 4)

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Descriptor and category Score Descriptor and category Score

1. Land use pattern beyond the 8. Riffle / pool sequence immediate riparian zone Undisturbed native vegetation 4 Frequent alternation of riffles and pools 4 Mixed native vegetation and 3 Long pools with infrequent short riffles 3 Mainly pasture, crops or pine plantation 2 Natural channel without riffle / pool sequence 2 Urban 1 Artificial channel; no riffle / pool sequence 1

2. Width of riparian strip of woody 9. Retention devices in stream vegetation More than 30 m 4 Many large boulders and/or debris dams 4 Between 5 and 30 m 3 Rocks / logs present; limited damming effect 3 Rocks / logs present, but unstable, no Less than 5 m 2 damming 2 No woody vegetation 1 Stream with few or no rocks / logs 1 3. Completeness of riparian strip of 10. Channel sediment accumulations woody vegetation

Riparian strip without breaks in vegetation 4 Little or no accumulation of loose sediments 4 Breaks at intervals of more than 50 m 3 Some gravel bars but little sand or silt 3 Breaks at intervals of 10 - 50 m 2 Bars of sand and silt common 2 Breaks at intervals of less than 10 m 1 Braiding by loose sediment 1

4. Vegetation of riparian zone within 11. Stream bottom 10 m of channel Native tree and shrub species 4 Mainly clean stones with obvious interstices 4 Mixed native and exotic trees and shrubs 3 Mainly stones with some cover of algae / silt 3 Exotic trees and shrubs 2 Bottom heavily silted but stable 2 Exotic grasses / weeds only 1 Bottom mainly loose and mobile sediment 1 5. Stream bank structure 12. Stream detritus

Banks fully stabilised by trees, shrubs etc 4 Mainly unsilted wood, bark, leaves 4 Banks firm but held mainly by grass and Some wood, leaves etc. with much fine herbs 3 detritus 3 Banks loose, partly held by sparse grass etc 2 Mainly fine detritus mixed with sediment 2

Banks unstable, mainly loose sand or soil 1 Little or no organic detritus 1

6. Bank undercutting 13. Aquatic vegetation None, or restricted by tree roots 4 Little or no macrophyte or algal growth 4 Only on curves and at constrictions 3 Substantial algal growth; few macrophytes 3 Frequent along all parts of stream 2 Substantial macrophyte growth; little algae 2 Severe, bank collapses common 1 Substantial macrophyte and algal growth 1

7. Channel form Deep: width / depth ratio < 7:1 4 Medium: width / depth ratio 8:1 to 15:1 3 Shallow: width / depth ratio > 15:1 2 Artificial: concrete or excavated channel 1

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Appendix 3

Fish Habitat Classification for Watercourses

(Total No. of pages including blank pages = 4)

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Culvert, causeway ford or Culvert,

Culvert or ford or Culvert

Bridge, arch structure, culvert or ford. ford. or Bridge, arch structure, culvert

Bridge, Bridge, arch structure tunnel. or

Minimum Recommended Crossing Type Crossing Minimum Recommended

present). present).

floodplain depression with no permanent wetland aquatic flora aquatic flora wetland with permanent no depression floodplain

standing water or pools after rain event (e.g. dry gullies shallow or event rain pools after or standing water

events only, little or no defined drainage channel, little or no free channel, little free no or only,drainage littleevents defined no or

Named or unnamed watercourse with intermittent flow during rain rain with during intermittent watercourse flow unnamed or Named

habitats.

waterway that interconnectswaterway aquatic recognised with or wetlands

adjacent wetlands after a rain event. Otherwise, any minor event. a rain after adjacent wetlands

yabbies). Semi-permanent pools form within the waterway or or within the waterway pools form yabbies). Semi-permanent

refuge, breeding or feeding areas for some aquatic fauna (e.g. fish, some aquatic fauna for areas feeding or breeding refuge,

Named or unnamed waterway with intermittent flow and potential with and intermittent waterway flow unnamed or Named

or fish observed inhabiting the area. inhabiting fish observed or

or freshwater aquatic vegetation is / fish habitat present. and Known aquatic vegetation freshwater or

permanent waters in pools or in connected wetland areas. Marine areas. in waters in pools connected or Marine wetland permanent

clearly defined bed and banks and with semi-permanent to banks with semi-permanent and and bed clearly defined

Named permanent or intermittentor stream, permanent with creek Named waterway or

major creek), habitat of a threatened fish species. creek), a major threatened habitat of

Major permanently or intermittently flowing waterway (e.g. river or or (e.g. river intermittentlywaterway or permanently Major flowing

Characteristics Waterway Type of

Class 4 – Unlikely habitat Class fish

Class 3 – MinimalClass habitat fish

Class 2 – Moderate Class habitat fish

Class 1 – Major HabitatClass Fish Classification

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SPECIALIST CONSULTANT STUDIES GLOUCESTER RESOURCES LIMITED Part 8: Aquatic Ecology Assessment Amended Rocky Hill Coal Project Report No. 806/14

Appendix 4

Water Quality Measurements taken in situ at 19 Sites within the Study Area in 2010 and at 5 sites in 2016 Note: Samples taken in Waukivory Creek (Site 20) were taken just downstream and upstream, respectively, of the existing bridge

(Total No. of pages including blank pages = 4)

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SPECIALIST CONSULTANT STUDIES GLOUCESTER RESOURCES LIMITED Part 8: Aquatic Ecology Assessment Amended Rocky Hill Coal Project

Report No. 806/14

Date Date

Sampled

18/11/2010

18/11/2010

18/11/2010

18/11/2010

18/11/2010

18/11/2010

18/11/2010

18/11/2010

15/11/2010

18/11/2010

18/11/2010

18/11/2010

18/11/2010

18/11/2010

18/11/2010

18/11/2010

17/11/2010

18/11/2010

18/11/2010

*

*

*

*

*

*

*

55

45

38

60

50

48

45

52

45

55

43

55

Alkalinity

62.0

66.7

26.3

26.5

24.6

26.5

53.5

53.7

52.7

53.1

31.5

31.3

32.3

32.5

65.5

65.7

54.5

52.9

67.6

65.6

62.8

61.8

79.6

80.6

79.2

77.9

80.0

80.2

76.7

74.7

69.1

69.1

40.0

40.2

73.9

72.9

71.9

71.7

(NTU)

Turbidity Turbidity

60.8

66.7

25.7

26.1

24.4

31.5

52.9

53.7

52.7

52.9

31.7

30.9

32.5

32.5

65.9

64.8

53.3

53.9

64.8

63.2

61.2

63.2

77.0

79.2

77.4

73.1

79.6

79.6

72.1

74.3

69.3

69.9

41.6

41.2

74.1

73.7

72.1

71.9

(NTU)

Turbidity Turbidity

61.6

66.1

25.7

26.3

24.8

32.7

54.7

53.9

52.5

53.5

31.5

31.3

32.9

33.9

65.1

65.3

53.5

54.7

61.8

65.7

61.8

63.0

81.4

80.8

77.1

76.8

79.8

80.0

71.5

74.5

68.7

69.3

39.2

41.4

73.3

72.9

72.5

72.5

(NTU)

Turbidity Turbidity

3.3

1.8

4.5

4.5

4.6

4.8

3.5

3.3

4.4

4.3

3.2

3.1

3.7

3.7

3.1

2.4

3.0

2.9

3.1

3.1

4.6

4.7

4.2

5.6

3.1

3.4

2.9

2.9

4.1

4.5

2.1

2.4

1.9

1.5

2.8

3.3

4.1

4.4

(mg/L)

Oxygen Oxygen

Dissolved

ed

34.6

18.4

47.7

45.1

50.0

53.3

39.4

36.5

49.9

45.9

36.4

31.3

39.7

39.9

33.6

29.5

34.4

35.0

32.1

33.2

48.0

52.6

47.8

60.9

32.0

34.8

29.8

32.2

45.1

46.5

23.4

27.2

20.8

20.1

31.5

34.1

41.7

48.9

Oxygen Oxygen

Dissolv

(% sat.)(%

485

481

479

480

486

485

489

489

485

485

463

464

461

461

477

478

414

411

478

477

478

479

486

486

462

460

462

461

480

479

482

482

481

482

473

473

468

468

(mV)

ORP ORP

pH

6.91

7.00

7.31

7.34

7.19

7.22

7.17

7.19

7.26

7.29

7.22

7.11

7.21

7.25

7.17

7.23

6.61

6.54

7.23

7.25

7.32

7.28

6.90

7.10

7.02

6.95

6.75

6.79

6.91

7.06

6.80

6.80

6.73

6.74

6.93

6.95

7.00

7.04

**

**

0.04

0.04

0.04

0.04

0.04

0.04

0.08

0.08

0.08

0.08

0.06

0.07

0.06

0.08

0.04

0.04

0.04

0.04

0.04

0.04

0.03

0.03

0.03

0.03

0.05

0.05

0.06

0.06

0.08

0.08

0.07

0.07

0.02

0.04

0.04

0.04

(ppt)

Salinity Salinity

EC

145

128

124

201

185

206

173

138

139

134

128

152

150

157

177

202

226

120

124

s/cm)

µ

(

Hannah

**

**

81

85

99

EC

119

137

112

117

113

113

184

184

172

185

150

155

137

164

129

120

117

120

102

107

141

131

131

138

140

144

163

154

184

175

213

183

118

s/cm)

µ

Yeocal

(

C)

o

(

19.44

19.44

18.41

18.43

18.27

18.28

19.71

19.71

19.50

19.50

19.31

19.30

19.29

19.29

18.99

18.98

27.54

23.56

19.92

18.90

18.84

18.83

19.88

19.86

19.83

19.81

19.78

19.78

19.54

19.53

19.78

19.77

21.13

21.13

18.52

18.52

18.21

18.20

Temp.

2

1

2

1

2

1

2

1

2

1

2

1

2

1

2

1

2

1

2

1

2

1

2

1

2

1

2

1

2

1

2

1

2

1

2

1

2

1

Replicate

River

Gloucester

River

Gloucester

River

Gloucester

Creek

Mograni

Creek

Mograni

Oaky Creek Oaky

Oaky Creek Oaky

Creek

Waukivory Waukivory

Creek

Waukivory Waukivory

Creek

Waukivory Waukivory

Creek

Waukivory Waukivory

Avon River Avon

Avon River Avon

Avon River Avon

Avon River Avon

Avon River Avon

Avon River Avon

Avon River Avon

Avon River Avon

Waterway

* not recorded;not* **unreliable reading

19

18

17

16

15

14

13

12

11

10

9

8

7

6

5

4

3

2 1 Site

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GLOUCESTER RESOURCES LIMITED SPECIALIST CONSULTANT STUDIES Amended Rocky Hill Coal Project Part 8: Aquatic Ecology Assessment Report No. 806/14

Water quality data obtained 2 February 2016

Site Temp, EC, Turbidity DO, DO, Site Code Depth Time Replicate C µS/cm pH , NTU % mg/L Waukivory Creek, Site 1 20 Surface 11:25 1 22.10 3055 6.91 3.6 75.0 6.53 (downstream of bridge) 2 22.10 3056 6.97 3.8 74.6 6.51 Bottom 1 22.10 3046 7.00 4.5 75.1 6.54 2 22.10 3056 6.93 6.3 75.5 6.59 Waukivory Creek, Site 2 20 Surface 11:31 1 22.10 3053 7.00 3.8 75.5 6.57 (upstream of bridge) 2 22.10 3036 7.02 4.0 75.7 6.60 Bottom 1 22.10 3051 6.99 4.2 77.7 6.74 2 22.10 3035 7.01 4.8 78.9 6.83 Avon River 2 Surface 9:23 1 21.50 3379 6.72 24.7 72.8 6.41 (Wenham Cox Rd) 2 21.50 3376 6.72 23.9 74.4 6.54 Avon River (Fairbairns 4 Surface 9:48 1 22.30 3496 6.78 28.6 62.8 5.46 Rd) 2 22.30 3453 6.74 32.4 63.1 5.46 Bottom 9:52 1 22.30 3461 6.77 32.5 62.7 5.45 2 22.30 3450 6.75 29.6 62.7 5.45 Avon River (Jacks Rd) 6 Surface 13:01 1 23.70 3129 6.64 21.7 60.4 5.10 2 23.70 3124 6.65 22.7 62.7 5.27 Bottom 12:58 1 23.60 3139 6.54 19.6 60.4 5.12 2 23.60 3142 6.59 21.0 62.5 5.26 Avon River 5 Surface 14:11 1 24.10 3130 6.46 22.2 61.3 5.14 (d/s Waukivory Creek) 2 24.10 3117 6.48 24.6 62.8 5.26 Bottom 14:08 1 23.85 3143 6.51 20.2 61.6 5.19 2 23.80 3151 6.43 22.6 61.7 5.19

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SPECIALIST CONSULTANT STUDIES GLOUCESTER RESOURCES LIMITED Part 8: Aquatic Ecology Assessment Amended Rocky Hill Coal Project Report No. 806/14

Appendix 5

Macroinvertebrate Assemblage Data for Pool Edge Habitat Sampled at 12 Sites in the Study Area

(Total No. of pages including blank pages = 4)

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SPECIALIST CONSULTANT STUDIES GLOUCESTER RESOURCES LIMITED Part 8: Aquatic Ecology Assessment Amended Rocky Hill Coal Project Report No. 806/14 ------2 5 4 1 2 1 1 4 2 3 2 3 4 6 4 5 8 2 4 7 5 9 5 Score SIGNAL SIGNAL 1 1 2 2 5 5 1 4 6 1 1 12 1 3 1 1 2 2 3 2 1 5 1 10 10 11 1 3 1 4 1 1 6 5 2 1 1 2 2 5 10 10 9 1 1 6 5 6 1 2 1 1 10 8 1 1 1 3 6 2 2 1 1 1 10 10 7 4 1 1 1 1 2 4 5 5 3 1 10 Sites 6 1 1 2 4 5 1 3 1 1 1 1 1 5 1 4 2 1 4 1 1 1 4 7 1 1 2 4 4 1 4 5 1 2 1 2 3 4 2 1 1 4 2 1 2 1 10 3 3 1 1 3 5 1 1 6 5 5 6 1 1 10 2 2 2 1 6 2 2 3 1 1 10 1 1 4 1 1 5 7 1 1 5 2 3 1 1 2 10

Order or Family or Order Dugesiidae Sphaeriidae Corbiculidae/ Thiaridae Lymnaeidae Planorbidae Physidae Glossiphoniidae (= Richardsonianidae) Hirudinidae Oligochaeta Cladocera Copepoda Ostracoda Talitridae Oniscidae Atyidae Palaemonidae Araneae Hydracarina Hypogastruridae Entomobryidae Caenidae Baetidae Leptophlebiidae Coenagrionidae Protoneuridae Synlestidae Gomphidae (=Aeshnidae) Telephlebiidae (=Corduliidae) Cordulephyidae (=Corduliidae) Hemicorduliidae

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Report No. 806/14

-

3

6

7

8

4

2

5

3

5

4

4

4

3

7

7

6

3

2

4

2

2

3

5

2

1

2

5

4

3

3

61

3.9

Total

Score

SIGNAL SIGNAL

1

1

5

1

1

3

1

1

7

4

22

10

12

3.6

1

2

4

5

1

3

3

22

10

10

11

4.0

4

4

1

1

4

2

2

1

3

1

1

27

10

10

3.7

1

2

3

2

2

2

8

2

5

9

20

10

3.8

2

1

1

1

1

2

1

7

5

8

21

3.2

1

4

1

1

2

1

4

1

3

2

1

8

1

7

25

3.1

Sites

1

5

1

2

3

1

3

1

1

4

2

1

6

6

25

3.7

2

1

1

4

1

4

4

5

24

10

3.2

1

6

1

1

6

3

1

1

1

1

2

4

28

10

4.0

3

1

1

1

1

2

2

4

7

7

1

4

2

5

2

3

3

30

3.3

4

2

1

1

1

2

1

2

1

2

20

10

3.5

1

2

4

4

1

1

2

2

7

4

1

3

1

1

1

30

10

4.4

SIGNAL SIGNAL grade

Number of Taxa

Pyralidae

Leptoceridae

Calamoceratidae

Philorheithridae

Hydroptilidae

Stratiomyidae

Tipulidae

Psychodidae

Simuliidae

Ceratopogonidae

Chironomidae/Tanypodinae

Chironomidae/Orthocladiinae

Chironomidae/Chironominae

Dixidae Dixidae

Elmidae

Scirtidae (= Helodidae, ScirtidaeCyphonidae) (= Helodidae,

Hydraenidae (= Limnebiidae) Hydraenidae

Hydrophilidae

Gyrinidae Gyrinidae

Dytiscidae

Haliplidae

Carabidae

Sialidae

Pleidae Pleidae

Notonectidae Notonectidae

Corixidae

Gelastocoridae

Gerridae

Veliidae Veliidae

Hydrometridae Aphididae Order or Family or Order

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Appendix 6

Macroinvertebrate Assemblage Data for Rifle Habitat Sampled at 2 Sites in the Study Area

(Total No. of pages including blank pages = 4)

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SPECIALIST CONSULTANT STUDIES GLOUCESTER RESOURCES LIMITED Part 8: Aquatic Ecology Assessment Amended Rocky Hill Coal Project Report No. 806/14

Order or Family Sites SIGNAL Score

9 10

Dugesiidae 2 2 Nematoda 1 3 Corbiculidae/ Sphaeriidae 1 2 5 Physidae 2 1 1 Oligochaeta 5 2 2 Hydracarina 2 6 Caenidae 1 4 Baetidae 2 3 5 Leptophlebiidae 9 8 8 Gripopterygiidae 8 5 8 Corixidae 1 2 Corydalidae 10 1 7 Dytiscidae 1 2 Scirtidae (= Helodidae, Cyphonidae) 2 6 Elmidae 10 2 7 Psephenidae 1 1 6 Chironomidae/Chironominae 10 6 3 Chironomidae/Orthocladiinae 10 3 4 Chironomidae/Tanypodinae 1 4 Ceratopogonidae 2 1 4 Tabanidae 2 3 Empididae 1 5 Dolichopodidae 1 3 Hydrobiosidae 5 1 8 Philopotamidae 3 8 Hydropsychidae 7 10 6 Ecnomidae 2 4 Leptoceridae 1 1 6 Number of Taxa 24 19 28 (total taxa) SIGNAL grade 5.0 4.9 4.8

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SPECIALIST CONSULTANT STUDIES GLOUCESTER RESOURCES LIMITED Part 8: Aquatic Ecology Assessment Amended Rocky Hill Coal Project Report No. 806/14

Appendix 7

Abundance of Freshwater Fish and Macroinvertebrates Captured by Electrofishing within the Study Area (November 2010)

(Total No. of pages including blank pages = 4)

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SPECIALIST CONSULTANT STUDIES GLOUCESTER RESOURCES LIMITED Part 8: Aquatic Ecology Assessment Amended Rocky Hill Coal Project Report No. 806/14

2

1

1

12

>100

5

1

1

2

11

>100

8

1

4

11

10

>100

3

1

1

2

1

5

9

>100

2

3

6

1

2

5

8

>100

1

2

5

2

7

>100

Sites

0

1

1

2

1

6

>100

0

2

4

5

>100

1

2

4

4

28

11

>100

4

2

3

1

3

11

16

>100

6

1

3

1

2

2

>100

4

2

2

1

1

10

>100

#

#

Freshwater prawn Freshwater

Freshwater shrimp Freshwater

Dwarf flathead gudgeon flathead Dwarf

Flathead gudgeon gudgeon Flathead

Fire-tailed gudgeon Fire-tailed

Cox's Cox's gudgeon

Striped gudgeon Striped gudgeon

Mosquito fish

Goldfish

Australian Australian smelt

Long finned eel finned Long

Common Name Common

.

sp

sp.

Machrobrachium Machrobrachium

Philypnodon Philypnodon

Philypnodon grandiceps Philypnodon

Hypseleotris galii Hypseleotris

Gobiomorphus coxii Gobiomorphus

Gobiomorphus australis Gobiomorphus

Gambusia holbrooki

Carassius auratus

Retropinna semoni Retropinna

Anguilla reinhardtii Anguilla

Species Name

introduced species introduced

#

Palaemonidae

Atyidae

ii. Macroinvertebrates

Gobiidae

Gobiidae

Gobiidae

Gobiidae

Gobiidae

Poeciliidae

Cyprinidae

Retropinnidae

Anguillidae i. Fish Family Name

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SPECIALIST CONSULTANT STUDIES GLOUCESTER RESOURCES LIMITED Part 8: Aquatic Ecology Assessment Amended Rocky Hill Coal Project Report No. 806/14

Appendix 8

Key Differences between the Aquatic Ecology Assessment for the 2013 Project and Amended Project

(Total No. of pages including blank pages = 4)

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SPECIALIST CONSULTANT STUDIES GLOUCESTER RESOURCES LIMITED Part 8: Aquatic Ecology Assessment Amended Rocky Hill Coal Project Report No. 806/14

Key Differences between the Social Impact Assessment for the 2013 Project and Amended Project

Project Component 2013 Project Amended Project On-site Crossing of Waukivory Creek for the Crossing of Waukivory Creek for overland coal handing overland conveyor to access the rail conveyor no longer required. loop and train loading system. Off-site transport New additions to rail system. Private haul road to transport coal by truck from ROM pad to Stratford Mining Complex for processing and transport via existing rail system. Existing, dilapidated, wooden bridge over Waukivory Creek to be replaced with steel span bridge higher above water than existing bridge, with minimal or no in- stream pylons required for the steel bridge. Water Treatment Re-use of water generated within the Re-use of water generated within the Mine and Use Mine Area. Area, with on-site treatment of saline water (mostly derived from Permian Aquifer) to produce high quality water for use as off-site irrigation on nearby farm land; waste by-product formed as a solid brine product.

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