Muswellbrook Coal Company Limited

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ESTABLISHED 1907 Muswellbrook Coal Company Limited

100 Year Celebration 1907-2007

Annual Environmental Management Report (AEMR) 1 July 2006 to 30 June 2007

Muswellbrook Coal Company Limited

MUSWELLBROOK COAL COMPANY LIMITED

Name of Leaseholder: Muswellbrook Coal Company Limited

Name of Mines: Muswellbrook No.1 Open Cut Extension Muswellbrook No.2 Open Cut Mine

Titles/Mining Leases: Consolidated Coal Lease 713 Mining Lease 1304 Mining Lease 1513 Mining Lease 1562

No.1 and No.2 Open Cut Operations MOP Commencement Date: 25 May 2007 No.1 and No.2 Open Cut Extension MOP Completion Date: 31 December 2012

AEMR Commencement Date: 1 July 2006 AEMR End Date: 30 June 2007

Reporting Officer: Steve Wylie

Title: Technical Services Manager

Signature:

Date:

Annual Environmental Management Report July 2006 – June 2007 Muswellbrook Coal Company Limited

CONTENTS

1 INTRODUCTION...... 6 1.1 Consents, Lease and Licences...... 6 1.1.1 Development Consents ...... 6 1.1.2 Mining Leases...... 7 1.1.3 Licenses...... 7 1.1.4 Mining Operation Plan ...... 8 1.2 Mine Contacts...... 8 1.3 Environmental Audit...... 8 1.3.1 Environmental Audit Results ...... 8 1.4 Actions Required at Previous AEMR, Dept. of Primary Industries Review...... 10

2 OPERATIONS DURING THE REPORTING PERIOD ...... 12 2.1 Exploration...... 12 2.2 Land Preparation ...... 12 2.3 Construction...... 13 2.4 Mining ...... 13 2.5 Mineral Processing ...... 15 2.5.1 Coal Crushing and Classification Process ...... 15 2.5.2 Coal Preparation Plant ...... 16 2.6 Waste Management...... 17 2.6.1 General Waste...... 17 2.6.2 Waste Stream Inspection & Classification...... 17 2.7 Overburden & Production ...... 19 2.8 Ore and Product Stockpiles ...... 20 2.9 Water Management ...... 21 2.9.1 Water Management System...... 21 2.9.2 Water Classification...... 22 2.9.3 Water Supply and Use...... 23 2.9.4 CCP and Product Stockpile Water Management ...... 24 2.10 Hazardous Material Management...... 24 2.10.1 Fuel Containment ...... 24 2.10.2 Chem Alert System...... 24 2.10.3 Explosives...... 24 2.11 Other Infrastructure Management...... 24

3 ENVIRONMENTAL MANAGEMENT & PERFORMANCE ...... 25 3.1 Air Quality Management ...... 25 3.1.1 Dust Management ...... 25 3.1.2 Air Quality Monitoring Network & RTEMS...... 26 3.1.3 Real Time Environmental Monitoring System ...... 26 3.1.4 Depositional Dust Gauges...... 30 3.1.5 TSP High Volume Air Samplers ...... 30 3.1.6 Tapered Element Oscillating Microbalance (TEOM)...... 30 3.1.7 PM10 High Volume Air Samplers ...... 31 3.1.8 Meteorological Monitoring Stations ...... 32 3.1.9 Meteorological Monitoring Results ...... 34 3.1.10 Depositional Dust Monitoring Results ...... 40 3.1.11 Total Suspended Particulate (TSP) Monitoring Results...... 46 3.2 Erosion and Sediment Control...... 49 3.3 Surface Water Management...... 50 3.3.1 Surface Water Monitoring...... 50 3.3.2 Monthly Surface Water Monitoring Results...... 53 3.3.3 Quarterly Surface Water Monitoring Results...... 56

Annual Environmental Management Report July 2006 – June 2007 Muswellbrook Coal Company Limited

3.4 Ground Water Management ...... 58 3.4.1 Ground Water Monitoring ...... 58 3.4.2 Ground Water Monitoring Results ...... 59 3.4.3 Ground Water Extraction...... 64 3.5 Contaminated Land...... 64 3.6 Flora & Fauna Management ...... 64 3.7 Fauna Management...... 66 3.8 Weeds...... 66 3.8.1 Further Weed Control Improvements ...... 66 3.9 Blasting ...... 67 3.9.1 Blast Criteria ...... 67 3.9.2 Best Practice Drill & Blast...... 67 3.9.3 Blast Monitoring...... 68 3.9.4 No.1 Open Cut Extension Blast Results...... 71 3.9.5 No.2 Open Cut Blasts Results...... 72 3.10 Operational Noise ...... 72 3.10.1 Real Time Directional Noise Monitoring ...... 73 3.10.2 Periodic Noise Monitoring Program...... 75 3.10.3 Periodic Noise Monitoring Results ...... 76 3.11 Visual, Stray Light...... 78 3.12 Aboriginal Heritage ...... 78 3.12.1 Cultural Management ...... 78 3.12.2 Cultural Audit ...... 79 3.12.3 Aboriginal Consultation...... 79 3.13 European Heritage...... 79 3.14 Spontaneous Combustion...... 80 3.14.1 Quarterly Spontaneous Combustion Reports ...... 80 3.14.2 Monthly Spontaneous Combustion Reporting...... 82 3.14.3 Bushfire...... 82 3.15 Mine Subsidence ...... 83 3.16 Hydrocarbon Contamination ...... 83 3.17 Methane Drainage/Ventilation...... 83 3.18 Public Safety...... 83 3.19 Other Issues and Risks...... 83

4 COMMUNITY RELATIONS...... 84 4.1 Environmental Complaints ...... 84 4.2 Community Consultation...... 86 4.2.1 No.1 Open Cut Extension Development ...... 86 4.2.2 Community Consultative Committee ...... 87 4.3 Community Participation...... 87

5 REHABILITATION ...... 89 5.1 Buildings ...... 90 5.2 Rehabilitation of Disturbed Lands...... 90 5.2.1 Rehabilitation Process...... 90 5.2.2 Species Selection ...... 91 5.2.3 Wildlife Corridor ...... 92 5.2.4 Description of Areas Rehabilitated ...... 93 5.3 Other Infrastructure...... 95 5.4 Rehabilitation Trials and Research...... 95 5.5 Further Development of the Final Rehabilitation Plan ...... 95

6 ACTIVITES PROPOSED IN THE NEXT AEMR PERIOD...... 97

Annual Environmental Management Report July 2006 – June 2007 Muswellbrook Coal Company Limited

APPENDICES Appendix 1 AEMR Plan Appendix 2 Dust Monitoring Results Appendix 3 Water Monitoring Results Appendix 4 Blast Monitoring Data Appendix 5 Summary of Complaints

Annual Environmental Management Report July 2006 – June 2007 Muswellbrook Coal Company Limited

1 INTRODUCTION

The Muswellbrook Coal Mine is located on Coal Road, approximately 3 km to the North East of the Muswellbrook Township located in the Hunter Valley of NSW. The Muswellbrook Coal Company Limited (MCC) is a wholly owned subsidiary, which is part of the Idemitsu Kosan Co. Ltd. Group. Idemitsu Kosan Co. Ltd. Group is a Japanese energy company with commercial interests in various parts of the world.

MCC has a long association with coal mining in Muswellbrook, and was one of the first open cut coal mines in Australia. The Greta Coal Measures, currently mined at Muswellbrook Coal, were encountered by chance during water boring operations on the Muswellbrook common in 1907. Underground mining commenced in 1908 and finished in 1997 with the closure of the No.2 Underground mine. Open cut mining commenced in 1944 in the No.1 Open Cut, and still continues in the No.2 Open Cut and the No.1 Open Cut Extension.

The No.2 Open Cut commenced operations in 1965, and was operational until a major highwall failure occurred in January 2005. Currently, the mining operations remain focused on the No.1 Open Cut Extension, which was granted approval on 1 September 2003 and began operations on 8 March 2005. There were no coal mining activities undertaken in the No.2 Open Cut during this reporting period apart from spontaneous combustion control and rehabilitation activities. Information in this report principally focuses on the No.1 Open Cut Extension.

A MOP variation entitled “Muswellbrook Coal Company Open Cut Operations” encompassing operations in both the No.1 Open Cut Extension and No.2 Open Cut was granted approval by the Department of Primary Industries on 25 May 2007.

The No.1 Open Cut Extension is an expansion of the No.1 Open Cut that was closed in 1970, re-opened in 2000 and re-closed in 2002 after removing a seam of coal that had been left unmined below the pit floor. The No.1 Open Cut Extension involves mining eastwards away from the Muswellbrook township, between the existing No.1 Open Cut void and the previous western mining limits of the No.2 Open Cut, almost joining the two pits together. The No.1 Open Cut Extension will mine through old underground workings created by the No.2 Colliery and St Heliers Colliery. Current mining operations in the No.1 Open Cut Extension are planned until 2015, at up to 2 million tonnes per annum of product coal.

This document reports on mining operations for the past year (July 2006 to June 2007) for all MCC mining operations. It is prepared in accordance with the DPI - Mineral Resources “Guidelines to the Mining, Rehabilitation and Environmental Management Process” document EDG03, Version 3, January 2006. This AEMR additionally meets the requirements of the MCC Development Consent for the No.1 Open Cut Extension.

1.1 Consents, Lease and Licences

1.1.1 Development Consents The MCC platform of planning approvals is shown in Table 1.

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TABLE 1 - DEVELOPMENT CONSENTS

Date Development Consent Consent Number 11 Aug 1982 Minister for Planning Surface facilities for the Underground Mine (since and Environment decommissioned and removed) 16 Aug 1985 Muswellbrook Shire Offices, bathhouses and coal handling facilities at the Council (MSC) No.2 Open Cut 16 Aug 1985 DA 721 (MSC) Coal Washery as part of existing coal handling facilities 13 Apr 1989 DA 18/88 (MSC) Coal Haul Road and Road Haulage 14 Oct 1992 DA 78/92 (MSC) Eastern Area of No.2 Open Cut 12 Apr 1999 DA 86/98 (MSC) Approval for Sandy Creek Underground Mine 1 Sep 2003 DA 205/2002 (MSC) Approval for Extension of MCC No.1 Open Cut DA 205/2002 (MSC) – 19 Dec 2005 Amendment to Power line relocation and additions to Workshop Condition 1.1

1.1.2 Mining Leases MCC has operated under a succession of mining titles issued under the relevant legislation since underground mining operations commenced in 1907. MCC also operates partially under existing land use rights, established prior to the enactment of the Environmental Planning and Assessment Act 1979 (EP&A Act 1979).

The No.1 Open Cut Extension operates under mining lease 1562. The No.2 Open Cut and the No.2 Underground operations were conducted under the existing mining lease and Section 74 of the EP&A Act 1979. The No.1 Open Cut operated under numerous individual mining leases prior to their consolidation into CCL 713. Mining leases are shown in Table 2.

TABLE 2 - MINING LEASES Instrument Authority Validity Periods Consolidated Coal Lease DPI 5 April 1990 - 5 April 2011 713 Mining Lease 1304 DPI 12 January 1993 - 12 January 2014 Mining Lease 1513 DPI 12 May 1999 - 12 May 2020 Mining Lease 1562 DPI 16 February 2005 – 16 February 2021

1.1.3 Licenses MCC operates the No.2 Open Cut and associated infrastructure under the following: Environmental Protection License (EPL) No. 656 issued under the Protection of the Environment Operations Act 1997 License for Keeping Dangerous Goods No. 35/021999 Department of Infrastructure, Planning and Natural Resources (DIPNR), Hunter Region license issued under Part 5 of the Water Act, 1912 (WA) for extraction of groundwater – 20BL169014, 20BL169037, 20BL169038 and 20BL170473

Annual Environmental Management Report Page 7 July 2006 – June 2007 Muswellbrook Coal Company Limited

Department of Natural Resources licence issued under Section 10 of the Water Act, 1912 for cutting on unnamed watercourse – 20SL061536

These licenses extend to operations in the No.1 Open Cut Extension.

1.1.4 Mining Operation Plan A new Open Cut Operations Mining Operation Plan (MOP) was approved in May 2007 and covers a six year period to December 2012. The MOP covers the mining operations in both the No.1 Open Cut Extension and No.2 Open Cut.

1.2 Mine Contacts Site personnel responsible for mining, rehabilitation and environmental management, and planning and support functions in rehabilitation and environment are provided in Table 3.

TABLE 3 – GENERAL MANAGER, MINE MANAGER AND ENVIRONMENTAL MANAGER CONTACT DETAILS Name Position Contact Number

Peter Wilkinson General Manager (02) 6543 2799

Carl Gibson Mine Manager (02) 6543 2799

Technical Services Manager Steve Wylie (02) 6543 2799 Environmental Officer Environmental Advisor (Carbon Colin Davies 0439-604-443 Based Environmental) Environmental Assistant (Carbon Lori Dennen-King (02) 6543 2799 Based Environmental)

1.3 Environmental Audit An audit was conducted on 25 August 2006 to satisfy the requirement of the Development Consent (DA 205/2002) – Condition 8.1, which requires that an independent environmental audit be undertaken every 3 years from the date of consent, being 1 September 2003. The audit and report, prepared by Pacrim Environmental, was based on the following: - discussions with Muswellbrook Coal Company personnel - review of documentation, environmental monitoring data, the Development Consent and Licences - observations made during a site inspection - review of compliance with conditions of the Development Consent, Environment Protection Licence, Mining Operations Plan and Water Licenses - comparison of site performance against predictions made in the EIS by reviewing environmental monitoring results and the standard of environmental management on site

1.3.1 Environmental Audit Results Summary excerpts from Pacrim’s report - “It is considered that MCC is maintaining a high standard of environmental management through the implementation of a number of

Annual Environmental Management Report Page 8 July 2006 – June 2007 Muswellbrook Coal Company Limited

mitigation measures. Comparison of environmental monitoring results for the three year period with the prediction of the EIS indicated that the facilities are being conducted generally in accordance with the details and predictions outlined in the EIS. There were no fines or prosecutions related to environmental management during the audit period for the Mine.”

Specific Conditions listed as “non-compliant” in the audit report are summarised in Table 4. All suggested actions arising from the audit have either been completed or are scheduled into future operations.

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TABLE 4 – 2006 ENVIRONMENTAL AUDIT, SUMMARY OF NON-COMPLIANCE Comment or Suggested Reference Subject Status Action Notification to Government Agencies re: name of Environmental Officer Development Consent Advise appropriate government employed at MCC - only Completed 3.1 a & b agencies Muswellbrook Shire Council was informed Add groundwater results in Development Consent Incorporate groundwater results in 2005/2006 AEMR and future Completed 4.3 c (ii) AEMR 2005/2006 reports Add atmospheric inversion Development Consent Incorportate atmospheric inversion results in the 2005/2006 AEMR Completed 6.1.2 (b) results in AEMR 2005/2006 and future reports Change Periodic Noise Monitoring Change Condition prior to next Investigate at next DEC EPL L6.4 measurement criteria from 1m to Licence review Licence Review (June 2008) 30meters of building façade Fueling Bay/Diesel and Oil Storage Locate spill kits in fuel storage EPL O1.1 Completed Area area - contact TPI and arrange. In preparation for mining - apply best Incorporate in planning for the Will consider if and when EPL O1.1 practice methods when re-locating relocation of infrastructure in infrastructure is re-located diesel and oil storage facilities MOP process. Use appropriate dust mitigation EPL O3.2 Toolbox Talks Completed measures at all times Dept Of Infrastructure, Planning and Natural Ground Water Management Plan be The Plan was submitted, but Resources - Water submitted to DIPNR within three was overdue by approximately Noted - Plan is approved Licence No. months from the date of the license 12 months. 20BL169037 Dept Of Infrastructure, Planning and Natural Ground Water Management Plan be The Plan was submitted, but Resources - Water submitted to DIPNR within three was overdue by approximately Noted - Plan is approved Licence No. months from the date of the license 12 months. 20BL169038

1.4 Actions Required at Previous AEMR, Dept. of Primary Industries Review The Department of Primary Industries – Mineral Resources (DPI-MR) conducts an annual site inspection. The inspection was held on 14 March 2007. During the inspection, there was general compliance with the relevant statutory instruments administered by the DPI-MR. However, some issues were identified that either required comment or continued management and these issues are detailed in Table 5.

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TABLE 5 – ISSUES IDENTIFIED DURING THE DPI-MR SITE INSPECTION AND ACTIONS REQUIRED

No. Issue / Observation Action Responsibility Due 1 Spontaneous combustion of MCC is required to minimise MCC Ongoing coal being mined in the No.1 dust generation and control the (refer Open Cut was producing large occurrence of spontaneous section amounts of smoke and dust. combustion. Additional 3.14) management effort (possibly using water infusion or water cart monitor sprays) will be required where dust and smoke cannot be controlled adequately. The Environmental Officer should undertake regular inspections and further controls should be implemented as required. 2 The elevated coal stockpiles MCC is required to develop a MCC Next located near the preparation strategy for either the AEMR plant are actively eroding and decommissioning or (see note are aesthetically incongruent modification of these stockpiles below) with surrounding areas. to improve amenity and prevent active erosion. 3 The creek diversion around Further revegetation effort will MCC Ongoing the No.2 Open Cut highwall need to be applied in this area (refer failure has been constructed throughout the year to ensure a section well but revegetation of the permanent and stable 5) area is poor. vegetation cover. Weeds should also be controlled. This diversion should only convey clean water from the upper catchment and should not, in itself, contribute further suspended solids to the system.

MCC has commenced a process to develop a strategy for modification of the existing elevated coal stockpiles and will provide a report to DPI by 31 December 2007.

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2 OPERATIONS DURING THE REPORTING PERIOD

Operations during the reporting period, including active mining areas, overburden emplacement areas and rehabilitated areas are displayed in the AEMR Plan in Appendix 1. The proposed mining area for the next reporting period is also displayed in the AEMR Plan.

2.1 Exploration There was no exploration undertaken during the reporting period.

2.2 Land Preparation Land preparation had commenced by the end of the reporting period in the No.2 Open Cut in readiness for the first pre-split shots. Land preparation for the No.1 Open Cut Extension continued throughout the reporting period. This involved vegetation clearing, topsoil stripping, and topsoil stockpiling.

Where possible soil horizons A1 and A2 were stripped and stockpiled separately (refer to Figure 1). This process was limited in the No.1 Open Cut Extension due to unsafe operations above old underground workings. All topsoil stockpiles were signposted, and inspections were undertaken by MCC’s Environmental Staff to assess vegetative cover and weed infestation. Inspections during the term of this report found insufficient vegetative cover to stockpiles or stockpiles in the process of developing a suitable vegetative cover. Very dry conditions have restricted revegetation activities throughout the reporting period although heavy rain in June 2007 should see improvements in the next AEMR period.

Weed control was required on topsoil stockpiles during this monitoring period principally for Galenia and Paterson’s Curse. Soil stripping methods are acceptable at this point in time. Areas where the noxious weed Mother-of-Millions was found to occur were not disturbed and the soil taken directly to the dump area and buried.

Topsoil recovery from the Subsidence Zone (fenced area) was poor due to safety considerations preventing dozer access above underground workings. Some topsoil was retrieved through the use of a remote control dozer.

Topsoil recovery from No.2 Cutback commenced at the end of the reporting period and will continue in 2007/08. Topsoil is being directly stockpiled onto No.2 Open Cut rehabilitation areas.

Habitat trees were recovered from No.1 Open Cut and relocated for use in the No.2 rehabilitation works. Smaller trees and vegetable matter were recovered and stockpiled along the southern No.1 pit boundary for future use in rehabilitation works.

The No.1 North West Tongue Dump area was completed. All dump faces are sealed with a minimum of 5-metre thick layer of inert material encapsulating carbonaceous material.

The western limit of the main No.1 dump area was completed to final design of 230RL and reshaped ready for topsoil spreading and seeding. The top five metres of the dump are sealed with inert clay material. The first areas of rehabilitation in the No.1 Open Cut are scheduled for late 2007.

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The volume of soil recovered, soil directly respread on rehabilitated areas, soil currently stockpiled, and soil recovered from stockpiles and respread on rehabilitated areas are displayed in Table 6. Recovered subsoil materials are included.

Figure 1 - A1 Horizon Topsoil Stockpile

TABLE 6 - TOPSOIL VOLUMES FOR THE NO.1 OPEN CUT EXTENSION AND NO.2 OPEN CUT

No.1 Volume (m3) No.2 Volume (m3) Soil Recovered at Start AEMR 30,000 20,000 Soil Stockpiled at end AEMR) 60,000 10,000 Soil Directly Respread on Rehabilitated Areas 0 5,000 (AEMR) Soil Recovered from Stockpiles and Spread on 0 0 Rehabilitated Areas (AEMR)

2.3 Construction During the reporting period some modifications were made to the Coal Handling and Preparation Plant to enable the removal of waste materials from the product coal.

2.4 Mining Mining operations at MCC are conducted in the following sequence:

1. Removal of vegetation (refer to Section 2.2 land Preparation); 2. Topsoil Stripping (refer to Section 2.2 Land Preparation); 3. Removal of overburden; and 4. Excavation of coal from the exposed coal seams.

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During the reporting period there were no coal mining operations in the No.2 Open Cut due to the significant highwall slip that occurred in January 2005. Earthworks to stabilise the highwall commenced in June 2007, after approval of the Mine Operations Plan,.

Mining of the No.1 Open Cut Extension began on 8 March 2005 and continued throughout this reporting period, with operations taking place as required within a 24 hour day, seven day week time period, and blasting occurring between 9:00 am to 5:00 pm Mondays to Fridays. Mining is achieved through open cut methods consisting of an electric shovel, hydraulic face shovel, excavator, front-end loaders and rear dump trucks. Mining commenced in Strip 1, in the northern portion. Operations then proceeded both to the east and to the south, working down through the seam sequences as they were present from the Fleming through to the Loder Seam.

The current fleet used for mining the No.1 Open Cut Extension is provided in Table 7.

Overburden is drilled and blasted prior to being removed by a Cat 5230 Hydraulic Shovel or Komatsu PC 3000 Hydraulic Excavator. It is then hauled in a fleet of Komatsu 730E, 190 tonne, rear dump trucks and sequentially emplaced in the existing No.1 Open Cut Void. Material is placed selectively to encapsulate carbonaceous material to minimise the occurrence of spontaneous combustion in the emplacement areas. Figure 2 provides a view of the No.1 Open Cut Extension in June 2007.

Coal seams are cleaned, drilled and blasted, or ripped with dozers and then removed by the hydraulic excavators or hydraulic shovel. The coal is transported to the coal crushing plant and product stockpiles.

The interburden between the coal seams is drilled and blasted or ripped with dozers and then removed with the hydraulic excavators or hydraulic shovel. The material is selectively dumped to minimise spontaneous combustion.

Figure 2 - No.1 Open Cut Extension View North-East (June 2007)

Annual Environmental Management Report Page 14 July 2006 – June 2007 Muswellbrook Coal Company Limited

TABLE 7 - MINING FLEET

Equipment Model No. Work Area Shovel P&H 2800 Electric Shovel 1 Overburden removal Cat 5230 Hydraulic Face Overburden, interburden and coal 1 Excavator removal Excavator Komatsu 3000 Excavator Overburden, interburden and coal (Backhoe Configuration) – 2 removal Commenced June 2005 Overburden, interburden and coal Dump Truck Komatsu 730E (190 Tonne) 11 removal CAT 992 1 Coal Mining Front End Loader CAT 990 1 Coal stockpile management Surface preparation, road Grader Grader 2 maintenance Water Cart (CAT 777) 70,000 Water Cart 2 Dust suppression, road maintenance litre 3 Dumps, roads, coal and overburden D11R area preparation Dozer Komatsu 475-D (2) and 275 (1) Dumps, roads, coal and overburden 3 area preparation

2.5 Mineral Processing The No.1 Open Cut Extension and the No.2 Open Cut produce thermal coal for both export and domestic markets. The coal from operations at MCC is processed in one of three ways:

1. Mined, crushed and used for export thermal.

2. Mined, crushed and used for domestic thermal.

3. Washed through the Coal Preparation Plant (CPP) for export thermal.

2.5.1 Coal Crushing and Classification Process ROM coal is dumped into a 250 tonne receivable bin by rear dump trucks. The bin has a 450 x 450 mm grizzly to prevent coal choking in the chute of the bin and/or blocking the crusher. Coal is fed from the bin by a variable speed controlled chain feeder onto a conveyor. Figure 3 displays a photo of the coal crushing area.

The conveyor feeds into a rotary breaker which crushes the coal to a final product size of minus 50 mm. The rated capacity of the crushing system is 800 tph. Due to the varying qualities and hardness of the coal, the feed rate can be varied by the chain feeder to allow efficient operations of the crusher.

After crushing, the No.2 belt conveyor system has two ERIEZ self-cleaning Electromagnet belts positioned across the coal stream to remove any ferrous materials. Coal passes under a Coalscan Model 3500 through belt ash analyser. If the Coalscan detects high ash coal, it is directed to a high ash stockpile. Low ash coal is directed to a bypass bin of 300 tonne capacity. The cut point of the diversion depends upon product specifications of purchase contracts. Product coal is hauled by CAT 777 Trucks from the product bin to stockpiles (Refer to Section 2.8 Ore and product Stockpiles).

Annual Environmental Management Report Page 15 July 2006 – June 2007 Muswellbrook Coal Company Limited

Figure 3 - Coal Crushing Plant

ROM coal is placed into a receival bin and then fed into a crusher.

2.5.2 Coal Preparation Plant Some coal is washed in the Coal Preparation Plant (CPP) to reduce ash content to meet contract requirements. The CPP uses a jig as the main method of separation, and has a capacity of approximately 300 tonnes per hour. The CPP removes stone and other contaminants from the coal, producing a reject stream and a production stream and is a closed circuit plant that does not require a tailings settlement pond for recycling of water and disposal of fines slurry. Separation of tailings is achieved by using a thickener tank and flocculating the material. Town water is used in the flocculation at a rate of approximately 100 litres per minute with usage totalling around 1-3 megalitres per quarter. A band press filter dewaters the tailings and the tailings are discharged as a solid reject material (cake). The water reclaimed by this process is then recycled in the CPP. Both coarse and fine reject material is trucked back into the pit for disposal. Figure 4 displays a photo of the CPP.

Figure 4 - Coal Preparation Plant Crushed coal is reclaimed and processed in the CPP.

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2.6 Waste Management The Development Consent for the No.1 Open Cut Extension contains specific requirements for the preparation of a Waste Management Plan (WMP). The main objective of waste management at MCC is to minimise the amount of waste generated, and to ensure the responsible management of all wastes. Waste management services at MCC were tendered in July 2006 with TPI (Transpacific Industries) who provide a total waste management program to the mine.

2.6.1 General Waste Oil & Grease Containment & Disposal Waste oil from the workshop is contained in a waste oil container and removed from site by a DEC approved contractor. Oily water runoff from the re-fuelling bay drains into a sub- surface 20,000 L tank. Runoff from the hardstand washdown bay passes through a three- staged silt trap and an oil/water separator. The collected silt is routinely cleaned out, and waste oil and oily water is removed as required by a DEC approved contractor. The Final Settling Pond Dam contains an oil boom which collects any oil that may be present in the Dam. For further information refer to Section 3.17– Hydrocarbon Contamination.

Rubbish Disposal The disposal of rubbish generated on site is undertaken in accordance with the local ordinances and within existing regulatory guidelines. Currently, scrap steel, plastic bottles and containers (PET), cardboard, wooden pallets, used batteries and aluminium cans are recycled. Putrescible waste is collected bi-weekly and disposed of by Transpacific Industries.

Sewage Treatment Waste water from the bathhouse, office and workshop facilities is processed through a septic tank system and the effluent is pumped out and taken offsite by a DEC licensed contractor (TPI).

2.6.2 Waste Stream Inspection & Classification In order to effectively manage and minimise the amount of waste produced on site it is necessary to identify and classify waste. The WMP identifies and classifies waste streams at MCC and their applicable management, storage and disposal requirements. To ensure that the correct classification is applied to waste, an inspection of all waste streams are undertaken every six months as well as a weekly service audit conducted by a TPI site representative. Quantities of waste generated are quantified in a monthly report supplied by the Total Waste Management contractor, TPI. Waste classifications in these reports include the following:

Sewerage Printer/Toner Cartridges Oily Sludge Paper Oily Water Plastic Containers/Bottles (PET) Oil Oily Rags General Waste Oil Filters Cardboard Tyres Confidential Documents Rebates (batteries, timber, scrap and non-ferrous metal)

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Amounts are determined on a monthly basis as represented in Figures 5-8.

Total Waste Management (July 2006 - June 2007)

100,000 90,000 80,000 70,000 60,000 50,000

Litres 40,000 30,000 20,000 10,000 0 Jul-06 Jan-07 Jun-07 Oct-06 Sep-06 Feb-07 Apr-07 Aug-06 Dec-06 Mar-07 Nov-06 May-07

Sewerage Oily Sludge Oily Water Oil

Figure 5 – Monthly Waste Totals for Sewerage, Oily Sludge, Oily Water and Oil

Total Waste Management - Containers July 2006 - June 2007 60

30 Each 20

0 Jul-06 Jan-07 Jun-07 Oct-06 Sep-06 Feb-07 Apr-07 Dec-06 Aug-06 Mar-07 Nov-06 May-07

Conf.Docs Printer/Toner Cart. Paper PET Oily Rags

Oil Filters (m3) Oil Filters (1.5) Oil Filters (240ltrs) Supply Absorbents Tyres

Figure 6 – Monthly Waste Container Disposal by Type

Initial higher levels of waste were a result of improved site housekeeping activities.

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Total Waste Management - Rebates July 2006 - June 2007 25

Tonnes 10

0 Jul-06 Jan-07 Jun-07 Oct-06 Sep-06 Feb-07 Apr-07 Dec-06 Aug-06 Mar-07 Nov-06 May-07

Batteries Timber (tonnes) Scrap Metal Pallets

Figure 7 – Monthly Waste Tonnes Collected for Rebate Collection by Type

Total Waste Management - 3m 3 Bins July 2006 - June 2007 100 90 80 70 60 50 40

Cubic Metres 30 20 10 0 Jul-06 Jan-07 Jun-07 Oct-06 Sep-06 Feb-07 Apr-07 Aug-06 Dec-06 Mar-07 Nov-06 May-07

General Waste m3 Cardboard m3

Figure 8 – Monthly Total Waste Disposal of General Waste and Cardboard (m3)

2.7 Overburden & Production Overburden waste from the No.1 Open Cut Extension was placed in the existing No.1 Open Cut void. There was no out of pit emplacement of overburden material during the reporting

Annual Environmental Management Report Page 19 July 2006 – June 2007 Muswellbrook Coal Company Limited period. Figure 9 displays in-pit emplacement in the No.1 Open Cut Extension and Table 8 provides production and waste generated over the reporting period.

Figure 9 – No.1 Open Cut Extension In-pit Emplacement (June 2007)

TABLE 8 - PRODUCTION AND OVERBURDEN AND PROCESSING WASTE SUMMARY

ANNUAL PRODUCTION End Next Reporting Reporting Period Period (Estimate) Topsoil Stripped (Cubic Meters) 30,000 20,000 Topsoil Used/Spread (Cubic Meters) 9,000 30,000 Waste Rock - Overburden (BCM) 7,300,000 7,250,000 Product Coal (Tonnes) 1,146,000 1,500,000

2.8 Ore and Product Stockpiles Product coal is hauled from the product bin in a 77 tonne truck to stockpiles. There are five product stockpiles of domestic and export quality coal with a total capacity of 300,000 tonnes. Product coal is trucked off site to the Ravensworth Coal Terminal (RCT) for loading on rail. This coal is then transported by train to Port Waratah for export (refer to Figure 10).

Annual Environmental Management Report Page 20 July 2006 – June 2007 Muswellbrook Coal Company Limited

Figure 10 - Product Coal Stockpile

2.9 Water Management The Development Consent for the No.1 Open Cut Extension contains specific requirements for the preparation of a Site Water Management Plan (SWMP) and a Surface and Groundwater Monitoring Plan (SGMP). These plans combined to form a Water Management and Monitoring Plan (WMMP) and were approved by DIPNR in February 2005. The primary objective of the WMMP is to enable the effective management of on site water to minimise the impact of mining operations on surface and groundwater resources both on and adjacent to the mine site. There were no changes to the water management system in the reporting period and MCC propose to continue using the Surface and Ground Water Management Plan in 2007-2008.

2.9.1 Water Management System The water management system encompasses seven catchments within the current mining area. Refer to the AEMR Plan in Appendix 1 for an outline of the MCC water management system. Table 9 lists MCC’s water management structures.

The water management system at MCC principally consists of: Use of the No.1 Open Cut as storage until the end of the No.1 Open Cut Extension project – water level kept below RL150; Use of the No.2 Open Cut as water storage after completion of mining – groundwater inflows into the pit will gradually decrease because of the increasing head of water in the pit;

Gradual reduction of the No.2 Open Cut in pit emplacement catchment (Qc5) by up to 50%, reducing the amount of water entering the mine water system. This is being achieved by the construction of new holding dams and runoff channelling structures in this catchment; Use of the underground workings as water storage; and Storage of water in the mine water dams and for use as dust suppression.

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The water management system achieves the effective management of on site water by: Meeting the water supply needs of the mine; Separating clean water runoff produced by undisturbed catchments from sediment laden and contaminated runoff from disturbed catchments; Using appropriate sediment controls for dirty water; Recycling and reusing dirty and contaminated water for dust suppression and wash down activities; Using disused open cuts and underground workings as mine water storage; Ensuring the nil discharge of saline mine water by containing all saline mine water on site and minimising the risk of accidental off site discharge; and Monitoring surface and ground waters to determine significant impacts to water quality or beneficial use and undertaking remedial action where required. F - Water Management System Diagram TABLE 9 - WATER MANAGEMENT STRUCTURES Restricted Catchment Groundwater Sediment & Erosion Recirculation Dams Management Control Dams (Mine Water) Structures East Emplacement Dam 1 No.1 Open Cut Void Dam North East Emplacement Dam 2 No.2 Open Cut Void Dam South East Haul Road Dam Workshop Dam Final Settling Pond Coal Stockpile Dam Brickworks Dam 1 Brickworks Dam 2 Blues Crusher Dam Dam 3 West Emplacement Dam

2.9.2 Water Classification Water at MCC is classified as either ‘clean water’, ‘saline/mine water’, ‘dirty water’, or ‘potable water’.

Clean Water Clean water is water which runs off from undisturbed catchments. Clean water was separated, where practicable, from dirty, saline or contaminated water streams, during the reporting period. Clean water may be collected and used under the harvestable rights allowance.

Saline / Mine Water Saline water is water with elevated salinity and suspended sediment generated from disturbed catchments where coal is mined or handled, including the Open Cut voids, coal stockpiles, Coal Preparation Plant, workshop and haul roads. During the reporting period saline water was kept separate from clean water runoff and was collected and reused for processing water.

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Dirty Water Dirty water is non saline stormwater with increased sediment loads principally from disturbed catchments and non-vegetated rehabilitation areas. Dirty water runoff is collected from disturbed areas using drains and bunds, and minimised by diverting clean water from upslope. It is then stored until suitable for use for dust suppression, processing, or discharged from site. During the reporting period dirty water was only discharged from site if the quality was demonstrated to be within target criteria and license conditions or exceeded design storage capacities.

Potable Water Potable water is supplied via a 75 mm diameter pipeline connected to the Muswellbrook Shire Council water supply. This water is used in the workshop, washery, office, bathhouse, and at the high pressure/low volume equipment wash down facilities. On site storage includes two 100 kL concrete water tanks. During the reporting period the average daily consumption was approximately 37 kL per day.

2.9.3 Water Supply and Use To provide more accurate data in recording volumes of water transferred around the site, MCC is in the process of installing flow meters in key areas in the water management system. The completion of this project is expected to be complete by December 2007 encompassing all pertinent pump sites in the system. Volumes of stored water available at MCC are provided in Table 10.

TABLE 10 - STORED WATER VOLUMES HELD (cubic metres) as of 30 June 2007 Start End Storage Capacity Reporting Period Reporting Period CLEAN WATER Bimbadeen Dam 2,250 9,000 9,000 DIRTY WATER Blues Crusher Dam (MCC26) 2,250 9,000 9,000 Brickworks Dam 1 (MCC9) 0 2,000 10,000 Brickworks Dam 2 0 1,000 10,000 East Emplacement Dam South 4,500 18,000 18,000 (MCC23) East Emplacement Dam North 500 10,000 10,000 (MCC25) East Haul Road Dam (MCC24) 0 7,000 7,000 Final Settling Pond 300 5,000 10,000 Dam 3 (MCC 27) 0 12,000 12,000 SALINE OR MINE WATER Dam1 0 12,000 12,000 Dam 2 23,000 11,500 23,000 Workshop Dam 10,000 5,000 10,000 Underground Sump (UG Sump) 0 mined through 100,000 Open Cut Sump (No.2 O/C Void) 10,000 10,000 100,000 CONTAMINATED WATER 0 0 0

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2.9.4 CCP and Product Stockpile Water Management The existing water management system was continued to be used in 2006/2007. Several dams were de-silted. Water management in this area will be rationalised and the layout of water management infrastructure will be improved. Structures surplus to requirements will be decommissioned and the area rehabilitated. Design and maintenance of structures will be to the standards provided in NSW Department of Housing Water Management Guidelines (1998).

2.10 Hazardous Material Management

2.10.1 Fuel Storage Fuel is stored in above ground storage tanks. Diesel is contained in five, Class C1 above ground tanks with a capacity of 110,000L each. These above ground tanks are located 100m from any major building and are bunded with earth walls. The tanks are currently listed under MCC’s License for Keeping Dangerous Goods No. 35/021999, issued by Workcover NSW. During the reporting period the tanks were inspected by the DEC and suggestions to improve bunding were adopted.

2.10.2 Chem Alert System MCC uses the Australian Health Company’s Chem Alert system to manage chemicals used on the mine site. Chem Alert is a computer database of chemical hazard management, which coordinates the storage, transportation and disposal of hazardous chemicals. A computer database of chemicals is maintained on the MCC computer network server and is regularly updated. The MCC Occupational Health and Safety Committee undertake regular audits of chemical use and storage on site.

2.10.3 Explosives The explosives are kept on site and are all securely stored in accordance with all relevant legislation. A blasting contractor is employed to carry out charging and blasting activities.

2.11 Other Infrastructure Management A series of investigations into a possible bypass route around Muswellbrook have taken place over a number of years. At least one of the alternative routes is close to the existing No.1 Open Cut overburden emplacement area. During this reporting period no final decision as to the route that will be followed has been announced by the relevant authorities. Due to the progression of mining in the area during the reporting period, Muswellbrook Coal has closed off Coal Road along the southern pit limit with the approval from the Department of Lands for permanent road closure.

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3 ENVIRONMENTAL MANAGEMENT & PERFORMANCE

3.1 Air Quality Management

3.1.1 Dust Management

The Development Consent for the No.1 Open Cut Extension contains specific requirements for the preparation of a Dust Management Plan (DMP). The primary objective of air quality management on the mine site is to manage and minimise the impact of dust from mining operations on the environment and nearby residences.

Dust mitigation measures have been divided into control procedures for wind blown dust, and control procedures for mining generated dust sources. The main sources of wind blown dust are areas disturbed by mining and Coal Handling and Stockpiling Areas. Control procedures for wind blown dust include:

Disturbing only the minimum area necessary for mining; Reshaping, topsoiling and rehabilitating overburden emplacement areas as soon as practicable after the completion of overburden tipping; Maintaining coal handling areas in a moist condition using water carts to minimise wind blown and traffic generated dust; Promptly cleaning up after any spillage; and Operating water carts around the coal stockpile area to suppress dust on roadways and the coal stockpiles.

The main sources of mining generated dust include, haul roads, minor roads, topsoil stripping, topsoil stockpiling, drilling, blasting, removing overburden, mining coal, raw coal receival bin and the Coal Handling and Preparation Plant. Control procedures for mining generated dust include:

Watering all roads and traffic areas using water carts; Sheeting haul roads with hard wearing material; Controlling haul road locations, using marker posts to clearly define edges; Ripping and revegetating obsolete haul roads and minor roads; Limiting the development of minor roads and clearly defining their location; Watering minor roads that are used regularly for access etc; Watering access tracks used by topsoiling machinery, during loading and unloading; Shaping and locating topsoil stockpiles to minimise area exposed to prevailing wind; Revegetating long term topsoil stockpiles, not used for over 3 months; Lowering dust aprons during drilling; Equipping drills with dust extraction cyclones or water injection systems; Using adequate stemming at all times;

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Ensuring blasting occurs in accordance to the Blast & Vibration Management Plan relating to meteorological conditions; Using automatic sprays when tipping raw coal into the receival bin; and Fitting automatic sprays and shielding at conveyor transfer points.

Further control procedures are implemented during periods of high dust emissions and for short term episodic events. Dust emissions from the premises are controlled by implementing the appropriate dust control methods.

3.1.2 Air Quality Monitoring Network & RTEMS Significant modifications to the existing Muswellbrook Coal air quality monitoring network were conducted in early 2005 to comply with the Development Consent, Environmental Management Strategy, Dust Management Plan (DMP) and the modified DEC EPL. The changes were required due to the commencement of the No.1 Open Cut Extension. The amended Air Quality Monitoring Network is provided in Table 11. No changes were made to the Air Quality Monitoring Network in this reporting period.

TABLE 11 - AIR QUALITY MONITORING NETWORK No. Apparatus Parameter Monitored / Unit Measured 18 Dust Gauges Depositional dust g/m2.month 3 TSP High Volume Air Samplers Total suspended particulates µg/m3 (HVAS) (TSP) 3 3 Tapered Element Oscillating Fine particulate matter (PM10) µg/m Microbalances (TEOM) 3 1 PM10 High Volume Air Samplers Fine particulate matter (PM10) µg/m (HVAS) 4 Meteorological Monitoring Stations Wind speed m/s (MMS) Wind direction Degrees Temperature oC Rainfall mm Barometric pressure hPa Temperature inversion oC/100m elevation Humidity %

3.1.3 Real Time Environmental Monitoring System The Real Time Environmental Monitoring System (RTEMS) consists of: Tapered Element Microbalance System (TEOMS) Meteorological Monitoring Stations (MMS) A Real-Time Directional Noise Monitoring System 4 Blast Monitors

There are four RTEMS sites surrounding MCC mining operations. Site locations are displayed in Figure 11, and the monitoring equipment situated at each site is provided in Table 12. Photographs of each site are displayed in Figures 12 to 15.

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16 15

14 Site 3 24

Site 2 2

27 10 Site 4 26 7 Site 1 20

22 23

LEGEND

Depositional Dust Gauge Muswellbrook Coal Company

TSP High Volume Air Sampler (HVAS) Dust & Meteorological Locations Real-Time PM10 Dust Monitor (TEOM)

Real-Time Meteorological Station

PM High Volume Air Sampler (HVAS) 10

Figure 11 - Dust Monitoring Network

Annual Environmental Management Report Page 27 July 2006 – June 2007 Muswellbrook Coal Company Limited

Figure 12 – Site 1 Real Time Environmental Monitoring System

Site 1 is located adjacent to Queen Street, North Muswellbrook.

Figure 13 - Site 2 Real Time Environmental Monitoring System

Site 2 is located adjacent to Sandy Creek Road, Muswellbrook.

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Figure 14 - Site 3 Real Time Environmental Monitoring System

Site 3 is located opposite St Heliers Road intersection on Sandy Creek Road, Muswellbrook.

Figure 15 - Site 4 Real Time Environmental Monitoring System

Site 4 is located on an old overburden emplacement west of the No.1 Open Cut Extension

Annual Environmental Management Report Page 29 July 2006 – June 2007 Muswellbrook Coal Company Limited

TABLE 12 – MONITORING EQUIPMENT AT REAL TIME ENVIRONMENTAL MONITORING SYSTEM SITES RTEMS RTEMS Site 1 RTEMS Site 2 RTEMS Site 3 Site 4 Tapered Element Oscillating Tapered Element Oscillating Tapered Element Oscillating Microbalance (TEOM) – Microbalance (TEOM) – Fine Microbalance (TEOM) – - Fine Particulates (PM10) Particulates (PM10) Fine Particulates (PM10) Meteorology Monitoring Meteorology Monitoring Meteorology Monitoring Principal Station (MMS) Station (MMS) Station (MMS) MMS Real-Time Directional Noise - - - Monitoring System Blast Monitor – Queen St - - - Monitoring Equipment Not Available Real Time High Volume Air Sampler High Volume Air Sampler High Volume Air Sampler (HVAS) – Total Suspended (HVAS) – Total Suspended (HVAS) – Total Suspended - Particulates (TSP) Particulates (TSP) Particulates (TSP) Dust Gauge #7 Dust Gauge #30 Dust Gauge #24 -

3.1.4 Depositional Dust Gauges The monitoring of depositional dust has occurred in the area surrounding the MCC No.2 Open Cut since 1983. Two additional gauges were installed as part of the commencement of the No.1 Open Cut. Currently there are a total of 18 dust gauges positioned around the No.2 Open Cut and the No.1 Open Cut Extension. All gauges are analysed for insoluble solids, ash residue and combustible matter. The annual average DEC goal for depositional dust outside the current zone of affectation is 4 g/m2.month. Dust Deposition gauge locations are displayed in Figure 11.

All dust gauges were sampled on a monthly basis during the year, and sent to a laboratory for analysis. Results from samples containing excessive organic or foreign matter (i.e. bird droppings, insects, vegetation and algal growth) were excluded. Excessive contamination was determined on the basis of field observations and laboratory analysis.

3.1.5 TSP High Volume Air Samplers Three TSP HVAS were installed as part of the commencement of the No.1 Open Cut. The monitors were located at each of the three TEOM monitoring stations. Monitoring has taken place since their installation on the 8 March 2005. Samples are collected over a 24-hour period on the DEC nominated six day run cycle, and then the filter papers are collected and sent to the laboratory for analysis. The locations of the HVAS are detailed in Figure 11.

3.1.6 Tapered Element Oscillating Microbalance (TEOM) Three TEOM’s were installed and made fully operational on 8 March 2005. The TEOM units continuously monitor fine suspended particulates (PM10). TEOM’s were established at each of the three Real Time Environmental Monitoring Stations (RTEMS). The data collected by the TEOM’s, is transmitted to Muswellbrook Coal by telemetry, on a real time basis.

A picture of a TEOM is provided in Figure 16 and TEOM locations are displayed in Figure

11. An example of the Real Time PM10 data display is provided in Figure 17.

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Figure 16 - TEOM

PM10 Monitor

Figure 17 - Real Time PM10 Trend Data Screen

3.1.7 PM10 High Volume Air Samplers

A PM10 HVAS is maintained on a voluntary basis at the McCully's Gap dust gauge on Campbell’s Hill, Station No. 18. Samples are captured over a 24-hour period on the DEC nominated six day run cycle, and then the filter papers are collected and sent to the laboratory for analysis.

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The PM10 HVAS has previously run during major blasting events at the No.2 Open Cut to obtain possible samples of dust generation caused by blasting. There were no major blast events at the No.2 Open Cut in this reporting period requiring additional dust monitoring.

3.1.8 Meteorological Monitoring Stations During the reporting period Muswellbrook Coal continued to maintain a principal Meteorological Monitoring Station (MMS) located on rehabilitated land to the immediate west of the No.1 Open Cut. This station is part of the Real Time Environmental Monitoring System (RTEMS). Three other Meteorological Monitoring Stations, located around the perimeter of the mine property, provide supplemental information for the system. All four weather stations continuously relay weather data by telemetry to Muswellbrook Coal.

The principal MMS provides 10m elevation wind speed and direction, 2m elevation air temperature, rainfall, humidity, barometric pressure and calculated atmospheric temperature inversion. The inversion calculation is based on the 2m elevation air temperature from the principal MMS and the supplementary MMS 2. These sites were selected due to the RL difference of approximately 80m between the sites, allowing the temperature inversion to be extrapolated and reported over a 100m elevation interval. The supplementary MMS’s provide approximately 2m elevation wind speed, direction, and air temperature.

Photographs of the four RTEMS Sites are provided in Figures 12 to 15. Real-Time meteorological data computer screens are displayed in Figure 18 and Figure 19.

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Figure 18 - Real Time Meteorological Overview Computer Screen

Figure 19 - Real Time Temperature Inversion Trend Chart Computer Screen

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3.1.9 Meteorological Monitoring Results Meteorological data provided in this report was sourced from the principal Meteorological Station at Site 4 (RTEM 4). Wind, rainfall and temperature results are summarised below. Data recovery for the monitoring period was 100%.

Wind Speed and Direction Quarterly wind roses are provided in Figures 20 to 23. Winds were primarily from the northwest and southeast between July to September 2006. From October 2006 through June 2007 the predominant wind direction was east-southeast. These results are consistent with the predominant wind patterns in the Hunter Valley.

Figure 20– Wind rose July to September 2006

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Figure 21– Wind rose October to December 2006

Figure 22 – Wind rose January to March 2007

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Figure 23 – Wind rose April to June 2007

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Rainfall Total annual rainfall was 645mm which is slightly below average compared to the nearest Australian Bureau of Meteorology site at Scone. The long term average rainfall for Scone is 649mm. A summary of average rainfall during the reporting period is provided in Figure 24. Above historical average rainfall was recorded in September and November 2006, March and June 2007, but much lower rainfall occurred during the remainder of the year. The heavy record- breaking rainfall that occurred in early June caused local stream flooding with a precipitation total of over 198.7mm in 3 days (7-9 June 2007). Most dams within the mine property were filled to capacity.

Muswellbrook Coal Open Cut Rainfall July 2006 - June 2007

250

200

150 (mm)

100 Rainfall Rainfall

Jul-06 Sep-06 Oct-06 Jan-07 Dec-06 Feb-07 Jun-07 Apr-07 Nov-06 Aug-06 Mar-07 May-07

MCC Total Rainfall Scone Long Term Average Rainfall

Figure 24 - MCC Monthly Rainfall Total Compared with Scone Monthly Rainfall Average

Annual Environmental Management Report Page 37 July 2006 – June 2007 Muswellbrook Coal Company Limited

Temperature Maximum temperature recorded was 41.3 °C and the minimum was 0.3 °C. This is within the long term minimum and maximum recorded by the Australian Bureau of Meteorology site at Scone, -3.0 °C and 43.5 °C. A summary of minimum, maximum and average monthly temperatures during the reporting period is provided in Figure 25.

Muswellbrook Coal Open Cut Temperatures July 2006 - June 2007 45

C Temperature Deg 15

Jul-06 Jan-07 Jun-07 Oct-06 Feb-07 Sep-06 Apr-07 Dec-06 Mar-07 Aug-06 Nov-06 May-07 Month

Minimum Mean Maximum

Figure 25 - MCC Temperature Chart 2006-7

Inversion Monitoring

Inversion strength is measured between the Open Cut meteorological station (Site 4) and Site 2 on Sandy Creek Road. The sites have an elevation difference of 88 metres and recorded temperatures are used to calculate the temperature differential per 100 metres (inversion strength). Temperatures normally decrease with increase in height above the ground, but a temperature inversion is a temperature increase with height. Meteorological conditions, such as temperature inversion, may increase noise levels by focusing sound- wave propagation paths at a single point. The effect on noise levels can be significant. The trendline displayed in Figure 26 illustrates typical inversion data that is available on the MCC RTEMS on a continual basis. Inversions over 3 °C per 100 metres are considered to be strong and occur primarily during the evening and early morning in the cooler months.

Over the reporting period, inversions were monitored and the daily maximum recorded. Days in each month that recorded an inversion level of 3 °C/100m or greater are displayed in Figure 27. August 2006 had the highest number of days with strong inversions (27) and February the least (1). There was a total of 193 days, during the reporting period, with strong

Annual Environmental Management Report Page 38 July 2006 – June 2007 Muswellbrook Coal Company Limited inversions. This figure represents 53% of the days in a 12-month time span. 6 out of 12 months (50%) had greater than 15 days per month with temperature inversions over 3 oC/100m.

Inversion Levels

April 26-27, 2006

3 Strong Inversion C/100m)

o Level 2

1 Inversion ( Inversion

-1

-2

1:50 PM 3:10 PM 4:30 PM 5:50 PM 7:10 PM 8:30 PM 9:50 PM 1:50 AM 3:10 AM 4:30 AM 5:50 AM 7:10 AM 8:30 AM 9:50 AM 1:50 PM 3:10 PM 4:30 PM 5:50 PM 12:30 PM 11:10 PM 12:30 AM 11:10 AM 12:30 PM Time

Figure 26 - MCC Typical Inversion Trend

Temperature Inversion - Days Over 3.0oC per 100m July 2006 - June 2007

30 27

25 22 22 20 20 19 C o 17 15 15 14 14 14

Days3.0 Over 10 8

1 0 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07

Month

Figure 27 – Temperature Inversion – Days Over 3.0 oC/100m

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3.1.10 Depositional Dust Monitoring Results All gauges, apart from DM 2, 19, and 27, conformed to the DEC's annual dust criteria of 4 g/m2.month. Dust gauge DM 2 is located on MCC property adjacent to the old Brickworks and has been subject to emissions arising from a new housing development project to the northeast. DM 19 is positioned near a cultivated property in the McCullys Gap area to the northwest of the MCC boundary. DM 27 is located on-site, adjacent to a haul road, and subject to mining activities. The mean dust deposition rate for insoluble solids from July 2006 to June 2007 for all monitoring sites was 2.8g/m2.month.

Activities of a housing development project along with the operation of a crusher at a rock quarry on Sandy Creek Road resulted in periods of elevated dust levels that was apparent in the monitoring results. An example of dust emissions from these areas are shown in Figures 28 and 29.

Figure 28 –Trucking Activities in Housing Development Project on Sandy Creek Rd Next to Site 2 Monitoring Station

Figure 29 – Dust Arising from Rock Crusher of Quarry on Sandy Creek Road Near Site 3 Monitoring Station

Annual Environmental Management Report Page 40 July 2006 – June 2007 Muswellbrook Coal Company Limited

Annual average values and historical average values are displayed in Figure 30. The results of the depositional dust monitoring program for the reporting period are presented in Appendix 2. Figure 31 provides a contour plot showing the annual average dust deposition isopleths.

As expected, the contour plot indicates higher dust deposition rates in the No.1 Open Cut on the mine lease but the levels quickly drop outside of this area to levels in the community well within the Development Consent criteria.

Annual Average Depositional Dust Results July 2006 - June 2007 8.0

7.0 7.0 DM 2 is located DM 27 is located on site DM 19 is located in on-site adjacent adjacent to Bimbadeen McCully's Gap area 6.0 to the old Haul Road in the No. 1 O/C on the "EIEIO" Brickworks 5.4 property north of DM 20 is located on 5.0 mine site radio tower hill 2 south of mine site DEC Criteria 4g/m .month 4.3 4.0 3.5

3.0 2.7 2.5 2.5 2.4 2.3 2.4 2.2 2.1 2.2 2.1 2.1 2.1 2.0 2.1 1.9 1.8 1.8 2.0 1.7 1.8 1.7 1.6 1.6 1.7 1.7 1.5 1.6 Insoluble Soilds (g/m2.month) Insoluble 1.5 1.3 1.1 1.2 1.01.0 1.0

0.0 DM2 DM7 DM10 DM14 DM15 DM16 DM17 DM18 DM19 DM20 DM22 DM23 DM24 DM26 DM27 DM28 DM29 DM30 Dust Gauge Number

Annual (12-Month) Average Historical Average Criteria

Figure 30 - Annual Average (g/m2.month) Depositional Dust Results

Excluding the previously described gauges, Dust Deposition gauges outside of the mining lease have generally shown increases up to 0.8 g/m2.month. This is consistent with the prediction in the EIS.

Annual Environmental Management Report Page 41 July 2006 – June 2007 Muswellbrook Coal Company Limited

1434000

1 2 1

1433000

3 7 1432000 4

5 6 5 6 1431000 4

7 3 3 2 1430000 4 6 5 4 1

3 2 2 1429000

1428000 291000 292000 293000 294000 295000 296000

2006-7 Dust Deposition Contour Plot

Figure 31 - Annual Average (g/m2.month) Depositional Dust Contour Plot Note: DG19 removed from the contour plot due to local dust effects not related to Muswellbrook Coal

Annual Environmental Management Report Page 42 July 2006 – June 2007 Muswellbrook Coal Company Limited

Fine Particulate Matter (PM10) Monitoring Results TEOM

Particulate matter less than 10µg mean aerodynamic diameter (PM10) was continuously monitored utilising three Tapered Element Oscillating Microbalances (TEOM). PM10 data collected by the TEOM’s was transmitted by telemetry to the Real Time Environmental Management System (RTEMS).

Annual average PM10 results for the reporting period were below the Development Consent and DEC EPL criteria of 50 µg/m2 maximum 24-hour average at all sites. The long term average since installation was also below the Development Consent and DEC EPL criteria 2 of 30 µg/m . Table 13 displays the average PM10 value at each site during the reporting period.

Data Recovery The TEOM’s are a continuous electronic monitoring system that is subject to equipment faults, communication losses, power outages and maintenance time. High data recovery is considered essential and data recovery levels obtained in 2006/2007 were acceptable.

TABLE 13 - TEOM PM10 AVERAGES - 1 JULY 2006 TO 30 JUNE 2007

Annual Average PM Development Consent & 10 Data Site Number Concentration DEC Annual Average Recovery % (µg/m3)* Criteria (µg/m3)

1 17.5 30 99

2 22.5 30 92

3 20.5 30 93

Average of all Sites: 20.2 95

Notes: *Results are total contribution from all sources.

Figures 32 to 34 display the 24-hour average PM10 results for each site during the reporting period. A table of comprehensive PM10 results is provided in Appendix 2.

The annual average PM10 concentrations are within the predicted annual average levels in 3 the EIS of 22.6 µg/m . The drought and other PM10 sources could have affected the average over the monitoring period.

Several 24-hour average results above 50 µg/m3 were recorded over the monitoring period - two at Site 1, sixteen at Site 2 and six at Site 3. The National Environment Protection 3 Measures (NEPM) goal within 10 years is a maximum PM10 <50 µg/m of up to 5 days per year.

Annual Environmental Management Report Page 43 July 2006 – June 2007 Muswellbrook Coal Company Limited

Site 1 (Queen Street) - PM10 TEOM Monitoring 1 July 2006 - 30 June 2007 60

Short Term DEC Criteria 50ug/m3 (24 Hr Average) 50

) 40 3 Long Term DEC Criteria 30ug/m3 (Annual Average)

(ug/m 30 10

PM 20

0 1-Jul-06 16-Jul-06 31-Jul-06 12-Jan-07 27-Jan-07 11-Jun-07 26-Jun-07 14-Oct-06 29-Oct-06 11-Feb-07 26-Feb-07 14-Sep-06 29-Sep-06 12-Apr-07 27-Apr-07 13-Dec-06 28-Dec-06 13-Mar-07 28-Mar-07 15-Aug-06 30-Aug-06 13-Nov-06 28-Nov-06 12-May-07 27-May-07

24hr Average YTD Annual Average Long Term DEC Criteria Short Term DEC Criteria

Figure 32 - Site 1 TEOM PM10 Monitoring Results

Site 2 (Sandy Creek Rd.) - PM10 TEOM Monitoring 1 July 2006 - 30 June 2007 80

60 3

) Short Term DEC Criteria 50ug/m (24 Hr Average) 3 50

40 (ug/m

10 Long Term DEC Criteria 30ug/m3 (Annual Average) 30 PM

24hr Average YTD Annual Average Long Term DEC Criteria Short Term DEC Criteria

Figure 33 - Site 2 TEOM PM10 Monitoring Results

Annual Environmental Management Report Page 44 July 2006 – June 2007 Muswellbrook Coal Company Limited

Site 3 (McCully's Gap) - PM10 TEOM Monitoring 1 July 2006 - 30 June 2007

60 Short Term DEC Criteria 50ug/m3 (24 Hr Average) ) 3 50

40 (ug/m 3 10 Long Term DEC Criteria 30ug/m (Annual Average) 30 PM

24 Hr Average YTD Annual Average Long Term DEC Criteria Short Term DEC Criteria

Figure 34 - Site 3 TEOM PM10 Monitoring Results

McCully’s Gap (Campbell’s Hill) PM10 HVAS

The Annual Average PM10 HVAS recorded over the reporting period by the Campbell’s Hill monitor located in the McCully's Gap area, was 13.5µg/m3. Results are displayed in Figure 35 and Table 14 and show the recorded average is well below the DEC maximum annual average of 30µg/m3.

TABLE 14 - PM10 HVAS AVERAGE - 1 JULY 2006 TO 30 JUNE 2007 Annual Average PM 10 Development Consent & DEC Site Concentration Data Recovery % Annual Average Criteria (µg/m3) (µg/m3)* McCully's 13.5 30 100 Gap Notes: * Calculated for the 12 months 1 July 2006 to 30 June 2007 * Results are total contribution from all sources.

3 The annual average PM10 is well below the predicted impact level of 22.6 µg/m provided in the EIS.

Annual Environmental Management Report Page 45 July 2006 – June 2007 Muswellbrook Coal Company Limited

McCully's Gap (Campbells Hill) PM10

1 July 2006 - 30 June 2007 60

Short Term DEC Criteria 50ug/m3 (24 hr average) 50

40 3 Long Term DEC Criteria 30ug/m3 (annual average)

ug/m 30 10 PM 20

0 3-Jul-06 9-Apr-07 1-Oct-06 8-Jun-07 9-Jan-07 8-Feb-07 2-Aug-06 1-Sep-06 13-Jul-06 23-Jul-06 9-May-07 19-Apr-07 29-Apr-07 11-Oct-06 21-Oct-06 31-Oct-06 18-Jun-07 28-Jun-07 19-Jan-07 29-Jan-07 10-Mar-07 20-Mar-07 30-Mar-07 18-Feb-07 28-Feb-07 10-Nov-06 20-Nov-06 30-Nov-06 10-Dec-06 20-Dec-06 30-Dec-06 12-Aug-06 22-Aug-06 11-Sep-06 21-Sep-06 19-May-07 29-May-07

PM10 Daily (ug/m3) PM10 24 hour Assessment Criteria (<50 ug/m3) PM10 Long Term (Annual) Assessment Criteria (<30 ug/m3) PM10 Annual Average YTD (ug/m3)

Figure 35 – McCully’s Gap (Campbell’s Hill) HVAS PM10 Monitoring Results

3.1.11 Total Suspended Particulate (TSP) Monitoring Results Average TSP results for the reporting period were well below the Development Consent, DEC EPL and the National Health and Medical Research Council (NHMRC) long term 2 criteria of 90 µg/m at all sites. The ratio of PM10 to TSP on TSP run days is 48%. This is a similar ratio to those found at other sites in the Hunter Valley. Table 15 displays the average TSP value at each monitoring location during the reporting period. Figures 36 to 38 display the 24-hour TSP results over the monitoring period. Elevated dust results, while not exceeding any development consent criteria, appear to indicate that the non-mining activities near the mine site (new housing development and crusher at rock quarry) have had a direct impact on dust levels. As shown in Figures 37 and 38, increased dust concentrations are evident from monitors at Site 2 and Site 3, along Sandy Creek Road, from late November 2006 through to mid-March 2007. Refer to Figures 28 and 29 as examples of non-mining activities around the monitoring sites. A comprehensive table of TSP results is provided in Appendix 2.

TABLE 15 - TSP AVERAGES - 1 JULY 2006 TO 30 JUNE 2007 Annual Average TSP Development Consent & DEC Site Concentration Data Recovery % Annual Average Criteria (µg/m3) (µg/m3)* 1 39 90 100 2 61 90 100 3 50 90 100 Average of 50 100 all Sites Note: *Results are total contribution from all sources.

Annual Environmental Management Report Page 46 July 2006 – June 2007 Muswellbrook Coal Company Limited

The annual average TSP results are below the annual average TSP predictions in the EIS for Sites 1 and 3 of 53.6 µg/m3, but slightly above at Site 2. Site 2 was impacted by cumulative effects from the mine, agriculture, drought and a nearby housing subdivision. The Annual Average remains well below maximum criteria.

Site 1 (Queen Street) - Total Suspended Particulates HVAS 1 July 2006 - 30 June 2007

100 NHMRC Annual Average Criteria 90ug/m3 90

70 )

3 60

40 TSP (ug/m TSP 30

0 3-Jul-06 7-Oct-06 5-Jan-07 6-Mar-07 6-Nov-06 8-Aug-06 1-Sep-06 15-Jul-06 27-Jul-06 5-May-07 11-Apr-07 23-Apr-07 19-Oct-06 31-Oct-06 17-Jan-07 29-Jan-07 10-Jun-07 22-Jun-07 10-Feb-07 22-Feb-07 18-Mar-07 30-Mar-07 18-Nov-06 30-Nov-06 20-Aug-06 13-Sep-06 26-Sep-06 12-Dec-06 24-Dec-06 17-May-07 29-May-07 Total Suspended Particulate TSP Rolling Annual Average Annual Average Criteria

Figure 36 - Site 1 TSP Monitoring Results

Annual Environmental Management Report Page 47 July 2006 – June 2007 Muswellbrook Coal Company Limited

Site 2 (Sandy Creek Rd.) - Total Suspended Particulates HVAS 1 July 2006 - 30 June 2007

200 190 180 170 160 150 140

) 130 3 120 110 3 100 NHMRC Annual Average Criteria 90ug/m 90

TSP (ug/m TSP 80 70 60 50 40 30 20 10 0

9-Jul-06 5-Apr-07 1-Oct-06 4-Jun-07 4-Feb-07 6-Dec-06 2-Aug-06 7-Sep-06 21-Jul-06 17-Apr-07 29-Apr-07 13-Oct-06 21-Oct-06 31-Oct-06 16-Jun-07 28-Jun-07 11-Jan-07 23-Jan-07 12-Mar-07 24-Mar-07 16-Feb-07 28-Feb-07 12-Nov-06 24-Nov-06 18-Dec-06 30-Dec-06 14-Aug-06 26-Aug-06 19-Sep-06 11-May-07 23-May-07 Total Suspended Particulate TSP Rolling Annual Average Annual Average Criteria

Figure 37 - Site 2 TSP Monitoring Results

Site 3 (Sandy Creek Rd & St. Heliers Rd) - Total Suspended Particulates HVAS

1 July 2006 - 30 June 2007

130 120 110 100 NHMRC Annual Average Criteria 90ug/m3 90 ) 3 80 70 60

TSP (ug/m 50 40 30 20 10 0

9-Jul-06 1-Oct-06 5-Jan-07 6-Mar-07 6-Nov-06 2-Aug-06 7-Sep-06 21-Jul-06 5-May-07 13-Oct-06 25-Oct-06 11-Apr-07 23-Apr-07 10-Jun-07 22-Jun-07 17-Jan-07 29-Jan-07 18-Mar-07 30-Mar-07 10-Feb-07 22-Feb-07 24-Nov-06 30-Nov-06 14-Aug-06 26-Aug-06 19-Sep-06 12-Dec-06 24-Dec-06 17-May-07 29-May-07

Total Suspended Particulate TSP Annual Average YTD Annual Average Criteria

Figure 38 - Site 3 TSP Monitoring Results

Annual Environmental Management Report Page 48 July 2006 – June 2007 Muswellbrook Coal Company Limited

3.2 Erosion and Sediment Control The Development Consent for the No.1 Open Cut Extension contains specific requirements for the preparation of an Erosion and Sediment Control Plan (ESCP). The ESCP was approved by DIPNR in February 2005. The main objective of the ESCP is to prevent the erosion of soil from the site and its transport downstream resulting in sedimentation of watercourses. This will be achieved through the implementation of the following strategies:

Separating clean water runoff produced by undisturbed catchments from dirty and contaminated runoff from disturbed catchments; Reducing water runoff velocity; Controlling flow volume and path; Constructing sediment control dams at the base of emplacement areas and disturbed areas to improve quality of discharged water; and Implementing control structures that promote stable landforms.

There are two main natural catchments in the area of mining, associated with Muscle Creek and Sandy Creek. The No.1 Open Cut Extension area contains undisturbed land surfaces that drain towards Sandy Creek, however some of the runoff is captured by dams. Water from undisturbed catchments in the No.1 Open Cut Extension area is diverted around mining operations by diversion banks and channelled into adjacent watercourses.

Drainage from mine infrastructure areas, including the coal crushing plant and stockpile area, is collected in a dam and is re-used around the mine site for dust suppression. All disturbed or newly rehabilitated areas contain diversion banks (major and minor graded banks) to control the flow of water from catchment areas and to contain dirty runoff on the mine site.

Runoff from disturbed or newly rehabilitated areas is directed to sediment control dams, constructed at the base of spoil emplacement areas, or along graded banks or waterways as appropriate. Sediment control dams are regularly cleaned out to maintain maximum volume and ensure efficient settlement of solids from stormwater.

Sediment mobilisation and erosion is minimised by the incorporation of the following controls:

The installation of erosion and sediment controls, if required, prior to disturbance of any land; The restriction of the extent of disturbance to the minimum that is practical and in accordance with the MOP; The progressive rehabilitation of disturbed land in accordance with the MOP and the construction of drainage controls to improve the stability of rehabilitated land; The protection of natural drainage lines and watercourses by the construction of erosion control devices such as diversion banks and channels and sediment retention dams as necessary; The restriction of access to rehabilitated areas; and

Annual Environmental Management Report Page 49 July 2006 – June 2007 Muswellbrook Coal Company Limited

Management of erosion and sediment control of affected surface watercourses/water bodies, including creek lines within or adjacent to the DA area.

Rehabilitation is completed at the East Emplacement Area (EEA). The rock-lined waterways have been effectively completed and the sediment dams are in operation. The EEA has been revegetated with pasture areas, tree plots and tree corridors, and this revegetation is performing well. The revegetated EEA is assisting in reducing the amount of sediment load in the run-off water.

The heavy precipitation received during the storm on 8 June 2007 resulted in minimal damage around the mine site with some scouring occurring in a few locations but overall the rehabilitation held up well, especially the Eastern Emplacement rehab area.

3.3 Surface Water Management

3.3.1 Surface Water Monitoring MCC has been monitoring the quality of surface water for many years. The surface water monitoring program includes the following in accordance with the Surface and Groundwater Monitoring Plan (SGMP). Monthly monitoring of mine site storage dams (Dam 1, Final Settling Pond, and the No.1 and No.2 Open Cut voids) for pH, EC and TSS; Quarterly monitoring of MCC 7, MCC8, MCC9, MCC23, MCC24, MCC25, MCC26 and MCC27 for pH, EC and TSS; and Annual monitoring at these sites for all analytes.

Refer to Figure 39 for the location of surface water monitoring sites. Site descriptions are provided in Table 16.

Annual Environmental Management Report Page 50 July 2006 – June 2007 Muswellbrook Coal Company Limited

TABLE 16 – WATER MONITORING LOCATIONS AND DESCRIPTIONS

Site Reference Description of Structure Classification of Structure Dam 1 Dam 1 – overflows to Dam Restricted Catchment – Mine Water 2 Recirculation Dam Dam 2 Dam 2 Restricted Catchment – Mine Water Recirculation Dam OC Sump (No.2) In Pit Sump Groundwater Management Structure UG Sump (No.1 OC) In Pit Sump Groundwater Management Structure – no longer sampled RDH472 Groundwater Bore Intersects the St Heliers seam in No.2 Underground RDH522 Groundwater Bore Intersects the Muswellbrook seam in the St Heliers Underground DDH 604 Geotechnical Hole No.2 Underground, Cut 17 Highwall DDH 584 Gas Sampling Hole No.2 Underground Workings, Lewis seam MCC7 Muscle Creek Upstream Surface Water Monitoring MCC8 Muscle Creek Downstream Surface Water Monitoring MCC9 Brickworks Dam 1 Sediment and Erosion Control Dam MCC12 Final Settling Pond Sediment and Erosion Control Dam

MCC23 East Emplacement Dam Sediment and Erosion Control Dam South MCC24 East Haul Road Dam Sediment and Erosion Control Dam MCC25 East Emplacement Dam Sediment and Erosion Control Dam North MCC26 Blues Crusher Dam Sediment and Erosion Control Dam MCC27 Dam 3 Sediment and Erosion Control Dam

Annual Environmental Management Report Page 51 July 2006 – June 2007 Muswellbrook Coal Company Limited

RDH522 RDH522

MCC25 DDH 604 DAM 1

MCC27 DAM 2 MCC26 MCC23

RDH472 MCC9 MCC24

MCC9 UG SUMP MCC12 DDH 584

RDH 601

MCC8 MCC7

LEGEND

Surface Water Monitoring Location Muswellbrook Coal Company

Water Monitoring Locations Ground Water Monitoring Location

Figure 39 – Surface and Ground Water Monitoring Locations

Annual Environmental Management Report Page 52 July 2006 – June 2007 Muswellbrook Coal Company Limited

3.3.2 Monthly Surface Water Monitoring Results Annual average pH, EC and TSS results and range are displayed for monthly surface water monitoring sites in Figures 40 to 42. Comprehensive monthly surface water monitoring results are provided in Appendix 3. Maximum and minimum values are shown in each chart. Due to the advancement of mining activities through the No.1 Open Cut Void, sampling is no longer possible from this site and it has been removed from the monthly collection roster. pH The annual average pH levels for monthly surface water monitoring sites (Dam 1, Final Settling Pond, and the No.2 Open Cut Voids) were slightly alkaline, ranging from 7.2 to 7.9. The minimum and maximum pH levels recorded during the reporting period were 6.5 and 8.3 respectively, at the Final Settling Pond. The pH levels at monthly monitoring sites, were within recommended ecosystem pH levels of 6.5 – 9.5 throughout the reporting period.

Annual Average pH (YTD) - Monthly Surface Water Monitoring July 2006 - June 2007

9.0

8.5

8.0

7.5 pH

7.0

6.5 DRY 6.0 Dam 1/2 MCC12 Final Settling No.1 Open Cut Void No.2 Open Cut Void Pond

pH Annual Average YTD Typical Mine Water pH Maximum Level 8.5

Figure 40 - Monthly Surface Water Monitoring Annual Average pH Chart

Annual Environmental Management Report Page 53 July 2006 – June 2007 Muswellbrook Coal Company Limited

Electrical Conductivity Annual average electrical conductivity (EC) results for monthly surface water monitoring sites (Dam 1, Final Settling Pond, and No.2 Open Cut Voids) ranged from 4899 µS/cm to 6808 µS/cm. At the Final Settling Pond, the minimum and maximum EC levels recorded during the reporting period were 2170 µS/cm and 10,790 µS/cm respectively. Typically, EC levels for mine water are greater than 4000 µS/cm, similar to previous results.

Annual Average EC (YTD) - Monthly Surface Water Monitoring July 2006 - June 2007

12000

10000

8000

6000

EC (uS/cm) 4000

2000 DRY 0 Dam 1/2 MCC12 Final Settling No.1 Open Cut Void No.2 Open Cut Void Pond

EC Annual Average YTD

Figure 41 - Monthly Surface Water Monitoring Annual Average EC Chart

Annual Environmental Management Report Page 54 July 2006 – June 2007 Muswellbrook Coal Company Limited

Total Suspended Solids (TSS) Annual average Total Suspended Solids (TSS) results for monthly surface water monitoring sites (Dam 1, Final Settling Pond, and the No.2 Open Cut Voids) ranged from 4 mg/L to 29 mg/L. The minimum and maximum TSS levels recorded during the reporting period were 2 mg/L and 105 mg/L, however generally TSS results were below 30 mg/L.

The Final Settling Pond can receive water of high suspended solids however,t is designed to hold the water and allow solids to settle before release. Water of unacceptable quality can be pumped back to mine storage dams.

Annual Average TSS (YTD) - Monthly Surface Water Monitoring July 2006 - June 2007

115 110 105 100 95 90 85 80 75 70 65 60 55 50

TSS (mg/L) TSS 45 40 35 30 25 20 15 10 5 DRY 0 Dam 1/2 MCC12 Final Settling No.1 Open Cut Void No.2 Open Cut Void Pond

TSS Annual Average YTD

Figure 42 - Monthly Surface Water Monitoring Annual Average TSS Chart

Annual Environmental Management Report Page 55 July 2006 – June 2007 Muswellbrook Coal Company Limited

3.3.3 Quarterly Surface Water Monitoring Results Annual average pH, EC and TSS results and range are displayed for quarterly surface water monitoring sites in Figures 43 to 45. Comprehensive quarterly surface water monitoring results are provided in Appendix 3. Refer to Figure 39 for the location of the surface water monitoring sites. Maximum and minimum values are shown in each chart. pH The annual average pH levels for quarterly surface water monitoring sites (MCC7, MCC8, MCC9, MCC23, MCC24, MCC25, MCC26 and MCC27) were slightly alkaline ranging from 6.6 to 8.3. The minimum and maximum pH levels recorded during the reporting period were 6.5 and 9.1, respectively. Annual average pH levels at quarterly monitoring sites were within recommended ecosystem pH levels of 6.5 – 9.5, throughout the reporting period.

pH Annual Average (YTD) - Quarterly Surface Water Monitoring September and December 2006, March and June 2007

9.5

9.0

8.5

8.0

pH 7.5 7.0 6.5 6.0 MCC7 MCC8 MCC9 MCC23 MCC24 MCC25 MCC26 MCC27

YTD AVERAGE

Figure 43 - Quarterly Surface Water Monitoring Annual Average pH Chart

Annual Environmental Management Report Page 56 July 2006 – June 2007 Muswellbrook Coal Company Limited

Electrical Conductivity Annual average electrical conductivity (EC) results for quarterly surface water monitoring sites (MCC7, MCC8, MCC9, MCC23, MCC24, MCC25, MCC26 and MCC27) ranged from 380 µS/cm at MCC9, to 15,855 µS/cm at MCC23. The minimum and maximum EC levels recorded during the reporting period were 380 µS/cm at MCC9 and 35,300 µS/cm at MCC23. High EC levels were recorded in dams due to evaporation effects. Many site dams contained low water volumes or were dry, due to the prevailing drought conditions, over most of the monitoring period.

EC Annual Average (YTD) - Quarterly Surface Water Monitoring September and December 2006, March and June 2007

40000

35000

30000

25000

20000 EC 15000

10000

5000

0 MCC7 MCC8 MCC9 MCC23 MCC24 MCC25 MCC26 MCC27

YTD AVERAGE

Figure 44 - Quarterly Surface Water Monitoring Annual Average EC Chart

Total Suspended Solids (TSS) Annual average TSS results for quarterly surface water monitoring sites (MCC7, MCC8, MCC9, MCC23, MCC24, MCC25, MCC26 and MCC27) ranged from 8 mg/L to 230 mg/L. The minimum and maximum TSS recorded during the reporting period were 2 mg/L and 646 mg/L. TSS for all quarterly monitoring sites, apart from MCC27, were well below the recommended guidelines of less than 120 mg/L for ecosystems and undisturbed surface water. The MCC27 location, due to a drought situation, had very low water levels throughout the reporting period which attributed to the elevated TSS levels.

Annual Environmental Management Report Page 57 July 2006 – June 2007 Muswellbrook Coal Company Limited

TSS Annual Average (YTD) - Quarterly Surface Water Monitoring September and December 2006, March amd June 2007

700

600

500

400

TSS 300

200

100

0 MCC7 MCC8 MCC9 MCC23 MCC24 MCC25 MCC26 MCC27

YTD AVERAGE

Figure 45 - Quarterly Surface Water Monitoring Annual Average TSS Chart

3.4 Ground Water Management The coal seams are the main aquifers in the coal measures. The No.1 Open Cut Extension mines through strata and groundwater regimes already disturbed by mining with the disused mine workings constituting the major source of groundwater in this area.

Mining will lower the water levels in the Greta Coal Measures to the base of the Loder Seam over a small area. The Loder Seam contains brackish water and is not considered a groundwater resource.

Historically, from the EIS, groundwater quality parameters (pH and Electrical Conductivity) of the No.1 Open Cut Extension area were determined through the analysis of samples from 12 wells intersecting unworked Greta Coal Measures. Mean EC was 5,535 µS/cm and mean pH was 7.6. The water is not suitable for potable uses or irrigation, and is generally only useful for stock consumption.

Mining the No.1 Open Cut Extension should improve the groundwater regime in the area, because a large portion of mined workings will be removed and replaced with spoil. This will create a better environment for groundwater recovery and may improve groundwater quality.

3.4.1 Ground Water Monitoring The groundwater monitoring program is based on two bores intersecting the No.2 Underground workings (Bore RDH522) and St Heliers Colliery workings (Bore RDH472) in accordance with the SGMP. During the previous reporting period, an additional bore intersecting the No.2 Underground, Lewis seam (DDH584) was added to the ground water monitoring program. The ground water monitoring program is displayed in Table 17. Monitoring commenced with the start of the No.1 Open Cut Extension operation in March 2005 and is conducted on a monthly basis, measuring:

Annual Environmental Management Report Page 58 July 2006 – June 2007 Muswellbrook Coal Company Limited

Groundwater depth; pH; and Electrical Conductivity.

Comprehensive water quality analysis, is undertaken annually from these bores in March. Results of these tests can be found in Appendix 3. Unfortunately, during this sampling period RDH472 and DDH584 were dry and sampling could not be conducted for comprehensive analysis. In the previous reporting period two additional bores intersecting the No.2 Underground were added to the monitoring program; the first one was located in the No.1 Open Cut (RDH 601) and the second in the Cut 17 highwall area of the No.2 Open Cut (DDH604). Due to the progress of the mine, RDH601 is no longer available for monitoring. As part of the groundwater monitoring program, water depth is taken on a monthly basis from bore DDH604. The No.1 Open Cut overlies part of the No.2 Underground workings.

TABLE 17 - GROUND WATER MONITORING PROGRAM Monthly Name Location Annual pH EC Depth Comprehensive Quality Test Bore RDH522 No.2 Underground Workings 3 3 3 3

Bore RDH472 St Heliers Colliery Workings 3 3 3 3 No.2 Underground, Lewis Bore DDH584 3 3 3 3 seam (gas sampling hole) No.2 Underground, Cut 17 Bore DDH604 3 highwall (geotechnical hole)

3.4.2 Ground Water Monitoring Results Bore RDH472 was not sampled during the last 6 months of the reporting period because the monitoring site was classified as “dry”. Due to an obstruction in the piezometer of RDH522 sampling had been suspended until February 2006 when monitoring resumed at the actual pump site. All other sites were sampled on a monthly basis except when water levels were too low or access was restricted. Historical groundwater results are provided in Appendix 3. Relative levels, pH and Electrical Conductivity sampling results are shown in Figures 46 to 53. A groundwater contour plot could not be generated due to insufficient data.

Annual Environmental Management Report Page 59 July 2006 – June 2007 Muswellbrook Coal Company Limited

Borehole RDH 522 - RL Levels July 2006 - May 2007 130

120 110

100

90 (meters) Level Reduced 80 1/2/07 1/3/07 1/4/07 1/5/07 1/6/07

Date

STATISTICAL ANALYSIS: Mean - 114 Min - 91 Max - 127 Standard Deviation - 16.7

Figure 46 – Reduced Levels for RDH522

Borehole RDH 522 - pH and Electrical Conductivity

February - May 2007 8.5 7000 8 6500 6000 7.5 5500 7 pH

pH 5000 6.5 4500 EC (uS/cm) EC 6 4000 5.5 3500 5 3000 1/2/07 1/3/07 1/4/07 1/5/07 Date

STATISTICAL ANALYSIS: pH Mean - 7.0 Min - 6.6 Max - 7.2 Standard Deviation - 0.24 EC Mean - 5812 Min - 5110 Max - 6740 Standard Deviation - 779

Figure 47 – Water Quality (pH and EC) for RDH522

Annual Environmental Management Report Page 60 July 2006 – June 2007 Muswellbrook Coal Company Limited

Borehole RDH 472 - RL Levels July - December 2006 150

148

146

144

142

140

Reduced Level Level (meters)Reduced 138 136 1/7/06 1/8/06 1/9/06 1/10/06 1/11/06 1/12/06 Date

STATISTICAL ANALYSIS: Mean - 146 Min - 141 Max - 149 Standard Deviation - 2.82

Figure 48 – Water Levels for RDH472

Borehole RDH 472 - pH and Electrical Conductivity July - December 2006

8.5 6000

8.0 5500 7.5 5000 pH 7.0

pH 4500 6.5 EC

4000 EC (uS/cm) 6.0 5.5 3500

5.0 3000 1/7/06 1/8/06 1/9/06 1/10/06 1/11/06 1/12/06 Date

STATISTICAL ANALYSIS: pH Mean - 6.8 Min - 6.6 Max - 7.4 Standard Deviation - 0.28

EC Mean - 5160 Min - 4850 Max - 5550 Standard Deviation - 267

Figure 49 – Water Quality (pH and EC) for RDH472

Annual Environmental Management Report Page 61 July 2006 – June 2007 Muswellbrook Coal Company Limited

Borehole DDH 584 - RL Levels July 2006 - May 2007 160

155

150

145

(meters) Level Reduced 140

6 7 7 06 0 06 /06 07 0 /07 0 /7/ /8/ 1/ /1/ /2/ /6/ 1 1 1/9/06 /1 /12 1 1 1/3/07 1/4 1/5/07 1 1/10/06 1 1 Date STATISTICAL ANALYSIS: Mean - 149 Min - 144 Max - 156 Standard Deviation - 4.36

Figure 50 – Water Level for DDH584

Borehole DDH 584 - pH and Electrical Conductivity

July 2006 - February 2007 8.5 5500

8.0 5000 7.5 4500 7.0 pH

pH 6.5 4000 EC (uS/cm) EC 6.0 3500 5.5

5.0 3000 1/7/06 1/8/06 1/9/06 1/10/06 1/11/06 1/12/06 1/1/07 1/2/07

Date STATISTICAL ANALYSIS: pH Mean - 7.0 Min - 6.5 Max - 7.2 Standard Deviation - 0.28 EC Mean - 5099 Min - 4980 Max - 5210 Standard Deviation - 78

Figure 51– Water Quality (pH and EC) for DDH584

Annual Environmental Management Report Page 62 July 2006 – June 2007 Muswellbrook Coal Company Limited

Borehole DDH 604 - RL Levels July 2006 - May 2007 160

150 140

130 120

110 Reduced Level (meters) Level Reduced

100

6 6 /06 /0 /06 /06 /07 /07 /07 8 /9 0 1/0 2 /1 /2 4 1/7/06 1/ 1 /1 1 1 1/3/07 1/ 1/5/07 1/6/07 1/1 1 1/1 Date

STATISTICAL ANALYSIS: Mean - 135 Min - 116 Max - 148 Standard Deviation - 11.9

Figure 52 – Water Level for DDH604

Borehole RDH 601 - RL Levels July - November 2006 151

150

149 148

147

146 145

(meters) Level Reduced 144

143 1/7/06 1/8/06 1/9/06 1/10/06 1/11/06 Date

STATISTICAL ANALYSIS: Mean - 149 Min - 146 Max - 150 Standard Deviation - 1.92

Figure 53 – Water Level for RDH601

Annual Environmental Management Report Page 63 July 2006 – June 2007 Muswellbrook Coal Company Limited

3.4.3 Ground Water Extraction MCC holds five licences under Part 5 of the Water Act 1912. The following volumes of groundwater were extracted in this reporting period.

Licence No Extraction volume (ML) Extraction Entitlement (ML) 20BL168008 NIL NIL 20BL169014 (borehole pump #1) 586 1,000 ML pa limit 20BL169037 (No.1 O/C void) NIL 2,000 ML pa limit 20BL169038 (No.2 O/C void) 279 2,000 ML pa limit 20BL168337 NIL 4,000 ML pa limit 20BL170473 (borehole pump #2) 518 3,000 ML pa limit

3.5 Contaminated Land There are no known areas of contaminated land at Muswellbrook Coal.

3.6 Flora & Fauna Management

A flora and fauna assessment was conducted as part of the EIS for the No.1 Open Cut Extension. The assessment identified existing and potential threatened flora and fauna. The development consent contains specific requirements for the preparation of a Fauna and Flora Management Plan (FFMP). The MCC FFMP was approved by DIPNR in February 2005.

The objectives of the FFMP are: Comply with the development consent conditions for DA205/2002; Define the existing environment, including details of any strategic vegetation; Identify any strategic habitat areas on site; Outline the strategic mitigation measures to be adopted in the FFMP; Detail timeframes for clearing and revegetation activities; Establish methods to manage remnant vegetation; Establish a process for the approval of clearing activities that recognises sensitive hibernation and breeding periods and incorporates pre-clearance inspections; Detail the process to be adopted if any threatened flora and fauna not identified in the EIS are encountered; Establish a process for the care of injured animals; Define the post-mining landscape; Detail how the post-mining flora will be established; and Define the measures to protect, monitor and maintain revegetated areas.

The operational controls detailed in the FFMP that have been implemented for tree clearing includes:

Annual Environmental Management Report Page 64 July 2006 – June 2007 Muswellbrook Coal Company Limited

Restricted clearance of vegetation through areas adjacent to the Bimbadeen homestead between March and August due to potential breeding of Grey-Crowned Babbler and Eastern False Pipistrelle; Collection and stockpiling of topsoil, vegetation and arboreal habitat features; Implementing feral animal, wild dog and weed control programs; Assessing kangaroo population and planning a culling program; Pre-clearance inspections for threatened species and leaving identified hollow bearing trees for 24 hours after adjacent clearing for fauna escape; Stockpiling of selected felled trees for use in revegetation or relocation to areas adjacent to mining; and Establishment of roost, den and nest boxes in areas adjacent to mine operations.

The site environmental induction presentation includes a section briefly covering the Flora and Fauna Management Plan and highlights the identification of specific threatened species and aboriginal objects. A sample of the booklet that is distributed during the induction is shown in Figure 54.

Figure 54 - MCC Threatened Species and Aboriginal Object Identification Booklet

Inspections of nesting boxes (installed in 2005) were performed every 6 months during the reporting period (17 August 2006 and 8 February 2007). Results are shown below. No signs of activity or occupancy were noted in any of the nesting boxes apart from some scats and a few strands of fur found in the possum nesting box during the second inspection. The scats were identified as Brushtail Possum.

Sugar Glider (1) – not occupied and no signs of activity were observed Bat (2) – not occupied and no signs of activity were observed Brushtail Possum (1) – not occupied and no signs of activity were observed except the presence of scats and a few strands of fur caught on the nest entrance during the 8 February 2007 inspection

Annual Environmental Management Report Page 65 July 2006 – June 2007 Muswellbrook Coal Company Limited

3.7 Fauna Management Refer to Section 3.6

3.8 Weeds The Development Consent for the No.1 Open Cut Extension contains specific requirements for the preparation of a Land Management Plan (LMP). The LMP contains a section on weed control, and specifies that all noxious weeds will be managed and controlled as per the requirements of the Noxious Weeds Act 1993, in consultation with the RLPB and the Upper Hunter Weeds Authority, utilising a combination of control strategies.

Weed control and eradication techniques used at MCC include: Promotion of vigorous growth of pasture to out-compete weeds; Minimisation of area available for weed infestation, through prompt revegetation of bare areas; Spraying with selective herbicides; and Physical removal by chipping.

Mother-of-Millions, classified as a noxious weed, was treated by spraying with selective herbicide in areas surrounding the Bimbadeen homestead and beside Coal Road. Other noxious weeds treated around the mine site included Prickly Pear, African Boxthorn, Noogoora Burr, Blackberry, Sweet Briar and Patersons Curse. Rehabilitated areas of the mine were also sprayed with selective herbicides for Galenia, Castor Oil Bush and Bathurst Burr. There was a total of approximately 14 hectares treated to control noxious weed species around the mine site. MCC maintains records of all herbicides used on the property in accordance Pesticides Amendment (Records) Regulation, Pesticides Act 1999.

3.8.1 Further Weed Control Improvements Muswellbrook Coal is in the process of finalising a Weed Eradication Plan. The Plan includes: Consultation with interested parties; Desktop study and field assessment of weed distribution, density and species occurrence; List noxious weeds present; Mapping of the abundance and distribution of noxious and environmental weeds present; Management and control methodologies including timing of works, control methods, work priorities, and constraints; Works program linking weed control to rehabilitation, feral animal control, and erosion and sediment control; and Implementation of a six monthly weed inspection and report (currently in place).

A weed survey on areas to be stripped of topsoil will be undertaken and through clearing permits, control mechanisms are implemented to reduce weed seed contamination of topsoil

Annual Environmental Management Report Page 66 July 2006 – June 2007 Muswellbrook Coal Company Limited stockpiles. Furthermore, suitable strategies are implemented to control weed infestation on stockpiles before and after its use as a topdressing material for rehabilitation.

3.9 Blasting The Development Consent for the No.1 Open Cut Extension contains specific requirements for the preparation of a Blast and Vibration Management Plan (BVMP). The MCC BVMP was approved by DIPNR in February 2005. MCC continues its commitment to ensuring that both ground vibration and airblast overpressure continues to comply with the Development Consent and DEC blast criteria for the No.1 Open Cut Extension. A Blast Information Service Line (1800-772-799) is advertised in local newspapers and is updated by 9am Monday through Friday. The recorded message gives information regarding the scheduled blast time, location of the blast (No.1 or No.2 Open Cut), maximum instantaneous charge and expected vibration at Queen Street.

3.9.1 Blast Criteria MCC Development Consent Conditions for overpressure level and ground vibration are listed below.

The overpressure level from blasting operations on the premises must not: i. Exceed 115dB (Linear Peak) for more than 5% of the total number of blasts over a period of 12 months; and ii. Exceed 120dB (Linear Peak) at any time, when measured at any residence or noise sensitive location (such as a school or hospital) that is not owned by the licensee or subject of a private agreement between the owner of the residence or noise sensitive location and the licensee as to an alternative overpressure level.

Ground vibration peak particle velocity from the blasting operations at the premises must not:

i. Exceed 5mm/s for more than 5% of the total number of blasts over a period of 12 months; and ii. Exceed 10mm/s at any time, when measured at any residence or noise sensitive location (such as a school or hospital) that is not owned by the licensee or subject of a private agreement between the owner of the residence or noise sensitive location and the licensee as to an alternative overpressure level.

To achieve compliance with blast criteria, MCC aims to design every blast pattern so as not to exceed 2mm/s of ground vibration at the nearest non-mined owned residence, which is 20% of the DEC maximum ground vibration limit of 10mm/s.

The DEC and the DPI – Mineral Resources will be notified, as soon as possible, after a blast criteria exceedance is confirmed from Muswellbrook Coal operations.

3.9.2 Best Practice Drill & Blast MCC has adopted best practice drill and blast activities to demonstrate its commitment to blast criteria compliance. The intent of best practice goals in drill and blast activities is to deliver a high degree of reliability that the actual outcomes of the blast conform to the predicted outcomes.

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Best practice drill and blast activities include: A high degree of accuracy in the placement of drill holes to ensure that design spacing and burden is achieved; Management of water in the drill holes to reduce fume and odour; Regular inspections to identify any geological abnormalities that may create a path for the premature release of gaseous products from explosive material; Loading of the explosive material to ensure that holes are not loaded in excess of the design; Proper placement of decking charges if required; Effective placement of good quality stemming material to ensure containment of the blast; Minimise the sleep time of the blast pattern to minimise the potential for deterioration of the explosive material; Take into account any adverse meteorological conditions that may be prevailing at the time of the blast and, if possible, defer or modify the blast to accommodate those conditions; and Frequent videoing of actual blast results to identify any patterns in those instances where actual blast results varied from the predicted outcomes.

3.9.3 Blast Monitoring All blasts are monitored by four automatically triggered blast monitors. The McCully’s Gap Monitor is the closest blast monitor to the No.2 Open Cut. The Queen Street monitor is the closest to the No.1 Open Cut Extension. The monitors were installed and are maintained in accordance with the relevant standards. Blast monitors are calibrated annually and tested daily by an independent consultant.

At least 90% of blasts are recorded onto video tape. Each blast is reviewed to compare the actual monitoring results with the predicted results from the blast design.

A photo of a blast monitor is provided in Figure 55. The blast monitoring network is provided in Table 18 and locations are displayed in Figure 56.

TABLE 18 - BLAST MONITORING NETWORK

Blast Monitor Location Queen St (B1) In the vicinity of the nearest non-company owned residence School (B2) At the Muswellbrook Public School, Roger St, North Muswellbrook Queen St #2 (B3) At the northern end of Queen St, North Muswellbrook McCully’s Gap (B4) Sandy Creek Rd, approximately 1.5km to the north of the No.2 Open Cut

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Figure 55 - Blast Monitor at Queen Street (B1)

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R7 B4

R13

B3 R15 B1

R16

B2 R17

R20

Blast and Noise Monitoring Locations LEGEND

Periodic Noise Measurement Locations Muswellbrook Coal Company

Blast Monitoring Locations

Figure 56 – Blast Monitoring and Noise Monitoring Locations

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3.9.4 No.1 Open Cut Extension Blast Results During the reporting period, 214 blasts were fired at the No.1 Open Cut Extension and 1 blast in the No.2 Cutback.

All four blast monitors were operational throughout the reporting period however a small amount of data was lost due to equipment malfunction. Overall average data recovery was 97%.

All blasts, except for one, were below the Development Consent Condition criteria for maximum overpressure of 120dB(L) and maximum ground vibration of 10mm/s. All blasts were below the 2mm/s vibration criteria for Queen Street. The percentage of the total number of blasts resulting in an overpressure above 115dB(L) during the reporting period was 0.93%. The allowed criteria of blasts above 115dB(L) but not exceeding 120DB(L) is 5%.

One reportable exceedance incident occurred on 19 February 2007. Both Queen Street monitors recorded overpressure noise levels over the limit of 120 dB(L). Notification to the Department of Environment and Conservation (DEC) of the incident was reported immediately after receiving the blast monitoring results. A full incident investigation was conducted and a report submitted to the DEC within 7 days. No complaints relating to this incident were received. DEC issued a warning letter and encouraged MCC to “review blasting practices because any further contravention of a condition of your EPL could result in the imposition of a penalty by way of a Penalty Notice or the instigation of court action”. A review was conducted by the Blast Co-ordinator.

Over the reporting period, the maximum ground vibration recorded was 0.77 mm/s at the Queen Street monitor, and the maximum overpressure recorded was 121.3 dB(L) (Queen St monitor).

A summary of Queen Street blast monitoring results are displayed in Figure 57. Blast data for all monitors are provided in Appendix 4.

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No. 1 Open Cut - Queen St Blast Monitor Results July 2006 - June 2007

11 130

10 120 110 9 100 8 90 7 80 dB(L) mm/s 6 70 5 60 50

Vibration 4

40 Overpressure 3 30 2 20 1 10 0 0 3-Jul-06 1-Jun-07 6-Jun-07 6-Feb-07 3-Apr-07 5-Dec-06 9-Mar-07 26-Jul-06 9-Nov-06 4-Aug-06 1-May-07 11-Jan-07 23-Jan-07 15-Jun-07 11-Oct-06 24-Oct-06 13-Sep-06 29-Sep-06 16-Feb-07 27-Feb-07 16-Apr-07 19-Dec-06 23-Mar-07 22-Nov-06 28-Nov-06 18-Aug-06 15-May-07 24-May-07

DEC Maximum Ground Vibration Criteria 10mm/s Ground Vibration mm/s DEC maximum Overpressure Criteria 120 dB(L) Overpressure dB(L)

Figure 57 - Queen Street (B1) Blast Monitor Results

3.9.5 No.2 Open Cut Blasts Results There was one blast conducted at the No.2 Open Cut during the reporting period. This was a pre-split blast with maximum instantaneous charge of 90kg per hole. The results for this blast were below the allowable limits for overpressure and vibration.

3.10 Operational Noise The Development Consent for the No.1 Open Cut Extension contains specific requirements for the preparation of a Noise Management Plan (NMP). The main objective of acoustic management is to ensure that activities conducted at the mine are undertaken in an appropriate manner that ensures compliance with the EPL and Consent Conditions. Noise limits are listed in Table 19.

TABLE 19 - EPL AND CONSENT CONDITION NOISE LIMITS Location Day Evening Night

LAeq(15 minute),dB(A) LAeq(15 minute),dB(A) LAeq(15 minute),dB(A) L (1 minute),dB(A) R7 - Watts 36 36 36 44 R13 - McMaster 40 40 40 51 R15 - Collins 35 35 35 46 R16 - Tuckey 35 35 35 46 R17 - Colvin 35 35 35 46 R20 - Gordon 38 38 38 48

The locations of the noise monitoring sites are displayed in Figure 56.

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Most of the infrastructure associated with mining operations is well concealed from the public due to the surrounding topography. Most industrial areas that have the potential for noise generation, including the Workshop and Coal Handling Plant, are well isolated from neighbouring residences. As a result most concern that neighbours have regarding operational noise is to do with active mining equipment.

A number of mitigation measures are implemented to reduce the operational noise impacts on surrounding landholders, which include: Increasing the height of the saddle located to the north of the No.1 Open Cut to RL 224 to act as an acoustical barrier; The loading of large rocks onto mine trucks is undertaken outside the night time period; Mining operations are modified or shut down during unfavourable climatic conditions; Mobile plant and machinery is fitted with sound attenuation equipment, where required; Mobile plant and machinery is maintained and operated in a proper and efficient manner; Regular road maintenance is carried out to minimise noise associated with corrugated or deteriorated road conditions; The haul road from the No.1 Open Cut Extension to the ROM area has been planned to follow as much as practicable, gullies and lower elevation areas to minimise the emission of noise to residential areas; MCC’s fleet of Komatsu 730E dump trucks have been retro-fitted with sound attenuation, along with other selected plant which has been identified as emitting excessive noise; MCC has developed procedures and has conducted noise induction training with operators in working methods that minimise noise impacts; The new excavators are used in backhoe configuration to lower noise impact by being able to carefully ‘place’ material and larger rocks into the back of trucks; and The majority of overburden emplacement is “in pit” and noise from this operation is shielded from North Muswellbrook by the walls of the pit and existing spoil emplacement to the west of the Open Cut.

3.10.1 Real Time Directional Noise Monitoring Noise is continually being monitored through the voluntary installation of a Real Time Directional Noise Monitoring System, located at MCC RTEMS Site 1 adjacent to Queen Street, North Muswellbrook. The system measures noise from the direction of the No.1 Open Cut Extension providing a more accurate representation of mine related noise. Total and spatial selective noise levels are relayed to MCC’s office instantaneously. With regular monitoring of the results, mining operations are continuously modified or stopped as required to ensure noise criteria is met. Refer to Figures 58 to 60 for examples of the noise monitoring system and computer screen displays.

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Figure 58 – Real Time Noise Monitor Microphone Setup

Noise from the direction of the mine

Total Noise

Noise Criteria

Figure 59 - Noise Trend Screen

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Figure 60 – Directional Noise Screen

3.10.2 Periodic Noise Monitoring Program All noise surveys are performed in accordance with the Periodic Noise Monitoring programme and applicable to Australian Standards specified in the NMP. Two 6-monthly attended noise surveys were undertaken during the reporting period by Spectrum Acoustics Pty Limited.

Each attended noise survey was conducted over a 24-hour period so that each of the Day, Evening and Night-time periods were monitored. Generally, each residence was surveyed twice during the Day period, once during the Evening period, and twice during the Night period for a total of five measurements at each location.

Noise levels during the attended survey measurements were taken in third-octave bands with an instrument that has Type 1 characteristics as defined in AS1259-1990 “Accoustics – Sound Level Meters”. The instrument had a current calibration as per manufacturers instructions and calibration was also confirmed prior to and at the completion of measurements with a Sound Level Calibrator. The LAeq (15 minute) noise emission levels, at each monitoring site, were determined.

The actual noise level received at individual residences may vary as a result of: The location of mining equipment; The elevation of mining equipment; Impacts from other noise sources; Prevailing wind conditions; and

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Prevailing meteorological conditions.

3.10.3 Periodic Noise Monitoring Results Attended noise monitoring was conducted by Spectrum Acoustics during November 2006 (Tuesday 31 October to Wednesday 1 November 2006) and May 2007 (Tuesday 8 May to Wednesday 9 May 2007). The purpose of the measurements was to quantify the overall noise levels at the nominated noise monitoring locations and determine the proportion contributed from MCC mining operations.

MCC operations were inaudible at residences to the north and east of the mine. Throughout the survey, mine noise was audible at the monitoring locations in Queen Street (Collins, Tuckey and Colvin) but the level of received noise did not exceed the noise criterion of 35 dB(A),Leq(15 min) for MCC operations or 45 dB(A),L1(1-minute) for sleep disturbance.

Some mine noise within operational noise goals was recorded that included:

• Occasional mine noise was audible at the Colvin, Collins and Tuckey residence between 9:06pm 31 October 2006 and 7:35am 1 November 2006 as engine noise, dozer tracks, engine revs, reverse alarms, minor impacts and mine hum. • Mine noise at the Colvin, Collins and Tuckey residence between 1:19am and 2:00am on the 9 May 2007 was audible as engine revs, horns, dozer tracks and mine hum.

Other noise recorded was primarily traffic noise on local roads and the New England highway, wind, trains, birds, insects, dogs and other rural and domestic noise. Noise measurement results for October-November 2006 and May 2007 are summarised in Table 20 and Table 21.

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TABLE 20 – NOVEMBER 2006 NOISE SURVEY RESULTS (TUESDAY 31 OCT TO WEDNESDAY 1 NOV 2006)

Location Time LAeq LAeq LAmax LAmax MCC Source(s) (total) (MCC) (total) (MCC) Watts Tue 4:00 pm 44.5 N/A 60.5 N/A N/A Watts Tue 8:25 pm 47.5 N/A 56.1 N/A N/A Watts Wed 4:28 am 32.5 N/A 49.7 N/A N/A Watts Wed 7:10 am N/A N/A N/A N/A N/A McMaster Tue 8:42 pm 40.4 N/A 55.2 N/A N/A McMaster Wed 4:45 am 32.4 N/A 49.9 N/A N/A McMaster Wed 6:55 am 38.6 N/A 50.1 N/A N/A Collins Tue 9:06 pm 40.9 33 58.3 N/A Haul trucks, dozer tracks, impacts Collins Wed 3:25 am 36.3 N/A 51.6 42 Impacts Collins Wed 4:04 am 36.3 34 47.7 41 Haul trucks, mine hum, dozer tracks Collins Wed 5:50 am 46.0 N/A 63.3 N/A N/A Collins Wed 7:35 am 42.4 33 63.4 <35 N/A Tuckey Tue 9:35 pm 37.7 32 51.3 43 Haul trucks, impacts, reverse alarms Tuckey Wed 3:47 am 39.4 33 51.8 N/A Haul trucks, impacts, reverse alarms Tuckey Wed 6:10 am 47.1 N/A 72.3 N/A N/A Tuckey Wed 7:50 am 42.4 N/A 62.9 N/A N/A Colvin Tue 9:51 pm 38.5 35 57.0 42 Haul trucks, mine hum Colvin Wed 3:10 am 34.9 25 49.1 <35 Haul trucks, mine hum Colvin Wed 5:33 am 46.6 N/A 58.9 N/A N/A Colvin Wed 7:20 am 46.2 35 58.5 N/A N/A Gordon Tue 3:35 pm 47.9 N/A 68.8 N/A N/A Gordon Tue 8:04 am 66.1 N/A 86.4 N/A N/A Gordon Wed 2:45 am 39.7 <<30 85.4 37 Impacts, mine hum Gordon Wed 8:15 am 46.0 N/A 87.4 N/A N/A

TABLE 21 – MAY 2007 NOISE SURVEY RESULTS (TUESDAY 8 MAY TO WEDNESDAY 9 MAY 2007)

Location Time LAeq LAeq LAmax LAmax MCC Source(s) (total) (MCC) (total) (MCC) Watts Tue 3:47 pm 64.1 N/A 88 N/A N/A Watts Tue 7:25 pm 50.3 N/A 55 N/A N/A Watts Tue 11:42 pm 27.3 N/A 54 N/A N/A McMaster Tue 4:05 pm 66.1 N/A 82 N/A N/A McMaster Tue 7:42 pm 51.2 <<30 62 N/A N/A McMaster Wed 12:01 am 30.4 N/A 47 N/A N/A Collins Tue 4:27 pm 54.9 N/A 69 N/A N/A Collins Tue 8:05 pm 51.3 <<30 71 N/A Mine hum Collins Wed 1:40 am 35.7 28 49 <30 Haul trucks, mine hum Tuckey Tue 5:03 pm 57.8 N/A 71 N/A N/A Tuckey Tue 8:23 pm 51.5 N/A 75 <30 Impacts, mine hum Tuckey Wed 2:00 am 35.1 31 55 37 Haul trucks, mine hum, dozer Colvin Tue 4:45 pm 54.4 N/A 78 N/A N/A Colvin Tue 8:40 pm 50.4 <<30 73 30 Impacts, horn Colvin Wed 1:19 am 40.4 31 61 35 Haul trucks, mine hum, dozer, horn Gordon Tue 3:10 pm 68.5 N/A 88 N/A N/A Gordon Tue 7:01 pm 59.1 N/A 82 N/A N/A Gordon Tue 11:18 pm 63.0 <30 82 N/A Haul trucks, mine hum

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3.11 Visual, Stray Light The Development Consent for the No.1 Open Cut Extension contains specific requirements for the preparation of a Lighting Management Plan (LiMP). The LiMP was approved by DIPNR in February 2005. The main objectives of light management on site include the following: To ensure that sufficient lighting is provided on site to facilitate safety and security to mining operations; To ensure that lighting is of an appropriate standard and appropriately directed; To minimise the impact of on-site lighting sources on residents or road users; and To outline a process to address light spillage issues.

During the reporting period there was minimal impact on the community at night time from lighting at the No.1 Open Cut Extension. No lighting complaints were received during the reporting period. MCC’s operations are screened from direct view of residents or the travelling public by existing overburden emplacement areas, and the natural topography of the surrounding area.

3.12 Aboriginal Heritage The Development Consent for the No.1 Open Cut Extension contains specific requirements for the preparation of an Archaeology and Cultural Heritage Management Plan (ACHMP). The main objectives of the plan are to: Minimise disturbance to existing cultural resources within the No.1 Open Cut Extension; Retrieve cultural information from the identified cultural resources before they are destroyed by open cut mining development; and Comply with the legal obligations under Federal and State statutes.

As part of the EIS process, Aboriginal cultural heritage surveys were conducted in the No.1 Open Cut Extension area using archaeological consultants and Aboriginal community representatives. Four Aboriginal sites were identified and described as occupation sites being scatters or isolated finds of stone artefacts. Due to the requirements of the MCC development plan, over the life of the extension it will be necessary to disturb the sites. Consent to destroy was obtained from the DEC.

3.12.1 Cultural Management Management for Aboriginal cultural sites at MCC involves the following:

Sites are kept intact and preserved until they are ready to be salvaged; Sites are actively managed to avoid accidental impacts; Staff (including contractors) are trained and made aware of their responsibilities concerning aboriginal sites and objects by attending the site induction and reading the Aboriginal Object Identification Booklet (refer to Figure 48); Work practices spell out clear roles and responsibilities of all staff in managing cultural resources;

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Sites are clearly identified in the field. Areas are fenced and appropriate signage used, where relevant (refer to Figure 61); Supervisors and plant operators are made aware of the location of sites and the boundaries; and All plans and operation notes show the location of known sites.

MCC is ultimately faced with the task of managing cultural information by removing it from the landscape. To achieve this, it must devote enough time and financial resources to rescue or salvage cultural information. Cultural information salvaged will be translated into educational material, explaining the mine site’s Aboriginal history and cultural significance.

Figure 61 – Aboriginal Cultural Site CB1 (protective fencing erected April 2007)

3.12.2 Cultural Audit Auditing will be carried out where disturbance risks are likely to be highest within the mine development area. No cultural audits were carried out during the reporting period.

3.12.3 Aboriginal Consultation MCC will consult on an annual basis, with the relevant Aboriginal community groups as identified by NPWS. MCC will use consultation principles and strategies consistent with those outlined in the “Guidelines for Best Practice Community Consultation in NSW Mining and Extractive Industries”. During the reporting period no ground disturbance operations required consultation with Aboriginal groups.

3.13 European Heritage The brickworks site north of the No.1 Open Cut Extension may have historical value due to its age, method of brick production, etc. This area has been securely fenced off by MCC to protect the structures.

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3.14 Spontaneous Combustion The Development Consent for the No.1 Open Cut Extension contains specific requirements for the preparation of a Spontaneous Combustion Management Plan (SCMP). The main objective of the SCMP is to minimise the occurrence and manage the effect from spontaneous combustion by identification, control, removal, mitigation and prevention in the following areas: Existing open cut and underground workings; Drilling and blasting; Mining of overburden; Mining of coal; Emplacement of overburden; Emplacement of washery reject; and Coal stockpiles.

The coal measures mined at the No.1 Open Cut Extension are those associated with the Greta Coal Measures. These measures have a history of spontaneous combustion. Spontaneous combustion has been a long term issue at MCC since the first operation opened in 1907.

Incidences of spontaneous combustion have taken place over a number of years, particularly in the spoil piles on the western side of the No.1 Open Cut. During the 1980’s this was successfully dealt with by sealing both the burning area and the material liable to spontaneous combustion with approximately 20 metres of inert overburden.

Spontaneous combustion has occurred within parts of No.2 Underground workings, particularly in the vicinity of the portal entrances. Mining of these areas in a manner which removes the spontaneous combustion is one of the main reasons for the mining the No.1 Open Cut Extension area.

MCC has assisted with ACARP and NERDDC projects investigating spontaneous combustion, including:

NERDDC Self Heating of Spoil Piles in Open Cut Mines C1609 Self Heating in Spoil Piles: A Field Trial of Fly Ash Grouting and an Assessment of Cover Materials C3055 and C6003 Continuation of Monitoring Probes C9031 Rehabilitation of Spontaneous Combustion Prone Spoil Piles C9062 Infra Red Thermography for Monitoring Spoil Piles

3.14.1 Quarterly Spontaneous Combustion Reports Quarterly spontaneous combustion reports are provided to the DPI - MR identifying existing and new incidences, mitigation procedures and improvements to these procedures. Reports include a plan showing location and extent of problem areas.

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Four quarterly spontaneous combustion reports were submitted to DPI - MR for the reporting periods July-August 2006, October-December 2006, January-March 2007 and April-June 2007. Most affected areas were within the open cut and overburden emplacement areas. Controls were successfully completed on all affected areas, and treatment was applied to approximately 80% of the affected area. A summary of all the quarterly reports during the reporting period is provided in Table 22.

TABLE 22 - SPONTANEOUS COMBUSTION QUARTERLY REPORT SUMMARIES 1 JULY 2006 – 30 JUNE 2007

CLASS A No. 1 Open Cut Extension No. 2 Open Cut Area Affected Area Area Controlled Actual Area Affected Actual Area Reporting Period Controlled (m2) (m2) Treated (m2) Area (m2) Treated (m2) (m2) July - September 2006 - - - 3 3 2 October - December 2006 ------January - March 2007 ------April - June 2007 ------

CLASS B

Area Affected Area Area Controlled Actual Area Affected Actual Area Reporting Period Controlled (m2) (m2) Treated (m2) Area (m2) Treated (m2) (m2) July - September 2006 12,188 12,188 9,751 4,214 4,214 3,371 October - December 2006 5,665 5,665 4,532 2,025 2,025 1,620 January - March 2007 4,669 4,669 3,735 2,025 2,025 1,620 April - June 2007 21,825 21,825 17,460 3,721 3,221 2,977

CLASS C Area Affected Area Area Controlled Actual Area Affected Actual Area Reporting Period Controlled (m2) (m2) Treated (m2) Area (m2) Treated (m2) (m2) July - September 2006 ------October - December 2006 ------January - March 2007 ------April - June 2007 ------

July - September October - January - April - June 2006 December 2006 March 2007 2007 TOTAL AREA AFFECTED (m2) 16,405 7,690 6,694 25,546 TOTAL AREA CONTROLLED (m2) 16,405 7,690 6,694 25,546 2 TOTAL AREA TREATED (m ) 13,124 6,152 5,355 20,437

*NOTE - AREAS LISTED REPRESENT THE TOTAL OF ALL OUTBREAKS WITHIN A SPECIFIC CLASSIFICATION

CLASSIFICATION OF SPONTANEOUS COMBUSTION OUTBREAKS Classification Description A MAJOR: Open flame - regardless of area affected

B MODERATE: Visible steam or smoke - area effected is greater than 200m2

C MINOR: Visible steam or smoke – area effected is less than 200m2

OTHER: Other physical evidence of spontaneous combustion (e.g. cracks, D coal tars, sulphur crusting, etc)

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3.14.2 Monthly Spontaneous Combustion Reporting Following a site inspection conducted by the Department of Environment and Conservation (DEC) on 30 August 2006, MCC agreed to provide DEC with a written monthly update on works to control spontaneous combustion conducted on site. The first report was submitted in November 2006 covering the month of October 2006. A summary of all monthly reports is presented in Table 23.

While some new outbreaks of spontaneous combustion occurred in the reporting period, generally the spontaneous combustion has been managed to reduce impacts and areas of long term potential to generate spontaneous combustion have been mined out.

TABLE 23 - SPONTANEOUS COMBUSTION (SC) MONTHLY REPORT SUMMARY OCTOBER 2006 – JUNE 2007

No.1 - SC No. 1 O/C - SC Areas Capped Area of New Complaints Reporting 2 Areas 2 Area Under (m ) 2 Outbreaks (m ) Relating to Month Mined (m ) Water SC Infusion (m2) No. 1 O/C No. 2 O/C No. 1 O/C No. 1 O/C No. 2 O/C Oct-06 1000 1000 0 0 100 1400 10 Nov-06 3800 100 3000 3800 100 1400 1 Dec-06 3000 100 0 5300 100 2300 1 Jan-07 3200 0 3800 0 1686 680 3

Feb-07 1676 0 0 0 0 658 1 Mar-07 0 0 658 0 0 658 7 Apr-07 0 0 0 0 0 0 3 May-07 0 0 0 0 0 0 2 Jun-07 0 0 0 0 0 0 2 * SC = Spontaneous Combustion

3.14.3 Bushfire The Development Consent for the No.1 Open Cut Extension contains specific requirements for the preparation of a Bushfire Management Plan (BMP). The main objectives of the BMP are as follows: Activities on site are managed to minimise the risk of outbreak of fire; Fuel loads are contained to acceptable levels to moderate any fire intensity; Hazard mitigation measures are in place to contain an outbreak of fire should one occur; and Arrangements are in place to liaise with and support the Rural Fire Service (RFS) should an outbreak of fire occur within the DA area.

The Bushfire Management Plan was approved in 2005.

There were no major incidences of bushfire threat or outbreak on the mine site during the reporting period. The annual Bushfire Site Inspection Risk Assessment was also conducted with Mr Keith Lobb, Fire Mitigation Officer from the Hunter Valley RFS on 5 July 2006, to review the Muswellbrook Coal emergency response procedure and the actions taken to reduce bushfire risk. The final Muswellbrook Coal Emergency Response Plan will be submitted to the RFS before the end of 2007.

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3.15 Mine Subsidence There is mine subsidence caused by previous underground mining operations within the No.2 Open Cut area. The subsidence area requires ongoing inspections and monitoring of incidences of spontaneous combustion due to ‘potholing’ of collapsed underground workings. Mining activities commenced in this area during the later part of the reporting period.

Any subsidence cracks or ‘potholing’ identified is promptly filled with inert material and compacted, to minimise air transmission to the underground workings.

3.16 Hydrocarbon Contamination Above ground fuel storage tanks are bunded with earth walls to contain any spillage which may occur. Waste oil from the workshop is stored in a waste oil tank. Oily water runoff from the re-fuelling bay drains into a sub-surface 20,000 L tank. Runoff from the hardstand washdown bay passes through a three-staged silt trap and an oil/water separator. The collected silt is routinely cleaned out, and waste oil and oily water is removed as required by a DEC approved contractor.

The Final Settling Pond Dam has an oil boom which contains any oil that may be present on the dams surface. Surface water monitoring of the Final Settling Pond Dam demonstrate that hydrocarbon contamination controls were successful. Oil and grease results were less than 2 mg/L on all sampling occasions during the reporting period.

Hydrocarbon management controls were successful with no reportable hydrocarbon contamination incidents during the reporting period. MCC adopts continuous improvement in developing additional management systems and safe operating procedures for hydrocarbon storage.

3.17 Methane Drainage/Ventilation There were no methane drainage or ventilation issues associated with the No.1 or No.2 Open Cut operations in this reporting period.

3.18 Public Safety During the reporting period public safety was managed in accordance with current MCC procedures. Fences surrounding the No.1 Open Cut operational areas were inspected. Repairs including the replacement of sections were undertaken to provide a minimum standard of 5 strand wire rural fence (or equivalent), with sign posting warning of mining operations.

Security patrols by a local security firm are conducted on a daily basis.

Fences along the Muswellbrook Coal property boundary adjacent to Queen St in North Muswellbrook and along Sandy Creek Road were upgraded and maintained during the term of this report.

3.19 Other Issues and Risks There were no other identified issues or risks identified in this reporting period.

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4 COMMUNITY RELATIONS

Muswellbrook Coal Company undertakes community consultation by way of ongoing direct contact with nearby neighbours through meetings and telephone contact, maintaining the Community Consultative Committee, producing newsletters and operating a toll free 24-hour Environmental Contact Line (1800 600 205).

Muswellbrook Coal's current workforce as at 30 June 2007 consisted of 87 full time employees, including, administration, technical services, production, maintenance and open cut staff. There is also an average of 30 contractors and casuals on site who primarily perform production and maintenance orientated duties. The percentage of MCC employees residing in Muswellbrook is 56%, 9% reside in Aberdeen, 15% reside in Scone, 6% in Denman, 7% in Singleton, and the remaining 7% in Maitland or Cessnock.

In 1998/99, MCC employees contributed $4.6 million in annual household expenditure to the town of Muswellbrook and a total of $4.8 million to the Muswellbrook Shire overall (source: COAL 1999). Muswellbrook Coal sponsors and contributes donations to community groups and schools in the Muswellbrook Shire.

Muswellbrook Coal also participated in the Energy Expo at Muswellbrook Regional Show in conjunction with other mines in the area and the NSW Minerals Council.

4.1 Environmental Complaints Muswellbrook Coal operates a toll free 24-hour Environmental Contact Line, where residents can be connected with the mine personnel directly or leave details about an enquiry or complaint they may have regarding mining operations. The Environmental Contact Line Number is 1800 600 205, and is advertised weekly in the Hunter Valley News, the Muswellbrook Chronicle and in the MCC newsletters.

On receiving a complaint, MCC Technical Services staff promptly investigates and isolates the source of the complaint and reports back to the complainant with the findings. The recording of environmental complaints and the operation of the Environmental Contact Line is conducted in accordance with the MCC Environmental Protection Licence and Development Consent Conditions.

During the reporting period MCC was responsible for: Maintaining the complaint recording system; Ensuring that an initial response was provided to the complainant immediately or within 24 hours of receipt of complaint; and Ensuring all complaints were entered into a database and logbook.

The MCC complaints logbook and database includes the following details for all complaints: Date and time of complaint; Any personal details the complainant wishes to provide; The nature of the complaint, including time and duration of incident; Action taken by MCC in relation to complaint, including any follow-up contact with the complainant; and

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If no action was taken by MCC, the reason why no action was taken.

A summary of the complaints is provided in Appendix 5. Figure 62 displays the number and percentage of complaints in each category that were received and Figure 63 shows the distribution of complaints by complainant.

There were a total of 101 complaints during the reporting period in comparison to 74 reported in the 2005-2006 AEMR. This is an increase of 27 complaints. The complaints were lodged by 32 individual complainants with one complainant registering 36% of the complaints. The majority of complaints in this reporting period arose from odour caused by spontaneous combustion (54%).

Remedial action was taken to mitigate the spontaneous combustion problem, by water infusion into the hot underground workings and filling and sealing underground portals with inert material. Quarterly Spontaneous Combustion Management Reports were provided to the DPI and monthly to the DEC.

Noise from operational activities made up 28% of all complaints. Noise is continually monitored using the Real Time Directional Noise Monitoring System which is located at MCC RTEMS Site 1 adjacent to Queen Street, North Muswellbrook. An operator continually monitors operational noise at night and advises the Open Cut Examiner (OCE) on corrective action. The Real Time Directional Noise Monitoring System discriminates noise from the direction of the No.1 Open Cut Extension, and mining operations are modified or ceased if noise reaches elevated levels. An upgrade to the system in April 2007 made listening through streaming audio possible allowing the reaction time to make operational changes more efficient. Sound attenuation and broad spectrum reversing alarms are installed on operating plant to reduce noise impacts. The attended noise monitoring, conducted by Spectrum Acoustics, indicated compliance to the Development Consent and EPL noise criteria.

Blasting noise/vibration comprised 8% of the total number of complaints for the reporting period. Blasting patterns were designed to reduce the impact of vibration and overpressure on nearby residences. One blast exceedence occurred during the reporting period but no complaints were received as a direct correlation from this incident.

Dust complaints (10%) that were registered during the reporting period were primarily associated with mining of the hottest, spontaneous combustion affected portion of the underground workings during February and March 2007.

Annual Environmental Management Report Page 85 July 2006 – June 2007 Muswellbrook Coal Company Limited

Complaint Distribution 1 July 2006 - 30 June 2007

8 - 8%

10 - 10% BLAST DUST

ODOUR

NOISE

28 - 28%

55 - 54%

Total Number of Complaints: 101

Figure 62 - Pie Chart of Complaint Categories and Percentages

Percentage of Complaint by Complainant 1 July 2006 to 30 June 2007

40 36 35

25 Total Number of Complaints: 101 20 Number of Complainants: 32 15 11 10 66 5 Percentage (%) Total of Complaints 5 33 222222 1111111111111111111

0 1 2 3 4 5 6 7 8 9 1011121314151617181920212223242526272829303132 Individual Complainant

Figure 63 – Complainant Breakdown

4.2 Community Consultation Muswellbrook Coal personnel maintain contact with nearby residents and are committed to continually fostering and developing strong links with the community.

4.2.1 No.1 Open Cut Extension Development Prior to the commencement of operations in the No.1 Open Cut Extension, a variety of consultative processes were implemented, including:

Annual Environmental Management Report Page 86 July 2006 – June 2007 Muswellbrook Coal Company Limited

The Community Consultative Committee was fully briefed in respect to the proposed development; Newsletter distribution to residences in North Muswellbrook, Sandy Creek Road and Muscle Creek Road areas, advising of the commencement of operations and the commencement of blasting activities; and Telephone contact and meetings with other nearby residences.

4.2.2 Community Consultative Committee MCC facilitates a community consultative committee (CCC) to provide information regarding mine operations to the local community. The committee is comprised of 3 council representatives, three community representatives and two MCC representatives. The aim of the committee is to provide an effective communication mechanism to ensure members of the local community have adequate information on mining and environmental matters. CCC meetings are held quarterly at the MCC office and committee members are actively involved in the review of environmental monitoring data and are kept up to date on mining operations through presentations and site visits. Members of the general public are welcome to attend committee meetings.

Meetings were held on the:

• 19 September 2006; • 5 December 2006; • 6 March 2007; and • 5 June 2007.

4.3 Community Participation Muswellbrook Coal contributed time and resources for several community activities during the reporting period. • MCC participated in the “Bursting with Energy Expo” as part of the Upper Hunter Regional Show held in March 2007. An information stand and display was set up depicting the past, present and future of the mining operation in Muswellbrook. The stand was manned by Muswellbrook Coal employees. • MCC was a participant in The Cancer Council’s fund raising walk-a-thon, Relay for Life, held in Muswellbrook during the last weekend of April 2006. The MCC team raised $6,263.80. • MCC donated funds to Muswellbrook High School to help in upgrading their computer system. • MCC supported 2 first year apprentices through the Mining Skills Development Centre at the Muswellbrook TAFE Campus which is an on-the-job training facility for new apprentices. MCC donated materials for their class community project (park bench seats)) along with various items to be used for hands-on training at the Centre. • MCC invited local schools to submit applications for assistance with programs at the school - assistance included: o Muswellbrook High School - $6000 (computer system for digital photo/music course) o Dunmore Lang Christian School - $1200 (data projector) o Muswellbrook Public School - $4200 (seating and shade structure)

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o South Muswellbrook Public School - $3000 (literacy and numeracy resources) o St. James’ Primary School - $6000 (numeracy resources) o St. Joseph’s High School - $3700 (audio visual resources) • Donated $500 to Muswellbrook Polo Cross for carnival sponsorship.

Annual Environmental Management Report Page 88 July 2006 – June 2007 Muswellbrook Coal Company Limited

5 REHABILITATION

The Development Consent for the No.1 Open Cut Extension contains specific requirements for the preparation of a Land Management Plan (LMP). The objectives of the LMP are to reduce the impact of mining operations on existing native flora and fauna species, implement sustainable land practices and enhance habitat connectivity within the site and surrounding areas. This will be achieved by: Preventing land degradation and rehabilitating areas that have been subjected to land degradation; Progressively rehabilitating disturbed areas; Controlling weeds and feral animals; Ensuring that all suitable topsoil is recovered and segregated according to soil properties; and The enhancement of agricultural productivity across the entire site.

The extension of the Muswellbrook Coal No.1 Open Cut Mine is set amongst an area that has been previously affected by the following open cut and underground mining activities: St. Heliers Underground – 1920 to 1940’s No.1 Open Cut – 1940’s to 1970 No.1 Open Cut – 2001 to 2002 No.2 Underground – 1980 to 1997 No.2 Open Cut overburden emplacement area – 1983 to 1990

Surrounding land uses include a combination of agricultural activities (beef cattle grazing), light industrial and rural-residential. Land classification of disturbed areas is displayed in Table 24.

TABLE 24 - NO.1 OPEN CUT EXTENSION AREAS PREVIOUSLY AFFECTED BY MINING ACTIVITIES Activity Area Surrounding Land Area Previously Affected Classification No.1 Open Cut void IV and V 31 Dump and borrow pit areas IV 14.5 Area of surface affectation from No.2 IV 6.2 Underground subsidence Other areas IV and V 78.3

All overburden from the first six years of the No.1 Open Cut Extension will either be placed back in the No.1 Open Cut void and ensuing work areas, or the No.2 Open Cut. The areas disturbed as part of the No.1 Open Cut Extension will be rehabilitated as an integral part of the open cut mining process. Methods of rehabilitation used for the No.1 Open Cut Extension will be very similar to those used for the No.2 Open Cut and will follow guidelines recommended by the Department of Primary Industries (Mineral Resources).

The No.1 Open Cut MOP was approved in February 2005 and the No.2 Open Cut MOP variation now entitled “Muswellbrook Coal Company Open Cut Operations” was approved by

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DPI in May 2007. Rehabilitation of the in pit overburden emplacement in the No.2 Open Cut during the reporting period total 8.9 hectares.

Due to ongoing drought conditions some of the existing rehabilitation has performed poorly. Ongoing maintenance fertiliser applications and additional seeding will be undertaken when reliable rainfall occurs, to improve the growth on these areas.

Topsoil and selected subsoils were recovered and stockpiled, refer Section 2.2. There were no areas in this reporting period rehabilitated in the No.1 Open Cut.

5.1 Buildings No new additions during the reporting period.

5.2 Rehabilitation of Disturbed Lands

5.2.1 Rehabilitation Process The existing strategy at Muswellbrook Coal for rehabilitation is as follows. Rehabilitated land is initially shaped by D11 tracked dozers, and then rock raked with a D5 tracked dozer to remove rock greater that 20cm in size. Raked rock is later used to construct rock lined drains. Contour banks were constructed in accordance with the Erosion and Sediment Control Plan, and major drains are constructed in accordance with DNR’s (formally DLWC) Draft Guidelines for Establishing Stable Drainage Lines on Rehabilitated Mine Sites (1999).

Topsoil is recovered by front end loader or excavator and hauled by 10 tonne trucks from topsoil stockpiles, and then spread by a D5 tracked dozer to an approximated depth of 10cm. Gypsum is applied to the topsoil at a rate of 7-10 tonnes per hectare, and then the area is ripped by a D5 dozer along the contour in preparation for planting. Rehabilitated areas are planted with a combination of 60% pasture to 40% native trees. Native trees are typically planted via direct seeding in plots, situated at strategic locations throughout the shaped landform, generally immediately below major graded contour banks and low gradient ridge areas (refer to Figure 64).

Figure 64 – Contour Bank and Tree Seed Plots

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5.2.2 Species Selection A number of vegetation species are utilised in the rehabilitation, refer to Table 25. Species vary depending upon the seasonal requirements and the type of cover that is required due to topography and other physical factors. Areas that are prone to spontaneous combustion or situated on steep slopes are sown to pasture using a variety of vigorous growing pasture species. The pasture seed mix was applied at a rate of 60 kg/Ha. Fertiliser (Granulock 15) was mixed into pasture mix at a rate of 200 kg/ha.

The tree seed mix, applied at 8 kg/ha, contains a combination of Acacia and Eucalypt species and was pre-treated and blended with fertiliser (Dynamic Lifter) at 50kg/Ha. Forested areas are an important component of mine site rehabilitation, refer to Figure 65. Trees provide a stable long term landform and add to the visual amenity of the surrounding area. Trees also provide the necessary habitat for the reconstruction of valuable ecosystems that assist in the re-colonisation of fauna across the mine site and provide a corridor for movement into adjacent remnant vegetation.

Acacia saligna has been removed from the MCC rehabilitation species list. DPI - MR does not support the use of Acacia saligna for mine rehabilitation in the Hunter Valley. The species is non-endemic to the Hunter Valley and there is concern that the species may become a dominant monoculture.

Figure 65 – Eucalypt & Acacia Species Tree Seed Plot on Eastern Emplacement Area

Annual Environmental Management Report Page 91 July 2006 – June 2007 Muswellbrook Coal Company Limited

TABLE 25 - REHABILITATION SPECIES LIST Native Tree Species Pasture Species

Botanical Name Common Name Botanical Name Common Name

Eucalyptus camaldulensis River Red Gum Cynodon dactylon Couch Lemon Scented Eucalyptus citriodora Chloris gayana Pioneer Rhodes Gum Eucalyptus cladocalyx Sugar Gum Lolium rigidum Wimmera Rye Kangaroo Valley Eucalyptus crebra - Lolium perenne Perennial Rye Broad-leaved Red Eucalyptus fibrosa Medicago sativa Lucerne Ironbark Eucalyptus molucanna - Trifolium repens Haifa White Clover Trifolium Eucalyptus punctata - Subterranean Clover subterraneum Eucalyptus tereticornis Forest Red Gum Rye Corn and/or Millet Acacia concurrens - Acacia deccurrens Black Wattle Acacia falcata - Acacia decora -

Acacia filicifolia Fern Leaf Wattle Casarina glauca - Corymbia maculata - Note: Legumes are inoculated and lime coated.

5.2.3 Wildlife Corridor Muswellbrook Coal intends to link existing remnant vegetation in Bells Mountain and Skelletar Ridge areas north and south of the lease area by planting corridors of native vegetation across the lease area, creating a viable wildlife corridor. This strategy was developed in the Land Management Plan and is based on the Department of Primary Industries Synoptic Plan. Sections of the corridor are currently in place across the No.2 Open Cut and infill tree plantings will be conducted to complete a continuous corridor, refer to Figure 58 for a photograph of a typical corridor planting at MCC. Rehabilitation planning for the No.1 Open Cut includes the incorporation of native vegetation areas to continue the corridor from the No.2 Open Cut.

Figure 58 – Existing Wildlife Corridor Area at MCC

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5.2.4 Description of Areas Rehabilitated Mining commenced at the No.1 Open Cut Extension in March 2005 however, rehabilitation has not commenced on the areas identified in the MOP due to mining constraints and the continued establishment of the in pit emplacement. Areas for rehabilitation will become available during the last quarter of 2007 and should be commenced in the next reporting period.

Rehabilitation continued in the No.2 Open with areas reshaped, contour banks established and pasture and tree seed sown. An area of 8.9ha was completed.

A view of the rehabilitation area advancing across the No.2 Open Cut in pit emplacement area is shown in Figure 66.

A rehabilitation and maintenance summary for the reporting period is provided in Table 26 and Table 27, respectively.

The AEMR Rehabilitation Plan is provided in Appendix 1.

Figure 66 – View of the Western Area of the No. 2 Open Cut Showing the Advancing Rehabilitation along the top of the in pit emplacement.

Annual Environmental Management Report Page 93 July 2006 – June 2007 Muswellbrook Coal Company Limited

TABLE 26 - REHABILITATION SUMMARY 2006/07

AREA AFFECTED / REHABILITATED

(hectares)

Last Next Report To Date Report (Estimated) A MINE LEASE AREA

A1 Mine Lease Area (CCL 713) ML 1304 1778 1778 1778

B DISTURBED AREAS Infrastructure Area B1 40.0 39.4 40 (total No.1 and No.2) Active Mining Area No.1 O/C 21.8 22.5 25 B2 (excluding items B3-B5 below) No.2 O/C 40.5 47.1 55 Waste Emplacements No.1 O/C 52.5 35.0 25 B3 (active/unshaped/in or out-of-pit) No.2 O/C 65.0 79.8 70 Tailings Emplacements No.1 O/C 0 0 0 B4 (active/unshaped/uncapped) No.2 O/C 0 0 0 Shaped Waste Emplacement No.1 O/C 5.3 0 0 B5 (awaits final vegetation) No.2 O/C 17.6 0 10 ALL DISTURBED AREAS No.1 O/C 119.6 96.9 90 No.2 O/C 123.1 126.9 135 C REHABILITATION PROGRESS Total Rehabilitation Area C1 261.2 252.3 277.9 (except for maintenance) D REHABILITATION ON SLOPES D1 10 to 18 degrees 261.2 252.3 277.9 D2 > 18 degrees 0 0 0 E SURFACE OF REHABILITATED LAND Pasture and Grasses No.1 O/C 49.0 48.1 50 E1 No.2 O/C 149.7 141.8 157.9 Native forest / ecosystems No.1 O/C 6.0 5.9 10 E2 No.2 O/C 56.5 56.5 60 E3 Plantation and Crops 0 0 0

Other E4 0 0 0 (include non-vegetative outcomes)

Annual Environmental Management Report Page 94 July 2006 – June 2007 Muswellbrook Coal Company Limited

TABLE 27 - MAINTENANCE ACTIVITIES ON REHABILITATED LAND 2006/07 AREA TREATED (Ha) NATURE OF TREATMENT Report Next Comment / Control Strategies / Treatment Period Period Detail Additional erosion control works Contour drains required maintenance after the (drains, re-contouring, rock 0 0 heavy June rains but most survived with minor protection) damage Re-covering (detail - further topsoil, subsoil 0 0 NA sealing etc) Soil Treatment 0 0 NA (detail - fertiliser, lime gypsum etc) Slashing was conducted along fire breaks in Treatment / Management 0 0 accordance with the Bushfire Management (detail - grazing, cropping, slashing) Plan Re-seeding / Replanting Some existing rehabilitated areas in the No.2 (detail - species density, season 0 5 OC may require further seeding due to the etc) effects of drought. Areas of major occurrence of weeds (Galenia, Adversely Affected by Weeds Castor Oil Bush, Pattersons Curse) were 10 10 (detail – type and treatment) treated with selective herbicide and will continue during the next reporting period Feral Animal Control (detail – additional fencing, 0 0 Not undertaken during this reporting period trapping, baiting etc)

A kangaroo cull was conducted during the reporting period, on MCC property along Sandy Creek Road.

5.3 Other Infrastructure A series of investigations into a possible bypass route around Muswellbrook have taken place over a number of years. At this time no final decision as to the route that will be followed has been announced by the relevant authorities. At least one of the alternative routes bisects the existing No.1 Open Cut overburden area.

5.4 Rehabilitation Trials and Research MCC has participated in a number of ACARP trials into the sealing and rehabilitation of material which is liable to spontaneous combustion. These reports include the following:

Development of Rehabilitation Completion Criteria for Native Ecosystem Establishment on Coal Mines in the Hunter Valley (C13048) Rehabilitation of Spontaneous Combustion – Prone Spoil Piles (C9031) Infra Red Thermography for Monitoring Spoil Piles (C9062)

5.5 Further Development of the Final Rehabilitation Plan Once final mine closure has been completed the creation of a multi-layered vegetation community will serve to encourage re-population of the area by a range of native fauna through providing wildlife habitat and protected corridors for fauna movement between the mine site and adjacent remnant vegetation areas. On final completion it is anticipated that tree corridors will run from the east emplacement area linking into Bells Mountain, across the mine site to Skelletar Ridge.

Annual Environmental Management Report Page 95 July 2006 – June 2007 Muswellbrook Coal Company Limited

Habitat reinstatement areas across the mine site are at various stages of development. Most areas contain tree lots that are around 6-8 years old. The majority of tree areas on the mine site are healthy and in some areas quite vigorous growth has occurred (refer to Figure 67).

Weed spraying, part of the site weed management program, was conducted in the reporting period targeting Galenia, Pattersons Curse and Castor Oil bush. Spraying was conducted on rehabilitated lands and buffer lands, The No.2 cutback creek diversion was sprayed for galenia and a program of additional seeding and planting of native tubestock will occur in the next monitoring period.

Figure 67 – Typical Tree Plot Displaying Vigorous Growth

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6 ACTIVITES PROPOSED IN THE NEXT AEMR PERIOD

During the next reporting period, the following activities are planned;

¾ Rehabilitation of the No.1 Open Cut Extension is planned in the in pit emplacement area; ¾ Rehabilitation of the No.2 Open Cut is planned for the top of the in-pit emplacement to the RL 260; ¾ Overburden from the No.2 open cut cutback will be used to reduce spontaneous combustion areas and allow the rehabilitation to continue in the No.2 Open Cut. ¾ Spontaneous Combustion will continue to be reviewed every 3 months with reports provided to the Department of Primary Industries – Mineral Resources (DPI-MR) and monthly updates provided to the Department of Environment and Conservation (DEC). ¾ MCC will trial organic soil treatments in both the No.1 and No.2 Open Cuts. An organic growth medium mulch from Eastern Creek will be used in the No.2 Open Cut and a mulched green waste from the Muswellbrook Council Waste facility will be used in the No.1 Open Cut. ¾ Rehabilitation monitoring will commence using Landscape Function Analysis to establish current indicators of rehabilitation sustainability and allow future tracking of rehabilitation performance.

Annual Environmental Management Report Page 97 July 2006 – June 2007 Muswellbrook Coal Company Limited

APPENDIX 1

AEMR Plan

Annual Environmental Management Report July 2006 – June 2007

Muswellbrook Coal Company

APPENDIX 2

Dust Monitoring Results

Annual Environmental Management Report July 2006 – June 2007 Muswellbrook Coal Company Limited

DEPOSITIONAL DUST RESULTS – JULY 2006 to JUNE 2007

DM2 DM7 DM10 DM14 Insoluable Insoluable Insoluable Insoluable Date Date In Date Out Ash %Ash/IS Ash %Ash/IS Ash %Ash/IS Ash %Ash/IS Solids Solids Solids Solids Jul-06 29/06/2006 31/07/2006 5.9 3.6 61.0 1.0 0.7 70.0 1.1 0.6 54.5 1.0 0.6 60.0 Aug-06 31/07/2006 31/08/2006 2 1.3 65.0 0.9 0.6 66.7 2.5 1.5 60.0 2.5 1.5 60.0 Sep-06 31/08/2006 29/09/2006 13.6 9.9 72.8 1.3 0.9 69.2 2.0 1.3 65.0 2.5 1.3 52.0 Oct-06 29/09/2006 30/10/2006 11.6 7.7 66.4 1.6 1.1 68.8 1.4 0.9 64.3 1.1 0.6 54.5 Nov-06 30/10/2006 30/11/2006 5.3 3.9 73.6 1.9 1.6 84.2 2.5 1.9 76.0 2.1 1.6 76.2 Dec-06 30/11/2006 28/12/2006 7.1 4.6 64.8 1.8 1.4 77.8 1.6 1.1 68.8 1.9 1.3 68.4 Jan-07 28/12/2006 29/01/2007 6.2 3.7 59.7 1.2 0.7 58.3 0.9 0.5 55.6 0.9 0.5 55.6 Feb-07 29/01/2007 27/02/2007 10.8 7.4 68.5 1.8 1.4 77.8 1.5 1.0 66.7 1.2 0.9 75.0 Mar-07 27/02/2007 29/03/2007 12.3 8.2 66.7 2.6 1.7 65.4 5.2 3.3 63.5 2.2 1.2 54.5 Apr-07 29/03/2007 26/04/2007 5.7 4.1 71.9 1.6 1.2 75.0 2.4 1.6 66.7 1.2 0.8 66.7 May-07 26/04/2007 28/05/2007 2.1 1.4 66.7 1.0 0.6 60.0 6.6 2.7 40.9 0.6 0.3 50.0 Jun-07 28/05/2007 28/06/2007 1.3 0.7 53.8 0.7 0.3 42.9 2.8 1.6 57.1 0.7 0.3 42.9 Annual Average (Jul 06 - Jun 07): 7.0 1.5 2.5 1.5 Historical Average 2.1 1.1 2.5 1.2 Notes: CT = Contaminated result due to the presence of bird droppings, insects, or vegetation in sample. No result due to inacessability, equipment damage etc.

Annual Environmental Management Report July 2006 – June 2007 Muswellbrook Coal Company

DM15 DM16 DM17 DM18 Insoluable Insoluable Insoluable Insoluable Date Date In Date Out Ash %Ash/IS Ash %Ash/IS Ash %Ash/IS Ash %Ash/IS Solids Solids Solids Solids Jul-06 29/06/2006 31/07/2006 1.6 0.7 43.8 1.2 0.6 50.0 1.7 1.0 58.8 1.1 0.6 54.5 Aug-06 31/07/2006 31/08/2006 2.4 1.4 58.3 1.4 0.7 50.0 1.0 0.6 60.0 0.5 0.3 60.0 Sep-06 31/08/2006 29/09/2006 8.0 2.4 30.0 1.1 0.6 54.5 2.0 1.1 55.0 1.2 0.6 50.0 Oct-06 29/09/2006 30/10/2006 0.7 0.4 57.1 0.9 0.6 66.7 1.8 1.2 66.7 0.6 0.5 83.3 Nov-06 30/10/2006 30/11/2006 2.7 1.7 63.0 1.8 1.3 72.2 2.4 1.8 75.0 1.8 1.4 77.8 Dec-06 30/11/2006 28/12/2006 0.8 0.7 87.5 2.7 0.7 2.6 1.9 73.1 1.1 0.8 72.7 Jan-07 28/12/2006 29/01/2007 0.8 0.4 50.0 3.0 0.7 23.3 2.0 1.2 60.0 1.0 0.5 50.0 Feb-07 29/01/2007 27/02/2007 3.0 1.8 60.0 1.8 1.2 66.7 1.8 1.4 77.8 1.2 0.8 66.7 Mar-07 27/02/2007 29/03/2007 3.5 1.5 42.9 2.2 1.0 45.5 2.2 1.4 63.6 1.4 0.9 64.3 Apr-07 29/03/2007 26/04/2007 0.9 0.6 66.7 1.0 0.7 70.0 2.1 1.7 81.0 0.8 0.6 75.0 May-07 26/04/2007 28/05/2007 0.8 0.3 37.5 1.8 0.7 38.9 2.1 1.6 76.2 0.6 0.3 50.0 Jun-07 28/05/2007 28/06/2007 0.9 0.5 55.6 0.7 0.4 57.1 0.9 0.5 55.6 0.5 0.2 40.0 Annual Average (Jul 06 - Jun 07): 2.2 1.6 1.9 1.0 Historical Average 2.7 2.1 1.7 1.0

DM19 DM20 DM22 DM23 Insoluable Insoluable Insoluable Insoluable Date Date In Date Out Ash %Ash/IS Ash %Ash/IS Ash %Ash/IS Ash %Ash/IS Solids Solids Solids Solids Jul-06 29/06/2006 31/07/2006 CT10.3 8.3 1.50.746.71.50.746.71.51.066.7 Aug-06 31/07/2006 31/08/2006 CT9.5 5.4 ` 3.7 2.0 54.1 2.5 1.4 56.0 1.3 0.7 53.8 Sep-06 31/08/2006 29/09/2006 2.8 1.1 39.3 1.9 1.2 63.2 1.3 0.8 61.5 1.5 0.9 60.0 Oct-06 29/09/2006 30/10/2006 6.5 3.0 46.2 3.6 1.7 47.2 1.7 0.9 52.9 1.5 0.7 46.7 Nov-06 30/10/2006 30/11/2006 3.2 2.3 71.9 2.8 2.0 71.4 1.9 1.8 94.7 1.7 1.3 76.5 Dec-06 30/11/2006 28/12/2006 2.2 1.6 72.7 1.4 1.1 78.6 1.1 0.8 72.7 1.6 1.2 75.0 Jan-07 28/12/2006 29/01/2007 2.0 1.3 65.0 4.4 1.2 27.3 4.4 1.2 27.3 2.0 1.1 55.0 Feb-07 29/01/2007 27/02/2007 4.3 2.8 65.1 3.1 2.4 77.4 2.2 1.6 72.7 2.2 1.5 68.2 Mar-07 27/02/2007 29/03/2007 5.1 2.5 49.0 7.9 5.5 69.6 3.5 2.4 68.6 2.3 1.6 69.6 Apr-07 29/03/2007 26/04/2007 3.3 1.9 57.6 5.8 4.4 75.9 2.0 1.3 65.0 3.1 1.7 54.8 May-07 26/04/2007 28/05/2007 7.5 5.3 70.7 3.0 2.1 70.0 1.5 0.9 60.0 5.1 2.9 56.9 Jun-07 28/05/2007 28/06/2007 6.0 4.1 68.3 2.8 1.7 60.7 2.6 1.5 57.7 1.6 1.1 68.8 Annual Average (Jul 06 - Jun 07): 4.3 3.5 2.2 2.1 Historical Average 2.1 1.8 1.6 1.3

Annual Environmental Management Report July 2006 – June 2007 Muswellbrook Coal Company

DM24 DM26 DM27 DM28 Insoluable Insoluable Insoluable Insoluable Date Date In Date Out Ash %Ash/IS Ash %Ash/IS Ash %Ash/IS Ash %Ash/IS Solids Solids Solids Solids Jul-06 29/06/2006 31/07/2006 2.3 1.4 60.9 1.1 0.7 63.6 4.1 2.6 63.4 1.9 1.3 68.4 Aug-06 31/07/2006 31/08/2006 1.1 0.7 63.6 1.3 0.7 53.8 2.7 1.8 66.7 1.1 0.7 63.6 Sep-06 31/08/2006 29/09/2006 2.0 1.2 60.0 1.1 0.7 63.6 CT15.7 3.7 3.8 2.0 52.6 Oct-06 29/09/2006 30/10/2006 1.6 0.9 56.3 1.4 0.7 50.0 5.3 3.0 56.6 2.6 1.3 50.0 Nov-06 30/10/2006 30/11/2006 2.8 2.2 78.6 1.9 1.6 84.2 8.3 6.2 74.7 4.8 3.5 72.9 Dec-06 30/11/2006 28/12/2006 3.2 2.1 65.6 1.7 1.1 64.7 9.4 6.9 73.4 2.1 1.5 71.4 Jan-07 28/12/2006 29/01/2007 2.5 1.4 56.0 1.6 0.4 25.0 4.3 2.6 60.5 1.8 1.1 61.1 Feb-07 29/01/2007 27/02/2007 3.4 2.5 73.5 1.3 1.0 76.9 4.7 3.7 78.7 1.3 1.1 84.6 Mar-07 27/02/2007 29/03/2007 3.7 2.4 64.9 2.2 1.4 63.6 CT18.5 13.7 74.1 3.9 2.4 61.5 Apr-07 29/03/2007 26/04/2007 2.4 1.6 66.7 1.2 0.7 58.3 6.6 4.6 69.7 2.9 2.0 69.0 May-07 26/04/2007 28/05/2007 2.0 1.2 60.0 4.4 1.9 43.2 3.8 2.6 68.4 1.2 0.7 58.3 Jun-07 28/05/2007 28/06/2007 1.1 0.5 45.5 CT33.2 9.4 28.3 4.7 2.8 59.6 1.0 0.6 60.0 Annual Average (Jul 06 - Jun 07): 2.3 1.7 5.4 2.4 Historical Average 1.8 1.6 2.4 2.0

DM29 DM30 Insoluable Insoluable Date Date In Date Out Ash %Ash/IS Ash %Ash/IS Criteria Solids Solids Jul-06 29/06/2006 31/07/2006 1.9 1.4 73.7 2.1 1.4 66.7 4.0 Aug-06 31/07/2006 31/08/2006 0.9 0.5 55.6 0.6 0.4 66.7 4.0 Sep-06 31/08/2006 29/09/2006 1.8 1.1 61.1 2.0 1.3 65.0 4.0 Oct-06 29/09/2006 30/10/2006 1.9 1.2 63.2 2.1 1.4 66.7 4.0 Nov-06 30/10/2006 30/11/2006 3.0 2.1 70.0 2.6 2.0 76.9 4.0 Dec-06 30/11/2006 28/12/2006 CT8.0 4.4 2.9 1.9 65.5 4.0 Jan-07 28/12/2006 29/01/2007 1.6 1.0 62.5 1.8 1.0 55.6 4.0 Feb-07 29/01/2007 27/02/2007 0.9 0.8 88.9 1.7 1.4 82.4 4.0 Mar-07 27/02/2007 29/03/2007 1.6 1.1 68.8 5.9 3.5 59.3 4.0 Apr-07 29/03/2007 26/04/2007 1.9 1.4 73.7 1.7 1.3 76.5 4.0 May-07 26/04/2007 28/05/2007 1.3 0.7 53.8 0.9 0.5 55.6 4.0 Jun-07 28/05/2007 28/06/2007 3.5 2.1 60.0 0.6 0.5 83.3 4.0 Annual Average (Jul 06 - Jun 07): 1.8 2.1 Historical Average 1.7 1.7

Annual Environmental Management Report July 2006 – June 2007 Muswellbrook Coal Company

3 PM10 TEOM MONITORING RESULTS – 1 JULY 2006 to JUNE 2007 (µg/m )

Site 1 Site 2 Site 3 Date 24 Hr Min 24hr Average Max Min 24hr Average Max Min Max Average 01-Jul-06 0.63 4.85 11.25 0.31 4.92 18.75 0.31 4.61 10.63 02-Jul-06 1.25 6.31 16.88 0.31 6.29 20.31 0.63 6.35 47.19 03-Jul-06 2.81 11.42 35.63 1.88 11.83 40 2.81 11.88 44.06 04-Jul-06 0.94 10.87 25 1.56 9.67 25.63 2.19 11.38 38.13 05-Jul-06 2.5 9.67 17.81 0.94 9.35 15.94 0.94 9.4 18.13 06-Jul-06 0.31 20.95 280.63 0.31 12.41 113.44 0.94 10.78 53.75 07-Jul-06 0.63 9.44 126.25 0.63 12.1 80.94 0.31 8.72 22.19 08-Jul-06 1.56 8.18 17.19 0.63 8.59 19.69 1.88 8.54 20 09-Jul-06 1.88 8.27 18.13 1.56 8.58 25 1.56 8.8 21.56 10-Jul-06 0.31 8.69 20 0.63 9.25 22.81 0.31 8.57 21.56 11-Jul-06 5.63 11.9 21.25 3.75 12.47 28.75 4.06 12.38 26.88 12-Jul-06 4.69 16.71 39.69 3.44 27.11 203.13 2.5 33.1 477.5 13-Jul-06 3.75 15.5 36.25 8.44 35.79 244.06 4.38 23.53 185.63 14-Jul-06 3.13 15.29 35.31 5.31 ID 79.39 1110.63 3.13 29.66 294.06 15-Jul-06 0.31 9.31 52.81 0.31 18.85 137.5 0.31 9.98 52.19 16-Jul-06 0.31 5.03 42.5 0.31 4.69 21.56 0.31 4.41 24.38 17-Jul-06 0.31 4.47 9.69 0.31 4.66 10.63 0.31 3.86 9.38 18-Jul-06 2.19 7.01 17.5 0.31 11.07 143.13 1.25 12.8 99.69 19-Jul-06 2.81 10.07 22.19 2.19 24.11 250.63 1.88 13.7 50.63 20-Jul-06 2.5 7.63 15.63 1.25 11.09 35.31 1.88 8.8 29.38 21-Jul-06 3.13 12.9 71.56 1.56 15.4 78.13 1.56 25.26 361.56 22-Jul-06 2.5 12.56 26.56 0.94 14.64 51.25 2.5 14.81 50.31 23-Jul-06 0.63 11.63 64.38 0.31 9.39 35.94 0.31 8.38 34.06 24-Jul-06 1.56 12.52 38.13 0.31 11.42 28.75 0.31 11.34 29.38 25-Jul-06 0.31 9.49 27.5 0.31 12.62 32.19 0.31 12.95 113.13 26-Jul-06 2.19 11.85 32.81 0.63 12.65 23.75 0.63 12.61 31.25 27-Jul-06 0.31 13.36 112.19 0.31 14.99 81.56 0.63 12.72 67.81 28-Jul-06 0.31 10.96 47.19 0.31 12.08 40.31 0.31 9.37 40.63 29-Jul-06 0.31 7.04 32.5 0.31 7.87 44.06 0.31 6.78 23.75 30-Jul-06 0.31 7.08 28.75 0.31 9.03 98.44 0.63 7.46 56.25 31-Jul-06 0.63 8.23 22.81 0.63 9.15 35 0.63 18.43 256.25

Annual Environmental Management Report July 2006 – June 2007 Muswellbrook Coal Company

Site 1 Site 2 Site 3 Date 24 Hr Min 24hr Average Max Min 24hr Average Max Min Max Average 01-Aug-06 0.63 7.38 19.38 0.31 7.83 20.31 0.63 8.84 48.13 02-Aug-06 0.31 8.79 22.5 0.63 11.28 139.38 0.31 10.07 113.75 03-Aug-06 1.88 8.61 22.5 0.31 10.78 128.44 0.31 9.04 30.63 04-Aug-06 0.31 8.01 28.44 0.63 8.08 30.31 0.94 8.78 38.13 05-Aug-06 0.94 13.49 87.81 1.56 13.02 38.44 1.56 14.3 62.19 06-Aug-06 5.63 14.92 27.81 0.31 13.75 41.56 1.88 14.92 27.5 07-Aug-06 8.13 19.94 61.88 0.63 22.4 93.13 2.5 22.1 45.31 08-Aug-06 0.94 16.76 100 0.31 18.21 73.44 0.63 17.39 133.44 09-Aug-06 0.63 14.5 57.5 0.31 13.45 52.81 0.31 10.16 32.19 10-Aug-06 9.38 21.68 195.94 1.56 24.32 63.44 5.94 23.38 103.44 11-Aug-06 1.25 16.65 41.56 2.5 16.26 43.44 0.31 14.81 30.94 12-Aug-06 0.94 20.32 65.31 2.19 20.88 52.81 1.56 18.97 44.06 13-Aug-06 0.94 21.29 62.19 0.63 22.95 60 0.94 20.34 42.19 14-Aug-06 0.31 15.02 36.88 0.31 17.27 75.94 0.31 15.22 41.56 15-Aug-06 0.63 19.31 97.81 0.63 28.82 1054.69 0.63 20.29 159.06 16-Aug-06 0.31 21.61 74.38 0.63 30.89 165 0.31 22.77 76.56 17-Aug-06 6.25 31.62 183.13 0.94 27.49 94.06 4.06 28.99 82.81 18-Aug-06 6.88 26.66 154.06 0.63 28.63 147.19 3.44 18.45 51.88 19-Aug-06 2.5 14.56 48.13 0.31 19.28 123.75 20-Aug-06 7.5 14.28 53.75 1.25 14.96 55.31 21-Aug-06 6.56 15.5 34.06 0.31 19.59 125 22-Aug-06 0.63 17.16 44.69 2.5 18.49 42.19 13.13 21.1 45 23-Aug-06 3.44 13.81 26.88 4.69 17.57 77.19 0.31 13.9 44.69 24-Aug-06 0.31 16.91 94.38 0.31 17.75 112.5 0.63 14.12 30.94 25-Aug-06 0.31 12.76 54.69 0.31 9.84 32.81 2.81 9.91 29.38 26-Aug-06 6.56 12.1 33.44 2.5 11.89 21.25 6.88 12.72 49.69 27-Aug-06 1.88 14.23 35 0.31 13.57 33.75 2.81 13 33.44 28-Aug-06 9.69 20.9 50.63 7.81 21.53 72.5 11.56 21.16 41.56 29-Aug-06 4.69 11.34 31.88 1.56 11.28 26.56 5.63 14.46 34.69 30-Aug-06 1.88 10.44 35 0.31 11.75 44.38 4.06 13.91 60.31 31-Aug-06 1.56 10.63 26.25 0.31 11.56 32.5 1.56 12.68 27.5

Annual Environmental Management Report July 2006 – June 2007 Muswellbrook Coal Company

Site 1 Site 2 Site 3 Date 24 Hr Min 24hr Average Max Min 24hr Average Max Min Max Average 01-Sep-06 0.31 9.27 30.31 0.31 9.62 35.94 0.63 9.01 20.94 02-Sep-06 0.31 8.65 54.69 0.31 8.88 35.94 0.31 8.2 24.69 03-Sep-06 0.31 10.14 50 0.31 11.41 58.75 0.31 10.61 49.69 04-Sep-06 0.31 4.53 12.5 0.63 10.16 30.63 1.25 9.72 56.56 05-Sep-06 3.44 3.44 3.44 2.81 16.75 39.38 4.38 17.79 48.44 06-Sep-06 0.31 12.75 64.38 0.31 17.32 76.88 0.31 18.29 148.13 07-Sep-06 0.31 6.53 23.44 0.31 6.85 28.75 0.31 6.1 22.5 08-Sep-06 2.81 8.72 25 0.94 10.66 38.13 1.25 10.17 37.81 09-Sep-06 0.31 9.11 24.69 0.31 7.8 24.69 0.94 8.88 29.38 10-Sep-06 1.56 7.5 20.31 0.31 6.75 22.81 0.63 7.41 18.13 11-Sep-06 0.94 7.14 12.5 0.31 6.44 23.44 0.31 11.23 47.81 12-Sep-06 3.44 10.16 18.44 0.94 11.42 65 1.25 16.41 67.81 13-Sep-06 4.38 12.47 113.75 0.63 14.91 88.13 4.06 35.28 344.38 14-Sep-06 0.31 21.45 489.38 0.31 16.88 57.81 0.63 13.79 49.06 15-Sep-06 0.31 15.76 35.31 0.31 26.45 115.94 0.63 25.03 202.81 16-Sep-06 0.94 15.22 27.5 0.94 14.93 29.06 0.31 14 26.25 17-Sep-06 0.63 14.66 35.31 0.31 14.24 44.69 0.31 12.89 30 18-Sep-06 0.31 21.76 284.69 1.25 16.99 35.63 0.31 15.79 35.63 19-Sep-06 1.56 16.09 74.38 0.94 15.09 27.19 20-Sep-06 7.81 27.71 85.31 7.5 27.73 104.69 21-Sep-06 12.5 36.53 310 8.44 37.4 225.31 9.06 32.06 250.63 22-Sep-06 0.31 20.14 44.69 0.31 19.05 47.19 0.31 18.09 37.5 23-Sep-06 3.75 26.92 57.81 2.5 24.19 64.38 2.19 24.32 57.5 24-Sep-06 4.38 38.56 108.44 5 41.05 142.19 25-Sep-06 14.38 28.76 114.69 15.63 33.02 98.13 26-Sep-06 8.44 23.46 78.13 5.63 32.54 215.63 1.25 27.16 78.44 27-Sep-06 0.31 11.74 55 0.31 13.67 40.31 0.31 12.88 44.06 28-Sep-06 0.31 25.12 48.75 0.31 36.04 277.19 0.31 27.4 65.94 29-Sep-06 0.31 17.75 112.19 0.31 19.01 70.31 0.31 16.8 40.31 30-Sep-06 1.25 23.33 61.56 0.63 23.37 75.31 0.94 22.25 68.13

Annual Environmental Management Report July 2006 – June 2007 Muswellbrook Coal Company

Site 1 Site 2 Site 3 Date 24 Hr Min 24hr Average Max Min 24hr Average Max Min Max Average 01-Oct-06 0.31 22.25 87.5 0.63 20.58 45.31 1.88 21.1 44.69 02-Oct-06 0.63 25.63 204.06 0.31 38.21 287.5 0.31 28.45 251.56 03-Oct-06 5.63 24.78 38.44 9.38 51.2 234.06 10.31 28.68 100.94 04-Oct-06 1.25 19.34 37.5 2.5 53.35 379.38 5.31 52.26 324.38 05-Oct-06 0.31 21.83 62.19 0.31 24.36 82.81 0.31 23.62 145.94 06-Oct-06 15.31 34.51 80.63 9.06 44.4 147.81 12.81 43.3 141.56 07-Oct-06 0.63 20.14 81.56 0.31 21.63 75.63 0.31 20.02 75 08-Oct-06 0.31 35.55 770.31 0.31 43.57 890.63 0.63 35.82 636.88 09-Oct-06 0.31 20.31 177.19 7.81 34.14 129.69 3.13 22.43 65 10-Oct-06 2.81 23.14 262.81 0.31 32.7 200.94 3.13 26.03 77.19 11-Oct-06 1.25 24.19 154.38 1.25 25.65 65 0.31 23.1 53.44 12-Oct-06 0.31 18.58 51.56 0.63 22.24 77.5 1.56 19.92 44.69 13-Oct-06 0.63 18.12 39.38 0.63 21.55 249.69 0.94 19.18 38.13 14-Oct-06 0.31 17.64 81.25 0.94 20.37 90.63 0.63 16.34 80.31 15-Oct-06 17.19 28.65 50.63 13.44 35.21 59.06 18.75 41.66 81.88 16-Oct-06 0.31 7.9 31.56 0.31 22.84 65.63 0.31 12.51 75.31 17-Oct-06 0.63 18.98 160.94 1.56 21.61 212.81 2.5 24.28 242.19 18-Oct-06 0.63 23.78 97.19 0.94 24.5 135.31 0.94 21.3 140 19-Oct-06 3.13 28.79 219.38 0.31 30.79 335.63 3.75 27.67 316.56 20-Oct-06 0.31 23.41 92.81 0.31 24 145.63 0.31 25.21 142.5 21-Oct-06 0.31 17.77 64.06 0.31 25.11 115 0.31 20.37 71.25 22-Oct-06 0.94 9.1 32.19 0.31 10.86 49.06 0.31 9.04 34.38 23-Oct-06 0.31 15.06 180.31 0.31 16.34 91.56 0.31 19.29 110 24-Oct-06 0.63 21.52 121.56 0.31 24.3 119.38 0.31 20.55 63.75 25-Oct-06 0.31 20.24 136.88 0.31 28.34 170.94 0.31 20.35 104.69 26-Oct-06 5 28.16 109.69 0.31 35.31 108.75 0.94 30.95 98.13 27-Oct-06 0.31 26.16 120.94 0.63 34.01 162.81 0.31 29.43 222.5 28-Oct-06 0.31 25.52 352.19 0.31 30.36 339.06 0.31 24.69 292.81 29-Oct-06 4.69 22.56 59.06 0.63 24.18 57.5 4.38 22.02 42.19 30-Oct-06 0.63 21.55 113.75 0.63 31.77 199.38 0.31 25.13 107.19 31-Oct-06 0.31 18.77 130.63 0.63 24.56 259.69 0.31 24.9 204.06

Annual Environmental Management Report July 2006 – June 2007 Muswellbrook Coal Company

Site 1 Site 2 Site 3 Date 24 Hr Min 24hr Average Max Min 24hr Average Max Min Max Average 01-Nov-06 0.31 20.72 155.63 0.31 29.8 156.88 0.31 26.01 177.81 02-Nov-06 0.31 28.57 190.31 0.31 34.77 212.19 0.31 36.06 292.19 03-Nov-06 0.31 10.87 95.94 0.31 17.98 90.31 0.31 17.92 75.31 04-Nov-06 0.31 4.89 16.25 0.31 7.55 20.31 0.31 6.45 39.69 05-Nov-06 0.31 7.59 26.88 0.31 10.8 42.81 06-Nov-06 0.31 8.7 37.5 0.31 18.89 153.13 07-Nov-06 0.94 17.68 89.06 0.31 24.73 94.38 08-Nov-06 0.31 8.08 28.44 0.31 20.86 91.25 0.31 13.2 33.44 09-Nov-06 0.31 10.55 37.5 0.94 24.45 68.44 0.31 17.05 93.75 10-Nov-06 0.31 12.18 87.19 0.31 20.77 112.19 0.31 17.62 104.06 11-Nov-06 0.31 12.02 73.44 0.31 17.15 87.81 0.31 18.11 599.69 12-Nov-06 0.31 22.19 81.88 0.31 28.5 85 0.31 23.33 76.56 13-Nov-06 0.31 34.47 218.44 0.31 39.4 312.19 0.31 31.64 260.31 14-Nov-06 0.31 16.2 218.13 0.31 20.52 70 0.31 20.22 61.25 15-Nov-06 0.31 20.53 90 0.31 33.66 233.13 0.63 26.33 121.25 16-Nov-06 0.31 16.55 123.75 0.31 26.51 175.94 0.31 22.04 121.88 17-Nov-06 0.31 15.7 43.13 0.31 31.36 215.63 0.63 26.78 172.81 18-Nov-06 0.31 20.32 85.94 0.31 27.38 112.81 0.31 24.17 105.94 19-Nov-06 0.31 28.39 122.5 0.31 32.2 86.25 0.31 31.92 116.25 20-Nov-06 0.31 28.65 100 0.31 37.81 138.75 0.31 31.49 97.19 21-Nov-06 0.94 20.36 51.88 0.63 25.84 95.63 0.63 23.93 56.88 22-Nov-06 0.31 27.28 170.63 0.63 32.54 228.75 1.25 31.7 275.94 23-Nov-06 0.31 56.24 745.94 0.31 71.63 722.81 0.31 75.58 758.75 24-Nov-06 1.56 27.71 82.5 5 49.46 227.81 3.75 39.77 146.25 25-Nov-06 0.31 28.53 148.13 0.31 34.31 204.38 0.63 35.35 179.06 26-Nov-06 2.19 33.21 105.63 0.31 51.41 208.13 0.94 42.4 141.88 27-Nov-06 3.13 17.43 37.5 5.63 30.3 116.88 5.63 38.99 159.06 28-Nov-06 0.63 25.91 637.19 0.31 29.59 119.69 0.63 25.72 108.75 29-Nov-06 14.69 38.04 141.56 14.38 47.47 215 12.19 38.9 190 30-Nov-06 0.31 21.69 745.94 0.31 30.43 722.81 0 25.92 758.75

Annual Environmental Management Report July 2006 – June 2007 Muswellbrook Coal Company

Site 1 Site 2 Site 3 Date 24 Hr Min 24hr Average Max Min 24hr Average Max Min Max Average 01-Dec-06 36.56 51.07 79.38 30.94 50.11 74.38 29.69 58.27 567.81 02-Dec-06 4.38 39.81 301.88 2.81 40.07 297.19 2.81 40.24 401.88 03-Dec-06 0.31 10.36 25.31 0.31 6.47 19.69 0.31 10.77 29.69 04-Dec-06 7.19 17.4 64.69 6.88 21.3 119.06 05-Dec-06 0.31 12.4 28.13 2.81 26.3 160.31 06-Dec-06 4.06 24.6 135.31 0.63 30.8 102.19 07-Dec-06 8.44 31 137.5 0.31 62 848.75 08-Dec-06 5.31 21.61 42.81 10.94 37.88 169.38 09-Dec-06 0.31 17 31.25 6.25 35 288 10-Dec-06 1.88 23.41 66.56 0.31 29.58 178.44 11-Dec-06 0.63 31.16 157.5 2.5 31.41 330.31 12-Dec-06 1.56 18.66 90.94 0.94 41.33 226.88 13-Dec-06 5.31 17.65 91.25 5.63 26.13 133.44 14-Dec-06 1.56 23.89 140.94 0.31 23.84 71.88 15-Dec-06 0.31 37.36 141.25 0.31 43.53 351.88 16-Dec-06 2.19 14.03 30 2.19 24.64 127.81 17-Dec-06 0.63 11.22 26.25 0.31 15.27 64.06 18-Dec-06 0.94 25.47 66.88 0.63 26.49 101.25 19-Dec-06 1.25 37.75 206.88 0.31 41.17 210.63 20-Dec-06 4.38 25.11 47.81 6.56 48.33 251.56 8.44 39.95 140.94 21-Dec-06 2.5 11.26 40.31 2.19 16.65 57.81 1.25 15.49 103.44 22-Dec-06 1.56 20.65 86.56 0.31 21.34 86.56 0.94 17.2 68.13 23-Dec-06 0.94 18.6 59.06 1.25 25.44 91.88 0.63 18.58 85 24-Dec-06 0.31 14.6 95 0.31 17.3 83.75 0.31 14.93 79.38 25-Dec-06 0.31 8.57 37.81 0.31 12.1 56.56 0.31 9.23 70.63 26-Dec-06 0.31 17.47 90.94 0.31 20.7 83.13 0.31 18.82 93.75 27-Dec-06 0.31 19.22 156.56 0.94 25.86 206.25 0.94 20.97 194.69 28-Dec-06 0.63 17.83 103.44 0.31 23.48 114.06 0.63 19.88 129.06 29-Dec-06 0.63 27.83 126.88 0.31 42.46 200.63 0.31 37.27 202.81 30-Dec-06 0.31 14.46 85.94 0.31 18.93 90 0.31 15.74 83.44 31-Dec-06 0.31 11.09 38.13 0.31 14.68 43.13 0.31 12.4 47.5

Annual Environmental Management Report July 2006 – June 2007 Muswellbrook Coal Company

Site 1 Site 2 Site 3 Date 24 Hr Min 24hr Average Max Min 24hr Average Max Min Max Average 01-Jan-07 0.31 10.34 37.5 0.31 16.57 64.06 0.31 11.91 38.75 02-Jan-07 0.31 12.76 143.13 0.31 23.04 250 0.31 11.1 42.81 03-Jan-07 0.31 11.84 87.81 0.31 40.53 303.44 0.31 28.45 321.88 04-Jan-07 0.31 12.29 80.31 0.63 43.18 226.88 0.31 27.17 233.13 05-Jan-07 0.31 15.39 47.5 0.63 57.96 353.13 0.31 35.01 147.5 06-Jan-07 0.63 17.71 67.5 0.31 26.3 140.31 0.31 18.85 74.69 07-Jan-07 0.63 17.44 176.56 0.31 27.14 156.88 0.31 22.05 176.25 08-Jan-07 0.31 31.99 71.56 0.94 54.29 152.81 0.94 46.36 192.19 09-Jan-07 0.94 19.07 74.38 2.5 57.14 445.94 0.63 27.55 133.44 10-Jan-07 1.25 29.84 152.5 0.31 57.37 290 0.94 42.87 130.63 11-Jan-07 0.63 27.11 102.19 1.25 39.77 186.56 0.31 30.54 109.06 12-Jan-07 0.63 45.7 256.88 2.19 26.5 96.56 0.31 46.01 191.88 13-Jan-07 6.25 40.66 193.13 8.13 33.72 96.25 14-Jan-07 5.94 19.21 35 6.56 18.6 46.88 15-Jan-07 5.63 19.63 52.19 0.63 26.35 98.75 16-Jan-07 2.81 22.06 49.38 7.19 32.45 52.19 3.13 50.37 295.63 17-Jan-07 0.31 28.19 110.94 0.63 56.26 405 0.31 40.59 258.75 18-Jan-07 0.31 28.21 77.81 0.31 43.71 166.88 0.31 46.25 250 19-Jan-07 0.31 22.52 71.56 6.56 38.22 117.5 2.81 34.4 180.94 20-Jan-07 0.31 15.73 38.44 0.31 26.4 77.81 0.31 16.85 48.44 21-Jan-07 1.88 25.05 131.88 0.31 30.81 159.06 12.19 12.19 12.19 22-Jan-07 1.25 25.18 108.44 1.88 40.25 159.38 1.88 31.09 151.56 23-Jan-07 0.31 34.44 334.69 0.31 43.43 540.31 0.31 37.75 319.06 24-Jan-07 0.31 11.69 77.5 0.31 17.24 99.06 0.31 15.25 64.06 25-Jan-07 0.31 18.48 175 0.31 24.84 193.44 0.31 30.26 197.81 26-Jan-07 0.31 20.05 189.06 0.31 33.72 331.88 0.31 46.55 233.13 27-Jan-07 0.31 31.46 461.25 0.31 42.36 540 28-Jan-07 0.31 24.24 71.25 0.31 32.39 103.44 29-Jan-07 1.88 30.01 102.5 0.31 37.15 89.38 9.69 25.47 42.19 30-Jan-07 0.94 22.11 71.56 0.31 32.14 117.19 0.31 17.92 57.5 31-Jan-07 0.94 48.39 383.44 0.31 73.75 250 0.63 53.43 203.13

Annual Environmental Management Report July 2006 – June 2007 Muswellbrook Coal Company

Site 1 Site 2 Site 3 Date 24 Hr Min 24hr Average Max Min 24hr Average Max Min Max Average 01-Feb-07 3.13 22.73 56.56 18.13 42.35 131.56 7.81 38.19 154.69 02-Feb-07 0.31 17.75 36.88 0.31 26.81 109.69 0.31 28.56 118.75 03-Feb-07 04-Feb-07 0.31 21.83 77.81 0.94 24.47 54.38 0.94 26.93 63.13 05-Feb-07 0.63 30.42 195 1.25 54.92 228.13 0.31 27.93 119.06 06-Feb-07 6.56 26.11 157.5 4.06 43.08 194.38 07-Feb-07 0.31 22.55 205.63 0.31 32.14 292.5 08-Feb-07 0.31 18.22 100.31 0.31 29.01 160.63 09-Feb-07 0.31 14.38 40.63 0.31 24.35 65.94 10-Feb-07 11-Feb-07 12-Feb-07 0.31 11.62 98.13 0.31 17.52 137.5 13-Feb-07 0.31 9.83 35.63 0.31 18.49 63.44 14-Feb-07 0.31 14.44 125.63 0.31 22.35 100 15-Feb-07 0.31 18.12 156.88 0.63 43.09 257.81 16-Feb-07 0.31 18.4 146.56 0.31 32.51 199.69 17-Feb-07 0.31 13.99 152.19 0.31 21.09 128.13 18-Feb-07 0.31 14.96 175.94 0.31 21.34 228.75 19-Feb-07 0.31 28.05 530 1.25 35.28 355.31 20-Feb-07 2.19 20.37 67.5 1.25 28.39 108.13 13.75 44.18 154.69 21-Feb-07 7.81 24.79 172.5 11.88 26.26 60.94 11.56 26.55 131.88 22-Feb-07 5.63 25.02 259.69 9.69 31.2 344.69 10.94 29.43 205 23-Feb-07 7.19 25 141.56 7.81 38.96 461.88 5.31 38.09 210 24-Feb-07 5 28.78 220.63 1.25 31.31 280.94 6.88 30.22 236.25 25-Feb-07 4.69 13.51 29.06 2.5 16.79 77.5 1.56 15.5 34.38 26-Feb-07 0.63 14.33 62.5 1.88 19.9 187.5 1.25 20.58 177.5 27-Feb-07 0.31 15.2 49.38 2.19 30.87 441.25 1.88 17.49 165.94 28-Feb-07 0.31 19.63 51.88 1.25 36.24 853.13 0.31 25.6 328.44

Annual Environmental Management Report July 2006 – June 2007 Muswellbrook Coal Company

Site 1 Site 2 Site 3 Date 24 Hr Min 24hr Average Max Min 24hr Average Max Min Max Average 01-Mar-07 0.31 14.42 33.44 0.31 22.68 94.38 0.31 27.5 128.44 02-Mar-07 0.31 14.43 47.5 0.63 21.45 176.88 0.31 17.04 65.94 03-Mar-07 3.75 15.86 30.94 5.31 16.84 36.56 3.13 16.76 33.75 04-Mar-07 7.5 20.76 257.19 4.06 22.82 544.38 1.56 20.29 234.69 05-Mar-07 0.63 12.59 94.38 0.31 17.09 131.25 0.31 9.24 19.38 06-Mar-07 0.31 11.94 24.38 1.25 17.56 90 0 0 0 07-Mar-07 2.5 13.98 40 2.19 24.35 372.5 4.69 20.31 89.69 08-Mar-07 0.31 23.9 240 0.31 17.86 103.44 0.31 17.64 59.38 09-Mar-07 0.31 18.56 33.44 3.75 65.89 777.19 2.19 22.16 64.69 10-Mar-07 4.69 19.38 78.44 5.31 26.2 145 5.31 21.54 97.5 11-Mar-07 1.56 20.87 44.38 0.31 21.14 53.44 0.94 21.56 55.31 12-Mar-07 10 29.21 92.19 13.13 60.19 359.06 11.88 34.02 85 13-Mar-07 1.88 11.41 21.56 0.31 50.64 370.31 0.63 17.93 192.81 14-Mar-07 0.94 15.69 37.81 2.19 23.49 108.44 2.19 20.94 56.56 15-Mar-07 1.25 19.95 138.44 0.31 16.03 47.19 0.31 16.78 60.94 16-Mar-07 9.06 18.24 40 3.75 16.51 39.06 3.13 18.35 50 17-Mar-07 0.31 21.56 258.44 0.63 23.35 297.81 0.31 19.64 254.06 18-Mar-07 0.31 8.88 19.69 0.31 9.74 100.31 0.31 13.05 101.25 19-Mar-07 1.88 20.29 52.19 0.31 17.38 58.44 0.31 21.91 78.75 20-Mar-07 0.31 15.93 88.75 0.31 20.65 132.19 0.31 24.03 484.06 21-Mar-07 0.63 22.64 89.06 1.25 32.36 250.94 2.81 42.99 349.38 22-Mar-07 8.44 22.4 113.13 3.13 32.53 145 5.63 36.89 133.13 23-Mar-07 1.88 23.8 118.75 0.63 25.23 93.44 1.25 21.06 65.31 24-Mar-07 0.31 21.17 122.81 0.31 23 152.5 1.25 20.6 69.06 25-Mar-07 0.31 7.1 17.5 0.31 7.82 29.06 0 0 0 26-Mar-07 0.31 11.23 52.5 0.31 25.1 200.31 0.94 11.44 36.56 27-Mar-07 0.31 7.11 19.06 0.31 25.43 376.88 0.94 19.56 195.31 28-Mar-07 0.31 9.44 33.13 0.31 14.41 120.63 0.31 11.57 73.44 29-Mar-07 0.94 15.9 62.81 0.31 20.3 70.94 0.63 16.96 75 30-Mar-07 0.63 10.94 26.56 0.31 14.83 54.06 0.31 12.2 38.13 31-Mar-07 9.69 13.76 21.25 4.69 19.86 63.44 9.06 18 55.94

Annual Environmental Management Report July 2006 – June 2007 Muswellbrook Coal Company

Site 1 Site 2 Site 3 Date 24 Hr Min 24hr Average Max Min 24hr Average Max Min Max Average 01-Apr-07 3.75 17 32.19 1.25 21.85 52.5 2.19 20.39 79.06 02-Apr-07 0.31 19.89 97.5 0.31 22.92 75.63 0.31 17.62 48.75 03-Apr-07 3.44 24.68 132.19 0.63 28.98 140.31 0.31 29.44 79.69 04-Apr-07 0.31 21.89 68.44 0.31 27.91 72.5 0.63 25.07 61.56 05-Apr-07 0.94 21.65 93.44 0.31 29.35 201.88 0.31 22.95 205 06-Apr-07 0.63 15.77 52.81 0.31 23.4 130 0.63 20.6 63.13 07-Apr-07 0.31 7.12 32.81 0.31 10.66 53.13 0.31 9.08 47.81 08-Apr-07 0.31 8.51 34.69 0.31 11.29 32.81 0.31 10.28 32.5 09-Apr-07 0.31 9.89 32.81 0.31 19 95.63 0.31 15.15 64.06 10-Apr-07 0.31 10.92 47.19 0.31 15.55 63.13 0.31 13.88 48.44 11-Apr-07 0.31 17.45 56.56 0.31 29.82 199.06 0.31 22.21 110.31 12-Apr-07 1.56 28.61 143.75 2.81 28.14 71.25 0.31 27.42 68.75 13-Apr-07 2.81 18.24 66.56 0.63 27.73 106.25 0.31 20.53 92.5 14-Apr-07 1.25 24.89 124.06 0.31 28.63 72.81 1.25 25.85 80.31 15-Apr-07 1.88 18.07 71.56 0.63 22.73 108.75 0.31 17.51 93.13 16-Apr-07 0.31 20.91 103.13 0.31 25.87 160.31 0.31 21.94 177.19 17-Apr-07 11.88 30.05 72.19 3.44 34.07 85.63 10.94 35.85 112.81 18-Apr-07 0.63 24.49 79.69 1.56 25.86 76.88 0.63 24.42 62.81 19-Apr-07 1.25 35.47 230.31 0.31 41.18 129.69 0.31 36.65 100.31 20-Apr-07 5.63 42.71 285.31 4.38 50.75 120.63 0.63 41.12 108.13 21-Apr-07 14.38 35.77 259.06 12.81 34.11 65 8.44 35.23 67.19 22-Apr-07 1.88 29.21 122.5 0.31 34.01 141.56 0.63 31.6 129.38 23-Apr-07 0.63 16.61 84.06 1.56 20.84 96.88 0.31 21.36 116.25 24-Apr-07 0.31 5.74 30.31 0.31 9.49 42.19 0.31 16.52 212.81 25-Apr-07 0.31 5.81 20 0.31 9.73 32.5 0.31 12.89 163.75 26-Apr-07 0.31 8.7 75 0.94 19.02 128.13 0.31 11.35 45.94 27-Apr-07 0.31 9.01 29.06 0.63 14.55 153.75 0.63 11.07 50.94 28-Apr-07 0.31 5.06 52.81 0.31 8 55.63 0.31 6.07 46.56 29-Apr-07 30-Apr-07 0.31 8.18 83.75 0.31 11.9 52.81 0.31 10.23 45.31

Annual Environmental Management Report July 2006 – June 2007 Muswellbrook Coal Company

Site 1 Site 2 Site 3 Date 24 Hr Min 24hr Average Max Min 24hr Average Max Min Max Average 01-May-07 0.31 4.71 15 0.31 9.39 36.88 0.31 6.1 35.31 02-May-07 0.31 6.19 21.88 0.31 7.87 27.19 0.31 5.86 24.06 03-May-07 3.13 11.01 48.13 2.81 12.43 77.19 3.13 10.99 71.88 04-May-07 7.5 34.29 85 6.88 32.75 66.25 6.88 32.95 69.69 05-May-07 31.25 43.57 77.19 23.75 41.9 73.13 26.88 43.56 102.19 06-May-07 21.56 35.37 71.25 15.63 33.55 66.88 20 34.56 75.31 07-May-07 10.94 29.78 49.38 15 31.71 106.25 17.5 31.13 58.44 08-May-07 6.25 21.44 54.06 4.38 23.44 60 4.38 22.6 84.38 09-May-07 11.88 26.43 65.63 7.19 30.51 127.5 11.88 36.81 105.63 10-May-07 3.44 11.49 25.63 2.5 11.85 25.31 2.81 16.91 106.25 11-May-07 4.38 14.45 22.81 0.94 20.73 96.88 4.69 16.53 28.44 12-May-07 0.63 12.79 27.19 1.88 11.87 21.56 0.31 13.38 31.25 13-May-07 14-May-07 0.31 14.51 36.25 0.63 15.55 57.19 0.94 13.89 47.5 15-May-07 4.38 16.8 45.31 4.06 15.3 56.88 3.13 16.72 67.81 16-May-07 3.13 13.38 42.5 0.94 15.03 50 1.88 13.82 40 17-May-07 0.63 13.98 39.38 0.31 16.21 49.38 1.25 15.26 45 18-May-07 0.31 8.95 35.94 0.31 9.91 34.06 0.31 9.68 37.19 19-May-07 0.31 4.3 11.25 0.63 4.84 15 0.31 4.71 13.13 20-May-07 0.31 5.39 13.44 0.31 6.01 15.31 0.31 5.62 16.25 21-May-07 0.31 6.85 19.69 0.31 7.28 27.5 0.31 7.42 36.56 22-May-07 3.44 17.49 57.19 0.94 19.07 60.63 2.81 17.44 57.19 23-May-07 0.63 7.94 21.88 0.31 7.91 18.13 0.31 8.16 49.06 24-May-07 1.25 10.45 297.5 0.31 8.44 23.75 0.63 7.99 28.13 25-May-07 3.44 14.01 46.88 0.31 13.98 50.31 0.63 13.4 35 26-May-07 1.25 19.79 50.31 2.19 18.64 46.25 3.13 19.07 52.81 27-May-07 3.13 20.29 53.75 1.88 19.92 45.63 0.94 19.23 45.63 28-May-07 0.31 17.26 135.31 0.63 18.54 54.38 0.31 16.85 63.44 29-May-07 0.31 19.59 193.44 2.19 17.78 235.31 0.94 14.3 107.5 30-May-07 0.31 5.48 87.5 0.31 6.81 164.69 0.31 5.92 91.88 31-May-07 0.31 5.99 15.31 0.31 7.24 27.5 0.31 6.49 23.75

Annual Environmental Management Report July 2006 – June 2007 Muswellbrook Coal Company

Site 1 Site 2 Site 3 Date 24 Hr Min 24hr Average Max Min 24hr Average Max Min Max Average 01-Jun-07 3.75 10.34 66.88 0.31 11.23 37.81 0.94 8.76 25.31 02-Jun-07 1.25 14.98 80 0.31 15.61 85.63 0.31 13.81 45.63 03-Jun-07 0.31 16.28 53.13 0.31 18.42 67.81 0.31 14.86 80.63 04-Jun-07 0.31 7.93 20.63 0.31 9.25 32.5 0.31 8.12 20.63 05-Jun-07 5 13.51 26.25 0.63 14.82 40 0.94 16.53 49.06 06-Jun-07 0.94 15.8 77.5 3.75 17.03 30.31 8.13 21.25 84.38 07-Jun-07 0.31 6.85 20 0.31 7.39 22.81 0.31 7.46 30.31 08-Jun-07 0.31 4.14 13.13 0.31 4.28 12.5 0.31 3.48 10.31 09-Jun-07 0.31 6.45 16.88 0.31 6.33 19.38 0.31 6.05 16.88 10-Jun-07 0.31 11.91 39.38 0.31 10.78 25.63 0.31 9.88 26.56 11-Jun-07 0.31 8.19 27.81 0.31 8.44 35.31 0.31 6.75 26.88 12-Jun-07 0.31 7.63 21.25 0.31 7.16 24.06 0.31 5.99 24.69 13-Jun-07 0.31 6.73 27.5 0.31 7.12 26.56 0.31 5.61 20.94 14-Jun-07 0.31 9.21 35 0.31 10.42 26.88 0.31 8.63 23.13 15-Jun-07 0.94 9.46 27.19 0.31 10.34 37.81 0.31 9.36 38.13 16-Jun-07 0.31 5.97 21.56 0.31 6.22 21.88 0.31 4.6 19.06 17-Jun-07 1.25 7.57 16.25 0.31 7.34 20.63 0.31 5.97 15.63 18-Jun-07 0.31 7.45 20.94 0.63 10.63 177.5 0.94 7.54 41.25 19-Jun-07 0.31 4.42 11.88 0.31 4.28 15.63 0.31 3.57 15 20-Jun-07 0.31 4.66 8.75 0.31 4.36 11.25 0 3.24 7.19 21-Jun-07 0 5.99 17.19 0 6.03 20.31 0 5.12 15.47 22-Jun-07 0 15.6 159.06 0 11.35 32.81 0 8.13 31.09 23-Jun-07 0 8.72 22.5 0.63 13.44 33.44 0 12.34 48.91 24-Jun-07 0 6.34 43.28 1.25 12.5 35.63 0 11.27 30.94 25-Jun-07 0 5.24 21.56 0 9.11 20 0.63 10.69 52.34 26-Jun-07 0.31 4.77 16.88 0 5.17 17.5 0 5.43 39.69 27-Jun-07 0.63 6.57 12.81 0 6.04 31.25 0 4.64 22.19 28-Jun-07 0.31 4.77 16.88 0 5.07 13.44 0 4.14 17.19 29-Jun-07 0.63 6.57 12.81 0 6.85 17.19 0 5.77 18.59 30-Jun-07 0 6.44 18.75 0 6.67 21.25 0 5.97 21.25 Annual 17.5 22.5 20.5 Average

Historical Average Site 1 Site 2 Site 3 Min 3.4 3.2 0.0 Max 56.2 73.8 75.6 Average 15.9 19.8 18.3

Annual Environmental Management Report July 2006 – June 2007 Muswellbrook Coal Company

TSP HVAS MONITORING RESULTS – 1 JULY 2006 to JUNE 2007

SITE 1 SITE 2 SITE 3 SITE 1 SITE 2 SITE 3 Sample Date Sample Date TSP (µg/m 3) TSP (µg/m 3) TSP (µg/m 3) TSP (µg/m 3) TSP (µg/m 3) TSP (µg/m 3)

3-Jul-06 29.0 25.5 36.2 5-Jan-07 46.1 201 129 9-Jul-06 15.3 13.1 15.1 11-Jan-07 63.3 114.0 84.9 15-Jul-06 18.9 80.8 32.3 17-Jan-07 77.9 174.0 131.0 21-Jul-06 26.1 38.8 70.7 23-Jan-07 93.1 98.9 93.2 27-Jul-06 22.1 25.4 20.1 29-Jan-07 74.3 78.7 83.3 02-Aug-06 15.8 24.4 20.6 4-Feb-07 75.6 72.8 76.6 08-Aug-06 51.1 54.3 49.6 10-Feb-07 36.4 43.5 43.6 14-Aug-06 27.9 28.7 25.9 16-Feb-07 50.6 88.7 57.7 20-Aug-06 24.1 31.8 29.2 22-Feb-07 74.8 86.1 73.4 26-Aug-06 28.3 30 28.9 28-Feb-07 57.5 144.0 77.6 1-Sep-06 16.5 22.6 19.2 6-Mar-07 22.3 52.0 55.2 7-Sep-06 14.2 13.9 17.8 12-Mar-07 64.8 180.0 74.0 13-Sep-06 31.3 46.4 18-Mar-07 19.5 25.9 36.6 19-Sep-06 22.9 28.5 29.1 24-Mar-07 52.6 62.1 65.5 26-Sep-06 41.8 93.9 78.7 30-Mar-07 28.3 37.0 29.5 1-Oct-06 38.9 62.6 48.0 5-Apr-07 65.1 72.0 49.6 7-Oct-06 45.6 64.3 46.3 11-Apr-07 42.4 79.2 55.2 13-Oct-06 36.5 60.5 40.7 17-Apr-07 61.4 73.1 91.2 19-Oct-06 54.3 60.1 23-Apr-07 66.7 72.2 81.3 25-Oct-06 66.1 43.6 29-Apr-07 17.1 21.7 8.6 31-Oct-06 32.3 44.2 49.8 5-May-07 61.5 54.9 60.1 2-Nov-06 17.4 11-May-07 28.4 54.6 39.5 6-Nov-06 19.1 51.2 31.9 17-May-07 30.8 45.5 33.9 12-Nov-06 28.9 41.4 31.5 23-May-07 12.1 13 12.7 18-Nov-06 33.4 61.7 29-May-07 47.2 44.9 30.5 24-Nov-06 48.2 115.0 4-Jun-07 16.4 17.1 16.3 27-Nov-06 89.6 10-Jun-07 20.1 16.4 19.1 30-Nov-06 26.8 93.2 32.1 16-Jun-07 9.9 8.0 7.0 6-Dec-06 75.2 122.0 97.9 22-Jun-07 39.6 20.5 19.8 Annual Average 38.8 60.6 49.7 12-Dec-06 44.4 81.1 119 28-Jun-07 4.8 3.2 5.6 24-Dec-06 26.4 26.3 24.1 18-Dec-06 63.3 102.0 72.6 30-Dec-06 28.7 32.7 29

Annual Environmental Management Report July 2006 – June 2007 Muswellbrook Coal Company

APPENDIX 3

Water Monitoring Results

Annual Environmental Management Report July 2006 – June 2007 Muswellbrook Coal Company

MONTHLY SURFACE WATER MONITORING RESULTS - JULY 2006 to JUNE 2007

pH EC TSS MCC12 Final No.1 Open No.2 Open MCC12 Final No.1 Open No.2 Open MCC12 Final No.1 Open No.2 Open DATE Dam 1/2 Dam 1/2 Dam 1/2 Settling Pond Cut Void Cut Void Settling Pond Cut Void Cut Void Settling Pond Cut Void Cut Void 12-Jul-06 7 6.7 DRY 7.1 4940 9430 DRY 4890 22 9 DRY 10-Aug-06 7.6 8.3 DRY 7.4 4890 5900 DRY 4850 11 11 DRY 14-Sep-06 7.1 8.1 DRY 7.4 4860 3040 DRY 4760 7 27 DRY 4 13-Oct-06 7.3 8.2 DRY 7.2 5000 5520 DRY 4980 13 24 DRY 9-Nov-06 7.4 8.1 DRY 7.4 5010 5480 DRY 5070 8 44 DRY 12 11-Dec-06 7.5 8.1 DRY 7.4 5290 9550 DRY 5310 15 37 DRY 8 11-Jan-07 7.1 8.0 DRY 7.5 4960 10400 DRY 5170 7 2 DRY 16-Feb-07 7.3 8.1 DRY 7.5 5150 7060 DRY 5280 9 56 DRY 5 15-Mar-07 7.2 8.1 DRY 7.5 6710 10790 DRY 5290 3 4 DRY 5 11-Apr-07 7.1 8.0 DRY 7.6 5110 6440 DRY 5170 7 14 DRY 2 23-May-07 6.9 8.0 DRY 7.3 4850 5910 DRY 4850 3 18 DRY 5 19-Jun-07 6.6 6.5 DRY NO ACCESS 2020 2170 DRY NO ACCESS 9 105 DRY NO ACCESS AVERAGE 7.2 7.9 DRY 7.4 4899 6808 DRY 5056 10 29 DRY 4

Minimum 0.6 1.4 0.3 2879 4638 296 7 27 4 Maximum 0.4 0.5 0.2 1811 3983 254 13 76 8

Annual Environmental Management Report July 2006 – June 2007 Muswellbrook Coal Company

QUARTERLY SURFACE WATER MONITORING RESULTS - JULY 2006 to JUNE 2007

pH DATE MCC7 MCC8 MCC9 MCC23 MCC24 MCC25 MCC26 MCC27 14-Sep-06 7.6 7.2 Dry 8.4 8.6 Dry 8.3 8.4 11-Dec-06 7.1 7.2 Dry 9.1 Dry Dry 9.1 8.1 15-Mar-07 7.0 7.2 Dry 8.8 Dry Dry 8.0 Dry 20-Jun-07 6.9 6.9 6.6 6.7 6.7 6.7 6.5 6.5 ANNUAL 7.2 7.1 6.6 8.3 7.7 6.7 8.0 7.7 AVERAGE Minimum 0.3 0.2 1.6 1.0 1.5 1.2 Maximum 0.4 0.1 0.9 0.9 1.1 0.7

EC DATE MCC7 MCC8 MCC9 MCC23 MCC24 MCC25 MCC26 MCC27 14-Sep-06 5330 4990 Dry 10580 5100 Dry 2270 13540 11-Dec-06 12960 7530 Dry 16900 Dry Dry 2910 30000 15-Mar-07 17150 8080 Dry 35300 Dry Dry 4785 Dry 20-Jun-07 390 440 380 640 600 760 2310 1100 ANNUAL 8958 5260 380 15855 2850 760 3069 14880 AVERAGE Minimum 8568 4820 15215 2250 799 13780 Maximum 8193 2820 19445 2250 1716 15120

TSS DATE MCC7 MCC8 MCC9 MCC23 MCC24 MCC25 MCC26 MCC27 14-Sep-06 3 8 Dry 8 31 Dry 13 34 11-Dec-06 NA 5 Dry 3 Dry Dry 2 646 15-Mar-07 26 7 Dry 43 Dry Dry 6 Dry 20-Jun-07 14 10 12 8 32 30 17 9 ANNUAL 14 8 12 16 32 30 10 230 AVERAGE Minimum 11 3 13 1 8 221 Maximum 12 3 28 1 8 416

Annual Environmental Management Report July 2006 – June 2007 Muswellbrook Coal Company

MONTHLY GROUND WATER MONITORING RESULTS – JULY 2006 to JUNE 2007

RDH 472 RDH 522 DDH 584 DDH 604 St. Heliers Colliery Workings No. 2 Underground Workings No. 2 Underground Workings - Lewis Seam No. 2 Highwall, Geotechnical Hole RL Water Level RL Water Level RL Water Level RL Water Level DATE EC (uS/cm) pH EC (uS/cm) pH EC (uS/cm) pH EC (uS/cm) pH (Metres, AHD) (Metres, AHD) (Metres, AHD) (Metres, AHD)

12-Jul-06 149 5060 6.7piezometer blocked (obstruction) 151 4990 6.5 148 10-Aug-06 148 5040 6.7 150 4980 6.7 147 14-Sep-06 147 4850 6.8 150 5090 7.0 13-Oct-06 147 5500 6.6 149 5130 7.2 146

09-Nov-06 145 5370 7.4 147 too low too low 144 11-Dec-06 141 5420 6.8 142 8300 6.6 11-Jan-07 dry dry dry 131 8200 6.7 16-Feb-07 *127 156 5210 6.9 123 9300 6.8 15-Mar-07 125 6740 6.6 144 too low too low 127 no longer required (bottom of bore) 11-Apr-07 5110 7.2 125 23-May-07 91 116 19-Jun-07 no access - too wet no access - too wet 28-Jun-07 123 * samples taken from this date forward were conducted at pump location (not piezometer ) - water quality samples only taken when pump was in operation

Annual Environmental Management Report July 2006 – June 2007 Muswellbrook Coal Company

ANNUAL COMPREHENSIVE WATER QUALITY ANALYSIS

Bore RDH 522 - Sampled March 31, 2006 Alkalinity - Bicarbonate mg 465 Lead - filterable mg/L <0.00005 CaCO3/L Alkalinity - Carbonate mg <2 Magnesium - total mg/L 266 CaCO3/L Arsenic - filterable mg/L <0.001 Manganese - filterable mg/L 1.0 Barium - filterable mg/L 0.048 Mercury - filterable mg/L <0.0001 Boron - filterable mg/L 0.45 Nickel - filterable mg/L 0.027 Cadmium - filterable mg/L <0.00005 Nitrates mg N/L <0.1 Calcium - total mg/L 510 Nitrogen Ammonia mg N/L 6.1 Chloride mg/L 496 Oil & Grease mg/L <2 Chromium - filterable mg/L <0.001 PAH_ mg/L <0.001 Copper - filterable mg/L 0.0058 Potassium - total mg/L 27 Depth to Ground - metres 63.34 Selenium - filterable mg/L <0.001 Depth to Standpipe - metres 64.56 Sodium - total mg/L 360 Electrical Conductivity uS/cm - 6400 Sulfates mg/L 1950 field Total Dissolved Solids @180 C Fluoride - total mg/L 1.58 4170 mg/L Hardness - total (calculation) Total Petroleum Hydrocarbons 2370 <2 mg/L mg/L Total Suspended Solids @105C Iron- filterable mg/L 0.25 37 mg/L Iron mg/L 25 Zinc - filterable mg/L 0.078

Annual Environmental Management Report July 2006 – June 2007 Muswellbrook Coal Company

HISTORICAL GROUND WATER MONITORING RESULTS

Bore RDH522 (No.2 Underground Mine) Water Level Date pH EC Reduced Level (RL) 30-Jan-02 154.7 N/A N/A 07-Feb-02 154.9 N/A N/A 19-Feb-02 154.4 N/A N/A 03-Apr-02 152.8 N/A N/A 12-Apr-02 151.9 N/A N/A 19-Apr-02 152.5 N/A N/A 26-Apr-02 153.0 N/A N/A 06-May-02 153.5 N/A N/A 10-May-02 153.7 N/A N/A 18-May-02 153.9 N/A N/A 27-May-02 153.6 N/A N/A 31-May-02 153.5 N/A N/A 07-Jun-02 153.4 N/A N/A 14-Jun-02 153.4 N/A N/A 26-Jun-02 153.2 N/A N/A 01-Jul-02 N/A 7.2 6000 08-Jul-02 152.8 N/A N/A 16-Jul-02 152.7 N/A N/A 23-Jul-02 152.5 N/A N/A 20-Dec-02 148.7 N/A N/A 16-Feb-04 137.5 N/A N/A 26-Jul-04 133.7 N/A N/A 13-Aug-04 133.3 N/A N/A 21-Jan-05 127.7 N/A N/A 08-Jul-05 124.1 N/A N/A 28-Jul-05 130.6 N/A N/A 31-Aug-05 136.1 N/A N/A 29-Sep-05 142.7 N/A N/A 10-Oct-05 145.3 N/A N/A 09-Nov-05 149.6 N/A N/A 09-Dec-05 149.4 6.9 3270 10-Jan-06 139.7 6.7 3250 17-Feb-06 148.9 6.9 3300 31-Mar-06 152.4 6.9 6400 11-Apr-06 NR NR NR 10-May-06 NR NR NR 08-Jun-06 NR NR NR 22-Jun-06 NR NR NR 16-Feb-07 126.9 depth only - no water sample 26-Feb-07 125.3 depth only - no water sample 12-Mar-07 124.6 6.6 6740 11-Apr-07 7.2 5110 24-May-07 90.8 depth only - no water sample 31-May-07 94.6 depth only - no water sample 28-Jun-07 122.8 depth only - no water sample Notes: N/A = Not applicable for this reporting period NR = No result due to obstruction in bore casing and pump failure resulting in no sample.

Annual Environmental Management Report July 2006 – June 2007 Muswellbrook Coal Company

Bore RDH472 (St. Heliers Colliery Workings) Water Level Date pH EC Reduced Level (RL) 8-Jul-05 146.98 N/A N/A 28-Jul-05 146.74 N/A N/A 31-Aug-05 146.74 N/A N/A 29-Sep-05 NR NR NR 10-Oct-05 NR NR NR 9-Nov-05 NR NR NR 09-Dec-05 NR NR NR 10-Jan-06 NR NR NR 17-Feb-06 147.52 6.8 5290 22-Mar-06 149.15 6.8 5920 30-Mar-06 149.05 6.8 5290 11-Apr-06 147.8 7.2 4990 10-May-06 150.03 6.9 5040 08-Jun-06 150.14 6.7 5200 22-Jun-06 149.66 6.7 5200 12-Jul-06 148.78 6.7 5060 10-Aug-06 147.88 6.7 5040 14-Sep-06 147.03 6.8 4850 13-Oct-06 146.74 6.6 5550 09-Nov-06 144.96 7.4 5037 11-Dec-06 140.93 6.8 5420 11-Jan-07 DRY 16-Feb-07 DRY 15-Mar-07 DRY 11-Apr-07 DRY 23-May-07 DRY 19-Jun-07 DRY Notes: N/A = Not applicable for this reporting period

Annual Environmental Management Report July 2006 – June 2007 Muswellbrook Coal Company

APPENDIX 4

Blast Monitoring Data

Annual Environmental Management Report July 2006 – June 2007 Muswellbrook Coal Company

No.1 OPEN CUT BLAST MONITORING RESULTS – JULY 2005 to JUNE 2006

McCullys Gap (Watts) Queen Street (#1 O/C) Queen St #2 (99 Queen St) School Ground Ground Ground Ground Overpressure Overpressure Overpressure Overpressure Date Time Type Vibration Vibration Vibration Vibration dB(L) dB(L) dB(L) dB(L) mm/s mm/s mm/s mm/s 3-Jul-06 12:37:35 O 0.107 89.8 0.15 94.9 0.096 94.1 0.09 87.6 6-Jul-06 14:23:32 I 0.171 101 0.1 101.4 0.15 89.5 0.09 100.9 12-Jul-06 16:08:11 I 0.051 94.4 0.1 96.8 0.1 98.5 0.051 93.1 13-Jul-06 12:34:15 I 0.038 101 0.12 104.4 0.09 99.1 0.077 99.2 18-Jul-06 14:18:49 I 0.152 93.8 0.27 101.9 0.18 98.5 0.032 97.9 20-Jul-06 16:10:11 I 0.088 95.6 0.13 103.3 0.13 104.2 0.058 97.6 21-Jul-06 12:31:28 I 0.063 98.9 0.19 99.1 0.13 99.6 0.071 98.1 26-Jul-06 14:59:02 I 0.063 95.5 0.14 101.9 0.13 97.1 0.058 98.9 27-Jul-06 12:42:27 I 0.07 98 0.22 106.9 0.09 93.6 0.071 102.5 28-Jul-06 15:05:59 I 0.202 95.5 0.19 99.7 0.14 98.5 0.302 100.1 31-Jul-06 12:39:59 I 0.063 105.7 0.13 107.7 0.1 107.6 0.071 95.6 01-Aug-06 13:34:55 I 0.06 98.2 0.17 99.1 0.12 97.1 0.06 94.1 02-Aug-06 12:40:42 I 0.08 93.1 0.23 100.9 0.14 97.8 0.10 96.7 03-Aug-06 12:35:38 I 0.08 96.7 0.14 102.8 0.09 99.6 0.05 98.7 04-Aug-06 12:37:32 I 0.04 95.2 0.09 102.8 0.09 100.2 0.05 99.4 04-Aug-06 13:56:37 I 0.19 106.2 0.32 107.7 0.15 105.9 0.10 103.0 07-Aug-06 15:12:10 I 0.22 108.4 0.17 109.7 0.13 109.2 0.14 105.2 09-Aug-06 12:41:23 I 0.06 100.2 0.12 103.3 0.10 103.2 0.06 96.0 10-Aug-06 12:24:58 I 0.07 106.7 0.12 111.3 0.12 105.1 0.11 99.2 11-Aug-06 15:02:56 I 0.11 92.6 0.17 101.4 0.13 97.1 0.06 98.4 14-Aug-06 13:09:57 I 0.18 104.0 0.23 105.4 0.22 103.8 0.10 100.9 18-Aug-06 12:30:38 I 0.18 99.6 0.21 102.8 0.23 99.6 0.10 97.3 22-Aug-06 16:09:03 I 0.06 108.4 0.13 111.6 0.09 111.5 0.08 106.7 25-Aug-06 12:17:32 I 0.06 107.3 0.13 99.1 0.15 102.0 0.10 100.3 29-Aug-06 12:35:23 I 0.07 111.3 0.35 111.5 0.13 110.8 0.09 106.3 30-Aug-06 12:38:07 I 0.11 106.0 0.26 113.3 0.19 112.2 0.09 104.0 5-Sep-06 14:02:58 I 0.04 97.5 0.14 103.3 0.09 102.0 0.07 97.4 12-Sep-06 15:12:41 I 0.07 104.1 0.06 106.4 0.08 94.6 0.10 99.7 13-Sep-06 15:57:40 I 0.04 103.6 0.06 100.3 0.12 106.4 0.14 98.5 14-Sep-06 15:36:34 I 0.04 100.6 0.10 102.4 0.09 100.2 0.07 109.7

Annual Environmental Management Report July 2006 – June 2007 Muswellbrook Coal Company

McCullys Gap (Watts) Queen Street (#1 O/C) Queen St #2 (99 Queen St) School Ground Ground Ground Ground Overpressure Overpressure Overpressure Overpressure Date Time Type Vibration Vibration Vibration Vibration dB(L) dB(L) dB(L) dB(L) mm/s mm/s mm/s mm/s 14-Sep-06 15:42:01 I 0.09 103.7 0.19 106.9 0.10 102.8 0.07 101.1 15-Sep-06 14:23:41 I 0.11 102.7 0.10 106.9 0.15 106.2 0.21 101.4 19-Sep-06 12:33:28 O 0.06 103.9 0.27 112.9 0.10 106.4 0.08 110.5 26-Sep-06 12:34:31 I 0.08 107.4 0.19 109.5 0.12 112.6 0.07 103.6 28-Sep-06 12:40:06 O 0.05 107.1 0.10 99.1 0.18 113.9 0.07 99.2 29-Sep-06 13:26:38 I 0.30 110.7 0.50 113.1 0.29 112.2 0.15 107.2 03-Oct-06 16:12:13 I 0.06 113.1 0.15 102.8 0.10 103.5 0.06 99.2 04-Oct-06 16:01:16 I 0.11 104.6 0.17 105.8 0.12 105.1 0.08 101.1 06-Oct-06 13:34:58 I 0.10 107.0 0.18 110.1 0.19 111.1 0.09 106.4 06-Oct-06 13:38:30 I 0.20 105.0 0.19 109.1 0.19 108.8 0.09 104.1 06-Oct-06 15:55:09 O 0.06 98.4 0.17 104.4 0.12 102.8 0.08 96.3 10-Oct-06 14:56:21 I 0.08 110.5 0.17 104.8 0.14 108.4 0.06 99.9 11-Oct-06 12:27:34 O 0.08 102.5 0.31 99.7 0.13 97.1 0.12 97.8 13-Oct-06 15:27:40 O 0.04 98.4 0.13 99.7 0.08 92.4 0.06 98.1 17-Oct-06 16:04:34 I 0.03 101.3 0.06 102.4 0.08 104.2 0.03 96.3 17-Oct-06 16:09:23 O 0.06 103.4 0.29 103.7 0.15 99.6 0.09 96.3 17-Oct-06 16:18:08 I 0.16 105.8 0.19 109.7 0.19 110.0 0.10 103.9 18-Oct-06 16:44:57 O 0.08 98.7 0.31 105.1 0.18 102.4 0.08 98.5 19-Oct-06 13:31:29 I 0.06 97.2 0.15 102.4 0.10 93.6 0.05 96.9 24-Oct-06 15:57:10 O 0.03 85.0 0.05 88.9 0.08 89.5 0.03 95.7 30-Oct-06 12:12:35 I 0.12 99.9 0.21 105.4 0.14 106.4 0.09 99.9 31-Oct-06 15:09:48 O 0.04 101.0 0.12 99.1 0.04 97.1 31-Oct-06 15:18:26 I 0.03 93.6 0.08 98.4 0.09 97.1 0.13 98.3 2-Nov-06 12:44:10 I 0.20 97.1 0.23 99.7 0.17 98.5 0.11 97.4 6-Nov-06 14:31:41 O 0.11 111.0 0.22 111.5 0.14 99.6 0.08 97.8 9-Nov-06 15:05:45 O 0.05 103.1 0.22 110.6 0.12 110.2 0.06 104.1 9-Nov-06 15:11:02 O 0.06 108.2 0.21 108.2 0.17 106.9 0.07 102.0 13-Nov-06 12:37:09 I 0.30 104.2 0.18 106.6 0.19 110.4 0.09 99.9 14-Nov-06 17:12:01 O 0.11 111.0 0.24 112.1 0.20 110.2 0.10 99.7 15-Nov-06 17:13:46 O 0.05 109.9 0.13 116.5 0.12 105.7 0.07 99.6 15-Nov-06 17:17:11 I 0.07 116.0 0.26 110.4 0.13 109.7 0.08 96.9 20-Nov-06 15:50:03 O 0.08 104.9 0.12 106.9 0.10 102.0 0.05 101.4 21-Nov-06 13:03:50 O 0.04 98.3 0.17 103.3 0.10 97.1 0.10 97.8

Annual Environmental Management Report July 2006 – June 2007 Muswellbrook Coal Company

McCullys Gap (Watts) Queen Street (#1 O/C) Queen St #2 (99 Queen St) School Ground Ground Ground Ground Overpressure Overpressure Overpressure Overpressure Date Time Type Vibration Vibration Vibration Vibration dB(L) dB(L) dB(L) dB(L) mm/s mm/s mm/s mm/s 22-Nov-06 12:45:26 I 0.15 106.6 0.19 105.4 0.17 102.0 0.04 103.8 23-Nov-06 12:55:40 I 0.09 96.0 0.13 101.4 0.10 100.7 0.10 96.9 23-Nov-06 12:59:35 O 0.10 92.6 0.09 98.4 0.09 94.6 24-Nov-06 12:50:37 I 0.10 100.5 0.15 100.9 0.12 104.5 0.07 94.8 24-Nov-06 12:54:39 O 0.03 99.8 0.06 100.3 0.08 108.8 0.06 97.4 24-Nov-06 13:03:05 I 0.10 113.0 0.09 93.7 0.10 104.5 0.07 97.6 27-Nov-06 12:51:06 I 0.05 112.7 0.29 104.4 0.14 109.5 0.08 100.5 28-Nov-06 12:46:32 O 0.171 96.4 0.19 107.9 0.19 102.8 0.08 99.7 28-Nov-06 12:53:11 O 0.038 98.1 0.14 108.9 0.10 105.4 0.06 96.9 29-Nov-06 12:47:51 O 0.03 110.6 0.05 100.9 0.08 95.5 0.04 98.3 29-Nov-06 12:52:45 I 0.08 114.2 0.15 98.4 0.13 100.7 0.06 96.9 30-Nov-06 15:09:01 I 0.22 96.7 0.13 102.8 0.14 96.4 0.10 95.7 30-Nov-06 15:21:09 O 0.17 109.5 0.18 109.7 0.15 110.0 0.17 103.3 1-Dec-06 13:29:22 O 0.20 111.0 0.14 104.1 0.17 100.7 0.07 97.6 5-Dec-06 16:08:57 O 0.04 100.3 0.13 106.4 0.09 109.5 0.04 102.2 8-Dec-06 12:53:51 O 0.03 106.8 0.05 100.3 0.08 99.1 0.07 97.4 11-Dec-06 15:09:13 O 0.23 107.0 0.27 104.8 0.20 104.2 0.10 99.4 13-Dec-06 13:21:27 O 0.12 104.7 0.14 110.1 0.12 109.0 0.10 104.4 14-Dec-06 16:08:32 O 0.05 109.8 0.17 102.8 0.09 99.1 0.07 98.7 15-Dec-06 12:54:55 I 0.12 101.3 0.23 98.4 0.17 104.5 0.10 96.0 19-Dec-06 13:20:49 I 0.13 91.0 0.35 98.4 0.19 95.5 0.10 95.7 19-Dec-06 13:32:50 O 0.18 103.3 0.21 103.7 0.15 102.8 0.08 99.0 21-Dec-06 15:06:45 O 0.20 106.0 0.24 108.2 0.23 107.6 0.10 104.2 2-Jan-07 12:41:32 I 0.32 110.4 0.77 112.2 0.40 115.0 3-Jan-07 15:15:45 O 0.11 99.8 0.18 104.1 0.14 102.4 4-Jan-07 12:42:22 I 0.04 99.4 0.12 98.4 0.10 97.1 8-Jan-07 12:57:46 I 0.25 111.1 0.36 106.6 0.24 105.1

Annual Environmental Management Report July 2006 – June 2007 Muswellbrook Coal Company

McCullys Gap (Watts) Queen Street (#1 O/C) Queen St #2 (99 Queen St) School Ground Ground Ground Ground Overpressure Overpressure Overpressure Overpressure Date Time Type Vibration Vibration Vibration Vibration dB(L) dB(L) dB(L) dB(L) mm/s mm/s mm/s mm/s 9-Jan-07 15:18:20 O 0.12 107.1 0.31 107.4 0.14 110.5 0.09 101.1 11-Jan-07 15:43:25 O 0.12 100.4 0.24 106.9 0.14 106.2 0.11 101.1 16-Jan-07 12:45:02 O 0.09 101.0 0.23 99.7 0.13 97.8 17-Jan-07 12:53:34 O 0.08 95.1 0.10 97.8 18-Jan-07 12:48:43 O 0.10 97.5 0.14 104.1 0.10 103.5 0.07 99.7 19-Jan-07 12:50:00 O 0.12 100.3 0.26 106.4 0.14 104.2 0.09 101.9 22-Jan-07 12:53:09 O 0.07 89.6 0.15 93.7 0.10 93.6 0.07 95.1 23-Jan-07 09:51:47 O 0.06 92.0 0.06 96.8 0.08 97.1 0.04 97.4 23-Jan-07 12:51:30 O 0.08 99.7 0.10 103.7 0.09 101.6 0.07 102.0 24-Jan-07 15:08:14 O 0.10 105.2 0.13 109.5 0.13 107.4 0.09 101.3 29-Jan-07 15:10:45 O 0.13 104.2 0.21 105.8 0.12 105.9 0.09 100.6 30-Jan-07 12:52:58 O 0.06 91.4 0.10 99.1 0.09 94.6 0.05 96.0 31-Jan-07 15:40:57 O 0.07 96.9 0.18 99.1 0.13 98.5 0.07 96.9 1-Feb-07 09:39:25 I 0.032 99.5 0.05 99.1 0.08 97.1 2-Feb-07 12:50:05 I 0.12 95.3 0.13 105.1 0.12 95.5 0.049 92.1 6-Feb-07 12:48:54 O 0.354 108.5 0.42 105.1 0.08 101.6 0.27 99.6 7-Feb-07 12:46:18 O 0.063 108.2 0.12 100.3 0.1 103.5 0.08 95.4 8-Feb-07 12:41:14 O 0.038 101.9 0.09 101.4 0.08 104.2 0.037 94.4 8-Feb-07 12:57:29 O 0.076 107.3 0.09 101.4 0.09 97.8 0.061 92.9 9-Feb-07 10:07:20 I 0.038 100 0.1 106.6 0.09 104.5 0.116 100.6 13-Feb-07 16:36:49 O 0.417 107.3 0.37 109.7 0.23 109.7 14-Feb-07 12:56:04 O/I 0.133 99.8 0.54 102.4 0.31 102.4 0.153 95.4 16-Feb-07 12:53:24 O 0.038 103.4 0.18 108.4 0.12 107.6 0.055 102.7 19-Feb-07 14:14:13 O 0.253 116.6 0.26 121.3 0.2 120.2 0.202 116.6 20-Feb-07 12:43:52 I 0.025 101.4 0.05 96.8 0.08 92.4 0.061 94.4 21-Feb-07 12:10:06 O 0.076 99.1 0.09 105.8 0.09 103.8 0.043 100.1 22-Feb-07 13:35:35 I 0.025 94.2 0.06 100.3 0.08 98.5 0.043 96 23-Feb-07 12:48:37 O 0.082 100.5 0.13 102.4 0.1 99.1 0.08 93.3 27-Feb-07 15:15:34 O 0.095 94.8 0.09 90.8 0.1 92.4 0.135 98.5 27-Feb-07 15:30:46 I 0.152 94.7 0.45 100.3 0.23 97.1 0.153 101.1

Annual Environmental Management Report July 2006 – June 2007 Muswellbrook Coal Company

McCullys Gap (Watts) Queen Street (#1 O/C) Queen St #2 (99 Queen St) School Ground Ground Ground Ground Overpressure Overpressure Overpressure Overpressure Date Time Type Vibration Vibration Vibration Vibration dB(L) dB(L) dB(L) dB(L) mm/s mm/s mm/s mm/s 28-Feb-07 15:40:54 O 0.253 96.9 0.17 99.1 0.14 97.8 0.086 101.9 1-Mar-07 12:49:36 O 0.076 102.5 0.13 101.4 0.12 102.8 0.08 96.3 2-Mar-07 13:33:46 I 0.057 99.9 0.14 106.9 0.12 105.1 0.055 95.1 5-Mar-07 14:56:19 O 0.101 107.4 0.19 107.4 0.14 103.8 0.08 101.4 7-Mar-07 12:50:05 O 0.057 100.4 0.1 102.8 0.09 102 0.049 96.9 8-Mar-07 12:48:29 O 0.063 99.5 0.12 101.9 0.1 102.4 0.067 96 9-Mar-07 14:09:44 O 0.07 104.7 0.1 107.9 0.09 107.1 0.049 102.3 12-Mar-07 12:50:16 O 0.057 107.9 0.1 111.3 0.09 109 0.092 103 13-Mar-07 12:50:13 O 0.057 107.4 0.1 109.9 0.08 113 0.043 97.6 14-Mar-07 14:18:23 O 0.27 106.6 0.18 104.5 0.11 101.6 16-Mar-07 12:49:21 O 0.05 106 0.1 101.8 0.09 101.8 0.049 96.6 19-Mar-07 12:50:43 O 0.057 96.9 0.06 101.8 0.09 101.4 0.055 94.1 21-Mar-07 12:50:09 O 0.069 95.5 0.08 104.4 0.08 87.4 0.049 96.9 23-Mar-07 10:16:51 O 0.107 96.7 0.23 102.2 0.15 103 0.129 96 27-Mar-07 12:57:45 O 0.025 90.2 0.05 92.6 0.08 99.4 0.037 80.5 27-Mar-07 15:18:42 O 0.069 103.9 0.1 109.7 0.08 108.4 0.092 103.3 28-Mar-07 16:56:13 O 0.05 106.6 0.08 97.5 0.08 94.4 0.055 90.6 29-Mar-07 12:56:11 O 0.069 109.9 0.06 109.2 0.09 102.2 0.055 101.8 30-Mar-07 12:51:48 O 0.055 95.4 0.1 105.7 0.09 104.9 0.055 95.4 2-Apr-07 12:49:41 O 0.063 101.3 0.1 100.6 0.1 98.9 0.055 96.3 3-Apr-07 13:15:09 O 0.082 100.8 0.13 104.7 0.09 104.3 0.104 97.8 4-Apr-07 12:48:11 O 0.076 105 0.14 102.2 0.1 100.9 0.061 90 5-Apr-07 12:59:58 O 0.05 97.1 0.12 101.8 0.09 99.4 0.067 94.1 10-Apr-07 12:46:04 O 0.069 96.1 0.12 104.9 0.09 106 0.049 98.1 11-Apr-07 12:47:41 O 0.063 109.5 0.12 102.2 0.09 100.9 0.055 98.7 12-Apr-07 12:45:56 O 0.082 102.1 0.14 105.2 0.1 103 13-Apr-07 12:48:24 O 0.107 105.6 0.14 107.2 0.13 112.7 0.074 104.7 16-Apr-07 12:47:08 O 0.069 102.5 0.1 106 0.08 103.7 0.049 98.3 18-Apr-07 13:17:34 O 0.164 107.4 0.18 109.8 0.17 109.7 0.11 99.4 19-Apr-07 12:55:11 O 0.107 93.5 0.09 98.6 0.11 98.9 0.067 92.1

Annual Environmental Management Report July 2006 – June 2007 Muswellbrook Coal Company

McCullys Gap (Watts) Queen Street (#1 O/C) Queen St #2 (99 Queen St) School Ground Ground Ground Ground Overpressure Overpressure Overpressure Overpressure Date Time Type Vibration Vibration Vibration Vibration dB(L) dB(L) dB(L) dB(L) mm/s mm/s mm/s mm/s 20-Apr-07 13:08:56 O 0.076 97.8 0.08 105.2 0.09 104 0.055 98.5 23-Apr-07 13:04:48 O 0.057 106.8 0.14 103.5 0.1 104.6 0.061 97.4 24-Apr-07 14:00:18 O 0.113 103.3 0.21 110.5 0.14 109.5 0.092 102.6 30-Apr-07 15:15:37 O 0.151 96.7 0.13 100.6 0.11 106 0.074 91.1 1-May-07 13:16:53 O 0.107 99.5 0.17 103.5 0.13 104.3 0.074 98.3 2-May-07 14:24:17 O 0.044 93.3 0.08 101.8 0.08 99.4 0.043 93.3 4-May-07 12:59:51 O 0.195 105.2 0.05 96.8 0.22 107.2 0.098 97.8 7-May-07 12:54:31 O 0.107 108.2 0.18 112.9 0.13 112 0.092 109.9 8-May-07 13:19:20 O 0.12 89.3 0.08 92.6 0.1 92.3 0.074 90 8-May-07 13:27:50 O 0.05 102 0.13 107.4 0.09 106 0.055 104.2 14-May-07 15:40:21 O 0.12 109.2 0.19 112.7 0.13 112.5 0.11 103.3 15-May-07 13:00:51 O 0.095 98.4 0.14 105.4 0.11 105.2 0.08 98.3 16-May-07 11:22:17 O 0.139 88.3 0.17 99.7 0.11 98.3 0.074 95.1 17-May-07 13:20:29 O 0.057 100.8 0.1 106.6 0.09 108 0.055 98.7 21-May-07 12:48:57 O 0.076 96.2 0.1 99.2 0.08 97.6 0.049 93.3 22-May-07 13:19:41 O 0.158 92 0.12 98.6 0.13 90.9 0.067 88.1 22-May-07 13:31:47 O 0.05 103.9 0.13 108.4 0.1 103.3 0.049 99.6 23-May-07 13:18:50 O 0.063 99.2 0.1 102.5 0.1 100.5 0.067 96.6 24-May-07 13:29:13 O 0.12 98.3 0.17 105.4 0.13 104.3 0.074 101.3 25-May-07 13:11:54 O 0.076 104.3 0.17 104.1 0.1 103.7 0.08 100.3 28-May-07 14:59:49 I 0.038 89.9 0.08 96.1 0.08 87.4 0.037 90.6 28-May-07 15:18:02 O 0.082 103.2 0.1 105.9 0.1 105.5 0.147 100.8 29-May-07 12:27:53 O 0.076 109.9 0.12 112.3 0.1 100.5 0.074 98.3 31-May-07 12:37:09 O 0.063 104 0.1 107.4 0.1 107 0.049 99.4 1-Jun-07 12:10:04 O 0.044 89.6 0.05 92.6 0.08 90.9 0.025 83.4 1-Jun-07 12:26:25 O 0.069 105.9 0.15 102.9 0.11 104 0.074 100.6 4-Jun-07 12:17:00 O 0.05 87.5 0.05 91.5 0.08 87.4 0.037 85.6 4-Jun-07 13:16:26 I 0.05 100.1 0.06 104.1 0.09 101.8 0.355 97.1 5-Jun-07 12:05:24 O 0.057 96.9 0.05 91.5 0.08 96.2 0.037 87.3 5-Jun-07 12:23:46 O 0.107 101.9 0.14 104.7 0.11 105.5 0.067 100.8 6-Jun-07 11:18:05 O 0.044 87.1 0.05 90.1 0.08 90.9 0.031 87.3 6-Jun-07 12:26:23 O 0.057 98.1 0.15 104.1 0.11 104.3 0.061 98.7 6-Jun-07 17:20:40 O 0.038 90.2 0.05 97.5 0.08 89.3 0.037 88.1

Annual Environmental Management Report July 2006 – June 2007 Muswellbrook Coal Company

McCullys Gap (Watts) Queen Street (#1 O/C) Queen St #2 (99 Queen St) School Ground Ground Ground Ground Overpressure Overpressure Overpressure Overpressure Date Time Type Vibration Vibration Vibration Vibration dB(L) dB(L) dB(L) dB(L) mm/s mm/s mm/s mm/s 12-Jun-07 11:47:20 O 0.044 88.6 0.05 96.1 0.08 95.4 0.061 93.7 13-Jun-07 11:39:15 O 0.044 91.5 0.05 94.6 0.08 90.9 0.025 82 13-Jun-07 12:27:26 O 0.107 97.3 0.13 104.9 0.11 102.6 0.086 94.1 14-Jun-07 11:45:17 O 0.044 88.6 0.05 90.1 0.08 89.3 0.116 96.9 14-Jun-07 12:25:01 O 0.044 99.8 0.06 86.6 0.09 104.6 0.061 99.9 15-Jun-07 11:49:56 O 0.044 83.6 0.13 101.8 0.08 87.4 0.037 84.5 15-Jun-07 12:19:53 O 0.088 100.2 0.06 101.4 0.11 102.2 0.067 94.4 19-Jun-07 11:37:15 O 0.038 88.3 0.13 98.6 0.08 90.9 0.092 91.6 19-Jun-07 13:39:27 O 0.076 103.7 0.05 106.8 0.14 97.6 0.08 80.5 20-Jun-07 14:18:55 O 0.044 89.3 0.15 102.2 0.08 104 0.055 82 20-Jun-07 15:10:27 I 0.076 105.2 0.05 101 0.11 96.2 0.061 83.4 21-Jun-07 14:32:29 O 0.038 99.3 0.08 90.1 0.08 102.2 0.025 83.4 22-Jun-07 12:10:38 O 0.038 77.6 0.14 106.2 0.08 89.3 0.037 78.5 22-Jun-07 12:43:55 O 0.088 99.6 0.13 103.5 0.11 104 0.055 84.5 22-Jun-07 15:05:19 I 0.063 99.4 0.05 91.5 0.14 102.2 0.049 83.4 25-Jun-07 12:18:44 O 0.044 74.6 0.14 107.2 0.08 98.9 0.037 84.5 25-Jun-07 12:42:20 O 0.095 104 0.05 108.4 0.11 106.5 0.074 96.6 27-Jun-07 12:05:43 O 0.038 106.9 0.24 113.4 0.08 105.5 0.037 96.6 27-Jun-07 13:09:08 O 0.126 106.3 0.22 114.6 0.15 110.5 0.184 105.7 27-Jun-07 13:22:15 I 0.082 102.6 0.06 96.8 0.11 111.1 0.067 92.9 28-Jun-07 12:02:33 O 0.038 103.7 0.13 105.9 0.08 87.4 0.074 92.9 28-Jun-07 12:44:36 O 0.069 94.1 0.05 105.9 0.09 98.3 0.043 94.1 29-Jun-07 12:59:31 O 0.025 103.2 0.06 105.9 0.08 96.9 0.037 87.3 29-Jun-07 13:32:36 O 0.139 118.3 0.05 103.8 0.08 113.1 0.037 87.3 29-Jun-07 15:19:02 O 0.025 110.2 0.05 108.9 0.08 98.3 0.08 100.8

Average 0.09 100.89 0.16 103.39 0.12 102.00 0.08 97.68 Total Number Blasts 207 207 207 207 207 207 198 198 % Data Lost : Average = 1.6 0.5 0.5 0.5 0.5 0.5 0.5 4.8 4.8 Results >5mm/sec 0 0 0 0 Results >10mm/s 0 0 0 0 Results >115dB 3 2 1 1 Results >120dB 0 1 1 0 % of Total over 115 dB: AVG 0.85% 1.45% 0.97% 0.48% 0.51%

No Result =

Annual Environmental Management Report July 2006 – June 2007 Muswellbrook Coal Company

APPENDIX 5

Complaints Summary

Annual Environmental Management Report July 2006 – June 2007 Muswellbrook Coal Company

SUMMARY OF COMPLAINTS JULY 2006 to JUNE 2007

Complaint Date of Complaint Region Method of Contact Action Taken Number Incident Category

Environmental Hotline - call back next Action taken as per Spontaneous Combustion 1 6/07/2006 N. Muswellbrook ODOUR working day, EO responded Management Plan

Woodland Ridge Direct call to MCC Office - call back next Action taken as per Spontaneous Combustion 2 7/07/2006 ODOUR Estates working day, EO responded Management Plan

Environmental Hotline - call patch, OCE 105 stopped at 10:15pm after noise report indicated 3 10/07/2006 N. Muswellbrook NOISE responded levels to be increasing.

Environmental Hotline - call patch, EO Action taken as per Spontaneous Combustion 4 13/07/2006 McCully's Gap ODOUR responded Management Plan

Action taken as per Spontaneous Combustion 5 20/07/2006 McCully's Gap ODOUR Voicemail message Management Plan

Advised blast was within criteria limits (.13 mm/s, 103.3 6 20/07/2006 N. Muswellbrook BLAST Environmental Hotline - OCE responded dB)

Action taken as per Spontaneous Combustion 7 27/07/2006 N. Muswellbrook ODOUR On-line service Management Plan Blast moved forward due to weather conditions and 8 4/08/2006 N. Muswellbrook BLAST Call made directly to main office. increasing clouds and possibility of rain - not practicalle to change blast information line. Other - Aberdeen Environmental Hotline - after hours call, Action taken as per Spontaneous Combustion 9 6/08/2006 ODOUR St call back next day Management Plan

Action taken as per Spontaneous Combustion 10 6/08/2006 N. Muswellbrook ODOUR Environmental Hotline - OCE responded Management Plan

In the process of sequentially shutting No 1 O/C down 11 8/08/2006 N. Muswellbrook NOISE Environmental Hotline: OCE responded when call came in

Action taken as per Spontaneous Combustion 12 8/08/2006 N. Muswellbrook ODOUR Environmental Hotline - OCE responded Management Plan

Action taken as per Spontaneous Combustion 13 9/08/2006 N. Muswellbrook ODOUR Environmental Hotline - OCE responded Management Plan

Action taken as per Spontaneous Combustion 14 9/08/2006 N. Muswellbrook ODOUR Environmental Hotline - OCE responded Management Plan

Action taken as per Spontaneous Combustion 15 10/08/2006 ODOUR E-mail from Environmental Hotline Management Plan At time of complaint on the 107 digger was working and 16 10/08/2006 N. Muswellbrook NOISE Environmental Hotline - OCE responded he was trying to walk off the bench to a safe location to shut down.

17 14/08/2006 N. Muswellbrook NOISE Direct call to Mark Howes operation shutdown until after crib

Environmental Hotline - Mine Mgr Action taken as per Spontaneous Combustion 18 20/08/2006 N. Muswellbrook ODOUR responded Management Plan

Environmental Hotline - Enviromental 19 22/08/2006 DUST Actions taken as per Dust Management Plan Consultant responded

Woodland Ridge Environmental Hotline: e-mail message Action taken as per Spontaneous Combustion 20 24/08/2006 ODOUR Estates transfer Management Plan

At time of call 106 was walking off bench to a safer 21 24/08/2006 N. Muswellbrook NOISE Environmental Hotline - OCE responded location then parked up.

Woodland Ridge Action taken as per Spontaneous Combustion 22 27/08/2006 ODOUR Environmental Hotline - e-mail transfer Estates Management Plan spoke to MCC employee but did not Action taken as per Spontaneous Combustion 23 30/08/2006 N. Muswellbrook ODOUR want to give name or other contact Management Plan details Action taken as per Spontaneous Combustion 24 30/08/2006 N. Muswellbrook ODOUR Environmental Hotline: e-mail transfer Management Plan

Action taken as per Spontaneous Combustion 25 2/09/2006 N. Muswellbrook ODOUR Environmental Hotline - EO responded Management Plan

Annual Environmental Management Report July 2006 – June 2007 Muswellbrook Coal Company

Complaint Date of Complaint Region Method of Contact Action Taken Number Incident Category

Environmental Hotline - Mine Manager Action taken as per Spontaneous Combustion 26 2/09/2006 N. Muswellbrook ODOUR responded Management Plan

Action taken as per Spontaneous Combustion 27 2/09/2006 N. Muswellbrook ODOUR Environmental Hotline - e-mail transfer Management Plan Environmental Hotline - e-mail from On- Action taken as per Spontaneous Combustion 28 2/09/2006 N. Muswellbrook ODOUR line Services, Environmental Manager Management Plan responded Action taken as per Spontaneous Combustion 29 2/09/2006 N. Muswellbrook ODOUR Environmental Hotline - EO responded Management Plan

Other - Aberdeen Environmental Hotline - e-mail transfer Action taken as per Spontaneous Combustion 30 8/09/2006 ODOUR St (call back next working day) Management Plan

Action taken as per Spontaneous Combustion 31 14/09/2006 N. Muswellbrook ODOUR Environmental Hotline - OCE responded Management Plan Environmental Hotline - e-mail transfer Action taken as per Spontaneous Combustion 32 14/09/2006 N. Muswellbrook ODOUR for call back the next working day. Brett Management Plan Peterkin responded.

33 16/09/2006 DUST Environmental Hotline - OCE responded Actions taken as per Dust Management Plan

Environmental Hotline - caller declined Action taken as per Spontaneous Combustion 34 17/09/2006 ODOUR any call transfers or contact details Management Plan

Environmental Hotline - call back next Action taken as per Spontaneous Combustion 35 18/09/2006 N. Muswellbrook ODOUR working day. Brett Peterkin responded. Management Plan

Blast results all below the Consent Conditons criteria, 36 19/09/2006 N. Muswellbrook BLAST Direct Call to MCC Office Vibration 0 .17-0.27 and Overpressure 112.6-112.9 dBL.

Action taken as per Spontaneous Combustion 37 20/09/2006 N. Muswellbrook ODOUR Environmental Hotline - OCE responded Management Plan

Environmental Hotline - Requested Call Action taken as per Spontaneous Combustion 38 21/09/2006 N. Muswellbrook ODOUR Back Next Working Day Management Plan

Envrionmental Hotline: no contact Action taken as per Spontaneous Combustion 39 1/10/2006 ODOUR details supplied Management Plan

Action taken as per Spontaneous Combustion 40 1/10/2006 N. Muswellbrook ODOUR Environmental Hotline - EO responded Management Plan

Environmental Hotline: call back next Action taken as per Spontaneous Combustion 41 1/10/2006 N. Muswellbrook ODOUR working day Management Plan

Direct Call to Enviornmental Officer Action taken as per Spontaneous Combustion 42 7/10/2006 N. Muswellbrook ODOUR (Colin Davies) Management Plan

Action taken as per Spontaneous Combustion 43 11/10/2006 N. Muswellbrook ODOUR Environmental Hotline - OCE responded Management Plan

Action taken as per Spontaneous Combustion 44 11/10/2006 N. Muswellbrook ODOUR Environmental Hotline - OCE responded Management Plan Queen Street readings: Vibration @ .31 mm/s and Environmental Hotline: OCE responded 45 11/10/2006 N. Muswellbrook BLAST Overpressure at 99.7 dBA - both below consent condition and contacted EO limits Action taken as per Spontaneous Combustion 46 11/10/2006 N. Muswellbrook ODOUR Environmental Hotline - OCE responded Management Plan

Noise managed with BarnOwl monitoring system. 47 11/10/2006 N. Muswellbrook NOISE Environmental Hotline: OCE responded Equipment was shut down.

Noise managed with BarnOwl monitoring system. 48 11/10/2006 N. Muswellbrook NOISE Environmental Hotline - OCE responded Equipment was shut down.

Noise managed with BarnOwl monitoring system. 49 11/10/2006 N. Muswellbrook NOISE Environmental Hotline: OCE responded Equipment was shut down. Called EO directly and left message Action taken as per Spontaneous Combustion 50 24/10/2006 N. Muswellbrook ODOUR then called Environmental Hotline and Management Plan OCE reponded.

Annual Environmental Management Report July 2006 – June 2007 Muswellbrook Coal Company

Complaint Date of Complaint Region Method of Contact Action Taken Number Incident Category

Action taken as per Spontaneous Combustion 51 25/10/2006 N. Muswellbrook ODOUR Environmental Hotline - OCE responded Management Plan

Woodland Ridge Environmental Hotline - call back next Action taken as per Spontaneous Combustion 52 25/10/2006 ODOUR Estates working day Management Plan

Noise managed with BarnOwl monitoring system - all 53 9/11/2006 N. Muswellbrook NOISE Environmental Hotline - patch to OCE machinery stopped in No. 1

Noise managed with BarnOwl monitoring system - all 54 10/11/2006 N. Muswellbrook NOISE Environmental Hotline - patched to OCE machinery stopped in No. 1.

Action taken as per Spontaneous Combustion 55 20/11/2006 N. Muswellbrook ODOUR Environmental Hotline - EO responded Management Plan

Noise managed with BarnOwl monitoring system - 56 30/11/2006 N. Muswellbrook NOISE Environmental Hotline - OCE responded machinery relocated

Noise managed with BarnOwl monitoring system - all 57 4/12/2006 N. Muswellbrook NOISE Environmental Hotline - OCE reponded machinery stopped in No. 1

Action taken as per Spontaneous Combustion 58 4/12/2006 N. Muswellbrook ODOUR Environmental Hotline - OCE responded Management Plan

Woodland Ridge Direct call to MCC Office - Visual survey taken - OCE moved digger to a more 59 11/12/2006 DUST Estates Environmental Assistant responded suitable location Blast results were below Consent Conditons criteria, Direct Call to MCC Office - 60 2/01/2007 N. Muswellbrook BLAST vibration - 0.77 mm/s and ground overpressure - 112.2 Environmental Officer responded dBL Direct call to MCC office - 61 2/01/2007 N. Muswellbrook BLAST Blast results below Consent Conditions criteria Environmental Officer responded

Environmental Hotline - Environmental 62 2/01/2007 N. Muswellbrook BLAST Blast results below the Consent Conditions criteria Officer responded

Noise managed with BarnOwl monitoring system - noise 63 3/01/2007 N. Muswellbrook NOISE Environmental Hotline - OCE responded levels acceptable

Direct Call to MCC Office - OCE Action taken as per Spontaneous Combustion 64 6/01/2007 N. Muswellbrook ODOUR responded Management Plan

65 19/01/2007 N. Muswellbrook NOISE Direct E-mail to Enviro Recepients Noise managed with BarnOwl monitoring system

Environmental Hotline - E-mail transfer Action taken as per Spontaneous Combustion 66 26/01/2007 N. Muswellbrook ODOUR (call back next working day) - EO Management Plan responded Action taken as per Spontaneous Combustion 67 29/01/2007 N. Muswellbrook ODOUR Environmental Hotline - OCE responded Management Plan

Central Environmental Hotline - Call back next Action taken as per Spontaneous Combustion 68 31/01/2007 ODOUR Muswellbrook working day, EO responded Management Plan Noise managed with BarnOwl monitoring system - 69 7/02/2007 N. Muswellbrook NOISE Environmental Hotline - OCE responded machinery relocating at time of complaint, mine noise levels below action limts/criteria Action taken as per Dust Management Plan - increased 70 23/02/2007 N. Muswellbrook DUST Environmental Hotline - OCE responded used of water cart and relocated digger in different direction Environmental Hotline - EA responded, Central Action taken as per Spontaneous Combustion 71 26/02/2007 ODOUR call back next day requested by Muswellbrook Managemnt Plan complainant

72 27/02/2007 DUST Direct call to OCE Actions taken as per Dust management Plan

Action taken as per Dust Management Plan - stopped 73 27/02/2007 N. Muswellbrook DUST Environmental Hotline - OCE responded loading trucks at 107, put two water trucks on the area to settle the dust Noise managed with BarnOwl monitoring system - 74 27/02/2007 N. Muswellbrook NOISE Environmental Hotline - OCE responded machinery stopped or relocated in No. 1

Direct call to MCC Office (left message) - 75 28/02/2007 S. Muswellbrook DUST Actions taken as per Dust Management Plan EA responded

Annual Environmental Management Report July 2006 – June 2007 Muswellbrook Coal Company

Complaint Date of Complaint Region Method of Contact Action Taken Number Incident Category

Direct Call to MCC Office - EA 76 1/03/2007 S. Muswellbrook DUST Action taken as per Dust Management Plan responded

Central Environmental Hotline Report - Actions taken as per Dust and Spontaneous Combustion 77 4/03/2007 DUST Muswellbrook Environmental Officer responded Management Plan Blast results were all below the Consent Conditions Direct call to MCC Office - EO 78 5/03/2007 N. Muswellbrook BLAST criteria, vibration @ 0.19 m/s and overpressure @ 107.4 responded dB Noise managed with BarnOwl monitoring system - 79 6/03/2007 N. Muswellbrook NOISE Environmental Hotline - OCE responded replaced dozer (steel track) on top dump with the Tiger (rubber tyre) Action taken as per Spontaneous Combustion 80 9/03/2007 N. Muswellbrook ODOUR Environmental Hotline - OCE responded Management Plan

81 14/03/2007 N. Muswellbrook NOISE Environmental Hotline - EO responded Noise managed with BarnOwl monitoring system.

82 14/03/2007 N. Muswellbrook NOISE Environmental Hotline - EO Repsonded Noise managed with BarnOwl monitoring system

Environmental Hotline - EA responded Action taken as per Spontaneous Combustion 83 15/03/2007 N. Muswellbrook ODOUR next working day Management Plan

Environmental Hotline - Environmental 84 17/03/2007 N. Muswellbrook NOISE No mine operations on Saturday night Officer responded next day

85 23/03/2007 N. Muswellbrook NOISE Environmental Hotline - EO responded Noise managed with BarnOwl monitoring system

Envrionmental Hotline - call back next Action taken as per Spontaneous Combustion 86 23/03/2007 N. Muswellbrook ODOUR working day, EO responded Management Plan

Action taken as per Dust and Spontaneous Combustion 87 29/03/2007 N. Muswellbrook DUST Direct call to OCE Office Management Plan

Environmental Hotline - call back next Action taken as per Spontaneous Combustion 88 2/04/2007 N. Muswellbrook ODOUR working day, EA responded Management Plan

Environmental Hotline - Enviornmental 89 3/04/2007 N. Muswellbrook NOISE Noise managed with BarnOwl monitoring system Manager responded

Direct E-mail to Environmental Officer - 90 3/04/2007 N. Muswellbrook NOISE Noise managed with BarnOwl monitoring system EA responded

Noise managed with BarnOwl monitoring system - shut all 91 9/04/2007 N. Muswellbrook NOISE Environmental Hotline - OCE responded equipment down

Noise managed with BarnOwl monitoring system - shut all 92 10/04/2007 N. Muswellbrook NOISE Environmental Hotline - OCE responded equipment down

Action taken as per Spontaneous Combustion 93 15/04/2007 N. Muswellbrook ODOUR Environmental Hotline - EO responded Management Plan

Environmental Hotline- call back next Action taken as per Spontaneous Combustion 94 15/04/2007 N. Muswellbrook ODOUR working day - EA responded Management Plan Action taken as per Spontaneous Combustion Central 95 9/05/2007 ODOUR Environmental Hotline - EA responded Management Plan - site inspection revealed some very Muswellbrook small flareups with no apparent dust issues occurring Central Environmental Hotline - Environmental Action taken as per Spontaneous Combustion 96 10/05/2007 ODOUR Muswellbrook Officer responded Management Plan

Direct call to Environmental Assistant - Noise managed with BarnOwl monitoring system - 97 5/06/2007 N. Muswellbrook NOISE EA responded operations adjusted accordingly

Noise managed with BarnOwl monitoring system - 98 6/06/2007 N. Muswellbrook NOISE Environmental Hotline - OCE responded operations managed accordingly

Environmental Hotline (call back next Action taken as per Spontaneous Combustion 99 15/06/2007 N. Muswellbrook ODOUR day) - EA responded Management Plan

Noise managed with BarnOwl monitoring system - 100 15/06/2007 N. Muswellbrook NOISE Environmental Hotline - OCE responded equipment shut down accordingly

Environmental Hotline - call back next Action taken as per Spontaneous Combustion 101 16/06/2007 N. Muswellbrook ODOUR working day EO responded Management Plan

Annual Environmental Management Report July 2006 – June 2007