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“LUKOIL Uzbekistan Operating Company” LLC “TEXNET”

“LUKOIL Uzbekistan Operating Company” LLC “TEXNET”

Operating Company” LLC

“TEXNET” Scientific Production Enterprise

APPROVED “LUKOIL Uzbekistan Operating Company” LLC

______Gurzhiy S.L.

“_20_” _September_ 2013

DRAFT ENVIRONMENTAL IMPACT STATEMENT SUPPLEMENTS TO ENVIRONMENTAL IMPACT ASSESSMENT FOR CONSTRUCTION OF WELLS AT KHAUZAK-SHADY BLOCK OF DENGIZKUL FIELD

Director “TEXNET” SPE

______A. Kh. Nurjanov

“___” ______2013

Tashkent 2013 2

TERMS AND DEFINITIONS

DRILLING WASTES - the wastes generated during , they include drilling cuttings, drilling sewage waters, waste drilling mud. DRILLING SEWAGE WATERS - the waters produced during washing of drilling site, drilling equipment and tool; contain drilling mud and chemicals residues. DRILLING CUTTINGS - a mix of the rocks particles, cutting agent, formed during drilling and waste drilling mud. RECIRCULATED WATER (circulating) - the water used in technological process or for cooling of products and the equipment and re-supplied for the same purposes (aggregative norms) following treating and cooling in water-cooling towers or other facilities. WATER INTAKE – water intake from a reservoir, waterway or from groundwater source. WATER-SUPPLY WELL – well for subsurface water intake, equipped, as a rule, by pipes and filter. WATER-BEARING HORIZON – the water-bearing beds family, close by conditions of formation and geological structure and hydrological interconnected. SALINE WATERS - the waters containing mineral substances in significant amount. Distinguish low - (0.5-5g/dm3), medium - (5-30g/dm3) and high-salt (more than 30 g/dm3 of soluble salts) waters. POTABLE WATERS – the waters in which bacteriological, organoleptic indexes and indexes of toxic chemical substances are within the range of potable water supply norms. WASTE WATERS - the waters which are drained following use in human household and industrial activity. INDUSTRIAL WASTE WATERS – the waters following use in production process. HOUSEHOLD WASTE WATERS - the waters produced from dumps of settlements. ATMOSPHERIC AIR - 1) the natural gases mix which have developed during Earth evolution; 2) air out of living spaces or industrial premises. WASTES TEMPORARY DISPOSAL – wastes storage in the plant’s territory in places specially equipped for these purposes or in other allowed and equipped areas prior to their use in the subsequent process cycle or sending for processing, recycling to other plant or permanent wastes disposal facility. EMERGENCY EMISSION – ingress of pollutants in natural environment as a result of breakdown in technological process or accident POLLUTION – introduction in environment or occurrence in it of new physical, chemical, information and biological agents, normally not specific for it or excess of natural average and long-term level during the period in question. ATMOSPHERIC POLLUTION – introduction in air or formation in it of physical agents, chemical substances or the organisms adversely effecting on life environment or causing loss to material assets. LOCAL POLLUTION – the pollution of small region (normally, in the vicinity of industrial plant, settlement, etc.); distinguish also spot pollution from the unit tube or fugitive source. HARMFUL SUBSTANCES DIACHARGE SOURCE - the technological unit, installation, device, apparatus, etc., discharged pollutants substances while in operation. HARMFUL SUBSTANCES EMISSION SOURCE - the device (a pipe, aeration skylight, airshaft, etc.), by means of which there is pollutants emission into the atmosphere.

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 3

ENVIRONMENTAL (HUMAN) MONITORING – monitoring of natural human environmental conditions and prevention of created critical situations harmful or hazardous to human health and other live organisms. BOWELS - the part of earth crust located below the soil layer, and in its absence - below the earth surface or the bottom of the water bodies reaching to the depths accessible for exploration and development. WASTES - the residues of raw materials, materials, half-finished products, and other products or products which were formed during manufacture or consumption, as well as goods (products) which lost consumer properties. PRODUCED WATERS – the water from water-bearing bed, one or several lithologically homogeneous layers containing gravitational water and characterized by close hydraulic interrelation. In this PFS the waste waters containing in reservoir conditions of gas storage in vaporous state and passing into liquid phase during gas production concern to produced waters. FERTILE SOIL LAYER – top humus part of soil body possessing favorable chemical, physical and biological properties for plants growth. NATURAL RESOURCES – the natural objects and phenomenon used for direct and indirect consumption for the purpose of creation of material benefits, maintenance of human living conditions and products quality improvement. LANDS RESTORATION – the complex of works directed to restoration of productivity and national-economic value of the disturbed lands, as well as to improvement of environmental conditions according to society interests. At the operating plants attributable to disturbed lands the lands restoration shall be an integral part of technological processes.

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 4

USED ABBREVIATIONS

MMS  Mud Mixing System DWW  Drilling Waste Waters BKR  Bukhara-Khiva Region DC  Drilling Cuttings DB  Derrick Building GWL  Geophysical GOA  Gas-oil Area FL  Fuels and Lubricants ICE  Internal Combustion Engine CMC  Carboxymethyl Cellulose OBA  Oil Bearing Area PS  Production String WDM  Waste Drilling Mud EIA  Environmental Impact Assessment LLC  Limited Liability Company SE  Surrounding Environment DEIS  Draft Environmental Impact Statement BOP  Blow-out Preventer MPC  Maximum Permissible Concentration, mg/m3 NC  Natural Complex BS  Blowout Safety RD  Regulation Document SM  Safety Measures HHW  Household Waste HC 

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 5

TABLE OF CONTENTS TERMS AND DEFINITIONS ...... 2 USED ABBREVIATIONS...... 4 LIST OF TEXT TABLES ...... 6 TABLE OF TEXT FIGURES ...... 7 INTRODUCTION ...... 8 1 EXISTING ENVIRONMENT ...... 9 1.1 GEOGRAPHICAL LOCATION AND CLIMATIC CONDITIONS ...... 9 1.2 SURFACE AND SUBSURFACE WATERS ...... 13 1.3 SOILS AND GROUNDS ...... 18 1.4 BOWELS ...... 20 1.5 FLORA AND FAUNA ...... 21 1.6 EXISTING SOURCES OF ANTHROPOGENIC IMPACT ...... 28 1.7 OVERVIEW OF KHAUZAK AND SHADY BLOCK...... 30 1.8 PERSONNEL HEALTHSTATUS AND SOCIO-ECONOMIC ASPECTS ...... 31 2 PLANNED ACTIVITY AND ITS ENVIRONMENTAL IMPACT ...... 32 3 ENVIRONMENTAL AND SOCIO-ECONOMIC CONSEQUENCES ...... 48 3.1 EXPECTED EMISSIONS ...... 48 3.2 EXPECTED WATER RESOURCES WITHDRAWAL AND WASTE WATERS DISPOSAL ..79 3.3 EXPECTED WASTE ...... 83 3.4 NOISE AND VIBRATION ...... 92 4 ANALYSIS OF ALTERNATIVES OF PLANNED ACTIVITY AND TECHNOLOGY CONCEPT ...... 95 5 ORGANIZATIONAL, TECHNICAL AND PROCESS SOLUTIONS, AND MEASURES EXCLUDING NEGATIVE ENVIRONMENTAL CONSEQUENCES DURING WELL CONSTRUCTION PERIOD ...... 96 6 EMERGENCY SITUATIONS ...... 102 7 NATURAL ENVIRONMENT MONITORING IN DRILLING ...... 110 8 FORECAST OF ENVIRONMENT CHANGES ...... 115 CONCLUSION ...... 119 LIST OF LITERATURE ...... 120

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 6

LIST OF TEXT TABLES

TABLE 1.1 – MONTHLY AVERAGE WIND SPEED ...... 11 TABLE 1.2 – KARAKUL DELTA SOIL-WATER EXTRACT ANALYSIS RESULTS, ARID SOIL WEIGHT RATIO (%)...... 18 TABLE 1.3 – RESULTS OF ANALYSIS OF WATER EXTRACT FROM SALINE SOILS, ARID SOIL WEIGHT RATIO (%)...... 19 TABLE 1.4 – AVERAGE RESULTS OF SOILS AND GROUNDS MONITORING AT THE KHAUZAK GPD FACILITIES IN THE FIRST HALF OF 2013 ...... 20 TABLE 1.5 – LIST OF BIRDS OF DENGIZKUL LAKE IDENTIFIED IN 2012 ...... 23 TABLE 1.6 – ACTUAL EMISSIONS FROM KHAUZAK GPD STATIONARY SOURCES ...... 28 TABLE 1.7 – AVERAGE RESULTS OF ATMOSPHERE MONITORING AT KHAUZAK GPD FACILITIES IN THE FIRST HALF OF 2013 ...... 29 TABLE 3.1 – ATMOSPHERIC AIR IMPACT SOURCE CHARACTERISTICS ...... 54 TABLE 3.2 – LIST OF POLLUTANTS DURING ADDITIONAL WELL CONSTRUCTION ...... 56 TABLE 3.3 – GROSS EMISSIONS INTO THE ATMOSPHERE DURING WELL CONSTRUCTION ...... 56 TABLE 3.4 – PROCESS WATER FLOW RATE FOR VERTICAL WELLS ...... 80 TABLE 3.5 – PROCESS WATER FLOW RATE FOR DIRECTIONAL WELLS ...... 80 TABLE 3.6 – WATER FLOW RATE FOR DRINKING NEEDS ...... 80 TABLE 3.7 – TOTAL WATER REQUIREMENT FOR THE DRILLING PERIOD ...... 81 TABLE 3.8 – TOTAL WATER REQUIREMENT FOR THE PERIOD OF EIGHT WELLS DRILLING ...... 81 TABLE 3.9 – WATER QUALITY FOR RECYCLING WATER SUPPLY ...... 82 TABLE 3.10 – WATER REMOVAL FOR THE PERIOD OF ONE WELL DRILLING ...... 83 TABLE 3.11 – WATER REMOVAL FOR THE PERIOD OF EIGHT WELLS DRILLING ...... 83 TABLE 3.12 – DRILLING WASTE GENERATION RATE DESIGN DATA ...... 85 TABLE 3.13 – DATA FOR DRILLING WASTE GENERATION NORM CALCULATION ...... 88 TABLE 3.14 – CHARACTERISTIC AND ESTIMATED AMOUNT OF WASTES TO BE GENERATED DURING CONSTRUCTION OF ONE WELL ...... 90 TABLE 3.15 – CHARACTERISTIC AND ESTIMATED AMOUNT OF WASTES TO BE GENERATED DURING CONSTRUCTION OF EIGHT WELLS ...... 92 TABLE 3.16 – SOME SOUND LEVELS ...... 92 TABLE 3.17 - DRILL RIG NOISE LEVEL DATA ...... 94 TABLE 3.18 – DRILL RIG VIBRATION LEVEL DATA ...... 94 TABLE 5.1 – ENVIRONMENTAL PROTECTION MEASURES...... 97 TABLE 5.2 – LANDS TECHNICAL RESTORATION EQUIPMENT ...... 99 TABLE 5.3 – LANDS TECHNICAL RESTORATION WORKS SCOPE AND TYPES ...... 99

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 7

TABLE OF TEXT FIGURES

Figure 1.1 – Situation Diagram of Shady Block Designed Well Location ...... 10 Figure 1.2 – Location Diagram of Wells 1053 NSh and 1054 NSh at Khauzak-Shady Block of Dengizkul field ...... 36 Figure 1.3 – Location Diagram of Well 1057X at Khauzak-Shady Block of Dengizkul field..... 37 Figure 1.4 – Location Diagram of Well 1057X at Khauzak-Shady Block of Dengizkul field..... 38 Figure 1.5 – Location Diagram of Well 1058X at Khauzak-Shady Block of Dengizkul field..... 39 Figure 1.6 – Location Diagram of Wells 1058 and 1081 at Khauzak-Shady Block of Dengizkul field ...... 40 Figure 3.1 – Nitrogen Dioxide Maximum Concentrations in Atmospheric Air ...... 59 Figure 3.2 – Carbon Oxide Maximum Concentrations in Atmospheric Air ...... 60 Figure 3.3 – Sulfur Dioxide Maximum Concentrations in Atmospheric Air ...... 61 Figure 3.4 – Hydrocarbons Maximum Concentrations in Atmospheric Air ...... 62 Figure 3.5 – Soot Maximum Concentrations in Atmospheric Air ...... 63 Figure 3.6 – Formaldehyde Maximum Concentrations in Atmospheric Air ...... 64 Figure 3.7 – Nitrogen Dioxide Maximum Concentrations in Atmospheric Air ...... 66 Figure 3.8 – Carbon Oxide Maximum Concentrations in Atmospheric Air ...... 67 Figure 3.9 – Sulfur Dioxide Atmospheric Air Maximum Concentrations ...... 68 Figure 3.10 – Hydrocarbons Maximum Concentrations in Atmospheric Air ...... 69 Figure 3.11 – Soot Maximum Concentrations in Atmospheric Air ...... 70 Figure 3.12 – Formaldehyde Maximum Concentrations in Atmospheric Air ...... 71 Figure 3.13 – Nitrogen Dioxide Maximum Concentrations in Atmospheric Air ...... 73 Figure 3.14 – Carbon Oxide Maximum Concentrations in Atmospheric Air ...... 74 Figure 3.15 – Sulfur Dioxide Maximum Concentrations in Atmospheric Air ...... 75 Figure 3.16 – Hydrocarbons Maximum Concentrations in Atmospheric Air ...... 76 Figure 3.17 – Soot Maximum Concentrations in Atmospheric Air ...... 77 Figure 3.18 – Formaldehyde Maximum Concentrations in Atmospheric Air ...... 78 Figure 7.1 - Location Diagram of Monitoring Stations at Khauzak-Shady Block in 2013 ...... 112

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 8

INTRODUCTION

In accordance with the development project of Khauzak-Shady Block of Dengizkul field “LUKOIL Uzbekistan Operating Company” LLC provides for construction of additional eight back-up wells in the northern part of Shady Block (2 wells), in the western part of Shady Block (2 wells), and on the Khauzak site (4 wells). Technologically the wells are production of vertical and directional type with the design depth of 2600m and 3070m, respectively. Wells are located in order to field development efficiency improvement. Administratively all wells are located in Alat District of Bukhara Region. Additional wells pad selection is made based on engineering and environmental surveys data. Well construction on the Khauzak site is planned within the existing cluster sites in the water protection zone of Dengizkul Lake. Well pads in the western part of Shady Block are at considerable distance from lake, in the vicinity of cluster site. Drilling of wells in the northern part of Shady Block will be performed in the vicinity of existing wells. Designed wells location in existing utilities zone is ecologically and economically reasonable. In the design of these wells all technical solutions (well construction period, used technique and equipment, well design, design depth and bed, drilling mud composition, drilling cuttings disposal, as well as environmental protection measures package) are made similarly to already-existing wells at Khauzak-Shady Block, drilled according to construction working project documentation. Procedure of well construction impact assessment at Khauzak-Shady Block was accompanied repeatedly. In 2005 there have been developed: x Draft Environmental Impact Statement (DEIS) for drilling of production wells at Khauzak- Shady Block of Dengizkul field (directional wells) with the positive findings of SEER No. 18/226z dated 29.08.2005; x Draft EIS for drilling of production wells at Khauzak-Shady Block of Dengizkul Field (horizontal wells) with the positive findings of SEER No. 18/243z dated 09.09.2005; x Draft EIS for drilling of production wells at Khauzak-Shady Block of Dengizkul field (vertical wells) with the positive finding of SEER NO. 18/227z dated 29.08.2005. Based on the available technical and ecological documentation the technical assignment of the Customer prescribes Addendum to “Dengizkul field Khauzak-Shady Block Well Construction Environmental Impact Assessment”. Taking into account provided engineering and environmental surveys data and Dengizkul Lake Enhanced Biodiversity Monitoring Plan this paper gives environmental assessment prior to start of operations with specification of rare and protected flora and fauna species. In addition we have considered technical solutions, provided environmental analysis and proposed environmental protection measures package. We have made potential emergencies analysis taking into account their occurrence risk factor. In execution of this paper we were guided by “On Approval of the Regulations on State Environmental Expertise in the Republic of Uzbekistan” approved by Resolution of the Cabinet of Ministers of the Republic of Uzbekistan dated 31.12.2001 No. 491 which regulates contents and volume of EIA Procedure documents. We used legislative, normative and technical documents with regard to nature conservation and facilities design, input data and reports provided by the Customer, which are listed in the bibliography.

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 9

1 EXISTING ENVIRONMENT

1.1 GEOGRAPHICAL LOCATION AND CLIMATIC CONDITIONS

Administratively Khauzak and Shady Blocks are located in a desert zone of Alat District of Bukhara Region of the Republic of Uzbekistan. The adjacent human settlement – Alat country town is located 60km to the north-west. North of facilities at the distance of 8-10km there is Dengizkul village and Mubarek town 60km to the north-west. Urtabulak gas-condensate field is in 20km to the south-east. No outside organizations, transportation and railway services in sites location zone. No residential areas nearly considered region, as well as intensive business activities of other industries prompting mention the fact of minor disturbance of ground surface (Figure 1.1). Bukhara Region irrigated zone entirely covers desert zone, its central and southern subzone. The climate of this territory is characterized by sharp continentality, small amount of precipitation, high temperatures in the summer and low ones in the winter. All of this, as well as low relative air humidity and frequent winds increase of moisture evaporating capacity of soil stratum and contribute to soil salinization processes. Winter low temperatures cause to topsoil freezing that deteriorates its hydro-physical properties and complicates treatment and washing. Average annual air temperature at Khauzak-Shady Block fluctuates within the 16.1- 16.4°C, average monthly temperature of the hottest month – July makes 29.0-29.4°C, during daylight the maximum air temperature reaches 43.4-45.0°ɋ, and minimum temperature during winter cold snaps (December) goes below 15.2-15.3°C at monthly average of 4.8-5.5°C. Average daily temperature: maximum temperature falls on the end of July and the beginning of August, minimum temperature falls on January and December. Soil average annual temperature fluctuates within the 19.0-19.5°C in which case the average annual maximum temperature makes 37.6-37.8°C, and minimum temperature makes 7.5-8.2°C. Soil level temperature during the summer is very high and absolute maxima reach 70- 71°C at that time. At the same time during the winter season it goes below -18-20°C in which case the annual range of soil temperature makes 45.2-49.2°C. Average annual precipitations fallout in Bukhara and Karakul oases makes 208.6mm and 162.0 mm, respectively, 114.9 and 76.8mm of which fallout at night, and during the day – 93.7 and 85.2mm, respectively. Maximum precipitations fallout within 24 hours by meteorological stations “Bukhara” and “Karakul” makes 23.1 and 18.8mm, respectively or 66.6 and 39.4% of average monthly rainfall. Maximum precipitations fall on the spring season (42.5-52.6%), 30.7-57.1% in the winter months, 1.4-16.1% in the autumn, and there are actually no rains in the summer (0.5-3.1%). Winter-spring to summer-autumn precipitations ratio makes approximately 8.8:1. Last spring frosts average long-term period falls on the second ten-days of March (sometimes on the third), and the first autumn frosts – at the beginning of October. The snow cover on the average has 4- 5cm depth, normally it is thin and weak and often disappears, but in the hard winters it may reach certain thickness whereupon it is lead to soil freezing up to 50-60cm. A major contribution to soil cover formation and its salinization makes relative air humidity determining water evaporation rate from soil level. Relative humidity pattern depends on local conditions, it actively affected by irrigation and collector-drainage networks, multiple small lakes, bogs, water bodies, irrigation fields, ground water levels and etc.

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 10

Figure 1.1 – Situation Diagram of Shady Block Designed Well Location

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 11

Average annual relative air humidity fluctuates over a wide range of 52-55% at the meteorological station “Karakul”, and up to 59-61% at the meteorological station “Bukhara”. The winter month are characterized by maximum rates of relative humidity which remain at the level of 74-85%, and by minimum rates in the summer – 33-45%. Average relative air humidity at 01.00 pm in the summer makes 22-28%. Average annual number of days with relative air humidity no more than 30% makes 12.8-17.0%, and in case of less than 80% makes 2.2-3.4%. Small precipitations amount, high air temperatures, high solar radiation, and high relative air humidity causes extreme evaporation in the territory of oases. Annual evaporation makes 1750-2040mm. More than 80% of soil discharge falls on warm half-year. Moisture deficit makes 1580-1770mm. During the summer season evaporating moisture content exceeds atmospheric precipitation approximately 40-45 times. First of all, that goes to high soil salinization. Large solar radiation intensity of desert zone and related to it high air temperature, especially in the summer, lead to flash evaporation of a falling out moisture. In desert the most part of a solar energy during the summer is expended for heating of surface soils with the subsequent their heat emission into the lower air layers (turbulent heat exchange) that causes sharp temperature rise of these layers. In oases the part of receivable heat is expended for evaporation due to which the temperature is significantly below here. The territory of Khauzak-Shady Block is exposed both to low and intensive wind loading rate. Average annual wind speed makes by meteorological stations “Bukhara” and “Karakul” – 3.8 and 2.9m/s respectively, with prevalence of north and north-east, in many cases north-west winds. Maximum of strong winds (16-20m/s) falls on March-May. Number of days with strong wind which speed makes 15m/s is 8-12 days, and number of days with dusty storms is 18-24 days. Maximum number of days with strong winds (> 15m/s) falls on winter-spring season. Average annual maximum wind speed fluctuates from 15.7 to 14.3m/s (Table 1.1).

Table 1.1 – Monthly Average Wind Speed

Year Months Wind Speed by Meteorological Stations, m/s “Bukhara” “Karakul” Average Average Average Average maximum maximum January 3.4 13.0 2.6 13.0 February 3.7 18.5 3.0 14.0 March 4.5 18.5 3.0 16.0 April 4.1 18.0 3.1 15.0 May 3.6 16.0 2.8 15.0 June 4.3 19.5 3.3 16.5 July 4.4 16.5 3.3 16.0 August 4.2 13.0 2.9 11.0 September 4.0 14.0 2.9 12.5 October 3.1 16.5 2.5 13.5 November 3.0 12.5 2.6 11.5 December 3.3 12.0 2.8 13.0 Per annum 3.8 15.7 2.9 14.3

Maximum north winds prevalence intensity is more characteristic to the summer months. During the winter season directivity is much the same, except for south-west winds.

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 12

According to the atmosphere pollution potential (a combination of the meteorological factors conditioning possible atmosphere pollution level from sources in this geographical area) the territory of Khauzak-Shady Block – Kyzylkum Desert – is located in zone of moderate atmosphere pollution potential. Within the framework of the environment audit conducted in the end of 2004 – at the beginning of 2005 there have been air sampling. At number of points there was observed high maximum one-time dustiness which may be accounted for that the Kyzylkum Desert in which territory Khauzak and Shady Block is located relates to natural sources of atmosphere dustiness. 3-4-fold increase in MPC of atmospheric air dustiness is observed in the southern and, in particular, in the south-west part of considered territory. Maximum dust concentration values are fixed at level of 2.778mg/m3 (5.6 MPC), and minimum – 0.429mg/m3 (0.9 MPC). There was detected in all samples collected at Khauzak-Shady Block, however its concentrations not exceed approximately safe impact level (ASIL). ɋ2ɋ6 in samples was not detected. Oxygen content in all samples to be analyzed is slightly below against dust-free air. Carbon in samples was not detected. There is noted high concentration of: - nitrogen dioxide – 1.29 MPC to 7.94 MPC; - nitrogen oxide – 1.12 MPC to 2.35 MPC; - ammonia – 1.07 MPC to 40.835 MPC; - xylene – 4.22 MPC to 5.46 MPC; - toluene – 2.76 MPC to 4.17 MPC. As a result of the collected samples analysis high concentration of (up to 0.11mg/m3) and phenol (up to 1.092 mg/m3) are detected. In other investigated components (carbon oxide, sulfur dioxide, benzene) MPC excess was not detected. In 2012 State Specialized Inspection of Analytical Control conducted departmental monitoring of environment condition during Oil and Gas Operations at Khauzak-Shady block of Dengizkul field. Condition of air was assessed based on maximum permissible concentrations (MPC) of pollutants in the air of populated areas, set by the Ministry of Health for the territory of the Republic of Uzbekistan as standard sanitary and hygienic norms of air quality (SanPiN RUz No0293-11). As well as in 2011 content of hydrogen sulfide and, at some stations, sulfur dioxide exceeds maximum permissible concentrations at Block atmosphere. In 2011 content of hydrogen sulfide at the background station varied from 0.6 to 2.2 MPC; in 2012– 1.05-3.6 MPC, In 2011 in I stage of monitoring excess of hydrogen sulfide was recorded at all local stations except of multiple-well platforms Nos 9, 12 and pig receiver. Maximum excess of 4.4 MPC was observed at Drilling Waste Landfill. In 2012 in I stage of monitoring excess of hydrogen sulfide was recorded at all local stations except for Drilling Waste Landfill. Maximum concentration was recorded at well pad No1 – 10.5 MPC, minimum – at the point closest to Field Base on the border with sanitary protection zone of Gas Primary Treatment Facility – 2.1 MPC. Detected excess of hydrogen sulfide and sulfur dioxide in air is connected with natural and anthropogenic changes, taking place in the territory of the whole region. No considerable impact of oil and gas operations on air condition is detected.

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 13

1.2 SURFACE AND SUBSURFACE WATERS

No permanent hydrographic network at Khauzak-Shady Block. Within their limits well- developed drainage network and discharge headers are noted only. Largest of them is the South Dengizkul discharge header. South Dengizkul header flow rates vary within 0.31 to 1.4m3/s, respectively. Collector and drainage waters salinization fluctuates from 10.9 to 13.7g/l. Dengizkul Lake is located in Alat District of Bukhara Region and has spring-fed origin. East part of Bukhara-Khiva zones in relation to the Central Kyzylkum is area of deflections. One of such deflections is also Dengizkul depression (in the past lake). Such depression nowadays represents the huge saline hollow which is the basic point for drainage waters ballasting 267km2 in area and volume of 2723.4x106m3. At present Dengizkul Lake is located in the lower course of the Zarafshan River, in the deepest place of the large tectonic depression, fed by main canal of the Zarafshan River – Taykyr, as well as several channels with waste and drainage waters. Dengizkul Lake is the lake not having outflow. Lake water-surface area and depth vary regularly: in high-water years the lake surface reached 110-120 thousand hectares with water volume of 3-3.5 BCM, inmost depth of 25-30m. Currently its water-surface area is equal to 50-60 thousand hectares. Water is briny; its bed is covered by salt by 4-6cm. According to the RUz Main Department of Water Economy data the expected water level in Dengizkul Lake makes 184.2-184.4m. In 1993-2003 water inflow made just 150-230 MCM against 480-550 MCM in 1985-90. This water inflow quantity does not cover evaporation losses and water volume was reduced by 60%. As a result the lake water-surface area has reduced near twofold and has bared saline shore. Water salinization has increased about 5-8 times, including: chlorides 8 times, sulfates 26 times, nitrate 7 times, biological oxygen demand (BOD) 6 times. Lake water-surface area coverage with the reeds and bushes by 25-30% is deemed to be favorable for breeding and development of fishes. In the spring and autumn the birds migration paths run across the lake and many of them stay for the winter (Chapter 1.3.5). The lake is ornithological reserve, has the international importance and entered in water body list of Ramsar Wetlands Protection Convention. Dengizkul Lake is the most mass wintering of water birds (more than 50 species) in Uzbekistan, more than hundred species of avifauna use the lake as flyway during spring-autumn seasons. By now Dengizkul Lake actually has lost all its natural resources. A favorable environment for increase of fishes and birds is lost. There are some reasons of fish loss on the lake. As a result of lake’s water-surface level lowering reeds have dried up and favorable spawning areas of fishes have decreased. Mineral salt content in the lake reached 20g/l that is a limit of fishes’ breeding capability. During environmental audit at Khauzak and Shady Block the analyses of samples was made for three groups on an individual bases: the water taken from open water bodies, groundwater and potable water. 22 water samples were collected in total of which 10 samples from surface water bodies, 6 samples of groundwater and 6 samples of potable water. Results of analyses have shown the following: Dengizkul Lake water mainly is sulfate-magnesium, however its salinization reaches 20- 25g/l that multiple exceeds the established MPC level. As far as moving from discharge header inflow point into the lake the water salinization increases and at the small distance from discharge header its content becomes above 25g/l, i.e. Dengizkul Lake water actually relates to brackish water category. Biological and chemical oxygen demand indexes however exceed level of permissible MPC values over the whole lake water-surface area, they increases 3 and 15 times, respectively as far as moving from discharge header inflow point into the lake. BOD and

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 14

COD indexes reach maximum values on the south-west lakeshore of Dengizkul (to 70 and 50 MPC respectively). Dissolved oxygen availability in lake makes average 0.5mgO/l that 8 times less than minimum limit established for 2 category fishery facilities. At the same time water-dissolved oxygen level in discharge header meets the value established for 1 category fishery facilities. Phenol content in Dengizkul Lake water increases as far as moving from discharge header inflow point, and excess of its concentration against the established value of MPC is reached approximately in the mid-lake’s water table, and its maximum values are observed on the north-east lakeshore of Dengizkul. Comparison of phenol distribution in Dengizkul Lake water and atmospheric air of the Khauzak-Shady Block indicates regularity of phenol concentration increase on drawing near the north-east lakeshore of Dengizkul (approximately in the vicinity of mining lease of the site, located in the mid-lake). All sampling points of Khauzak-Shady Block found out benzene and oil products content in groundwater, however they concentration do not exceed established MPC level. Generally, there is excess against the established MPC value of suspended particles content, dry residue 25 times (9.25 to 48 MPC), total dissolved solids 27.5 times (9.18 to 47.8 MPC), BOD and COD (4.29 to 41.2 MPC), BOD (3.07 to 29.4 MPC) in groundwater. Ions of ammonium, nitrites, and carbonates are not detected in groundwater. There was detected high xylene content in groundwater – 3.4 to 105 MPC. Ammonium, cadmium, copper, nickel, lead, iron and zinc content is detected in potable water, however their water concentration much less than permissible MPC level. MPC excess is detected for cadmium (3 to 10 MPC), aluminum (2.3 times more than MPC), however its content in artesian wells is not detected actually. Pesticides in potable water also are not detected. There was detected benzene and oil products content, however their concentration in potable water much less than MPC. Artesian wells water used on the site as potable water has salinization 6.6- 7.2 times exceeding MPC. According to sanitary-bacteriological indexes only one artesian chink and well water meets the requirements of the established norms. In accordance with Specifications of State Specialized Inspection of Analytical Control researches at Khauzak-Shady block were continued in 2012 in order to assess impact of oil and gas operations on condition of surface and ground water. In 2012 level of surface water salinity, COD, content of suspended matter, products, xylol and iron at background section and Dengizkul lake remain high. As compared with 2011 salinity is up to 1.9 times less, COD is up to 1.7 times less, petroleum, xylol and iron content is up to 1.5 times less and hydrogen sulfide content in water is up to 1.4 times higher. Based on the results of monitoring of Dengizkul lake surface water condition it is detected that maximum salinity (up to 30.66 g/l), COD (up to 30.2 MPC), maximum content of petroleum products (up to 4.7 MPC), xylol (up to 2.2 MPC), hydrogen sulfide (up to 0.0168 mg/l) and iron (up to 4,8 MPC) are observed in the Dengizkul lake water near multiple-well platform 16, furthest from the mouth of waste water manifold. Maximum concentration of petroleum products, xylol and iron in the Dengizkul lake water is observed in autumn. High concentration of pollutants in the Dengizkul lake is result of accumulation of these ingredients in the lake, where waste and drain water of whole Alat district is discharged. Monitoring of ground water condition was conducted at 12 observation wells, located in 4 rows at the landfill for temporary storage and disposal of drilling waste, including territory of its sanitary protection zone. Changes in salinity of ground water in regime wells of Drilling Waste Landfill are insignificant (10,7-12,42 g/l) and salinity remains at 2011 level. Content of petroleum products and xylol in ground water in the third stage of rows I-II is up to 2.2 times higher than values of the previous stages and 2011; at row III it is up to 2.6

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 15 times higher than values of the previous stages and 2011; at row IV it is up to 1.7 times higher and practically unchanged as compared with 2011. Oxidizability of ground water in wells varies greatly from 0.54 MPC (2.7 mg/l) to 8.6 MPC (43.2 mg/l). Oxidizability of ground water in wells Nos 1, 2, 5, 6 and 8 is 1.1-8.6 times higher than MPC. In III stage oxidizability is from 6 (well No 6) to 8.3 (well No 5) times higher than values of previous stages and is respectively 1.7 and 9.8 times higher than values of similar period in 2011. Content of hydrogen sulfide in ground water varies from 0.0022 to 0.2284 mg/l, and it is observed that in some wells (No 5 and No 6) its content is up to 26.8 times higher. In wells No 10 and No 11 this value is up to 5.7 times less, than in previous stages, and remains at 2011 level. In 2012 as compared with 2011 higher concentration of iron was observed in ground water of wells No 5 and No 6. It is worth mentioning that it is not subsoil water that is monitored in the area of Drilling Waste Landfill, but ground water of the second aquifer which is under pressure and has high natural protection against penetration of contaminants from surface that practically excludes infiltration of contaminants from waste storage area. The microorganisms capable to develop due to oil hydrocarbons oxidation are detected in all water samples (except for water discharge header) and bottom sediments collected at Khauzak-Shady Block. Abundance of the most water samples fluctuates within 103-104 cells per 1ml. According to the association of subsurface waters to various age and lithological variety of sediments in the considered territory there are pointed out the following hydrogeological divisions (water-bearing, locally water-bearing, water-permeable, but waterless and moisture- proof systems, water-bearing fracture zones): Water-bearing system of alluvial Upper Neo Pleistocene and Holocene sediments is prevailed in periphery of the Zeravshan and Kashkadarya deltas in Karakul oasis north-west part of which enters into Khauzak-Shady Block. At this point water-bearing system of Upper Neo Pleistocene and Holocene alluvia occur the first from daylight surface. System subsurface waters have free surface. Groundwater level occurs at a depth of 1.2-3.7m, stage of water table to a great extent depends on relief, and feed conditions. Groundwater level on irrigating lands occurs at a depth of 1-3m, but on rain-fed lands up to 5-7m. Level amplitude on the irrigated areas may reach 1.5-2m (at the maximum stage of water table in April-May and minimum - in October- November). At the delta periphery, in its non-irrigated part, at a distance from irrigation channels, level amplitudes do not exceed 0.5m. Thus, subsurface water level fluctuations show that there is connectivity of the latter with irrigation waters, rate of water feed of surface waters. In zones of irrigation channels and irrigated areas impact the system water is brackish (in terms of total dissolved solids 1.2-2.7g/l), of sodium sulfate composition, on fallows inside irrigation projects water salinization increases up to 8-12g/l, and at oasis periphery up to 23- 32g/l. Chemically they generally are sodium chloride. Similar regularity is observed in sub- bottom profile. It is possible to say that along the extent area of water-bearing system the fresh waters generally are absent. At this point, as a result of low natural subsurface water outflow there is mainly observed vertical water cycle. Subsurface waters fed, mainly, by infiltration from irrigation schemes and from the irrigated areas (to 95% of water input). They are consumed for evaporation – to 89% and drainage effluent – 10%. Water-bearing system of the Upper Pliocene (Sayat and Dengizkul series) sediments is pervasive. Water-bearing system at Khauzak-Shady Block occurs under water-bearing alluvial

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 16 sediments of the Upper Pliocene and Holocene. In the northern and southern edges of Dengizkul Lake the Upper Pliocene water-bearing system occur the first from daylight surface. In the most of its extent area the water-bearing system has free surface, the established level occurs at a depth of 4-16m. Within the Karakul oasis the Upper Pliocene and Upper Neo Pleistocene subsurface waters are hydraulic interconnected. At this point level of the second (Upper Pliocene) system is established approximately at a depth with ground waters or slightly below. In deep parts of section the Upper Pliocene sediments water get a head. Water-bearing system surface is flatly inclined to the west-north-west; its elevations vary in the same direction from 190m of altitude to 170m. Thickness reaches 200-220m. Subsurface waters of this system generally are characterized as brackish and salty. Their salinization fluctuates within 8-12g/l, reaching in many cases 38-46g/l. Some wells tapped up waters with the salinization to 3-5g/l. Chemically the waters are sulfate, sodium or chloride, and sodium. Subsurface waters of Upper Pliocene sediments are formed due to infiltration of atmospheric precipitation and underground water inflow from the top and middle parts of the Zaravshan and Kashkadarya deltas within the Karakul oasis, and partially due to infiltration of surface waters. Their discharge occurs in the multiple closed depressions, including depression in which Dengizkul Lake is located. Condition of the system ground waters level is characteristic for deserts. Level amplitude is low (0.3-1.0) with a maximum in the spring and a minimum in the autumn. Waterproof system of Eocene sediments is pervasive. The system rocks crop out on the daylight surface on the northern edge of Denizkul Lake and occur directly under the Upper Pliocene drained formations at Khauzak-Shady Block (the southern edge of Dengizkul Lake). In respect of hydrology the clays, siltstones, marls stratum is the regional water confining stratum dividing a hydrogeologic cross-section in which top the ground waters are prevailed, and in lower part – head concordant waters and salt waters. In the underbody of described territory overlying confining bed is tapped up at a depth of 50-150m. Eocene water confining stratum thickness reaches 240m. Water-bearing system of the Turonian-Paleocene sediments is prevailed at Khauzak- Shady Block. Water-bearing system overlying confining bed is tapped up by wells at a depth of 150-200m. Hydrophilic rocks are presented by fractured limestones with layers of gypsums, calcareous sandstones and clays in Upper Paleocene part of system cross-section and alternate stratum of clays, sand, sandstones, siltstones, limestones in the lower Turonian-Maastricht part of cross-section. System hydrophilic rocks total thickness reaches 700-800m being reduced to 200-400m in the brachyanticlinal structural highs. Subsurface waters of Turonian-Paleocene sediments over the area, in the most of its part, are brackish with the salinization of 3.2-7.6g/l, more rarely total dissolved solids content increases to 8.9-11.6g/l. However, waters of the system Paleocene sediments are more saline than Turonian-Maastricht. Chemically the system subsurface waters are sodium sulfate and sodium chloride. Waters are not characterized by high concentration of lithium, strontium, chrome, and lead, but considerably lower than their relative minimum-industrial concentration. System waters are thermal; their mouth temperature reaches 36-45°C. Water-bearing system of Turonian-Paleocene sediments fed by subsurface inflow on the part of mountain frame and to the small extent – downstream of hydrophilic rocks, in the brachyanticlinal structure highs, in subsurface waters transit zone – due to infiltration of atmospheric precipitation. System subsurface waters are discharged through overflowing into overlying water-bearing systems along the fractured zones, as well as into multiple blind depressions. Subsurface waters of Turonian-Paleocene sediments have significant practical importance. In desert zone they are one of the major sources of pastures flooding, system waters are widely used for oil-gas exploration process water supply.

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Water-bearing system of the Cenomanian sediments is developed universally. System confining bed is tapped up by oil wells at a depth of 800-1000m under the Turonian-Maastricht sediments. Clay and siltstones of the Lower Turonian having thickness to 80-100m divide the Cenomanian water-bearing system from overlying Turonian-Paleocene. Hydrophilic rocks are presented by interbedding of sandstones, limestones, clays and siltstones. System thickness reaches 400m. Salinity of subsurface waters increases according to the hydrophilic rocks drowning. Chemically the waters are sodium sulfate and sodium chloride. Subsurface waters fed by subsurface inflow on the part of mountain discovery; discharge – as a result of outflow and overflowing along the fractured zones into overlying water-bearing systems. Waters are thermal; temperature varies from 40 to 68°C. Water-bearing system of the Albian sediments is pervasive. Water-bearing system confining bed occurs at a depths from 970-1200m to 1400-1700m. Hydrophilic stratum is presented by sandstones, clays with the sand bands, siltstones, and limestones. System thickness is up to 160-450m. System water salinization varies from 8-12g/l to 60g/l. Chemically the waters mainly are sodium chloride. System subsurface waters contain iodine at a rate of 0.515mg/l, bromine – 15-113mg/l. Waters are thermal; temperature reaches 70°C. Water-bearing system fed by subsurface inflow from in the part of mountain frame, discharge due to outflow and overflowing into overlying hydro-geological subdivisions along the tectonic deformation (faults). Waters of Albian sediments have no practical importance. Water-bearing system of the Berriasian-Aptian sediments is pervasive. System confining bed is tapped up by wells at a depth of 1080-2000m. Hydrophilic rocks are presented by stratum of sandstones, clays, siltstones alternating among themselves by interlayers of gypsum, limestones and dolomite with the gross thickness from 220-275m to 380-450m. System waters salinization is significant as a whole. In the territory adjacent from the north it fluctuates from 4 to 42g/l, within the sites the water salinization increases to 50-220g/l. Chemically the water mainly are sodium chloride. Water contains iodine at a rate up to 142mg/l, bromine to 370mg/l. Water temperature is 60-80°C. Such waters can be considered as raw materials for iodine and bromine commercial production. Water-bearing system of the Jurassic sediments is pervasive. System confining bed is presented by waterproof stratum of saliferous rocks of Kimmeridgian-Tithonian, halite, anhydrite, gypsum, occurs at a depth of 1200-3000m. Terrigennous-carbon bearing sediments of the lower and middle Jurassic and carbonate formations of the upper Jurassic combine according to the field nomenclature XV, XVI, XVII and XVIII water-bearing horizons divided by waterproof layers of clays, siltstones, and mudstones. Jurassic water-bearing system thickness reaches 1500m. Jurassic system subsurface waters are characterized by high salinity. Waters of XV horizon over the Khauzak area represent salt waters with the salinization from 113.1-159.3 to 88.6g/l, respectively. Chemically the waters are calcium chloride. Jurassic system subsurface waters are thermal with the temperature changing from 99 to 107°C. Iodine and bromine commercial content (more than 10 and 200mg/l in case of their commonly content in water) in Jurassic water-bearing system is established.

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1.3 SOILS AND GROUNDS

Complex morphological conditions, hydro-geological conditions and economic activities cause development of multiple soil formations. Meadow-oasis soils are the most prevailed in Karakul delta. Agro-irrigation muds thickness do not exceed 1-1.5m. Meadow-oasis soils are developed under the influence of shallow ground waters (1-3m), irrigational feed regime salinization defining in soils and depend on feed regime ground waters outflow. In this respect, soils developed in the top part of delta are in more favorable conditions than developed in the remaining territory. Totally, area soil condition is shown in the Table 1.2.

Table 1.2 – Karakul Delta Soil-water Extract Analysis Results, Arid Soil Weight Ratio (%)

Depth, Dissolved Total CI SO Ca Mg Na K cm Solids Alkalinity 4 0-46 0.174 0.015 0.045 0.055 0.021 0.007 0.022 0.003 46-70 0.274 0.012 0.038 0.110 0.017 0.016 0.031 0.002 70-156 0.420 0.015 0.066 0.208 0.027 0.034 0.050 0.002 156-180 1.876 0.015 0.447 0.708 0.119 0.125 0.260 0.003

Meadow alluvial irrigated soils are the most widespread in the investigated territory, ground waters depth level in them falls within the limits of 1.5-3m therefore soils are exposed to the constant capillary humidifying. Depending on limiting of irrigation the soils are subdivided into old and newly irrigated. In case of long-term irrigation the irrigated grey-brown soils of the Karakuls oasis lose their basic regional soil conditions (crusty, cloddiness, gypsum content, etc.). As a result of a long-term irrigation with muddy waters containing considerable amount of suspended small particles the profile of such soils accumulates agro-irrigation muds. On the old irrigated lands with grey-brown soils thickness of agro-irrigation muds reaches 100-120cm, on the newly irrigated – 50-80cm and on the rain-fed lands – 30-50cm only. Agro-irrigation alluviation on the one hand indicates changing of natural soil-forming process towards anthropogenous soil-forming process, and on the other hand on occurrence of the soils essentially differing from virgin according to their water chemistry, both physical and chemical and chemical properties and regime, i.e. soils pass from idiomorphic to eluvial- hydrogenic series. Such soils contain small quantity of humus (0.4-0.8%). Nitrogen, phosphorus and potassium content makes 0.030-0.042%; 0.035-0.13% and 0.350-1.95% respectively. They also are a little provided by labile phosphorus (13-15.0mg/kg) and exchange potassium (130- 150mg/kg). They are formed at close ground waters occurrence from ground surface (1.5-2m). Saline soils are characterized by availability of salt crust of 0.3-2cm thickness under which the loose subcrustal layer is located and lower subhorizon consisting of complex sediments. Texturally saline soils are various. They are not developed on complex alluvial sediments of various textures. They contain small quantity of nutrients, their humus content makes 0.1-0.3%. According to the salinity quality the saline soils normally are sulfate-chloride and chloride, and by cations are calcium-magnesian or sodium-magnesian. Results of the analysis of the water extract from saline soils are shown in the Table 1.3.

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Table 1.3 – Results of Analysis of Water Extract from Saline Soils, Arid Soil Weight Ratio (%)

Depth, Dissolved ɇɋO3 ɋI SO4 Ca Mg Na+K cm Solids 0-2 15.700 0.015 4.300 5.932 3.920 0.560 0.023 2-15 9.200 0.009 2.191 3.789 2.00 0.364 0.050 13-65 6.250 0.009 1.706 1.448 1.998 0.192 0.044 65-104 3.810 0.017 1.747 1.145 0.241 0.120 0.081 104-151 2.700 0.008 0.878 1.042 0.076 0.040 0.023 151-198 1.100 0.006 0.212 0.780 0.013 0.029 0.022

Soils (grounds) sampling at Kauzak-Shady Block was conducted at 22 sampling points (depth of 0.3-6m) and at 6 sampling points near to mouths of earlier drilled gas wells has shown, that: the soil cover of territory is presented mainly by grey-brown less developed, desert and sandy soils. These are idiomorphic soils of desert zone confined to rather ancient surfaces. Soils and grounds texture, mainly, is grain: sandy loam, sand, more rarely light loam. Interlayers of medium-textured and heavy loams come to light. In fractional composition of soils small silts are prevail (0.1-0.05mm.) All soils and grounds of the sites are exposed to salinization; their degree of salinization is very mottled: from low to very high that is predetermined by macro- and microrelief, hydro- geological conditions and soils texture. According to chemistry the soils and grounds mainly are sulfate-chloride, more rarely chloride-sulfate. On a number of sites of Khauzak field oil products content in soils (sampling depth to 0.3m) 5-6 times exceeds its concentration in grounds (sampling depth to 6m), that explains soil fractional composition in which small silts are prevail which prevent “penetration” of oil products into soil depth. In this regard contamination of soils formed earlier as a result of anthropogenous activity, for example, drilling of wells, now are observed mainly in surface layer. From organic substances the xylene, phenol, and synthetic surface-active reagents were detected in the bottom sediments. Main representative of the polycyclic aromatic hydrocarbons which have been detected in the bottom sediments is benz(o)pyrene. However benz(o)pyrene content in the bottom sediments sample is low and does not constitute cancerogenic hazard to environmental medium. Khauzak-Shady Block is notable for high hydrocarbons content in soil and bottom sediments. Moreover the maximum content of oil oxidant and phenol oxidant bacteria is observed throughout the Khauzak field and in individual area (in the vicinity of the north-east lakeshore of Dengizkul) of Shady field that is in turn correlated with results of phenol air, water and soil distribution. In order to evaluation of performed works impact (including waste management) on the soils and grounds status in 2013 there have been continued land resources explorations at the Khauzak GPD during the spring season. Sampling was conducted at observation points located at background point (basic level) and in points of soils and grounds potential contamination (local level). Survey of soils and grounds contamination at Khauzak-Shady Block were carried out on the cluster site of wells, wells under construction (Northern Shady), in the territories of Drill cuttings landfill, Treatment plants, filling station and in passing through Dengizkul Lake strait. Within the survey targets (local sites) observation points were located in zones of the maximum potential impact of the performed works. Vertical distribution of contaminants along the

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 20 lithological cross-section was surveyed through staged sampling within the intervals 0.0-0.3 and 0.5-1.0m. In addition, sanitary condition of the well pads was defined through visual observations. Average data by results of soils and grounds monitoring at Kauzak-Shady Block is shown in the Table 1.4.

Table 1.4 – Average Results of Soils and Grounds Monitoring at the Khauzak GPD Facilities in the First Half of 2013

Mean Concentration, mg/kg MPC Background MPC one time No Characteristics Local (at LUOC one time (outside of LUOC con. facilities) con. facilities) (RUz)* (WB)** 1 Water extract pH 7.0 6.83 - 2 Dry residue, g 0.335 0.65 - - 3 Oil products, mg/kg 0.235 0.321 - 5.000 4 Iron 16840.40 14318.22 - - * - MPC (RUz) – No MPC for the controlled soil indexes ** - MPC (WB) – WB standard (WHO) accepted according to Dutch Intervention Values (DIVs)

Expert reports determine that for all period of observation from 2005 to 2013 the background indexes of controlled components of soil contamination (dry residue, iron and oil products) remained approximately on a level. Dangerous tendencies of contaminants increase in soils and grounds are not fixed. Results of monitoring of the first half of 2013 show that content in soils and grounds of the basic contamination indexes (dry residue, iron and oil products) generally remained at level of 2012. In 2013 biotic monitoring in the territory of Khauzak-Shady Block was carried out on four sites, from which two are located on “Khauzak” GPD (in the vicinity of cluster sites 9 and 19), the third – Shady Block and fourth the control (standard) - in the most northern part of the Contract area, over a distance of work performing. Whole territory represents the hilly, fixed sand with sparse vegetation.

1.4 BOWELS

Khauzak and Shady Contract sites of Dengizkul field are within the Bukhara-Khiva oil- and-gas bearing area to which the majority presently operated large gas, oil, gas-condensate and oil-and-gas condensate fields of the Republic of Uzbekistan having similarity in bowels deep structure relates. Proximity of fields location from each other causes the universal features in structure of geological cross-section for which express stratifying to the folded basement from volcanic and metamorphic rocks of pre-Triassic age and the sedimentary cover presented by deposits of Jurassic, Cretaceous, Paleocene and Neogene systems is characteristic. The folded Paleozoic basement over the Khazuak area occurs at a depth of 3500-4000m. It is overlapped by stratum of Permian-Triassic marbles with no chance to oil and gas. Overlying clayey Lower and Middle Jurassic stratum also is actually stripped of collector-layers; during well testing the inflows over the considered area have not been obtained.

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Lower and Middle Jurassic sediments are the most ancient in the sedimentary cross- section explored by drilling on the field. Overlaying carbonate gas-bearing stratum has thickness of 400 meters or above. Carbonate sediments are overlapped by thick halogen series of Kimmeridgian-Tithonian age. There is occurs anhydrite stratum in the base of series. Due to difficulties in identification of this stratum the base of Gaurdak series on the areas of fields is conditionally drawn along the salt base which occurs at a depth of 2300-2500m. Salt base is stratified by the anhydrite stratum of 30-60m thickness to two parts – lower and upper (twice more thickness). Halogen stratum feature is show of salts plasticity especially in the lower part of stratum. Kimmeridgian-Tithonian sediments which overlap salt massive are corroded partially. Sediments thickness varies from 35 to 73m. Neocomian cross-section generally is clayey stratum with individual interstratified layers of limestones, anhydrites and sandstones. Aptian sediments are presented by series of sandstones, calcareous sandstone siltstones and limestones. Overlaying stratum of the Albian claystone-like clays is reliable marker. Upper Cretaceous sediments are presented by alternation of clay and sandstones strata. Cenonian sediments without visible unconformity are overlapped by limestones of Bukhara series. Overlaying mainly paleogene argillaceous deposits with sharp angular unconformity are overlapped by neogene-quaternary continental strata. Generally well columns on the Khauzak GCF are rather reliably correlated, both among themselves and with the well columns of other areas of Amu-Darya District. Fields condensate is heavy, skunk and consists mainly of naphtha and kerosene cuts. According to the group hydrocarbonic composition of naphtha the condensate refers to methane- aromatic-naphtha type. Produced waters confined to gas zones within the Khauzak field have salinization from 85 to 108g/l. They mainly are sodium chloride and calcium chloride composition. They contain high concentration of iodine (to 31mg/l), bromine (to 329mg/l). Boric oxide content does not exceed 102mg/l. Condensate yield is accepted 24.3g/m3. Thus the basic feature of these fields is the high content of hydrogen sulfide and carbon oxide gas in the compositions of natural gases.

1.5 FLORA AND FAUNA

Nature of soils and degree of their wetting defines vegetation cover development. There are prevailed saxaul, some species of suzerain (AmmodendronConollyi, AmmodendronKarelini, AmmodendronLehmannii) and kandym (GalligonumcapitMedasae, Galligonumoriopodum) on the sandy areas, to which are added cherkez (SalsolaRichteru), sandhill wattle, locoweed (Astragalusvillosissimus). Among sandy plants of Alat District the Kandym formations take the notable place creating one of the most common landscapes. 3 species from 34 are endemics of the survey area (Galligonumrubersus, Galligonumsetosum, Galligonumeriopodum) and 1 specie (Galligonummatteianum) recorded in the Red Book. Various types of Egnatioides are specific for takyr soils: 1) with the psamophitic bushes – Convolvulushamadae, SalsolaRichteri, AristidaKarelinii, Aristidapennata; 2) ephemeral which composition besides wormwood – Artemisiakemrudica and Artemisiadiffusa – includes Poabulbosa, Carexpachystylis, Bromussp; 3) Calligonum with the participation of Galligonumsp, Astragalusunifoliatus.

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There are prevailed saltwort-ephemeral vegetation on the saline soils, including Salsolasclerantha, Anabasisturkestanica, Carexpachystylis, Poabulbosa and Girgensohniaoppositiflora. Considerable areas along the banks of water bodies are occupied by beds of tamarisk (Tamarixhispida, Tamarixlaxe, Tamarixlitvinovii) with the impurity of alhagi (Alhagicanescens) and saltworts (Salsolatutcomanica, Salsolafoliasa, Halimocnemusvillosa, Halocnenumstrobilaceum). Dengizkul Lake having spring-fed origin is the State ornithological reserve. Reserve became a Ramsar site in 2001 and was recognized as an Important Bird Area in 2008, and included on the Critical Sites Network. Based on data of Academy of Sciences of the Republic of Uzbekistan the list of birds of Lake Dengizkul has included 170 species. In 2012 ornithological monitoring was carried out by LUOC which purpose was defining of points and main monitoring points for the following monitoring of birds and project activities impact on habitats, species composition, and geographic distribution on Lake Dengizkul [16]. Ornithological monitoring operations on Lake Dengizkul and its vicinities were carried out based on the Biodiversity Action Plan and Khauzak-Shady Enhanced Biodiversity Monitoring Plan of the Dengizkul field. They cover wintering season (January), spring migration (March, April) and the beginning of birds breeding season (April-May). Total duration of the field surveys has made 35 days (10 in January, 10 in March and 15 in the end of April - the beginning of May). As Dengizkul Lake is a Ramsar site, the ornithological surveys were conducted along the whole shore and water area, including the large bay in the north-west. Regular movements by the birds inhabiting the lake between breeding, feeding and resting areas result in location of concentration areas vital for individual species in various parts of lake. The following 3 survey sites were defined: Khauzak-Shady field (including north-west bay), the southern lakeshore and eastern shore of Dengizkul Lake. The observations at each site were conducted at as many survey points as possible due to absence of roads and inaccessibility of the line shoreline. A general ornithological survey of the lakeshore was conducted at 32 points. During the ornithological surveys of Dengizkul Lake from January till May of 2013 we recorded 100 species of birds belonging to 14 orders: Grebes – Podicipediformes (4 species), Copepods – Ɋɟlicaniformes (3 species), Ciconiiformes (4 species), Anseriformes (17), Falconiformes (6), Galliformes (1), Gruiformes (1), Charadriiformes (29), Columbiiformes (2), Cuculiformes (1), Strigiformes (1), Caprimulgiformes (1), Coraciiformes (3), Passeriformes (22 species). During the ornithological surveys there was recorded 100 species of birds making up 56% of the species wealth fixed during previous surveys. Among them there are birds of high priority: White-headed duck (1 priority), Ferruginous duck (1), Dalmatian pelican (2), Asian dowitcher (2), Pallid harrier (2), and Greater spotted eagle (2). (Table 1.5) 17 species are recorded in the Red Book of the Republic of Uzbekistan (White-headed duck, Marbled duck, Ferruginous duck, White-tailed eagle, Pallas’ sea eagle, Pallid harrier, Steppe eagle, Imperial eagle, Saker falcon, Zarafshan pheasant, Houbara bustard, European white pelican, Little and Great egret, and Mute swan, etc.). Six species belong to the fourth priority group: Mallard duck, Sea duck and Red-crested duck, Coot, Great cormorant and Shelduck, and also three species which areal is limited by biome “Eurasian deserts and semi-deserts” (Southern booted warbler, Aquatic warbler and desert finch (Table 1.5).

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Among five hydrophilic species there are species of the second (Asian dowitcher) and third (flamingo) priority. There was also recorded lesser kestrel which belongs to third priority group. List of birds by results of ornithological surveys [16] is shown in the Table 1.5

Table 1.5 – List of Birds of Dengizkul Lake Identified in 2012 Month

November Species status May June Priority September Reason of presence Protection and other and Protection 25.11.2012 7.11.2012* Podicipediformes n/ Great Grebe N 2 17 34 8 1 Podicepscristatus* n/ Black-necked Grebe M, W 600 59 15 1 Podicepsnigricollis n/ Horned Grebe M, W 2 1 Podicepsruficollis Pelecaniformes Dalmatian Pelican RDBUz VU 2 11 60 409 Pelecanus crispus* IUCN VU White Pelican 3 M RDBUz VU 20 Pelecanus onocrotalus Cormorant 4 N 78 463 1641 672 215 Phalacrocorax carbo* Pygmy Cormorant 3 N RDBUz NT 79 48 33 11 1 Phalacrocorax pygmeus* Ciconiiformes Little Egret 3 N RDBUz VU 4 19 39 Egretta garzetta* n/ Great Egret N 22 79 3 19 1 Egretta alba* n/ Grey Heron N 14 62 25 13 1 1 Ardea cinerea* Glossy Ibis 3 M, N RDBUz VU 1 127 Plegadis falcinellus* Spoonbill 3 M RDBUz VU 9 14 Platalea leucorodia* Phoenicopteriformes Americal Flamingo 3 M,S RDBUz VU 58 48 3 Phoenicopterus roseus Anseriformes Mute Swan 3 R RDBUz NT 151 227 183 208 46 Cignus olor* n/ Greylag Goose N?M 10 3 30 15 1 Anser anser Shelduck 4 N, M 13 44 12 1335 250 Tadorna tadorna* n/ Ruddy Shelduck N, M 8 7 10 1 Tadorna ferruginea* Mallard 4 N, W 41 976 110 Anas platyrhynchos

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Month

November Species status May June Priority September Reason of presence Protection and other and Protection 25.11.2012 7.11.2012* n/ Gadwall N, M 2 3 24 1 Anas strepera* n/ Pintail M 6 1 Anas acuta n/ Shoveler N?, M 80 3 18 1 Anas clypeata* n/ Teal M, W 62 99 1 Anas crecca n/ Eurasian Wigeon M, W 21 50 1 Anas penelope Red-crested Pochard 4 N, W 299 742 151 910 Netta rufina* Pochard 4 N,M, W 75 6716 1420 3 Aythya ferina Ferruginous Duck RDBUz NT, 1 M, W 3 8 Aythya nyroca* IUCN NT n/ Tufted Duck M, W 6 6 369 100 1 Aythya fuligula* White-headed Duck RDBUz EN, 1 M, W 312 Oxyura leucocephala IUCN EN Goosander 4 M, W 3 Mergus merganser Falconiformes Pallid Harrier RDBUz NT, 2 M 2 Circus macrourus IUCN NT n/ Marsh Harrier R 1 4 2 1 1 Circus aeruginosus n/ Long-legged Buzzard R 1 1 Buteo rufinus n/ Buzzard M 1 1 Buteo buteo White-tailed Sea Eagle 3 M, W RDBUz VU 14 7 Haliaeetus albicilla RDBUz Grated Spotted Eagle 2 M VU, IUCN 2 Aquila clanga VU Golden Eagle 3 S RDBUz VU 1 Aquila chrisaetos Naumann’s Kestrel RDBUz NT, 3 M 1 Falco naumanni IUCN VU n/ Common Kestre N,M 2 1 1 Falco tinnunculus Galliformes n/ Pheasant R 1 1 Phasianus colchicus Gruiformes Coot 4 M, W 1386 32 1168 Fulica atra*

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Month

November Species status May June Priority September Reason of presence Protection and other and Protection 25.11.2012 7.11.2012* Charadriiformes n/ Golden Plover M 2 3 1 Pluvialis apricaria* n/ Ringed Plover M 5 1 Charadrius hiaticula* n/ Little Ringed Plover M, N 13 43 5 1 Chardrius dubius* n/ White-tailed Lapwing N 2 1 Vanelochettusia leucura* n/ Black-winged Stilt N 37 339 1 Himantopus himantopus* n/ Avocet N 21 1 Recurvirostra avosetta* n/ Greenshank M, W 23 3 1 Tringa nebularia* n/ Common Redshank M, W 12 107 23 2 1 Tringa totanus* n/ Common Sandpiper M 3 1 Actitis hypoleucos n/ Marsh Sandpiper M 17 2 1 Tringa stagnatilis* n/ Little Stint M 16 1 Calidris minuta* n/ Dunlin M 358 574 1 Calidris alpina* Eurasian Curlew 2 M IUCN NT 7 1 Numenius arquata* Black-tailed Godwit 2 M IUCN NT 1 18 Limoza limoza* Asian Dowitcher RDBUz 2 Limnodromus M VU, IUCN 2 semipalmatus* NT n/ Collared pranticole N 9 1 Glareola pratincola n/ Yellow-legged Gull N,Ɇ,W 17 133 214 105 2 1 Larus cachinans* n/ Slender-billed Gull N, M,W 355 88 3194 98 1 Larus genei* n/ Black-headed Gul N,M 15 1 Larus ridibundus n/ Caspian Tern S 13 5 1 Hydroprogne caspia* n/ Gull-billed Tern N 3 1 Gelochelidon nilotica n/ Common Tern N 3 21 1 1 Sterna hirundo* n/ Little Tern N 22 1 Sterna albifrons

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Month

November Species status May June Priority September Reason of presence Protection and other and Protection 25.11.2012 7.11.2012* Columbiiformes n/ Black-bellied Sandgrouse R 1 1 1 Pterocles orientalis n/ Rock Dove R 8 2 1 Columba livia Cuculiformes n/ Cuckoo N, M 1 1 Cuculus canorus Strigiformes n/ Little Owl R 2 1 Athene noctua Caprimulgiformes Egyptian Nightjar 5 N 1 Caprimulgus aegiptius Coraciiformes Eurasian Roller 2 N IUCN NT 10 1 Coracias garrulus n/ European Bee-eater M, N 3 1 Merops apiaster n/ Blue-cheeked Bee-eater M,N 1 1 Merops superciliosus Passeriformes n/ Crested Lark R 7 234 17 6 8 1 Galerida cristata n/ Barn Swallow N 1700 1 Hirundo rustica n/ Sand Martin S 1206 4880 1 Riparia riparia n/ Pied Wagtail N 21 1 Motacilla personata n/ Citrine Wagtail M 22 1 Motacilla citreola n/ Yellow Wagtail M 248 1 Motacilla flava n/ Black-headed Wagtail N 4 1 Motacilla feldegg n/ White Wagtail M,W 6 1 Motacilla alba n/ Isabelline Shrike N 1 2 1 Lanius isabellinus n/ Great grey Shrike N, R? 1 1 Lanius excubitor n/ Myna R 2 4 6 2 1 Acridotheres tristis n/ Eurasian Hooded Crow M,W 7 3 1 Corvus cornix Scrub Warbler 5 N,R? 1 Scotocerca inquieta

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Month

November Species status May June Priority September Reason of presence Protection and other and Protection 25.11.2012 7.11.2012* Southern Booted Warbler 5 N,M 2 2 1 Hippolais rama n/ Pied Wheatear N 6 1 Oenanthe pleshanka n/ Isabelline Wheatear N 2 1 1 Oenanthe isabellina n/ Rufous Scrub Robin N 1 1 Cercotrichas galactotes n/ Indian House Sparrow N 205 100 1 Passer indicus n/ Tree Sparrow R 30 1 Passer montanus n/ Spanish Sparrow N 1 1 Passer hispanolensis n/ Chaffinh M,W 1 1 Fringilla coelebs n/ Siskin M 1 1 Spinus spinus Desert Finch 5 R 4 14 26 Rhodospiza obsoleta n/ Bristle Grass M,W 4 1 Emberiza calandra 3601 / 4437/ 20662/ 7921/ 971/ Total birds / hydrophilic 3062 2860 14040 7826 946 45/ 44/ 29/ Total species / hydrophilic 53/ 35 39/ 27 32 32 18 Note Reason of presence: N- nesting, R- resident, M- migrating, W- wintering, S- summering (making summer nomadic migrations). Protection status in accordance with the Red Book of the Republic of Uzbekistan (2009) and Red List of IUCN (2012): EN- endangered; VU- vulnerable; NT- near-threatened. * - partial survey is carried out in four points only (on the side of bridge on either side, at p.57 and in the bay near to road behind the bridge).

According to the experts-ornithologists conclusion notwithstanding project activities to be performed for Khauzak-Shady gas-condensate field development, including northern part of Shady Block, Dengizkul Lake still remains as water body important for hydrophilic birds in various seasons of their life cycle: wintering, spring migration and nesting. During observation there is not found out adverse impact on priority species of hydrophilic birds and on change of species composition of avifauna. Measures taken by LUOC in order to conservation of biodiversity of the project area (wells reposition, development of their infrastructure, installation of name plates limiting activity of the personnel and vehicles, etc.) are timely and help towards the attainment of assignments facing with mitigation of adverse impact on hydrophilic birds. Reposition of well 1031 from the shore of Dengizkul to new place at the distance of 2km from the bay and 3km from the lake reduces birds anxiety level when the field in service.

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Monitoring of power distribution line and its impact on hydrophilic birds movement has shown that though observed power distribution line may be potentially hazardous there was not observed events of hydrophilic birds’ mortality caused by collision with power distribution line or electrocuting. Due to availability of special protection devices on power distribution line support and markers on wires through bay the threat of birds’ mortality on power distribution line is reduced essentially. On the contrary, many species making feeding migrations in the vicinity of bay adapted to power distribution line height and having flown over it immediately lower flying height over water. The fauna is represented by desert species of mammals (dog fox, jerboas, yellow and long-clawed ground squirrel, chickweeds). There is rabbit, fox, and jackal. Observed area is the natural habitat for wild animals. The tracks of Persian gazelle are found in the territory of Khauzak site (monitoring sites K9 and K19) – the specie included in the Red Book of Uzbekistan and Red List of IUCN that speaks about absence of wildlife disturbance. According to the observations of monitoring group experts, Persian gazelles visit territory in small groups during migration wherefrom it may be concluded that the territory of Khauzak site is the valuable habitat for Persian gazelle in terms of feeding and rest areas, and is not critical importance breeding area. Due to lack of wildlife disturbance additional impact mitigation measures are not required. There are living many species of reptiles in the territory of observed area: bed eared (PhrynocephalusmystaceusP.), sunwatcher (Phrynocephalushelioscopus), plate-tailed gecko (Teratoscincusscincus), racerunner (Eremiasvelox), steppe runner (Eremiaslineolata), media runner (Eremiasintermedia), etc. Literature notes on events of meetings with phoorsa (Echiscarinatus), as well as meetings of the Central Asian cobra (Najaoxiana) included in the Red Book. Common specie for observed area is the desert monitor included in the Red Book. Its traces meet in chickweeds colonies. Observations of monitoring group experts enable to make a conclusion on stable condition of monitor population on the Khauzak site. Species diversity of animals and plants and their abundance at the monitoring sites in comparison with the results of 2012 have not varied considerably. There are not found out any facts which could affect animals number associated with the Operator’s activity. Additional animal rare species or their habitats conservation measures are not required. 1.6 EXISTING SOURCES OF ANTHROPOGENIC IMPACT

Prominent nature of Khauzak and Shady Block location area is absence of standard residential population and industrial plants of other departments polluting atmospheric air. From oil and gas industry operating facilities at the distance from considered sites there are located gas-condensate fields Dengizkul (15-20km), Urtabulak (30-35km) in the easterly direction. Remoteness of these fields defines minimum probability of major anthropogenic impact on atmospheric air in considered area. The major source of atmospheric air impact is the Khauzak Gas Production Department (GPD) in which territory 74 units of stationary sources of atmosphere pollution are located. Total actual emission of pollutants into the atmosphere from stationary sources in the first half of 2013 has made 590.27t, particularly, from gas flaring – 225.92t. Table 1.6 shows emissions data from Khauzak GPD stationary sources of atmosphere pollution [18].

Table 1.6 – Actual Emissions from Khauzak GPD Stationary Sources I half of 2013, t No Name of Pollutant Actual MPE

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1 Sulfur dioxide 139.815185 3415.085459 2 Carbon oxide 56.898810 1574.203386 3 Methane 169.562463 1077.120087 4 Nitrogen dioxide 2.522381 53.868341 5 Soot 0.068177 1.875851 6 Nitrogen oxide 0.479329 12.128276 7 Hydrocarbons 118.503600 320.729851 8 Acrolein 0.004644 0.216246 9 Abrasive dust 0.004039 0.089413 10 Iron oxide 0.000939 0.029799 11 Hydrogen sulfide 102.399702 219.992718 12 Manganese dioxide 0.000069 0.002181 13 Silicon dioxide 0.000063 0.002 14 Hydrogen fluoride 0.000079 0.00252 15 Metal dust 0.011066 0.199836 16 Cement kiln dust 0.001923 0.004257 17 Nonorganic dust 0.00000 3.58707 Total 590.272469 6679.137291 As the Table 1.6 shows atmospheric emissions from stationary sources for 1 half-year have made 8.8% of established standards. Impact on site atmospheric air has also effect due to construction of wells by contracting organization. Total pollutant emission during well development of Northern part of Shady Block for 1 half-year of 2013 has made 1107.828t. Departmental atmospheric air condition monitoring in the first half of the 2013 at Khauzak-Shady Block was conducted in March. For an assessment of natural (background) level of air pollution on the site the atmospheric air samples were collected at background station – near to inlet manifold of Dengizkul Lake (Shady Block). Average data by results of atmospheric air monitoring are shown in the Table 1.7.

Table 1.7 – Average Results of Atmosphere Monitoring at Khauzak GPD Facilities in the First Half of 2013

Concentrations, mg/m3 MPC one MPC one No Characteristics Background (outside Local (at LUOC time con. time con. of LUOC facilities) facilities) (RUz)* (WB)** 1 ɋɈ 3.6 3.9076 5.0 - 2 NO2 0.0713 0.0684 0.085 0.200 3 SO2 0.1284 0.2300 0.500 0.500 4 H2S 0.0093 0.0184 0.008 5.0 5 CxHy 8.0923 6.9518 50.0 - * - MPC one-time con. (RUz) – maximum one-time MPC as per sanitary rules No. 0179-04 of RUz ** - MPC one-time con. (WB) – WB standard (WHO) accepted according to minimum average period (for NO2 – 1 hour, for SO2 – 10 minutes)

As of pollutants, excess of maximum permissible concentration of RUz in air is noted for hydrogen sulfide in which case concentration do not exceed World Bank standards. According to GosSIAK expert reports established facts of excess of RUz standards for hydrogen sulfide in

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 30 atmospheric air are connected with the natural and man-made changes occurring in the territory of whole district, and communication with the works which are performed by LUOC is not identified accurately. Carbon oxide, sulfur dioxide, hydrocarbons (by methane) and nitrogen dioxide content in atmospheric air of the site does not exceed MPC level both as per standards of the Republic of Uzbekistan, and as per World Bank standards. As a result of air mass inversion in this region there is observed constant air handling that contributes to emissions dissipation in the short run that is the advantage factor when performing of planned activity.

1.7 OVERVIEW OF KHAUZAK AND SHADY BLOCK

Exploration drilling at Khauzak-Shady Block has begun in 1967. As a result of well 1 drilling on the Khauzak site in 1968 there was revealed commercial gas-bearing capacity of the Upper Jurassic carbonate sediments. Main prospecting works in this area site were finished in 1974 though supplementary exploration of its individual sites proceeded till 1993. In total there were drilled 20 exploratory wells and one observation well on the Khauzak site. Main part from them (16 wells) was drilled in 1967-74 and abandoned as served its purpose. At present all these wells are flooded by Dengizkul Lake. In 1988-93 there were drilled additionally two exploratory wells 301, 302 and one inspection well 242, included in the inspection well stock as of 01.10.2001. In 1972, Shady Block located in the north from Khauzak site was put into exploratory drilling and in 1974 during well 1 testing there was established commercial gas-bearing capacity of the Jurassic carbonate sediments confirmed by exploratory wells 2 and 3 testing. Based on the development project of Khauzak and Shady Block of Dengizkul field there is planned construction of eight back-up wells of which 4 wells on the Khauzak site, 2 wells in the western part of Shady Block and 2 wells in the northern part of Shady Block. One of the major problems in selection of Khauzak and Shady Block development systems occurs due to the fact that the most part of the Contract area is flooded by Dengizkul Lake. Water level is at the elevation of +182.2m, water surface area makes approximately 140km2. Within the next years, according to the forecast of Ministry of Agriculture and Water Economy of the Republic of Uzbekistan, change of water level in lake is not planned. Therefore, development of production facility is carried out with prevailing of directional wells. Bottom holes of the planned production wells are located in maximum net gas pay zones 10-15m above gas-water contact. Planned wells provide simultaneous drilling of XV-OR and XV-R horizons. Khauzak and Shady Block development is also characterized by abnormal operating conditions due to high gas aggressivity and toxicity. According to the data from chemical analytical laboratory “LUOC” LLC current hydrogen sulfide and carbon dioxide gas content in formation gas makes 3.3% and 4.5%, respectively. In order to provide long-term uninterrupted and trouble-free operation of wells, as well as underground and surface equipment in such conditions there are provided measures for use of anti-corrosive tubing, flowlines, well head and surface equipment, as well as injection of corrosion inhibitor into wells and pipelines.

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1.8 PERSONNEL HEALTH STATUS AND SOCIO-ECONOMIC ASPECTS

In area of production well construction standard residential population is absent, except for the personnel serving the future production. Presumptively the transient personnel (drilling shift) may have typical number of diseases common to residents of Bukhara Region. It is hepatitis, digestive organs diseases, respiratory diseases, cardiovascular diseases, which may be averted through such actions as initial and periodic medical examinations of the personnel, health maintenance organization, compulsory vaccination of the personnel, as well as personnel instruction on essential hygiene and sanitary requirements. Such chemicals as sulfur dioxide, nitrogen oxide and dioxide, carbon oxide, methane, oil products in water are unsafe for human health (in the conditions of production and residing). These factors can contribute to progress of some occupational diseases, such as chronic and acute poisonings, chronic toxic bronchitis, pulmonary fibrosis, and etc. Salinity and air dust content can also lead to progress of some diseases, such as chronic dust bronchitis, bronchial asthma, pneumonia, and etc. Drillers may have pneumatic hammer disease, diminished hearing by type of cochlear neuritis. Minimization of adverse impact of harmful occupational and natural factors on personnel health will be carried out through effect of preventive measures package directed to preventive occupational health care and personnel health protection. Safety assurance in relation to people and natural components shall be primary factor of operation of the enterprise, i.e. in the exercise of planned activity it is necessary to observe strict control of technical and environmental requirements fulfillment. Planned industrial activity inextricably connected with implementation of environmental protection measures package based on radically new scientific and engineering bases of design, construction and operation. Operation of the facility in area with low ecological potential of natural environment pollution will have high economic and ecological effects. In order to prevent emergencies the well maintenance staff shall have high qualification, state-of-the-art drilling equipment. It assumes support of well construction according to occupational safety and environmental protection regulations. Increase in population negative impact as a result of development is not expected. Onsite application of reliable state-of-the-art equipment will allow maintaining of natural constituents within reasonable bounds. Project realization will not lead to change of traditional living conditions of Alat district population.

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2 PLANNED ACTIVITY AND ITS ENVIRONMENTAL IMPACT

Group Detail Designs (vertical, directional) are provided for performance of the following assignments: - drilling of surveyed cross-section to total depths; - survey of physical properties of reservoirs according to field geophysical survey data and by laboratory methods; - survey of physical and chemical properties of reservoir fluids, hydrodynamic features of gas-prospective units. Taking into account geographical location of Khauzak and Shady Block of Dengizkul field (flooded territory) there is provided for grouping of wells. Figures 1.2-1.6 shows location of planned wells. Field development project proposes construction of eight back-up wells: - on the Northern Shady site – two vertical wells; - on the Western Shady site – two vertical wells; - on the Khauzak site – four directional wells.

Northern Part of Shady Block

Additional well 1053 The site for construction is located at the distance of 678.78m from existing shoreline (179.68m) on the flat shore represented by saline sandy desert, overgrown with thinned tamarisk. Existing well 1049 is located in 37154m to the south. The surveyed site included in the 500m water protection zone like the well No.1049. Removal of the site of the well 1053 out of the 500m water protection zone from the ecological point of view is not expedient, as the elevation 182.2m is in considerable distance from the shore (957.64) and observance of 500m protection zone will remove the mouth of this well at the distance more than 1km from the already existing access road to the well 1049, the well 1049 itself, and temporary water-supply well. Construction of new road and other service lines will cause disturbance of the considerable areas of animal desert species habitats (mammals, birds and reptiles), and will prolong the period of forced disturbance both for water-wading birds species, and for inhabitants of adjacent sand desert. Besides, proceeding from the structure of the pay horizon, reposition of the mouth of the well 1053 out of the limits of the water protection zone results full loss of effectiveness of production indexes on the given well [17]. Taking into account the LUOC experience of construction of wells in water protection zone, and great distance of the well 1053 from current shoreline in comparison with the earlier designed well 1049, the selected well 1053 location is considered as acceptable under condition of realization of earlier provided project actions at construction of the well 1049. The selected place of location of the well is in the great distance from the determined within the framework of the Enhanced Biodiversity Monitoring Plan critical zone of hydrophilic birds’ habitat, namely areas of concentration and nesting of avifauna in the northern part of Dengizkul Lake. Impact on adjacent ecosystems and their inhabitants is expected to be the minimum. The well is in the distance of more than 5km from the places of nesting of hydrophilic birds, and there will be no adverse impact in case of conducting of civil work during reproduction period. Presence of machinery and people in the territory, adjoining to the well, will be the disturbance factor for the birds, using the shore as the place of feeding and rest, however, taking into account low-scale of works and their short period, this factor will not be the considerable threat. Birds will migrate to

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 33 other sites of the lake, and, upon completion of works, will use again this part of the shore. Use of existing road will allow minimizing losses of habitats of flora and fauna desert species. Additional well 1054 The site for construction is located at the distance of 505.27m from the elevation 182.2m and 781.06m from existing shoreline (179.68) on flat sandy shore and represents the saline sand desert with thinned tamarisk. The earlier designed well 1047 is located in 457.57m to the south from the projected well. The well place of location meets legislative regulations about observance of 500m protection zones that in turn will allow reducing of the impact on the ecosystem of the lake and to reduce the disturbance factor for water-wading birds’ species. The selected location of the well is in great distance (more than 7km) from the critical zone of avifauna habitat in the northern part of Dengizkul Lake, determined within the framework of the Enhanced Biodiversity Monitoring Plan. Loss of habitats of desert species of animals will be insignificant, and linked directly with construction of the well. The disturbance factor for the inhabitants of the biome “Eurasian deserts and semi-deserts”, taking into account low-scale of works and their short term, does not constitute considerable threat. Fragmentation of the habitats is not expected.

Khauzak Block

Additional well 1055 The site for construction is located in the sand desert with characteristic vegetation near to the cluster 11 and adjacent wells. The proposed site is located in the water protection zone at the distance of 194.36m from the line of the maximum registered level of water 182.2m and at the distance of 333.65m from existing shoreline (179.68m). At selection of the site for the well 1055 3 variants have been reviewed, thus, the variant with the greatest distance from the shoreline is proposed for approval under condition of preservation of production indices for this well, and the least damage to habitat. Proceeding from the structure of the pay horizon, carrying over of the mouth of the well 1055 out of the limits of the water protection zone results full loss of effectiveness of production indices on the given well. The accepted greatest possible distance of the well from the shoreline will reduce the disturbance factor for hydrophilic birds during the period of construction. On the proposed variant of placing, no impact on the habitats of the species of water- wading birds species is expected. The disturbance factor for hydrophilic birds at well construction will not be high, thanks to presence of well-developed shrub vegetation. Strict observance of existing for the personnel and the contractors of the LUOC rules of limitation of operational activity near to the shore also will promote reduction of the impact of the disturbance factor. The selected place of location of the well is at great distance (more than 9 km) from the critical zone of avifauna habitat in the western part of the Dengizkul Lake, determined within the framework of the Enhanced Biodiversity Monitoring Plan. At the expense of the site joining to the existing cluster 11, under condition of realisation of the project actions provided earlier, loss of habitats for desert species of animals will be insignificant and connected directly with construction of the site for the well, at construction of wells on the Khauzak site. Construction impact as the disturbance factor for desert species of animals will be short and will not have considerable adverse effect. Inhabitants of the biome “Eurasian deserts and semi-deserts” will migrate to adjacent territories for the period of construction. It is necessary to notice, that disposal of drill cuttings from all wells on Khauzak is provided by transportation to the operating Drill cuttings landfill of the Khauzak GPD [17]. Additional well 1056 The site for construction is located in sand desert with characteristic vegetation between the clusters 11 and 12. The proposed site is located in the water protection

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 34 zone at the distance of 195.91m from the line of the maximum registered level of water 182.2m and at the distance of 372.43m from existing shoreline (179.68m). At selection of the site for the well 1056 3 variants have been reviewed, thus, the variant with the greatest distance from the shoreline is proposed for approval under condition of preservation of production indices for this well. Proceeding from the structure of the pay horizon, carrying over of the mouth of the well 1056 out of the limits of the water protection zone results full loss of effectiveness of production indices on the given well. The accepted greatest possible distance of the well from the shoreline and presence of well-developed shrub vegetation will reduce the disturbance factor for hydrophilic birds during the period of construction. Strict observance of existing for the personnel and the contractors of the LUOC rules of limitation of operational activity near to the shore also will promote reduction of the impact of the disturbance factor. The minimum impact on habitats of the fauna of the biome “Eurasian deserts and semi- deserts” is expected on the proposed variant, at the expense of the site joining to existing cluster 11, under condition of realisation of the project actions provided earlier, at construction of the wells on the Khauzak site. It is necessary to notice, that in the territory adjoining to the construction site, there are the saxaul trees that should be taken into account at construction of the access road and other accompanying facilities. Preservation of the groups of such trees will promote restoration of the habitats, damaged at construction. For the period of civil work, the animals, living in nearby the site, will migrate to adjacent territories. Thus, threat to the state of populations of inhabitants of the sand desert is minimal. At further well infrastructure development, it is necessary to provide connections of the additional wells 1055 and 1056 in the single utility line area. It is necessary to notice, that disposal of drill cuttings from all wells on Khauzak is provided by transportation to the operating Drill cuttings landfill of the Khauzak GPD. The selected place of location of the well is in great distance from the critical zone of dwelling of water- wading birds species, determined within the framework of the Enhanced Biodiversity Monitoring Plan in the western part of the Dengizkul Lake, therefore, no adverse impact on hydrophilic birds and their habitats is expected at its construction [17]. Additional well 1057 The site for construction is located in the transition area between inshore tamarisk shrub and sand desert with characteristic saxaul and herbaceous vegetation in the vicinity of helipad and operating well 242. The proposed site is located in the water protection zone at the distance of 259.85m from the line of the maximum registered level of water 182.2 m and at the distance of 325.55m from existing shoreline (179.68m). At selection of the site for the well 1057 3 variants have been reviewed, thus, the variant with the greatest distance from the shoreline is proposed for approval under condition of preservation of production indices for this well, and list disturbance for the desert vegetation and animals habitats. It is impossible to remove site for construction out of the 500m protection zone due to close layout of operating well 242, pipeline of the well 1027, gas-collecting main from the K13 and helipads. The greatest possible distance of the well from the shoreline towards existing facilities, taking into account observance of protection zones, will reduce the disturbance factor for hydrophilic birds during construction. Places of rest and feeding will not be affected. The minimum additional impact on the habitats of desert flora and fauna is expected on the proposed variant, at the expense of the site joining to existing complex of utilities. It is necessary to notice, that disposal of drill cuttings from all wells on Khauzak is provided by transportation to the operating Drill cuttings landfill of the Khauzak GPD.

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 35

The selected place of location of the well is in great distance from the critical zone of dwelling of avifauna, determined within the framework of the Enhanced Biodiversity Monitoring Plan in the western part of the Dengizkul Lake. Basic factor of adverse impact at the well construction will be disturbance of animals, including birds – inhabitants of tamarisk shrub and adjoining part of the sand desert. For the period of work, they will migrate to more quiet adjacent territories. Strict observance of existing for the personnel and the contractors of the LUOC rules of limitation of operational activity near to the shore also will promote reduction of the disturbance factor impact [17]. Additional well 1058 The site for construction is located in sand desert with well- developed saxaul vegetation remote at the distance from existing facilities of the Khauzak GPD. The proposed site is located in the water protection zone at the distance of 200.86m from the line of the maximum registered level of water 182.2m and at the distance of 304.23m from existing shoreline (179.68m). At selection of the site for the well 1058 3 variants have been reviewed, thus, the variant with the greatest distance from the shoreline is proposed for approval under condition of preservation of production indices for this well. Proceeding from the structure of the pay horizon, carrying over of the mouth of the well 1058 out of the limits of the water protection zone results full loss of effectiveness of production indices on the given well. The accepted greatest possible distance of the well from the shoreline and presence of well-developed tree-shrub vegetation will reduce the disturbance factor for hydrophilic birds during the period of construction. Habitats of hydrophilic species of birds will not suffer. Laying of the pipeline from the well to the point of connection with the pipeline of the well No.1027 will cause time loss of narrow strip of habitats. Reclamation will promote easing of adverse impact of the pipeline laying, and will accelerate the process of natural restoration of the territory. No fragmentations of the habitats are expected. It is necessary to notice, that disposal of drill cuttings from all wells on Khauzak is provided by transportation to the operating Drill cuttings landfill of the Khauzak GPD. The disturbance from civil work will be temporary and will not have considerable impact both on populations of the inhabitants of the biome “Eurasian deserts and semi-deserts”, and on populations of priority and other species of hydrophilic birds that will be promoted substantially by presence and maximum preservation of saxaul and other shrubs [17].

The Western Part of the Shady Block

Additional well 1080 The site of construction is located at the distance of 630m from K-1 in the sandy desert, far away from the lakescape and waters of the bay (over 1.5km). At selection of site for the well 1080 two variants have been reviewed. The variant has been proposed for approval, which eliminates works in the area of the north-western arm of Dengizkul Lake, within which there is one of the critical zones of avifauna habitat, identified under the Enhanced Biodiversity Monitoring Plan. Construction of the well in the proposed variant is not a threat or concern for water- wading birds’ species and their habitats. For desert habitats disturbance factor and loss of habitat will be insignificant, since the projected well 1080 will be located in close proximity to the existing multiple-well platform K-1. Construction of a new access road is not required; the length of the flowline is insignificant (less than 600m). Due to selected location of the well, damage to vegetation cover will be minimal during construction. Habitat fragmentation is not expected [17].

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 36

Additional well 1081The site of construction is located at the distance of 1100m from K- 2 in the sandy desert, far away from the lakescape and waters of the bay. Construction of the well in the proposed variant is not a threat or concern for water-wading birds’ species and their habitats. For desert habitats, disturbance factor and loss of habitat will be insignificant, since the projected well 1081 will be located in close proximity to the existing multiple-well platform K-2. The adjacent area allows the animals to move for the required distance from the source of anxiety. Due to selected location of the well, damage to vegetation cover will be minimal during construction. Habitat fragmentation is not expected. The selected well location is in considerable distance (more than 1km) from the critical habitat of water-wading birds’ species identified within the framework of the Enhanced Biodiversity Monitoring Plan [17].

Figure 1.2 – Location Diagram of Wells 1053 NSh and 1054 NSh at Khauzak- Shady Block of Dengizkul field

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 37

Figure 1.3 – Location Diagram of Well 1057X at Khauzak-Shady Block of Dengizkul field

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 38

Figure 1.4 – Location Diagram of Well 1057X at Khauzak-Shady Block of Dengizkul field

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 39

Figure 1.5 – Location Diagram of Well 1058X at Khauzak-Shady Block of Dengizkul field

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 40

Figure 1.6 – Location Diagram of Wells 1058 and 1081 at Khauzak-Shady Block of Dengizkul field

Thus, proceeding from the presented report on primary engineering and environmental survey and selection of sites for construction of additional wells, 5 wells (1 well – Northern Shady Block, 4 wells – Khauzak site) fall within the Dengizkul Lake water protection zone at the water elevation of 182.2m. In accordance with requirements of Resolution No.174 dated 07.04.1992 [31], as well as taking into account requirements of the State Environmental Expertise No.18/719z dated 20.09.2010ɝ there is provided package of measures for these wells allowing to remain the optimal scheme of Khauzak-Shady Block development, to cut capital expenses for their development due to well reposition outside of water protection zone and having minimized adverse impacts on natural environment and ecosystem of Dengizkul Lake: - arrangement of moisture-proof and diked areas for placing of fuel storage tanks outside of water protection zone of Dengizkul Lake; - arrangement of auxiliary moisture-proof pit for receiving and disposal of drilling cuttings of well No. 1053 outside of water protection zone; - disposal of drilling cuttings from temporary pit near to well No. 1053 to equipped auxiliary moisture-proof pit outside of it; - roll up of temporary pit, restoration of the drill site territory; - disposal of drilling cuttings and roll up of auxiliary sludge pit in accordance with agreed by State Environmental Committee of the Republic of Uzbekistan “Rules for disposal of drilling cuttings during construction of production wells at Shady Block”.

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 41

As aforesaid this project provides the following technical solutions for the wells which mouth fall within the Dengizkul Lake water protection zone at the maximum water elevation of 182.2m: - during front end construction works it is necessary to specify location of wells head and drill site with the removal of sludge pit from water edge as maximum as possible; - temporary well sludge pit shall be equipped with reinforced waterproofing of the bottom and walls by film material, embankment and perimeter protection; - at the same stage for well No.1053, proceeding from actual location of well head, it is necessary to select area for arrangement of auxiliary moisture-proof sludge pit outside of Dengizkul Lake water protection zone (with the storage capacity by 20% more than projected); - at the initial stage of well development, following completion of its construction it is necessary to arrange auxiliary moisture-proof sludge pit outside of Dengizkul Lake water protection zone (with the storage capacity by 20% more than projected); - at the final stage of works, following completion of well construction and development, drill water shall be treated in the well sludge pit in accordance with the provisions of Rules, and be supplied for the further use to the next wells; - following treatment and pumping of drill waters out of well pit the drilling cuttings and waste drilling mud by means of special vehicles are removed to auxiliary sludge pit located outside of Dengizkul Lake water protection zone; - disposal of drilling cuttings and waste drilling muds is performed in auxiliary sludge pit in accordance wit the provisions of Rules; - following disposal the drilling cuttings are shall be buried in auxiliary sludge pit located outside of Dengizkul Lake water protection zone; - the final stage of works on the drill sites is roll up of well and auxiliary sludge pit, and cleanup of drill site and area of auxiliary sludge pit. It should be noted that during well construction on the Khauzak site collection of drilling cuttings will be executed into sludge pit with the subsequent removal for their disposal to the operational Drilling cuttings landfill (DCLF) of the Khauzak GPD. Implementation of this scheme for the wells which heads fall within water protection zone will allow minimizing of adverse impacts on Dengizkul Lake water protection zone, and meet the applicable laws and regulations of the Republic of Uzbekistan. Well drilling cycle will be performed by contracting organizations. Planned number of drilling crews makes two, with their subsequent moving from one well to another following completions of works. Drill rigs, well design, characteristics and requirement of mud, cement mortars, wellhead and blowout preventing equipment, Christmas tree, drilling equipment set accepted by the working project documentation are accepted and approved by the Customer, i.e. drilling technological process meets the design solutions. Construction of wells consists of the following stages: - front end and construction and erection operations; - well drilling and casing; - well testing (development); - disposal of drilling cuttings and roll up of sludge pit in accordance with the provisions of Rules; - land technical restoration at the final stages of well construction. One well construction period makes on the average 162 days.

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 42

Front end Construction and Erection Operations

During the front end construction period it is necessary to build access roads, well moisture-proof sludge pit, perform a leveling of the site and construction and erection operations on the drill site. In accordance with KMK 2.10.05-97 3.5 ha of land are allocated for temporary use on the well construction site. As per detailed designs well construction period makes 34 days. When performing of CEO there will be involved ɋɆɊ the mechanized technics: mobile cranes, bulldozers, transport tractors, dredges, welding units, welding transformers, and batch mixers. Taking into account that 5 wells of the site (1 well – Northern Shady and 4 – Western Shady) according to “Report on primary engineering and environmental survey and selection of the plots for construction of the additional wells at Khauzak-Shady Block” are placed within Dengizkul Lake water protection zone the project made decisions on minimization of ecological risks due to operation of F&L storage implemented at this stage. It is an arrangement of the reinforced moisture-proof and diked areas for materials and F&L storage. During front end construction works on the drill site it is necessary to perform large scope of earthworks. In which case detailed design provides operations directed to preservation of soil cover from the territory of plot allocated for drilling. Characteristic of restoration works is shown in Section 5 of this paper. Installation of derrick and drilling equipment includes transportation and installation of rig and rig equipment, concreting of area under rig, for the equipment, as well as performing of insulating layer in well sludge pit with clay foundation and use of the reinforced polymeric film.

Construction of Wells Duration of two consecutive processes of well drilling and casing depends on their design. Production well drilling working project documentation develops the designs which have small differences in relation to drilling diameter and intervals. The following well design is accepted: - straight hole guide – backfilled; - extended direction – installed for prevention of possible caving and caving ground during drilling-out of absorbing limestones of the Bukhara Paleogene stratum; - conductor – installed for isolation of limestones of the Bukhara Paleogene stage liable to water loss, with the installation of casing shoe in the dense argillaceous deposits of the Cenonian stage; - intermediate casing – is lowered for isolation of permeable horizons of cretaceous deposits and Kimmeridgian-Tithonian fluid salt strata; - production casing – the main element of well design, is lowered to the total depth according to the development project. Due to high content in gas of aggressive components (H2S and CO) production and intermediate casings are equipped with anticorrosive strings of ɋ-75 grade. In zone of salt-anhydrite formation the intermediate casing is equipped with the collapse high resistance casing strings with breakdown pressure not less than 49.0MPa. The listed design elements will allow reducing probability of occurrence of emergencies. It should be noted that the accepted design of all types of well meets the requirements of bowels and environmental protection that will allow excluding of possible contamination of produced waters and fluids cross-flow between layers not only in drilling and operation, but also following completion of works and well abandonment.

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 43

Well Drilling and Casing

According to the development P&ID of Khauzak-Shady Block of Dengizkul field it is proposed construction of vertical and directional wells. P&ID includes: - arrangement and use of drilling and ancillary equipment; - performing of drilling works accompanied by preparation and use of drilling mud; - cleaning and disposal of the waste drilling mud and cuttings. Drilling of wells will be performed by rotary system with use of various mechanisms: drill rigs complete with derrick and auxiliary hoists, tools, reinforced concrete or metal tanks. For drilling mud cleaning there will be operated circulating system with mud screen and trays system taken as a whole with clay mixer in which there is preparation of drilling muds. Cement mortars preparation units are the cementing unit and cement mixer. Based on the analysis of actual materials the following basic requirements for drilling mud technological parameters are established: - drilling mud composition shall be made for increase of drilling capacity of rocks and use of components with the least class of hazard; - provision with necessary structural-mechanical, flow characteristics and aggregative stability during circulation along the well bore; - retention of resistivity of rocks composing well log; - comply with balance in “reservoir-well” hydrodynamic system for exception of formation fluid inflow into well; - timely prevention of producing reservoir characteristics deterioration. Proceeding from the requirements above and taking into account geological factors, the hydro-geological characteristic and saturating produced water salinization at Khauzak-Shady Block of Dengizkul field there are proposed for drilling the bentonite slurry treated with water- soluble polymers, polymer-carbonate muds laced with hydrogen sulfide chemical scavenger. Following completion of hole drilling and production string cementing the drilling mud forced out of well when cementing is directed to spare capacity. Then this mud, as well as mud in mud pits is transported by means of filling transport to the nearest well to be drilled.

Drilling muds are prepared in special drilling mud preparation area in clay mixer and are supplied through the tray to the rock-drilling machine. Drilling muds are used repeatedly, that’s why it is necessary to clean them following pull out of waste drilling mud together with drilling cuttings. For this purpose following rock hoisting with the waste drilling muds the mix is supplied to circulating system. For preparation, treatment and cleaning of drilling muds shall be used standard equipment of circulating system: clay mixer, mud screen, hydrocyclone desander, mud desilter, centrifuge, and degasser. Drilling mud circulates over one cycle; non-cleaning part of drilling mud is dumped through special tray to well moisture-proof sludge pit. Cleaned drilling muds transported through the tray near to clay mixer are added by portions of newly prepared mud, and co-mud is directed again through the tray to drill rig. There are formed two types of waste – drilling cuttings and waste drilling in cyclic system of preparation, use and cleaning of drilling muds, which are dumped to well moisture- proof sludge pit. For the prevention of drilling waste water penetration into soils it is necessary to perform concreting of area round a well and muds preparation areas.

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 44

Drilling waste waters also enter to well moisture-proof sludge pit for the subsequent treatment by means of coagulator and flocculant. Well drilling process is accompanied by hole fixing process and isolation of strata from each other. It includes following type of works: well hole conditioning for landing and its cementing, i.e. filling of borehole annulus with cementing slurry. Lowering the casings is performed by means of special devices and accessories (casing shoe, check valves, stabilizer. and etc.). They promote fuller replacement of the drilling mud with cementing slurry and facilitate lowering the casings.

Well Testing (development)

All methods of well testing (development) are based on reduction of the fluid column in well below formation pressure for creation of depression sufficient for assurance of reservoir gas movement in the well. For the completion of production horizons there shall be used cumulative perforation. Swabbing is performed through replacement of the drilling mud with water with the subsequent level and aeration decreasing. Filed development is provided by means of drill rigs, development duration – 12-15 days depending on well type.

Final Works Following Completion of Well Construction

This type of works represents the works package on drilling cuttings disposal, roll up of sludge pit, cleaning and restoration temporarily allocated area. This stage includes the following operations: - rigging down and its transportation to the new point; - disposal of drilling cuttings and roll up of sludge pits in accordance with the developed Rules; - foundations and trays laying; - garbage disposal; - cleaning of the oilrig territory; - filling of pits, ditches, trenches with excavated ground; - leveling of the site; - restoration of soil layer by returning of the removed soil horizon from temporary storage areas. Taking into account that 5 wells of the Khauzak site (1 well – Northern Shady and 4 – Western Shady) are placed within Dengizkul Lake water protection zone the project made decisions on minimization of ecological risks implemented at final stage: - in the stage of well development at Khauzak either additional leak-proof mud pit is constructed outside water protection area of the Dengizkul lake (with capacity 20 % larger than capacity specified by project in accordance with Regulations for Shady) or waste is disposed of at Drilling Waste Landfill. During well development at North Shady waste will be processed and buried only in additional mud pit outside water protection zone in accordance with the regulations for Shady; - following completion of well construction and development, drilling waste water shall be treated in the well sludge pit in accordance with the provisions of Rules, and be supplied for the further reuse for drill site needs, including use of clarified waters for dust suppression (humidification) in the territory of drilling site and access roads that is extremely pertinent for the well construction area and reasonable in terms of water management;

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 45

- after treatment and pumping of drilling wastewater from mud pit of wells No 1053, 1055, 1056, 1057, 1058 drilling sludge and used drilling mud are completely removed by special machinery to additional mud pits, constructed outside water protection area of the Dengizkul lake or for wells located at Khauzak disposal of waste at Drilling waste Landfill is provided. - disposal of drilling cuttings and waste drilling muds is performed in auxiliary sludge pit in accordance wit the provisions of Rules; - following disposal the drilling cuttings of the wells No. 1053, 1-55, 1056, 1057 and 1058 shall be buried in auxiliary sludge pit located outside of Dengizkul Lake water protection zone; - the final stage of works on the drill sites is roll up of well and auxiliary sludge pit, and full technical restoration of the lands. It should be added that alternative variant of drilling cuttings disposal following completion of well construction and development on the Khauzak site is removal of drilling cuttings and mud solids from well pits by means of special vehicles based on the Rules for Drilling cuttings landfill of Khauzak GPD. Thus, from the analysis of the provided information it is visible that additional wells is provided to connect to existing cluster sites and utilities with no needs for re-equipment or reconstruction of existing facilities. In this connection necessity for construction of new long- distance roads, power distribution lines, pipelines which may have significant environmental impact is excluded.

Types of Impact on Natural and Technical Systems

During implementation of activity planned by the project there will be integrated effect in a varying degree on all components of ecosystem as at the modern stage of the development of science and technology there are no such technologies of searching, exploration and production of raw hydrocarbons which would be implemented without adverse environmental impact. Analysis of planned activity has shown that construction of wells at Khauzak-Shady Block is associated with ecological risk and related environmental impacts. Impact of production activity in conjunction with activization of hazardous exogenous and endogenous geodynamic phenomena on environmental medium (atmospheric air, surface and subsurface waters, soil, microbiota, flora, fauna and human) occurs at unauthorized (above permitted standard) access allowance of pollutants ingress from contaminants emission sources into natural objects and/or inadequacy of the technical and process solutions in the project to acceptable risk level (technical capacity and environmental resistance). During production activity the sources of physical and chemical impacts on environment and human health are the diesel units, drilling pumps, clay mixers, cementing pumps, transport and other special equipment. Standard pollutants emission sources during well drilling, casing, testing are the diesel power stations, power ICE, and F&L tanks. Atmospheric air impact is due to: - ingress into the atmosphere of pollutants containing in emissions from sources of main and ancillary equipment; - operation of noisy sources having acoustical effect. Thus, the emitted substances are the light hydrocarbons, soot, as well as carbon, nitrogen, sulfur oxides, formaldehyde and benzapyrene. All of them have adverse environmental impact. Besides chemical pollution of atmospheric air construction of well is the source of acoustical environmental impact which occurs due to rock-drilling machine operation being the

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 46 source of noise. Physical atmospheric air impact is caused by sound pressure of various level which through atmosphere affects the human and animals. There is direct land resources impact. Temporary use of the land areas is provided for construction of the following facilities: drill rig with the ancillary equipment, equipment and materials storage depots, base camp, for F&L sites, and etc. Provisional land allocation for rock-drilling machine placement and residential complex location will make 3.5 hectares. The main impact on top soil occurs due to performing of front end construction works, including: - cleaning of the areas allocated for construction of vegetation (if any); - leveling of the sites; - construction of temporary roads and access roads providing delivery of materials and mechanisms in the region; - temporary storage of materials; - arrangement of on-site passages for movement of construction equipment and delivery of construction materials. Land resources impact is also possible due to deposition of the harmful substances containing in air emissions, due to possible spillages of oil products and chemicals and due to waste products. In the course of construction and operation of the projected wells the possible pollution sources both soils and subsurface waters may be: - surface drill sites water drainage; - filtration leaks of harmful substances from tanks, equipment and other facilities; - emergency releases and waste waters flowing; - waste products: waste drilling mud, drilling waste waters and drilling cuttings; - chemicals and fuel and lubricants. During performance of all types of works the following types of drains are formed: - utility fluids; - during well drilling there are produced drilling waste waters and waste drilling mud. Project construction is associated with the terrain disturbance not only in the territory of drill site, but also in an adjacent zone. There will be observed wild animals migration when performing construction and erection operations under the influence of noise from the used technique and thermal effects. Emergency releases of reservoir fluid (open well flowing) may cause the maximum damage to flora and fauna, expressed in their degradation. Basic components of the anthropogenic impact adversely influencing on biocenosis may include air emissions. Their components composition during well construction may include mainly the pollutants which are products of liquid hydrocarbon fuel combustion, internal combustion engines of drill rig and diesel generators. All these emissions are mainly accumulated within the sanitary protection zone. Nature of anthropogenic impact on the geological environment may be various, depending on applied means system and scales of production. Stipulated well construction have an impact on the geological environment “from above” (from a surface) and “from below”. During well construction the impact on the geological environment will occur “from above” through process products and waste products. Root causes of pollutants ingress are the poor quality of sludge pits waterproofing. Soil and shallow head waters are the most exposed to contamination. Impact on the geological environment “from below” may occur upon contact of wash liquid with the geological environment, thus the part of mud may ingress into strata (absorption)

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 47 and on the contrary drilling mud dilution. It should be noted that such impact has short-term nature and it is known from well construction experience that the wash liquid is not deeply penetrated. Atmospheric air, vegetative-ground cover, subsurface waters impact during well drilling has short-term nature only for construction period.

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 48

3 ENVIRONMENTAL AND SOCIO-ECONOMIC CONSEQUENCES

3.1 EXPECTED EMISSIONS

The following normative documents and recommended practice were used dirung development of this Section: 1. Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No.491 dated on December, 31, 2001 “On Approval of the Provision on State Environmental Expertise in the Republic of Uzbekistan”. 2. Ecologist-expert Handbook. State Natural Conservation Committee of the Republic of Uzbekistan. Tashkent, 2009. 3. RD 39.0-140-2012. Procedure for Environmental Inventories for oil-and-gas production and oil-and-gas refining enterprises. OJSC “UzLITIneftgaz”, Tashkent, 2012. 4. Oil and oil products losses norms in storage, receiving, issue and transportation. Goskomnefteproduct of UzSSR, Tashkent, 1986. 5. KMK 2.01-01-94 Climatic and physical-geological data for designing. Tashkent, 1994. 6. Instruction on inventory of pollution sources and standardization of emissions of pollutants into the atmospheric air for the enterprises of the Republic of Uzbekistan. Goskompriroda of the Republic of Uzbekistan, Order No.105 dated 15.12.2005, Tashkent. This section describes environmental impact sources during the construction of production wells at Khauzak-Shady Block of Dengizkul field. There is provided their qualitative and quantitative indicators. Total depth of vertical wells is equal to 2600m and directional one – 3070m. Well construction period makes 162 days. Atmospheric air pollution sources are: - internal combustion engines (ICE) – (well drilling, casing, testing, and electric power generation); - F&L tanks; - flare during well testing. For definition of the parameters of sources of emissions of pollutants into the atmosphere and calculation of quantitative and qualitative composition of emissions there was used the data of drilling program for construction of one well. Northern Shady Block Vertical Well No.1053 Pollution Source – Drill Rig ICE Exhaust Pipe

Stationary source of emissions. Release source – ICE Production process is well construction. Pollutants - products of diesel fuel combustion in ICE chamber. Source height – 3m, diameter – 0.2 m. Exhaust gas temperature is 120°C. Diesel fuel flow rate for ICE operation makes 229.0t. Operating time allowed for well construction makes 162 days or 3888 hours in around-the-clock work. Calculation of the harmful substances emissions which are discharged in atmosphere during ICE operation will make [10] Wɷi = (1/1000) x qi x GT,

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 49

where Wɷi - amount of substances emmited into the atmosphere in ICE exhaust gases, t/well; GT – fuel flow rate, t/well; qi - emission of i-harmful substance falling on one kg of diesel fuel during operation of stationary diesel unit taking into account aggregate of modes comprising operating cycle, fuel g/kg; defined according to the Table 1.6.3; 1/1000 – conversion factor from “kg” to “t”. According to the basic classification features of capacity, specific speed, number of cylinders of the diesel engines this unit refers to group B – high-power, moderate specific speed. Values of emissions qi (fiel g/kg) for stationary diesel units of group B of foreign manufacture meet the requirements of environmental laws of EC countries, value of emissions qi (fuel g/kg), as per method [5], decrease by relevant factors and are equal to: - carbon oxide – 11g/kg; - nitrogen dioxide – 14g/kg; - hydrocarbons – 2.9g/kg; - soot – 0.4g/kg; - sulfur dioxide – 6.0g/kg; - formaldehyde – 0.1g/kg; - benzapyrene – 1.3 ɯ 10/kg One-time maximum emission (g/s) of harmful substances into the atmosphere is defined according to the formula: Ɇi = Wiɯ106 / (nɯ3600), Where: n - operation time, 3888 h; Pollutants amount is equal to: -3 ɆNO2 = 229.0 ɯ 14 ɯ 10 = 3.206t/well or 3.206 ɯ 1000000: (3888 ɯ 3600) = 0.22905g/s; -3 MCO = 229.0 ɯ 11 ɯ 10 = 2.519t/well = 0.17997g/s; -3 MSO2 = 229.0 ɯ 6.0 ɯ 10 = 1.374t/well = 0.09816g/s; -3 MGH = 229.0 ɯ 2.9 ɯ 10 = 0.6641t/well = 0.04744g/s; -3 MSOOT = 229.0 ɯ 0.4 ɯ 10 = 0.0916t/well = 0.00654g/s; -3 MCH2O = 229.0 ɯ 0.1 ɯ 10 = 0.0229t/well = 0.00164g/s; -5 -3 Mds = 229.0 ɯ 1.3 ɯ 10 ɯ 10 = 0.000003t/well = 0.0000002g/s. Steam-and-gas mixture characteristics are calculated on the basis of total amount of products of complete fuel combustion in ICE. Volume of 1kg products of fuel combustion under normal conditions and at air density of 1.2928kg/m3 will make: 3 V0 = 22.872: 1.2928 = 17.6923m /kg Taking into account steam-and-gas mixture temperature downstream of exhaust pipe equal to 120ɨɋ the gas volume will make: Vt = V0ɯ (1 + Ɍgas: 273) 3 Vt = 17.692 ɯ (1 + 120: 273) = 25.4691m /kg Exhaust gases emission linear velocity is defined: Y = (4 ɯ V) : (3.14 ɯ D2) Total exhaust gases emission volume entering from ICE exhaust pipe during fuel combustion will make: V = 229000 ɯ 25.469 = 5832401m3 Exhaust gases emission volume is equal to: V = 5832401: 3888: 3600 = 0.417m3/s Exhaust gases emission velocity is equal to:

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 50

Y = (4 ɯ 0.417): (3.14 ɯ 0.22) = 13.3m/s

Pollution Source – Diesel Generator Exhaust Pipe Stationary source of emissions. Release source – ICE Production process is well construction. Pollutants - products of diesel fuel combustion in ICE chamber. Source height – 3m, diameter – 0.2 m. Exhaust gas temperature is 120°C. Diesel fuel flow rate for ICE operation makes 229.0t. Operating time allowed for well construction makes 162 days or 3888 hours in around-the-clock work. Emissions of pollutants into the atmosphere are equal to the previous source: -3 ɆNO2 = 229.0 ɯ 14 ɯ 10 = 3.206t/well = 0.22905g/s; -3 MCO = 229.0 ɯ 11 ɯ 10 = 2.519t/well = 0.17997g/s; -3 MSO2 = 229.0 ɯ 6.0 ɯ 10 = 1.374t/well = 0.09816g/s; -3 MGH = 229.0 ɯ 2.9 ɯ 10 = 0.6641t/well = 0.04744g/s; -3 MSOOT = 229.0 ɯ 0.4 ɯ 10 = 0.0916t/well = 0.00654g/s; -3 MCH2O = 229.0 ɯ 0.1 ɯ 10 = 0.0229t/well = 0.00164g/s; -5 -3 Mds = 229.0 ɯ 1.3 ɯ 10 ɯ 10 = 0.000003t/well = 0.0000002g/s. Exhaust gases emission volume – 0.417m3/s Exhaust gases emission velocity – 13.3m/s.

Pollution Source – Diesel Fuel Tank Stationary source of emissions. Release source – 20m3 diesel fuel tank Production process is receiving, storage and shipment of diesel fuel and oil. Pollutants are hydrocarbons. Source height is 3m, diameter is 0.1m. Source operating time is 24h/d, 3888h/well. Steam-and-gas emission temperature is accepted 25ɨɋ. Steam-and-gas emission volume is 0.033m3/s. Steam-and-gas emission velocity – 4.2km/s (meteorological station “Bukhara”). Amount of pollutants into the atmosphere is defined by summation of losses according to “Instruction on inventory of pollution sources and standardization of emissions of pollutants into the atmospheric air for the enterprises of the Republic of Uzbekistan” [10]. Rates of natural loss for diesel fuel are equal to 0.03kg/t - autumn-winter and spring-summer seasons. Diesel fuel entry makes 183t/well. Amount of hydrocarbons emitted from source taking into account natural loss will make: M = (0.03 + 0.03) : 2 ɯ 183.0 ɯ 10-3 = 0.00549t/well =0.00039g/s.

Pollution Source – Diesel Fuel Tank Stationary source of emissions. Release source – 30m3 diesel fuel tank Production process is receiving, storage and shipment of diesel fuel and oil. Pollutants are hydrocarbons. Source height is 3m, diameter is 0.1m. Source operating time is 24h/d, 3888h/well. Steam-and-gas emission temperature is accepted 25ɨɋ. Steam-and-gas emission volume is 0.033m3/s. Steam-and-gas emission velocity – 4.2km/s (meteorological station “Bukhara”). Diesel fuel entry makes 275t/well. Amount of hydrocarbons emitted from source taking into account natural loss will make: M = (0.03 + 0.03) : 2 ɯ 275.0 ɯ 10-3 = 0.00825t/well =0.00059g/s.

Vertical Well No.1054

Atmospheric air pollution sources, pollutants quantitative and qualitative composition are accepted similarly to well No.1053 and are shown in the Table 3.1.

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 51

Western Shady Block Vertical Well No.1080 Pollution Source – Drill Rig ICE Exhaust Pipe

Stationary source of emissions. Release source – ICE Production process is well construction. Pollutants - products of diesel fuel combustion in ICE chamber. Source height – 3m, diameter – 0.2 m. Exhaust gas temperature is 120°C. Diesel fuel flow rate for ICE operation makes 229.0t. Operating time allowed for well construction makes 162 days or 3888 hours in around-the-clock work. Calculation of emissions of the harmful substances which are emitted into the atmosphere during ICE operation is made similarly to well No.1054. Gross emissions into the atmosphere are accepted equal to well No.1054 and will make: -3 ɆNO2 = 229.0 ɯ 14 ɯ 10 = 3.206t/well = 0.22905g/s; -3 MCO = 229.0 ɯ 11 ɯ 10 = 2.519t/well = 0.17997g/s; -3 MSO2 = 229.0 ɯ 6.0 ɯ 10 = 1.374t/well = 0.09816g/s; -3 MGH = 229.0 ɯ 2.9 ɯ 10 = 0.6641t/well = 0.04744g/s; -3 MSOOT = 229.0 ɯ 0.4 ɯ 10 = 0.0916t/well = 0.00654g/s; -3 MCH2O = 229.0 ɯ 0.1 ɯ 10 = 0.0229t/well = 0.00164g/s; -5 -3 Mds = 229.0 ɯ 1.3 ɯ 10 ɯ 10 = 0.000003t/well = 0.0000002g/s. Exhaust gases emission volume – 0.417m3/s Exhaust gases emission velocity – 13.3m/s.

Pollution Source – Diesel Generator Exhaust Pipe Stationary source of emissions. Release source – ICE Production process is well construction. Pollutants - products of diesel fuel combustion in ICE chamber. Source height – 3m, diameter – 0.2 m. Exhaust gas temperature is 120°C. Diesel fuel flow rate for ICE operation makes 229.0t. Operating time allowed for well construction makes 162 days or 3888 hours in around-the-clock work. Emissions of pollutants into the atmosphere will make: -3 ɆNO2 = 229.0 ɯ 14 ɯ 10 = 3.206t/well = 0.082692g/s; -3 MCO = 229.0 ɯ 11 ɯ 10 = 2.519t/well = 0.17997g/s; -3 MSO2 = 229.0 ɯ 6.0 ɯ 10 = 1.374t/well = 0.09816g/s; -3 MGH = 229.0 ɯ 2.9 ɯ 10 = 0.6641t/well = 0.04744g/s; -3 MSOOT = 229.0 ɯ 0.4 ɯ 10 = 0.0916t/well = 0.00654g/s; -3 MCH2O = 229.0 ɯ 0.1 ɯ 10 = 0.0229t/well = 0.00164g/s; -5 -3 Mds = 229.0 ɯ 1.3 ɯ 10 ɯ 10 = 0.000003t/well = 0.0000002g/s. Exhaust gases emission volume – 0.417m3/s Exhaust gases emission velocity – 13.3m/s.

Pollution Source – Diesel Fuel Tank Stationary source of emissions. Release source – 20m3 diesel fuel tank Production process is receiving, storage and shipment of diesel fuel and oil. Pollutants are hydrocarbons. Source height is 3m, diameter is 0.1m. Source operating time is 24h/d, 3888h/well. Steam-and-gas emission temperature is accepted 25ɨɋ. Steam-and-gas emission volume is 0.033m3/s. Steam-and-gas emission velocity – 4.2km/s (meteorological station “Bukhara”). Amount of pollutants is defined taking into account rates of natural loss for diesel fuel equal to 0.03kg/t - autumn-winter and spring-summer seasons. Diesel fuel entry makes 183t/well.

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 52

Amount of hydrocarbons emitted from source taking into account natural loss will make: M = (0.03 + 0.03) : 2 ɯ 183.0 ɯ 10-3 = 0.00549t/well =0.00039g/s.

Pollution Source – Diesel Fuel Tank Stationary source of emissions. Release source – 30m3 diesel fuel tank Production process is receiving, storage and shipment of diesel fuel and oil. Pollutants are hydrocarbons. Source height is 3m, diameter is 0.1m. Source operating time is 24h/d, 3888h/well. Steam-and-gas emission temperature is accepted 25ɨɋ. Steam-and-gas emission volume is 0.033m3/s. Steam-and-gas emission velocity – 4.2km/s (meteorological station “Bukhara”). Diesel fuel entry makes 275t/well. Amount of hydrocarbons emitted from source taking into account natural loss will make: M = (0.03 + 0.03) : 2 ɯ 275.0 ɯ 10-3 = 0.00825t/well =0.00059g/s. Vertical Well No.1081

Atmospheric air pollution sources, pollutants quantitative and qualitative composition are accepted similarly to well No.1080 and are shown in the Table 3.1.

Khauzak Site Directional Well No.1055 Pollution Source – Drill Rig ICE Exhaust Pipe Stationary source of emissions. Release source – ICE Production process is well construction. Pollutants - products of diesel fuel combustion in ICE chamber. Source height – 3m, diameter – 0.2 m. Exhaust gas temperature is 120°C. Diesel fuel flow rate for ICE operation makes 250.0t. Operating time allowed for well construction makes 162 days or 3888 hours in around-the-clock work. Calculation of emissions of the harmful substances which are emitted into the atmosphere during ICE operation is made similarly to well No.1053. Pollutants amount equal to: -3 ɆNO2 = 250.0 ɯ 14 ɯ 10 = 3.5t/well = 0.25006g/s; -3 MCO = 250.0 ɯ 11 ɯ 10 = 2.75t/well = 0.19647g/s; -3 MSO2 = 250.0 ɯ 6.0 ɯ 10 = 1.5t/well = 0.10716g/s; -3 MGH = 250.0 ɯ 2.9 ɯ 10 = 0.725t/well = 0.05179g/s; -3 MSOOT = 250.0 ɯ 0.4 ɯ 10 = 0.1t/well = 0.00714g/s; -3 MCH2O = 250.0 ɯ 0.1 ɯ 10 = 0.0250t/well = 0.00179g/s; -5 -3 Mds = 250.0 ɯ 1.3 ɯ 10 ɯ 10 = 0.000003t/well = 0.0000002g/s. Exhaust gases emission volume – 0.455m3/s Exhaust gases emission velocity – 14.49m/s. Pollution Source – Diesel Generator Exhaust Pipe Stationary source of emissions. Release source – ICE Production process is well construction. Pollutants - products of diesel fuel combustion in ICE chamber. Source height – 3m, diameter – 0.2 m. Exhaust gas temperature is 120°C. Diesel fuel flow rate for ICE operation makes 250.0t. Operating time allowed for well construction makes 162 days or 3888 hours in around-the-clock work. Calculation of emissions of the harmful substances which are emitted into the atmosphere during ICE operation taking into account specific emissions is made similarly to previous source. Pollutants amount equal to: -3 ɆNO2 = 250.0 ɯ 14 ɯ 10 = 3.5t/well = 0.25006g/s; -3 MCO = 250.0 ɯ 11 ɯ 10 = 2.75t/well = 0.19647g/s;

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 53

-3 MSO2 = 250.0 ɯ 6.0 ɯ 10 = 1.5t/well = 0.10716g/s; -3 MGH = 250.0 ɯ 2.9 ɯ 10 = 0.725t/well = 0.05179g/s; -3 MSOOT = 250.0 ɯ 0.4 ɯ 10 = 0.1t/well = 0.00714g/s; -3 MCH2O = 250.0 ɯ 0.1 ɯ 10 = 0.0250t/well = 0.00179g/s; -5 -3 Mds = 250.0 ɯ 1.3 ɯ 10 ɯ 10 = 0.000003t/well = 0.0000002g/s. Exhaust gases emission volume – 0.455m3/s Exhaust gases emission velocity – 14.49m/s.

Pollution Source – Diesel Fuel Tank Stationary source of emissions. Release source – 20m3 diesel fuel tank Production process is receiving, storage and shipment of diesel fuel and oil. Pollutants are hydrocarbons. Source height is 3m, diameter is 0.1m. Source operating time is 24h/d, 3888h/well. Steam-and-gas emission temperature is accepted 25ɨɋ. Steam-and-gas emission volume is 0.033m3/s. Steam-and-gas emission velocity – 4.2km/s (meteorological station “Bukhara”). Amount of pollutants is defined taking into account rates of natural loss for diesel fuel equal to 0.03kg/t - autumn-winter and spring-summer seasons. Diesel fuel entry makes 225t/well. Amount of hydrocarbons emitted from source taking into account natural loss will make: M = (0.03 + 0.03) : 2 ɯ 225.0 ɯ 10-3 = 0.00675t/well =0.00048g/s.

Pollution Source – Diesel Fuel Tank Stationary source of emissions. Release source – 30m3 diesel fuel tank Production process is receiving, storage and shipment of diesel fuel and oil. Pollutants are hydrocarbons. Source height is 3m, diameter is 0.1m. Source operating time is 24h/d, 3888h/well. Steam-and-gas emission temperature is accepted 25ɨɋ. Steam-and-gas emission volume is 0.033m3/s. Steam-and-gas emission velocity – 4.2km/s (meteorological station “Bukhara”). Diesel fuel entry makes 275t/well. Amount of hydrocarbons emitted from source taking into account natural loss will make: M = (0.03 + 0.03) : 2 ɯ 275.0 ɯ 10-3 = 0.00825t/well =0.00059g/s.

Proceeding from uniformity of the drilling equipment, well construction method, conformity of the construction time, the fuel flow rate, atmospheric air pollution sources, and pollutants quantitative and qualitative composition for the directional wells No.No.1056, 1057, and 1058 is accepted similarly to well No.1055. It should be noted that for the purpose of exception encironmental impact within the water protection zone, diesel fuel tanks of wells No.No.1053, 1055, 1056, 1057, and 1058 will be installed on the moisture-proof and embanked sites outside of 500m from water line of Dengizkul Lake at the elevation of 182.2m. Thus, during drilling of 8 production wells at Khauzak-Shady Block 131.935808 tons of pollutants of seven enter into the atmosphere. Characteristics of air impact sources during well construction are shown in the Table 3.1.

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 54

Table 3.1 – Atmospheric Air Impact Source Characteristics

Component Rated Emission Impact Source t/well g/s Northern Shady Verttical Well No.1053 ICE (2 pcs.) Nitrogen dioxide 6.412 0.4581 Carbon oxide 5.038 0.35994 Sulphur dioxide 2.748 0.19632 Hydrocarbons 1.3282 0.09488 Soot 0.1832 0.01308 Formaldehyde 0.0458 0.00328 Benzapyrene 0.000006 0.0000004 20m3 diesel fuel tank Hydrocarbons 0.00549 0.00039 30m3 diesel fuel tank Hydrocarbons 0.00825 0.00059 Total from well: 15.768946 1.1265804 Vertical Well No.1054 ICE (2 pcs.) Nitrogen dioxide 6.412 0.4581 Carbon oxide 5.038 0.35994 Sulphur dioxide 2.748 0.19632 Hydrocarbons 1.3282 0.09488 Soot 0.1832 0.01308 Formaldehyde 0.0458 0.00328 Benzapyrene 0.000006 0.0000004 20m3 diesel fuel tank Hydrocarbons 0.00549 0.00039 30m3 diesel fuel tank Hydrocarbons 0.00825 0.00059 Total from well: 15.768946 1.1265804 Northern Shady Verttical Well No.1080 ICE (2 pcs.) Nitrogen dioxide 6.412 0.4581 Carbon oxide 5.038 0.35994 Sulphur dioxide 2.748 0.19632 Hydrocarbons 1.3282 0.09488 Soot 0.1832 0.01308 Formaldehyde 0.0458 0.00328 Benzapyrene 0.000006 0.0000004 20m3 diesel fuel tank Hydrocarbons 0.00549 0.00039 30m3 diesel fuel tank Hydrocarbons 0.00825 0.00059 Total from well: 15.768946 1.1265804 Vertical Well No.1081 ICE (2 pcs.) Nitrogen dioxide 6.412 0.4581 Carbon oxide 5.038 0.35994 Sulphur dioxide 2.748 0.19632 Hydrocarbons 1.3282 0.09488 Soot 0.1832 0.01308 Formaldehyde 0.0458 0.00328 Benzapyrene 0.000006 0.0000004 20m3 diesel fuel tank Hydrocarbons 0.00549 0.00039 30m3 diesel fuel tank Hydrocarbons 0.00825 0.00059 Total from well: 15.768946 1.1265804

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 55

Component Rated Emission Impact Source t/well g/s Khauzak Directional Well No.1055 ICE (2 pcs.) Nitrogen dioxide 7 0.50012 Carbon oxide 5.5 0.39294 Sulphur dioxide 3.0 0.21432 Hydrocarbons 1.45 0.10358 Soot 0.2 0.01428 Formaldehyde 0.05 0.00358 Benzapyrene 0.000006 0.0000004 20m3 diesel fuel tank Hydrocarbons 0.00675 0.00048 30m3 diesel fuel tank Hydrocarbons 0.00825 0.00059 Total from well: 17.215006 1.2298904 Directional Well No.1056 ICE (2 pcs.) Nitrogen dioxide 7 0.50012 Carbon oxide 5.5 0.39294 Sulphur dioxide 3.0 0.21432 Hydrocarbons 1.45 0.10358 Soot 0.2 0.01428 Formaldehyde 0.05 0.00358 Benzapyrene 0.000006 0.0000004 20m3 diesel fuel tank Hydrocarbons 0.00675 0.00048 30m3 diesel fuel tank Hydrocarbons 0.00825 0.00059 Total from well: 17.215006 1.2298904 Directional Well No.1057 ICE (2 pcs.) Nitrogen dioxide 7 0.50012 Carbon oxide 5.5 0.39294 Sulphur dioxide 3.0 0.21432 Hydrocarbons 1.45 0.10358 Soot 0.2 0.01428 Formaldehyde 0.05 0.00358 Benzapyrene 0.000006 0.0000004 20m3 diesel fuel tank Hydrocarbons 0.00675 0.00048 30m3 diesel fuel tank Hydrocarbons 0.00825 0.00059 Total from well: 17.215006 1.2298904 Directional Well No.1058 ICE (2 pcs.) Nitrogen dioxide 7 0.50012 Carbon oxide 5.5 0.39294 Sulphur dioxide 3.0 0.21432 Hydrocarbons 1.45 0.10358 Soot 0.2 0.01428 Formaldehyde 0.05 0.00358 Benzapyrene 0.000006 0.0000004 20m3 diesel fuel tank Hydrocarbons 0.00675 0.00048 30m3 diesel fuel tank Hydrocarbons 0.00825 0.00059 Total from well: 17.215006 1.2298904

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 56

Note. Atmospheric air impact sources characteristics for vertical wells No.No.1054, 1081 are accepted equal to wells No.No.1053 and 1080 respectively, for directional wells No.No.1056, 1057, 1058 – equal to well No.1055. List of pollutants during well construction is shown in the Table 3.2.

Table 3.2 – List of Pollutants during Additional Well Construction

Gross Emissions, ton Component MPC, mg/m3 Hazard Class g/s t/well Nitrogen dioxide 0.085 2 3.83288 53.648 Carbon oxide 5.000 4 3.01152 42.152 Sulphur dioxide 0.500 3 1.64256 22.992 Hydrocarbons 1.000 4 0.80204 11.22776 Soot 0.150 3 0.10944 1.5328 Formaldehyde 0.035 2 0.02744 0.3832 Benzapyrene 0.1Pg 100m3 1 0.0000032 0.000048 TOTAL 9.4258832 131.935808

Gross emissions into the atmosphere during well construction are shown in the Table 3.3.

Table 3.3 – Gross Emissions into the Atmosphere during Well Construction

Gross Emissions, t Northern Shady Western Shady Khauzak Component Vertical Wells Vertical Wells Directional Wells (2 pcs.) (2 pcs.) (4 pcs.) Nitrogen dioxide 12.824 12.824 28 Carbon oxide 10.076 10.076 22 Sulphur dioxide 5.496 5.496 12.0 Hydrocarbons 2.68388 2.68388 5.86 Soot 0.3664 0.3664 0.8 Formaldehyde 0.0916 0.0916 0.2 Benzapyrene 0.000012 0.000012 0.000024 TOTAL 31.537892 31.537892 68.860024

Khauzak-Shady Block Major Blowout during Well Development Pollution Source – Horizontal Outlet Flare

Intermittent action source during well development (testing) Pollutants – products of gas combustion. Calculation of emissions of harmful substances into the atmosphere is made according to the RD [2] by the following formula:

M = Mse x Qg/s, t/year Where: Mse – pollutants specific emissions, g/g, accepted according to the Table 2 of the RD [2]; Q – mass flow, g/s.

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 57

Specific emissions for the horizontal flare are equal to: - carbon oxide – 0.02g/g; - nitrogen oxides in terms of nitrogen dioxide – 0.003g/g - methane – 0.0005g/g. For silfur disoxide gas and gas-condensate fields amount of sulfur dioxide emissions shall be calculated according to the following formulas:

MSO2 = 0.02 [S]m * Q * Q [S]m = [H2S]m + [RsH]m

where: [S]m – mass fraction of total sulfur in burning hydrocarbon mixture, %; Q – mass flow of hydrocarbon mixture ans natural gas, g/s; Q - hydrocarbon mixture combustion efficiency factor, established on the basis of experimental researches: - for gas and gas-condensate mixtures – 0.9984. Considering that the gas flow rate during well testing is constant major blowout calculations are made in terms of one well.

Vertical Well No.1053

Volume of gas entering to the flare makes 250000m3. Testing time is 35h/well. Gas density is 0.769kg/m3. Gas flow rate in unit time taking into account density will make: B = 25000m3 : 35 hours : 3600 = 1.984m3/s x 0.769kg/m3 x 103 = 1526g/s. Pollutants amount during testing (development): MCO = 0.02 x 1526g/s = 30.52g/s or 30.52 x 35 x 3600 x 10-6 = 3.84552t/well MCH4 = 0.0005 ɯ 1526 = 0.763g/s = 0.09614t/well MNO2 = 0.003 ɯ 1526 x 0.8 = 3.6624g/s = 0.46146t/well MNO = 0.003 ɯ 1526 x 0.2 = 0.9156g/s = 0.11536t/well Msoot = 0.002 ɯ 1526 x 3.052g/s = 0.38455t/well Gas hydrogen sulfide content is 4.25%. MSO2 = 0.02 ɯ 4.25 x 1526 x 0.9984 = 129.50246g/s = 16.31731t/well.

Rated Emission Pollution Source Component t/well 1 2 3 Horizontal Outlet Flare Nitrogen dioxide 0.46146 Nitrogen oxide 0.11536 Carbon oxide 3.84552 Methane 0.09614 Sulfur dioxide 16.31731 Soot 0.38455 TOTAL: 21.22034

Pollutants amount during testing of wells No.No.1054, 1055, 1056, 1057, 1058, 1080 and 1081 is accepted similarly to well No.1053. In implementing of design solutions there is observed additional increase in emissions of pollutants into the atmosphere which impact on air basin will be short-term and local.

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 58

For determining of atmospheric air pollution level during well construction and assessment of the emissions effect to receiving layer of the atmosphere of adjacent area calculations of atmospheric air pollution were made according to the program “Ecologist 1.10” Boundary of industrial site of drilling works performance is the boundary of mining allotment of plots. Because the wells will be drilled consecutively the actual emissions from each well generally are identical and pollutants dispersion maps are prepared in terms of one vertical and one directional well. Northern Shady Vertical Well No.1053

Calculation results show that: Nitrogen dioxide – maximum concentration will make 0.22 MPC. At the distance of 800-900m from drill site impurity concentration will reduce to the level of 0.08 MPC (Figure 3.1). Carbon oxide – maximum concentration will make 0.08 MPC. At the distance of 700- 900m from drill site impurity concentration will reduce to the level of 0.03 MPC (Figure 3.2). Sulfure dioxide – maximum concentration will make 0.29 MPC. At the distance of 800- 900m from drill site impurity concentration will reduce to the level of 0.1 MPC (Figure 3.3) Hydrocarbons – maximum concentration will make 0.04 MPC. At the distance of 800- 900m from drill site impurity concentration will reduce to the level of 0.02 MPC (Figure 3.4). Soot – maximum concentration will make 0.25 MPC. At the distance of 700-800m from drill site impurity concentration will reduce to the level of 0.05 MPC (Figure 3.5). Formaldehyde – maximum concentration will make no more than 0.02 MPC. At the distance of 500m from drill site with the further tendency to reduce up to the level less than 0.01 MPC (Figure 3.6). As concentration of benzapyrene outside of dril site make less than 0.01 MPC so dispersion calculation is not reasonable.

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 59

UPAPE “Ecologist” Rated Emission Quote = 0.25 MPC MPC quotes

Figure 3.1 – Nitrogen Dioxide Maximum Concentrations in Atmospheric Air

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 60

UPAPE “Ecologist” Rated Emission Quote = 0.50 MPC MPC quotes

Figure 3.2 – Carbon Oxide Maximum Concentrations in Atmospheric Air

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 61

UPAPE “Ecologist” Rated Emission Quote = 0.33 MPC MPC quotes

Figure 3.3 – Sulfur Dioxide Maximum Concentrations in Atmospheric Air

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 62

UPAPE “Ecologist” Rated Emission Quote = 0.50 MPC MPC quotes

Figure 3.4 – Hydrocarbons Maximum Concentrations in Atmospheric Air

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 63

UPAPE “Ecologist” Rated Emission Quote = 0.33 MPC MPC quotes

Figure 3.5 – Soot Maximum Concentrations in Atmospheric Air

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 64

UPAPE “Ecologist” Rated Emission Quote = 0.25 MPC MPC quotes

Figure 3.6 – Formaldehyde Maximum Concentrations in Atmospheric Air

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 65

Western Shady Vertical Well No.1080

Calculation results show that: Nitrogen dioxide – maximum concentration will make 0.22 MPC. At the distance of 800-900m from drill site impurity concentration will reduce to the level of 0.08 MPC (Figure 3.7). Carbon oxide – maximum concentration will make 0.08 MPC. At the distance of 700- 900m from drill site impurity concentration will reduce to the level of 0.03 MPC (Figure 3.8). Sulfure dioxide – maximum concentration will make 0.29 MPC. At the distance of 800- 900m from drill site impurity concentration will reduce to the level of 0.1 MPC (Figure 3.9) Hydrocarbons – maximum concentration will make 0.04 MPC. At the distance of 800- 900m from drill site impurity concentration will reduce to the level of 0.02 MPC (Figure 3.10). Soot – maximum concentration will make 0.25 MPC. At the distance of 700-800m from drill site impurity concentration will reduce to the level of 0.05 MPC (Figure 3.11). Formaldehyde – maximum concentration will make no more than 0.02 MPC. At the distance of 500m from drill site with the further tendency to reduce up to the level less than 0.01 MPC (Figure 3.12). As concentration of benzapyrene outside of dril site make less than 0.01 MPC so dispersion calculation is not reasonable.

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 66

UPAPE “Ecologist” Rated Emission Quote = 0.25 MPC MPC quotes ș

8000 0 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01

0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01

70000.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 West Shady 0.01 0.01 0.01 0.01 0.01 0.01 0.02 0.02 0.02 0.02 0.02 0.01 0.01 0.01 0.01 0.01 0.01

60000.01 0.01 0.01 0.01 0.01 0.02 0.02 0.03 0.03 0.03 0.03 0.02 0.02 0.01 0.01 0.01 0.01

0.01 0.01 0.01 0.01 0.01 0.02 0.03 0.04 0.06 0.05 0.04 0.03 0.02 0.01 0.01 0.01 0.01

50000.01 0.01 0.01 0.01 0.02 0.02 0.04 0.08 0.14 0.11 0.07 0.04 0.02 0.02 0.01 0.01 0.01 Well 1080 0.01 0.01 0.01 0.01 0.02 0.03 0.05 0.11 0.39 0.22 0.09 0.04 0.03 0.02 0.01 0.01 0.01

40000.01 0.01 0.01 0.01 0.02 0.03 0.04 0.09 0.17 0.21 0.09 0.04 0.02 0.02 0.01 0.01 0.01

0.01 0.01 0.01 0.01 0.02 0.02 0.03 0.05 0.07 0.08 0.05 0.03 0.02 0.02 0.01 0.01 0.01

30000.01 0.01 0.01 0.01 0.01 0.02 0.02 0.03 0.04 0.04 0.03 0.02 0.02 0.01 0.01 0.01 0.01

0.01 0.01 0.01 0.01 0.01 0.01 0.02 0.02 0.02 0.02 0.02 0.02 0.01 0.01 0.01 0.01 0.01

20000.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.02 0.02 0.01 0.01 0.01 0.01 0.01 0.01 0.01

0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01

10000.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01

0 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01

0 0 0 0 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0 0 1000 2000 3000 4000 5000 6000 7000 8000 Figure 3.7 – Nitrogen Dioxide Maximum Concentrations in Atmospheric Air

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 67

UPAPE “Ecologist” Rated Emission Quote = 0.50 MPC MPC quotes ș

8000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

7000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 West Shady 0 0 0 0 0 0 0.01 0.01 0.01 0.01 0.01 0.01 0 0 0 0 0

6000 0 0 0 0 0 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0 0 0 0

0 0 0 0 0.01 0.01 0.01 0.01 0.02 0.02 0.01 0.01 0.01 0 0 0 0

5000 0 0 0 0 0.01 0.01 0.01 0.03 0.05 0.04 0.02 0.01 0.01 0.01 0 0 0 Well 1080 0 0 0 0 0.01 0.01 0.02 0.04 0.14 0.08 0.03 0.02 0.01 0.01 0 0 0

4000 0 0 0 0 0.01 0.01 0.02 0.03 0.06 0.07 0.03 0.01 0.01 0.01 0 0 0

0 0 0 0 0.01 0.01 0.01 0.02 0.03 0.03 0.02 0.01 0.01 0.01 0 0 0

3000 0 0 0 0 0 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0 0 0 0

0 0 0 0 0 0 0.01 0.01 0.01 0.01 0.01 0.01 0 0 0 0 0

2000 0 0 0 0 0 0 0 0.01 0.01 0.01 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

1000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1000 2000 3000 4000 5000 6000 7000 8000 Figure 3.8 – Carbon Oxide Maximum Concentrations in Atmospheric Air

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 68

UPAPE “Ecologist” Rated Emission Quote = 0.33 MPC MPC quotes ș

80000.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01

0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01

70000.01 0.01 0.01 0.01 0.01 0.01 0.02 0.02 0.02 0.02 0.02 0.02 0.01 0.01 0.01 0.01 0.01 West Shady 0.01 0.01 0.01 0.01 0.02 0.02 0.02 0.02 0.03 0.03 0.02 0.02 0.02 0.01 0.01 0.01 0.01

60000.01 0.01 0.01 0.01 0.02 0.02 0.03 0.04 0.04 0.04 0.03 0.03 0.02 0.02 0.01 0.01 0.01

0.01 0.01 0.01 0.02 0.02 0.03 0.04 0.06 0.08 0.07 0.05 0.04 0.03 0.02 0.02 0.01 0.01

50000.01 0.01 0.01 0.02 0.02 0.03 0.06 0.11 0.19 0.16 0.09 0.05 0.03 0.02 0.02 0.01 0.01 Well 1080 0.01 0.01 0.01 0.02 0.02 0.04 0.07 0.15 0.54 0.29 0.13 0.06 0.03 0.02 0.02 0.01 0.01

40000.01 0.01 0.01 0.02 0.02 0.03 0.06 0.12 0.23 0.26 0.12 0.06 0.03 0.02 0.02 0.01 0.01

0.01 0.01 0.01 0.02 0.02 0.03 0.04 0.07 0.1 0.1 0.07 0.04 0.03 0.02 0.02 0.01 0.01

30000.01 0.01 0.01 0.01 0.02 0.02 0.03 0.04 0.05 0.05 0.04 0.03 0.02 0.02 0.01 0.01 0.01

0.01 0.01 0.01 0.01 0.02 0.02 0.02 0.03 0.03 0.03 0.03 0.02 0.02 0.02 0.01 0.01 0.01

20000.01 0.01 0.01 0.01 0.01 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.01 0.01 0.01 0.01

0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.02 0.02 0.02 0.02 0.01 0.01 0.01 0.01 0.01 0.01

10000.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01

0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01

00.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0 1000 2000 3000 4000 5000 6000 7000 8000 Figure 3.9 – Sulfur Dioxide Atmospheric Air Maximum Concentrations

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 69

UPAPE “Ecologist” Rated Emission Quote = 0.50 MPC MPC quotes ș

8000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

7000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 West Shady 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

6000 0 0 0 0 0 0 0 0.01 0.01 0.01 0.01 0 0 0 0 0 0

0 0 0 0 0 0 0.01 0.01 0.01 0.01 0.01 0.01 0 0 0 0 0

5000 0 0 0 0 0 0 0.01 0.01 0.02 0.02 0.01 0.01 0 0 0 0 0 Well 1080 0 0 0 0 0 0.01 0.01 0.02 0.06 0.04 0.02 0.01 0.01 0 0 0 0

4000 0 0 0 0 0 0.01 0.01 0.02 0.04 0.04 0.02 0.01 0 0 0 0 0

0 0 0 0 0 0 0.01 0.01 0.02 0.01 0.01 0.01 0 0 0 0 0

3000 0 0 0 0 0 0 0 0.01 0.01 0.01 0.01 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

2000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

1000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1000 2000 3000 4000 5000 6000 7000 8000 Figure 3.10 – Hydrocarbons Maximum Concentrations in Atmospheric Air

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 70

UPAPE “Ecologist” Rated Emission Quote = 0.33 MPC MPC quotes ș

8000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

7000 0 0 0 0 0 0 0.01 0.01 0.01 0.01 0.01 0.01 0 0 0 0 0 West Shady 0 0 0 0 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0 0 0

6000 0 0 0 0 0.01 0.01 0.01 0.01 0.02 0.02 0.01 0.01 0.01 0.01 0 0 0

0 0 0 0.01 0.01 0.01 0.02 0.02 0.03 0.03 0.02 0.01 0.01 0.01 0.01 0 0

5000 0 0 0 0.01 0.01 0.01 0.02 0.05 0.12 0.1 0.04 0.02 0.01 0.01 0.01 0 0 Well 1080 0 0 0 0.01 0.01 0.01 0.03 0.09 0.51 0.25 0.08 0.03 0.01 0.01 0.01 0 0

4000 0 0 0 0.01 0.01 0.01 0.02 0.06 0.19 0.21 0.06 0.02 0.01 0.01 0.01 0 0

0 0 0 0.01 0.01 0.01 0.02 0.03 0.05 0.05 0.03 0.02 0.01 0.01 0.01 0 0

3000 0 0 0 0.01 0.01 0.01 0.01 0.02 0.02 0.02 0.02 0.01 0.01 0.01 0.01 0 0

0 0 0 0 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0 0 0

2000 0 0 0 0 0 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0 0 0 0

0 0 0 0 0 0 0 0.01 0.01 0.01 0.01 0 0 0 0 0 0

1000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1000 2000 3000 4000 5000 6000 7000 8000 Figure 3.11 – Soot Maximum Concentrations in Atmospheric Air

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 71

UPAPE “Ecologist” Rated Emission Quote = 0.25 MPC MPC quotes ș

8000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

7000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 West Shady 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

6000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

5000 0 0 0 0 0 0 0 0 0.01 0.01 0.01 0 0 0 0 0 0 Well 1080 0 0 0 0 0 0 0 0.01 0.03 0.02 0.01 0 0 0 0 0 0

4000 0 0 0 0 0 0 0 0 0.01 0.02 0.01 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

3000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

2000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

1000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1000 2000 3000 4000 5000 6000 7000 8000 Figure 3.12 – Formaldehyde Maximum Concentrations in Atmospheric Air

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 72

Khauzak Directional Well No.1055

Calculation results show that: Nitrogen dioxide – maximum concentration will make 0.24 MPC. At the distance of 800-900m from drill site impurity concentration will reduce to the level of 0.08 MPC (Figure 3.13). Carbon oxide – maximum concentration will make 0.09 MPC. At the distance of 700- 900m from drill site impurity concentration will reduce to the level of 0.03 MPC (Figure 3.14). Sulfure dioxide – maximum concentration will make 0.32 MPC. At the distance of 800- 900m from drill site impurity concentration will reduce to the level of 0.11 MPC (Figure 3.15) Hydrocarbons – maximum concentration will make 0.07 MPC. At the distance of 800- 900m from drill site impurity concentration will reduce to the level of 0.02 MPC (Figure 3.16). Soot – maximum concentration will make 0.29 MPC. At the distance of 700-800m from drill site impurity concentration will reduce to the level of 0.05 MPC (Figure 3.17). Formaldehyde – maximum concentration will make no more than 0.02 MPC. At the distance of 500m from drill site with the further tendency to reduce up to the level less than 0.01 MPC (Figure 3.18). As concentration of benzapyrene outside of dril site make less than 0.01 MPC so dispersion calculation is not reasonable.

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 73

UPAPE “Ecologist” Rated Emission Quote = 0.25 MPC MPC quotes

Figure 3.13 – Nitrogen Dioxide Maximum Concentrations in Atmospheric Air

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 74

UPAPE “Ecologist” Rated Emission Quote = 0.50 MPC MPC quotes

Figure 3.14 – Carbon Oxide Maximum Concentrations in Atmospheric Air

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 75

UPAPE “Ecologist” Rated Emission Quote = 0.33 MPC MPC quotes

Figure 3.15 – Sulfur Dioxide Maximum Concentrations in Atmospheric Air

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 76

UPAPE “Ecologist” Rated Emission Quote = 0.50 MPC MPC quotes

Figure 3.16 – Hydrocarbons Maximum Concentrations in Atmospheric Air

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 77

UPAPE “Ecologist” Rated Emission Quote = 0.33 MPC MPC quotes

Figure 3.17 – Soot Maximum Concentrations in Atmospheric Air

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 78

UPAPE “Ecologist” Rated Emission Quote = 0.25 MPC MPC quotes

Figure 3.18 – Formaldehyde Maximum Concentrations in Atmospheric Air

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 79

3.2 EXPECTED WATER RESOURCES WITHDRAWAL AND WASTE WATERS DISPOSAL

The following normative literature was used in the process of this section preparation 1. Law of the Republic of Uzbekistan “On Water and Water Use” approved by Oily Majlis of the Republic of Uzbekistan dated 06.05.1993. 2. KMK 2.04.01-98. Plumbing and Sewage System. Gosstroy. 1998. 3. KMK 2.04.02-97. Water supply. Public Utilities. Gosstroy. 1997. 4. KMK 2.04.02-97. Sewarage. Public Utilities. Gosstroy. 1997. 5. SNiP IV-2-82. Part IV. Estimate Standards and Rules. 6. O'zDst 950: 2000. Potable Water. Hygienic Requirements and Quality Control. Tashkent. 2000. 7. RD-51-121-87. Current Individual Book-value Norms and Specifications of Water Consumption and Water Disposal in Gas Industry. The area of the considered field refers to category of the waterless. Water supply sources requirements of the drilling organizations are come, first of all, to satisfaction of production needs by process water: - process water for clay mud preparation; - wash liquid during well drilling; - process water for diesel engines and units. Process water supply for drill rigs will be executed by means of drilling of temporary or use of existing water supply wells, located in the vicinity of drill site. As alternative source of water supply may be surface waters of Dengizkul Lake subject to preparation by the drilling contractor of the appropriate permission in accordance with the established procedure. Water from water-supply well or Dengizkul Lake by means of the compressor enters into 25m3 header tank installed on metal base. Along the water line laid from used pipes drillpipes the water by gravity enters into derrik block, drill pumps, diesel-engine drive and drilling mud treatment and preparation skid. Preliminary calculation of the process water flow rate is made on the basis of Group Detail Design with overall work duration about 162 day. Process water is used during various drilling operations: - during drilling and borehole reaming; - during drilling tool cleaning; - during drilling tool and casing pipes pressure test; - during cementing units washing; - during performance of auxiliary works (floor, equipment washing, etc.) According to the method [22] process water standard expense allowance makes: 3 - during drilling front end cinstruction works - 43m /day; 3 - during drilling and casing - 72m /day; 3 - during test - 20m /day. Maximum water flow rate falls on drilling and casing. According to RD-51-121-87, the amount of reused water makes 0.3m3 per drilled meter. Therefore, reused water flow rate during construction of one vertical well at a depth of 2600m will make 780m3. Drilling period for vertical wells makes 90 days, therefore, daily flow of reused water is equal to 8.667m3/day. Reused water flow rate during construction of one directional well at depth of 3070m will make 921m3. Drilling period for directional wells makes 90 days, therefore, daily flow of reused water is equal to 10.233m3/day.

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 80

Water flow rate is determined according to work cycle time and is shown in the Tables 3.4-3.5.

Table 3.4 – Process Water Flow Rate for Vertical Wells Water Flow Rate, Water Flow Rate, Name of Works Cycle Time, day m3 per well m3 per four wells Front end construction 34 1462 5848 works Drilling and casing 90 6480 25920 Testing 38 760 3040 Total 162 8702 34808

Table 3.5 – Process Water Flow Rate for Directional Wells Water Flow Rate, Water Flow Rate, Name of Works Cycle Time, day m3 per well m3 per four wells Front end construction 34 1462 5848 works Drilling and casing 90 6480 25920 Testing 38 760 3040 Total 162 8702 34808

Total process water flow rate for vertical and directional well construction period will make 69.616 thous. m3. There is provided emergency water reserve for firefighting. Special requirements for fire water are not made. Drilling process is continuous. Residing of drill crew is provided in house trailers, near to drill site. Water flow rate for drill crew occupation period is accepted according to KMK 2.04.02-97 [21] equal to 50dm3/day per person, and includes meals, cleaning of premises and satisfaction of hygienic needs. For drinking needs shall only be used drinking quality water which meets the requirements O'zDst 950:2011 “Potable Water. Hygienic requirements and Quality Control” is used. Bottled water for drinking needs will be supplied to drill sites as required in plastic vessels. Table 3.6 – Water Flow Rate for Drinking Needs WaterFlow Rate Water Flow rate for Name of Labor Content Worktime, day per well, thous. all wells, Works m3 thous. m3 Vertical well 75 162 0.6075 2.43 construction Directional well 75 162 0.6075 2.43 construction TOTAL 4.86

Calculation of Drinking Needs of Drill Crew Vertical Well Construction

Wday = N x r / 100 where: N – standard of water consumption for drinking needs per day, 50dm3/p. r – number of persons – 75 persons

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 81

3 Wday = 50 x 75 / 1000 = 3.75 m /day. T – one well construction period – 162 days 3 W1well = 3.75 x 162 / 1000 = 0.6075 thous.m /well Total water flow rate for drinking needs of the workers during construction of four vertical wells will make: W = 0.6075 x 4 = 2.43 thous. m3.

Directional Well Construction Wday = N x r / 100 where: N – standard of water consumption for drinking needs per day, 50dm3/p. r – number of persons – 75 persons 3 Wday = 50 x 75 / 1000 = 3.75 m /day. T – one well construction period – 162 days 3 W1well = 3.75 x 162 / 1000 = 0.6075 thous.m /well Total water flow rate for drinking needs of the workers during construction of four vertical wells will make: 3 W1well = 3.75 x 162 / 1000 = 0.6075 thous.m /well Total water flow rate for drinking needs of the workers during construction of four vertical wells will make: W = 0.6075 x 4 = 2.43 thous. m3. Water flow rate for drinking needs of the worker during construction of eight wells is equal to 4.86 thous. m3.

Table 3.7 – Total Water Requirement for the Drilling Period

Total, Process Water, Potable Water, Production thous.m3 thous.m3 thous.m3 Front end construction works 1.462 1.462 Drilling and casing 6.804 6.804 Testing 0.760 0.760 Total for production needs 8.702 8.702 Drinking needs - 0.6075 Total 9.3095 8.702

Table 3.8 – Total Water Requirement for the Period of Eight Wells Drilling Total, Process Water, Potable Water, Production thous.m3 thous.m3 thous.m3 Front end construction works 11.696 11.696 Drilling and casing 51.840 51.840 Testing 6.08 6.08 Total for production needs 69.616 69.616 Drinking needs needs - - 4.86 Total 74.476 69.616 4.86

In order to reduce water requirement the system of drill site provides use of recycling water supply. The clarified water is reused for drilling mud preparation, as well as for production operations (washing of drilling muds cleaning and reclamation system mechanisms, equipment of working platforms in RIH/POOH, casing and drilling pipes pressure test, and etc.).

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 82

In order to use drilling waste waters in recycling water supply system there is provided its treatment to the level meeting the requirements (Technological design standards for oil, gas and water collection, transportation and treatment facilities [25]) for recycling water supply listed in the Table 3.9.

Table 3.9 – Water Quality for Recycling Water Supply s/p Name of Indicators Values No. 1 ɪɇ 7-8 2 Hardness, mg-equ./l 0.5 3 Transparency 30

During drilling the drilling mud is cleaned of sludge by means of treatment system since in its structure there are reagents used in drilling. For this purpose there are used: desilter, desanders and mud screen. Recycling water supply unit consists of the water pump, ejector type hopper, and two tanks for coagulant and flocculant solutions and utilities systems. However, treated DWWs are used for drilling mud preparation and other special needs of the drill site (area and access roads damping). Water saving percentage depends on many factors (rock characteristics, drilling mud loss phenomenon, and etc.) and is determined on actual basis. Contaminated waste waters by production are subdivided into operational (floor, equipment, screen cleaning, cooling system waste water), process (drill pipes washing), emergency (break of pipelines, shut-off valve failure), natural (rain and melt waters), as well as leaks in preparation of drilling mud and chemicals, losses during drilling cuttings separation at treatment plants. The most significant drilling waste waters by volume and harmful substances concentration are the waters produced during drilling. They are brought to the surface together with drilling cuttings. DWWs composition depends on mineralogy of rocks to be drilled, materials and chemicals used for drilling mud preparation. Specific composition of DWWs is determined on actual basis. In order to provide separate collection of DWWs in water storage pit there is mandatorily provided drain utilities from waste waters producing points (pumping unit, drill site, clay mixer, etc.) to pit. In this regard there is provided tray-type canalization with the outlet to common canal inflowing into DWWs collection pit. In addition there are provided measures excluding ingress of drilling mud from circulating system to DWWs pit. According to calculations the drilling waste waters volume for four vertical wells makes 551.038m3/well ɯ 4 = 2204.14m3. For four directional wells – 622.724m3/well ɯ 4 = 2490.896m3 DWWs total volume is 4695.048m3. Domestic waste waters are produced as a result human activities. Their collection is provided by means of sealed cesspits taking into account limits for drinking needs. Disposal of domestic waste water from cesspits due to absence of sewerage system in the nearest areas, as well as taking into account their small amount is recommended to perform following special disinfecting together with the drilling cuttings in the sludge pits. Water removal indicators are listed in the Tables 3.10-3.11

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 83

Table 3.10 – Water Removal for the Period of One Well Drilling Operation Waste Waters, Domestic Waste Waters, Production Total, thous.m3 thous.m3 thous.m3 Vertical Well No.1053 Production needs 0.551038 0.551038 Drinking needs 0.6075 - 0.6075 Total 1.158538 0.551038 Directional Well No.1055 Production needs 0.622724 0.622724 Drinking needs 0.6075 - 0.6075 Total 1.230224 0.622724 0.6075

Table 3.11 – Water Removal for the Period of Eight Wells Drilling

Operation Waste Waters, Domestic Waste Waters, Production Total, thous.m3 thous.m3 thous.m3 Production needs 4.695048 4.695048 Drinking needs 4.86 - 4.86 Total 9.555048 4.695048 4.86

Waste waters prodicung is pemporary and occurs during performing of drilling works on the well – not more than half-year.

3.3 EXPECTED WASTE

The following normative literature was used in the process of this section preparation 1. Law of the Republic of Uzbekistan “On Waste” approved by Resolution of Oily Majlis of the Republic of Uzbekistan dated 05.04.2005. 2. O’zRH 84.3.15:2005 “Procedures for Waste Inventory”. State Nature Conservation Committee of the Republic of Uzbekistan. Tashkent, 2005. 3. O’zRH 84.3.19:2005 “Production and Consumption Waste Management. Terms and definitions”. State Nature Conservation Committee of the Republic of Uzbekistan. Tashkent, 2005. 4. SanPiN of the Republic of Uzbekistan No.0068-96 “Sanitary Regulations for Collection, Storage, Transportation, Neutralisation and Disposal of Household Waste (HW) in the cities of the Republic of Uzbekistan”. 5. RD 39-022-90 “Instruction on Environmental Protection during Onshore Construction of Oil and Gas Wells”, Moscow, 1990. 6. “Instruction Concerning the Procedure for the Accounting of Generation, Use and Storage of Toxic Waste according to the Formula No.3 – toxic waste (semi-annual, annual). State Statistical Department of the Republic of Uzbekistan.1997. Well construction cycle includes multiple operations, but the work milestones are: - front end construction and erection operations; - well drilling and casing; - final works (lay down) Front end construction and erection operations are based on the organizing stages of well conditioning, and final – on the lay down with the subsequent restoration of lands.

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 84

Well drilling is connected with generation of considerable volumes of waste which includes waste drilling muds, drilling cuttings or drilled rocks, and drilling waste waters contaminated by drilling mud. Drilling cuttings (DC) represents a mixture of drilled rock with drilling mud. Drilled rock du to mineral composition generally is not toxic, but dispersing in the medium of the drilling mud treated by chemicals its particles adsorb on the surface toxic components and thereof also becomes pollutant of environmental components. Waste drilling mud (WDM) shall be understood to be mud used in technological process and unsuitable for further drilling, as well as drilling mud and formation fluid extruded from well to the ground surface. Drilling waste waters (DWWs) shall be understood to be waters which have been produced during well construction and equipment operation, representing the drilling mud diluted with process water and atmospheric precipitation. Waste drilling mud, drilling cuttings and drilling waste waters removed from circulating system with various devices (mud screen, desilter and desander) enters into sludge pit. Basic amount of DWWs is produced during process flushing-out of wells which includes package of processes of preparation, cleaning, treatment and circulation of the drilling mud. Entry of DWWs into pit is executed with provided tray system. In 2010 “ELEGANTENGINEERING” LLC has developed and agreed with the authorities of Goskomprirody (report No.18/212z dated 31.03.2010) “Rules for Disposal of Drilling Cuttings during Construction of Production Wells at Shady Block” providing accumulation of drilling waste in one-section rectangular pit in volume of 2000m3, surface area of 40ɯ20m, and 2.5m deep. As isolation there is provided arrangement ar the bottom and on the walls of sealed clay screen with the subsequent covering with reinforced multilayered polyethylene film. Well sludge pit used for temporary storage of drilled rock and waste drilling mud is a part of the developed chart of drill rig area. Rules recommend neutralisation of the generated drilling waste by hardening method with the help of cementitious matters: portland cement or hardening composition ECO-2 with addition of bentonite as filler. In order to exclude migration of pollutants from drilling waste it is necessary to neutralize them immediately in well sludge pit. The neutralised waste is buried directly in the territory of drill site in well sludge pit without damaging the environment because pits have insulating layer. In drilling and upon completion of drilling operations it is not allowed discharge into well sludge pit of any other producton and consumption wastes generated in process of drilling. Banking of well sludge pits is executed from imported loamy nonsaline ground. During arrangement of banking from loamy ground it is necessary to introduce herbicides for suppression of vegetation. Outer side of banking is reinforced with consolidated soil. Head of wells No.1053 (1055, 1056, 1057, and 1058) falls within the water protection zone. Due to exception of environmental pollution for well 1053 there is provided arrangement of the auxiliary damp-proof sludge pit (with the capacity by 20% more than capacity of the well sludge pit) outside of water protection zone (500m) in order to receive drilling cuttings for disposal. Pit banking will also be executed from imported loamy nonsaline ground. During arrangement of banking it is necessary to introduce herbicides layer-by-layer for suppression of vegetation. Drilling cuttings disposal and closing down of sludge pit located outside of water protection zone will be performed according to the Rules agreed with Goskomprirody of the Republic of Uzbekistan. Alternative variant is removal of drilling waste generated during construction of directional wells No.No.1055, 1056, 1057, and 1058 on the Khauzak site to drilling cuttings

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 85 landfill of Khauzak GPD in order to recycling (utilization) without arrangement of the auxiliary sludge pits. Treatment (clarification) of the drilling waste waters shall be executed by means of coagulator. Rules recommend use of aluminum sulfate in amounts of 150kg per 25m3 of water. Clarified (treated) DWWs will be used for technical needs of drill site, for example, for damping of spoil dams and highways in order to dust suppression. More detailed method of drilling waste disposal (neutralisation and decontamination) is considered in Rules. In order to perform the front end, construction and erection operations, for repair of the equipment it is necessary to create crews relative to auxiliary production of well construction. Rig-building crew is involved in construction of foundation beds, assembling of derrick, drilling equipment, and construction of overpass facilities, installation and start-up of the rigged up equipment, links, water- and power communications, site improvement, drill rigs dismantle upon completion of well drilling. Tool house – provides timely delivery to operating drill sites of the required equipment, tools, and materials. crew examines and repairs of the equipment during well drilling, as for maintenance overhaul between completion of works on the one drill site and commencement of works on another. When performing of auxiliary works there is generated consumption waste in the form of stubs, ferrous scrap and nonferrous metals. Use of mercury lamps in lighting fixtures and their replacement are inevitably connected with generation of waste mercury lamps. This waste is generated both on the drill site and housing settlement. Plastic scraps are generated when unpacking of production strings from original packing and presented by plastic plugs preventing entry of mechanical impurities into core space of pipes. Household and food wastes belong to municipal and are generated as a result of working personnel vital activity. Estimation of amount of the generated waste is shown in terms of one vertical and one directional wells at Kauzak-Shady Block.

Vertical Well Site Well No. 1080

Table 3.12 – Drilling Waste Generation Rate Design Data Drilling Interval Characteristics 10 - 100 100 - 350 350 - 2430 2430 - 2600 Borehole diameter, mm 508 339.7 244.5 168.3 Interval thickness, m 90 250 2080 170 Cavernosity ratio 1.2 1.2 1.2 1.2 Caliper, m3 26.25 32.61 140.557 5.443

1. Drilled rock volume according to the drilling intervals: - extended direction: 2 3 V1 =1.2 ɯ 1.2 ɯ 0.785 ɯ 0.508 ɯ 90 = 26.254m - conductor: 2 3 V2=1.2 ɯ 1.2 ɯ 0.785 ɯ 0.3397 ɯ 250 =32.611m - intermittent casing: 2 3,3 V3=1.2 ɯ 1.2 ɯ 0.785 ɯ 0.2445 ɯ 2080 = 140.557m - production casing:

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 86

2 3 V4 =1.2 ɯ 1.2 ɯ 0.785 ɯ 0.1683 ɯ 170 = 5.443m Drilled rock (sludge) volume is equal to: 3 VIII = 26.254 + 32.611 + 140.557 + 5.443 = 204.866m 2. Waste drilling mud volume will make: 3 3 VWDM = 204.866 ɯ 1.052 + 0.5 ɯ120m = 275.519m 3. Drilling waste water volume will make: 3 3 VDWW = 275.519m ɯ 2 = 551.038m 4. Sludge pit volume is equal to: 3 VSP = 1.1 ɯ (204.866 + 275.519 + 551.038) = 1134.2034m Accept sludge pit volume as 1600m3. Sludge density is equal to 1.6t/m3, and waste drilling mud – 1.12t/m3. Waste amount in drilling taking into account density will make: 3 3 VDC = 204.866m ɯ 1.6t/m = 327.786t/well; 3 3 VWDM = 275.519m ɯ 1.12t/m = 308.581t/well. Total waste amount is equal to: V = 327.786 + 308.581 = 636.367t/well. Drilling waste (DC + WDM solids) enters into sludge pit. Upon completion of works the waste shall be neutralized and buried in sludge pit according to the Rules. However, drilling waste generated during construction of well No.1053 head of which is located within the water protection zone shall be removed from temporary well sludge pit furnished with reinforced damp-proofing of the bed and walls with plastic-sheeting underlay to the auxiliary equipped damp-proof pit outside of Dengizkul water protection zone for neutralisation and burial according to the Rules. Waste disposal in auxiliary sludge pit is executed according to the Rules.

Stubs They are generated during front end construction and erection operations only. Norms of stubs formation make 15% of electrode consumption. Quantity of used electrodes is 200kg (analogue of wells of Khauzak-Shady Block) for construction of one well. Thus, the quantity of stubs is equal to 30kg/well. It is expected its removal as ferrous to processing in JSC “Vtorchermet” without warehousing.

Household Waste (HHW) They are generated during vital activity of drill crew, 75 in number, residing temporarily in drilling camp. According to the ecologist handbook the specific HHW generation norm per capita makes 40kg/year. HHW amount during construction of one well will make: N = 40kg ɯ 75 persons ɯ 162 days / 365 = 1332kg/well = 1.332t/well. Domestic waste are collected in special container, there is provided their removal following accumulation to the district landfill under the contract with the specialized enterprise “Olotobod” LLC.

Food Waste They are generated during cooking. According to the SanPiN No. 0068-96 the specific food waste generation norm per dish is equal to 0.03kg. Quantity of conditionally prepared dishes in three meals of 75 persons will make: M = 2.2 u 75 u 3 = 495 dishes per day. where: 2.2 – correction factor according to the SanPiN

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 87

Weight amount of food wastes for the period of 162 days will make: No = 0.03 x 495 x 162 = 2406kg = 2.406t/well Food waste will be temporarily stored together with the HHW and be removed under the contract with “Olotobod” LLC.

Waste Mercury Lamps They are generated in replacement of the out-of-service lamps. Drill site is equipped with trailers provided for dining room, habitation, shower, engineering and technical personnel. Lighting of camp territory and trailers is executed by means of mercury lamps of LB-40 and DRL-250 type. Lamp life cycle makes on the average 10000 hours. Mean operating time makes 12 hours; respectively lamp average time is equal to: Aav = 10000 / 12 = 833.33 days The following formula used for estimation of the waste mercury lamps: n = G/Aav, where: n – use factor; G – plant work schedule (days), G=162 days n = 162 days / 833.33 = 0.19. Waste generation norm N (pcs/year) is equal to:

N = mlɯn, where: ml – number of lighting fixtures (pcs) m1 = 17 pcs (LB-40 = 15 pcs and DRL-250 = 2 pcs) N = 17 pcs ɯ 0.19 = 3.23 pieces Average weight of one lamp is 0.3kg. Total weight of the waste lamps during construction of one well will make: N = 3.23 pcs ɯ 0.3 = 0.969kg. When they are replaced the waste lamps are removed without warehousing to the base of drilling contractor and further are transferred to specialized enterprise “Ekotti-biet”.

Ferrous Scrap It is generated as a result of CEO and repair of separate parts of the drilling equipment. Waste amount makes about 1.0t (value is determined based on the operating experience on other wells of Khauzak-Shady Block). Ferrous is temporarily stored in the territory of drill site in expressly provided area, with the subsequent transportation when it is accumulated to JSC “Vtorchermet” in order to processing.

Nonferrous Scrap It is generated in production cycle of repair work, installation and disassembling of drill rig. Ferrous amount is accepted by analogy with other wells and makes about 0.2t/well. Removal to “Vtorchetmet” bodies upon completion of construction is provided.

Plastic Scrap It is generated during unpacking of production string. Plastic plugs amount makes about 0.833t. Upon completion of well construction the waste is removed to cooperative “Vtorma” on a contractual basis.

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 88

Rags (non-oily) It is generated during drilling works. There are generated about 900kg of waste during construction of other wells at Khauzak-Shady Block, which is used as ignition material in well testing, or be removed to the district landfill under the contract.

Waste oil (diesel) It is generated when oil is changed after it loses its initial properties during operation of internal combustion engines. About 1 000 l (0.9 t) of waste are generated during construction of other wells at Khauzak-Shady block. Temporary storage area is a leak-proof plot at drilling site, meant for centralized collection of industrial and domestic waste. As it is generated it is removed to the base of drilling contractor for further transportation to JV “Uzecoprotect”.

Production and consumption residual generated as a result of main and supporting activity during construction of vertical wells No 1053, 1054, 1081 at West and North Shady will be similar to that of well No 1081. Quantity of the residual is given in table 3.14.

Directional Well Site Well No.1055

Drilling Waste They are generated at the drilling stage. Total depth of well is 3070m. Drilling waste (WDM, DC, DWW) amount estimation during construction of well made similarly to well No.1081.

Table 3.13 – Data for Drilling Waste Generation Norm Calculation

Characteristics Drilling interval 10-100 100-350 350-2965 2965-3070 Borehole diameter, mm 508 339..7 244.5 168.3 Interval thickness, m 90 250 2615 105 Cavernosity ratio 1.2 1.2 1,2 1.2 Caliper, m3 26.254 32.611 176.710 3.362

1. Drilled rock volume according to the drilling intervals: 3 Vm = 26.254 + 32.611 + 176.710 + 3.362 = 238.937m 2. Waste drilling mud volume will make: 3 3 VWDM = 238.937 ɯ 1.052 + 0.5 ɯ 120m = 311.632m 3. Drilling waste water volume will make: 3 3 VDWW = 311.362m ɯ 2 = 622.724m 4. Sludge pit volume is equal to: 3 VSP = 1.1 ɯ (238.937 + 311.362 + 622.724) = 1290.325m Accept sludge pit volume as 1600m3. Sludge density is equal to 1.6t/m3, and waste drilling mud – 1.12t/m3. Waste amount in drilling taking into account density will make: 3 3 VDC = 238.937m ɯ 1.6t/m = 382.3t/well; 3 3 VWDM = 311.362m ɯ 1.12t/m = 348.7t/well. Total waste amount is equal to: V = 328.3 + 348.7 = 731/well.

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 89

Drilling waste (DC + WDM solids) enters into sludge pit. Upon completion of works the waste shall be neutralized and buried in sludge pit according to the Rules. However, drilling waste generated during construction of wells No.1056, 1057 and 1058 head of which is located within the water protection zone shall be removed from temporary well sludge pit furnished with reinforced damp-proofing of the bed and walls with plastic-sheeting underlay to the drilling citting landfill of the Khauzak GPD in order to processing according to the Rules.

Household Waste (HHW) Weight amount of waste is 1.332t/well. HHW collection is in the special container with the subsequent removal to district landfill under the contract with “Olotobod” LLC.

Food Waste Weight amount of food wastes is 2.406t/well. Food waste will be temporarily stored together with the HHW and be removed under the contract with “Olotobod” LLC.

Waste Mercury Lamps Weight of waste lamps for the construction period will make 0.969kg. When they are replaced the waste lamps are removed without warehousing to the base of drilling contractor and further are transferred to specialized enterprise “Ekotti-biet”.

Stubs Waste amount is 30kg/well. It is expected its removal as ferrous to processing in JSC “Vtorchermet” without warehousing.

Ferrous Scrap Ferrous amount is 1t/well. There is provided removal and handover to JSC “Vtorchetmet” for processing under the contract.

Nonferrous Scrap Ferrous amount is 0.2t/well. Removal from site is carried out by means of transport of the enterprise, and is handed over to “Vtorchetmet”. Collection is hand-picked.

Plastic Scrap Plastic plugs amount makes about 0.833t. Plastic scraps are collected on the driil site in specially allotted place. Upon completion of well construction the waste are removed to cooperative “Vtorma” on a contractual basis.

Rags (non-oily) It is generated during drilling works. There are generated about 900kg of waste during construction of other wells at Khauzak-Shady Block, which is used as ignition material in well testing, or be removed to the district landfill under the contract. Waste oil (diesel)

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 90

It is generated when oil is changed after it loses its initial properties during operation of internal combustion engines. About 1 000 l (0.9 t) of waste are generated during construction of other wells at Khauzak-Shady block. Temporary storage area is a leak-proof plot at drilling site, meant for centralized collection of industrial and domestic waste. As it is generated it is removed to the base of drilling contractor for further transportation to JV “Uzecoprotect”.

Production and consumption wastes generated from primary and supporting activity during construction of vertical wells No.1056, 1057, 1058 according to the quantitative and qualitative are identical to the well No.1055. Thus, contrstuction of the well is inevitably connected with the generation, both production wastes, and consumption waste. The waste is ranged in 4 class of hazard; municipal waste is nontoxical, waste mercury-containing lamps - to 1 class of hazard. The characteristic and approximate waste amount is shown in the Tables 3.14-3.15. In waste handling it is necessary to observe applicable ecological, sanitary-and- epidemiologic and technology-based norms and rules. All types of works shall be performed according to the working project documentation on construction of production well. Temporary waste accumulation priod to their handover to the specialized enterprises or for burial is carried out in the territory of drill site. Limiting quantities of one-time waste accumulation, as well as methods of their temporary storage are determined proceeding from requirements of ecological safety at which a waste does not have adverse impact on natural environment and human health.

Table 3.14 – Characteristic and Estimated Amount of Wastes to be generated during Construction of One Well

Waste Name Place of Frequency Waste No Class of Physical and Storage Name of of Waste of Waste Amount, s/p Hazard Chemical Method Enterprise Waste origin Generation tons Characteristic

Removal and handover to the Ferrous processing to 1 Drill site 4 Ferrum CEO Period 1.0 Scrap “Vtorchetmet” bodies under the contract Removal and handover to the Nonfer Nonferrous processing to 2 rous Drill Site 4 CEO Period 0.2 - Scrap “Vtorchetmet” Scrap bodies under the contract Removal and handover to the Ferrum processing to 3 Stubs Drill Site 4 CEO Period 0.03 - (alloy) “Vtorchetmet” bodies under the contract

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 91

Waste Name Place of Frequency Waste No Class of Physical and Storage Name of of Waste of Waste Amount, s/p Hazard Chemical Method Enterprise Waste origin Generation tons Characteristic

Waste removal Non- Textile, Steel to the authorized 4 oily Drill Site 4 mechanical CEO Period 0.9 container landfill under Rags impurities the contract

Sludge Waste pit with neutralization Drilling with Drillin according to the cuttings, Drilling 636.367 applying 5 g Well 4 rules with the Waste drilling Period 731.0 bitumen waste* subsequent mud on the burial in sludge walls and pit bottom

Containe CEO and Househ Drill site Paper, glass, r in the Nontoxi well 6 old and field plastics, 1.332 site with HHW removal cal construction Waste camp garbage hard to the authorized period coating landfill under the contract wit the local CEO and Trailer – authorities Food Nontoxi well 7 dining Food waste 2.406 -//-//- Waste cal construction room period Waste mercur Glass, mercury, Removal and y- 8 Drill site 1 aluminum and Well 0.0009 - handover to the contain etc. construction processing to ing period specialized lamps enterprises only Plastic 9 -//- 4 Plastic 0.833 Scraps Period of Tanks at Removal and Used preparation site with transportation of 10 oil -//- 2 Oily fluid 0.9 and well hard waste to JV (diesel) drilling n coating “Uzecoprotect” Total: Vertical Well 643.969 Directional Well 738.602 *- Note: drilling wastes are shown for two wells: vertical – 636.367t; directional – 731.0t Remaining type of waste generated during cinstruction of wells No.No.1053, 1054, 1055, 1056, 1057, 1058 and 1081 are accepted similarly to the data of Table 3.14.

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 92

Following is the waste amount during construction of eight wells:

Table 3.15 – Characteristic and Estimated Amount of Wastes to be generated during Construction of Eight Wells No. Vertical Wells Directional Wells Name of Waste Units Total s/p (4 pcs.) (4 pcs.) 1 Drilling Waste t 2545.468 2924.0 5469.468 2 Stubs t 0.12 0.12 0.24 3 Ferrous Scrap t 4.0 4.0 8 4 Non-ferrous Scrap t 0.8 0.8 1.6 5 Plastic Scrap t 3.332 3.332 6.664 6 Rags t 3.6 3.6 7.2 7 Waste Mercury Lamps t 0.0036 0.0036 0.0072 8 HHW t 5.328 5.328 10.656 9 Food Waste t 9.624 9.624 19.248 10 Used oil (diesel) t 3.6 3.6 7.2

3.4 NOISE AND VIBRATION

Drill rigs belong to vibration and noisy structures in oil-gas industry. The sound represents the acoustic vibrations capable to be perceived by the organ of hearing. Frequency of a heard sound usually is within the range of 16-20000Hz. Noise represents combination of sounds of various frequencies in intensity without any phase correlation. Physiologists consider that noise is any unpleasant or disturbing sound. Table 3.16 lists values of noise levels in operation of some common sources.

Table 3.16 – Some sound levels Sound Level (in relation to zero Sounds Characteristic and Sources, Acoustic Rocks level) dBA Hearing threshold 0 - 10 Palpitation of the leaves, roaring of breeze 10 - 20 Whisper at the distance of 1m 30-40 Soft speech 40 - 50 Loud speech at the distance of some meters 60-70 Street noise 70-80 Pain threshold 120 - 130

Permissible levels of vibration on workplaces of drill rig are regulated by GOST 12.1.003-76, as for noise - by industry regulation document 39-22-179-79. Noise will occure while drill rig, motor transport and special vehicles in operation. Supply of environmental impact through the noise created by road traffic and operating special vehicles is insignificant and will be at human permissible norms level. According to GOST 12.1.003-83 the permissible noise levels on workplaces, in working zones, in industrial premises and in the territory of the enterprises, permanent fixed machines work stations make not more than 85dB. Even slight increase in noise level may cause negative reaction of the living organisms inhabiting work area. However, fugacity of work suggests absence of significant impacts on animal population.

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 93

Data on results of noise and vibration measurement on workplaces and in process of drill rig are shown in the Tables 36, 37. It is evident from tables that vibration and noise excess in comparison with norms are insignificant. It should be noted that during carrying out of field surveys at monitoring stations the noise level was measured with sound level meter SHUM-1Ɇ (natural, in a strong wind and noise impact on the drill sites). There is no excess of permissible norms according to SanPiN No.0120- 01 «Sanitary Regulations for Permissible Noise Levels on Workplaces”. Noise level range following the results of monitoring at Khauzak-Shady Block varied at level of 40-60dB. Well construction (drilling) does not relate to the technological processes accompanied by an ionizing radiation.

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 94

Table 3.17 - Drill Rig Noise Level Data Active bands Center Frequency, Hz No. Name of Measurement Points Ⱥ ɋ 63 125 250 500 1000 2000 4000 8000 s/p Vibration Speed Levels (sound pressure), dB Drill rig. Derrick. At driller’s station. 88 94 85 89 89 84 80 77 76 78 1. Excess 3 - - - 3 1 - - - 4 Drill rig. Plant room. 93 96 80 84 90 91 89 80 76 72 2. Excess 8 - - - 4 8 9 2 - - Drill rig. Pump house 87 93 89 88 86 87 82 76 69 64 3. Excess 2 - - - - 4 2 - - -

Table 3.18 – Drill Rig Vibration Level Data Active bands Center Frequency, Hz No. Vibrator Installation Direction from Name of Equipment 2 4 8 16 31.5 63 125 250 500 1000 s/p Site Vibrator Vibration Speed Levels (sound pressure), dB 1. Drill rigs permissible vibration levels Driller workplace near to Vertical 83 89 90 85 80 79 - - - - 1.1 Drill rig pumps Vertical - - 88 107 109 90 - - - - 2. Drill rigs actual vibration levels Driller workplace near to Vertical 85 89 98 89 90 81 - - - - 2.1 Drill rig pumps Vertical - - 90 109 109 98 - - - -

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 95

4 ANALYSIS OF ALTERNATIVES OF PLANNED ACTIVITY AND TECHNOLOGY CONCEPT

Planned activity objective is the increase in volumes of the known reserves of raw hydrocarbons at Khauzak-Shady Block. Development project proposes construction of eight additional wells on this site. It should be noted that the most part of the contract area is occupied by Dengizkul Lake, being State Ornithological Reserve and Ramsar site since 2001, i.e. has the international importance for support of population of hydrophilic birds in various phases of their life cycles and, that is very important, of some globally threatened species among them. In this connection, prior to implementation of planned activity there was carried out primary environmental syrvey and selection of sites for construction of additional wells. During environmental survey there were observed six alternative sites for well drilling, four on the Khauzak site, two in the northern part of Shady Block, as well as analyzed location of two wells in the western part of Shady Block. Proposed sites are located near to existing production wells and utilities (water- and power supply sources) and do not require extensive development works (construction of access roads, and gas reservoirs). Moreover, construction sites of additional wells are at the distance from nesting areas of hydrophilic birds, therefore it is not expected negative impact on success of priority and other species breeding. Therefore, in terms of environment, there are no resons for waiving specified activity. Well location selection depends on the geological structure developed on the basis of geophysical, engineering-geological, and hydro-geological data. XV horizon of Calovian and Oxfordian sediments is productive for hydrocarbons production efficiency of which is confirmed by earlier drilled wells at Khauzak-Shady Block of Dengizkul field. In this connection location of wells is selected proceeding from structure of productive horizon. However, it should be explained that from eight additional wells, head of five projected production wells is located in water protection zone reposition of which outside of water protection zone will lead to total loss of efficiency of mining well indicators. Alternative variants for production process, equipment, reagents are not proposed since the construction of additional wells will be carried out by the contracting organizations, using the state-of-the-art process equipment, nontoxical reagents, and advanced well drilling method with probably minimum environmental impact. Social aspect of the project implementation is the increase in raw hydrocarbons production and, thereby, fuelling of local population. Accordingly, variants of wells location proposed by the project at Khauzak-Shady Block are selected taking into account the maximum and solicitous attitude to ecosystems and technical and economic positions of the further operation of considered sites of Dengizkul field.

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 96

5 ORGANIZATIONAL, TECHNICAL AND PROCESS SOLUTIONS, AND MEASURES EXCLUDING NEGATIVE ENVIRONMENTAL CONSEQUENCES DURING WELL CONSTRUCTION PERIOD

Environmental protection objective is the exception or the maximum restriction of adverse impacts of construction and operation of the facility, natural resources management, their restoration and reproduction. Complete cycle of well construction consists of several stages, each of which has own technology and specificity and presents hazard of negative environmental impact. Therefore, environmental and technique safety of work performance is accompanied by design technical solutions and number of the measures contributing to mitigation of anthropogenic adverse impact. Well construction works performing, drilling equipment and tool operation, and also all production operations during installation, drillings, casing, formation testing are conducted in strict conformity with “Rules for Safety in the Oil and Gas Industry of the Republic of Uzbekistan”, as well as with the legislative environmental documents of the Republic of Uzbekistan focused on prevention of environmental pollution. In design and implementation of environmental protection measures it was taken into account features of well cinstruction, environment, geographical position, and protected territories. Environmental protection requirements contain restriction to applied materials and technological processes of well construction, deviation from which may lead to environmental pollution. Selection of sites for additional chinks was made with the maximum tie to existing wells, being guided by the approved P&ID of field development, as well as by data of the primary engineering and environmental syrvey report of Khauzak-Shady Block. For the wells which sites were not possible to develop outside of Dengizkul Lake water protection zone, the project provides the following solutions allowing minimization of ecological risks: - it is provided arrangement of auxiliary damp-proof pit outside of Dengizkul Lake water protection zone at the elevation of 182.2m in order to receive and dispose of drilling cuttins of the well No.1053 (the Northern part of Shady Block) and wells No. No.1055, 1056, 1057, 1058 (Khauzak site); - it is provided arrangement of materials and F&L storage yards during well drilling located inside water protection zone (well No.1053 at the Northern Shady Block, No.No.1055, 1056, 1057, 1058 on the Khauzak site) with the reinforced damp-proof and banking; - alternative variant of disposal of drilling cuttings generated during construction of wells No.No.1055-1058 on the Khauzak site provides removal of solids of drilling cuttings to drilling cuttings landfill of the Khauzak GPD in order to dispose in accordance with the Rules. Production process of well construction is carried out by internal combustion engines. In order to reduce of occupational noise and vibration on the drill rigs the project provides technical measures limiting their impact on workers. Drilling equipment shall be installed on the heavy concrete foundations, workers shall be provided with the hearing protection devices. In addition, it is provided: - rubber bumpers for diesel engines of power units and diesel power stations; - high-elastic couplings for diesel engines and compressors;

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 97

- metal springs and rubber bumpers. The project provides package of environmental protection measures for protection of soils and ground waters which includes: - stripping excavation in the territory of 3.5 ha land plot (for each well); - moving of soil to the temporary warehousing areas; - construction of sludge pit for collection and storage of drilling waste (for waste drilling mud and drilling cuttings, for collection and treatment of DWW), walls and bottom of which are damp-proof; - equipping of land plot with the guard channels, banking of the drill site’s territory; - use of three-stage cleaning of drilling mud; - performance of works only within the territory allocated to temporary use; - cementing of area around wellhead. Well drilling is accompanied by generation of considerable amount of drilling waste which may lead to natural elements pollution: soil, surface and ground waters, vegetation cover. For neutralisation of drilling waste (DC, WDM, DWW) Goskomprirody of the Republic of Uzbekistam has developed “Rules for Disposal of Drilling Waste during Construction of Production Wells at Shady Block”. For disposal of the generated drilling waste it is recommended method of their neutralisation by hardening with the help of cementitious matters: portland cement or hardening composition ECO-2 with addition of bentonite as filler. DWWs will be clarified (treated) by coagulator and reused in the production cycle or supplied to dampening of access roads. Consumption waste in the form of the ferrous and nonferrous scrap, stubs are generated when performing auxiliary operations. Life-support of workers is caused by generation of household and food waste, replacement of lamps in lighting fixtures – by generation of waste mercury lamps. Environmental Protection Measures Plan for reducing of environmental impact level during drilling of production wells at Khauzak-Shady Block is shown in the Table 5.1.

Table 5.1 – Environmental Protection Measures No. Name of Measure Deadline Expected Effect s/p 1 2 3 4 Atmospheric Air Protection 1 Regulate F&L storage, transportation in F&L loss enhancement, accident During well drilling the sealed containers prevention 2 ICE fuel supply shall be executed F&L loss enhancement, accident During well drilling through leakproof fuel line prevention 3 Use universally of special underpans F&L loss enhancement, accident and implement their use when F&L During well drilling prevention draining 4 Provide painting of F&L storage tanks At the start of drilling F&L loss (evaporation) with the reflective paints arrangement enhancement in storage 5 Timely elimination of diesels fatigue, F&L loss enhancement, accident During well drilling careful adjustment of fuel equipment prevention 6 All chemicals shall be delivered to the Prevention of air pollution with drill sites in orogonal package, During well drilling the dust releases of drilling mud eliminating its damage, and be stored in components special containers 7 Cement transportation shall be carried Prevention of air pollution with During well drilling out in the lorry tanks, and cement mortar the finished cement dust

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 98

No. Name of Measure Deadline Expected Effect s/p 1 2 3 4 preparation shall be carried out by means of special cement mixers 8 Observance of occupational safety and health regulations. Regular maintenance inspection and Constantly Accident prevention repair of motor transport and special vehicles, adjustment of fuel eqquipment 9 Timely disposal of drilling cuttings as Upon completion of Air pollution and accident per Rules drilling operations prevention Water Resources Protection 1 Ɉrganization of water collection system At the start of drilling in accordance with the established Rational use of water resources arrangement procedure 2 Construction of the sludge pit according to the technology excluding drilling At the start of drilling Environment-oriented waste filtration to water-bearing arrangement horizons 3 Use of waste drilling mud (following Environment-orinted, resource- appropriate preparation) for preparatiob During well drilling saving of new portions of drilling muds 4 F&L tanks bund During well drilling Environment-oriented 5 Arrangement of DWW recycling water Environment-oriented, resource- During well drilling supply saving Reduction of waste generation amount, hazard level, improving of safety and operating efficiency of the facilities for waste disposal 1 Arrangement of sludge pit outside of water protection zone for well No.1053, Prior to construction Environmental safety located nearer 500m from water edge of Dengizkul Lake 2 Neutralization of driiling waste as per Following completion of Rules, burial in sludge pits with the Environmental safety each well construction subsequent restoration of disturbed lands 3 Conclusion of contract for ferrous scrap, Downgrowth of waste stubs handover to the “Vtorchetmet” During the works accumulation and exclusion of enterprises and observance of the area bad housekeeping contract provisions 4 Conclusion of contract for nonferrous Downgrowth of waste scrap, stubs handover to the During the works accumulation and exclusion of “Vtorchetmet” enterprises and area bad housekeeping observance of the contract provisions 5 Drawing up contract with “Olotobod” Exclusion of area bad LLC for receiving for disposal of According to housekeeping. Observance of municipal waste. Arrangement of timely accumulation ecological and hygienic rules removal. 6 Conclusion of contract with PC According to “SITORA” for processing of waste Environmental safety accumulation mercury lamps 7 Conclusion of contract with Cooperative According to Exclusion of area bad “Vtorma” for processing of plastic scrap accumulation housekeeping. Environmental

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 99

No. Name of Measure Deadline Expected Effect s/p 1 2 3 4 safety

During construction of wells it is necessary to provide technical restoration pf lands. So, it is proposed leveling of the site following completion of the works, backfilling of the closed down pits with earlier excavated ground, development of rubble concrete foundations. The contracting organization which is carrying out restoration of the lands shall perform qualitative execution of all grading and leveling in accordance with the approved terms of well construction, timely granting of reclaimed lands for further use in national economy. Technical stage includes leveling, creation of slopes, stripping, transportation, storage and application of soils and fertile rocks to the lands to be restored. Upon termination of well drilling and testing, dismantle and removal of the equipment, it is necessary to perform land restoration works in the following sequence: - dismantle the precast foundations and remove for later use; - break up cast-in-situ concrete foundations, concreting of the site and remove them for use during construction of roads or other facilities, or to the disposal sites agreed with local authorities; - clean up the site of scrap metal and other materials; - eliminate soil hydrocarbonic and chemical contamination, neutralise them or remove to specially allotted areas agreed with regulatory authorities; - remove drilling waste from sludge pit of well No.1053 located within the water protection zone to specially arranged auxiliary sludge pit outside of it; - dispose the drilling waste and close out the sludge pits in accordance with the Rules agreed with Goskomprirody of the Republic of Uzbekistan; - upon the close out of sludge pits it is necessary to backfill them with the soil from banking or with imported one; - carry out leveling of the site and plough up the grounds surface where they are strongly consolidated; - apply fertile soil layer on the site surface where it has been stripped; - restore the lands in the areas occupied with temporary roads or handover to regular land user on agreed conditions; - handover the lands which have been allotted to temporary use to the regular land user.

Table 5.2 – Lands Technical Restoration Equipment Name of Materials and Technical Equipment Units Qty Bulldozer Ɍ-130 pcs. 2 Backfiller “Belarus” pcs. 1 Dump truck KamAZ pcs. 2 Grader pcs. 1

Table 5.3 – Lands Technical Restoration Works Scope and Types Scope of Name and Job Description Units Works Development of rubble concrete facilities (foundations, sites, trays and etc.) m3 250 Backfilling of pits, channels and trenches with the soil from banking in soil 100m3 15 movement to 50m Leveling of the drill site 1000m2 2.8

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 100

Return of the fertile soil from storage area to the site to be restored 100m3 51.6 Transportation of two bulldozers to 135km t 32 Removal of rubble concrete foundations, drilling waste, contaminated soils, t 500 garbage and etc. to the landfill

The pollution of the subsurface during drilling could come from poor-quality cementing and lifting less of cement sheath behind the casing; disturbance of casings and cement stone in casing string annulus, ingress of liquid drilling waste into water-bearing horizons due to bad quality of conductor mounting, infiltration of waste from the ground surface from the catch- basins through soils and wellhead. In order to prevent pollution of the geological environment it is necessary, first of all, to make high-quality cementing of casing string annulus. Successful isolation of permeable beds in annular space will allow eliminaton of underground blowout from one horizon to another or into the atmosphere, prevention of formation damage of completed facility, and on further performance of drilling works will minimize pollution of the subsurface in case of complications or accidents. Along with correctly justified design of the well the high-quality cementing of the casings will allow prevention of the fresh waters contamination during drilling and operation of the wells. In order to prevent pollution of the subsurface it is necessary to provide cement sheath lifting to the design elevation behind the production casing. Dengizkul field belongs to fields, natural gas of which contains significant amount of hydrogen sulfide. Accordingly, the project proposes package of measures including air monitoring. Prior to drilling of formations with the fluids containing hydrogen sulfide it is necessary: - to check up serviceability of monitor of hydrogen sulfide content in air of working zone, availability of personal protection devices; - to treat a nud with neutralizer (inhibitor); - to check a condition of , knowledge of crew workers and engineers according to the Emergency Response Plan; - to have stock of materials and chemicals on the drill site, including neutralizing hydrogen sulfide, sufficient for drilling mud treatment in number of not less than two volumes of the well; - to provide availability of the cementing unit and borehole and its instant readiness for operation; - to provide maintenance standy of shift machine. Technical measures according to the project include: - operation of the equipment and mechanisms with strict observance of operating manual; - carrying out of timely planned preventive maintenance of the drilling and power equipment with the approved schedule; - carrying out non-destructive testing of the drilling equipment and tool; - drilling and casing pressure test; - rig derrick test; - integration casing pressure test with installed blowout preventer for design pressure meeting the drilling mud replacement polygon with formation fluids; - BOP, casing heads and tubing-casing annulus pressure test with water and inert gas for the required pressures; - use of high-quality materials and chemicals; - use of high-technology and safe equipment;

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 101

- drilling process automation; - mechanization of labour-intensive works. For the purpose of fire safety the project provides fire suppression kit and personal protective devices: fire extinguishers, safety helmets with respirator, fire helmets, fire-resistant cloth, safety helmets, boots and mittens for the personnel working in daily conditions, protective outwear suits, rubber gloves, safe glasses for use while in service with the injurious chemicals, stretcher, first-aid kit, oxygen cylinder, gas masks, etc. There is provided water and foaming agent reserve. Since the construction of the most part of wells carried out in the flooded territory of Dengizkul Lake (in water protection zone), LUOC conducts continuous observation over the state of flora and fauna through monitoring.

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 102

6 EMERGENCY SITUATIONS

Emergencies at well construction could be: x gas-and-water inflow; x well narrowing; x mud-loss; x taluses and collapse of walls of a bore hole; x emergencies at hole making; x sticking of drill pipe. The analysis of the reasons of originating of emergencies testifies that majority of them are the result of breakdown in the process of hole making, deviation from the geological and engineering program, fault in the components of a , misaction of technicians because of their poor skills, and etc. Well narrowing. This kind of troubles arises in the course of contact of a drill fluid to opened-up formations because of dilatation and flow of the last, in consequence of which there are drag and slacking-off of drilling tool that can lead to hard emergency situation - to sticking. It is prevented by the additional consumption of mud chemical treating agents, well construction increase in duration because of additional reaming and redressing of a borehole - all such matters that directly or indirectly affect geologic and natural environments. Mud-loss. Usually, mud-losses occur because of unduly high the hydrostatic pressure of a column of mud over the formation pressure. Force of inertia of a mud column, high speed of circulation, considerable pressure fluctuations at discharge of pumps, fast running of drill and casing strings could be the minor reasons. Mud-losses are differentiated on partial and catastrophic. The last are especially dangerous uncontrollable gas flows with negative impact on environment and direct hit of chemically treated drill mud in lost circulation horizons with following impurity soil and underground water are possible because of pressure on a bed reduction. Measures on mud-loss elimination include the following operations: x Definition of existence of lost-circulation zone and its intensity on increase of mechanical speed of output flow of drill mud in the ditch system, lowering of level of drill mud in working reservoir in time, definition of static level of a mud in a hole; x Selection of the method of isolation of lost circulation horizons; x Filler material input in a mud to be carried out.

Taluses and collapses of walls of a borehole. Process of this kind of troubles is influenced by two reasons: physical-and-mechanical properties of rocks and engineering- technological characteristics of a hole making.

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 103

To the first are included: physical variation of the shape and volume of the formations, connected with dilatation because of saturation with water; propping effect of water; loss of stability of a wall of a mine working, etc. To engineering-technological characteristics are included: a role of pressure differentials in a bore hole, increased volume of a flush fluid, intensive wall cavitations, heavy carrying-out of rock fragments, and etc. Troubles, connected with taluses and collapses leads to increase of an anthropogenic impact on environment at the expense of additional, not provided by the engineering design on well construction, drill cuttings - Waste Drilling Mud, Drilling Cuttings, Drilling Sewage Waters, due to re-drilling of sections of collapses, that leads to increase duration of construction with all following consequences. Prevention of collapses and fighting with them is one of challenges in drilling. The basic actions for the prevention of the troubles, connected with disturbance of a stable state of formations in the course of drilling are: application of the drill mud, having inhibitory properties, and regulation of such characteristics as density, filtering and mineralising; upflow rate maintenance in annular space for at least 1,5 m/s; smooth running of a drilling string on a bottomhole; obligatory drill mud topping-up in a hole in the course of pulling of drill pipes. Troubles at hole making. At hole drilling and cementing, originated troubles are classified as follows: troubles with drilling string members; sticking of drilling and casing strings; troubles with cutter; troubles with casing strings and members of its hardware; troubles because of unsuccessful cementation; troubles with downhole motors; fall and leave of foreign matters; other troubles. The factors, influencing emergencies origination, are many, but the most part of troubles originates because of failure of work executors or their poor qualification in a broad sense of this concept: leave of roller cones due to their overtime stay on a bottomhole; breakage of casing strings and drill-pipes, connected with defect in them or their unskilful use, and etc. Emergencies elimination, especially long-lasting, demands considerable material costs. Thus, the geologic environment suffer negative impact both "from above" (from a surface), and "from below" (from a rock mass). Drill-pipe sticking. Sticking of drilling and casing strings originates for the following reasons:

- Owing to pressure difference in a hole in permeable beds and direct contact of certain section of drilling and casing strings with walls of a hole during certain time; - At sharp fluctuation of hydrostatic pressure in a hole because of outburst, water inflow or mud-loss; - Owing to disturbance of integrity of the borehole, caused by collapse, outflow of rock or well narrowing; - As a result of formation of sticking on a cutter; - Owing to string jamming in ditch, because of hit of foreign matters in a hole;

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 104

- As a result of settling of particles of cuttings or a drill mud solid phase at circulation loss; - At cement grout setting in annular space at installation of cement bridging; - At power supply failure or failure of lifting motor of the drilling rig; For prevention of sticking, it is necessary: - To apply the high-quality drill mud, making thin, tight crusts on the hole wall; - To maintain the greatest possible speed of mud upflow; - Prior to lifting of a drilling string, flushing-out of wells should be carried out until full removal of cuttings and setting of mud characteristics to the rated values; - To maintain full treatment of drill mud from cuttings fragments. - For the purposes of prevention of troubles with a drilling string, following measures are provided: - Reduction of vibration of a drilling string by rock cutting tool operating mode selection; - Careful open borehole reaming to nominal size with acceptance of precautionary measures against jamming and side tracking; - At durable shutdown or idle time of a well, the drilling tool should be pulled out in casing shoe, it is necessary to carry out open borehole reaming to nominal size to the bottomhole periodically.

Gas-and-water inflow. Gas flow (GF) is understood as saturation of drill mud with gas, overflow of the mud through a hole mouth, increase in volume of a circulating mud in receiver tanks, build-up of pressure on a standpipe or on a branch pipe at the preventer closed. The reasons of gas flow are: - Mismatch of mud density to formation pressure; - Drop of backpressure on a bed because of saturation with gas of the drilling mud or the effect of "swabbing" at a drilling string pulling out; - Lowering of level of flush fluid in a hole because of technological losses (pulling out without topping-up, loss of circulation); - Reduction of density of a mud at the expense of impairment of its technological properties; - Opening up of production horizon at the marks above that it is provided by the project. - Generally, a principal cause of originating of GF is disturbance of stability of hydrodynamic balance in the system "bed-hole" under the impact of depression on the confined beds. Excess of bottomhole pressure over the formation pressure practically does not result in pre-blowout situation. Nevertheless, gas inflow in a hole is possible, owing to capillary overflows (impregnation), osmosis, inflow with the cuttings and fallen off rock, gravity

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 105 replacement, gas diffusion. All processes, enlisted above, take place at durable shutdowns during conducting of drilling works. For the purpose of prevention of GF, it is necessary to provide following measures: - To prevent drop of hydrostatic pressure on a bed at the expense of reduction of mud density, referring the design value. - To prevent lowering of level of drilling mud in a hole (as a result of mud-loss or a hole incomplete filling at drilling string pulling out). - To prevent depression on the confined beds, arising at pulling of the drilling tool out, increasing at the expense of swabbing effect. - To stabilise the drilling mud, maintaining its properties according to the design values. Relative density and Gel Strength of the drilling mud at opening up of confined beds should be of minimum accepted by the project values to provide its full degassing. Drilling mud should have greatest possible in this case colmatage properties and low filtering, providing formation of thin, dense filtration crust on the hole wall. - To provide reliable operation of blowout equipment and trouble-free operation of the drilling-fluid processing system (FPS), including degasser. - To provide continuous control over drilling mud level in receiver tanks, annular space, over measurement of the difference between the volume of the drilling mud, added at a drilling string pulling out and replaced at it running. - The quality of drilling mud to be controlled, freshening it, from time to time, at well drilling before opening up of suspected gas-bearing stratums (in 50-100 m, it is necessary to have permanent stock of drilling mud in the volume, equal to the volume of a hole, and the stock chemical and other materials in the quantity, necessary for preparation of drilling mud in the volume of a hole). - To provide mechanisation of the process of preparation and treatment of the mud. - The drilling rig to be completed with the instruments, necessary for definition of characteristics of the drilling mud, including control over the gas phase content. - At the approach, in the course of drilling, to the confined beds, and at drilling after their opening up, control of quality of flush fluid is required. The analysis of degree of risk includes estimation of accident risk and severity of their consequences. At the stage I of estimation of the degree of risk, various internal and external reasons of originating of emergencies are marked out, their identifying is made, scenarios of emergencies and their heaviest consequences are selected, taking into account the accepted safety measures. In the course of construction of production wells, the following is possible on drill floor: - Flowing of a production well with following flare combustion of formation gas, probability of realisation of which is 4,26×10-5 year-1;

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 106

- Seal of the tank with hydrocarbons (fuel, oils) failure without inflammation, probability of realisation of which is 4,85×10-6 year-1; Despite the provided complex of the engineering and organisational measures that are directed on maintenance of safety of production, it is impossible to exclude the probability of emergencies completely. The probability of their originating is connected, basically, with the equipment deterioration, absence or insufficiency of necessary control, imperfection of automation systems. The most probable emergencies on the drill floor are - spillage of diesel fuel from the fuel tank. The area of the spillage at seal failure of the fuel tank in the volume 30 m3 will be 570,5 m2 in accordance with calculations, made by SR 105-03 Definition of Fire and Explosions Hazard Category of Premises, Buildings and Outdoor Installations The most hazardous emergency on a drill floor is production well flowing. The max zone, where impact of the damaging factor - heat radiation at flare combustion of the well flowing - will be detected, will make 24,96 m (safe for the people in tarpaulin clothes). At realisation of other emergencies, injury of the drill floor personnel is unlikely. Calculation of the radius of damage is made based on GOST Ɋ 12.3.047-98 Fire Safety of Production Procedures. General Requirements. Methods of Control. The drill floor does not represent any direct hazard to settlements as they are in considerable distance from the projected facilities. For the prevention of gas flow in the course of drilling, except conformity of parameters of the solution and serviceability of the blowout preventer equipment (BOP equipment), it is necessary to execute the following actions, directed on reduction of accident risk: - To open up the productive stratum only after running of the intermediate string with the BOP equipment; - Topping of a hole at drilling string pulling out should be of continuous nature, but not periodical; - At reduction of mud solution more than on 20 kg/m3, (0,02 g/cm3), it is necessary to take measures immediately on its recovery; - For opening up of the zone with possible gas flow, the drilling rig, prior to the beginning of drilling, should be provided with the reservoirs with the reserve drilling mud according to the current standards; - For reduction of flowing pressure, it is necessary to avoid application of arrangements of the bottom of the drilling string with small gaps; - The string of drill-pipes should be pulled out only after careful flushing-out of a well at the parameters of the mud solution, complying with the established standards. The well should be flushed-out under condition of establishment of the greatest possible pumps delivery and at drilling string rotation; - If, at pulling-out of drill-pipes, mud solution level in the annular space is not lowered, it means, that everything indicates the swabbing effect originating. In this case, the drilling string should be run below section of flow, the well to be flushed-out and only

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 107

after that the tool pulling-out could be started; - Before opening up of the objects with high formation pressure under the driving drill- pipe, the backpressure valve is installed. Taking into account the hazards specified, maintenance of fire safety of the facility is provided by the project, taking into account necessary requirements, and other, standard documents on fire safety effective in branch, including realisation of: - The actions, excluding the possibility of originating of explosions and fires; - The actions, providing the operative alert on possible inflammation; - The actions, preventing fire spreading; - The actions, providing safe evacuation of people and protection of the equipment; - The actions, creating conditions for fire localisation and extinguishing. The basic actions, directed on maintenance of fire-and-explosion safety, include reasonable selection of technological processes and equipment, lightning protection, protection against static electricity, and other, directed on elimination of possibility of originating of fire and explosion. The system of prevention of a fire includes implementation of preventive works by workers of the supervising fire brigade, control over technological process, control of conformity of the electric equipment to PUE (Electrical Installations Code), control over serviceable condition of the fire-extinguishing systems, control over serviceability of the communication facilities, control over conducting of fire hazardous work . The fire protection system includes provision of well construction facilities with primary fire-fighting means according to branch standards in forth. For extinguishing of originated fire, powder fire extinguishers, sand, and water are provided. The actions, preventing spreading of explosions and fires, and providing safe evacuation of people, are grounded on implementation of fire-prevention requirements, including maintenance of the firebreaks, provided by the branch standard documents and codes of construction engineering in forth. For the prevention of blowout, it is necessary, firstly, to watch over serviceability of the wellhead. Measures on protection against originating of blowouts are directed on exclusion of a well breakdown and emergencies at conducting of various technological operations on a well. Thus, principal directions of the decision of the problem of prevention of the blowouts are: x Strict observance of organisational-and-technical actions; x Well head protection against breakdown by increase of its stability; x Equipment of a well with accident preventives (surface and subsurface).

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 108

In case of emergency or well blowout, control over the source of emissions and air basin condition should be carried out by the gas rescue service or blowout elimination service with registration of results of measuring in the control log. Localisation and elimination of emergency and accidental spill of oil products, reactants, process fluids and liquid waste with application of sorbents (sawdust, zeolites, rice hulls, etc.) and their following transportation to the sludge pit or the landfill. In order to reduce damage by pollution of natural environment as a result of accidents there is prepared emergency response plan on the well under construction with instructions on warning of the personnel and special services participating in emergency response with list of required technical means and emergency reserve of decontamination reagents, personnel protection methods, methods of pollutants collection, removal of pollutants decontamination of the territory, as well as water use facilities in case of their pollution. Assessment of damage by occurrence of social-and-ecological, anthropogenic and economic consequences of realisation of accidents is conducted based on ad-hoc survey, analytical calculations and predictive expert reports which are conducted at determining acceptable risk magnitude at a stage of preinvestment activity. The damage by atmospheric air pollution as a result of emergency is assessed proceeding from pollutants weight dissipating in atmosphere. Pollutants weight is determined by analytical or examining method, and is estimated as above-limit emission with the application of special weighted factors (K = 10). The damage by water body pollution as a result of emergency is assessed by summation of damage by water quality change in reservoir (subsurface waters) and amount of losses, connected with diminishing of its bioproductivity, or (temporarily) as above-limit dumping with the application of special weighted factors (K = 10). In case of production pollution (by emissions, dumps), procedural violations, land pollution in an emergency, major blowout and dump along with littering (pollution) of lands by unauthorized landfill sites the pollution damage is assessed based on the data of land syrvey, laboratory analyses and waste volume (weight) data, as well as their hazard rate. Above-limit generation and storage of waste is estimated with the application of special weighted factors (K = 10). Cost of land pollution damage is assessed proceeding from expenditures connected with performance of full scope of clean-up jobs. Estimation of environmental expenses included rough predicted value assessment of risk – damage by accidents will allow accepting not only technical and process optimum solutions during well construction, but also may be one of the basic controlled parameters when insuring ecological risk. The project provides ensuring the fire safety of the facilities taking into account necessary requirements, as well as other fire safety normative documents effective in the industry, including implementation of: - measures excluding possibility of fire development; - measures providing operational possible fire warning; - measures preventing of fire propagation; - measures providing safe people evacuation and equipment protection; - measures creating conditions for localization and fire extinguishing. Key activities directed to ensuring the fire safety include rational choice of technological processes and equipment, lightning protection, electrostatic discharge protection and other measures directed to exception of the fires occurrence possibility.

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 109

Fire prevention system includes execution of preventive works by workers of supervising fire station, control of technological practice conducting, control of conformity of electric equipment to PUE, control of operable condition of fire-control units, control of communication facility serviceability, control of execution of inflammable works. Fire protection system includes provision of well construction facilities with primary fire extinguishing means according to operating branch norms. There are provided dry powder extinguishers, sand and water for fire extinguishing. Measures interfering fires propagation, as well as providing safe people evacuation are based on performance of fire-prevention requirements, including provision of the fire breaks, provided by normative documents operating in industry and rules of construction design. Scenarios of accidents during transportation of hazardous materials and heavy cargoes are not considered due to absence of such accident during construction of wells at oil and gas industry facilities. However, during transportation of hazardous materials and heavy cargoes it is necessary to observe fire and job safety rules and precautions. Driver has no right to drive the vehicle if the technical state of motor transport does not meet the specifications, as well as safety precautions and traffic rules. Prior to permit to motor transport driver transportation of hazardous materials the mechanics is obliged to check up technical state of the vehicle, availability fire extinguishing medium, serviceability of the flashlight, fabric divertor, safety signs, as well as passing by the driver of medical examination. During transportation of hazardous materials the control over handling operations is assigned to the responsible engineering-technician. Material handling shall be executed on the specially equipped sites. Displacement of barrels with hazardous materials shall be carried out on arranged access and floor boards. During transportation of hazardous materials and heavy cargoes it is necessary to observe the following requirements: - vehicular distance shall be, at least, 50m; - if the visibility less than 300m transportation of goods is prohibited. F&L decant, receiving and issue operations shall be mechanized. The driver of gasoline tank truck shall be windward with shutdown engine. Gasoline tank truck travelling speed shall not exceed 50km/h, and on turns no more than 10km/h. The driver of filling truck shall initiate running after flashlight light-up. Consignor organization develops emergency response plans with delivery to the driver or its attendant. Emergency response plan for emergency recovery establishes procedure for warning, arrival and action of emergency crew, list of required property, tool and technology of their use.

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 110

7 NATURAL ENVIRONMENT MONITORING IN DRILLING

Monitoring covers observations of sources and factors of anthropogenic impacts. Monitoring may be carried out according to the physical, chemical and biological indexes. Investor’s policy applicable to environment, health and safety assigns as primary objectives updating of the required approvals with regard to environmental protection, management and implementation of the continuous environmental monitoring of environmental components condition in the area of industrial activity carrying out. It is necessary to classify potential environmental impact. Such approach assumes that such impact includes: - mechanical effect leading to change of land surface land and vegetation cover (construction of roads, drill sites, etc.) - noise impact (road traffic, vibration, etc.) - emission of chemically and physically active substances into the atmosphere (of solid, liquid and gaseous waste) - pollution of surface waters and soils. Therefore, during drilling of wells the water resources, atmosphere, soils and grounds will be exposed to the anthropogenic impact. The most important direction of monitoring are the observations over inadmissibility of the contaminated waters filtration from sludge pit, as well as over atmospheric air and soils pollution level in the vicinity of drill rig. It must be emphasized, in particular, the need of continuous monitoring of potential hydrogen sulfide air pollution. On the drill rigs, in premises and at the facilities with potential hydrogen sulfide emission into the air of work zone it is necessary to carry out continuous environmental monitoring by means of toxic gas monitors. Installation sites of sensors of stationary gas analyzers are determined by drilling detailed design. Stationary gas analyzers shall have sound and light signals with the output to control room (control panel) and in place of sensors installation shall pass installation inspection, as well as state inspection while in service at least once every two months. During drilling of production horizon it is necessary to establish systematic monitoring of hydrogen sulfide concentration through measuring by means of gas analyzer, indicator or laboratory analysis: - in hazardous areas due to outdoor hydrogen sulfide accumulation at least once a day; - in the enclosed rooms at least once per shift; - in tanks each time prior to commencement of works. Integrity of gland and flange joints, locking devices, indoor vessels and utilities shall be checked at least once per shift by menas of soapsuds. The most important environmental protection measure is the arrangement of environmental monitoring. Environmental monitoring is carried out for the purpose of providing of the observations, taking into account of assessment and forecast of environment and its resources. Environmental monitoring objectives are: - environmental monitoring in the territory of Khauzak-Shady Block and processes occurring there under the action of natural factors, subsurface use and other kinds of economic activities; - assessment of actual environmental conditions in the territory of Khauzak-Shady Block; - timely identification and assessment of the natural and anthropogenic processes affected environmental conditions in the territory of Khauzak-Shady Block.

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 111

According to Law of the Republic of Uzbekistan “On Environmental Protection” environmental, natural resources usage monitoring is carried out by the enterprises which activity results or may lead to environmental degradation. Carrying out of regular departmental environmental monitoring is an optimum environmental monitoring procedure and implemented by “LUKOIL Uzbekistan Operating Company” LLC according to agreed with Goskomprirody of the Republic of Uzbekistan “Program of departmental environmental monitoring”. The program provides monitoring characteristics, monitoring type and frequency, location and quality. The program is based on results and is continuation of earlier conducted surveys at Khauzak-Shady Block, and establishes procedure and key rules of environmental and simultaneous operations monitoring carrying out. The program provides following type of natural environment monitoring: - carrying out of natural environment monitoring, including environmental compartments sampling procedure; - primary information processing and results monitoring; - conducting of the required samples testing collected from environment components and their documenting; - processing and correlation of monitoring results, operational service and transmission of data on the environmental conditions. Following are the objects within the framework of environmental monitoring in the territory of Khauzak-Shady Block during construction of wells: - atmospheric air; - sufrave water bodies and water courses; - ground and underground waters; - soils; - flora and fauna; - radiation environment. During location of environmental monitoring points and assessment of their number it is necessary to take into account site size, scope of drilling, physical and geographical and other natural factors, “historic” pollution, as well as results of recent surveys. Monitoring network location concept is specification of environmental impact sources with reference to program of production well construction. Environmental monitoring observation network is arranged at two levels: - background (baseline) stations - for assessment of natural background concentration of components in natural environment; - local stations - for the natural environment pollution monitoring immediately in the areas of oil and gas operations to be performed, i.e. in the vicinity of production well construction. All drill sites in the territory of Khauzak-Shady Block when they are formed will be incorporated with local monitoring stations. However, the surveys are carried out both during work performance and following their completiobn semiannually. Location diagram of monitoring stations conducted in the first half-year of 2013 at Khauzak-Shady Block is shown in the Figure 7.1.

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 112 ɟɤɬɨɪ

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Dengizkul Lake

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- background stations

- local stations of air monitoring

- local stations of water monitoring

- local stations of soils monitoring

- biomonotoring sites Figure 7.1 - Location Diagram of Monitoring Stations at Khauzak-Shady Block in 2013 Atmospheric air monitoring is carried out according to the priority pollutants typical for oil and gas industry, namely: carbon oxide, nitrogen oxides (in terms of nitrogen dioxide), sulfur dioxide, hydrogen sulfide, hydrocarbons (totally). In addition, there is determined oxygen, nitrogen and carbon oxide gas (carbon dioxide) percentage in air. For assessment of air quality inside and at the boundary of drill sites and their sanitary- protection zones as sanitary-and-hygienic standards there are used established MPC standards of work zone, assessment of air quality outside of sanitary-protection zones (500m) is made according to the established one-time MPC and taking into account background concentration at control points.

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 113

It is planned to conduct on the sites of drilling wells the monitoring of subsurface waters tapped by temporary water supply wells. In addition, the single source of surface waters on the site – Dengizkul Lake is subject to monitoring. Waters monitoring will be carried out according to the following characteristics: ɪɇ, suspended particles, COD, total salinization, iron, mercury, hydrogen sulfide, phenols and oil products. Assessment of soil layer pollution in the vicinity of drilling sites will be made within the framework of soils monitoring (at a depth to 0.3m) and grounds (at a depth more than 3m). Iron, oil products content, as well as ɪɇ and dry residue of water extract are subject to the monitoring. Drill sites are also included in radiation monitoring, and are covered by surveys within the framework of biortic monitoring of adjacent flora and fauna. As noted above, construction of wells is performed partially within the Dengizkul Lake water protection zone being the state ornithological reserve. For the purposes of biodiversity conservation LUOC together with ornithologists carry out monitoring being guided by the Action Plan in which it is considered: - impact of proposed activity on biodiversity and renewable natural resources; - biodiversity and renewable natural resources management within the framework of activity to be carried out by LUOC, as well as adverse impact mitigation; - biodiversity protection measures on the sites of planned activity with the expressly specified period. Program of carried out in 2012 monitoring proposes recommendations which will be observed by LUOC, namely: x Some of the project field facilities are near to reed in the northern part of lake and the north-west bay. This year active planned drilling works and field development were performed near to the north-east extremity of lake. Next year works will be continued on the Northern Shady site. Therefore, for the purpose of prevention of reed disturbance in which birds live there will be created protection zone 1km width, and marked in the field, as well as included in the internal location diagrams of profiles and project layout drawings used by LUOC. x Installation of markers at the distance of 500m from water edge at maximum level of water registered over the last years, designating protection zone round the north-west bay which is the area of concentration and breeding of many species of birds. x In connection with the commencement of construction works on the site “Northern Shady” it is necessary to take measures for prevention of disturbance of birds in near-shore strip, and for this purpose it is advisably to install markers designating protection zone at the distance of 500m from the lakeshore. x In order to prevent possibility of migrating birds’ collision with power distribution line it is necessary during monitoring to continue identification of the most hazardous sites and install markers in the identified hazardous areas. At present such sites are the bridge and adjacent sites with power distribution lines: at the distance of 1km to the bridge and 3km outside of it. x For mitigation of negative impact of motor road and transport traffic – for prevention of mortality of birds from collision it is necessary to observe established limitation of speed and to make bridge guard visually noticeable having painted it in contrast colours. x It is necessary to continue monitoring ornithological surveys directed to studying of habitats and populations condition of various species of birds, revealing their concentration areas during various seasons of year and factors influencing them. At present the name plates of water protection zone are installed near each drill well on the Northern Shady site. All insulators on the poles of power distribution lines along lake are

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 114 equipped with special protective covers for prevention mortality of birds to be perished from electric current. Markers are installed in high risk zones – on the wires crossing the bridge. New additional markers development is continued. A number of recommendations are executed in 1 half-year of 2013. All obtained results and conclusions are summarized in the form of interim and final reports with their subsequent transfer to Goskomprirody of the Republic of Uzbekistan.

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 115

8 FORECAST OF ENVIRONMENT CHANGES

The development of this work has been made based on the analysis of the existent design, technical and environmental information. The subject of the activity is a construction of additional eight backup wells in the area of Khauzak-Shady with tying-in to current communications. The necessity of the construction is caused by the improvement of field recovery. The technical impact to environment depends on number of factors: the geological structure of deposit, qualitative composition of gas, recovery method, polluting substances release, formation pressure change in deposits, and degree of stability of natural environment components and so on. The design solutions have been developed relying on the above mentioned factors. The impact to atmosphere shall be expressed in diesel oil emissions: white damp, nitrogen piroxide, hydrocarbons, coal smut, sulphur dioxide, methylene oxide, benzopyrene. The impact sources are the internal combustion engines of drilling power units and diesel generators. The main pollutant of atmosphere in terms of volume of emissions and level of impact is the nitrogen dioxide. At normal operating conditions, the total atmosphere pollution is forecasted as insignificant. The further addition of pollutants of one vertical well comprises 15.768946 t/well, deviated well’s is 16,963006 t /well. The overall emissions from 8 wells comprise 130.9278 tons. The consistent wells construction shall not follow with application of pollutants to background air pollution. The analysis of dispersion filed of ground level concentration showed the absence of excess of permissible rates on all ingredients, which makes the basis for forecasting situation of air impact as the reasonable within the area of projected actions. The evaluation of cumulative impact has been carried out by summing the pollutants from the current impact sources into the impact to the Gas Production Department of Khauzak, forecasted by the emissions from the designed wells. The maximum permissible emissions received from the activity of Gas Production Department of Khauzak comprise 6679. 1373 t per a year, the forecasting emissions - 130.9278 tons, which comprises 1.96% from the total atmosphere pollution within the location of objects. Based on the submitted data, it can be supposed that the existent ambient level shall not be essentially changed during the implementation of design solutions. The supervision over the emissions shall be carried out with the help of monitoring. The impact to the lands is expressed by withdrawal for temporary use of lands, which are not being used in agriculture, in amount of 3.6 ha for one well. In order to save and to protect the soil, the actions, which provide the protection of geological formations and water bearing beds, are foreseen. The implementation of land recovery of damaged lands on drilling wells and within the whole territory of drilling sites and damaged lands during the transportation of equipment, gives the opportunity to avoid the impact to land cover. The selection of well sites shall be carried out based on the alternative solutions due to the location of number of wells within the water conservation area of Dengizkul lake. The implemented engineering prospecting researches on sites selection have defined the followings: The construction area of all additional wells is a long distance from the place of nesting of birds, that’s why the negative influence on reproduction success of priority and other kinds, shall not be made. The construction of new wells shall be the factor of reduction of area of inhabitation and worries for desert plants, birds, mammals and reptiles. However, taking into consideration the small areas, involved into the construction, (the temporary land allotment of

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 116

3.6 ha during the wells construction), the fugacity, as well as the dimensions of the land area of LUOC and considerably large areas of adjacent territories with similar habitats, it is possible to suppose that the impacted kinds will move to adjacent territories, thus, the construction works shall not pose a threat for their life. It is necessary to note that the wells location has been selected based on the maximum possible long distance form the Basin of Dengizkul Lake and least damage to plants and animals within the framework of the project economy. The location of areas for construction of additional wells near the existent communications allows the maximum usage of already-existing access roads, gas reservoirs and so on, that, in its turn, will allow reducing the impact of construction process to environment, as well as, will allow avoiding the defragmentation of inhabitation of desert animals. The above stated recommendations on location of areas for construction of additional wells shall allow reducing the damage being made during the construction process, as well as, will allow keeping the efficiency of technical and economic indexes of exploitation. In case of following all necessary measures previously foreseen in similar projects for construction of the existent well stock, the significant deterioration of inhabitations or increase of negative influence on plants and animals’ life is not expected. Upon construction completion, the wells shall be functioned in automatic mode with minimum equipment on the surface that excludes the negative influence on flora and fauna of the adjacent territories, and help restore the inhabitations, which were damaged during the construction. It is necessary to note that the wells construction is planned to carry out in close distance to well pads of the existent wells with current communications, thus, excluding the demand in construction of additional objects and impacts to soil and plant formation. The impact to water resources shall be expressed by withdrawal of water for technical needs from the water wells in amount of: - vertical well – 8.702 thousand m3; - deviated well (directional) – 8,702 thousand m3. The total water consumption for the period of drilling of all 8 wells is – 69.616 thousand m3. The drinking water consumption shall be resolved by the carriage from the close settlement. The water consumption for drilling is: - vertical well – 0.6075 thousand m3 - deviated well (directional) – 0.6075 thousand m3 The total drinking water consumption – 4.86 thousand m3. The waste water disposal from domestic, household and practical needs shall be foreseen to moisture- proof cesspool with further disinfection of content and disposal with drilling wastes in special equipped moisture proof sludge pit. Drilling Sewage Waters formed during the construction process, fixing and well testing, shall be disposed to the sludge pit with a moisture-proof surface of bottom and walls. The further cleaning (utilization) shall be followed in accordance with the Regulations. The amount of drilling waste water as per the wells kinds are as follows: - vertical well – 551.038 m3 - deviated well (directional) – 622.724 m3 The total amount of Drilling Sewage Waters during the construction of 8 wells – 4695.048 m3. The sewage waters disposal of industrial and household assignment to landscape is not allowed. The construction of wells is connected with formation of large quantity of drilling waste

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 117 presented as the drilling cuttings and used drilling mud of solid phase. The weight total amount of waste is 5469.152 tons, they are: - vertical well – 636. 367 ton/well or (636.367×4=2545.468 tons) - deviated well (directional)– 731 ton/well or (731×4=2924 ton) For collection of drilling cuttings and solid phase drilling mud, the square single-section pits shall be designed. The method of waste disposal shall be defined by Regulations for drilling waste disposal while construction of exploitation wells. The Regulations provide the disposal of drilling wastes by the method of solidification of cementing materials – class A cement or hardening composition EKO-2 by adding the bentonite as the filler. The Regulations provides for the class of hazard of drilling wastes (class 4), which allows the disposal of these wastes in sludge pits within the territory of drilling site upon the disinfection. The design provides for the additional moisture-proof sludge pits for drilling of wells No. 1053 (north part of Shady), 1055, 1056, 1057, 1058 (Khauzak) out of the territory of water conservation area. The waste disposal shall also be carried out in accordance with the Regulations. As the alternative variant, it is foreseen the collection into the temporary sludge pits with further transportation of solid phase of drilling wastes of deviated (directional) wells No. 1055, 1056,1057, 1058 of Khauzak area, are subject to landfills of drilling wastes of Gas Production Department of Khauzak. Upon the completion of construction, the sludge pits shall be liquidated, and the damaged lands shall be recovered. The sites for containers with Fuels and Lubricants for wells No. 1053, 1055, 1056, 1057, 1058 shall be constructed with strong water isolation and berms. In composition of ERP of drilling sites, it is required to foreseen the special section with certain actions on liquidation of possible failures related to unsealing of Fuels and Lubricants warehouse. Therefore, the design provides for the actions both of technical character and environmental one, which allow timely prevention from the negative impact to subsoil waters, flora and fauna and soils. Within the framework of the plan for prevention of biodiversity and Augmented design for monitoring of biodiversity, it is developed and approved by ornithologists and power engineers the advanced model of markers for power lines marking on the ways of bird migration, the information and warning signs on limits in water conservation area of Dengizkul lake have been installed in all parts of roads of Khauzak and Western Shady. It is also foreseen the regular instructional advice and informing the drilling contractor’s staff, on issues of biodiversity safety, on limited working mode within the water conservation area and on obligatory execution of all stated by design the actions. The implemented events are the environment protection events and they are directed to protection of species composition of birds inhabited in western area of Dengizkul lake. The main unfavorable factor of industrial environment during the drilling of gas well is significant level of noise and vibration. The exploitation of machines and mechanisms are followed with vibration and noise having different nature. The vibrations caused during the tripping process on drilling rigs, is a result of joint influence of statistic and dynamic sources. During the tripping operations, notwithstanding from the level of mechanization of hard works and functions, the vibration and noise influence on all members of drilling screw. But during the drilling operations, the driller is mostly influenced by vibration and noise. On drill rigs with a diesel-engine drive, the noise and vibration exceed the permissible sanitary

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 118 standards that influences negatively on drilling screw members’ health. This influence is limited by the time of execution of certain operations of drilling process. In case of presence of industrial noise and vibration, which exceeds the permissible sanitary standards, the statement shall provide the technical events for limitation of impact or provision with the antinoise tools. Within the framework of the executed monitoring, on drilling sites of Khauzak-Shady Block, the range of noise level varied at rate of of 40-60 dB, that does not exceed the permissible standards as per the SanPiN No.012-01. The main aspect of the statement is the location of designed wells in a long distance from settlements, in desert area of Alat district. This circumstance will allow keeping the ecosystem services to population at previous level, that is, the construction of wells shall not cause the changes for this kind of service. From the point of socio-economic, it is possible the increase of raw materials base by production of hydrocarbons during the implementation of the project. Thus, the construction of additional wells in the areas of Khauzak-Shady is possible providing the followings: - Clear execution of solutions while the designing; - following the administrative and technical measures on prevention of soil pollution, pollution of water environment, atmosphere; - Control over the soil constitution, subsurface waters, atmosphere on pollution source and its impact; - following the regulations for exploitation of technological equipment; - Accident-free drilling; - Timely transportation of unusable waste in industrial sites, by vehicles of specific purpose, with further ground disposal; - Transfer to specialized company for further processing or disinfection, recycling and so on; - improvement of ecological culture of staff and mandatory organization of Natural Environment monitoring.

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 119

CONCLUSION

The construction of vertical and directional backup wells in the areas of Khauzak-Shady of Dengizkul lake field is planned for improvement of field recovery. The backup wells shall be located with a maximum tying-in to the existent well pads. The environmental impact statement of being designed production has been developed based on the analysis of the existent condition and features of environment within the area of supposed construction. In the statement the possible impact sources, the type and nature of impact, as well as, the impact objects from the ecological point of view have been analyzed. The forecasting impact of construction objects to atmosphere condition, soils, flora and fauna, ecosystem services have been considered in this work. The objectively existent dangers of production both for working personnel and environment in profile of possible accident, have been described, the measures on prevention of both the emergency and possible unfavorable impacts to environment have also been intended. The wells construction sites have been chosen taking into account the alternative variants of locations and based on the engineering and ecological researches. The intended construction sites are located in sparsely populated area and far from the settlements that gives the opportunity to keep the ecosystem services at appropriate level. The potential objects of impact shall be air, soil, flora, fauna, subsurface waters. The formation of wastes at this level is not preventable, but the duration is limited by the period of wells construction. The impact of technological nature carries temporary and local nature. The ecosystem of flora and fauna, taking into account the recommendations proposed by ornithologists, as per the biodiversity, shall be kept in the advanced plan. Totally, it can be forecasted the ecological competence of projected activities execution providing the observance of technological discipline and implementation of environmental events. The additions to Environmental impact statement of construction of wells within the area of Khauzak-Shady of Dengizkul field, as per the legislation, are subject to State ecological expertise, and in case of positive report, it is a basis for works on construction of additional backup wells within the area of Khuazak Shady.

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 120

LIST OF LITERATURE

1. Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No.491 dated on December, 31, 2001 “On Approval of the Provision on State Environmental Expertise in the Republic of Uzbekistan”. 2. RD 39.0-140-2012. Procedure for Environmental Inventories for oil-and-gas production and oil-and-gas refining enterprises. OJSC “UzLITIneftgaz”, Tashkent, 2012. 3. Ecologist-expert Handbook. State Natural Conservation Committee of the Republic of Uzbekistan. Tashkent, 2009. 4. The practical policies on prevention of environmental pollution and subsoil protection while the wells construction process in drilling companies and UGS. SredazNIIGas, Tashkent, 1986. 5. RD 51-1-96. The practical policies on prevention of environmental pollution and subsoil protection while on-shore wells construction of hydrocarbon fields of polycomponent composition, including the sulphur ones. Moscow, 1998. 6. Ecological audit of contract area containing of: the area of Kandim group of fileds, areas of Khauzak-Shady, as well as, Kungrad area, LLC Lukoil- Vologradnipimorneft, Baku, 2005. 7. Design for development of areas of Khauzak and Shady of Dengizkul field. Protocol of CDC No. 4/1 dd. December 23, 2010. 8. Group detailed project and cost estimating documents for drilling of exploitation wells within the areas of Khauzak, Shady of Dengizkul field, JSC Uzlitineftegaz, Tashkent, 2005. 9. “Temporary policy of the investor in the sphere of industrial safety, labor and environment protection”. Steering Committee of Investors Consortium, Tashkent, 2004. 10. Instruction on inventory of pollution sources and standardization of emissions of pollutants into the atmospheric air for the enterprises of the Republic of Uzbekistan. Approved by the order No. 105 of the Chairman of the State Committee for Nature protection, December 15, 2005. 11. Construction standards and rules. (SNiP, KMK). 12. Manual for hazard assessment related to the possible accidents during the production, storage, usage and transportation of large amounts of fire hazardous, explosive and toxic matters”. Tashkent, 1993. 13. Designs for environmental impact statement for drilling of exploitation wells (vertical, directional wells) within the areas of Khauzak-Shady of Dengizkul field. Tashkent, 2005. 14. Environmental impact statement “Construction of exploitation wells within the area of Khauzak-Shady, Tashkent, 2008. 15. Environmental impact statement “Construction of exploitation wells within the area of Shady. Tashkent, 2010. 16. Advanced monitoring plan of biodiversity on the lake Dengizkul (ɊɉɆȻ). LUOC, Tashkent, 2012. 17. Report on initial engineering and ecological research and areas choice for construction of additional wells within the area of Khauzak-Shady, LUOC, Tashkent, 2013. 18. Report on ecological and social monitoring of LUOC activity for the 1st term of 2013. 19. Rules for Disposal of Drilling Cuttings during Construction of Production Wells at Shady Block. Tashkent, 2010. 20. KMK 2.04.01-98. Plumbing and Sewage System. Gosstroy. 1998. 21. KMK 2.04.03-97. Sewarage. Public Utilities. Gosstroy. 1997. 22. SNiP IV-2-82. Part IV. Estimate Standards and Rules.

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum 121

23. O'zDst 950: 2000. Potable Water. Hygienic Requirements and Quality Control. Tashkent. 2000. 24. RD-51-121-87. Current Individual Book-value Norms and Specifications of Water Consumption and Water Disposal in Gas Industry. 25. Technological design standards for oil, gas and water collection, transportation and treatment facilities.

“Dengizkul field Khauzak-Shady Block Wells Construction Environmental Impact Assessment” EIAS Project Addendum