Environmental Impact Assessment for Proposed Exploratory Drilling at PR-OSN-2004/1 Block in Offshore Palar Basin, Nellore (AP) - Bay of Bengal (INDIA) Sponsor Cairn Energy India Pty. Limited, Gurgaon, Haryana National Environmental Engineering Research Institute, Nehru Marg, Nagpur 440 020 November 2010 Environmental Impact Assessment for Proposed Exploratory Drilling at PR-OSN-2004/1 Block in Offshore Palar Basin, Nellore (AP) - Bay of Bengal (INDIA) (FINAL REPORT) Sponsor Cairn Energy India Pty. Lmited, Gurgaon, Haryana National Environmental Engineering Research Institute, Nehru Marg, Nagpur 440 020 November 2010 Project Personnel Scientific Staff Mr. Baseshankar, Y Mr. Deshbhratar, P.B. Mr. Ghuge, S.P. Dr. Krupadam, R.J. Dr. Moghe, C.A. Dr. Ramteke, D.S. Mr. Salve, P.R. Dr. Shastry, S. Dr. T.V.B.P.S, Rama Krishna Dr. Singh, H.V. Dr. Raman, N.S. Project Staff Mr. Krishna Mohan Mr. Gudaghe, S. Ms. Chawan, A. Ms. Warudkar, S. Mr. Indurkar, M. Ms. Dhadse, S. Ms. Khandar, C. D. Chennai Zonal Laboratory Dr. (Mrs.) Sandhya, S. Mr. Narayanswami, V.S. Dr. Sivacoumar, R. Mr. Nesraj, T. A. Technical Assistance Mr. Dhawale, A.H. Mrs. Srinivasan, P.C. CEIL, Gurgaon, Haryana Mr. Jaishankar Krishnan Mr. Manna, Debashish. Project Leaders Dr. Wate, S.R Dr. Kankal, N.C. Project Co-ordinator Dr. Tapan Chakraborti Director DISCLAIMER The information contained in the report is based on the scientific analysis of data/information/drawings provided by the sponsor as also collected from other sources during the time of the study. While efforts have been made to ensure accuracy of information in the report, NEERI shall not own, in any manner, any legal, financial or consequential responsibility for any event of occurrence of any accident/hazard or direct or indirect damage/loss to any third party or to sponsor due to the use or inability to use the information contained in the report. The sponsor shall exercise due diligence and make their own decision to implement the contents of the report. The report shall not be construed as any guarantee or warranty from NEERI. Table of Contents Item Page No. Chapter 1: Introduction 1.1 to 1.23 1.1 Purpose of the Report 1.2 1.2 Brief Description of the Project 1.2 1.3 Location of the Project 1.6 1.4 Environmental Setting 1.8 1.5 Importance of the Project 1.10 1.6 Scope of the EIA Study 1.12 1.7 Objective of the EIA 1.12 1.8 Components of the EIA Study 1.13 1.9 Environmental and Social Baseline Status 1.13 1.9.1 Physical Environment 1.14 1.9.2 Biological Environment 1.15 1.9.3 Socio-economic Environment 1.16 1.10 Primary Baseline Monitoring 1.17 1.11 Environmental and Social Impact Assessment 1.18 1.12 Management and Control of Impacts 1.19 1.13 Quantitative Risk Assessment 1.19 Chapter 2: Project Description 2.1 to 2.22 2.1 Introduction 2.1 2.2 Overview of the Project 2.2 2.2.1 Project Location 2.2 2.2.2 Need for the Project 2.7 2.2.3 Petroleum Systems Analysis 2.8 2.3 Drilling Process Description 2.9 2.3.1 Jack-up Unit 2.9 2.3.2 Onshore Facilities 2.10 2.3.3 Support Vessels 2.12 2.3.4 Drilling Operation 2.13 2.3.5 Utilities and Resources 2.16 2.3.6 Wastes and Emissions 2.20 i Item Page No. Chapter 3: Baseline Environmental Status 3.1 to 3.76 3.1 Physical Environment 3.2 3.1.1 Geography and Geomorphology 3.2 3.1.2 Bathymetry 3.3 3.1.3 Oceanography 3.5 3.1.4 Hydrology 3.6 3.1.5 Cyclones, Storms & Surges 3.9 3.1.6 Precipitation, Evaporation and Water Balance 3.12 3.1.7 Climate and Meteorology 3.13 3.1.8 Air Quality 3.17 3.1.9 Noise Quality 3.25 3.1.10 Water Quality 3.27 3.1.11 Sediment Quality 3.38 3.1.12 Natural Hazards 3.44 3.2 Biological Environment 3.47 3.2.1 Terrestrial Environment 3.47 3.2.2 Marine Environment 3.55 3.2.3 Coastal Environment 3.58 3.3 Socio-economic Environment 3.59 3.3.1 Demographic Structure 3.60 3.3.2 Infrastructure Resources 3.64 3.3.3 Economic Activity & Livelihood pattern 3.72 3.3.4 Cultural Background 3.76 Chapter 4: Anticipated Environmental Impacts & Mitigation Measures4.1 to 4.46 4.1 Introduction 4.1 4.2 Prediction and Management of Environmental Impacts 4.1 4.3 Impact Identification 4.1 4.3.1 Anticipated Impacts 4.2 4.4 Prediction of Impacts 4.3 4.4.1 Impact Due to Physical Presence 4.3 4.4.2 Discharges of Drilling Fluids 4.4 4.4.3 Impact due to discharge of drill cuttings 4.7 4.4.4 Impact due to solid waste discharge 4.9 4.4.5 Ecological Impacts 4.10 ii Item Page No. 4.4.6 Oil Spill 4.12 4.4.7 Prediction of GLCs due to DG Sets on the Rig at Palar Offshore 4.16 4.4.8 Acoustic Disturbance 4.17 4.4.9 Socio-economic Impacts 4.18 4.5 Health, Safety and Environment Management System 4.19 4.5.1 Occupational Health and Safety Management 4.20 4.6 Risk Management and Emergency Response 4.21 4.7 Oil Spill Contingency Plan 4.22 4.7.1 Strategies for Prevention and Control of Minor & Major Oil Spills 4.22 4.7.2 Oil Spill Response/Control Equipment 4.25 4.8 Cairn Energy Oil Spill Disaster Contingency Plan 4.27 4.8.1 CEIL Emergency Management Philosophy 4.28 4.8.2 CEIL Emergency Response Hierarchy 4.29 4.8.3 CEIL Emergency Management Organization 4.29 4.8.4 Oil Spill Response Management 4.29 Chapter 5: Analysis of Alternatives 5.1 5.1 Technology Alternatives 5.1 Chapter 6: Environmental Monitoring Programme 6.1 to 6.7 6.1 Introduction 6.1 6.2 Monitoring Regulatory Compliance 6.1 6.2.1 Environment Clearance 6.1 6.2.2 Consents from APPCB 6.2 6.2.3 Industry Specific Standards 6.2 6.3 Operations Monitoring 6.3 6.3.1 Preparatory Phase 6.3 6.3.2 Drilling Phase 6.4 6.3.3 Well Testing, Suspension and Abandonment Phase 6.5 6.4 Environmental Performance Monitoring 6.5 Chapter 7: Additional Studies 7.1 to 7.33 7.1 Public Consultation 7.1 7.1.1 Public Hearing 7.1 7.2 Risk Assessment 7.9 7.2.1 Objectives 7.9 iii Item Page No. 7.2.2 Scope of Work 7.9 7.3 Maximum Credible Accident (MCA) Analysis 7.10 7.4 Past Accident Data Analysis 7.11 7.5 Consequence Analysis 7.11 7.6 Scenario Identification 7.12 7.6.1 Release from Well 7.12 7.6.2 Flash Fire 7.12 7.6.3 Pool Fire 7.13 7.6.4 Failure Case Listing 7.13 7.6.5 Models for the Calculation of Heat Loads 7.14 7.5.4 Burning Torch (Flare) 7.14 7.7 Injuries to Human Population 7.14 7.7.1 Vulnerability Models 7.14 7.7.2 Health Injuries Resulting from Flammable Liquids and Gases 7.15 7.8 Results and Discussions 7.15 7.9 Risk Mitigation Measures 7.16 7.9.1 Well Blow Out 7.16 7.9.2 Helicopter Crash 7.18 7.9.3 Control Panel 7.21 7.9.4 Instrumentation in Mud System 7.21 7.9.5 Risks to Personnel 7.22 7.9.6 Precautionary Measures for Falling Objects 7.22 7.9 Disaster Management Plan (DMP) 7.23 7.9.1 Objectives 7.23 7.9.2 Key Elements 7.23 Chapter 8: Project Benefits 8.1 to 8.4 8.1 Demand of Crude Oil 8.1 8.2 Improvement in the Physical Infrastructure 8.2 8.3 Improvement in the Social Infrastructure 8.3 Chapter 9: Environmental Cost Benefit Analysis 9.1 Chapter 10: EMP – Administrative Aspects 10.1 to 10.8 10.1 Introduction 10.1 10.2 Corporate Responsibility Management System 10.1 10.2.1 Guiding Principles 10.4 iv Item Page No. 10.2.2 Core Management Processes 10.4 10.2.3 Gated Processes 10.6 10.3 Well Engineering Policy and Management Controls 10.8 10.4 General Recommendations 10.8 10.2 Corporate Responsibility Management System 10.1 10.2.1 Guiding Principles 10.4 10.2.2 Core Management Processes 10.4 10.2.3 Gated Processes 10.6 10.3 Well Engineering Policy and Management Controls 10.8 10.4 General Recommendations 10.8 Chapter 11: Summary and Conclusions 11.1 to 11.21 11.1 Introduction 11.1 11.2 Project Description 11.2 11.2.1 Need for the Project 11.2 11.2.2 Petroleum Systems Analysis 11.3 11.2.3 Drilling Process Description 11.3 11.2.4 Wastes and Emissions 11.7 11.2.5 Project Cost and Schedule 11.8 11.3 Baseline Environmental Status 11.8 11.3.1 Geography and Geomorphology 11.8 11.3.2 Oceanography 11.9 11.3.3 Ambient Air and Noise Quality 11.10 11.3.4 Surface Water Quality 11.10 11.3.5 Sediment Quality 11.11 11.3.6 Biological Environment 11.11 11.3.7 Socio-economic Environment 11.12 11.4 Anticipated Impacts and Mitigation Measures 11.12 11.4.1 Impacts due to Physical Presence 11.13 11.4.2 Impacts from discharges to Sea 11.13 11.4.3 Impacts from Potential Oil Spills 11.14 11.4.4 Impacts to Air and Noise Environment 11.15 11.4.5 Socio-economic Impacts 11.16 11.5 Environmental Monitoring Programme 11.16 11.6 Additional Studies 11.17 11.7 Project Benefits 11.18 v 11.8 Environment Management Plan 11.19 11.9 Conclusions 11.20 Chapter 12: Disclosure of Consultants 12.1 to 12.12 12.1 General Information 12.1 12.2 Establishment 12.1 12.3 Mandate of NEERI 12.2 12.4 Thrust Areas 12.4 12.5 NEERI’S Focus Areas 12.4 12.6 NEERI’s Vision 12.6 12.7 NEERI’s Mission 12.6 12.8 Quality Objectives 12.6 12.9 Organization Chart 12.7 12.10 Infrastructure 12.7 12.11 List of Technologies 12.10 Annexure Annexure 1: Terms of Reference issued by MoEF A1.1 to A1.3 Annexure 2: Structure of EIA Report A2.1 to A2.2 Annexure 3A: Physical Environment Section A3.1 to A3.40 Annexure 3B: Biological Environment Section A3.41 to A3.50 Annexure 3C: Socio-economic Environment Section A3.51 to A3.71 Annexure 4 Marpol Convention A4.1 to A4.4 Annexure 5 Environmental Standards for Oil & Gas Industry A5.1 to A5.4 Annexure 6 Water Quality Criteria as per Global Environmental Monitoring Stations/ Monitoring of Indian National Aquatic Resource A6.1 Annexure 7 Public Hearing Details A7.1 to A7.25 vi List of Figures Fig.