Prepared for: Leviathan Project: Supplemental Noble Energy Lender Information Package – Overarching Environmental and Social Assessment Document September 2016 Environmental Resources Management 1776 I St NW Suite 200 Washington, DC 20006 www.erm.com The business of sustainability FINAL Prepared for: Noble Energy Leviathan Project: Supplemental Lender Information Package – Overarching Environmental and Social Assessment Document September 2016 Peter Rawlings Partner Environmental Resources Management 1776 I St NW Suite 200 Washington, DC 20006 202.466.9090(p) 202.466.9191(f) DISCLAIMER: This document has been created and is submitted as part of the application made by NOBLE ENERGY INTERNATIONAL LTD for OPIC's political risk insurance for the Leviathan project; The sole purpose of this document is to demonstrate alignment with applicable lender standards; This document is not intended to create nor does it create any legally binding obligation and/or commitment by NOBLE ENERGY INTERNATIONAL LTD or any of its subsidiaries or affiliates towards any third parties under applicable laws, including, without limitation, US and Israeli laws. ERM LEVIATHAN PROJECT-NOBLE ENERGY-SEPTEMBER 2016 TABLE OF CONTENTS 1.0 SUMMARY 1 2.0 INTRODUCTION 0 2.1 BACKGROUND 0 2.2 PURPOSE OF DOCUMENT 1 2.3 RELEVANT DOCUMENTS AND INFORMATION 1 2.4 STRUCTURE OF THIS DOCUMENT 2 3.0 PROJECT DESCRIPTION AND OVERVIEW 4 3.1 PROJECT DESCRIPTION 4 3.1.1 Offshore Components 4 3.1.2 Onshore Components 5 3.2 ASSOCIATED FACILITIES 8 3.2.1 Gas Transportation in Existing INGL Network 8 3.2.2 Gas Transportation in New INGL Pipeline 13 3.2.3 Jordan Pipeline 15 4.0 LEGISLATIVE FRAMEWORK AND APPLICABLE STANDARDS 16 4.1 REGULATORY STANDARDS 16 4.1.1 TAMA (National Outline Plan) 16 4.1.2 Licensing and Permitting 16 4.2 APPLICABLE STANDARDS 17 5.0 APPROACH TO ENVIRONMENTAL AND SOCIAL RISK ASSESSMENT AND MANAGEMENT 25 5.1 POLICY AND MANAGEMENT 25 5.2 IDENTIFICATION OF RISKS AND IMPACTS 26 5.3 ORGANIZATIONAL CAPACITY 26 5.4 SOCIAL PERFORMANCE 26 5.4.1 Stakeholder Engagement Plan 26 5.4.2 Consultation and Disclosure 27 5.4.3 Community Feedback Mechanism 28 5.4.4 Labor and Working Conditions 28 5.5 HEALTH AND SAFETY 29 5.5.1 Occupational Health and Safety (OHS) 29 ERM i LEVIATHAN PROJECT-NOBLE ENERGY-SEPTEMBER 2016 5.5.2 Safety Plan 29 5.5.3 Emergency Preparedness and Response 30 5.5.4 Oil Spill Contingency Plan (OSCP) 30 5.5.5 Infrastructure and Equipment Design and Safety 31 5.5.6 Hazardous Materials Management and Safety 31 5.5.7 Security Personnel 32 5.5.8 Workers Engaged by Third Parties 32 5.5.9 Safety Management 32 5.6 RESOURCE EFFICIENCY AND POLLUTION PREVENTION 32 5.6.1 Energy Efficiency 32 5.6.2 Climate Change 33 5.6.3 Greenhouse Gas Emissions 33 5.6.4 Water Consumption 35 5.6.5 Pollution Prevention 35 5.6.6 Wastes 36 5.6.7 Hazardous Materials 37 5.6.8 Pesticides 37 5.7 MANAGEMENT PROGRAM 38 6.0 ALTERNATIVES ANALYSIS 39 7.0 OFFSHORE ENVIRONMENTAL BASELINE AND IMPACTS 51 7.1 BIOLOGICAL RESOURCES BASELINE AND IMPACT ASSESSMENT 51 7.1.1 Biological Resources Baseline – Leviathan Field 51 7.1.2 Biological Resources Baseline – Pipeline Corridor 53 7.1.3 Biological Resources Impact Assessment – Leviathan Field 55 7.1.4 Biological Resources Impact Assessment – Pipeline Corridor 59 7.2 HABITAT ASSESSMENT 64 7.2.1 Introduction and Scope 64 7.2.2 Spatial Boundaries 65 7.2.3 Modified and Natural Habitats 65 7.2.4 Critical Habitat Assessment 66 7.2.5 Conclusions Regarding Offshore Critical Habitats 67 7.2.6 Recommendations for a Biodiversity Action Plan 67 7.3 PHYSICAL RESOURCES BASELINE AND IMPACT ASSESSMENT 67 7.3.1 Physical Resources Baseline – Leviathan Field 67 7.3.2 Physical Resources Baseline – Pipeline Corridor 69 7.3.3 Physical Resources Impact Assessment – Leviathan Field 71 7.3.4 Physical Resources Impact Assessment – Pipeline Corridor 73 7.4 CULTURAL HERITAGE RESOURCES 75 7.4.1 Cultural Heritage Baseline – Leviathan Field 75 7.4.2 Cultural Heritage Baseline – Pipeline Corridor 75 7.4.3 Cultural Heritage Impact Assessment – Leviathan Field 75 7.4.4 Cultural Heritage Impact Assessment – Pipeline Corridor 76 ERM ii LEVIATHAN PROJECT-NOBLE ENERGY-SEPTEMBER 2016 8.0 ONSHORE ENVIRONMENTAL BASELINE AND IMPACTS 77 8.1 BIOLOGICAL RESOURCES BASELINE AND IMPACT ASSESSMENT 77 8.1.1 Biological Resources Baseline 77 8.1.2 Biological Resources Impact Assessment 79 8.2 HABITAT ASSESSMENT 84 8.2.1 Introduction and Scope 84 8.2.2 Modified and Natural Habitats 84 8.2.3 Critical Habitat Assessment 85 8.2.4 Conclusions Regarding Onshore Critical Habitats 89 8.2.5 Recommendations for a Biodiversity Action Plan 90 8.3 PHYSICAL RESOURCES BASELINE AND IMPACT ASSESSMENT 90 8.3.1 Physical Resources Baseline 90 8.3.2 Physical Resources Impact Assessment 91 8.4 CULTURAL HERITAGE RESOURCES 92 8.4.1 Cultural Heritage Baseline 92 8.4.2 Cultural Heritage Impact Assessment 92 9.0 SOCIAL AND HEALTH BASELINE AND IMPACTS 93 9.1 CONTEXT 93 9.2 SCOPE 93 9.3 METHODOLGY FOR ASSESSING SOCIAL AND HEALTH IMPACTS 95 9.4 POTENTIAL IMPACTS 97 9.4.1 Discussion of stakeholders 97 9.4.2 Offshore 98 9.4.3 Onshore/Nearshore 100 9.5 ECOSYSTEM SERVICES 111 9.5.1 ESS Screening 112 9.5.2 ESS Scoping 116 9.5.3 Impact Assessment and Recommendations 121 10.0 HUMAN RIGHTS DUE DILIGENCE 122 10.1 INTRODUCTION 122 10.2 PURPOSE AND GOALS OF DUE DILIGENCE 122 10.3 ISRAELI CONTEXT 124 10.4 ASSESSMENT 125 10.4.1 General Policies and Procedures 125 10.4.2 Labor and Working Conditions 125 10.4.3 Local Communities 128 ERM iii LEVIATHAN PROJECT-NOBLE ENERGY-SEPTEMBER 2016 10.4.4 Supplier Engagement (Social Issues Only) 130 10.4.5 Security Provision 131 10.5 CONCLUSIONS 132 11.0 CUMULATIVE IMPACT ASSESSMENT 133 11.1 INTRODUCTION 133 11.2 VALUED ENVIRONMENTAL AND SOCIAL COMPONENTS 133 11.3 OTHER DEVELOPMENTS 134 11.4 VEC IMPACT ASSESSMENT 138 11.4.1 Landscape and Visual Impact 138 11.4.2 VEC local employment and economy 141 11.4.3 Tourism 145 11.4.4 Sea turtle nesting at Dor Beach 147 11.4.5 Ramot Menashe Biosphere Reserve 147 12.0 MITIGATION AND MANAGEMENT 150 12.1 MITIGATION MEASURES 150 12.1.1 Biological and Physical Mitigation Measures 150 12.1.2 Social Mitigation Measures 161 12.1.3 Cultural Heritage 164 12.1.4 Human Rights 165 12.2 ENVIRONMENTAL AND SOCIAL MANAGEMENT PLANS 166 12.2.1 Introduction 166 12.2.2 Environmental Management and Monitoring Plan 166 12.2.3 Offshore Activities 169 12.2.4 Alignment with the IFC PS 172 12.2.5 Biodiversity and Habitats Management 176 12.2.6 Social Management Plans 177 12.2.7 Environmental Monitoring Plans 178 12.3 ENVIRONMENTAL AND SOCIAL MANAGEMENT SYSTEM 179 12.4 CUMULATIVE IMPACT MANAGEMENT AND MITIGATION 179 ERM iv LEVIATHAN PROJECT-NOBLE ENERGY-SEPTEMBER 2016 LIST OF FIGURES Figure 2-1: Relationship between Impact Assessment Studies and the Project layout .................................2 Figure 3-2: Offshore System Components (Source: Noble Energy, 2016) .......................................................5 Figure 3-3: Onshore Project Components (Source: Noble Energy 2016) .........................................................6 Figure 3-4: Schematic drawing of the condensate removal system .................................................................7 Figure 3-5: INGL’s current and planned natural gas pipelines. ......................................................................9 Figure 9-1: Significance ranking matrix for social and health issues .............................................................96 Figure 9-2: Pipeline route from DVS to Hagit showing 60 m corridor ........................................................105 Figure 9-3: TAMA right-of-way and Israel National Trail ............................................................................108 Figure 11-1: Eastern Mediterranean Developments .......................................................................................137 Table 12-2: Aspects that will be developed into management plans ...........................................................169 Table 12-3: WBG EHS Guidelines – Supplementary Requirements to the EMMP ....................................173 LIST OF TABLES Table 4-1 Summary of gap analysis against applicable standards .................................................................19 Table 5-1 GHG emissions during construction and operation (metric tons) ................................................34 Table 6-1 Project Development Alternative Analysis .......................................................................................40 Table 6-2 Project Components Alternative Analysis ........................................................................................42 Table 6-3 Project Technology Alternative Analysis ..........................................................................................46 Table 9-1 leviathan ecosystem service screening ............................................................................................113 Table 9-2: ecosystem services scoping results .................................................................................................117 Table 11-1: Offshore developments – Levant basin ........................................................................................135 Table 11-2: VEC description – Landscape and visual .....................................................................................139 Table 11-3: VEC description – Local employment and economy .................................................................142 Table 11-4: VEC description – Tourism ............................................................................................................145