REPORT ESHIA report for appraisal well Shpirag-5 in Blocks 2-3 Albania Part of the of Environmental, Social and Health Impact Assessment Process of Shpirag-5 appraisal well Client: Shell Upstream Albania B.V Reference: BF6702IBRP1910291153 Status: 1.0/Final Date: 25 November 2019 Project related HASKONINGDHV NEDERLAND B.V. Laan 1914 no.35 3818 EX AMERSFOORT Industry & Buildings Trade register number: 56515154 +31 88 348 20 00 T +31 33 463 36 52 F [email protected] E royalhaskoningdhv.com W Document title: ESHIA report for appraisal well Shpirag-5 in Blocks 2-3 Albania Document short title: Final ESHIA Report Shpirag-5 Reference: BF6702IBRP1910291153 Status: 1.0/Final Date: 25 November 2019 Project name: ESHIA Shpirag-5 Project number: BF6702 Author(s): Klodian Aliu, Etleva Bodinaku, Christiaan Hoetz, Violeta Paginu, Prof. Ferdinand Bego, Prof.Lida Miraj, Klodjan Seferaj Christiaan Hoetz, Klodian Aliu, Etleva Drafted by: Bodinaku Checked by: Erik Zigterman Date / initials: 25 November 2019 Approved by: Erik Zigterman Date / initials: 25 November 2019 Classification Project related Disclaimer No part of these specifications/printed matter may be reproduced and/or published by print, photocopy, microfilm or by any other means, without the prior written permission of HaskoningDHV Nederland B.V.; nor may they be used, without such permission, for any purposes other than that for which they were produced. HaskoningDHV Nederland B.V. accepts no responsibility or liability for these specifications/printed matter to any party other than the persons by whom it was commissioned and as concluded under that Appointment. The integrated QHSE management system of HaskoningDHV Nederland B.V. has been certified in accordance with ISO 9001:2015, ISO 14001:2015 and OHSAS 18001:2007. 25 November 2019 FINAL ESHIA REPORT SHPIRAG-5 BF6702IBRP1910291153 ii Project related Table of Contents Table of Contents iii 1 The aim of the ESHIA and its methodology 14 1.1 Objectives of the ESHIA 14 1.2 Summarized description of the Legal and Regulatory Framework 16 1.2.1.1 Environmental approval procedure and main stakeholders 19 1.2.1.2 International Agreements and Conventions 20 1.2.1.3 European legislation 21 1.2.1.4 International Best Practice Standards and Guidelines 21 1.3 Description of the Methods for preparation of the ESHIA report 21 1.3.1 Authors 22 1.3.2 Methodology for the collection of the information for the ESHIA 25 1.3.3 Consultations with stakeholders and groups of interest during ESHIA process 26 1.3.4 Main constraints during the preparation of the ESHIA Report 28 2 Project description 29 2.1 The aim of the proposed project 29 2.1.1 The larger appraisal programme 29 2.1.2 Project phases of appraisal well Shpirag-5 30 2.2 Location of the Project area 33 2.3 Layout of the required objects and structures for the project needs 43 2.4 Description of the construction operations including the production/processing capacities, raw materials quantities and the final products 51 2.5 Secondary infrastructure 56 2.5.1 Access roads 56 2.5.2 Water pipeline 58 2.5.3 Power supply 62 2.5.4 Waste management infrastructure 62 2.5.4.1 Waste generation 62 2.5.4.2 Infrastructure for the generated waste streams 66 2.6 Project implementation timeframe including construction, operation and rehabilitation phases 68 2.7 Construction methods for the project structures 68 2.8 Raw materials for the construction phase and their sources of supply 69 2.9 Possible interaction of the proposed project with other projects in the area 70 2.10 Information on the alternatives taken into the consideration regarding the location and technology 73 2.11 Consumption of the raw materials (water, power, fuels) during the operation phase and supply options 73 25 November 2019 FINAL ESHIA REPORT SHPIRAG-5 BF6702IBRP1910291153 iii Project related 2.12 Other auxiliary infrastructure related to the project implementation 75 2.13 Relevant permits and licenses required by the legislation and the relevant issuing authorities. 76 2.13.1 Existing permits and licences 77 3 Analysis of considered alternatives 78 3.1 Autonomous development (No-project alternative) 78 3.2 History 2011-2017: Location choice within larger Shpirag area 79 3.3 Two well pad location alternatives considered in this ESHIA process 80 3.4 Water supply options 81 4 Baseline environmental data 84 4.1 Physical environment 84 4.1.1 Climate and meteorology 84 4.1.2 Geology 86 4.1.3 Seismicity and geologic hazards 89 4.1.4 Geomorphology 92 4.1.5 Soils 92 4.1.6 Surface water 93 4.1.7 Groundwater 96 4.2 Biodiversity and habitats 99 4.2.1 Main habitats in the project area 99 4.2.2 Vegetation types 99 4.2.3 Endangered and threatened plant species in the area 105 4.2.4 Fauna and habitats 108 4.2.5 Endangered and Threatened Fauna species 112 4.2.6 Protected areas and natural monuments 114 4.3 Environmental quality and existing impacts 114 4.3.1 Soil quality 114 4.3.2 Water quality 115 4.3.3 Noise levels and light 118 4.3.4 Waste administration 121 4.3.5 Other environmental concerns 123 4.3.6 Main pressures to the environment 123 4.4 Socio-economic environment and Health baseline 126 4.4.1 Administrative unit 129 4.4.1.1 Governance and Administration 130 4.4.1.2 Planning and Development 133 4.4.2 Population, main economic activities and livelihood 133 4.4.2.1 Population and settlements 133 4.4.2.2 Education and skills at project area 136 4.4.2.3 Vulnerable groups 139 4.4.2.4 Community health 139 25 November 2019 FINAL ESHIA REPORT SHPIRAG-5 BF6702IBRP1910291153 iv Project related 4.4.2.5 Economy and livelihoods 140 4.4.3 Land use and ownership 144 4.4.4 Infrastructure and public services 145 4.4.4.1 Transport in Shpirag-5 project area 145 4.4.4.2 Public Services 145 4.4.5 Archaeology and cultural resources 147 4.4.5.1 The Surveyed Zone 148 4.4.5.2 Methodology 148 4.4.5.3 Results of the Survey 148 4.4.5.4 Conclusions and recommendations regarding archaeology 149 5 Analysis of the potential negative impacts to the environment 150 5.1 Potential negative impacts from the appraisal well project 150 5.1.1 Negative impacts to the physical environment 150 5.1.1.1 Potential Impacts to the Soil 150 5.1.1.2 Potential impacts to the groundwater 153 5.1.1.3 Potential impacts to the surface water 154 5.1.1.4 Potential impacts on seismicity 156 5.1.2 Negative impacts to the biodiversity and habitats 156 5.1.3 Discharges into the environment and waste generation 161 5.1.3.1 Air emissions 161 5.1.3.2 Odour 164 5.1.3.3 Noise and light 165 5.1.3.4 Solid and liquid waste streams 169 5.1.4 Cumulative negative impacts to the environmental quality of the area and natural resources 173 5.1.5 Potential social and health impacts 173 5.1.6 Potential environmental accidents or unplanned events 180 5.1.6.1 Management and control of major accidents: methodology 185 5.1.6.2 Using the ERP for Shpirag 5. 187 5.2 Identified negative impact characteristics (assessment of negative impacts) 191 5.2.1 The applied methodology for the environmental impact assessment 192 5.2.2 Identification of Sensitive receptors and/or areas 192 5.2.3 The selected matrix system to assess the impacts 193 5.2.4 SUA standard measures 195 5.2.4.1 General measures in the Project Design 195 5.2.4.2 Measures related to the physical environment 195 5.2.4.3 Measures related to biodiversity and habitats 198 5.2.4.4 Measures related to discharges into the environment and waste generation 199 5.2.4.5 Measures related to social impacts 205 5.2.4.6 Measures related to Health and safety 207 25 November 2019 FINAL ESHIA REPORT SHPIRAG-5 BF6702IBRP1910291153 v Project related 5.2.5 Impact assessment 212 5.2.5.1 Impact assessment matrix for the Preferred location 212 5.2.5.2 Impact assessment matrix for the Alternative location 214 5.2.5.3 Clarification of the IA scoring tables 215 5.2.6 Results of Alternative analysis 225 6 Potential transboundary impacts 228 7 Potential positive impacts of the project 229 8 Mitigation measures 230 9 Environmental monitoring of the project implementation 233 10 Environmental Management and Monitoring Plan 235 10.1 Introduction 235 10.2 Shell commitment and policy on Health, Security, Safety, the Environment and Social Performance 236 10.3 Roles and responsibilities 237 10.4 Project code of conduct 238 10.5 Training 238 10.6 Impact Prevention and Mitigation 239 10.7 EMMP costs 243 10.8 Stakeholder Engagement Plan 243 10.9 Emergency Response Plan 243 10.10 Reclamation and Abandonment Plan 244 10.10.1 Initial reclamation (after drilling) 244 10.10.2 Well abandonment 244 10.10.3 Final reclamation of the well site, access road and ancillary facilities 245 Table of Tables Table 1: List of relevant International agreements and conventions ratified by Albania. 20 Table 2: Steps of the ESHIA development 22 Table 3: Summary of Shpirag field appraisal phases 33 Table 4: Coordinates of Preferred location and its immediate surrounding area 37 Table 5: Coordinates of Alternative location and its immediate surrounding area 37 Table 6: Main components of the drilling rig.