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Envir Fract Coop Augu Supp Oper Ronme Ture S Per Ba Ust 20 Pleme

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Envir Fract Coop Augu Supp Oper Ronme Ture S Per Ba Ust 20 Pleme Environmental Assesssment Report Fracture Stimulation Operations in the Cooper Basin, South Australia August 2014 Supplement to the Drilling and Well Operations EIR 2003 Table of Contents 1. Introduction ........................................................................................................................................ 5 1.1. Background ........................................................................................................................... 5 1.2. Santos Cooper Basin Operations ......................................................................................... 5 1.3. Intent of Document ................................................................................................................ 5 1.4. What is fracture stimulation ................................................................................................... 6 2. Legislative Framework ...................................................................................................................... 9 2.1. Petroleum and Geothermal Energy Act 2000 ...................................................................... 9 2.2. Statement of Environmental Objectives ............................................................................. 10 2.3. Environmental Impact Report ............................................................................................. 10 2.4. Activity Notification .............................................................................................................. 10 3. Well Design and Best Practice ........................................................................................................ 11 3.1. Comparison to International Best Practice ......................................................................... 11 3.2. Well Mechanical Integrity and Inteegrity Testing ................................................................. 12 4. Description of the Fracture Stimulation Process ............................................................................ 21 4.1. Introduction ......................................................................................................................... 21 4.2. Description of Hydrocarbon Reservoir Formations in the Study Area ............................... 21 4.3. Purpose of the Fracture Stimulation Process .................................................................... 25 4.4. Fracture Stimulation Design Considerations ..................................................................... 26 4.5. Fracture Stimulation Process Description .......................................................................... 29 4.6. Infrastructure and Equipment Used ................................................................................... 32 4.7. Stages of Fracture Stimulation ............................................................................................ 36 4.8. Fracture Stimulation Water Use .......................................................................................... 46 4.9. Other Components of Fracture Stimulation Operations ..................................................... 48 5. Location ........................................................................................................................................... 50 5.1. Cooper Basin ...................................................................................................................... 50 5.2. Geology and Hydrogeology ................................................................................................ 50 6. Environment .................................................................................................................................... 59 6.1. Biophysical Environment ..................................................................................................... 59 6.2. Social Environment ............................................................................................................. 67 Page 1 of 110 Environmental Assessment Report – Fracture Stimulation Operations 6.3. Heritage .............................................................................................................................. 69 6.4. Stakeholder Consultation ................................................................................................... 70 7. Risk Assessment ............................................................................................................................ 72 7.1. Geology .............................................................................................................................. 74 7.2. Aquifers .............................................................................................................................. 74 7.3. Soil and Shallow Groundwater ........................................................................................... 79 7.4. Surface Water .................................................................................................................... 82 7.5. Stock / Wildlife and Vegetation .......................................................................................... 83 7.6. Noise and Air Emissions .................................................................................................... 85 7.7. Radioactivity ....................................................................................................................... 86 7.8. Seismicity ........................................................................................................................... 86 7.9. Public Safety ...................................................................................................................... 87 7.10. Cultural Heritage ................................................................................................................ 87 7.11. Risk Assessment Summary and Cumulative Impacts ....................................................... 87 8. Environmental Management .......................................................................................................... 89 8.1. Management Standards ..................................................................................................... 89 8.2. Hazard Standards .............................................................................................................. 90 8.3. Statement of Environmental Objectives ............................................................................. 91 8.4. Job Safety Analysis and Permit to Work ............................................................................ 91 8.5. Training .............................................................................................................................. 92 8.6. Emergency Preparedness.................................................................................................. 92 8.7. Incident Response and Management ................................................................................ 92 9. References ..................................................................................................................................... 94 10. List of Abbreviations ....................................................................................................................... 97 Appendices APPENDIX A - Risk Assessment Table APPENDIX B - Example Waste Management Plan APPENDIX C - List of Typical Chemicals Used in Fracture Stimulation APPENDIX D – Fracture Fluid Mass Balance Calculation APPENDIX E: Santos Environmental Policy Page 2 of 110 Environmental Assessment Report – Fracture Stimulation Operations Tables Table 1: Forecast water use for 2014 categorised by fracture stimulation job type ........................................ 47 Table 2: Summary of salinity, pressure and permeability characteristics ....................................................... 54 Table 3 Summary of current and potential unconventional resources ............................................................ 56 Table 4 Cooper Creek flood classes, volumes and frequency ........................................................................ 63 Table 5: Land types and Aboriginal artefacts .................................................................................................. 69 Figures Figure 1 Exploration permits in the Cooper and Eromanga Basins .................................................................. 8 Figure 2 Casing design analysis ...................................................................................................................... 16 Figure 3 Conceptual conventional or unconventional Cooper Basin well construction data detail ................. 19 Figure 4: Three string casing design ............................................................................................................... 20 Figure 5: Oil and gas fields of the South Australian Patchawarra, Nappamerri and Allunga Troughs. .......... 22 Figure 6 Oil accumulations in the Eromanga Basin, South Australia (from Drexel and Preiss (eds) 1995) ... 22 Figure 7: Cooper Basin stratigraphy ................................................................................................................ 24 Figure 8 FracPro model output for proposed fracture stimulation treatment in Alwyn 7 ................................. 28 Figure 9: Typical fracture height growth measured during shale gas stimulation in the Eagle Ford (USA) with Cooper Basin well section superimposed (Source: Fisher
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