Caroona Coal Project Application for Gateway Certificate Technical Overview Caroona Coal Project

Contents

Overview 1 1. Introduction 2 1.1 Purpose and Structure of this Document 2 1.2 Scope of Application 2 1.3 Background 2 1.4 Proponent 5 1.5 Project Overview 5 1.6 Project Team 5 1.7 Document Structure 5 2. Consultation 6 2.1 Project Consultation to date 6 2.2 Gateway Application Consultation 6 2.3 Ongoing Consultation 6 3. Agricultural Context 7 3.1 Regional Context 7 3.2 Local Context 7 4. Project Description 10 4.1 Exploration Activities, Geological Features and Coal Resource 10 4.2 Project General Arrangement 10 4.3 Development Activities 10 4.4 Underground Mining Operations 13 4.5 Product Coal Stockpiling, Handling and Transport 14 4.6 Water Management Infrastructure and Services 14 4.7 Power Supply 14 4.8 Workforce 14 4.9 Rehabilitation Activities, Remediation Works and Offsets 14 4.10 Summary of Project Disturbance Area 15 4.11 Activities unrelated to the Gateway Application 15 4.12 Consideration of alternatives and Project Justification Overview 15 5. Strategies to Minimise Potential Impacts on Strategic Agricultural Land 16 5.1 Mine Planning and Design 16 5.2 Subsidence Management 16 5.3 Management of Water Resources 16 5.4 Rehabilitation 17 6. Consideration of Gateway Criteria for Biophysical Strategic Agricultural Land 18 6.1 Assessment of Biophysical Strategic Agricultural Land 18 6.2 Consideration of Gateway Criteria 18 7. Conclusion 22 8. References 23

Application for Gateway Certificate – Technical Overview i Caroona Coal Project

Contents continued

LIST OF TABLES: Table 1 Overview of the Caroona Coal Project 11 Table 2 Potential Subsidence Mitigation and Management Strategies 17 Table 3 Project Groundwater Licensing Summary 17 Table 4 Consideration of Relevant Criteria for Biophysical Strategic Agricultural Land 21 Table 5 Predicted Crack Widths 21 LIST OF FIGURES: Figure 1 Regional Location 3 Figure 2 Aerial Photograph of the Project Area and Surrounds 4 Figure 3a Relevant Land Ownership 8 Figure 3b Relevant Land Ownership List 9 Figure 4 Indicative Mining Layout and Surface Infrastructure 12 Figure 5 Flow Chart for Site Verification of Biophysical Strategic Agricultural Land 19 Figure 6 Location of Biophysical Strategic Agricultural Land 20 LIST OF PLATES Plate 1 Doona Ridge 2 Plate 2 Soil Sampling Field Day 6 Plate 3 Example of Subsidence Remediation 14 Plate 4 Fencing of Subsidence Cracks Prior to Remediation 15 Plate 5 Soil Investigation 18

Application for Gateway Certificate – Technical Overview ii Caroona Coal Project

Overview

Coal Mines Australia Pty Ltd (CMAL), a wholly owned subsidiary of BHP Billiton, is seeking a Gateway Certificate for an underground coal mining operation in the New England North West region of New South Wales (NSW), herein referred to as the Caroona Coal Project (the Project). The Project is located approximately 40 kilometres (km) south‑east of Gunnedah and 14 km west of , NSW, within the Liverpool Plains and Gunnedah Local Government Areas (LGAs).

The Southern Plains sub-region (comprising the Gunnedah and This Gateway Assessment is supported by the following Liverpool Plains LGAs has a unique combination of volcanic soils, assessments: rainfall reliability, climate (sunshine hours, moderate • Agricultural Impact Assessment – temperature and protection from hot westerly weather) and La Tierra Pty Limited. availability of surface and groundwater (Department of Planning • Agricultural Resource Assessment – and Infrastructure, 2012). McKenzie Soil Management Pty Ltd. The Project Assessment Area comprises elevated and gently • Preliminary Groundwater Assessment – HydroSimulations. sloping land characterised by agricultural enterprises, which • Subsidence Assessment – include cattle grazing, forestry and both dryland and some Mine Subsidence Engineering Consultants. limited irrigated cropping flanked by alluvial plains dominated by 1 Approximately 2,215 hectares of Protocol Verified BSAL has been irrigated and dryland cropping. identified within the Project Assessment Area by McKenzie Soil This Gateway Application is for an underground coal mine Management. It is also noted that approximately 459 hectares of underneath the Doona Ridge and Nicholas Ridge Project Potential BSAL, as mapped by the NSW Government, is located Assessment Area within Exploration Licence 6505. Through on land within the Project Assessment Area where no access was focusing proposed underground mining operations under these available for ground survey. Only minor, temporary surface elevated and gently sloping lands, and with the implementation disturbance activities to BSAL are proposed, as major surface of other mitigation measures, the Project has been designed to infrastructure components are not proposed to be located on minimise impacts on the alluvial plains. BSAL. Initial engagement in regard to the Gateway Application BSAL within the Project Assessment Area would experience mine revealed reluctance on the part of some local landholders to subsidence from the Project. Subsidence would result in some participate in the Gateway process. Specifically, some cracking on the surface; however would not affect soil fertility, landholders withheld access for soil test pits by McKenzie Soil effective rooting depth or soil drainage. Therefore, the Project Management Pty Ltd and/or agricultural interviews with La Tierra should not result in a long‑term or permanent change to the Pty Limited. agricultural productivity of BSAL. Notwithstanding, BHP Billiton During the course of the Gateway Application studies, a pilot would seek to remediate any surface cracking that develops as a Working Group run by FPC Water Solutions and facilitated by the result of subsidence. Land and Water Commissioner, Mr Jock Laurie was commissioned The groundwater assessment shows that the Project meets the by the NSW Department of Trade and Regional Infrastructure and ‘Level 1’ minimal impact considerations of the Aquifer Services – Division of Resources and Energy in relation to the Interference Policy for key regional ‘highly productive’ Gateway Application. groundwater resources, namely the Namoi alluvium and Following continued engagement to communicate the purpose Liverpool Ranges basalt. The Project is predicted to trigger ‘Level of these assessments in informing the Gateway Application, and 2’ of the minimal impact considerations for the Spring Ridge the Working Group, access improved to the extent that water source for drawdowns of greater than 2 m at ultimately, only a small number of landholders within the Project privately‑owned bores. BHP Billiton has committed to ‘make Assessment Area declined to participate. good’ any impacts on these privately‑owned bores and will Notwithstanding, discussions are continuing and further soils continue to investigate these impacts through the conduct of a and agricultural studies are planned to inform the Environmental census of these bores and refinement of groundwater modelling Impact Statement (EIS). prior to the EIS. Four hundred and four soil test pits were excavated to verify Biophysical Strategic Agricultural Land (BSAL) within the Project Assessment Area. In addition, some 40 interviews were conducted with local stakeholders to further characterise the agricultural enterprises in the area.

1 BSAL that has been identified through ground survey in accordance with theStrategic Regional Land Use Policy – Interim Protocol for Site Verification and Mapping of Biophysical Strategic Agricultural Land (NSW Government, 2013) and, where no access was available for ground survey, has been interpreted as BSAL based on continuity with adjacent BSAL dominant soil landscape units (McKenzie Soil Management, 2014).

Application for Gateway Certificate – Technical Overview 1 Caroona Coal Project

1. Introduction

1.1 Purpose and Structure of this Document Although there are significant coal deposits outside of these Coal Mines Australia Pty Ltd (CMAL), a wholly owned subsidiary areas, BHP Billiton has focused exploration on the targeted areas of BHP Billiton, is seeking consent to develop an underground because of the potential for longwall mining subsidence to coal mining operation in the New England North West region of adversely impact the alluvial plains which characterise the lands New South Wales (NSW), herein referred to as the Caroona Coal outside of the targeted areas and is often used for irrigated Project (the Project) (Figure 1). cropping. The Project is located approximately 40 kilometres (km) This application includes proposed longwall mining within the south‑east of Gunnedah and 14 km west of Quirindi, NSW. Doona Ridge and Nicholas Ridge targeted exploration areas which total approximately 119 km2. These areas comprise the This document is a Technical Overview in support of an Project Assessment Area for the Gateway Application (Figure 2). application for a Gateway Certificate pursuant to clause 17F of Through focusing proposed underground mining operations the NSW State Environmental Planning Policy (Mining, Petroleum under these elevated and gently sloped lands, and with the Production and Extractive Industries) 2007 (Mining SEPP). The implementation of other mitigation measures, the Project has Project Assessment Area is located on land designated as been designed to minimise impacts on the alluvial plains. Biophysical Strategic Agricultural Land (BSAL). This document is included within an application for a Gateway 1.2 Scope of Application Certificate. It is anticipated that the Gateway Panel will issue a The Gateway Application will be assessed by the Mining and Gateway Certificate for the Project in accordance with the Petroleum Gateway Panel (the Gateway Panel) for potential Mining SEPP. impacts of the Project on strategic agricultural land and its The Project will also be referred to the Commonwealth Minister associated water resources. The Gateway Panel undertakes its for the Environment for consideration as to whether the Project assessment in accordance with the relevant criteria outlined in is a ‘Controlled Action’ and requires approval under the clause 17H(4) of the Mining SEPP that apply specifically to BSAL. Commonwealth Environment Protection and Biodiversity The Gateway process applies to State Significant mining Conservation Act, 1999 (EPBC Act). developments that require a new mining lease. The Project In parallel, BHP Billiton will seek Director‑General’s Requirements Assessment Area, as described in this document, is defined as (DGRs) from the Director‑General of the NSW Department of the extent of underground mining and surface infrastructure Planning and Infrastructure (DP&I) to inform the Environmental areas, shown on Figure 2. Components of the Project that are Impact Statement (EIS). outside of the proposed new mining lease (i.e. the Project It is anticipated that the final DGRs will be prepared by the DP&I Assessment Area) are not subject to the Gateway Application. in consideration of: These excluded Project components are identified in this • the Caroona Coal Project – Project Description and Preliminary document (Section 4.11). Environmental Assessment; • any key issues raised by State regulatory agencies; 1.3 Background • the recommendations of the Gateway Panel set out in a Exploration Licence (EL) 6505 was granted to BHP Billiton in 2006 conditional Gateway Certificate; and and exploration activities, engineering studies and environmental baseline studies have been ongoing. • the decision of the Commonwealth Minister for the Environment regarding the referral under the EPBC Act. Within the 344 square kilometre (km2) EL 6505, BHP Billiton has identified three targeted exploration areas at Doona Ridge, (Plate 1), Nicholas Ridge and Georges Island totalling 126 km2.

Plate 1. Doona Ridge

Application for Gateway Certificate – Technical Overview 2 NARRABRI URALLA BARRABA SHIRE COUNCIL

NARRABRI SHIRE COUNCIL Narrabri Coal Mine Maules Creek Coal Project

Boggabri Coal Mine Tarrawonga Coal Mine

BOGGABRI Canyon Coal Mine Rocglen MANILLA Coal Mine TAMWORTH Vickery Coal REGIONAL COUNCIL Project

CARROLL Sunnyside Coal Mine GUNNEDAH MOONBI KOOTINGAL COUNCIL TAMWORTH

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Watermark Coal Project

WERRIS CREEK Coal Mine

NUNDLE

Caroona Coal Project QUIRINDI WARRUMBUNGLE SHIRE COUNCIL COUNCIL

MURRURUNDI

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LEGEND Town Protected Lands UPPER HUNTER SHIRE COUNCIL NSW State Forest SCONE Native Vegetation SATUR Local Government Area Boundary Exploration Licence (EL 6505) Mine Site MERRIWA ABERDEEN 0 6 12 18 24 30 Dartbrook Coal Mine Mt Pleasant Coal Mine Muswellbrook No.2 Kilometres MUSWELLBROOK Coal Mine Source: Geoscience Australia (2006); NSW Bengalla Coal Mine Mangoola Department of Premier and Cabinet, Office of Coal Mine Environment and Heritage (2011) and Minerals Mt Arthur NSW (2012) Coal Mine CAROONA COAL PROJECT FIGURE 1 DENMAN Regional Location MUSWELLBROOK SHIRE COUNCIL

HVE-13-02_Gateway_TO_201B

Application for Gateway Certificate – Technical Overview 3

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Application for Gateway Certificate – Technical Overview 4 Caroona Coal Project

1. Introduction continued

1.4 Proponent • development and operation of water and gas pipelines to CMAL (ABN 70 062 855 270) (a wholly owned subsidiary of BHP connect the infrastructure areas; Billiton) is the proponent for the Project. The contact details for • ongoing exploration activities within EL 6505; CMAL are: • ongoing surface monitoring and rehabilitation (including Coal Mines Australia Pty Ltd rehabilitation of mine related infrastructure areas that are no 125 Hawker Street longer required) and remediation of subsidence effects; and QUIRINDI NSW 2343 • other associated minor infrastructure, plant, equipment and activities. Website: http://www.bhpbilliton.com Additional details of each of the main Project components are 1.5 Project Overview provided in Section 4. The main components comprising the Project include: • an underground mining operation within EL 6505 involving a 1.6 Project Team This Gateway Application Technical Overview was prepared by single longwall in the Hoskissons Seam on Doona Ridge and a Resource Strategies Pty Ltd with specialist input provided by the second longwall in the Hoskissons Seam on Nicholas Ridge; following organisations: • production of approximately 260 million tonnes (Mt) of • Caroona Coal project team (project design, alternatives and run-of-mine (ROM) coal over the life of the mine; justification, consultation); • production of up to approximately 10 million tonnes per annum • La Tierra Pty Limited (La Tierra) (Mr Terry Short and Ms Tiffany (Mtpa) of saleable thermal coal; Thomson) (agricultural impact assessment); • a mine life of approximately 30 years; • McKenzie Soil Management Pty Ltd • development and operation of a pit top mine infrastructure (Dr David McKenzie) (agricultural resource assessment); area comprising administration offices, bathhouse, workshop, • HydroSimulations (Dr Noel Merrick and Mr Chris Nicol) store, coal stockpile areas, coal handling infrastructure, (preliminary groundwater assessment); and bunded hydrocarbon tanks, laydown areas, car parking, electrical substation, muster area, associated linear • Mine Subsidence Engineering Consultants Pty Ltd (MSEC) (Mr infrastructure and access road on Doona Ridge; James Barbato) (subsidence assessment). • development and operation of a separate men and materials 1.7 Document Structure shaft; The remainder of this document is structured as follows: • construction and operation of an event coal preparation plant (CPP) (up to 1 Mtpa ROM coal capacity) on Doona Ridge for Section 1 Introduction – provides a background to the washing of occasional high-ash ROM coal; development of the Project and an overview of the proposed Project activities. • construction and operation of a coal unloading facility on Doona Ridge to allow transportation of Nicholas Ridge ROM Section 2 Consultation – a description of the consultation coal to Doona Ridge via rail for washing; undertaken in support of the application. • co-disposal of fine and coarse rejects in an emplacement on Section 3 Agricultural Context – describes the local and regional Doona Ridge, with rejects to be transported within an context of the Project Assessment Area, along with infrastructure corridor; the land capability, water resources and agricultural • development and operation of a separate pit top mine enterprises. infrastructure area comprising coal handling infrastructure, Section 4 Project Description – provides a clear and concise coal stockpiles, an access road, car parking, administration description of the Project, indicates the types of offices, muster area, electrical substation and associated linear activities that will be undertaken and summarises infrastructure on Nicholas Ridge; alternatives to the Project considered. • construction and operation of separate rail loops and spurs to Section 5 Strategies to Minimise Potential Impacts on BSAL connect to the Binnaway‑Werris Creek Railway; – identifies management, mitigation and remediation • realignment of Rossmar Park Road; measures that would be implemented to minimise the • employment of up to approximately 400 operational personnel potential impacts. at peak production; Section 6 Potential Impacts on BSAL – assesses whether the • employment of an average number of construction employees Project would impact on the agricultural productivity of approximately 400 and up to 600 at peak construction; of the land. • emplacement of overburden excavated during the construction Section 7 Conclusion – provides the key conclusions of the of access drifts and shafts; Gateway Application. • progressive development of sumps, pumps, pipelines, water Section 8 References – lists the documents cited in storages and other water management equipment and Sections 1 to 7. structures (including dewatering infrastructure); • development and operation of ventilation surface infrastructure and gas drainage infrastructure;

Application for Gateway Certificate – Technical Overview 5 Caroona Coal Project

2. Consultation

2.1 Project Consultation to date Consultation undertaken to date in relation to the Project has included: • Ongoing consultation with local landholders regarding the Project and access for exploration and environmental baseline studies. • Ongoing consultation with the Community Consultative Committee (CCC) since 2006. These meetings include an open Plate 2. Soil Sampling Field Day invitation to the community for briefings regarding the project. • Ongoing consultation with representatives of the NSW • Stage 1 of the Bore Census was undertaken in November 2013, Department of Trade and Regional Infrastructure and Services including participation of all interested landowners. Stage 2 of – Division of Resources and Energy (DTRIS-DRE) regarding the Bore Census is currently underway with the results to be exploration activities in EL 6505. incorporated into the EIS. • Introductory briefing with the Office of Environment and • Key findings of this Gateway Application were presented to the Heritage (OEH) on 7 November 2013. CCC in March 2014. • An inter-agency workshop on 5 December 2013, including Initial engagement in regard to the Gateway Application representatives of NSW Office of Water (NoW), Commonwealth revealed reluctance on the part of some local landholders to Department of the Environment, OEH, DTRIS-DRE and DP&I. participate in the Gateway process. Specifically, some • Conceptual Project Development Plan meeting with landholders withheld access for soil test pits by McKenzie Soil representatives of the DTRIS-DRE on 9 December 2013. Management and/or agricultural interviews with La Tierra. • Ongoing consultation with the DP&I regarding the status of Following continued engagement in regard to the purpose of environmental baseline studies. these assessments in informing the Gateway Application and the • Consultation with the Liverpool Plains, Gunnedah and Gateway Working Group, access improved to the extent that Tamworth Regional Councils to discuss the development of the ultimately, only a small number of landholders within the Project Project and environmental studies, development contributions, Assessment Area declined to participate. social impact assessment and the timing of the EIS and Gateway Application processes. Notwithstanding, discussions are continuing and further soils and agricultural studies are planned to inform the EIS. • Involvement in the Namoi Catchment Water Study with DTIRIS-DRE. 2.3 Ongoing Consultation 2.2 Gateway Application Consultation A stakeholder engagement programme has been developed for BHP Billiton and the Project Team have conducted the following the Project. Key objectives of this programme are to: consultation in relation to the Gateway Application: • inform government and public stakeholders about the progress • All landholders within the Project Assessment Area were and nature of the Project; individually contacted in regard to access for soils sampling • recognise and respond to local interest or concerns regarding and the Agricultural Impact Assessment (AIA). the Project; and • CCC meetings in August and September – landholders were • continue the ongoing dialogue between local landholders and invited for detailed briefings from Mr Terry Short, Dr Noel BHP Billiton. Merrick and Dr David McKenzie. The issues raised and outcomes of the stakeholder engagement • Presentation to the Caroona Coal Action Group Annual General programme will be reported in the EIS. Meeting on 8 August 2013 on the Gateway Application and the The EIS consultation programme will include the use of a variety status of the associated environmental studies. of consultation mechanisms which in summary include current • Soil sampling field day on 19 September 2013 (Plate 2) to and future actions such as: demonstrate the soil sampling methodology and provide the • public availability of key documents (e.g. the request for DGRs community the opportunity to discuss the methodology with and the EIS); the specialist consultants undertaking the AIA and the • provision of Project information on the BHP Billiton website Agricultural Resource Assessment. (www.bhpbilliton.com) and Caroona CCC website • Participation in a pilot Working Group run by the DTRIS-DRE (www.caroonacoalccc.com.au); and FPC Water Solutions and facilitated by the Land and Water • ongoing consultation with the local community and Commissioner, Mr Jock Laurie, regarding the Gateway landowners, including the CCC; Application. • meetings with the general community including Aboriginal • Consultation with the NoW regarding the methodology of the groups and directly affected landowners; Groundwater Assessment for the Gateway Application in • meetings with relevant government agencies; and November 2013. • community information brochures and community information • La Tierra conducted interviews with stakeholders with respect sessions. to agricultural productivity at nearby agricultural enterprises as part of the AIA.

Application for Gateway Certificate – Technical Overview 6 Caroona Coal Project

3. Agricultural Context

3.1 Regional Context There are a number of dryland and irrigated cropping enterprises The Southern Plains sub-region (comprising the Gunnedah and within the Project Assessment Area, predominantly located in Liverpool Plains Local Government Areas (LGAs) (Figure 1) has the southern portion of the Doona Ridge, and the eastern the highest agricultural productivity in NSW, with a combination portion of the Nicholas Ridge underground mining area. Parts of of volcanic soils, rainfall reliability, climate (sunshine hours, the Project Assessment Area are comprised of denser woodland moderate temperature and protection from hot westerly vegetation (generally on the steeper slopes), including the weather) and availability of surface and groundwater Doona State Forest, which are occasionally used to graze cattle. (DP&I, 2012). The Doona State Forest is used by Forests NSW for timber The sub-region accounts for around $282 million of agricultural production, generally White Cypress Pine. The Forest is managed production, more than half of which occurs in the Liverpool as under Zone 4 of the Brigalow and Nandewar Community Plains LGA (La Tierra, 2014). Conservation Area Act 2005 for forestry, recreation and mineral extraction. The alluvial plains of the region are characterised by soils derived from alluvial deposits of volcanic origin. These are deep, alluvial Surrounding the Project Assessment Area are alluvial plains Vertosol soils (La Tierra, 2014). Surrounding the floodplains are which are often used for irrigated and dryland cropping. low hills, ridges and gently graded country comprising lighter soils of volcanic and sedimentary origins. These can include Vertosols, but also Sodosols, Podosols, Ferrosols and other soil types (La Tierra, 2014). Groundwater beneath the Liverpool Plains has been subject to extensive use by agriculture. Essentially, there are three groundwater bearing geological units of varying quality, yield and hence agricultural utility: alluvial, porous rock and fractured rock aquifers. Alluvial aquifers occur as palaeochannels, with the most productive of these being associated with high‑energy erosional deposition of coarse aggregates. These are known to be the most productive in the region (La Tierra, 2014). Porous rock units of the Jurassic to Permian sedimentary and volcanic formations contain poorer quality water with lower yields, compared to alluvial aquifers. The fractured rock (basalt) aquifer of the Liverpool Range Bed is used for agriculture, but its extent is limited to the southern end of the Liverpool Plains. 3.2 Local Context The types of agricultural industries within the surrounding locality include beef cattle and a mix of dryland and irrigated cropping (La Tierra, 2014). No equine or viticulture enterprises are located in the surrounding locality. An aerial photograph of the Project Assessment Area and surrounds is provided as Figure 2. The land within the Project Assessment Area is primarily used for agricultural and rural residential purposes. Agricultural enterprises include cattle grazing and both dryland and some limited irrigated cropping. The Caroona Feedlot owned by JBS Australia, located to the south – west of the Doona State Forest within the Project Assessment Area, is a 23,500 head capacity, 1,390 hectare (ha) feedlot which includes a number of holding yards, sheds, mills, silos and other associated infrastructure. Figures 3a and 3b show local land ownership, including the Caroona Feedlot owned by JBS Australia. The most common enterprises within the Project Assessment Area are producing cattle (weaners/vealers) on natural pastures and dryland cropping (La Tierra, 2014).

Application for Gateway Certificate – Technical Overview 7 6530000 6520000 AY HW Werris Creek Werris HIG I RO LA MI KA

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Application for Gateway Certificate – Technical Overview 8 Ref. No Land Holder Ref. No Land Holder Ref. No Land Holder 1 AMPS Agribusiness Pty Limited 65 Fisher ME & GC 128 Pursehouse AL & CI 2 Alcorn LJ & MA 66 Fisher ME, GC & HR 129 Pursehouse Investments Pty Ltd 3 Alcorn ML 67 Fisher RC 130 Pursehouse Properties Pty Ltd 4 JBS Australia Pty Ltd 68 Fletcher BI & VR 131 Rado Ranch Pty Limited 5 Coal Mines Australia Pty Ltd 69 Frofour Pty Ltd 132 Ranken DCL,HRL & JWL 6 Bailey TN 70 Fuller JW & RM 133 Rex Fisher Pty Ltd 7 Cohen GJ & DF 71 Fullers Transport Pty Ltd 134 RG & HD Thompson Pty Ltd 8 Baker RE & BM 72 G.S.S.H Pty Ltd 135 Rossmar Park Pastoral Co Pty Ltd 9 Shenhua Watermark Coal Pty Ltd 73 Carbon Minerals NL 136 Rutter EO & SA 10 Shenhua Watermark Coal Pty Ltd 74 Glencohen Pty Ltd 137 Rutter PR 11 Birrawa Pastoral Company Pty Ltd 75 Coal Mines Australia Pty Ltd 138 Rutter RA & DA 12 Bolger EP (Junior) 76 SCMB Pty Ltd and BGI Pty Ltd 139 Ryan WH & EC 13 Bonner MLD 77 Green T 140 Frankham DR & DW 14 Boorer CJ 78 Green TD 141 Seymour MG & CL 15 Shenhua Watermark Coal Pty Ltd 79 Hamlin CR & VJ 142 Seymour MG & Lingard CL 16 Shenhua Watermark Coal Pty Ltd 80 Hamblin NJ 143 Single Tree Pty Ltd 17 Brown GW & SL 81 Hamblin RJ, FJ, PG & NJ 144 Small HR 18 Burt MC, WP & WA 82 Graham JW, Smith MEL 145 Shenhua Watermark Coal Pty Ltd 19 Charters CR 83 Hanuta Pty Ltd 146 Stackman BA & Lingard KL 20 Charters CR & SJ 84 Hickman JM 147 Tandim Investments Pty Ltd 21 Charters HF 85 Hickman SSM & Ross-Hickman DS 148 Taylor MG Estate 22 Charters HF 86 Holifall Pty Ltd 149 Todman, Anthony Reginald & Jennifer Ruth 23 Pursehouse Properties Pty Ltd 87 Hurley JK 150 Thyrek Pty Ltd 24 Clarmonds Pty Ltd 88 Ingall IG,Lyttle KN,Cohen RJF,Squires JA,Bruce JHP,Hosking J 151 Shenhua Watermark Coal Pty Ltd 25 Shenhua Watermark Coal Pty Ltd 89 Church - Croaker, AMA; Croaker, GDH; and James, MJ Trustees 152 Tribella Pty Ltd 26 Clift DT 90 Jarret H & M 153 Trustees Of The Roman Catholic Church, 27 Clift G 91 Shenhua Watermark Coal Pty Ltd Diocese of Armidale 28 Clift M 92 Karapiti Holdings Pty Ltd 154 Shenhua Watermark Coal Pty Ltd 29 Clift M & KA 93 Pursehouse Properties Pty Ltd 155 Wadwell KG & SN 30 Clift RS 94 Lawlor MW & Gorsch JB 156 Walhallow Local Aboriginal Land Council 31 Clift RS & A 95 Lindenow Pastoral Company Pty Limited 157 Walhallow Murri Enterprise Aboriginal Corporation 32 Cohen RG & TM 96 Hollis M & V 158 Wallalla Holdings Pty Limited 33 Cohen GJ 97 Lingard TL 159 Warren CS 34 Cohen GJ & DF 98 Bailey TN 160 Williewarina Pty Ltd 35 Cohen GJ & DF 99 Malden J 161 Willis SNB & RNB 36 Cohen GJ & DF 100 Maraig Pty Ltd 162 Willis SN & MJ 37 Cohen GJ & DF 101 Maylan Pty Ltd 163 Wilson BM & E 38 Coal Mines Australia Pty Ltd 102 McBeth W & PE, & AJ 164 The Peel-Cuningham County Council 39 Coal Mines Australia Pty Ltd 103 McIlrick TW & JA 166 Doona State Forest 40 Craig ST, JW & NL 104 Bradfield NG & MJ 170 Coal Mines Australia Pty Ltd 41 Craig WTA & P 105 Shenhua Watermark Coal Pty Ltd 171 Elsley FE & DE 42 Cudmore RH & SA 106 Shenhua Watermark Coal Pty Ltd 172 Willis 43 Dalton R 107 Mills RA Estate:Perpetual Lease 180 Shenhua Watermark Coal Pty Ltd 44 Dalton R & RT 108 Moore GN & JC 189 TS&CR 32492 45 Dangar WJ, FH, HC & AA 109 Munro NM 190 Penunga Pty Ltd 46 Doolan BV 110 Murphy PJ & KN 2001 Doona State Forest 48 CJ & PA Duddy Pty Ltd 111 Pursehouse Properties Pty Ltd 2003 State of NSW 49 Duddy C J 112 N.R.L.F Pty Ltd 2004 State Rail Authority 50 Duddy CJ 113 AR Grant Estate Perpetual Lease 2005 The Council of The Shire of Tarmang 51 Burt MC & WA 114 Newcombe IR 2006 The Minister for Public Roads 52 Ranken JWL 115 Nicholson RP 53 Eleveld KF & GK 116 Nilwon Pastoral Co Pty Ltd 54 Elsley FE 117 Norman CF 55 Elsley FE & DE 118 Norman GS 56 Burt MC & WA 119 NSW Grain Corporation Ltd 57 Coal Mines Australia Pty Ltd 120 Penick RE 58 Eykamp CD 121 Permaid Pty Ltd 59 Eykamp CW 122 Pike CT 60 Eykamp LA 123 Pike CT & VL 61 Eykamp LA & JL 124 Pike MG & CT 62 Fisher ME, GC & HR 125 Piper SL & MJ 63 Fisher GC 126 Priestley JC & CL Source: Miner Details Pty Ltd (2014) 64 Fisher HR 127 Pursehouse AL CAROONA COAL PROJECT FIGURE 3b Relevant LandOwnership List (as at 10 February 2014)

HVE-13_02 _Gateway_TO_001E

Application for Gateway Certificate – Technical Overview 9 Caroona Coal Project

4. Project Description

The Project is a proposed underground coal mining operation Targeted Exploration Areas with an operational life of approximately 30 years. In 2008, BHP Billiton identified three targeted exploration areas. The Project underground mining area would be located entirely The targeted exploration areas on Doona Ridge and Nicholas within EL 6505. The Project would also involve the development Ridge are shown on Figure 2. A third targeted exploration area and use of infrastructure required for the handling, washing, and on Georges Island is not part of the proposed Development transportation of coal. Application. Table 1 provides an overview of the activities associated with the Geological Features and Coal Resource Project. The Project general arrangement is shown on Figure 4. The Project is located within the Gunnedah Basin, which forms the central part of the Sydney‑Gunnedah-Bowen Basin system 4.1 Exploration Activities, Geological (DTIRS‑DRE, 2014). Features and Coal Resource The formations expressed at the surface within EL 6505 include: EL 6505 was granted to BHP Billiton in 2006 as part of a Quaternary Alluvial Deposits; Jurassic Formations Pilliga competitive tender process for a period of 5 years. EL 6505 was Sandstone, Purlawaugh and Garrawilla Volcanics; Middle Triassic renewed for a further term until 22 February 2016 by Minister for Napperby Formation; Early Triassic Digby Formation; and late Resources and Energy on 19 March 2014. Permian Coogal and Nea Sub Groups. The Hoskissons Seam is Since the grant of the EL in 2006, BHP Billiton has conducted located within the Coogal Sub Group of the Black Jack Group various exploration activities, which are described in several and is the target seam for the Project. documents, namely: Thirteen coal seams can be identified within EL 6505 within the • Exploration Environmental Management Plan for the Caroona Permian Black Jack Group, however only the Hoskissons Seam is Project – EL 6505 (July 2006) (BHP Billiton, 2006a); presently considered to be economically recoverable. These • Review of Environmental Factors for Exploration Borehole C44 minor coal seams include the Caroona, Howes Hill, Breeza, Clift, – Caroona Exploration Area (BHP Billiton, 2006b); Springfields and Mooki Seams (MSEC, 2014). • Review of Environmental Factors for Caroona Exploration Within the Project underground mining area, the Hoskissons Program Reconnaissance Drilling and Associated Activities Seam is 8 to 16 metres (m) in thickness and has a depth of cover 2007 to 2011 (September 2007) (BHP Billiton, 2007); between 130 and 710 m (MSEC, 2014). Once mined and • Review of Environmental Factors for Caroona Exploration processed, the Hoskissons Seam is expected to produce mainly Program Exploration Drilling and Associated Activities 2009 to energy (thermal) coal. 2011 (March 2009) (BHP Billiton, 2009); The target recoverable coal within the target seam in the • Review of Environmental Factors for Caroona Exploration underground mining area is approximately 260 Mt of ROM coal. Program – EL6505 3D Seismic Survey 2010 (October 2010) (BHP Billiton, 2010a); 4.2 Project General Arrangement • Review of Environmental Factors for Caroona Exploration The indicative mining layout and surface infrastructure is shown Program – EL6505 3D Seismic Survey 2010 Addendum on Figure 4. The main activities associated with the Project are (December 2010) (BHP Billiton, 2010b); provided in Table 1. • Review of Environmental Factors for Caroona Exploration Program - Large Diameter Boreholes 2011 (April 2011) (BHP 4.3 Development Activities Billiton, 2011a); and The Project would consist of two distinct construction phases, one initial phase commencing in Year 1 of the Project focused on • Caroona Exploration Program – REF for Large Diameter Doona Ridge and taking approximately 3 years and a second Boreholes 2011 (June 2011) phase in approximately Year 15 of the Project focused on – Classification of Issues. Addendum to the original REF dated Nicholas Ridge, with a duration of approximately 18 months. April 2011 (BHP Billiton, 2011b). The following is a general description of the construction BHP Billiton’s exploration program was undertaken from 2006 to activities that would be common to each phase. 2012. Exploration activities included: • drilling of 346 boreholes; Underground Mine Development • airborne magnetometer survey; Specific underground mine development activities would include: • 2-Dimensional and 3-Dimensional seismic surveys; and • initial underground access and portal development to enable • ground magnetic surveys. the commencement of the men and material and conveyor drifts; During the life of the Project, geological exploration activities • construction of men and material and ventilation shafts; would continue to be undertaken in areas ahead of the underground mining operations to investigate geological • use of overburden associated with excavations for construction structure and coal quality. This would include in-seam and fill and emplacement of excess overburden; surface‑to-seam drilling, magnetic, electromagnetic, gravimetric • development of underground main roadways and gate roads and seismic investigations. The findings from these activities for longwall panels; would provide input into the detailed mine planning and • delivery and assembly of mining equipment; and engineering studies. • installation of underground conveyors.

Application for Gateway Certificate – Technical Overview 10 Caroona Coal Project

4. Project Description continued

Table 1. Overview of the Caroona Coal Project Project Feature Project Mine Life Operational life of approximately 30 years. Mining Method and ROM Coal Longwall mining in the Hoskissons Seam. Production Production of approximately 260 Mt of ROM coal over the life of the mine. Production of up to approximately 10 Mtpa of ROM thermal coal. Mining Areas Doona Ridge and Nicholas Ridge areas. Mine Infrastructure Areas and Mine Development and operation of a mine infrastructure area comprising administration offices, bathhouse, Access workshop, store, coal stockpile areas, bunded hydrocarbon tanks, laydown areas, car parking, electrical substation and associated linear infrastructure and access road on Doona Ridge. Development and operation of a men and materials shaft on southern Doona Ridge with access off 4D Road. Development and operation of a mine infrastructure area comprising coal stockpiles, bathhouse, car parking, administration offices, linear infrastructure and an access road on Nicholas Ridge. Road access to Doona Ridge off Rossmar Park Road and Nicholas Ridge off Waverley Road. Construction and operation of train load-out facilities including a rail spur and loop at Doona Ridge and Nicholas Ridge. CPP and Transport Infrastructure Construction and operation of coal handling infrastructure on Doona Ridge for sizing and handling of coal, incorporating an event CPP (1 Mtpa ROM coal capacity) for washing of occasional high-ash ROM coal. Construction and operation of coal handling infrastructure on Nicholas Ridge for sizing and handling of coal. Development and operation of a rail spur and loop and coal loading infrastructure on both Doona Ridge and Nicholas Ridge to allow access to the Binnaway-Werris Creek Railway. Construction and operation of a coal unloading facility on Doona Ridge to allow the transportation of high-ash ROM coal from Nicholas Ridge to Doona Ridge for washing at the CPP. Co-disposal of fine and coarse rejects in an emplacement on Doona Ridge, with rejects to be transported within an infrastructure corridor. Ventilation and Gas Drainage Development of ventilation shafts and gas drainage infrastructure. Construction and operation of a connecting gas pipeline between infrastructure areas. Water Management Development of a water management system comprising of water storages, sumps, pumps, pipelines, sediment control, mine dewatering and sewage treatment. Development of a water management strategy based on a detailed site water balance which may include reuse of water on-site, storage of water on-site, licensed water extraction for water supply and/or treatment and beneficial use or controlled licensed release of excess water. Construction and operation of a connecting water pipeline between infrastructure areas. Hours of Operation 24 hours per day, seven days per week, including drift construction and development. Operational Workforce Up to approximately 400 personnel at peak production. Power Supply Construction and use of internal power reticulation infrastructure (substations and internal transmission lines) as required. Construction and operation of a 132 kilovolt (kV) electricity transmission line from the Werris Creek substation to the Caroona Coal Project (subject to separate approvals). Exploration Ongoing exploration activities within EL 6505. Monitoring of Subsidence Impacts Monitoring of subsidence and subsidence impacts over the proposed underground mining and mine development areas. Remediation and Rehabilitation Works Progressive rehabilitation of surface disturbance areas (e.g. exploration drill pads). Ongoing remediation of subsidence effects. Rehabilitation of mine related infrastructure areas at the end of the Project life. Construction Workforce Average number of construction employees approximately 400 with up to 600 at peak construction.

Application for Gateway Certificate – Technical Overview 11

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Application for Gateway Certificate – Technical Overview 12 Caroona Coal Project

4. Project Description continued

Coal Handling Infrastructure As part of the Project mine planning and environmental • surface conveyors; assessment process, BHP Billiton would determine the volume of • CPP; excess waste rock and location of emplacement areas. • train load-out facility including rail spur and loop; and • ROM and product coal stockpiles. 4.4 Underground Mining Operations Underground Mining Area Site Access and Services The Project would involve mining from a single coal seam • on-site power substation and reticulation infrastructure; (Hoskissons) on Doona Ridge and Nicholas Ridge using longwall • access road from Rossmar Park Road (Doona Ridge) and mining methods for a period of approximately 30 years. The Waverley Road (Nicholas Ridge); proposed underground mining layout is shown on Figure 4. • partial relocation of Rossmar Park Road; Longwall mining involves extraction of rectangular panels of coal • development of administration offices, bathhouse, workshop defined by underground roadways constructed around each compound, store buildings, bunded fuel tank, laydown areas longwall. The longwall mining machine travels back and forth and car parking; across the width of the coal face progressively removing coal in • construction of water management and mine dewatering slices from the panel. infrastructure, including sumps, pumps, pipelines, water Once each slice of coal is removed from the longwall face, the storages and other water management equipment and hydraulic roof supports are moved forward, allowing the roof structures; and and a section of the overlying strata to fall behind the longwall • installation of ancillary infrastructure (e.g. internal roads, machine (referred to as forming the ‘goaf’). electrical infrastructure, potable water supply, sewage treatment, visual screens/bunds and site security). Extraction of coal by longwall mining methods results in the vertical and horizontal movement of the land surface. The land Construction Activities Specific to Doona Ridge surface movements are referred to as subsidence effects. Doona Ridge would be the initial and main mine infrastructure The layout and design of longwall panels is continually being area for the Project and, therefore, several construction activities refined and developed through an iterative process as part of the would be specific to this area, namely: subsidence assessment, environmental assessment and • construction of a 1 Mtpa event CPP for the washing of BHP Billiton’s mine planning process. occasional high‑ash coal; Replacement underground mining equipment would be required • development of emplacements for the co‑disposal of CPP over the life of the Project in order to maintain production rejects; capacity. • establishment of an infrastructure corridor for the CPP to the rejects emplacement; Pre-mining gas extraction would generally be facilitated by either vertical wells directly from the surface to the coal seam or via • construction of a rail unloading facility for occasional underground cross panel drilling and drainage of the gas through unloading of Nicholas Ridge coal at Doona Ridge; and an underground collection system to infrastructure on the • construction of a separate men and materials shaft off surface. 4D Road. Post-mining gas extraction would be undertaken by either Ongoing Construction Activities vertical wells directly into the goaf to the surface or via Ventilation and gas drainage infrastructure on the surface would underground drilling methods into the goaf. Underground be required for the Project. Preliminary engineering studies have techniques include the use of a goaf gas sewer system whereby indicated that gas management can be achieved through a a large diameter drill hole is angle drilled from the surface to combination of surface and underground (in‑seam) gas drainage approximately 10 m above the coal seam and connected to gas techniques. infrastructure on the surface. Gas would generally be flared via The requirement for surface gas drainage infrastructure would flaring facilities located on the surface; however, BHP Billiton be determined through further detailed coal seam gas content may investigate other options to manage gas. analysis and mine planning. Other associated infrastructure and activities would include: The final location of the ventilation and (if required) gas • personnel and materials access via transport drifts from the drainage infrastructure would be determined through detailed mine infrastructure areas at both Doona Ridge and Nicholas mine planning, environmental assessment outcomes and Ridge; consideration of alternatives. • personnel access via a separate men and materials shaft; Ventilation and gas drainage infrastructure would progressively • materials handling and transport systems to convey coal from be constructed over the life of the Project as required. the longwall machine to the surface; Waste Rock Management • underground equipment (e.g. longwall mining machine, Waste rock would be excavated during the construction of access continuous miners, conveyors, bins) and mobile fleet (e.g. load drifts and shafts for the Project. Waste rock would be haul dump vehicles, drill rigs, shuttle cars, personnel carriers); preferentially used as a source of construction for infrastructure • ventilation systems for air intake and to exhaust air from the items such as hardstand areas, dam embankments and road mining area; embankments.

Application for Gateway Certificate – Technical Overview 13 Caroona Coal Project

4. Project Description continued

• a gas pipeline to allow the transfer of gas between • licensed water extraction to supplement water supply; infrastructure areas; • consideration of flood impacts on surface infrastructure; and • gas management systems to monitor and control the • treatment and beneficial use or licensed controlled release of concentrations of gases in the underground mining area; excess water. • underground goaf gas drainage via large diameter drill holes Water management infrastructure such as sumps, pumps, above the longwall panels and gas extraction via a gas ‘sewer’ pipelines and water storages would be developed or upgraded/ system to gas infrastructure on the surface; replaced as required over the Project life. In addition, a pipeline • gas drainage infrastructure in areas owned by BHP Billiton or would be constructed for the transfer of water between the with the consent of private landholders; infrastructure areas. • flaring facilities on the surface; and • water management systems to transfer groundwater that 4.7 Power Supply accumulates in underground workings to the surface. A 132 kV electricity transmission line would be constructed from The location of surface infrastructure (where required) would be the Werris Creek substation to the Project. Discussions with the agreed through detailed mine planning, environmental relevant power authority (Essential Energy) and engineering assessment outcomes and consideration of alternatives, and studies are ongoing to determine the physical alignment of the would be documented in the EIS. electricity transmission line. The electricity transmission line would be subject to a separate 4.5 Product Coal Stockpiling, Handling approval under Part 5 of the Environmental Planning and and Transport Assessment Act, 1979. Doona Ridge and Nicholas Ridge would have separate facilities Construction and use of substations and power supply for handling ROM coal. ROM coal would be stockpiled prior to infrastructure for internal power reticulation would be required being sized and conveyed to the product coal stockpile. for the Project and approval for this infrastructure would be Washing (or beneficiation) of all of the ROM coal is not required sought as part of the Project. for the Project given it is generally of a high enough quality to be exported. Notwithstanding, an event CPP with a production rate 4.8 Workforce of up to 1 Mtpa is proposed at Doona Ridge which would be The average number of construction employees would be operated during occasional periods where high‑ash coal is approximately 400 with up to 600 employees at peak produced. Sized ROM coal processed in the CPP would be construction. conveyed to the Doona Ridge product coal stockpile. During operations, a peak workforce of approximately 400 Product coal would be reclaimed from the product coal stockpile employees would be required. and conveyed to product coal bins located at both of the rail loops (i.e. at Doona Ridge and Nicholas Ridge). 4.9 Rehabilitation Activities, Remediation Product coal would then be loaded onto trains for transportation Works and Offsets to market. Other activities that would be conducted as a component of the Project include exploration, monitoring, remediation of Some high-ash ROM coal mined at Nicholas Ridge would also be subsidence impacts (Plates 3 and 4), rehabilitation of surface processed at the Doona Ridge CPP. This would be facilitated by disturbance, establishment and management of biodiversity transportation of high‑ash ROM coal from Nicholas Ridge via offsets and development of other associated minor train to a coal unloader at Doona Ridge, where this coal would infrastructure, plant, equipment and activities. be conveyed to the CPP for processing. Operation of the CPP would produce some coarse and fine rejects. These rejects may be co‑disposed in an emplacement on the western side of Doona Ridge (in the property known as ‘Doona Vale’). Any rejects would be transported to the emplacement via an infrastructure corridor. 4.6 Water Management Infrastructure and Services A site water balance will be developed for the Project. The Project water management strategy would be developed as part of the site water balance and would be based on the following: • separation of undisturbed area runoff from disturbed area runoff; • collection and reuse of surface runoff from disturbed areas; • capture of groundwater inflows and reuse; • storage of water on-site; Plate 3. Example of Subsidence Remediation

Application for Gateway Certificate – Technical Overview 14 Caroona Coal Project

4. Project Description continued

4.10 Summary of Project Disturbance Area • Surface Facilities – The proposed pit top locations were Approximately 2,215 ha of Protocol Verified BSAL1 has been determined based on distance and depth to the Hoskissons identified within the Project Assessment Area by McKenzie Soil Seam (i.e. to reduce costs associated with the personnel and Management (2014). Approximately 2,103 ha of Protocol Verified conveyor drifts). The proposed construction of a men and BSAL within the Project Assessment Area is predicted to materials shaft on Doona Ridge was determined on the basis experience subsidence impacts. of providing alternate underground access, and therefore more efficient commuting of employees to the southern portion of Approximately 459 ha of Potential BSAL, as mapped by the NSW the longwall panels on Doona Ridge. The location of the men Government, is located on land within the Project Assessment and materials shaft on Doona Ridge was also sited to minimise Area where no access was available for ground survey. Of this, impacts on BSAL. approximately 56 ha is expected to experience subsidence within • Scale – the Project coal yield is estimated at approximately 260 the Project Assessment Area. Project surface disturbance would Mt of ROM coal within the Hoskissons Seam. Resource involve only minor surface disturbance to BSAL associated with definition and exploration drilling conducted by BHP Billiton temporary gas drainage and water management infrastructure. indicates that this is the optimum scale of the Project. 4.11 Activities unrelated to the • Mining Method – BHP Billiton has considered alternate methods of mining, however the depth of cover means that the Gateway Application coal resource is amenable to underground mining methods and The following activities would be required for the Project open cut mining is not proposed. Longwall extraction has been however would not require a mining lease and therefore do not determined to be the most efficient method of mining the coal fall within the definition of “mining or petroleum development” resource relative to other underground mining methods (e.g. under clause 17A of the Mining SEPP: bord and pillar mining), and has reduced impacts relative to • Rail loops and spurs at Doona Ridge and Nicholas Ridge. open cut mining methods. • Connecting water and gas pipelines between Doona Ridge and Further consideration of alternatives to location, scale, methods Nicholas Ridge. and management would be undertaken as a component of Accordingly, these activities would not require a Gateway comprehensive assessment undertaken for the EIS. Certificate and have been excluded from this Gateway Application where they are located outside the Project Project Justification Assessment Area. These activities would be described and The Project would facilitate the creation of employment assessed in the EIS. opportunities for up to approximately 400 employees during the operational phase at peak production. Employment of up to The 132 kV electricity transmission line constructed from the approximately 600 personnel would be required for the Werris Creek substation to the Project would be subject to a construction of the Project. The construction phase would take separate approval and is not included in this Gateway approximately 3 years. Application. The Project is expected to invest significant capital over 30 years, 4.12 Consideration of alternatives and to be defined in the EIS. The Project would also result in the Project Justification Overview payment of substantial royalties to the State, in addition to other Federal Government contributions, such as the Mineral Resources Project Alternatives Rent Tax and other payments. As discussed in Section 1.3, the Project underground mining area Further analysis of the justification for the Project on social, has been positioned underneath Doona Ridge and Nicholas environmental and economic grounds will be included in the EIS. Ridge Project Assessment Area to minimise impacts on the alluvial plains within EL 6505. Alternatives to the proposed location, scale and mining methods have been considered by BHP Billiton in the development of the Project description. An overview of the alternatives considered is provided below: • Project Location – the location of the Project is determined by the presence of coal seams able to be economically mined in the Doona Ridge and Nicholas Ridge Project Assessment Area. The Project mine plan is positioned beneath the Doona and Nicholas Ridge areas to minimise impacts on the surrounding agricultural practices. A third ridge, Georges Island, has been considered for mining; however does not form part of the proposed Development Application.

1 BSAL that has been identified through ground survey in accordance with the Strategic Regional Land Use Policy – Interim Protocol for Site Verification and Mapping of Biophysical Strategic Agricultural Land (NSW Government, 2013) and, where no access was available for ground survey, has been interpreted as BSAL based on continuity with adjacent BSAL dominant soil landscape units (McKenzie Soil Management, 2014). Plate 4. Fencing of Subsidence Cracks Prior to Remediation

Application for Gateway Certificate – Technical Overview 15 Caroona Coal Project

5. Strategies to Minimise Potential Impacts on Strategic Agricultural Land

5.1 Mine Planning and Design 5.3 Management of Water Resources The Project underground mining area has been positioned Management of water resources would include: underneath the Doona Ridge and Nicholas Ridge Project • management of potential impacts on groundwater users; Assessment Area to minimise impacts on the alluvial plains • holding appropriate water licences under the Water within EL 6505. Management Act, 2000 for any water taken directly or The mine infrastructure area and coal handling and preparation incidentally for the Project; and plan reject emplacement areas have been located to avoid • ongoing groundwater monitoring and validation of the impacts on BSAL. groundwater model throughout the Project life. Further iterative mine planning and design would be undertaken These aspects are described further below. in consideration of environmental impact assessment outcomes Management of Potential Impacts on Groundwater Users that emerge from EIS studies. As part of the Gateway Assessment, over 100 bores were 5.2 Subsidence Management inspected to confirm their location, hydrogeological The preliminary subsidence assessment includes the adoption characteristics and usage (i.e. a bore census). of subsidence control measures in both the northern and BHP Billiton has commenced a second stage of the bore census south-western portions of the Doona Ridge mine plan. In these in consultation with relevant landholders to confirm the status, areas, the extraction height will be decreased and/or the panel location and details of the bores not yet inspected in order to width reduced to achieve the same level of subsidence control inform further impact assessment work planned for the EIS. obtained elsewhere across the mine plan. These Subsidence Consistent with the Namoi Catchment Water Study Control Zones have been included in the subsidence assessment (Schlumberger Water Services, 2012) and the Aquifer (MSEC, 2014) and will be further reviewed and revised and Interference Policy (AIP), BHP Billiton has committed to “make documented in the EIS. good” provisions for any groundwater users adversely affected The subsidence assessment for the Gateway Assessment has by mine operations and associated impacts. focused on those aspects of the physical and built environment This includes provision of alternative water supply or remedial that are relevant to agricultural production. Other aspects of the works. Such measures would be documented in a Groundwater built environment will be addressed in the EIS. Management Plan prior to the commencement of longwall Prior to causing any subsidence, the Project would be required to mining operations and would include: prepare and submit a Subsidence Management Plan (SMP) for • A Trigger Action Response Plan for identifying groundwater approval by the DTRIS-DRE. This is an approval required by triggers and appropriate actions that would be invoked. standard conditions of mining leases for underground coal mines • Identifying mitigation measures including consideration of in NSW. deepening of existing wells or bores, relocation of the bore In addition, it is likely that any Development Consent would and/or provision of an alternate water supply. include a requirement for an Extraction Plan that would be Water Licensing prepared to the satisfaction of DP&I. Under the Water Management Act, 2000, all water taken by SMPs and/or Extraction Plans would be required to include a aquifer interference activities is required to be accounted for Property Subsidence Management Plan (PSMP) for each within the extraction limits set by any relevant Water Sharing individual property that may be affected by subsidence. Plans. The Water Sharing Plans relevant to the Project include: A PSMP would be provided to the landholder/ occupier prior to • Upper and Lower Namoi Groundwater Sources 2003; mining in the area and would include: • NSW Murray Darling Basin Fractured Rock Groundwater • a plan of the property in relation to the final mining layout; Sources 2011; • details of predicted subsidence impacts and associated • NSW Murray Darling Basin Porous Rock Groundwater Sources probabilities of these impacts occurring; 2011 (Gunnedah-Oxley Basin MDB [Spring Ridge]); and • the expected timeframe of mine subsidence; • NSW Murray Darling Basin Porous Rock Groundwater Sources • a specific subsidence monitoring plan to monitor subsidence 2011 (Gunnedah-Oxley Basin MDB [Other]). impacts during and following mining, including visual The predicted annual groundwater volumes required to be inspections and structure surveys; licensed over the life of the Project are summarised in Table 3. • implementation of appropriate pre-mining mitigation BHP Billiton holds several Water Access Licences that are measures to minimise impacts, where appropriate; available for the Project: • development of appropriate remedial measures for any • WAL12931 (422 units – Upper and Lower Namoi Groundwater subsidence impacts; and Sources 2003 Zone 8). • a process to mitigate, repair, replace or compensate any • WAL14550 (215 units – Upper and Lower Namoi Groundwater impacts in a timely manner. Sources 2003 Zone 8).1 Potential mitigation and management strategies are provided in • WAL 36496 (1,000 units NSW Murray Darling Basin Porous Table 2. Rock Groundwater Sources 2011 (Gunnedah-Oxley Basin MDB [Other]). 1 Supplementary water access licences valid to 1 July 2015.

Application for Gateway Certificate – Technical Overview 16 Caroona Coal Project

5. Strategies to Minimise Potential Impacts on Strategic Agricultural Land continued

Table 2. Potential Subsidence Mitigation and Management Strategies Surface Cracks and Drainage Lines, Ponding and Cropping Areas Grazing Deformations Water Infrastructure (Irrigated and Dryland) Areas • Visual monitoring of the surface • Visual monitoring of the surface • Visual monitoring during active • Visual monitoring of the surface in the active subsidence zone, to in the active subsidence zone, to subsidence. in the active subsidence zone, to identify larger surface cracking identify larger surface cracking • Establish methods to adjust the identify any surface cracking and and deformations that could and deformations which could fences and irrigation systems. deformations which could affect safety, access, or increase result in increased potential for potentially injure stock or people. erosion. erosion. • Use of alternative crops to reduce potential for erosion. • Consider the installation of • Establish methods for surface • Establish methods to regrade the temporary fencing and/or the remediation, which could include: drainage lines or contour banks in • Establish methods to remediate temporary relocation of stock to larger surface cracks which could – infilling of surface cracks with the locations where adverse areas outside the active impacts occur. adversely impact on the crops or subsidence zone. soil or other suitable materials; associated infrastructure. or • Establish methods of remediation • Establish methods of of the surface cracking, which • Develop a PSMP incorporating remediation, which could include – by locally regrading and the agreed methods to manage recompacting the surface. could include infilling with soil or infilling of surface cracks with soil other suitable materials, or by surface cracking and or other suitable materials, or by • Establishment of erosion locally regrading and deformations with the property locally regrading and protection measures may be recompacting the surface. On owner. recompacting the surface. needed, such as the planting of steeper slopes, erosion protection vegetation in order to stabilise • Develop PSMPs incorporating the measures may be needed, such as agreed methods to manage the steeper slopes in the longer providing rip‑rap. term. surface cracking and deformations with the property • Refinement of the proposed owners. Subsidence Control Zones as part of an adaptive management approach. • Develop PSMPs incorporating the agreed methods to manage surface cracking and deformations with each of the property owners.

BHP Billiton has or will obtain appropriate licences under the Table 3. Project Groundwater Licensing Summary Water Management Act, 2000. Water Management Predicted Interim Annual Water Sharing Plan Zone/ Takes requiring Licensing BHP Billiton will continue to investigate opportunities to obtain Water Source (ML/year) licences in the NSW Murray Darling Basin Fractured Rock Groundwater Sources 2011 (Liverpool Ranges Basalt) and NSW During Mine Post-Mine Operation Operation Murray Darling Basin Porous Rock Groundwater Sources 2011 (Gunnedah-Oxley Basin MDB [Spring Ridge]); as well as Upper and Zones 1, 3, 6, 7, Avg. 363 Avg. 167 additional licences in the NSW Murray Darling Basin Porous Rock Lower Namoi 8 and 10 Max. 458 Max. 487 Groundwater Groundwater Sources 2011 (Gunnedah-Oxley Basin MDB Sources 2003 [Other]). BHP Billiton would also trade or transfer its existing NSW Murray Liverpool Avg. 9 Avg. 4 allocation under WAL12931 to different Upper and Lower Namoi Darling Basin Ranges Basalt Max. 10 Max. 9 Groundwater Sources 2003 Zones, as necessary. Fractured Rock MDB Groundwater Sources 2011 5.4 Rehabilitation Minor Project surface disturbance areas that would be NSW Murray Gunnedah– Avg. 2 Avg. 6 progressively rehabilitated include those associated with surface Darling Basin Oxley Basin Max. 6 Max. 11 Porous Rock MDB (Spring exploration activities, surface gas drainage works, service Groundwater Ridge) boreholes, access tracks, environmental monitoring and Sources 2011 management activities (e.g. installation of monitoring NSW Murray Gunnedah– Avg. 1,033 Avg. 88 equipment) and mine subsidence surface impacts. These areas Darling Basin Oxley Basin Max. 2,301 Max. 254 would be rehabilitated to their previous land use (e.g. Porous Rock MDB (Other) Groundwater agricultural use or native vegetation). Sources 2011 Other surface disturbance areas, including the mine Source: HydroSimulations (2014). infrastructure area, would be rehabilitated at the cessation of the Project.

Application for Gateway Certificate – Technical Overview 17 Caroona Coal Project

5. Strategies to minimise potential 6. Consideration of Gateway impacts on strategic agricultural land continued Criteria for Biophysical Strategic Agricultural Land The final land use of the mine infrastructure area would include 6.1 Assessment of Biophysical Strategic areas for agricultural land uses and would be determined through the EIS process, as it requires detailed consultation with Agricultural Land relevant stakeholders. An assessment of BSAL within the Project Assessment Area was conducted by McKenzie Soil Management (2014). Verification Soil resource management practices would involve the stripping included 404 soil test pits across the Project Assessment Area and stockpiling of soil resources prior to any mine-related and surrounds, in accordance with the Strategic Regional Land disturbance. Use Policy – Interim Protocol for Site Verification and Mapping of The objectives of soil resource management for the Project Biophysical Strategic Agricultural Land (NSW Government, 2013) would be to: (Plate 5). The above protocol outlines 12 steps that must be • Identify and quantify potential soil resources for rehabilitation. satisfied to meet BSAL characteristics (Figure 5). • Optimise the recovery of useable topsoil and subsoil during BSAL mapping for the Project is shown on Figure 6. The majority stripping operations. of soil test pits did not meet the criteria for BSAL, with subsoil • Manage topsoil and subsoil reserves so as not to degrade salinity being the main limiting factor (McKenzie Soil whilst stockpiled. Management, 2014). • Establish effective soil amelioration procedures to maximise the availability of soil for future rehabilitation. 6.2 Consideration of Gateway Criteria • Take into account the need to provide soil conditions that The AIA prepared by La Tierra (2014) includes an assessment of minimise the risk of soil loss via wind and water erosion during the potential impacts of the Project on BSAL, including and after rehabilitation. consideration of the relevant criteria in the Mining SEPP. A summary of this assessment is provided in Table 4. The McKenzie Soil Management has developed soil resource assessment indicates that the Project would not significantly management measures that would be considered in the reduce the agricultural productivity of any BSAL. preparation of the EIS and Rehabilitation Management Plan for the Project. The majority of Project infrastructure which is the subject of this Gateway Application would not be located on verified BSAL. However, the Project would also involve minimal temporary disturbance to BSAL associated with ventilation and gas drainage infrastructure, service boreholes, exploration activities and remediation activities. La Tierra (2014) notes that for the mining of any coal resource, the underground longwall mining method has lower-order potential impacts on agriculture than open cut mining. Potential Subsidence Impacts La Tierra has assessed the potential impacts of subsidence on BSAL supported by a Subsidence Assessment prepared by MSEC. Mine subsidence may cause surface cracking and landform changes, changes to water drainage, changes to surface water resources, changes to groundwater resources and impacts to built features. Subsidence may also result in changes in gradient of surface drainage features, both natural and manmade (such as contour banks). This may lead to ponding above longwall Plate 5. Soil Investigation panels in some cases (MSEC, 2014). BHP Billiton and MSEC have investigated Subsidence Control Zones for the Project to achieve consistent subsidence control across the mine plan. These Subsidence Control Zones would be reviewed and revised for the EIS. The predicted total maximum subsidence varies due to depth of cover and extraction height (i.e. extraction height is reduced in the Subsidence Control Zones) and is predicted to be between 1.6 and 3.1 m. The predicted strains vary across the Project underground mining area depending on the local depth of cover. A summary of predicted crack widths is provided in Table 5.

Application for Gateway Certificate – Technical Overview 18 Step 1 Is slope less than or equal to 10%? Yes Step 2 Is there <30% rock outcrop? Yes Does <20%> of area have unattached Step 3 rock fragments >60 mm diameter? Yes Does <> 50% of the area have Step 4 gilgais >500 mm deep? Yes Step 5 Is slope <5%? Yes Step 6 Are there nil rock outcrops? This site is Yes No No No not BSAL Does soil have No Does soil have moderately There is no need Step 7 moderate fertility? high or high fertility? to do further assessment. Yes Yes Is effective rooting depth to a Step 8 physical barrier >>750 mm? Yes Step 9 Is soil drainage better than poor? Yes Does the pH range from 5 - 8.9 if Step 10 measured in water or 4.5 - 8.1 if measured in calcium chloride, within the uppermost 600 mm of the soil profile? Yes Is salinity (ECe) <4dS/m or are chlorides <800> mg/kg when gypsum Step 11 is present within the uppermost 600 mm of the soil profile? Yes Is effective rooting depth to a Step 12 chemical barrier >750> mm?* Yes This site is BSAL If contiguous area is > 20 ha

* In accordance with Section 6.10 of the Interim Protocol Source: After NSW Government (2013) C A R O O N A C O A L P R O J E C T FIGURE 5 Flow Chart for Site Vertication of Biophysical Strategic Agricultural Land HVE-13_02 _Gateway_TO_004C Application for Gateway Certificate – Technical Overview 19

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s i r r Location of BSAL of Location e i FIGURE 6 CAROONA COAL PROJECT CAROONA d

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ER IV R Protocol Verified BSAL Verified Protocol Interpreted as Protocol Verified BSALusing Desktop Methods Areas Verified not BSAL BSAL Potential SRLUP West North England New Caroona

I OK MO Doona State Forest State Doona LEGEND (EL 6505) Licence Exploration Area Assessment Project

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L E Source: Land and Property Management Authority - Topograpraphic Base Orthophoto 2010, (Curlewis 2011 & Tamworth 2010) and Office of Environment and Heritage, 2013 6530000 6520000 HVE-13-02_Gateway_TO_216E

Application for Gateway Certificate – Technical Overview 20

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k e e r 6. Consideration of Gateway Criteria for Biophysical Strategic Agricultural Land C continued

k e e r Table 4. Consideration of Relevant Criteria for Biophysical Strategic Agricultural Land C

1 s i r Criteria Assessment r Location of BSAL of Location e i FIGURE 6 CAROONA COAL PROJECT CAROONA d

W n Y i d WA r a (i) any impacts on the land through surface area Disturbance to BSAL would be associated with subsidence and some areas of minor IGH i o I H u R RO disturbance and subsidence, temporary disturbance associated with gas drainage and water management n LA Q I a

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B Government, is located on land within the Project Assessment Area where no access was available for ground survey. Subsidence would occur as a result of longwall mining within the Project Assessment Area. Impacts on farming operations are expected to be managed such that BSAL characteristics are preserved and agricultural land uses reinstated.

260000 260000 (ii) any impacts on soil fertility, rooting depth or The Project would not cause any long-term or permanent impacts on soil fertility, effective soil drainage, rooting depth or soil drainage with respect to BSAL. (iii) increases in land surface micro-relief or soil The Project would cause changes to land surface micro-relief of BSAL as a result of

salinity, rock outcrop, slope and surface subsidence.

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rockiness or significant changes to pH,

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o R y e l r e v a W (iv) impacts on highly productive groundwater The Project meets the Level 1 minimal impact considerations for highly productive (within the meaning of the AIP), groundwater outlined in the AIP for alluvial groundwater. The Project triggers the Level 2 minimal impact considerations of the AIP for the highly ER IV productive Gunnedah-Oxley Basin MDB (Spring Ridge) Water Source. BHP Billiton has R

Protocol Verified BSAL Verified Protocol Interpreted as Protocol Verified BSALusing Desktop Methods Areas Verified not BSAL BSAL Potential SRLUP West North England New committed to “make good” provisions for any groundwater users adversely affected by mine operations and associated impacts. Caroona (v) any fragmentation of agricultural land uses, The Project would not cause any long-term or permanent fragmentation of BSAL. (vi) Any reduction in the area of biophysical The Project would not cause any reduction in the area of BSAL. I strategic agricultural land. OK MO Source: After La Tierra (2014). 1 Clause 17H(4)(a) of the Mining SEPP.

Table 5. Predicted Crack Width The Project triggers the Level 2 Minimal Impact Considerations of

Doona State Forest State Doona Typical Crack the AIP for the ‘highly productive’ NSW Murray Darling Basin Mining Area Depth of Cover (m) LEGEND (EL 6505) Licence Exploration Area Assessment Project Widths Porous Rock Groundwater Sources 2011 (Gunnedah‑Oxley Basin MDB [Spring Ridge]) water source. This is due to a prediction of Doona Ridge (North) 135 – 420 25 to 100 mm more than 2 m predicted cumulative drawdown at some 27 water

250000 250000 Doona Ridge (South) 395 – 710 10 to 25 mm supply works. Nicholas Ridge 130 – 360 50 to 100 mm In accordance with the AIP, this means “that further studies to assess whether a project will prevent the long-term viability of a

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a W r L a I A b R a groundwater within the framework of the AIP. The AIP framework Consistent with the Namoi Catchment Water Study n o K o E C E has been developed by the NSW Government to assist with the R (Schlumberger Water Services, 2012) and the AIP, BHP Billiton C

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Y affect groundwater resources. The AIP framework has been users adversely affected by mine operations and associated A

W A N developed by NoW which identifies two levels of minimal impact N impacts. This includes provision of alternative water supply or I B considerations, as described below: remedial works. Such measures would be documented in a

Kilometres • Level 1 impact, which is considered acceptable. Groundwater Management Plan prior to the commencement of GDA 94GDA ZoneMGA 56 • Level 2 impact, which requires further studies to assess longwall mining operations and would include: whether a project will prevent the long-term viability of a • A Trigger Action Response Plan for identifying groundwater 5 n 0 ma eek 5 arra Cr

6 Y dependent ecosystem or significant site, or needs other triggers and appropriate actions that would be invoked.

01234 L E arrangements to mitigate the impacts. • Identifying mitigation measures including consideration of Based on the findings of HydroSimulations (2014), the Project deepening of existing wells or bores, relocation of the bore to meets the Level 1 Minimal Impact Considerations of the AIP for another aquifer and/or provision of an alternate water supply. Source: Land and Property Management Authority - Topograpraphic Base Orthophoto 2010, (Curlewis 2011 & Tamworth 2010) and Office of Environment and Heritage, 2013 ‘highly productive’ groundwater associated with the Upper and Lower Namoi Groundwater Sources, and associated with the NSW Murray Darling Basin Fractured Rock Groundwater Sources (Liverpool Ranges Basalt Murray Darling Basin). 6530000 6520000 HVE-13-02_Gateway_TO_216E

Application for Gateway Certificate – Technical Overview 21 Caroona Coal Project

7. Conclusion

The Southern Plains sub-region (comprising the Gunnedah and BSAL within the Project Assessment Area would experience mine Liverpool Plains LGA (Figure 1) has the highest agricultural subsidence from the Project. Subsidence would result in some productivity in NSW, with a unique combination of volcanic soils, cracking on the surface; however would not affect soil fertility, rainfall reliability, climate (sunshine hours, moderate effective rooting depth or soil drainage. Therefore, the Project temperature and protection from hot westerly weather) and should not result in a long-term or permanent change to the availability of surface and groundwater (DP&I, 2012). agricultural productivity of BSAL. Notwithstanding, BHP Billiton The Project Assessment Area comprises elevated and gently would seek to remediate any surface cracking that develops as a sloping land characterised by agricultural enterprises, which result of subsidence. include cattle grazing, forestry and both dryland and some The groundwater assessment shows that the Project meets the limited irrigated cropping flanked by alluvial plains dominated by ‘Level 1’ minimal impact considerations of the AIP for key irrigated and dryland cropping. regional ‘highly productive’ groundwater resources, namely the This Gateway Application is for an underground coal mine Namoi alluvium and Liverpool Ranges basalt. The Project is underneath the Doona Ridge and Nicholas Ridge Project predicted to trigger ‘Level 2’ of the minimal impact Assessment Area within EL6505. Through focusing proposed considerations for the Spring Ridge water source for drawdowns underground mining operations under these elevated and gently of greater than 2 m at privately-owned bores. BHP Billiton has sloping lands, and with the implementation of other mitigation committed to ‘make good’ any impacts on these privately‑owned measures, the Project has been designed to minimise impacts on bores and will continue to investigate these impacts through the the alluvial plains. conduct of a census of these bores and refinement of groundwater modelling prior to the EIS. Initial engagement in regard to the Gateway Application revealed reluctance on the part of some local landholders to participate in the Gateway process. Specifically, some landholders withheld access for soil test pits by McKenzie Soil Management and/or agricultural interviews with La Tierra. Following continued engagement to communicate the purpose of these assessments in informing the Gateway Application, and the Gateway Working Group, access improved to the extent that ultimately, only a small number of landholders within the Project Assessment Area declined to participate. Notwithstanding, discussions are continuing and further soils and agricultural studies are planned to inform the EIS. Four hundred and four soil test pits were excavated to verify BSAL within the Project Assessment Area. In addition, some 40 interviews were conducted with local stakeholders to further characterise the agricultural enterprises in the area. This Gateway Assessment is supported by the following assessments: • AIA – La Tierra. • Agricultural Resource Assessment – McKenzie Soil Management. • Preliminary Groundwater Assessment – HydroSimulations. • Subsidence Assessment – MSEC. Up to 2,215 ha of BSAL has been verified or interpreted within the Project Assessment Area by McKenzie Soil Management. Surface infrastructure has been designed to avoid BSAL. Only minor, temporary surface disturbance activities to BSAL are proposed. It is also noted that approximately 459 ha of Potential BSAL, as mapped by the NSW Government, is located on properties where no access was available for ground survey as part of this assessment. Most of this Potential BSAL is within the Alluvial soil landscape unit which has been found to have subsoil limitations that generally exceed the relevant BSAL criteria (McKenzie Soil Management, 2014).

Application for Gateway Certificate – Technical Overview 22 Caroona Coal Project

8. References

BHP Billiton (2006a) Exploration Environmental Management Plan for the Caroona Project – EL 6505 (July 2006). BHP Billiton (2006b) Review of Environmental Factors for Exploration Borehole C44 – Caroona Exploration Area. BHP Billiton (2007) Review of Environmental Factors for Caroona Exploration Program Reconnaissance Drilling and Associated Activities 2007 to 2011 (September 2007). BHP Billiton (2009) Review of Environmental Factors for Caroona Exploration Program Exploration Drilling and Associated Activities 2009 to 2011 (March 2009). BHP Billiton (2010a) Review of Environmental Factors for Caroona Exploration Program – EL6505 3D Seismic Survey 2010 (October 2010). BHP Billiton (2010b) Review of Environmental Factors for Caroona Exploration Program – EL6505 3D Seismic Survey 2010 Addendum (December 2010). BHP Billiton (2011a) Review of Environmental Factors for Caroona Exploration Program – Large Diameter Boreholes 2011 (April 2011). BHP Billiton (2011b) Caroona Exploration Program – REF for Large Diameter Boreholes 2011 (April 2011) – Classification of Issues. Addendum to the original REF dated 6 June 2011Department of Environment, Climate Change and Water (2010) Aboriginal Cultural Heritage Consultation Requirements for Proponents 2010. Department of Planning and Infrastructure (2012) Strategic Regional Land Use Plan New England North West. Department of Trade, Investment and Regional Services – Division of Resources and Energy (2014) Gunnedah Basin - Geological overview. Website: http://www.resources.nsw.gov.au/ geological/overview/ regional/sedimentary-basins/gunnedah. Accessed: 9 January 2014. HydroSimulations (2014) Caroona Coal Project Gateway Application – Preliminary Groundwater Assessment. La Tierra (2014) Caroona Coal Project Preliminary Agricultural Impact Statement. McKenzie Soil Management (2014) Caroona Coal Project Gateway Application – Agricultural Resource Assessment. Mine Subsidence Engineering Consultants (2014) Caroona Coal Project Gateway Application – Subsidence Assessment. New South Wales Government (2013) Strategic Regional Land Use Policy - Interim Protocol for Site Verification and Mapping of Biophysical Strategic Agricultural Land (BSAL). Schlumberger Water Services (2012) Namoi Catchment Water Study.

Application for Gateway Certificate – Technical Overview 23