Kandym Gas Field Development DRAFT Environmental Impact Assessment
June 6, 2010
Prepared by: LUKOIL 11, Sretensky Blvd. Moscow, 101000, Russia Contents
1. Executive Summary ...... 1 2. Legal framework...... 4 2.1 Legislation ...... 4 2.2 Institutional framework ...... 11 2.3 PSA Environment Protection Requirements...... 12 3. Project Description ...... 16 4. Description of environmental conditions...... 34 4.1 Topography and Geology...... 35 4.2 Desertification...... 36 4.3 Climate ...... 37 4.4 Air Quality...... 38 4.5 Surface and Ground waters ...... 39 4.6 Soil and Subsoil...... 40 4.7 Radiation ...... 41 4.8 Flora and Fauna ...... 41 4.9 Social situation analysis ...... 44 4.10 Information accuracy and availability...... 48 5. Expected environmental impacts and mitigation measures ...... 49 5.1 Wells construction ...... 49 5.2 Development of gas-condensate fields ...... 54 5.3 Construction-period infrastructure ...... 61 5.4 Impact on Desertification...... 63 5.5 Social Impacts and Mitigation Measures...... 64 5.6 Impact Significance ...... 65 5.7 Impact Summary ...... 65 6. Analysis of alternatives...... 72 6.1 Selection of preferred alternative...... 72 6.2 No action alternative...... 73 6.3 Alternative to Kandym GPP...... 74 6.4 Selection of Final Alternatives ...... 74 7. Disclosure, consultations and participation ...... 75 7.1 Project design and Preparation ...... 75 7.2 Operation...... 76 8. Procedure for addressing grievances...... 77 9. Environmental Management Plan (EMP) ...... 79 9.1 Mitigation measures ...... 79 9.2 Monitoring...... 80 9.3 Implementation methods and efficiency indicators...... 82 9.4 EMP budget...... 82 10. Conclusions and recommendations ...... 84 10.1 EIA Process...... 84 10.2 Results ...... 84
Kandym Gas Field Development Draft EIA – June 6, 2010 List of attachments
Attachment No.1. Conclusion of the State Environmental Expertise Committee for EIA of the GPP complex construction and Kandym group of fields development. Attachment No.2. Detailed maps of KGF. Attachment No.3. Observation network layout within the framework of Environmental Audit. Attachment No.4. Handbook of the existing rare and endemic species of plants and animals in Khauzak-Shady and Kandym Group of Fields (Bukhara region). Attachment No.5. Conclusion of the State Environmental Expertise Committee for “Report on Environmental Audit of the Contract Area consisting of: the Kandym Group of Fields, Khauzak-Shady Site and Kungrad Site”. Attachment No.6. Plan of organizational and engineering actions in Health, Safety and Environment of “LUKOIL Uzbekistan Operating Company” LLC for 2010. Attachment No.7. Action plan of Environmental Protection and Rational Exploitation of Natural Resources of “LUKOIL Uzbekistan Operating Company” LLC for 2010. Attachment No.8. Health, Safety and Environment Program in respect jf Oil and Gas Operations within the Contract Area for projects of Kandym-Khauzak-Shady-Kungrad and Gissar-Ustyurt for 2010-2012. Attachment No.9. Report on Implementation of Action Plan of Environment Protection and Rational Exploitation of Natural Resources for 12 months of 2009.
Kandym Gas Field Development Draft EIA – June 6, 2010
Abbreviations and Acronyms
ADB Asian Development Bank AP Affected Persons APP Atmospheric Pollution Potential BCS Booster Compressor Station CAC Central Asia Center gas pipeline CBD Convention on Biological Diversity CCD Convention to Combat Desertification CM Cabinet of Ministers COS Carbon Oxysulfide CP Collection Point DWW Drilling Wastewater DS Drilling Sludge EIA Environmental Impact Assessment EIS Environmental Impact Statement EMP Environmental Management Plan EP Environmental Protection FCCC Framework Convention on Climate Change GPP Gas Processing Plant HSE Health, Safety and Environment KGF Kandym Gas Fields KGPP Kandym Gas Processing Plant MC Managing Committee MMU Mud Mixing Units MPC Maximum Permissible Concentration MH RU Ministry of Health of RUz NE Nature Environment NHC National Holding Company OE Objects of Environment OM Oliy Majlis (Parliament) PEM Production and Ecological Monitoring POL Petroleum, Oil and Lubricants PSA Production Sharing Agreement PTL Power Transmission Line RUz Republic of Uzbekistan SCNP State Committee for Nature Protection SDW Solid Domestic Wastes SEM State Environmental Monitoring SSIAC State Specialized Inspection of Analytical Control SPZ Sanitary Protection Zone SRLI Safe Reference Levels of Impact UZS Uzbek Soum WDM Waste Drilling Mud
Kandym Gas Field Development Draft EIA – June 6, 2010
1. Executive Summary
1. The Republic of Uzbekistan assigns high priority to development of industrial potential, primarily the fuel and energy sector, as the basis for economic growth of the country and strengthening of its energy independence. In this connection, the oil and gas industry plays the priority role as one of the major sectors of industry of the country. 2. Significant reserves of hydrocarbons have been found in the RUz, and their development is concerned with certain difficulties (remoteness, lack of capital, increased content of hydrogen sulfide) that necessitate a closer cooperation with foreign investors for bringing in advanced technologies and additional funds. 3. In the recent years the country has accumulated the experience in construction of environmentally sound facilities of oil and gas industry with participation of foreign capital and technology. Friendlier investment climate has been created for attraction of foreign investments. 4. The purpose of this Project is the development of the KGF and the associated gas processing plant.. The capacity of the field and the gas processing plant is estimated up to 8 billion m3/year of natural gas, more than 200 thousand tonne/year of gas condensate and about 190 thousand tonne/year of sulfur. 5. The aim and necessity for development of the KGF are governed by the need for general economic development of the RUz’s economy in which the development of natural resources play a key role. The development of KGF will also provide socio-economic benefits and raise the living standards of the complex’s personnel, many of whom will be residents from the nearby communities. 6. The target activity will maximize the use of natural resources by increasing the recovery of hydrocarbons and associated products by attracting critical technical knowledge and foreign capital. The target activity separates methane from valuable components found in the natural gas: propane-butane fractions, gas condensate and sulfur. Methane and its valuable components are then utilized for productive economic use. KGF also helps in deepening international cooperation and trade as most of the product is exported to neighboring Central Asian and other countries. 7. The Production Sharing Agreement (PSA) for the Kandym field group, Khauzak and Shady blocks, and Kungrad block between the Republic of Uzbekistan and consortium of investors consisting of the Oil Company OAO LUKOIL and The National Holding Company Uzbekneftegas was signed on June 16, 2004. On the same date, June 16, 2004, the Oil Company “LUKOIL” transferred its rights and duties under the PSA to the company “LUKOIL Overseas Uzbekistan Ltd.”. Transfer of rights and duties was approved by the Decree of Cabinet of Ministers of RUz № 428 dated September 14, 2004. On November 24, 2004 the PSA entered into force (became effective). 8. “LUKOIL Uzbekistan Operating Company” (as Operator by the PSA ) is planning to develop production wells, cluster sites, gathering points, in-field pipelines, gas processing plant, and to build trunk gas pipeline and infrastructure facilities (railway branch, access road, water supply wells, power transmission lines, voltage reduction station, etc). Drilling of production wells and the KGF is planned for 126 wells, including 28 at the satellite fields. 9. Initial drilling activities at KGF have already begun. Construction works of facilities at KGPP is scheduled to begin in 2013 and complete in 2016. Thus, the commissioning of field facilities of Kandym group of fields will continue over the next 18 years from the date of commencement of complex construction. According to the PSA the whole complex (facilities of Kandym group of fields) will be operated by Operator until 2039.
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10. This report presents the findings of the environmental impact assessment (EIA) carried out by LUKOIL Uzbekistan Operating Company to develop the Kandym Gas Field project (KGF) located Karakul District of Bukhara Province of the RUz. 11. The EIA of the proposed activity has been conducted in compliance with the current laws and regulatory system of the RUz and based on the results of researches and studies of environmental, economic, social and administrative aspects, as well as on analysis of the existing condition and specific characteristics of the environment in the area of the proposed activity. The baseline social and economic conditions in Karakul District, as well as social and economic aspects, related to development and performance of works on gas processing at the KGF have been considered. Alternative options of projected activities and process solutions have been considered. Consultations were also held with local government officials and nearby residents to provide information and viewpoints regarding the Project. 12. The forecast of potential effect of the proposed works on the environment including atmosphere, soil, underground and surface waters, flora and fauna as well as hazards to operational personnel and population, and to the environment are described. The measures on prevention from potential adverse impacts to the environment are outlined as well and summarized in the Environmental Management Plan. 13. The evaluation held in the context of this EIA of the anthropogenic effect of the works (wells construction and development of the complex of technical and nature protection measures), as well as a state ecological examination of the EIA materials (Attachment №1) confirmed that the impact to the environment will be of local character and low level without occurrence of irreversible processes. The planned nature protection measures will allow successful development of the wells in compliance with all requirements to the environmental protection. 14. Implementation of the KGF will: comply with organizational and technical measures to prevent pollution of the soils, surface and ground waters and atmospheric air; include controls over state of the atmospheric air, soils and etc.; provide for neutralization and timely utilization (recycling) of industrial and consumption wastes; include land reclamation of construction sites; comply with RUz and ADB requirements regarding land acquisition and resettlement. 15. In addition, all the processes of construction and operation of the KGF’s facilities arrangement will be covered by environmental monitoring program in the Contract Area. Implementation of monitoring will allow prompt identification and prevention of possible adverse consequences for the environment. The further development of nature protection measures at every project stage will allow successful operation of the KGF’s facilities with observance of all the requirements to environment protection. 16. The main findings of the EIA are: the implementation of the project is directed to maintain security in supplying gas and liquid hydrocarbon for the country; the objective of the project is to increase the production of hydrocarbons, to increase extraction of valuable components and deep gas refining without significant increase of development pressure to environment; the implementation of the project, will strive to avoid resettlement, include the employment of local people, and create convenient living and working conditions for operational personnel;
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the risk of emergency situations resulting in considerable negative environmental or social consequences is not significant. 17. The implementation of the projected activities will not affect the environment with long- term harmful consequences, provided that operational instructions, safety procedures, environmental measures are performed and observed. 18. The development of gas fields similar to KGF has been done successfully by Lukoil and there is sufficient experience and technical know how within the oil and gas industry to successfully develop such projects. 19. State Environmental Impact Assessment of the project has shown their compliance with regulatory documents. Proposed measures on decrease of negative impacts to the environment and rational use of natural resources are in compliance with proposed project. 20. In the following project development stages it is required to specify parameters of impact to environment, to develop detailed maximum permissible requirements of impact, to continue development of environmental protection measures and performance of environmental monitoring and control.
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2. Legal framework
2.1 Legislation 21. Within the limits of established state policy under the direction of the President and Cabinet of Ministers (CM) in the RUz, great attention is paid to the execution of accepted ecological obligations. Nature conservation policy of RUz and implemented measures in the sphere of environmental protection (EP) and rational nature management are based on the following principles: integration of economic and ecological policy for conservation and rehabilitation of environment as the necessary condition for increasing of the population’s standard of living; transition from protection of some individual elements of nature to general and complex protection of eco systems; responsibility of all members of society for EP, conservation of its biodiversity and improvement of condition, creation of conditions for favorable habitation of population. 22. National legislation regarding EP issues and sustainable nature management is based on the regulations of the Constitution of RUz. The Constitution of RUz was accepted on December 8, 1992, amended in accordance with the Law of RUz dated 28.12.1993, No. 989-XII, and the Law of RUz dated 24.04.2003 No. 470-II. Government, its organs, public officers, social associations, and citizens act in accordance with Constitution and laws. (Article 15). None of the regulations of Constitution can be interpreted to the prejudice of rights and interests of RUz. None of the laws or other normative-legal acts can contradict norms and principles of Constitution (Article 16). 23. In accordance with Constitution of RUz land, its resources, flora and fauna, and other natural resources are national wealth and are subjected to rational usage and protected by government. In Article 55 of Constitution of RUz it is said, “... land, its resources, flora and fauna and also other nature resources are the national wealth and should be rationally used and protected by state”. 24. On the basis of Constitution, the laws are taken by Oliy Majlis (OM), signed by the President of RUz and have the highest legal power. The President of RUz, on the basis and in pursuance of execution of Constitution and laws of RUz, issues orders, statements and decrees, having compulsory power on the whole territory of RUz (Article 94). 25. The Cabinet of Ministers (CM), in accordance with acting legislation, issues statements and decrees which are compulsory for execution on the whole territory of RUz by all organs, ventures, establishments, organizations, public officers and citizens (Article 98). Khokim, in the limits of authorization, submitted to him, takes decisions which are compulsory for execution by all ventures, establishments, associations and also public officers and citizens on corresponding territory (Article 104). 26. The State Committee for Nature Protection (SCNP) of RUz is subordinated to OM of RUz and carries out state control for keeping law by ministries, state committees, establishments and organizations and also by some legislative persons, in the sphere of usage and protection of lands, subsoils, water, forests, flora and fauna, atmosphere air. 27. The fundamental legislative act regulating nature conservation relations is the Law “On nature protection” No. 754-XII dated December 9, 1992 (last revision was made by Law of RUz No.59 dated 10.10.2006). This Law states legal, economic and organizational bases for keeping conditions of environment, rational usage of nature complexes. It has the aim to provide balanced harmonic development of relations between humans and nature,
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protection of ecological systems, nature complexes and separate objects, and guarantee rights of citizens for favorable environment. 28. The influence of economic activity on nature environment (NE) is limited by norms and quality standards of NE, guaranteeing ecological safety of population, production and protection of nature resources. At formation of territorial production complexes, development of industry, agriculture, construction and reconstruction of cities and other settlements, maximum load norms for NE are stated. 29. Ventures, organizations and establishments should develop ecological and other criteria, stipulating maximum loads on environment. Ecological norms are stated by SCNP, Ministry of Health of RUz (MH RU), State Committee of RUz for control of safe industry works and mines inspectorate in accordance with their compensation. 30. Subsoils and minerals are used with condition: provision of complex and economic usage of production and related nature resources and also avoidance of NE and subsoils pollution; re-cultivation of land, damaged during production operations; usage of regenerative minerals only in the limits of their natural renewal. 31. Treatment of wastes is carried out as per the order stated by Law. The owners of wastes have responsibility for safe treatment of wastes. Decision of issues on localization of waste treatment facilities on corresponding territory is carried out by public authorities. 32. State control in the sphere of EP is carried out by public authorities and regulatory bodies and state organs for nature protection, authorized for it specially. Specially authorized organs for nature protection are: State Committee for Nature Protection of RUz Ministry of Health of RUz Agency for control of safe industry works and mines inspectorate Ministry of Internal Affairs of RUz Ministry of Agriculture and water resources of RUz State Committee for land resources of RUz 33. Payments for special nature management and pollution of environment consists of taxes and also, compensation payments for pollution of the environment (emissions, discharge of contaminants and wastes disposal), payments for protection and restoration of nature resources. 34. Rates of taxes and sizes of other compulsory payments, including lease payment, for usage of nature resources considering their abundance, quality, restoration possibilities, availability, complexity, productivity, location, possibility of processing and utilization of wastes and other factors, and also corresponding limits are determined and approved by the order stated by Law. 35. Amount of compensation payments for pollution of the environment is approved by CM of RUz after submission by SCNP The amount of payments on protection and restoration of nature resources are stated by CM of RUz. 36. Payments for usage of nature resources are included to the cost of products (works, services) of ventures-users of natural resources. Compensation payments for pollution of the environment, and also for extra-limited (extra-normative) and other non-rational special nature management are charged from the profit of physical person.
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37. Payment for usage of nature resources, their protection and restoration is made to State budget of RUz. Amounts of compensation payments for emissions and pollutants discharge to environment and wastes disposal are going to the funds of nature protection. Payment privileges for special nature management and compensation payments for pollution of environment are stated by Law. 38. Payment for usage of nature resources and compensation payments for pollution of environment do not release juridical and physical persons from execution of ecological measures and from responsibility to compensate for harm caused. 39. In RUz voluntary and compulsory insurance of property and profits of ventures, establishments and organizations, life and property of citizens is carried out for the case of damage which is the result of NE and worsening of quality of nature resources. The order and conditions of ecological insurance are stated by law of RUz. 40. In case of accident, the establishment or organization should immediately begin to address it in accordance with its plans of actions in emergency ecological situations. At the same time, they must immediately notify about accident and measures for its mitigation the local organs of state power and management, state organs for nature protection and also special departments on mitigation of harmful ecological effects of these accidents. 41. Ventures, organizations, establishments, individuals should implement waste-free and low waste technologies, reduce formation of production and consumption wastes, render harmless, treatment, keep the rules of their sorting, warehousing, disposal and utilization. Commissioning of facilities not complying with ecological requirements is forbidden. 42. It is forbidden to keep and dispose wastes on the lands of settlements, nature protective, health-improving, re-creational and historical-cultural places, in the borders of water protective zones and zones of sanitary protection of water objects and in other places where there is a risk to life and health of citizens and also for natural areas and objects which are specially protected. 43. Disposal of wastes in subsoils is permitted in exclusive cases, by the results of special investigations keeping requirements for provision of safety for life and health of citizens, environment, and safety of nature resources. 44. Treatment of wastes, disposal or storage of wastes on landfills is carried out with the permission of state organs for nature protection. It is forbidden to use raw materials, implement technological processes and issue ready products (including food products) without ecological or hygienic certificates and also with deviations from definite parameters. Ecological certification is also carried out in cases provided by Law. The order of ecological certification is approved by CM of RUz. 45. Besides, the Law “On nature protection” in RUz some other laws, regulating relations in different spheres of management and EP has been developed such as: 1) Law of RUz “On water and water usage” No. 837-XII dt May 6, 1993, came into force by the Regulation of Supreme Soviet of RUz “On order of promulgation of a Law of RUz “On water and water usage” No. 837-XII dt May 6, 1993 (last revision was made by Law of RUz No. 240 dt 25.12.2009). 2) Law of RUz “On protection of atmospheric air” No. 353-I dt. December 27, 1996, came into force by the Regulation of Oliy Majlis of RUz No. 354-I от 27.12.96г. “On promulgation of a Law of RUz “On protection of atmospheric air” (last revision was made by Law of RUz No.59 dt. 10.10.2006). 3) Law of RUz “On protection and usage of flora” No. 543-I dt. December 26, 1997, came into force by the Regulation of Oliy Majlis of RUz “On promulgation of a Law of RUz “On protection and usage of flora” No. 544 dt.
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December 26, 1997. (last revision was made by Law of RUz No. 82-II dt. 26.05.2000). 4) Law of RUz “On protection and usage of fauna” No. 545-I dt. December 26, 1997, came into force by the Regulation of Oliy Majlis of RUz “On promulgation of a Law of RUz “On protection and usage of fauna” (last revision was made by Law of RUz No.59 dt. 10.10.2006). 5) Law of RUz “On wastes” No. 362-II dt. April 5, 2002, came into force by the Regulation of Oliy Majlis of RUz. 6) Law of RUz “On order of promulgation of a Land Code of RUz” No. 598-I dt. April 30, 1998. (last revision was made by Law of RUz No.714-II dt. 03.12.2004). 7) Law of RUz “On state land cadastre” No. 666-I dt. August 28, 1998, came into force by the Regulation of Oliy Majlis of RUz “On promulgation of a Law of RUz “On state land cadastre” No. 667-I dt. August 28, 1998 (last revision was made by Law of RUz No. 621-II dt. 30.04.2004). 8) Law of RUz “On woods” No. 770-I dt. April 15, 1999, came into force by the Regulation of Oliy Majlis of RUz “On promulgation of a Law of RUz “On woods” No. 771-I dt. 15.04.99. (last revision was made by Law of RUz No.238 dt. 22.12.2009). 9) Law of RUz “On radiation safety” No. 120-II dt. August 31, 2000, came into force by the Regulation of Oliy Majlis of RUz “On promulgation of a Law of RUz “On radiation safety” No. 121-II dt. 31.08.2000. (last revision was made by Law of RUz No.133 dt. 18.12.2007). 10) Law of RUz “On protected nature territories” No. 710-II dt. December 3, 2004, came into force by the Regulation of Oliy Majlis of RUz “On promulgation of a Law of RUz “On protected nature territories” No. 711-II dt. December 3, 2004. 11) Law of RUz “On subsoils” is approved by Law of RUz No.444-II dt. 13.12.2002г. (last revision was made by Law of RUz No.133 dt. 18.12.2007.) 12) Law of RUz “On EIA” No. 73-II dt. May 25, 2000, came into force by the Regulation of Oliy Majlis of RUz “On promulgation of a Law of RUz “On EIA”. 46. As a whole, ecological legislation of RUz covers wide spectrum of issues and includes regulations in the following spheres: protection of environment and its main components; protection of eco systems and regulation of usage of nature resources; evaluation of influence on environment and ecological expertise; regulation of compensations for damage made to environment (including economical and administrative aspects); regulation of property rights for nature resources. 47. Below is the list of legislative acts of RUz, regulating issues of EP, applied for the activity of Operator and based on the Laws of RUz: 1) Regulation of CM of RUz “On limited water use in RUz” No. 385 dt. August 3, 1993. (last revision was made by Regulation of CC of RU No.499 dt. 25.10.2004). 2) Regulation of Supreme Soviet of RUz “On reinforcement of protection of valuable and vanishing species of plants and animals and regulation of their usage” No. 937- XII dt. September 3, 1993.
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3) Regulation of CM of RUz “On establishment of quotes for calculation of damages recovery, caused to flora of RUz” No. 293dt. July 27, 1995 (last revision was made by Regulation of CM of RUz No.95dt. 01.04.2005). 4) Regulation of Oliy Majlis of RUz “On approval of Regulations on State Committee of RUz for nature protection” No. 232-I dt. April 26, 1996. (last revision was made by Law of RU No.231 dt. 15.12.2009). 5) Regulation of CM of RUz “On approval of normative acts in accordance with the law of RUz “On subsoils” No. 19 dt. January 13, 1997. (last revision was made by Regulation of CM of RUz No.147 от 19.07.2007). 6) Annex No. 1 to the Regulation of CM “Regulations on the order of submission of allotments in the purposes, not connected with the mining of minerals” No. 19 dt. January 13, 1997. (last revision was made by Regulation of CM of RUz No.147 dt. 19.07.2007). 7) Annex No. 2 to Regulation of CM of RUz “Regulations on state control and supervision for usage and protection of subsoils, geological survey of subsoils and rational usage of mineral resources” No. 19 dt. January 13, 1997 (last revision was made by Regulation of CM of RUz No. 147 dt. 19.07.2007). 8) Annex No. 2 to Regulation of CM of RUz “Regulations on order of issuance of permissions for development of areas of minerals’ deposit” No. 20 dt. January 13, 1997. (last revision was made by Regulation of CM of RUz No. 323 dt. 10.07.2004). 9) Annex No. 3 to Regulation of CM of RUz “Regulations on order of charging off mineral resources from users, which were extracted and lost in the process of production” No. 20 dt. January 13, 1997. (last revision was made by Regulation of CM of RUz No. 323 от 10.07.2004). 10) Regulation of CM of RUz “On approval of Regulations on order of development and maintaining water cadastre of RUz” No. 11 dt. January 7, 1998 (last revision was made by Regulation of CM of RUz No. 183 dt. 14.04.2004). 11) Regulation of CM of RUz “On approval of Regulations on order of maintaining state cadastre for specially protected nature territories of RUz” No. 104 dt. March 10, 1998. (last revision was made by Regulation of CM of RUz No.95 dt. 01.04.2005). 12) Regulation of CM of RUz “On national strategy and plan of actions for keeping biological diversity” No. 139 dt. April 1, 1998 (last revision was made by Regulation of CM of RUz No. 359 dt. 19.09.2000). 13) Regulation of CM of RUz “On approval of Land Code of RUz” No. 599-I dt. April 30, 1998. 14) Regulation of CM of RUz “On program of actions for environment protection in RUz for 1999-2005 years” No. 469 dt. October 20, 1999 (last revision was made by Regulation of CM of RUz No. 183 dt. 14.04.2004). 15) Regulation of CM of RUz “On approval of some normative acts for woods protection of RUz” No. 506 dt. November 22, 1999. (last revision was made by Regulation of CM of RUz No.95 dt.01.04.2005). 16) Annex No. 1 to Regulation of CM of RUz “National strategy for reducing emission of greenhouse gases (main provisions)”; 17) Annex No. 2 to Regulation of CM of RUz “Measures for realization of National strategy for reducing emission of greenhouse gases”. 18) Regulation of CM of RUz “On approval of Regulations on order of maintaining state cadastre for objects of flora of RUz and Regulations on order of maintaining state
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cadastre of fauna of RUz” No. 343 dt. September 5, 2000. (last revision was made by Regulation of CM of RUz No.95 dt. 01.04.2005). 19) Regulation of CM of RUz “On approval of Regulations on order of definition of woods protection category” No. 215 dt. June 5, 2000 (last revision was made by Regulation of CM of RUz No.95 dt. 01.04.2005). 20) Regulation on state EIA in RUz, approved by Regulation of CM of RUz No.491 dtd. 31.12.01. (last revision was made by Regulation of CM of RUz No.152 dtd. 05.06.2009). 21) Regulation on order of application of compensation payments for pollution of environment and disposal of wastes on the territory of RUz, approved by Regulation of CM of RUz No.199 dt. 01.05.03. (last revision was made by Regulation of CM of RUz No.15 dt. 06.02.2006). 22) Regulation on measures for subsurface water usage regulation, amplification of their protection from pollution and exhaustion, approved by Regulation of CM of RUz No.179 dt. 08.04.1992. 23) Regulation on water protective zones of storage ponds and other pools, rivers and main canals and collectors and also drinking water and domestic water supply sources, sanatory and cultural and health improving sources in RUz, approved by Regulation of CM of RUz No.174 dt. 07.04.1992. (last revision was made by Regulation of CM of RUz No.411 dt. 24.09.2003). 24) Regulation on state environmental monitoring in RUz, approved by Regulation of CM of RUz No.111 dt. 03.04.2002. 25) Decree on measures for improvement of procedure for issuance of licenses for the right to use subsoils parts, approved by Resolution of the President of RUz No. ПП- 649 dt. 07.06.2007. 26) Instructions for carrying out inventory of pollution sources and normalization of pollutant emissions into the atmosphere for the ventures of RUz, approved by the Order of Chairman of State Nature Committee of RUz No. 105 dt. 15.12.2005. Registered in the Ministry of Justice of RUz No. 1533 dt. 15.12.05. 27) Order on approval of permit document samples for special usage of flora and Instructions on procedure for execution and registration of permits for felling of trees and shrub woods beyond state forestry fund and also for mowing (hay cutting) and ranging on reserve lands beyond state forestry fund, approved by the Order of Chairman of State Nature Committee of RUz No.01- 705 dtd 15.05.2007. Registered in the Ministry of Justice of RUz No. 1686 dt. 04.06.2005. 28) Order on approval of Rules for provision of public services by transportation of hard and liquid consumption wastes, approved by the Order of the Ministry of Public Services of RUz No.647 dt. 20.02.1999. Registered in the Ministry of Justice of RUz No. 647 dt. 20.02.1999. 29) Decree No. ПП-525 dt. 06.12.2006 of the President of RUz “On measures for realization of investment projects under Clean Development Mechanism of Kyoto Protocol”. 30) Regulation No. 9 dt. 10.01.2007 of CM of RUz “On approval of Regulation on the order of preparation and realization of investment projects under Clean Development Mechanism of Kyoto Protocol”. 48. Besides internal legislative acts, RUz has joined to the following international conventions of EP.
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1) Framework Convention of United Nations Organization “On climate change” dt. 1992. RUz adhered to the present convention in 1993. 2) Montreal protocol “On substances destroying ozone layer” (Montreal) dt. September 16, 1987. RUz adhered to the present convention in 1993. 3) Vienna Convention “On ozone layer protection”. RUz adhered to present convention in 1993. 4) Convention “On prohibition of military or any other hostile use of environmental modification techniques”, Geneva, December 10, 1976. For RUz it came into force from 26.05.1993. 5) UN Convention “On desertification in the countries suffering a serious drought and/or desertification, especially in Africa” (Paris) dt. June 17, 1994. RUz adhered to the present convention in 1995. 6) UN Convention “On biological diversity” dt. 1992. RUz adhered to the present convention in 1995. 7) Paris Convention, 16-23.11.1972 “On protection of world cultural and nature heritage”. RUz adhered to the present convention in 22.12.1995. 8) Basel Convention “On control for transboundary movement of hazardous wastes and their disposal” (Basel) dt. March 22, 1989. RUz adhered to the present convention in 1996. 9) Convention “On international trade in the endangered species of wild fauna and flora” (Washington) dt. March 3, 1973 and Resolution on protection of spawning fish to above Convention (Harare) dt. June 9-20, 1997. Decree of Oliy Majlis of RUz dt. 25.04.97 N 433-I. It came into force for RUz from 08.10.1997. 10) Moscow Agreement, 12.04.96. “On control for transboundary movement of hazardous and other wastes. It came into force for RUz from 21.11.97. 11) Amendments to Montreal Protocol (London) dt. June 29, 1990, Amendments to Montreal Protocol (Copenhagen) dt. November 25, 1992. RUz adhered to the present convention in 1998. 12) Convention “On conservation of migratory species of wild animals”, signed in Bonn in June 23, 1998. RUz adhered to the present convention in 1998. 13) Kyoto Protocol to Framework Convention “On climate change”, signed in December 11, 1997 in Kyoto. RUz adhered to the present Protocol in 1999. 14) UNESCO Convention “On wetlands of international importance, mostly as ecotope of swimming birds”, made in Ramsar city in February 2, 1971. Protocol about amendments to Ramsar Convention dt. May 28, 1987. Protocol on amendments to Ramsar Convention dt. December 3, 1982. RUz adhered to the present Convention and its protocols in 08.02.2002. 15) Hague Agreement, 16.06.95. “On protection of Afro-Eurasian migrating wetland birds”. Decree of OM of RUz dt. 12.12.2003 No.577-II. It came into force in RUz from 01.04.2004. 16) International Paris Convention, December 2, 1961. “On protection of new kinds of plants. Decree of OM of RUz dt. 27.08.2004. No. 680-II 49. All above mentioned international conventions, which RUz has joined, have indirect impact on Operator activities regarding the KGF Project as all of them were implemented into internal legislation. 50. Legislation of RUz provides priority of international agreements regarding national legislation of RUz. For example, Article 53 of Law of RUz “On nature protection” requires
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that “in cases, when international agreement, concluded by RUz, states rules other than containing in the present Law or other legislative act of RUz on nature protection, the rules of international agreement are applied, excluding cases when legislation of RUz established more strict requirements”. 51. A more complete list of normative-legislative acts, applied to the activity of Operator in the sphere of EP, is given in “Classifier of documents, containing normative-legislative and normative requirements, applicable to the activity of “LUKOIL Uzbekistan Operating Company” LLC in the sphere of industrial safety, labor and environment protection”.
2.2 Institutional framework 52. The Constitution and legislative norms and rules of RUz determine the organs of legislative, state and executive authorities and also ventures and organizations, which are responsible for EP and sustainable nature management. 53. Different organs of state (ministries and authorities) and economic management (associations and companies), local government bodies (khokimiats), separate big ventures, scientific establishments, non-governmental non-commercial organizations all have obligations under the Framework Convention on Climate Change (FCCC), Convention on Biological Diversity (CBD) and Convention to Combat Desertification (CCD). SCNP of RUz is responsible for execution of regulations of CBD. National organ, coordinating activity on execution of obligations of SCNP and CBD is the center of Hydro-Meteorological Service Department at CM of RUz (Uzhydromet). Development and coordination of execution of strategies and activity plans in accordance with the obligations of conventions is also the part of functional obligations of theses authorities. 54. The supreme State body implementing legislative power in RUz, is Oliy Majlis (Parliament). It defines state policy, takes legislative ecological acts, coordinates and manages the activity of ministries and agencies regarding EP issues. Cabinet of Ministers is the Executive body and implements state nature protection policy, coordinates development and realization of state programs of socio-economic development, controls their execution and is responsible for registration and evaluation of nature resources. Obligations of regions regarding EP are put to the Soviets of National Deputies, headed by the Leader of administration (khokims). Regional and local organs establishes main directions of EP on its territory, register and evaluate the condition of nature resources, ecologically harmful facilities and is responsible for control, nature protection and usage of nature resources. The Supreme Executive body in the sphere of nature protection in RUz is SCNP, subordinated and accountable to Oliy Majlis. 55. Execution of nature protective measures, control function and responsibility regarding some nature protective spheres rests on a number of ministries and agencies. Responsibilities of these bodies include provision of stable system of state service, activity for development and realization of specialized programs, strategies and plans of actions by NP and sustainable nature management. Establishments of regional levels are actually lower executive bodies of SCNP and other responsible ministries on regional and district levels. Organizations on regional level have the same structure as on republican level. 56. Gathering of citizens (makhalla) is the independent organ of self-government, which carries out general initiatives and measures, including those connected with ecology, directly in villages, regions, districts and cities. The main principles of makhalla are democracy, publicity, social justice, humanism and mutual aid. Makhalla is responsible for taking decisions regarding problems of local importance, including issues of improving and development of infrastructure, arrangement of khashars (voluntary unpaid work on Sunday) and provision of social aid to low-income families, etc.
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2.3 PSA Environment Protection Requirements 57. Production Sharing Agreement (PSA) for the Kandym field group, Khauzak and Shady blocks, and Kungrad block between the Republic of Uzbekistan and consortium of investors consisting of the Oil Company OAO LUKOIL and The National Holding Company Uzbekneftegas, dated June 16, 2004. On the same date, June 16, 2004, the Oil Company “LUKOIL” transferred its rights and duties under the PSA to the company “LUKOIL Overseas Uzbekistan Ltd.”. Transfer of rights and duties was approved by the Decree of Cabinet of Ministers of RUz № 428 dated September 14, 2004. On November 24, 2004 the PSA entered into force (became effective). 58. According with PSA term «Investor» shall mean “LUKOIL Overseas Uzbekistan Ltd.” and NHC «Uzbekneftegaz». 59. According with PSA term «Operator» shall mean the company which performs Oil and Gas Operations provided by the PSA on Contract Area (Kandym field group, Khauzak and Shady blocks, and Kungrad block), established and registered within the territory of the RUz in accordance with the legislation of RUz - “LUKOIL Uzbekistan Operating Company”, LLC. 60. According with PSA term «Authorized Body» shall mean Ministry of Economy of the RUz as an authorized governmental body for execution of PSA on behalf of the RUz. 61. On the basis of Article 23.3 of the Production Sharing Agreement (PSA) for the Kandym and Khauzak-Shady sites, the Investor must adhere to the acting legislation, regulating standards (norms, rules) for safe operation, environment and health protection. In Annex 6 of PSA the strategy of Environment Protection (EP) is described, which should be followed both by Investor and Operator. 62. Subcommittee for environment protection (Subcommittee) (see Picture 1) develops policy in the sphere of EP, including the following: development of control system for EP as the component part of oil-and-gas operations and establishment of Subcommittee by Managing Committee (MC); the order of establishment and organizational structure of Subcommittee is provided in proposal of Investor which is submitted to MC for approval. Subcommittee includes representatives of Investor and Authorized Body, which under the decision of Authorized body; Subcommittee develops HSE Program (Program), which accepted by Authorized Body after agreement with SCNP of RUz; Development of above-mentioned Program by Subcommittee is carried out only after independent evaluation of initial ecological condition in the Contract Area (Kandym field group, Khauzak and Shady blocks, and Kungrad block); Stage by stage implementation of the Program is carried out in the order corresponding to common stages of oil-and-gas operations (examination of initial condition, exploration, exploratory boring, field development, production, well abandonment, infrastructure of deposits, where oil production is completed) in accordance with approved work programs and budget. 63. Functions of Subcommittee: Ecological Monitoring: development and correction of program for continuous production ecological monitoring; coordination of monitoring program; examination of results and giving proposals for improvement of monitoring program;
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publication of annual report. Selection of scientific-research programs: administration of scientific-research programs for EP; assigning means provided for this purpose in related annual work programs and budgets; control of work process; publication of results. Management of environment protection: selection and evaluation of effectiveness for applied nature protective measures; participation in development of programs for prevention and reduction of impact intensity of production emissions and wastes on environment. 64. Nature protection control and safety. Operator performs oil-and-gas operations with proper honesty, effectiveness and safety in accordance with the Legislation of RUz for safety procedures and also in accordance with the international EP standards in oil-and-gas industry (considering, that these standards and experience do not contradict the legislation) on safety and EP. Operator has ISO 14001 and OHSAS 18001 certification. 65. Operator takes all reasonable measures in accordance with these laws and standards in order to minimize any potential violations of general balance of environment, including, but not limited to, land surface, subsoils, air, lakes, rivers, flora and fauna, crops and other natural resources. Sequence of actions is determined in the following order: life protection, EP and property protection. 66. Operator develops integrated management system, covering all aspects of health, safety and EP regarding works implemented in connection with oil-and-gas operations, on condition that: Operator develops Program for Contract Area (Kandym field group, Khauzak and Shady blocks, and Kungrad block) on the basis of examination of initial ecological condition. Data on ecological condition of Contract Area is provided to Operator by Authorized Body. Expenses incurred in connection with preparation and implementation of the program are to be expenses for oil-and-gas operations. Registration of stated expenses is implemented by Operator separately for Contract Development Area (means Kandym field group, Khauzak and Shady Block) and Contract Exploration Area (means Kungrad Block). Operator is to use actual (in force within the RUz), as well as develop and agree with the SCNP of RUz, standards and methods for safety and environmental protection suitable for control of Oil and Gas Operations and instructions and analytical methods on emissions, discharges and wastes. Standards on safety and environmental protection are to take into consideration specific ecological characteristics of the Contract Area and based on Legislation on safety and environmental protection, and, if applicable, on standards and experience of international oil and gas industry with their usage in operations for exploration and production in other parts of the world. 67. In compiling such standards and methods, there should be taken into account such notions as environmental protection goals, technical marketability, economical and commercial efficiency. When new safety and environmental protection standards developed and agreed between the SCNP of RUz and the Operator come into force under the PSA, the
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methods and standards previously developed shall no longer be applied, and thereafter such new methods and standards shall instead be applied to Oil and Gas Operations under PSA. 68. Emergency situations, environmental disruption. In case of emergency situations or accidents including, but not limited to, explosions, emissions, discharges and other incidences causing or able to cause environmental damage, the Operator shall promptly inform the Authorized Body and appropriate Public Authorities, including SCNP of RUz, about these circumstances with the indication of approximate quantity of emissions and inform on prompt measures taken by it to rectify the situation, and on the results of such measures. 69. The Operator shall apply all required efforts to undertake prompt measures, control the emergency situation and do its utmost to prevent deaths, damages to natural recourses and overall environment, and property loss and damage. The Operator shall also report to SCNP of RUz and appropriate Public Authorities of the RUz about the measures taken. Monitoring: The initial ecological information on background pollution level of the Contract Area shall be submitted by the Authorized Body to the Operator. Appropriate industrial control will be provided by the Operator or its contractors under the Oil and Gas Operations.
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development of impact on environment impact FUNCTIONS Inclusion to the subcommittee the to the subcommittee Inclusion publication of annual report. of annual publication process, publication of results. of results. process, publication Ecological monitoring: Environment protection management: Selection of scientific-research programs: Selection nature protective development of measures, program of continuous production ecological ecological production of continuous program administration of EP programs, administrationcontrol of work EP programs, of monitoring, coordinationmonitoring, of monitoring program, representatives of Investor and Authorized Body of Investor representatives and Authorized selection and evaluation of effectiveness of applied applied of and evaluationselection of effectiveness programs for prevention for of of intensity and reduction prevention programs SUBCOMMITTEE FOR ENVIRONMENT PROTECTION and functions of subcommittee for environment protection y POLICY Picture 1 . Polic Picture RUz. infrastructure and-gas operations. operations. and-gas Development of control for system Stage-by-stage execution of Program for of execution Stage-by-stage Development of Program for health, safety Carrying out independent evaluation evaluation Carrying outof initial independent production, well abandonment and deposits’ abandonment and deposits’ well production, oil-and-gas operations: study of initial condition, condition, of initial study operations: oil-and-gas ecological Area. of condition in theecological Contract limits and environment protection. Approval by SCNP of Approval protection. and environment exploration, exploratory boring, field development,field boring, exploratory exploration, environment protection as the component as oil- environment part of protection health, safety and EP, corresponding to the stages of to the stages corresponding and EP, health, safety
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3. Project Description
70. The RUz assigns high priority to development of industrial potential, primarily the fuel and energy sector, as the basis for economic growth of the country and strengthening of its energy independence. In this connection, the oil and gas industry plays the priority role as one of the major sectors of industry of the country. 71. Significant reserves of hydrocarbons have been found in the RUz, and their development is concerned with certain difficulties (remoteness, lack of capital, increased content of hydrogen sulfide) that necessitate a closer cooperation with foreign investors for bringing in advanced technologies and additional funds. 72. In the recent years the country has accumulated the experience in construction of environmentally sound facilities of oil and gas industry with participation of foreign capital and technology. Friendlier investment climate has been created for attraction of foreign investments. 73. The purpose of this Project is the development of the KGF and the associated gas processing plant. The capacity of the field and the gas processing plant is estimated up to 8 billion m3/year of natural gas, more than 200 thousand tonne/year of gas condensate and about 190 thousand tonne/year of sulfur. 74. “LUKOIL Uzbekistan Operating Company” (as Operator by the PSA ) is planning to develop production wells, cluster sites, gathering points, in-field pipelines, gas processing plant, and to build trunk gas pipeline and infrastructure facilities. Drilling of production wells and the KGF is planned for 126 wells, including 28 ones at the satellite fields. 75. Initial drilling activities at KGF have already begun. Construction works of facilities at KGPP is scheduled to begin in 2013 and complete in 2016. Thus, the commissioning of field facilities of Kandym group of fields will continue over the next 18 years from the date of commencement of complex construction. According to the PSA the whole complex (facilities of Kandym group of fields) will be operated until 2039 by the Operator. 76. The aim and necessity for development of the KGF are governed by the need for general economic development of the RUz’s economy in which the development of natural resources play a key role. The development of KGF will also provide socio-economic benefits and raise the living standards of the complex’s personnel, many of whom will be residents from the nearby communities. 77. The target activity will maximize the use of natural resources by increasing the recovery of hydrocarbons and associated products by attracting critical technical knowledge and foreign capital. The target activity separates methane from valuable components found in the natural gas: propane-butane fractions, gas condensate and sulfur. Methane and its valuable components are then utilized for productive economic use. KGF also helps in deepening international cooperation and trade as most of the product is exported to neighboring Central Asian and other countries. 78. The fields of the KGF are in the Karakul District of Bukhara Province of the RUz. The border with Turkmenistan is to the south and south-west of the area (see Picture 2). 79. The nearest populated settlements are the towns of Karakul and Alat Districts located 25 – 30 km from the south-east boundary of the KGF. Rural settlements (villages), called kishlaks are inhabited by about 50 to 1200 people. The houses in these villages are made of clay, with flat roofs. Streets are mainly narrow and curved. The majority of kishlaks are electrified and landscaped. The sources of water supply are rivers, ditches and wells. Water in rivers and ditches is fresh, in wells it is saline. Gasli town is located in 50 km to the north of the area.
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Picture 2. Kandym and Khauzak-Shady Region
Symbolic Notations
State frontier Gas pipeline
Khauzak-Shady field facilities
Kandym field
Kandym Field
Karakul
Alat
Charjow
Khauzak-Shady Field
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80. The vicinity map of KGPP is shown in Picture 3. This map also shows the corridors for main ancillary infrastructure including the rail road, access road, power transmission line, water supply pipeline, and communications corridor. 81. A conceptual layout of the KGF complex development is given on Picture 4. Schematic diagram of gas gathering of the KGF is given on Picture 5. 82. Detailed maps showing the existing and projected well development are found in Attachment 2. Based on the specific conditions of the field (large quantity of wells, large size of the field, high hydrogen sulfide content), cluster system of well product gathering is designed. 83. The gas-gathering system of the Kandym block includes five gathering points/stations receiving products from 126 wells. Flow lines of 112 production wells are connected to 25 production manifolds located at the cluster sites. Flow lines from 14 wells are connected directly to inlet manifolds of the gathering stations. 84. Picture 6 shows basic flow chart of cluster site. Flare system will allow the burning of hydrocarbons and discharge of accumulated process gas during maintenance and emergency situations.
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Picture 3. Vicinity map of KGPP
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Picture 4. Conceptual Layout of Complex Development
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Picture 5. Development Scheme of KGF (keys to Picture 5)
Design sitting of bottom holes of producing wells as per recommended 2000 m grid option
Месторождение Парсанкуль – Parsankul Field Месторождение Аккум – Akkum Field Месторождение Западный Ходжи (район скв.14) – West Khoji Field (Well 14 area) Граница лицензионного участка – License site border Месторождение Западный Ходжи (район скв.12) – West Khoji Field(Well 12 area) Месторождение Западный Ходжи – West Khoji Field Граница лицензионного участка – License site border Месторождение Ходжи –Khoji Field Месторождение Кандым – Kandym Field ГПЗ - Gas processing plant Дорога – Road Озеро Шуркан (сол) – Shurkan lake (saline) Месторождение Кувачи-алат- Kuvachi-alat Field
PETEC Supplement of process chart of development of the KGF (Kandym, Kuvachi-Alat, Akkum, Parsankul, Khoji, West-Khoji) Attachment No 36 Flowchart of gathering system at the KGF as per recommended development option (Option 3) Scale 1 : 100 000 Made up by S.A.Bezrodnova
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Picture 5. Development Scheme of the KGF
GPP
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Picture 5. Development Scheme of KGF (symbol legend to Picture 5)
Symbol legend:
state border license site border gas-water contact water bodies roads
residential area border operational project wells
exploratory wells drilled wells being re-entered
backup well
gas collecting network in a cluster
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85. For high-sulfur deposits, the top priority is the high reliability of the system of collection, treatment and transportation of gas. The produced formation fluid is hydrogen sulfide containing hydrogen sulfide on horizons varying between 1.43 and 2.51 % mol. Majority of strata are characterized with high gas influx without bearing out of formation water. Inflow of formation water is anticipated in the process of operation. 86. Formation water is highly mineralized, the overall mineralization varies between 100 and 305 gr/lt. Maximum water cut (content) of the deposit is forecasted on the level of 25 gr/m3 upon reduction of formation pressure to 13.5 – 13.0 MPa. 87. The condensate of KGF is light (by breakup), gasoline, sulfurous (contain sulfur) and belongs to methane-aromatic type. 88. During initial years of production, wellhead pressure will be quite high and will be controlled at the inlet to GPP by regulating valves. In further years of production, wellhead pressure will decline and will require gas compression at gathering station to maintain design pressure at inlet to GPP. 89. Picture 7 presents configuration of the booster compressor station (BCS). In the initial period, single- stage gas compression will be necessary (stage 1). Further, before the end of the operation period, double-stage gas compression will be necessary at the gathering station (stage 2) for the purpose of maintaining constant pressure at outlet of gathering station in case of reduction of pressure at inlet therein. Flare system is proposed for combustion of gaseous hydrocarbons in emergency situations as well as in the process of relief of equipment and pipelines. 90. Flow lines from well clusters entering into the gathering station inlet lines will be fitted with safety valves for protection against overpressure (safety valves of type SPPK via three-way valves will be piped to flare). Through valves, each flow line will be piped to flare for blow-off in case of accumulation of liquid. In addition, shutoff valves, adjustable choke, check valve will be installed on the flow line. Metering separators will be fitted with safety valves with draining to flare and piping flare line for emptying of units before repair. Drainage from metering separators comes to underground drainage tank. From gas-gathering collector via angle regulating valve, fuel gas is taken off for flare. United flow of gas after gathering station through gas-field gathering main is transferred to the production site of GPP. 91. GPP is purposed for preparation and treatment of crude gas of the KGF and receiving of saleable product: saleable natural gas, stable condensate, liquefied gas and gas sulfur. Schematic diagram of GPP is given on Picture 8. 92. The GPP production project includes the common receiving module, common facilities for condensate stabilization, three process lines for acid gas removal, three process lines for gas drying, three process lines of low-temperature separation and three sulfur production lines. 93. The receiving module is designed for receiving and processing of flow of well products. Condensate and formation water will be separated from the common flow of humid gas. Separated sulfur-containing gas will be directed to acid gas removal units. 94. The condensate stabilization unit provides stabilization of formation condensate, condensate from low-temperature separation unit and other condensed hydrocarbons from various units at GPP. Cooled saleable condensate will be contained in condensate storage tanks. Saleable condensate will pumped through transfer metering station to condensate shipment point. 95. The acid gas removal unit will allow removal of hydrogen sulfide (H2S), carbon oxysulfide (COS) and carbon dioxide (CO2) from crude gas through chemical absorption. Activated solvent of methyl diethanolamine will be used as solvent for acid gas removal. 96. Recovered acid gases are sent to elemental sulfur production unit. Purified gas from this unit will meet the technical specification for saleable gas for content of H2S. In the course of this process, some amount of coming mercaptans is removed as well.
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Picture 6. Basic Process Flow Chart of Cluster Site
Production Flare collector
Эксплуатационный Факел коллектор
Natural gas Flare separator from Факельный сепаратор wells Liquid pump Насос откачки жидкости Natural gas to gathering Природный газ на СП Природный газ со скважин
Metering separator Замерной сепаратор
Liquid pump Насос откачки жидкости Замерной коллектор Metering collector
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Picture 7. Configuration of Booster Compressor Station
Outlet collector Выходной Receiving коллектор collector
Приёмный коллектор Air cooler
Gas from manifold
АВО-1 АВО-2 С С 1 2 С3
Medium pressure fuel gas from fuel gas system Liquid to closed drainage system
Жидкость в закрытую Топливный газ сред.давл. От системы топл.газа дренажную систему
MediumТопливный pressure газ fuel сред gas.давл . fromОт fuel системы gas system топл .газа
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97. The basic process flow chart of gas dehydration and mercaptan removal is shown in Picture 9. This plant consists of two main sections: molecular sieve section where water and mercaptans are removed, and regeneration gas cleaning section. Desulfurized pre-cooled dry gas from gas molecular sieve filter comes to low-temperature separator. Saleable gas from low-temperature separator is sent to saleable gas compression system. Saleable gas compression is necessary for providing consistency with pressure at tie-in to pipeline. 98. Configuration of the sulfur plant is shown in Picture 10. One sulfur plant is designed for processing of acid gas generated from one third of all crude coming to GPP. In order to satisfy the technical conditions for sulfur removal to a level no lower than 99%, the design of Superklaus plant is recommended. 99. The sulfur plant is based on incomplete combustion of hydrogen sulfide (H2S), with three consequent stages of catalytic reactions in the Claus reactor and one stage of reaction in the Superclaus reactor. Degassed sulfur is pumped by sulfur pumps from storage department to liquid sulfur shipment facilities and granulation plant. In addition, liquid sulfur may be sent to sulfur storage facility by ROTOFORM method on Sandvic belts. Storage of granulated sulfur is provided at warehouse. 100. Safe removal of hydrocarbons and liquid flows received from process and auxiliary systems in the process of normal operation of the plant as well as upon deviations of process flow, breakdowns, startup and shutdown of plant, will be provided at the factory in Kandym by means of in-factory system of combustion in flare and liquid waste drainage system. The factory flare facility includes high pressure flare and low pressure acid gas flare. All flares are above ground. 101. Saleable gas dried and stripped at Kandym GPP will be transported via the gas pipeline to the main gas pipeline system of Transgaz. The route of saleable gas main pipeline will cross a number of motor roads, water discharge collector, Chimkent-Charjow oil pipeline (not operating), fiber-optic communication cable. For periodical cleaning of inner hollow of gas pipeline during operation and passing of inner flaw detector, provision will be made for pig receiver valve in modular-packaged construction. Laying of gas pipeline is planned underground at a depth at least 1.0 m to top of pipe or ballasting device. Passive protection of the gas pipeline against soil corrosion will be provided by anti- corrosion coating. Protection of pipes against underground corrosion will be provided by electrochemical protection system with continuous cathodic polarization of pipe surface. 102. The project power distribution system will receive and distribute power supply at least from two independent sources. The power generation system located within the KGPP facility is deemed as one of such independent sources. The power network existing in the region may be deemed as the second independent source. 103. The intra-factory power generation system consists of two or three generators, each designed for the installed load power with service factor and automatic change-over. 104. Provision will be made for the common water supply and drainage system of field and GPP development facilities, including: water supply sources, water supply mains and water treatment, storage and supply facilities; drainage networks and waste water collection, pumping and treatment facilities; treated waste water recycling facilities.
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Picture 8. Schematic Diagram of Gas Processing Plant
Process water supply Drinking water supply 1st raise pumping station 2nd raise pumping station Camp Drinking water accumulating tanks Water treatment plant
Main water discharge canal
Sewage treatment plant
Drinking water supply 1st raise pumping station
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Picture 9. Process Flow Chart of Gas Drying and Cleaning From fuel gas system
From acid gas От системы removal unit топливного га за
От установки очис тки от To coolant кислого газа system From anti-foaming Всистему хлад агента agent injection unit from coolant system To flare От блока закачки facility антивспенивателя Из системы To sulphur хладагента removal facility На факельное хозяйство to formation В установку water system сероочистки to formation To condensateВсистему water system separatorпластовой воды Всепаратор конденсата Всистему пластовой To sulfur to oilводы and water removal facility effluent drainage system To fuel gas To low- Вдренажнуюсистему Вустановку system temperature нефтеводяных стоков separator сероочистки
to oil and water anti-foaming effluent drainage agent injection system В дренажную систему Закачка нефтеводяных стоков ан тивсп енив ателя
nitrogen
Азот
To flare Fresh solvent facility nitrogen Свежий Нафакельное Азот растворитель хозяйство
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Picture 10. Sulfur Production Flowchart
From evaporating from high pressure To low pressure tank of selexol steam collector steam collector To low pressure To high pressure steam collector steam collector From AGR From selexol evaporating regenerator tank from low pressure steam collector To high pres. vapour. condensate collector From AGR regenerator From 1st/2nd sulphur To high pres. condensers vapour. condensate To high pres. To formation collector vapour. condensate water From line of collector system To formation water steam water system feeding to boiler From line of From 3rd/4th sulphur water feeding th to boiler To 4 heater condensers To blowoff To sulphur pit From heat- collector To sulphur pit From line recovery boiler To blowoff To high pres. of water collector vapour. condensate feeding to To thermooxidizer collector boiler To sulphur bunker
To high pressure from high pressure steam collector steam collector
to high pressure steam collector
From fuel gas system From line 2 to low pressure To Claus blower steam collector From line 3
To blowoff To high pres. vapour. From line of collector From fuel gas condensate collector water feeding steam system to boiler from low pres. vapour. condensate collector from Claus blower
From line From line of of water water feeding feeding to to boiler from high pres. vapour. boiler To sulphur loading condensate collector steam
To From line 2 from sulphur sulphur bunker From line 3 To To bunker formation sulphur water bunker system
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105. All waste water will be treated at the sewage treatment facilities. Domestic effluents after full biological treatment and disinfection will be reused. Treated industrial effluents and chemically contaminated effluents (formation water, effluents of boiler-house and blowoff water of circulation system, etc.) will be disposed by injection. 106. All the buildings will be equipped with supply and extract ventilation with mechanical and natural draft. 107. For transport, inter-site motor road to sites of SP-1, 2, 3, 4, 5, to water intake facilities and approach roads to GPP will be constructed. Provision will also be made for reconstruction of local motor roads. 108. The site will be connected to the nearest operating railway line located about 40 km away. Track gage and throughput capacity of railway branch will meet state railway standards. Railway branch approaching to the site will have tracks for loading of sulfur, condensate and dry cargo, as well as for unloading of automobile diesel fuel, aircraft fuel and dry cargo. 109. The existing personnel will be employed as main production personnel. Labor will be sourced from the nearby towns of Bukhara Province and workers will be housed in Karakul. Transport of workers (one daily team of two shifts) will be by motor cars provided by the Operator. 110. Provision will be made for residence, canteens, workshops and fuel storage for construction workers. These facilities may be deemed as temporary. Nevertheless, it is very important to start planning for these facilities at early stage of the Project. Inability to provide meals and residence for construction workers can adversely impact the construction completion time due to limitations of the quantity of workers which can be accommodated in the camp. 111. Currently, provision is made for design solutions for construction of camp of the facilities construction supervision service – Picture 11. The camp is designed for accommodation of 107 people with all social and sanitary facilities. Provision will be made for administrative building, hostels, canteen, first aid point, gym hall, laundry, material storage and distribution warehouses, car parking, water treatment station, drainage pump station, water supply facilities, communication container, biological treatment station, evaporation ponds and sludge drying beds, solid waste collection ground. Provision will be made for heating and air conditioning of residential and working rooms. Storage-type electric water heaters will be used for domestic hot water supply. Communication system will include fiber-optic cables, emergency and operational public address system, satellite and terrestrial television, corporate data transmission network. 112. For construction water, water supply will be sourced from 4 production water wells and 2 observation water wells. The space between wells will be from 50 to 100 m and depth will be 474.5 to 487 m. An 11 km long motor road as well as power transmission line will be laid to the well site.
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Picture 11. Arrangement Plan of Camp and Waterworks
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Picture 11. Arrangement Plan of Camp and Waterworks (list of buildings and structures)
1. Security checkpoint 1 2. Administration building (module type) 3. Engineering personnel hostel 84 persons 4. Engineering personnel hostel 18 persons 5. VIP house for 2 persons 5’. VIP house for 1 person 6. Canteen for 30 seats with VIP hall for 10 seats 7. First aid point 8. Gym hall 9. Laundry 10. Warehouses 11. Car parts warehouse 12. Ground 13. Warehouse manager 14. Car trestle 15. Shed for 10 cars 16. Parking for 10 cars 17. Security checkpoint 2 18. Transformer Substation 10/0.4 kV 19. Diesel generator 20. Diesel fuel tank 21. Toilet for 4 persons 22. Solid waste ground 23. Sewage pump station 24. Water treatment station 25a. Fire water tank 25b. Drinking water tank 25c. Fire pump station 26. Evaporating pond 27. Communication house 28. Communication mast 29. Biological treatment station 30. Sludge bed 31. Evaporating pond
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4. Description of environmental conditions
113. The baseline environmental and social conditions of the KGF have been determined during Environmental Audit by authorized designated laboratories, certified according with legislation of the RUz (laboratories of the State Committee on Environment, Ministry of Health, Academy of Sciences), as well as by using data of State Institutes of Bukhara Region. The Environmental Audit Scheme is set out in Picture 12. Observation network layout within the framework of Environmental Audit is in Attachment №3. 114. Environmental components and social aspects, including atmosphere air, surface, ground and underground waters, bottom sediments, soil and subsoil, flora and fauna, radiation environment, as well as socio-demographic aspects of the population in this area have been researched and sampled.
ENVIRONMENTAL AUDIT
DATA ACQUISITION DATA ACQUISITION REGISTRATION OF BY STUDYING SURVEY/ BY STUDYING EVENTS OF INTERVIEW DOCUMENTS INCOMPLIANCE WITH AUDIT CRITERIA
ADDITIONAL INFORMATION OBSERVATION THROUGH RESULTS OBSERVATIONS
GENERAL REPORT CONCLUSIONS AND RECOMMENDATIONS
APPROVAL BY STATE ENVIRONMENTAL EXECUTION COMMITTEE OF THE RUz CONTROL
Picture 12. Environmental audit scheme
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4.1 Topography and Geology 115. In terms of topography, the KGF area is a flat, low-hilled plain covered with thick aeolian formations, as illustrated in the satellite image below.
116. For physical and geographical regionalization of the RUz, the area in question is located in the Lower Zaravshan district. 117. The majority of the area is located in the Gazli physical and geographical region, This region covers the alluvial-deltal plain of the South-West Kyzyl Kum formed by the sediments of pra-Seravshan. This plain modified in places by eolation, has a slight slope from east and north east to west and south-west, towards the valley of Amudarya River. There are many recesses of soil blowing, massifs of aeolian sands, outliers of alluvium and low residual/island mountains formed by pre-Quaternary deposits. 118. Sediments of pra-Zeravshan forming the alluvial-depositional plain of ancient delta of Zeravshan are separated as lower-Quaternary. The watercourse of Taylir within the Karakul oasis is used as irrigation canal. 119. The Bukhara-Karakul physio-geographical region takes the central position in the Lower Zaravshan physico-geographical district. The majority of the area of the region is the surface of Bukhara and Karakul deltas constituted by 2nd terrace above flood-plain of
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Zeravshan. The flood plain and 1st terrace above flood-plain have very limited development. It is traces along the current watercourse of Zeravshan in form of separate sections. 120. Composition of the today’s valley of Zeravshan within the district includes the flood plain, 1st and 2nd terraces above flood-plain. Gradient from north-east towards south-west changes within the absolute elevations from 300 m at Navoi to 200-150 at Karakul. 121. Great areas in lower Zeravshan river are taken by aeolian plains. Here, alluvial sediments have been subjected to soil blowing and almost no signs of ancient water are noticeable. Within the area in question, aeolian plains include sands of Kemirekkum of north-west boundary of the Bukhara oasis. Picture 13. Typical view of the Area 122. Relief of the area is flat-plain with small area of hills in south-west part. The majority of the area is taken by sand of various forms (Picture 13) (smooth, barkhan, hilly sands, etc.). Barkhan sands (Kemirekkum) take significant portion of the area. 123. Height of barkhans is up to 8 m, south slopes are steep (up to 45°), northern slopes are less sloping (20°). The northern part of the area is taken by hillocky and ridgy sands fixed by grass planting, saksaul and bushed. Relative height of ridges and hillocks is up to 8 m, distance between them is 10 to 20 m. Thickness of sand cover reaches 6 m. The areas of semidesert prairie have flat surface covered semi-bush vegetation to the north, and woody planting to the south-east. Small areas of alkali soils exist in the area. In dry season, shell is formed on their surface, which freely takes the weight of human, and in rainy season they soak and become difficult to pass. Movement of motor vehicles outside roads on sands is complicated, in wet weather passability improves to 10 – 15 km/h (because sands become more solid and less movable). In habitable area, movement of motor vehicles is complicated by strongly developed irrigation network. 124. Kemirekkum sands are separated as sandhill ranges. Barkhan sands of the boundary of the Bukhara oasis are divided into two morphologic variations of sands – single sandhills and sandhill ranges. Small ridgy-hillocky sands are prevailing everywhere. These are separate ridges extended to 100 – 200, and somewhere to 300 m, their width is 15.5 to 20 m, height 0.5 to 3 m, spacing between ridges is 10 to 40 m, direction of ridges is close to meridional. Sand hillocks with height of 0.5 to 5 m are located in inter-ridge recesses. Separate sandhills mainly exist on alkali soils and takyrs (claypan). 125. Actual elevations of the area vary from +182 m to +197 m above sea level.
4.2 Desertification 126. According a report of the Main Administration on Hydrometeorology1 deserts and semi-deserts occupy eighty percent of the territory of the Republic of Uzbekistan. Control of desertification and adaptation to droughts are vital to ensuring sustainable development. The RUz was an active participant in the design and implementation of the UN Convention to Combat Desertification and Drought. The RUz has ratified the Convention. 127. Intensive agricultural land usage leads to the degradation of irrigated lands. Secondary salinization affects more than 50 percent of irrigated area. Cattle pasture and
1 Main Administration on Hydrometeorology (Glavgidromet) at the Cabinet of Ministers of the Republic of Uzbekistan; “National Report of the Republic of Uzbekistan on the Implementation to Combat Desertification (CCD)”; Tashkent April 2002
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related erosion processes together with other anthropogenic impacts have resulted in severe rangeland degradation (losses in forage capacity). Drifting sands occupy about one million hectares, of which 200,000 have emerged in recent times along the boundaries of irrigated lands, resulting in an intensification of the desertification processes. 128. Beginning from the past quarter of the 20-century the degradation of one of the world’s major land-locked water bodies, the Aral Sea, has taken place, the level of which has dropped by 17 meters and its water surface area shrunk by more than half. A new sand-salt desert with an area of more than 30,000 square kilometers has emerged on the dried-out Aral Sea bed. Changes of climate, landscape, fauna and flora as well as intensification of salt and dust transfer in the Aral Sea littoral and adjacent territory intensify the desertification processes. The deterioration of environmental situation is having a both direct and indirect negative impact on the quantity of life and the health of 35 million people living in the Aral Sea basin. 129. The area of the KGF is not currently being used for agriculture or pasture. The principal desertification effects in the area consist of the prevalence of shifting or drifting sands where vegetation is insufficient to hold the sands in place. There are no surface water features within the KGF reserve and no history of irrigation in the area. 130. There is no nature protected areas inside the KGF Contract Area. The nearest protected zone is Karakul reserve. Research on the control of shifting sands is underway in the nearby Karakul Reserve (see Picture 3). The Karakul reserve was established by State Committee for Nature Protection of the RUz in 1971 to study the fixation of mobile sand dunes to protect irrigation systems from sand encroachment. An additional purpose was to restore the fauna and flora of the southern Kyzylkum desert, especially the Goitered Gazelle and migratory waterfowl.2
4.3 Climate 131. The climate of the area is continental. Average frequency of air calm (without any wind) for the Bukhara region is not high (occurs 8-9% of the time) which means that windy weather creates a good condition for dissipation of emissions from low fugitive emission sources. This factor indicates a good ability of atmosphere for self-purification and dispersion of any emissions. 132. An important weather factor affecting the level of atmosphere pollution is wind pattern formed by effect of atmospheric pressure and circulation processes and defining the direction and range of transfer of noxious impurities. This means that characteristic feature of atmosphere pollution in this area is increased content of dust of natural origin due to strong wind. The maximum wind frequencies and intensities have north and east direction, reaching the speed of 30 to 35 m/s. 133. Adverse weather conditions defining the development of soil blowing processes include increased wind speed, low humidity of atmosphere and low precipitation. Precipitations are rare, mainly in autumn and winter in form of rain and snow, maximum value of them does not exceed 100 to 140 mm per annum. Nevertheless, the precipitation defines the conditions of dissipation of pollutants and performs purifying function and reduces the level of atmospheric air pollution. 134. The most predisposed season to pollution is winter and spring period – the period of formation of fogs, when the process of accumulation of pollutants in atmosphere, with all other conditions being equal, is most intense. However, frequency of fogs is low in Bukhara
2 Rangelands of the Arid and Semi-Arid Zones in Uzbekistan. By G. Gintzburger, K. N. Toderich, B. K. Mardonov and M. M. Mahmudov. Paris CIRAD and Aleppo, Syria: ICARDA (2003)
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Province and is at 0.8%. Foggy days fall in cold season of year – November-February. Summer and autumn months are less prone to air pollution. 135. Analysis of climatic and physio-geographic features of the region allows to make conclusion that on the area in question, the quality of air can worsen for a short period when strong winds blow, but in the other longer periods of time, the condition of atmosphere stays quite favorable. 136. By combination of the majority of climatic characteristics having the highest effect on dissipation of impurities, the area of location of the fields in the Karakul district belongs to the zone with moderate climatic atmospheric pollution potential (APP). The APP in various time of day can vary from 2.3 to 3.3. Average value of APP is 2.8 (moderate). 137. APP is used to define the aptitude of the area for pollution due to meteorological conditions. APP is understood as a combination of meteorological factors determining air pollution level, - frequency of low winds (0-1 m/s), ground inversions, stagnant atmospheric conditions and fogs. The following APPs are recognized as per classification established in RUz: low (less than 2.4), moderate (2.4-2.7), advanced (2.7-3.0), high (3.0-3.3) and very high (more than 3.3). 138. Thus, in most seasons, weather factors assist active dissipation of noxious substances emissions. The winter months can be slightly different with frequency of thermal inversions, fogs and windless weather.
4.4 Air Quality 139. The condition of atmosphere air on the KGF has been determined based on results of researches conducted on 19 plants (see Attachment №3). In the course of researches conducted and laboratory tests the following results have been obtained: - Carbon oxide content along the KGF does not exceed maximum permissible concentration (hereinafter MPC, witch are settled by legislation of RUz), maximum value – MPC 0.52; MPC is used to show the comparison between the actual concentration of a particular substance and the standard (norm) established by the SCNP of the RUz for such substance, i.e. «MPC 2.0» means that concentration exceeds the established standard (norm) by two times. - High concentration of dust has been determined on the KGF: from MPC 1.1 up to MPC 4.32; high level of dust content in the atmosphere air is resulted from Kizilkum desert, in the territory of which the KGF is located, and is referred to natural sources of dust in the atmosphere air; - Methane content along entire territory of the KGF does not exceed safe reference levels of impact (SRLI), maximum permissible level – SRLI 0.04;
- hydrocarbons С2-С6 have not been determined in samples; - phenol has not been determined among aromatic hydrocarbon; concentration of benzole does not exceed MPC; high level of concentration of xylol has been determined – up to MPC 3.26 and toluol up to MPC 2.04, it means that high level of concentrations of xylol and toluol are of natural origin (was detected in the area without industry, before Operator starts his Oil-and-Gas Operations); - oxygen concentration in all tested samples is less compared to concentration of dry air; - carbon dioxide has not been determined in samples;
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- concentration of sulfur dioxide on the KGF does not exceed the specified MPC and only on two border zones (north-westwardly and south-eastwardly) is close to MPC level (maximum permissible level – MPC 0.93); - concentration of nitrogen dioxide exceeds the specified MPC on Akkum and Parsankul areas (partially), on the western area of the KGF, as well as areas, neighboring to north-eastern border of the KGF (from MPC 1.29 up to MPC 7.94); - elevated concentrations of nitrogen oxides can be observed on some plants – from MPC 1.12 up to MPC 2.35; - concentration of ammonia in the atmosphere air of the KGF tends to decrease so far as to move northwardly and on some small areas northwardly from the KGF is within MPC, average concentration of ammonia as regards to MPC in general on the KGF exceeds the permissible level 3.7 times, maximum level –up to MPC 10.1; - excess of MPC level of hydrogen disulfide concentration is determined on most of the plants, maximum level – MPC 6.2. 140. Thus, the KGF has its own peculiarities with regards to atmosphere air condition. High level of dust concentration, nitrogen oxides, hydrogen disulfide, ammonia, xylol, methyl benzene are of natural origin (there is no industry on this area) and were found on the KGF before Operator starts his Oil-and-Gas Operations. 141. It has been determined, that according to environment pollution level (combination of meteorological factors, determining the level of potential pollution of atmosphere from the sources on this area) KGF territory is located in the zone of medium potential. 142. These are existing air conditions approved by SCNP of RUz and recommended for use as specification of initial conditions of Environment on the KGF. The production activity shall be referenced to this air condition (if initial air conditions more then MPC).
4.5 Surface and Ground waters 143. The river network of the Bukhara region appertains to internal blind drainage area of the Aral Sea and developed extremely irregularly. There are no rivers in the central desert areas, including KGF. 144. The largest river is Amudarya, which is 20-25 km south-westward from south border of the KGF, in the territory of Turkmenistan. In the area of Karakul from bed of Amudarya River numerous channels exist, with the remainder of water draining to lake systems through small channels - Taykir (Sunchur-Kul, Karanga-Kul and other lakes). All these small channels dry out about 25 km before reaching the Amudarya. 145. The condition of surface and ground waters on the KGF has been determined based on results of researches conducted on 11 samples (during Environmental audit). All of 11 samples of water have been selected, including 2 samples of water from the surface of basins (channels), 2 samples of ground water and 7 samples of potable water (see Attachment №3). 146. In surface water the contamination on weighted agents (up to MPC 3.4), general salinity (up to MPC 5.2), Biological Oxygen Demand (up to MPC 10.2), and Chemical Oxygen Demand (up to MPC 7.7) have been determined. Excess salinity composition (sulfates, chlorides, calcium, magnesium, potassium, sodium), heavy metals (zinc, iron), xylol and phenols have also been revealed. Oxygen concentration of water is within specified rates for fishery farms of I category. In the samples of water contents of ions of ammonium, nitrates, benzene, oil products and Synthetic Surfactants do not exceed the level of MPC. Phosphates, methanol, toluene and chromium have not been detected.
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147. In underground waters of the KGF the content of xylol has been determined as excess of the specified level of MPC. General salinity of water, biological oxygen demand in 5 days and chemical demand in oxygen, copper, iron and zinc exceed the specified level of MPC as well. The concentration of the dissolved oxygen in the samples of underground waters is lower than the rate, specified for objects of I category, but higher than for objects of II category. The content of ion ammonia, nitrates, oil products, Synthetic Surfactants and benzole does not exceed the level of MPC. Phosphates, methanol, toluene and chromium have not been detected. The salinity of waters in blow-wells exceeds the level of MPC for potable use 7-10 times and varies from 5.1 to 10.3 g/l (this kind of water referred to as saltish water). The salinity of water is considerably lower in potable wells, even if they exceed the level of MPC 1.5 times as well. 148. In general, sanitary and bacteriological analysis of potable water has showed that potable water in wells does not comply with GOST 950:2000 “Requirements Potable water. Requirements to quality control”. 149. Some pollution by mercury and cadmium has been detected (both near MPC 2). High concentration of fluorides in water (MPC 1-1.5) has been determined almost in all wells. The content of arsenic, nickel, iron, cooper, zinc, benzene, oil products and nitrites doesn’t exceed the specified limits (MPC). Nitrates, barium, manganese, molybdenum, chrome and pesticides have not been detected. 150. These are water conditions approved by SCNP of RUz and recommended for use as specification of initial conditions of Environment on the KGF.
4.6 Soil and Subsoil 151. The KGF is represented by one type of soil – desert sandy soil, which has primitive structure. The layer of soil mantle does not exceed 10-20 cm. The structure and properties of such type of soil are determined by peculiarities of soil formation, progressing in the conditions of strong arid climate and under the affect of ephemeral plants. Friable structure of sands and exposure to their transmission specifies slight development of the soil profile. Constant renewals of the soil profile on top by sand understratum specify relative age of the soil. 152. Water permeability affects the formation of the sand soil, enabling complete absorption of rainfall and deep soaking of moisture. At temperature variation and intensive air change the thermal condensation of vaporous moisture from atmosphere occurs. 153. Study of soil and subsoil content on the KGF has been performed on 21 plants (during Environmental audit, see Attachment №3). Selection of samples has been performed from different levels (0.3, 1 and 6 m). Besides, for comparison of pollution grade of the environment as a result of gas wells drilling, performed before on the KGF, directly close to 21 non-operational oil wells (“historical wells”), the surface soil has been selected and submitted for laboratory tests. It was doing for identification the historical soil and subsoil pollution. 154. The results of the studies have showed that soil and subsoil on the KGF: - as per its mechanical composition (which refers to the type of light grain composition): sands, sand clay, light argil sand ground; in some cases layers of medium and heavy sand clay may be found; in fractional composition of soil fine particles prevail (0.1-0.05 mm); - subject to salinization: as per chemical composition they are essentially chloride- sulfate, very seldom sulfate-chloride; - very poor in containing of organic matters, nitrogen, phosphorus and potassium; - mainly, non-gypsum.
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155. The determined concentration of oil products and phenol does not exceed background level settled by SCNP of RUz for Bukhara Region – 0.5 mg/kg (for oil products) and 0.005 mg/kg (for phenol). 156. Background level is established based on the result of several years observations by SCNP of RUz in area without any activities. 157. The exceptions are samples of soil close to suspended oil wells (“historical wells”) No. 215, 320, 243, 160, 246, 251, 257 and 256, where multiple (up to 18 times) excess of background level of oil product concentration has been determined (see Attachment №2). 158. The concentration of organochlorine pesticides (hexachlorane, DDT [dichlorodiphenyltrichloroethane and its metabolites]) has been determined in a very low level. 159. The concentration of cadmium and manganese does not exceed maximum permissible concentration (according to accepted European standards). The excess of lead concentration (as per European standards) has been determined only at one plant. 160. The concentration in soil (subsoil) of copper and iron is on background level.
4.7 Radiation 161. Along the KGF the radiation background has been measured (during Environmental audit) at 20 plants, and the samples of soil have been selected for determination of the concentration of natural radioactive nuclides in it. 162. The average natural radiation background along the KGF is 20-30 micro-roentgen /hour that does not exceed permissible annual average dose for local people. The concentration of radioactive nuclides in the selected samples is considerably lower than permissible level. 163. Maximum activity of nuclides of uranium and thorium groups, as well as aggregate specific activity of natural radioactive nuclides is three times as lower as permissible level.
4.8 Flora and Fauna 164. Plant cover reflects the condition of natural complex. Due to the reason, that the climate is dry, lack of rainfall the natural flora of the KGF is represented mainly by mixture of different herbs and bushes on the sands. Main difference of such psammofit (sabulose plants with strong and long roots) association is presence of white saxaul. 165. Flora is represented mainly by ammophilous plants (sand-loving plants, desert inhabitants). Among hardy-shrub species cherkez, kandym and saxaul are prevailing. The average height of the bush is 1-1.5 m, age – 10-25 years. Spread of plants is not uniform. On barchan sands among herbaceous vegetation selin and yantak may be found. Total cover of sands by plants does not exceed 5-10%. 166. On sands tree vegetation is represented by separate trees of saxaul and sandhill wattle. Shrub, semi-shrub vegetation and herbs are spread everywhere. In the north part of the KGF boyalich, artemisia, yantak with height up to 30-40 cm may be found, and among herbs the most common is ilak. Flat and hillocky sands are covered by shrubs (chingil, thistle and other, with height up to 2 m) and herbs (ilak, selin). Plant cover on dunes is much rarer. 167. Main floral species in the area are: kandim, white artemisia, sand artemisia, gray artemisia, ephedra, ak-kuray, tamarisk, sarsazan, black artemisia, cherkez, boyalich, tetir, keurechnik, haloxylon desert, kiltik, kampir-chapan, kozi-kulak, jindjak, karral, alhagi or yantak, ferulla fragrant.
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168. Trees (lignosa) are found on channel bottomland (on the channel banks). In populated areas orchards and vineyards are found. 169. Plants, entered into Red Book of the RUz (list of the endangered, threatened and rare species, which are under government protection), were not encountered or reported during the environmental audit. . 170. The most common fauna are the following species of reptiles: Central Asian tortoise; comb-toed loricate and gray gecko; steppe agama; toad agama; lined, cancellate and multicolored lizards; desert monitor; long-legged skink; snake-eyed skink; glass-lizard; and lebetina viper. 171. Among mammals the following species are found: comb-toed and Turkmen jerboa, squirrel, mole lemming, field mouse, Libyan jird, tolai hare, Brandt's hedgehog, jackal, fox, dune cat. 172. There are very few birds in this area. However, in spring, during blossom and in autumn, when it rains, shoal of migrating birds is very often seen in this area. Afterwards birds fly off and only birds which can adapt to life in the desert remain. The most common birds for this area are: houbara, houbara bustard, both species of hazel hen, pintail and black-bellied, both species of bee-eaters, goldish and green, desert nightjar, desert finch, desert sparrow, desert warbler, desert lark, saxaul desert jay, carrion crow, magpie, hoopoe, great tit and others. 173. The following arachnoid and insects are very common in this area: parti-colored scorpion, camel spiders, harvestmen ordinary, karakurt, pentatomid bugs, white ant, mud- ball building ant, ant-xerxes, Polyphaga aegyptica, field-cricket, and others. 174. On the result of data acquisition, based on documents study, the following representative of fauna are entered into Red Book of the RUz (Latin name and common name where available): - Hemiechinus hypomelas B (hedgehog) - Tadarida teniotis R (free-tailed bat) - Gazella subgutturosa (goitred) - Phasianus colchicus zerafchanicus (pheasant) - Chlamydotis undulate (houbara bustard) - Pterocles alchata (sand grouse) - Circus macrourus (steppe harrier) - Aguila heliaca Savigni (imperial eagle) - Hieraaetus fasciatus (hawk-eyed eagle) - Falco cherrug (saker falcon) - Naja oxiana (Central Asian cobra) - Varanus griseus (grey monitor lizard) - Lythorhynchus rigewayi Boulenger - Kohlia pavlowski - Laphiragogus kohlii - Larra transcaspica F. (wasp) - Eremochares mirabilis (wasp) - Laothoe philerema (moth)
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- Streblote fainae (eggar - moth) - Glaucopsyche charibdis (butterfly) 175. Besides visual observation of the condition of flora and fauna on the KGF and route exploration ecotoxicological and pathologic studies of samples of flora and fauna have been performed (in special laboratory). 176. The samples of flora have been as follows (Latin name and common name where available): - Аstragalus vilosissimus (locoweed) - Salsola Richterii (glasswort) - Aristida pennata (three-awned grass) - Halothammus subaphyllus - Salsola sp. - Kochia prostrate - Artemizia diffuza (wormwood) - Acroptilon reptans - Lycium ruthenica (Jessamine) 177. The fauna has been studied on the samples of (Latin name and common name): - Spermophilopsis leptodactylus (leptodactylous ground squirrel) - Lepus tolai (tolai hare) - Meriones meridianus (gerbil) - Mus musculus Linnaeus (mouse) 178. Additional information is given in “Handbook of the existing rare and endemic species of plants and animals in Khauzak-Shady and Kandym Group of Fields (Bukhara region)”, Attachment № 4. 179. Ecotoxicological researches of accumulation of microelements and pesticides in tissues of plants of the KGF have been conducted for the purpose to identify the grade of affect on their physical, chemical and physiological condition, as they serve as food reserve for most living organisms. 180. All organochlorine pesticides identified in the tissues of plants belong to the dichlorodiphenyltrichloroethane group. Small concentration of all components of pesticides in plant tissues allows making conclusion, that pesticides do not considerably affect toxicological situation and affect to the living organisms is caused by chemical pollution of land ecosystem by other components, namely, by heavy metals and oil products. 181. The results of ecotoxicological researches of plants show, that initial physical and chemical conditions of the KGF, generally, are not favorable and make negative impact to physiological condition of flora and consequently to fauna as well. 182. The results of laboratory analysis of natural pre-project levels of accumulation of heavy metals and pesticides in tissues, fruits and roots of plants, collected from KGF, confirm the negative initial toxicological situation. High level of accumulation of microelements in macrophytes of land areas will cause intoxication of herbivorous animals (gnawing animals), which leads to histopathological changes in their liver and muscle tissues.
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183. Concentration of aromatic polycyclic hydrocarbon and heavy metals in tissues of animals depends on species of samples studies, biology of their food, age factors and type of tissues. 184. It is necessary to note that relative low values of the most toxic agent among all aromatic polycyclic hydrocarbon is benzopyrene (not more than 0.002 mkg/g of net weight) in all tissues of all species of animals and fishes. The identified levels of metabolites of aromatic polycyclic hydrocarbon in tissues of animals, make toxicological affect, that is confirmed by the results of histopathological studies of organs. 185. The greatest amount of accumulations of aromatic polycyclic hydrocarbon and heavy metals and, as a consequence, the greatest pathologic deviations have been identified in liver of animals and fishes in question, and the lowest amount has been discovered in germ glands. 186. Liver structural imperfection, necrobiosis of hepatocytes and flaking of muscle fibers (myopathy) in a greater degree may be observed in root-feeding animals as opposed to fruit- feeding animals.
4.9 Social situation analysis 187. One of the compositions of Environmental audit has been the study of objective and subjective issues in social sphere of the area, on which the KGF is located, namely demographic information of the local people and information on land use of the area and procedures covering transfer of lands for non-farming needs. 188. Demographic Information. Below official data (statistical) as of 2004 is set out, specifying the social aspects of the area. 189. Karakul District, where the KGF is located, occupies an area of 9.9 thousand sq. km. The density of population is 12.7 persons per 1 sq. km. The population is 125.3 thousand people. Roughly, a fifth of them live in Karakul, an administrative centre. 190. The local population is Uzbek. The language of communication and paperwork is state language, Uzbek language. The percentage of people, speaking Russian language is 44%, most of them dwell in Karakul. Ethnographic composition of population of this region is represented by the proportions as follows: Uzbek – 98.48%, Tatar – 0.56%, Russian – 0.33%, Turkmen – 0.196%, Ukrainian – 0.05%, Tajik – 0.05%, Kazakh – 0.067%, Azerbaijanian – 0.04%, Byelorussian – 0.01%, others – 0.2%. 191. The birth rate in this area per 1000 people is 21.4, death rate is 4.4 and the population increase is 17. Despite high level of birth level, over recent years there is a downtrend. 192. The average monthly salary is UZS 34.1 thousand in the region. Average monthly pension is UZS 12.7 thousand. Monthly income per head is UZS 18.9 thousand. 193. The number of officially registered job places in the region at population of 125.3 thousand persons is 22.4 thousand job places. Traditionally, the family is supported by men. The labor market is mostly oriented for men. At the same time, according to official data, the percentage of unemployment does not exceed 3% in the region, which does not match the real situation. Meanwhile the trend of unemployment increase may be observed in this region for the last four years. 194. Figures on unofficial unemployment are not available. However, it seems to be high, as there are families, in which, members able to work, without being registered with employment agency, go to Tashkent or other CIS countries looking for a job.
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195. Data on migration movements is not available either. As local people say, the main migration of Russian speaking people has already taken place. Currently, significant migration movements are not observed. 196. Level of health of the population is approximately same, as in the Republic. There are death cases caused by non-inflectional diseases, where diseases of cardiovascular nature are in priority. 197. The level of infant mortality is very high, although the trend to decrease is observed for the last years. The main reasons of infant mortality are non-infectious diseases. The most mortal cases come to perinatal period. The trend of increase of mortal cases caused by genetic damage may be observed. 198. The most common infectious decease in this region is hepatitis. No cases of AIDS have been registered. Infant mortality, according to official data in Karakul district is mostly absent. 199. Increase of number of infectious diseases on some clinical entities in most of the cases is caused by shortage of water of potable quality, lack of sewage system. 200. The sources of water supply are rivers, canals and wells. In the rivers, canals the water is fresh, but not always the water meets the requirements of quality, specified for potable waters; water in wells is saline. Table 1. Indexes in the area Facilities in the area Percentage of population with access Water supply, % 16.1 Gas supply, % 82.7 Telephone services, % 56 Availability of hospitals, first-aid posts, other medical centers: District hospital 1 clinics 2 rural outpatient clinic 27
201. This area can provide the KGF facilities with labour resources, but their professional skills and competence will not be very high. There might be some complications in communication. 202. In general, during the environmental audit, the social sphere has been defined as a region with high level of unemployment, increasing migration movements, low level of education, and medical service. In this case, one of the aspects to enhance the social conditions is to attract external investments, enabling to change the environment of these regions. 203. Land Use and Processes for Allocation of Lands for Non-Farming Needs. Lands comprising the Kandym gas fields are classified as agricultural and forest lands. Prior to the Project these lands were and at the present time are leased to Karakul forestry farm and Karakul co-operative farm. These lands are used respectively by forest farm for sand binding by sowing and planting wild grasses and shrubs and by collective farm for pasture. Land allotment and withdrawal for wells, shift camp, electric substations, and roads was performed in accordance with the laws and regulations of the government of the Republic of Uzbekistan. Company acquires the lands in turns of facilities construction. By decrees of khokim of Karakul region and khokim of Bukhara region 156.26 ha of lands was allocated to the Company. By these decrees compensation amounting to 202 530 784.00 soums was paid by the Company to the Karakul forestry farm and Karakul co-operative farm for lands and 84 212.00 soums to the special account of State committee of lands cadastre. Upon
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completion of construction, the Company will restore and transfer the lands to Karakul forestry farm and Karakul co-operative farm for sowing of wild grasses. 204. Additional information on land plots allocated to the Project and amount of compensation paid is provided in Table 2.
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Table 2.Kandym Land Registry
№ Ground for lands District Withdrawn from Total area Permanent Temporary Destination (for Cost of works Lost profits Amount of compensation to the allotment farmstead lands of use use which facilities (services) on compensation amount special account of state withdrawal is alloted) lands allotments to the land-user for committee of lands and cadastre (soum) lands withdrawal for lands withdrawal (soum) (soum) 1 Khokim's Decision № 601 Karakul district, Cooperative 19.70 8.70 11.00 Highway 387000 9019206 71662 dated 24.06.2006г. Bukhara region enterprise Krakul construction and wells repair work 2 Khokim's Decision № 679 Karakul district, Cooperative 2.00 2.00 industrial base 384308 1129232 dated 18.08.2006г. Bukhara region enterprise Krakul 3 Khokim's Decision №131 Karakul district, Cooperative 0.20 0.20 0.00 checkpoint 350650 94080 dated 03.02.2007г. Bukhara region enterprise Krakul 4 Khokim's Decision № 903 Karakul district, Cooperative 9.50 9.50 Binding and 2082460 3763200 dated 20.12.2006г. Bukhara region enterprise Krakul aggregate quarries 5 Khokim's Decision № 369 Karakul district, Cooperative 10.00 10.00 temporary road 836706 3394760 dated 07.06.2007г. Bukhara region enterprise Krakul 6 Khokim's Decision № 203 Jandor district, GosZemZapas 9.00 9.00 aggregate 454478 7056000 dated 25.01.2007г. Bukhara region (State Land quarry Reserve) 7 Khokim's Decision № 323 Karakul district, Karakul forest 5.50 0.36 5.14 Well № 1086 9018394 dated 16.06.2009г. Bukhara region farm and access road 8 Khokim's Decision № 753 Karakul district, Karakul forest 9.10 0.72 8.38 Wells № 1088 23471477 12550 dated 14.12.2009г. Bukhara region farm and 1050 and access roads 9 Khokim's Decision № 607 Karakul district, Cooperative 2.00 0.00 2.00 Temporary 13218000 dated 19.11.2009г. Bukhara region enterprise Krakul storage of pipes 10 Khokim's Decision № 473 Karakul district, Cooperative 12.00 0.72 11.28 Wells № 321-2 20914440 dated 31.08.2009г. Bukhara region enterprise Krakul; and 1055 and Karakul forest access roads farm 11 Khokim's Decision № 18 Karakul district, Cooperative 26.26 2.06 24.20 Construction of 44188743 dated 11.01.2009г Bukhara region enterprise Krakul; high voltage Karakul forest lines 10 and 35 farm kW 12 Khokim's Decision № 128 Karakul district, Karakul forest 25.00 0.00 25.00 field base main 40992700 dated 07.03.2009г. Bukhara region farm office 13 Khokim's Decision № 537 Karakul district, Cooperative 26.00 2.16 23.84 water wells, 26270552 dated 12.10.2008г Bukhara region enterprise Krakul; access roads Karakul forest farm Total: 156.26 14.92 141.34 4,495,602.00 202,530,784.00 84,212.00
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4.10 Information accuracy and availability
205. The information value of the results obtained has been estimated upon the completion of the Environmental audit. Total observations, estimated empirical data on spread of impurity elements and laboratory tests have been verified on subordination to law of spread according to Pearson test of goodness of fit and Gaussian probability of distribution. 206. The results of calculations tell high level of information value of most calculated factors. Estimation of compliance of observational data of pollution on separate plants of KGF, obtained in laboratory conditions, as well as estimated empiric data of spread of impurity elements along the all area of KGF, identifies high level of convergence of observational and empiric groups and their compliance with normal law of partition. 207. The results of the performed works on Environmental audit have passed state environmental expertise (Opinion No 18/126з dated 21.04.05), approved and recommended for use as specification of initial conditions of Environment on the KGF (Attachment №5). 208. The results of environmental audit have been published (Vecherniy Tashkkent newspaper, No 36 dated 22 February 2005. and Pravda Vostoka newspaper, No 71 dated 9 April 2005).
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5. Expected environmental impacts and mitigation measures
209. The following is planned on the territory of the KGF: 1. Drilling of operational wells in quantity of 126 units, including 28 at the KGF satellite fields; 2. Development of field site and gas processing complex with all necessary infrastructure (railway branch, access road, water wells, power transmission line and voltage reduction station, etc.). 3. Infrastructure construction for the construction period (shift camp for construction supervisory service, water intake facilities).
5.1 Wells construction 210. At the time of wells construction on the KGF the sources of the impact on the atmosphere are: diesel engine drives of the electric generators and drilling units; petroleum, oil and lubricants (POL) storage tanks; drilling mud mixing units (MMU); block boiler units. 211. Air emission during wells construction will be generated from liquid fuel combustion and open flaring of the gaseous components at wells testing. These emissions include the following: nitrogen oxides and dioxides, carbon oxides, sulfur dioxide, acrolein, soot, hydrocarbons. Dust, will also be released during drilling mud preparation. Hydrocarbons evaporation occurs at intake and storage of POL. 212. However, the amount of these emissions is insignificant and will have no noticeable impact on the ambient air quality at the project area. For neutralization of hydrocarbon in the composition of the reservoir fluid (mix of liquid and gas from geological horizon) the neutralizing agent adding to the drilling mud (drilling agent) will be used. The sources of discontinuous (periodic action) operation (instantaneous release) are the flares which are planned to burn the sulfurous gas during the well development. 213. The air pollution sources are temporary and upon well completion the impact on ambient air will cease. 214. Expected maximum amount of pollutants per year at construction of one well is given in Table 3. 215. Initial size of sanitary protection zone (SPZ) for wells is set by the SCNP of the RUz and by the MH of the RUz in accordance with adopted sanitary classification (depending on the risk of activity). According to the accepted classification well-drilling is assigned to class 2 of hazard (moderately hazardous) and the initial size of SPZ for the wells is defined as 500 m. 216. Initial size of SPZ was clarified by calculating the maximum concentration of contaminants in the air (on the border of SPZ) using specialized software packages (specialized program complex “Ecologist”, approved by SCNP of the RUz to using on RUz). The calculations were performed for a maximum project volume of emissions, taking into account the geometrical parameters of emission sources, temperature and velocity of the emissions, climatic characteristics and wind rose in the area. Maximum calculated concentrations were compared with quotas on emissions established for the given territory. As a result of the calculations, the initial size of SPZ is retained (500 m), because maximum
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concentrations of contaminants in the air (on the border of SPZ) do not exceed the established quotas.
Table 3. List of pollutants at construction of 1 well, per year Max. Conforming Established Class of Concentration to Percent of Volume Name of MPC, quota (of hazard in MPC established portion in released, component mg/m3 MPC (1-4)* portion quota** emissions tons portion) (beyond SPZ) (+/-) nitrogen dioxide 0,085 2 0,25 0,22 + 36,68 4,82045 carbon monoxide 5,000 4 0,50 0,08 + 28,89 3,79726 sulfur dioxide 0,500 3 0,33 0,23 + 13,32 1,75105 hydrocarbons 1,000 4 0,50 0,04 + 13,87 1,82343 Acrolein 0,300 2 0,25 0,25 + 1,38 0,18182 Soot 0,150 3 0,33 0,04 + 5,84 0,76772 Inorganic dust 0,5 3 0,50 0,00 + 0,002 0,0002 TOTAL 100 13,14193 * 1 - Abnormally hazardous, highest level impact on the environment; 2 - High-hazardous, high level impact on the environment; 3 - Moderately hazardous, average level impact on the environment; 4 – Low-hazardous, low level impact on the environment. ** Depending on the hazard class of a substance emitted into the atmosphere and the geographic location of the emission source, quotas on emissions are used in RUz. Quota is a reduction factor set by the SCNP of the RUz for the value of MPC of particular substance released into the atmosphere. Thus for different regions of RUz different quotas are being set. The sign "+" means that the maximum concentration of a substance emitted into the atmosphere is within the quota for a given substance in this area.
217. By all admixtures emitted at the well construction on the project territory the excess of permissible limits is not expected. Standard status of maximum allowable emission of contaminants to the air is fixed at the nominal emission level (Table 3). 218. Production operations related to the development (testing) and blowing of gas wells are the sources of intermittent (instantaneous) emissions. To avoid the formation of explosive concentrations of methane as well as in a view of the hydrogen sulfide occurrence in gas, the development and blowing of wells will be carried out with compulsory flaring of blowdown gases. As a result of these operations the products of complete and incomplete gas combustion are emitted in the air. The volume of instantaneous releases during the development period depending on the actual production rate of each well may amount to 50 tons of pollutants. Pursuant to the Environmental Law of RUz the instantaneous releases are not rated. 219. For the purpose of minimization of pollutants emission to the atmosphere the drilling works execution plan provides for the following measures: production cutback for the periods of unfavourable weather conditions (still air, ground inversion, overturning speed, etc.); testing and development of well at favourable weather conditions (absence of still air, ground inversion, overturning speed, etc.); periodic adjustment of fuel equipment of drilling equipment and vehicles diesel engines; diesel exhaust gases removal through hydraulic lock and fume stacks whose height shall be calculated according to the regulatory requirements; use of closed and full-pressure systems at fugitive pollutants emission sources (drilling mud preparation block tank, drill water collection and treatment systems, wellheads, receipt units for and measuring of formation fluids parameters incoming at well testing);
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POL storage control, transportation in hermetically sealed containers; POL storage containers dyeing with light-reflecting paints to reduce the evaporation coefficient; chemical agents shall be delivered to the drilling site in original packing avoiding its damage, to organize the storage in special premises/sheltered places; the cement shall be transported in transportation tanks and cement mortar shall be prepared in special cement mixers; to conduct the periodic inspection and repairs of vehicles and special machinery; to conduct the air quality monitoring at the drilling site SPZ boundaries. 220. At well construction industrial and drinking water will be used. Industrial water is required for drilling mud preparation; is used at various drilling operations; for cleaning of drilling tolls; for pressure testing of drilling tools and casing tubing; for washing of squeeze aggregates; for accomplishment of accessory works (mopping, equipment cleaning, etc.); is used for diesels and assembly units. The requirements specified for the water quality will be low and demands of the drilling site for the sources of industrial water supply will be satisfied using the water from the artesian boreholes located at the drilling sites. 221. The project implementation area lacks surface waters. The sources of industrial water supply are the underground waters developed by intentionally drilled wells. The water from the water-bearing stratum of Bukhara paleocene levels from wells 260-350 m deep will be used. Mineralization of these waters is up to 2-3 g/dm3. Well production capacity is 120 m3/day. The distance from the well to the drilling site is about 50 meters. Water storage at the drilling site will be 200 m3. 222. Water from well through the compressor will be fed to the header tank placed on the metal base. By water line the water will be fed by gravity to the derrick- drawworks unit platform, to the drill pumps, to the diesel-engine drive and to drilling mud treatment and preparation unit. 223. The demand for industrial water is 3,259 m3 (for process of drilling 1 well), considering the water use in circulation. The majority of water is used during the drilling period – 72 m3 per day, total – 2,873 m3 per drilling period. The whole volume of this water is classified as irrevocable water consumption because of absorption by drilling rock, however this process finally returns water underground and replenishes groundwater. 224. The demands for drinking water will comprise 590 m3. Total demand will be 3, 849 m3. Waste water occurring at well construction by the formation conditions are divided into: operational (mopping, cleaning of the equipment, cleaning of pulsating screens, discharged water from cooling system); industrial (washing of drill pipes); emergency (pipeline burst, defect of isolation valves); natural (rain and melt water); leakage at preparation of drilling mud and chemical agents; domestic. 225. The most significant by volume and ability to accumulate harmful substances are the drilling wastewater (DWW), formed at drilling. Contaminative properties of DWW depend on the mineral composition of drilling cuttings (drilling chips), materials and chemical agents used for preparation of drilling mud. DWW are carried out to the surface with drilling sludge containing nontoxic breeds mainly composed of loams, sandstones, aleurolites. According to the calculations the volume of drilling wastewater from one well shall comprise 484 m3.
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226. Drilling wastewater is characterized by rather high contamination level and contains a wide range of contaminants of different nature constituting a hazard for the environment. 227. At the drilling site the technologies of water treatment and disposal of treated DWW are implemented. Approximately 50% (200-250 m3) of DWW after treatment will be reused on drilling process in another well. 228. Hereafter the clarified water will be fed for the reutilization and the related components to the slurry pond which also are fed the waste drilling mud and drilling sludge. DWW after treatment is reused in the technological process – for tolls washing, mopping, for preparation of drilling mud, for dissolution of chemical agents and other. DWW may be also used on the irrigation fields and for other domestic needs. 229. Upon well completion DWW will be disposed with waste drilling mud and drilling sludge. Drilling wastes will be disposed in slurry pond after proper treatment – decontamination and hardening by the technology approved by SCNP of RUz. 230. Domestic wastewater is formed in the result of drilling site personnel life activity. The collection thereof is accomplished in water-tight septic tanks. Water disposal of domestic sewage comprises at the construction of one operational well 590 m3. 231. Total amount of waste water disposal at construction of 1 well is 3,849 m3; including outflow to open reservoirs and ground surface. 232. For the purpose of protection of water resources (including underground waters) drilling works execution plan provides for the following measures: use the technological processes which significantly reduce the layer filtration properties at reservoirs penetration; disintegrate the harmful stratum by casing string, and by setting casing string to accomplish the tapping of underground reservoir with drilling mud not containing toxic chemical agents; construction of slurry pond shall be accomplished by using technology which excludes the wastes filtration to underground reservoirs (bottom and walls damp- proofing, embanking); reuse the treated DWW for technological operations (washing of drilling mud cleaning and reconditioning system machinery, working sites equipment at lowering and raising operations, casing and drilling pipes pressure test, drilling mud preparation, etc.); organize the water consumption record system in accordance with the established procedure; accomplish the surface water condition monitoring in the drilling works region. 233. Upon completion of well construction at drilling site following two production wastes are accumulated: waste drilling mud (WDM) and drilling sludge (DS), requiring the decontamination and recycling by using the technology approved by SCNP of RUz (decontamination, hardening and landfill at the slurry pond of the drilling site). 234. During the well development (testing) byproducts of acid treatment are formed represented by a saline solution in the amount of 60 m3/well, disposed to the water-proof slurry pond with drilling wastes. 235. At accomplishment of associated operations wastes are formed represented in the form of iron and nonferrous scrap (including nonconforming metal containers), wiping non- greased rags, construction waste (paper containers wastes), plastic scrap (tires from tubing).
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236. At drilling sites and housing settlements after the use of fluorescent lamps waste is formed from the waste mercury-vapour lamps. The everyday life necessities of key and auxiliary personnel on site will result in creation of solid domestic and food wastes. 237. Total waste amount formed at the construction of 1 well is given in the Table 4. Table 4. Characteristics and amount of wastes at the construction of 1 well Name of Class of Amount of Storage Disposal method wastes hazard wastes, method (1-5)* t/well scrap iron 4 2,0 At the site with Timely removal and transfer of hard surface wastes according to the contract to nonferrous 4 0,5 At the site with the enterprises “Vtorchermet” and scrap hard surface “Vtortsvetmet” for recycling. Drilling wastes 4 347 At slurry pondв Decontamination, hardening and (DWW, WDM, with bottom and storage of wastes at the slurry DS) walls ponds after decontamination dampproofing according to the “Regulations for drilling wastes recovery at construction of the operational wells at the site of Kandym group of fields” approved by the SCNP of RUz. wiping non- 4 0,09 In metal greased rags containers solid domestic 5 1,513 In metal wastes container at the Timely wastes removal to the site with hard approved landfills under surface agreement with “Olotobod” LLC Food wastes 5 2,188 In metal container at the site with hard surface paper 4 0,722 In metal containers containers wastes waste mercury- 1 0,0024 In store wagon, Collection and removal of wastes vapour lamps in hermetically for demercurization to the sealed metal specialized organization (TC container Sitora) according to the agreement Plastic scrap 4 1,0 at the site with Centralized removal of wastes to hard surface Samarqand city for passing for recycling to cooperative “Vtorma” according to the agreement TOTAL: 355,015 * 1 - Abnormally hazardous; 2 - High-hazardous; 3 - Moderately hazardous; 4 – Low-hazardous; 5 – nontoxic.
238. Based on Table 4, the selected drilling technology on the KGF mostly from drilling wastes of 4 class of hazard (low-hazard) which will reduce impact on environment. Additionally, drilling plant provides following measures of waste handling: waste utilization (including domestic waste water) to perform in accordance with specially elaborated “Regulation for utilization of operation wells’ drilling wastes on Kandym group of fields”, receiving positive conclusion from the State Environmental Expertise of State Committee of Nature Protection of the RUz;
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preparatory works (technologic sites leveling and flumes installation for waste transportation to slurry pond) to carry out in strict accordance with environmental requirements; build pipelines or flumes (enforced concrete, metal, plastic, etc.) along site contour to interception, accumulation and transportation of domestic waste water and drilling wastes; carry out construction of hydro-insulated slurry pond for collection, storage, deactivation and disposal of drilling wastes for unexpected emergency kicks; carry out construction of hydro-insulated cesspool for domestic waste water collection; system of domestic and industrial wastes collection arrangement in accordance with environmental legislation requirements, containers and other capacities arrangement for waste collection, provision of their regular emptying and transportation for utilization to specialized organizations. To protect existing biocenosis and prevent soil pollution it is provided: technology usage is assessed while well site planning, preventing (reducing) landscape technogenesis and groundwater hydrological regime change; application of drilling mud system not containing oil and oil products as well as highly toxic additives; using appropriate sorbents to localize and eliminate an emergency oil and liquid wastes spillage; approach roads construction with maximum use of existing road network taking into account local natural conditions and necessity of culverts construction; transport movement only along built roads providing safe traffic, preventing vegetation and soil cover destruction; dismantling of reinforced concrete foundations, flumes breaking, site hydro- insulation, removal of concrete blocks for reuse, emergency pond, ditches, trenches, cesspools with ground from dike (technical land reclamation); drilling site territory cleaning from metal scrap, construction garbage and other wastes with their transportation for disposal and utilization; use of rubber shock dampers for diesels, power units and diesel power plants; use of highly flexible couplings for diesels and compressors; compensation and balancing of rotating blocks, metal springs and rubber shock dampers, use of pneumatic compensators for drilling pumps; drilling equipment installation on concrete foundations. 239. Technogenic impact under well construction and development of set of technical and environmental measures, was assessed and ecological experts confirmed that environmental impact will be local and of low level without irreversible processes. 240. The environmental measures provided above will allow successful well construction with observance of all environmental requirements.
5.2 Development of gas-condensate fields 241. The development of the KGF includes construction of multiple-well platforms (clusters), collection points (CP), infield pipelines, gas processing plant, necessary
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infrastructure (road network, power transmission lines, treatment plants, shift camps, water intakes, repair-mechanic bases, etc.). 242. Under the KGF development, the following main sources of pollution are expected: a) flare systems of the gas field (CP, clusters, units of treatment plants start and acceptance, etc.); b) condensate stabilization: condensate storage reservoirs’ breathers; exhaust shaft of two-stage centrifugal compressor of gas compression from separator and stabilization column; c) sulfur production unit: flue gas duct thermo-oxidizer (incinerator); d) booster compression station: exhaust shafts of one-stage centrifugal compressor of conditional natural gas driven by gas turbine (3 threads); e) GPP of low and high pressure flares; f) technologic and domestic boiler houses; g) automobile transport, special machinery, repair equipment; h) fugitive emission of instrument room yard; i) railway spur. Predicted total emission of the KGF facilities are presented in Table 5.
243. Separate source of impact on atmosphere air will be railway spur. The load on atmosphere will depend on selected traction railroad engines (electric trains or locomotives) In case of locomotive selection, load on atmosphere air will increase by additional emission of oxides of sulfur, nitrogen, carbon, solid particles. Emission volumes will be directly dependant on freight traffic activity and specified on next design stages. At this stage locomotive emission are assessed as 0.4 t/t of fuel. 244. In case of electric trains’ selection, impact on atmosphere will be absent; the main factor for this option selection would be the environmental-economic justification. 245. Plant loading station is also a source of emission. Annual hydrocarbon emission under design condensate volume loading to cisterns is evaluated as 65-70 tons. Evaluation of elemental sulfur emission to the atmosphere at this stage is impossible because of absence of storage and loading methods. At further design stages, to minimize sulfur emission, it is necessary to provide maximum close system of sulfur storage and loading based on safety requirements. 246. A detailed inventory of emission sources of greenhouse gases will be held at the next stage of the EIA during establishment of standards of maximum permissible emissions of pollutants into the atmosphere (as part of EIS). At the current stage of design and the EIA procedure only consolidated parameter estimation of greenhouse gas emissions at facilities of Kandym group of fields is possible. 247. The main source of greenhouse gas emissions is the process of gas flaring and popping of gas in process furnaces (boilers). 248. Calculation of greenhouse gas emissions is conducted according to the Method of NCASI (National Council for Air and Stream Improvement).
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Table 5. Emission from the KGF facilities Ingredient Class of MPC, mg/m3 Emission to atmosphere, hazard t/yr (1-4)* Total emission related to field part Carbon oxide 4 5,000 258,22 Nitrogen dioxide 2 0,085 7,248 Nitrogen oxide 3 0,600 1,812 Hydrocarbons (on methane) 4 50,000 135,905 Gas black 3 0,150 0,324 Sulfur dioxide 3 0,500 0,075 Total 403,584 Total emission to the atmosphere related to booster compression station Nitrogen oxide 3 0,600 980,186 Nitrogen dioxide 2 0,085 245,048 Carbon oxide 4 5,000 1392,336 Sulfur dioxide 3 0,500 74,159 Total 2691,729 Total emission related to gas processing plant objects Hydrocarbons (on methane) 4 50,000 1616,494 Benzol 2 1,5 0,484 Methylbenzene 3 0,6 0,234 Benzene 3 0,2 0,112 Hydrogen disulfide 2 0,008 0,3353 Sulfur dioxide 3 0,500 3214,0949 Carbon oxide 4 5,000 6482,95 Nitrogen oxide 3 0,600 824,351 Nitrogen dioxide 2 0,085 363,563 Gas black 3 0,150 6,686 Total: 12509,3 Grand total: 15604,613 * 1 - Abnormally hazardous, highest level impact on the environment; 2 - High-hazardous, high level impact on the environment; 3 - Moderately hazardous, average level impact on the environment; 4 – Low-hazardous, low level impact on the environment.
249. The maximum estimated volume of greenhouse gas emissions at facilities of Kandym group of fields according to calculations have been estimated in the order of 1.1 million tonnes of CO2 equivalent (per year). 250. The following are the main measures to reduce emissions of greenhouse gases in the course of design of technological facilities of Kandym group of fields: - Choice of technology of the ultimate separation of well production - the separation of liquid and gas (minimization of the volume of separated gas); - Choice of technology to maximize commercial sulfur recovery from well production (reduction of tail gas volume); - Ensuring integrity of the whole technological system by selecting the appropriate equipment and effective anticorrosion protection system. 251. Analysis of calculations of maximum ground level concentration from using licensed bundled software (specialized program complex “Ecologist”, approved by SCNP of the RUz to using on RUz) showed that expected maximum concentrations of pollutants in atmosphere in the KGF area outside sanitary-protected zones will not exceed maximum allowable concentrations.
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252. To minimize pollutant emission to the atmosphere, work plan foresees the following measures: selection of maximum possible degree of hydrogen disulfide in commercial sulfur; use of hermetic operation equipment, valves and gas and condensate pipelines; use of close system of gas condensate collection; obligatory neutralization of toxic gases be method of thermal destruction in flaring systems; design of flares, which height provides dissipation of gas combustion products down to allowable concentrations in the air of work site; stationary sensors installation for control of hydrogen disulfide concentration in air ground level; arrangement of local air control posts at the boundary of nearest settlements (within the fame of environmental monitoring). 253. As sources of potable water supply for the KGF both surface water from Yamanjar canal and groundwater from water wells will be used. Both types of water can’t be used as potable water without treatment. To use water with raised mineralization for industrial purposes range of measures of its treatment are provided. 254. On gas processing plant’s site the following water supply systems are envisaged: drinking water supply; industrial-fire water supply; recycling water supply system consisting of two cycles – close and open. 255. Most water-retaining operations in gas processing technology are as follows: desulfurization and gas dewatering; condensate stabilization; sulfur production. 256. At the stage of desulfurization and gas dewatering, water will be spent for acid gas, amine, compressors and pump bearings cooling. Under sulfur production, water will be spent for heat utilization and blowing machine cooling. In process of hydrocarbon condensate treatment and stabilization water will be spent for condensate and gas-water mixture cooling. Steam production water will be used for boilers feeding, which includes: steam production for fabrication technique (at the moment of start), compensation of steam losses in processing units, system filling at expense of boiler water blowing. On treatment plants water will be spent for cation exchanger backwash, backwash, cation exchanger cleaning from regeneration solution, mechanic filters washing. 257. Industrial water will be spent for open cycle recharge and chemical water treatment to produce softened water for close cycle. 258. Prevention of environment pollution with waste water and water consumption reduction will be by means of rational water use in enterprise and recirculation water supply. Predicted percent of recirculation water supply for gas processing plant is 98.5%, auxiliary – 13.2%. Volume of recycled water of main production will be 85 034 400 m3/yr, auxiliary production - 116 000 m3/yr. 259. Gas processing plant’s waste waters according to their origin are divided as follows: domestic; storm (rain) runoff; industrial; groundwater. Main sources of waste water are as follows:
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boiler houses; drainage reservoirs of desulfurization and gas dewatering; condensate parks, blowing water from waste heat boilers and reactors-generators; washing water of equipment. The following sewerage network is provided on gas processing plant’s site: domestic; production-rain; waste water polluted with chemicals. 260. Domestic waste water will be conveyed by gravity through pipeline to sewerage pumping stations and then to the biological treatment plant. 261. Drainage of waste water from equipment hydro-tests, rainwater, and water from floor wet cleaning will flow to the production-storm sewerage system. Main sources of surface runoff pollution are the products of soil erosion, dust, building materials, raw materials and products in open warehouses, emission to the atmosphere, different oil products taking place due to leakage or vehicle and other machinery troubles, etc. 262. Rain and washing runoff for most polluted territories (diked areas) is withdrawn to system of production-rain sewerage. Production and rain runoff from diked areas are subject to physical-mechanical treatment and directed to injection into deep absorbing aquifers. Because the injection is one of existing methods of utilization an industrial liquid wastes, whish is optimal from ecological and economic perspectives and actively use in RUz. 263. Mineralized water from boiler house, blowing water from recirculation system after treatment from oil products and suspended particles are directed for injection into deep absorbing aquifers. 264. Planned water consumption of gas processing plant’s arrangement objects is presented in Table 6. Table 6. Water consumption and withdrawal balance
Water consumption, th. m3/yr Water withdrawal, th. m3/yr Production name Industrial Drinking Recycled Industrial Domestic water water water wastewater wastewater Production work 1299,2 - 85034,0 466,8 - Auxiliary and other 760,0 - 116,0 239,2 - works Domestic, household - 8,70 - - 8,7 and practical needs Shift camp - 9,30 - - 9,3 Total 2059,2 18,0 85150,4 706,0 18,0
265. To protect surface and ground water from contamination, rational use of water resources at the preliminary stage of design it is foreseen: maximum usage of re-circulated water system ; treatment of domestic waste water and discharge with consecutive utilization for plant irrigation; production waste water treatment and injection into deep absorbing layers. 266. Additional water consumption is possible for steam station to clean railway cisterns at ware elevated structure, but these works are not provided by the project because this type of service will provide subcontractor on his own the territory.
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267. Technological process of gas mining, collection, preparation and treatment from acid components and its compression in production work where solid wastes formation is connected with different operations: usage of absorbents, catalysts and filters; changing the oil in gas-turbine installations of compressor plants, etc. Used absorbents, catalysts and filters are subject to compulsory replacement after completion. 268. Gas stripping slurry is also a production waste formed during gas pipelines and collectors cleaning. 269. Developed motor oils, car tires and tubes, batteries – result of vehicle operation. 270. Auxiliary departments (overhaul shop, production department) produce wastes like waste ends contaminated with oil, purchased scrap of black and base metal. 271. People working on plant and gathering stations and living in shift camp create solid domestic and food wastes and territory cleaning – sweep. Utilization of luminescent and mercury containing lamps leads to waste of the first class danger. 272. Waste characteristic evaluated at the preliminary stage of design and expected methods of its disposal are presented in Table 7. Table 7. Waste characteristic and conditional volume Waste name Quantity, Class of Method of disposal t/yr hazard (1-5)* Developed activated 44,4 4 Disposal on district polygon** of solid charcoal domestic waste by specialized organization***. Developed mole sieves 2346 4 Disposal on district polygon of solid (zeolite) domestic waste by specialized organization. Developed catalyst 427/ 5 лет 4 Disposal on district polygon of solid domestic waste by specialized organization. Developed filter 0,056 4 Disposal on district polygon of solid domestic waste by specialized organization. Developed turbine oil 2 3 Utilization for production purposes. Transfer to specialized organizations for processing. Gas stripping slurry 20 м3 3 Gathering in collector. Disposal on polygon of drilling wastes on Khauzak- Shady deposit. Solid domestic and food 25,1 (SDW) 4 Disposal on district polygon of solid wastes 7,665 (Food domestic waste by specialized waste) organization. Sweep 116,6 4 Disposal on district polygon of solid domestic waste by specialized organization. * 1 - Abnormally hazardous; 2 - High-hazardous; 3 - Moderately hazardous; 4 – Low-hazardous; 5 – nontoxic. ** special place approved by the SCNP of the RUz for wastes utilization. *** organization, which specialized on wastes utilization, contracted by Operator.
273. Thus, as a result of design solutions, wastes mainly of the 3-4 class of hazard will be formed. 274. To minimize impact on environment, at the preliminary stage of design it is provided:
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1. Mining control: control of static pressure dynamics for evaluation of formation pressure and temperature dynamics in developed productive pools; well gas-dynamic investigations; special investigations (hydro-geological, hydro-chemical, geophysical, etc.). 2. Well ties, tails, collectors: cutoff valves installation on wells; utilization of pipelines made of high-strength pipe with raised WT; establishing system of inhibiting and electric-chemical protection against corrosion; equipment furnishing with safety bypasses, emergency flare; gas pipeline crossings over natural and artificial barriers in accordance with building norms and rules; equipment furnishing with instrument piping and automation with remote control; 3. Protection against blowout and drifting: selection of pipeline route with account of relief moving forms; mine site location on leveled and stable to deflation surfaces, in slightly desiccated sand; communication routes location on leeward side of industrial objects; automobile roads location in slightly differentiated relief and on solid surfaces; location of point objects (PTL poles, etc.) in the least differentiated and most gross- covered eolian forms of relief stable to deflation. 4. Land recultivation: soil strengthening and improvement by perennial grass sowing with fertilizes on sands, integrated green zones creation near sites; to carry land recultivation during installation and construction work, if impossible, but not later than during one year after work completion. 275. Thus, designed objects’ impact will occur at the stage of field infrastructure development, objects construction and their further operation. Thus, most impact will be made by gas treatment plant as being the largest object. 276. Impact of atmosphere air after design solutions realization will be as follow: fuel gas burning to maintain duty flame on collecting points and gas processing plant’s flares; “tail” gas burning in incinerator in process of acid gas treatment on Sulfur removal facility; gas compression with emission to the atmosphere burned gas products; from technologic boiler-house. 277. During objects construction main influence is applied to land resources and it is connected with condemnation of land to permanent (for site constructions) and provisional (for linear objects) utilization. Provisional land acquisition will amount to 1 857.445 ha, at that most part of it has linear character and doesn’t touch arable and irrigated land. 278. All provisionally acquired land with mostly mechanical impact is subject to reclamation (technical recultivation). Field facilities and gas processing plant construction will be
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implemented on limited sites and impact will be local with 92% of total land acquired to be returned (all provisionally acquired land will be return to previous landowner after recultivation), impact on land resources on these sites will be both local and provisional. 279. Impact on groundwater is connected with groundwater withdrawal for industrial and domestic needs. Gas processing production can be related to water-retaining manufacturing. System of recycling water supply significantly reduces fresh water discharge and, therefore, decreases impact on water objects. 280. During installation and construction works, impact of noise made by machinery and thermal may influence small animals and insect migration and partial death will be observed. Gas burning in flares partial death of insect will be observed. 281. Under project elements’ operation industrial wastes, consumption wastes and domestic wastes will be formed. During all operation period, separate collection of wastes will be implemented over type, physical-chemical properties, aggregate status, toxicity, fire and explosion danger and other signs determining danger degree for population health and human habitat. Disposal will be implemented on specialized enterprises over waste types. 282. Thus, the KGF will be developed under the conditions: observation of organizational-technical measures preventing soil, water and air pollution; control of soil, water and air status; deactivation and timely utilization of industrial and domestic wastes; reclamation of construction sites. 283. Further development at each stage of KGF the environmental actions taken will allow it to operate following all requirements of nature protection.
5.3 Construction-period infrastructure 284. During construction of project facilities on the territory of the KGF, a shift camp for construction supervision service will be provided. 285. The territory of the camp consists of the areas as follows: 1. Housing area for accommodation with canteen, first-aid station, gym and laundry. Accommodation premises shall be provided with water supply system, shower room with hot water, WC, dining room, provided with taps and sinks. 2. Water treatment plant, water works, evaporation pond, transformer room, diesel engine power plant inside container, communication container with 30 meter tower. 3. Waste water bacterial treatment plant “AS BIO 100” with drying area and evaporation pond. 4. Utility area –parking lots, storage rooms, toilets, sewage pumping station. 286. Equipments and facilities, will be provided with electric actuator that minimizes the emission of polluting agents to the atmosphere. Only diesel engine power plant with capacity of 358 kW as emergency power supply system will produce combustion products while electricity is off. Impact to the atmosphere will be minimal- 4 ton/annum of polluting agents. 287. Electric power supply of the construction site is intended to be carried out by laying 35 kV high-voltage line from 35 kV outdoor switchgear of existing 110/35/10 kV Electric Substation named “Gazli” (see Picture 3). The length of the line from “Gazli” Electric Substation to KGF is 42.65 km. Power supply facilities use is not resulting in affecting the atmosphere, forming of solid wastes.
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288. For the needs of construction the water intake system has been constructed (4 operational wells, 2 observation wells). Ground water from the said wells will be used for construction needs, as well as after desalting will be used for service and utility purposes of construction. Wells are located in square order. The distance between wells is 50-100 m. The depth of the well is 474.5 – 487 m. The 11 km motorway and electric power supply line are laid to the well area. Wells are equipped with bottom pumps Grundfos Sp 17-13 {Denmark} with capacity 5 l/sec. The electric power supply of the wells is intended to be made by connecting to 10/0.4 kV Transformer Substation, located close to the site. 289. According to Construction Regulations 2.04.02-07 (Section 10 Sanitary protection zone), for water intake facilities, in our case, it is water supply wells, sanitary protection zone must be provided. Zone of water supply source in the place of water intake must consist of 3 areas: first – high security, second and third – limitation mode. 290. The border of the first zone of ground water supply source must be established from outer water intake facilities (wells) of water intakes in the distance of 30 m while using secured ground waters; 50 m while using insufficiently secured ground waters. In our case, serviceable underground reservoir is secured, the interval of bedding is 430-480 m. Thus, first zone of sanitary protection, established for water supply wells of the KGF is 30 m. 291. In the territory of water supply wells zones of sanitary protection are established. The dimension of the zone of sanitary protection of the first area is 160х160 m. The territory of the zone of the sanitary protection of the first area is being developed. Underground ways for entrance of vehicles for the purpose of preventive measures for wells have been constructed. In the territory of the zone of the first area lighting lamps have been installed, telephone communication has been arranged, watchman room has been provided. 292. Specific features of using water supply wells are that there are no polluting agents and wastes. The constant presence of the personnel while using water supply wells for the period of construction on the KGF is not provided (all equipment operates in automatic regime). 293. Water supply of the rural settlement is carried out by supplying sweet water to reservoirs. Sweetening is carried out at automated water treatment plant with capacity of 30 m3/day. The quality of water in output complies with O’zDSt 950:2000 requirements. Desalting method is preliminary treatment on filters and supply to reverse-osmosis membranes. 294. Water disposal for service and utility needs of the rural settlement is carried out by installing bacterial treatment plant “AS BIO 100” with further drain of refined flows to evaporation ponds. Considering unavailability of water, the supply of treated service and utility flows for irrigation and watering of the territory is provided. 295. Waste water of water treatment plant (saline liquids) is supplied to utilization (evaporation) to moisture-proof ponds. 296. Other sources of waste water formation in the territory of shift camp for construction supervision service are deemed to be absent. The consumption of water for construction needs refers to irrecoverable category. 297. While operating of shift camp, the formation of the following solid wastes will occur (Table 8):
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Table 8. Solid Waste and Disposal Method Description of wastes Quantity, Class of Disposal method ton/annum hazard (1-5)* Household wastes, food 137,35 5 Transportation to household wastes area wastes by dedicated agency. Treated activated 1,0 4 Use as mineral fertilizers for plantings sludge upon approval by State sanitary- epidemiological expertise center Solid precipitations 266,15 4 Transportation to household wastes area (salted muds) upon approval by Region Committee on environmental protection. Mercury containing 50 pcs. 1 Transportation for demercurization to lamps Sitora. * 1 - Abnormally hazardous; 2 - High-hazardous; 3 - Moderately hazardous; 4 – Low-hazardous; 5 – nontoxic. ** special place approved by the SCNP of the RUz for wastes utilization. *** organization, which specialized on wastes utilization, contracted by Operator.
298. Considering slight volumes of additional emission into the atmosphere while using of shift camp (all wastes and liquids belong to service and utility categories), development of special environmental protection measures is not required. Maximum possible reduction of impact by constructing treatment plants, as well as development of disposal scheme for all solid wastes is provided under project design. 299. Special insulators are provided for protection of birds on electric power transmission lines. For the purpose of reduction of failures of existing biotopes on the site, electric power transmission line has been laid along existing lines of communication on the KGF. 300. Upon completion of construction of facilities the area will have finished town-looking appearance instead of desert appearance. Convenient conditions for construction personnel (which mostly will be employed from Bukhara region) will be created. Except that the transport infrastructure will be developed that enhance social and economic condition in the region of project implementation. 301. The compulsory rehabilitation of the soil damage caused by construction works, plantings and drift-sand works are provided under the project. 302. There will be monitoring program for the construction and maintenance processes. . The monitoring program will reveal and prevent potential negative impacts on the environment.
5.4 Impact on Desertification 303. The principal cause of the desertification process has been the improper and wasteful methods of irrigated agriculture in the region. As stated earlier, there is no active irrigated agriculture in the KGF area and little or no pasture use. 304. Recent studies have indicated that one way to combat desertification is to reduce the amount of irrigated agriculture in sensitive areas and replace people’s income from other sources. In this part of Uzbekistan a principal alternative source of economic growth is associated with oil and gas development. The KGF development (both construction and operation activities) will provide approximately 1,600 jobs to local people, and provide improvements to some local infrastructure such as roads. The PSA specifies that 80 % of jobs will be made available to Uzbekistan citizens, most of whom will come from the Bukhara region. The Operator prefers to employ people from the Karakul and Alat area to reduce
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transportation and relocation costs. Further, the Operator is committed to developing and implementing a Social Policy to Support Local Communities. 305. In terms of water use, the KGF development will use shallow-well saline water that has no irrigation or potable water use for drilling. Other technical water and potable water will be used as described in Table 6 above, with the large majority of water being recycled. 306. In addition, the project will extend the shifting sand prevention program being carried out in Karakul reserve to the infrastructure areas in the KGF. The photo at right shows sand control measures near an initial well operation at Kandym. 307. With these measures in place, the impact of the Project on desertification will be less than significant, and may actually support anti-desertification measures that the Government of RUz has proposed.
5.5 Social Impacts and Mitigation Measures 308. In the design process of the KGF development, the impact of implementation of this project on the socio-economic situation in the region was given special attention. 309. Impacts of Land Acquisition. Lands for the Kandym Gas Fields Project were acquired from 2 farms (Karakul forestry farm and Karakul corporate farm). These lands were used by forest farm for sand binding by sowing and planting of wild grasses and shrubs and by collective farm for pasture. Land acquisition and withdrawal for wells, shift camp, electric power substations, and roads was performed in accordance with laws and resolutions of the government of the RUz. Company acquires lands in time for facilities construction. By decrees of khokims of Karakul district and Bukhara region 156,26 ha of lands were assigned to the Company. By these decisions the Company paid compensation for lands to Karakul forest farm and Karakul collective farm in the amount of 202,530,784 soums (about 135,020 USD). Calculation of the amount of compensation is made in accordance with the Decree of the Cabinet of Ministers of the RUz. “on approval of Regulations on order of consideration of land disputes in the RUz ” No. 246 dtd. 25.05.1992 and is dependent on the land area and quantity of years of Facility construction. 310. Future land acquisition will be carried out using the Lukoil Resettlement Policy framework document to be agreed on with ADB. 311. Impacts on Employment and Local Development. It has been planned that the major part of the staff will be recruited from the local residents. At the same time, it was planned to provide charity assistance to the Bukhara Oil/gas College in order to build up its equipment level to promote training of specialists. Being a responsible company, in the design process the operator planned to provide and currently is providing charity and sponsorship assistance starting with individual charity actions and ending with long-term sponsorship activities in the field of education, culture and sports. While distributing the charity and sponsorship assistance specific attention is paid to particularly vulnerable groups of the population.
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5.6 Impact Significance 312. Environmental and social impact significance can be determined on the basis of an impact’s magnitude, duration, and compliance with accepted standards. Application of the appropriate mitigation as described in this EIA and EMP aims to reduce significant negative impacts to a less-than-significant level. If reasonable mitigation cannot sufficiently reduce the negative impact’s significance the EIA reports that the impact remains after mitigation and is significant. 313. Magnitude of impact. An impact can be characterized by its magnitude: . Minor: environmental impacts characterized by no or small, potentially measurable change; for social impacts, no or small adverse changes and more beneficial potentially measurable impacts; standard siting, construction/ operational norms and standards and practices can address such impacts. . Moderate: environmental impacts include measurable loss or system disruption, system able to continue without mitigation but a lower level; social impacts: measurable socio-economic changes, but individuals and communities would be able to function quite well but at a different level; standard siting, construction norms and standards and practices to take care of these impacts, but some mitigation measures may also be required . Severe: environmental impacts consist of substantial or major losses or system disruptions; systems unable to function without considerable mitigation or major compensation; social impacts: substantial changes to existing conditions or major socio-economic loss or disruption; individuals and communities unable to function traditionally without mitigation or major compensation; alternatives to the proposed action have to be considered and a well-budgeted EMP needed with strict monitoring and capacity strengthening. 314. Duration. An impact can be of short duration (for example noise during construction only), or long lasting or permanent such as the taking of private lands for the project, or destroying an ecologically important area. Long lasting or permanent impacts are generally significant. For example, an impact that is minor in magnitude but permanent in nature may be classified as significant. An irreversible impact will also normally be significant. 315. Compliance with Standards. A project causes a significant impact if it does not comply with accepted norms, such as air, noise or water quality numerical standards, requirements of accepted RUz standards, or other standards accepted for the impact assessment such as ADB, WHO or European environmental standards.
5.7 Impact Summary 316. A summary of the potential environmental and social impacts and possible mitigation during the project construction, operation and decommission periods are shown in Table 9. More detailed mitigation measures will be specified at the Environmental Impact Statement (EIS) stage.
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Table 9. Impact Matrix Potential Impact Duration Impact Potential Impact Impact Areas Required Mitigation Measures Residual and Period Significance Impacts Construction Phase Physiochemical Noise and vibration Construction areas; During the Potential minor Adopting RUz and International No Significant due to construction movement of construction negative impact standards on occupational health and Impact and transportation vehicles, drilling in populated safety as well as noise minimization areas, excavation, areas, can be program. Acceptable noise levels to be road an railroad mitigated specified. construction (in Contractor’s EMP). activities Air Pollution; dust due Construction areas During the Potential minor Develop site management program No Significant to the construction and and populated construction and negative impact, prior the construction Impact transportation areas near the road transportation can be mitigated Maximum use of existing roads. Good compacting and runoff design, observe speed limits, develop watering schedule for all roads (in Contractor’s EMP) Water Pollution; soil Construction areas, During the Potential minor Develop best management practice No Significant erosion construction and negative impact, consistent with Operator’s policy on Impact operation can be mitigated soil erosion at all constructed areas as well as pollution control technique Develop appropriate monitoring program (in Contractor’s EMP) Handling and Storage Construction areas Temporary/ Potential minor Develop specific policy, safety, No Significant of Fuel and Explosive During the negative impact, emergency response and SOP which Impact materials construction can be mitigated comply to Operator’s international standards, install oils and grease aggregators and separators and appropriate storage facilities (in Contractor’s EMP) Disposal of earth, rock Construction areas Temporary/ Potential minor Identify earth, rock, and drilling mud No Significant
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Potential Impact Duration Impact Potential Impact Impact Areas Required Mitigation Measures Residual and Period Significance Impacts spoils, including and dump sites During the negative impact, disposal sites and develop best Impact drilling muds construction can be mitigated practice management program, including recycling of drilling muds to make bricks and other construction materials (in Contractor’s EMP) Solid wastes Construction sites Temporary/ Potential minor Using or constructing approved-offsite No Significant and workers camps During the negative impact, disposal facilities in coordination with Impact construction can be mitigated local authorities and develop/enforce a management program. (in Contractor’s EMP) Biological Terrestrial Vegetation Location of project Entire project life Potential minor Setting replanting program with No Significant loss and wild life infrastructure, negative impact appropriate plants (saxsaul, etc.) and Impact railroad, access can be wildlife life conservation program (see roads. mitigated Attachment № 4) Reduced bird Entire KGF and During the Potential major Avoid construction or other activities in No Significant migration nearby lakes and construction negative impact the Karakul Reserve and other Impact wetlands can be sensitive sites, such as nesting areas. mitigated Provide special insulators on electrical power lines to protect raptors. Contribution to Entire KGF, Mainly during Potential minor Extend shifting sand prevention No Significant desertification process particularly in areas construction, but negative impact program being carried out in Karakul Impact to be used for including entire can be reserve to infrastructure areas in the project life mitigated KGF. Reduce consumption and recycle water Re-establish vegetation in all construction areas Endangered species KGF Area During the Potential minor Monitoring to ensure absence of No Significant construction negative impact endangered species. Impact can be If found, cooperate with authorities to mitigated develop and implement a specific
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Potential Impact Duration Impact Potential Impact Impact Areas Required Mitigation Measures Residual and Period Significance Impacts protection plan. Provide workers with information on endangered species (see Attachment № 4) Human (Health and Safety) Communicable, Project area During the Potential minor Establishing health care system to No Significant sexual transmitted construction negative impact prevent, control and provide medical Impact disease due to influx can be treatment for workers workers, project mitigated Screening and medical surveys of all employees employees before engagement Provide education on health and hygienic Working closely with local health authorities Safety hazards for Workers, project During the Potential minor Develop or adopt the international best No Significant workers and project employees, and construction negative impact practices on occupational Health and Impact employees at work affected populated can be safety at the work place (in places, and residents areas (near road mitigated Contractor’s EMP and Health and in populated areas and railroad) Safety Plan, compliant with Operator near road and railroad policy and OHSAS) Social and Economics Employment Project areas, and During the Potential major Required by PSA Positive opportunities surrounding construction positive impacts Impact populated areas Involuntary Project areas, and Prior to Potential minor Prepare and implement a resettlement No Significant Resettlement (IR) surrounding construction negative impact plan (RP) as per resettlement Impact, with populated areas period with can be framework agreed with ADB RP potential IR mitigated impact
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Potential Impact Duration Impact Potential Impact Impact Areas Required Mitigation Measures Residual and Period Significance Impacts ROW for Access Affected and Entire project life Potential major None Positive roads surrounding villages positive impacts; Impact having new access roads Aesthetic and cultural Landscape and visual KGF and Entire project life Potential minor Development will include good living No Significant impacts constructed areas negative impact conditions, fenced areas and no Impact can be uncontrolled dump sites. mitigated Project footprint to be as compact as possible Archeological KGF and During the Potential minor No archeological objects found during No Significant constructed areas construction negative impact Environmental Audit. Impact can be If any objects are found during mitigated construction period, activities at specific site will stop and consultation will be held with relevant government authority, for direction how to proceed. Operations Phase Surface Water Water Quality KGF Area Entire project life No Impact No water returned to surface water No Significant anticipated courses Impact Water Balance KGF Area Entire project life Potential minor Drilling mud water will be from shallow No Significant negative impact saline wells, not from irrigation sources Impact can be Water will be recycled as appropriate mitigated Existing Use KGF Area Entire project life Potential minor Project will provide employment and Positive positive impact economic base alternative to current Impact wasteful irrigated agriculture Biological/Ecological
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Potential Impact Duration Impact Potential Impact Impact Areas Required Mitigation Measures Residual and Period Significance Impacts Impacts to bird KGF Area Entire project life Potential major Avoid construction or other activities in No Significant migration without mitigation negative impact the Karakul Reserve and other Impact that can be sensitive sites, such as nesting areas. mitigated Provide special insulators on electrical power lines to protect raptors. Impact to local flora KGF Area Entire project life Potential minor Setting replanting program with No Significant and fauna negative impact appropriate plants (saxsaul, etc.) and Impact can be wildlife life conservation program (see mitigated Attachment №4) Human Landscape and visual KGF and Entire project life Potential minor Development will include good living No Significant impacts constructed areas negative impact conditions, fenced areas and no Impact can be uncontrolled dump sites. mitigated Project footprint to be as compact as possible Decommissioning Phase Physiochemical Surface Water Water Balance KGF Area After Potential minor Consumption of water will cease Positive decommissioning positive impact Impact
Noise Increasing traffic level Project areas and During Potential minor Adopting International standards on No Significant nearby villagers decommissioning Negative impact occupational Health and safety as well Impact as noise minimization program Blasting and removing KGF Area During Potential minor Blasting may affect bird migration if No Significant concrete infrastructure decommissioning Negative impact done at improper times. Impact Air quality Increasing dust and Project areas and During Potential minor Develop site management program for No Significant air emission level due nearby villagers decommissioning Negative impact dust suppression prior to Impact to the truck decommissioning.
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Potential Impact Duration Impact Potential Impact Impact Areas Required Mitigation Measures Residual and Period Significance Impacts movements, removing infrastructure Biological/Ecological Bird migration KGF Area After Potential minor Restore bird ability to move freely Positive decommissioning positive impact through the project area. Short-term Impact negative impacts possible during infrastructure removal until natural conditions are restored Terrestrial vegetation Project areas After the project Potential Minor Restore original plant communities. Positive and wildlife decommissioning Positive Impact Short-term negative impacts possible Impact during infrastructure removal until natural conditions are restored Endangered species KGF Area After the project No Impact No Significant decommissioning Anticipated Impact Human Employment Project areas and During Potential Minor Creating work and job opportunity Positive nearby villages decommissioning Positive Impact Impact Employment Project areas and After the project Potential Minor none No Significant nearby villages decommissioning Negative Impact Impact Landscape KGF Area After the project Potential Minor Restore/rehabilitate visual landscape Positive decommissioning Positive Impact Impact
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6. Analysis of alternatives
6.1 Selection of preferred alternative 317. National Holding Company (NHC) “Uzbekneftegaz” and other companies including private investors are interested in mining hydrocarbons at a minimum expense of capital and labor. That is why, when selecting location of exploration, probable and discovered reserves, field remoteness from transport communications and processing centers, depth of productive horizons occurrence, well debit, environment and other factors determining labor input and material resources required for hydrocarbons exploration, mining and transportation are taken into account. 318. Thus, oil and gas mining enterprise location depends on location of natural resources and ancillary conditions. 319. Notice, that industrial operation of hydrocarbon fields is divided into three stages: - Period of increasing production during development drilling; - Period of stabilized maximum annual production; - Final period of decreasing (annually) production due to formation energy exhaustion and gradual field reserves mining. 320. Total term of field development varies within 20 and 30 years (sometimes more which is connected with the profile of gas resource and the exploitation technology used). 321. It has taken a long time to develop the KGF because of its remote geographic position which is in hardly accessible zone at a big distance from processing points and raw material realization (Mubarek GPP), presence of high sulfur gas and absence of developed transport and social infrastructure. 322. In RUZ the degree of maturity of many of its fields has reached 50% and more, terms of operation without compressors has come to the end, and difficulties associated with achieved high level of natural gas production in the present fields has becoming to appear. 323. From rational use of mineral wealth point of view, taking into account big reserves, it is necessary to renew industrial development of Kandym field for RUz. 324. Start of project implementation on the KGF commissioning can been achieved by means of attracting foreign investment from international partners as well as utilization of achievements of international technology, science and best practice in field of gas development and environmental management.. Character of planned activity is determined by cooperation with the concerned foreign companies. Means necessary for technical solutions realization in accordance with technological design of development are also mutual between NHC and foreign partner. 325. Technological design of development considers development options with wells location in triangular network with distance between them of 1250, 1500, 1750 and 2000m, from which most preferable option is a network with distance between wells of 2000m. Cluster (multiple/group) drilling is possible. Optimal number of wells is calculated for each network density, for each well network 3 options are considered with differing levels of gas production and initial working well debits. Kandym field options are characterized by different levels of gas production (4.5, 6.0 and 8.0bln. m3/yr, corresponding to 3, 4 and 5 % of gas reserves). 326. Due to different possible options and uncertainty around them it was decided to carry out risk assessment for further economic-statistic analysis. Main risks existing under project implementation are:
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- Risk of not confirming the productivity of the KGF because of poor information about central part of the field (lack of well testing). - Risk resulting from insufficient knowledge of satellites. 327. These risks do not have any fines as possible consequence, as they both are not deriving from Investor’s activities. In case of these risks not achievement of planned production level is possible, that means availability of unequipped capacity and decreasing of Investors profit. 328. After risk assessment, feasibility study and environmental assessment it can be said that most optimal design for KGF is drilling over a network with distance between wells of 2000m with planned level of gas production 8bln.m3/yr including production of 2bln.m3/yr from fields-satellites starting from the fifth year of development of the main field Kandym. Such design solutions population gives maximum technical-economic efficiency and environmental safety of Kandym group of deposits development. The proposed optimal number of project wells location and number (126 units) is dictated mainly by geological conditions. 329. Taking into account that works are performed using modern technology and drilling technique, with duly developed mud solution program of low danger class (4th class), conclusion can be made about absence of extreme impact on environment and significant improvement of social-economic conditions in the region (due to development of transport and social infrastructure; increased employment; increased level of education and medical services of local population, etc.).
6.2 No action alternative 330. The “no action alternative” or no drilling and further development of Kandym group of deposits is not attractive both to entire economy and the oil and gas sector of Uzbekistan. It would lead to lower employment and lower foreign exchange earning and lower GDP Analysis of possible options shows that by adopting established design solutions there will be a low level of environmental impact which will be mitigated to the extent possible. . 331. Notice, that many technical and technologic solutions are similar for all deposits, for instance, regarding well drilling, well arrangement, product collection systems and gas gathering stations, gathering mains, automation, communication, internal power supply, etc. 332. Kandym field (without satellites) where main resources of hydrocarbons and sulfur are concentrated is considered as basic field in all KGF. 333. Kandym, which gas contains hydrogen disulfide, additional processes are necessary for gas desulfurization and sulfur production organization. 334. Technological design of Kandym group of deposits is prepared taking into account of mineral wealth protection and natural resources rational use. Design solutions meet modern environmental requirements and will facilitate full and timely use of hydrocarbon reserves with maximum conservation. 335. Currently in the territory of the RUz the recent years of geological exploration have not lead to discovery of new large gas-condensate deposit. The “no action alternative” or refusal from planned activity for KGF is not tenable for the state. It can be stated that no viable alternative to the KGF development exists. 336. Production objects will be located in desert zone far from settlements, on territory which was not subject before to significant technogenic impact. 337. Gathering stations occupy small land plots. Largest territory will be occupied by gas processing plant and some infrastructure facilities. Location of gathering stations, gas
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processing plants, gas pipelines, auxiliary objects will be specified during detail design of deposit development with account of ecological safety of the region. 338. GPP site is planned with regard to expense minimization for construction of interfiled fed collectors, power transmission line (PTL), automobile roads, railway spur, water supply pipeline and min commercial gas pipeline. Under modern methods of deposit development level of possible environment pollution should not exceed maximum allowable concentrations.
6.3 Alternative to Kandym GPP 339. Alternative to Kandym GPP could be transportation of high sulfurous gas to Mubarek GPP with construction of main gas pipeline. But gas pipeline should pass arable lands of Alat and Karakul district, cross republican level communications (railway, automobile roads, PTL, communication cables, etc.) and water courses (canals, irrigation collectors). It worthy to note, that Mubarek GPP is located in the region with unfavorable ecological situation (more polluted atmospheric air, insufficient treated water facilities). Thus, this option would be beneficial to the Karakul district from an environmental perspective, but not from a socio- economic view. Similarly it would compound environmental problems at Mubarek. 340. Option of gas containing hydrogen disulfide transportation for big distance crossing agricultural lands and engineering structures (railway, automobile roads, etc.) to Mubarek GPP for processing on reconstructed capacities is unsafe and not rational.
6.4 Selection of Final Alternatives 341. During the detailed design phase, locations of production facilities are to be determined on the basis of detailed survey work and engineering and geological studies, as well as the final composition of the designed engineering facilities, which will be the subject of environmental studies at later stages of the EIA procedure. The next (last) stage of the EIA procedure is the development of the Environmental Impact Statement (EIS) for the surface facilities of KGF, including all of its infrastructure facilities and GPP complex. 342. EIS is the final stage of the EIA procedure and is performed at the stage of development of engineering documentation for the facilities. At EIS stage, when detailed design solutions for each facility are developed, environmental regulations (norms of environmental impact) for all projected facilities shall be developed. Environmental regulations include standards for maximum allowable emissions into the atmosphere, permit for special water use, the maximum allowable discharges into water bodies and / or on the surface, the standards of wastes generation and the limits of production and domestic wastes disposal. 343. Moreover, at this stage, the measures on reduction of adverse environmental impact are specified (within established environmental norms); environmental monitoring program is being specified with the substantiation of the observation network. 344. Developed EIS shall pass State Environmental Expertise in the SCNP of the RUz, a positive conclusion of which is required as a regulatory permit for starting of facilities operation.
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7. Disclosure, consultations and participation
7.1 Project design and Preparation 345. In the project designing and preparation period, the Operator held meetings and consultations with all concerned organizations and citizens whose interests will be affected in the KGF development project. It is important to note that the nearest populated areas to the project implementation site are more than 40 km away. 346. Thirty-three meetings were held in April and May 2009, attended by chiefs of Khokimyats, representatives of regional financial, environmental and social agencies, owners of farm enterprises located on or near the Contract Area. 347. The purpose of the meetings was to discuss the implementation of gas processing plant (GPP) construction and associated infrastructure development project. During the meeting, the representatives of Lukoil Uzbekistan Operating Company made a presentation on the proposed project and the offered prospects, as well as the program of activities aimed at mitigation of possible negative consequences for the local population. 348. In the course of the presentation, issues concerning land allocation, procedures for processing of appeals and suggestions, and a number of issues concerning the regional ecological impact of the project were discussed. The prospects of improving social and economic status of the region as a result of a successful project implementation were also addressed. Besides, during the meetings the information was provided on projects (including social and charitable), which have been implemented and are planned for implementation in the Republic of Uzbekistan. 349. Meetings attended by about 46 people were held in Karakul, Alat and Jondor districts. As an example, the meeting held in the Karakul District, was attended by the following persons: Khasanov B. Deputy Khokim of the district, Chairman of the Committee Members: Avezov N. Head of district department of land resources and cadastre Rakhmatov B. Chief Architect of the district Rakhmatov G. Head of interdistrict inspectorate on nature protection Mamirov O. Head physician of district Sanitary & Epidemiological Station Khuseynov S. Head of Fire safety office of the district Department of Internal Bobokulov A. Affairs Tillaev F. Director of state forestry “Karakul” Nurmatov H. Chairman of the cooperative farm “Karakul” Juraev O. Chief of farm enterprise “Khavlon” Bozorov K. Chief of farm enterprise “Ergash Juraev” Khasanov R. Chief of farm enterprise “Khalim bobo Bozorov” Allokov N. Chief of farm enterprise “Maksud Erkin javohiri” Mamatov G. Chief of farm enterprise “Khujamkuli Muhiddin” Shukurov R. Chief of farm enterprise “Gofir Mamat” Abdullaev R. Chief of farm enterprise “Ibrat-91” Chiloyants E.A. Chief of farm enterprise “Abdulla Juma zur chorva” Kurmishev V.N. Director General, LUKOIL Uzbekistan Operating Company LLC Chief Surveyor, LUKOIL Uzbekistan Operating Company LLC
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350. Upon the results of the meetings, having summarized all the proposals and comments, the following decisions were communicated to the consultation participants: - regarding solid domestic waste treatment – the company responsible for such treatment was identified jointly with the local government bodies. The company has experience, personnel, equipment and a specially allocated landfill for waste storage. - regarding drilling waste that will be generated in the drilling process - information was provided that the project implies the temporary storage for keeping and treatment of drilling waste; - regarding the size and procedure for payment of compensations to farms - a decision was made to consult all interests of the farms under the current legislation of the RUz. According to legislation of the RUz, the farms will receive compensations for lands withdrawal at 889445 soum per 1 ha/year (around 593 USD per 1 ha/year) (all payments will be affected by Operator during land withdrawal under the Project).
7.2 Operation 351. At a frequency of once every quarter, under requirements of the laws of the RUz, environmental monitoring will be conducted by the State Specialized Inspectorate for Analytical Monitoring of the State Committee for Nature Conservation of the RUz. The monitoring results will be sent to the units of the State Committee for Nature Conservation of the RUz (including the Bukhara regional Committee for Nature Conservation) and the competent bodies. This information will also be distributed among the population under the company business coverage in mass media.
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8. Procedure for addressing grievances
352. Carrying out its operations on the territory of RUz, the Operator entirely complies with the legislative and regulatory acts adopted by the state bodies. Due to this, all the incoming correspondence is reviewed in full compliance with Law No 1064-XII of the RUz re: “Appeals by Citizens”, as well as under corporate requirements adopted by the Operator. 353. An objective of the Operator is providing for a redress mechanism to avoid potential delays on the commencement of construction works or operation of the Project. The primary objective will always be to prevent grievances rather than going through a redress process. This can be obtained by ensuring full participation and consultation with affected people (AP), nearby communities, and local governments in general. 354. The APs should be aware of the procedures on the resolution of grievances, which the Operator will inform during Project disclosures and public consultations. An important issue here is to establish and maintain a high level of continuity between the public consultation and project disclosure program which will include briefing on grievance redress, the recording and management of specific cases and the more general project-wide monitoring and evaluation (M&E) provision. 355. Grievances lodged by an AP can relate to any aspect of the Project. A grievance redress mechanism for conflict resolution will be part of the institutional and implementation process. The focal point will be the Operator’s local project office. An officer there will receive training in the management of the grievance procedure. 356. At field level a community complaints-management register (CCMR) will be maintained of all grievances related to social or environmental issues. This will help ensure that complaints are appropriately redressed by the Operator. 357. Affected communities and their representatives will be identified during the project preparation stage. Operator’s officers will visit each community once a quarter, in the course of 3 years while each office will maintain a record of these visits (date visited, persons met, issues discussed and complaints bought forward) using the CCMR. 358. The Project office will work towards resolving the grievances recorded in the CCMR as follows: Under Article 18 No 1064-XII, all citizens' appeals in writing, containing the data on its proposer, shall be reviewed within one month period from the date of receipt, except for such appeals that require more detailed analysis, and the proposer is informed about such case within ten days. Anonymous appeals will not be reviewed. All appeals from individuals or legal entities are to be reviewed at the Corporate records Department and are further transferred to the Company executive, who makes an order on their execution and appoints the person in charge. Requests and grievances are handled within a month from the date of receipt by the Operator. The requests and grievances that do not require additional review and checks are addressed within the deadlines not longer than fifteen days. When handling a request of a grievance requires checks, requesting for additional information or taking other steps, the deadlines for handling the requests or grievances may be extended, as exceptions, by the Operator CEO but not longer than a month, the applicant who filed this request or grievance being notified. In all cases, the latter’s response will be formally communicated to the complainant in writing.
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359. The CCMR will be periodically (at least quarter) reviewed at a high-level management meeting at the Operator’s Project office, and the necessary actions will be taken to redress outstanding issues as soon as possible, with a formal response communicated to the complainant in writing. Any observations made by Local NGOs and CBOs will also taken into consideration in the redress process. 360. APs who are not satisfied with the resolution of their grievances using this procedure have a right to bring the grievance to the attention of the appropriate government agencies or the courts in accordance with the provisions of the Law.
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9. Environmental Management Plan (EMP)
361. In 2004 Operator became ISO 14001 and OHSAS 18001 certified. These international environmental health and safety standards already cover in general the mitigation measures and procedures presented below. 362. According to international standards Operator has implemented an Integrated Environmental Management System which includes an environmental policy together with monitoring, auditing, planning, action and reporting procedures.
9.1 Mitigation measures 363. During project realization continuous control and implementation of nature- conservative measures, decreasing impact to objects of environment (OE), will be one of the key aspects within EMP framework. 364. Main flow processes will have continuous and direct character of impact to OE connected with chemicals emission to the atmosphere, water resources consumption, formation of liquid and solid wastes, noise and vibration level near production sites, soil and vegetation cover destruction and influence on existing natural biocenoses. 365. In the stage of environmental assessment (being a part of EIA), parameters of environmental impact (such as air emissions, wastes, discharges, noise exposure, etc.) were defined as moderate. Maximum estimate indicators of environmental impact do not exceed the norms in the Republic of Uzbekistan. 366. There will be definite degree of impact on OE during construction works (including operation wells construction), but taking into account short-term character of impact on the atmosphere during construction works, there will not be OE dramatic changes. 367. Main nature-conservative measure, which minimizes impact to OE (including atmospheric air, water, soil etc.) during project implementation, is selection of equipment and technological processes, that allow to increase extraction of all valuable and possible components of raw materials (well production) – organization of low waste production cycle. 368. Besides, on each stage of project implementation detail plan of organization-technical measures is developed with purpose of regulation and management of environmental impact. This plan includes nature-conservative measures, personal responsibility, recourses and schedule. 369. Jointly with territorial body of SCNP of RUz, on each stage of project implementation, an annual plan of nature protection and rational use of natural resources is developed. These plans are based on expert advice and recommendations of SCNP of RUz, which were given at the State Environmental Impact Assessment stage. Implementation of all management measures presented in these plans is coordinated by this territorial body of SCNP of RUz. 370. Control of EMP implementation is performed on a quarterly basis with the results obtained by the Operator in coordination with State Committee for Environmental Protection of the RUz. 371. Additionally, jointly with Authorized Body an HSE program is developed. HSE program includes the health, safety and nature protection measures related to implemented projects. This program is elaborated in accordance with two earlier described mechanisms of EMP (plans of organization-technical measures and plans of environment protection and rational use of natural resources) and includes operative initiatives of Authorized Body, which do not control this matter directly but facilitate increase of industrial safety and health level within the Contract Area.
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372. All above plans/programs include specific measures of environmental management, provide technologic, technical, managerial solutions and the scientific assessment and analysis of optimal scenario of planned activity. For each measure specific term of fulfillment is established associated with current project implementation strategy, specific persons are appointed responsible for effective realization of this measure as a well as cost of its realization.
9.2 Monitoring 373. In accordance with decisions of the Government of the RUz (Decrees of the Cabinet of Ministers of the RUz No.11 dated 03.04.2002 and No.16 dated 13.01.2003), state environmental monitoring system is functioning. Monitoring is a complicated system having many independent directions (on main environments, types of natural resources, observation (calculation) character). Presently, in the RUz rather developed system of environmental monitoring is functioning, which is unified into single State environmental monitoring (SEM). 374. State Environmental Monitoring (SEM) organization and functioning in the RUz are determined by appropriate normative base. In accordance with Provision on SEM, the following organizations are responsible for conducting monitoring: State Committee for Nature Protection (SCNP) – monitoring of sources of pollution and land ecosystems; Centre of Hydrometeorology Service (Uzhydroromet) – monitoring of atmosphere, surface water and soil pollution, background and hydrometeorology monitoring; Ministry of Agriculture and Water Resources – monitoring of drainage effluent and irrigation water; Sate Committee of Land Resources, Geodesy, cartography and land cadastre (Goskomgeodezkadastr) – monitoring of land resources; State Committee of Geology and Mineral Resources — monitoring of groundwater and dangerous geologic processes; Ministry of Public Health – sanitary-epidemiologic environment monitoring. 375. General coordination of ministries, agencies and economic management bodies activity coordination in the area of state environmental monitoring is performed by SCNP of the RUz. Responsible organizations involved in environmental monitoring, have appropriate material-technical base, network of observation stations and trained personnel. 376. Organization whose activity can lead to environment worsening carries out monitoring of environment and natural resources utilization - Production and Ecological Monitoring (PEM). PEM root principles are oriented to indicators of diagnosis and early warning about environmental trouble, normative and standard requirements observance by subjects of economic activity. PEM is carried out with purpose to provide observations, account, assessment and forecast of environment and its resources state within the Contract Area and is one of the main EMP components (as a preventive nature-conservative measure). The following tasks are fulfilled during PEM implementation: observation of environment state and its changes under influence of economic activity; checking programs and separate measures fulfillment envisaged by EMP, environment rehabilitation, observance of nature protection legislation and environmental quality normative; timely revelation and prediction of natural and technogenic processes development, which influence environment within the Contract Area;
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establishing information base necessary for measures to be undertaken to provide environmental safety of personnel within the Contract Area. 377. Above tasks are accomplished by means of regular data collection relating to environment components’ pollution level, integrated analysis of these data regarding ecologic norm observance, provided by existing legislation, and environmental assessment within the Contract Area. 378. PEM organization and conduct is the responsibility of Organization of economic and other activity and its observation network covers production site, enterprise sanitary- protected zone and adjacent residential areas, specially protected natural objects and recreation zones. PEM implementation is performed on the base of specially developed program determining observation network distribution, sampling intervals, list of control indicators, routing investigation character and composition of reporting with account of technologic peculiarities of planned production and predicted level of impact on environment components. 379. PEM should be integrated i.e. observations should be carried out for all environment components: atmospheric air, surface and ground water, geologic environment, soils, radioactive situation, flora and fauna as well as all types of wastes resulting from planned activity. Observation system is established and starts functioning before preparatory works. Observation of this early stage are necessary to fix ecosystem state before intensive machinery work in order to have initial starting points during interpretation of obtained observation results at the next stages of construction project implementation and its operation. 380. PEM during operation period is carried out over developed system of fixed points (sampling) and traced routes (vegetation, wild life). Under normal operation all observations are conducted in accordance with existing methodology and regulated frequency and analytical investigations – in accredited laboratories having appropriate certificates. 381. PEM procedure is carried out by Operator continuously since the Oil-and-Gas Operations (like seismic exploration and workover of historical wells) at the KGF started (2005). PEM mechanisms are continuously improved together with concerned state organizations. 382. The principal scheme of PEM implementation by Operator is as follows: 1. Program is being developed on annual basis with regard to current plans of project implementation and EMP measures and in accordance with standards of the RUz in sphere of production control and environment monitoring. 2. Program coordination with SCNP of the RUz and authorized body on project implementation and project description distribution among local subdivisions. 3. Conclusion of contracts on PEM conduction and working group establishing from qualified specialists of appropriate accredited laboratories (having appropriate state certificates). PEM implementation by Operator is performed with involvement of the State Specialized Inspection of Analytical Control (SSIAC) belong to of SCNP of the RUz, Gosbiocontrol, Ministry of Public Health of the RUz and others. 4. Field investigations consisting of visual observations, operating measurement of environmental parameters, routing biotope account, sampling and samples conservation. 5. Laboratory analyses of atmospheric air, surface and ground water, soils and grounds, plant and animals tissue. 6. Preparation of intermediate reports on PEM results including information about state of environment components.
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7. Definition of factors, if necessary, of environment pollution, operative elaboration and implementation of corrective measures. 8. Drafting annual report and its coordination with SCNP of RUz. Report submission for consideration to regional subdivisions and authorized body. 9. Development of PEM strategy for forthcoming period.
9.3 Implementation methods and efficiency indicators 383. As mentioned above, PEM mechanisms implementation is performed within the framework of several programs: Plan of administrative and technical measures (annual) (Attachment No.6); Plan of nature protection and rational use of natural resources (annual) (Attachment No.7); Program of health, safety and environment protection (triennial) (Attachment No.8). 384. Besides these, more detailed EMP is performed within the framework of local production programs: program of drinking and waste water quality control; program of working zones’ air control; plan-schedule of production and consumption waste collection and utilization; regulation of liquid and solid wastes reuse with purpose of rational use of natural resources; plans of internal environmental control during works including subcontractors; 385. All above programs have own schedules, allocated material and labor resources, persons responsible for implementation, strategy of specialized services attraction to strengthen EMP potential. 386. All programs have own efficiency indicators, analysis of program realization is continuous with obligatory documentation of intermediate and final results. Program realization is assessed based on final result, timely completion and expenses made. End indicators of program efficiency are as follows: maintaining level of impact to EP within established norms; absence of incidents/accidents with environmental consequences; absence of appeals from state control bodies in field of environmental violations; approval of carried out ecologic policy from concerned persons and community. 387. Specific examples of such plan/program and results of its implementation within the Contract Area is presented as separate document (Attachment No.9).
9.4 EMP budget 388. The measures specified in the EMP have been included in the Operator’s Action Plans and Programs for health, safety and environment (See Attachments 6 and 7). 389. The budgets for the years 2010 to 2012 are shown in Table 10.
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Table 10. Operator's EMP budget for 2010-2012 Costs, USD mln Activities year 2010 year 2011 year 2012 Total Health, Safety 2.138 2.44 2.424 7.002 Environment 0.866 0.944 1.013 2.823 Social, Medical 0.919 1.579 1.685 4.183 Total 3.923 4.963 5.122 14.008
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10. Conclusions and recommendations
390. This environment impact assessment consists of analysis of project design on development and operation of the KGF, Kandym Gas processing plant and its infrastructure in Karakul District of Bukhara Province of the RUz with natural gas production capacity up to 8 billion.m3/annum.
10.1 EIA Process 391. The environmental impact assessment of the proposed activity has been conducted in compliance with the current laws and regulatory system of the RUz and based on the results of researches and studies of environmental, economic, social and administrative aspects, as well as on analysis of the existing condition and specific characteristics of the environment in the area of the proposed activity. 392. The baseline social and economic conditions in Karakul District, as well as social and economic aspects, related to development and performance of works on gas processing at the KGF have been considered. 393. The principal design projects have been analyzed (normally, as per existing productions), the potential sources of impact, type and specifications of impact, as well as objects of impact with regards to environment (including social and economic consequences) have been identified. 394. Alternative options of projected activities and process solutions have been considered. 395. The existing hazards caused by the proposed activity, both to operational personnel and population, and to the environment have been described; measures on prevention from potential adverse impacts to the environment have been outlined as well. 396. The forecast of potential effect of the proposed works to the condition of atmosphere, soil, underground and surface waters, flora and fauna as well as to the operational personnel has been developed. 397. Consultations were held with local government officials and nearby residents to provide information and viewpoints regarding the Project. 398. In general, the assessment of the impact to environment of important components of KGF has been outlined in the work; residual environmental effects have been identified; the assessment of social and economic changes have been introduced. 399. Considering the current stage of designing and difficulty to research accurately project designs at this stage in full, it is required to continue performing this work on other stages as well, specifically the EIS stage.
10.2 Results 400. The following conclusions are drawn: the implementation of the project is directed to maintain security in supplying gas and liquid hydrocarbon for the country; the objective of the project is to increase the production of hydrocarbons, to increase extraction of valuable components and deep gas refining without significant increase of development pressure to environment;
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the implementation of the project, will strive to avoid resettlement, include the employment of local people, create convenient living and working conditions for operational personnel and minimize the environmental impact; the risk of emergency situations resulting in considerable negative environmental or social consequences is not significant. 401. Therefore, the key conclusion is that the implementation of the projected activities will not affect the environment with long-lasting harmful consequences, provided that operational instructions, safety procedures, environmental measures are performed and observed as discussed in the Impact Matrix (Table 9) and the EMP. 402. State Environmental Impact Assessment of the project has shown their compliance with regulatory documents (Attachment 1). Proposed measures on decrease of negative impacts to the environment and rational use of natural resources are in compliance with proposed project. 403. In the following development stages it is required to specify parameters of impact to environment, to develop detailed maximum permissible requirements of impact, to continue development of environmental protection measures and performance of environmental monitoring and control.
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/State emblem of the Republic of Uzbekistan/ STATE COMMITTEE FOR NATURE PROTECTION OF THE REPUBLIC OF UZBEKISTAN
99, A. Temur Street, Tashkent, 700084 tel.: 135 18 65, fax: 135 07 61
February 22, 2007 # 18/51z
Ref. to # 917-006 dated 01.02. 2007
C O N C L U S I O N of the State Environmental Expertise Committee
Project: EIA of the GPP complex construction and Kandym group of fields development (EIA statement draft) Customer: LUOC Developer: J/V “NE3FTEGAZTEХNOLOGIYA”
To : General Director of LUOC
S.U. NIKIFOROV Copy: General Director of J/V Neftegaztexnologiya” D.K. OKHUNOV Chairman, Bukharaoblkompriroda A.B. NIYAZOV
The first stage of the Environmental Impact Assessment of the construction of the gas- processing plant (GPP) complex and the development of the Kandym Group (Kandym, Akkum, Parsankul, Kuvachi-Alat, Khodji, Western Khodji) located in the territory of the Karakul area of the Bukhara region was presented for the Environment impact assessment.
It is provided for by the project to develop the production wells, multiple well platforms, gathering stations, field pipeline transfers, the construction of the gas-processing plant, gas-maim pipelines, and infrastructure facilities, The estimated capacity of the gas production field and the GPP is planned to reach up to 8 milliard m3/year in terms of the natural gas and more than 200 thousand ton / year in terms of gas condensate. 126 production wells are planned to be drilled.
The prospecting works for revelation of the hydrocarbon raw material stocks at the deposits of the Kandym group started in 1960-1963. The total volume of prospected stocks approved by State Reserves Committee constitute 248,788 milliard m3, including those at the deposit of the Kandym – 172,253 milliard m3. The gas gathering system under project will be consisted of the sites of the production wells connected with a multiple well platform which in heir tern will be connected with gathering station. It is supposed that the wells will be equipped with similar-in-configuration equipment including underground (operational packer, reducing taper elbows, couplings, and landing nipples) structures and ground (control head) structures. A 10 meter high fuel spray is envisaged (for periodical well blowing out 1-2 times a year) to be located at approximately 100 meters from the wellhead. The sulphuric dioxide gas coming from the wells will be restricted by a connecting pipe up to the value of 9 MPa, and with the temperature of 33-340C fed, through aprons, towards the multiple well platform into the block of entering threads.
To connect the wells with cluster points and gas collecting stations, a number of flow lines are planned to be laid in total of 208 kilometers and connecting gas pipelines from the multiple-well platforms up to the gathering station of more than 146 km. A collector-radial system is envisaged to be arranged in the project to gather gas from the wells. The gas-collecting system of the Kandym block includes five gathering stations which will receive products from 126 wells. All the hydrocarbons, excluding those burned in flares and discharged into the subsurface drainage system, will be unified at the output of the gathering station and fed towards the GPP for processing and stabilization. The initial preparation of the product (mainly moisture separation), will take place at the gathering stations. Then the fluids, through the gas mains, are fed to the GPP which is located at the center of the gathering stations with the distance of 15-20 kilometers from each of them. The GPP is designed to prepare and process the unstripped gas with the purpose of obtaining product (saleable natural gas, stable condensate, liquefied gas, and saleable sulphur). The following process blocks in the framework of the GPP have been provided for in the project: a general receiving module; general structures for condensate stabilization; three process lines for cleaning the gas from acid gases, with a productivity of 8.5 million m3/day for gas; three process lines for drying the gas with a productivity of 8.5 million m3/day; three LTS (low temperature separation) process lines with a productivity of up to 8.5 million m3/day and three lines for sulphur production with a productivity of 195 ton/day for incoming sulphur.
Having reached the GPP, the raw mixture will be divided in a three-phase separator into individual phases: gas, liquid hydrocarbons and water. The condensate and formation water will be separated from the general stream of the liquid gas. The separated sulphur-containing gas will be supplied to the installations where the gas is cleaned from the acid gas. The separated water goes to the formation water processing system. The gases taken out from the upper part of the receiving module will be fed to the receiving separators, the separated liquid – towards the condensate separator. The formation condensate will be mixed with the condensate which after being processed comes from the Pumping/Heating station, as well as from other GPP-located separators. Then the mixed flux will be fed to a condensate stabilizing installation where butane and other more light gases are separated. The gas diverted through the upper part of the gas stabilization and condensate separator column is moving to a compressor via a receiving separator where it is cooled with its pressure reaching the value of 6.55 MPa and then it is fed to an acid component separating unit which removes hydrogen sulphide, carbonic oxide and carbon dioxide by means of chemical absorption. The cleaned gas coming out from the above- mentioned unit will have to meat the requirements of saleable gas specifications in terms of hydrogen sulphide content, that is, not more 0.007 g/m3. The separated acid gases will be fed to an installation where elementary sulphur is produced.
The acid gas processing installation with the production of sulphur includes a section for sulphur separation by using Claus process, a receiving bunker with degasation and a thermal oxidizer (re-heating furnace). The basis of the sulphur production technology is incomplete burning of sulphur with three subsequent stages of catalyzing reaction in the Claus reactor and one reaction stage in the superclaus reactor where a selective oxidation of hydrogen sulphide with sulphur formation takes place. The gas coming out from the reactor goes to a sulphur condenser. In order to provide a maximum concentration of sulphur vapors, the superclaus condenser operates under a low temperature. Liquid sulphur comes from the condenser into the bunker. The sulphur obtained contains hydrogen sulphide the amount of which is supposed to be lowered by degasation in bubble columns with use of air. The degasified sulphur is pumped to the devices of liquid sulphur removal and to a granulation installation. Lump sulphur will be produced at the storehouse when piles of cold sulphur are developed. Motortrucks are supposed to be used for loading sulphur into gondola cars. Granulated sulphur will be produced from liquid sulphur by a ROTOFORM method on the Sandwick bands, and then it is supplied to customers through a storehouse.
The production and processing of hydrocarbon raw materials involves emissions into the atmosphere, effluent and waste product formation. The main sources of air contamination will be considered to be the process equipment necessary for sulphur production, gas-pumping units, and the gas generators of power station, steam boilers and the low and high pressure flares, and, in perspective, the smokestacks of booster compression station. It is predicted that the total amount of contamination substances thrown out into the atmosphere constitutes 12,509.3 ton/year among which 90.4% are hydrocarbons, carbonic oxide and sulphur oxide. Calculations of maximal concentrations formed by emissions from the sources of the enterprise under design, revealed an excess of established standards (quotas) beyond the industrial territory of the GPP as to nitric oxide (0.57 of the maximum permissible concentration (MPC)) and nitrogen dioxide ( 0.73 MPC) No excess was revealed with respect to other ingredients At the sites of the wells, gathering point, GPF and GPP it is planned to install stationary inspection sensors for monitoring the composition of surface air for major ingredients: hydrogen sulphide, sulphur dioxide, mercaptans, nitrogen and carbon oxides, methane. As a source of drinking water supply it is supposed to use the Yamandjar canal from which water will be delivered into the accumulating reservoir with a volume of 120 thousand m3 and further to water treating facilities where filtration, clarification, cleaning and neutralization take place.
As a source of production water supply, it is planned to use a head discharge canal which water, on separate lines of GPP water treating facilities, undergo chemical clearing, coagulation and mechanical filtration. Then one part of the flux is used for production-firefighting needs and the other part is fed to the water/chemical cleaning unit which serves the boiler house. The project is supposed to envisage a circulating water supply at an approximate volume of 85,034.4 thousand m3/year for mainline production and 116 thousand m3/year for accessory needs. Production waste waters are formed from the operation of boiler-houses, condensate facilities, the blowing of heat-recovery boilers and reactor-generators, the drainage tanks of the sulphur cleaning and gas drying units, for equipment wash. An approximate total volume of waste waters will constitute 706.04 thousand m3/year. The waste waters undergo cleaning from suspended particles, oil products and then are fed together with cleared, chemically contaminated effluents (formation water, boiler-house effluents etc.) to an installation for pumping them into the stratum. The household sewage after being completely biologically treated, deeply purified and disinfected, will be fed to the system of production water supply for repeated use.
The major waste of the mining part of the gas production will be detritus which includes the mixture of mechanical impurities, water and gas condensate. Wastes will be formed during the cleaning of the gas pipeline 2 times a year and collected in a special reservoir. It is believed that during GPP operation, the wastes will obtain the form of used activated carbon, molecular sieves, filter-cartons, catalyzes, turbine oil. The detritus is planned to be discharged at the toxic waste polygon to be located at the Khauzak-Shady deposit. The used oil will be delivered to special enterprises for further processing. The way of utilization of the rest wastes has not been determined yet.
The highest ecological hazard at the realization of the project proposal is believed to be at the gas-main pipelines and distribution gas pipelines when liquid sulphur is transported in cisterns.
As a most possible accidental situation a scenario was considered, where the equipment failures the seal with the subsequent fire and explosion. Ecological evaluation of such accidental situation subsequences has not been made. In order to decrease a possibility of emergency losses there was stipulated an automatic regulation, pressure alarm at the major process lines. In case of emergency situation at a gas pipeline, it is stipulated to automatically cut off a part of the pipeline at the nearest tap valves. If an accident takes place at the GPP, an automatic device is supposed to be activated which prevents the supply of gas to the plant.
Measures have been developed in the Project which includes works for engineering and biological recultivation with the purpose of restoring the soil fertility exposed to the detrimental action of building machinery and vehicles. The second part of the recultivation envisages for forestation in two rows. It is supposed to use plants, grasses and bushes of local originality with consideration of their gas resistant ability.
It is also necessary to work out measures for preservation of plants and animals entered into the Red Book.
The ecological expertise has shown that the Project corresponds to the statutory document requirements for the first stage of environmental impact assessment. The organization of the complex for mining and processing of the hydrocarbon raw materials envisages for the rational use of natural resources and the measures for minimization negative ecological impact. Before the facilities of the Project are put in commission, it is required to develop an Environmental Impact Statement (EIS) individually for the production complex and for the processing complex, which should stipulate a presentation of draft ecological guidelines for all types of the environmental impacts; an ecological evaluation of the results of accidents and efficient steps for prevention of their nonreversible aftermaths, as well as a substantiated system of monitoring the state of the environmental components which undergo most detrimental effect of the production under project.
The State Environmental Impact Assessment of the State Committee of Nature Protection of the Republic of Uzbekistan shall co-ordinate the above-mentioned EIS of the construction of the Complex of the Gas Processing Plant (GPP) and the development of the Kandym Group (Kandym, Akkum, Parsankul, Kuvachi-Alat, Khodji, Western Khodji) located in the territory of the Karakul area of the Bukhara region.
The Bukhara Regional Committee of nature protection should take over its control of the observance of the environmental legislation when the Project of the construction of the Complex of the Gas Processing Plant (GPP) and the development of the Kandym Group (Kandym, Akkum, Parsankul, Kuvachi-Alat, Khodji, and Western Khodji) is realized.
ACTING FIRST DEPUTY CHAIRMAN signature R. KHABIROV Round seal
Attachment No.2 KANDYM GROUP OF FIELDS (existing conditions)
PARSANKUL field REPUBLIC OF UZBEKISTAN Bukhara Region WESTERN KHOJI field (AREA OF WELL 14) Karakul District
AKKUM field
KHOJI field
WESTERN KHOJI field
VICINITY MAP
Fragment of space photograph of the Kandym Group of Fields
K A N D Y M f i e l d
LEGEND same as on the next page
KUVACHI ALAT field
KANDYM GROUP OF FIELDS (proposed development) PARSANKUL field REPUBLIC OF UZBEKISTAN
PARSANKUL field Gathering Station SP-3 Bukhara Region WESTERN KHOJI field (AREA OF WELL 14) Karakul District
AKKUM field
KHOJI field Gathering Station SP-4
WESTERN KHOJI field
VICINITY MAP R E P U B L I C O F U Z B E K I S T A N
PARSANKUL field Fragment of space photograph of the Kandym Group of Fields
WESTERN K.HOJI field well 14 AKKUM field
WESTERN K.HOJI field KHOJI field GPP
Gathering Station SP-2
KANDYM field K A N D Y M f i e l d
KUVACHI-ALAT field
T U R K M E N I S T A N
Gathering Station SP-1 MIRZAKALA
LEGEND SETTLEMENTS HYDROGRAPHY Areas of water bodies Developed areas JIGACHI Rivers, brooks and canals with width up to 3 m Stand-alone buildings Rivers, brooks and canals with width from 3 to 5 m Destroyed and dilapidated buildings KUVVACHA Intermittent rivers and brooks with width up to 3 m Cemeteries Intermittent rivers and brooks, width from 3 to 5 m INDUSTRIAL, AGRICULTURAL AND Uncertain shore lines (of rivers, lakes) REPUBLIC OF UZBEKISTAN SOCIAL AND CULTURAL FACILITIES VEGETATION Steep shores, without beach Boreholes, production wells, their names Continuous scrubs WATERWORKS AND WATER TRANSPORT TURKMENISTAN Underground pipelines FACILITIES Continuous saxaul shrubbery Power lines on steel and reinforced-concrete Rivers, canals or ditches passing in culvert Semibushes towers (trusses, poles 14 m and higher) Gathering Station SP-5 Aqueduct Fruit gardens
Power lines on wooden and concrete poles WATER SUPPLY FACILITIES Tillage, vegetable gardens (farm) (lower than 14 m in height) Manholes Contours of plant cover and grounds Transformer vaults Water wells FRONTIERS AND BOUNDARIES Farmyards BRIDGES AND CROSSINGS Separate groups of saxaul KUVACHI ALAT field State frontiers MOTOR ROADS AND EARTH ROADS, Bridges more than 60 m in length Meadow vegetation Masonry, brick walls and STREETS Bridges less than 60 m in length Separate trees metal fences Bridges less than 3 m in length Wooden fences and Highway SOILS Culverts (conduits) under roads other light fences
Improved earth roads Sands RELIEF Boundaries of mineral Takyr deposits (fields) Neftegazgeodezia Rural earth roads Benchmarks Clayey surfaces Barrows and hillocks NOTE: Field and forest roads Alkali soil, passable Pits The state frontier is applied according to Streets in settlements Natural origin pits Alkali soil, impassable cartographic data of 1988 edition Attachment No.3
Attachment No.4
Handbook of the existing rare and endemic species of plants and animals in Khauzak-Shady and Kandym Group of Fields (Bukhara region)
The territory of sites of Khauzak-Shady and Kandym Group of Fields situated in Alat and Karakul Districts, Bukhara Region, represents mainly semi-stabilized and sand ridges and dunes.
The nature of the soil and its moisture retention degree determine the development of vegetation mantle due to which the sandy territories of these Contract Areas are poor in terms of plant life. Haloxylon (picture 1), several kinds of suzerain and kandym are widely spread on sandy parts with cherkez, sandhill wattle, astragalus added.
The plant life of sites of Khauzak- Shady and Kandym Group of Fields represents 13 endemic and 14 rare and Pic. 1 The White Haloxylon 19 low population plants of which 3 species are entered in the Red Data Book of the Republic of Uzbekistan: Calligonum palefzkianum, Calligonum molle, Calligonum matteianum. All of them come under the genus Calligonum – Jezgun (Pic. 2).
Pic. 2 Jezgun
The animal life of the areas of Khauzak-Shady and Kandym Group of Fields represents 27 species of mammals, 17 species of reptiles, over 160 species of birds.
Out of the listed species: 3 species of mammals (pic. 3), 24 species of birds, 2 species of reptiles and 7 species of arthropods are entered in the Red Data Book of the Republic of Uzbekistan.
The long-legged The free-tailed The goitered gazelle hedgehog(bald) barbastelle Pic. 3. The mammals entered in the Red Data Book of the Republic of Uzbekistan
It has to be specifically noted that the goitered gazelle (Gazella subgutturosa) previously widely inhabited the deserts of the Contract Area. The intensive development of the desert lands and livestock breeding as well as poachers resulted in the situation where the goitered gazelle has become the rare species and been entered in the Red Data Book of the Republic of Uzbekistan.
Some mammals widely inhabiting the Contract Area come under the low population and rare species (Pic. 4).
The Liechtenstein The comb-toed jerboa The swamp lynx or jerboa chaus Pic. 4 Low population and rare species
During the migration seasons, the birds entered in the Red Data Book, the IUCN Red List, in Annexes I and II of Convention on international trade in endangered species of wild flora and fauna (CITES) are observed in the Denghizkul Lake, of which are:
The European pelican, close to the vulnerable, small population bird of passage entered in the Red Data Book.
The little egret entered in the Red Data Book of the Republic of Uzbekistan.
The Dalmatian pelican, the rare low population species entered in the Red Data Book of the Republic of Uzbekistan and in the CITES Annex I.
The little cormorant, the vulnerable visitant bird, a nesting species entered in the Red Data Book of the Republic of Uzbekistan, and in the IUCN Red List.
The mute swan, the visitant bird entered in the Red Data Book of the Republic of Uzbekistan.
The whooping swan, a visitant species entered in the Red Data Book of the Republic of Uzbekistan. .
The lesser white-fronted goose, a rare visitant species entered in the Red Data Book of the Republic of Uzbekistan.
The spoonbill, a vulnerable, - decreasing species, entered in the Red Data Book of the Republic of Uzbekistan and in CITES Annex II.
The red-breasted goose, a rare visitant species entered in the Red Data Book of the Republic of Uzbekistan.
The white-headed duck, an endangered species, entered in the Red Data Book of the Republic of Uzbekistan, in the IUCN Red List, CITES Annex II. .
The marbled duck, an endangered visitant species entered in the Red Data Book of the Republic of Uzbekistan, in the IUCN Red List.
The white-tailed eagle, a rare visitant species entered in the Red Data Book of the Republic of Uzbekistan, in the IUCN Red List, in CITES Annex I. .
The pale harrier a vulnerable visitant species entered in the Red Data Book of the Republic of Uzbekistan, in the IUCN Red List, in CITES Annex II.
The saker falcon, a vulnerable nesting visitant species entered in CITES Annex II.
Migratory birds are also observed: The white-eyed pochard, entered in the Red Data Book of the Republic of Uzbekistan, in the IUCN Red List; The Pallas' sea eagle, an endangered migratory bird entered in the Red Data Book of the Republic of Uzbekistan, in the IUCN Red List, in CITES Annex II; The steppe eagle, a vulnerable visitant species entered in the Red Data Book of the Republic of Uzbekistan, in CITES Annex II; The imperial eagle, a vulnerable, visitant bird entered in the Red Data Book and in CITES Annex II; Mac-Queen's bustard, entered in the Red Data Book of the Republic of Uzbekistan; and non-migratory species: The asiatic white crane, entered in the Red Data Book of the Republic of Uzbekistan, in the IUCN Red List; The Zarafshan pheasant, a non-migratory subspecies entered in the Red Data Book of the Republic of Uzbekistan; The pin-tailed sand grouse, a rare nesting species entered in the Red Data Book.
Entered in the Red Data Book of the Republic of Uzbekistan and the CITES Annexes are such previously widely spread reptiles as the Central Asian tortoise, the sand toad agama, the desert monitor (Pic. 5), the Central Asia cobra. Pic. 5. The desert monitor
On the territories of the Contract Areas, there is one environmentally protected site: Denghizkul state wildlife sanctuary, in which, as per their status, wildlife and their habitat are under protection. Under the Law of the Republic of Uzbekistan re: “The Protected Wildlife Territories”, the state wildlife sanctuaries are protected territories on which all types of human activities are prohibited, but researches, recreation activities, environmental monitoring, as well as farming for the citizens’ needs residing in these areas which may cause damage to certain nature sites and complexes.
The Denghizkul Wild Bird Life Sanctuary (Khauzak-Shady Contract Area) has been created to protect and to provide for breeding of migratory water fowl. On the territory of the sanctuary, every year, hundreds of thousands of water and semi-aquatic fowl, including the species entered in the Red Data Book of the Republic of Uzbekistan take rest, viz.: pelicans, spoonbills, little cormorants, etc. The Denghizkul Lake is the largest wintering site of water fowl in the Republic of Uzbekistan. The main species wintering here are bald-coots and diving-ducks.
Any human activity that may alter the Denghizkul Lake environment and ecosystem and the adjacent territories is prohibited.
The Republic of Uzbekistan has joined a number of international Conventions on protection and rational use of bio- resources, viz.: The Convention on Bio-Diversity, Convention on the Wetlands of International Importance Especially as Wildlife Habitat (Ramsar); Convention on Protection of Migratory Animals (Bonn); Agreement on Protection of Afro-Asian Migratory Wetland Fowl; the Convention on International Trade in Endangered Species of World Fauna and Flora (CITES).
All these documents declare the need to maintain the population and species diversity of animal and plant life for further sustainable development of the planets’ ecosystem. It has to be kept in mind that according to the laws of the Republic of Uzbekistan:
«… the plant and animal life shall be the public assets – the national wealth and subject to rational exploitation and protected by the state …»; «… it shall be prohibited to harvest and collect rare and endangered species of plants and animals entered in the Red Data Book of the Republic of Uzbekistan …»; «… unlawfully hunted components of the animal life, products made from them, weapons and means of hunting including vehicles shall be subject to seizure or confiscation in the manner stipulated in the laws … in case it is impossible to recover the unlawfully hunted animals and products made from them, the culprits shall be fined the value in the amounts and in the manner stipulated by the laws …»; «… any person found in breach of the laws of nature conservation and exploitation of plant and animal life shall be duly liable. …»; «… legal entities and individuals are bound to compensate for the damage caused by violating … compensation for damage shall not exempt from liability …»
Remember that we all bear the great responsibility of handing down to our generations the natural heritage as diverse and sustainable ecosystem. Attachment No.5
State emblem of Republic of Uzbekistan
STATE COMMITTEE FOR NATURE PROTECTION OF THE REPUBLIC OF UZBEKISTAN 700084, 99, A.Temur str., Tashkent; tel.: 135-18-65; 135-16-65; Fax: 135-07-61
Date: April 21, 2005
Ref. No 18.126z
In reply to Ref. No 62 dtd 08.04.2005
To: A.G.HANLAROV, Director, Baku Branch, LUKOIL-Volgograd-NIPImorneft.
CONCLUSION of State Environmental Expertise Commission
Project: “Report on Environmental Audit of the Contract Area consisting of: the Kandym Group of Fields, Khauzak-Shady Site and Kungrad Site” (draft)
Customer: Baku Branch, LUKOIL-Volgograd-NIPImorneft
A Report on Environmental Assessment of the Contract Area consisting of: the Kandym Group of Fields, Khauzak-Shady sites as well as Kungrad site by the Baku Branch, LUKOIL- Volgograd-NIPImorneft with participation of State specialized inspection of analytical control and the State Biological Monitoring Inspectorate of the State Committee of the Republic of Uzbekistan for Nature Protection, the Special Design Bureau with Experimental Plant of the Institute of Nuclear Physics of the Academy of Sciences of the Republic of Uzbekistan, the Environmental Survey Expedition of Complex Geological Exploration and Survey Department of AzNeft Production Enterprise.
The work has been carried out per EIA Program agreed to by the State Committee of Uzbekistan for Nature Protection (Letter ref. No 18-1025 dated 28.10.2004).
The Contract Area EA Report has been provided in three books.
Book 1 consists of sections: the brief background of the gas condensate fields; the legal Framework for exploitation of the Contract Area; the review of climatic and geologic/geo-physic features; the features of the bio-resources; the socio-economic conditions; performance of field and laboratory surveys of the basic status of the Contract Area.
Book 2 includes sections: the environmental background at Khauzak-Shady Site; the environmental background at the sites of the Kandym Group of Fields; the environmental background at Kungrad site; the ecotoxicological and pathomorphologic researches of flora and fauna samples; the systemic analysis of the EA laboratory tests; the Conclusion. Summaries and recommendations; attachments No 1 thru No 5.
Book 3 represents a photo album reflecting the episodes of field surveys, landscape fragments, wellheads of some wells, etc.
The assessment data have been collected by way of study of documents, observations, performance of measurements and their analysis.
The report describes the administrative-territorial locations, the major data for gas and gas condensate fields included in the Contract Area , their reserves, gas content(composition), information about the results of the previously conducted explorations, operational drilling, number of the drilled, abandoned and conserved wells, mapping materials.
The EIA main sections contain: The legal framework for exploitation of the Contract Area. This section includes: legislative acts and government resolutions of the Republic of Uzbekistan regarding environment protection and safe execution of work; international conventions joined and ratified by the Government of the Republic of Uzbekistan; the matters included in the PSA, on rational exploitation of natural resources, H&S; The review of climatic and geologic/geo-physical features. This review describes the physical/geographic features of each site; climatic and weather conditions; hydro- geologic features(including of the Denghizkul Lake), the interfluvial water reservoir, the Sudochiy lake system); the characteristics of soils and earth; geologic features(including oil/gas bearing); geologic and seismic features; The features of the bioresources of the Contract Areas. The section includes: the legislative acts of the Republic of Uzbekistan and international agreements on protection and exploitation of bioresources; man-made impact indicators; the biologic resources of the Contract Areas with illustrations of some fragments of plant life, mammals, animals and birds; The socio-economic background of the Contract Area. This section deals with historical and ethnographic features and archeologic information not only about the Contract Area, but also the relevant districts and regions to which these sites belong; Performance of field and laboratory researches related to assessment of the basic condition of the Contract Area. The section describes the methods of field researches conducted in the Contract Area as well as of laboratory researches related to: assessment of the physical and chemical composition of the atmospheric air, water(surface water bodies and groundwater) and soils; study of the microbiological features; performance of the ecotoxicological and pathomorphologic tests on flora and fauna samples collected and caught at the surveyed sites; assessment of the radiation situation; The basic environmental background. While surveying the environmental situation, laboratory tests of the physical and chemical composition of the atmospheric air, water and soils were conducted in the State specialized inspection of analytical control laboratories, soil radionuclide concentrations – in the Special Design Bureau of the of the Institute of Nuclear Physics of the Academy of Sciences of the Republic of Uzbekistan, microbiologic assessment tests – in the laboratories of the environmental Survey Expedition of AzNeft Production Enterprise. The basic environmental background – the physical and chemical compositions of atmospheric air, water and soils, the microbiologic and radiation condition at each (Khauzak and Shady, Kandym Group and Kungrad) site of the Contract Area were addressed individually with graphically designed tables and charts attached which characterize the concentrations of the major pollutants in the air, open water bodies, groundwater and in artesian wells; the composition, features and pollution level of soils(earth); background radiation; bed silts of water bodies; the microbiological characteristics of water and soils. Summaries were made for each site; The ecotoxicological and pathomorphologic tests on flora and fauna samples. These researches into plants and animal tissues of the collected and caught in the Contract Areas were carried out in the laboratory of the Environmental Research Expedition of AzNeft Production Enterprise; The systemic analysis of the laboratory tests results of the environmental assessment. The results of the analysis and summarization of the conclusions on the collected (obtained) materials to some degree found out the factors, causes and regularities of variations of pollutant concentrations in air, water and soils.
In general, the performed environmental assessment of the Contract Area corresponds to the program of its performance and the goals set in it.
The State Environmental Expert Review Commission of the State Committee of the Republic of Uzbekistan for Nature Protection approves the Contract Area EA Draft Report that covers: The Kandym group of Fields, Khauzak-Shady Site and Kungrad Site.
The data acquired as a result of execution of the EA may be used as background indicators while maintaining environmental monitoring in the Contract Area sites.
Acting Chairman signed B.Alikhanov
Attachment No.6
AGREED: APPROVED: Manager, Industrial Safety and Environment Protection Department Deputy Director General for Operations “LUKOIL Overseas Service B.V.” Moscow Branch “LUKOIL Uzbekistan Operating Company” LLC Signature A.N. Abashin Signature E.G. Zubarev 13 November 2009 18 November 2009 PLAN of organizational and engineering actions in HSE of “LUKOIL Uzbekistan Operating Company” LLC for 2010 as of 10.11.2009 No Measures Implementation Including by quarters expenses, total Q 1 Q 2 Q 3 Q 4 Responsible person Remark USD ,000 1. Environment LUOK facilities 754.28 135.00 194.50 242.78 182.00 Capital expenditures 1.1 Environmental monitoring, including 95.00 0.00 23.00 48.00 24.00 Being implemented according to Kandim group of fields site 70.00 0.00 23.00 23.00 24.00 Kim D.L. EMP programme agreed with Kungrad site 25.00 0.00 0.00 25.00 0.00 SCNC 1.2 EIS materials formulation costs, of 139.28 25.00 31.50 62.78 20.00 Kusnuyarova A.F. which: 1.2.1 Development and carrying- out of 21.50 0.00 21.50 0.00 0.00 Kusnuyarova A.F. SEER PP EIS for Shadi site facilities development; 1.2.2 Development and carrying- out of 21.50 0.00 0.00 21.50 0.00 Kusnuyarova A.F. SEER ECS for Shadi site facilities development; 1.2.3 Development and carrying- out of 30.00 0.00 0.00 30.00 0.00 Kusnuyarova A.F. SEER ECS for drilling wells at Shadi site; 1.2.4 Development and carrying- out of 11.28 0.00 0.00 11.28 0.00 Kusnuyarova A.F. SEER ECS for construction of LUOK office in Bukhara (Kandym group of fields); 1.2.5 Development and carrying- out of 10.00 0.00 10.00 0.00 0.00 Kusnuyarova A.F. As per requirements of SEER’s SEER ECS for construction of shift opinion No E-7-386 dd. 30.09.09 camp supervision services of it is necessary to develop ECS operation of Kandim group of fields; 1.2.6 Development and carrying- out of 20.00 0.00 0.00 0.00 20.00 Kusnuyarova A.F. SEER PP EIS for exploration well drilling at Shege-3 at Kungrad site; 1.2.7 Development and carrying- out of 25.00 25.00 0.00 0.00 0.00 Kusnuyarova A.F. Regulations are developed for SEER of Regulations of drilling substantiation of drilling waste wastes disposal at Shadi site treatment and disposal on the spot (in sludge pits) 1.3 Supply of chemicals for drilling waste 72.00 9.00 9.00 27.00 27.00 Nuriddinov E.N. Supply of chemicals and treatment of Kandim group of fields coagulants for drilling waste area treatment at Kandym group of fields area 1.4 Drilling waste disposal and sludge pits 160.00 20.00 20.00 60.00 60.00 Kim D.L. Being implemented as per landfilling at Kandim group of fields Regulations agreed with SCNC area Total capital expenses 466.28 54.00 83.50 197.78 131.00 Operating expenses 1.5 Environmental monitoring at 115.00 28.75 28.75 28.75 28.75 Kim D.L. Being implemented as per EMP Khauzak-Shadi site program agreed with SCNC. Investment program expenses are transferred to operation expenses due to site transfer to commercial operation 1.6 Supply of chemicals for drilling waste 101.00 37.00 64.00 0.00 0.00 Nuriddinov E.N. Supply of chemicals and coagulant treatment of Khauzak-Shadi site for waste treatment drilling waste landfill and for drilling waste treatment at Shadi site 1.7 Disposal of solid domestic wastes of 4.00 1.00 1.00 1.00 1.00 Nuriddinov E.N. Khauzak GPS and shift camp of control service for Kandym group of fields construction 1.8 Disposal of fluorescent lamps of 1.00 0.25 0.25 0.25 0.25 Nuriddinov E.N. Khauzak GPS 1.9 QC of drinking and waste water of 18.00 4.50 4.50 4.50 4.50 Kim D.L. Monthly water QC by Bukhara Khauzak GPS SES as per agreed Programs 1.10 Purchase of consumable materials for 10.00 2.50 2.50 2.50 2.50 Nuriddinov E.N. Purchase of consumable materials Khauzak GPS necessary for continuous operation of existing waste water treatment systems of DWT landfill 1.11 Environmental pollution payments 8.00 2.00 2.00 2.00 2.00 Kim D.L. (Bukhara Region and Tashkent city) Total operating expenses 257.00 76.00 103.00 39.00 39.00 Administration costs 1.12 Environmental expert-consulting 8.00 2.00 2.00 2.00 2.00 Kim D.L. services 1.13 Training and advanced training of 5.00 0.00 0.00 0.00 5.00 Kusnuyarova A.F. personnel on environmental protection matters 1.14 Purchase of regulatory documents, 2.00 0.00 1.00 1.00 0.00 Nuriddinov E.N. standards of environmental protection sphere 1.15 Production of training and 4.00 0.00 2.00 0.00 2.00 Nuriddinov E.N. Production of reminders, posters, environmental information campaign etc. materials 1.16 Supply of Tashkent office with 12.00 3.00 3.00 3.00 3.00 Nuriddinov E.N. Service agreements for sewage environmental materials disposal and solid domestic waste collection from Tashkent office Total administration costs 31.00 5.00 8.00 6.00 12.00 Gissar facilities 112.00 21.75 31.75 36.75 21.75 Capital expenses 1.17 Environmental monitoring, of which: 55.00 7.50 17.50 22.50 7.50 Being implemented as per EMP South-West Gissar (Adamtash, 30.00 7.50 7.50 7.50 7.50 Khudaibergenova programme agreed with SCNC Djarkuduk and Gumbulak fields); A.A. Ustyurt site 25.00 0.00 10.00 15.00 0.00 Total capital expenses 55.00 7.50 17.50 22.50 7.50 Operating expenses 1.18 Environmental monitoring at South- 30.00 7.50 7.50 7.50 7.50 Being implemented as per EMP West Gissar (South Kizilbairak and Khudaibergenova programme agreed with SCNC Koshkuduk fields) A.A. 1.19 QC of drinking and waste water Gissar 6.00 1.50 1.50 1.50 1.50 Monthly water QC by GOPS Khudaibergenova Kashkadarya SES as per agreed A.A. Programs 1.20 Purchase of consumable materials for 10.00 2.50 2.50 2.50 2.50 Khudaibergenova Purchase of consumable materials Gissar GOPS A.A. necessary for continuous operation of existing waste water treatment systems 1.21 Environmental pollution payments 8.00 2.00 2.00 2.00 2.00 Khudaibergenova (Kashkadarya province) A.A.
1.22 Disposal of fluorescent lamps of 1.00 0.25 0.25 0.25 0.25 Nuriddinov E.N. Gissar GOPS 1.23 Disposal of solid domestic wastes 2.00 0.50 0.50 0.50 0.50 Khudaibergenova Gissar GOPS A.A. Total operating expenses 57.00 14.25 14.25 14.25 14.25 Total for Environment protection section 866.28 156.75 266.25 279.53 203.75 2. Occupational safety and health LUOK facilities 540.00 217.00 55.50 246.50 21.00 Operating expenses 2.1 Purchase of working clothes, safert 180.00 90.00 0.00 90.00 0.00 Kalachev O.K. boots and other PPE for Khauzak GPS 2.2 Car accidents prevention, including 30.00 7.50 7.50 7.50 7.50 Azimov T.S. Including installation of speed pre-trip medical examination of monitoring systems and roll over Khauzak GPS drivers bars 2.3 PPE testing for Khauzak GPS 3.00 0.00 0.00 3.00 0.00 Kalachev O.K. Testing of dielectric gloves, fall protection harnesses, etc. 2.4 First- pre-doctor aid training of 8.00 0.00 5.00 3.00 0.00 Kalachev O.K. Khauzak GPS personnel 2.5 Purchase of warning signs, posters, 5.00 5.00 0.00 0.00 0.00 Djumanov E.G. regulatory technical literature, fabrication of stands, posters, reminders, forms, log-books for Khauzak GPS 2.6 Khauzak GPS personnel H & S pre- 2.00 0.00 0.00 2.00 0.00 Kalachev O.K. test training. Attestation of Khauzak GPS workplaces 2.7 Provision of Khauzak GPS with 10.00 2.50 2.50 2.50 2.50 Kalachev O.K. medical aid posts with medicine boxes and medications. Deratization/ disinsection at Khauzak GPS facilities. 2.8 Purchase of work clothes, safety boots 200.00 100.00 0.00 100.00 0.00 Ibreev V.V. and other PPE for staff of Kandim group of fields 2.9 Purchase of warning signs, posters, 25.00 10.00 15.00 0.00 0.00 Ibreev V.V. regulatory technical literature, fabrication of stands, posters, reminders, forms, log-books for Kandym Group of Fields 2.10 Car accidents prevention, including 10.00 0.00 0.00 10.00 0.00 Ibreev V.V. pre-trip medical examination of drivers working at Kandim group of fields 2.11 First pre-doctor aid training of 8.00 0.00 0.00 8.00 0.00 Ibreev V.V. personnel of Kandim group of fields 2.12 Kandym Group personnel H & S pre- 5.00 0.00 2.50 2.50 0.00 Ibreev V.V. test training. 2.13 Provision of Kandym group with 6.00 2.00 2.00 2.00 0.00 Ibreev V.V. medical aid posts with medicine boxes and medications. Deratization/ disinsection at Khauzak GPS facilities. Total operating expenses 492.00 217.00 34.50 230.50 10.00 Administration costs 2.14 First pre-doctor aid training of 10.00 0.00 10.00 0.00 0.00 Kalachev O.K. personnel (LUOK office in Tashkent) 2.15 Fabrication of H & S information and 25.00 0.00 10.00 15.00 0.00 Kalachev O.K. training materials and equipping H & S office (LUOK office in Tashkent) 2.16 Purchase of warning signs, posters, 10.00 0.00 0.00 0.00 10.00 Djumanov E.G. regulatory technical literature, fabrication of stands, posters, reminders, forms, log-books for (LUOK office in Tashkent) 2.17 Provision of with medical aid posts 3.00 0.00 1.00 1.00 1.00 Kalachev O.K. with medicine boxes and medications. (LUOK office in Tashkent). Deratization/ disinsection (LUOK office in Tashkent) Total administration costs 48.00 0.00 21.00 16.00 11.00 Gissar facilitie 143.00 14.50 104.50 13.50 10.50 Administration costs 2.18 Purchase of work clothes, safety boots 85.00 0.00 85.00 0.00 0.00 Kalachev O.K. and other PPE for staff of for Gissar GOPS 2.19 Car accidents prevention, including 15.00 0.00 15.00 0.00 0.00 Azimov T.S. Including installation of speed pre-trip medical examination of Gissar monitoring systems and roll over GOPS drivers bars 2.20 First pre-doctor aid training of Gissar 10.00 2.00 0.00 8.00 0.00 Kalachev O.K. personnel Gissar GOPS personnel pre-test H & S 10.00 0.00 2.00 0.00 8.00 Kalachev O.K. 2.21 training. Gissar GOPS workplace assessment 2.22 Organization and holding review 3.00 0.00 0.00 3.00 0.00 Mamutov P.M. competitions in Safety and Environment 2.23 Fabrication of H & S information and 10.00 10.00 0.00 0.00 0.00 Kalachev O.K. training materials and equipping H & S office (LUOK GOPS office in Gissar 2.24 Provision of with medical aid posts 10.00 2.50 2.50 2.50 2.50 Djumanov E.G. with medicine boxes and medications. (Gissar GOPS Deratization/disinsection at Gissar GOPS Total administration costs 143.00 14.50 104.50 13.50 10.50 Total for Section Health and Safety 683.00 231.50 160.00 260.00 31.50 3. Industrial safety LUOK facilities 91.00 35.00 51.00 0.00 5.00 Operating expenses 3.1 Purchase of gas detectors gas- 46.00 25.00 21.00 0.00 0.00 Djumanov E.G. analysers for Khauzak GPS 3.2 Purchase of safety items for hazardous 25.00 10.00 10.00 0.00 5.00 Djumanov E.G. Equipping gas rescues with rescue operations (replenishment and equipment maintaining emergency adequate stocks) Khauzak GPS 3.3 Purchase of gas detectors, gas- 20.00 0.00 20.00 0.00 Ibreev V.V. analysers for facilities of Kandym group of fields Total administration costs 91.00 35.00 51.00 0.00 5.00 Gissar facilities 207.50 85.00 12.50 110.00 0.00 Operating expenses 3.4 Purchase of gas detector, gas-analyser 30.00 10.00 10.00 10.00 0.00 Djumanov E.G. for Gissar GOPS 3.5 Purchase of safety items for hazardous 25.00 25.00 0.00 0.00 0.00 Djumanov E.G. operations (replenishment and maintaining emergency stocks) Gissar GOPS 3.6 Development and expert assessment of 150.00 50.00 0.00 100.00 0.00 Mamutov P.M. Industrial Safety Declaration of Gissar GOPS 3.7 Treatment of Gissar GOPS wooden 2.50 0.00 2.50 0.00 0.00 Djumanov E.G. surfaces with fire retardant agent Total operating expenses 207.50 85.00 12.50 110.00 0.00 Total for Section Industrial Safety 298.50 120.00 63.50 110.00 5.00 4. Prevention of Emergency Situations LUOK facilities 804.00 157.75 243.75 241.75 160.75 Operating expenses 4.1 Maintaining fire safety at Khauzak 96.00 24.00 24.00 24.00 24.00 Djumanov E.G. Agreement with Fire Safety GPS Division of Bukhara Regional Internal Affairs Department 4.2 Purchase and maintenance of 42.00 10.00 10.00 10.00 12.00 Djumanov E.G. firefighting primary means (foam generator), repair of communication means, repair and charging of fire extinguishers at Khauzak GPS 4.3 Maintaining blowout and gas safety, 470.00 117.50 117.50 117.50 117.5 Djumanov E.G. Agreement with Uzbekistan Anti- including gas dangerous works for Blowout Control Militarized Unit Khauzak GPS 4.4 Arrangement and holding exercises 4.00 0.00 2.00 0.00 2.00 Azimov T.S. Expenses for contracting of ERP actions, emergency response representatives of Emergency at Khauzak GPS Situations Ministry, Main Fire Safety Department under Ministry of Internal Affairs 4.5 Purchase of special tools and 85.00 0.00 40.00 45.00 0.00 Djumanov E.G. Equipping gas-rescuers and equipment for maintaining gas safety voluntary rescue team members at Khauzak GPS gas-analyziers, self-contained breathing apparatuses, compressors, components, spare parts and tools 4.6 Maintaining fire safety at Kandim 5.00 1.25 1.25 1.25 1.25 Ibreev V.V. Agreement with Fire Safety group facilities Division of Bukhara Regional Internal Affairs Department 4.7 Purchase and maintenance of 5.00 5.00 0.00 0.00 0.00 Ibreev V.V. firefighting primary means (foam generator), repair of communication means, repair and charging of fire extinguishers at Kandim group facilities 4.8 Purchase of special tools and 35.00 0.00 25.00 10.00 0.00 Ibreev V.V. Equipping gas rescuers (rescue equipment for gas dangerous works equipment, spark proof wrenches) at Kandim group facilities 4.9 Purchase of special tools and 30.00 0.00 10.00 20.00 0.00 Ibreev V.V. Equipping gas-rescuers and equipment for maintaining gas safety voluntary rescue team members Kandim group facilities with RPD Total operating expenses 772.00 157.75 229.75 227.75 156.75 Administration costs 4.10 Purchase and maintaining 12.00 0.00 4.00 4.00 4.00 firefighting primary means (foam generator), repair and charging of fire extinguishers (LUOK office in Tashkent) 4.11 Purchase of gas masks and anti- 20.00 0.00 10.00 10.00 0.00 vandal boxes (LUOK office in Tashkent) Total administration costs 32.00 0.00 14.00 14.00 4.00 Gissar facilities 353.00 105.00 113.00 80.00 55.00 Operating expenses 4.12 Maintaining fire safety at Gissar 100.00 25.00 25.00 25.00 25.00 Djumanov E.G. Establishment of fire-station. GOPS Agreement with Fire Safety Division of Kashkadarya Regional Internal Affairs Department 4.13 Purchase and maintaining 6.00 0.00 6.00 0.00 0.00 Djumanov E.G. firefighting primary means (foamgenerator), repair of communication means, repair and charging of fire extinguishers at Gissar GOPS 4.14 Maintaining of blowout safety at 120.00 30.00 30.00 30.00 30.00 Djumanov E.G. Agreement with Uzbekistan Anti- Gissar GOPS Blowout Control Militarized Unit 4.15 Arrangement and holding exercises 2.00 0.00 2.00 0.00 0.00 Azimov T.S. of ERP, emergency response at Gissar GOPS 4.16 Purchase of special tools and 125.00 50.00 50.00 25.00 0.00 Djumanov E.G. Equipping gas-rescuers and equipment for maintaining gas safety voluntary rescue team members Gissar GOPS gas-analyziers, self-contained breathing apparatuses, compressors, components, spare parts and tools Total operating expenses 353.00 105.00 113.00 80.00 55.00 Total for Section Prevention of Emergency 1 157.00 262.75 356.75 321.75 215.75 Situations GRAND TOTAL 3 004.78 771.00 806.50 971.28 456.00 Capital expenses 521.28 61.50 101.00 220.28 138.50 Operating expenses 2 372.50 704.50 662.50 715.00 290.50 Administration costs 111.00 5.00 43.00 36.00 27.00
Manager, Environment Department signature A.F. Kusnuyarova Lead specialist on operation supervision signature T.S. Azimov
Attachment No.7
AGREED: APPROVED: Chairman of Bukhara Regional Deputy Director General for Operations Nature Conservation Committee “LUKOIL Uzbekistan Operating Company” LLC Signature A.B. Niyazov Signature E.G. Zubarev 9.12 2009 03 December 2009 Seal of LUOK
ACTION PLAN of Environmental Protection and Rational Exploitation of Natural Resources of “LUKOIL Uzbekistan Operating Company” LLC for 2010 Bukhara Region (Khauzak-Shadi site and Kandim group of fields) № Actions Implem Financ Designed Planned cash funds at current prices (UZS ,000)* Actual expenses at current Planned entation ing capacity prices efficienc Remarks period source (m3/day, (UZS ,000) y (beginni t/year, ha) For the of which: For of which: (m3/day, ng, end) year** Q1 1 half year 9 months the Q1 1 9 m t/year, year* half ha) * year 1. Air protection 1.1 Development and carrying- Q2 own - 32 431.89 0.00 32 431.89 32 431.89 out of SEER Pre-poject funds EIS(PP EIS) for Shadi site development 1.2 Development and carrying- Q3 own - 32 431.89 0.00 0.00 32 431.89 Implemented by out of SEER ECS for Shadi funds own resources site development of State 1.3 Oil and gas operations Within own - 73 160.31 0.00 24 386.77 48 773.54 Specialized environmental monitoring a year funds Inspectorate for 1.3.1 at Khauzak-Shadi site Within own - 42 236.88 0.00 14 078.96 28 157.92 Analytical a year funds Monitoring(SIA 1.3.2 at Kandim group of fields Within own - 30 923.43 0.00 10 307.81 20 615.62 M) as per a year funds Programs agreed with RU State Committee for Nature Conservation(R U SCNC) Total for Section 1: 138 024.09 0.00 56 818.66 113 637.32 2. Water conservation 2.1 QC of drinking and waste Within own - 27 152.28 6 788.07 13 576.14 20 364.21 Monthly water water of Khauzak GPS a year funds QC by Bukhara State Center for Sanitary/Epidem iology Supervision(SE S) is carried out as per agreed Programs 2.2 Oil and gas operations Within own - 67 880.70 0.00 22 626.90 45 253.80 Implemented by environmental monitoring a year funds SIAM as per 2.2.1 at Khauzak-Shadi site Within own - 50 533.41 0.00 16 844.47 33 688.94 Programs agreed a year funds with RU SCNC 2.2.2 at Kandim group of fields Within own - 17 347.29 0.00 5 782.43 11 567.86 a year funds 2.3 Development and carrying- 3 own - 17 015.43 0.00 0.00 17 015.43 out of SEER ECS of quarter funds LUOK office construction in Bukhara (Kandym group of fields) 2.4 Development and carrying- Q 2 own - 15 084.60 0.00 15 084.60 15 084.60 As per opinion out of SEER ECS of funds of SEER No E- Kandym group of fields 7-3863 dd. construction and operations 30.09.09 it is supervision shift camp necessary to formulate ECS Total for Section 2: 127 133,01 6 788.07 51 287.64 97 718.04 3. Land and minerals resources conservation 3.1 Disposal of solid domestic Within own 6 033.84 1 508.46 3 016.92 4 525.38 Transfer of wastes from Khauzak GPS a year funds 400 t/year domestic wastes and Kandym group of fields (as for disposal construction and operations accumul under agreement supervision shift camp ated) with “Olotoobod”. Estimated accumulcation volume – 400 t/year 3.2 Disposal of fluorescent Within own 1 508.46 377.12 754.23 1 131.35 Transfer of lamps of Khauzak GPS a year funds 400 waste lamps for (as pc/year demercurization accumul to “Sitora” ated) (Bukhara). Estimated volume - 400 pc/year 3.3 Disposal of used engine Within own 0.00 0.00 0.00 0.00 Disposal of oils of Khauzak GPS a year funds 1000 used engine oils (as l/year in oil treatment accumul system of ated) “Yuzhniy Kizilbayrak” (own resources). Estimated accumulcation volume – 1000 t/year 3.4 Development and carrying- Q 3 own - 45 253.80 0.00 0.00 45 253.80 out of SEER ECS of Shadi funds site well drilling 3.5 Development and carrying- Q 1 own - 37 711.50 37 711.50 37 711.50 37 711.50 Regulations are out of SEER Regulation of funds developed for drilling wastes disposal at substantiation of Shadi site drilling waste treatment and landfilling on the spot (in sludge pits) 3.6 Oil and gas operations Within own - 91 261.83 0.00 30 420.61 60 841.22 Implemented by environmental monitoring a year funds SIAM as per 3.6.1 at Khauzak-Shadi site Within own - 58 075.71 0.00 19 358.57 38 717.14 Programs agreed a year funds with RU SCNC 3.6.2 at Kandim group of fields Within own - 33 186.12 0.00 11 062.04 22 124.08 a year funds 3.7 Supply of chemicals for Within own Drilling 108 609.12 13 576.14 27 152.28 67 880.70 Supply of drilling waste treatment at a year funds wastes – chemicals and Kandim group of fields area 4800 m3 coagulants for (8 wells) drilling waste treatment 3.8 Drilling waste disposal and Within own Drilling 241 353.60 30 169.20 60 338.40 150 846.00 Being sludge pits landfilling at a year funds wastes – implemented as Kandim group of fields area 4800 m3 per Regulations (8 wells) agreed with RU SCNC 3.9 Supply of chemicals for Within own Drilling 152 354.46 55 813.02 152 354.46 152 354.46 Supply of drilling waste and oil sludge a year funds wastes – chemicals and treatment at Khauzak-Shadi 2100 m3 coagulant for site (3 wells); operation of н/ш – 130 drilling waste м3 treatment (DWT)landfill and DWT of Shadi site Total for Section 3: 684 086,61 139 155.44 311 748.40 520 544.41 4. Flora and fauna protection 4.1 Oil and gas operations Within own - 46 762.26 0.00 15 587.42 31 174.84 Implemented by environmental monitoring a year funds SIAM as per 4.1.1 at Khauzak-Shadi site Within own - 22 626.90 0.00 7 542.30 15 084.60 Programs agreed a year funds with RU 4.1.2 at Kandim group of fields Within own - 24 135.36 0.00 8 045.12 16 090.24 SCNCS a year funds 4.2 Annual subscription to Dec. 10 own 250.00 0.00 0.00 0.00 Annual Environmental Bulletin funds subscription for 2011 Total for Section 4: 47 012.26 0.00 15 587.42 31 174.84 Grand total for enterprise: 996 255.97 145 943.51 435 442.12 763 074.60 *Planned costs are indicated at the exchange rate of Central Bank of the Republic of Uzbekistan as of 01.12.09 - 1 USD/1,508.46 soums ** Expenses are indicated on an accrual basis Manager, Environment Department signature A.F. Kusnuyarova 04.12.2009 signature Mukhamadieva D. signature Makhmudov M. Kuziev K.
Attachment No.8
APPROVED BY: Resolutions of Management Committee for Kandym-Khauzak-Shady-Kungrad project dated “____” ______2009, Minutes No. ___ for Gissar project dated “____” ______2009, Minutes No. _____ Chairman ______S. Yu. Nikiforov
AGREED BY: Chairman of the State Nature Preservation Committee of the Republic of Uzbekistan Signature Umarov N.M. January 7, 2010 Official round seal
AGREED BY: Head of the State Inspection “Sanoatkontekhnazorat” Signature Kholmatov I.M. December 30, 2009 Official round seal
AGREED BY: Head of Occupational Safety Department of the Ministry of Labour Signature Sharapov A.R. January 14, 2010 Official round seal
HEALTH, SAFETY AND ENVIRONMENT PROGRAM
IN RESPECT OF OIL AND GAS OPERATIONS WITHIN THE CONTRACT AREA
for projects of Kandym-Khauzak-Shady-Kungrad and Gissar-Ustyurt
FOR 2010-2012
1. GENERAL PROVISIONS
1.1. Health, safety and environment program in respect of the Oil and Gas operations within the Contract area for 2010-2012 (hereinafter “the Program”) was developed in accordance with:
Production Sharing Agreement concerning the site of Kandym group of fields, Khauzak and Shady fields and Kungrad field dated June 16, 2004 (hereinafter “PSA Kandym- Khauzak-Shady-Kungrad”), concluded between the Republic of Uzbekistan and investors consortium consisting of Open Joint-Stock Venture “LUKOIL” Oil Company (predecessor of LUKOIL Overseas Uzbekistan Ltd.) and National Holding Company “Uzbekneftegaz”;
Production Sharing Agreement concerning the fields on the territories of South-West Gissar and Ustyurt region of the Republic of Uzbekistan dated January 23, 2007 (hereinafter “PSA Gissar”) concluded between the Republic of Uzbekistan and “Soyuzneftegaz Vostok Limited” Company.
1.2. This Program was developed based on and in accordance with the requirements of:
Annual operating program for 2010-2012;
Operator’s Budget for 2010-2012;
Health, Safety and Environment Policy;
Program on safety, improvement of conditions and safety of labour, emergency situations prevention and response at OJSC “LUKOIL” and other organizations of “LUKOIL” Group for 2006-2010;
Environmental Safety Program of “LUKOIL Uzbekistan Operating Company” LLC for 2010-2012;
Rules and Procedures of Health, Safety and Environment Sub-committee of Management Committees approved by the Resolutions of Management Committees as of 30.03.2009.
1.3. This Program includes key activities in the sphere of health, safety and environment planned for 2010-2012 aimed at prevention of adverse effect to the environment, health of the Operator’s personnel and his contracting organizations as well as the population residing on the territory of Contract area.
1.4. Key activities included in the present Program are developed in consideration of substantial industrial risks of the Operator indicated in Substantial Industrial Risks Registry of LUKOIL Uzbekistan Operating Company LLC for the year 2010 (hereinafter “the Registry”) and aimed at decreasing the probability of hazards and/or minimization of consequences.
1.5. Operator’s Occupational health and safety Department and Ecology Department shall perform the organization and control over the activities accomplishment under the present Program.
1.6. Shall the Annual operating program for 2010-2012 as well as Operator’s Budget for 2010-2012 be changed, the present Program may be amended accordingly.
2. PREVENTIVE MEASURES PROGRAM
2.1. The fundamental principle of Operator’s activities in the sphere of health, safety and environment is the observance of the priority of planned and accomplished activities and measures related to prevention of adverse effect to the environment, health of the personnel and population before recovery of consequences of this effect.
2.2. In this relation the most of health, safety and environment activities have the preventive character and may be divided into the following directions:
Development and execution of regulatory and permissive documentation in the sphere of health, safety and environment;
Development and coordination with the government authorities of the Republic of Uzbekistan of standards and procedures of the Operator regulating the conduct of Oil and Gas operations in the sphere of health, safety and environment (including ecological monitoring program);
design and estimate documentation expertise for compliance to the requirements of the legislation of the Republic of Uzbekistan in the sphere of health, safety and environment and Operator’s corporate requirements;
operational control over observance by the contracting organizations of the requirements of the applicable legislation of the Republic of Uzbekistan in the sphere of health, safety and environment;
organization of continuous ecological monitoring over Oil and Gas operations performed;
organization and conduct of radiation control on the territory of the objects as well as the manufacturing quality control of drinking and waste water;
organization and conduct of manufacturing control of harmful production factors;
compulsory fire safety and gas safety briefing to all persons before allowance to production facilities as well as workplace briefing (initial, periodic, extraordinary and one-time) for working personnel;
conduct of pre-placement and periodic medical examinations, medical service, insurance and compulsory vaccination of personnel;
personnel training to basic ecological notions and emergency situation actions, training and certification on occupational safety and health of directors, specialist and working staff, involved to works at hazardous production facilities training of personnel to safety methods and emergency situations actions, first-aid treatment rules;
implementation of survey and assessment for technical condition of process equipment and pipelines exposed by aggressive media;
implementation of corrosion protection system and technical supervision of safe operation of process equipment and pipelines;
assessment and bringing into compliance with the requirements of workplaces on working conditions;
provision to the personnel individual protective equipment, protective clothing and footwear (including gas analyzers and respiratory protective equipment);
equipment of production facilities with fire and engineering equipment, emergency firefighting equipment as well as organization of maintenance of fire fighting system, security and fire alarm and alert at production facilities;
development and implementation of emergency prediction and prevention system, preparation and keep prepared for use of forces and means for prevention and liquidation of emergency situations;
development of emergency response plan;
interaction with state regulatory bodies of the Republic of Uzbekistan on issued of health, safety and environment.
2.3. In selecting of optimal health, safety and environment actions the technical feasibility, expected risk reduction level as well as expenses for realization thereof shall be taken into account.
2.4. Those actions that may have maximum effect in risk reduction with the minimal efforts and expenses shall have the priority.
2.5. These are primarily the actions aimed at:
Collection, analysis and update of initial information (regulatory support, design and estimate documentation expertise);
Increase of level of consciousness of each employee regarding to the health, safety and environment (including training, briefing, direct recruitment and motivation);
Continuous monitoring and control over the compliance with the requirements in the sphere of health, safety and environment (assessment of work places, production control of hazardous factors, ecological monitoring).
2.6. In Table 1 are given the planning costs of the years 2010-2012 for completion of actions on health, safety and environment (Budget of HSE Department and Operator’ Ecology Department).
2.7. In Table 2 are given the planned costs of years 2010-2012 for completion of actions on health protection (medical service)and personnel training for years 2010-2012 (Budget of the Operator’s HR Department).
Table 1 ACTION PLAN on implementation of “Health, Safety and Environment Program for 2010-2012”
(Budget of HS Department and Ecology Department, thous, USD) No. Name of action 2010 2011 2012 Remarks Environment protection Consumption and production 1. 341.0 463.0 518.0 wastes disposal, including: 1.1. luminescent lamps: 2.0 3.0 3.0 Service Agreement with ЕС ТС 1.1.1. -Khauzak-Shady field; 1.0 1.0 1.0 «Sitora» (Bukhara for 1.1.2. -site of Kandym group of fields; - 1.0 1.0 acceptance and 1.1.3. -Gissar. 1.0 1.0 1.0 demercurization) 1.2. SDW: 6.0 6.0 10.0 1.2.1. -Khauzak-Shady field; 2.8 2.0 2.0 Service Agreement with “Olotobod” LLC (Alat) for 1.2.2. -site of Kandym group of fields; 1.2 2.0 6.0 acceptance and recycling Service Agreement with Housing maintenance and 1.2.3. -Gissar. 2.0 2.0 2.0 utilities board of Dekhkanabad district for acceptance and recycling Chemicals for recycling of drilling Provision of MHC and 1.3. 173.0 214.0 265.0 wastes, including: coagulants for drilling wastes 1.3.1. -Khauzak-Shady field; 101.0 106.0 157.0 disposal on the landfill of bracketing plant of Khauzak field and territory of Khauzak 1.3.2. -site of Kandym group of fields; 72.0 108.0 108.0 group of fields according to the approved Procedure Processing of drilling wastes and 1.4. liquidation of slurry ponds at the 160.0 240.0 240.0 KGF field Drinking and wastes water 2. 24.0 30.0 42.0 quality control, including: 2.1. -Khauzak-Shady field; 18.0 21.0 21.0 Service Agreement with Bukhara State sanitary- epidemiological expertise 2.2. -site of Kandym group of fields; - - 9.0 center shall be performed by the approved Program Service Agreement with Kashkadarya State sanitary- 2.3. -Gissar 6.0 9.0 12.0 epidemiological expertise center shall be performed by the approved Program 3. Ecological monitoring, including: 295.0 286.0 301.0 3.1. -Khauzak-Shady field; 115.0 120.0 120.0 3.2. -site of Kandym group of fields; 70.0 85.0 100.0 3.3. -Kungrad field; 25.0 11.0 11.0 3.4. -Gissar; 60.0 60.0 60.0 3.5. -Ustuyrt. 25.0 10.0 10.0 Development and SEE of 4. 193.3 98.0 51.0 materials on EIS for DED,
No. Name of action 2010 2011 2012 Remarks environmental standards, including: Development and conduct of SEE 4.1. of SEI for well drilling at Shady 30.0 - - field Development and conduct of SEE 4.2. of EIS for arrangement of site 21.5 - - Western Shady; Development and conduct of SEE 4.3. of SEI for arrangement of site 21.5 - - Western Shady; Development and conduct of SEE of SEI for construction of LUOC 4.4. 11.3 - - office in Bukhara (Kandym group of fields) SEE procedure shall be Development and conduct of SEE determined according to the of SEI for construction and Decree of the Cabinet of 4.5. operation of VP of supervision 10.0 - - Ministers of the Republic of service for construction of Kandym Uzbekistan No. 491 dated group of fields 31.12.2001 “On approval of Development and conduct of SEE Regulations on state 4.6. of EIS of Shege-3 exploratory well 20.0 - - environmental expertise in the drilling at Kungrad field Republic of Uzbekistan” as Development and conduct of SEE amended in accordance with the 4.7. of drilling wastes disposal 25.0 - - Decree of the Cabinet of procedure at Shady field Ministers of the Republic of Development and conduct of SEE Uzbekistan No. 152 dated 4.8. of SEI for BCS construction at - 31.0 - 05.06.2009. Khauzak field Development and conduct of SEE of SEI for priority construction 4.9. - 51.0 - (infrastructure) at site of Kandym group of fields Development and conduct of SEE of SEI for construction of Kandym 4.10. - - 51.0 group of fields arrangement facilities (1st priority) Development and conduct of SEE 4.11. of SEI for exploration drilling - 16.0 - (structures Shurdaryo, Namsis) 5. Other works, including: 51.0 51.0 77.0 Expert-consulting services on 5.1. environment protection, including 8.0 8.0 20.0 expenses for SEE Obtaining of regulatory documents, 5.2. standards in the sphere of 2.0 2.0 2.0 environment protection Preparation of informational materials on environment 5.3 protection of educational and 4.0 4.0 8.0 agitation nature (instruction booklets, posters, etc.)
No. Name of action 2010 2011 2012 Remarks Training, preparation and skill 5.4. development for personnel on 5.0 5.0 5.0 issues of environment protection Disposal of consumption Provision of Tashkent city on 5.5. 12.0 12.0 12.0 wastes, sewerage (office in issues of environment protection Tashkent) Procurement of environment 5.6. 20.0 20.0 30.0 protection materials, including: 5.6.1. -Khauzak-Shady field; 10.0 10.0 10.0 5.6.2. -site of Kandym group of fields; - - 10.0 5.6.3. -Gissar. 10.0 10.0 10.0 Compensation payments for 6. environment pollution and wastes 16.0 16.0 24.0 disposal, including: 6.1. -Khauzak-Shady field; 8.0 8.0 12.0 6.2. -Gissar. 8.0 8.0 12.0 Total for environment protection, 866.3 944.0 1013.0 including: -Khauzak-Shady field; 353.8 299.0 323.0 -site of Kandym group of fields; 324.5 487.0 525.0 -Kungrad field; 45.0 11.0 11.0 -Gissar. 87.0 106.0 97.0 -Ustuyrt. 25.0 10.0 10.0 -Tashkent (SG&A) 31.0 31.0 47.0 Industrial safety, safety of labour, civil defense and emergency situations Occupational safety and health, 1. 683.0 926.0 701.0 including: 1.1. Acquiring of PPE: 465.0 700.0 450.0 1.1.1. -Khauzak-Shady field; 180.0 150.0 150.0 1.1.2. -site of Kandym group of fields; 200.0 450.0 200.0 1.1.3. -Gissar. 85.0 100.0 100.0 1.2. Prevention of road accidents: 55.0 55.0 60.0 1.2.1. -Khauzak-Shady field; 30.0 35.0 35.0 Including installation of speed 1.2.2. -site of Kandym group of fields; 10.0 10.0 10.0 control systems and roll over 1.2.3. -Gissar. 15.0 10.0 15.0 bars Testing of protective equipment 1.3. (insulating gloves, safety harnesses, 3.0 3.0 3.0 Testing of insulating gloves, balloons) safety harnesses, etc. 1.3.1. -Khauzak-Shady field; 3.0 3.0 3.0 1.3.2. -site of Kandym group of fields; - - 0.0 Training of newly accepted 1.4. personnel to first-aid treatment 36.0 43.0 43.0 rules: 1.4.1. -Khauzak-Shady field; 8.0 10.0 10.0 1.4.2. -site of Kandym group of fields; 8.0 15.0 15.0 1.4.3. -Gissar. 10.0 10.0 10.0 1.4.4. -Tashkent 10.0 8.0 8.0 Acquisition of safety signs, normative and technical literature, 1.5. 40.0 40.0 40.0 preparation of display stands, placards, instruction booklets,
No. Name of action 2010 2011 2012 Remarks blanks, magazines 1.5.1 -Khauzak-Shady field; 5.0 15.0 15.0 1.5.2. -site of Kandym group of fields; 25.0 25.0 25.0 1.5.3. -Tashkent 10.0 - - Pre-assessment preparation on health, safety and environment, 1.6. 17.0 17.0 17.0 assessment of work places on working conditions: 1.6.1 -Khauzak-Shady field; 2.0 2.0 2.0 1.6.2. -site of Kandym group of fields; 5.0 5.0 5.0 1.6.3. -Gissar. 10.0 10.0 10.0 Maintenance of medical aid posts 1.7. with medicine chests, 29.0 25.0 25.0 deratization/disinfestation 1.7.1. -Khauzak-Shady field; 10.0 8.0 8.0 1.7.2. -site of Kandym group of fields; 6.0 8.0 8.0 1.7.3. -Gissar. 10.0 8.0 8.0 1.7.4. -Tashkent 3.0 1.0 1.0 Preparation of informational and 1.8. training materials, equipment of 35.0 40.0 60.0 HSE cabinet 1.8.1. -Khauzak-Shady field; - - 20.0 1.8.2. -site of Kandym group of fields; - 20.0 20.0 1.8.3. -Gissar. 10.0 15.0 15.0 1.8.4. -Tashkent 25.0 5.0 5.0 Organization of review 1.9. 3.0 3.0 3.0 competitions on HSE 2. Industrial safety, including: 298.5 228.0 253.0 Acquisition of gas detectors, gas 2.1. 96.0 35.0 80.0 analyzers 2.1.1. -Khauzak-Shady field; 46.0 10.0 20.0 2.1.2. -site of Kandym group of fields; 20.0 20.0 40.0 2.1.3. -Gissar. 30.0 5.0 20.0 Acquisition of secure facilities for work performance, including of 2.2. 50.0 40.0 20.0 heightened danger, emergency Provision of the gas rescue resupply team with emergency rescue 2.1.1. -Khauzak-Shady field; 25.0 0.0 20.0 equipment 2.2.2. -site of Kandym group of fields; 0.0 25.0 0.0 2.2.3. -Gissar. 25.0 15.0 0.0 Development and expertise of ISD 2.3. 150.0 150.0 150.0 for Gissar OGPS Wooden covers flame-retardant 2.4. 2.5 3.0 3.0 treatment at Gissar OGPS Prevention of emergency 3. 1157.0 1286.0 1470.0 situations, including: 3.1. Ensuring the fire safety 201.0 380.0 390.0 3.1.1. -Khauzak-Shady field; 96.0 110.0 120.0 Service Agreement with 3.1.2. -site of Kandym group of fields; 5.0 150.0 150.0 Bukhara DIA 3.1.3. -Gissar. 100.0 120.0 120.0 3.2. Acquisition of emergency 65.0 68.0 102.0
No. Name of action 2010 2011 2012 Remarks firefighting, foam formation equipment, repair of communication equipment, repair and recharge of fire extinguishers 3.2.1. -Khauzak-Shady field; 42.0 40.0 40.0 3.2.2. -site of Kandym group of fields; 5.0 20.0 50.0 3.2.3. -Gissar. 6.0 6.0 10.0 Organization of blowout and gas security (agreement with Uz 3.3. militarized unit), including 590.0 680.0 700.0 performance of gas dangerous works 3.3.1. -Khauzak-Shady field; 470.0 500.0 520.0 Service Agreement with Uz 3.3.2. -site of Kandym group of fields; 0.0 50.0 50.0 militarized unit 3.3.3. -Gissar. 120.0 130.0 130.0 Organization and conduct of Expenses for attraction of exercises on emergency representatives of ESM, MSD 3.4. 6.0 13.0 13.0 localization plan, emergency of the Ministry of Internal response Affairs of RUz 3.4.1. -Khauzak-Shady field; 4.0 4.0 4.0 3.4.2. -site of Kandym group of fields; 0.0 5.0 5.0 4.3.3. -Gissar. 2.0 4.0 4.0 Provision of the Gas rescue team and Voluntary gas rescue Acquisition of special tools and battalion with gas analysis 3.5. equipment for performance of gas 275.0 145.0 265.0 equipment, self-contained dangerous works breathing apparatus, compressors, component and spare parts, and instruments. 3.5.1. -Khauzak-Shady field; 85.0 45.0 70.0 3.5.2. -site of Kandym group of fields; 65.0 75.0 135.0 3.5.3. -Gissar. 125.0 25.0 60.0 Acquisition of gas masks and 3.6. 20.0 0.0 0.0 vandal-proof cases Total for HSE and ES, including: 2138.5 2440.0 2424.0 -Khauzak-Shady field; 1006.0 932.0 1037.0 -site of Kandym group of fields; 349.0 878.0 713.0 -Gissar. 703.0 614.0 658.0 -Tashkent (SG&A) 80.0 16.0 16.0 Total for program, including: 3004.8 3384.0 3437.0 -Khauzak-Shady field; 1359.8 1231.0 1360.0 -site of Kandym group of fields; 673.5 1365.0 1238.0 -Kungrad field; 45.0 11.0 11.0 -Gissar. 790.5 720.0 755.0 -Ustuyrt. 25.0 10.0 10.0 -Tashkent (SG&A) 111.0 47.0 63.0
Head of HS Department signature V.V. Ibreev Head of Ecology Department signature A.F. Kusnuyarova
Table 2
ACTION PLAN for the realization of Health, Safety and Environment Program for 2010 – 2012
(Budget of Personnel development department, thous, USD) No. Measure description 2010 2011 2012 Remark Regularly education of all Operator’s employees on issues of safety rules, labour Personnel education about and environmental safety, as 1 8.0 9.0 10.0 ecological basics well as requirements of ISO 14001 and OHSAS 18001 standards before routine knowledge assessment. Training of HSE service Education on “Internal auditor of employees of GPS “Khauzak” integrated management system” 37.5 10.0 10.0 and Gissar OGPS on program. ISO 14001:2004 OHSAS requirements of ISO 14001 1800:2007. and OHSAS 18001 standards Compulsory training according to the law, including: - HSE before routine knowledge assessment; Education, training and personnel - Safety rules in oil-and-gas 2 development on the safety rules and 160.0 180.0 200.0 industry and preventive labor safety issues. firefighting regulations of RUz; - Preparation of Voluntary gas rescue battalion; - blowout and gas security Organization and operation of 3 180.0 180.0 185.0 medical station on Khauzak GPS. Organization and operation of 4 72.0 76.0 80.0 medical station on Gissar OGPS. Organization of before trip, According to planned staff preliminary and periodical medical schedule. Including pre-route 5 462.0 1 124.0 1 200.0 examinations and medical medical examination of insurance of personnel. drivers. TOTAL: 919.5 1 579.0 1 685.0
Head of HE Department signature M.N. Skiban
Attachment No.9
AGREED: APPROVED: Chairman of Bukhara Regional Deputy Director on General for Operations Nature Conservation Committee “LUKOIL Uzbekistan Operating Company” LLC Signature A.B. Niyazov Signature E.G. Zubarev 28.12 2009 21 December 2009 Seal of LUOK company
REPORT on Implementation of Action Plan of Environment Protection and Rational Exploitation of Natural Resources for 12 months of 2009
Bukhara Regional (Khauzak-Shadi site and Kandim group of fields) № Actions Implement Financi Design Planned cash funds at current prices (UZS ,000)* Actual expenses at current prices (UZS ,000) Planned ation ng ed For the Of which: For the Of which efficiency Remarks period source capacit year** Q 1 1 half year 9 months year** Q 1 1 half year 9 m (m3/day, (beginning, y t/year, ha) end) (m3/da y, t/year, ha) 1. Air protection 1.1 Development and 01.05.09- own - 69 425.50 0.00 41 655.30 69 425.50 0.00 0.00 0.00 0.00 - Carried over to carrying- out of 30.09.09 funds 2011as per AWP SEER Pre-poject approved by EIS(PP EIS) for managing company Kandim Group of Fields fields infrastructure facilities 1.2 Development and 20.09.09- own - 41 655.30 0.00 0.00 10 413.83 0.00 0.00 0.00 0.00 - Carried over to carrying- out SEER 30.12.09 funds 2011as per SWP ECS for construction approved by of Kandym Group of managing company Fields infrastructure facilities 1.3 Oil and gas Within a own - 55 818.10 19 047.83 19 047.83 32 794.08 56 329.27 7 685.22 18 757.33 32 538.75 - Actual cost of works operations year funds as per agreement environmental with SIAM. EM was
monitoring implemented as per 1.3.1 at Khauzak-Shadi Within a own - 41 238.75 13 746.25 13 746.25 27 492.50 41 098.43 5 795.06 13 424.74 27 206.16 - Programs agreed site year funds with SCNCS 1.3.2 at Kandim group of Within a own - 14 579.36 5 301.58 5 301.58 5 301.58 15 230.84 1 890.15 5 332.59 5 332.59 - fields year funds 1.4 Compensation Within a own - 400.00 100.00 200.00 300.00 468.15 77.67 468.15 468.15 - As per calculations + payments for year funds advance payments atmospheric for Q 4 emissions 1.5 Development of 01.07.09- own - 0.00 0.00 0.00 0.00 30 742.61 0.00 0.00 14 146.50 - New task as per 2009 environmental 30.12.09 funds AWP standards (MAC) for Khauzak GPS Total for Section 1: 167 298.90 19 147.83 60 903.13 112 933.41 87 540.03 7 762.89 19 225.49 47 153.41 2. Water conservation 2.1 QC of drinking and Within the own - 18 000.00 5 000.00 9 000.00 14 000.00 11 986.30 2 679.07 4 972.35 9 441.26 - Agreement with waste water year funds Bukhara SES (monthly monitoring as per approved Programs 2.2 Oil and gas Within the own - 58 317.42 15 273.61 15 273.61 28 742.16 57 506.36 7 379.31 17 827.54 39 068.90 - Actual cost of works operations year funds as per agreement environmental with SIAM. EM was monitoring implemented as per 2.2.1 at Khauzak-Shadi Within the own - 49 430.96 13 468.55 13 468.55 29 937.09 49 181.91 5 927.34 13 731.18 34 972.53 - Programs agreed site year funds with SCNC 2.2.2 at Kandim group of Within the own - 8 886.46 1 805.06 1 805.06 1 805.06 8 324.45 1 451.97 4 096.37 4 096.37 - fields year funds 2.3 Development and 01.07.09- own - 16 662.12 0.00 13 885.10 16 662.12 0.00 0.00 0.00 0.00 - Carried over to 2010 SEER PPEIS for 31.12.09 funds because of tender project of waste holding water deep well injection at Khauzak GPS 2.4 Annual subscription 01.12.09- own - 200.00 0.00 0.00 0.00 2 206.17 1 403.78 1 403.78 1 988.78 - Subscription to to Environmental 30.12.09 funds Environmental Bulletin Bulletin of Uzbekistan, purchase of regulatory documents 2.5 Compensation 01.04.09- own - 0.00 0.00 0.00 0.00 4 348.70 0.00 3 848.70 3 848.70 - As per calculations +
payment for 30.12.09 funds advance payments discharge into the for Q 4 fields 2.6 Development of 01.07.09- own - 0.00 0.00 0.00 0.00 17 625.06 0.00 0.00 7 716.27 - New task according environmental 30.12.09 funds to 2009 AWP standards (MAC) for Khauzak GPS Total for Section 2: 93 179.54 20 273.61 38 158.71 59 404.28 93 672.60 11 462.16 28 052.37 62 063.91 3. Land and minerals resources conservation 3.1 Disposal of Within the own - 19 439.14 4 165.53 8 331.06 12 496.59 1 569.77 865.12 865.12 925.10 - production and year funds domestic wastes 3.1.1 Demercurization of Within the own - 2 777.02 0.00 0.00 0.00 269.77 65.12 65.12 125.10 350 pcs Agreement with TC waste fluorescent year funds “Sitora” for lamps acceptance 3.1.2 Sending solid Within the own - 16 662.12 4 165.53 8 331.06 12 496.59 1 300.00 800.00 800.00 800.00 250 tn Agreement with domestic wastes for year funds “Olotoobod” LLC disposal for acceptance 3.2 Development of PP 01.08.09- own - 15 273.61 0.00 0.00 13 885.10 0.00 0.00 0.00 0.00 - Carried over as per EIS and SEER for 30.09.09 funds AWP, approved by construction of office managing company in Bukhara 3.3 Development of ECS 01.10.09- own - 18 050.63 0.00 0.00 0.00 0.00 0.00 0.00 0.00 - and SEER 31.12.09 funds construction of office in Bukhara 3.4 Oil and gas Within the own - 71 508.27 24 298.93 24 298.93 43 043.81 72 411.84 9 959.10 24 091.71 42 966.26 - Actual cost of works operations year funds as per agreement environmental with SIAM. EM was monitoring implemented as per 3.4.1 at Khauzak-Shadi Within the own - 56 234.66 18 744.89 18 744.89 37 489.77 56 286.98 7 936.72 18 386.06 37 260.61 - Programs agreed site year funds with SCNC 3.4.2 at Kandim group of Within the own - 15 273.61 5 554.04 5 554.04 5 554.04 16 124.86 2 022.39 5 705.65 5 705.65 - fields year funds 3.5 Supply of landfill Within the own - 120 000.00 30 000.00 60 000.00 90 000.00 183 510.0 52 160.00 138 510.00 145 260.00 5760 t of Within a year 360 t with chemicals year funds drilling of chemicals and 18 t sludge of coagulant were 1075 m3 purchased for drilling of DWW wastes treatment 3.6 Development and 04.05.09- own - 0.00 0.00 0.00 0.00 14 478.54 0.00 12 259.20 14 478.58 - New task as per SEER ECS for 31.07.09 funds AWP, approved by
construction of managing company additional part of condensate line at Khauzak-Shadi site 3.7 Development and 22.06.09- own - 0.00 0.00 0.00 0.00 31 514.74 0.00 4 671.23 31 514.74 - New task as per 2009 SEER ECS for 30.09.09 funds AWP construction of wells at Kandim group of fields 3.8 Development of 01.07.09- own - 0.00 0.00 0.00 0.00 22 872.08 0.00 0.00 10 288.37 - New task as per 2009 environmental 30.12.09 funds AWP standards (maximum allowable volumes) for Khauzak GPS Total for Section 3: 244 271.65 58 464.46 92 629.99 159 425.0 326 356.9 62 984.22 180 397.26 245 433.01 4 Protection of flora and fauna 4.1 Oil and gas Within the own - 33 046.54 16 523.27 16 523.27 16 523.27 33 567.25 6 680.85 16 503.91 16 503.91 - Actual cost of works operations year funds as per agreement environmental with SIAM. EM was monitoring implemented as per 4.1.1 at Khauzak-Shadi Within the own - 21 938.46 10 969.23 10 969.23 10 969.23 21 898.15 4 645.50 10 761.68 10 761.68 - Programs agreed site year funds with SCNC 4.1.2 at Kandim group of Within the own - 11 108.08 5 554.04 5 554.04 5 554.04 11 669.10 2 035.35 5 742.23 5 742.23 - fields year funds Total for Section 4: 33 046.54 16 523.27 16 523.27 16 523.27 33 567.25 6 680.85 16 503.91 16 503.91 Grand total for enterprise: 537 796.63 114 409.1 208 215.10 348 286.4 541 136.8 88 890.11 244 179.02 371 154.24 Remark: *Costs are indicated at the exchange rate of 31.03.09 - 1 USD/UZS 1,432.00 ** Expenses are indicated on an accrual basis *** Expenses are indicated on an accrual basis at the exchange rate of 23.06.09 - 1 USD/UZS 1,480.58 *** Expenses are indicated on an accrual basis at the exchange rate of 22.09.09 - 1 USD/UZS 1,497.98 **** Expenses are indicated on an accrual basis at the exchange rate of 15.12.09 - 1 USD/UZS 1,510.03
Manager, Environment Department signature A.F. Kusnuyarova 21.12.2009