Otway Basin Carbon Capture and Storage Project, Nirranda Moyne Planning Scheme April 2007

This document is an incorporated document in the Moyne Planning Scheme pursuant to Section 6(2)(j) of the Planning and Environment Act 1987.

ME_72052082_2 (W2003) Moyne Planning Scheme CO2CRC Pilot Project Nirranda

CONTENTS

Otway Basin Carbon Capture and Storage Project, Nirranda...... 1 INTRODUCTION ...... 3 ADDRESS OF THE LAND ...... 3 THIS DOCUMENT ALLOWS ...... 3 THE FOLLOWING CONDITIONS APPLY TO THIS DOCUMENT:...... 5 DEVELOPMENT PLANS ...... 5 LANDSCAPING PLAN...... 5 CAR PARKING...... 5 NOISE...... 6 LIGHTING ...... 6 SEPTIC DISPOSAL OF WASTE ...... 6 AMENITY ...... 6 NATIVE VEGETATION REMOVAL ...... 6 DECOMMISSIONING...... 7 EXPIRY ...... 7 NOTES...... 7 Appendix 1- Title Particulars...... 8 Appendix 2 – Indicative Layout Plans...... 9

ME_72052082_2 (W2003) Moyne Planning Scheme CO2CRC Pilot Project Nirranda

INTRODUCTION

This document is an incorporated document to the Moyne Planning Scheme. The land identified in the document may be developed and used in accordance with the specific controls contained in this document. The specific controls may exclude other controls in the Scheme.

If there is any inconsistency between the specific controls and the general provisions of the Scheme, the specific controls will prevail.

ADDRESS OF THE LAND

Land generally in the vicinity of Nirranda as described in Appendix 1.

THIS DOCUMENT ALLOWS

Despite any other provisions of the Moyne Planning Scheme the land may be used and developed for carbon dioxide geosequestration project, subject to compliance with the provisions of this Incorporated Document.

The carbon dioxide geosequestration project includes the extraction of carbon dioxide rich gas from an underground reservoir, the compression and transportation of the gas via a pipeline, the injection of gas via a well into a gas storage reservoir and monitoring the site to verify that the gas is stored securely. The project may include the separation and purification of the extracted gas, the recovery of the injected gas and other modifications to the process and infrastructure.

The project may proceed in stages.

The infrastructure to be used for the project is to be generally in accordance with the description below, unless otherwise approved by the responsible authority:

BUTTRESS 1 (CO2 RESERVOIR) SITE Reciprocating compressor for transfer of CO2 from Buttress-1 well to the CRC1 well, housed within an acoustic enclosure Gas filtration and water removal facilities Gas water bath heater Storage tank for the collection of water removed from the gas stream Gas after cooler Air compressor for site equipment Process skid and low level vent stack to allow for infrequent nitrogen purging of the transfer pipeline. Triple interceptor Trap Moyne Planning Scheme CO2CRC Pilot Project Nirranda

Electrical Control Gear enclosure (2m x 2m) Demountable building

CRC1 SITE (CO2 STORAGE SITE) A new well similar to the existing well at the Buttress-1 site, for injecting the extracted gas. Underground storage reservoir Administration office (6 metres by 9 metres), including basic kitchen facilities Scientists visitor centre (6 metres by 9 metres), including basic kitchen facilities Amenities facility (6 metres by 3 metres), including male and female toilets and associated septic tank. A rainwater collection tank and pressure system to supply potable water. On-site parking for six cars. A pole mounted transformer and a 2 metres by 2 metre enclosure for the in-coming power supply. A low level vent stack to allow for infrequent nitrogen purging of the transfer pipeline. A 2 metre by 2 metre enclosure to house electrical control gear. Ingress to the site via the existing private track “Brumbys Lane” and egress from the site via Sodas Rd, where access routes are formed with unsealed crushed sandstone with small offtake to site. Paved areas within the site with unsealed crushed sandstone. Naylor 1 well and / or existing water bore for use for monitoring activities

PIPELINE

An underground transfer gathering line between the existing gas reservoir and the new CRC1 well.

SEPARATION AND PURIFICATION PLANT (STAGE 2)

Dehydration and purification of CO2 by distillation and pumping.

AIR MONITORING STATION

An air monitoring station to monitor the levels of atmospheric CO2 for the duration of the project.

FLUX TOWER

A flux tower to measure the CO2 ecological contributions 300 metres west of the air monitoring station. Moyne Planning Scheme CO2CRC Pilot Project Nirranda

THE FOLLOWING CONDITIONS APPLY TO THIS DOCUMENT:

DEVELOPMENT PLANS

1. Before the injection of gas commences, development plans must be submitted to the satisfaction of the responsible authority. When approved, the plans will be endorsed by the responsible authority and will then form part of the incorporated document. The plans must show the location of all buildings and works generally in accordance with the indicative layouts shown on the plans in Appendix 2.

2. The use and development of the surface works as shown on the endorsed plans must not be altered or modified without the written consent of the Responsible authority.

LANDSCAPING PLAN

3. Before the injection of gas commences, a landscape plan to the satisfaction of the responsible authority must be submitted to and approved by the responsible authority. When approved, the plan will be endorsed and will then form part of the incorporated document. The plan must be drawn to scale with dimensions and three copies must be provided. The landscape plan must generally provide for the screening of buildings at the Buttress 1 site, the CRC1 site, the separation and purification plant and air monitoring station, and must show:

(a) details of surface finishes of pathways and driveways (b) a planting schedule of all proposed trees, shrubs and ground covers, including botanical names, common names, sizes at maturity and quantities of each plant (c) A maintenance and monitoring program.

4. Within six (6) months of the commencement of gas injection or by such later date as is approved by the responsible authority in writing, the landscaping works as shown on endorsed plans must be carried out and completed to the satisfaction of the responsible authority.

CAR PARKING

5. Before the injection of gas commences , the area(s) set-aside for the parking of vehicles and access lanes as shown on the endorsed plans must be: (a) constructed (b) properly formed to such levels that they can be used in accordance with the plans (c) drained.

Moyne Planning Scheme CO2CRC Pilot Project Nirranda

6. Car spaces, access lanes and driveways must be kept available for these purposes at all times, to the satisfaction of the responsible authority.

7. Except with the further consent of the responsible authority, no fewer than six car space(s) must be provided on the land for the use and development.

NOISE

8. Noise levels emanating from the land must comply with the requirements of the Environment Protection Authority’s Information Bulletin No. N3/89 Interim Guidelines for the Control of Noise in Country Victoria, to the satisfaction of the responsible authority.

LIGHTING

9. No external lighting of infrastructure associated with the facility, other than low level security lighting where appropriate, may be installed or operated without the further consent of the responsible authority.

SEPTIC DISPOSAL OF WASTE

10. An approved septic disposal system must be installed concurrently with the erection of the amenities building and all waste must be disposed of within the curtilage of the property, to the satisfaction of the responsible authority.

AMENITY

11. The use and development must be managed so that the amenity of the area is not detrimentally affected, through the: (a) transport of materials, goods or commodities to or from the land (b) appearance of any building, works or materials (c) emission of noise, artificial light, vibration, smell, fumes, smoke, vapour, steam, soot, ash, dust, waste water, waste products, grit or oil (d) presence of vermin to the satisfaction of the responsible authority.

NATIVE VEGETATION REMOVAL

12. Prior to the removal of any native vegetation from the land, a plan showing the extent of vegetation to be removed must be submitted to and approved by the responsible authority.

13. Before vegetation removal starts, an offset plan showing appropriate offsets to compensate for the removal of vegetation must be prepared to the satisfaction of Moyne Planning Scheme CO2CRC Pilot Project Nirranda

the Department of Sustainability and Environment then submitted to and approved by the responsible authority.

DECOMMISSIONING

14. The facility operator must, without delay, notify the responsible authority in writing as soon as the monitoring of CO2 has ceased. Within 12 months of that date, the facility operator must undertake the following to the satisfaction of the responsible authority:

(a) remove all non-operational or downed equipment (b) clean up and restore all above ground storage, construction and other areas associated with use, development and decommissioning of the facility (c) restore all access roads and any other area affected by project closure or decommissioning, if not otherwise useful to the on-going management of the land (d) submit a post-decommissioning revegetation management plan to the responsible authority and, when approved by the responsible authority, implement that plan.

EXPIRY

15. Notwithstanding other provisions of these conditions, the use and development permitted by this incorporated document will expire on 31 December 2016. The responsible authority may extend this period if a request is made in writing before the incorporated documents expires or within three months afterwards.

END OF CONDITIONS

NOTES

A. All buildings and works must take account of the requirements of the Victorian Archaeological and Aboriginal Relics Preservation Act 1972 and the Commonwealth Aboriginal and Torres Strait Islander Heritage Protection Act 1984, or Victorian Aboriginal Heritage Act 2006 (if proclaimed).

Moyne Planning Scheme CO2CRC Pilot Project Nirranda

Appendix 1- Title Particulars 1. Volume 09662 Folio 284, Crown Allotment 77A, Parish of Nirranda 2. Volume 07957 Folio 168, Lot 1 and 2 TP 372221 (formerly known as Crown Allotment 78A and part of Crown Allotment 78B, Parish of Nirranda) 3. Volume 07957 Folio 167, Lot 1 TP 365923X (formerly known as part of Crown Allotment 78B, Parish of Nirranda) 4. Volume 05508 Folio 572, Lot 1 TP 241609W (formerly known as Crown Allotment 78C and part of Crown Allotment 79C, Parish of Nirranda) together with the sub-stratum: (a) comprising all of the land below the title depth of the above titles; and (b) below 1 kilometre depth from surface of all land within a 1 kilometre radius of the Buttress 1 well-head; and (c) below 1 kilometre depth from surface of all land within a 1 kilometre radius of the mid-point of a line joining the CRC well-head and Naylor 1 well-head.

Moyne Planning Scheme CO2CRC Pilot Project Nirranda

Appendix 2 – Indicative Layout Plans

Pipeline Route Moyne Planning Scheme CO2CRC Pilot Project Nirranda

Buttress 1 Site Moyne Planning Scheme CO2CRC Pilot Project Nirranda

CRC 1 Site Moyne Planning Scheme CO2CRC Pilot Project Nirranda

Air Monitoring Station and Flux Tower

CO2CRC Pilot Project

APPENDIX 1 TO INCORPORATED DOCUMENT – CERTIFICATES OF TITLE

Certificate of Title Vol/Fol C.A./Lot Description

Vol 09622 Fol 284 CA 77A

Vol 07957 Fol 168 Lot 1 and 2 TP 372221

Vo 07957 Fol 167 Lot 1 TP 365923X

Vol 05508 Fol 572 Lot 1 TP 241609W

Pierrepoint Planning CO2CRC Pilot Project

Pierrepoint Planning

CO2CRC PILOT PROJECT

Appendix 2 to Incorporated Document

Indicative Layout Plans:

1. Pipeline Route

2. Buttress 1 Site

3. CRC1 Site

4. Air Monitoring Station and Flux Tower

1. Pipeline Route

CO2CRC Pilot Project

2. Buttress 1 Site

Pierrepoint Planning

CO2CRC Pilot Project

3. CRC1 Site

Pierrepoint Planning

CO2CRC Pilot Project

5. Air Monitoring Station

LoFlo container and fence

4.5 m Not to scale Ai r conditioner

2.3 m

LoFlo container

3. 2 m Tower pi vot bas e 5. 0 m

Power i n 10 m tower in lowered position

Power pol e

Important: tower to swing down into open gateway to reach horizontal

Pierrepoint Planning

ENVIRONMENT MANAGEMENT PLAN FOR CRC-1 DRILLING OPERATIONS

Upstream Petroleum Controlled Document No. 34632-HS-04-0005 Revision 0, November 2006

ENVIRONMENT MANAGEMENT PLAN FOR CRC-1 DRILLING OPERATIONS

I: DOCUMENT CONTROL This Environment Plan for CRC-1 Drilling Operations is a “controlled document”. Should the recipient (user) become aware of any changes or corrections that are required please photocopy this page and the relevant page(s) to be changed, note the corrections and deliver them to: Document Controller Upstream Petroleum Level 3, 342 Flinders St, Melbourne, 3000 Tel: (613) 8625 8406 Fax: (613) 9620 9938 Mob: +61 403 499 863

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II: DOCUMENT REVISIONS The HSEQ & Training Manager Upstream Petroleum is responsible for controlling and ensuring any revision of this Environment Plan. Responsibility for managing change in this document is detailed within the Upstream Petroleum (UP) Document & Data Control (UP/00/SP/DOC/PC01). This Environmental Plan shall be revised in the following circumstances:

• After a period of five (5) years; • On discovery of a significant new or changed environmental effect or risk; • Significant change in the drilling program or drilling operations. Name: ...... Position: ...... Location: ...... Document Issue Number: ...... Tel: ...... Fax:...... Please note the following requested / recommended changes to the following page(s): Section: ...... Pages: ...... Section: ...... Pages: ...... Other comments:...... ……………………… ……………...... ….……………………………...... ….……………………………...... ….……………………………...... ….……………………………………………………………......

REVISION HISTORY

0 28/11/06 Issued for DPI Submission LC DP PH A 22/11/06 Issued for comments LC DP PH Rev Date Description By Chkd App

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III: APPROVALS This Environment Management Plan has been reviewed by Upstream Petroleum Pty Ltd and CRCCO2 Pilot Project Ltd and is approved for the drilling of CRC-1 in 2007.

Approval: CRCCO2 Pilot Project NAME Signature Date Sandeep Sharma UP CPPL Project Manager

Approval: Upstream Petroleum Pty Ltd NAME Signature Date Ian Black UP CPPL Project Manager

Phil Harrick UP HSEQ & Training Manager

IV DISTRIBUTION LIST

Copy No. Recipient 1 CO2CRC Pilot Project Limited – Project Manager 2 Upstream Petroleum Pty Ltd – Project Manager 3 Upstream Petroleum Pty Ltd – HSEQ & Training Manager 4 Upstream Petroleum – Drilling Project Leader 5 Upstream Petroleum – Drilling Supervisor 6 Century Drilling – HSE Manager 7 Century Drilling – Operations Manager 8 Century Drilling – Rig 11 Rig Manager 4 Victorian Department of Primary Industries

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TABLE OF CONTENTS

I: DOCUMENT CONTROL ...... 2

II: DOCUMENT REVISIONS ...... 3

III: APPROVALS ...... 4

IV DISTRIBUTION LIST ...... 4

TABLE OF CONTENTS...... 5

INDEX OF FIGURES ...... 8

INDEX OF TABLES ...... 8

1 INTRODUCTION ...... 9

1.1 Background...... 9

1.2 Purpose and Scope of the Environmental Management Plan ...... 9

1.3 Review and Update of the Environment Management Plan ...... 10

2 LEGISLATIVE FRAMEWORK ...... 11

2.1 Approvals Process ...... 11 2.1.1 Operation Plan...... 11

2.2 Commonwealth Legislation ...... 12 2.2.1 Environment Protection and Biodiversity Conservation Act ...... 12 2.2.2 Native Title Act...... 13

2.3 State Legislation ...... 13

2.4 APPEA Code of Environmental Practice...... 13

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3 PROJECT DESCRIPTION ...... 14

3.1 Proponent Details ...... 14

3.2 Project Location...... 15

3.3 Project Overview...... 17 3.3.1 Site Preparation ...... 17 3.3.2 Drilling Program ...... 21 3.3.3 Schedule ...... 23 3.3.4 Drilling Fluids ...... 24 3.3.5 Well Clean Up...... 25 3.3.6 Abandonment...... 25

4 EXISTING ENVIRONMENT & IMPACT ASSESSMENT...... 26

4.1 Regional Description...... 26

4.2 Geology and Soils ...... 26 4.2.1 Existing Environment ...... 26 4.2.2 Potential Impacts ...... 26

4.3 Hydrology ...... 27 4.3.1 Existing Environment ...... 27 4.3.2 Potential Impacts ...... 29

4.4 Flora ...... 29 4.4.1 Existing Environment ...... 29 4.4.2 Potential Impacts ...... 30

4.5 Fauna ...... 31 4.5.1 Existing Environment ...... 31 4.5.2 Potential Impacts ...... 33

4.6 Aboriginal Heritage...... 34 4.6.1 Existing Environment ...... 34 4.6.2 Potential Impacts ...... 34

4.7 European Heritage...... 35 4.7.1 Existing Environment ...... 35 4.7.2 Potential Impacts ...... 35

4.8 Air and Noise...... 35 4.8.1 Existing Environment ...... 35 4.8.2 Potential Impacts ...... 35

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4.9 Roads and Traffic ...... 36 4.9.1 Existing Environment ...... 36 4.9.2 Potential Impacts ...... 37

4.10 Land Use and Infrastructure...... 37 4.10.1 Existing Environment ...... 37 4.10.2 Potential Impacts ...... 37

4.11 Visual Amenity ...... 39 4.11.1 Existing Environment ...... 39 4.11.2 Potential Impacts ...... 39

4.12 Public Safety ...... 39

5 ENVIRONMENTAL MANAGEMENT ...... 40

5.1 UP Environmental Policy ...... 41

5.2 Environmental Objective...... 41

5.3 Mitigation and Management Measures...... 41

5.4 Roles & Responsibilities...... 50

5.5 Communication...... 51

5.6 Training & Awareness ...... 52

5.7 Monitoring & Auditing ...... 52 5.7.1 Monitoring ...... 52 5.7.2 Auditing ...... 53 5.7.3 Environmental Reporting ...... 53

5.8 Drilling Incidents Reporting...... 53 5.8.1 Reportable Incidents...... 53 5.8.2 Internal Reporting ...... 53

5.9 Environmental Emergency Response Planning...... 54

5.10 Consultation...... 54 5.10.1 Landowners ...... 54 5.10.2 Regulatory Agencies...... 54

6 GLOSSARY & ABBREVIATION...... 55

7 REFERENCES ...... 56

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INDEX OF FIGURES

Figure 1-1 Proposed CRC-1 Location ...... 10 Figure 3-1(a) - Location of the proposed drill and camp sites (34632-CW-10-0011)...... 15 Figure 3-2 Proposed CRC-1 and camp site ...... 18 Figure 3-3 Proposed Access track...... 18 Figure 3-4 Typical Drilling Site Arrangement ...... 19 Figure 3-5 Camp Layout...... 21 Figure 3-6 Summary of Well Design...... 22

INDEX OF TABLES

Table 3-1 CRC-1 Well Location...... 15 Table 3-2 Well Details...... 23 Table 3-3 Drill and Camp sites Construction Duration...... 23 Table 3-4 Typical Water-based Mud Constituents & Toxicity ...... 24 Table 4-1 Significant Flora (DEH, 2006a) ...... 30 Table 4-2 Significant Fauna (DEH, 2006a) ...... 31 Table 5-1 Mitigation and Management Measures ...... 42

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1 INTRODUCTION

1.1 Background

Major stationary sources of carbon dioxide (CO2) such as power stations emit 48% of Australia’s total annual greenhouse gas (GHG) emissions. Capture and geological storage (geo-sequestration) of CO2 is an option for mitigating these emissions to the atmosphere. The Cooperative Research Centre for Greenhouse Gas Technologies Joint Venture (CO2CRC) - a collaboration of Australian and International researchers from government, industry, and leading academic institutions, is undertaking scientific assessment of the injection, storage, and monitoring of CO2 geo-sequestration under Australian conditions. A new operating company, CO2CRC Pilot Project Pty Ltd (CPPL), has been established to hold the tenements and direct all operational activities associated with the demonstration. In February 2006, CPPL secured the license block PPL13 (Petroleum Production License 13) covering an area of 2.65km2 in the on-shore Otway Basin, Victoria. It is planned to drill a new injection well, CRC-1, down-dip from an existing well Naylor-1, in the Naylor field. The full demonstration plant will recover carbon dioxide obtained from the nearby Buttress-1 well located in

PPL11 (Petroleum Production Lease 11) and re-inject CO2-rich gas through CRC-1 into the reservoir for storage and observation. The proposed CRC-1 well is located in South West Victoria, approximately 35 km south-east of

Warrnambool and 2 km south-west of the Boggy Creek CO2 field (see Figure 1.1).

1.2 Purpose and Scope of the Environmental Management Plan

This Environment Management Plan (EMP) has been prepared for the CRC-1 carbon dioxide injection well Drilling Program. This document has been produced to fulfil the environment-related requirements of the Operation Plan for the above wells, as required under the Victorian Petroleum Act 1998 and associated regulations. Safety-related requirements, which forms the other part of the operation plan, are addressed on the Safety Management Plan (Ref: 34632-HS-03-00016). This EMP details the proposed drilling program for the CRC-1 well, identifies and risk assesses potential environmental hazards, and details the management controls to ensure the listed environmental performance objectives and standards are achieved. The scope of this EMP includes site preparation, drilling, testing (if conducted), completion and site rehabilitation of the CRC-1 injection well. The EMP addresses the following issues:

• Section 2 provides a summary of the legislative framework and relevant legislation applicable to the drilling program;

• Section 3 provides a description of the drilling program; • Section 4 the existing environment, issues and potential impacts at the project site; and

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• Section 5 provides details of the environmental management strategies to be adopted during drilling. This includes environmental management strategies, monitoring and auditing requirements and consultation strategies.

Proposed CRC-1

Figure 1-1 Proposed CRC-1 Location 1.3 Review and Update of the Environment Management Plan

This EMP has been developed based upon information contained in the following two Programs:

• Environment Report for Otway Basin Pilot Project: CO2CRC (Ref: 1205_2_v1) prepared by Enesar Consulting; and

• Environment Assessment & Management Plan (Seismic Test Lines Survey): CO2CRC (Ref: CR1205_3_V1) prepared by Enesar Consulting. This EMP is intended to cover all drilling activities associated with the CRC-1 re-injection well. In the event that drilling methodologies alter, new activities are planned or if a new significant environmental effect is identified or alters, this plan will be revised and resubmitted to the regulator for approval.

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2 LEGISLATIVE FRAMEWORK 2.1 Approvals Process

Key production approvals required for this project are controlled through the Victorian Petroleum Act 1998 and associated the Petroleum Regulations 2000, which provides the regulatory framework for the exploration and development for onshore petroleum resources. This legislation is administered by the Victorian Department of Primary Industries (DPI) – Minerals & Petroleum Division. Prior to commencement of any petroleum operation (i.e. any activity associated with petroleum exploration or production) the following requirements must be met (Petroleum Act 1998, S147): • The written consent of the Minister for the petroleum operation (S138); • Reasonable steps are taken to ensure the operation will not contravene the Archaeological and Aboriginal Relics Preservation Act 1972 or the Aboriginal & Torres Strait Islander Heritage Protection Act 1972 (S146); • Written notice of 21 days (or any shorter period that is agreed) is given to owner, occupier or person or body responsible for management of the land (S128); • An operation plan has been accepted by the Minister (S161) (of which this EMP forms part thereof); • The relevant insurances have been obtained and maintained as directed by the Minister (S171); • A rehabilitation bond acceptable to the Minister has been obtained (S173); and • The consent of owners and occupiers of land has been obtained; or compensation agreement entered into with owners and occupiers; or amount of compensation payable to owners and occupiers determined (as per S128)

2.1.1 Operation Plan As detailed above, an operation plan must be submitted to the relevant government Minister for his acceptance (via the DPI). The Operation Plan must contain the following information (S161): a) Identification of the risk of injury or damage that the operation may pose to the environment, to any community, person, land user, land or property in the vicinity of the operations and to any petroleum, source of petroleum or reservoir that the operation might affect; and b) Specifies what the holder of the authority will do to eliminate or minimise those risks; and c) Specifies what the holder will do to rehabilitate the land that will be affected by the operation; and d) Provides the relevant details required for drilling and workover operations required by the Petroleum Regulations 2000 (R6) including: • details of the operation, including the location of wells and any equipment to be used;

• an environment and safety assessment which:

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i. identifies the environment, health and safety hazards and risks associated with the operation; and ii. provides an assessment of the risks; and

iii. identifies the measures to be used to eliminate the hazards and to minimise the risks so far as is practicable; and

• Describes the management systems to ensure that each environment, health or safety hazard is eliminated or the risk is minimised through management measures so far as is practicable.

As stated in Section 1.2, this document has been produced to fulfil the environment-related requirements of the operation plan for drilling activities associated with the CRC-1 well. 2.2 Commonwealth Legislation

2.2.1 Environment Protection and Biodiversity Conservation Act

The Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) enables the Commonwealth to join with the states and territories in a national scheme of environment protection and biodiversity conservation. Under the EPBC Act, actions that are likely to have a significant impact on a matter of national environmental significance will trigger Commonwealth involvement in the state assessment and approval process. Matters defined as nationally significant include: World Heritage properties. National Heritage places. Wetlands of international importance (Ramsar sites). Nationally listed threatened species and ecological communities. Internationally listed migratory species. Commonwealth land and marine areas. Nuclear actions.

A search of the Department of Environment and Heritage (DEH) EPBC Act protected matters website listed all threatened terrestrial and migratory species that may occur within a 1km buffer of the proposed drill and campsite. The search found fifteen (3 flora and 12 fauna) threatened species (endangered or vulnerable) and eight migratory bird species. Sections 4.4 and 4.5 of this document contain a list of these flora and fauna species, respectively, and an assessment of their likely occurrence at the sites. No significant impact to these species is anticipated from the drilling operations. This assessment is based on a number of factors including the very low likelihood that these species occur at or near the sites due to the current disturbed (cultivated) status of each site, the short time frame of drilling operations, the small ‘footprint’ of each site, the scheduled time of year proposed for the drilling of CRC-1 and the management and mitigation measures proposed. Impacts on flora and fauna species are assessed in more detail in Sections 4.4.2 and 4.5.2 respectively.

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The EPBC Act website indicated that there are no threatened ecological communities, no world heritage and no national heritage properties within 1km of the proposed projects sites. Two wetlands of international significant (RAMSAR sites) were revealed during the search but both wetlands are located more than 30 kilometres away from the proposed drill sites. On the basis of the above information it is concluded that no significant impacts to matters of national environmental significance will result from the drilling program with activities expected to attract a ‘non-controlled action’ status. A referral for the project will be submitted to DEH coincident with this EMP submission to DPI. 2.2.2 Native Title Act The Commonwealth Native Title Act 1993 applies indigenous land rights to Crown land, but not to freehold, road reserves and forestry lands in Victoria. All sites associated with the CRCCO2 Pilot are freehold or located within road reserves. The requirements of the Native Title Act 1993 are thereby not triggered. 2.3 State Legislation

The drilling operations must comply with relevant Victorian legislation (including associated legislation), including: • Archaeological and Aboriginal Relics Preservation Act 1972. • Catchment and Land Protection Act 1994. • Country Fire Authority Act 1958. • Dangerous Goods Act 1985. • Environment Protection Act 1970. • Flora and Fauna Guarantee Act 1988. • Heritage Act 1995. • Water Act 1989. • Wildlife Act 1975. The project must also comply with all relevant State Environment Protection Policies (SEPPs) and Industrial Waste Management Policies (IWMPs) during drilling operations. These include: • SEPP (Air Quality Management) • SEPP (Waters of Victoria) • SEPP (Groundwaters of Victoria) • SEPP (Prevention & Management of Contaminated Land) • IWMP (Prescribed Industrial Waste) 2.4 APPEA Code of Environmental Practice

The Australian Petroleum Production and Exploration Association (APPEA) have developed general industry guidelines as to those operating practices which are considered to represent good industry practice in the petroleum industry. While these guidelines have no legislative force, they provide general industry guidance and minimum environmental standards.

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3 PROJECT DESCRIPTION 3.1 Proponent Details

Whilst conducting research into CO2 sequestration the Cooperative Research Centre for Greenhouse Gas Technologies (CO2CRC) identified a potentially suitable reservoir in Buttress as a source of supply of CO2 and a depleted gas reservoir in Naylor for subsequent CO2 injection and storage. CO2CRC Pilot Project Limited (CPPL) was formed in order to manage and test the technology as well as the commercial potential of the area. Upstream Petroleum Pty Ltd (UP) has been contracted by CPPL to act as Project Manager for the drilling of the CRC-1 injection well into the Naylor reservoir. UP is an Australian integrated oil and gas service provider and provides expertise in exploration and production activities under contract to the oil exploration and production industry across a broad range of upstream professional disciplines from well completions to facility management.

The registered office for the operating proponent is: CO2CRC Pilot Project Limited (A.B.N.) Level 3, 24 Marcus Clarke Street CANBERRA ACT 2601 Telephone Number: +61 2 6200 3366 Fax Number: +61 2 6230 0448 Email: [email protected] Web: www.co2crc.com.au Contact Person: Carole Peacock

The operations office and address for correspondence of the proponent’s Project Manager is: Upstream Petroleum Pty Ltd (A.B.N. 49 080 394 985) Level 3, 342 Flinders St Melbourne, VICTORIA, 3000 Telephone Number: +61 3 8625 8400 Fax Number: +61 3 9620 9938 Email: [email protected] Web: www.upstreampetroleum.com.au Contact Person: Ian Black

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3.2 Project Location

The proposed CRC-1 well is located in South West Victoria in the onshore portion of the Otway Basin (Port Campbell embayment). It is approximately 20 km northwest of the town of Port Campbell and 35km southeast of Warrnambool within the Shire of Moyne. The coordinates of the proposed well is provided in Table 3-1. Both the proposed CRC-1 injection well and the camp site are located on a private grazing land on the north-west of the corner of Sodas Road and Brumbys Lane, Nirranda (see Figure 3.1a and Figure 3.1b). Table 3-1 CRC-1 Well Location Wellhead MGA Coordinates (GDA94,UTM Zone 54S) Well Longitude Latitude Easting (m E) Northing (m N) CRC-1 142o 48’ 42” -38o 31’ 50” 657920 5733757

Figure 3-1(a) - Location of the proposed drill and camp sites (34632-CW-10-0011)

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1.5km radius from CRC-1

Figure 3.1(b) – Aerial Photo of Property within 1.5km of CRC-1

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3.3 Project Overview

3.3.1 Site Preparation

Preparation of the drilling area involves: • Site access to drilling and camp sites (including upgrade & construction of a portion of road). • Clearing of the drill pad site. • Removal and stockpiling of top soil. • Laying of hard stand material. • Excavation of a flare pit (6mx7.5mx2m deep); • Construction of sump, cellar and turkey’s nest. The existing unsealed access track along the southern boundary of the project area will be widened to ∼5m and stabilised by adding road base materials (i.e. crushed sandstones). This access track will connect Brumbys Lane to Sodas Road for egress by heavy transport. The drill site will occupy an area of approximately 130 m by 100m (1.3ha) excluding access roads. The campsite will occupy approximately 60 m by 70 m (0.4Ha), and will be located a few hundred metres to the west of the proposed CRC-1 well site inside the Dumsney Property. Typical drill site and camp site arrangement is shown in Figure 3-4 and Figure 3-5. Site preparation at the drill and camp site will include clearing of the area, removal of top soils, compacting the site and covering the area with crushed sandstone. Topsoil removed during drill pad and camp site preparation (as required) will be stockpiled in along the perimeter of the area or in accordance to landowner requirements. The camp site will consist of six sleeping quarters, a kitchen and dining area, recreation room / dry store / office, ablutions (toilets, showers and laundry), electricity generators, a freezer, a water tank / fuel tank, a rubbish skip and lighting. Potable water for the campsite will be provided by the landowner or external source. Sewage and grey water will be collected in site holding tanks which will be periodically pumped out and disposed offsite at an appropriately licensed EPA facility.

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Sodas Road

Figure 3-2 Proposed CRC-1 and camp site

Brumbys Lane Extension to Sodas Rd

Figure 3-3 Proposed Access track extension

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Flarepit 6 m x 7.5 m x 2 m

Turkeys nest

Sump 50 m 30 m 45 m

15 m

10 m

Drilled hole centre 4 m 100 m

Levelled hardstand area

55 m

10 m 60 m 50 m 10 m 130 m

Figure 3-4 Typical Drilling Site Arrangement

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Figure 3-5 Camp Layout

3.3.2 Drilling Program CPPL is proposing to drill the CRC-1 injection well during February 2007 using Century Rig 11. The well will be drilled and completed using standard onshore drilling operations and procedures, which include: Drilling and coring a monobore well, down-dip of existing Naylor-1 well with a rotary drilling rig using recirculated low toxicity water-based muds. Logging the well. Installation of casing slips and land casing (design for injection). Note downhole

completion & wellhead will be designed for high CO2 service for life of well (>10 yrs). Perforating the Eumeralla formation with E-line or slickline run casing guns. Installing downhole gauges on slickline and injection testing with brine or CO2 Suspending the Eumeralla formation with a bridge plug and dump bailed cement

Perforating the Waarre C formation, where CO2 will be injected, with E-line or slickline run casing guns. Well cleanup (if required). Testing injectivity with brine (if required).

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Use slickline to perform Static pressure / temperature gradient survey & to run pressure gauges into X nipple under Waarre C. Partial site rehabilitation following the drilling of the well. Note it is the intention that the current site lease reduces after 12 months to a reduced lease area for the wellhead and pilot facilities. Should future well intervention activities be identified, the full area will be retained and current lease extended. A summary of the well design at the completion of operations is outlined in Figure 3-6.

Figure 3-6 Summary of Well Design

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The key features of the proposed drilling operations for CRC-1 are summarised in Table 3-2. Table 3-2 Well Details Description Feature CRC-1 Location Nirranda Exploration Licence No. PPL13 142o 48’ 42” Well site coordinates -38o 31’ 50” (GDA94) (Surface tolerance: 50m) Timing of drilling operation 20 days Drill pad area 1.3ha Accommodation Camp site for max 32 people Expected well depth 2250 m KB Target formation Waarre C 5 Surface hole diameter 9 /8” 5 Surface casing diameter 7 /8” Surface Casing Depth 500mKB 3 Production hole diameter 6 /4" 1 Production casing diameter 4 /2" Drill rig Century Rig 11 • Preferential use of Princes Highway minimising access to Great Ocean Road Proposed rig mobilisation route • Local use of roads thereafter • Route to be established via transport plan consultation.

3.3.3 Schedule The expected durations for construction, drilling, de-mobilisation and site rehabilitation at each of the four sites is outlined in Table 3-3.

Table 3-3 Drill and Camp sites Construction Duration

Activity CRC-1 Camp Site Lease and access road 10 days 2 days construction Mobilisation and set up 8 days 2 days Rig/camp on location 20 days 35 days (excluding mob) Rig/camp demobilisation 4 days 2 days

Site rehabilitation 7 days 1 day

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3.3.4 Drilling Fluids The upper sections of the well will be drilled utilising water and pre-hydrated bentonite sweeps to clear the hole. Bentonite is natural clay and is considered inert with very low toxicity (Swan et al, 1994). The lower sections of the well will be drilled using a partially hydrolysed polyacrylamide (PHPA) polymer / KCL water based mud (WBM). Potassium Chloride (an inorganic salt) in water is highly soluble and readily dissociates into ions. In soil, transportation and leaching of the ions is affected by the presence of mineral clays, pH and organic matter. Studies undertaken in fresh-water environments (OECD, 2001) indicate that the chronic and acute toxicity of KCl is >100mg/l and is not hazardous to freshwater organisms. In plants, potassium is one of three major nutrients and chloride is an essential micronutrient for photosynthesis and osmotic regulation. Residual KCl left in the environment from drilling activities is not considered harmful to either plant or freshwater environments. Other constituents present are minor in concentration and not expected to carry any environmental impacts. Synthetic based drilling fluids will not be used on this drilling program. Table 3-4 provides details of the WBM composition, the additive function and the toxicity details for each of the additives. Water for drilling operations (such as for mud mixing and cementing) will be supplied from an external site source transferred via tanker to site. Table 3-4 Typical Water-based Mud Constituents & Toxicity Concentration Chemical Name Function (ppb) Upper Hole Section Bentonite Viscosifier 20-40 Barite Weighting Agent - Caustic Soda pH control 0.2 Lower Hole Section Caustic Potash pH control 0.2 Partially Hydrolyzed Shale Inhibitor 2 Polyacrylamide

KCL Shale inhibitor 2 Polyanionic Cellulosic Viscosifier / Fluid Loss 1.0 Polymer Agent / Shale Inhibitor Aldehyde Biocide 0.1 Barite Weighting Agent 30

Oxygen Scavenger O2 Scavenger 0.5 Xantan Gum Biopolymer Viscosifier 0.5-2.0

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3.3.5 Well Clean Up

Well cleanup activities may be required at the CRC-1 well site prior to the testing of the well for its injectivity with brine. This process involved the controlled release of well fluids from the well via a surface valve system to the onsite flare pit for combustion. The Waarre C formation (now depleted) and the Eumeralla are expected to contain minimal hydrocarbon liquids, however if required, a separator will be mobilised for gas treatment prior to flare. Any collected residues will be disposed in accordance with EPA requirements. 3.3.6 Abandonment Well abandonment procedures are designed to mitigate the risk of contamination between subsurface aquifers with different pressures and salinity. During drilling the surface casing will isolate all shallow aquifers to the programmed depth setting of approximately 500m. If the well is to be unexpectedly abandoned at the end of the drilling stage then an abandonment program will be lodged with the DPI for approval. In general terms, should well abandonment be required it will involve the following: Placing cement plugs in the open hole as required to isolate aquifers, and across the surface casing shoe. Cutting the surface casing at 1m below the surface and setting of a 6m surface cement plug. Removal and backfilling of cellar. Posting an abandonment plaque on the nearest fence line. All waste drilling fluids and solid wastes from the sump will be disposed of according to EPA guidelines. Removing any hydrocarbon contaminated soil (appropriate to landuse risk levels). Backfilling excavations and site restoration, including the removal of road gravel and sheeting materials. Ripping the cleared surface, respreading of any stockpiled topsoil and reseeding as necessary (in consultation with the landowner). Retaining perimeter fencing until vegetation is re-established.

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4 EXISTING ENVIRONMENT & IMPACT ASSESSMENT This chapter describes the existing environment of the project site and the issues and potential impacts at the sites. The potential impacts are assessed on the basis that mitigation and management measures, as outlined in Section 5, are implemented.

4.1 Regional Description

The south-west of Victoria where the project region is located has a temperate climate with warm, dry summers and cool, wet winters. The mean annual rainfall for Warrnambool (the closest town with climate recordings) is 743 mm, with a mean maximum temperature of 17.9ºC and mean minimum temperature of 9.7ºC. The period from December to March has the lowest average rainfall totals (between 32 and 48 mm per month) and fewest number of rain days (BoM, 2006). The region has a strong agricultural industry, predominantly dry-land beef and dairy cattle grazing. 4.2 Geology and Soils

4.2.1 Existing Environment 4.2.1.1 Geology

The CRC-1 well is located on Tertiary marine sediments (Port Campbell Limestone), dating from the middle to late Miocene (18 million years ago (MYA) to 5.2 MYA) (Geological Survey of Victoria, 1994). Port Campbell Limestone is composed of generally fine-grained calcarenite and minor calcilutite, with minor coarse-grained calcarenite, quartz sand and clayey silt. Fragments of bryozoans, molluscs, echinoids and brachiopods are present and sediments are weakly cemented and moderately well bedded (Geological Survey of Victoria, 1994). The Port Campbell Limestone is underlain by a thick sequence of Gellibrand Marl, both of which form part of the Heytesbury Group. Elevation around Warrnambool is between 0 to 50 m above sea level (asl) (DPI, 2006a). 4.2.1.2 Soils

The project sites are located within the Hamilton-Geelong soil-landscape province of Region VIII (Walker et al., 1983). The dominant soils in this landscape province are shallow, stony chocolate soils with brown earths occurring on cinder cones. Soils on rises are likely to be stony chocolate soils with prairie soils occurring in adjacent swales (Walker et al., 1983). Soils of the region are productive and predominantly support the grazing (beef and dairy cattle) and horticulture industries. 4.2.2 Potential Impacts

4.2.2.1 Loss of Topsoil

Potential impacts to productive topsoils can be mitigated by minimising the area disturbed, and by removing topsoil from the project sites and access road areas prior to construction. Topsoil removed from the construction areas will be stockpiled along the perimeter of the drill/camp sites for subsequent re-spreading and site rehabilitation.

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4.2.2.2 Erosion and Sedimentation Potential

Erosion is the most common potential environmental risk associated with construction projects. The Drilling activities generally occupy a small footprint and soil disturbance within that footprint is small. Poor drainage control of topsoil/spoil stockpiles may lead to erosion and sedimentation within catchments. UP will adhere to industry guidelines (e.g. APPEA Code of Environmental Practice, 1996) and protocols relevant to the installation of erosion control devices. Controls such as erosion berms and silt barriers will be installed in a manner that suits local conditions and they will be inspected and maintained regularly and prior to, and after, heavy rain events. Erosion controls will also be put in place to minimise sediment entering any drainage lines which may cause impacts to any roadside vegetation. 4.2.2.3 Compaction

Drilling operations require light compaction of hardstand areas to ensure rig stability. Compaction of the soils will also occur at the campsite (if required) and access tracks. Soil ripping and scarifying of compacted areas during rehabilitation, where necessary, will remediate impacts caused during drilling operations. 4.2.2.4 Importation of Materials

Materials imported to site (e.g., crushed sandstone or gravel for hardstands) have the potential to introduce weed species or soil pathogens. Where possible, the existing stockpiled soils (near Naylor 1) will be used for site construction. Imported material will be sourced from a suitable existing local quarry. The material of choice will be crushed sandstone, given crushed rock is difficult to rehabilitate and causes problems to cattle. 4.2.2.5 Subsidence

Soils have the potential to subside if disturbed. Consequences of subsidence include changes to local drainage patterns, which may in turn lead to erosion. Soils at the proposed lease areas may be subject to subsidence. 4.2.2.6 Contamination

There is a potential for soil contamination, particularly around flare and chemical storage area. To prevent contamination, chemicals will be stored within an on-site containment system and controlled in a manner that prevents environmental harm. Also, the flare-pit and sump-pit will be lined or constructed from compacted clay materials to prevent leaching of contamination to land or groundwater.

4.3 Hydrology

4.3.1 Existing Environment

No natural wetlands exist in the immediate vicinity of the project site. The proposed CRC-1 drill site is not within any declared surface water supply catchments.

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The proposed CRC-1 is located within the Otway Coast Basin, which is located within the South East Coast Drainage Division in Western Victoria. Otway Coast Basin contains many south flowing rivers, such as Curdies River which is located approximately 2km east of the proposed CRC-1 well site. The CRC-1 well site is located on undulating land with a gradual falling gradient east to the Curdies River. The Curdies River Basin drains to the Southern Ocean at Peterborough. The proposed CRC-1 site is located outside the 1 in 100 year floodplain associated with the Curdies River (DES, 2006e) (refer Figure 4.1). Groundwater aquifer flow direction is to the southwest (Sharma, 2004) to the coast. The project area lies adjacent to (but not within) the Nullawarre groundwater water supply protection area (DSE, 2006d).

Figure 4-1: Surface Water & Floodplain (1 in 100 year flood) details for Project Area (DSE, 2006e)

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4.3.2 Potential Impacts

There is potential for contamination of surface-water (i.e., the drainage lines near the drill sites) or groundwater through contaminated water runoff from the drill sites or leaching of chemicals stored on site through soils if control measures are not put in place. The implementation of good practice construction and refuelling techniques/locations, hazardous substance storage and spill management will mitigate the potential for such contamination. These activities will not be situated in proximity to any surface water bodies. Diversion drains will be installed to direct runoff away from the project site. The site will also be constructed with sediment control drains around the disturbed work areas to prevent sediment runoff from leaving the site. When excavating the sump, an assessment will be made as to whether a liner is required. Should the soil appear highly permeable and/or if contamination of shallow groundwater is likely, a polyurethane sump liner will be installed prior to drilling, and will be removed after drilling. Otherwise, initial drilling fluid waste will line the soil surface with a layer of bentonitic clays that will reduce seepage into the surrounding soil. Additional bentonite can be spread, as required, to further seal the soil. Drill fluids, with drill cuttings and wastewater will be temporarily stored in the excavated sump at the drill site. At the completion of drilling, all liquids will be disposed in accordance with EPA requirements with solids collected from the sump buried onsite. The sump will be backfilled as soon as practicable to avoid water collection. Any environmentally hazardous materials (classified as prescribed industrial waste) generated during drilling activities will be disposed according to EPA requirements. Sewage from the campsite will not be discharged from site. Holding tanks will be put in place to contain both grey water and black wastes. The holding tanks will be emptied regularly by an EPA licensed third party for disposal at an appropriately licensed waste disposal facility.

4.4 Flora

4.4.1 Existing Environment

The proposed CRC-1 drill site is situated on privately owned farmland that is currently used for feedstock, horticulture or cattle grazing. Historic clearing and grazing has significantly altered the species richness and abundance of indigenous flora and fauna in the area. The access track to be constructed is currently cleared of native vegetation (see Figure 3.3) and is dominated by grassy understorey. 4.4.1.1 Nationally Significant Flora

Four nationally threatened plant species may occur within 1km of the drill site and campsite (Table 4-1), as listed on the DEH EPBC Act protected matters website (DEH, 2006a). The likelihood of their occurrence at the sites is outlined in Table 4-1.

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4.4.1.2 State Significant Flora

A search of the DSE Biodiversity Information Management (DSE, 2006) reveals that no species of state conservation significance (i.e., threatened species) exist in or around the project sites. Table 4-1 Significant Flora (DEH, 2006a)

EPBC Likelihood of Occurrence at Sites Flora Status

Purple clover, Clover Glycine Unlikely to occur in area due to intense grazing. Species V Glycine latrobeana recorded from grasslands and grassy woodlands (NSR, 2002). Maroon Leek-orchid, Slaty Leek- Unlikely to occur in area due to intense grazing. Found in orchid, Stout Leek-orchid, E grassland, heathland and grassy woodland on rich sandy and French’s Leek-orchid black clay loams (Backhouse and Jeans, 1995). Prasophyllum frenchii Leafy greenhood Unlikely to occur in area due to intense grazing. Prefers open V Pterostylis cucullata forests on moist slopes (Backhouse and Jeans, 1995) Unlikely to occur in area due to intense grazing. Grows primarily in coastal heathland, grassland and woodland, known Metallic Sun-orchid E from conservation reserves (Backhouse and Jeans, 1995). Thelymitra epipactoides DSE records show the last recording of the species in the area was in 1959. Key: E = endangered, V = vulnerable. Source: EPBC Act Protected Matters Search Report, 2006.

4.4.2 Potential Impacts The proposed drilling operations will affect approximately 1.3ha of land, which is already highly disturbed due to grazing, feedstock or horticultural activities. It is possible that some species of conservation significance, including the nationally threatened flora species listed in Table 4-1 may exist in the vicinity of the project sites. However, if species are present they are likely to be in the road verges where disturbance is less frequent (infrequent mowing versus intense grazing). They are not likely to be within the project’s footprints. No significant tree clearing is expected during the drilling and construction phase of the project if the preferred access route can be used. If any small trees present an obstacle to movement along the access track, trimming of branches will be the preferred option. Clearing will be limited to grassy understorey (predominantly weedy) to construct an access way to the proposed drill site. Each site will be returned to the current vegetation composition of pasture grasses (using seed mixes agreed with the landowner) following completion of operations and rehabilitation.

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4.5 Fauna

4.5.1 Existing Environment 4.5.1.1 Nationally Significant Fauna

The proposed drilling operation is located within paddocks with no native vegetation (refer to Section 4.4.1). Small native mammals are unlikely to use this habitat because of lack of suitable vegetation cover (i.e., a shrubby protective understorey) and food sources. Introduced mammal species however, such as the rabbit (Oryctolagus cuniculus) and fox (Vulpes vulpes), are likely to be common in the area. Birds species are likely to comprise common open country birds such as the magpie (Gymnorhina tibicen), common starling (Sturnus vulgaris) and raven (Corvus spp.), as well as wetland species and other water birds that are attracted to the area by the Curdies river. A search of EPBC database (DEH, 2006a) indicated that eleven threatened fauna species (endangered or vulnerable) and 7 migratory species may occur within 1 km of the drill sites and campsite (see Table 4-2).

4.5.1.2 State Significant Fauna

EPBC Scientific Name Likelihood of Occurrence in Project Area Status

Birds Breeds in Tasmania and migrates to mainland Australia in Autumn (Swift Parrot Recovery Team, 2001). Feeds on winter-flowering Swift parrot eucalypts in Victoria. Proposed drilling sites are not likely to E Lathamus discolor provide critical habitat due to sparse eucalypt cover. Swift Parrots are also not expected to occur in the area because drilling occurs in summer. Breeds in Tasmania and migrates to mainland Australia in Orange-bellied parrot Autumn. In western Victoria and South Australia Orange-bellied CE, M Neophema chrysogaster Parrots live on the beaches and in dune systems immediately behind the shore (DSE, 2006c). The Australian Painted Snipe is usually found in shallow inland wetlands, either freshwater or brackish, that are either Australian painted snipe V permanently or temporarily filled. It nests on the ground amongst Rostratula australis tall reed-like vegetation near water, and feeds near the water’s edge and on mudflats (DEH, 2003). No wetlands at project sites White-bellied Sea-Eagles are a common sight in coastal and near White-bellied sea-eagle M coastal areas of Australia. A marine species, it is not likely to find Haliaeetus leucogaster suitable resources in project area.

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EPBC Scientific Name Likelihood of Occurrence in Project Area Status

White-throated Needletails are non-breeding migrants in Australia. They arrive in Australia from their breeding grounds in the White-throated needletail northern hemisphere in about October each year and leave M Hirundapus caudacutus somewhere between May and August and occur in large numbers over eastern and northern Australia (Australian Museum, 2003). May migrate through project area Breeds within heavily vegetated gullies in forests and woodlands, Satin flycatcher uses trees in woodland, scrub and open country during migration. M Myiagra cyanoleuca Wide distribution along eastern Australia (Pizzey, 1987). May migrate through project area. Prefers dense, damp rainforest, woodland and scrubland, straying Rufous fantail M to open country during migration (arriving in Victoria in October) Rhipidura rufifrons (Pizzey, 1987). May migrate through project area. Often seen in small groups or singly in freshwater wetlands on or Latham’s snipe, Japanese near the coast, generally among dense cover. Latham's Snipe is a snipe. M migratory wader, arriving in Australia mainly in September and Gallinago hardwickii leave the south-east by the end of February (Australian Museum, 2006). May migrate through project area.

Painted snipe May overfly or forage in shallow, freshwater wetlands (Lane, M Rostratula benghalensis s. lat. 1987) east of the project sites. Not likely to occur in project area

Mammals

Forest dependent species. Has been found on the margins of Spot-tailed quoll, tiger quoll farmland, its preferred habitats include escarpments, gullies, Dasyurus maculatus E saddles, and riparian habitats as well as rocky areas (DEH, 2004) maculatus (s. lat.) Project site is within marginal habitat. Insufficient understorey cover (Strahan, 1995) present at all project sites for this species. Prefer areas with relatively dense vegetation up to one metre Southern brown bandicoot E above the ground to provide cover (Haby, 2006). Insufficient Isoodon obesulus obesulus understorey cover present at the project site for this species. Typically roost in caves, mines, rock crevices, tunnels, culvert, etc depending on the season, reproductive stage and sex. Only two Southern Bent-wing bat breeding colonies exist, Bat Cave near Naracoorte and Starlight Miniopterus schreibersii CD Cave near Warrnambool. Wintering sites disperse throughout bassanii south western Victoria (DEH, 2006b). Preferred habitats don’t exist near the site. Inhabits coastal heaths and dry and wet sclerophyll forests. Dense Long-nosed potoroo (SE understorey with occasional open areas is an essential part of habitat, and may consist of grass-trees, sedges, ferns or heath, or mainland) V of low shrubs of tea-trees or melaleucas. A sandy loam soil is also Potorous tridactylus tridactylus a common feature (DEC, 2006). Insufficient understorey cover present at the project site for this species.

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EPBC Scientific Name Likelihood of Occurrence in Project Area Status

Prefers healthy ridgetops and slopes within sclerophyll forests, heath land and open forest. Habitats are characterised by a Konoom, Smoky mouse E diverse array of shrub species (NSW National Parks and Wildlife Pseudomys fumeus Species, 1999). Pasture is not likely to provide adequate habitat for this species. Ray-finned fishes

Dwarf galaxias May be present in local creeks and rivers, such as the Curdies V Galaxiella pusilla River – but no creeks in or adjacent to project site.

Australian grayling May be present in local creeks and rivers, such as the Curdies V Prototroctes maraena River – but no creeks in or adjacent to project site.

Frogs

Southern bell frog, growling Found in vegetation within or at the edges of permanent water grass frog, warty bell frog. V (Cogger, 1996; Robinson, 1995). Not expected at project sites Litoria raniformis due to lack of permanent water. Key: CD = Conservation Dependent, CE = Critically Endangered, E = endangered, V = vulnerable, M = Migratory. Source: EPBC Act Protected Matters Search Report, 2006.

4.5.2 Potential Impacts The open paddock habitats of the project sites are not considered significant for the survival of any of the fauna species of national conservation significance. No significant impacts to these species (as defined by the EPBC Act Administrative Guidelines on Significance) are expected. The wetlands east of the project sites may be of importance to migratory wetland birds, such as those listed in State Significant Fauna Table 4.2 but these habitats will not be directly or indirectly affected by the drilling program. During the drilling and construction phase of the project, fauna utilising the windbreak and the roadside vegetation along Sodas Road near the proposed CRC-1 well, may be temporarily disturbed by noise. The level of noise disturbance is not considered to be significant because of its short duration and because fauna in the area are currently subject to noise emanating from traffic, farm machinery and cattle. Artificial light from floodlights at the project sites may discourage native nocturnal species (such as possums) from frequenting nearby habitat for the duration of the project. Kangaroos that may graze in the area have sufficient pasture resources surrounding the sites and are adapted to numerous ongoing disturbances. Therefore, kangaroos are unlikely to be affected by temporary drilling activities. Additional slow-moving traffic associated with the drilling program is not likely to pose any greater threat of road injury or death to ground-dwelling animals than what currently exists. Traffic controls measures will be instituted as necessary.

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While the Orange-bellied Parrot (Neophema chrysogaster) has been identified as potentially occurring within the region, the presence of this bird at the project site, located in a heavily grazed (limited seed availability) location approximately 5.2km inland during periods outside their normal migratory time period (late-March to October) (Parkes & Wildlife Service Tasmania, 1998), is highly remote. Given the small footprint of the project sites and short time-span in which works will occur, potential impacts on native fauna from the drilling program and associated activities are expected to be minor. 4.6 Aboriginal Heritage

4.6.1 Existing Environment Aboriginal cultural heritage remains are a record of the past occupation of the landscape by Aboriginal people. There is the potential for isolated Aboriginal archaeological artefacts (e.g., stone tools) or surface scatters (e.g., shell middens) to be present on land within the project area. These are more likely to occur in areas close to sources of permanent water (rivers, creeks and wetlands) or around stony rises. Most historical accounts of Aboriginal people in the southwest region of Victoria refer to activities centred around the coast or the lakes to the north of the region (Enesar, 2005). Aboriginal Australia Victoria holds no records for Aboriginal archaeological sites or places within the proposed drilling site and campsite. For the purposes of the Commonwealth Act, the proposed CRC-1 well is located within the area of Framlingham Aboriginal Trust. Advice provided by the Framlingham Aboriginal Trust (Neil Martin pers.com, 2006) indicated that due to the existing disturbed nature of the CRC-1 well site location, while the possibility of aboriginal relics exists in the area, a pre-construction site survey was not necessary.

4.6.2 Potential Impacts

Construction and drilling activities for CRC-1 will not impact on any registered archaeological sites. Potential impacts to unknown Aboriginal archaeological artefacts are only likely to occur during site construction (i.e., topsoil removal), though this is unlikely given the absence of surface artefacts and the low site potential at CRC-1 well site. Furthermore, the CRC-1 site has been subject to on-going ground disturbance through grazing activities which would suggest a low potential to yield undiscovered archaeological material during drilling facility setup. An Aboriginal Consultant, as recommended by Framlingham Aboriginal Trust, will be engaged to oversee the removal of top soils. Mitigation and management measures, should an artefact be uncovered during construction, are outlined in Section 5.3 (Table 5-1).

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4.7 European Heritage

4.7.1 Existing Environment

Visits to the project sites and a search of the Victorian Heritage Register (Heritage Victoria, 2006) indicate there are no registered significant heritage sites (of non-Aboriginal origin) at or near the drilling site. 4.7.2 Potential Impacts

No impacts to registered significant heritage sites will occur as a result of the drilling program.

4.8 Air and Noise

4.8.1 Existing Environment

4.8.1.1 Air Quality The existing air quality of the local area is good, due to the lack of heavy industry, sparse population and subsequent low level of air pollutant emissions in the immediate area. Local unmade (i.e., dirt or gravel) roads contribute to low levels of dust from vehicle travel. Local and regional sources of air emissions are from large dairy operations, and vehicle and machinery use. Major industrial facilities in the area include the offshore BHP Minerva Gas Plant (± 13km southeast of the project site) providing gas to South Australia and gas condensate to Geelong and TRUenergy underground gas storage and processing facility (± 20km east of the project site) supplying gas to metropolitan Melbourne and Geelong. The Woodside Otway Gas Plant – currently under construction, is immediately adjacent to the north of the TRUenergy facility. While noise in the area can be highly variable, it is considered low when compared to a metropolitan area. Sources of existing noise in the local region are dominated by natural noise such as wind and fauna (i.e., birds, insects and livestock), farm machinery and vehicle noise from local roads.

4.8.2 Potential Impacts

4.8.2.1 Air Quality

The primary impact on air quality during drilling operations is typically from dust generated from the clearing of soils during construction and from exposed soils during drilling. To travel to each of the project sites, drilling-related traffic will be required to travel on short sections of unsealed roads that will generate dust. Given the small scale and temporary nature of soil clearing and drilling and the limited sensitive receptors (residences) near the CRC-1 site (refer Section 4.8.2.2) the dust impacts will not cause a significant long-term nuisance. Emissions of nitrous oxides, sulphur oxides and carbon monoxides associated with the exhaust of the drilling machinery, support vehicles, compressors, generators and flares will occur. These emissions are temporary and minor in quantity and are not likely to result in significant air quality impacts during drilling operations.

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4.8.2.2 Noise

Drilling operations will give rise to a temporary increase in ambient noise levels within the immediate vicinity of the CRC-1 drill site. Noise emissions will result from the drill rig’s pumping, rotating, winching & power generation equipment, vehicles and construction machinery. The noise levels generated by construction will vary in intensity and characteristics depending upon the combination of equipment in operation at any one time and the location and duration of the individual activities. Construction and rehabilitation activities will be limited to daylight hours, but drilling operations will take place 24 hours/day. Prevailing winds and weather conditions will also affect the noise levels experienced in the vicinity of the drill site. The nearest occupied dwellings are located at the following distances from the CRC-1 well location (refer Figure 3-1(b)): • 800m and 1.3km to the west; • 1.4km to the west-north-west; • 1.2km north-east; • 1.2km to south-east (sheds apparent @ 700m south-east); and • 700m & 1.2km to south-west. At these dwellings, EPA Interim Guidelines for Control of Noise from Industry in Country Victoria (N3/89) applies. In accordance to the guideline, noise during the construction activities should not exceed 68dB(A) during day time, 37dB(A) in the evening and 32dB(A) at night time (EPA, 1989). Mitigation measures to reduce the impact of noise during drilling will include:

• All residents within 5km radius of the drill sites will be notified via letter drops. • Personal consultation with the nearest residents to the project sites (within 1.5km radius). Nearby residents will be notified ahead of potentially noisy events. Where necessary, landowners will be offered the opportunity to temporarily relocate for the duration of drilling activities.

• Appropriate selection and modification of equipment. Silencers will be installed on the mud pumps, generator set motors (for both drill sites and campsite).

• Hay bales will also be used as noise barrier to mitigate noise impacts (as required).

During any well cleanup activities, noise and light will emanate from the flare. Accordingly, the flare line will be dug into a pit to reduce noise and light emissions. However, given the expected short duration of any cleanup operations, minimal flare emissions are anticipated.

4.9 Roads and Traffic

4.9.1 Existing Environment

The major road in the area is the Great Ocean Road. The Great Ocean Road is one of the major transport routes for the area, connecting the towns of Nullawarre, Nirranda and Peterborough and servicing the tourism needs of the area. The road is a sealed, split road for its entire length with a

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moderate traffic load, consisting of light and heavy vehicles, such as freight vehicles and dairy trucks. Most of the other roads in the vicinity of the project are single lane, unsealed roads used predominantly by local traffic with a light traffic road. The CRC-1 site will be most likely accessed via Brumbys Lane, an unsealed public road which is largely unused and only subject to occasional farm traffic. The existing unsealed access track will be upgraded to connect Brumbys Lane to Sodas Road. 4.9.2 Potential Impacts

There is likely to be minor disruption to local traffic during drilling operations. Equipment and material transport routes and schedules will be planned to minimise disruption to local residents and the general public. Project-related vehicles, machinery and the drill rig (truck-mounted during transport) will use the Princes Highway & Great Ocean Road as the main transport route to the drill sites, with escort vehicles and other traffic management methods employed as required to ensure the safety of other road users. The majority of heavy vehicle traffic for the project will occur during construction and mobilisation to /demobilisation from the drill site. During drilling operations, traffic will comprise mainly of fuel, water & supply trucks.

4.10 Land Use and Infrastructure

4.10.1 Existing Environment

The project site is located on privately owned farmland, primarily grazed by cattle (Enesar, 2005) Infrastructure on these properties includes gates and fences, milking sheds, stock watering points and overhead power lines. The Naylor-1 well (hydrocarbon well) is located approximately 300m to the west of the CRC-1 site. Also present are groundwater wells although the nearest well is approximately 1km south-east. Existing oil and gas infrastructure, including petroleum wells and pipelines in the vicinity of the CRC- 1 well are provided on Figure 4-2. Note that an existing Origin Energy Limited owned gas transmission pipeline (Pipeline Licence PL240 Diameter: 220mm, Depth: 1200mm) (Pressure Rating 13.8MPa) runs along the eastern boundary of the proposed CRC-1 site on Sodas Road. A small gas pipeline runs from the Naylor-1 well to a small fully fenced valve compound located adjacent to Sodas Road before connecting to PL240. Existing powerlines within the area are located along the Great Ocean Road and Callaghans Rd to the north. A 220kV above-ground powerline to support the demonstration plant site activities will be installed as part of the overall pilot project (not a requirement for drilling activities). The powerline extension will be installed along Sodas Road from Callaghan’s Road. No known telecommunications infrastructure is available in proximity to the site. 4.10.2 Potential Impacts

The drilling operations will cause a temporary reduction in the area available for grazing. It is recommended that grazing is not undertaken on the disturbed areas until vegetation has re-

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established which may take up to six months. During construction and drilling operations, the presence of the drill rig and vehicles attending the site may cause some disturbance to farm management practices. The drill pads and camp site will be separated from surrounding farming operations by temporary fencing or negotiation with the landholder to move livestock to other paddocks. Access to residences will not be impeded. No long-term impact to land use is expected. Potential impacts to existing infrastructure include the disturbance of and damage to third party infrastructure or property. Disturbances of this nature can lead to disruptions of services such as electricity distribution and gas transmission networks. Earthworks to be undertaken at site for drilling and access road infrastructure installation should not interfere with the existing gas transmission pipeline infrastructure. Any power-pole installation which occurs along Sodas Rd will observe the ‘Dial-before-you-Dig’ notification requirements with Origin Energy and appropriate buffer distances for soil disturbance. Any site activities which involve proximity to power lines will involve ‘spotters’ as required.

Figure 4-2: Oil & Gas Infrastructure & Groundwater Wells in Proximity to CRC-1 well site (DPI, 2006)

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4.11 Visual Amenity

4.11.1 Existing Environment

The project sites are located within a rural landscape, dominated by undulating, dryland pasture and interspersed with farm dams, windbreaks and roadside vegetation. 4.11.2 Potential Impacts

Due to the open pasture nature of the project sites, the drill sites and the drill rig will be visible from the immediate surrounding environs, including local access roads. The campsite is to be located midway along the newly created access road approximately 1.5km east of the Great Ocean Road. Given the open nature of the pastureland the camp will be visible to the nearby farm residence located approximately 800m to the west of the well site. The CRC-1 drill site, lying approximately 1.6km east of the Great Ocean Road should not be seen from other adjacent and nearby houses or the Great Ocean Road. All visual impacts will be minor (i.e., will not interfere with the rural nature or charm of the area) and will be short-term. The project sites will be rehabilitated upon project completion to ensure they are integrated back into the rural landscape. Floodlighting of the CRC-1 site at night will be visible from the nearby farm residence however no direct lighting impacts should be experienced. The glow of the light may be visible for some distance and will stand out in what is normally a dark area that does not have street lighting or other night lights as would be found in nearby towns or the suburbs of Melbourne. The overall impact is considered to be minor and not significant given the short-term nature of the drilling campaign. 4.12 Public Safety

There will be no public access to the CRC-1 drill site. UP will ensure that these risks are managed to minimise their potential occurrences, and has prepared a Safety Management Plan (Ref: 34632- HS-03-00016) for the drilling program. A copy of this document will be maintained at the drill site.

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5 ENVIRONMENTAL MANAGEMENT

Upstream Petroleum (as responsible party for the CRC-1 drilling operations) has implemented its Integrated Management System (IMS) to fulfil its environmental policy and objectives and act in an environmentally responsible manner. The IMS is certified to AS14001 and is supported by a set of Management System Standards (MSS) which provide a framework for the management of quality, health, safety and environment throughout Upstream Petroleum’s operations. The MSS applies to all aspects of UP’s operations and maintenance activities including contractors and other third parties. The MSS is designed specifically to:

• Provide a set of performance standards covering the various aspects of HSEQ management. These standards are developed to meet the requirements of UP’s policies and the requirements of relevant legislation;

• Provide an auditable trail from policy statement to operational documents that define activities managed by UP; and

• Be consistent with International and Australian Standards for quality, safety and environmental management. The MSS has been developed specifically to ensure and encourage the input of employees in developing and maintaining the procedures and initiatives which meet the MSS standards. In this way, all employees are able to perform their activities equipped with a clear understanding of their role in the processes of UP’s goal of achieving HSEQ excellence. The MSS takes into account such aspects as: • An on-going operational structure to implement the MSS; • Ensuring HSE hazards/aspects (routine and non-routine) are identified; the risks are assessed and subsequently eliminated (where possible) or minimised, through the introduction of control measured, to as lower risk so far as is practicable; • Guidelines to develop industrial practices and procedures which are shown to have good results; • A system of audit and review to ensure the system expectations are developed, maintained and delivered; • Controlling hazards and maintaining risk control measures in significant change events; • Develop and implementation of preparedness systems and processes to detect and respond to emergency situations; • Development & implementation of incident management systems which report, record and investigate incidents, and monitor corrective action implementation to prevent incident recurrence; • Development of routine monitoring, maintenance and testing of control measures adopted; • Development and implementation of audit and review regimes to provide for continuous improvement;

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• Contributions from UP personnel and contractors; • Establishing and regularly reviewing environmental objectives, targets and performance objectives consistent with the commitment to continual improvement in pollution prevention; • Identify training, awareness and competency needs for environmental matters to all operational and management levels; and • Establish, define, document and communicate roles, responsibilities and authorities to facilitate effective environmental management.

5.1 UP Environmental Policy

Upstream Petroleum Pty Ltd (UP) has been contracted by CPPL to act as Project Manager for the drilling, completion and intervention on the CRC-1 well. UP HSEQ Policy guides the development and implementation of all other Environmental Management System (EMS) components and is provided in Appendix 2. The environmental policy describes the company’s commitment to managing their environmental responsibilities and defines the performance expected of staff (including contractors) in all operations. The policy also commits the company to complying with the Petroleum Act 1998 and Petroleum Regulations 2000. 5.2 Environmental Objective

The overall environmental objective is to plan and conduct the drilling and associated activities in such a way that environmental impacts are avoided or minimised. This objective will be achieved by implementing the mitigation and management measures described in Section 5.3.

5.3 Mitigation and Management Measures

Site-specific mitigation and management measures have been developed for the drilling program to minimise disturbance to the environment and third parties (Table 5-1). The mitigation and management measures are based on the APPEA Code of Environmental Practice (1996). The mitigation and management measures register forms the basis of an implementation checklist which is reviewed and completed at different stages of the drilling campaign (planning, pre-spud, audit, closeout reporting).

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Table 5-1 Mitigation and Management Measures Issue Potential Impact Mitigation and Management Measure • Access to the drill site will be via existing tracks where possible which will be upgraded and Unnecessary widened to accommodate heavy vehicles disturbance of land • No remnant vegetation lost as a result of construction or drilling operations. • Limited vegetation clearance to ground-level plant material for access road upgrade. The proposed campsite and drill site locations are currently cleared of native vegetation. Any non-native vegetation cleared will be stockpiled on the property, in consultation with the Vegetation loss landowner, for replacement during rehabilitation (as appropriate). • Minimal trees are expected to be removed for the drilling program and would only occur to ensure safe ingress & egress at the site. If any trees present an obstacle to movement along the access track, trimming of branches will be the preferred option.

Access and Unnecessary Equipment and material transport routes and schedules will be planned to minimise disruption Traffic disturbance to traffic to local residents, local industries and the general public. Heavy equipment and oversized load transport access routes to/from the drilling site will be in accordance with relevant VicRoads and Shire of Moyne regulations. Appropriate safety measures will be implemented for heavy machinery and infrastructure transport to and from the site (e.g., warning signs, patrol vehicles and transport vehicles). Traffic management contractors will be engaged if necessary. Safety Construction-related traffic will observe the speed limits along all roads and drive in a manner appropriate for weather conditions (e.g., slowing down when wet or foggy). In addition, all drilling related traffic will travel at no greater than 40 km an hour outside any sensitive locations (schools, hospitals) during relevant hours, when travelling to and from the camp site.

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Table 5-1 Mitigation and Management Measures Issue Potential Impact Mitigation and Management Measure • Topsoil will be removed from the access track and project site. Where topsoil removal occurs, it will be graded from the area and stockpiled adjacent to the site in a location that has been protected from surface water runoff. • The project site and access road will be formed by using existing stockpiled soils or bringing Soil and Water Topsoil erosion in sheeting materials (crushed sandstone). Where site rehabilitation activities are to occur, Management they will comprise the removal of sheeting materials and replacement of topsoil. • Erosion and sediment control measures (e.g., diversion berms, silt fences to contain and filter site run-off) will be installed at the drill sites and access tracks as required to control site stormwater run-off, and prevent erosion and sedimentation into nearby drainage lines. Borrow material for access tracks and hardstand areas is expected to be mostly from an Excavation existing local quarry site holding a current Extractive Mining Licence.

The drill pad and camp site will be separated from surrounding farming operations by Disturbance to temporary fencing or negotiation with the landholder to move livestock to other paddocks. farming operations UP will consult with landowners and neighbours to agree specific measures to minimise impacts, access arrangements, pre-construction conditions and rehabilitation requirements. Land use and • Identify all above-ground and underground infrastructure including powerlines, Infrastructure telecommunication cables, gates and fences on site maps to avoid accidental damage. Unnecessary damage • Use the ‘Dial-Before-You Dig’ service to identify underground infrastructure. to third party • All fences, gates and other farm infrastructure will be returned to pre-disturbance conditions infrastructure or property as agreed with the landowners. • Remove hardstand crushed sandstone & gravel material from site where required and return to the supplier for restock, or remove and stockpiled on each property should the landowner request it.

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Table 5-1 Mitigation and Management Measures Issue Potential Impact Mitigation and Management Measure Consult with the relevant Aboriginal communities and arrange for the appropriate level of monitoring of clearing activities to be conducted during the construction of each site. Should an aboriginal artefact be discovered consult with the Framlingham Aboriginal Trust and/or an archaeologist to determine appropriate action. In the event that site earthworks uncover potential Aboriginal heritage material, work will be halted at the location and an appropriate buffer established around the site (work may continue outside the buffer area). Heritage site Aboriginal Uncovered or The Aboriginal monitor will immediately notify UP. UP will arrange for an archaeologist Heritage damaged and/or Framlingham Aboriginal Trust to attend the site and assess, record and register the site as per statutory requirements. The archaeologist will seek a ‘Consent to Disturb’ permit from Aboriginal Affairs Victoria.

All personnel involved in the project will be inducted in Aboriginal heritage management procedures and provided with information for identifying heritage artefacts so as to prevent unintentional damage.

Drilling equipment (e.g. generators, motors), vehicles and construction plant (such as generators and compressors) will be kept in good running order and vehicle exhausts will Exhaust emissions comply with EPA exhaust standards

Air emissions Water will be used as a dust stabiliser on access tracks and disturbed soils, if necessary

(i.e., if visible dust plumes are constantly created and reported by landholders to be creating Dust emissions a nuisance). Vehicles speeds will be minimised on unsealed roads.

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Table 5-1 Mitigation and Management Measures Issue Potential Impact Mitigation and Management Measure Equipment noise Appropriate selection, and where practical modification, of equipment (i.e. mud pumps, emissions generator sets (camp and drilling sites)). All residents within a 5km radius will be informed of activities via letter-drop The UP Drilling Manager will consult with landowners in the vicinity of the drill sites (1.5km Noise emissions Noise nuisance to radius) about noise created during drilling operations. Advanced notice of noisy periods will land owners be provided to relevant landowners. Where necessary landowners will be offered the opportunity to temporarily relocate for the duration of drilling activities. Noise mitigation measures (e.g. hay bales) will be adopted as required.

Waste management will be based on waste minimisation principles of Eliminate, Avoid, Reduce, Reuse, Recycle and appropriate disposal.

An emphasis will be placed on housekeeping and cleanliness at the drill and campsite to promote safety and minimise environmental impact (such as attraction of vermin to the sites).

At the completion of drilling, drilling fluids will be disposed of according to EPA guidelines. The Waste and Pollution of project sump will be backfilled as soon as practicable to avoid water collection. Hazardous area and surrounding Materials environment Management Recyclable inert materials such as timber, metals, tyres, etc., will be stored separately on site (in containers where necessary) for removal and salvage, where practical.

Non-recyclable wastes will be stored in containers on site for collection and disposal by a waste contractor.

Environmentally hazardous materials such as oils, fuel, lubricants, chemicals and grease will be stored and, where practicable, handled within containment/hardstand areas designed to prevent the release of spilt substances to the environment.

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Table 5-1 Mitigation and Management Measures Issue Potential Impact Mitigation and Management Measure

• Hazardous wastes, such as oils, fuel, lubricants, chemicals and grease will be recovered, contained, recycled and disposed of in accordance with EPA licensed waste disposal contractors or local municipal facilities licensed to accept the particular waste material. • Hazardous materials will not be stored within 20 m of any drainage line at the drill site. • Reporting of any oil and chemical spills will be in accordance with regulatory requirements.

Hazardous wastes will be managed and disposed of in accordance with all relevant regulatory requirements, including the Dangerous Goods (Storage and Handling) Regulations 2000 as appropriate.

Pollution of project Sump pit and flare-pit will be lined or constructed from compacted clay material to prevent Waste and area and surrounding leaching of contamination Hazardous environment (cont’d) Materials Contaminated soils, affected by fuel or other chemical spills etc., will be removed from site for Management appropriate disposal in consultation with the Moyne Shire or EPA, as appropriate. (cont’d) Sewage wastes from the drill sites and campsite will be contained in portable tanks and removed regularly by licensed waste contractors.

Re-fuelling on site will, where possible, be undertaken in daylight with at least one personnel observing the re-fuelling operation. Drip trays will be utilised during refuelling, with absorbent material available in case of a spill. The main fuel tank will either be bunded (self bunded or earthen wall) or of double-walled construction.

Spill response Appropriate spill response equipment (i.e., absorbent pads) will be available at the drill site.

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Table 5-1 Mitigation and Management Measures Issue Potential Impact Mitigation and Management Measure

Sewage treatment and disposal will be to an external site which is appropriately licensed to Sewage Contamination of ensure that: Treatment and groundwater and • No effluent release to surface and groundwaters. Disposal waterways • The disposal of sewage effluent does not cause the contamination of any water used for drinking or domestic purposes, or for consumption by animals.

Negative public perception of Place a high emphasis on housekeeping and cleanliness at the project sites (see Wastes and operation Hazardous Materials above)). Litter escape

Visual amenity Nuisance light from The well test flare (if required) will be situated to reduce light emissions to surrounding flare residences.

Nuisance light from Lighting at the project sites will be designed to minimise light emanating outside the site drill and camp sites footprints, whilst ensuring safety standards are maintained.

Prompt reseeding will be undertaken (seasonal factors allowing) after topsoil reinstatement to minimise weed establishment. With the approval and assistance of affected landowners, inspect the rehabilitated sites for Weeds Weed introduction weeds following abandonment and determine if weed control measures are necessary. If necessary, wash down the drill rig and all vehicles and equipment to remove soil and plant matter prior to commencing the move from Gippsland to CRC-1.

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Table 5-1 Mitigation and Management Measures Issue Potential Impact Mitigation and Management Measure If a hazardous contaminant is released to land or waters, the following action will be taken Loss of native vegetation immediately to: • Stop any further release, Spills and Clean • Contain the contaminant to the affected areas with particular attention to protecting Up Action environmentally sensitive areas, • Restore or rehabilitate the environment to its condition before the release occurred, and Contamination of land and waterways • Prevent a re-occurrence of the release Appropriate spill response equipment (i.e., absorbent pads) will be available at the drill sites.

At all the drill site:

Loss of native • Topsoil cleared from the site will be reinstated & compacted land ripped. vegetation and • Replace cleared vegetation with the same species, or select alternative species in potential native fauna consultation with the landowner. habitat • UP will consult with the Shire of Moyne regarding any active rehabilitation that they may require at the site.

Upon abandonment of the project site (end of project life), the following will take place: Rehabilitation • Removal of all project infrastructure

• Removal and disposal of wastes, including all project signage, flagging and fencing.

Disturbance of land • Backfilling of all pits (keep mud pits fenced while awaiting backfilling).

and reduced land-use • Re-grading of site together with appropriate measures for rehabilitation to return the project potential site to previous land use standard.

During the project life, a reduced area will be retained for work over access and the wellhead facilities and fenced off to prevent wellhead damage. Access tracks will be retained and gated.

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Table 5-1 Mitigation and Management Measures Issue Potential Impact Mitigation and Management Measure Rehabilitation • Rip compacted areas, return topsoil to the site, grade to original contours, re-seed, and (Con’t) Disturbance of land install erosion control measures if necessary on disturbed areas that may collect runoff. and reduced land-use • The project site will be restored to a level that accommodates return of the current land use potential whilst ensuring land stability. Restored areas will be reseeded with appropriate pasture species, selected in consultation with the landowner, to ensure rapid rehabilitation and stabilisation of soil surfaces. • Fence rehabilitated areas in consultation with landowners to prevent stock access impeding rehabilitation efforts. • Replace or repair damaged fences. Case, plug, mark and fence wellhead infrastructure in accordance with the Petroleum Damage to wellhead Regulations 2000.

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5.4 Roles & Responsibilities

As outlined in Section 1.2, UP is managing CRC-1 Drilling Program on behalf of CPPL. The drilling will be undertaken by a contractor, Century Drilling Limited. Century thereby resumes a responsibility for compliance with UP policy and legislative requirements on behalf of UP. All contractors working for UP are expected to demonstrate a high level of Health, Safety and Environmental commitments and have system in place for managing HSE issues. The key roles and responsibilities for ensuring protection of the environment, achieved through the implementation of commitments made in this EP are listed below. UP Drilling Manager: • Ensures that the requirements of the EP are implemented; • Establishes landowner relationships for those affected by project construction and operation, and organises land access for project personnel to these properties. • Ensures that appropriate communications are in place between drilling contractor, UP, landowners and other local stakeholders to keep them informed of project issues and developments that may affect their day to day activities.

UP HSEQ Manager:

• Ensures regulatory documents are prepared and timely regulator approvals obtained; • Ensures all necessary personnel have access to, or a copy of, approval documents/notifications (e.g. Environmental Management Plan & Safety Management Plan), and necessary legislation;

• Ensures sufficient definition of operational requirements to meet commitments made in this EMP (e.g. definition of monitoring & measurement activities, verification records, emergency exercises) provided to relevant operational groups;

• Ensures reporting/notification/documentation processes and reporting documents (monthly/audit/close-out reports) are defined and understood by all personnel;

• Provides sufficient resources to undertake audit and reporting activities to support this EMP; • Provides resources to liaise with affected parties (e.g. landowner); • Ensures incidents are documented and appropriate levels of investigation are undertaken;

• Ensures all personnel understand their roles in any emergency response incident.

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Drilling Supervisor (Onsite):

• Ensures the drill-rig personnel and any third party service contract management personnel undergo a site-specific induction prior to drilling commencement. Note this includes a ‘Rig Site Induction Checklist’ which is completed prior to any work commencing. • Ensures all aspects of this EMP for which he/she is responsible are carried out during drilling operations (includes incident reporting/investigation responsibilities, confirming emergency response preparedness, ensuring pre-spud checklists are completed, ensures tanks are bunded where required, ensures waste management is in accordance with this EMP, etc). • Ensures a visitor induction is conducted prior to allowing any casual persons (those not having to perform work on the site) to enter the drilling site.

Century Rig Manager:

• Implements and ensures compliance to all relevant environmental legislative requirements, commitments, conditions and procedures as given in this EMP and documented in the environmental checklist to be developed for the drilling of CRC-1;

• Applies the relevant enforcement mechanisms to prevent breaches of this EMP; • Ensures all personnel have received the required site induction & retains induction records; • Ensures location of relevant operational plans & source documents are accessible to personnel;

• Communicates hazards and risks to the workforce and their implications and the importance of good working practices;

• Ensure adequate spill response equipment is available; • Point of contact for all environmental incidents. Responsible for ensuring incident details are documented, appropriate levels of investigation are undertaken, corrective actions implemented and findings disseminated to local HSE meetings;

• Undertakes corrective actions from environmental audits

5.5 Communication

Copies of the Century Drilling Limited and UP Environmental policies and this EP are to be displayed at prominent locations at the drill sites and campsite. Daily toolbox meetings are to be held at the drill site to review the day’s programs. Any key environmental issues associated with the particular day’s activity will be reviewed at this meeting including the controls outlined in this plan. Any non-routine activities requiring JSEA’s to be performed will be conducted at these sessions.

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5.6 Training & Awareness

The drilling and construction workforce will undergo environmental inductions prior to the commencement of site works. The environmental inductions will inform the workforce of their obligations and project-specific environmental management procedures, including responsibilities and lines of communication. Inductions will cover the issues outlined in Table 5-1, including: • Environmental regulatory requirements of the project. • Site access. • Soil and water. • Flora and fauna. • Aboriginal heritage. • Amenity (air, noise, traffic, visual). • Land use and infrastructure. • Waste storage, handling and disposal. • Spill prevention. • Rehabilitation.

5.7 Monitoring & Auditing

5.7.1 Monitoring Within the framework of the Upstream Petroleum’s IMS, an environmental monitoring program has been established to verify predicted environmental impacts and assess compliance with regulatory requirements and industry standards. Table 5-1 summarises the monitoring program for the drilling phase and lists the measurement parameters, frequency of measurement and assessment criteria. Figure 5-2 Environmental Monitoring Programme

Aspect Measurement Monitoring Frequency Drill cuttings & drilling mud Volume and composition Daily/Total (end of discharged program) Stakeholders Interactions (e.g. Number of complaints Continuous landowners, etc) Diesel Usage Volume Consumed Continuous during drilling Well Cleanup Activities Volume Flared Continuous during Cleanup Activities General Waste Volumes Routinely on waste transfer Environmentally Hazardous waste Waste transfer Routinely on waste transfer documentation Significant oil or chemical spill Volume released to Continuous during spill environment incident

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5.7.2 Auditing

Upstream Petroleum will report on routine monitoring and auditing activities associated with drilling operations to demonstrate that environmental performance objectives and standards outlined in this Environmental Plan have been met. During the drilling of CRC-1, one compliance audit will be undertaken. A report will be submitted to DPI providing a summary of the findings and corrective action status within 3 months of drilling completion. 5.7.3 Environmental Reporting

The outcomes of the auditing and monitoring programs will be reported to the DPI at the end of the drilling program. The close out report will include the results of audit, list of all environmental incident/spill, complaints and quantitative records of emissions and discharges. The content of closeout report will be discussed with the DPI at later stage.

5.8 Drilling Incidents Reporting

5.8.1 Reportable Incidents

Upstream Petroleum, on behalf of CPPL, will report any of the following ‘high-level’ reportable incidents to DPI as soon as practicable but within two hours of the incident: • Loss of hydrocarbons greater than 80 litres to land or any spill volume of hydrocarbon to water; • Incidents which cause serious environmental damage or has the potential to cause, death, serious injury or property damage; • Incidents involving any uncontrolled escape or ignition of flammable or combustible material; • Incidents involving widespread negative publicity; • A significant breach of the Drilling EMP or other legislative requirement; • Injury or impact to an endangers or protected species; or • Incident involving the spread of declared weeds.

5.8.2 Internal Reporting

Upstream Petroleum requires all environmental incidents (including any spill of chemical or petroleum) to be reported and investigated in accordance with the UP Incident Reporting & Investigation Procedure (UP/00/HSEQ/GEN/PC03). All incidents occurring on the drill sites or related project areas will be recorded on the web based UP Trilogy system allowing UP management immediate access to incident details and proposed corrective actions.

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5.9 Environmental Emergency Response Planning

Environmental emergency response planning for the CRC-1 Drilling Program will be undertaken in accordance with the UP Management System Standard Element 4 (risk assessment and risk management) and Element 14 (emergency response) requirements. MSS Element 4 includes the requirement for individual crews to perform a risk/environment &safety analysis of non-routine activities prior to the commencement of a task, which will include evaluation of the significance of risks (i.e. their likelihood of occurrence and their potential consequence) as outlined in AS/NSZ 4360: 1999 (Risk management). The emergency response procedure performance requirements contained in MSS element 14 detail the content of emergency response plans, how emergency preparedness is handled and what requirements for emergency response. Potential environmental emergencies resulting from the drilling program include: Uncontrolled fire in adjacent vegetation. Uncontrolled liquid hydrocarbon fire at the wellhead. Uncontrolled well blowout. Major spill of liquid hydrocarbons (fuel or product) outside the hardstand area. Major spill of a hazardous waste substance outside a containment area. The Emergency Response Plan for the CRC-1 Drilling campaign can be found in Document Ref: 34632-HS-03-003.

5.10 Consultation

5.10.1 Landowners

CPPL/UP will consult extensively with landowners in preparation for the CRC-1 drilling activities. A log of consultation and issues raised is maintained (Appendix 1). 5.10.2 Regulatory Agencies

UP/CPPL will also liaise and consult with Regulatory Authorities (Victoria Department of Primary Industries, Department of Sustainability & Environment) and Agencies (EPA, Aboriginal Affairs Victoria, Moyne Shire, Corangamite Shire Council, etc) during the planning phases of the CRC-1 drilling operations.

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6 GLOSSARY & ABBREVIATION

APPEA Australian Petroleum Production & Exploration Association AS Australian Standard Asl Above sea level BOM Bureau of Meteorology

CO2 Carbon Dioxide CO2CRC Cooperative Research Centre for Greenhouse Gas Technologies Joint Venture CCPL CO2CRC Pilot Project Pty Ltd DEH Commonwealth Department of Environment and Heritage DPI Victoria Department of Primary Industry DSE Department of Sustainability & Environment EMS Environmental Management System EMP Environment Management Plan EPA Environmental Protection Authority EPBC Environment Protection (Biodiversity Conservation) Act GHG Greenhouse Gas HSEQ Health, Safety, Environment & Quality IMS Integrated Management System IWMP Industrial Waste Management Policy JSEA Job Safety & Environmental Analysis KCl Potassium Chloride Km kilometre m meters MYA Million Years ago MSS Management System Standards MSDS Material Safety Data Sheet PHPA Partially hydrolysed polyacrylamide ppb Parts per billion PPL Petroleum Production Licence RAMSAR Convention on wetlands of International Importance especially Waterfowl Habitat R Regulation S Section SEPP State Environment Protection Policy UP Upstream Petroleum Pty Ltd WBM Water-based Mud

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7 REFERENCES APPEA (1996) Code of Environmental Practice. Australian Petroleum Production and Exploration Association Limited. AS/NZS ISO 14001:1996. Environmental management systems. Standards Australia, N.S.W and Standard New Zealand, Wellington. AS/NZS ISO 4360:1999. Risk management. Standards Australia, N.S.W and Standard New Zealand, Wellington. AS/NZS ISO 9000: 2000. Quality management systems. Standards Australia, N.S.W and Standard New Zealand, Wellington. Australian Museum (2006) Latham’s Snipe A WWW publication accessed at http://birdsinbackyards.net/finder/display.cfm?id=235 in October 2006 Australian Museum (2003) White-throated Needletail. A WWW publication accessed at http://www.austmus.gov.au/factSheets/needletail.htm in October 2006 Backhouse, G. and Jeans, J. (1995) The Orchids of Victoria. The Miegunyah Press. Melbourne. Bureau of Meteorology (BoM) (2006) Climate Averages for Warrnambool. Bureau of Meteorology. A WWW publication accessed at http://www.bom.gov.au in November 2006. Cogger, H.G. (1996) Reptiles and Amphibians of Australia. Reed Books Australia. Melbourne. Department of Environment and Conservation (DEC) (2006) Long-nosed Potoroo – profile A WWW publication accessed at http://www.threatenedspecies.environment.nsw.gov.au/tsprofile/ profile.aspx?id=10662 in October 2006 Department of Environment and Heritage (DEH) (2003), Australian Painted Snipe (Rostratula australis). Accessed at http://www.deh.gov.au/biodiversity/threatened/publications/painted- snipe.html in October 2006 Department of Environment and Heritage (DEH) (2004), Administrative Guideline on Significance: Supplement for Tiger Quoll and the Use of 1080. A WWW publication accessed at http://www.deh.gov.au/biodiversity/threatened/guidelines/tiger-quoll/pubs/tiger-quoll-guidelines.pdf in October 2006 Department of Environment and Heritage (DEH) (2006a), EPBC Protected Matters Search Tool, an online database search for the project area. Accessed at http://www.deh.gov.au/cgi- bin/erin/ert/ert_dispatch.pl?loc_type=coordinate&search=Search&report=epbc in November 2006 Department of Environment and Heritage (DEH) (2006b) EPBC Nomination to de-list from the conservation dependent category and list in the endangered category Miniopterus schreibersii bassanii (Southern Bent-wing Bat) A WWW publication accessed at http://mretreview.gov.au /biodiversity/threatened/nominations/pubs/miniopterus-schreibersii-bassanii.pdf in October 2006

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Department of Primary Industry (DPI) (2006a) Victorian Resources Online – Glenelg-Hopkins. A WWW publication accessed at http://www.dpi.vic.gov.au/dpi/vro/glenregn.nsf/pages/glenelg_homepage in November 2006 Department of Sustainability and Environment (DSE), (2006a), Flora & Fauna Data Request, 2007 CRC-1 Drilling Program, Department of Sustainability and Environment. Department of Sustainability and Environment (DSE) (2006b). Catchments Information Mapper Information System database search for project area, November 2006. Accessed at https://nremap- sc.nre.vic.gov.au Department of Sustainability and Environment (DSE) (2006c). Orange-bellied Parrot (Neophema chrysogaster) http://www.dpi.vic.gov.au/dse/nrenpa.nsf/FID/-C2ACE836614257B F4A256989001 181C6?OpenDocument (accessed November 2006) Department of Sustainability & Environment (DSE) (2006d) – Victorian Groundwater Resources in project area (http://nremap-se.nre.vic.gov.au ) (accessed 20/11/06) Department of Sustainability & Environment (DSE) (2006e) – Victorian Water Resources in project area (http://nremap-se.nre.vic.gov.au ) (accessed 20/11/06) Enesar Consulting (2005) - Environment Report for Otway Basin Pilot Project: CO2CRC (Ref: 1205_2_v1) Enesar Consulting (2006) - Environment Assessment & Management Plan (Seismic Test Lines Survey): CO2CRC (Ref: CR1205_3_V1) Environmental Protection Authority (EPA) (1989) Interim Guidelines for Control of Noise From Industry in Country Victoria. A WWW publication accessed at www.epa.vic.gov.au in November 2006 Environmental Protection Authority (EPA) (1992) Noise Control Guidelines. Published by EPA Victoria. TG 302/92. A WWW publication accessed at www.epa.vic.gov.au in September 2006. Haby, N. (2006) Threatened Species - The Southern Brown Bandicoot, A WWW publication accessed at http://www.environment.sa.gov.au/biodiversity/bandicoot.html in October 2006 Heritage Victoria. 2006. Victorian Heritage Register On-line. A WWW publication accessed at http://www.heritage.vic.gov.au/ in November 2006. Lane, B. (1987) Shorebirds in Australia. Nelson Publishers. Melbourne. NSW National Parks and Wildlife Services (1999) Smoky Mouse. A WWW publication accessed at http://www.nationalparks.nsw.gov.au/PDFs/tsprofile_smoky_mouse.pdf#search=%22Pseudomys%20fumeus %20%22 in November 2006 Orange Bellied Parrot Recovery Team (1998) – Orange-bellied Parrot Recovery Plan 1998-2002, Parks & Wildlife Service Tasmania Pizzey, G. (1987) A Field Guide to the Birds of Australia. Collins. Sydney, Robinson, M. (1995) A Field Guide to Frogs of Australia. Australian Museum/Reed Books. N.S.W. Strahan, R. (ed). (1995) The Mammals of Australia. New Holland Publishers. Melbourne.

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Swan JM, Neff TM, Young PC (1994) – Environmental Implications of Offshore Oil and Gas Development in Australia – The findings of an Independent Scientific Review, Christopher Beck Books Queensland Swift Parrot Recovery Team (2001) Swift Parrot (Lathamus Discolor) Recovery Plan 2001 – 2005. Tasmania Department of Primary Industries, Water and Environment. A WWW publication accessed at http://www.deh.gov.au/biodiversity/threatened/publications/recovery/swift-parrot/index.html in November 2006 Walker, P.H., Nicolls, K.D. and Gibbons, F.R. 1983. South-eastern Region and Tasmania (VIII). In ‘Soils: an Australian viewpoint.’ Division of Soils, CSIRO. Melbourne.

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Appendix 1: STAKEHOLDERS CONSULTATION LOG

Landowner Contact Details Date Person Details

3rd May 2006 Peter Parsons Telecon advising Surveyor access 4th May 2006 Peter Dumsney Telecon advising imminent Well Ops 4th May 2006 Peter Parsons Telecon advising imminent Well Ops 9th May 2006 Peter Dumsney Telecon on Well Ops 11th May 2006 Peter Parsons Visit advising imminent Well Ops 12th May 2006 Wayne Jenkins Telecon advising imminent Well Ops 12th May 2006 Ron Brumby Left message ref imminent Well Ops 17th May 2006 Peter Parsons Night Ops for logging Buttress OK !7th May 2006 Peter Parsons Gravel on Paddock to lease -Must remove at end

18th May 2006 Peter Parsons Safety Tape on Fence & Parking O/S Lease 20th May Peter Parsons Left Message ref Completion of initial Ops 12th June 2006 Peter Dumsney Advised Peter of upcoming well testing work. Peter noted that clean-up at Naylor had been substandard. Note: this will be rectified as soon

as possible and care taken that this was an isolated incident. 12th June 2006 Ron Brumby Advised Ron of upcoming well testing work. Ron had no concerns or issues. 12th&13th June2006 Wayne Jenkins No answer. Will try again and if required leave message regarding upcoming well test. 13th June 2006 Peter Parsons Advised that Buttress 1 site office will be established on Friday 15th June. Excavation of the acoustic pit will also commence Friday and is likely to be finished Monday. Main operations will commence Tuesday and will continue for most of the week.

Peter will contact Ian Black directly if noise becomes an issue. His main concern is the appropriate rehabilitation of the flow pit site. 18th June 2006 Peter Parsons PP stated that the lease agreement does not cover the distance for 50m around the discharge of the flow pipe where monitoring is required. Similarly, fans are required adjacent to the pit for dispersion purposes. People and farm animals need to be excluded from this area during testing. The 50m zone is in accordance with good oilfield practice and hence an automatic requirement for the DPI permit. In accordance with Peter’s request all work outside the current lease has been stopped and hence perforating and flow testing will not be able to take place until this matter has been resolved.

19th June 2006 Peter Parsons PP advised that the lease agreement excluded vehicular traffic on the access track to Buttress prior to 9am.

Note: Personnel on site have been instructed that there must be no vehicular movement whilst cattle or going to and from the milking sheds both in the morning and evening. 19th June 2006 Peter Dumsney Ian called Peter regarding access to Naylor to remove a valve. Peter mentioned again the poor clean up at Naylor.

Ian organised with Ian Moran to get either Mick Arundel or Chris Thomas to vist the Peter to ensure clean up will happen to the his satisfaction.

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Date Person Details

19th June 2006 Karen & Corry Couch, Alison and Adelaide visited the neighbours to Callagans Rd advise them of upcoming activities and answer Ted Buchel, 165 Grt Ocean Rd any questions. They were positively received and Karen & Anthony Cough, 241 the neighbours had no concerns at the time. Curtivale Rd

19th June 2006 A. Delaney (334 Curdievale A courtesy letter notifying residents about the Road) upcoming work at the Buttress site has been Opposite to Ted Bushell’s distributed to residents in the area. This letter house on Great Ocean Road also points to the CO2CRC website and lists Ian Next to Ted Bushell (on the Black as point of contact. other side of Peter Parsons) 2641 Great Ocean Road Dumsneys (Naylor landowner – 63 Brumbys Lane) 2930 Great Ocean Road 2927 Great Ocean Road 1225 Baileys Road

20th June 2006 Peter Dumsney Meeting with Ian Black. Minor clean up work required and will be actioned by site. Peter was comfortable with this. 20th June 2006 Peter Parsons Meeting with Ian Black. All issues were discussed and Peter was informed of the operating procedures. The lease for use of his land has been renegociated and agreed. He appeared comfortable with the situation. 28th June 2006 Peter Dumsney Telecon from Ian Black to enquire whether clean up now OK 28th June 2006 Peter Parsons Teleco from Ian Black. Spoke to Peters wife to advise of demobilisation 4th July 2006 Peter Parsons Telecon from Ian Black advising site visit of UP rep to complete demob of site facilities and ask him to see whether clean up outside the fenced areas OK 5th July 2006 Peter Parsons Telecon from Ian Black advising demob in progress and I will visit area next Tuesday. 10th July Peter Dumsney Telecon from Ian Black advising visit on 11/7 10th July Peter Parsons Telecon from Ian Black confirming visit on 11/7 11th July Peter Parsons Visit to introduce Martin Wettenhall & look at state of acoustic pit 11th July Peter Dumsney Visit to introduce Martin Wettenhall & check on clean up outside Naylor1 lease 31st July 2006 Peter Parsons Telecon from Ian Black advising clean-up of acoustic pit on Aug 1st. 1st August 2006 Peter Parsons Telecon from Ian Black advising clean-up of acoustic pit continuing on on Aug 2nd. 3rd August 2006 Peter Parsons Telecon from Ian Black advising clean-up of acoustic pit complete. He hadn't seen but said his sons had and said all OK.. 25th August Peter Dumsney Telecon from Ian Black advising Naylor1 P/T Logging on 26th Aug. Peter also confirmed that site rehab from previous ops now OK. 13th September 2006 Peter Parsons Telecon from Ian Black advising Peter that skips at the lease will be collected on Sept. 14th.

4th October 2006 Peter Parsons Telecon from Ian Black advising Peter that soil conductivity testing would take place on the Buttress Lease 4th October 2006 Peter Dumsney Telecon from Ian Black asking Peter if soil testing could take place in the CRC1 paddock. Cows in paddock calving.Chadwicks can go ahead but to contact him re noise etc. beforehand

4th October 2006 Peter Dumsney Telecon from Ian Black advising visit to lease on 25/10 by Adelaide/Dessi

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Regulatory Authority Contacts Date Person Authority Details 30th August 2006 Mick Fennessy - SRW, Southern Rural Water (SRW), Meeting to discuss Regulatory Approvals for the John Frame - EPA, Victorian Environment Protection Project and flag any issues which may be Russell Guest - Shire of Authority (EPA), Shire of Moyne, encountered (Meeting Minutes available) Moyne, Thomas Burley - Department of Primary Industries CO2CRC, Sandeep (DPI). Sharma - CO2CRC, Geoff Collins - DPI, Terry McKinley - DPI, Ian Black - UP, Phil Harrick - UP

24th October 2006 Kerry Northey Department of Sustainability & Biodiversity Information Request Form Environment Feedback - no issues 25th October, 2006 Matthew Phelan Aboriginal Affairs Victoria Search for registered aboriginal cultural heritage sites within project area 14th November, 2006 Neil Martin Framlington Aboriginal Trust Request regarding Cultural Heritage Assessment - not required. Only monitors during excavation. 14th November 2006 Ross Martin Department of Sustainability & Message left requesting details on the Orange- Environment (Warrnambool) Bellied Parrot - No response 15th November 2006 Andrew Prichard Department of Sustainability & Advised that Andy Governstone (Portland) Environment (Warrnambool) expert on Orange-bellied Parrot (5522 3444) 16th-21st November Andy Governstone Department of Sustainability & Message left requesting details on the Orange- 2006 Environment (Portland) Bellied Parrot - No response 14th November 2006 Luke Aggett Moyne Shire Council No of households within 5km radius and ability to sendout letters on behalf of CRCCO2 Project - OK to do 14th November Paul Coverdale Corangamite Shire Council No of households within 5km radius and ability to sendout letters on behalf of CRCCO2 Project - OK to do 15th November 2006 Michelle Hendricks Department of Primary Industries Clarified detail on EMP processing time - 30 (Petroleum & Minerals) days. 15th November 2006 Michelle Hendricks Department of Primary Industries Email detailing reportable incidents for onshore (Petroleum & Minerals) legislation 28th November 2006 Andy Govanstone Department of Sustainability & Email advising that he did not consider that there Environment would be any issues with the drilling program and the Orange-bellied Parrot.

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Appendix 2: HSEQ POLICY

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