HYDROCARBON EXPLORATION AND EXPLOITATION IN REGION

FIRST STAGE ENVIRONMENTAL BASELINE REPORT OF THE WIDER PROJECT AREA

EXECUTIVE SUMMARY OF THE 1ST DELIVERABLE

SCOPE OF WORK OF THE ENVIRONMENTAL BASELINE REPORT

CONSULTANT

Athens, April 2015 HYDROCARBON EXPLORATION AND EXPLOITATION IN THE KATAKOLO REGION Environmental Baseline Report of the Wider Project Area

TABLE OF CONTENTS

CHAPTER 1. GENERAL FRAMEWORK OF THE ENVIRONMENTAL BASELINE REPORT ...... 4 CHAPTER 2. DESCRIPTION OF THE ELEMENTS OF THE ENVIRONMENTAL BASELINE REPORT ...... 6 2.1. Description of the General Framework ...... 6 2.3. Methodology of Elaboration of the First stage of the EBR ...... 8 2.4. Identification of the Study Area of the EBR ...... 8 CHAPTER 3. FIRST STAGE SPECIFICATIONS FOR ENVIRONMENTAL CASE STUDY ...... 10 3.1 Climatic and bioclimatic Characteristics ...... 10 3.2 Terrain and seabed morphology, seabed bathymetry and topological features/characteristics...... 10 3.3 Geological and Tectonic Characteristics ...... 11 3.3.1 Geological and Tectonic terrain characteristics ...... 11 3.3.2 Geological and Tectonic seabed characteristics ...... 11 3.4 Natural Environment ...... 11 3.4.1 Terrestrial Natural Environment ...... 11 3.4.1.1 Protected Areas ...... 11 3.4.1.2 Terrestrial Fauna ...... 11 3.4.1.3 Terrestrial Flora ...... 11 3.4.2 Marine Environment ...... 12 3.4.2.1 Protected Areas ...... 12 3.4.2.2 Marine Fauna ...... 12 3.4.2.3 Marine flora ...... 12 3.5 Anthropogenic Environment ...... 13 3.5.1 Spatial Planning ...... 13 3.5.2 Use of land ...... 13 3.5.3 Historical and Cultural features ...... 13 3.6 Social –economic Environment ...... 13 3.6.1 Population figures ...... 13 3.6.2 Manufacturing Sectors ...... 13 3.6.3 Employment, unemployment and local economic data...... 14 3.7 Technical Infrastructures ...... 14 3.7.1 Road Network ...... 14 3.7.2. Railway Network ...... 14 3.7.3. Ports and maritime transportation ...... 14 3.7.4. Airport and air transportation ...... 14 3.7.5. Power Infrastructure ...... 14 3.7.6. Solid Waste Management Infrastructure ...... 14 3.7.7. Wastewater management and disposal Infrastructure ...... 14 3.7.8. Waterworks/ water supply system Infrastructure ...... 14 3.7.9. Irrigation Infrastructure ...... 14 3.7.10. Telecommunication infrastructure ...... 14 3.8 Atmospheric Environment –Air Quality ...... 14

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3.9 Acoustic Environment - vibrations ...... 15 3.10 Electromagnetic fields ...... 15 3.11 Waters ...... 15 3.11.1 Surface and Ground water ...... 15 3.11.2 Marine/ Sea Waters...... 15 3.12 Anthropogenic intervention on the environment ...... 16 3.13 Development of the Environment ...... 16 ΚΕΦΑΛΑΙΟ 4. SUGGESTED ENVIRONMENTAL QUALITY INDICATORS ...... 17 4.1 Purpose of the Proposed Environmental Indicators ...... 17 4.4 Summary of Proposed Quality Indicators at Regional ...... 17

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CHAPTER 1. GENERAL FRAMEWORK OF THE ENVIRONMENTAL BASELINE REPORT

The elaboration of the Environmental Baseline Report is based on the following legal framework:  Law 4298/2014 "Ratification of the Convention Lease between the Greek Republic and the companies Energean Oil and Gas – Aegean Energy SA HYDROCARBON EXPLORATION AND PRODUCTION» and «TRAJAN OIL AND GAS LIMITED for granting of the rights to explore and exploit hydrocarbons in the marine and terrestrial area of Katakolo (Government Gazette 220/A/10.03.2014) – Article 12 –Environmental Protection.  Common Ministerial Decision (CMD) 169895/08-08-2013 – Approval of the Study on the Strategic Environmental Assessment of the hydrocarbon exploration and exploitation in the area of Katakolo – Chapter III.

In particular, Law 4298/2014, Article 12, paragraph 14 states that "the lessee shall not be liable for any environmental situation or damage existing in the conventional area before the commencement of the work of the lessee within this area and none of the conditions of the present contract shall be interpreted in a way that makes the lessee responsible in respect of any such pre-existing environmental situation or damage. In order to achieve this goal, the lessee will elaborate a report describing the existing situation of the environmental means just before the commencement of any exploration works. The report of the existing situation shall be submitted for evaluation to the lessor. If there are no objections by the lessor within twenty (20) working days from the submission of the report, the report shall be deemed as acceptable.

Moreover, within the decision of the Strategic Environmental Assessment (SEA) study (CMD 169895/08-08-2013) and particularly within Chapter III "System monitoring the significant environmental effects of the implementation of the program" it is mentioned: «1. An integrated monitoring system based on the following principles should be established to monitor the significant environmental impacts:

1.1. Monitoring will focus on the state of the environment both in the area of influence of the hydrocarbon exploration and production works and the areas where direct impacts are expected.

1.2. In regards to the environmental monitoring, as a wider Project Area is considered the whole exploration and exploitation area. Within this area the following should be recorded o Marine waters, including their physical and chemical properties and the currents dynamics o The local meteorology, particularly how it affects the water dynamics o The surface layer of the seabed, particularly its role on the marine ecosystems

1.3. In the main Project Area, environmental monitoring should cover all the above as well as values and indicators concerning implementation of the environmental terms that will be approved for each specific project of exploitation, compliance with safety

ENVECO A.E 4 / 17 HYDROCARBON EXPLORATION AND EXPLOITATION IN THE KATAKOLO REGION Environmental Baseline Report of the Wider Project Area procedures relating to the prevention of accidents with potential impacts on the environment. 1.4. The spatial and temporal density of the recordings and the means of carrying them (permanent or mobile stations, appropriate vessels) should be selected to match the scale of the phenomena to be monitored and parameters, with appropriate distinctions between main and wider project area. 1.5. In the region, for understanding and connecting the individual parameters, integrated computational simulations will be developed with the use of analytical predictive capabilities, leveraging existing initiatives such as the ‘Poseidon’ system. Measurements and recordings in the area should be designed and conducted in such a way that will allow their use to validate computational results. 1.6. The collection and processing of the data for the monitoring of the environmental impacts should be conducted annually. During each year they should be collected on a more regular basis, to enable charting trends in a shorter time. 1.7. Basic means of monitoring will be environmental indicators, which would represent a comprehensive way of important aspects of any developments in relation to the environment»

The above mentioned are taken into account in order to establish the context of the preparation of Environmental Base Study, described in the next section.

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CHAPTER 2. DESCRIPTION OF THE ELEMENTS OF THE ENVIRONMENTAL BASELINE REPORT

2.1. Description of the General Framework

Taking into account what has already been mentioned in the previous chapter, in order to describe the structure of the Environmental Baseline Report, the following points should be taken into account:  Space: as referred to in CMD 169895/08-08-2013, the monitoring of the environmental conditions Time should be presented both to the level of the wider Space project area as well as the main project area. Exploration  Time: as referred to in Law 4298/2014, a report Stage should be drawn up about the initial situation of the environmental parameters and resources during the time prior to the commencement of exploration works. Stages of the EBR  Exploration stage: as referred to in Law 4298/2014 (article 2), the exploration research can be divided into two distinct phases, each of which includes specific tasks, which in turn starts at different periods.

From the above mentioned it is concluded that the environmental baseline report (EBR), as required by Article 12, paragraph 14 of Law 4298/2014, it should be elaborated in stages. Especially, it is proposed to be a 3-stage Environmental Baseline Report, from which the 1st research stage will only cover a broader area and the next 2 stages will cover the broader areas as well as the area around, in which the exploration works on marine and terrestrial area will take place. The following table presents the proposed stages of the Environmental Baseline Report.

Table 1: Proposed Stages of the Exploration Works within the Katakolo area.

Wider Main Stage of Phases Work Categories Project Project EBR area area

Seismic NO NO Geological and geophysical studies and YES YES 1st Stage deposit engineering study Environmental YES YES Drilling of the 1st deep nd First Phase:2 years Phase:2 First well YES YES 2 Stage (valuations/production)

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Wider Main Stage of Phases Work Categories Project Project EBR area area

Seismic YES YES -

Drilling plan YES YES -

Second 3 years Phase: Drilling YES YES 3rd Stage

At this point it should be noted that the description of the environment conditions in the wider project area will be complementary to each stage, since environmental data will be updated at each stage in order to capture any changes. The description of the situation in the main project area depends on the area, where relevant exploration works take place and as a result it is likely not to be complementary between the stages of the Environmental Baseline Study.

In addition, at this point it should be mentioned that especially for the exploration works, according to the MD 1958/2012 (CMD 21B/2012), as is in effect until today an Environmental Impact Assessment is required, the Environmental Baseline Study of the relevant stage investigation will include all the necessary information that are required to be taken under consideration in the Environmental Impact Assessment, in order to assess any implications to the environment under the relevant stage investigation.

Finally, as it is shown in the above table, the Contractor of the exploration program intends to launch the first stage of the exploration works with the processing of the existing seismic data.

Thus, at the present time, the elaboration of the 1st stage of the Environmental Baseline Report will take place, which will cover the wider project area

2.2. Scope of the First Stage of the Environmental Baseline Report

The scope of the first stage of the EBR is the collection of data, the assessment and evaluation of the environmental conditions in the exploration area, in order to:  To depict the environmental conditions within the wider project area before the commencement of any exploration works, in order to avoid any liability of the lessee for environmental damages that may arise within the exploration area from other activities.  To become part of an integrated monitoring system of the environment condition in the exploration area in order to support the assessment and evaluation of any potential environmental impacts of the exploration and exploitation works within the wider project area.

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2.3. Methodology of Elaboration of the First stage of the EBR

The methodology of elaboration of the Environmental Baseline Study of the wider project area is based on the following:  MD 170225/2014 (Government Gazette 135/B/ 27-01 -2014), which specifies the contents of the environmental permitting studies. It is proposed to use the relevant specifications of the existing environmental situation of the wider project area, provided that the Environmental Baseline Study will be input of the EIA study of the exploitation works that will take place in the near future  The stipulations of the CMD 169895/08-08-2013, in accordance to which environmental indicators should be used for the monitoring of the main environmental means, which will represent with a comprehensive way any changes in the environmental conditions.

Based on the above mentioned, the Environmental Baseline Study will include the following chapters:  CHAPTER 1.: INTRODUCTION  CHAPTER 2.: GENERAL FRAMEWORK OF THE EBR ELABORATION  CHAPTER 3.: CONTENTS SPECIFICATIONS OF THE FIRST STAGE OF THE EBR  CHAPTER 4.: SUGGESTED ENVIRONMENTAL QUALITY INDICATORS

At this point it should be mentioned that for the elaboration of the Environmental Baseline Study, an extensive literature review on data and studies relevant to the wider project area, will take place.

2.4. Identification of the Study Area of the EBR

The study area of the Environmental Baseline Report, is proposed to be the active concession area, which is identified with the entire marine and terrestrial area of Katakolo, as shown in Figure 1 (see below), which is spaced administratively within the Regional Unit of Ilia, in the Western Region. It should be noted that individual parameters of the exploration area can be extended to a larger unit in order to depict better the current situation of the corresponding environment parameter.

Κατάκολο

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Figure 1: Katakolo block

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CHAPTER 3. SPECIFICATIONS OF THE FIRST STAGE OF THE ENVIRONMENTAL BASELINE STUDY

In this chapter the parameters of the abiotic, natural and human environment within the study area are recorded, analyzed, evaluated and discussed. The description of the current environmental situation is based on the available information, as occurred from the literature data, which are listed in the following paragraphs.

3.1 Climatic and bioclimatic Characteristics

It is outlined the region’s climate and meteorological features, the bioclimatic characteristics, as well as navigation and sea features, such as surface winds, wave characteristics (direction and wave period), based on the available data provided by the Hellenic National Meteorological Service, for that period,

Content Content

Description which is processed and based on existing reports on climate change, as described in the literature and studies carried out in the region of interest.

3.2 Terrain and seabed morphology, bathymetry and topological features/characteristics.

For the onshore section of the study area, the overall landscape and individual parts of the area are recorded, as well as areas associated with the European Landscape Convention (N3827/2010), contingent topological bouts, assailable and important features of the landscape. Proclaimed Landscapes of Natural beauty, Protected landscapes and landscapes features or protected natural formations of the study area, will be sought from relevant databases that exist in the Ministry of Reconstruction, of Production, Environment and Energy, in Universities and Research Centers for the Protection and Management of the Environment, as well as literature references and studies, which have been developed in the area/region.

Content Description Content As for the marine section and the characteristics of the seabed, features and evidence will be sought from the studies and research that exist in the Ministry of Reconstruction, of Production, Environment and Energy, in Universities and Research Centers, as well as in past studies and surveys for hydrocarbons in the study area.

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3.3 Geological and Tectonic Characteristics

3.3.1 Geological and Tectonic terrain characteristics

Basic geological, tectonic, seismological and hydrolithological characteristics are described, based on information from the Institute of Geology & Mineral Exploration (IGME), from literature references and relevant studies and thesis,

Content Content which have been developed in the study area.

Description

3.3.2 Geological and Tectonic seabed characteristics

Basic geological, tectonic, seismological, hydrolithological and oceanographic characteristics of the seabed are described, based on information from the Institute of Geology & Mineral Exploration (IGME), the Poseidon System (Hellenic Centre for Marine Research), the Hellenic Navy Hydrographic Service (use of existing maps and surveys), from literature references and relevant studies and thesis, which have been developed in the study area, as well as from past investigations for hydrocarbons that have been developed in Content Description Content the study area.

3.4 Natural Environment

3.4.1 Terrestrial Natural Environment

3.4.1.1 Protected Areas

Indication of the areas that belong to the National System of Protected Areas,

under the Law 3937/2011 (CMD 60/Α/2011), as is in effect until today, the areas of Natura Network 2000, wetlands, forest areas and forests that exist in the study area. There will be taken under consideration available relevant

Content Content

Description literature references and studies that have been developed in the study area, as well as existing statutory provisions on protected area.

3.4.1.2 Terrestrial Fauna

References are made on the species of terrestrial fauna, their habitats and also

their protection. It will be taken into account existing, relevant literature references and studies occurred in the study area, databases of the Ministry of

Content Content Reconstruction, of Production, Environment and Energy, the Natura Network Description and data bases of Greek and International nongovernmental organizations.

3.4.1.3 Terrestrial Flora

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Indication of the general features about the properties, shape and conditions of

the natural environment of the study area and references are made about habitat types and plant species of the terrestrial study area, their habitats and their protection. It will be taken under consideration available, relevant literature

Content Content escription references and studies developed in the study area, data bases of the Ministry of D Reconstruction, of Production, Environment and Energy, the Natura Network and databases of Greek and International nongovernmental organizations.

3.4.2 Marine Environment

3.4.2.1 Protected Areas

Indication of the areas that belong to the National System of Marine Protected

Areas under the Law 3937/2011 (CMD 60/Α/2011), as is in effect until today, and areas of the Natura Network 2000, which exist in the study area. It will be taken into account available literature references and studies, as well as existing

Content Content

Description statutory provisions on protected areas.

3.4.2.2 Marine Fauna

Indication of the study area’s fauna, their habitats, as well as their protection. It

will be taken under consideration available, relevant literature references and studies developed in the study area, databases of the Ministry of Reconstruction, of Production, Environment and Energy, the Natura Network

Content Content

Description and data bases of Greek and International nongovernmental organizations.

3.4.2.3 Marine flora

Indication of the general features about the properties, shape and condition of

the natural environment of the study area and references are made about habitat types and plant species of the marine study area, their habitats and their protection. It will be taken under consideration available, relevant literature

Content Content references and studies developed in the study area, databases of the Ministry of Description Reconstruction, of Production, Environment and Energy, the Natura Network and data bases of Greek and International nongovernmental organizations.

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3.5 Human Environment

3.5.1 Spatial Planning

For the description of the current situation of the spatial planning of the study area, data will be presented, as recorded in literature references and relevant studies carried out in the study area and data from the Public sector.

Content Content

Description

3.5.2 Land uses

For the description of the current situation of land use of the study area, data of existing and planned usage will be presented, as recorded in literature references and relevant studies, as well as data from the Public sector.

Content Content

Description

3.5.3 Historical and Cultural monuments

For the description of the current situation of the historical and cultural environment of the study area, data will be presented, as recorded in literature references and relevant studies, as well as data from the Public sector.

Content Content

Description

3.6 Social –economic Environment

3.6.1 Population

For the description of the existing population data of the study area, demographic data will be presented, as they are recorded in references and relevant studies carried out in the study area.

Content Content

Description

3.6.2 Manufacturing Sectors

For the description of the current situation of the production sectors, data will be presented as recorded in literature references and relevant studies carried out in the study area.

Content Content

Description

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3.6.3 Employment, unemployment and local economic data.

For the description of the existing employment, unemployment and the local economy of the study area, data will be presented as recorded in references and relevant studies carried out in the study area. Content Content

Description

3.7 Technical Infrastructures

3.7.1 Road Network

3.7.2. Railway Network

3.7.3. Ports and maritime transportation

3.7.4. Airport and air transportation

3.7.5. Power Infrastructure

3.7.6. Solid Waste Management Infrastructure

3.7.7. Wastewater management and disposal Infrastructure

3.7.8. Waterworks/ water supply system Infrastructure

3.7.9. Irrigation Infrastructure

3.7.10. Telecommunication infrastructure

To describe the current state of the technical infrastructure of the study area,

data will be presented based on references, Spatial planning and Operational Development Programs, which have been developed in the study area.

Content Content Description

3.8 Atmospheric Environment –Air Quality

Record of the pollution sources, the quality of the atmosphere and the tendency of development based on existing studies and reports, as well as existing measurements from the National Air Pollution Monitoring Network in the study area.

Content Content

Description

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3.9 Acoustic Environment & Vibrations

For the description of the current state of the acoustic environment and vibrations status of the study area, available quality data recordings of the acoustic environment will be listed, as well as tendency of development based on existing studies and reports and any existing measurements in the study area. Content Content

Description

3.10 Electromagnetic fields

To describe the current state of electromagnetic fields of the study area (terrestrial section), data will be presented based on existing studies and reports, likewise existing measurements at the study area (if any).

Content Content

Description

3.11 Waters

3.11.1 Surface and Ground water

Presentation of the provisions of the Water Management Plan of the West Water District, the Water Management Plan of the Northern Peloponnese, regulations protecting water resources of the region as well as the provision of approved Flood Risk Management Plans. Description of the surface water of the area (available quantitative and qualitative characteristics), as well as existing statutory and actual uses. Description of hydrogeological characteristics of the study area, existing,

Content Description Content statutory and actual uses of the groundwater resources and the available qualitative and quantitative characteristics.

3.11.2 Marine/ Sea Waters.

Description of the coastal waters of the study area and the available qualitative characteristics. Description of the marine waters of the study area and the available qualitative

Content Content characteristics.

Description

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3.12 Human Pressures on the environment

For the description of the current situation of human pressures on the environment within the limits of the study area, data based on literature references on the existing sources of pollution and the exploitation of natural resources. Furthermore, especially for the areas of oil and gas drilling that have taken

Content Content

Description place in the past within the concession, issues for existing pollution will be investigated from the available evidence and site visits.

3.13 Development trends of the Environment Means

For the description of the development trends in the study area without the project, information of existing studies and reports of the study area will be

presented, as well as action plans will be recorded, that will be implemented in order to protect the environmental parameters and achieving national objectives, such as action plans for biodiversity, waters, birds, flora, climate change, marine waters and protected areas (in draft is the Presidential Decree for the wider range of , from Alpheus river up to Kyparissia, which covers the Natura areas (« GR 2330005: Sand dunes and coastal forest, Strofylia Kakovatos», « GR 2550005: Dunes of Kyparissia: Neochori – Content Description Content Kyparissia» and « GR 2330008: Gulf of Kyparissia: Cape Katakolo – Kyparissia») and under subject to approval of the respective Special Environmental Study.

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CHAPTER 4. SUGGESTED ENVIRONMENTAL QUALITY INDICATORS

4.1 Purpose of the Proposed Environmental Indicators

The main objective of the proposed environmental indicators is the precise and clear presentation and quantification of the environmental situation within the survey area for selective environmental means.

4.4 Summary of Proposed Quality Indicators at Regional

In the MD 169895 / 08.08.2013 approval of the SEA for the exploration and exploitation of hydrocarbons at the Katakolo block, it is stated that the following indicators can be recorded:  Marine water quality indicators, including physicochemical and biological properties  Marine ecosystems health indicators, which will cover both photosynthetic and chemosynthetic bio-communities.  Indicators of ecosystem services, which the sea provides to local communities, including fisheries and tourism, with the choice of sizes and properties that represent the evolution of these services and the potential impact of the program.  Development indicators of the program, in terms of projects and activities carried out as well as those planned for next year.

At present, at the 1st stage of the Environmental Baseline Study, the use of some of the above mentioned indicators, which are relevant with the description of the environmental situation in the wider project area as well as the use of some additional, wherever it is necessary.

It is noted that the main reason for the accession of an indicator in the recommended ones, is the adequate data at a level of the research area or regional research, on annual basis. The main sources of the proposed environmental indicator calculation procedure is as follows: 1. The existing environmental monitoring network of the Ministry or of other bodies (Local Authorities etc.). Some examples of monitoring networks are the following:  Air quality  Noise recording (strategic noise maps)  NNEI (National Network of Environmental Information)– water quality (surface, underwater, transitional etc.)  Network monitoring beaches  Network of protected areas and Natura 2000 network 2. Separate and independent studies identifying the impacts of the whole or part of hydrocarbon exploration and exploitation program

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