Ulubelu 3&4 Revised ESIA Report – Volume I

Ulubelu 3&4 Revised ESIA Report – Volume I

Non Technical Summary

March 2011

Pertamina Geothermal Energy

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E2558 v1 REV

265718 RGE GEV 02 A

P:\Singapore\GB4\Projects\270369 PGE Geothermal ESIAs Indonesia\

07 September 2010


Non Technical Summary

March 2011

Pertamina Geothermal Energy

Mott MacDonald, Victory House, Trafalgar Place, Brighton BN1 4FY, United Kingdom

T +44(0) 1273 365000 F +44(0) 1273 365100 W www.mottmac.com

Menara Cakrawala 15th floor, Jalan MH. Thamrin No. 09 - Jakarta 10340, Indonesia


Mott MacDonald, Victory House, Trafalgar Place, Brighton BN1 4FY, United Kingdom

T +44(0) 1273 365000 F +44(0) 1273 365100 W www.mottmac.com

Revision Date Originator Checker Approver Description

A 07/09/10 V. Hovland B. Cornet D. Boyland First Draft

B 28/09/10 V. Hovland B. Cornet D. Boyland Final Draft for disclosure

C 01/12/10 Benjamin Cornet David Boyland David Boyland Revised addressing Secretariat comments

D 25/02/11 L. Jones D. Boyland D. Boyland Revised ESIA Report

E 23/03/11 M. O’Brien D. Boyland D. Boyland Revised ESIA Report addressing Secretariat comments

Issue and revision record

This document is issued for the party which commissioned it

and for specific purposes connected with the above-captioned

project only. It should not be relied upon by any other party or

used for any other purpose.

We accept no responsibility for the consequences of this

document being relied upon by any other party, or being used

for any other purpose, or containing any error or omission which

is due to an error or omission in data supplied to us by other

parties

This document contains confidential information and proprietary

intellectual property. It should not be shown to other parties

without consent from us and from the party which

commissioned it.

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Chapter Title Page

1. Introduction 1 1.1 Overview__________________________________________________________________________ 1 1.2 Who is Pertamina Geothermal Energy? __________________________________________________ 1 1.3 Where Can I Find More Information About the Project? ______________________________________ 2

2. The Project 3 2.1 Why is the Project Needed? ___________________________________________________________ 3 2.2 What is the Project? _________________________________________________________________ 3 2.2.1 Geothermal Power __________________________________________________________________ 3 2.2.2 The Ulubelu Units 3&4 Geothermal Project _______________________________________________ 4 2.2.3 Schedule__________________________________________________________________________ 8 2.3 How were the Project Site and Technology Selected? _______________________________________ 8

3. Managing Environmental and Social Impacts 9 3.1 What are the Project Activities that could affect the Environment and People? ____________________ 9 3.2 How was the Project Assessed and What Were the Findings?_________________________________ 9 3.3 Cumulative Impacts with Other Projects _________________________________________________ 22 3.4 How PGE will manage environmental and social impacts? __________________________________ 23

Tables

Table 3.1: Summary of Social Impacts and Mitigation Measures ______________________________________ 10 Table 3.2: Summary of Environmental Impacts and Mitigation Measures ________________________________ 13

Figures

Figure 2.1: Geothermal Power Plant Process Summary_______________________________________________ 4 Figure 2.2: Project Location ____________________________________________________________________ 5 Figure 2.3: Project Components _________________________________________________________________ 6 Figure 2.4: Project Area Features ________________________________________________________________ 7

Content

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1.1 Overview

The purpose of this non-technical summary (NTS) is to present in clear, simple and in as concise a manner

as possible the main findings and conclusions of the Environmental and Social Impact Assessment (ESIA)

undertaken for the construction and operation of the Ulubelu Units 3&4 Geothermal Power Project (the

Project).

The Project will be developed by Pertamina Geothermal Energy (PGE), a subsidiary of the Indonesian

national oil company PT Pertamina (Persero). The Project involves the development of well clusters,

Steamfield Above Ground System (SAGS) and a power plant. The steam extracted from the geothermal

wells will power a geothermal power station with an output capacity of 110 MW, made up of the two 55MW

units, referred to as Units 3&4. PGE applied for a grant through the World Bank to contribute to the cost of

initial development of the Project. This work includes the preparation of an international-quality

Environmental and Social Impact Assessment (ESIA).

Due to the size of the Project, a full Analisis Mengenai Dampak Lingkungan (AMDAL, local ESIA) is

required under Indonesian legislation. An AMDAL, covering well clusters, SAGS (consisting well heads,

steam pipes etc) and the PGE power plant (Units 3&4) has been undertaken by the University of Lampung

(the Local Consultants). Approval from the Head of the Environment Agency of Lampung Province was

issued on October 20, 2010.

PGE has appointed Mott MacDonald Limited (MML) to assist them in completing a full ESIA to international

standards for the Project, in compliance with World Bank procedures and guidelines. A draft ESIA report

was posted on the World Bank Infoshop and PGE website on October 7th 2010 for a 120 day consultation

period. Following disclosure of the draft ESIA, the final “Feasibility Study for Ulubelu Geothermal Power

Project” commissioned by PGE was completed on the 15th October 2010 by technical consultants AECOM.

In addition, subsequent to disclosure, further specific details of the Ulubelu Units 1&2 Power Plant were

developed by PLN allowing refinement of the assessment of cumulative impacts. This revised ESIA has

been produced to update the draft ESIA to account for further data becoming available. A number of minor

changes have been made to the text as part of the natural evolution of the ESIA process.

The scope of both the draft and revised ESIAs remains unchanged, namely the steam field (addressing

current cluster development for the project, separators and pipes), the water pumping stations, access

roads built for the Project and power plant Ulubelu Units 3&4.

1.2 Who is Pertamina Geothermal Energy?

Pertamina Geothermal Energy (PGE), a subsidiary of the Indonesian national oil company PT Pertamina

(Persero), was established in 2006 as mandated by the Government of Indonesia (GoI) to develop 15

Geothermal Business Working Areas in Indonesia. Of the 15 Geothermal Business Working Areas, three

are operational sites (Kamojang, Lahendong and Sibayak), which have to date generated over 9.5 million

tons of steam, converted to over 1.3 TWh (terawatt hour, an energy unit used to describe the electricity

produced).

PGE is developing several other sites, including the Ulubelu Units 3&4 site which is the focus of this report.

1. Introduction

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1.3 Where Can I Find More Information About the Project?

As part of the AMDAL process for the wells (steam field) and for the power plant, “socialisation” or public

consultation has been carried out by the Local Consultant in accordance with Indonesian legislation.

Consultation has also been undertaken by MML at the outset of the ESIA process and during preparation

of the ESIA. Future consultation and disclosure events will include the communication of the revised ESIA,

including this NTS, and disclosure of the final ESIA report. PGE will make the full ESIA report available on

its website (www.pgeindonesia.com) as well as holding a printed copy for consultation at its head office

and at the offices of the Head of the villages closest to the Project sites.

To support the international ESIA process, MML has produced a Public Consultation and Disclosure Plan

(PCDP) that acts as a strategic document for planning a comprehensive and culturally appropriate

approach to consultation and disclosure for the lifecycle of the Project. This document is presented in

Volume III of the ESIA.

In addition to local communication, the revised ESIA will be published by the World Bank on the dedicated

InfoShop website (http://publications.worldbank.org).

The key channels identified for communicating information to interested parties are as follows:

� Disclosure within the local communities of the revised ESIA report;

� Ongoing media communications;

� Ongoing stakeholder meetings during construction and operation;

� Community investment activities;

� Annual reports; and

� Open days during operation.

In addition to the formal consultation events and periods for comments on the AMDALs and ESIA,

questions and comments can be addressed to PGE Project Public Relations Officer: Mr Anshoruddin Address: Pekon Karang Rejo, Ulubelu District Tanggamus, Lampung Province - Indonesia Tel +62 21 39833316 Email: [email protected] / [email protected]

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2.1 Why is the Project Needed?

As a whole, Indonesia has been experiencing rapid demand growth in all segments of the energy sector for

several years. Power shortages resulting in frequent blackouts have been experienced in 250 regions,

including Sumatra. Given the existing power shortages and predicted growth in energy demand the need

for new energy generation facilities to be established and commissioned over the next few years is high.

The following points highlight the national and regional needs for development of additional energy sources

with the objectives of the Project being to:

� Contribute to national energy requirement for sustainable development;

� Contribute to regional energy requirements of Sumatra;

� Contribute to a diverse energy base to secure energy requirements for Sumatra;

� Provide continuous, reliable, high efficiency and low cost energy;

� Provide economic and social benefits on both a national and regional level;

� Provide potential employment opportunities to the community residing in the region and nearby;

� Contribute to the local economy, social and technical infrastructure; and

� Increase the diversity of energy resources.

In particular geothermal energy provides an alternative solution to current dependence on coal to supply

majority of baseload demand.

2.2 What is the Project?

2.2.1 Geothermal Power

To utilise geothermal energy, production wells are drilled down into the heated water contained within the

Earth's crust - the geothermal reservoir. Once these geothermal reservoirs are tapped into, the heated

water and steam rise to the surface where the steam is separated and used to power steam turbines,

which then generate mechanical energy that can be harnessed as electricity. Brine and condensate are

returned via reinjection wells back to the geothermal reservoir.

Figure 2.1 presents a high level summary of the overall geothermal power plant process. The process can

be separated in two main areas:

� Steam fields, where steam is extracted, processed and also subsequently re-injected; and

� Power plant, where the extracted steam is used to generate electricity.

2. The Project

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Figure 2.1: Geothermal Power Plant Process Summary

Source: PGE

2.2.2 The Ulubelu Units 3&4 Geothermal Project

The Project is located about 80 km West of Bandar Lampung, South Sumatra, Indonesia. The project is

located in proximity to the villages of Datarajan, Gunung Tiga, Karang Rejo, Pagar Alam, and Muara Dua.

The Project area is located in the Tanggamus district. A regional map showing the project location is

shown in Figure 2.2.

Project components are presented in Figure 2.3 and features within the Project area are presented in

Figure 2.4.

The Ulubelu Units 3&4 Project will consist of six clusters (groups of wells); four for stream production and

two for condensate and brine reinjection. Access roads to all clusters have been completed and drilling

has already commenced at four clusters. The steam produced will power a geothermal power station of

two 55MW units referred to as Ulubelu Units 3&4 with a total power output of 110MW. Power from Units

3&4 will be sent to the PLN Units 1&2 switchyard via a dedicated 500 m transmission link which is included

in the Project Component scope.

PLN is developing two other 55MW units (Units 1&2) on the same geothermal field although this project

will be supplied with steam from two separate wellpad clusters. Units 1&2 and Units 3&4 will share three

wellpad clusters albeit via dedicated production and reinjection wells for each power plant. Together, the

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total steam field development and Units 1&2 and 3&4 are referred to as the overall Ulubelu Development

although it is split into two distinct development projects.

Also located on the Ulubelu geothermal field, the geothermal Unit 1&2 power project is being separately

developed by PLN (with financing from JICA) and it is anticipated that this plant will enter into commercial

operation in 2012. PGE is also involved in this project as it is responsible for the drilling of production and

reinjection wells to support Units 1&2 (development of Cluster C, Cluster D and some dedicated wells on

Cluster A, Cluster B and Cluster F). The development of power plant Units 1&2 and corresponding well

development is outside the project financing scope of the World Bank.

However, although the PLN and PGE power plants are separate developments, they will be located near

each other, roughly in the centre of the clusters. In addition, some wellpad clusters will accommodate

dedicated wells for one power plant or the other. There are no proposals for interconnection in the Ulubelu

steamfield between respective projects. Therefore, although the Unit 1&2 development is not the focus of

this ESIA, Units 1&2 has been considered where cumulative impacts are expected.

Independently from the Project under consideration in this ESIA, PLN will build a 150kV transmission line

to connect Units 1&2 to the South Sumatra transmission grid.

Figure 2.2: Project Location

Source: National Coordinating Agency for Surveys and Mapping

Project Location

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Figure 2.3: Project Components

Legend:

Source: Mott MacDonald

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Figure 2.4: Project Area Features

Legend:

Source: Mott MacDonald

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2.2.3 Schedule

Project activities relevant to this assessment started in 2006 with the land acquisition for Cluster B. Site

preparation, detailed design, mobilisation, civil works and drilling have taken place since.

The drilling works will include the drilling and testing of approximately 16 production wells (two of which

were drilled as of July 2010), 4 brine reinjection wells and 1 condensate reinjection well. The drilling phase

will continue at the beginning of 2011 on well pads already constructed by PGE including the newly

constructed well pads (clusters G and H). Drilling and testing of new wells is expected to be complete in

the third quarter of 2012. The total drilling phase is expected to take 18 months.

Construction of the steamfield above ground system (SAGS) and development of the Ulubelu Units 3&4

power plant is expected to take 2.5 years. Plant commissioning would be carried out in the first and second

quarter of 2014 with Unit 3 and Unit 4 entering commercial operation in mid and late 2014 respectively.

2.3 How were the Project Site and Technology Selected?

The Project development and the ESIA process included consideration of alternative sites, technologies

and configurations.

The search for potential geothermal prospects is carried out through geological mapping, geochemical

sampling of springs and streams along with geophysical surveying. Shallow wells are used to map the

extent of the geothermal site and slim holes may be drilled down to 500-1000 m depth to investigate

temperatures at depth prior to location and drilling of production and re-injection wells. The general

location of well pads and power station in geothermal developments is initially constrained by the overall

geothermal resource. However the physical footprints of the power station, well pads, and access roads

required are small in comparison to the overall exploitation area. The use of directional drilling (the hole is

not vertical and the bottom of the well therefore not directly underneath the well head) of wells to reach the

geothermal resource allows for the development of well pad clusters which can be sensitively located away

from important receptors. Site selection process starts with a review of the topography of the area for

selecting the location for well pads and power plant and determining routes for the process, reinjection

pipes and gathering system. The selection of well pads to date has avoided dwellings and taken into

consideration existing land use. In addition wells have been sited away from steep slopes, minimised

removal of tress and paddy field locations. The layout chosen has aimed to maximise the natural elevation

and eliminate the need for pumps within the system, which is instead powered by natural gravity and

pressure within the system.

Based on the requirements for base load (continuous electricity production), stable electricity generation,

costs, raw materials availability and other developments envisaged by PLN, the analysis of alternatives

has concluded that a coal fired thermal power plant would be the most likely alternative to the Project. The

environmental and social impacts of the two options were compared and the comparative review illustrates

the benefits of geothermal generation over coal for this Project. A geothermal generation plant is

considered to be the most appropriate solution for achieving the objectives of this project as well as the

overall power generation expansion plan for Indonesia.

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3.1 What are the Project Activities that could affect the Environment and People?

It is recognised that a project of this scale and duration has the potential to impact the environment and the

community, both in a positive and negative way. The activities that could cause the most important effects

include:

� Social impacts associated with:

− Employment generation;

− Workers well-being;

− Community health, safety and well being;

− Land acquisition;

− Community investment;

� Direct and indirect impacts on ecology;

� Impacts on surface and ground waters;

� Noise effects;

� Air quality impacts from H2S releases during operation;

� Land contamination risk;

� Displacement of greenhouse gases emissions; and

� Waste generation and management.

3.2 How was the Project Assessed and What Were the Findings?

A thorough appraisal has been undertaken for potential impacts arising from the Project development,

including the above issues; the appraisal has included a detailed Social Impact Assessment and

Environmental Impact Assessment (collectively presented as an ESIA). The assessment included:

� Establishment of the baseline to understand current conditions at and around the proposed Project

sites;

� Prediction of impacts, using, where relevant, advanced modelling tools;

� Identification of mitigation measures to be included in the design, procedures, development and

management of the Project.

The appraisal process was supported by local consultation undertaken to ensure that PGE understands

and has incorporated the concerns of local people from the surrounding villages into the process.

The significance of an impact is described based on sensitivity of project affected persons / environment

and magnitude of impacts. Where possible, impact magnitude and sensitivity are described with reference

to legal requirements, accepted scientific standards or accepted impact assessment practice and/or social

acceptability. Where the ESIA found that the project could caused moderate to substantially significant

impacts then actions or procedures (referred to as mitigation measures) have been developed to avoid,

reduce or otherwise mitigate the effects and reduce their significance. A great number of potential impacts

can either be avoided or reduced through mitigation; however, some residual environmental impacts may

be unavoidable. Each chapter of the ESIA has assessed whether residual impacts, either beneficial or

adverse, remain after mitigation. A summary of the key findings of the appraisal process, the residual

impact and the main mitigation measures identified for each social and environmental impact of

significance is summarised in Table 3.1 and Table 3.2 below.

3. Managing Environmental and Social Impacts

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Table 3.1 and Table 3.2 summarise impacts and mitigation measures for each social and environmental

aspect considered relating to the following phases of the Project (as relevant):

� Exploration, drilling and construction (relating to the exploration of the geothermal resource, drilling of

geothermal wells and construction of the SAGS and power plant);

� Operation (relating to the operation of the steamfield and power plant);

� Decommissioning (relating to the post operation of the power plant).

Table 3.1: Summary of Social Impacts and Mitigation Measures

Phase Activity Impact Impact Significance

Mitigation / benefit enhancement Measures

Residual Significance

Employment Generation

Exploration, drilling and construction

Recruitment Generation of approximately 1,080 temporary low-skilled jobs phased throughout the whole of construction period.

Beneficial impact of moderate significance

Disclosure of a published recruitment policy, including prioritisation of local employment.

Use of village employment committees.

Local employment to be prioritised, contractor to provide additional specialised training to local workforce in skills required by contractor.


Operation Recruitment Generation of approximately 380 mainly long-term medium-highly skilled jobs.


Disclosure of a published recruitment policy, including prioritisation of local employment.

Use of village employment committees.

Local employment to be prioritised, PGE to provide vocational training schemes to local workforce employed for a minimum of one year via supply companies in skills required by power plant operation.


Impacts on the Well-being of Workers on Site and in Camps


Working / living on site / in camps

Deterioration in well-being of workers through poor health and safety and other labour management relations and management practices

Adverse impact of low significance

Policies / clauses for contractor, to prohibit the use of child and forced labour / promote non-discrimination and equal opportunities.

Development of staff grievance polices and procedures and disclosure to new and existing workers.

Audit of contractors workers camps to determine need for upgrade / improvement.

Workers to receive brochure which raises HIV / AIDS awareness.

Malaria awareness and prevention briefings, provision of mosquito nets,

Negligible

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fumigation and anti-malarials, maintain campsite free of stagnant pools.

OHS audit of contractor activities and development and implementation of OHS policies for contractors and monitoring programmes.

Employ H2S safety contractor.

Operation Working on site As above Adverse impact of low significance

The relevant measures above, and

Implementation of PGE’s labour management procedures and welfare safeguard measures (as embodies within the existing PGE SML3LL).

Negligible

Post operation/ decommissioning

Retrenchment Loss of employment and reduction in income security of workers


Development and disclosure of PGE retrenchment plan.

Negligible

Impacts on Community Health, Safety, Security and Well-being

Activities within site and worker camp boundaries

Risk to community health, safety and well-being from site activities and workers

Mitigation of environmental impacts such as noise, dust and excavation waste.

Restricting access to sites through appropriate fencing / signage around site perimeter.

Reducing malarial incidence through maintenance of good construction site drainage, minimising standing water within Project areas, managing storage / settlement ponds to control mosquitoes.

Site security personnel (appropriately vetted and trained.

Site registry/identification system.

Develop and disclose emergency preparedness and response plans.

Develop and disclose community grievance mechanisms.


Well production testing

Risks to safety of community members and damage to crops from debris, health risks due to H2S exposure

Adverse impact of moderate significance

Avoid vertical testing in favour of horizontal testing.

Use of rock muffler to mitigate noise emissions during horizontal well testing.


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Heavy load and other vehicles driving through communities

Road safety risks and damage to road infrastructure and drainage systems

Road safety plans / maximum speed limits for site and access routes.

Contractor programme to monitor and enforce safety plans, accident reporting and statistics, establish penalties for violations.

Maintenance of site and access roads under PGE’s responsibility to reduce erosion/degradation of drainage channels.

Traffic safety sessions for children.

Water extraction and settling ponds management

Pollution of or shortages in community water

Audits of water infrastructure, maintenance and activities and monitoring of ground and surface waters.

Operation Activities within site boundaries and steam transmission piping

Risk to community health and safety including health impacts as a result of H2S exposure


Continuation of relevant activities above.

Health and safety awareness sessions for communities about risks related to tampering with steam pipes.

Abatement of H2S emissions from the power plant once operational.

Development of an emergency preparedness and response plan to be enacted in the event of abnormal operation.

Ongoing monitoring of ambient H2S concentrations and health of nearby communities.


Land Acquisition


Land acquisition

Payment of cash compensation for acquired land, assets and crops

Beneficial impact of negligible to low significance

Continue using current willing buyer / willing seller practices. Only pursue expropriation as a last resort and follow the Land Acquisition and Resettlement Policy Framework.

Beneficial impact of low significance

Community Investment

Starting immediately continuing through all phases

Community investment

Community development

Beneficial impact of low to moderate significance

Development of participatory community investment planning.

Feasibility study into rural electrification.


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Table 3.2: Summary of Environmental Impacts and Mitigation Measures


Mitigation Measures Residual Significance

Water Quality and Hydrology

Abstraction during dry season

Less water available for human and ecological needs

Adverse impact of major significance

Prior to any new river abstractions, identify any local users downstream as far as Karang Rejo.

Choose abstraction flow rate and timing to minimise impacts on water course and to ensure minimal stream flow maintained.

Where this cannot be achieved, before drilling construction, PGE to construct new water supply pipeline from alternative source to ensure community water supply unaffected.

Use pond to store water for drilling.

Recycle “muds” to minimise need for “new” water.


Vegetation clearance and earth moving including diversion of water course

Damage to ecology

Potential reduction in flow


To be avoided if possible.

Provide adequate diversion capacity.

Profile new channel to match old channel.

Negligible

Vegetation clearance; earth moving

Erosion and increased sediment load reaching local water courses


Good construction practice, including bunding of working areas.

Minimise vegetation clearance.

Re-vegetate as soon as possible on completion of works.

Negligible


Temporary waste water settling pond overspill

Pollution of watercourse by “Muds”


Size temporary facilities appropriately and have contingency.

Design adequate capacity of treatment ponds / water filters to safely manage quantities of waste water arising.

Use of water based drilling muds as opposed to oil-based drilling muds.

Recycling of drilling muds.

Design adequate capacity of treatment ponds/water filters to safely manage quantities of waste water arising.

Storage ponds to have impermeable lining such as HDPE or similar geomembrane of appropriate thickness bonded together to


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ensure water-tightness

Ponds monitored and cleared of silt periodically to maintain integrity of treatment and drainage system.

Spills from poor storage of fuels and chemicals

Chemicals or fuel entering local water course used for domestic or irrigation supply

Adverse impact of moderate to major significance

Development of relevant procedures to avoid and minimise risk of spills, including:

All chemicals and fuels are to be stored in designated sites with impermeable surface and adequate bunding to prevent accidental contamination.

Storage areas to be located away from surface waters.

Suitable spill kits to be provided within storage areas and near any fuelling / loading areas.


Well Testing Discharge of well brines to surface water


Ensure settling ponds have adequate storage capacity.

Reinjection of water through reinjection wells.

Negligible

Water abstraction to supply water needs of initial charge of cooling circuit at the power plant

Less water available for human and ecological needs


Choose abstraction rate and timing to minimise impacts on water course and to ensure minimal stream flow maintained.

Record quantity of water abstracted and timing of abstractions

Negligible

Failure of brine / condensate pipeline

Discharge of brine to surface water


Creation of a brine management plan.

Good design.

In the event of pipeline failure, brine will be diverted via an emergency dump valve to a large emergency brine dump flash tank.

Employ best practice.


Operation

Failure of brine reinjection system.

Discharge of well brines to surface water


Minimise risk of brine / condensate discharge through implementation of reinjection system and provision of adequate sized lined storage ponds / system shut down in case of reinjection failure.

Develop brine management plan to minimise risk of brine discharges.

In the event of emergency discharge of brine / condensate to surface waters, treatment will be


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undertaken prior to discharge of effluent to comply with Indonesian discharge geothermal effluent standard.


Chemicals or fuel entering local watercourse used for domestic or irrigation supply


Best practice as for construction.


Decommissioning Infill of wells As those seen in Construction period


Application of same mitigation measures as for construction.


Groundwater

Construction of wells and potential hydrofracturing creating new pathways between the deep and shallow aquifer

Introduction of highly mineralised water from deep aquifer into the shallow groundwater used for domestic or irrigation supply


Good well design with deep casing as used and applied previously in this area.

Groundwater quality monitoring to confirm water quality not affected.

If water levels are found to have been affected then provision of alternative water supplies may be considered



Chemicals or fuel entering local wells used for domestic or irrigation supply


Development of best practice measures to avoid and minimise risk of spills.

Designated sites for chemical and fuel storage to prevent accidental contamination.

Suitable spill kits to be provided within storage areas and near any fuelling / loading areas.


Land levelling Changes in groundwater flow and level due to the levelling of land below groundwater table


Additional water levels monitoring for the ESMP used to ensure that water levels in local wells are not affected by the land levelling and that sufficient water is available for use. If water levels are found to have dropped in local wells then deepening of the affected wells may be considered



Vegetation clearance and road construction increasing risk of landslides

Decrease in local groundwater quality


Best practice construction methods, such as ensuring slope angles are keep to a minimum, stabilising slopes where necessary and reseeding of land.


Operation Water abstraction from shallow groundwater to

Reduced groundwater levels and potential drying


Investigation into water levels and flow during construction phase.

Investigate new source of

Negligible

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supply water needs of power plant

of local wells used for domestic and irrigation supply

water for plant if risk is found to be high.

Deepen wells affected by reduced water levels.

Provide alternative water supply to residents if affected by reduced water levels.


Chemicals or fuel entering local community wells used for domestic or irrigation supply


Best practice for the storage of fuels and chemicals. Good housekeeping to keep leaks to minimum.


Disposal of scale and other operational waste

Potential leaching of minerals into shallow groundwater used for domestic or irrigation supply


Disposal of any hazardous waste (as determined through toxicity testing) by third party licensed by Ministry of Environment according to regulations.

Negligible

Decommissioning Infill of wells / dismantling of Power Plant

Detrimental change in groundwater quality in community wells


Application of same mitigation measures as for construction.


Noise

Increased site noise during construction stage

Temporary nuisance to nearby residential receptors

Adverse impact of critical significance (Cluster B, E and F receptors).

Negligible all other cluster receptors

Restricting working hours.

Use of well maintained plant.

Appropriate positioning of plant considering directionality.

Use of material stockpiles for screening.

Turning off plant when not in use.

Use of appropriate construction methods.

Use of sound reduction equipment.

Advising villagers in advance of particularly noisy work.

Adverse impact of moderate significance with limited periods of adverse major / critical for Clusters B, E and F.

Negligible for all other cluster receptors


Increased road traffic noise during construction stage

Temporary nuisance to residential receptors


Restricting working hours.

Appropriate speed limits.

Adequately maintain vehicles

Turning off engines when not in use.


Operation Increased site noise from power plant operation

Permanent nuisance to residential receptors

Negligible Use of low noise plant.

Use of sound reduction equipment where necessary.

Closing plant building doors

Negligible

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at all times.

Performing general plant maintenance during daytime only.

Increased road traffic noise during operation stage

Permanent nuisance to residential receptors

Negligible Appropriate speed limits.

Turning off engines when not in use.

Negligible

Increased site noise


Adverse impact of major significance (Cluster B, E and F receptors).

Negligible all other cluster receptors

As for construction. Adverse impact of low significance for cluster B, E and F receptors.

Adverse negligible for all other cluster receptors.

Decommissioning

Increased road traffic noise



As for construction. Adverse impact of low significance

Ecology

Vegetation clearance, earthworks, and spoil disposal

Exploration, drilling and construction of well clusters and other Project infrastructure including 500m electricity transmission link to PLN substation

Change in terrestrial biodiversity


Pre-clearance surveys for endangered species and breeding birds, burrowing mammals, reptiles and amphibians

Negligible Exploration, drilling and construction

Vegetation clearance, earthworks, and spoil disposal during construction

Spread of alien invasive plant species


Use of native species as part of any re-vegetation programme during construction.

Identification of non-native plant species and their extent within development boundary: Treatment of materials contaminated by invasive plant material e.g. seeds, roots etc.

Where necessary based on above findings, development of non-native species management plan.

Negligible

Construction and Operation

Construction and operation

Change in aquatic

Adverse impact of low

Weirs built to facilitate water abstraction at the WPS

Negligible

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of weirs for abstraction

biodiversity significance should be opened regularly where possible.

Construction and Operation

Introduction of staff to area

Increased hunting and disturbance to local wildlife


Prohibit hunting, cultivation and deforestation by PGE and contractor staff members.

Contractor to instruct all personnel with regards to the prohibition and clearly advise of disciplinary action associated with non compliance.

Negligible

Air

Site clearing, earthworks and construction activities

Dust nuisance Negligible to adverse impact of moderate significance

Dust suppression and control measures, visual monitoring.

PPE for minimising dust exposure from on site receptors.

Negligible to adverse impact of low significance

On site traffic and vehicle movements

NOX, PM10, SO2 emissions


Low emission vehicles and equipment, no idling vehicles

Locate generators away from on site receptors.

Negligible

Off site vehicles NOX, PM10, SO2 emissions


Low emission vehicles and equipment, no idling vehicles.

Negligible

Well tests H2S and particulate releases

Negligible to adverse impact of moderate significance

No vertical well testing.

Use of rock mufflers to elevate emission source.

H2S contractor to implement H2S emergency response plan.



Well blowout H2S and particulate releases

Negligible to adverse impact of moderate significance

Site H2S emergency response plan by drilling contractor and H2S contractor.


Operation Cooling tower and rock muffler emissions

H2S releases Negligible to adverse impact of critical significance

Personal H2S monitors, suitable on site ventilation, information on H2S, maintain levels below occupational limit, on site H2S monitoring system, confined space procedures.

60% H2S emission abatement (based on conservative well test results for NCG and H2S content).

Periodic monitoring of H2S emissions.

Ambient monitoring of H2S concentrations. Health data collection. Emergency response plan.

Negligible

Climate Change

Operation Power generation

GHG displacement

Beneficial impact of

None. Beneficial impact of

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major significance

major significance

Wastes

Exploration, Drilling and Construction

Day to day construction activities including drilling mud cuttings; Scrap metals, waste oils, plastics, consumables

Contamination of groundwater and streams from waste excavation

Adverse impact of low to moderate significance


Operation Office wastes, waste oils, waste chemicals, consumables.

Contamination Adverse impact of low significance

Implement Waste Management Plan (WMP) which identifies measures for minimisation of waste and safe disposal of construction wastes.

Appropriate facilities/containers for segregation and temporary storage of general wastes on site and establishment of regular disposal to landfill or recycling where possible.

Use of water based drill muds and recycling of drill muds.

Storage of muds in lined ponds and of cuttings in dedicated houses.

Regular removal of muds from the settling ponds for re-injection into total loss wells where available or storage and subsequent treatment of the muds as relevant waste category as determined by Indonesia regulation.

Disposal of hazardous waste by third party licensed by MoE. Segregation of waste streams for reusing and recycling.

Identify reuse and recycle options of non hazardous waste with local community.

Identification of appropriate site(s) for excavation material disposal, away from sensitive surface / ground water features.


Geology and erosion

Soil excavation for well pads, roads and power plant

Increased erosion


Cover of vulnerable soil with erosion resistant material and re-vegetation.



Decreased slope stability


Support walls with retain walls or other appropriate structures.


Exploration, Drilling and Construction


Increased surface runoff


Make water channels to direct water and minimise bank erosion.


Operation Long term use Decreased Adverse Direct observation and Adverse

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of the reservoir reservoir pressure

impact of low significance

impact of low significance

Seismic and volcanic hazard

Earthquake / volcano


mapping of surface activity and comparison with pre-construction environment


Land contamination

Settling ponds for drilling muds, event of flooding spill

Change in soil chemistry and consequent restriction of use, risk to humans


Well designed and maintained ponds, monitoring and trained and responsible staff, spill response plan.


Collection, storage, transport of drilling muds and cuttings

Change in soil chemistry and consequent restriction of use, other indirect community and environmental risks


Use of water based drill muds and recycling of drill muds.

Storage of muds in lined ponds and of cuttings in dedicated houses.

Regular removal of muds from the settling ponds for re-injection into total loss wells where available or storage and subsequent treatment of the muds as relevant waste category as determined by Indonesia regulation.


Storage, transport and use of chemicals, fuel and waste on construction site.



Appropriate facilities / containers for segregation of waste and temporary storage of chemicals / fuel on site.

Training of Contractor employees by Contractor.



Handling of waste, spill of leachate



Management plan, well designed storage and well maintained, labelling, monitoring and trained and responsible staff, spill response plan


Storage, transport and use of chemical, fuels and waste on operational sites



Appropriate facilities/containers for segregation and permanent storage of chemicals / fuel on site. Temporary storage facilities available for maintenance periods.

Internal training of PGE operational shift staff / maintenance staff.


Operation

Handling of waste, spill of leachate

Change in soil chemistry and consequent restriction of use, risk to


Suitable sized storage and well maintained, labelling, monitoring and trained and responsible staff, Develop spill response plans.


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humans

Spill of brine and condensate



Implementation of re-injection system.

Provision of adequately sized concrete storage ponds.

Develop Brine Management Plan to minimise risk of brine discharges.

In the event of emergency discharge of brine / condensate to land, treatment will be undertaken prior to discharge of effluent to comply with Indonesian discharge geothermal effluent standard.


Decommissioning and post-operation

Demolition work, hazardous waste



Similar mitigation as for construction to include:

Appropriate facilities / containers for segregation and temporary storage of chemicals / fuel on site.

Appropriate disposal of hazardous waste, monitoring, spill response plan.


Traffic

Traffic associated with steam field / power plant development

Increase in traffic resulting in delays on local traffic network /


Development and implementation by EPC contractor of Traffic Management Plan (TMP).

Assessment of access road capacity and review of route selection if required.



Increased risks associated with road safety


Development and implementation by EPC contractor of Traffic Management Plan (TMP)

Provision of educational sessions for children in all schools along the road to the Project sites from Karang Rejo village.


Construction


Physical effects (wear and tear) of construction traffic (including abnormal loads) on local road infrastructure.


Traffic Management Plan

Potential improvement as part of CSR programme.

Beneficial impact of low significance

Operation Traffic associated with staff movements and maintenance

None anticipated

Negligible None Negligible

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Archaeology and Cultural Heritage


Excavation works during construction phase

Disturbance of on-site archaeology / cultural heritage

Negligible PGE will require contractors to establish Chance Find Procedure

Negligible

3.3 Cumulative Impacts with Other Projects

Cumulative impacts are those that may result from the combined effects of several activities. In addition to

the cumulative impacts from developing several well pads, the main source of cumulative impacts is the

development of the PLN Units 1&2 Plant. This has been taken into account in the assessment and

residual impacts above include the combined effect of Units 1&2 and 3&4.

Cumulative impacts due to power plant construction are expected to be low given the distances and

different schedules of Units 1&2 and Units 3&4.

Cumulative impacts during the operation of Units 1&2 and Units 3&4 are also predicted to be low, with the

exception of H2S emissions (if left unabated). The close proximity of the two plants mean that, at some

residential locations, the cumulative effect of their emissions has been predicted to result in concentrations

of H2S that are very close to, or above, guidelines for the protection of human health. This conclusion is

based on preliminary and conservative well test results. Provisions have been made for revised modelling

to be undertaken at a later date when further data are available.

Because this is a cumulative impact, abatement measures are required for both Units 1&2 and Units 3&4.

In order to address Units 3&4’s contribution to the impact, PGE are committed to installing equipment that

will reduce emissions of H2S by 60%. This commitment is set out within the Environmental and Social

Management Plan (ESMP) (Volume IV), further details of which are provided below. PLN will also need to

comply based on its Joint Agreement with PGE and its commitment to the GoI. Compliance by PLN and

PGE will be jointly monitored, as per the Joint Agreement, and its results reported to the GoI and the World

Bank. Calculations based on the existing preliminary well testing data used within this ESIA (as reported in

the project Feasibility Study, October 2010) shows that a reduction of emissions by 60% at Units 1&2

(combined with that from Units 3&4) would avoid cumulative impacts. In addition to the abatement of

emissions, the ESMP also requires monitoring of ambient H2S concentrations and the collection of health

information in the area. Under the Joint Agreement, monitoring of compliance with the guidelines for the

protection of human health will be carried out by PGE and PLN together.

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3.4 How PGE will manage environmental and social impacts?

PGE has developed an ESMP that draws upon the management and mitigation measures which have

been defined within the ESIA. The ESMP is presented as Volume IV of the ESIA documentation. The

primary objective of an Environmental and Social Management Plan (ESMP) is to safeguard the

environment, site staff and the local population from site activity that may cause harm or nuisance. The

management plan, which also covers monitoring, is the basis of the environmental and social protection

measures to be implemented by PGE and its contractors.

In addition to the ESMP, a number of complimentary framework plans, policies and procedures have been

developed including the following:

� H2S monitoring programme;

� Health data collection programme;

� H2S emergency response plan;

� Recruitment plan;

� Retrenchment plan;

� Waste management plan;

� Traffic management plan;

� Temporary worker accommodation management plan; and

� Chance finds procedure.

Responsibilities for implementation are outlined in the ESMP and fall to either PGE or the various

contractors.

The implementation of the ESMP ensures EHS performance is in accordance with international standards

(including the relevant World Bank operational policies and World Bank Group EHS guidelines) and best

practice.

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Ulubelu 3&4 Revised ESIA Report – Volume I

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