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Annual Report

Licence Year 4, 10 May 2010 to 9 May 2011

Geothermal Retention Licences 3-12

Environmental

Document Number: ENV-FN-OT-RPT-00012

Revision No: 3.0

Date: 14 May 2012

UNCONTROLLED WHEN PRINTED

of 39 ENV-FN-OT-RPT-00012-3 0 Annual Report Licence Year 4 GRL 3-12.docx

DOCUMENT CONTROL

Document Information

Annual Report

Licence Year 4, 10 May 2010 to 9 May 2011

Geothermal Retention Licences 3-12

Environmental

Document Number: ENV-FN-OT-RPT-00012

Date: 14 May 2012

Rev Date Details Prepared by Reviewed by Approved by

1.0 12/07/2011 Draft for submission to PIRSA

Jonathan Evans Howard Coombes

Howard Coombes

2.0 25/01/2012 Issue to DMITRE Jonathan Evans Howard Coombes

Howard Coombes

3.0 14/05/2012 Issue to DMITRE Jonathan Evans Howard Coombes

Howard Coombes

Prepared, Reviewed and Approval Details

Prepared by: Jonathan Evans Date: Signature:

Reviewed by: Howard Coombes Date: Signature:

Approved by: Howard Coombes Date: Signature:

Release Statement

This document is unclassified and can be shared without restriction.

This document does not require review.

Document Owner

Howard Coombes

For Geodynamics Limited

Phone: (07) 3721 7551

Mobile: 0400 723 302

E-mail: [email protected]



CONTENTS

1. INTRODUCTION .......................................................................................................... 4

2. PERMIT SUMMARY ..................................................................................................... 4

3. REGULATED ACTIVITIES ........................................................................................... 5

3.1 Drilling ........................................................................................................................... 5

3.1.1 Habanero ...................................................................................................................... 5

3.1.2 Jolokia........................................................................................................................... 5

3.1.3 Savina ........................................................................................................................... 5

3.2 Well Operation Activities ............................................................................................... 6

3.2.1 Jolokia........................................................................................................................... 6

3.3 Seismic Data Acquisition ............................................................................................... 7

3.4 Seismic Data Processing and Reprocessing ................................................................. 7

3.5 Geochemical, Gravity, Magnetic and other surveys ...................................................... 7

3.6 Pipeline/Flowline Construction and Operation ............................................................... 8

3.7 Preliminary Survey Activities ......................................................................................... 8

4. COMPLIANCE ISSUES ................................................................................................ 8

4.1 Licence and Regulatory Compliance ............................................................................. 8

4.1.1 Licence Non-Compliance .............................................................................................. 8

4.1.2 Regulatory Non-Compliance ......................................................................................... 8

4.2 Compliance with Statement of Environmental Objectives .............................................. 9

4.3 Management System Audits ....................................................................................... 10

4.4 Report and Data Submissions ..................................................................................... 10

4.5 Incidents ..................................................................................................................... 12

4.6 Treat Prevention ......................................................................................................... 13

4.7 Future Work Program .................................................................................................. 13

5. EXPENDITURE STATEMENT .................................................................................... 13

APPENDIX A GEODYNAMICS' COMPLIANCE FOR DRILLING ACTIVITIES............................. 15

APPENDIX B GEODYNAMICS COMPLIANCE WITH GROUND BASED GEOPHYSICAL OPERATIONS (NON-SEISMIC) SEO ................................................................ 28

APPENDIX C RESERVOIR STIMULATION & EVALUATION STATEMENT OF ENVIRONMENTAL OBJECTIVES ................................................................................................ 34



1. INTRODUCTION

Geothermal Retention Licences (GRL’s) 3 – 12 were granted to Geodynamics Limited on 10 May 2007 for a period of 5 years.

This report details the work conducted during Licence Year 4, of the licence (10 May 2010 to 9 May 2011) in accordance with Regulation 33 of the Petroleum Act 2000.

2. PERMIT SUMMARY

For the duration of the licence year, licensees for Geothermal Retention Licence (GRL’s 3-12) were:

Geodynamics Limited 70% (operator)

Origin Energy Limited 30%

GRLs 3 - 12 have been granted without a set work programme (guaranteed or not guaranteed). The granting of these licences provides authorisation to Geodynamics to carry out operations (1) to establish the nature and extent of a discovery of geothermal energy, and (2) to establish the commercial feasibility of production and appropriate production techniques.

Licence Year 4 concluded on 9 May 2011. The following table (Table 2-1) displays the actual work completed up until the end of the current licence period.



Table 2-1: Work completed (as end of current reporting period) by licence year:

Licence Year

Licence Dates Actual Work

Year 1 10/05/07 to 9/05/08 Drilling and flow testing well Habanero 3, construction of flow line between Habanero 3 and Habanero 1, and drilling well Jolokia 1.

Year 2 10/05/08 to 09/05/09 Completed drilling of Jolokia 1

Commenced drilling of Savina 1

Completed installation of Habanero closed loop pipeline.

Carried out closed loop circulation testing of Habanero 3 to 1 closed loop.

The Habanero pilot plant commenced construction and was nearing completion by the end of the period.

Logs were run on Habanero 3, Jolokia 1 and Savina 1.

Installation of the Jolokia acoustic monitoring network.

Installation of the Savina acoustic monitoring network.

Continuous acoustic monitoring was undertaken at the Habanero, Jolokia and Savina networks.

Year 3 10/05/09 to 09/05/10 Completion of Habanero Pilot Plant

Habanero 3 well control incident (24/4/09). Well brought under control 20 May 2009.

Commenced preparations for completion and stimulation of Jolokia 1.

Year 4 10/05/10 to 9/05/11 Site establishment at Habanero 4

Completion and reservoir stimulation at Jolokia

Site establishment at Celsius 1 & 2

Drilling of Celsius 1

Year 5 10/05/11 to 9/05/12

3. REGULATED ACTIVITIES

3.1 Drilling

3.1.1 Habanero

No drilling activities were performed in the Habanero geothermal field during the reporting period.

3.1.2 Jolokia

No drilling activities were undertaken at Jolokia during the reporting period, however drilling related activities, including completion of the well were undertaken. These activities are described in more detail in section 3.2.1 below.

3.1.3 Savina

No drilling activities were performed in the Savina geothermal field during the reporting period.



3.2 Well Operation Activities

3.2.1 Jolokia

The key activities undertaken during the reporting year involved the completion of the Jolokia 1 well followed by reservoir stimulation. Below is a summary of the key activities.

Jolokia -1 was re-entered on 4th July 2010 in preparation to install liners and conduct completions and stimulation operations.

Delays were experienced both with start up and ongoing operations throughout the campaign due to unseasonal flooding and rainfall. In order to progress operations it was sometimes necessary to mobilise a helicopter to the field to effect personnel and limited equipment transfers. Flooding throughout the area often prevented access with heavy vehicles for up to a week at a time.

Once wellbore barriers were removed and initial clean out and circulation was performed, wireline logging was conducted to establish calliper and borehole imaging data deemed important for subsequent operations. No viable calliper data was obtained while some image log data was captured, analysed and used, in conjunction with existing data, to guide selection of target zones. Due to operational challenges multiple attempts were required to complete the logging operations.

Installation of the lower 7" liner string (the first of 3 liner strings installed in Jolokia-1) was completed over 53 days. This was due mainly to the liner becoming stuck approximately 400m from surface while running in on drillpipe. After an extensive fishing operation to recover the liner string, it was subsequently identified that a cement sheath present on the ID of the 9-5/8" casing had caused the liner hanger to pack off and preset the slips whilst being run in hole. This was despite a rigorous cleanup and scraping program prior to running the liner. A fixed OD taper mill was then run and used to remove all remaining sheath present on the casing wall prior to attempting to re-run the liner.

Once set on depth the lower liner was successfully cemented without incident.

After a clean out run above and into the PBR of the 7" lower liner, the 7" scab liner was run. This was stabbed into the lower liner then disengaged to allow placement of cement along its entire length from 3611mMD to 1994mMD. The scab liner was then re-engaged into the lower liner and the upper liner hanger set. This was followed by a „clean up‟ run to drill out the shoe track cement in both liners and run to TD to reduce mud weight to 14.4 ppg.

The 4-1/2" x 7" production packer with tailpipe and pre-installed isolation plug was installed inside the 7" scab liner with packer elements set at approximately 2099mMD. After pressure testing, the wellbore above the isolation plug was displaced to inhibited 10ppg NaCl brine in preparation for running the tieback liner.

The 7-5/8” tie-back string was run and crossed back to 7" casing to latch into the top of the 7” scab liner at 1994m. The 30ft PBR/seal assembly at the base of the tieback was sheared out to accommodate possible contraction of the string during stimulation activities and the Casing Hanger landed and tested.

An RTTS packer was set at 260m and tested, the BOP nippled down, a 5" production spool installed and the BOP reinstated.

The RTTS was removed and a 30ft PBR/Seal assembly was run on the 4-1/2" production tubing crossing over to 5" production tubing spaced out from above the 7" x 7-5/8" x-over back to surface. The annulus was displaced to water, the tieback spaced out and the PBR/seal assembly sheared out prior to landing and testing the tubing hanger.



A two-way check valve was installed into the hanger profile and the well secured. The BOP was removed and the Xmas tree installed and tested. Once a full pressure envelope had been confirmed the two-way check was removed and Coil Tubing rigged up to recover deep set barriers and prepare the well for stimulation.

Coil tubing was run to above the isolation plug at 2128m and the well displaced to 13.8ppg mud using a dedicated jetting/circulating assembly. The equalising prong was then recovered on coil tubing using a flow release GS. Pressure of approx 1000psi was observed immediately after the prong was released however this quickly dissipated.

The first attempt to recover the plug body was unsuccessful however at this point there was a mechanical failure of the CT reel which resulted in approximately 55 hours downtime before operations could recommence. Three further coil tubing runs were required before the plug body was successfully recovered. It is considered that barite settlement around and in the plug may have contributed to mechanically and hydraulically locking the plug in place.

With all barriers removed from the well CT was run to TD and the well displaced from 13.8ppg mud to 10.0ppg NaCl brine in preparation for the stimulation. Coil Tubing was rigged down and the stimulation and logging equipment rigged up.

At the conclusion of coil tubing operations the CT package was moved off location and equipment rigged up for wire line PTS logging in conjunction with stimulation operations.

An influx test was conducted with the PTS tool at 4300m and indicated tight formation with 0.44 m3 (2.8 bbl) flow back observed after 80mins with 14.9 MPa (2154 psi) draw-down . A low rate stimulation test pumping 1.2 sg (10 ppg) NaCl brine at 0.08 m3/min (0.5 bbl/min) was conducted with no significant break over pressure observed before maximum wellhead pressure of 69 MPa (10,000 psi) was achieved. This represented a calculated bottom hole pressure of 121.6 MPa (17640 psi).

Attempts to stimulate while pumping 1.2 sg (10 ppg) NaCl brine continued at rates ranging from 0.31 m3/min (1.94 bbl/min) to 0.8 m3/min (0.41 bbl/min). The maximum rate achievable for continuous injection into well without exceeding the surface pressure limitations was established as 0.8 m3/min (0.41 bbl/min).

Stimulation operations were suspended on the 27th October 2010 at which time it was decided to cease stimulation activities and suspend the well in preparation for the rig move.

3.3 Seismic Data Acquisition

Passive seismic data was collected for the entire period of the Licence Year.

3.4 Seismic Data Processing and Reprocessing

Seismic data processing and reprocessing was undertaken throughout the Licence year.

3.5 Geochemical, Gravity, Magnetic and other surveys

During the licence year Geodynamics undertook a gravity survey covering part of the licence area. The survey, which was undertaken during April 2011, was designed to infill the existing gravity grid with a 4x4km grid. The main objective of the survey was to delineate the edge of the Innamincka granite and gain a greater understanding of the various exploration prospects held for future geothermal activities. The data acquisition of the precision GPS-Gravity survey was carried out by Daishsat Geodetic Surveyors. The operations report has been provided to PIRSA separately.



3.6 Pipeline/Flowline Construction and Operation

Nil

3.7 Preliminary Survey Activities

Nil.

4. COMPLIANCE ISSUES

4.1 Licence and Regulatory Compliance

There were several instances during Year 4 of the GRL’s 3-12 in which Geodynamics failed to comply with the requirements of the licence, the Regulations of the Petroleum & Geothermal Energy Act 2000 or the objectives of the SEO’s under which it conducted its field operations. Refer Table 4 below.

4.1.1 Licence Non-Compliance

There were no instances during Year 3 of the GRL 3-12 Licence in which Geodynamics failed to comply with the conditions of the Licence.

4.1.2 Regulatory Non-Compliance

There were several instances during the reporting year GRL 3-12 licence where Geodynamics failed to comply with the regulations of the Petroleum & Geothermal Energy Act 2000. Refer Table 4-1.



Table 4-1: List of regulatory non-compliances for current reporting year

No. Date Activity Details of Non-Compliance

Rectification of Non-Compliance

1 9/05/10 Submission of quarterly reportable incident reports

Third, Fourth (2010) and First (2011) quarterly reports were not submitted in time.

The First quarterly report for 2011 contained the reportable incidents from the third and fourth quarters of 2010.

2 22/10/10 Notice of non compliance: Undertaking regulatory activity without approval

A pump was installed at Minkie Waterhole, Cooper Creek, which then became inundated during flooding. Approval for this activity had not been obtained from PIRSA prior to commencement.

The pump was removed from the creek as soon as practicable.

All staff and contractors have been re-educated to ensure they are aware of their responsibilities.

3 2/5/11 Notice of non compliance: Wastewater disposal

Greywater and blackwater system was not being operated in accordance with Objective 11 of the SEO whereby treated and untreated wastewater was being disposed to a dry creek bed

Immediate action was taken to rectify the problem.

Relevant personnel were required to undertake retraining to ensure they are aware of their responsibilities.

4.2 Compliance with Statement of Environmental Objectives

Activities carried out in GRL’s 3-12 during the Licence Year were undertaken under 3 SEO's as follows. A statement of performance against this SEO’s is provided in Appendices A, B & C.

Appendix No. Activity SEO Name

A Drilling South Australian Cooper Basin Operators Statement of Environmental Objectives: Drilling and Well Operations

Santos 2009

Gazetted November 2009

B Geophysical surveys Statement of Environmental Objectives for ground based geophysical operations (non-seismic) in South Australia.

PIRSA 2007

C Well Stimulation Statement of Environmental Objectives for enhanced geothermal systems: Reservoir Stimulation & Evaluation

Geodynamics Limited 2010

The following activities were carried out under the South Australian Cooper Basin Operators Statement of Environmental Objectives: Drilling and Well Operations

Jolokia 1 well completion.



The following activities were carried out under the Statement of Environmental Objectives for Enhanced Geothermal Systems: Reservoir Stimulation and Evaluation.

Jolokia 1 reservoir stimulation.

The following activities were carried out under the South Australian Statement of Environmental Objectives for ground based geophysical operations (non-seismic).

Gravity survey and EMT survey

Compliance with the applicable SEO’s during the licence year is documented in Appendices A, B & C.

4.3 Management System Audits

During the reporting period the following audits were undertaken:

Independent compliance audit report (Reservoir stimulation and evaluation SEO) December 2010

Independent compliance audit report (Drilling & Well operations SEO) June 2010

Independent compliance audit report (Drilling & Well Operations SEO - Jolokia 1) May 2011

Surveillance audit of Geodynamics Environmental Management System August 2010

Independent compliance and audit report (Reservoir Stimulation & Evaluation SEO) December 2010

Independent compliance audit report (Ground Based Geophysical Operations SEO - GRL 7) May 2011

Independent compliance audit report (Ground Based Geophysical Operations SEO - GRLs 8 & 9) Time Domain Electromagnetic Survey May 2011

All findings from these audits have been addressed and closed out.

4.4 Report and Data Submissions

Pursuant to Regulation 33(2) (e) under the Act, an annual report must include:

“a list of all reports and data relevant to the operation of the Act generated by the licensee during the licence year”.



Table 4-2: List of report and data submissions during current licence reporting year

Description of Report/Data Due Date Date Submitted

Compliant / Non-Compliant

Activity Notification (AN): Jolokia reservoir stimulation

Must be submitted and approved by the Minister before the proposed activity can commence.

17/06/2010 Compliant

Stimulation and Evaluation SEO 12/04/2010

Stimulation SEO and EIR and Noise Assessment of fracking operations

11/06/2010

AN: stimulation and ANZEC guidelines for ground vibration



Logging program covering well intervention activities

6/07/2010

Wellhead and annulus management plan

8/07/2010

Savina 1 Cali-GR 21 August 2009

Non-compliant from previous year

Jolokia 1 Completion and Stimulation Drilling Report 30/07/2010 - 21/10/2010

Must be submitted daily when drilling.


Environmental Impact Report & Statement of Environmental Objectives for Enhanced Geothermal Systems Reservoir Stimulation and Evaluation


AN: Site Establishment Must be submitted and approved by the Minister before the proposed activity can commence.


AN: Water Extraction, Cooper Creek, Jolokia 1


7/10/2010 Compliant

AN: Habanero 4 Drilling & Well Operations


8/10/2010 Compliant

Jolokia 1 Stimulation & PTS Logging Program


Jolokia Time Domain Electromagnetic Survey (GRLs 8-9)

Audit report must be submitted to PIRSA within two months of the completion of the survey


AN: Drilling of Celcius 1 & 2 Geothermal Wells (Shallows)

Must be submitted and approved by the Minister before the proposed activity can




commence.

Daily Pressure Monitoring for Hab 1,2 & 3

27/10/10 Compliant

AN: Jolokia proposed well suspension plan


3/11/2010 Compliant

Environmental Impact Report & SEO: Cooper Creek Water Extraction

15/11/2010

Jolokia 1 Well logging data Within 2 months of acquisition

2/12/2010

Quarterly cased hole logging reports (4th Quarter)

30/01/2011 2/12/2010 Compliant

Habanero 3 Fire Incident (s 85 (2)) Within 30 days of the relevant quarter

8/12/2010 Non-compliant

Jolokia 1 Workover Report Within 6 months after rig release


AN: Establishment of Habanero 4 Drill Camp



Quarterly Cased Hole Activity Report (1st Quarter)

30/04/2011 4/04/2011 Compliant

Quarterly Report for Reportable Incidents (also contained the previous quarter's incidents)

30/04/2011 28/06/2011 Non-compliant

4.5 Incidents

Pursuant to Regulation 33(2) (f), an annual report must include:

“in relation to any incidents reported to the Minister under the Act and these Regulations during the relevant licence year –

i. an overall assessment and analysis of the incidents, including the identification and analysis of any trends that have emerged; and

ii. an overall assessment of the effectiveness of any action taken to rectify non-compliance with obligations imposed by the Act, these regulations or the licence, or to minimise the risk of recurrence of any such non-compliance”.

The following incidents were reported to the Minister in the relevant year:

On the 11/05/2010 approximately 100 litres of sewerage spilled from the balance tank due to it over-flowing.

On 20/07/2010 there was a spillage of corrison inhibitor from the 1MW plant brine line.

On 16/10/2010 pump was submerged at Minkie Waterhole in Cooper Creek due to flood inundation.

On the 08/02/2011 a hydraulic hose failure on telehandler caused spillage of approximately 20 litres of hydraulic oil.



On 02/05/2011 treated and untreated wastewater was incorrectly disposed of at the Celsius site.

On 20/04/2011 waste was incorrectly disposed of at the Jolokia site during cleanup.

4.6 Treat Prevention

Pursuant to Regulation 33(2) (g) under the Act, an annual report must include:

“a report on any reasonably foreseeable threats (other than threats previously reported on) that reasonably presents, or may present, a hazard to facilities or activities under the licence, and a report on any corrective action that has, or will be taken”.

HAZOP/HAZID workshops were carried out as part of the design process for the activities undertaken at Jolokia during the licence year.

In addition, Geodynamics' risk management register which forms part of the Environmental Management System has been reviewed and updated periodically throughout the year.

4.7 Future Work Program

Pursuant to Regulation 33(2) (h) under the Act, an annual report must include:

“unless the relevant licence year is the last year in which the licence is to remain in force – a statement outlining operations proposed for the ensuing year”.

5. EXPENDITURE STATEMENT

Pursuant to Regulation 33(3) under the Act, an annual report must contain:

“An annual report must be accompanied by a statement of expenditure on regulated activities conducted under the licence for the relevant licence year, showing expenditure under each of the following headings:

(a) drilling activities;

(b) seismic activities;

(c) technical evaluation and analysis;

(d) other surveys;

(e) facility construction and modification;

(f) operating and administration expenses (not already covered under another heading)”.

Below is an expenditure statement for the current reporting period.


Page 15 of 39 ENV-FN-OT-RPT-00012-3 0 Annual Report Licence Year 4 GRL 3-12.docx

Appendix A Geodynamics' Compliance for Drilling Activities



Geodynamics Compliance for Drilling Activities

SEO: South Australia Cooper Basin Operators Statement of Environmental Objectives: Drilling and Well Operations, Santos 2009

Environmental Objective

Assessment Criteria Guide on How objectives can be achieved Assessment and Compliance Statement

Objective 1. Minimise risks to the safety of the public and other

third parties.

Reasonable measures implemented to ensure no injuries or health risks to the public or third parties.

All employees and contractor personnel complete a safety induction prior to commencement of work in the field.

All employees and contractor personnel undertake a refresher induction every 2 years.

Signage in place to warn third parties of access restrictions to operational areas, with particular warnings when potentially dangerous operations are being undertaken.

Necessary measures (e.g. signage/fencing) taken to prevent the public accessing the wellhead equipment or waste relating to a given well.

Demobilisation inspections undertaken at random to ensure that backfilling and waste removal requirements are met.

Permit to work systems in place for staff and contractors in dangerous situations.

All appropriate PPE (personnel protective equipment) is issued and available as required in accordance with company operating requirements and applicable standards.

Effective Emergency Response Plan (ERP) and procedures are in place in the event of a fire or explosion; Annual exercise of ERP.

Communication of rig moves and other potential hazards to safety associated with drilling and well operations to potentially affected parties prior to commencement of operations.

Compliance with relevant speed restrictions on access roads and tracks.

Reporting systems for recording injuries and accidents in place, and annual (at minimum) review of records to determine injury trends.

Implementation of appropriate corrective actions. Ensuring safety management plans are updated

and reviewed.

Compliance Statement: GDY to its knowledge believe it has complied with all obligations required under this SEO objective. GDY employs full time field based supervisors to monitor and direct all field operations. As part of this position all field procedures are being reviewed to ensure ongoing compliance with the terms of this objective.

Following an opportunity for improvement identified in an earlier audit, Geodynamics have decided to completely fence off the Jolokia 1 site once remediation works are completed.







Wastewater disposal in accordance with Objective 11

Objective 2: Minimise the disturbance and avoid contamination to soil.

Well Site and Access Track Construction

0, +1 or +2 GAS criteria are attained for

“Minimise impacts on soil” objective as listed in Appendix 1 Table A1 and “To minimise the visual impact” as listed in Appendix 1 Table A2.

No unauthorised off-road driving or creation

of shortcuts.

No construction activities are carried out on

salt lakes or steep tableland slopes (as defined in EIR). Borrow pit construction and restoration

0, +1 or +2 GAS criteria are attained for

“Minimise visual impacts’, and “Minimise impact on soil” objectives as listed in Appendix 1 Table A3. Production Testing/Well Blowdowns

No soil contamination as a result of production testing or well blowdown operations.

Fuel and Chemical Storage and Handling

No spills/leaks outside of areas designed to contain them.

Level of hydrocarbon continually decreasing for in situ remediation of spills.

Soils remediated to a level as determined by the SHI process.

Also refer to Objective 12. Waste Disposal (domestic, sewage and

Well Site and Access Track Construction

Consider alternate routes during planning phase to minimise environmental impacts.

Use existing routes / disturbed ground where practicable.

Gibber mantle on access tracks and well sites (excluding sumps) is not removed where possible, only rolled, in gibber and tableland land systems. Gibber mantle reinstated where appropriate during restoration.

Topsoil stockpiled (including gibber mantle) from sump construction and respread (and gibber recompacted) on abandonment.

The need to traverse sensitive land systems and the methods of managing the impacts must be justified in accordance with company procedures, recorded and available for auditing.

Borrow pit construction and restoration

Existing borrow pits to be re-used where practicable.

Siting of new borrow pits to avoid sloped areas and gibber as far as practicable.

Topsoil stockpiled (including gibber mantle) and respread on abandonment (gibber to be recompacted). Production Testing / Well Blowdowns

If appropriate use: - impermeable or clay lined flare pit to flare / contain hydrocarbons. - flare tanks.

Compliance Statement:

On 2nd

May 2011 representatives from PIRSA and Geodynamics inspected the Celsius 1 wellsite which was being operated by Origin Energy. At the time of the visit it was observed that greywater and blackwater system was not being operated in accordance with Objective 11 of the SEO. Treated and untreated wastewater was being disposed to a dry creek bed.

Immediate action was taken to rectify the situation and additional measures (including re-induction of relevant personnel, more regular inspections and audits) have also been put in place to ensure that there is no recurrence.

PIRSA issued a formal Notice of Non-compliance in relation to this incident, dated 6

th June 2011.







sludges)

All domestic wastes are disposed of in

accordance with EPA licensing requirements.

0, +1 or +2 GAS criteria are

attained for “Site to be left in a clean and tidy condition” objective listed in Appendix 1 Table A2.

No spills or leaks from sewage treatment

processing.

Refer to Assessment Criteria for Objective

11.


All fuel, oil and chemical storages bunded in

accordance with the appropriate standards and guidelines e.g. EPA guideline 080/07 Bunding and Spill Management.

Records of spill events and corrective actions

maintained in accordance with company procedures.

Spills or leaks are immediately reported and clean

up actions initiated.

Logged incidents are reviewed annually to

determine areas that may require corrective action in order to reduce spill volumes in subsequent years (and drive continual improvement).

Chemical and fuel storage procedures, including

signage, are reviewed and monitored in audit process. Spill Response / Contingency Planning

Results of emergency response procedures carried out in accordance with Regulation 31 show that an oil spill contingency plan in place in the event of a spill is adequate and any necessary remedial action needed to the plan is undertaken promptly.

Oil spill contingency plan (reviewed annually) is up to date with specific scenarios relating to spills to creeks and floodplain areas.

Spill response equipment is audited annually.

Annual spill response training exercise / rehearsal is undertaken.

Spills or leaks are immediately reported and clean up actions initiated. Waste Disposal (domestic, sewage and sludges)







Covered bins are provided for the collection and storage of wastes.

All loads of rubbish are covered during transport to the central waste facility.

Approved transportable Aerated Wastewater Treatment Plants (AWTPs) used for rigs/camps (once approved AWTPs are available from a supplier suitable to Santos1). Interim controls for management of sewage effluent (developed in consultation with the Department of Health) implemented1.

Use of permanent septic systems with camps where possible

Refer to Objective 11.







Objective 3: Avoid the introduction of spread of pest plants and animals and implement control measures as necessary.

No weeds or feral animals are introduced to, or spread in, operational areas as a consequence of activities.

Where appropriate a weed and feral animal management strategy is in place (avoidance and control strategies).

Rig and vehicle wash downs are initiated in accordance with the management strategy.

Compliance Statement: GDY to its knowledge and through implementing the EIR requirements believes that it has complied with all obligations under this SEO objective.

Objective 4: Minimise disturbance to drainage patterns and avoid contamination of surface waters and shallow ground water resources.

Well Lease and Access Track Construction

Well sites and access tracks are located and constructed to maintain pre-existing water flows (i.e. channel contours are maintained on floodplains and at creek crossings).

Drilling Mud Sumps and Flare Pits

No overflow of drill cuttings, muds and other drilling fluids from mud sumps.

No waste material disposal to sumps and flare pits.

Well Heads (Oil and Gas Systems)

No leaks/spills outside of areas designed to contain them.

Well Blowdown/Production Testing

No water (surface or groundwater) contamination as a result of production testing or well blowdown operations.

Well Lease and Access Track Construction

Sensitive land systems (e.g. wetlands) avoided wherever possible. Where activities are undertaken in or near these areas, appropriate review, assessment and mitigation measures are in place to ensure that surface water flows are maintained and contamination of surface water and groundwater is avoided.

Drilling Mud Sumps and Flare Pits

All drill cuttings, muds and non-toxic drill fluids are contained within the designated mud sumps with adequate freeboard at the completion of operations to allow to a 1m cover of clean fill at remediation.

Well Heads (Oil and Gas Systems)

Where appropriate, imperviously lined well cellars are installed on oil wells.

Chemical containment devices are installed on gas well skids.

Well heads shut in and chemicals removed prior to flood events.

Jet pumps are installed within containment device with an adequately sized containment sump.

Compliance Statement: GDY to its knowledge and through implementing the EIR requirements believe it has complied with all obligations required under this SEO objective..

Drill pads are above maximum recorded flood level.







Fuel/Chemical Storage and Handling

No water (surface or groundwater) contamination as a result of fuel or chemical storage and handling.

Waste Management

Refer to Assessment Criteria for Objective 11.

Well Blowdown/Production Testing

Activity is conducted in accordance with accepted industry standards / good oilfield practice.

If appropriate use:

Impermeable flare pit

Separators

Supervision


All fuel, oil and chemical storages bunded in accordance with the appropriate standards

Records of spill events and corrective actions maintained in accordance with company procedures

Spills or leaks are immediately reported and clean up actions initiated

Logged incidents are reviewed annually to determine areas that may require corrective action in order to reduce spill volumes in subsequent years (and drive continual improvement).

Chemical and fuel storage procedures, including signage, are reviewed and monitored in audit process.

Spill Response / Contingency Planning

Results of emergency response procedures carried out in accord with Regulation 31 show that oil spill contingency plan in place in the event of a spill is adequate and any necessary remedial action needed to the plan is undertaken promptly.

Oil spill contingency plan (reviewed annually) is up to date with specific scenarios relating to spills to







creeks and floodplain areas.

Spill response equipment is audited annually.

Annual spill response training exercise is undertaken.

Objective 5: Avoid disturbance to sites of cultural and heritage significance.

Proposed well sites and access tracks have been surveyed and any sites of Aboriginal and non- Aboriginal heritage identified.

Any identified cultural and heritage sites have been avoided.

Consultation with stakeholders (ie. Govenment agencies, landholders etc) in relation to the possible existence of heritage sites, as necessary.

Heritage report forms completed for any sites or artefacts identified, and report forms forward to the Department of Statement Aboriginal Affairs (DOSAA).

Survey records are kept and available for auditing.

Areas requiring remediation which lie outside previously surveyed sites should be surveyed in accordance with company heritage clearance procedures.

Note: Where a negotiated agreement or determination for heritage clearance is in place, compliance with the negotiated agreement or determination takes precedence over the above criteria.

Compliance Statement: GDY to is knowledge and through implementing the EIR requirements believes that it has complied with all obligations required under this SEO objective.

Jolokia 1 site heritage clearance obtained by Geodynamics in 2008.

Objective 6: Minimise loss of aquifer pressures and avoid aquifer contamination.

Drilling & Completion Activities

There is no uncontrolled flow to surface (blow out).

Sufficient barriers exist in casing annulus to prevent crossflow between separate aquifers or hydrocarbon reservoirs.

Relevant government approval obtained for abandonment of any radioactive tool left downhole.

Producing, Injection, Inactive and Abandoned Wells

No cross-flow behind casing between

Drilling & Completion Activities

A competent cement bond between aquifer and hydrocarbon reservoirs is demonstrated.

For cases where isolation of these formations is not established, a risk assessment incorporating the use of pressure / permeability / salinity data is undertaken in consultation with DLWBC & AAWCMB to determine if lack of cement or poor bond will cause or has caused damaging crossflow which needs to be remediated.

Producing, Injection and Inactive Wells

Monitoring programs implemented (eg. through

Compliance Statement: Not applicable to current activities at site.







aquifers, and between aquifers and hydrocarbon reservoirs unless approved by DWLBC.

well logs, pressure measurements, casing integrity measurements and corrosion monitoring programs) to assess condition of casing and cross-flow behind casing.

Casing annulus pressures are monitored every 2 years.

The condition of the primary casing barrier is adequate.

For cases where crossflow is detected, a risk assessment incorporating the use of pressure / permeability / salinty data is undertaken in consultation with DLWBC & AAWCMB to determine if lack of cement or poor bond will cause or has caused damaging crossflow which needs to be remediated.

Well Abandonment Activities

Isolation barriers are set in place to ensure that crossflow, contamination or pressure reduction will not occur.

Barriers will be set to meet or exceed the requirements of applicable standards for the decommissioning and abandonment of water bores and abandonment of petroleum wells.

The placement of isolation barriers will in general be to isolate the groups of formations as listed under comments. The number and placement of barriers may be varied from this standard approach on a case-by-case basis by SACB Operator personnel using relevant available data and the SA Cooper Basin Water Pressure and Salinity Module Report (2002), and in consultation with DWLBC.

Objective 7: Minimise disturbance to

Well Lease and Access Track Construction and Restoration

Well Lease and Access Track Construction and Restoration

Compliance Statement: GDY to its knowledge and through implementing the EIR requirements







native vegetation and native fauna.

Any sites with rare, vulnerable and endangered flora and fauna have been identified and avoided.

0, +1 or +2 GAS criteria are attained for “Minimise impact on vegetation” objective as listed in Appendix 1 Table A1 and “The revegetation of indigenous species” objective as listed in Appendix 1 Table A2, during well lease and access track site selection and construction and restoration.

Borrow Pit Construction and Restoration

0, +1 or +2 GAS criteria are attained for “Minimise impacts on vegetation” objectives as listed in Appendix 1 Table A3 during borrow pit site selection, construction, and restoration.

Waste Management

Refer to assessment criteria for Objective 11.


Refer to assessment criteria for Objectives 2 and 4.

Proposed well sites, camp sties, access tracks and borrow pit sites have been assessed for rare, vulnerable and endangered flora and fauna species before the commencement of construction.

Consider alternate routes during planning phase to minimise environmental impacts.

Facilities (eg. borrow pits, well cellars) are designed and constructed as far as practicable to minimise fauna entrapment.

Sumps and mud pits are fenced as appropriate to minimise wildlife access

Assessment records are kept and are available for auditing.

In recognised conservation reserves (ie. Innamincka Regional Reserve) excavations are left in a state as agreed with the responsible statutory body

Borrow pits are restored to minimise water holding capacity, where agreements are not in place with stakeholders.

Waste Management


All loads of rubbish are covered during transport to the central waste facility

Pits are not established locations, which pose an unacceptable hazard to stock or wildlife.

believes that it has complied with all obligations required under this SEO objective.

Flora and fauna survey undertaken by Geodynamics as part of Jolokia 1 activity notification process in 2008.

Turkey nest fenced to prevent stock access to water.

Objective 8: Minimise air pollution and greenhouse gas emissions.

Compliance with EPA requirements Well Testing

Conduct well testing in accordance with appropriate industry accepted standards

Continually review and improve operations

Appropriate emergency response procedures are

Compliance Statement: GDY to its knowledge and through implementing the EIR requirements believes that is has completed with all obligations under this SEO objective.







in place for the case of a gas leak

Well Blowdown

Blowdown carried out in accordance with industry accepted standards / good production practice

Any well that is consistently blown down is indentified for a small ID tubing or plunger lift installation to minimise blow downs on that well.

Objective 9: Maintain and enhance partnerships with the Cooper Basin Community.

No unresolved reasonable complaints from the community.

Relevant affected parties are notified and consulted on proposed activities.

Forward development plans are presented to the local community.

Local community projects and events are sponsored and supported where appropriate.

Industry membership of appropriate regional land management committees and boards ie. the Lake Eyre Basin Consultative Council, Marree Soil Conservation Board and Catchment Committees.

Geodynamics has provided the local community with project updates in relation to the activities undertaken at Jolokia.

No community complaints have been made to Geodynamics regarding the activities at Jolokia.

Compliance Statement: GDY to its knowledge and through implementing the EIR requirements believes that it has complied with all obligations under this SEO objective.

Objective 10: Avoid or minimise disturbance to stakeholders and/or associated infrastructure.

No reasonable stakeholder complaints left unresolved.

Induction for all employees and contractors covers pastoral, conservation, legislation and infrastructure issues.

Relevant stakeholders are notified prior to survey and construction of well sites, camp sites and access tracks and undertaking of operations (pursuant to Petroleum Regulations). Borrow pits left open (unrestored) if requested by landholder and upon receipt of letter of transfer of responsibility to landholder.

Gates or cattle grids are installed to a standard, consistent with pastoral infrastructure in fences where crossings are required for access.

Compliance Statement: GDY to its knowledge and through implementing the EIR requirements believes that it has completed with all obligations under this SEO objective.







All gates left in the condition in which they were found (ie. open/closed).

Potential sources of contamination are fenced as appropriate to prevent stock access.

System is in place for logging landholder complaints to ensure that issues are addressed as appropriate.

Requirements of the Cattle Care and Organic Beef accreditation programs are complied with.

In recognised conservation reserves (ie. Innamincka Regional Reserve) excavations are left in a state as agreed with the responsible statutory body.

Objective 11: Optimise (in order of most to least preferable) waste avoidance, reduction, reuse, recycling, treatment disposal.

All wastes to be disposed of at an EPA licensed facility in accordance with EPA Licence conditions, with the exception of drilling fluids, drill cuttings, other fluids disposed during well clean-up and wastewater (see below).

Wastewater (sewage and grey water) disposed of in accordance with the Public and Environmental Health (Waste Control) Regulations 1995 or to the Department of Health’s satisfaction.

Attainment of GAS criteria for “Site to be left in clean, tidy and safe condition” objective during well site restoration (refer Appendix 1 Table A2).

Attainment of GAS criteria for “Site left in clean and tidy condition” objective during borrow pit restoration (refer Appendix 1 Table A3).

Bulk chemical and oil purchasing and use of "bulk bins" or other storage tanks in place for large volume items.

Compliance Statement:

On 2nd

May 2011 representatives from PIRSA and Geodynamics inspected the Celsius 1 wellsite which was being operated by Origin Energy. At the time of the visit it was observed that greywater and blackwater system was not being operated in accordance with Objective 11 of the SEO. Treated and untreated wastewater was being disposed to a dry creek bed.

Immediate action was taken to rectify the situation and additional measures (including re-induction of relevant personnel, more regular inspections and audits) have also been put in place to ensure that there is no recurrence.

PIRSA issued a formal Notice of







Non-compliance in relation to this incident dated 6

th June 2011.

Objective 12: Remediate and rehabilitate operational areas to agreed standards.

No unresolved reasonable stakeholder complaints.

Contaminated Site Remediation

Contaminated sites are remediated to a level as determined by the approved SHI process.

Prior to the finalisation and approval of the SHI process, contaminated sites are remediated in accordance with criteria developed with the principles of the National Environment Protection Measure for contaminated sites, and in consultation with the EPA.

Well Site and Access Track Restoration

The attainment of 0, +1 or +2 GAS criteria for the objectives (refer Appendix 1 Table A2):

“To minimise the visual impact”

“The revegetation of indigenous species”

Borrow Pit Restoration

The attainment of 0, +1 or +2 GAS criteria for (refer Appendix 1 Table A3):

“Revegetation of indigenous species”

“Minimise impact on soil”

“Minimise visual impacts”

“Site to be left in a clean and tidy condition”

Rehabilitation / abandonment plans for surface activities will be developed in consultation with relevant stakeholders.

Well Site and Access Track Restoration

Compacted soil areas have been ripped (except on gibber and tablelands) and soil profile and contours are reinstated following completion of operations.

Compliance Statement: Although the site is still potentially active, significant remediation and rehabilitation works in compliance with applicable standards have been undertaken by Geodynamics.



Appendix B Geodynamics Compliance with Ground Based Geophysical Operations (non-seismic) SEO



Geodynamics Compliance with Ground Based Geophysical Operations

SEO: Ground based geophysical operations (non seismic) in South Australia August 2007 PIRSA

Environmental Objectives

Assessment Criteria Guide to How Objectives Can be Achieved

Assessment and Compliance Statement

Objective 1

Minimise the disturbance to other land users

All reasonable landowner complaints are addressed and resolved.

Traverse surveying, data acquisition, campsite preparation & rehabilitation

Upon completion of the geophysical survey and after any rehabilitation or reparation (if determined prior to survey), the level to which the impacts on other land users is determined by the absence of existing stakeholder complaints.

Notices of entry are to be distributed to all landowners and operators (including owners of community assets) whose land is impacted by the survey, campsites or survey traverses prior to commencement. (This is a requirement under Part 10 of the Petroleum Act 2000 and Regulation 22 of Regulations under the Petroleum Act 2000).

A system is in place to log landowner objections and complaints.

An agreement to the timing and level of disturbance to pastoral, horticultural, agricultural or other land user activities or infrastructure can facilitate landholder relations.

All gates are left in the position in which they were originally found.

All fences are restored to a level satisfactory to the landowner.

Appropriate warning signage is placed at site access off Fifteen Mile Track.

Compliance Statement: GDY to its knowledge believe it has complied with all obligations required under this SEO objective.

Objective 2

Minimise disturbance to native vegetation, fauna and associated wildlife habitats.


Vehicle access to survey traverses is to be via existing access tracks or existing seismic lines, except where they have rehabilitated. Other temporary access tracks may be utilised where such use is likely to result in less environmental impact than other options.

No off-traverse driving recorded.

No native vegetation clearance has occurred.

Terrain and vegetation is considered in planning stage when designing layout of the survey.

The conservation needs of particular species have been considered.

Campsites are established in locations where the preparation of a new access track is not necessary.

Campsites are established on

Survey crews had to undergo Geodyanimcs' site induction.









Known significant species sites have been flagged and avoided.

Waste materials do not pollute the environment and contaminate soils.

Fuel and Chemical Storage Management

No refuelling outside designated refuelling areas.

No spills/leaks outside areas designated to contain them.

Spills and leaks are immediately reported and clean up actions initiated.

Records of spill events are maintained.

Appropriate spill response equipment is available on site.

clear areas where no impact to vegetation occurs.

Only vehicles engaged in actual data acquisition process are permitted to drive along survey traverses.

Waste Management


All loads of rubbish are covered during transport to the central waste facility.

Objective 3

Avoid disturbance to sites of cultural and heritage significance


Appropriately qualified and experienced personnel have scouted proposed survey area.

These sites are flagged off and detoured around.

Any aboriginal cultural locations found are identified, recorded and reported accordingly to DPC-AARD.

Cultural and heritage site registers have been consulted in relation to survey traverse and adjusted accordingly.

A cultural heritage clearance report has been undertaken with qualified and experienced personnel and is available for audit upon request.

Environmental Report Forms are completed for any suspected aboriginal sites or individual artefacts identified, which are forwarded to DPC-AARD. Copies may also be forwarded to the Aboriginal Legal Rights Movement and representatives of local claimants as is appropriate and when cultural sensitivity permits.

Compliance Statement: GDY to its knowledge believe it has complied with all obligated required under this SEO objective. GDY employs full time based supervisors to monitor and direct all field operations. As part of this position all field procedures are being reviewed to ensure ongoing compliance with the terms of this objective.








Operators have a reporting system in place for cultural sites discovered during the survey process.

Objective 4

Minimise the risk of introduction and/or spread of introduced species and bio-security threats.


Weeds, feral animals or plant and animal diseases are not introduced to, or spread within South Australia.

Any vehicles upon entering the State need to be washed down to remove all likely infesting agents.

Cleaning of equipment must be carried out in accordance with predetermined company procedures and/or industry standards (i.e. accepted APPEA standards).

Liaison with the animal and plant control officer of applicable local councils and regional NRM boards can provide important information of local issues to factor into planning.

Contact with any infected plants or animals should result in cleaning of the relevant machinery before relocation, even within the survey area.

Details or logs of equipment cleaning are kept and are available for audit upon request.

Records of detection (whether introduced by a geophysical operator or not), monitoring, eradication or control of introduced species are kept and are available for audit upon request.

Areas of known disease infestation (such as phytophthora, phylloxera, Mundulla Yellows) are identified with landowners and relevant boards or control officers and be avoided.

An opportunity for improvement was identified in relation to establishing a register of vehicles washed in the washbay.









No pets are to be kept by the survey crew whilst on field operations.

Objective 5

Minimise the risk of initiation and/or propagation of wildfire.

Fire risk minimisation and situation Management

Appropriate plans in place and equipment available to identify hazards, initiate hazard mitigation and response training, fire-fighting equipment available and maintained accordingly, and fire bans adhered to.

Procedures are in place to minimise risk of initiating and propagating fire during periods of high temperatures and high winds.

A hazard identification plan is in place for immediate implementation on days of high temperatures and winds.

A response plan is in place for the safety of crew personnel should a fire approach, or be initiated by, the field crew.

The risks of fire to crews are clearly defined.

Contact with the local Country Fire Service is maintained in order to keep roads clear during episodes of fire.

Reporting procedures in place to CFS and PIRSA Petroleum & Geothermal Group.

Crews are trained in use of fire fighting equipment.


Objective 6

Minimise the visual impacts of geophysical operations

Surveying, creation of wheel tracks and campsite preparation.

Proposed survey traverses have been appropriately located to minimise visual impacts.

Vegetation and terrain variations have been used to minimise survey traverse visibility.

Planning procedures to minimise visibility

The conduciveness of an area to support survey vehicles (and potential impacts) should be considered to lessen on-ground visual impacts, especially in salt lake systems.

Campsites should have a low visibility from likely public viewpoints.









aspects are evident and available for audit upon request.

All litter is removed.

Objective 7

Minimise generation of dust

Access to properties is kept to minimum required to acquire data.

Vehicles are driven a speeds slow enough to not generate dust.

The importance if driving slowly to avoid raising dust is stressed during crew induction sessions.

All vehicles complied with applicable speed limits and prevailing consitions.


Objective 8

Minimise soil disturbance and contamination

Campsites have been appropriately located to minimise disturbance and contamination of soils.

No refuelling outside designated refuelling/servicing areas.

Spills and leaks are immediately reported and clean up actions undertaken.

All appropriate spill cleanup equipment held at campsites.

Waste materials do not pollute the environment and contaminate soils.

Only vehicles engaged in actual data acquisition process are permitted to drive along survey traverses.

The ability of an area to support the weight of survey vehicles (and potential impacts) should be considered in order to lessen any disturbances, especially in salt lake systems.

Oil spill areas have been ripped to an appropriate depth.

No clearing or earth stripping acivity involved.

No chemicals involved in survey.


Objective 9

Optimise waste reduction and recovery

Wastes with the exception of sewage and grey water wastes are segregated, burnt or transported to an Environment Protection Authority (EPA) approved waste disposal facility for recycling or burial in accordance with approved procedures.

Production of waste is minimised by purchasing biodegradable or recyclable materials where practical.

All wastewater disposed of in accordance with the Public and Environmental Health (Waste Control) Regulation 1995.

An opportunity for improvement was indentified during an audit in relation to establishing a process to ensure that no geophysical survey items are left behind.




Appendix C Reservoir Stimulation & Evaluation Statement of Environmental Objectives



Geodynamics compliance with Stimulation activities

SEO: Enhanced Geothermal Systems Reservoir Stimulation and Evaluation August 2010 Geodynamics Ltd


Assessment Criteria Guide to How Objectives Can be Achieved Assessment and Compliance Statement

1. Remediate and rehabilitate areas affected by EGS stimulation & evaluation activities

A score of at least ≥ 0 (minimize visual impacts and revegetation) is to be achieved for the rehabilitation of any areas affected by EGS stimulation & evaluation activities in accordance with the criteria set out in the Field Guide for the Environmental Assessment of Abandoned Petroleum Wellsites in the Cooper Basin, South Australia, PIRSA

Disused pipelines laid on surface are to be removed

Any soil contaminated by fuel/oil spillage to be immediately cleaned up and removed from pump site for treatment/disposal in accordance with GDY waste disposal procedure

Pipelines to be constructed/laid above ground - not trenched (except under roads)

No trees or shrubs to be removed or damaged during laying of low pressure HDPE pipelines – such pipelines must be directed around these

The salts left behind from evaporation will be disposed of to licensed facilities

The Jolokia 1 site although still active has undergone significant remediation.


2. Minimise impact on flora, livestock & fauna & endangered ecological communities

No unauthorized clearing or damage to threatened flora and fauna or endangered ecological communities

Avoid vegetation damage/mortality from condensate in steam vapour

Assessment of impact on any threatened flora and fauna species to be undertaken by ecologist prior to selection of dam/pond site to avoid sensitive areas where possible

The requirements of GDY’s Native Vegetation & Fauna Environmental Guidance Note (EGN) to be implemented at all times

Daily monitoring of dams/ponds to be undertaken to check for livestock and fauna activity to ensure fences are functioning appropriately

Escape ramp/device to be installed in ponds/sumps with vertical walls

Dams/ponds to be allowed to evaporate once stimulation/evaluation process complete if not required for future activities

Wind direction to be monitored prior to and during testing to ensure drift onto vegetation does not occur

Nearby vegetation to be monitored during production and open loop testing to check for damage/mortality and cease testing as necessary

An opportunity was identified during an audit in relation to Geodynamics reviewing their Rig100 induction process so that Geodynamics' EGNs are included.








(eg under certain wind directions) if drift over vegetation cannot be prevented

A personnel protection fence to be erected along high pressure/temperature pipelines

Test sites will be fenced to prevent access by livestock and native fauna

3. Avoid disturbance to aboriginal and non-aboriginal heritage sites

No unauthorized impacts on aboriginal or other heritage sites

Assessment of impact on any aboriginal or other heritage sites to be undertaken by archaeologist prior to selection of dam/pond site to avoid significant heritage areas

Implementation of GDY’s Aboriginal & European Heritage Guidance Note

No new dam/ponds established. Exisitng site covered by Work Area Clearance undertaken by Australian Heritage Services.


4. Avoid contamination of environment by geofluid

No contamination of soil, shallow groundwater or surface waters by geofluid

Ponds used to store geofluid will be lined with HDPE with a minimum thickness of 2mm and be of sufficient volume to hold all geofluid discharged

Splash board/panel to be used where necessary to ensure all geofluid discharged drains to lined pit or pond

Well heads designed to 68MPa (10,000 psi)

Automated and manual shut down systems in place

High pressure failure audible alarm

High pressure/temperature pipelines designed, maintained and operated in accordance with AS 4041-2006 & NACE for H2S & CO2 and any other relevant industry standards.

Strategically located diversion bunds/drains/dams established to ensure high volume discharges cannot discharge into sensitive areas (eg Cooper Creek or other water courses)

If wind is directing flow away from the dam the

SEO not relevant as the stimulation activity did not involve the drawing of any geofluid to the surface.








operation will be temporarily shut down

5. Avoid contamination of soil, shallow groundwater & surface waters with chemicals, fuels, oils etc used in stimulation or evaluation testing

No contamination of soil, shallow groundwater or surface waters

All fuels, chemicals, oils etc to be stored in accordance with GDY’s Environmental Guidance Note for Chemical & Fuel Storage and consistent with the requirements of the South Australian EPA’s Bunding Guideline 080/07 Bunding & Spill Management (June 2007)

Any spills or leaks shall be cleaned up using Spill Kits available on site and reported to the GDY Environment Manager for further advice in relation to cleanup and disposal of contaminated materials

Material Safety Data Sheets shall be available at each test site for all chemicals used in the stimulation and evaluation phase and the requirements of these MSDSs shall be complied with

If wind is directing geofluid spray drift away from the dam the operation will be temporarily shut down

Should flooding in Cooper Creek be predicted, any chemicals, fuels etc to be relocated to higher ground at GDY’s warehouse facility near Innamincka

The invert level of the geofluid ponds will be designed and constructed higher than flood levels

High pressure/temperature pipelines designed, maintained and operated in accordance with relevant industry standards

No spills reported or recorded on Rapid Incident database for the stimulation period.

An opportunity for improvement was identified in an audit in relation to Geodynamics reviewing its SEO guidance on flooding in Cooper Creek.


6. Avoid radiation and other contamination hazards to the public, third parties,

Concentration of the radioactive element radon in the atmosphere in the vicinity of production and open loop tests to not exceed 1000 Bq/m3

Continuous Radon monitoring of atmosphere in vicinity of discharges to atmosphere during production and open loop tests

Concentration of radioactive elements (Uranium, Thorium, Radium) in geofluid tested periodically at NATA registered laboratory

SEO not relevant as open loop testing was not carried out.








workers and environment

Wind direction to be monitored prior to and during testing to ensure geofluid spray drift onto workers & amenity/accommodation areas does not occur

Sediment deposited on dam/pond floor to be tested for contaminants (including flocculant wastes) prior to being exposed to air to determine risks of exposure to windblown dispersal and to identify if special management or disposal measures are required

7. Prevent the occurrence of seismic activity that could damage surface infrastructure or cause community concern

Peak particle velocity at the nearest sensitive receiver or infrastructure will not exceed 10mm/sec due to seismic activity caused by stimulation of the granite

A site specific seismic analysis study will be undertaken by an external expert to define the event magnitude that would result is a peak ground velocity of 10 mm/sec at the nearest sensitive receiver or infrastructure. The study will identify the seismic event levels at which the stimulation pump pressure should be reduced or the stimulation halted.

Seismic monitoring will be commenced prior to stimulation operations to obtain baseline information and will continue throughout the stimulation/evaluation phase

If magnitudes of seismic events remain above predetermined level at reduced injection rates the well shall be shut in.

Acoustic monitoring shall be undertaken to detect the development of fracture stimulation within the granite.

A building engineer will undertake building condition surveys of buildings in Innamincka prior to and following the stimulation of Jolokia 1 to determine any impacts from the stimulation activity

A seismic monitoring device will be installed near the Innamincka Hotel (prior the stimulation at Jolokia) to inform residents of any seismic activity

Seismic monitoring was conducted at Innamincka Hotel during stimulation.








in the area.

The Innamincka area community will be kept informed of the results of the Jolokia 1 hydraulic stimulation and any future stimulation activities in the area

8. Prevent contamination of the GAB or oil and gas resources with geofluid

No contamination of GAB or oil and gas reserves by geofluid from basement granite

Casing & cement shall be pressure tested to a predetermined value.

Acoustic monitoring shall be undertaken to detect the development (both extent & direction) of fracture stimulation within the granite to ensure that any impact on the overlying GAB & oil & gas reserves is avoided

Real time acoustic monitoring will detect growth of seismic activity upwards from the granite and if this occurs stimulation will be shut down

Jolokia 1 wellhead equipment tested to 10,000 psi by Woods Group between 5-16 October.


9. Prevent noise impacts on sensitive receivers (including campers)

Airborne noise impact from stimulation operations do not exceed 47 dB(A) at nearest sensitive receiver location (including campers)

A site specific airborne noise assessment of the stimulation (fracking) operation will be undertaken as part of the activity notification utilizing the noise levels in Table 7 of the EIR (or other noise data if required)

If necessary mitigation measures will be implemented to achieve the Rural Living noise goals of 47 dB(A) between 7am-10pm and 40dB(A) between 10pm-7am at the nearest receiver location/s

Geodynamics did not receive any noise complaints during the relevant period.


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