ulubelu 3&4 revised esia report – volume i...pertamina geothermal energy (pge), a subsidiary...
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Ulubelu 3&4 Revised ESIA Report – Volume I
Non Technical Summary
March 2011
Pertamina Geothermal Energy
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265718 RGE GEV 02 A
P:\Singapore\GB4\Projects\270369 PGE Geothermal ESIAs Indonesia\
07 September 2010
Ulubelu 3&4 Revised ESIA Report – Volume I
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
Ulubelu 3&4 Revised ESIA Report – Volume I
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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Ulubelu 3&4 Revised ESIA Report – Volume I
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.
Beneficial impact of moderate significance
Operation Recruitment Generation of approximately 380 mainly long-term medium-highly skilled jobs.
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, 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.
Beneficial impact of moderate significance
Impacts on the Well-being of Workers on Site and in Camps
Exploration, drilling and construction
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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Phase Activity Impact Impact Significance
Mitigation / benefit enhancement Measures
Residual Significance
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
Adverse impact of low significance
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.
Exploration, drilling and construction
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.
Adverse impact of low significance
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Phase Activity Impact Impact Significance
Mitigation / benefit enhancement Measures
Residual Significance
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
Adverse impact of moderate significance
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.
Adverse impact of low significance
Land Acquisition
Exploration, drilling and construction
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.
Beneficial impact of moderate significance
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Table 3.2: Summary of Environmental Impacts and Mitigation Measures
Phase Activity Impact Impact Significance
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.
Adverse impact of low significance
Vegetation clearance and earth moving including diversion of water course
Damage to ecology
Potential reduction in flow
Adverse impact of major significance
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
Adverse impact of major significance
Good construction practice, including bunding of working areas.
Minimise vegetation clearance.
Re-vegetate as soon as possible on completion of works.
Negligible
Exploration, drilling and construction
Temporary waste water settling pond overspill
Pollution of watercourse by “Muds”
Adverse impact of major significance
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
Adverse impact of low significance
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Phase Activity Impact Impact Significance
Mitigation Measures Residual Significance
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.
Adverse impact of low significance
Well Testing Discharge of well brines to surface water
Adverse impact of major significance
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
Adverse impact of moderate significance
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
Adverse impact of major significance
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.
Adverse impact of low significance
Operation
Failure of brine reinjection system.
Discharge of well brines to surface water
Adverse impact of major significance
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
Adverse impact of low significance
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Phase Activity Impact Impact Significance
Mitigation Measures Residual Significance
undertaken prior to discharge of effluent to comply with Indonesian discharge geothermal effluent standard.
Spills from poor storage of fuels and chemicals
Chemicals or fuel entering local watercourse used for domestic or irrigation supply
Adverse impact of major significance
Best practice as for construction.
Adverse impact of low significance
Decommissioning Infill of wells As those seen in Construction period
Adverse impact of moderate significance
Application of same mitigation measures as for construction.
Adverse impact of low significance
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
Adverse impact of major significance
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
Adverse impact of low significance
Spills from poor storage of fuels and chemicals
Chemicals or fuel entering local wells used for domestic or irrigation supply
Adverse impact of major significance
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.
Adverse impact of low significance
Land levelling Changes in groundwater flow and level due to the levelling of land below groundwater table
Adverse impact of moderate significance
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
Adverse impact of low significance
Exploration, drilling and construction
Vegetation clearance and road construction increasing risk of landslides
Decrease in local groundwater quality
Adverse impact of moderate significance
Best practice construction methods, such as ensuring slope angles are keep to a minimum, stabilising slopes where necessary and reseeding of land.
Adverse impact of low significance
Operation Water abstraction from shallow groundwater to
Reduced groundwater levels and potential drying
Adverse impact of moderate significance
Investigation into water levels and flow during construction phase.
Investigate new source of
Negligible
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Phase Activity Impact Impact Significance
Mitigation Measures Residual Significance
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.
Spills from poor storage of fuels and chemicals
Chemicals or fuel entering local community wells used for domestic or irrigation supply
Adverse impact of major significance
Best practice for the storage of fuels and chemicals. Good housekeeping to keep leaks to minimum.
Adverse impact of low significance
Disposal of scale and other operational waste
Potential leaching of minerals into shallow groundwater used for domestic or irrigation supply
Adverse impact of low significance
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
Adverse impact of moderate significance
Application of same mitigation measures as for construction.
Adverse impact of low significance
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
Exploration, drilling and construction
Increased road traffic noise during construction stage
Temporary nuisance to residential receptors
Adverse impact of moderate significance
Restricting working hours.
Appropriate speed limits.
Adequately maintain vehicles
Turning off engines when not in use.
Adverse impact of low significance
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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Phase Activity Impact Impact Significance
Mitigation Measures Residual Significance
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
Temporary nuisance to residential receptors
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
Temporary nuisance to residential receptors
Adverse impact of low significance
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
Adverse impact of low significance
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
Adverse impact of low significance
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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Mitigation Measures Residual Significance
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
Adverse impact of low significance
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
Negligible to adverse impact of low significance
Low emission vehicles and equipment, no idling vehicles
Locate generators away from on site receptors.
Negligible
Off site vehicles NOX, PM10, SO2 emissions
Adverse impact of low significance
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.
Negligible to adverse impact of low significance
Exploration, drilling and construction
Well blowout H2S and particulate releases
Negligible to adverse impact of moderate significance
Site H2S emergency response plan by drilling contractor and H2S contractor.
Negligible to adverse impact of low significance
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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Phase Activity Impact Impact Significance
Mitigation Measures Residual Significance
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
Adverse impact of low 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.
Adverse impact of low significance
Geology and erosion
Soil excavation for well pads, roads and power plant
Increased erosion
Adverse impact of moderate significance
Cover of vulnerable soil with erosion resistant material and re-vegetation.
Adverse impact of low significance
Soil excavation for well pads, roads and power plant
Decreased slope stability
Adverse impact of moderate significance
Support walls with retain walls or other appropriate structures.
Adverse impact of low significance
Exploration, Drilling and Construction
Soil excavation for well pads, roads and power plant
Increased surface runoff
Adverse impact of moderate significance
Make water channels to direct water and minimise bank erosion.
Adverse impact of low significance
Operation Long term use Decreased Adverse Direct observation and Adverse
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Phase Activity Impact Impact Significance
Mitigation Measures Residual Significance
of the reservoir reservoir pressure
impact of low significance
impact of low significance
Seismic and volcanic hazard
Earthquake / volcano
Adverse impact of low significance
mapping of surface activity and comparison with pre-construction environment
Adverse impact of low significance
Land contamination
Settling ponds for drilling muds, event of flooding spill
Change in soil chemistry and consequent restriction of use, risk to humans
Adverse impact of major significance
Well designed and maintained ponds, monitoring and trained and responsible staff, spill response plan.
Adverse impact of low significance
Collection, storage, transport of drilling muds and cuttings
Change in soil chemistry and consequent restriction of use, other indirect community and environmental risks
Adverse impact of major significance
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.
Adverse impact of low significance
Storage, transport and use of chemicals, fuel and waste on construction site.
Change in soil chemistry and consequent restriction of use, other indirect community and environmental risks
Adverse impact of major significance
Appropriate facilities / containers for segregation of waste and temporary storage of chemicals / fuel on site.
Training of Contractor employees by Contractor.
Adverse impact of low significance
Exploration, drilling and construction
Handling of waste, spill of leachate
Change in soil chemistry and consequent restriction of use, risk to humans
Adverse impact of moderate significance
Management plan, well designed storage and well maintained, labelling, monitoring and trained and responsible staff, spill response plan
Adverse impact of low significance
Storage, transport and use of chemical, fuels and waste on operational sites
Change in soil chemistry and consequent restriction of use, other indirect community and environmental risks
Adverse impact of major significance
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.
Adverse impact of low significance
Operation
Handling of waste, spill of leachate
Change in soil chemistry and consequent restriction of use, risk to
Adverse impact of moderate significance
Suitable sized storage and well maintained, labelling, monitoring and trained and responsible staff, Develop spill response plans.
Adverse impact of low significance
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Mitigation Measures Residual Significance
humans
Spill of brine and condensate
Change in soil chemistry and consequent restriction of use, risk to humans
Adverse impact of low significance
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.
Adverse impact of low significance
Decommissioning and post-operation
Demolition work, hazardous waste
Change in soil chemistry and consequent restriction of use, risk to humans
Adverse impact of low significance
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.
Adverse impact of low significance
Traffic
Traffic associated with steam field / power plant development
Increase in traffic resulting in delays on local traffic network /
Adverse impact of low significance
Development and implementation by EPC contractor of Traffic Management Plan (TMP).
Assessment of access road capacity and review of route selection if required.
Adverse impact of low significance
Traffic associated with steam field / power plant development
Increased risks associated with road safety
Adverse impact of moderate significance
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.
Adverse impact of low significance
Construction
Traffic associated with steam field / power plant development
Physical effects (wear and tear) of construction traffic (including abnormal loads) on local road infrastructure.
Adverse impact of moderate significance
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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Mitigation Measures Residual Significance
Archaeology and Cultural Heritage
Exploration, drilling and construction
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.