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Lahendong 5&6 RevisedESIA Report - Volume I

Non Technical Summary

February 2011Pertamina Geothermal Energy

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E2558 v4 REV

265718 RGE GEV 02 A

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

07 September 2010

Lahendong 5&6 Revised ESIA Report - Volume I

Non Technical Summary

February 2011

Pertamina Geothermal Energy

Mott MacDonald, Victory House, Trafalgar Place, Brighton BN1 4FY, United Kingdom T +44(0) 1273 365000 F +44(0) 1273 365100 W www.mottmac.com

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


Mott MacDonald, Victory House, Trafalgar Place, Brighton BN1 4FY, United Kingdom T +44(0) 1273 365000 F +44(0) 1273 365100 W www.mottmac.com

Revision Date Originator Checker Approver Description

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

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

C 18/02/11 L. Jones D. Boyland D. Boyland Revised ESIA Report

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.

265718/RGE/GEV/04/C February 2011 P:\Singapore\GB4\Projects\270369 PGE Geothermal ESIAs Indonesia\

i


Chapter Title Page

1. Introduction 11.1 Overview __________________________________________________________________________ 11.2 Who is Pertamina Geothermal Energy? __________________________________________________ 11.3 Where Can I Find More Information About the Project? ______________________________________ 2

2. The Project 32.1 Why is the Project Needed? ___________________________________________________________ 32.2 What is the Project?__________________________________________________________________ 32.2.1 Geothermal Power ___________________________________________________________________ 32.2.2 The Lahendong Units 5&6 Geothermal Project _____________________________________________ 42.2.3 Schedule __________________________________________________________________________ 82.3 How were the Project Site and Technology Selected? _______________________________________ 8

3. Managing Environmental and Social Impacts 93.1 What are the Project Activities that could affect the Environment and People? ____________________ 93.2 How was the Project Assessed and What Were the Findings?_________________________________ 93.3 Cumulative Impacts with Other Projects _________________________________________________ 223.4 How PGE will manage environmental and social impacts?___________________________________ 22 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 _______________________________________________ 4Figure 2.2: Project Location _____________________________________________________________________ 5Figure 2.3: Project Components__________________________________________________________________ 6Figure 2.4: Project Area Features ________________________________________________________________ 7

Content

265718/RGE/GEV/04/ C February 2011 1


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 Lahendong Units 5&6 Geothermal Power Project (the Project). The Project is also referred to as South Lahendong and Tompaso Units 1&2.

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 comprising two units, each with an electricity generation capacity of 20MW. 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).

Environmental assessment for the purpose of permitting and compliance with Indonesian legislation was undertaken on behalf of PGE by a local university consultancy, Badan Konsultan AMDAL Unsrat-Universitas Samratulangi (the Local Consultants). The Local Consultants have prepared an Environmental Management Effort (Upaya Pengelolaan Lingkungan – UKL) and Environmental Monitoring Effort (Upaya Pemantauan Lingkungan – UPL) for the steam field and a separate one for the power plant. Together these documents are referred to as the UKL/UPL.

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 Tompaso Geothermal Power Project” commissioned by PGE was completed on the 15th October 2010 by technical consultants AECOM. The feasibility study identified the need for potential additional production clusters and a potential additional reinjection cluster together with a relocation of the power plant location. This revised ESIA has been produced to update the draft ESIA to account for these changes to the Project. A number of minor changes have been made to the text as part of the natural evolution of the ESIA process.

In parallel, the aforementioned UKL / UPL studies are being updated and it is currently anticipated that these revised documents will be submitted to the Environmental Agency of the Minahasa District by the end of February 2011.

The scope of both the draft and revised ESIAs remains unchanged, namely the steam field (addressing current and future cluster development for the project, separators and pipes), the water pumping stations, access roads built for the Project and power plant Lahendong Units 5&6.

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).

1. Introduction



PGE is developing several other sites, including the Lahendong Units 5&6 site which is the focus of this report.

1.3 Where Can I Find More Information About the Project?

As part of the UKL/UPL process, “socialisation” or public consultation has been carried out by the Local Consultant at PGE’s request. Consultation has also been undertaken by MML at key stages during the ESIA process. 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 Tomohon 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 UKL/UPL and ESIA, questions and comments can be addressed to PGE Project Public Relations Officer: Mr Remmy Basalama Address: Jl. Raya Tomohon No. 420, Tomohon, North Sulawesi - Indonesia Tel _+62 431 351378 Email: [email protected] / [email protected]



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 Sulawesi. 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 Sulawesi; Contribute to a diverse energy base to secure energy requirements for Sulawesi; 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



Figure 2.1: Geothermal Power Plant Process Summary

Source: PGE

2.2.2 The Lahendong Units 5&6 Geothermal Project

The Project is located about 30 km South of Manado, North Sulawesi, Indonesia. It stretches across the villages of Sendangan, Pinabetengan, Pinabetengan Utara (North), Tompaso II, Kanonang (I and II), Tonsewer, Touure, Liba, Tember, Kamanga (I and II) and Talikuran in the Tompaso and Kawangkoan sub-districts of the Minahasa 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.

Currently the Lahendong Units 5&6 project consists of three clusters (groups of wells), two for stream production and one for brine reinjection. Up to three additional well clusters (2 for steam production and one for brine reinjection), and one power plant of two units (Units 5&6) are proposed. The Project will also include steam, condensate and brine interconnection pipelines between the various clusters and the power plant location. Each cluster will comprise up to six wells. The final number of wells and clusters depends on the production capacity of each well and may therefore vary depending on well production tests results. A 2.7km transmission line from Lahendong Units 5&6 to the Kawangkoan substation is included in the Project Component scope.



Figure 2.2: Project Location

Source: National Coordinating Agency for Surveys and Mapping

Site Location



Figure 2.3: Project Components

Legend:

Source: Mott MacDonald



Figure 2.4: Project Area Features

Legend:

Source: Mott MacDonald



2.2.3 Schedule

Project activities relevant to this assessment started in 2006 with the land acquisition for Cluster 26 and 27. Site preparation, detailed design, mobilisation, civil works and drilling have taken place since early 2008 at all three existing clusters with the completion of six production wells and two reinjection wells by December 2010.

If determined through production testing, drilling would re-commence for new wells on existing well pads during the second quarter of 2011. Civil preparations on any new well pads will commence later this year. Completion and testing of all new wells is anticipated in the third quarter of 2012.

It is anticipated that the EPC contracts for steamfield above ground system (SAGS) and power plant will be placed in the third quarter of 2012. The SAGS construction would take place from the third quarter in 2012 and commissioning of SAGS taking place in the second quarter of 2014. Power plant commissioning would be carried out in the second quarter of 2014 with about two months lag between the commissioning of each generating unit. Both units (5 and 6) would enter operation in later 2014.

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.



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



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 jobs phased throughout whole of construction period

Beneficial impact of moderate significance

Disclosure of a published employment policy, prioritisation of local employment. Use of village employment committees. Vocational training schemes.


Operation Recruitment Generation of approximately 285 mainly long-term jobs


As above. 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, 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.

Negligible



Phase Activity Impact Impact Significance

Mitigation / benefit enhancement Measures


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.

Negligible

Post operation / decommissioning phase

Retrenchment Loss of employment and reduction in income security of workers


Development and disclosure of PGE retrenchment plan.

Negligible

Impacts on Community Health, Safety, Security and Well-being Activities within site and worker camp boundaries

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

Mitigation of environmental impacts such as noise, dust and excavation waste. Restricting access to sites through appropriate fencing / signage around site perimeter. Reducing malarial incidence through maintenance of good construction site drainage, minimising standing water within Project areas, managing storage / settlement ponds to control mosquitoes. Site security personnel (appropriately vetted and trained. Site registry/identification system. Develop and disclose 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.





Mitigation / benefit enhancement Measures


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 within site boundary


Continuation of relevant activities above, and Health and safety awareness sessions for communities about risks related to tampering with steam pipes

Negligible

Post operation / decommissioning phase

Dismantling of power plant and wells

Risk to community health and safety from decommissioned power plant and wells


Sealing and capping of wells Land reclamation to remove health and safety hazards

Negligible

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


Development of participatory community investment planning




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 Tompaso II (Maasem River), Tember (Panasen River) and Kanonang I (Ranaan and Tempok Rivers). 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.


Diversion of water course

Damage to ecology Potential reduction in flow


To be avoided if possible. Provide adequate diversion capacity. Profile new channel to match old channel.

Negligible

Vegetation clearance

Erosion and increased sediment load reaching local water courses


Good construction practice, including bunding of working areas. Minimise vegetation clearance. Re-vegetate as soon as possible on completion of works.

Negligible


Temporary waste water settling pond overspill

Pollution of watercourse by “Muds”


Size temporary facilities appropriately and have contingency. Design adequate capacity of treatment ponds / water filters to safely manage quantities of waste water arising. Use of water based drilling muds as opposed to oil-based drilling muds. Recycling of drilling muds. Storage ponds to be concrete lined to ensure water tightness. Ponds monitored and cleared of silt periodically to





Mitigation Measures Residual Significance

maintain integrity of treatment and drainage system.

Spills from poor storage of fuels and chemicals

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

Adverse impact of moderate to major significance

Development of relevant procedures to avoid and minimise risk of spills, including: All chemicals and fuels are to be stored in designated sites with impermeable surface and adequate bunding to prevent accidental contamination. Storage areas to be located away from surface waters. Suitable spill kits to be provided within storage areas and near any fuelling / loading areas.


Well Testing Discharge of well brines to surface water


Ensure settling ponds have adequate storage capacity. Reinjection of water through reinjection wells.

Negligible

Possible Water abstraction to supply water needs of initial charge of cooling circuit

Less water available for human and ecological needs


Choose abstraction rate and timing to minimise impacts on water course and to ensure minimal stream flow maintained. Record quantity of water abstracted and timing of abstractions


Failure of brine / condensate pipeline to potential additional reinjection well Cluster 1

Discharge of brine to surface water


Creation of a brine management plan. Good design. Position pipeline along line of river to minimise potential impact to paddy and to allow enhancement of river bank. Creation of 25 m buffer zone between pipeline and River Panasen. In the event of pipeline failure, brine will be diverted via an emergency dump valve to a large emergency brine dump flash tank. Employ best practice.


Operation

Failure of brine reinjection system.

Discharge of well brines to surface water


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






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

Draining down of cooling tower

Discharge of effluent to surface water


Water to be reinjected into wells.



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


Best practice as for construction.


Decommissioning Infill of wells As those seen in Construction period


Application of same mitigation measures as for construction.


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

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


Good well design with deep casing as used and applied previously in this area. Groundwater quality monitoring to confirm water quality not affected.



Spilled chemicals or fuel percolating into shallow aquifer and entering local wells used for domestic or irrigation supply


Development of best practice measures to avoid and minimise risk of spills. Designated sites for chemical and fuel storage to prevent accidental contamination. Suitable spill kits to be provided within storage areas and near any fuelling / loading areas.


Land levelling, excavation and below water table plant construction

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


Additional water levels monitoring for the ESMP used to ensure that water levels in local wells are not affected by the land levelling and that sufficient water is available for use. Deepening of the affected wells may be considered where necessary.



Vegetation clearance and road

Short term decrease in local

Adverse impact of moderate

Best practice construction methods, such as ensuring slope angles are keep to a

Adverse impact of low





construction increasing risk of landslides

groundwater quality

significance minimum, stabilising slopes where necessary and reseeding of land.

significance

Water abstraction from shallow groundwater to supply water needs of power plant

Reduced groundwater levels and potential drying of local wells used for domestic and irrigation supply


Investigation into water levels and flow during construction phase. Investigate new source of 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.

Negligible

Storm water runoff from hard standing at power plant discharged to groundwater via soakaway

Detrimental change in groundwater quality in community wells


Use of good housekeeping and presence and use of spill kits.



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


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


Operation

Disposal of scale and other operational waste

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


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

Negligible

Decommissioning Infill of wells Detrimental change in groundwater quality in community wells


Application of same mitigation measures as for construction.


Noise Exploration, drilling and construction

Increased site noise during construction stage

Temporary nuisance to nearby residential 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.

Increased road traffic noise during construction stage

Temporary nuisance to residential receptors


Restricting working hours. Appropriate speed limits. Turning off engines when not in use.


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 at all times. Performing general plant maintenance during daytime only.

Negligible Operation

Increased road traffic noise during operation stage


Negligible Appropriate speed limits. Turning off engines when not in use.

Negligible

Increased site noise



As for construction. Adverse impact of low significance

Decommissioning

Increased road traffic noise

Temporary nuisance to residential receptors


As for construction. Negligible

Ecology Vegetation clearance, earthworks, and spoil disposal; drilling, pipeline and plant construction activities; creation of 25m buffer zone between brine & condensate pipelines and Panasen River

Change in terrestrial biodiversity


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

Negligible to Beneficial (where habitat is created in buffer zone)


Vegetation clearance, earthworks, and spoil disposal during construction

Spread of alien invasive plant species


Use of native species as part of any re-vegetation programme during construction. Identification of non-native plant species and their extent within development boundary: Treatment of materials contaminated by invasive plant material e.g. seeds, roots etc. Where necessary based on above findings, development of non-native species management plan.

Negligible





Construction and Operation

Construction and operation of weirs for abstraction

Change in aquatic biodiversity


Weirs built to facilitate water abstraction at the WPS should be opened regularly where possible. Re-vegetate 25m buffer zone between brine / condensate pipeline and Panasen River with native species thereby enhancing the river bank biodiversity through replacement of agriculture with semi-natural riparian habitat. Also provides further protection of aquatic ecology through prevention of unlikely spill from pipeline entering Panasen River.


Construction and Operation

Introduction of staff to area

Increased hunting and disturbance to local wildlife


Prohibit hunting, cultivation and deforestation by PGE and contractor staff members. Contractor to instruct all personnel with regards to the prohibition and clearly advise of disciplinary action associated with non compliance.


Air Site clearing, earthworks and construction

Dust nuisance Adverse impact of moderate significance

Dust suppression and control measures, visual monitoring. PPE for minimising dust exposure from on site receptors.


On site traffic and vehicle movements

NOX, PM10, SO2 emissions


Low emission vehicles and equipment, no idling vehicles Locate generators away from on site receptors.


Off site vehicles Dust resuspension


Dust suppression and control measures, visual monitoring.


Well tests H2S and particulate releases


No vertical well testing. Use of rock mufflers to elevate emission source. H2S Contractor to implement H2S response plan.



Well blowout H2S and particulate releases


Site H2S response plan by drilling contractor and H2S contractor.


Operation Power Plant site

H2S releases Adverse impact of moderate significance

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






procedures. Periodic monitoring of H2S emissions. Ambient monitoring of H2S concentrations.

Climate Change Operation Power

generation GHG displacement

Beneficial impact of major significance

None. Beneficial impact of major significance

Wastes Exploration, Drilling and Construction

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

Contamination of streams from waste excavation

Adverse impact of low to moderate 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.


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.

Negligible





Geology and erosion Soil excavation for well pads, roads and power plant

Increased erosion


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

Negligible

Soil excavation for well pads, roads and power plant

Decreased slope stability


Support walls with retain walls or other appropriate structures.

Negligible

Exploration, Drilling and Construction

Soil excavation for well pads, roads and power plant

Increased surface runoff


Make water channels to direct water and minimise topsoil compaction.

Negligible

Aggressive utilisation during stream field operation

Decreased reservoir pressure


Monitoring of surface geothermal activity.


Operation

Seismic and volcanic hazard

Earthquake / volcano


None. Adverse impact of low significance

Land contamination Collection, storage, transport of drilling muds and cuttings

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


Use of water based drill muds and recycling of drill muds. Storage of muds in lined ponds and of cuttings in dedicated houses. Regular removal of muds from the settling ponds for re-injection into total loss wells where available or storage and subsequent treatment of the muds as relevant waste category as determined by Indonesia regulation.


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



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



Collection and storage of brine during horizontal well testing



Storage of brine in lined ponds until potential future reinjection. Develop brine management plan to minimise risk of brine discharges.


Operation Storage, transport and use of

Change in soil chemistry and consequent

Adverse impact of low to moderate

Appropriate facilities/containers for segregation and permanent

Adverse impact of low





chemical, fuels and waste on operational sites

restriction of use, other indirect community and environmental risks

significance storage of chemicals / fuel on site. Temporary storage facilities available for maintenance periods. Internal training of PGE operational shift staff / maintenance staff.

significance

Steam field operation



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 land, treatment will be undertaken prior to discharge of effluent to comply with Indonesian discharge geothermal effluent standard.


Traffic Traffic associated with steam field / power plant development

Increase in traffic resulting in delays on local traffic network / increase risks associated with road safety


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



Traffic associated with steam field / power plant development

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


Potential improvement as part of CSR Programme.


Operation Traffic associated with staff movements and maintenance

None anticipated

Negligible None. Negligible

Archaeology Exploration, drilling and construction

Excavation works during construction phase

Disturbance of on-site archaeology / cultural heritage


PGE will require contractors to establish Chance Find Procedure.

Negligible



3.3 Cumulative Impacts with Other Projects

PGE currently owns and operates geothermal steam production and reinjection fields in the Lahendong geothermal reservoir area. These production wells provide steam for the Lahendong Units 1, 2 and 3 geothermal power plant owned and operated by the state-owned PLN. Units 1&2 are located separately from Unit 3. Unit 4 is currently under development and will be located adjacent to Unit 3. Each unit has an output capacity of 20MW.

Although the Project is referred to as Lahendong Units 5&6, it is located on the Tompaso geothermal reservoir which is 10 to 15km distance from the separate Lahendong geothermal reservoir where the existing Lahendong Units 1, 2 and 3 and future Lahendong Unit 4 power stations are located. The Project is therefore distinct and isolated from these other power units and is also referred to within Indonesia as the South Lahendong or Tompaso Units 1&2 project. The air dispersion modelling for Lahendong Units 5&6 has indicated that any potential contributions of pollutants from the power plant are already well dispersed 5km from the plant and would be further dispersed by the time they reached the other Units and not contribute to impacts in the areas around Units 1 to 4. No interaction of the plumes from the Units 5&6 with Units 1 to 4 would therefore be expected. The existing and future Lahendong Units 1 to 4 are outside the scope of the Project and of this ESIA.

Due to the distance, negligible cumulative impacts are expected and are not considered further within this assessment.

3.4 How PGE will manage environmental and social impacts?

PGE has developed an Environmental and Social Management Plan (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: Site waste management 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.

lahendong 5&6 revised esia vol i final - world bank€¦ · lahendong 5&6 revised esia...

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