Operation Environmental Management Plan

Transcription

1 PORT WARATAH COAL SERVICES LIMITED Operation Environmental Management Plan - KCT 120Mtpa Modified Project Approval MP 06_0189 MOD1 Prepared By: Samantha Spicer Revision: 2 Date: 4 th May 2012 Doc Id No.: 2011 KCT Operation Environmental Management Plan.doc DOCUMENT CONTROL Status Submission Date Prepared Checked Authorised DP&I Approval Date Revision 1 5 December 2011 Sam Spicer Nick Godfrey-Smith Peter Kibble Revision 2 16 March 2012 Sam Spicer Nick Godfrey-Smith Peter Kibble Revision 2 - Resubmitted 4 May 2012 Sam Spicer Nick Godfrey-Smith Peter Kibble

2 TABLE OF CONTENTS 1 INTRODUCTION Context Purpose Background 4 2 PLANNING Characteristics of Operations at PWCS Approvals and Licences 7 3 IMPLEMENTATION AND OPERATION Environmental Management at PWCS Environmental Training Emergency Response and Corrective Action Environmental Risks 9 4 PERFORMANCE MEASUREMENT Environmental Monitoring Programs Environmental Reporting Environmental Auditing and Review Compliance Tracking Program Community Enquiries Handling Procedures 11 5 ACCOUNTABILITIES 13 6 REFERENCES PWCS Documents Approval Compliance Operation Environmental Management Plan 16 7 GLOSSARY OF ACRONYMS 19 8 APPENDICES 20 APPENDIX 1 PWCS ENVIRONMENTAL POLICY APPENDIX 2 KCT OPERATION DUST MANAGEMENT PLAN APPENDIX 3 KCT OPERATION NOISE MANAGEMENT PLAN APPENDIX 4 KCT OPERATION WATER MANAGEMENT PLAN APPENDIX 5 PWCS SPONTANEOUS COMBUSTION MANAGEMENT PROTOCOL Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 2 of 97 Document Title: 2011 KCT Operation Environmental Management Plan Rev2.doc Authorised: Peter Kibble

3 1 INTRODUCTION 1.1 Context Port Waratah Coal Services Limited (PWCS) owns and operates the Carrington (CCT) and Kooragang (KCT) Coal Terminals located in the Port of Newcastle, New South Wales (NSW). Each Terminal receives, assembles and loads coal from the Hunter Valley, Lower Hunter, Western Coalfields and Gunnedah Basin onto vessels for export to overseas customers. The PWCS operational process involves the receival of coal from the rail network, conveying of the coal to the stockyard where the vessel cargo is assembled. Once the cargo is available for loading the coal is reclaimed and conveyed to the wharf shiploaders for vessel loading. The activities conducted at PWCS and the location of operations has the potential to impact on various aspects of the environment and the local communities. To manage these impacts, PWCS has developed a range of mechanisms which provide a framework for environmental management. 1.2 Purpose This Operation Environmental Management Plan (OEMP) has been developed to comply with the requirements of the KCT Project Approval (06_0189 MOD 1), which is referred to in this Plan as the KCT 120 Mtpa Modified Project Approval. Conditions 7.4 and 7.5 of the KCT 120 Mtpa Modified Project Approval specify the requirement to prepare and implement an Operation Environmental Management Plan. This OEMP supersedes all previously dated versions of the KCT OEMP and includes all ongoing requirements associated with the KCT Stage 3 Development Consent 35/96. Condition 7.5 (a) to (d) details the requirement for the inclusion of the following supporting Management Plans: Dust Management Plan; Noise Management Plan; Water Management Plan, and; Spontaneous Combustion Management Protocol. The purpose of this Operation Environmental Management Plan KCT 120 Mtpa Modified Project Approval is to provide concise information relevant to the Kooragang Coal Terminal (KCT) which demonstrates the compliance of PWCS operations with the relevant Project Approvals. This OEMP contains subject specific management plans, as required by the project approval, which include an Operation Dust Management Plan, Operation Noise Management Plan, Operation Water Management Plan and Operation Spontaneous Combustion Management Protocol. The 120 Mtpa Modified Project Approval also includes a requirement to prepare and implement a Construction Environmental Management Plan (CEMP). The preparation of CEMP s at PWCS are completed, approved and implemented in relation to specific stages of development. The CEMP prepared for the KCT 120 Mtpa Modified Project is dated December Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 3 of 97 Document Title: 2011 KCT Operation Environmental Management Plan Rev2.doc Authorised: Peter Kibble

4 1.3 Background The Kooragang Coal Terminal (KCT) is located on Kooragang Island which is bounded by the south and north arms of the Hunter River. Kooragang Island has an area of approximately 2600 hectares and was progressively developed from the early 1890 s through the reclamation of land by joining Moscheto, Dempsey and Walsh Islands. In addition PWCS also operates the Carrington Coal Terminal (CCT) located at Carrington and the Fines Disposal Facility (FDF) and Delta EMD Waste Facility both located on Kooragang Island. Furthermore PWCS also proposes to construct a fourth coal Terminal on Kooragang Island termed Terminal 4 (T4). These operations and facilities are not the subject of this OEMP. Figure 1 below is an aerial photograph displaying the locations of the Kooragang and Carrington Coal Terminals, the Delta EMD Waste Facility and PWCS Fines Disposal Facility, plus surrounding industries and communities. Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 4 of 97 Document Title: 2011 KCT Operation Environmental Management Plan Rev2.doc Authorised: Peter Kibble

5 Figure 1: Locality Plan Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 5 of 97 Document Title: 2011 KCT Operation Environmental Management Plan Rev2.doc Authorised: Peter Kibble

6 2 PLANNING 2.1 Characteristics of Operations at PWCS Kooragang Coal Terminal Kooragang Island was developed as an industrial centre for Newcastle and was created by joining Dempsey, Moschate and Walsh Islands through a series of major reclamation works in the late 1890 s. During 1982 construction began on the Kooragang Coal Loader (KCL) through a consortium of shareholders with BHP as the managing shareholder. The basic Terminal was completed in 1984 with an initial capacity of 21Mtpa. In 1990 PWCS purchased all shares in KCL and adopted management of the site. Since acquisition, PWCS has incrementally increased the capacity of KCL (now known as Kooragang Coal Terminal - KCT) through several stages. PWCS obtained development consent 35/96 in 1997 which enabled the throughput of the KCT capacity to 77 Mtpa. Development of the KCT site under this approval has been undertaken in stages, with the final Stage known as the Master Plan Completion (MPC) Project expected to be completed in PWCS obtained further approval to increase the throughput capacity of KCT to 120 Mtpa via the KCT 120 Mtpa Project Approval (06_0189). This approval was modified (KCT 120 Mtpa Modified Project Approval (06_0189 MOD 1) on the 31 st May 2010 to enable PWCS to make improvements to handling and management of the approved throughput capacity and to develop a fourth rail receival, handling and ship loading stream. The supporting Environmental Assessment (EA) for the KCT 120 Mtpa Modified Project Approval was termed the Kooragang Coal Terminal Stage 4 Project Fourth Dump Station and Fourth Shiploader. Stage 4 is being developed via a series of construction projects, the first being termed Project 145 (P145) which commenced in The scope of Project 145 includes the development of the fourth rail receival stream involving the construction of the dump station 4, associated conveyors and transfer points. Also included in Project 145 is the upgrade of various infrastructure to assist in the effective handling of the approved coal throughput. Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 6 of 97 Document Title: 2011 KCT Operation Environmental Management Plan Rev2.doc Authorised: Peter Kibble

7 2.2 Approvals and Licences A number of development consents and other environmental approvals are applicable to the Kooragang Coal Terminal. Table 1 provides a summary of the development approvals and environmental licences relevant to KCT. Table 1: Summary of Approvals and Environment Protection Licences Development Approval / Environmental Licence Approval / Licence Number Approval / Anniversary Date Approval Body DA Supporting Documents Kooragang Coal Terminal - Stage 1 (15Mtpa) & 2 Approval (35Mtpa) 21 April 1982 Minister for Public Works EIS EIA report by Dept of Env & Planning Kooragang Coal Terminal - Stage 3 Expansion Approval (77 Mtpa) Kooragang Coal Terminal 120 Mtpa Project Approval Kooragang Coal Terminal 120 Mtpa Modified Project Approval Kooragang Coal Terminal Environment Protection Licence DA 35/96 25 Nov 1996 DUAP 06_ _0189 MOD 1 13 April 2007 NSW DoP Modified 31 st May 2010 NSW DoP EPL June OEH EIS KCT Stage 3 Expansion (Sept 1996) Mitchell McCotter EA KCT Proposed increase to Throughput Capacity (Nov 06) Umwelt KCT Proposed Increase to Throughput capacity Response to Submissions Parts A and B (Jan 07) - Umwelt EA Kooragang Coal Terminal Stage 4 Project Fourth Dump Station and Fourth Shiploader. (Nov 09) Umwelt Kooragang Coal Terminal Stage 4 Project Fourth Dump Station and Fourth Shiploader Response to Submissions (Feb 2010) - Umwelt Compliance registers have been developed for all site specific development consents and environmental approvals to demonstrate PWCS statutory compliance. These registers are maintained and updated at least annually by the Environmental Team. Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 7 of 97 Document Title: 2011 KCT Operation Environmental Management Plan Rev2.doc Authorised: Peter Kibble

8 3 IMPLEMENTATION AND OPERATION 3.1 Environmental Management at PWCS PWCS has developed and implements an Environmental Management System (EMS) which was accredited in accordance with the ISO 14001:2004 Standard, in June The EMS provides a framework of policies, procedures, protocols, management plans and work instructions which are used to manage the EMS, environmental commitments, processes and activities at PWCS. The basis of the PWCS EMS and overall operational environmental management is provided by the commitments made by PWCS Management in the Environmental Policy (Appendix 1). The PWCS Environmental Policy is subject to ongoing review and the version included in Appendix 1 is subject to change. The Operational Environmental Management Plans (OEMP) and Construction Environmental Management Plans (CEMP) specified by the relevant approvals are developed in accordance with and form part of the EMS. Environmental accountabilities relevant to PWCS are listed in section 5 (Table 2) of this OEMP. Additional subject specific accountabilities are also listed in the relevant management plans included as appendix documents. 3.2 Environmental Training PWCS conveys the importance of the EMS and environmental management through the effective delivery of environmental training. This training is programmed and coordinated with the PWCS Training and Development, and Human Resources teams. Examples of Environmental training at PWCS include; Induction Training; Environmental Awareness Training (EAT); Team Toolbox Presentations; Environmental Skills Training (EST) and Environmental Updates. All environmental training is undertaken and recorded in accordance with the PWCS Environmental Systems Procedure. The Environmental Training Matrix details the scheduling of environmental training packages to be delivered for a two (2) year period, and is updated and implemented by the Environmental Team. 3.3 Emergency Response and Corrective Action In general the response to any environmental emergencies shall be undertaken in accordance with PWCS Procedures PE-60-74P Emergency Response Procedure; PE-60-75P Crisis Management and Recovery Plan and the PWCS Environmental Systems Procedure. Overall accountability in the event of an environmental emergency rests with the Terminal Shift Supervisor who will be assisted, as required, by relevant PWCS personnel. The 24 hour emergency contact for KCT is the Terminal Shift Supervisor who can be contacted via internal phone, external phone or onsite radio. Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 8 of 97 Document Title: 2011 KCT Operation Environmental Management Plan Rev2.doc Authorised: Peter Kibble

9 All PWCS personnel, including contractors and visitors, are to respond to environmental emergencies, as soon as they become aware of them, in accordance with PE-60-74P to mitigate actual or potential environmental impacts. During the completion of risk assessments (including Take 5 assessments), potential emergency situations that could result in significant environmental impacts shall be identified. Emergency responses to these potential situations are to be incorporated in subsequent reviews and updates of emergency procedures. Corrective actions are identified and recorded during the investigation process conducted in response to environmental incidents in accordance with PWCS Procedures PE-60-74P Emergency Response Procedure and the PWCS Environmental Systems Procedure. These actions are recorded in the PWCS SITEsafe system where appropriate. 3.4 Environmental Risks Key environmental aspects, impacts and risks associated with PWCS operations have been identified in the Register of Environmental Aspects, Impacts and Risks. The register is reviewed and updated in accordance with the PWCS Environmental Systems Procedure. The Register details the potential environmental risks associated with each identified aspect and its associated potential impact, plus the management of the potential impact through the use of existing and/ or additional controls proposed to reduce the risk. The results of any subsequent environmental risk reviews or updates of the Register of Environmental Aspects, Impacts and Risks shall be considered in the development of EMS Objectives and Targets (where appropriate), management programs, and Environmental Management Plans. During the development of annual EMS Objectives and Targets, focus is placed on high risk areas. Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 9 of 97 Document Title: 2011 KCT Operation Environmental Management Plan Rev2.doc Authorised: Peter Kibble

10 4 PERFORMANCE MEASUREMENT 4.1 Environmental Monitoring Programs PWCS implements a system of environmental monitoring programs which are used to effectively manage the activities and potential impacts of the operations on the community and the environment. These monitoring programs include: Air quality monitoring Noise monitoring Surface water monitoring Groundwater monitoring Further information regarding the environmental monitoring programs conducted at PWCS can be obtained in the attached appendix documents which include: Operation Water Management Plan Operation Noise Management Operation Dust Management Plan 4.2 Environmental Reporting PWCS prepares and distributes/submits a range of environmental reports which detail the environmental performance of PWCS in relation to a variety of topics. These reports include: Statutory Reports: Environment Protection Licence (EPL) Annual Returns OEH Licenced Waste Facility Annual Report The National Greenhouse and Energy Reporting Scheme (NGERS) The National Pollutant Inventory (NPI) The Energy Efficiency Opportunities (EEO) Program External Reports (Non-Statutory): KCT Stage 3 Quarterly Monitoring Reports KCT Stage 3 Annual Monitoring Reports KCT Annual Combined Environmental Compliance Audit (as per 5.1c of Project Approval 06_0189 MOD1 and condition 32 of consent 35/96) KCT Annual Noise Investigation Report (as per c2.10 of 06_0189 MOD1) FDF Dam Safety Committee Report Annual Environmental Report Internal Reports (Non-Statutory): Monthly Environmental Reports PWCS Environmental Dashboards Further information regarding the various documents and topics listed above, is available from the Organisation Effectiveness Department (Environmental Team) and/ or IMS Public Folders. Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 10 of 97 Document Title: 2011 KCT Operation Environmental Management Plan Rev2.doc Authorised: Peter Kibble

11 4.3 Environmental Auditing and Review PWCS facilitates a variety of environmental audits which are used to assess the environmental performance of the operation in regards to specific topics, consent / licensing requirements or locations. These audits are undertaken at various times throughout the year and are conducted by both internal and external personnel. These audits include: EMS surveillance and certification audits KCT Combined Environmental Compliance audits Issue specific audits Location audits Document audits and reviews EMS document review (including this OEMP) is conducted in accordance with the PWCS environmental system procedure. In general EMS procedures and management plans are reviewed every two (2) years. 4.4 Compliance Tracking Program PWCS has developed a Compliance Tracking Program which assists in the management of compliance requirements and details what information is available for required audits and reviews. This program has been developed under the PWCS Environmental Management System (EMS) in accordance with the Kooragang Coal Terminal (KCT) Stage 3 Development Consent (DA 35/96) and the KCT 120Mtpa Modified Project Approval (06_0189 MOD 1). The operation and management of the Compliance Tracking System is detailed by the Environmental Work Instruction EWI 01 KCT Compliance Tracking System. 4.5 Community Enquiries Handling Procedures PWCS maintains communication mechanisms which aim to provide information to the community and interested parties whilst also providing a means of receiving enquiries. To facilitate this, PWCS maintains a website ( which provides current information about PWCS operations and also a 24 Hour Community Enquiry Line to receive enquiries. Community enquiries are handled in accordance with EWI 05 Community Enquiries. This work instruction describes the internal procedures associated with the receival of enquiries, response to the enquiry, internal and external reporting of enquiries and record keeping requirements. In summary the community enquiry handling procedure is managed by the following steps: 1. Receival of the enquiry at PWCS 2. If during office hours the enquiry is referred to the PWCS Environment Team for investigation and action as required If the enquiry is received after hours via the 24 hour Community Enquiry Line the enquirer has the option to leave a message (which is responded to the next working day) or to speak directly to the KCT Shift Supervisor who can respond Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 11 of 97 Document Title: 2011 KCT Operation Environmental Management Plan Rev2.doc Authorised: Peter Kibble

12 3. If the enquiry relates to PWCS operations an incident form is completed and relevant actions and follow ups assigned 4. The PWCS Environment Team follows up all enquiries, internally reports and records in the Environmental database 5. all actions are communicated, reported and closed out PWCS and NCIG have established a Coordinated Environmental Monitoring and Management Protocol and Procedure, which details the coordinated approach when handing community enquiries relevant to KCT and NCIG activities. This procedure involves the sharing of information between the Terminals regarding environmental enquiries that may relate to both operations. All coordinated enquiry responses are reported, communicated and recorded. Copies of EWI 05 Community Enquiries and the PWCS/NCIG Coordinated Environmental Monitoring and Management Protocol can be found on the IMS Public Folders. Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 12 of 97 Document Title: 2011 KCT Operation Environmental Management Plan Rev2.doc Authorised: Peter Kibble

13 5 ACCOUNTABILITIES Accountabilities relevant to operational environmental management displayed in Table 2 below: Table 2: Roles and Accountabilities Role Description of Action(s) Accountable For Frequency General Manager Operations Terminal Managers Operations Superintendents Terminal Shift Supervisors Maintenance Superintendents General Manager KCT Expansions Assets Manager Specialist Advisor Environment Allocate resources to ensure compliance with statutory requirements relevant to environmental management. Allocate appropriate resources to investigate and address relevant issues. Accountable for overall operational management at Terminals including environmental matters. Compliance with relevant statutory requirements Accountable for implementing operational controls related to environmental management and minimising impacts. Accountable for reporting and/ or responding to matters and incidents relating to the environment including community enquiries. Accountable for reporting and/ or responding to matters and incidents relating to the environment including after hours response to community enquiries. Accountable for the implementation of controls to manage environmental impacts. Accountable for maintaining equipment to ensure that plant and equipment does not cause unnecessary environmental impacts. Management of construction activities consistent with PWCS processes and procedures. Development and implementation of projects to address areas where improvements to environmental performance or potential risks have been identified. Accountable for the receival, investigation and resolution of community enquiries relating to the environment. Ensure that this Operation Environmental Management Plan is reviewed and updated in accordance with the PWCS EMS document control. Organise and manage adopted environmental monitoring programs. Report internally and externally as required, data and interpretations relating to environmental matters and performance. Provide environmental assistance to matters relating to the management and control of environmental impacts. As required As required Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 13 of 97 Document Title: 2011 KCT Operation Environmental Management Plan Rev2.doc Authorised: Peter Kibble

14 Role Description of Action(s) Accountable For Frequency Senior Services Engineer Specialist Advisor OH&S Specialist Training PWCS Employees & Contractors Provide specialist management and assistance in the implementation of operational environmental projects as required. Provide specialist OH&S information in regards to environmental management as required. Implement training programs as developed and scheduled to provide education regarding environmental management Follow all procedures and policies to manage impacts on the environment and community through the use of controls Report all environmental incidents and near misses Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 14 of 97 Document Title: 2011 KCT Operation Environmental Management Plan Rev2.doc Authorised: Peter Kibble

15 6 REFERENCES 6.1 PWCS Documents (EMS) STEPsafe Standards STEPsafe Standard 1.15 Environmental Management STEPsafe Standard 4.11 Incident Management PE-60-74P Emergency Response Procedure PE-60-75P Crisis Management and Recovery Plan Approvals and supporting documents Development Consent (DA 35/96) - Kooragang Coal Terminal Stage Three Expansion Kooragang Coal Terminal Stage Three Expansion - Environmental Impact Statement (Sept 1996) Modified Project Approval (06_0189 MOD1) - Kooragang Coal Terminal 120Mtpa Modified Project Approval Kooragang Coal Terminal Proposed Increase to Throughput Capacity - Environmental Assessment (Nov 2006) Kooragang Coal Terminal Stage Four Project Fourth Dump Station and Fourth Shiploader - Environmental Assessment (Nov 2009) Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 15 of 97 Document Title: 2011 KCT Operation Environmental Management Plan Rev2.doc Authorised: Peter Kibble

16 6.2 Approval Compliance Operation Environmental Management Plan Condition Condition Requirement Refer to: 3.1 Prior to the commencement of operations, the Proponent shall develop Appendix 2 and submit for the approval of the Director-General and the DECCW, an Ambient Dust Monitoring Program, to outline how the ambient dust impacts of the project will be monitored. The Program shall include, but not necessarily be limited to: a) Identification of an integrated air quality monitoring network, Appendix 2 developed in consultation with the owner/ operator of the NCIG Coal Export Terminal; b) Locations, frequencies and methods for monitoring suspended Appendix 2 particles, PM10 and deposited particulate matter; c) Provision for the use of at least four hi volume air samplers (HVAS), Appendix 2 four dust depositional gauges and a meteorological station capable of monitoring wind direction and speed in accordance with AM-1 Guide to Siting of Sampling Units (AS ); AM-2 Guide for Horizontal Measurement of Wind for Air Quality Applications (AS ); and AM-4 On-site Meteorological Monitoring Program Guidance for Regulatory Modelling Applications; d) Investigation of the use of Tapered Element Oscillating Microbalance Appendix 2 Samplers (TEOMS) as part of the integrated air quality monitoring network. Should the proponent consider TEOMS not to be required, the Proponent may seek approval from both the Director General and the DECCW to exclude this requirement. In seeking such and exclusion, the Proponents reasons for the exclusion shall be provided and be fully justified; e) Provided that the use of TEOMS is proven to be justified (as outlined in d above) the Proponent shall utilise real time monitoring data to inform environmental management decisions associated with the project; Appendix 2 f) A framework for identifying actual and potential dust impacts, and for applying proactive and reactive mitigation and management measures to address those impacts; Appendix 2 g) Provision for independent review and auditing of the Program; and Appendix 2 h) Mechanisms for updating the Program as may be required from time Appendix 2 to time. 7.4 Prior to the commencement of operation of the project, the Proponent shall prepare and submit for the approval of the Director-General an Operation Environmental Management Plan (OEMP) to detail an environmental management framework, practices and procedures to be followed during the operation of the project. The Plan shall be consistent with the Department s Guideline for the Preparation of Environmental Management Plans (DIPNR 2004), and shall include, but not necessarily be limited to: a) a description of all activities to be undertaken on the Site during operation including an indication of stages of operation, where relevant; Sections 1 & 2 b) statutory and other obligations that the Proponent is required to fulfil Section 2.2 during operation including all approvals, consultations and agreements required from authorities and other stakeholders, and key legislation and policies; c) details of how the environmental performance of the operations will be monitored, and what actions will be taken to address identified adverse environmental impacts. In particular, the following environmental performance issues shall be addressed in the Plan: i) measures to monitor and manage dust emissions; ii) measures to monitor and minimise soil erosion and the discharge of Section 4 & appendices Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 16 of 97 Document Title: 2011 KCT Operation Environmental Management Plan Rev2.doc Authorised: Peter Kibble

17 sediment and other pollutants to lands and/ or waters during operation; iii) measures to monitor and control noise emissions during operation; d) a description of the roles and responsibilities for all relevant employees involved in the operation of the project; e) the additional plans/protocol listed under condition 7.5 of this approval; and Section 5 & appendices Appendices f) complaints and enquiries handling procedures during operation. Section 4.4 The Operation Environmental Management Plan shall be made available As required for inspection by the public upon request following its approval by the Director-General. 7.5 As part of the Operation Environmental Management Plan for the project required under condition 7.4 of this approval, the Proponent shall prepare and implement the following: a) a Dust Management Plan to outline measures to minimise and manage any impacts from the operation of the project on local air quality. The Plan shall include, but not necessarily be limited to: i) identification of all major sources of dust emissions that may occur as result of the operation of the project; ii) description of the procedures to manage the dust emissions from the sources identified; iii) identification of the locations where monitoring of dust emissions is to be undertaken; iv) procedures for monitoring dust emissions from the project, in accordance with the requirements of this approval and the Environment Protection Licence for the project; v) protocols for regular maintenance of plant and equipment, to minimise the potential for fugitive dust emissions; and vi) description of procedures to be undertaken if any non-compliance is detected. b) a Noise Management Plan to outline monitoring, management procedures and measures to minimise total operational noise emissions from the project. The Plan shall also include, but not necessarily be limited to: i) identification of all relevant receivers and the applicable criteria at those receivers commensurate with the noise limits specified under this approval; ii) identification of activities that will be carried out in relation to the project and the associated noise sources; iii) assessment of project noise impacts at the relevant receivers against the noise limits specified under this approval; iv) details of all management methods and procedures that will be implemented to control individual and overall noise emissions from the Site during the project; v) details regarding the procurement process to guarantee that equipment levels meet the noise levels as provided in the documents listed in condition 1.1; vi) development of reactive and pro-active strategies for dealing promptly with any noise complaints and enquiries; vii) noise monitoring and reporting procedures; and viii) regular internal audits of compliance of all plant and equipment with acceptable design noise. c) a Water Management Plan to outline the water management system for the Site. The Plan shall include, but not necessarily be limited to: Appendix 2 Appendix 3 Appendix 4 Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 17 of 97 Document Title: 2011 KCT Operation Environmental Management Plan Rev2.doc Authorised: Peter Kibble

18 i) predicted Site water balance including the water supply system; ii) details regarding water management structures such as settling ponds and water tanks; iii) locations and design specifications for all water diversions from undisturbed runoff areas including channel design and stabilisation, sediment retention storages and other structures; iv) details on the internal drainage system including bunding, drainage channels, dewatering sumps and any pipelines; v) procedures for the management of groundwater encountered on Site and any temporary dewatering facilities; and vi) procedures to be implemented to minimise potential surface water impacts. d) a Spontaneous Combustion Management Protocol to outline measures to minimise and manage the spontaneous combustion of the coal stockpiles. The Protocol shall include, but not necessarily be limited to: i) coal stockpile management measures; ii) monitoring of potential causes of spontaneous combustion events; and iii) corrective action in the event of spontaneous combustion. Appendix 5 Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 18 of 97 Document Title: 2011 KCT Operation Environmental Management Plan Rev2.doc Authorised: Peter Kibble

19 7 GLOSSARY OF ACRONYMS CBD Central Business District CCT Carrington Coal Terminal CEMP Construction Environmental Management Plan DECCW Department of Environment, Climate Change and Water (formerly DECC- Department of Environment and Climate Change) EA Environmental Assessment EAT Environmental Awareness Training EEO Energy Efficiencies Opportunity EIS Environmental Impact Statement EMP Environmental Management Plan EMS Environmental Management System EOP Environmental Operating Procedure EPL Environment Protection Licence ESP Environmental Systems Procedure EST Environmental Skills Training EWI Environmental Work Instruction FDF Fines Disposal Facility IMS Information Management System ISO International Standards Organisation KCL Kooragang Coal Loader (former name for KCT prior to PWCS acquisition) KCT Kooragang Coal Terminal MPC Master Plan Completion Mtpa Million tonnes per annum NCC Newcastle City Council NCIG Newcastle Coal Infrastructure Group NGERS National Greenhouse and Energy Reporting Scheme NPI National Pollutant Inventory OEMP Operation Environmental Management Plan OH&S Occupational Health and Safety POEO Protection of the Environment Operations Act PWCS Port Waratah Coal Services SAE Specialist Advisor Environment Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 19 of 97 Document Title: 2011 KCT Operation Environmental Management Plan Rev2.doc Authorised: Peter Kibble

20 8 APPENDICES APPENDIX 1 ENVIRONMENTAL POLICY Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 20 of 97 Document Title: 2011 KCT Operation Environmental Management Plan Rev2.doc Authorised: Peter Kibble

21 APPENDIX 2 KCT OPERATION DUST MANAGEMENT PLAN PORT WARATAH COAL SERVICES LIMITED Kooragang Coal Terminal Operation Dust Management Plan Prepared By: Samantha Spicer Revision: 2 Date: 5 th December 2011 Document Name: 2011 KCT Dust Managment Plan.docx Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 0 of 97

22 TABLE OF CONTENTS 1.0 INTRODUCTION Context Purpose Background PLANNING Characteristics of Air Quality at KCT Potential Air Emissions Potential Air Quality Impacts Consideration of Emissions Legislative Requirements Air Quality Standards IMPLEMENTATION AND OPERATION Air Quality Management Impact Management AIR QUALITY AND DUST MONITORING PROGRAM Monitoring Program Overview Parameters Measured and Relevant Criteria Monitoring Frequency Monitoring Locations Real Time Air Monitoring Relevant Standards Monitoring Procedures, Data Recording and Reporting Review of the Program ACCOUNTABILITIES REFERENCE DOCUMENTS PWCS Documents Other References GLOSSARY OF ACRONYMS 39 Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 22 of 97

23 1 INTRODUCTION 1.1 Context Port Waratah Coal Services Limited (PWCS) owns and operates the Carrington and Kooragang Coal Terminals located in the Port of Newcastle, New South Wales (NSW). Each Terminal receives, assembles and loads coal from the Hunter Valley, Lower Hunter and Gunnedah Basin onto vessels for export to overseas customers. The nature of activities and processes undertaken at PWCS has the potential to cause air emissions such as dust particles, vehicle emissions and odours, which may impact the local community and/or the environment. Note that this KCT Operation Dust Management Plan relates only to the management of dust emissions relevant to the Kooragang Coal Terminal (KCT). 1.2 Purpose The purpose of this KCT Operation Dust Management Plan is to provide concise information relevant to operational and environmental controls relating to the management of activities and air emissions generation at the PWCS Kooragang Coal Terminal. This KCT Operation Dust Management Plan has been developed to comply with the requirements of the KCT 120 Mtpa Modified Project Approval (06_0189 MOD 1). Conditions 7.4 and 7.5 of the KCT 120 Mtpa Modified Project Approval specify the requirement to prepare and implement an Operation Environmental Management Plan, including subject specific management plans. This KCT Operation Dust Management Plan has been developed to fit within the framework of the PWCS (ISO accredited) Environmental Management System (EMS). 1.3 Background The Kooragang Coal Terminal (KCT) is located on Kooragang Island which is bounded by the north and south arms of the Hunter River. Kooragang Island has an area of approximately 2600 hectares and was created in the early 1890 s through the reclamation of land by joining Moscheto, Dempsey and Walsh Islands. In addition PWCS also operates the Carrington Coal Terminal (CCT) located at Carrington and the Fines Disposal Facility (FDF) and Delta EMD Waste Facility both located on Kooragang Island. Furthermore PWCS also proposes to construct a fourth coal Terminal on Kooragang Island termed Terminal 4 (T4). These operations and facilities are not the subject of this Management Plan. Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 23 of 97

24 2 PLANNING 2.1 Characteristics of Air Quality at KCT PWCS operations commenced at KCT in During the planning phase of the Terminal development, air quality was considered and modelled in relation to the potential impacts of the built facility. These assessments involved the comparison of the potential impacts to the ambient air quality at the time, however due to the already industrialised nature of the areas prior to the establishment of the PWCS operations, this ambient air quality would have included the air quality characteristics of the disturbed environment. Updated air quality modelling was also completed during the subsequent development and construction phases of KCT. As required, the Kooragang Coal Terminal Stage Three Expansion - Environmental Impact Statement (DA 35/96), Kooragang Coal Terminal Proposed Increase to Throughput Capacity - Environmental Assessment (Project Approval 06_0189) and Kooragang Coal Terminal Stage 4 Project - Environmental Assessment (KCT 120 Mtpa Modified Project Approval (06_0189 MOD 1)) involved the assessment of air quality modelling and the interpretation of any potential impacts the expanded KCT development may have on the community and environment. Further information regarding previous ambient air quality and dispersion characteristics can be obtained from these documents. The air quality monitoring programs relevant to KCT have been in place for several years and are designed to monitor the ambient air quality at PWCS facilities and surrounding areas. In general the air quality monitoring system involves the monthly sampling of Dust Deposition Gauges (DDG) installed at various strategic locations and the use of automatic monitors such as High Volume Air Samplers (HVAS) to assess specific dust types. These programs have been established and are implemented to ensure compliance with the specified requirements of the relevant development consents and OEH Environment Protection Licences (EPL s). PWCS is also undertaking the implementation of Real-Time Dust Monitors (RTDM) for operational purposes and to improve the site management of air quality and dust at KCT. The facilitation of the monitoring, maintenance and collection of samples is undertaken by an Environmental Contractor and is completed in accordance with the relevant environmental monitoring contract, Australian Standards and the PWCS Environmental System Procedure. All records of air quality and dust monitoring are kept under restricted access in PWCS IMS and maintained by the Environment Team. Refer to Figures 2 and 3 for air quality monitoring network drawings relevant to KCT. Meteorological characteristics relevant to the Terminals are monitored and recorded by automatic weather stations. These stations are linked to the PWCS internal communications network, CITECT, and enable the viewing of weather conditions at any time and are also used for the automatic operation of the stockpile sprays for the purposes of dust suppression. Additional to the internal weather stations, PWCS also operates a weather station which is maintained by an external party at KCT. This station was installed to comply with requirements of the KCT EPL 1552 and is operated as per the KCT 120 Mtpa Modified Project Approval (06_0189 MOD 1) Conditions 2.8 and 3.1. Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 24 of 97

25 2.2 Potential Air Emissions The main air pollutant of concern relevant to PWCS activities are fugitive particulate emissions (dust) generated during the handling and storage of coal, emissions associated with mechanical movements or unsealed surfaces. Other air quality emissions at PWCS involve vehicle emissions which include particulates, greenhouse and other gases. The consumption of fuels onsite generally involves diesel or unleaded petrol utilised by light and heavy vehicles or through the use of generators. Note: The operation of the stackers, reclaimers, conveyors and shiploaders at PWCS is through the consumption of electricity supplied by the commercial network. Any air quality emissions associated with the consumption of electricity is not included in the scope of this Management Plan. PWCS implements a Preventative Maintenance (PM) System which effectively manages the maintenance and servicing of all vehicles and equipment onsite which minimises the potential fugitive emissions from unmaintained items. The use of substances such as paints, glues and solvents also have the potential to produce odour impacts however the typically infrequent and isolated uses of these chemicals generally reduces the significance of impacts from odour. 2.3 Potential Air Quality Impacts PWCS operations at KCT are situated in close proximity to local communities which can pose a risk of impacts from air emissions, in particular dust generated onsite. Therefore the management of air emissions at PWCS focuses largely on dust generation. PWCS has developed and actively implements a series of dust management controls as detailed by the PWCS Air Quality and Dust Management Plan. These include controls such as automated stockpile sprays, enclosed conveyors and transfer points, belt cleaners, coal spillage clean up activities and reduced drop heights e.g. during stacking. The communities potentially impacted by dust generated by PWCS at KCT typically include Fern Bay, Stockton and Mayfield. PWCS operates a community enquiry contact service which includes a 24 hour phone line and address. All community enquiries are recorded and responded to in accordance with Environmental Work Instruction EWI 05 Community Enquiries. The majority of community enquiries received by PWCS are in relation to dust or noise issues and are received predominantly from the communities listed above. The total number of enquiries received in relation to PWCS activities over an annual period is generally low. PWCS actively engages with the local communities to discuss matters including air quality and dust, as well as other matters relating to PWCS operations. These community meetings provide members of the public the ability to attend and discuss any areas of concern regarding PWCS and associated operations. They also provide PWCS the opportunity to present information including projects and improvements being made to minimise impacts on the community and environment. The generation of greenhouse gases from fuel consumption onsite is also a focus at PWCS. PWCS monitors the volume of fuels consumed and considers areas for improvement in vehicle usage and reducing fuel consumption. PWCS reports annually in accordance with the National Pollutant Inventory (NPI) Report and the National Greenhouse and Energy Reporting (NGER) Act. Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 25 of 97

26 2.4 Consideration of Emissions Air quality and dust management is a key factor assessed during the planning and scoping stages of any PWCS developments or expansions. Environmental assessments are prepared as required and submitted to the relevant authority when seeking approval under the Environmental Planning & Assessment Act In this regard PWCS addresses the requirements of approval bodies, government authorities and relevant stakeholders, to ensure that all potential environmental factors (including air quality) are considered during the preparation and planning of new developments and expansions. To manage air quality and associated impacts, PWCS has in the past developed environmental management plans relevant to the individual Terminal locations and as required by consent, Rio Tinto and EMS requirements. To ensure consistency with this documentation PWCS has refined the EMS framework to facilitate a single overarching plan for air quality management for all locations at PWCS, of which the KCT Operation Environmental Management Plan (OEMP) document forms a sub set. PWCS has developed and implements an Environmental Management System (EMS) which is accredited under the ISO14001:2004 International Standard. A requirement of the EMS is the consideration, assessment and documentation of all environmental aspects, impacts and risks associated with the operation including those related to air quality. In this regard PWCS has developed the Register of Environmental Aspects, Impacts and Risks in accordance with the PWCS Environmental Systems Procedure. This Register is reviewed annually and lists all areas of potential environmental risk, provides a rating of significance, controls to be implemented and the status of the residual risk. 2.5 Legislative Requirements A detailed assessment into the air quality impact of KCT was undertaken as part of the Kooragang Coal Terminal Proposed Increase to Throughput Capacity Environmental Assessment (06_0189) and Kooragang Coal Terminal Stage 4 Project - Environmental Assessment (KCT 120 Mtpa Modified Project Approval (06_0189 MOD 1)). The air quality impact assessments concluded that air quality impacts were at acceptable levels and that air quality criteria would not be exceeded at sensitive receptors due to KCT operating at 120Mtpa. PWCS maintains in its environmental monitoring database long term records of air quality monitoring data for KCT. The database contains the following continuous information; Deposited Dust Data March 1998 to present High Volume Air Sampler Data (PM10) October 1999 to present High Volume Air Sampler Data (TSP) October 1999 to present Any non-conformities that arise from the data are reported to the appropriate authorities and handled internally in accordance with the PWCS Environmental Systems Procedure. 2.6 Air Quality Standards PWCS recognises relevant criteria, standards, guidelines and regulations specified by Government authorities and organisations to manage air quality, where available. The interpretation of air quality data at PWCS utilises the criteria specified by the KCT Stage 3 Expansion Development Consent (DA 35/96) Condition 6 which are also adopted in the PWCS Air Quality and Dust Management Plan. The relevant criteria listed are also Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 26 of 97

27 consistent with the Air Quality National Environmental Protection Measure (NEPM) established under the National Environment Protection Council Act 1994 which are published by the Environment Protection and Heritage Council. 3 IMPLEMENTATION AND OPERATION 3.1 Air Quality Management PWCS actively manages air quality through the implementation of a series of proactive, automated and reactive controls. These controls have been devised over many years and are implemented to respond to the requirements of specific circumstances, conditions and applications. The PWCS STEPsafe Standard 1.15 Environmental Management outlines the operational controls used to suppress dust and minimise emissions. These controls include but are not limited to: Automated stockpile sprays Dust suppression sprays at transfer points Sealing of traffic areas Landscaping of open areas where possible Closure of external doors and hatches Reduced stacking and shiploading heights PWCS is also currently undertaking an investigation to identify where improvements can be made regarding the management of fugitive dust emissions. Specific areas that this investigation has focused on to date include: The installation of real time monitoring devices at KCT for operational purposes; Dust particulate size assessments; Dust Extinction Moisture (DEM) assessments of coal types; Characterisation of coal types and their inherent dustiness; Emission sources; Meteorological conditions including weather forecasting; Validation of existing automated systems; and Assessment of effectiveness of stockpile sprays. 3.2 Impact Management The potential offsite impacts associated with dust emissions are managed by PWCS through the implementation of the dust control systems (e.g. point source controls including stockpile and conveyors sprays), management of disturbed areas, infrastructure design (e.g. enclosed transfer points etc) and monitoring result assessment. The assessment of monitoring program results is performed by the Environment and Operations Teams via internal monthly reports to assess if any areas may be improved or to identify any non compliances during the month. Actions are then implemented to address any areas of concern or potential future non compliances. Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 27 of 97

28 Non compliances related to dust emissions relevant to Environment Protection Licence (EPL) criteria are recorded, reported internally and included on relevant Annual Returns submitted to the Office of Environment and Heritage (OEH). PWCS regularly communicates the requirements for dust management at KCT via a variety of means (see the PWCS Environmental Systems Procedure). This ongoing education of the PWCS workforce and contractors has effectively instilled the importance of dust management onsite and has reduced the potential for PWCS to incur non compliances. Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 28 of 97

29 4 AIR QUALITY AND DUST MONITORING PROGRAM 4.1 Monitoring Program Overview PWCS maintains an Air Quality and Dust Monitoring Program (Ambient Dust Monitoring Program) at all PWCS facilities including KCT to assess ambient air quality characteristics of the sites and surrounding areas. The Program involves the use of Depositional Dust Gauges (DDG), High Volume Air Samplers (HVAS) and in some locations Real Time Dust Monitors (RTDM). Real Time Dust Monitors are expected to be implemented at KCT for operational purposes only. A requirement of Condition 3.1 of the KCT 120 Mtpa Modified Project Approval (06_0189 MOD 1) involves the identification of an integrated air quality monitoring network with the neighbouring NCIG Coal Export Terminal. Through consultation with NCIG, a series of NCIG and PWCS Deposited Dust Gauges and High Volume Air Samplers have been incorporated into an integrated network to assist with the monitoring and management of cumulative impacts on air quality and dust generation. Table 1 summarises the air quality and dust monitoring programs for KCT, outlining the purpose of monitors, the air quality parameters monitored and the frequency of monitoring. Table 2 provides a summary of the PWCS/NCIG integrated air quality monitoring program. Table 1: Air Quality and Dust Monitoring Program Kooragang Coal Terminal Purpose Monitor Identification Depositional Dust Gauges Compliance Monitoring Environmental Management DDG-C1, K1 & K8 DDG-K3, K4, K5, K6, K7, K9, K10, K11 & K12 High Volume Air Samplers Environmental Management Compliance Monitoring Compliance Monitoring Compliance Monitoring HVAS-K1 HVAS-K2 HVAS-K3 HVAS-K4 Real-Time Dust Monitors Environmental Management Meteorological Station Compliance Monitoring Not installed at KCT Weather Station Parameter Monitored Dust Deposition g/m²/month Dust Deposition g/m²/month TSP (Particulates <50μm) μg/m³ TSP (Particulates <50μm) μg/m³ PM10 (Particulates <10μm) μg/m³ TSP (Particulates <50μm) μg/m³ Wind Speed & Direction, Temperature, Relative Humidity, Solar Radiation, Sigma Theta Frequency / Timing of Monitoring 30 ± 2 Days Relevant Criteria 4.0g/m²/month (averaged annually) 30 ± 2 Days N/A Every 6 days Every 6 days (OEH Schedule) Every 6 days (OEH Schedule) During Westerly Winds with >2min duration and a cumulative run-time of >4 hours every 6 days Continuous N/A 260μg/m³ - 24hr max 90μg/m³ - annual average 50μg/m³ - annual average 260μg/m³ - 24hr max 90μg/m³ - annual average Monitor Wind Speed and Direction for 80% of each Quarter Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 29 of 97

30 Table 2: Integrated Air Quality Monitoring Program NCIG and PWCS Purpose Monitor Identification Depositional Dust Gauges PWCS Compliance Monitoring NCIG Compliance Monitoring DDG-C1, K1 & K8 DG3, DG4, DG5, & DG6 High Volume Air Samplers PWCS Compliance Monitoring PWCS Compliance Monitoring PWCS Compliance Monitoring NCIG Compliance Monitoring NCIG Compliance Monitoring HVAS-C1 & K2 HVAS-K3 HVAS-K4 HVAS-1A & 2A HVAS-1B & 2B Parameter Monitored Dust Deposition g/m²/month Dust Deposition g/m²/month TSP (Particulates <50μm) μg/m³ PM10 (Particulates <10μm) μg/m³ TSP (Particulates <50μm) μg/m³ TSP (Particulates <50μm) μg/m³ PM10 (Particulates <10μm) μg/m³ Frequency / Timing of Monitoring 30 ± 2 Days 30 ± 2 Days Every 6 days (OEH Schedule) Every 6 days (OEH Schedule) During Westerly Winds with >2min duration and a cumulative run-time of >4 hours every 6 days Every 6 days (OEH Schedule) Every 6 days (OEH Schedule) Relevant Criteria 4.0g/m²/month (averaged annually) 4.0g/m²/month (averaged annually) 260μg/m³ - 24hr max 90μg/m³ - annual average 50μg/m³ - annual average 260μg/m³ - 24hr max 90μg/m³ - annual average 260μg/m³ - 24hr max 90μg/m³ - annual average 50μg/m³ - annual average The NCIG/PWCS Integrated air quality monitoring network utilises several PWCS monitoring points referred to in Tables 1 & 2 and NCIG monitoring points 4.2 Parameters Measured and Relevant Criteria The following parameters are used as a measure of air quality and dust levels at PWCS; Dust Deposition Ash, Combustible Matter, Total Insoluble Matter Total Suspended Particulates (TSP) Suspended Particulates <10μm (PM10). Various Meteorological Parameters Various pieces of equipment are used to measure each of these parameters, namely; Dust Deposition Gauges High Volume Air Samplers Directional High Volume Air Sampler Real Time Dust Monitors (Beta Attenuation) On-site Meteorological Stations Table 1 and 2 provides the relevant criteria for each of the parameters measured at PWCS, and in the Integrated Air Quality Monitoring Network. 4.3 Monitoring Frequency Table 1 provides the monitoring frequencies for each of the parameters measured at KCT monitoring locations. Table 2 provides the monitoring frequency for each parameter measured in the Integrated Air Quality Monitoring Program. Monitoring of NCIG air quality and dust monitors included as part of the integrated air quality monitoring network shall be in accordance with relevant NCIG procedures. Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 30 of 97

31 4.4 Monitoring Locations Monitoring locations at KCT have been selected taking into consideration local meteorological conditions, surrounding land uses and local communities. There are several locations monitoring residential air quality and dust, such as Mayfield East, Fern Bay and Stockton, with other locations monitoring industrial air quality and dust. Other monitoring locations may be included from time to time for the purposes of air quality and dust investigations. Generally these are short term monitoring locations for a specific purpose, and have not been included as part of this plan. PWCS is required to develop an integrated air quality monitoring network in consultation with the Newcastle Coal Infrastructure Group (NCIG) as per condition 3.1 (a) of the KCT 120 Mtpa Modified Project Approval (06_0189 MOD 1). Through several Newcastle Coal Terminal Environmental Coordination Meetings, an integrated PWCS and NCIG air quality monitoring network has been agreed and is being implemented. The integrated monitoring network incorporates 8 monitoring sites over Newcastle incorporating Stockton, Fern Bay, Mayfield, Mayfield West, and Sandgate. The distribution of sites represents the suburbs that are most likely to have air quality and dust impacts (if any). Tables 3 and 4 provide a brief description to the locations of air quality and dust monitoring locations at KCT and the integrated air quality monitoring network. Figures 2 and 3 display aerial photographs with the locations of all monitors displayed. Table 3: Description of KCT Air Quality and Dust Monitoring Locations Location Identification Location Description Deposited Dust Gauges DDG-K1 Stockton Hospital, North Stockton DDG-K1A Stockton Hospital, North Stockton DDG-K2 Site Decommissioned DDG-K3 North West Corner of Fines Disposal Facility DDG-K4 Weather Station Compound near KCT Administration Building DDG-K5 South West Corner of Fines Disposal Facility DDG-K6 KCT Rail Loop near Settling Lagoon 1 DDG-K7 Cormorant Road, east of KCT DDG-K8 PWCS Monitoring Compound - Popplewell St, Fern Bay DDG-K9 Cormorant Road, near entrance to NCIG Wharf Facilities DDG-K10 Greenleaf Road, near HiFert DDG-K11 K4 Lagoon Area, KCT Wharf DDG-K12 KCT Rail Loop, North East of Buffer Ponds High Volume Air Samplers HVAS-K1 Weather Station Compound near KCT Administration Building HVAS-K2 PWCS Monitoring Compound - Popplewell St, Fern Bay HVAS-K3 PWCS Monitoring Compound - Popplewell St, Fern Bay HVAS-K4 PWCS Monitoring Compound - Popplewell St, Fern Bay Weather Station KCT AWS Weather Station Compound near KCT Administration Building Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 31 of 97

32 Table 4: Description of NCIG/PWCS Integrated Air Quality Monitoring Network Location Identification NCIG or PWCS Monitor Location Description Deposited Dust Gauges DDG-C1 PWCS Prawner s Club Fullerton St, Stockton DDG-K1 PWCS Stockton Hospital, North Stockton DDG-K3 PWCS North West Corner of Fines Disposal Facility DDG-K6 PWCS KCT Rail Loop near Settling Lagoon 1 DDG-K8 PWCS PWCS Monitoring Compound - Popplewell St, Fern Bay DG3 NCIG NCIG Rail Loop Spur DG4 NCIG Mayfield Sport & Rec Club DG5 NCIG Stevenson Park, Mayfield West DG6 NCIG Kooragang Island Rail Bridge, Sandgate High Volume Air Samplers HVAS-C1 PWCS Prawner s Club Fullerton St, Stockton HVAS-K2 PWCS PWCS Monitoring Compound - Popplewell St, Fern Bay HVAS-K3 PWCS PWCS Monitoring Compound - Popplewell St, Fern Bay HVAS-K4 PWCS PWCS Monitoring Compound - Popplewell St, Fern Bay HVAS-1A NCIG Steel River Industrial Estate, Mayfield West HVAS-1B NCIG Steel River Industrial Estate, Mayfield West HVAS-2A NCIG Mayfield Sport & Rec Club HVAS2B NCIG Mayfield Sport & Rec Club 4.5 Real Time Air Monitoring PWCS has an obligation as per condition 3.1 of the KCT 120 Mtpa Modified Project Approval (06_0189 MOD1) to investigate the implementation of real time air quality monitors, known as TEOMS, at KCT. PWCS has undertaken this research and has determined that TEOMS will not assist in the operational management of dust emissions. Accordingly PWCS has determined that TEOMS are not required to be installed. PWCS has corresponded to the Department of Planning and Infrastructure and the Office of Environment and Heritage (formerly DECCW) and advised of the outcome of PWCS research. Notwithstanding the above, PWCS is committed to continuously improving dust management from its operations and is installing alternate real time dust monitors, located within site boundaries, for operational purposes. 4.6 Relevant Standards The Program has been developed in accordance with the following Approved Methods and Australian Standards as listed by section 6.2. The Program also incorporates other PWCS requirements such as OEH issued Environment Protection Licences, Development Consents, Project Approvals, Environmental Assessment and Rio Tinto Environmental Standards. Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 32 of 97

33 Figure 2: Kooragang Coal Terminal Air Quality and Dust Monitoring Location Plan Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 33 of 97

34 Figure 3: NCIG/PWCS Integrated Air Quality Monitoring Network Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 34 of 97

35 4.7 Monitoring Procedures, Data Recording and Reporting PWCS employs an Environmental Monitoring Contractor who ensures that all monitoring is conducted in accordance with the Air Quality and Dust Management Plan and the PWCS Environmental Systems Procedure, and also in compliance with relevant Australian Standards, statutory or regulatory guidelines. All analysis of air quality and dust samples is undertaken by an independent NATA accredited laboratory. Data obtained through the implementation of the Program is received by PWCS via monthly reports from the Environmental Monitoring Contractor. Raw data obtained from these reports is then recorded by the Environmental Team in the Environmental Monitoring Database on IMS. Copies of the monthly reports are kept in hard copy in the Environmental Filing System with an electronic copy stored on IMS. All air quality data collected by PWCS is considered in relation to the observation of any trends that may indicate an increasing of dust emissions. Any areas that indicate elevated results are internally reported, investigated and rectified as appropriate. The introduction of the real- time dust monitors enhances the ability for PWCS to actively manage air quality concerns and sources. Data from PWCS managed monitors relevant to the Integrated Air Quality Monitoring Network shall be collected from the monthly environmental reports from the Environmental Monitoring Contractor. Data from NCIG managed monitors shall be shared via from the NCIG environmental representative, or when otherwise requested. PWCS shall share all relevant data with the NCIG representative on a monthly basis, or when otherwise requested by NCIG. All data for the Integrated Air Quality Monitoring Network shall be compiled by the Environment Team into the Environmental Monitoring Database on IMS. Relevant air quality and dust data is reported periodically to external authorities as required and is also reported to internal operational and management stakeholders. 4.8 Review of the Program The Program shall be reviewed (as per Condition 3.1(h)) every two years during the review of this document or more frequently when operational or environmental conditions significantly change. As per Condition 3.1(g) of the KCT 120 Mtpa Modified Project Approval 06_0189 (MOD1), the Plan shall be made available for independent review and auditing every two years in alignment with the KCT Annual Combined Environmental Compliance Audit. Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 35 of 97

36 5 ACCOUNTABILITIES Accountabilities relevant to the management of air quality at PWCS are as follows. Role Description of Accountable Action(s) Frequency General Manager Operations Terminal Managers Operations Superintendents Operations Shift Supervisors Maintenance Superintendents General Manager KCT Expansions Assets Manager Specialist Advisor Environment Senior Services Engineer Allocate resources to ensure compliance with statutory requirements relevant to air quality. Allocate appropriate resources to investigate and address air quality issues. Accountable for overall air quality management at Terminals. Compliance with relevant statutory requirements Accountable for implementing air quality management. Accountable for reporting and/ or responding to matters and incidents relating to dust including community enquiries Accountable for reporting and/ or responding to matters and incidents relating to air quality including after hours response to community enquiries. Accountable for the implementation of controls to manage dust such as suppression activities, closure of external doors and management of materials which may cause dust Accountable for maintaining equipment to ensure that machinery does not cause unnecessary air emissions including dust and odour. Purchase and installation of equipment relevant to the Expansion Project which does not cause excessive air emissions. Management of construction activities to minimise air emissions including odour and dust emissions. Development and implementation of projects to address areas where excessive emissions to air have been identified. Accountable for the receival, investigation and resolution of community enquiries relating to air quality. Ensure that this Air Quality and Dust Management Plan is reviewed and updated in accordance with the PWCS EMS document control Organise and manage adopted air quality monitoring programs. Report internally and externally as required, data and interpretations relating to air quality matters and overall performance. Provide environmental assistance to matters relating to the management and control of air quality. Ensure that this Air Quality and Dust Management Plan is independently reviewed and audited at least every two years. Provide supervision of Environmental Monitoring Contractor As Required As Required As Required Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 36 of 97

37 Role Description of Accountable Action(s) Frequency Specialist Advisor OH&S Specialist Advisor Process Control Specialist Advisor Training and Development PWCS Employees & Contractors Provide specialist OH&S information in regards to air quality management Management and maintenance of the Citect system Integration and maintenance of the stockpile dust sprays, weather station and associated water management system Implement training programs as developed and scheduled to provide education regarding air quality management Follow all procedures and policies to manage air quality and protect the surrounding community from excessive dust emissions Report all environmental incidents and near misses Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 37 of 97

38 6 REFERENCE DOCUMENTS 6.1 PWCS Documents Environmental Management System (EMS) Environmental System Procedure (ESP) Environmental Management Plans STEPsafe Standards STEPsafe Standard 1.15 Environmental Management Environmental Monitoring Contract NCIG/PWCS Coordinated Environmental Monitoring and Management Procedure Approvals and supporting documents Development Consent (DA 35/96) - Kooragang Coal Terminal Stage Three Expansion Kooragang Coal Terminal Stage Three Expansion - Environmental Impact Statement KCT 120Mtpa Modified Project Approval (06_0189 MOD 1) Kooragang Coal Terminal Proposed Increase to Throughput Capacity - Environmental Assessment Kooragang Coal Terminal Stage 4 Project - Environmental Assessment 6.2 Other References Government Guidelines Approved Methods for the Sampling and Analysis of Air Pollutants in NSW. Australian Standards AS/NZS :2003 Methods for sampling and analysis of ambient air - Determination of Total suspended particulates (TSP) High volume air sampler gravimetric method. AS/NZS :2003 Methods for sampling and analysis of ambient air Determination of suspended particulate matter PM 10 high volume sampler with size selective inlet-gravimetric method. AS/NZS :2003 Methods for sampling and analysis of ambient air - Determination of particulate matter Deposited matter Gravimetric method AS/NZS :2008/Amdt 1:2009 Methods for sampling and analysis of ambient air Determination of suspended particulate matter PM10 beta attenuation monitors. Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 38 of 97

39 7 GLOSSARY OF ACRONYMS AS/NZS Australian Standard/New Zealand Standard AWS Automatic Weather Station CCT Carrington Coal Terminal CITECT the PWCS internal communications network DDG Deposited Dust Gauge, or Depositional Dust Gauge DEM Dust Extinction Moisture DLWC NSW Department of Land and Water Conservation (former NSW government agency) EA Environmental Assessment EEO Energy Efficiency Opportunities EIS Environmental Impact Statement EMS Environmental Management System EPA Environment Protection Authority (Division of OEH) EPL Environment Protection Licence ESP Environmental Systems Procedure FDF Fines Disposal Facility GHG Greenhouse Gas HVAS High Volume Air Sampler IMS Information Management System ISO International Standards Organisation KCT Kooragang Coal Terminal Mtpa Million Tonnes per Annum NATA National Association of Testing Authorities NCIG Newcastle Coal Infrastructure Group NEPM National Environment Protection Measure NGER National Greenhouse and Energy Reporting NGERS National Greenhouse and Energy Reporting Scheme NPI National Pollutant Inventory NPWS National Parks and Wildlife Service (Division of OEH) OEH Office of Environment and Heritage OH&S Occupational Health and Safety PM10 Suspended Particulates (<10μm in diameter) PWCS Port Waratah Coal Services RTDM Real Time Dust Monitor TEOMS Tapered Element Oscillating Microbalance Samplers TSP Total Suspended Particulates (<50μm in diameter) Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 39 of 97

40 APPENDIX 3 KCT OPERATION NOISE MANAGEMENT PLAN PORT WARATAH COAL SERVICES LIMITED Operation Noise Management Plan Prepared By: SLR Consulting Australia Pty Ltd ABN Lincoln Street Lane Cove NSW 2066 Australia (PO Box 176 Lane Cove NSW 1595 Australia) Telephone Facsimile sydney@slrconsulting.com Web Revision: 1 Date: 17 February 2012 Doc Id No.: KCT Noise Management Plan.doc DOCUMENT CONTROL Reference Status Date Prepared Checked Authorised R2 Revision 0 24 March 2011 Glenn Thomas Nathan Archer Glenn Thomas PWCS Noise Management Plan Approved Document April 2011 Sam Spicer Nick Godfrey-Smith Mark Golding R2 Revision 1 17 February 2012 Glenn Thomas Nathan Archer Glenn Thomas 2012 KCT Noise Management Plan Approved Revision March 2012 Sam Spicer Nick Godfrey-Smith Peter Kibble Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 40 of 97 Document ID: 2011 KCT Operation Environmental Management Plan Rev2.doc Authorised: Peter Kibble

41 TABLE OF CONTENTS 1 INTRODUCTION Requirements Objectives PWCS Roles and Responsibilities 44 2 RECEIVERS AREAS AND NOISE CRITERIA Receiver Areas 44 3 PROJECT ACTIVITIES AND NOISE SOURCES Project Activities Noise Sources 48 4 PROJECT NOISE IMPACTS Residential Intrusive Noise Residential Maximum Noise Residential Noise Amenity Non-residential Noise Amenity 52 5 MANAGEMENT PROCEDURES AND NOISE CONTROL 52 6 PROCUREMENT PROCESS AND EQUIPMENT LEVELS 53 7 COMMUNITY CONCERNS AND NOISE ENQUIRIES Pro-active Strategies Reactive Strategies 55 8 NOISE MONITORING AND REPORTING PROCUDURES Acoustic Instrumentation Weather Monitoring Station KCT Plant Operating Log Off-site Residential Operator-Attended Noise Surveys Off-site Non-Residential Operator-Attended Noise Surveys 57 9 NOISE AUDITS AND PERFORMANCE REVIEW Plant and Equipment Noise Audits KCT Environmental Noise Modelling Reporting Corrective Action CLOSURE 59 Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 41 of 97

42 TABLE OF CONTENTS TABLES Table 1 PWCS KCT Noise Management Accountabilities 44 Table 2 Nearest Potentially Affected Receiver Areas and Assessment Locations 46 Table 3 Modified KCT 120 Mtpa PA - Noise Limits & Meteorological Constraints (dba re 20 µpa) 47 Table 4 Modified KCT 120 Mtpa EA - Non-residential Noise Criteria (dba re 20 µpa)) 47 Table 5 KCT Stage 1, 2, 3 and 4 Plant and Equipment LAeq Sound Power Levels (dba re 10W) 49 Table 6 Comparative EIS 1996, Consented, Approved and Proposed Operations 50 Table 7 Description of Continuous Noise Improvement Program 53 Table 8 KCT s Noise Reduction Measures, Specification and Procurement Process 54 Table 9 Meteorological Measurement Parameters 56 Table 10 Off-site Residential Property Noise Monitoring Locations 57 Table 11 Industrial/Commercial Premise Noise Monitoring Locations 57 FIGURES Figure 1 Kooragang Coal Terminal Land Use Aerial Plan 45 Figure 2 KCT Operating Intrusive Noise Levels - Fern Bay West (FW1) 51 Figure 3 KCT Operating Intrusive Noise Levels - Stockton West (SW1) 51 Figure 4 Stage 4 Project Continuous Noise Improvement Program 52 APPENDICES Appendix A Modified Kooragang Coal Terminal 120 Mtpa Project Approval Operating Noise related Conditions Appendix B1 KCT 120 Mtpa Project Schematic Equipment Layout Appendix B2 KCT 120 Mtpa Modified Project Schematic Equipment Layout Appendix C1 Predicted Daytime and Evening LAeq(15minute) Intrusive Noise Levels Appendix C2 Predicted Night-time LAeq(15minute) Intrusive Noise Levels Appendix C3 Predicted Night-time maximum Noise Levels Appendix C4 Predicted Night-time LAeq(9hour) Noise Amenity Levels Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 42 of 97

43 1 INTRODUCTION 1.1 Requirements Port Waratah Coal Services Ltd (PWCS) obtained approval under Part 3A of the Environmental Planning and Assessment Act 1979 (EP&A Act) to construct and operate the Kooragang Coal Terminal (KCT) Stages 1, 2 and 3 with an increased throughput capacity of 120 million tonnes per annum (Mtpa) (as described by the Environmental Assessment dated November 2006 prepared by Umwelt Environmental Consultants) as per the Project Approval (PA 06_0189) dated 13 April 2007 (referred to as the KCT 120 Mtpa PA). Subsequently, PWCS obtained approval under Section 75W of the EP&A Act to construct and operate the Stage 4 Project (as described by the Environmental Assessment dated February 2010 prepared by Umwelt Environmental Consultants (i.e. Stage 4 EA Scope)) as per the Modified Project Approval (06_0189 MOD 1) dated 31 May 2010 (referred to as the KCT 120 Mtpa Modified PA). The Modification improves KCT s coal handling efficiency and sprint capacity while maintaining a nominal throughput capacity of 120 Mtpa. In accordance with the KCT 120 Mtpa Modified PA, Schedule 2 Condition 7.5b, this Operating Noise Management Plan (ONMP) forms part of the Operation Environmental Management Plan (OEMP). In addition, the ONMP has been prepared where appropriate in accordance with the requirements of the KCT 120 Mtpa Modified PA Conditions 1.1, 2.8, 2.9, 2.10, 2.11, 3.4, 3.5 and 7.4 and as guided by Preparation of Environmental Management Plans (DIPNR 2004). This ONMP supersedes the KCT Stage 3 Expansion Operational Noise Monitoring Program (reference Heggies Report 7283-R5 dated 12 January 1999) with the ONMP effective upon KCT exceeding a nominal throughput capacity of 77 Mtpa. Similarly, in accordance with the KCT 120 Mtpa Modified PA, Schedule 2 Condition 7.3b, PWCS has prepared a Construction Noise Management Plan (CNMP dated June 2010) as part of the Construction Environmental Management Plan (CEMP). 1.2 Objectives The ONMP objectives, as defined by Conditions 2.9 and 7.5b, are to outline monitoring management procedures and measures to minimise total operational noise emissions from KCT. The ONMP shall also include, but not necessarily be limited to: i) identification of all relevant receivers and the applicable criteria at those receivers commensurate with the noise limits specified under this approval (refer Section 2); ii) iii) iv) identification of activities that will be carried out in relation to the project and the associated noise sources (refer Section 3); assessment of project noise impacts at the relevant receivers against the noise limits specified under this approval (refer Section 4.3); details of all management methods and procedures that will be implemented to control individual and overall noise emissions from the site during the project (refer Section 4.3); v) details regarding the procurement process to guarantee that equipment levels meet the noise levels as provided in the documents listed in condition 1.1 (refer Section 6); vi) development of reactive and pro-active strategies for dealing promptly with any noise complaints and enquiries (refer Section 7); vii) noise monitoring (including direct noise measurements and supplementary noise modelling) and reporting procedures (refer Section 8); and regular internal audits of compliance of all plant and equipment with acceptable design noise (refer Section 9). Appendix A presents the KCT 120 Mtpa Modified PA noise Conditions 1.1, 2.8, 2.9, 2.10, 2.11, 3.4, 3.5, 7.4 and 7.5b. Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 43 of 97

44 1.3 PWCS Roles and Responsibilities Accountabilities relevant to the management of noise at PWCS s KCT are summarised in Table 1. Table 1 Role PWCS KCT Noise Management Accountabilities Description of Action(s) Accountable For General Manager Allocate resources to ensure compliance with statutory requirements relevant to noise Allocate appropriate resources to investigate and address noise issues Terminal Manager Accountable for overall noise management at KCT Compliance with relevant statutory requirements Expansion Project Manager Purchase and installation of equipment relevant to the Expansion Project which is of low noise emission type Monitoring of noise emissions relevant to the Expansion Project and associated approval requirements Specialist Advisor Environment Accountable for the receival, investigation and resolution of community enquiries relating to noise Ensure that this Operating Noise Management Plan is reviewed and updated in accordance with the PWCS Environmental Managements System (EMS) document control Organise and manage adopted noise monitoring programs Report internally and externally as required, data and interpretations relating to noise matters and overall performance Provide environmental assistance to matters relating to the management and control of noise PWCS Employees & Contractors Follow all procedures and policies to manage noise and protect the surrounding community from KCT noise emissions Report all environmental incidents and near misses 2 RECEIVERS AREAS AND NOISE CRITERIA 2.1 Receiver Areas The Land Use Aerial Plan (Figure 1) identifies the nearest potentially affected residential, commercial and industrial receiver areas beyond the KCT site boundary. Selected representative assessment locations for each receiver area are presented in Table 2. Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 44 of 97

45 Figure 1 Kooragang Coal Terminal Land Use Aerial Plan Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 45 of 97 Document ID: 2011 KCT Operation Environmental Management Plan Rev2.doc Authorised: Peter Kibble

46 Table 2 Receiver Area Nearest Potentially Affected Receiver Areas and Assessment Locations ID and Location INP Noise Amenity Zone 1 LEP Zone Fern Bay North Fern Bay West Fern Bay East FN1 Bayway Village Nelson Bay Road Suburban Residential FW1 1 Fullerton Lane Residential FW3 30 Nelson Bay Road FW2 Stockton Hospital Hospital Special Uses FE1 21 Braid Road Suburban Residential FE2 Fern Bay Primary School School Stockton West SW1 284 Fullerton Street Suburban Residential SW2 Cnr Pembroke and Fullerton Streets` Stockton East SE1 40 Eames Avenue Suburban Residential SE2 Stockton Primary School School Mayfield West W1 47 Stevenson Avenue Urban Residential W2 W4 4 Groongal Street Cnr Decora Cr & Elata Way W3 Mayfield West Primary School School Mayfield M1 68 Bull Street Urban Residential M2 M3 M4 M5 45 Simpson Crescent 1 Arthur Street 52 Arthur Street 21 Crebert Street Carrington/ Maryville C1 Cnr Hargrave and Young Streets C2 Streets Cnr Harrison and Northumberland Urban City Centre Mayfield West MW1 Steel River Commercial Steel River Kooragang Island KI1 Blue Circle Southern Cement Industrial Port and Industry IB1 IB2 IB3 IB4 IB5 IB6 EDI Administration Building Mountain Bulk Haulage Kooragang Bulk Facilities Incitec Heron Rd Sims Metal Cormorant Rd Cargill Australia Raven St Mayfield North MN1 OneSteel Industrial Port and Industry Note 1: Use of Urban and Suburban Noise Amenity Zones in accordance with the DoP s Director-General Environmental Assessment Report dated April 2007 in relation to the Major Project Assessment Newcastle Coal Infrastructure Group Coal Export Terminal. Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 46 of 97 Document ID: 2011 KCT Operation Environmental Management Plan Rev2.doc Authorised: Peter Kibble

47 The KCT 120 Mtpa Modified PA residential noise limits and meteorological constraints are summarised and presented in Table 3. Table 3 KCT 120 Mtpa Modified PA - Noise Limits & Meteorological Constraints (dba re 20 µpa) Residential Location Construction Noise LAeq(15minute) Operation 1 Daytime, Evening, Night 2 LAeq(night) Operation 1 Night 2 Fern Bay North The Proponent shall only undertake Fem Bay West construction activities associated with the project that would generate Fern Bay East an audible noise at any residential Stockton West premises between 7:00 am and 6: Stockton East pm, seven days a week. Audible Mayfield West noise is defined as "noise that can be heard at the receiver". Mayfield Carrington Notes Note 1: Note 2: LA1(1minute) Operation 1 Night 2 The maximum allowable noise contributions apply under: a) Meteorological conditions of: wind speeds up to 3 ms -1 at 10 metres above ground level; or b) Temperature inversion conditions up to 3 C per 100 metres and wind speeds up to 2ms -1 at 10 metres above the ground. For the purpose of assessment of noise from the project shall be: c) Measured at the most affected point on or within the Site boundary at the most sensitive receiver to determine compliance with LAeq(15 minute) night noise limits; d) Measured at one metre from the dwelling facade to determine compliance with LA1(1minute) noise limits; and e) Subject to the modification factors provided in Section 4 of the NSW INP, where applicable. 7 days per week, 24 hours a day. Monday to Saturday 2200 hours to 0700 hours; Sundays and Public Holidays 2200 hours to 0600 hours. Similarly, the KCT 120 Mtpa Modified Environmental Assessment (EA) non-residential noise criteria are summarised and presented in Table 4. Table 4 KCT 120 Mtpa Modified EA - Non-residential Noise Criteria (dba re 20 µpa)) Non-residential Location Mayfield West Land Use Commercial Steel River Intrusive LAeq(15minute) Acceptable Amenity LAeq(period) 1 Day Evening Night Day Evening Night Night Intrusive noise not applicable Kooragang Island Industrial Intrusive noise not applicable Mayfield North Intrusive noise not applicable Any School Intrusive noise not applicable External 45 when in use 50 Any Hospital Intrusive noise not applicable External 50 when in use 55 Note 1: Maximum Amenity LAeq(9hour) Daytime 0700 hours to 1800 hours, Evening 1800 hours to 2200 hours, Night-time 2200 hours to 0700 hours Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 47 of 97 Document ID: 2011 KCT Operation Environmental Management Plan Rev2.doc Authorised: Peter Kibble

48 3 PROJECT ACTIVITIES AND NOISE SOURCES 3.1 Project Activities The Project involves the completion of the remaining KCT Stage 3 infrastructure (referred to as MasterPlan Completion phase) together with the construction of the Stage 4 EA Scope (Stage 4), delivering a total throughput capacity of 120 Mtpa. The first construction phase of the Stage 4 EA Scope is referred to as Project 145 or P145. The KCT 120 Mtpa Project Schematic Equipment Layout is attached as Appendix B1 with anticipated completion in approximately 2012, dependent on projected coal demand and financial approval. Stage 4 involves the installation of additional infrastructure as shown on the KCT 120 Mtpa Modified Project Schematic Equipment Layout attached as Appendix B2 to improve KCT s coal handling efficiency and peak capacity while maintaining a nominal throughput capacity of 120 Mtpa including: Augmentation to the rail loop to include an additional inbound and outbound track. Fourth dump station, inbound sample plant and inbound conveyors (8,500 tph). Feed out conveyor (8,000 tph) including the construction and operation of a conveyor bridge over Teal Street, on the approach to Stockton Bridge. Transfer houses, buffer bin and outbound sample plant. Shiploader conveyor (10,500 tph). Fourth shiploader to service the existing and approved berths. Involve only minor changes to the approved footprint of KCT with additional infrastructure associated with the Project to be constructed on previously disturbed land. 3.2 Noise Sources The Project includes all on-site installed and approved Stage 1, 2, 3 and 4 infrastructure including rail receival (coal wagon unloading), stacking, reclaiming and shiploading conveyor systems, transfer stations as well as mobile equipment (ie stackers, reclaimers and shiploaders) operating within the KCT site. Coal trains operating on the KCT rail loop including locomotives and wagons (while not directly within the control of PWCS) are assessed simultaneously with the KCT s operations. The plant and equipment sound power levels (SWLs) for installed and approved Stage 1, 2, 3 and 4 infrastructure are presented in Table 5. Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 48 of 97 Document ID: 2011 KCT Operation Environmental Management Plan Rev2.doc Authorised: Peter Kibble

49 Table 5 KCT Stage 1, 2, 3 and 4 Plant and Equipment LAeq Sound Power Levels (dba re 10W) As at completion of Stage 1 (installed) Stage 2 (installed) Stage 3A, Steps 1-4, 3D (installed) Stage 3Exp (installed) MasterPlan (design) Stage Stage A, Steps 1-4, 3D Exp MasterPlan Stage TOTAL Conveyor drives 630kW: dBA Conveyor drives 800kW: dba Receival/Transfer Conveyors (per 100m): dBA Shiploading Conveyors (per 100m): 115dBA Stockyard Conveyors (per 100m): dBA Shiploader,Reclaimer,Stacker: 113, 115, dba Conveyor drives 630kW: dba Conveyor drives 800kW: dba Receival/Transfer Conveyors (per 100m): dba Shiploading Conveyors (per 100m): dba Stockyard Conveyors (per 100m): dba Shiploader: 115 dba Typical SWL Range of Equipment in each Stage: Conveyor drives 630kW: dba Conveyor drives 800kW: dba Receival/Transfer Conveyors (per 100m): dBA (PPAG) Shiploading Conveyors (per 100m): 108 dba Stockyard Conveyors (per 100m): 107 dba Shiploader,Reclaimer,Stacker: 111, 108, 105 dba Conveyor drives 630kW: 96 dba Conveyor drives 800kW: 98 dba Receival/Transfer Conveyors (per 100m): 100 dba (PPAG) Shiploading Conveyors (per 100m): 103 dba Stockyard Conveyors (per 100m): 103 dba Reclaimer,Stacker: 107, 106 dba Conveyor drives 630kW: 96 dba Conveyor drives 800kW: 98 dba Receival/Transfer Conveyors (per 100m): 100 dba (PPAG) Shiploading Conveyors (per 100m): 103 dba Stockyard Conveyors (per 100m): 103 dba Reclaimer,Stacker: 107, 106 dba Stage 4 (design) Conveyor drives 630kW: 96 dba Conveyor drives 800kW: 98 dba, 1000kW: 99 dba Receival/Transfer Conveyors (per 100m): 98 dba (PPAG) Shiploading Conveyors (per 100m): 103 dba Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 49 of 97 Document ID: 2011 KCT Operation Environmental Management Plan Rev2.doc Authorised: Peter Kibble

50 4 PROJECT NOISE IMPACTS The Environmental Assessment (EA) dated February 2010 includes a comprehensive noise impact assessment as prepared by Heggies Pty Ltd (reference Report R2 dated 23 October 2009) in accordance with the requirements of the NSW Industrial Noise Policy (EPA, 2000). The major findings of the noise impact assessment are summarised below. 4.1 Residential Intrusive Noise The predicted daytime, evening and night-time LAeq(15minute) intrusive noise levels from the Stage 4 Project to the nearest residential receiver areas are presented in Appendix C1 to C2 together the respective noise limits. All predicted intrusive noise levels are below the daytime, evening and nighttime KCT 120 Mtpa Modified PA intrusive noise limits. In particular, to assess the potential noise impact at Fern Bay (West and East) and Stockton (West and East) assessments were carried-out including a review of KCT s approvals and associated infrastructure development as summarised in Table 6. Table 6 Comparative EIS 1996, Consented, Approved and Proposed Operations Scenario 1 EIS 1996 KCT 77 Mtpa Consent 1996 KCT 120 Mtpa PA 2007 KCT 120 Mtpa Modified PA 2010 (inclusive of Stages 1, 2, 3 and 4) Note 1: Description Predicted Stage 1, 2 and 3 noise emissions as presented in the EIS 1996 plus coal trains on the KCT rail loop The EIS 1996 Operation but with all Stage 3 constructed with low noise plant and equipment The Consent Mtpa Operation plus low noise conveyor drives associated with the Increase to Throughput Capacity (EA 2006) The PA Mtpa Operation plus low noise plant and equipment associated with the Stage 4 EA Scope plus low noise refitting of selected Stage 1 (and/or 2) conveyors Each scenario includes train movements on the KCT rail loop. The comparative intrusive noise levels at Fern Bay West (FW1) and Stockton West (SW1) are shown graphically in Figure 2 and Figure 3. In particular, the highest Stage 4 Project intrusive noise level at Fern Bay West (FW1) is 49 dba (under noise enhancing weather conditions) and therefore below the 50 dba noise limit. Similarly, the highest Stage 4 Project intrusive noise level at Stockton West (SW1) is also 49 dba (under noise enhancing weather conditions) and therefore below the 50 dba noise limit. 4.2 Residential Maximum Noise The predicted night-time maximum noise levels from the Stage 4 Project to the nearest residential receiver areas are presented in Appendix C3 together the respective noise limits. All predicted maximum noise levels are below the night-time KCT 120 Mtpa Modified PA LA(1minute) noise limits. Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 50 of 97

51 Noise Level dba Noise Level dba Figure 2 KCT Operating Intrusive Noise Levels - Fern Bay West (FW1) Neutral/Calm Inversion Only West Wind Inversion plus Drainage Flow EIS 1996 Consent Mtpa PA Mtpa Stage 4 Project Mtpa KCT Operating Scenario under Neutral and Noise Enhancing Weather Conditions Figure 3 KCT Operating Intrusive Noise Levels - Stockton West (SW1) Neutral/Calm Inversion Only Northwest Wind Inversion plus Drainage Flow EIS 1996 Consent Mtpa PA Mtpa Stage 4 Project Mtpa KCT Operation Scenario under Neutral and Noise Enhancing Weather Conditions Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 51 of 97

52 4.3 Residential Noise Amenity The predicted night-time LAeq(9hour) noise amenity levels from the Stage 4 Project to the nearest receiver areas are presented in Appendix C3 together with the respective noise limits. All predicted noise amenity levels are below the night-time KCT 120 Mtpa Modified PA noise amenity limits. 4.4 Non-residential Noise Amenity All predicted commercial and industrial noise amenity levels are at or below the daytime, evening and night-time KCT 120 Mtpa Modified EA noise amenity criteria presented in Error! Reference source not found.. 5 MANAGEMENT PROCEDURES AND NOISE CONTROL PWCS implements an INP based Continuous Noise Improvement Program consistent with the NSW INP (the Program). The Program began upon commencement of the Stage 3 expansion and continues to be implemented as part of ongoing KCT operations. The Program involves plant and equipment Acoustical Design, Procurement, Construction and Commissioning together with Monitoring and Reporting, to ensure that the approved environmental noise limits are achieved. An overview of the Program is presented as Figure 4 and described in Error! Reference source not found., as it relates to KCT Stage 4. Figure 4 Stage 4 Project Continuous Noise Improvement Program Stage 4 Project Engineering Design and Development In-situ Acceptance Testing Installation Desktop Design Validation & Supplier Shop Testing Environmental Noise Limits Acoustical Specifications Computer based Acoustical Modelling Industry Research and Development Stage 4 Project Operation Noise Monitoring and Reporting Responding to Community Input Review of Operational Procedures On-going Investigation of Potential Noise Reduction Options Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 52 of 97

53 Table 7 Description of Continuous Noise Improvement Program Program Improvement Activities Environmental noise limits and acoustical specifications Supplier desktop design validation and supplier shop testing Proponent in-situ acceptance testing Computer-based acoustical modelling Noise emission monitoring and reporting Responding to community concerns investigation of potential noise controls Best Available Technology noise limits for each phase of development Environmental and OHS acoustical specifications for all equipment type Equipment suppliers must demonstrate acoustical conformance during tender Environmental and OHS acoustical shop testing during procurement Environmental and OHS acoustical field testing during plant commissioning Refitting and or replacement in the event of non-compliance Acoustical modelling of installed plant using actual achieved SWLs Preparation of detailed acoustical compliance report for each phase of development On-site operator-attended noise surveillance measurements of acoustically significant plant Off-site operator-attended noise monitoring program including representative locations at Fern Bay and Stockton Develop KCT Key Performance Indicators (KPIs) to quantify monthly on-site and off-site acoustical performance based on measured equipment SWLs, weather conditions and KCT plant operating logs Prompt response and targeted noise monitoring where required Refinement of on-site noise operating procedures where practicable Investigate and research potential source noise and propagation path controls based on new technology Rank and implement the noise controls based on potential noise reduction, cost effectiveness and operational requirements Validate supplier data on new, improved acoustical performance of equipment 6 PROCUREMENT PROCESS AND EQUIPMENT LEVELS A summary of KCT s noise reduction measures as well as the specification and procurement process are summarised in Table 8. The current focus of the Program is to design, construct and operate sustainable at source noise controls for the remaining Stage 3 infrastructure (i.e. MasterPlan Completion phase). In the interim, Stage 1 and 2 plant and equipment are subject to replacement in accordance with KCT s ongoing maintenance activities. Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 53 of 97

54 Table 8 KCT s Noise Reduction Measures, Specification and Procurement Process Equipment Type Stage 1 & 2 Stage 3 & 4 Conveyor Drives Stockyard and Shiploading Conveyors (Open Steel Assembly) Transfer Conveyors (Concrete and Metal Pan Assembly) Stackers, Reclaimers and Shiploaders Buffer Bins, Chutes Receival, Sample and Transfer Station buildings Equipment start up and travel alarms Near-field barriers Replace noisiest drives Replace highly worn idlers Replacement of suspended return idlers with staggered return idler spacing and fixed idler support frame Replace highly worn idlers Conveyor mounted barriers Attenuation from enclosure Replace noisiest drives and highly worn idlers Vibrating feeder opposing phase control to cancel noise effects Enclosed with minimum penetrations, double cladding where required Maintenance access doors closed when operating plant and equipment Retro design alarm systems to replace those that cause off-site disturbance Low noise drive specification and compliance program prior to acceptance on site Noise reductions to gearbox, motor, coupling/brake, frame/ guards and lube system Low noise idler specification and compliance program prior to acceptance on site Soft-mount noise barriers Staggered return idler spacing and fixed return idler support frame Low noise idler specification and compliance program prior to acceptance on site Low noise prefabricated (PPAG) conveyor gantry Low noise idler specification and compliance program including conveyor drives and idlers. Demonstration of noise compliance by machine supplier at design stage Soft flow chutes Vibrating feeder opposing phase control to cancel noise effects Enclosed with minimum penetrations, double cladding where required Maintenance access doors closed when operating plant and equipment Develop alarms with frequency and volume control Design and install alarms systems 1 Management Maintenance and operational staff - noise awareness training Noise awareness part of the site induction training Integrated community enquiries and response program Regular noise monitoring program and analysis of results Note 1: Alarms are subject to procurement specifications detailing the tone frequency, noise emission levels, directionality and coverage. They are installed to optimise safety and to minimise off-site noise leakage. In the unlikely event that alarm noise remains a source of disturbance, then further on-site optimisation and fine adjustments are implemented to achieve further noise reductions without compromising safety standards. The sound power levels (SWLs) for Stages 1, 2, 3 and 4 infrastructures are presented in Table 5. The majority of the Stage 3 MasterPlan Completion equipment specifications have been prepared and a further reduction to the relevant Stage 4 noise specifications may be possible in the future. PWCS will continue to investigate all reasonable and feasible measures to achieve ongoing noise reductions through the Continuous Noise Improvement Program. Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 54 of 97

55 7 COMMUNITY CONCERNS AND NOISE ENQUIRIES 7.1 Pro-active Strategies PWCS s primary pro-active strategy for dealing promptly with community concerns and noise enquires is to deliver improved noise performance on an on-going basis via the Continuous Noise Improvement Program (refer Section 4.3). If improved noise performance can be regularly demonstrated then community enquires are likely to be minimised. In the unlikely event that improved noise performance is not regularly achieved, the Program embraces community based feed-back in relation to KCT s operations (refer Figure 4). This proactive strategy brings community input to the Program which can be communicated via the various contact points within PWCS (refer Table 1) and via the KCT Community forums. 7.2 Reactive Strategies Consistent with the requirements of PA Condition 6, PWCS shall monitor community enquiries in accordance with the PWCS EMS, including the following information: Date and time of complaint Method by which complaint was made Personal details from the complaint Nature of the complaint Action taken by PWCS and any follow up If no action taken, the reason why no action was taken The relatively low level of community concern in relation to noise emitted from KCT is evidenced by the receival of no community noise related enquiries of which PWCS was found to have been accountable, during the past 5 years. PWCS has however received a number of noise enquiries from the community with subsequent investigation revealing that these were not attributable to PWCS operations or the source was unidentifiable. 8 NOISE MONITORING AND REPORTING PROCEDURES 8.1 Acoustic Instrumentation Off-site environmental noise measurement procedures will be guided by the requirements of the current version of AS Acoustics - Description and Measurement of Environmental Noise, Part 1 General Procedures and the relevant sections of the NSW Industrial Noise Policy (INP). All acoustic instrumentation employed throughout the monitoring program will be designed to comply with the requirements of AS Sound Level Meters and carry current NATA or manufacturer calibration certificates. The instrumentation will be operated and maintained by suitably qualified or trained personnel. All instrumentation will be programmed to record statistical noise level indices in 15 minute intervals including the LAmax, LA1, LA10, LA50, LA90 and LAeq. Instrument calibration shall be conducted before and after each measurement survey, and any results where the variation in calibrated levels exceeds ±0.5 db will be discarded. 8.2 Weather Monitoring Station All noise measurement results will be accompanied by a qualitative description (including cloud cover) and quantitative measurements of the prevailing local weather conditions throughout the survey period. Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 55 of 97

56 PWCS shall maintain an automatic weather station (AWS) programmed to continuously record the meteorological parameters as shown in Table 9. Meteorological measurements will be guided by the requirements of the current version of AS 2923 Ambient Air - Guide for Measurement of Horizontal Wind for Air Quality Applications. Table 9 Meteorological Measurement Parameters Measured Parameter Unit Sample Interval Preferred Acceptable Mean wind speed m/s 15 minute 60 minute Wind Gust m/s 15 minute 60 minute Mean wind direction degrees 15 minute 60 minute Sigma theta - standard deviation of the wind direction degrees 15 minute 60 minute Aggregate rainfall mm 15 minute 60 minute Mean air temperature o C 60 minute 60 minute Mean Relative humidity % 60 minute 60 minute 8.3 KCT Plant Operating Log PWCS shall maintain a comprehensive KCT Plant Operating Log and provide an ON/OFF time history for each major item of plant and equipment in operation with intervals not less than 15 minutes. 8.4 Off-site Residential Operator-Attended Noise Surveys Operator-attended noise measurements will be conducted at selected residential locations to quantify the contributed level of noise emissions from KCT operations as well as the overall level of ambient noise. The operator will quantify and characterise the maximum (LAmax) and the intrusive (LAeq) noise level contributions from KCT operations over a 15 minute measurement period. In addition, the operator will quantify and characterise the overall levels of ambient noise (ie LAmax, LA1, LA10, LA50, LA90, and LAeq) over the 15 minute measurement interval. In some instances, it may be difficult to measure the LAeq KCT noise over a full 15 minute period in the presence of other noise sources. In such instances, the LAeq(15minute) noise levels may be estimated from shorter duration measurements and/or supplemented by an assessment of character and degree of audibility. The residential property noise levels will be monitored on one day per quarter at each of the eight measurement locations as shown in Table 10. Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 56 of 97

57 Table 10 Off-site Residential Property Noise Monitoring Locations Receiver Area ID and Location INP Noise Amenity Zone LEP Zone Fern Bay North Fern Bay West Fern Bay East FN1 Bayway Village Nelson Bay Road Suburban Residential FW1 1 Fullerton Lane Residential FE1 21 Braid Road Suburban Residential Stockton West SW1 284 Fullerton Street Suburban Residential Stockton East SE1 40 Eames Avenue Suburban Residential Mayfield West W1 47 Stevenson Avenue Urban Residential Mayfield M1 68 Bull Street Urban Residential Carrington/ Maryville C1 Cnr Hargrave and Young Streets Urban City Centre 8.5 Off-site Non-Residential Operator-Attended Noise Surveys Operator-attended noise measurements will be conducted at selected industrial/commercial premises to quantify the contributed level of noise emissions from KCT operations. The operator will quantify and characterise the maximum (LAmax) and the intrusive (LAeq) noise level contributions from KCT operations over a 15 minute measurement period. In addition, the operator will quantify and characterise the overall levels of ambient noise (ie LAmax, LA1, LA10, LA50, LA90, and LAeq) over the 15 minute measurement interval. Again some instances, it may be difficult to measure the LAeq KCT noise over a full 15 minute period in the presence of other noise sources. In such instances, the LAeq(15minute) noise levels may be estimated from shorter duration measurements and/or supplemented by an assessment of character and degree of audibility. The industrial/commercial premise noise levels will be monitored on one day per quarter at each of the nine measurement locations as shown in Table 11. Table 11 Industrial/Commercial Premise Noise Monitoring Locations Receiver Area ID and Location INP Noise Amenity Zone LEP Zone Mayfield West MW1 Steel River Commercial Steel River Kooragang Island KI1 Blue Circle Southern Cement Industrial Port and Industry IB1 EDI Administration Building IB2 Mountain Bulk Haulage IB3 Kooragang Bulk Facilities IB4 Incitec Heron Rd IB5 Sims Metal Cormorant Rd IB6 Cargill Australia Raven St Mayfield North MN1 OneSteel Industrial Port and Industry Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 57 of 97

58 9 NOISE AUDITS AND PERFORMANCE REVIEW 9.1 Plant and Equipment Noise Audits On-site operator-attended noise measurements will be conducted on selected items of plant and equipment to quantify the operating sound power level (SWL). Subject to the local acoustical environment, the on-site noise measurement procedures will be guided by the requirements of the current versions of AS 1217 Acoustics - Determination of Sound Power Levels of Noise Sources or ISO Determination of Sound Power Levels of Noise Sources using Sound Intensity - Part 2 Measurement by Scanning. The plant and equipment sound power levels will be monitored one day per quarter. 9.2 KCT Environmental Noise Modelling The KCT Environmental Noise Model (ENM) has been developed to incorporate the significant noise sources associated with the Kooragang Island site. The surrounding terrain, aspects of the built environment and nearby receiver areas are included in the model. The noise model has been modified to include key components of the Stage 4 EA Scope as identified through project design information and has been previously accepted by consent and regulatory authorities as an appropriate method for predicting and assessing noise level contributions from the KCT. In accordance with Condition 2.9 supplementary noise modelling shall continue to be based on the noise data obtained from the plant and equipment noise audits and the KCT EMN shall be maintained to enable the prediction of noise levels to selected locations under various operating figurations and weather conditions to assist with assessing noise level contributions from the KCT. 9.3 Reporting As described in Section 4.3, the Continuous Noise Improvement Program embraces monitoring and reporting in relation to KCT s operations. Consistent with the requirements PA Conditions 5, PWCS shall report noise monitoring and track compliance and include the following information: Off-site Operator-attended Noise Measurement Results Residential property noise level measurement results Industrial/commercial premise noise level measurement results Quantitative and qualitative assessment of prevailing meteorological conditions KCT plant and equipment operating log corresponding to the survey period On-site Operator-attended Plant and Equipment Noise Audits The measured plant and equipment sound power levels Environmental Noise Modelling Results Selected Residential property premise calculated noise levels Compliance Assessment Assessment of noise impacts in accordance with KCT 120 Mtpa Modified PA noise limits Statement of Compliance Recommendations for any further action, as required Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 58 of 97

59 The noise monitoring and compliance results shall be included a range of environmental reports which detail the PWCS s environmental performance, namely: Statutory Reports - Environment Protection Licence (EPL) Annual Returns External Reports (Non-Statutory) - KCT Stage 3 Quarterly Monitoring Reports, KCT Stage 3 Annual Monitoring Reports, KCT Annual Combined Environmental Compliance Audit (as per 5.1c of Project Approval 06_0189 MOD1 and condition 32 of consent 35/96), KCT Annual Noise Investigation Report (as per c2.10 of 06_0189 MOD1) and PWCS Annual Environmental Report. Internal Reports (Non-Statutory) - Monthly Environmental Reports and PWCS Environmental Dashboards 9.4 Reporting Corrective Action As described in Section 4.3, the Continuous Noise Improvement Program embraces the investigation of any noise exceedances and associated corrective action in relation to KCT s operations. Nonconformance or exceedance events may be identified by any one of the foregoing procedures: Off-site Operator-attended Noise Measurement Results On-site Operator-attended Plant and Equipment Noise Audits Environmental Noise Modelling Results Community Concerns Investigations Or any other Compliance Assessment The details of any non-conformance or exceedance event shall be immediately reported to the PWCS Specialist Advisor Environment. The PWCS Specialist Advisor Environment in consultation with the PWCS Expansion Project Manager shall implement appropriate corrective action. Subject to the extent of the non-conformance or exceedance, appropriate corrective action may include: Ceasing the operating activity until appropriate mitigation measures are implemented Reviewing operating procedures and implementing management controls investigation and implementation of noise reduction measures Follow-up noise monitoring and reporting to assessment compliance Consistent with the requirements PA Condition 8, PWCS shall implement significant incident reporting and associated corrective action in accordance with PWCS EMS. 10 CLOSURE This report has been prepared by SLR Consulting Australia Pty Ltd with all reasonable skill, care and diligence, and taking account of the manpower and resources devoted to it by agreement with the client. Information reported herein is based on the interpretation of data collected and has been accepted in good faith as being accurate and valid. This report is for the exclusive use of Port Waratah Coal Services Ltd. No warranties or guarantees are expressed or should be inferred by any third parties. This report may not be relied upon by other parties without written consent from SLR Consulting. SLR Consulting disclaims any responsibility to the client and others in respect of any matters outside the agreed scope of the work. Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 59 of 97

60 Appendix A Page 1 of 1 Kooragang Coal Terminal 120 Mtpa Modified Project Approval (06_0189 MOD 1) Operating Noise related Conditions GENERAL The Proponent shall carry out the project generally in accordance with the: a) Major Project Application 06_0189; b) Environmental Assessment - Kooragang Coal Terminal - Proposed Increase to Throughput Capacity, dated November 2006, and prepared by Umwelt Environmental Consultants; c) Kooragang Coal Terminal - Proposed Increase to Throughput Capacity - Response to Submissions Part A, dated January 2007, and Kooragang Coal Terminal - Proposed Increase to Throughput Capacity - Response to Submissions Part B, dated January 2007, both prepared by Umwelt Environmental Consultants; d) Kooragang Coal Terminal Stage 4 Project Fourth Dump Station & Fourth Shiploader, dated November 2009, and prepared by Umwelt Environmental Consultants; and e) Kooragang Coal Terminal Stage 4 Project Fourth Dump Station & Fourth Shiploader - Response to Submissions, dated February 2010, and prepared by Umwelt Environmental Consultants; and f) the conditions of this approval. OPERATING NOISE LIMITS 2.6 The Proponent shall minimise noise emissions from plant and equipment operated on the Site in relation to the project according to the principles outlined in the NSW Government s Industrial Noise Policy. 2.8 The Proponent shall design, construct, operate and maintain the project to ensure that the noise contributions from the expanded coal terminal do not exceed the maximum allowable noise contributions specified in Table 1 below, at those locations and during those periods indicated. The maximum allowable noise contributions apply under: a) meteorological conditions of: wind speeds up to 3 ms -1 at 10 metres above ground level; or b) temperature inversion conditions up to 3 C per 100 metres and wind speeds up to 2ms -1 at 10 metres above the ground. Table 1 Maximum Allowable Noise Contributions (db)(a) Location Day, Evening, Night At all times Night 10.00pm to 7.00am Monday to Saturday 10.00pm to 8.00am on Sundays and Public Holidays LAeq(15minute) LAeq(night) LA1(1minute) Fern Bay North Fem Bay West Fern Bay East Stockton West Stockton East Mayfield West Mayfield Carrington Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 60 of 97

61 Appendix A Page 1 of 1 Kooragang Coal Terminal 120 Mtpa Modified Project Approval (06_0189 MOD 1) Operating Noise related Conditions 2.9 For the purpose of assessment of noise contributions specified under condition 2.8 of this consent, noise from the project shall be: a) measured at the most affected point on or within the Site boundary at the most sensitive receiver to determine compliance with LAeq(15 minute) night noise limits; b) measured at one metre from the dwelling facade to determine compliance with LA1(1minute) noise limits; and c) subject to the modification factors provided in Section 4 of the New South Wales Industrial Noise Policy (EPA, 2000), where applicable. Notwithstanding, should direct measurement of noise from the development be impractical, the Proponent may employ an alternative noise assessment method deemed acceptable by the DECCW (refer to Section 11 of the New South Wales Industrial Noise Policy (EPA, 2000)). Details of such an alternative noise assessment method accepted by the DECCW shall be submitted to the Director-General prior to the implementation of the assessment method The Proponent shall investigate all feasible and reasonable mitigation measures, as defined in the New South Wales Industrial Noise Policy (EPA, 2000), to reduce noise impacts from the upgraded coal terminal at Fern Bay and Stockton to achieve noise contributions of no greater than 43 db(a) (L Aeq,(night) ), and 45 db(a) (L Aeq,(15 minutes) ) under adverse meteorological conditions specified under condition 2.8 of this approval. A report on investigations shall be submitted to DECCW and the Director-General within 12 months of commencement of works the subject of this approval and annually thereafter, unless otherwise agreed by DECCW and the Director-General, until levels specified above are achieved. A program for ongoing investigation and implementation of feasible and reasonable mitigation measures to reduce noise contributions at Fern Bay and Stockton shall be implemented. The program shall commence no later than six months following the DECCW's agreement to a noise reduction program, unless otherwise agreed by the DECCW and the Director-General The Proponent shall take all necessary actions to ensure that trains operated on the Site meet the noise performance criteria established under condition NOISE AUDITING AND COMPLIANCE 3.4 Within 90 days of the Commencement of Operations, and following the commissioning of the Stage 4 Project or as otherwise agreed by the Director-General, and during a period in which the project is operating under normal operating conditions, the Proponent shall undertake a program to confirm the noise performance of the project. The noise program shall include, but not necessarily be limited to: a) noise monitoring, consistent with the guidelines provided in the New South Wales Industrial Noise Policy (EPA, 2000), to assess compliance with condition 2.8 of this consent; b) methodologies, locations and frequencies for noise monitoring; c) identification of monitoring sites at which pre- and post-project noise levels can be ascertained; d) details of any complaints and enquiries received in relation to noise generated by the project within the first 90 days of operation; e) an assessment of night-time use of audible alarm systems; f) a statement of whether the Site is in compliance with noise limits in condition 2.8; and g) any additional noise mitigation measures and timetables for implementation. 3.5 Within 28 days of conducting the noise monitoring referred to under condition 3.4 of this approval, or as otherwise agreed by the Director-General, the Proponent shall provide the Director-General and the DECCW with a copy of the report. If the noise monitoring report identifies any noncompliance with the noise limits imposed under this approval (refer condition 2.8), the Proponent Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 61 of 97

62 Appendix A Page 1 of 1 Kooragang Coal Terminal 120 Mtpa Modified Project Approval (06_0189 MOD 1) Operating Noise related Conditions shall detail what additional measures would be implemented to ensure compliance, clearly indicating who would implement these measures, when these measures would be implemented, and how the effectiveness of these measures would be measured and reported to the Director- General. 11 OPERATION NOISE MANAGEMENT PLAN 7.4 Prior to the Commencement of Operations, the Proponent shall prepare and submit for the approval of the Director-General an Operation Environmental Management Plan (OEMP) to detail an environmental management framework, practices and procedures to be followed during the operation of the project. The Plan shall be consistent with the Department s Guideline for the Preparation of Environmental Management Plans (DIPNR 2004), and shall include, but not necessarily be limited to: a) a description of all activities to be undertaken on the Site during operation including an indication of stages of operation, where relevant; b) statutory and other obligations that the Proponent is required to fulfill during operation including all approvals, consultations and agreements required from authorities and other stakeholders, and key legislation and policies; c) details of how the environmental performance of the operations will be monitored, and what actions will be taken to address identified adverse environmental impacts. In particular, the following environmental performance issues shall be addressed: i) measures to monitor and manage dust emissions; ii) measures to monitor and minimise soil erosion and the discharge of sediment and other pollutants to lands and/or waters during operation; and iii) measures to monitor and control noise emissions during operation. d) a description of the roles and responsibilities for all relevant employees involved in the operation of the project; e) the additional plans/protocol listed under condition 7.5 of this approval; and f) complaints and enquiries handling procedures during operation. The Operation Environmental Management Plan shall be made available for inspection by the public upon request following its approval by the Director-General. 7.5 (b) A Noise Management Plan to outline monitoring, management procedures and measures to minimise total operational noise emissions from the project. The Plan shall also include, but not necessarily be limited to: i) identification of all relevant receivers and the applicable criteria at those receivers commensurate with the noise limits specified under this approval; ii) iii) iv) identification of activities that will be carried out in relation to the project and the associated noise sources; assessment of project noise impacts at the relevant receivers against the noise limits specified under this approval; details of all management methods and procedures that will be implemented to control individual and overall noise emissions from the Site during the project; v) details regarding the procurement process to guarantee that equipment levels meet the noise levels as provided in the documents listed in condition 1.1; vi) development of reactive and pro-active strategies for dealing promptly with any noise complaints and enquiries; Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 62 of 97

63 Appendix A Page 1 of 1 Kooragang Coal Terminal 120 Mtpa Modified Project Approval (06_0189 MOD 1) Operating Noise related Conditions vii) viii) noise monitoring and reporting procedures; and regular internal audits of compliance of all plant and equipment with acceptable design noise. Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 63 of 97

64 Appendix B1 Page 1 of 1 KCT 120 Mtpa Project Schematic Equipment Layout Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 64 of 97 Document ID: 2011 KCT Operation Environmental Management Plan Rev2.doc Authorised: Peter Kibble

65 Appendix B2 Page 1 of 1 KCT 120 Mtpa Modified Project Schematic Equipment Layout Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 65 of 97 Document ID: 2011 KCT Operation Environmental Management Plan Rev2.doc Authorised: Peter Kibble

66 Appendix C1 Page 1 of 1 Predicted Daytime and Evening LAeq(15minute) Intrusive Noise Levels The predicted daytime and evening LAeq(15minute) intrusive noise levels from the Stage 4 Project to the nearest residential receiver areas are presented in the table below together with the respective noise limits. Stage 4 Project Daytime and Evening Intrusive Noise (dba re 20 µpa) Receiver Area ID/Location Daytime Calm 1 Daytime Limit Fern Bay North Fern Bay West Fern Bay East FN1 Bayway Village Nelson Bay Road Evening Wind FW1 1 Fullerton Lane FW3 30 Nelson Bay Road FE1 21 Braid Road Stockton West SW1 284 Fullerton Street SW2 Cnr Pembroke and Fullerton Streets Stockton East SE1 40 Eames Avenue Warabrook/ Mayfield West W1 47 Stevenson Avenue W2 4 Groongal Street W4 Way Cnr Decora Cr & Elata Mayfield M1 68 Bull Street M2 45 Simpson Crescent M3 1 Arthur Street M4 52 Arthur Street M5 21 Crebert Street Carrington/ Maryville C1 Cnr Hargrave and Young Streets Note 1: C2 Cnr Harrison and Northumberland Streets Evening Limit Daytime and evening meteorological parameters as described in Error! Reference source not found. of Heggies Report R2 dated 23 October Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 66 of 97 Document ID: 2011 KCT Operation Environmental Management Plan Rev2.doc Authorised: Peter Kibble

67 Appendix C2 Page 1 of 1 Predicted Night-time LAeq(15minute) Intrusive Noise Levels The predicted night-time LAeq(15minute) intrusive noise levels from the Stage 4 Project to the nearest residential receiver areas are presented in table below together with the respective noise limits. Stage 4 Project Night-time Intrusive Noise (dba re 20 µpa) Receiver Area ID/Location Calm 1 Wind 1 Inversion 1 Inversion & Drainage 1 Fern Bay North Fern Bay West Fern Bay East FN1 Bayway Village Nelson Bay Road FW1 1 Fullerton Lane FW3 30 Nelson Bay Road FE1 21 Braid Road Stockton West SW1 284 Fullerton Street SW2 Cnr Pembroke and Fullerton Streets Stockton East SE1 40 Eames Avenue Warabrook/ Mayfield West W1 47 Stevenson Avenue W2 4 Groongal Street W4 Way Cnr Decora Cr & Elata Mayfield M1 68 Bull Street Carrington/ Maryville M2 45 Simpson Crescent M3 1 Arthur Street M4 52 Arthur Street M5 21 Crebert Street C1 Cnr Hargrave and Young Streets C2 Cnr Harrison and Northumberland Streets Noise Limit Note 1: Night-time meteorological parameters as described in Error! Reference source not found. of Heggies Report R2 dated 23 October Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 67 of 97 Document ID: 2011 KCT Operation Environmental Management Plan Rev2.doc Authorised: Peter Kibble

68 Appendix C3 Page 1 of 1 Predicted Night-time maximum Noise Levels The predicted night-time maximum noise levels from the Stage 4 Project to the nearest residential receiver areas are presented in table below together with the respective noise limits. Stage 4 Project Night-time Maximum Noise (dba re 20 µpa) Receiver Area ID/Location Calm 1 Wind 1 Inversion 1 Inversion & Drainage 1 Fern Bay North Fern Bay West Fern Bay East FN1 Bayway Village Nelson Bay Road FW1 1 Fullerton Lane FW3 30 Nelson Bay Road FE1 21 Braid Road Stockton West SW1 284 Fullerton Street SW2 Cnr Pembroke and Fullerton Streets Stockton East SE1 40 Eames Avenue Warabrook/ Mayfield West W1 47 Stevenson Avenue W2 4 Groongal Street W4 Way Cnr Decora Cr & Elata Mayfield M1 68 Bull Street Carrington/ Maryville M2 45 Simpson Crescent M3 1 Arthur Street M4 52 Arthur Street M5 21 Crebert Street C1 Cnr Hargrave and Young Streets C2 Cnr Harrison and Northumberland Streets Noise Limit Note 1: Night-time meteorological parameters as described in Error! Reference source not found. of Heggies Report R2 dated 23 October Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 68 of 97 Document ID: 2011 KCT Operation Environmental Management Plan Rev2.doc Authorised: Peter Kibble

69 Appendix C4 Page 1 of 1 Predicted Night time Noise Amenity Levels The predicted night-time LAeq(9hour) noise amenity levels from the Stage 4 Project to the nearest receiver areas are presented in the table below together with the respective noise limits. Stage 4 Project Night-time Noise Amenity Levels (dba re 20 µpa) Receiver Area ID/Location Calm 1 Wind 1 Inversion 1 Inversion & Drainage 1 Fern Bay North Fern Bay West Fern Bay East FN1 Bayway Village Nelson Bay Road FW1 1 Fullerton Lane FW3 30 Nelson Bay Road FW2 Stockton Hospital FE1 21 Braid Road FE2 Fern Bay Primary Stockton West SW1 284 Fullerton Street SW2 Cnr Pembroke and Fullerton Streets Stockton East SE1 40 Eames Avenue Warabrook/ Mayfield West SE2 Stockton Primary W1 47 Stevenson Avenue W2 4 Groongal Street W4 Way Cnr Decora Cr & Elata W3 Mayfield West Primary Mayfield M1 68 Bull Street Carrington/ Maryville M2 45 Simpson Crescent M3 1 Arthur Street M4 52 Arthur Street M5 21 Crebert Street C1 Cnr Hargrave and Young Streets C2 Cnr Harrison and Northumberland Streets Mayfield West MW1 Steel River Kooragang Island ld North Mayfie KI1 Cement IB1 Building Blue Circle Southern EDI Administration IB2 Mountain Bulk Haulage IB3 Kooragang Bulk Facilities IB4 Incitec Heron Rd IB Rd IB6 St Sims Metal Cormorant Cargill Australia Raven MN1 OneSteel Note 1: Night-time meteorological parameters as described Error! Reference source not found. of Heggies Report R2 dated 23 October Noise Limit Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 69 of 97

70 APPENDIX 4 KCT OPERATION WATER MANAGEMENT PLAN PORT WARATAH COAL SERVICES LIMITED Kooragang Coal Terminal Operation Water Management Plan Prepared By: Samantha Spicer Revision: 2 Date: 5 th December 2011 Doc Id No.: 2011 KCT Water Management Plan.doc Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 70 of 97

71 TABLE OF CONTENTS 1 INTRODUCTION Context Background Purpose 73 2 PLANNING WATER MANAGEMENT PWCS Water Management Strategy Characteristics of Water Resources 75 3 PWCS WATER MANAGEMENT Surface Water Management Process Water Management Ground Water Management Groundwater Dewatering Management 78 4 PROTECTION OF WATER RESOURCES Water Sources Potential Surface Water Receptors Potential Groundwater Sources and Receptors Hunter Estuary National Park 80 5 KOORAGANG COAL TERMINAL WATER USAGE KCT Water Storage, Treatment and Recirculation 82 6 PERFORMANCE MEASUREMENT Safety Inspection Procedures Monitoring Program 83 7 ACCOUNTABILITIES 84 8 REFERENCE DOCUMENTS Internal External 85 9 GLOSSARY 86 APPENDIX 1 KCT WATER MANAGEMENT SYSTEM SCHEMATIC 87 APPENDIX 2 KCT WATER MANAGEMENT SYSTEM FLOW DIAGRAM 88 Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 71 of 97

72 1. INTRODUCTION 1.1. Context Port Waratah Coal Services Limited (PWCS) owns and operates the Carrington and Kooragang Coal Terminals located in the Port of Newcastle, New South Wales (NSW). Each Terminal receives, assembles and loads coal from the Hunter Valley, Lower Hunter and Gunnedah Basin onto export vessels for overseas customers. Water resources are utilised during the operational functioning of the PWCS Terminals and are managed to maintain quality standards for onsite reuse and any external emissions Background The Kooragang Coal Terminal (KCT) is located on Kooragang Island which is bounded by the South and North arms of the Hunter River. Kooragang Island has an area of approximately 2600 hectares and was created in the early 1900 s through the reclamation of land by joining Moscheto, Dempsey and Walsh Islands. In addition PWCS also operates the Carrington Coal Terminal (CCT) located at Carrington and the Fines Disposal Facility (FDF) and Delta EMD Waste Facility both located on Kooragang Island. Furthermore PWCS also proposes to construct a fourth coal Terminal on Kooragang Island termed Terminal 4 (T4). These operations and facilities are not the subject of this Management Plan. PWCS holds an Environment Protection Licence (EPL s) issued by the Office of Environment and Heritage (OEH) for the KCT. EPL s are also held for the PWCS Carrington Coal Terminal (CCT) and Fines Disposal Facility (FDF). The EPL held for KCT (No. 1552) does not permit the discharge of any waters however the KCT 120 Mtpa Modified Project Approval (06_0189 MOD 1) includes condition 2.13 which permits the following: 2.13 The Proponent shall not permit the discharge of any water from the Site to the Hunter River unless expressly provided under the provisions of an Environment Protection Licence, or when a storm event exceeds a 1 in 100 year ARI event or after prolonged wet weather equivalent to this event. Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 72 of 97

73 1.3. Purpose The purpose of this KCT Operation Water Management Plan is to manage the sustainable use and protection of water resources and ecosystems in and around the PWCS Kooragang Coal Terminal. This KCT Operation Water Management Plan has been developed to comply with the requirements of the KCT 120 Mtpa Modified Project Approval (06_0189 MOD 1). Conditions 7.4 and 7.5 of the KCT 120 Mtpa Modified Project Approval specify the requirement to prepare and implement an Operation Environmental Management Plan, including subject specific management plans. This Plan provides an integrated and strategic approach to water management that promotes the maintenance or improvement of water quality, minimisation of fresh water use, the reuse of water resources and compliance with statutory requirements. The following types of water are dealt with in this Water Management Plan: surface water (including runoff) process (or recirculated) water potable water groundwater Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 73 of 97

74 2. PLANNING WATER MANAGEMENT 2.1. PWCS Water Management Strategy PWCS Vision: To value water as a key component of our business activities and efficiently manage water resources through sustainable design, operation and management. This Vision along with the principles of avoid, reduce, reuse and recycle will be achieved through the implementation of a number of organisation wide strategies. Water Management Strategies: Potable water to minimise dependence on potable water Alternate sources to investigate alternate supplies of water Harvesting of water maximise capture and storage of stormwater and process water for reuse Efficiency operational, maintenance and project procedures encourage efficient use of water and minimising waste Health to ensure the health impacts of water use is considered for all employees, contractors, visitors and community Approvals to ensure compliance with licences and consent condition requirements. Operational to manage water in a way which minimises impacts to operations and site activities Design to incorporate water management into design criteria Communication to ensure employees, contractors, visitors and community are informed of the importance of water to our business Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 74 of 97

75 2.2. Characteristics of Water Resources PWCS operations are situated in the NSW coastal strip characterised by the following climatic conditions: Warm summers and mild winters Uniform average total rainfall Affected by the El Niño Southern Oscillation with increased probability of drier conditions with El Niño and increased probability of wetter periods in La Niña As shown in the following graphs monthly rainfall averages from approximately 70mm- 120mm. Mean minimum temperatures range from 8 C in July to 19 C in January. Mean maximum temperatures range from 17 C in July to 25 C in January. Figure 1: Temperature Values at Newcastle Nobby s Signal Station Bureau of Meteorology (BoM) - Newcastle Nobbys Signal Station AWS ( ) located approximately 3.5km South-east of CCT and 6km Sou-south-east of KCT. Figure 2: Rainfall Values at Newcastle Nobby s Signal Station Bureau of Meteorology (BoM) - Newcastle Nobbys Signal Station AWS ( ) located approximately 3.5km South-east of CCT and 6km Sou-south-east of KCT. Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 75 of 97

76 3. PWCS WATER MANAGEMENT 3.1. Surface Water Management The PWCS water management systems are designed to collect water from operational activities and harvest stormwater for reuse. The water management systems at KCT and associated wharf facilities consists of a system of drains, sumps, settling ponds/ lagoons, storage tanks and recirculation infrastructure. This system collects water from operational activities and rain events, and diverts it to the water management system for reuse. Weekly inspections of PWCS water management systems are conducted to monitor the effectiveness and assess the capacity for stormwater harvesting. Sediments collected in drains, sumps and ponds/ lagoons are removed as required to ensure adequate water storage capacity. See Appendix 1 and 2 for schematics and flow diagrams of the water management infrastructure. See Permanent Services - Operation Manual K located on the PWCS IMS Public Folders, for additional information regarding water management at KCT. Water collected by the water management system at KCT and CCT is typically characterised by high levels of Total Suspended Solids (TSS) due to the contact and transportation of coal fines. Water is primarily directed towards settling ponds or lagoons via an extensive drainage system. The Drainage system and ponds/ lagoons are designed to allow for fines to settle out. The erosion of soil from non - operational areas is minimised through the use of sediment and erosion control measures (e.g. sedimentation fencing) and the implementation of surface stabilising works (e.g. revegetation) as soon as possible following the completion of works. The effectiveness of sediment controls and stabilising works is regularly monitored by operational and construction teams relevant to the works. PWCS implements a monitoring program to assess the quality of surface water at various locations within the water management systems at KCT. An annual groundwater monitoring program has also been developed to assess the hydrochemical characteristics of groundwater resources and to monitor any potential impacts from PWCS activities. See EMS Procedure the PWCS Environmental Systems Procedure for information regarding the environmental monitoring program. Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 76 of 97

77 Water storage The following table details the infrastructure in place at KCT for the management of water harvesting and storage. Parameters Unit/ Datum Primary Settling Lagoon 2 Primary Settling Lagoon 1 Clarified Water Lagoon 1 Clarified Water Lagoon 2 Stormwater detention basin D Stormwater detention basin B & A K4 Settling Lagoon K5 Settling Lagoon K6 Settling Lagoon K7 Settling Lagoon 4 ML Tank 80KL Break Tank 2mǾ 2.5 ML Tank Operating Capacity ML total Avg. Depth# m & * 4* 6.25* Surface area m total * 20* 400* Volume m total Position Rail loop Rail loop Rail loop Rail loop Rail loop - North East of North of K5 North of K6 North of K7 Middle on tank South on tank North on tank - Rail loop centre furthest West West of tanks West of tanks West of tanks furthest East K4 Wharf Wharf Wharf Wharf strip strip strip m RL NHTG (base) 3.8 (base) 3.8 (base) E E E E E E E E E E E N N N N N N N N N N N Coordinates MGA E N Purpose Collection of - water and settling fine coal Input Operations & stormwater: - West 1/2 of pads Output Clarified: CWP - 2, small SDB, overflow Collection of water and settling fine coal Operations & stormwater: East 1/2 of pads Clarified: CWP 1, big SDB, overflow Clarified water storage Clarified water: settling pond 1, big SDB Clarified: 80KL tank, overflow Clarified water storage Clarified water: settling pond 2, small SDB Clarified: 80KL tank, overflow: Surge water storage Overflow: settling pond 2 Return/ clarified: CWP 2, overflow Surge water storage Overflow: settling pond 1 Return/ clarified: CWP 1. overflow Primary settling of water Operations & stormwater: K4 Berth Return/ clarified: settling lagoons Primary settling of water Operations & stormwater: K5 Berth Return/ clarified: settling lagoons Primary settling of water Operations & stormwater: K6 Berth Return/ clarified: settling lagoons Primary settling of water Operations & stormwater: K7 Berth Return/ clarified: settling lagoons Ready to use water storage Potable & clarified: 80KL tank water Clarified: Operations See Glossary Break Tank Clarified: clarified water ponds 1&2 Clarified: 2.5ML & 4ML tanks Lining - HDPE None HDPE HDPE HDPE None None Concrete Concrete Concrete Steel Steel Steel Ready to use water storage Potable & clarified: 80KL tank water Clarified: Operations * Note: parameters are approximate ** Note: Values are calculated at the stormwater overflow points # Note: Average depth based on when storage facility is at full capacity Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 77 of 97

78 3.2. Process Water Management Water collected at KCT is captured in a series of water storages, channels, drains, ponds and lagoons. This water undergoes primary treatment which involves allowing suspended solids to settle out and deposit into settling lagoons for periodic clean out. This water is then recirculated across the KCT through the process water system. This system provides process water for use around the plant for hose down activities, dust suppression, wash out, landscaping and some fire systems Groundwater Management PWCS maintains a series of groundwater wells at KCT to facilitate the monitoring of groundwater aquifers to assess any impacts PWCS operations may have on groundwater resources. A review of historical information and past groundwater sampling programs has been undertaken to assist in the development of a comprehensive groundwater monitoring program for each PWCS site that will be implemented each year. This included an assessment and update of groundwater contours to enable PWCS to better understand the movement of groundwater at KCT, CCT and the FDF. See the report prepared by Douglas Partners titled Review of Groundwater Monitoring (2009) for further details. The hydrogeological systems at both terminals are affected by significant volumes of fill associated with historical reclamation works and to a lesser extent underground structures including dump stations and their associated conveyor systems. The historical flow of water and reclamation of land using fill material has impacted on the movement of groundwater particularly at KCT complicating the understanding of groundwater dynamics. An annual groundwater monitoring program will be conducted in relation to KCT, CCT and the FDF to monitor any potential impacts from PWCS activities and provide information relevant to groundwater characteristics Groundwater Dewatering Management The subsurface layers relevant to the site generally comprise of: Layer 1: Fill Aquifer (approx 1 3 m below surface) an unconfined layer of fill material generally comprising of Sand and Gravel (imported dredged materials) recharged by rainfall. Layer 2: Clay Layer (approx 3 4 m below surface) - Clay and Sandy Clay (Alluvial Clay) of variable thickness below Layer 1 Layer 3: Estuarine Aquifer a semi- confined layer immediately below the clay layer The excavation of the ground surface at KCT may encounter the groundwater aquifers listed above. Generally excavations at KCT are minimised to avoid potential impacts on Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 78 of 97

79 and from groundwater ingress. Where excavation is deemed necessary appropriate groundwater measures are implemented which may include the following: Cut off walls e.g. sheet piling, diaphragm walls Excavation lining e.g. shoring screens, jet grout plug Groundwater interception e.g. perimeter drains, extraction wells Groundwater recharge e.g. recharge wells or trenches PWCS will develop specific Dewatering Management Plans as appropriate and obtain licences from the NSW Office of Water as required. 4. PROTECTION OF WATER RESOURCES 4.1. Water Sources PWCS does not extract water directly from the environment such as the Hunter River but obtains water resources through onsite stormwater harvesting, internal process water recycling and potable water sources. Additional water resources are also gained directly from the Hunter Water Corporation potable system which makes up any short fall in the volumes required. Therefore for the purposes of Clause 1.2 of Standard E10, it is appropriate to consider only the immediate neighbouring ecosystems and those located downstream from PWCS operations that may potentially be affected by the capture of stormwater at PWCS. PWCS uses, on average, approximately 500 kl/day at CCT and 460 kl/day at KCT of potable water. This usage fluctuates significantly dependant on the frequency and volumes of recent precipitation at each site and the activities relevant to the Terminal. Usage rates of potable water at KCT are typically much lower than that used on average at CCT due to the increased capacity of collection and storage at KCT and the limitation of no process water supply to the CCT wharf. A number of incidents have however occurred at KCT in the past regarding the water management systems which has increased the overall average daily usage. PWCS has the ability to capture and store significant volumes of stormwater for use across the sites however during large storm events and prolonged rainfall, the design capacity of water management system is exceeded and overflows occur to the Hunter River Potential Surface Water Receptors PWCS operations are located on opposite sides of the Southern arm of the Hunter River. The Hunter River flows in a South Easterly direction to the Newcastle Harbour where it discharges into the Tasman Sea. The Carrington and Kooragang Coal Terminals are located 3.5km and 5km respectively from the mouth of the river and are impacted by tidal fluctuations which can extend many kilometres inland. Few potential surface water receptors are situated downstream of PWCS operations. The Hunter River, Newcastle Harbour and Tasman Sea are in locations that could potentially receive surface water runoff from PWCS however this typically occurs only during large or prolonged rain events or as a licenced discharge from the CCT. As PWCS has an enclosed water management system at each Terminal the majority of any surface water is collected onsite for use. Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 79 of 97

80 Other potential surface water receptors include the Throsby Creek system approximately 600m South of CCT and Hunter Estuary National Park (including the Kooragang Nature Reserve), which is an extensive intertidal wetland system directly North of KCT. Surface water runoff from PWCS however does not enter these systems as discharge is intercepted and directed to the Hunter River Potential Groundwater Sources and Receptors PWCS operations are situated in areas typically characterised by elevated groundwater aquifers with nearby water courses and natural ecosystems. Therefore any impacts PWCS may have on localised groundwater resources may potentially have a significant impact on downstream natural systems which receive groundwater. These natural systems may include but are not limited to the Hunter River, Newcastle Harbour, Throsby Creek and the Hunter Estuary National Park. PWCS has an extensive system of groundwater bores which are sampled and analysed for any potential impacts associated with the groundwater aquifers. Groundwater is typically monitored annually and trends are compared to criteria listed by recognised standards. A licenced groundwater bore search for Carrington indicated that one (1) monitoring and five (5) domestic-general use bores are located within a 1km radius of the CCT terminal. The closest two being approximately 250m to the West of the PWCS boundary appearing to be on an industrial property owned by OneSteel. The licenced groundwater bore search completed for Kooragang revealed that two (2) licenced bores are within a 1km radius of KCT. One bore is located approximately 300m to the south of KCT whilst the other licenced bore is shown in an area east of the rail receival dump stations, potentially on PWCS property. Search information available regarding this bore is limited and the location may in effect be misrepresented on the search website. As these bores are both licenced for industrial purposes, it is unlikely that sensitive groundwater users would be impacted by PWCS activities Hunter Estuary National Park Directly North and North-West of KCT and the FDF is the Kooragang Nature Reserve which forms part of the Hunter Estuary National Park. The estuary consists primarily of intertidal wetlands bordered by lowland floodplain forest, riparian woodlands and small areas of freshwater wetlands. The Kooragang wetlands were RAMSAR listed in 1984 based on the following criteria: Representative, rare or unique wetlands Populations important for maintaining biological diversity Species at a critical stage in their life cycles or a refuge in adverse conditions Regularly supports 1 per cent of the individuals in a population of one species or subspecies of waterbird. Wetlands in general are considered important ecosystems as they filter water, control and mitigate floods, provide a range of flora and fauna habitats, and offer breeding areas for a range of aquatic and terrestrial species. It is therefore of critical importance to ensure that all aspects of water management, at PWCS and other locations that may Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 80 of 97

81 potentially impact on the Hunter Estuary National Park, continue to protect this important ecosystem. 5. KOORAGANG COAL TERMINAL WATER USAGE The KCT has a water management system which is fully enclosed and is designed to accommodate a 1 in 100 year design storm event or equivalent. This system operates by collecting process water used during operations and harvesting stormwater in all operational areas of the site. This water is then channelled to drains and sumps which then feed into a series of settling ponds/ lagoons for settling and clarification prior to recirculation back to the plant for reuse. KCT does not hold an EPL for the discharge of waters from the site and must therefore manage all water uses and storages within the boundaries of the facility. Site water balances at PWCS are produced each week by a contracted consultant, and are reported to PWCS monthly, utilising a range of meter readings and gauges. Historical water balances can be obtained from monthly Water Management and Coal Spillage Reports. See Appendix 2 for water management system schematics for each Terminal. Total Water Input: Potable water from Hunter Water Corporation Rainfall Potable Water Usage: Supplement recycled water for operational requirements Fire fighting (general) Vessel water supplies Truck/car washdown Liquid resistors Water supply to CCT Wharf facilities Employee amenities and kitchen facilities Landscaping and other uses Process Water Usage: Dust suppression and stockpile water sprays Fire fighting systems Wash down Landscape irrigation Total Water Output KCT overflows primarily into the channel flowing into the North Arm of the Hunter River (only during significant rain events in excess of the design capacity or prolonged rainfall) Losses Evaporation Infiltration Leaks Coal dust suppression Overseas with the export coal Sewage Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 81 of 97

82 5.1. KCT Water Storage, Treatment and Recirculation Water management at KCT typically occurs through the channelling of waters to the settling lagoons (1 and 2) where the fines are able to deposit from suspension (chemicals are not used to assist deposition). Water is then pumped to the clarified lagoons (1 and 2) for further clarification. Clarified water is then pumped to the storage tanks (4ML, 2.5ML and 80kL) for recirculation to the plant for reuse. Recirculated water is pumped and used for operational purposes including washdown, dust suppression sprays, fire fighting (yard conveyors) and for filling water trucks for road cleaning and dust suppression. Examples of operational activities and systems which utilise and recapture water for reuse include: Dust suppression sprays (i.e. dump stations, pads, conveyors, wharf) Washdown of conveyors, transfer houses, stackers and reclaimers Wharf launder system (i.e. wharf washdown of ship loaders and deck) See Appendix 1 and 2 for Water Management System schematic and flow diagram. Amenities located at KCT are connected to the Hunter Water sewage system. This connection is located at the front of the Kooragang Coal Terminal near Curlew St. Sewage is pumped to a primary holding tank before being pumped to the sewer system. A number of onsite septic tanks exist in some remote locations at KCT such as contractor site sheds etc. these tanks are periodically emptied and the effluent taken offsite for disposal. Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 82 of 97 Document ID: 2011 KCT Operation Environmental Management Plan Rev2.doc Authorised: Peter Kibble

83 6. PERFORMANCE MEASUREMENT 6.1. Safety Inspection Procedures An inspection of all major water storage facilities at PWCS is the accountability of the PWCS Assets Department. In regards to the inspections relevant to the FDF, refer to the current version of the Fines Disposal Facility Management Plan for details regarding inspection requirements and procedures. In summary the FDF Management Plan details the requirement for the following inspections: routine fortnightly inspections Surveillance Inspections carried out every two (2) years in accordance with the Rio Tinto Solid Waste Facility Inspection and Sign off requirements Surveillance Inspections carried out every five (5) years in accordance with the Dam safety Committee requirements. In addition, STEPsafe Standard 5.40 Premises Inspection provides a framework and checklist for the completion of workplace inspections which are designed to provide safe work environments at PWCS. These inspections also encompass the operations checklist for the inspection of Ponds, Drains and Sumps (STEPsafe Standard 5.40 Premises Inspection - Attachment 5.40/6) Monitoring Program Table 1: Environmental Monitoring - Operational Support Tasks Feature Monitored Monitored By Document KCT Water Management System Cleanout of settling lagoons and retention ponds located in the KCT rail loop Water discharge from stormwater buffer ponds and monitoring of spillway overflows Maximise stormwater buffer pond storage availability Read nominated water meters weekly and produce site water balance Calibration of water meter at the Fines Disposal Facility Conduct daily inspections of nominated items of the Water Management System Conduct water quality monitoring and report monthly Weekly testing of Stormwater Pumps at Lagoon 1 & 2 Cleaning of ph, TSS and salinity probes and level gauges in each lagoon Monitor and Control Reed Growth in lagoons Other maintenance and repair requirements of the Water Management System not included in Water Management and Coal Spillage Contract or Environmental Monitoring Contract Fault investigations/repairs of pumps and instrumentation of the pump house Environmental Contractor PWCS Contract Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 83 of 97 Document ID: 2011 KCT Operation Environmental Management Plan Rev2.doc Authorised: Peter Kibble

84 7. ACCOUNTABILITIES Role Description of Action(s) Accountable For Frequency General Manager Operations Terminal Managers Operations Superintendents Operations Shift Supervisors Maintenance Superintendents Manager Engineering Specialist Advisor Environment Senior Engineer Services Allocate resources to ensure compliance with statutory requirements relevant to environmental management. Allocate appropriate resources in the event of a Water Management Emergency outlined in section 3.3 Emergency Water Management of this plan. Accountable for water management at Terminals including usage and quality. Accountable for on site water management and response. Accountable for daily checking of performance of water management system, and forwarding of any faults to accountable teams for rectification. Accountable for the maintenance of electric (Mag) flow meters. Accountable for all maintenance and fault investigations/repairs of pumps and instrumentation of pumps and associated equipment. Accountable for investigating potential improvements to the water management system including alternatives to potable water. Accountable for the ongoing tracking of water consumption trends at each Terminal including potable water balances and reporting monthly to the Terminal Manager. Ensure that this Water Management Plan is reviewed and updated in accordance with the Rio Tinto Environment Standards Ensure compliance with any reporting requirements associated with Licences and Approvals. Plan and coordinate responses to a Water Management Emergency as outlined in section 3.3 Emergency Water Management of this plan. Accountable for the maintenance of mechanical flow meters. In event of a water management emergency Daily Every 4 years or as required In event of a water management emergency Specialist Advisor Structural Engineering Manager Engineering, Expansion Project PWCS Employees & Contractors Structural inspection of all major water storage facilities Accountable for ensuring any changes to the water management system are considered and addressed as part of expansion activities (investigation, design, procurement, construction and commissioning). Follow all safe work procedures and policies to protect water systems from contamination Report environmental incidents and near misses Aim to conserve water and water quality Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 84 of 97 Document ID: 2011 KCT Operation Environmental Management Plan Rev2.doc Authorised: Peter Kibble

85 8. REFERENCE DOCUMENTS 8.1. Internal Environmental Management System (EMS) STEPsafe Standards KCT Permanent Services - Operation Manual K Fines Disposal Facility Management Plan 8.2. External Bureau of Meteorology Climate of NSW. Accessed 28/1/09 Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 85 of 97 Document ID: 2011 KCT Operation Environmental Management Plan Rev2.doc Authorised: Peter Kibble

86 9. GLOSSARY Dewatering - any process that removes water from sludge DP&I - Department of Planning and Infrastructure (NSW) DSC - Dam Safety Committee (NSW) Effluent - Treated or untreated wastewater and sewage from showers, toilets, kitchens, basins EMS - Environmental Management System EPL - Environment Protection Licence ESP - Environmental System Procedure (part of EMS) EWI - Environmental Work Instruction (part of EMS) NCC - Newcastle City Council OEH - Office of Environment and Heritage (formerly DECCW - Department of Environment, Climate Change and Water) Potable - Town supply (HWC) water suitable for drinking TSS - Total Suspended Solids Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 86 of 97 Document ID: 2011 KCT Operation Environmental Management Plan Rev2.doc Authorised: Peter Kibble

87 APPENDIX 1 KCT WATER MANAGEMENT SYSTEM SCHEMATIC Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 87 of 97 Document ID: 2011 KCT Operation Environmental Management Plan Rev2.doc Authorised: Peter Kibble

88 APPENDIX 2 KCT WATER MANAGEMENT SYSTEM FLOW DIAGRAM Review No.: R1 Review Date: Dec 2011 Review Due: Dec 2013 Page 88 of 97 Document ID: 2011 KCT Operation Environmental Management Plan Rev2.doc Authorised: Peter Kibble