Integra Underground Section 96(1A) Application Statement of Environmental Effects. Delivering sustainable solutions in a more competitive world

Transcription

1 Integra Underground Section 96(1A) Application Statement of Environmental Effects Integra Coal Operations May FINAL Delivering sustainable solutions in a more competitive world

2 Approved by: Position: Signed: Tanya Phillips Project Manager Integra Underground Section 96(1A) Application Statement of Environmental Effects Integra Coal Operations Date: 26 May, 2008 Partner: Mike Shelly Environmental Resources Management Australia Pty Ltd Quality System May FINAL This report has been prepared in accordance with the scope of services described in the contract or agreement between Environmental Resources Management Australia Pty Ltd ABN (ERM) and the Client. The report relies upon data, surveys, measurements and results taken at or under the particular times and conditions specified herein. Any findings, conclusions or recommendations only apply to the aforementioned circumstances and no greater reliance should be assumed or drawn by the Client. Furthermore, the report has been prepared solely for use by the Client and ERM accepts no responsibility for its use by other parties.

3 CONTENTS 1 INTRODUCTION 1.1 BACKGROUND THE APPLICANT THE SITE PROPOSAL CUT AND FLIT MINING LOCATION PROPOSED MODIFICATION PROJECT JUSTIFICATION 3 2 STATUTORY CONTEXT 2.1 EXISTING CONSENT APPLICABLE LEGISLATION, POLICIES AND PLANS COMMONWEALTH LEGISLATION ENVIRONMENT PROTECTION AND BIODIVERSITY CONSERVATION ACT, NSW LEGISLATION ENVIRONMENTAL PLANNING AND ASSESSMENT ACT, 1979 AND REGULATION, MINING ACT 1992, COAL MINE HEALTH AND SAFETY ACT 2002, AND COAL MINE HEALTH AND SAFETY REGULATION, PROTECTION OF THE ENVIRONMENT OPERATIONS ACT, WATER ACT, WATER MANAGEMENT ACT, THREATENED SPECIES CONSERVATION ACT, STATE ENVIRONMENTAL PLANNING POLICIES STATE ENVIRONMENTAL PLANNING POLICY (MAJOR PROJECTS), STATE ENVIRONMENTAL PLANNING POLICY (MINING, PETROLEUM PRODUCTION AND EXTRACTIVE INDUSTRIES), STATE ENVIRONMENTAL PLANNING POLICY NO 33 HAZARDOUS AND OFFENSIVE DEVELOPMENT STATE ENVIRONMENTAL PLANNING POLICY NO 44 KOALA HABITAT PROTECTION STATE GOVERNMENT NATURAL RESOURCE MANAGEMENT POLICIES NSW STATE RIVERS AND ESTUARIES POLICY NSW WETLANDS MANAGEMENT POLICY NSW GROUNDWATER POLICY FRAMEWORK DOCUMENT GENERAL NSW GROUNDWATER QUALITY PROTECTION POLICY NSW GROUNDWATER DEPENDENT ECOSYSTEM POLICY 18

4 CONTENTS 2.7 REGIONAL PLANNING INSTRUMENTS HUNTER REGIONAL ENVIRONMENTAL PLAN LOCAL PLANNING INSTRUMENTS SINGLETON LOCAL ENVIRONMENT PLAN ENVIRONMENTAL IMPACT ASSESSMENT 3.1 SUBSIDENCE WATER GROUNDWATER SURFACE WATER FLORA AND FAUNA CULTURAL HERITAGE GREENHOUSE GAS BACKGROUND & METHODOLOGY RESULTS CONCLUSION SURFACE FEATURES VENTILATION FAN COMPOUND MT OWEN RAIL SPUR MT OWEN WATER PIPELINE TELSTRA ASSET FOREST ROAD 24 4 MITIGATION MEASURES 4.1 SUBSIDENCE & SURFACE IMPACTS GREENHOUSE GAS 25 5 CONCLUSION ANNEX A DEVELOPMENT APPROVAL (DA) 105/90 ANNEX B GEOTECHNICAL (SUBSIDENCE) ASSESSMENT, STRATA ENGINEERING 2008 ANNEX C GROUNDWATER AND SURFACE WATER ASSESSMENT, GEOTERRA 2008 LIST OF FIGURES Follows Page No. FIGURE 1.1 LOCALITY PLAN 2 FIGURE 1.2 PROPOSED CUT AND FLIT MINING AREA 2

5 1 INTRODUCTION 1.1 BACKGROUND Environmental Resources Management Australia Pty Ltd (ERM) was engaged by Integra Coal Operations Pty Ltd (ICO) to prepare a Statement of Environmental Effects to accompany a Section 96(1A) modification application to the Department of Planning. ICO propose to conduct a trial cut and flit underground mining operation within the Middle Liddell seam concurrently with longwall operations within that seam. The Longwall operations are approved under DA105/90 or pending approval under MP06_0213. The majority of the trial cut and flit mining would be undertaken within the area previously approved for mining under Development Approval (DA) 105/90 (Annex A), however some workings would need to take place outside this area (see Section 1.4.2). This Statement of Environmental Effects examines the statutory context of the proposal, and assesses its potential environmental impacts. Mitigation measures are proposed where impacts have been identified. 1.2 THE APPLICANT The Integra Coal project was formed in August 2006 through the integration of the former Glennies Creek and Camberwell joint ventures. ICO is the management company responsible for the operation of the former Glennies Creek Colliery and Camberwell Coal Mine, now referred to as the Integra Underground and Integra Open Cut respectively. The participants of the Integra Joint Venture include Vale Australia Pty Ltd, an Australian subsidiary of CVRD, a Brazilian company which ranks as the second largest mining company in the world; Toyota Tsusho, a trading arm of the Toyota group (28%); NS Glennies Creek Pty Ltd, a subsidiary of Nippon Steel (3.6%), POS-GC Pty Ltd, a subsidiary of POSCO (3.6%), JS Glennies Creek and JFE Steel Pty Ltd, both subsidiaries of Japan Steel (3.6%). Vale, NS Glennies Creek, POS-GC, JS Glennies Creek and JFE Steel comprise the Glennies Creek Joint Venture participants. Notwithstanding the formation of the Integra Joint Venture, the ownership of the underlying mining tenements and assets in the Glennies Creek Colliery and Camberwell Open Cut remain under the ownership of individual Joint Ventures. ENVIRONMENTAL RESOURCES MANAGEMENT AUSTRALIA S96(1A)/FINAL/26 MAY

6 1.3 THE SITE ICO currently operates an underground longwall mine in the Hunter Valley Coalfield of the Sydney basin, approximately 12km north-west of Singleton, within the Singleton Local Government Area (see Figure 1.1). The land overlying the proposed trial cut and flit area is predominately owned by Savage Minerals Ltd & Enex Foydell Ltd, with a small overlying segment owned by Glendell Tenements Pty Ltd. Seven longwalls have been completed within the Middle Liddell seam to date, with Longwall 8 nearing completion. The proposed area of cut and flit mining lies to the south of the North-West mains within the Middle Liddell seam adjacent to the Longwall 5 to 10 inclusive (see Figure 1.2). The area of the proposed mining covers approximately 28 hectares, and would result in the extraction of approximately tonnes of run of mine (ROM) coal. 1.4 PROPOSAL Cut and Flit Mining Cut and flit is a system of underground mining whereby a continuous miner is used to develop a panel by cutting out a designated length of roadway, before flitting to another working face in a predetermined sequence. A roof bolting machine then moves into the panel and installs roof support concurrently with coal production in another roadway. This system of mining retains pillars of coal between the roadways, and can be conducted in a manner so as not to result in subsidence (ie vertical downward movement of the ground surface 20mm): consistent with the definition adopted by DPI, this level of subsidence is considered to be zero. This method allows for a higher recovery rate of the coal resource when compared to conventional continuous miner development activities Location The proposed mining area (the proposed mining area or Project Area ), as shown in Figure 1.2, is located predominantly within an area previously approved for longwall mining under DA 105/90. In order to mine in this location, however, headings will need to be established outside of this approved mining area. The location of the headings has largely been determined by the location of the existing Forest Road Ventilation Shaft and the associated difficulties in ventilating the trial area from the workings inbye (ie nearer to the coalface) of that facility. Additionally, the development of the headings in the proposed location would be beneficial to potential future cut and flit mining operations in the Middle Liddell seam, should this trial be deemed successful. ENVIRONMENTAL RESOURCES MANAGEMENT AUSTRALIA S96(1A)/FINAL/26 MAY

7 m 1.4m DIA. DIA. SEALED SEALED MUCK MUCK BORE BORE SHAFT SHAFT 4.2m 4.2m DIA. DIA. DOWNCAST DOWNCAST UP-CAST UP-CAST FAN FAN SHAFT SHAFT 0m 0m 10m 10m 20m 20m 30m 30m 40m 40m 50m 50m 100m 100m CONC CONC SLABS SLABS CONC CONC SLABS SLABS MAIN WEST PANEL RAVENSWORTH STATE FOREST Mt Owen Rail Spur ROAD RAVENSWORTH NEW MAIN GLENNIES CREEK NORTHERN ENGLAND RAILWAY HIGHWAY CAMBERWELL Legend Proposed Mining Area (Project Area) Client: Integra Coal Operations Pty Ltd Project: Integra Underground Drawing No: hv_01 Date: 09/04/08 Drawing size: A4 Drawn by: JD Reviewed by: TP Source: LPI 1:25000 Topo Series Camberwell Sht Scale: Refer to Scale Bar Figure 1.1 Locality Plan Environmental Resources Management Australia Pty Ltd 53 Bonville Avenue, Thornton, NSW 2322 Telephone km N

8 MT OWEN RAIL SPUR Legend Current Workings Proposed Trial Cut & Flit Area Future Workings Future Workings (approved) Approved Mining Area CL382 APPROVED MINING AREA (DA 105/90) NORTH-WEST MAINS NORTHERN RAILWAY Figure 1.2 Proposed Trial Cut and Flit Mining Area MAIN Client: Integra Coal Operations Pty Ltd Project: Integra Underground Drawing No: hv_02 Date: 08/04/08 Drawing size: A3 Drawn by: JD Reviewed by: TP Source: Integra Coal Plan No.GLP0098R2A Plan 3 Scale: Refer to Scale Bar m N Environmental Resources Management Australia Pty Ltd 53 Bonville Avenue, Thornton, NSW 2322 Telephone

9 1.4.3 Proposed Modification The proposal seeks the modification of development consent DA 105/90 by adding the following information to Condition 1 of Schedule 2: The Applicant shall carry out the development of the Glennies Creek Coal Mine generally in accordance with and the Statement of Environmental Effects prepared by Environmental Resources Management Pty Ltd dated May 2008 to support the Section 96(1A) application by Integra Coal Operations dated May PROJECT JUSTIFICATION Cut and flit operations within the Middle Liddell seam have been identified as a means of potentially providing continuity of coal production during periods of longwall changeout, or lower than budgeted production from other mining activities within the Middle Liddell seam. The purpose of the trial is to assess the viability of this form of mining and provide information upon which future mine planning decisions can be based. A successful trial will enable coal resource recovery within the Middle Liddell seam to be maximised and undertaken in a manner which will result in zero subsidence and with minimal environmental impacts, as demonstrated though this Statement of Environmental Effects. ENVIRONMENTAL RESOURCES MANAGEMENT AUSTRALIA S96(1A)/FINAL/26 MAY

10 2 STATUTORY CONTEXT 2.1 EXISTING CONSENT The Integra Underground mine operates under Development Consent DA 105/90, granted on 1 November 1991 by the then Minister for Planning (as modified). Coal transport, processing and surface facilities fall under other approvals held by ICO. A list of the approvals and licences that apply to the Glennies Creek Colliery are detailed in Table APPLICABLE LEGISLATION, POLICIES AND PLANS There are a number of statutory planning provisions that relate to the proposed modification, including: Environment Protection and Biodiversity Conservation Act, 1999; Environmental Planning and Assessment Act, 1979 and Regulations, 2000; Mining Act, 1992; Coal Mine Health and Safety Act 2002 and Regulation, 2006; Protection of the Environment Operations Act, 1997; Water Act, 1912; Water Management Act, 2000; State Environmental Planning Policy (Major Projects), 2005; State Environmental Planning Policy (Mining, Petroleum Production and Extractive Industries), 2007; State Environmental Planning Policy No. 33 Hazardous and Offensive Development; State Environmental Planning Policy No. 44 Koala Habitat Protection; Hunter Regional Environmental Plan 1989; and Singleton Local Environmental Plan The proposed modification is compliant with the various statutory requirements pertaining to these provisions, the relevant aspects of which are outlined below. ENVIRONMENTAL RESOURCES MANAGEMENT AUSTRALIA S96(1A)/FINAL/26 MAY

11 ENVIRONMENTAL RESOURCES MANAGEMENT AUSTRALIA S96(1A)/FINAL/26 MAY Table 2.1 Current Consents, Approvals, Leases and Licences Issuing/Responsible Authority Type of Lease, Licence, Approval Date of Issue/ Registration Department of Primary Industries - Mineral Resources * Expiry Comments Coal Lease (CL) Varying surface exemptions Mining Lease (ML) Part transfer of CL357 Mining Lease (ML) 1525 (Shaft) Forest Road Ventilation Shaft Area (from 20m to 5m from surface) Sub-lease of MPL Under agreement with Glendell Tenements Pty Ltd. Overlies ML 1525 (-5m to surface) Exploration Licence Mining Lease (ML) Part transfer of CL 357 Mining Lease (ML) Part transfer of CL 357 S138 Approvals Various For LW1 to LW9; expiry date relates to LW7 to LW9. First Workings Approval Under transitional provisions of SMP process. To complete MG7 and 8 and a portion of North-west mains.

12 ENVIRONMENTAL RESOURCES MANAGEMENT AUSTRALIA S96(1A)/FINAL/26 MAY Issuing/Responsible Authority Type of Lease, Licence, Approval Date of Issue/ Registration Minister for Planning (or predecessor) Expiry Comments Gas drainage Various Not Specified Each hole to have a maximum life of five years. SMP approval for Longwalls 7 to or expiry of CL382 SMP for Longwalls 10 to 17 (part approval) or expiry of CL382 Development Consent 105/ See DA 105/90, Condition 2 Approval lapses on granting of full SMP approval for LW10 to 17 S96(2) modification (105/90/M1) For development of underground entries off Camberwell North Pit highwall; processing and dispatch of t coal using Camberwell CHPP/rail loader; site facility development on and adjacent to Oak Park School. Three year period of applicability sought. S96(2) modification (105/90/M2) Long term use of highwall entries and Camberwell CHPP/ train loader; coal transportation by internal road initially and subsequently by overland conveyor. S96(2) modification (105/90/M3) Forest Road Ventilation Shaft and facilities; overland power line to shaft. S96(1A) modification Upgrading of Portal Areas facilities.

13 ENVIRONMENTAL RESOURCES MANAGEMENT AUSTRALIA S96(1A)/FINAL/26 MAY Issuing/Responsible Authority Type of Lease, Licence, Approval Date of Issue/ Registration Department of Environment and Climate Change (or predecessor) - Environment Protection Authority Department of Natural Resources (DNR or its predecessors) Expiry Comments S96 (2) modification (105/90/M4) Increase in ROM coal production from 3.0Mtpa to 4.5Mtpa; installation of additional facilities and infrastructure; amendments to consent wording. Project Approval Surface Facilities and Activities Environment Protection Licence 7622 Water Access Licences: Not Applicable Anniversary date: 31 December In perpetuity For 150 Units In perpetuity For 50 Units In perpetuity For 3 Units In perpetuity For 99 Units In perpetuity For 3 Units Superseded Pollution Control Licence. Approved saleable coal production to 3.5 Mtpa.

14 ENVIRONMENTAL RESOURCES MANAGEMENT AUSTRALIA S96(1A)/FINAL/26 MAY Issuing/Responsible Authority Type of Lease, Licence, Approval Date of Issue/ Registration Expiry Comments In perpetuity For 303 Units In perpetuity For 13 Units In perpetuity For 230 Units. Held jointly with Camberwell & RHA Pastoral Co. 20BL In perpetuity Monitoring Bore 20BL In perpetuity Test Bore 20BL In perpetuity Test Bore 20BL In perpetuity Test Bore 20BL In perpetuity Dewatering of Mine Workings 20BL In perpetuity Excavation of underground workings 20BL Perpetuity Monitoring Bore

15 ENVIRONMENTAL RESOURCES MANAGEMENT AUSTRALIA S96(1A)/FINAL/26 MAY Issuing/Responsible Authority Type of Lease, Licence, Approval Date of Issue/ Registration WorkCover Authority Dangerous Goods Licence 35/ Expiry Comments 20BL Perpetuity Monitoring Bore 20BL Perpetuity Monitoring Bore 20BL Perpetuity Monitoring Bore 20BL Perpetuity Monitoring Bore 20BL Perpetuity Monitoring Bore 20BL Perpetuity Monitoring Bore For magazines for explosives, detonators & on-site diesel storage. Amendment to upgrade licence details regarding total diesel storage above 100kL submitted 17 November Acknowledgement received 09 March Security Management Plan and application to store and handle explosives plus updated notification of dangerous goods submitted June Licence renewal pending. Singleton Shire Council Building Approval 1/ Nil Muster area awning

16 ENVIRONMENTAL RESOURCES MANAGEMENT AUSTRALIA S96(1A)/FINAL/26 MAY Issuing/Responsible Authority Type of Lease, Licence, Approval Date of Issue/ Registration Expiry Comments Building Approval 2/ Nil Bathroom / office complex Development Consent 90/ Nil For new offices and bathhouse Development Consent 90/2001 (Mod) Nil Alteration / additions to transportable office building Development Consent 719/ Nil specified For Glennies Creek to Ashton Water Pipeline To use a Council Road (Forest Road) (under Roads Act) Approval to Demolish Existing Dwelling & Shed To use a Council Road (Forest Road) (under Roads Act) Approval to Occupy Temporary Structure Approval to Occupy Temporary Structure Approval to Occupy Temporary Structure Nil For Glennies Creek to Ashton Water Pipeline Nil Dwelling & shed located at Lot 93 DP Middle Falbrook Road Nil For use of Forest Road to access and service the Forest Road Ventilation Shaft Area Bathhouse Office Induction Room

17 ENVIRONMENTAL RESOURCES MANAGEMENT AUSTRALIA S96(1A)/FINAL/26 MAY Issuing/Responsible Authority Type of Lease, Licence, Approval Date of Issue/ Registration Approval to Occupy Temporary Structure Approval to Occupy Temporary Structure Approval to Occupy Temporary Structure Approval to Occupy Temporary Structure Approval to Occupy Temporary Structure Expiry Comments Office Office Office Office Conveyor Gantry Development Consent N/A Control Room Development Consent N/A Hydrocarbon Storage Shed Approval to Occupy Temporary Structure Replacement for Bathhouse 2

18 2.3 COMMONWEALTH LEGISLATION Environment Protection and Biodiversity Conservation Act, 1999 The Environment Protection and Biodiversity Conservation Act, 1999 (EPBC Act) requires the approval of the Commonwealth Minister for the Environment for actions that may have a significant impact on matters of national environmental significance. The EPBC Act also requires Commonwealth approval for certain actions on Commonwealth land. Matters of national environmental significance under the Act comprise the following: world heritage areas; national heritage places; Ramsar wetlands of international importance; threatened species or ecological communities listed in the EPBC Act; migratory species listed in the EPBC Act; Commonwealth marine environments; and nuclear actions. There are no world heritage areas, national heritage places, Ramsar wetlands or Commonwealth marine areas on or near the Project Area. Field surveys and desktop reviews of the relevant database have shown that there are no threatened ecological communities known to occur on the Project Area. The proposal does not involve a nuclear action nor is it expected to have a significant affect upon the health and viability of any threatened or migratory species listed under the provisions of the Act. The project will not impact any areas of Commonwealth land. Accordingly the EPBC Act does not apply to this project. 2.4 NSW LEGISLATION Environmental Planning and Assessment Act, 1979 and Regulation, 2000 The Project must be assessed in accordance with the Environmental Planning and Assessment Act, 1979 (EP&A Act) and the Environmental Planning and Assessment Regulation Under Section 96(1A) of the EP&A Act, a consent authority may modify a development consent if it is satisfied that the: (a) proposed modification is of minimal environmental impact ; and ENVIRONMENTAL RESOURCES MANAGEMENT AUSTRALIA S96(1A)/FINAL/26 MAY

19 (b) development to which the consent as modified relates is substantially the same development as the development for which consent was originally granted and before that consent as originally granted was modified (if at all). With respect to s.96(1a)(a), Section 3 of this Statement of Environmental Effects addresses the relevant components of the existing environment and demonstrates that the impacts, if any, would be minimal. The proposed mining area is predominantly within the previously approved mining area (DA 105/90), however in order to mine in this location, headings will need to be established outside of this approved mining area. The development as modified will not change: the purpose of the development as an underground coal mine; the current approved production limit of 4.5Mtpa ROM coal; the seam subject to underground mining; and the destination of coal produced at the colliery. It can therefore be concluded that the proposed cut and flit operation is substantially the same development as the development for which consent was originally granted and before that consent as originally granted was modified and satisfies the requirements of s.96(1a)(b). The Minister for Planning is the consent authority for the proposed s.96(1a) modification Mining Act 1992, Coal Mine Health and Safety Act 2002, and Coal Mine Health and Safety Regulation, 2006 The project involves the continuation of an existing approved mining operation covered by CL 382 issued under the Mining Act, The Coal Mine Health and Safety Act (CMH&S Act) 2002 came into effect on 23 December 2006 and replaced the now repealed Coal Mines Regulations Act Part 6, Division 1 of the CMH&S Act and Section 88 of the Coal Mine Health and Safety Regulation 2006 specify the requirements for the methods and system for working mines Protection of the Environment Operations Act, 1997 An Environment Protection Licence (No 7622) under the Protection of the Environment Operations Act 1997 (PoEO Act) is held by ICO which relates to coal mining. Given that the trial cut and flit area falls within the Glennies Creek Colliery Holding to which the licence applies, the licence will cover the mining operation without requiring modification. The proposed cut and flit mining will not result in air, water or land discharge, and therefore a discharge point will not need to be required under the current licence. ENVIRONMENTAL RESOURCES MANAGEMENT AUSTRALIA S96(1A)/FINAL/26 MAY

20 2.4.4 Water Act, 1912 The Water Act 1912 addresses issues relating to water rights, water and drainage, drainage promotion and artesian wells. The western extent of the Project Area is overlain by a section of Bettys Creek. This creek system has been highly modified as a result of other mining activities in the vicinity, but given that the proposed mining will not cause subsidence (Strata Engineering, Annex B), Bettys Creek will not be impacted by the proposed cut and flit mining. No other surface impacts or disturbance will result from the mining. GeoTerra Pty Ltd, 2008 (Annex C) have determined that the proposed cut and flit mining will have no observable adverse impacts on the groundwater systems in the vicinity of the Project Area and, consequently, no approvals under the Water Act 1912 are required Water Management Act, 2000 The objective of the Water Management Act 2000 is to provide for the sustainable and integrated management of the water sources of the State for the benefit of both present and future generations. The proposal does not require the extraction of water from any Regulated River Water Source and no water sharing plans apply to the Project Area. Accordingly, there is no approval required under this Act Threatened Species Conservation Act, 1995 In NSW, threatened species, populations and ecological communities are protected by the Threatened Species Conservation Act, 1995 (TSC Act). Section 5A of the EP&A Act specifies that in deciding whether there is likely to be a significant effect on threatened species, populations or ecological communities, or their habitats, seven factors must be taken into account along with any relevant assessment guidelines. This assessment is referred to as the assessment of significance. The surface of the Project Area is predominantly grassland, with some areas of Bull Oak Woodland (ERM 2005) and a small area of riparian vegetation associated with Bettys Creek. Given that the cut and flit mining will not result in subsidence (see Section 3.1), there will be no impact on flora or fauna. No other surface impacts or disturbance will result from the mining. ENVIRONMENTAL RESOURCES MANAGEMENT AUSTRALIA S96(1A)/FINAL/26 MAY

21 2.5 STATE ENVIRONMENTAL PLANNING POLICIES State Environmental Planning Policy (Major Projects), 2005 State Environmental Planning Policy (Major Projects) 2005 identifies development to which the assessment and approval process of Part 3A of the EP&A Act applies. The provisions of SEPP (Major Projects) does not apply to the proposed modification as the proposal involves a modification to an existing development consent issued previously under Part 4 of the EP&A Act. The proposed modification of the existing development consent will therefore be subject to Section 96(1A) of the EP&A Act. The Minister for Planning is the consent authority for the Section 96(1A) modification State Environmental Planning Policy (Mining, Petroleum Production and Extractive Industries), 2007 This policy, which was gazetted on February 16, 2007, aims: (a) to provide for the proper management and development of mineral, petroleum and extractive material resources for the purpose of promoting the social and economic welfare of the State; (b) to facilitate the orderly and economic use and development of land containing mineral, petroleum and extractive material resource; and (c) to establish appropriate planning controls to encourage ecologically sustainable development through the environmental assessment, and sustainable management, of development of mineral, petroleum and extractive material resources. Part 3 of the policy identifies matters for consideration by the consent authority in determining an application for consent for development for the purposes of mining, petroleum production or extractive industries. The matters for consideration and the consistency of the proposed modification to these matters are as follows. Compatibility Of Proposed Mine, Petroleum Production or Extractive Industry with Other Land Uses The site is within the Hunter Valley Coalfield of the Sydney Basin and existing underground and open cut coal mines are in the locality. The proposed cut and flit mining operation is compatible with adjacent land uses and will assist to maximise coal resource recovery in the Hunter Coalfield. ENVIRONMENTAL RESOURCES MANAGEMENT AUSTRALIA S96(1A)/FINAL/26 MAY

22 Compatibility of Proposed Development with Mining, Petroleum Production or Extractive Industry The proposed cut and flit operation will provide continuity of coal production. The operation will also enable an assessment of the viability of this form of mining, upon which future mine planning decisions can be based. Natural Resource Management and Environmental Management The trial cut and flit operations will result in no surface disturbance and will have minimal environmental impact. Resource Recovery The outcomes of the trial cut and flit operation will assist future mine planning with respect to maximizing resource recovery. Transport Coal produced from the trial cut and flit operation will use the existing coal transport infrastructure at the mine and will not require any additional infrastructure. As the modification does not seek to increase ROM coal production beyond the current approved production limit of 4.5Mtpa ROM coal, there will be no change to the current approved coal transport rates or methods. Rehabilitation The trial cut and flit operations will result in no surface disturbance and will be undertaken in the manner to ensure there is no (< 20mm) subsidence. Therefore rehabilitation activities within the Project Area will not required. The proposed activity will be compatible with other land uses and will have minimal environmental impact. The operation will ensure resource recovery maximization and utilise existing transport infrastructure. The proposed trial cut and flit operation is therefore consistent with SEPP (Mining, Petroleum Production and Extractive Industries) State Environmental Planning Policy No 33 Hazardous and Offensive Development State Environmental Planning Policy 33 Hazardous and Offensive Development (SEPP 33) aims to ensure that in considering any application to carry out potential hazardous or offensive development, the consent authority has sufficient information to assess whether the development is hazardous or offensive and to impose conditions to reduce or minimise any adverse impact. The policy aims to ensure that the merits of a proposal are properly ENVIRONMENTAL RESOURCES MANAGEMENT AUSTRALIA S96(1A)/FINAL/26 MAY

23 addressed before being determined, particularly in regard to off-site risk. The proposed development is not "potentially hazardous" as defined in SEPP 33 and consequently a preliminary hazard analysis is not required State Environmental Planning Policy No 44 Koala Habitat Protection Schedule 1 of State Environmental Planning Policy 44 - Koala Habitat Protection (SEPP 44) identifies local government areas where Koalas are known to occur. Singleton Shire is identified in Schedule 1 of the SEPP. The area subject to mining, and specifically the Project Area, does not constitute potential or core koala habitat as defined in SEPP 44. Furthermore, the proposed mining will result in no direct disturbance to vegetation or fauna habitat. 2.6 STATE GOVERNMENT NATURAL RESOURCE MANAGEMENT POLICIES NSW State Rivers and Estuaries Policy This policy sets out six principles for sustainable management in relation to rivers and estuaries in NSW. The proposed trial area of cut and flit mining will result in no (< 20mm) subsidence and will not impact upon on any rivers or estuaries NSW Wetlands Management Policy This policy aims to promote the conservation, sustainable management and wise use of NSW wetlands by all stakeholders for the benefit of present and future generations. As no wetland ecosystems are present within the Project Area, this policy is not relevant to the proposal NSW Groundwater Policy Framework Document General This document was devised to manage the State s groundwater resources so that they can sustain environmental, social and economic uses for the people of NSW. Planned outcomes of this management framework are to: slow and halt, or reverse any degradation of groundwater resources; ensure long term sustainability of the systems ecological support characteristics; maintain the full range of beneficial uses of these resources; and maximise economic benefit to the region, State and Nation. ENVIRONMENTAL RESOURCES MANAGEMENT AUSTRALIA S96(1A)/FINAL/26 MAY

24 GeoTerra Pty Ltd, 2008 (Annex C) has determined that the proposed cut and flit mining activities will have no observable adverse impacts on the groundwater systems NSW Groundwater Quality Protection Policy This Policy is a component of the NSW Groundwater Policy Framework Document. The Policy recognises potential threats to groundwater quality as industrial and urban waste burial, contamination from point and diffuse sources, and pumping-out of groundwater systems. The proposed mining at Integra Underground will involve none of the recognised threats and have no direct (or indirect) impact on groundwater quality NSW Groundwater Dependent Ecosystem Policy This Policy is a component of the NSW Groundwater Policy Framework Document. The Policy aims to achieve the protection, management and restoration of groundwater dependent ecosystems. However, since there are no groundwater dependent ecosystems within the Project Area, this policy is not relevant to the proposal. 2.7 REGIONAL PLANNING INSTRUMENTS Hunter Regional Environmental Plan 1989 The Hunter Regional Environmental Plan 1989 (HREP 1989) provides a regional environmental planning framework for the Hunter Region s development. The HREP 1989 aims to promote balanced development in the Hunter Region, encourage orderly and economic development and bring about optimum use of land and other resources consistent with the needs and aspirations of the local community. Part 6, Division 1 of the HREP 1989 addresses mineral resources and extractive materials. Clause 41 of the HREP 1989 identifies matters that should be considered by consent authorities when considering proposals for mining or extraction: 41. (1) Consent authorities, in considering proposals for mining or extraction (including dredging) (a) should consider the conservation value of the land concerned and apply conditions which are relevant to the appropriate post-mining or extraction land use, (b) should, in respect of extraction from river banks or channels, ensure that instability and erosion are avoided, ENVIRONMENTAL RESOURCES MANAGEMENT AUSTRALIA S96(1A)/FINAL/26 MAY

25 (c) should consult with officers of the Department of Mineral Resources, and of the Department of Agriculture, to determine appropriate post-mining or extraction land uses, (d) should ensure the progressive rehabilitation of mined or extracted areas, (e) should minimise the likelihood and extent of a final void and the impact of any final void, or facilitate other appropriate options for the use of any final void, (f) should minimise any adverse effect of the proposed development on groundwater and surface water quality and flow characteristics, (g) should consider any likely impacts on air quality and the acoustical environment, (h) should be satisfied that an environmentally acceptable mode of transport is available, and (i) should have regard to any relevant Total Catchment Management strategies. The proposed modification is generally consistent with the aims of this Regional Environmental Plan. 2.8 LOCAL PLANNING INSTRUMENTS Singleton Local Environment Plan 1996 The Project Area comprises land zoned 1(a) Rural under the Singleton Local Environmental Plan (LEP) Mining is permissible within this zone with development consent. The objectives for this zone are: (a) to protect and conserve agricultural land and to encourage continuing viable and sustainable agricultural land use; (b) to promote the protection and preservation of natural ecological systems and processes; (c) to allow mining where environmental impacts do not exceed acceptable limits and the land is satisfactorily rehabilitated after mining; (d) to maintain the scenic amenity and landscape quality of the area; (e) to provide for the proper and co-ordinated use of rivers and water catchment areas; and (f) to promote provision of roads that are compatible with the nature and intensity of development and the character of the area. The proposed modification is generally consistent with the objectives of the LEP and specifically meets objective (c) of the 1(a) Rural zone. ENVIRONMENTAL RESOURCES MANAGEMENT AUSTRALIA S96(1A)/FINAL/26 MAY

26 3 ENVIRONMENTAL IMPACT ASSESSMENT 3.1 SUBSIDENCE A Preliminary Geotechnical Assessment of the Project Area was conducted by Strata Engineering (Australia) Pty Ltd. The report (Annex B) summarises the findings of the study and provides an assessment of the minimum stable pillar sizes and the likely nature of subsidence impacts as a consequence of the proposed trial. The assessment was completed with the understanding that the proposed mining was required to remain stable in the longer term with zero surface subsidence (ie. subsidence 20mm). The assessment was based on the proposed mine plan, geological logs and geotechnical data, reviews of earlier Strata Engineering reports and relevant experience. In order to provide recommendations, the methodologies adopted in the assessment considered: pillar factor of safety; pillar strength; pillar loading; the role of pillar width to height ratio; likely surface subsidence associated with the preliminary layouts; and floor stability. Recommendations were provided for the dimensions of the cut and flit panels and will be adopted by Integra throughout the operation. Adhering to these recommendations will mean that the probability of pillar failure is very low, and that surface subsidence is expected to be limited to that resulting from elastic compression of the coal pillars and surrounding roof and strata and satisfy both the long-term stability and subsidence criteria specified. 3.2 WATER Groundwater An impact assessment of the proposal on groundwater was undertaken by GeoTerra Pty Ltd (Annex C). The assessment was based on the proposed mine plan, previous monitoring and assessments conducted, and the geotechnical assessment undertaken by Strata Engineering (see Section 3.1). The impact assessment concluded that the trial cut and flit mining would result in: ENVIRONMENTAL RESOURCES MANAGEMENT AUSTRALIA S96(1A)/FINAL/26 MAY

27 no observable additional adverse effects to either the basement or alluvial groundwater systems overlying the trial cut and flit area; no additional observable subsidence related fracturing that would adversely affect the integrity of aquifers and aquitards in the overburden; and no observable additional overburden depressurisation or mine water inflows to the workings. Hence, the proposed cut and flit mining will have no anticipated impacts on groundwater systems Surface Water Surface water underlain by the proposed cut and flit trial area is limited to the main channel of Bettys Creek, under the northern extent of the mining. In order to assess the impacts of the proposed cut and flit mining activities on surface water, an impact assessment was undertaken by GeoTerra Pty Ltd (Annex C). As with the groundwater assessment, the assessment was based on the proposed mine plan, previous monitoring and assessments, and the geotechnical assessment undertaken by Strata Engineering (see Section 3.1). Based on the predicted subsidence from both the proposed cut and flit mining and approved extraction in Panels 5 to 10 of the Middle Liddell seam, the assessment did not anticipate any adverse effects to stream flow, stream water quality or stream bed and bank geomorphologic stability within Bettys Creek or its tributaries in the vicinity of the Project Area (Geoterra 2008). Hence, no adverse impacts on surface water are predicted as a result of the proposal. 3.3 FLORA AND FAUNA The surface overlying the proposed trial area of cut and flit mining is predominantly grassland, with some areas of Bull Oak Woodland (ERM 2005) and a small area of riparian vegetation associated with Bettys Creek. Given that the cut and flit mine plan is based on achieving zero subsidence (Section 3.1) and will result in no anticipated impacts to surface or groundwater (Section 3.2), there will be no anticipated impacts on flora or fauna. 3.4 CULTURAL HERITAGE Previous Cultural Heritage surveys in the vicinity of the Project Area have revealed the presence of culturally significant sites and items, particularly adjacent to waterways. However, given that the cut and flit mine plan is based on achieving zero subsidence (Section 3.1), and that no direct surface ENVIRONMENTAL RESOURCES MANAGEMENT AUSTRALIA S96(1A)/FINAL/26 MAY

28 disturbance is required for the proposal, no impacts on any cultural heritage items which may be present are anticipated. 3.5 GREENHOUSE GAS Background & Methodology Coal recovery within the trial cut and flit area is estimated at t ROM. Although this figure is likely to be refined once extraction begins, it has been used for the greenhouse gas assessment of the proposal. A previous assessment of greenhouse gas emissions from extraction within the Middle Liddell seam (ERM 2007a) has been used for base figures such as gas levels and methane content within the seam. While the intention is for the trial area to be mined on a campaign basis (extraction only when required), an indicative schedule of mining has been used for the purposes of this assessment. This indicative schedule nominates four months of mining per year, over a period of three years. Similarly, an indicative plant list for extraction has been adopted. This list includes one continuous miner, two shuttle cars, and one twin-boom roof bolter. Any other plant required would be transferred from the longwall operations, and would not be additional to current operations. A summary of assumptions relating to mine operation, energy usage and greenhouses gas production is presented in Table 3.1. It should be noted that as the cut and flit mining technique has not been used at the Integra Underground to date, accurate operational figures cannot be determined and indicative values have been used. Table 3.1 Assumptions for Purpose of Assessment Factor Value Units Total ROM coal 450,000 tonnes Total saleable coal 271,215 tonnes Mining timeframe 3 years Seam methane content kg / ROM t kwh usage - continuous miner 4,176 kwh/day kwh usage - shuttle cars 341 kwh/day kwh usage roof bolter 2,400 kwh / day Plant utilisation 16 hours / day 1. ERM, 2007a This assessment looked at the three scopes of greenhouse gas emissions, namely: Scope 1 direct emissions from sources within the boundary of the operation as a direct result of its activities; ENVIRONMENTAL RESOURCES MANAGEMENT AUSTRALIA S96(1A)/FINAL/26 MAY

29 Scope 2 indirect emission from the combustion of purchased electricity, steam or heat produced by another organisation; and Scope 3 all other indirect emissions that are a consequence of the organisation s activities but are not from the sources owned or controlled by the organisation Results Table 3.2 summarises the greenhouse gas emissions from the proposed mining. Table 3.2 Summary of Total Estimated CO 2-e Emissions from Trial Cut and Flit Mining Mining Stage Emissions Source Annual Average CO2-e (t) Project Total CO2-e (t) Annual Average as % of Global Emissions 1 Extraction and Processing Electricity 868 2,604 Methane 8,096 24, Transport to Harbour Diesel Combustion of Product Coal Coal 244, , TOTAL 253, , Global emission figure used is for emissions from burning fossil fuels (IEA 2006). The proposed mining will result in a net increase in Scope 3 greenhouse gas emissions as a direct result of more coal being available for combustion. Table 3.2 shows an annual output of approximately t CO 2-e due to coal combustion, which comprises over 96% of annual greenhouse emissions from the proposed mining. These emissions result from the combustion of the saleable coal, and are generally reported by those operating the downstream coal-combusting processes. Relatively minor increases in overall on-site (Scope 1 and 2) emission production will result from the use of continuous miner, roof-bolter and shuttle cars. Table 3.2 shows that this constitutes less than 4% of the emissions from this proposal Conclusion The Scope 1 and 2 emissions output from the proposed cut and flit mining results in a minor increase to ICO emissions. The vast majority of the emissions (approximately 94%) are Scope 3 emissions, which do not result directly from on-site activity. ICO has a greenhouse mitigation strategy in place which will be extended to include the trial cut and flit mining operation and its resulting emissions (see Section 4.2). ENVIRONMENTAL RESOURCES MANAGEMENT AUSTRALIA S96(1A)/FINAL/26 MAY

30 3.6 SURFACE FEATURES Ventilation Fan Compound The Forest Road Ventilation Shaft site and associated facilities is not immediately underlain by the trial cut and flit area. Given this, and the zero subsidence to result from the mining, neither the Site nor the associated facilities will be affected by the proposal Mt Owen Rail Spur The proposed trial area of cut and flit is overlain by approximately 150m of the Mt Owen Rail Spur. This spur connects the Main Northern Railway with the Mt Owen Mine to the north. As reported by Strata Engineering (see Section 3.1), the proposed mining will result in zero subsidence and hence will not impact upon the Mt Owen Rail Spur Mt Owen Water Pipeline A water supply pipe that services Mt Owen Mine is buried alongside the Mt Owen Rail Spur. It is understood that the pipeline is used only infrequently by Mt Owen but is nevertheless required to remain serviceable. The pipe is understood to be welded polyethylene pipe with an outside diameter of 355mm buried to a nominal depth of 0.7m. Given the predicted magnitude of subsidence, no impacts are anticipated on the buried Mt Owen water pipeline Telstra Asset A Telstra distribution cable runs within the area overlying the trial cut and flit mining area. The cable runs along Forest Road from Glennies Creek Road, although ICO has been advised that there are no subscribers to the telecommunications line beyond the Forest Road Ventilation Shaft Site (GCCM, 2005). Given the subsidence predictions, no impacts are anticipated for the Telstra cable Forest Road Approximately 220m of the secondary road, Forest Road, overlies the eastern extent of the headings into the area of trial cut and flit mining. This portion of road is maintained by Singleton Shire Council, comprises a single lane gravel thoroughfare typical of many rural access roads in Singleton Shire and provides limited access to rural land in the area between Glennies Creek Road and the northern Ravensworth district. Given the magnitude of subsidence predicted (see Section 3.1), it is not anticipated that Forest Road would be impacted by the proposal. ENVIRONMENTAL RESOURCES MANAGEMENT AUSTRALIA S96(1A)/FINAL/26 MAY

31 4 MITIGATION MEASURES 4.1 SUBSIDENCE & SURFACE IMPACTS Operations within the Project Area will be designed and undertaken in accordance with the design criteria and mine plan developed with Strata Engineering (Annex B). This mine plan, which was designed to achieve zero (< 20mm) subsidence as a result of the extraction, will result in negligible impacts to surface features and facilities overlying the mining area. 4.2 GREENHOUSE GAS ICO is registered as a member of Greenhouse Challenge Plus, an initiative established to enable Australian companies to form working partnerships with the Australian Government to improve energy efficiency and reduce greenhouse gas emissions. Similarly, ICO as part of the Vale Australia group of companies will be a participant in the Energy Efficiency Opportunities programme commencing March This Federal Government programme encourages large energy-using businesses to improve their energy efficiency. It does this by requiring businesses to identify, evaluate and report publicly on cost effective energy savings opportunities. Additionally, ICO has prepared an Energy Savings Action Plan for the Integra Underground as required under the Energy Administration Amendment (Water and Energy Savings) Act, The following actions have been identified under the Plan and are either being undertaken currently, or will be undertaken in the future Diesel efficiency will be considered in assessments of new mobile and fixed equipment - the less diesel used, the less greenhouse gas emitted during combustion. Electrical efficiency will be considered in assessments of new mobile and fixed equipment - the less electricity used, the lower the emitted greenhouse gas per tonne of coal produced. Energy audits will be held when practicable to ensure that the mine is using best practice techniques to minimise energy use and is operating at optimum energy levels. Equipment will be maintained to retain high levels of energy efficiency. Greenhouse awareness training will be held at staff inductions to make employees aware of the science of global warming and detailed efforts to minimise emissions. An inventory of emissions and sinks will be developed and maintained and ENVIRONMENTAL RESOURCES MANAGEMENT AUSTRALIA S96(1A)/FINAL/26 MAY

32 Emissions and abatement strategies will be reported annually. Existing greenhouse mitigation and monitoring programs will be continued throughout the remaining life of the Integra Underground, including the proposed trial cut and flit mining activities within the Middle Liddell seam. ENVIRONMENTAL RESOURCES MANAGEMENT AUSTRALIA S96(1A)/FINAL/26 MAY

33 5 CONCLUSION The trial cut and flit mining activities within the Middle Liddell seam proposed by ICO will enable an assessment of the potential suitability of this form of mining to increase the extraction and production potential at the mine, while resulting in zero subsidence of the overlying strata. No adverse impacts are anticipated on surface facilities, infrastructure or ecology nor on surface water or groundwater resources, and there are no changes required to the current processing or transport levels as a result of the proposal. The trial will allow ICO to establish the viability of this mining method in other areas of the Middle Liddell Seam, and result in minimal environmental impacts, as outlined in this Statement of Environmental Effects. ENVIRONMENTAL RESOURCES MANAGEMENT AUSTRALIA S96(1A)/FINAL/26 MAY

34 REFERENCES Environmental Resources Management (ERM) (2005) Glennies Creek Colliery Longwalls 7 to 9, Flora and Fauna Assessment. Prepared for Glennies Creek Coal Management Pty Ltd. Environmental Resources Management (ERM) (2007a) Glennies Creek Colliery Longwalls 10 to 17 Part 3A, Environmental Assessment. Prepared for Integra Coal Operations Pty Ltd. Environmental Resources Management (ERM) (2007b) Subsidence Management Plan, Glennies Creek Longwalls Panels 10 to 17. Prepared for Glennies Creek Coal Management Pty Ltd. Glennies Creek Coal Management (GCCM) (2005) Application for Subsidence Management Approval Longwalls 7 to 9, Written Report. ENVIRONMENTAL RESOURCES MANAGEMENT AUSTRALIA S96(1A)/FINAL/26 MAY

35 Annex A Development Approval (DA) 105/90

36 ENVIRONMENTAL PLANNING & ASSESSMENT ACT, 1979 DETERMINATION OF A DEVELOPMENT APPLICATION PURSUANT TO SECTION 101 I, Minister for Planning, pursuant to Section 101 of the Environmental Planning & Assessment Act 1979 ("the Act"), determine the development application ("the application") referred to in Schedule 1 by granting consent to the application subject to the conditions set out in the Schedule 2. The reasons for the imposition of conditions are: (i) to minimise the adverse impact the development may cause through noise, visual amenity, air and water pollution; (ii) to provide for environmental monitoring and reporting; (iii) to set requirements for infrastructure provision. Sydney, 1 November 1991 ROBERT WEBSTER Minister for Planning SCHEDULE 1 Application made by: To: In respect of: Maitland Main Collieries Pty Limited ("the Applicant") Singleton Shire Council (DA 105/90) ("the Council") Authorisations ATP A44 and A128 on land described in Attachment "A". BCA Classification: Class 10(a) - Main Bathhouse Class 10(a) - Overflow Bathhouse Class 10(a) - Ablutions Building Class 9(a) - First Aid Room Class 7 - Lamp Room Class 5 - Surveyor s/geologists Office, Storeman s Office, Safety Officer s Office, Underground Admin Office, Site Clerks Office Class 10 - Motor Room/Control Room Building NOTE: (1) To ascertain the date upon which the consent becomes effective, refer to section 101(9) of the Act. (2) To ascertain the date upon which the consent is liable to lapse, refer to section 99 of the Act.

37 ATTACHMENT A PARISH AUCKLAND LOT 1 DP LOT 3 DP LOT 2 DP LOT 5 DP LOT 2 DP LOT 4 DP PT POR 80 PORS 22/23 89 PT 83 LOT 791 DP LOT 792 DP GGF CROWN LAND LOTS 1, 2, 3 AND 4 DP LOT 1 DP FOLIO/IDENT 1/ LOT 100 DP LOT 1 DP FOLIO/IDENT 1/ LOT 710 DP LOT1 DP FOLIO/IDENT 1/ PORTION 93 OLD SYSTEM PARISH VANE LOT 2 DP (PT POR 67) LOT 1 DP LOT 2 DP LOT 3 DP LOT4 DP POR 56 PT POR 68 LOT 2 DP LOT 1 DP VS 85/163 (250386) PT POR 68 LOT 3A PORS PT POR CL RD PORS 2415 PT LOT 2 DP LOTS 1/3 DP PT PORS 2 & 63 RP 32/81 BK 2612 NO 724 PT POR 67 PT LOT 8 PT POR 1 POR 58 (SPL 49/1) PT 67 PT LOT 6 LOT 71 DP RP 32/56 SUBJ TO TLE & INT IN ROW 2415 POR 48 PTS LOT 13 SEC A CL RD PORS LOT 532 DP PT POR 68 PT LOT 8 PT POR 68 PT LOT 3 PT POR 68 PT LOT 6830 POR 64 RAVENSWORTH EST. LOT 14, 15 DP 6380 LOT 1 DP PORS 16 80/91 101/5 109 PTS 5/ (BEING LOT 6 & PT 7) SUBJ TO TLE LOT 102 DP POR 66 PT POR 67 PT LOT 8 & RP 32/54 PT POR 67 & LOT 9 LOT 9 DP 6830 LOT 182 DP PT LOT 19 DP 6830 LOT 16 DP 6830 LOT 10 DP 6830 LOT 1 DP LOT 71 DP POR 114 POR 61 PT POR 54 LOT 1 DP

38 PORS POR 68 & LOTS 1/2 SEC A SUBJ TO TLE RAVENSWORTH ESTATE PARISH GOORANGOOLA LOT 1224 DP PT LOT 2 DP LOTS 1/3 DP POR 44 53/55 70/ PT 110 RPS 37/19 38/32 LAND DIST SINGLETON LOT 12 SEC A. DP 6830 LOT 17 SEC A DP 6830 GOORANGOOLA RAVENSWORTH EST LOT 4 DP LOT 12 DP GOORANGOOLA RAVENSWORTH ESTATE LOT 4 DP LOT 12 DP GOORANGOOLA RAVENSWORTH ESTATE LOT 2 DP SUBJ TO TLE GOORANGOOLA RAVENSWORTH ESTATE LOTS 3/6 8 SEC A LOT 1 1A SEC B DP 6830 LOT 2 2A SEC B DP 6842 LOT 4 DP LOT 11 SEC A DP 6830 GOORANGOOLA RAVENSWORTH ESTATE LOT 10 SEC A DP 6830 & LOT 1 DP PARISH BROUGHTON PH BROUGHTON PT POR 38 PT POR 38 (BEING LOTS 6/7 & PT LOT 1 BRIDGMAN ESTATE) LOT 52 DP (PT POR 38) SUBJ TO ROW 10 M WIDE LOT 51 DP (PT POR 38) LOT 1/2 6/ /7 120 PTS LOT 2 DP LOTS 2/3 DP LOT 4 (PT POR 38) APPT TO ROW PT POR 38 (LOT 3) LOT 1 DP LOT 20 DP SUBJ TO C'WAY & ROW PORS 11 PT 12 PT LOT 1 DP (RD PER) PARISH DARLINGTON PORS / PT 84 CL RD & ADJ LAND PARISH LEIBEG PORS 8 53 & PT 66 EWC6/1109/1

39 SCHEDULE 2 Red type represents 1998 Modification Blue type represents 2001 Modifcation Green type represents 2002 Modification Pink type represents 2005 s96 (1A) Modification (nb. superceded by subsequent modification) Orange type represents 2005 s96(2) Modification General 1. The Applicant shall carry out the development of the Glennies Creek Coal Mine generally in accordance with Environmental Impact Statement (EIS) dated 20 August 1990 prepared by Dames & Moore in accordance with Section 77(3) of the Environmental Planning and Assessment Act, and certified by Warren Atkinson and supplementary information supplied by the Applicant to the Singleton Shire Council ("the Council") by letters dated 20 November 1990, 19 February 19991, submissions to Commission of Inquiry, the Statement of Environmental Effects in support of a Section 96(2) Application for the Glennies Creek Coal Mine, dated July 1998, prepared by R.W. Corkery and Co Pty Ltd, Statement of Environmental Effects in support of a Section 96(2) application for the Glennies Creek Coal Mine, dated June 2001, prepared by R.W. Corkery and Co Pty Ltd, the Statement of Environmental Effects in support of an application to Modify the Development Consent for the Glennies Creek Coal Mine, dated December 2001, prepared by Mr Bob Corbett, Manager Environmental Services with AMCI Australia Pty Ltd; Letter from Bob Corbett to NPWS/PlanningNSW dated the 23 April 2002 regarding flora and fauna issues; Air Quality Impact Assessment: Glennies Creek Ventilation Shaft dated the 19 April 2002, prepared by Holmes Air Science; Letter from Bob Corbett to EPA/PlanningNSW dated the 15 May 2002 regarding additional information requested on air quality; and Archaeological Assessment prepared by John Appleton dated April 2002; the information provided in support of a Section 96(1A) application, dated January 2005, prepared by Glennies Creek Coal Management Pty Ltd; and the Statement of Environmental Effects in support on an application to modify the Development Consent for the Glennies Creek Colliery, dated November 2005, prepared by Glennies Creek Coal Management Pty Ltd. If there is any inconsistency between the above, either the conditions of this consent, or the most recent document shall prevail to the extent of any inconsistency. Duration 2. This consent shall lapse 21 years from the date of the notification of this development consent or 21 years from the date of issue of a coal lease in respect of this development whichever is the later. Blasting 3. The Applicant shall: a) Not blast during the construction of mine entries within 500 metres of a public road while it is open for traffic unless it has obtained permission of the Council. b) Ascertain from other coal operators their blasting programs and shall refrain from blasting at the same time as other operators. c) Design all surface construction blasts to limit the peak particle velocity at "Dulwich" residence (Residence 2) to a maximum of 2 millimetres per second, and monitor to the satisfaction of the State Pollution Control Commission ("the Commission") the impact of its blasting at "Dulwich". d) In the event of any damage to "Dulwich" arising from such blasting, upon request of the owners, pay the costs of repairs to the dwelling to restore it to its former condition prior to blasting damage. e) Within 5 minutes preceding the detonation of any blast cause a siren to be sounded for 2 minutes as a general warning to those residences or persons within audible range. After the blast the Applicant shall cause the siren to be sounded 3 times. f) i) Carry out all blasting in accordance with EPA requirements; ii) Monitor all surface construction blasts and record the overpressure and peak particle velocity as agreed by the EPA; and iii) Include the results of the monitoring information in the Annual Environmental Management Report. g) Deleted.

40 h) Deleted. i) Deleted. Landscaping 4. a) Within 6 months of the date of granting of this consent or within such further period as the Council agree the Applicant shall submit to the Council for its approval: i) A detailed landscaping plan for planting and establishment of trees and shrubs prior to and during the construction stage, showing existing stands of vegetation and the location of plantings around the surface facilities and the rejects emplacement area. This plan shall incorporate erosion and sedimentation control practices for earthworks associated with the development. ii) Details of treatments related to visual appearance of the structural components of the development including paint colours and specifications for buildings and structures. iii) A comprehensive plan of landscape management, which shall include detailed plans, programmes to be undertaken, maintenance of all landscape works and planting and maintenance of building materials and cladding. b) The Applicant shall carry out the landscaping plans programmes and treatments in accordance with Council's requirements. (c) (d) The Applicant shall, prior to the commencement of construction of the ventilation shaft, prepare a Management Plan to minimise the impacts to the flora species Bothriochloa Biloba. This Plan shall be prepared in consultation with the NPWS and to the satisfaction of the Director-General. The Plan shall include: details about how B. Biloba plants which are not required to be removed for construction of the ventilation shaft will be protected during construction and managed post construction; details of how poles along the route of the power line are to be positioned to avoid the clearing of B. Biloba; details of revegetation program for this species around the ventilation shaft, if viable seed can be obtained from plants on the site; and details of a program to monitor the success of the revegetation program. The results of monitoring are to be reported annually in the AEMR. The Applicant shall ensure measures are adopted to reduce the impact upon River Oak (Casuarina Cunninghamiana) during construction and maintenance of the power line. Visual Amenity 5. The Applicant shall also carry out during the life of the mine the requirements of Council in respect of any supplementary planting and visual amenity enhancement works immediately outside the proposed coal lease area which may be identified by the Council to reduce visual impact of the development in the local area. Noise and Dust 6. i) Deleted. ii) iii) iv) Deleted. Deleted. Where dust deposition rates or concentrations would exceed the Commission's health and amenity criteria submitted by it to the Commission of Inquiry at this dwelling in the opinion of the Commission, the Applicant shall, upon request of the owner, meet the costs of measures required by the Commission to maintain dust deposition rates or concentrations with the Commission's criteria at such dwelling. In the event of acquisition of the dwelling by a coal mining company the requirements of this clause shall cease. v) The Applicant shall prepare and implement a Noise Management Plan, in consultation with the EPA, and to the satisfaction of the Director-General by 31 March 1999 or other such time as agreed by the Director-General. The Applicant shall make copies of the Noise Management Plan available to EPA, Council and the Community Consultative Committee within fourteen days of approval by the Director-General.

41 The Noise Management Plan shall: (i) (ii) (iii) (iv) identify potential noise sources and specify appropriate intervals for noise monitoring to evaluate, assess and report noise emission levels due to construction and normal operations of the mine as determined by the EPA; outline the methodologies to be used, including justification for monitoring intervals, weather conditions, seasonal variations, selecting locations, periods and times of measurements, the design of any noise modelling or other studies, including the means for determining the noise levels emitted by the development; outline measures to be implemented to reduce the impact of noise generated by the works including intermittent, low frequency and tonal noise; and specify measures to be undertaken to document any higher level of impacts or patterns of temperature inversions, and detail actions to quantify and ameliorate enhanced impacts if they occur. vi) The Applicant shall prepare and implement an Air Quality Management Plan, in consultation with the EPA and to the satisfaction of the Director-General by 31 March 1999 or other such time as agreed by the Director-General. The Applicant shall make copies of the Air Quality Management Plan available to the EPA, Council and the Community Consultative Committee within fourteen days of approval by the Director- General. The Air Quality Management Plan shall address all air quality issues associated with the development, including but not limited to the following: (i) (ii) (iii) details of dust suppression measures for all surface facilities, including the use of water trucks, water spraying of activity areas and roads; details of monitoring measures for dust and gas emissions from the ventilation shaft or any other source; and details of actions to ameliorate impacts if they exceed the relevant criteria. vii) The Applicant shall, prior to the commencement of construction of the ventilation shaft, revise the Noise Management Plan to the satisfaction of the Director-General. In addition to the requirements of subclause (v), the Plan shall: identify noise affected properties and the relevant noise limits consistent with the Statement of Environmental Effects, dated December 2001, and a letter prepared by Richard Hegge Associates dated the 19 March 2002; provide details of the measures to mitigate the potential impact from noise during construction of the ventilation shaft and the powerline including those outlined in the Statement of Environmental Effects, dated December 2001; and provide details of the measures to mitigate the potential impact from noise during operation of the ventilation shaft including those outlined in the Statement of Environmental Effects, dated December (viii) (ix) The Applicant shall, prior to the commencement of construction of the ventilation shaft, revise the Air Quality Management Plan to the satisfaction of the Director-General. In addition to the requirements of Condition 6(vi), the Plan shall: identify dust affected properties and the relevant dust limits consistent with the Statement of Environmental Effects, dated December 2001, the Air Quality Assessment dated the 19 April 2002 and the additional information provided by Bob Corbett in a letter to the EPA/PlanningNSW dated the 15 May 2002; provide details of the measures to mitigate the potential impact from dust from the construction of the ventilation shaft and the powerline including those outlined in the SEE; provide details of the greenhouse gas emission monitoring program, reporting results annually in the AEMR; and provide details of the measures to mitigate the long-term impact of dust from the ventilation shaft. The Applicant shall ensure that the noise emissions from the operation of the ventilation shaft shall not exceed the project specific noise limits in Table 1 at any non-mine owned residences, unless a valid private agreement is reached with the individual property owner. Table 1: Project Specific Noise Limits

42 Residence L eq(15 min) db Mordey, Noble 41 Lambkin, Watling, Oxford, G Hall, Proctor, 39 Richards Egan, Payne 36 Notes: 1. The noise emission limits identified above apply under meteorological conditions of: wind speeds up to 3 m/s at 10 metres above ground level averaged over the respective noise measuring T period; and temperature inversion conditions of up to 3 degrees Celsius per 100 metres. 2. These limits do not apply to residences within the Current Zone of Affectation Dulwich and Tisdell. 3. For the purposes of the noise criteria for this condition, 5dBA must be added to the measured level if the noise is substantially tonal or impulsive in nature. Where two or more of these characteristics are present the maximum addition to the measured noise level is limited to 10dBA. 4. Noise from the premises is to be measured or computed at the most affected point on the residential boundary or within 30m of the dwelling where the dwelling is more than 30m from the boundary to determine the compliance for this condition. State Pollution Control Commission Approvals 7. Deleted. Coal Transportation 8. Except for coal and rejects haulage directly across Middle Falbrook Road and any emergency road haulge of coal approved by the Council, the Applicant shall ensure that all product coal is transported by rail. Flood Lighting 9. The Applicant shall: a) take all practicable measures to mitigate off-site lighting impacts from the development; and b) ensure that all external lighting associated with the development complies with Australian Standard AS4282 (INT) 1995 Control of Obtrusive Effects of Outdoor Lighting to the satisfaction of Council, the DPI and the Director-General. Environmental Monitoring - General 10. a) In addition to the specific monitoring requirements in condition 6, the Applicant shall install dust deposition gauges and in each calendar month shall determine the dust deposition rate in grams per square metre per month (gm/sq.m/mth) such that +2gm/sq.m/mth incremental isopleth for dust arising from mining operations is able to be plotted on an annual basis, as defined by the Commission. b) By the end of January 2007, the Applicant shall prepare (and following approval implement) a Noise Monitoring Program for the development, to the satisfaction of the Director-General. The Noise Monitoring Program shall include a noise monitoring protocol for evaluating compliance with the noise criteria in this consent. c) The Applicant shall analyse to the satisfaction of the Commission all waters (other than uncontaminated stormwater) to be discharged from the mining, coal preparation, water storage and reject disposal areas of the mine site. d) The Applicant shall measure and record levels of subsidence to the requirements of the Department of Mineral resources, and report such information to the Department and make copies available to the Council on its request. The Applicant shall make available such information to any landowner within the coal lease area on request from that landowner.

43 e) The Applicant shall on a quarterly basis provide a summary of all the monitoring results to the Council. f) The Applicant shall provide a copy of such results to a landowner or occupier of one of the properties shown in Figure 6.1 (Appendix 1) of the EIS on request. Discharge of Waters 11. The Applicant shall obtain the prior approval of the Commission before discharging any waters other than uncontaminated stormwater from the mine site. Site Water Management Plan 11A. By the end of March 2007, the Applicant shall prepare and subsequently implement a Site Water Management Plan for the development, in consultation with the Department of Natural Resources, and to the satisfaction of the Director-General. This plan must be prepared by a suitably qualified hydrogeologist/hydrologist whose appointment/s have been approved by the Director-General, and shall include: a) a Site Water Balance; b) an Erosion and Sediment Control Plan; c) a Surface Water Monitoring Program; and d) a Groundwater Monitoring Program. 11B. The Water Balance shall: a) prepare a detailed site water balance for the development; b) measure: water use on site; water transfers across the site; water transfers between the site and surrounding mines; c) review the site water balance for the development annually; and d) report the results of this review in the AEMR. 11C. The Erosion and Sediment Control Plan shall: a) be consistent with the requirements of the Department of Housing s Managing Urban Stormwater: Soils and Construction manual; b) identify activities that could cause soil erosion and generate sediment; c) describe measures to minimise soil erosion and the potential for the transport of sediment to downstream waters; d) describe the location, function, and capacity of erosion and sediment control structures; and e) describe what measures would be implemented to maintain the structures over time. 11D. The Surface Water Monitoring Program shall include: a) detailed baseline data on surface water flows and quality in waterbodies that could potentially be impacted by the mine; b) surface water impact assessment criteria; c) a program to monitor surface water flows and quality; d) a protocol for the investigation, notification and mitigation of identified exceedances of the surface water impact assessment criteria; e) a program to monitor the effectiveness of the Erosion and Sediment Control Plan; and f) report the results of this monitoring in the AEMR. 11E. The Groundwater Monitoring Program shall include: a) a program to monitor the volume and quality of ground water seeping into the areas within the Camberwell North Pit and underground mining workings; b) regional groundwater levels and quality in the surrounding aquifers; c) the groundwater pressure response in the surrounding coal measures; and d) report the results of this monitoring in the AEMR. Annual Report 12. a) Within six (6) months of the commencement of the construction of the proposed development, the Applicant shall ascertain the requirements of the Director of Planning ("the Director") in relation to an annual report to be submitted to the Director, the Commission and the Council in respect of the performance of the development. The

44 Applicant shall present the annual report in the form required by the Director. Each report shall be in respect of the calendar year ending 31 st December and each report shall be submitted by 31 st March of the following year. The first report is to be submitted in The Applicant shall agree to the Council making the reports publicly available. b) The Applicant shall, throughout the life of the mine and for a period of at least three years after the completion of the mining, prepare and submit an Annual Environmental Management Report (AEMR) to the satisfaction of the Director-General. The AEMR shall review the performance of the mine against the conditions of this consent and other licences and approvals relating to the mine. To enable ready comparison with the EIS s predictions, diagrams and tables, the report shall include, but not be limited to, the following matters: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) an annual compliance audit of the performance of the project against conditions of this consent and statutory approvals; a review of the effectiveness of the environmental management of the mine in terms of EPA, DLWC, DMR and Council requirements; results of all environmental monitoring required under this consent or other approvals, including interpretations and discussion by a suitably qualified person; a listing of any variations obtained to approvals applicable to the subject area during the previous year; the outcome of the water budget for the year, the quantity of water used from water storages and details of discharge of any water from the site; rehabilitation report; environmental management targets and strategies for the next year; and provide an annual evaluation of the feasibility of methane drainage and reuse. c) In preparing the AEMR, the Applicant shall: (i) (ii) (i) consult with the Director-General during preparation of the each report for any additional requirements; comply with any requirements of the Director-General or other relevant government agency; ensure that the first report is completed and submitted within 12 months of commencement of construction works associated with the highwall entry access. Environmental Officer The Applicant shall ensure that copies of each AEMR are submitted at the same time to the Department, DMR, EPA, DLWC, Council and the Community Consultative Committee, and made available for public information at Council within fourteen days of submission to these authorities. 13. The Applicant shall employ or contract the services of an Environmental Officer whose qualifications are acceptable to the Department of Mineral resources for the proposed development to be responsible for ensuring that all environmental safeguards proposed for the development and as required by the consent and other statutory approvals are enforced and monitored from the commencement of construction. Groundwater 14. a) The Applicant shall upon request of a landowner provide an alternative source of water supply and/or pay compensation in respect of loss of groundwater which, on the basis of monitoring data, is attributable to the underground mine workings. In the event that the Applicant and a landowner are unable to agree upon the adequacy of replacement of water and/or compensation, the Minister shall determine the matter, in so doing may refer the dispute to a Commissioner of Inquiry and after receiving the Commissioner's recommendations. b) The Applicant shall install a minimum of two piezometers within the alluvium adjacent to Glennies Creek and one deep piezometer into the Permian coal measure sequence beneath the Glennies Creek alluvium at locations approved by the Department of Water Resources prior to installation. c) The Applicant shall install the piezometers, referred to in subclause (b) herin, at least 12 months prior to the commencement of secondary mine workings beneath the alluvium in

45 order to obtain baseline water level and chemistry data. Piezometers are to be fitted with continuous data loggers in order to monitor water level fluctuations so that sudden events can be recorded. d) The Applicant shall measure and record electrical conductivity (EC) of groundwater from each piezometer four times per year with a full analysis (EC, ph, Alkalinity, major anions and cations) annually. e) The Applicant shall submit a report annually to the Department of Water Resources including groundwater monitoring data and water level fluctutations and provide, on request of a landowner, copies of such report. Station Creek Diversion 15. The Applicant shall consult with the Department of Water Resources and the Soil Conservation Service and meet their requirements for the design, construction and maintenance of any diversion of Station Creek associated with the development. Financial Contributions 16. a) In addition to the Section 94 contributions in respect of road works, the Applicant shall pay to the Council those additional financial contributions made necessary by the development, not exceeding $500,000 pursuant to Section 94 of the Environmental Planning & Assessment Act, 1979, being relevant to a planning purpose related to the subject development and be reasonable applied. b) IN the event that the Applicant and the Council cannot agree on the amount of such contributions, the Minister shall determine the amount, in doing so the Minister may refer the dispute to a Commissioner of Inquiry for the Commissioner's recommendations. Rental Housing 17. The Applicant shall liaise with the Council to monitor local housing demand during the construction stage of the project and, in the event of a shortage of rental accommodation provide additional temporary accommodation facilities for use by its construction workforce in accordance with the Council's requirements. Road Works 18.1 The Applicant shall prior to the commencement of Stage 1 of the mine: a) Upgrade and realign Stony Creek Road between Bridgman Road and Middle Falbrook Road with a bitumen sealed pavement seven (7) metres to Council's reasonable requirements, at the Applicant's cost. b) Upgrade Middle Falbrook Road from its intersection with Stony Creek Road to the proposed mine entrance by widening and resealing the existing bitumen pavement to six (6) metres to Council's reasonable requirements at the Applicant's cost. c) Deleted. d) Design and construct the intersection of Bridgman Road/Stony Creek Road and the intersection of Stony Creek Road/Middle Falbrook Road being to Council's reasonable requirements, at the Applicant's cost. e) Strengthen and construct the intersection of the proposed haul road with Middle Falbrook Raod to a bitumen sealed or concrete standard either side of Middle Falbrook Road, install stop signs, floodlighting and heavy vehicle crossing warning signs erected at the Middle Falbrook Road approaches to Council's reasonable requirements. Completion of this work may be postponed, in the event of a temporary closure of the Nundah rail crossing, but shall be completed prior to the re-opening of the crossing. f) Deleted. g) Negotiate with the Council to provide bank bond not exceeding $300,000 to ensure that any road damage caused as a result of construction traffic associated with the proposed mine is restored by the Applicant to the requirement of the Council. h) Pay to the Council an amount of $70,000 to be applied to the upgrading of Bridgman Road No local roads under the care and control of the Council shall be used by heavy traffic associated with the proposed development without the express written approval of the Council The Applicant shall pay any annual contribution to Singleton Shire Council to be applied to road maintenance of the Middle Falbrook, Stony Creek and Bridgman Roads. The contribution shall be $ 22,000 in 1991 dollars CPI indexed from the date of this consent. The contribution shall be first paid in the year following the commencment of Stage I of the mine.

46 18.3A. The Applicant shall pay reasonable contributions to Council for the ongoing maintenance of Forest Road, to the satisfaction of the Director-General In relation to a dispute between the Council and the Applicant arising under this condition, the Minister shall determine the matter. Dust Suppression 20. The Applicant shall take all reasonable steps in accordance with the procedures outlined in the EIS necessary to minimise the emission of dust from all activities associated with the development and in accordance with the Commission's requirements, to the satisfaction of the Director-General Disputes 21. In the event that the Applicant and Council or a government body other than the Department cannot agree on the specification or the requirements applicable under this consent, the matter shall be referred by either party to the Director-General or if not resolved, to the Minister, whose determination of the disagreement shall be final and binding on the parties. A.J & M.A. Andrews - Compensation Arrangements 22. Deleted Operating Hours 23. The Applicant shall not transport coal by truck within the mine site from the Barrett seam entry nor transport rejects to the reject disposal area, nor work with scrapers or bulldozers or similar machinery on the emplacement area during the hours of 10.00pm to 7.00am unless otherwise approved by the Commission after its consideration of monitoring data for the mine in relation to noise levels at residences referred to in condition 6. Approvals 24. The Applicant shall forward to the Council copies of all environmental and planning approvals of authorities related to the development. Glennies Creek 25. In the event of impacts such as bank erosion, or channel obstruction along Glennies Creek due to changes in the hydrology caused by underground mining, the Applicant shall undertake at its cost, remedial measures in accordance with the requirements of the Department of Water Resources. Rising Salt 26. In the event of rising salt occuring within the proposed coal lease area by reason of changes to the hydrology caused by underground mining, the Applicant shall at the request of the landowner affected, undertake at its cost remedial measures in accordance with the requirements of the Department of Water Resources. Department of Education Land 27. Deleted. 28. (a) In the event that a landowner or occupier considers that noise, vibration and/or dust from the project at their dwelling(s) is in excess of the relevant criteria the landowner may make a written request to the Director-General for an independent investigation. If the Director-General, in consultation with the EPA and the Applicant, is satisfied that an investigation is required, the Applicant shall: (i) appoint a qualified independent person or team to undertake direct discussions with the landowner or occupier affected to ascertain their concerns and to plan and implement an investigation to quantify the impact and determine the sources of the effect; (ii) bear the costs of the independent investigation and make available plans, programs and other information necessary for the independent person to form an

47 appreciation of the past, present and future works and their effects on noise and/or dust emissions. The investigations shall be carried out in accordance with a documented Plan. The Plan shall be designed and implemented to measure and/or compute (with appropriate calibration by measurement) the relevant noise and/or dust levels at the complainants residence emitted by the development. The independent person or team, the Plan and the timing of its implementation shall be approved by the Director-General in consultation with the EPA, the affected landowner or occupier and the Applicant. The independent person or team shall report directly to the Director-General, the Applicant and the landowner or occupier on a quarterly basis. Further independent investigations shall cease if the Director-General, in consultation with the EPA, is satisfied that the relevant approval levels are not being exceeded and are unlikely to be exceeded in the future. (b) If the results of the independent monitoring referred to in sub-clause (a) above indicate that relevant levels for noise and/or dust are being exceeded the Applicant shall implement reasonable mitigation measures as directed by the Director-General in consultation with the EPA. 29. The Applicant shall notify the Director-General and Council at least one month prior to the commencement of secondary workings and coal processing operations at the mine. 30. The applicant shall submit for the approval of the Director-General a compliance report detailing compliance with all relevant conditions by 31 March 1999 or other such time as agreed by the Director-General. The compliance report should include: (i) (ii) the dates of submissions of the various studies and/or requirements of various relevant conditions, and of their approvals and terms of approvals; and action taken or proposed to implement the recommendations made in the terms of approvals and/or studies. 31. At 5, 10 and 15 year periods after commencement of mining pursuant to this consent and any additional periods as the Director-General may direct, the Applicant shall conduct an environmental audit of the mining and infrastructure areas of the development and submit a report to the Director-General who shall provide a copy to the Council. The audit shall be carried out at the Applicant s expense and be conducted by a duly qualified independent person or team approved by the Director-General in consultation with the Council. The Director-General may, after considering any submission made by Council on the report, notify the Applicant of the Director-General s reasonable requirements with regard to any recommendations in the report. The Applicant shall comply with those reasonable requirements within such time as the Director- General may reasonably require. 32. (a) The Applicant shall establish a Community Consultative Committee in consultation with Council and determine the date of its first meeting in agreement with Council. Selection of representatives shall be coordinated by Council and the appointment of an independent Chairperson shall be to the satisfaction of Council. The Committee shall include two representatives from the Applicant (including the Environmental Officer), two community representatives and Council. Representatives from relevant government agencies (including DUAP) may be invited to attend meetings of the Committee as required. The Committee may make comments and recommendations about the implementation of the proposal which shall be considered by the Applicant. The Applicant shall at its own expense: (i) provide appropriate facilities for all meetings of the Committee; (ii) provide to the Committee regular information on the progress of the work and monitoring results; (iii) promptly provide to the Committee such other information as the chairperson of the Committee may reasonably request concerning the environmental performance of the development; and (iv) provide reasonable access for site inspections by the Committee. The Applicant shall establish a trust fund to be managed by the Chair of the Committee to facilitate functioning of the Committee, and pay $2000 per annum to the fund for the duration of the mining operations. The payment shall be indexed

48 according to the Consumer Price Index at the time of payment. The first payment shall be made by the date of the first Committee meeting. (b) The Applicant shall, in consultation with Council, ensure that the local community is kept informed by way of local newsletters, leaflets, newspaper advertisements or community notice boards as appropriate, of the progress of the works, including prior notice of: (i) (ii) (iii) (iv) (v) (vi) (vii) the nature of the works proposed for the forthcoming period; hours of construction; a 24 hour contact telephone number; any traffic disruptions and controls; proposed blasting program and changes to program; work required outside normal working hours; and individual s rights under the conditions of this consent. (c) The Applicant shall record details of all complaints received in an up to date log book and ensure that a response is provided to the complainant within 24 hours. The Applicant shall make available a report on complaints received to the Community Consultative Committee, all relevant government agencies and the Council upon request, and include a summary in the Annual Environmental Management Reports. Long-term Highwall Stability 33. The Applicant shall commission a geotechnical assessment of the highwall area to assess its long term stability, within three months of the date of this development consent to the satisfaction of the Department of Mineral Resources. 34. The Applicant shall ensure that appropriate measures are adopted to address the outcomes of the assessment undertaken in condition 33 above to the satisfaction of the Department of Mineral Resources. This may include but shall not be limited to: (a) a strategy for supporting the highwall and access roadways in the long term; (b) a timetable for any repair and support works required; and (c) a monitoring plan to detect any changes in highwall and roadway stability. Statutory Requirements 35. (a) The Applicant shall ensure that all statutory requirements including but not restricted to those set down by the Local Government Act 1993, Protection of the Environment Administration Act 1991, Protection of the Environment Operations Act 1997, Rivers and Foreshores Improvement Act 1948, Water Act 1912, National Parks and Wildlife Act 1974, and all other relevant legislation, Regulations, Australian Standards, Codes, Guidelines and Notices, Conditions, Directions, Notices and Requirements issued pursuant to statutory powers by the Singleton Shire Council, Environment Protection Authority, Department of Mineral Resources, National Parks and Wildlife Service, Department of Land and Water Conservation, Roads and Traffic Authority, NSW Agriculture, and NSW Fisheries, are fully met. (b) (c) Detailed plans and specifications relating to the design and construction of each structural element associated with the proposed development are to be submitted to the Principal Certifying Authority prior to the construction of each particular building or structure. Such plans and specifications must be accompanied by certification provided by a practicing professional structural engineer or an accredited certifier certifying the structural adequacy of the proposed building design and compliance with the Building Code of Australia. Upon completion of building works and prior to the issue of an occupation certificate, a certificate/s prepared by a suitably qualified person or a compliance certificate/s issued by an accredited certifier, is to be submitted to the Principal Certifying Authority certifying that the following building components, where relevant, have been completed in accordance with approved plans and specifications: footings; concrete structures, including ground floor and any subsequent floors, retaining walls and columns; framing and roof structure; fire protection coverings to building elements required to comply with the Building Code of Australia; and

49 Aboriginal Archaeology mechanical ventilation. The certificate/s shall demonstrate at what stage of construction inspections were undertaken. 36 (a) The Applicant shall prepare an Archaeology and Cultural Management Plan to protect and preserve the identified archaeological site GC-1 (as described in the SEE dated December 2001). The Plan shall be prepared in consultation with Wannaruah Local Aboriginal Land Council, the Upper Hunter Wonnarua Council Inc, Wannaruah Nations and NPWS, and to the satisfaction of the Director-General prior to the commencement of construction of the ventilation shaft. The Plan shall include: details of measures to protect and preserve the identified archaeological site GC- 1; details of measures to assist the Aboriginal community to maintain and manage cultural heritage; and details of consultation undertaken in the preparation of this Plan. (b) (c) If, during the course of construction of any surface facilities, or mining in the DA area, the Applicant becomes aware of any heritage or archaeological material not previously identified, all work likely to affect the material shall cease immediately and the relevant authorities consulted about an appropriate course of action prior to the recommencement of work. The relevant authorities may include Wannaruah Local Aboriginal Land Council, the Upper Hunter Wonnarua Council Inc, Wannaruah Nations, NPWS or the NSW Heritage Office. Any necessary permits or consents shall be obtained and complied with prior to recommencement of work. The Applicant shall invite a representative from the Wannaruah Local Aboriginal Land Council, the Upper Hunter Wonnarua Council Inc and Wannaruah Nations to participate in the monitoring of topsoil stripping during construction of the ventilation shaft, and to carry out an assessment and retrieval of artefacts prior to the development proceeding. Results of monitoring shall be reported in the AEMR. Notes This approval does not relieve the Applicant of the obligation to obtain any other approval which may be required under the: 1. Clean Air Act 1961, Clean Waters Act 1970 and Noise Control Act 1975; 2. Local Government Act 1919, as amended and the ordinances made thereunder (including approval of building plans); 3. National Parks and Wildlife Act 1974; 4. Dams Safety Act 1978; 5. Rivers and Foresehores Improvement Act 1948; 6. Water Act 1912; or any other Act. All references within this consent to the State Pollution Control Commission should be read as references to the Environment Protection Authority and all references within this consent to the Department of Water Resources should be taken to read the Department of Land and Water Conservation.

50 Annex B Geotechnical (subsidence) Assessment, Strata Engineering 2008

51 STRATA ENGINEERING (Australia) Pty Ltd Consulting and Research Engineering A.B.N April 2008 Mr D. Webb Technical Services Manager Integra Coal Operations 653 Bridgman Road SINGLETON NSW 2330 Report GLC-17 Dear David, RE: Preliminary Geotechnical Assessment of a Potential Cut and Flit Operation, Panels West 1 and North 2, Integra Underground Mine - Amended 1.0 Introduction This report summarises the findings of a geotechnical study conducted to assess (i) the minimum stable pillar sizes and (ii) the likely nature of subsidence impacts for a cut and flit ( place changing ) operation in an area to the south-west of the North-West Mains, see Figure 1, which also shows depth contours for the target Middle Liddell Seam. These two issues are addressed in turn. A fundamental input assumption is that all panels will be first workings only; no secondary extraction will be conducted. This investigation has utilised the following main sources of information supplied by the mine: i) A pdf-file showing the proposed general mine plan (i.e. GLP0098R1 Plan 6 (1).pdf). ii) iii) Geological logs from relevant boreholes, some of which represent useful sources of geotechnical data. Review of earlier Strata Engineering reports and experiences in pillar design and place changing, including locally at Integra. 2.0 Minimum Stable Pillar Sizes It is understood that the proposed panels considered in this assessment are required to remain long-term stable with minimal surface subsidence ( 20mm). 2.1 Design Methodology The empirical design methodology used herein will consider each of the following: Pillar Factor of Safety (FoS). Pillar strength. SUITE 7, LEVEL 1, PACIFIC HIGHWAY PO BOX 724 CHARLESTOWN NSW 2290 TEL: (02) FAX: (02) nsw@strataengineering.com.au

52 18 April 2008 Pillar loading. The role of pillar width to height (w/h) ratio. Likely surface subsidence associated with the preliminary layouts. Floor stability. 2.2 Pillar Factor of Safety The assessment of pillar stability requires the determination of pillar load, pillar strength and an appropriate Factor of Safety (FoS), which is defined as: Strength FoS= [1] Load The FoS concept is commonly used when the issue of potential pillar collapse or failure is being assessed, as it can generally be related to the probability of such failure occurring. The empirical pillar Factor of Safety approach is considered to represent the most reliable methodology available for analysing the long-term stability of regular arrays of pillars. The approach has involved the development of pillar strength formulae using statistical backanalysis techniques for a database of failed and unfailed pillar (i.e., panel) case histories. The initial research into the development of the strength formulae was conducted by the South African Coal industry and has lead to the development of the power law formulae presented in Salamon et al, 1996, which is based on Australian coal industry experience. The probability of pillar failure associated with the abovementioned strength formulae is summarised in Table 1. Table 1: Failure Probability Associated with Salamon et al, 1996 Power Law Formulae Pillar FoS Probability of Failure (frequency of panel failures) Probability of Stability (Frequency of stable panels) (8 in 10) 0.2 (2 in 10) (5 in 10) 0.5 (5 in 10) (1 in 10) 0.9 (9 in 10) (5 in 100) 0.95 (95 in 100) (2 in 100) 0.98 (98 in 100) (1 in 100) 0.99 (99 in 100) (1 in 1,000) (999 in 1,000) (1 in 10,000) (9,999 in 10,000) (1 in 100,000) (99,999 in 100,000) (1 in 1,000,000) (999,999 in 1,000,000) 2.3 Pillar Strength The general strength formula for pillars with w/h ratios <5 is defined by Salamon et al, 1996 as: 0.51 (w mθ) σ p = 8.6 [2] 0.84 h and for pillars with w/h ratios 5, the following formula is recommended: STRATA ENGINEERING (Australia) Pty Ltd 2

53 18 April Θ w m σ p = [3] w h 5h m where w m h Θ = minimum pillar width (m) = mining height (m) = is a dimensionless aspect ratio factor 2.4 Pillar Loading Although it is considered somewhat conservative, given the width to depth ratio (W/H) of the panels in question (i.e., 0.22 to 0.67), it is assumed that the pillars will be subjected to full tributary area loading, which states that each pillar carries a proportionate share of the full overburden load. The tributary area load acting on the pillars can be calculated using the following formula: (w m + w r)(lp + w r)ρgh T = [4] w l m p where T = pillar load (MPa) w m = pillar width (m) l p = pillar length (m) w r = roadway width (m) H = cover depth (m) ρ = density of rock (taken as 2.5 t/m 3 ) g = gravitational acceleration (10 m/s 2 ) 2.5 Pillar Width to Height Ratio At low w/h ratios (<3) overloaded pillars tend to fail in a brittle, uncontrolled fashion, whereas at higher ratios (>4) the coal pillars demonstrate a more plastic form of deformation: significant displacement may still take place, in the form of convergence and rib spall, but the confined core tends to retain its load carrying ability, generally without failing in the commonly understood sense. This was illustrated by Das (1986) in laboratory tests on Indian coals, see Figure 2a. It was also shown by Madden (1987) in tests on sandstone discs during the derivation of the squat pillar formula (Madden used sandstone because coal samples are more heterogeneous and difficult to prepare), Figure 2b. Note that the shapes of the stress-strain curves are similar at equivalent w/h ratios for the two materials. Furthermore, back analysis of the results of in situ pillar tests from South Africa indicates that the post-peak modulus (stiffness) of actual pillars becomes positive (suggesting strain hardening behaviour) once the w/h ratio exceeds 4.1, as seen in Figure 3. International coal mining industry experience confirms the importance of pillar w/h ratio to stability; incidences of collapse are concentrated at low ratios. Width to height ratio, applied in conjunction with other criteria (e.g. FoS), is therefore a useful indicator of design reliability. This is illustrated in Figure 4 (Hill, 2005), which presents the FoS versus pillar w/h ratio relationship for a combined database of failed South African and Australian bord and pillar panels, plus a database of highwall mining (CHM) failed pillar cases (UNSW, 1995, Madden and Hardman, 1992, Strata Engineering, 2001). STRATA ENGINEERING (Australia) Pty Ltd 3

54 18 April 2008 The three databases are highly complimentary in nature, reflecting the range of experiences of their respective industries. For example, the Australian data provides insight with regard to pillar behaviour at relatively high w/h ratios and furnishes the failed case at the w/h ratio of 8. In contrast, the South African industry has traditionally been characterised by geometries involving lower w/h ratios, which is partly reflected in the maximum w/h ratio of only 3.7 for a South African failed case. Similarly, CHM pillar cases cover the lower end of the range of w/h ratios, from 0.6 to 1.4. There are no failed cases in this combined South African and Australian database with a w/h ratio of greater than 8, even at a very low Factor of Safety, and there is only one failed case at a w/h ratio of greater than 5. The highest Factor of Safety assigned to a bord and pillar collapse is 2.1 and this was associated with a w/h ratio of only 2.2. Although there are failed CHM pillars with Factors of Safety of >2, all of them have pillar width to height ratios of <2. A limit envelope can be defined for the database of failed cases, illustrated by the curve and given by the following equation: w/h ratio = e *(Factor of Safety) [5] Beyond this envelope, there is no precedent for failure within these databases. It is worth noting that the exclusion of the CHM pillar data would not materially change the shape of this limit envelope. In the case of long life (>5 years) pillars, if it is reasonable to assume that the panel is, or will at some point in the future, be subjected to full tributary area loading, then it is generally considered prudent to design outside the envelope defined by this equation, even though there are many examples of stable pillars that fall within it. Furthermore, in the case of important long-life pillars (e.g., main headings and barriers), it is considered prudent to allow an additional margin beyond this envelope. A margin of 20% is the generally suggested minimum, which is defined by the second (i.e., outer) curve in Figure 4 and the following equation: w/h ratio = e *(Factor of Safety) [6] In the case of pillars required for permanent protection of key surface features, an ongoing broader review of coal pillar behaviour suggests, even in extreme circumstances involving unusually weak floor, coal and / or roof, the potential for failure can be effectively excluded by designing to a minimum FoS of 2.11 (i.e., to a failure probability of 1 in a million), coupled to a minimum w/h ratio of 5. Note that in this context, failure means pillar collapse due to the failure of any element (i.e., roof, floor or the pillar itself) in the overall structural system. 2.6 Likely Surface Subsidence Due to Compression of the Pillars, Roof and Floor The subsidence at the surface above the pillars is estimated to equal the expected elastic compression of the pillars and the immediate roof and floor strata. The elastic compression of the pillars can be estimated based on solid mechanics principals and Boussinesq's stress bulb theory as follows (Das, 2006). STRATA ENGINEERING (Australia) Pty Ltd 4

55 18 April 2008 For pillar compression, the following is assumed: P pillar σ h ch = [7] E where σ ch h E = vertical stress change (MPa) = pillar height (m) = Young's Modulus of pillars (MPa) For floor/roof compression, the following is assumed: P floor / roof 2 σchw mι(1 ν ) = [8] E where w m = proposed pillar width (m) ι = influence function based on width/length (w/l) ratio (1 in this case) E = Young's Modulus of roof/ floor material (MPa) υ = Poisson s ratio (assumed 0.3) The change in vertical stress on the pillars can be estimated as follows: 2.7 Floor Stability σ ch = Tributary Area Stress VirginStress [9] The South African and Australian databases from which the UNSW coal pillar design formulae were derived cover a broad range of roof and floor materials, including mudrocks, coal, siltstone and sandstone. Therefore, these materials and the variability in coal pillar strength that may be associated with them are implicitly recognised and catered for within the Factor of Safety approach. The uncertainty associated with the natural variability in coal measures strata usually prohibits design to a low FoS (e.g. a FoS of 1.01 is generally unacceptable, even though strength nominally exceeds stress). Geological variability partly accounts for the scatter in the failed pillar cases population and necessitates design FoS values of typically >1.5, equivalent to low probabilities of failure. Coal pillar failures historically associated with weak floor can often be explained in terms of the FoS plus w/h ratio criteria outlined previously. Even in known very weak floor environments, incidences of pillar collapse are concentrated at low w/h ratios (Latilla, 2004). Nonetheless, specific consideration should be given to the application of these pillar design formulae in the presence of extremely weak roof and floor materials. The stability of the floor beneath the pillars under final loading conditions can be assessed analytically based on Terzhagi s bearing capacity equation (Das, 2006) using the following formula: UCS q = 5.7 [10] 2 where q = Ultimate Bearing Capacity UCS = Unconfined Compressive Strength (MPa) STRATA ENGINEERING (Australia) Pty Ltd 5

56 18 April 2008 Pells et al (1998) suggests that the bearing capacity may be assumed to be 3 to 5 times its UCS, indicating a similar (slightly higher) bearing capacity range to that provided by the Terzhagi s equation. 2.8 Suggested Pillar Design Criteria For long-term pillar design involving the protection of sensitive surface features, the following stability criteria are suggested: a minimum FoS of 2.11 (i.e. 1 in 1 million probability of failure), and a minimum pillar w/h of 5 (i.e. squat pillars). In this specific case, given the aim of achieving negligible subsidence, the pillar design has also been amended where necessary, to maintain a maximum expected subsidence, due to elastic system compression, of 20mm. The suggested design criteria have been compared to a design based simply on the pillar width being one tenth of the depth (i.e. as per Subdivision 5, Section 88 of the Coal Mine Health and Safety Regulation, 2006). These criteria are regarded as optimising resource recovery while maintaining long-term stability and providing protection for key surface features. 3.0 Pillar Analysis and Results The following general input parameters have been applied in this study: Maximum roadway width is 5.5 m. Maximum mining height is 2.8 m Coal elastic modulus is 3 GPa. Floor elastic modulus is 10 GPa. Roof elastic modulus is 15 GPa. Based on the sonic velocity log of borehole DH212, a UCS of 44.3MPa for the floor strength. The minimum and maximum panel depths shown in Table 2 have been applied. Table 2: Panel Depth Ranges Minimum Depth [m] Maximum Depth [m] West North Based on the above input parameters and the suggested design standards, the dimensions given in Table 3 are recommended for the cut and flit panels in question. It is evident from Table 3 that as the depth of cover (DoC) increases, as Panel North 2 advances, it is necessary to increase the pillar length, from a DoC of 350m onward, in order to ensure that the maximum expected elastic convergence remains below 20mm. STRATA ENGINEERING (Australia) Pty Ltd 6

57 18 April 2008 Table 3: Pillar Dimensions for Cut and Flit Panels Using the Design Criteria Suggested in Section 2.8 Panel Pillar Width (centres) [m] Pillar Length (centres) [m] FoS w/h Ratio Total Pillar Elastic Deformation [mm] Extraction Ratio [%] West North 2 (up to 350m DoC) North 2 (355 to 385m DoC) Based on the results presented in Tables 3, the following points are of note: The extraction ratio based on the preliminary criteria suggested by Strata Engineering (SEA) averages 30.28%. Expected elastic deformation is below 20mm. The average pillar FoS is 2.14 and the average width to height ratio is 9.6. In all of these cases, the pillars are considered effectively indestructible; there is no known precedent for failure of pillars with width to height ratios greater than 8. Regarding the floor stability, a minimum design Factor of Safety of 2.0 is suggested for mine floor bearing capacity failure. The UCS value of 44.3 MPa derived from borehole DH212 results in a minimum floor bearing FoS of 9.5, suggesting that a bearing failure mechanism (pillar punching) is practically impossible. However, given that the information regarding the floor characteristics is limited, some coring and floor testing would be appropriate. 4.0 Concluding Remarks and Recommendations The following concluding remarks are made: The average UCS value of 44.3 MPa derived from the DH212 borehole sonic log suggests a minimum floor bearing FoS of 9.5. Based on this result it is assessed that a bearing failure mechanism (pillar punching) is practically impossible. As the probability of pillar failure is very low, surface subsidence is expected to be limited to that resulting from elastic compression of the coal pillars and the surrounding roof and floor strata, which is expected to be below 20mm. If you require any further information or wish to discuss the contents of this draft report then please do not hesitate to contact me. Yours sincerely, STRATA ENGINEERING (Australia) Pty Ltd Johann van Wijk Senior Geotechnical Engineer STRATA ENGINEERING (Australia) Pty Ltd 7

58 References 18 April 2008 Bieniawski, Z. (1974). Geomechanics Classification of Rock Masses and its Application in Tunnelling. Proceedings of the 3rd International Congress on Rock Mechanics, ISRM, Denver, Vol. 11A, pp Coal Mine Health and Safety Regulation (2006), New South Wales No 783. Das, B.M. (2006). Principles of Geotechnical Engineering (6 th Edition), Chris Carson. Das, M.N. (1986). Influence of Width to Height Ratio on Post-failure Behaviour of Coal. International Journal of Mining and Geological Engineering, 4: Hill, D. (2005). Coal Pillar Design Criteria for Surface Protection. Coal 2005, Brisbane April Latilla, JW (2004). Influence of Weak Floor on the Stability of Pillars in Southern African Collieries. MSc Thesis. University of the Witwatersrand, South Africa. March Mark, C. (1999). Application of the CMRR to Extended Cuts. Mining Engineering, April, pp Madden, BJ (1987). Coal Pillar Design Can Increased Extraction be Achieved Safely? Mine Safety and Health Congress, Johannesburg. Madden, BJ and Hardman, DR (1992). Long Term Stability of Bord and Pillar Workings. Proceedings of the Symposium on Construction over Mined Areas, Pretoria. Pells, P.J.N., Openshaw, P., Love, A. and Pederson, I.S. (1988). Investigation and Backfilling of Early Workings, Yard Seam, for Construction of High Rise Building, Burwood St. Newcastle. Proceedings: Conference on Buildings and Structures Subject to Mines Subsidence, Institute of Engineers, Maitland. Salamon, M.D.G., Galvin, J.M., Hocking, G. and Anderson, I. (1996). Coal Pillar Strength from Back-Calculation. Strata Control for Coal Mine Design, UNSW. Final Project Report, No: RP 1/96. Joint Coal Board. Strata Engineering (2000), A Review of the Geotechnical Design Aspects Highwall Mining Based on a Back-Analysis of Australian Experiences. Strata Engineering Report No RCH/1 to Roche Mining. Strata Engineering (2006), Preliminary Geotechnical Assessment of a Potential Cut and Flit Operation, Integra Underground Mine. Strata Engineering Report No GLC/15 to Integra Coal Operations. University of New South Wales (1995). Roadway and Pillar Mechanics Workshop - Stage 2 : Design Principles and Practice (Course Notes). STRATA ENGINEERING (Australia) Pty Ltd 8

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60 Axial Stress (MPa) Axial Strain (x10-3 ) Figure 2a: UCS Test Results on Coal Samples (Das, 1986) 8 Axial Stress (MPa) Axial Strain (x10-3 ) Figure 2b: UCS Test Results on Sandstone Samples (Madden, 1987) Engineer: J.J. van Wijk Client: Integra Underground Mine R GLC-17 Drawn: J.J. van Wijk Title: Laboratory Test Results on Sandstone and Coal Date: Samples for a Range of Width to Height Ratios STRATA ENGINEERING (Australia) Pty Ltd Scale: NTS Figure No: 2a, b

61 0.0 w/h Ratio Post Peak Modulus (GPa) When w/h = 4.1, pillar post-peak modulus is positive E p = Ln(w/h) R 2 = Engineer: J.J. van Wijk Client: Integra Underground Mine R GLC-17 Drawn: J.J. van Wijk Title: Variation of Pillar Post-Failure Modulus with Date: Increasing Width to Height Ratio STRATA ENGINEERING (Australia) Pty Ltd Scale: NTS Figure No: 3

62 10 Australian Failed Highwall Mining Cases Width to Heigh ht Ratio (w/h) South African Failed Cases (Madden and Hardman, 1992) Australian Failed Cases (UNSW, 1995) Limit Envelope of Failed Cases Design Envelope 2 1 y = 22.43e -1.16x y = 26.91e -0.97x Factor of Safety (FoS) Engineer: J.J. van Wijk Client: Integra Underground Mine R GLC-17 Drawn: J.J. van Wijk Title: Database of Failed Pillar Cases Showing Date: Proposed Design Line (Hill, 2005) STRATA ENGINEERING (Australia) Pty Ltd Scale: NTS Figure No: 4