Independent Environmental Audit

Transcription

1 Bengalla Mining Company Pty Limited 30-Dec-2013 Independent Environmental Audit Bengalla Mine

2 AECOM Independent Environmental Audit Independent Environmental Audit Bengalla Mine Client: Bengalla Mining Company Pty Limited ABN: Prepared by AECOM Australia Pty Ltd 17 Warabrook Boulevard, Warabrook NSW 2304, PO Box 73, Hunter Region MC NSW 2310, Australia T F ABN Dec-2013 Job No.: AECOM in Australia and New Zealand is certified to the latest version of ISO9001, ISO14001, AS/NZS4801 and OHSAS AECOM Australia Pty Ltd (AECOM). All rights reserved. AECOM has prepared this document for the sole use of the Client and for a specific purpose, each as expressly stated in the document. No other party should rely on this document without the prior written consent of AECOM. AECOM undertakes no duty, nor accepts any responsibility, to any third party who may rely upon or use this document. This document has been prepared based on the Client s description of its requirements and AECOM s experience, having regard to assumptions that AECOM can reasonably be expected to make in accordance with sound professional principles. AECOM may also have relied upon information provided by the Client and other third parties to prepare this document, some of which may not have been verified. Subject to the above conditions, this document may be transmitted, reproduced or disseminated only in its entirety. Revision B 30-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

3 AECOM Independent Environmental Audit Quality Information Document Independent Environmental Audit Ref Date Prepared by Reviewed by 30-Dec-2013 Jessica Miller and Kate Michelmore Ian Richardson Revision History Revision Revision Date Details Name/Position Authorised Signature A 1-Nov-2013 Draft for client review Ian Richardson - Associate Director - Environment B 30-Dec-2013 Final Ian Richardson Associate Director - Environment Revision B 30-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

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5 AECOM Independent Environmental Audit Table of Contents Executive Summary i 1.0 Introduction Background Site Description Scope of Work Audit Approach Limitations of the Audit Report Structure Documents Reviewed Environmental Compliance Development Approval 211/93 (as modified Mod 4) Environmental Protection Licence Mining Tenements Environmental Impact Statement for Bengalla Open Cut Mine (November, 1993) Bengalla Mine Development Consent Modification: Environmental Assessment (Hansen Bailey, 2010) Bengalla Mine Development Consent Modification: Environmental Assessment (Hansen Bailey, 2008) Wantana Extension: Statement of Environmental Effects (Hansen Bailey, 2007) Statement of Environmental Effects Modifications to Mining Operations (Hansen Consulting, 2006) Bengalla Mine: Mine Operations Plan (Bengalla, 2013) Bengalla Rehabilitation Management Plan (Bengalla, 2013) Bengalla Environmental Management Strategy (Bengalla, 2013) Bengalla Landscape Management Plan (Bengalla, 2013) Bengalla Aboriginal Cultural Heritage Management Plan (Bengalla, 2012) Bengalla European Heritage Management Plan (Bengalla, 2012) Bengalla Homestead Conservation Management Plan (Bengalla, September 2012) Overdene Conservation Management Plan (Bengalla, September 2012) Bengalla Air Quality and Greenhouse Gas Management Plan (Bengalla, 2012) Bengalla Water Management Plan (Bengalla, 2012) Bengalla Noise Management Plan (Bengalla, 2013) Bengalla Blast Management Plan (Bengalla, 2013) Bengalla Mining Company Post Blast Fume Generation Mitigation and Management Plan (Bengalla, 2007) Bengalla Environmental Monitoring Program (Bengalla, 2010) Environmental Pollution Incident Response Management Plan (Bengalla, 2012) Independent Environmental Audit, Bengalla Mine (AECOM, 2010) Assessment of Environmental Performance General Environmental Management Noise Management Blasting Management Air Quality Management Rehabilitation Management Review the adequacy of Environmental Management Plans Bengalla Coal Mine: Mining Operations Plan (Bengalla, 2013) Rehabilitation Management Plan (Bengalla, 2013) Environmental Management Strategy (Bengalla, 2013) Landscape Management Plan (Bengalla, 2013) Aboriginal Cultural Heritage Management Plan (Bengalla, 2012) European Heritage Management Plan (Bengalla, 2012) Air Quality and Greenhouse Gas Management Plan (Bengalla, 2012) Water Management Plan (Bengalla, 2012) Noise Management Plan (Bengalla, August 2013) 31 Revision B 30-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

6 AECOM Independent Environmental Audit Blast Management Plan (Bengalla, 2013) Environmental Monitoring Program (Bengalla, 2010) Environmental Pollution Incident Response Management Plan (Bengalla, 2012) Recommendations 35 Appendix A Audit Team Curricula Vitae Appendix B Consultation Appendix C Audit Meeting Agenda Appendix D Audit Protocol: Development Approval 211/93 (as modified) Appendix E Audit Protocol: Environmental Protection Licence 6538 Appendix F Audit Protocol: Mining Tenements Appendix G Audit Protocol: Environmental Impact Statement for Bengalla Open Cut Mine (November, 1993) Appendix H Audit Protocol: Bengalla Mine Development Consent Modification: Environmental Assessment (Hansen Bailey, 2010) Appendix I Audit Protocol: Bengalla Mine Development Consent Modification: Environmental Assessment (Hansen Bailey, 2008) Appendix J Audit Protocol: Wantana Extension: Statement of Environmental Effects (Hansen Bailey, 2007) Appendix K Audit Protocol: Statement of Environmental Effects Modifications to Mining Operations (Hansen Consulting, 2006) Appendix L Audit Protocol: Bengalla Mine: Mine Operations Plan (Bengalla, 2013) Appendix M Audit Protocol: Bengalla Rehabilitation Management Plan (Bengalla, 2013) Appendix N Audit Protocol: Bengalla Environmental Management Strategy (Bengalla, 2013) Appendix O Audit Protocol: Landscape Management Plan (Bengalla, 2013) Appendix P Audit Protocol: Bengalla Aboriginal Cultural Heritage Management Plan (Bengalla, 2012) Appendix Q Audit Protocol: Bengalla European Heritage Management Plan (Bengalla, 2012) Appendix R Audit Protocol: Bengalla Homestead Conservation Management Plan (Bengalla, 2012) Appendix S Audit Protocol: Overdene Conservation Management Plan (Bengalla, 2012) Appendix T Audit Protocol: Bengalla Air Quality and Greenhouse Gas Management Plan (Bengalla, 2012) A B C D E F G H I J K L M N O P Q R S T Revision B 30-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

7 AECOM Independent Environmental Audit Appendix U Audit Protocol: Bengalla Water Management Plan (Bengalla, 2012) Appendix V Audit Protocol: Bengalla Noise Management Plan (Bengalla, 2013) Appendix W Audit Protocol: Bengalla Blast Management Plan (Bengalla, 2013) Appendix X Audit Protocol: Bengalla Mining Company Post Blast Fume Generation Mitigation and Management Plan (Bengalla, 2007) Appendix Y Audit Protocol: Bengalla Environmental Monitoring Program (Bengalla, 2010) Appendix Z Audit Protocol: Environmental Pollution Incident Response Management Plan (Bengalla, 2012) Appendix AA Audit Protocol: Independent Environmental Audit, Bengalla Mine (AECOM, 2010) U V W X Y Z AA List of Tables Table 1 Auditing Conditions and where each is addressed in this Report 2 Table 2 Bengalla Documents used to Assess Compliance and where each is addressed in this Report 5 Table 3 Summary of Bengalla s Current Approvals, Licences and Permits 6 Table 4 Summary of Non-compliances Found and Recommendations Made against Development Approval 211/93 (as modified), EPL 6538, mining tenements, EAs and SEE 9 Table 5 Non-compliance against Development Approval 211/93 (as modified) 11 Table 6 Non-compliances against EPL Table 7 Non-compliance against EIS Table 8 Non-compliance against Environmental Assessment 2010 (MOD 4) 18 Table 9 Non-compliance against Bengalla MOP ( ) 20 Table 10 Non-compliance against Landscape Management Plan (Bengalla, April 2013) 20 Table 11 Non-compliance against Air Quality and Greenhouse Gas Management Plan (Bengalla, 2012) 21 Table 12 Non-compliance against Water Management Plan (Bengalla, 2012) 21 Table 13 Non-compliances against Noise Management Plan (Bengalla, 2013) 22 Table 14 Non-compliance against Bengalla Environmental Monitoring Program (Bengalla, 2010) 22 Table 15 Non-compliances against previous IEA (AECOM, 2010) 23 Table 16 Consolidated Audit Recommendations 35 Revision B 30-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

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9 AECOM Independent Environmental Audit i Executive Summary AECOM Australia Pty Limited has been commissioned by Bengalla Mining Company Pty Limited (BMC) to conduct the Independent Environmental Audit (IEA) for Bengalla Coal Mine (Bengalla) in accordance with the Development Approval 211/93 (as modified). This audit was undertaken generally in accordance with AS/NZS ISO 19011:2003 Guidelines for quality and/or environmental management systems auditing. This audit covers the period between July 2010 and July 2013, and includes: - Comments on BMC s compliance against the conditions of Development Approval (DA) 211/93 (as modified), its Environmental Protection Licence 6538, and other key licences, approvals and supporting documents such as environmental management plans (Section 3.0); - An assessment of BMC s environmental management and performance (Section 4.0) and the adequacy of relevant environmental management plans at Bengalla (Section 5.0); and - A list of recommendations flowing from the findings of this audit (Section 6.0). This audit was conducted by Peter Horn and Jessica Miller and required specialist input from Peter Sanderson, Dr Geoff Lucas and Dee Murdoch in the fields of acoustics, vibration and rehabilitation. The audit consisted of a detailed desktop review of documentation, interviews with key BMC staff and a site visit of Bengalla Mine. Additional desktop reviews were conducted prior to and following the site inspection. A peer review of the IEA was conducted by Ian Richardson. Two thousand and fifteen (2,015) conditions and commitments were reviewed as part of this IEA. The following compliance summary has resulted from this audit: - Where compliance could not be verified against BMC s consents and management plans, this has been acknowledged as not compliant for the purposes of this audit; - 33 non compliances were identified in total, however many of the non-compliances noted in this IEA relate to the same issue which, due to the repetition of commitments between consent documents and management plans, raise the same non-compliance several times; - 10 non compliances were noted against Bengalla s Development Consent 211/93 (as modified), 5 non compliances noted against the Environmental Protection Licence 6538, 4 non-compliances noted against Bengalla s EIS (1993) and 3 non-compliances were noted against the Environmental Assessment (2010); and - 1 non-compliance was found against Bengalla s Mining Operations Plan and 10 non compliances were identified against the relevant management plans assessed as part of this IEA. BMC has in place an ISO14001 certified Environmental Management System (EMS) which relies upon an environmental policy, a series of regulatory required management plans, a monitoring programme and environmental standards and procedures. The BMC EMS is part of the Coal and Allied (CAN) EMS which is also certified to ISO The EMS forms the basis for the observed rigorous and consistent environmental management at BMC. An assessment of BMC s EMS adequacy and effectiveness was conducted as part of this IEA (refer Section 5.3). Desktop review in conjunction with a site visit conducted by the audit team revealed multiple non compliances in relation to air quality and noise. Particular non compliances pertain to exceedances of compliance criteria. While the content of the BMC management plans is in accordance with consent requirements, there was, at the time of the audit, room for improvement in the application of the management plans on site at BMC. BMC has fostered a positive relationship with the local community resulting in a culture which promotes environmental awareness and management. Overall the commitment of time and resources by BMC to manage environmental issues results in a good standard of environmental management to the operation of Bengalla. A consolidated list of recommendations stemming from the DA 211/93 (as modified) and environmental management plans can be found in Section 6.0. Individual non-compliances are outlined in more detail in Section 3.0. At the time of the audit, Bengalla staff were made aware of many of these identified non-compliances against conditions of DA 211/93 (as modified). Revision B 30-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

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11 AECOM Independent Environmental Audit Introduction 1.1 Background AECOM Australia Pty Ltd (AECOM) was commissioned by Bengalla Mining Company Pty Limited (BMC) to undertake an Independent Environmental Audit (IEA) for Bengalla Mine (Bengalla) in accordance with Condition 9, Schedule 5 of the Development Approval 211/93 (as modified). The audit was undertaken consistent with the relevant planning approval conditions for Bengalla Mine and focused on verification of the site s compliance against key licences, approvals and supporting documents such as management plans. This audit covers the period July 2010 to July Site Description BMC is managed by Coal and Allied Operations Pty Ltd (CNA), a wholly owned subsidiary of Coal and Allied Industries Pty Limited, which is a Rio Tinto Group Company. BMC operates Bengalla, located in the upper Hunter Valley, approximately 130 km northwest of Newcastle and 4km west of Muswellbrook. The operations at Bengalla consist of a number of facilities and equipment necessary for the extraction, washing and distribution of coal which includes: - Infrastructure area (three coal stockpiles, a coal handling an preparation plant (CHPP), workshop and nearby office complex); - Rail loadout facilities; - Mobile plant and equipment; - Dragline; and - Run of mine (ROM) hopper. Agricultural buffer lands are present around BMC including an operating dairy on leased property, which produces up to 15,000 litres of milk a day from 1,500 cattle. BMC was granted development consent (DA211/93) in 1996, in accordance with the supporting document Bengalla Coal Mine Environmental Impact Statement 1993 (Bengalla EIS). Thermal coal is sold to local and export markets. Bengalla has a DA approved production capacity of 8.7 Million tonnes per annum (Mtpa) of ROM coal for 21 years. On 27 June 1996 BMC was granted Mining Lease Mining Leases 1450 and 1469 were granted on 10 June 1999 and 5 June 2000 respectively. A modification to DA 211/93 (Mod 1) was granted in accordance with the Statement of Environmental Effects Modifications to Mining Operations 2006 (Bengalla SEE) in November 2006 under Section 93(2) of the Environmental Planning and Assessment Act 1979 (EP&A Act). This approval permits BMC to: - Increase the final landform height by up to 30 metres to 270 RL; - Relocate the overland conveyor and ROM Coal Hopper; - Upgrade the CHPP to allow two stage washing; - Construct temporary tailings drying areas; and - Increase maximum allowable ROM coal production levels to 10.7 Mtpa. DA 211/93 (Mod 2) was granted in December 2007 in accordance with the supporting Bengalla Mining Company Wantana Extension Statement of Environmental Effects 2007 (Wantana SEE). This modification allows for the following: - Extension of mining operations into the 32 hectare Wantana Extension, entirely within the existing Mining Leases and Development Application Boundary; - Minor infrastructure modifications and revised maintenance manning strategy; and - Consolidation of in-pit facilities. Revision B 30-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

12 AECOM Independent Environmental Audit 2 In association with the Bengalla Mining Company Development Consent Modification Environmental Assessment 2008 (Bengalla Link Road EA) (Bengalla EA, 2008) a third modification to DA 211/93 (Mod 3) was granted in July Modification 3 allows for the construction of the Bengalla Link Road Stage 2 on the preferred alignment and for a delay in a component approved in DA 211/93 (Mod 1). The current modification, at the time of this audit, DA 211/93 (Mod 4) was approved in October 2011 and is supported by the Bengalla Mining Company Development Consent Modification Environmental Assessment 2010 (Bengalla Modification EA) (Bengalla EA, 2010). The current consent allows for the: - Acceleration of mining operations within the Wantana Extension Area to align it with existing mining operations; - Extending the footprint and associated landform of the existing Overburden Emplacement Area (OEA) to the south-east; - Relocation of the already approved temporary OEA to the west of the current operations; and - Delaying the finalisation and rehabilitation of the northern face of the existing OEA. 1.3 Scope of Work This IEA and subsequent report has been prepared pursuant to Condition 9, Schedule 5 of Development Approval 211/93 (as modified). Table 1 lists the requirements of this condition and indicates where each has been addressed in this IEA report. Table 1 Auditing Conditions and where each is addressed in this Report Condition Commitment 9 By the end of July 2013, and every 3 years thereafter, unless the Director-General directs otherwise, the Applicant shall commission and pay the full cost of an Independent Environmental Audit of the development. This audit must: Where addressed in this report This Audit Report 9(a) be conducted by a suitably qualified, experienced and independent team of experts whose appointment has been endorsed by the Director- General; Appendix A 9(b) include consultation with the relevant agencies; Appendix B 9(c) 9(d) 9(e) assess the environmental performance of the development and whether it is complying with the requirements in this consent and any relevant EPL or Mining Lease (including any assessment, plan or program required under these instruments); review the adequacy of strategies, plans or programs required under the abovementioned instruments; and if necessary, recommend appropriate measures or actions to improve the environmental performance of the development, and/or any strategy, plan or program required under the abovementioned instruments. Section 3.0 Section 5.0 Section Within 3 months of commissioning this audit, or as otherwise agreed by the Director-General, the Applicant shall submit a copy of the audit report to the Director-General, together with its response to any recommendations contained in the audit report. This Audit Report This audit covers the period between July 2010 and July Revision B 30-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

13 AECOM Independent Environmental Audit Audit Approach This IEA was undertaken generally in accordance with AS/NZS ISO 19011:2003 Guidelines for quality and/or environmental management systems auditing by the following AECOM staff and contractors: - Peter Horn (Environmental Site Services Manager, SMEC) Lead Auditor; - Jessica Miller (Environmental Planner, AECOM) Assistant Auditor; - Peter Sanderson (Acoustics Engineer, AECOM) Specialist Acoustics Auditor; - Dee Murdoch (Associate Director, Environment, AECOM) Specialist Rehabilitation Auditor; - Dr Geoff Lucas (Senior Mechanical Engineer, AECOM) Specialist Air Quality Auditor; and - Ian Richardson (Associate Director, Environment, AECOM) Peer Review/Quality Control. This IEA consisted of a detailed desktop review of documentation, interviews with key Bengalla staff and a site visit of Bengalla Mine from 26 to 28 August Attendees at interviews included: - Amy Harburg Environmental Specialist; - Calvin Leech Environmental Advisor; - Craig White Approvals Manager; and - Nathan Smith Geological Superintendent. Agendas for the site meetings and itinerary for the site inspection components of the IEA (both inclusive of attendees) are shown in Appendix C. A rehabilitation-specific site inspection was undertaken as part of the IEA on 28 August A general site inspection was undertaken on 26 and 28 August These site inspections included discussions and questioning of key operational and administrative staff, and observations of processes, procedures and operations. Weather at the time of the audit was cool and intermittently raining. A short closing meeting was held with Bengalla staff on Wednesday 28 August 2013, to provide an initial assessment of the audit review Limitations of the Audit The AECOM audit team received complete cooperation from all staff during the IEA. However, the following issues arose during the IEA, which limited to some extent, its findings: - Opinions presented in this report apply to the site s conditions and features as they existed at the time of AECOM s site visit on 26 to 28 August 2013 and those reasonably foreseeable. They necessarily cannot apply to conditions and features which AECOM is unaware of and has not had the opportunity to evaluate; - The conclusions presented in this report are professional opinions based solely on AECOM s visual observations of the site and the immediate vicinity, and upon AECOM s interpretations of the documentation reviewed, interviews and conversations with personnel knowledgeable about the site and other available information, as referenced in this report. These conclusions are intended exclusively for the purpose stated herein, at the site listed, and for the project indicated; and - This report does not, and does not purport to, give legal advice on the actual or potential environmental liabilities of any individual or organisation, or to draw conclusions as to whether any particular circumstances constitute a breach of relevant legislation. 1.5 Report Structure This report is structured as follows: Section 1.0 provides an introduction, background, description and layout of Bengalla Mine, describes the requirements for the IEA and provides a guide to the structure of the report. Section 2.0 lists the planning approvals in place at Bengalla Mine, provides a description of each and confirms those which have been the subject of this IEA. Section 3.0 provides a discussion of non-compliances against the development approval and other licences and management plans. Revision B 30-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

14 AECOM Independent Environmental Audit 4 Section 4.0 provides a review of effectiveness of environmental performance under the mentioned approvals at Bengalla Mine. Section 5.0 provides a review of the adequacy of the environmental management plans reviewed. Section 6.0 provides recommendations for measures or actions to improve the environmental performance of Bengalla. Revision B 30-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

15 AECOM Independent Environmental Audit Documents Reviewed Table 2 lists the documents reviewed for this IEA along with where each is addressed in the report: Table 2 Bengalla Documents used to Assess Compliance and where each is addressed in this Report Document Where addressed in this report Development Approval 211/93 (as modified) Section 3.1 EPL 6538 Section 3.2 Mining tenements Mining Leases (ML) 1397, 1469, 1450 and 1592, Exploration Lease 438 and Assessment Lease 13 Environmental Impact Statement for Bengalla Open Cut Min (November, 1993) Bengalla Mine Development Consent Modification: Environmental Assessment (Hansen Bailey, 2010) Bengalla Mine Development Consent Modification: Environmental Assessment (Hansen Bailey, 2008) Wantana Extension: Statement of Environmental Effects (Hansen Bailey, 2007) Statement of Environmental Effects Modifications to Mining Operations (Hansen Consulting, 2006) Section 3.3 Section 3.4 Section 3.5 Section 3.6 Section 3.7 Section 3.8 Bengalla Mine: Mine Operations Plan (Bengalla, 2013) Section 3.9 Bengalla Rehabilitation Management Plan (Bengalla, 2013) Section 3.10 Bengalla Environmental Management Strategy (Bengalla, 2013) Section 3.11 Bengalla Landscape Management Plan (Bengalla, 2013) Section Bengalla Aboriginal Cultural Heritage Management Plan (Bengalla, 2012) Section Bengalla European Heritage Management Plan (Bengalla, 2012) Section Bengalla Homestead Conservation Management Plan (Bengalla, 2012) Section Overdene Conservation Management Plan (Bengalla, 2012) Section Bengalla Air Quality and Greenhouse Gas Management Plan (Bengalla, 2012) Section Bengalla Water Management Plan (Bengalla, 2012) Section Bengalla Noise Management Plan (Bengalla, 2013) Section Bengalla Blast Management Plan (Bengalla, 2013) Section Bengalla Mining Company Post Blast Fume Generation Mitigation and Management Plan (Bengalla, 2007) Section 3.12 Revision B 30-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

16 AECOM Independent Environmental Audit 6 Document Where addressed in this report Bengalla Environmental Monitoring Program (Bengalla, 2010) Section 3.13 Environmental Pollution Incident Response Management Plan (Bengalla, 2012) Section 3.14 Independent Environmental Audit, Bengalla Mine (AECOM, 2010) Section 3.15 Table 3 lists the approvals, licences and permits currently held for Bengalla Mine and provides an indication of the status of each. Table 3 Summary of Bengalla s Current Approvals, Licences and Permits Approval Type Detail Authority Expiry Development Approval Development Consent Explosives Facility Development Approval 211/93 (as modified) Development Approval 273/2006 Department of Planning and Infrastructure (DP&I) Muswellbrook Shire Council EPL 6538 NSW Office of Environmental and Heritage (OEH) 7 August 2017 Perpetuity Radiation Licence OEH 26 April April 2013* April 2013* April 2013* Anniversary date 11 September. Review date 19 August January January 2014 Mining Tenements ML1450 Department of Trade 11 June 2020 ML1592 Investment and Regional Infrastructure 19 April 2028 ML1397 Division of resources 27 June 2017 ML1469 and Energy Industries (DRE) 5 June 2021 Exploration Lease Authorisation May 2014 Mining Operations Plan Water Licences Assessment Lease December 2011 Bengalla Mine: Mine Operations Plan (Bengalla, 2013) Groundwater Extraction Licence 20BL DP&I/DRE Expires 26 June 2015 NSW Office of Water (NoW) 31 October 2015 Hunter River Pump 20PE Annually Revision B 30-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

17 AECOM Independent Environmental Audit 7 Approval Type Detail Authority Expiry Licence to Store Explosives Licence to Sell / Possess Radiation Hunter River Water Access Licence(1,449 units) WAL (previously 20SL060388) Bore Licences for Wantana 20BL BL BL March 2018 Perpetuity WorkCover NSW 10 January OEH 18 December 2013* * Renewal Lodged at time of audit Revision B 30-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

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19 AECOM Independent Environmental Audit Environmental Compliance Condition 9, Schedule 5 of Development Approval 211/93 (as modified) requires the proponent to commission and pay the full cost of an Independent Environmental Audit of the development. Subclause 9(c) of this Condition specifies that the audit must: assess the environmental performance of the development and whether it is complying with the requirements in this consent and any relevant EPL or Mining Lease (including any assessment, plan or program required under these instruments). In the assessment of compliance, the status of each condition is described as: - ; - Not Compliant; or - (used where conditions have not yet been activated (due to activities not being commenced or requests not being made for example)). Where non-compliance has been found against a condition or commitment that is not directly relating to environmental management at Bengalla this has been defined as an Administrative non-compliance or Technical non-compliance for the purposes of this IEA. Many of Bengalla s assessments and management plans have been developed to comply with conditions and commitments outlined in Bengalla s Approvals, licences and tenements. As a result, many of the non-compliances noted in this IEA relate to the same issue which, due to the repetition of commitments between consent documents and management plans, raise the same non-compliance several times. Table 4 below provides a summary of the non-compliances in relation to the relating approvals, licences and management plans assessed. A total of 2,015 conditions and commitments were assessed as part of this audit, with 33 non compliances identified. A detailed outline of compliance can be found in Appendix D to Appendix AA. Table 4 Summary of Non-compliances Found and Recommendations Made against Development Approval 211/93 (as modified), EPL 6538, mining tenements, EAs and SEE Document Reference Non-compliance Development Approval 211/93 (as modified) Recommendations Made Section Table 5 Yes - Table 16 EPL 6538 Section Table 6 No ML 1397 Section No ML 1469 ML 1450 ML 1592 Exploration Lease 438 Assessment Lease 13 EIS 1993 Section Table 7 No EA 2010 (Mod 4) Section Table 8 No EA 2010 Response to Submission EA 2008 (Mod 3) Section No SEE 2007 (Mod 2) Section No SEE 2006 (Mod 1) Section No Bengalla Mine: Mine Operations Plan (Bengalla, 2013) Section Table 9 Yes - Table 16 Revision B 30-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

20 AECOM Independent Environmental Audit 10 Document Reference Non-compliance Bengalla Rehabilitation Management Plan (Bengalla, 2013) Bengalla Environmental Management Strategy (Bengalla, 2013) Bengalla Landscape Management Plan (Bengalla, 2013) Bengalla Aboriginal Cultural Heritage Management Plan (Bengalla, 2012) Bengalla European Heritage Management Plan (Bengalla, 2012) Bengalla Homestead Conservation Management Plan (Bengalla, September 2012) Overdene Conservation Management Plan (Bengalla, September 2012) Bengalla Air Quality and Greenhouse Gas Management Plan (Bengalla, 2012) Recommendations Made Section Yes - Table 16 Section No Section Table 10 No Section No Section Yes - Table 16 Section Yes - Table 16 Section No Section Table 11 No Bengalla Water Management Plan (Bengalla, 2012) Section Table 12 Yes - Table 16 Bengalla Noise Management Plan (Bengalla, 2013) Bengalla Blast Management Plan (Bengalla, 2013) Bengalla Mining Company Post Blast Fume Generation Mitigation and Management Plan (Bengalla, 2007) Bengalla Environmental Monitoring Program (Bengalla, 2010) Environmental Pollution Incident Response Management Plan (Bengalla, 2012) Independent Environmental Audit, Bengalla mine (AECOM, 2010) Section Table 13 Yes - Table 16 Section No Section No Section Table 14 Yes - Table 16 Section No Section Table 15 No Revision B 30-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

21 AECOM Independent Environmental Audit Development Approval 211/93 (as modified Mod 4) Table 5 shows the conditions that were found to be non-compliant with the Development Approval 211/93 (as modified). Recommendations for DA 211/93 (as modified - Mod 4) can be found in Table 16. A detailed assessment of compliance for each condition is outlined in Appendix D. Table 5 Non-compliance against Development Approval 211/93 (as modified) Schedule Condition Commitment Audit Finding 3 1 The Applicant shall ensure that the noise generated by the development does not exceed the criteria in Table 1 at any residence on privately-owned land or on more than 25% of any privately-owned land. There has been an exceedance of these criteria. Monitoring results taken during the day of 20 June 2012 recorded a noise level of 41 dba. Monitoring was being undertaken at Racecourse Road (i.e. the Farrell residence). An incident report was prepared, and provided to DP&I. Following the incident, Bengalla implemented several operational restrictions and containment measures to ensure ongoing compliance with noise criteria. Notes: - To identify the locations referred to in Table 1, refer to Figure 1 in Appendix 3; and - Noise generated by the development is to be measured in accordance with the relevant procedures and exemptions (including certain meteorological conditions) of the NSW Industrial Noise Policy. However, these criteria do not apply if the Applicant has a written agreement with the relevant landowner to exceed the criteria, and the Applicant has advised the Department in writing of the terms of this agreement. Revision B 30-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

22 AECOM Independent Environmental Audit 12 Schedule Condition Commitment Audit Finding 3 7 The Applicant shall, to the satisfaction of the Director-General: 7(a) Implement best practice noise management, including all reasonable and feasible noise mitigation measures to minimise the operational, low frequency and rail noise generated by the development; 7(b) Minimise the noise impacts of the development during temperature inversions; 7(c) Regularly assess the real-time noise monitoring and meteorological forecasting data and relocate, modify, and/or stop operations on site to ensure compliance with the relevant conditions of this consent, and 7(d) Co-ordinate the noise management on site with the noise management at nearby mines (including the Mt Pleasant mine) to minimise the cumulative noise impacts of the mines. Administrative noncompliance This is managed as per the Bengalla Mining Company Pty Limited Noise Management Plan (Bengalla, August 2013). The Management Plan satisfies the requirements of this condition however approval from the director general has not been provided to the audit team. Bengalla have made best efforts to obtain approval from DP&I. 3 8 The Applicant shall prepare and implement a Noise Management Plan for the development to the satisfaction of the Director-General The Applicant shall ensure that all reasonable and feasible avoidance and mitigation measures are employed so that particulate matter emissions generated by the development do not exceed the criteria listed in Tables 7, 8 or 9 at any residence on privately-owned land or on more than 25 percent of any privately-owned land. Administrative noncompliance The Bengalla Mining Company Pty Limited Noise Management Plan (Bengalla, August 2013) fulfils these requirements. The Noise Management Plan has been reviewed by DP&I representative (291013) however has not been approved. During the audit period there were three exceedances of the 24 hour average criterion of PM10 in In 2011 there were three exceedances, and in 2012 there was one exceedance. In each of these years, the annual PM10 averaging criterion was not exceeded. Revision B 30-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

23 AECOM Independent Environmental Audit 13 Schedule Condition Commitment Audit Finding 3 21(b) Minimise any visible off site air pollution; A small amount of fugitive dust was observed during the audit site inspection, with elevated dust levels observed in the pit. Lead Auditor noticed, on a day other than the day of the audit site visit, large amounts of dust leaving site at BCM. It should be noted that weather conditions on that day were particularly bad in the area causing neighbouring mines to have similar problems. The BCM management plans are acceptable in their content however application of their management plans requires a more aggressive approach The Applicant shall ensure that any mine water discharges from the site comply with the: (a) discharge limits (both volume and quality) set for the development in any EPL; or (b) relevant provisions in the POEO Act or Protection of the Environment Operations (Hunter River Salinity Trading Scheme) Regulation (d) Ensure that all external lighting associated with the development complies with Australian Standard AS4282 (INT) 1997 Control of Obtrusive Effects of Outdoor Lighting. On 11 January 2012 the failure of a scour valve located on a water pipe resulted in an uncontrolled water discharge of 2.5 mega litres of mine water from that pipeline. The incident was reported to the EPA and DP&I on the same day, and the EPA was subsequently provided with a written report on the incident on 17 January Water samples were collected from discharged water at two locations. The results indicated that the potential for environmental harm to have been caused by the incident was negligible. Administrative noncompliance Lighting at Bengalla is maintained according to PRO Placement and Operation of Lighting Sets. However there is nothing to suggest that this complies with AS4282 (INT) 1997 Control of Obtrusive Effects of Outdoor Lighting. Revision B 30-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

24 AECOM Independent Environmental Audit 14 Schedule Condition Commitment Audit Finding 3 39 The Applicant shall rehabilitate the site to the satisfaction of the Executive Director, Mineral Resources in DRE. This rehabilitation must be generally consistent with the proposed rehabilitation strategy described in the EIS and EA, and comply with the objectives in Table 14. Technical non-compliance These slopes were viewed by the auditors during the site visit. Some slopes were observed to be above this 10% criterion. Appendix 5 5 BMC will continue to implement the noise management and mitigation measures listed in Section as required to ensure noise levels described within this EA remain within the predictions presented in Table 7. There has been an exceedance of these criteria. Monitoring results taken during the day of 20 June 2012 recorded a noise level of 41 dba. Monitoring was being undertaken at Racecourse Road (i.e. the Farrell residence). An incident report was prepared, and provided to DP&I. Following the incident, Bengalla implemented several operational restrictions and containment measures to ensure ongoing compliance with noise criteria. Appendix 5 8 BMC will revise its existing Land Management Plan to incorporate details of this Modification, including the implementation of management measures required to compensate on impacts on Class II agricultural lands. This review will be undertaken in consultation with MSC, I&I NSW and to the satisfaction of the DoP. This review has not been undertaken - the latest version of the Land Management Plan is dated Revision B 30-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

25 AECOM Independent Environmental Audit Environmental Protection Licence 6538 Table 6 shows the conditions that were found to be non-compliant with BMC s Environmental Protection License A detailed assessment of compliance for each condition is outlined in Appendix E. Table 6 Non-compliances against EPL 6538 Reference Commitment Audit Finding O2.1 All plant and equipment installed at the premises or used in connection with the licensed activity: a) must be maintained in a proper and efficient condition; and b) must be operated in a proper and efficient manner. O3.1 The premises must be maintained in a condition which minimises or prevents the emission of dust from the premises. During the site visit the auditors viewed the maintenance planning system which BMC has in place to ensure that its plant and equipment undergo preventative maintenance, as well as maintenance when repairs are required. The auditors also viewed plant being repaired in the workshop as scheduled. A non-compliance against this condition was reported to the EPA during the audit On 11 January 2012 the failure of a scour valve located on a water pipe resulted in an uncontrolled water discharge of 2.5 megalitres of mine water from that pipeline. The incident was reported to the EPA and DP&I on the same day, and the EPA was subsequently provided with a written report on the incident on 17 January Water samples were collected from discharged water at two locations. The results indicated that the potential for environmental harm to have been caused by the incident was negligible. A small amount of fugitive dust was observed during the audit site inspection, with elevated dust levels observed in the pit. Lead Auditor noticed, on a day other than the day of the audit site visit, large amounts of dust leaving site at BCM. It should be noted that weather conditions on that day were particularly bad in the area causing neighbouring mines to have similar problems. The BMC management plans have acceptable control and mitigation measures however application of the management plan requirements requires a more aggressive approach. Revision B 30-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

26 AECOM Independent Environmental Audit 16 Reference Commitment Audit Finding M7.1 For each discharge point or utilisation area specified below, the licensee must monitor: a) the volume of liquids discharged to water or applied to the area; b) the mass of solids applied to the area; c) the mass of pollutants emitted to the air; at the frequency and using the method and units of measure, specified below. During the site visit the auditors viewed the calibration certificate for the flow meter dated 30 January 2013 and undertaken by ABB. During the audit period a noncompliance against this condition (previously numbered M6.1) was reported to the EPA, when continuous monitoring equipment ceased to operate during a discharge event. M8.1 The licensee must monitor all blasts carried out in or on the premises at or near the nearest residence or noise sensitive location (such as a school or hospital) that is likely to be most affected by the blast and that is not owned by the licensee or subject of a private agreement between the owner of the residence or noise sensitive location and the licensee relating to alternative blasting limits. R4.1 HRSTS Reporting The licensee must compile a written report of the activities under the Scheme for each scheme year. The scheme year shall run from 1 July to 30 June each year. The written report must be submitted to the EPA s regional office within 60 days after the end of each scheme year and be in a form and manner approved by the EPA. The information will be used by the EPA to compile an annual scheme report. During the site visit the auditors viewed blasting data which generally complies with these requirements. During the audit period a non-compliance against this condition was reported to the EPA. On 10 September 2012 the St James School blast monitoring unit ceased to operate due to firmware failure. As a result, no data were retrievable. During the audit period another non-compliance against this condition (previously numbered M7.1) was reported to the EPA, when a blasting event was not monitored at the nearest sensitive receiver. The reporting noted that the blast event details and weather monitoring had been completed. However, overpressure and ground vibration for the blast were not recorded due to the process not being followed. As a result, relevant staff received retraining on the monitoring requirements. During the site visit the auditors viewed copies of the HRSTS reports for 2012 and 2013, which were provided in August each year. During the audit period a noncompliance against this condition was reported to the EPA, when the HRSTS report for the period 1 July 2010 to 30 June 2011 was not provided to the EPA within 60 days. Revision B 30-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

27 AECOM Independent Environmental Audit Mining Tenements All the conditions and commitments in Bengalla s ML 1450, ML 1592, ML 1397, ML 1469, Exploration Lease Authorisation 438 and Assessment Lease 13 were found to be compliant or not triggered. A detailed assessment of compliance for each condition is outlined in Appendix F. 3.4 Environmental Impact Statement for Bengalla Open Cut Mine (November, 1993) Table 7 shows the conditions that were found to be non-compliant with the Environmental Impact Statement for Bengalla Open Cut Min (November, 1993). A detailed assessment of compliance for each condition is outlined in Appendix G. Table 7 Non-compliance against EIS 1993 Reference Commitment Audit Finding Approximately 200 m has been allowed between the eastern pit limit and the spoil limit for the surface placement of spoil. The final spoil surface will rise at a maximum gradient of 10 degrees from the spoil limit. To achieve this with minimum rehandling or recontouring, dragline spoil will be placed adjacent to the excavation and prestrip material will be used to infill between the spoil limit and the edge of the dragline spoil The spoil will be dozed to the final landform of a smooth 10 degree hillside sloping to the southeast as the spoil surface reaches the desired elevation. It will take approximately 2 years for the eastern margin of the surface spoil to achieve final contours. Revegetation of areas completed during this time will occur progressively The fine magnetite used as the dense medium in the coarse coal recovery process will be recovered for recycling from the coarse product and waste streams by a combination of rinsing, screening and magnetic separation The eastern edge of the spoil will rise at a maximum gradient of 10 degrees to a maximum height of 240 m AHD. This is higher than the existing topography, due to bulkage of the spoil. The spoil will be contoured to drain away from the mining areas. Technical non-compliance These slopes were viewed by the auditors during the site visit. Some slopes were observed to be above this 10% criterion. Technical non-compliance The slopes of the eastern emplacement were viewed by the auditors during the site visit. Some slopes were observed to be above this 10% criterion. Compliance of these conditions could not be verified at the time of the audit. Technical non-compliance These slopes were viewed by the auditors during the site visit. Some slopes were observed to be above this 10% criterion. Revision B 30-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

28 AECOM Independent Environmental Audit Bengalla Mine Development Consent Modification: Environmental Assessment (Hansen Bailey, 2010) Table 8 shows the conditions that were found to be non-compliant with Bengalla Mine Development Consent Modification: Environmental Assessment (Hansen Bailey, 2010). A detailed assessment of compliance for each condition is outlined in Appendix H. Table 8 Non-compliance against Environmental Assessment 2010 (MOD 4) Reference Commitment Audit Finding As noted in Table 11, of the EA Bengalla will update the Rehabilitation and Landscape Management Plan, Landscape Management Plan and Land Management Plan in consultation with I&I NSW, MSC and to the satisfaction of DoP. Such revisions will, subject to DoP approval, include any of the technical recommendations included in the Soil and Land Capability Impact Assessment. Bengalla looks forward to working with I&I NSW (Primary Industries Division) to ensure the best land management outcome is achieved with the limited soil resource which will become available. Administrative non-compliance The Bengalla Mining Company Pty Limited Rehabilitation Management Plan (Bengalla, April 2013) and the Bengalla Mining Company Pty Limited Landscape Management Plan (Bengalla, April 2013) were both updated during the audit However the latest version of the Land Management Plan is dated 2008, and hence the review and update of that plan was not undertaken BMC s existing approval under Section 100 of the CMHS Act will be reviewed in respect of this Modification and updated as required. Compliance of this condition could not be verified at the time of the audit. Revision B 30-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

29 AECOM Independent Environmental Audit 19 Reference Commitment Audit Finding 7.0 In addition to the conditions of DA 211/93, BMC commits to the operational controls as outlined in Table 11 for all activities associated with this Modification. Ref 1 - The Bengalla Topsoil Stripping Procedure (January, 2012) fulfils these requirements. Ref 2 - Interviews with Bengalla staff also confirmed that the site continues to be operated in this manner. Ref 3 and 4 - The auditors viewed evidence of management plans having been updated during the audit period to take into account comments made by regulators, including DP&I. Ref 5 - There has been an exceedance of these criteria. Monitoring results taken during the day of 20 June 2012 recorded a noise level of 41 dba. Monitoring was being undertaken at Racecourse Road (i.e. the Farrell residence). An incident report was prepared, and provided to DP&I. Following the incident, Bengalla implemented several operational restrictions and containment measures to ensure ongoing compliance with noise criteria. Ref 6 - These additional groundwater monitoring bores were installed, as reported in section of Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012). Ref 7 - The Bengalla Mining Company Pty Limited Rehabilitation Management Plan (Bengalla, April 2013) and the Bengalla Mining Company Pty Limited Landscape Management Plan (Bengalla, April 2013) were both updated during the audit Ref 8 - The review of the Land Management Plan has not been done: the latest version of the Land Management Plan is dated Ref 9 - The Bengalla Mine Operations Plan MOP (1 January December 2015) (Bengalla) fulfils these requirements. 3.6 Bengalla Mine Development Consent Modification: Environmental Assessment (Hansen Bailey, 2008) All conditions and commitments in the Bengalla Mine Development Consent Modification: Environmental Assessment (Hansen Bailey, 2008) were identified as compliant or not triggered. A detailed assessment of compliance for each condition is outlined in Appendix I. 3.7 Wantana Extension: Statement of Environmental Effects (Hansen Bailey, 2007) All conditions and commitments in the Wantana Extension: Statement of Environmental Effects (Hansen Bailey, 2007) were identified as compliant or not triggered. A detailed assessment of compliance for each condition is outlined in Appendix J. Revision B 30-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

30 AECOM Independent Environmental Audit Statement of Environmental Effects Modifications to Mining Operations (Hansen Consulting, 2006) All conditions and commitments in the Statement of Environmental Effects Modifications to Mining Operations (Hansen Consulting, 2006) were identified as compliant or not triggered. A detailed assessment of compliance for each condition is outlined in Appendix K. 3.9 Bengalla Mine: Mine Operations Plan (Bengalla, 2013) Table 9 shows the conditions that were found to be non-compliant with Bengalla Mine: Mine Operations Plan (Bengalla, 2013). Recommendations for Bengalla MOP can be found in Table 16. A detailed assessment of compliance for each condition is outlined in Appendix L. Table 9 Non-compliance against Bengalla MOP ( ) Reference Commitment Audit Finding 4.3 Eastern Overburden Dump: Contoured to no more than a 10 degree slope. Technical non-compliance These slopes were viewed by the auditors during the site visit. Some slopes were observed to be above this 10% criterion Bengalla Rehabilitation Management Plan (Bengalla, 2013) All conditions and commitments in the Bengalla Rehabilitation Management Plan (Bengalla, 2013) were identified as compliant or not triggered. Recommendations for Bengalla Rehabilitation Management Plan can be found in Table 16. A detailed assessment of compliance for each condition is outlined in Appendix M Bengalla Environmental Management Strategy (Bengalla, 2013) All conditions and commitments in the Bengalla Environmental Management Strategy (Bengalla, 2013) were identified as compliant or not triggered. A detailed assessment of compliance for each condition is outlined in Appendix N Bengalla Landscape Management Plan (Bengalla, 2013) Table 10 shows the conditions that were found to be non-compliant with Bengalla Landscape Management Plan (Bengalla, 2013). A detailed assessment of compliance for each condition is outlined in Appendix M. Table 10 Non-compliance against Landscape Management Plan (Bengalla, April 2013) Reference Commitment Audit Finding 3.5 All lighting designs for infrastructure at Bengalla will also comply with the AS1680 Interior Lighting Code in order to minimise any impacts that may occur during night time hours resulting from light reflectance. Administrative non-compliance Lighting at Bengalla is maintained according to PRO-0365 Placement and Operation of Lighting Sets. However there is nothing to suggest that this complies with AS1680 Interior Lighting Code Bengalla Aboriginal Cultural Heritage Management Plan (Bengalla, 2012) All conditions and commitments in the Bengalla Aboriginal Cultural Heritage Management Plan (Bengalla, 2012) were identified as compliant or not triggered. A detailed assessment of compliance for each condition is outlined in Appendix P Bengalla European Heritage Management Plan (Bengalla, 2012) All conditions and commitments in the Bengalla European Heritage Management Plan (Bengalla, 2012) were identified as compliant or not triggered. A detailed assessment of compliance for each condition is outlined in Appendix Q. Revision B 30-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

31 AECOM Independent Environmental Audit Bengalla Homestead Conservation Management Plan (Bengalla, September 2012) All conditions and commitments in the Bengalla Homestead Conservation Management Plan (Bengalla, September 2012) were identified as compliant or not triggered. A detailed assessment of compliance for each condition is outlined in Appendix R Overdene Conservation Management Plan (Bengalla, September 2012) All conditions and commitments in the Overdene Conservation Management Plan (Bengalla, September 2012) were identified as compliant or not triggered. A detailed assessment of compliance for each condition is outlined in Appendix S Bengalla Air Quality and Greenhouse Gas Management Plan (Bengalla, 2012) Table 12 shows the conditions that were found to be non-compliant with Bengalla Air Quality and Greenhouse Gas Management Plan (Bengalla, 2012). A detailed assessment of compliance for each condition is outlined in Appendix T. Table 11 Non-compliance against Air Quality and Greenhouse Gas Management Plan (Bengalla, 2012) Reference Commitment Audit Finding 3.4 (Table 2) 3.4 (Table 2) - Review currently exposed overburden emplacement areas to assess: material and surface characteristics (moisture and silt content) The period over which such areas are to remain inactive - Investigate most suitable interim stabilisation methods to the currently exposed overburden emplacement areas identified. There is nothing to show that this has been undertaken during the audit During the site inspection discussions took place in relation to direct seeding the overburden stockpiles via an aerial seeding program as per that at other sites across the Hunter including Coal & Allied Mt Thorley Warkworth. However, No evidence of such investigations was provided to the audit team Bengalla Water Management Plan (Bengalla, 2012) Table 12 shows the condition that was found to be non-compliant with Bengalla Water Management Plan (Bengalla, 2012). Recommendations for Bengalla Water Management Plan can be found in Table 16. A detailed assessment of compliance for each condition is outlined in Appendix U. Table 12 Non-compliance against Water Management Plan (Bengalla, 2012) Reference Commitment Audit Finding While it is considered that transects between bores may not provide data that will confirm leakage from the alluvium, due to the high laterally permeability of the basal gravel aquifer, this method of analysis will be continued in the Wantana Extension area. Compliance of these conditions could not be verified at the time of the audit Bengalla Noise Management Plan (Bengalla, 2013) Table 13 shows the conditions that were found to be non-compliant with Bengalla Noise Management Plan (Bengalla, 2013). Recommendations for Bengalla Noise Management plan can be found in Table 16. A detailed assessment of compliance for each condition is outlined in Appendix V. Revision B 30-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

32 AECOM Independent Environmental Audit 22 Table 13 Non-compliances against Noise Management Plan (Bengalla, 2013) Reference Commitment Audit Finding 5.2 The following data parameters, as returned from each unattended monitoring site and the site weather station, will be trended in real time and display available in the operation dispatch area as a management tool: - Omnidirectional low pass LA db (estimated total mining LAeq); - Wind speed; - Wind direction; - Atmospheric stability class; - The relevant impact criterion; and - The relevant cumulative criterion. - Administrative non-compliance During the site visit the auditors viewed this real time monitoring in use (via computer screen in control room). However, this real time monitoring does not include cumulative criterion as this is not really possible to delineate from the control room Bengalla Blast Management Plan (Bengalla, 2013) All conditions and commitments in the Bengalla Blast Management Plan (Bengalla, 2013) were identified as compliant or not triggered. A detailed assessment of compliance for each condition is outlined in Appendix W Bengalla Mining Company Post Blast Fume Generation Mitigation and Management Plan (Bengalla, 2007) All conditions and commitments with the Bengalla Mining Company Post Blast Fume Generation Mitigation and Management Plan (Bengalla, 2007) were identified as compliant or not triggered. A detailed assessment of compliance for each condition is outlined in Appendix X Bengalla Environmental Monitoring Program (Bengalla, 2010) All conditions and commitments with the Bengalla Environmental Monitoring Program (Bengalla, 2010) were identified as compliant or not triggered, however three conditions have been identified as not compliant due to compliance not able to be assessed (refer to Table 14). Recommendations for Bengalla Environmental Monitoring Program can be found in Table 16. A detailed assessment of compliance for each condition is outlined in Appendix Y. Table 14 Non-compliance against Bengalla Environmental Monitoring Program (Bengalla, 2010) Reference Commitment Audit Finding 3.1 The QA program shall incorporate all listed and referred to specifications, manufacturer s requirements, third party testing and on site testing requirements. The QA program shall use quality inspection and test plans and these shall be robust in their function, operation and requirement The Service Provider shall have a Quality Management and Assurance (QA) program, the QA program shall incorporate all listed and referred to specifications, manufacturer s requirements, third party testing and on site testing requirements. The QA program shall use quality inspection and test plans and these shall be robust in their function, operation and requirement. Compliance of these conditions could not be verified at the time of the audit. Revision B 30-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

33 AECOM Independent Environmental Audit Environmental Pollution Incident Response Management Plan (Bengalla, 2012) All conditions and commitments in the Environmental Pollution Incident Response Management Plan (Bengalla, 2012) were identified as compliant or not triggered. Recommendations for Bengalla s Environmental Pollution Incident Response Management Plan can be found in Table 16. A detailed assessment of compliance for each condition is outlined in Appendix Z Independent Environmental Audit, Bengalla Mine (AECOM, 2010) Table 15 shows the conditions that were found to be not compliant with Independent Environmental Audit, Bengalla Mine (AECOM, 2010). A detailed assessment of compliance for each condition is outlined in Appendix AA. Table 15 Non-compliances against previous IEA (AECOM, 2010) Reference Commitment Audit Finding 8 DA 211/93 - Schedule 3, Condition 50 Communicate with NSW Rural Fire Service and Council to confirm what is necessary. 10 DA 211/93 - Schedule 5, Condition 46b Locate evidence of when works were completed for addition into next independent audit. 15 SEE Review tenancy situation and update agreements. Bengalla maintains a fleet of water carts onsite and a fully equipped mobile fire-fighting unit with the capacity to respond to bushfires if required. Bengalla's general emergency response team is also onsite also. During 2011, one small grass fire occurred across 3.74 hectares of Bengalla land. The incident was managed by Bengalla, and the fire was extinguished promptly. One small fire also occurred in the CHPP work area in 2011 and was also managed by site personnel. Bengalla have conducted consultation with NSW RFS (Report in to bushfire hazards and controls at Bengalla Mine Complex provided to auditors), however, evidence of communication with council could not be provided at the time of the audit. Compliance of these conditions could not be verified at the time of the audit. Revision B 30-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

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35 AECOM Independent Environmental Audit Assessment of Environmental Performance 4.1 General Environmental Management This section provides an assessment of the environmental performance of BMC, as required by Condition 9(c), Schedule 5 of the Development Approval 211/93 (as modified). A number of non-compliances, identified in this IEA, relate to the failure to submit to or have documents approved by the regulators within the required timeframes. Many non-compliances identified relate to the same issues due to the repetition of commitments between the consent documents and management plant, resulting in the same non-compliance being identified a number of times. A number of isolated environmental incidents have occurred at BMC during the audit These include: - Seven exceedances of the 24 hour average criterion of PM 10 occurred within the audit Three exceedances occurred in 2010, three in 2011 and one exceedance occurred in In each of these years, the annual PM 10 averaging criterion was not exceeded; - BMC exceeded the development consent noise criterion during 2012, where monitoring results recorded noise levels of 41dBA, Six exceedances of the blast overpressure of 115 db were recorded in 2011 and 2012; and - On 11 January 2012 the failure of a scour valve located on a water pump resulted in an uncontrolled water discharge of 2.5 megalitres of mine water from that pipe. Following environmental incident occurrences BMC are consistent in implementing operational restrictions and containment measures to ensure ongoing compliance with approval criterion. It is considered none of these incidents resulted in the definition of environmental harm, under the Protection of the Environment and Operations Act 1997, being met. At the time of the audit BMC were aware of most of the non-compliances identified. However, a more aggressive approach could be taken in terms of the application of BMCs management plans on site. This was further exemplified by the following observations made during the audit site inspection: - Poor agricultural management of alluvial lands, including absence of agricultural assessments; - Sections of haul roads (particularly corners and bends) unwatered and allowing particulate mobilisation (refer Section 5.3.4); - Lack of routine monitoring; and - Malfunction of monitoring equipment including; blasting monitor not working, failure of continuous monitoring equipment and failure of scour valve, resulting from poor maintenance of monitoring equipment. The auditors made the following observations during the site visit conducted from 26 to 28 August 2013: - Housekeeping at Bengalla and the overall appearance of Bengalla was adequate; - Interviews with Bengalla staff and the operations observed by the auditors during the site visit confirmed that Bengalla continues to operate a real time environmental monitoring system which includes alarms and meteorological forecasting linked to a weather station. Under certain weather conditions, alarms will come up at dispatch so that operations can be modified for noise and dust. Interviews with Bengalla staff confirmed that site planning meetings are undertaken each Friday, where forward planning for operations is discussed, including the influence of meteorological conditions; - BMC maintains excellent dialogue with community members regarding environmental issues. This was evidence during the audit through a review of Community Consultative Committee (CCC) minutes and interviews with key BMC staff. During the audit interview the auditors spoke with BMC staff about the Carbon Farming Initiative undertaken by BMC. The Carbon Farming Project increases productivity and profitability for Hunter Valley farmers through improved soil fertility and the storing of carbon; and - The auditors noticed poor management causing possible land degradation of the alluvial lands. Key observations made during the audit site visit included irrigation equipment not being maintained, overstocked paddocks causing over grazing, a lack of adequate effort to maintain improved pastures and poor effluent management. Revision B 30-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

36 AECOM Independent Environmental Audit Noise Management Generally the requirements of the DA 211/93 have been adhered to (as witnessed by the audit team on site) by the BMC during the period of in relation to noise management. During the audit period there has been 1 exceedance of the noise criteria specified in Schedule 3 of DA On this occasion a value of 41 db(a) was monitored at Racecourse Road (Farrell Residence) and an incident report was prepared and submitted to DP&I. It should be noted that the report submitted to DP&I was two days outside of the 7 day response In general the number of exceedances of the criteria detailed in DA 211/93, during the period 2010 to 2012 was low. The instigated monitoring and assessment procedures applied when exceedances are recorded are deemed to appropriately mitigate the potential impacts of excessive noise on nearby sensitive receivers Blasting Management Generally the requirements of the Development Consent DA 211/93 and the Environmental Protection License (EPL) 6538 have been adhered to (as witnessed by the audit team) by the BMC during the period of in relation to blast management. The levels of vibration and overpressure at private residences show that the design, implementation and management of blasting at the site has matured at the site and is acceptable. The audit team noted that there are a number of blast related complaints for the audit period despite the good results recorded by the site indicating that the community is somewhat sensitised to blasting. Vigilance with respect to ground and weather conditions should be continued for fume generation - though the Post Blast Fume Generation Mitigation and Management Plan as reviewed on-site by the audit team provides a good basis for the minimisation of fume from blasting. The site should be commended on blast management and encouraged to maintain the good standard and to continue to improve where possible. In general the number of exceedances of the criteria detailed in DA 211/93 and EPL 6538, during the period 2010 to 2012 were low. The instigated monitoring and assessment procedures applied when exceedances are recorded are deemed to appropriately mitigate the potential impacts of blasting on nearby sensitive receivers Air Quality Management While compliance was generally met against the Bengalla Air Quality and Greenhouse Gas Management Plan (Bengalla, 2012), a number of observations were made by the auditors during the site inspection which suggests air quality management at BMC could be improved. Small amounts of fugitive dust were observed by the audit team, in addition elevated levels of dust were observed in the mine pit itself (refer Section 5.3.4). The Lead Auditor noticed, on a day other than the day of the audit site visit, large amounts of dust leaving site at BMC. It should be noted that conditions on that day were particularly bad in the area causing some neighbouring mines to have similar problems Rehabilitation Management The site procedures demonstrated a procedural based approach to the handling of cleared vegetation, topsoil handling, landform establishment and revegetation. The rehabilitation program at Bengalla demonstrates that the site has successfully transferred soils from the alluvial areas to post mined lands and established and revegetated these sites to Land Capability Class III. Issues such as weed control were undertaken on a seasonal program targeting Galenia and African Boxthorn both of which are known to be highly invasive on mine sites across the Hunter region. The Overburden Dump facing Muswellbrook has been seeded with a mix of native and exotic species, with a preferred high density tree cover. As these areas have only been seeded within the past 12 months and the ensuing weather conditions have been unseasonably dry, monitoring and maintenance works may be required to ensure the adequacy of the revegetation in these areas. Areas where slopes exceeded 10 degrees and on dam batters where vegetation cover has not yet been established will likewise require monitoring and maintenance to ensure mitigation of topsoil loss from wind and water erosion. Revision B 30-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

37 AECOM Independent Environmental Audit Review the adequacy of Environmental Management Plans This section addresses Condition 9(d), Schedule 5 of Development Approval 211/93 (as modified), which requires this IEA to review the adequacy of strategies, plans or programs required under the abovementioned instruments. Interviews with BMC staff and a general site inspection have identified key trends that occur across all of the management plans, these include: - The Environmental Department demonstrated a high level of knowledge of the plans; - There have been ongoing issues with obtaining explicit written confirmation from the regulators for new and updated versions of management plans; and - While the content of the BMC management plans is in accordance with consent requirements, there was, at the time of the audit, room for improvement in the application of the management plans on site at BMC. 5.1 Bengalla Coal Mine: Mining Operations Plan (Bengalla, 2013) BMC submitted a new Mining Operations Plan (MOP) to the Department of trade and Investment Division of Resources and Energy (DRE) for the period of January 2013 to January 2015, which was approved in December The new MOP outlines rehabilitation plans for the next two and a half years, and will allow the continuation of mining at BMC during the time. Condition 1 and 2 of ML 1450 and ML 1592 requires the MOP to identify: - Areas proposed to be disturbed under the Plan; - Mining and rehabilitation method(s) to be used and their sequence; - Areas to be used for disposal of tailings/waste; - Existing and proposed surface infrastructure; - Existing flora and fauna on site; - Progressive rehabilitation schedules; - Areas of particular environmental, ecological and cultural sensitivity and measures to protect these areas; - Water management systems (including erosion and sediment controls); - Proposed resource recovery; and - A mine closure plan including final rehabilitation objectives, methods and post mining land use. In addition the MOP also reflects the conditions of approval under: - The Environmental Planning and Assessment Act 1979; - The Protection of the Environment Operations Act 1997; - Any other approvals relevant to the development including the conditions of this lease; and - Has regard to any relevant guidelines adopted by the Director-General. The auditors noted assessed seeded areas across Bengalla Mine site during the audit site inspection. Areas were observed to be shaped, with subsoil of around 400 mm and topsoil of around 500 mm which was sourced from land capability Class II. On application these soils have been ripped and rock raked. BMC continues to engage specialists to assist with rehabilitation methods. The auditors viewed the Eastern Overburden Dump during the site inspection. Contoured landscape was identified with a slope of more than the 10% criteria. With the exception of one administrative non compliance, all of the conditions in the Mining Operations Plan were found to be either compliant, or not triggered. An extensive list of each condition and audit findings can be found in Appendix L. One recommendation has been made by the auditors in relation to the Mining Operations Plan. Rehabilitation activities within the BMC MOP are conducted in conjunction with the BMC Rehabilitation Management Plan (Bengalla, 2013). Revision B 30-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

38 AECOM Independent Environmental Audit 28 A detailed list of each condition and the corresponding audit finding can be found in Appendix L. 5.2 Rehabilitation Management Plan (Bengalla, 2013) The BMC Rehabilitation Management Plan (RMP) is required under schedule 3, condition 41 of DA 211/93 (as modified). The RMP provides a framework for the management and implementation of works associated with the rehabilitation of post mined and unmined lands at BMC. The objectives of the RMP are to: - Ensure compliance with relevant statutory requirements and BMC policies and standards relating to rehabilitation; - Ensure that rehabilitation activities are applied consistently with the MOP; - Develop an undulating, free-draining landform with an optimum land capability which supports agricultural land for predominately cattle grazing and native habitat; - Ensure the final landform is undulating, with slopes generally to 10, and up to a maximum of 18 on the low wall with effective erosion and sediment control measures; and - Describe the objectives for the final landform. During the site inspection the auditors sighted evidence of a current review program which is in place in relation to the management of non-mined lands. However, there was no evidence to show that the agricultural productivity of this land continues to be assessed. Final void infrastructure was not yet relevant at the time of undertaking this audit and overburden is landscaped as per the MOP and the Bengalla Technical Services Project Execution Plan Rehabilitation (February, 2013). Water management areas were observed during the site visit to have steep dam batters with no cover crops or other vegetation, with poses the risk of batter erosion. However it should be noted that Bengalla had commenced rehabilitation shortly prior to the audit being conducted, as such, cover crops has not had time to establish. The audit has identified a number of areas in which the management plan could be enhanced, this includes: - The addition of a pictorial representation in the variation in slope for areas of post mining rehabilitation i.e. those areas returning to 10 degrees and those areas returning up to a maximum of 18 degrees; - Details on the management of weeds and feral animals; and - Contingency measures for the rehabilitation program during periods of extended dry / hot weather conditions. A detailed list of each condition and corresponding audit finding can be found in Appendix M. In addition to the above suggested improvements, Recommendations made by the auditors in relation to the BMC RMP can be found in Table Environmental Management Strategy (Bengalla, 2013) The preparation of an Environmental Management Strategy (Bengalla, January 2013) is required by Schedule 5, condition 1 of DA 211/93. The BMC Environmental Management Strategy (EMS) (Bengalla, 2013) is a comprehensive and well-developed ISO14001 certified system. The EMS is comprised of environmental procedures and standards for particular aspects and impacts of its operations. During the audit, each of the conditions outlined in the EMS were found to be either compliant or not triggered. No recommendations have been made by the auditors in relation to the EMS at BMC. An exclusive list of each condition and audit finding can be found in Appendix N Landscape Management Plan (Bengalla, 2013) The Landscape Management Plan (LMP) (Bengalla, 2013) is required under Schedule 3, Condition 35 of DA 211/93 (as modified). The LMP was completed in April On 17 December 2012 the DP&I granted an extension for the submission of this plan until 31 January The draft LMP was submitted for approval by the Director General on 31 January One non-compliances were identified against the LMP by the audit team. This related to the lighting design for infrastructure at BMC was not verified to comply with AS 1680 Interior Lighting Code. Revision B 30-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

39 AECOM Independent Environmental Audit 29 The BMC Landscape Management Plan adequately addresses the issues pertaining to the management of external lighting across the site. A detailed list of each condition and the corresponding audit findings can be found in Appendix O Aboriginal Cultural Heritage Management Plan (Bengalla, 2012) The preparation of an Aboriginal and Cultural Heritage Management Plan (ACHMP) is required under Schedule 3, Condition 29 of DA 211/93 (as modified). The ACHMP was prepared in September 2012 and subsequently approved by the Director General on 9 November The ACHMP includes the following for the management of Aboriginal and historic heritage on site at BMC: - Salvage, excavation and management procedures for aboriginal sites and potential archaeological deposits for both within and outside the development disturbance area; - Procedures for managing and monitoring the potential impacts of blasting on aboriginal sites; - Details on the maintenance and management of access to aboriginal sites by the Aboriginal community; - Procedures detailing BMCs contribution to Aboriginal cultural heritage management as well as ongoing consultation and involvement of the aboriginal community; and - Management of any new aboriginal objects or skeletal remains identified during the development. All conditions and commitments in the ACHMP were identified as compliant or not triggered. A detailed list of each condition and corresponding audit finding can be found in Appendix P European Heritage Management Plan (Bengalla, 2012) The European Heritage Management Plan (EHMP) (Bengalla, 2012) satisfies the requirements of Schedule 3, Condition 29 of DA 211/93 (as modified). The EHMP was completed in September 2012 and subsequently approved by the Director General on 9 November The EHMP details management of any other historical heritage on site at BMC in addition to Aboriginal cultural heritage. Specifically the EHMP details the following: - A review of existing heritage items in the vicinity of BMC; - Conservation Management Plans for both the Bengalla and Overdene homesteads; - Measures that mitigate identified impacts or BMC commitments relating to the preservation of specific items - General European heritage management measures regarding BMC operations, including unexpected finds procedures; and - Monitoring requirements for heritage locations. All conditions and commitments in the EHMP were identified as compliant or not triggered. A detailed list of each conditions and corresponding audit finding can be found in Appendix Q Overdene Conservation Management Plan (Bengalla, 2012) The Overdene Conservation Management Plan (OCMP) (Bengalla, 2012) satisfies the requirement of Schedule 3, Condition 29(c) of DA 211/93 (as modified). This plan is situated under the BMC EHMP and was subsequently approved by the Director General on 9 November All conditions and commitments in the OCMP were identified as compliant or not triggered. A detailed list of each conditions and corresponding audit finding can be found in Appendix R Bengalla Homestead Conservation Management Plan (Bengalla, 2012) The Bengalla Homestead Conservation Management Plan (BHCMP) (Bengalla, 2012) satisfies the requirement of Schedule 3, Condition 29(c) of DA 211/93 (as modified). This plan is situated under the BMC EHMP and was subsequently approved by the Director General on 9 November All conditions and commitments in the BHCMP were identified as compliant or not triggered. A detailed list of each conditions and corresponding audit finding can be found in Appendix S. Revision B 30-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

40 AECOM Independent Environmental Audit Air Quality and Greenhouse Gas Management Plan (Bengalla, 2012) The preparation of an Air Quality and Greenhouse Gas Management Plan (AQGGMP) is required by Condition 23 A from Development Approval 211/93 (as modified Mod 4). The AQGGMP describes Bengalla s strategy for controlling air quality and addressing potential air quality impacts. The AQGGMP was submitted for approval to OEH on 29 th February 2012 and in a letter from the EPA received by BMC on 6 th March 2012, the EPA provided no comments. DP&I approval was received on the 9 th November The key objectives of the AQGGMP are to: - Ensure that all relevant statutory requirements and BMC policies and standards relating to air quality and GHG emissions are met at BMC; - Employ applicable best practice and air quality tools to manage and minimise the impact of dust, fumes and odour from mining operations on the environment and nearby residences; - Ensure that the results of air quality monitoring comply with applicable criteria; - Ensure that the release of GHG emissions from BMC are minimised; and - Maintain an effective response mechanism for dealing with issues and complaints. During the conduct of the audit, the commitments made in the AQGGMP were generally complied with or not triggered (either due to the timing of the requirement or due to the right circumstances not eventuating). The only exceptions to this were from the Wind Erosion of Exposed Areas section particularly the commitments in Table 2: - Review currently exposed overburden surface areas to assess material and surface characteristics (moisture and silt content) and the period over which such areas are to remain active. - Investigate most suitable interim stabilisation methods to the currently exposed overburden emplacement areas identified. Evidence for the completion of both of these items was not able to be provided to the auditors by BMC for the audit An extensive list of each condition and audit finding made against the AQGGMP can be found in Appendix T. The content of the AQGGMP was also audited against each specific requirement in Condition 23 A from Development Approval 211/93 (as modified Mod 4). The Audit found two non-compliances against the AQGGMP (refer Section ). During the site inspection discussions took place in relation to direct seeding the overburden stockpiles via an aerial seeding program as per that at other sites across the Hunter including Coal & Allied Mt Thorley Warkworth. However, No evidence of such investigations was provided to the audit team. The AQGGMP requires BMC to review currently exposed overburden emplacement areas and assess the material and surface characteristics and the period which areas are to remain inactive. The auditors were unable to obtain evidence that this has taken place during the audit During the three day site visit from 26 to 28 August, the auditors noted that despite generally good compliance with the AQGGMP, there were some areas where particulate control could have improved that were observed during the site inspection. Of particular note were areas around intersections and tight corners that were not watered due to safety concerns. These areas were generating noticeable levels of particulates. There were also some lightly trafficked areas that had high levels of loose fines on the surface (one example was the hydrocarbon remediation area). This small area with light traffic would not generate a lot of dust through vehicle movement but when a number of smaller areas like this are in this condition and the wind rises in intensity there is a large potential for particulate generation. BMC should investigate and implement a suitable solution to these sources of fugitive dust emission to improve site air quality performance. BMC should also review the practise of not watering intersections, the audit team have observed other sites where this is conducted however if the safety issues prove to be insurmountable then other options should be explored. Should the reviews discussed require a change in practise then BMC should alter the AQGGMP and seek the approval of the DG, DP&I. Revision B 30-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

41 AECOM Independent Environmental Audit Water Management Plan (Bengalla, 2012) The Water Management Plan (WMP) (Bengalla, 2012) is required under Schedule 3, Conditions 28 of the DA 211/93 (as modified). The WMP was completed in September 2012 and first provided to the Director General for approval on 29 February The finalised plan was subsequently approved by the Director General on 9 November 2012). The auditors viewed monthly surface water quality monitoring reports which complied with the conditions set out in the WMP. Quarterly assessments of all erosion control and sediment retention devises were also reviewed by the auditors. BMC conducted monthly assessments for erosion control and sediment retention devises in 2010 and There is evidence to suggest that these assessments have continued in 2013; however, there is nothing to confirm that assessments are being conducted quarterly as is required by commitment 3.8 of the WMP. During the audit period an unauthorised discharge of mine water was released as a result of a failed scour valve connected to a water pipe. 2.5 megalitres of mine water was released from the pipe. The incident was report to the EPA and the DP&I on the same day, and the EPA was subsequently provided with a written report on the incident. The results indicated that potential for environmental harm to have been caused by the incident was negligible. This event shows that BMC has effective systems in place to be able to manage such an environmental harm incident in the event that it was to happen. Recommendations relating to the WMP can be found in Table 16. A detailed list of each condition and the corresponding audit finding can be found in Appendix U Noise Management Plan (Bengalla, August 2013) The Noise Management Plan (NMP) (Bengalla, 2013) is required under Schedule 3, Condition 8 of DA 211/93 (as modified). At the time of this audit the NMP had been submitted to the DP&I for approval, however approval had not been granted from the Director General. The NMP managed BMC s project specific and cumulative noise impacts associated with mining activities and is applicable to the management of all noise impacts associated with the activities at the site. The objectives of the NMP are to: - Ensure that all relevant statutory requirements and BMC policies and standards relating to blasting and vibration are met; - Provide monitoring requirements and ensure that vibration and overpressure amenity level are achieved; - Ensure that operational noise from Bengalla is effectively managed; and - Provide a protocol for monitoring performance, evaluating noise compliance and measuring the effectiveness of controls undertaken by site to effectively manage noise. The audit identified one non-compliance against the BMC NMP. This non-compliance relates to a failure to display available in the operation dispatch area the relevant cumulative criterion. During the site visit the auditors viewed this real time monitoring in use (via computer screen in control room). However, this real time monitoring does not include cumulative criterion as this is not really possible to delineate from the control room; Observations during the audit interview and site inspection concluded that noise acquisition, cumulative noise criteria and cumulative noise acquisition criteria have not been exceeded during the audit A real time noise monitoring network is operational on site. The system utilises meteorological data and triggers alarms under certain conditions. Weekly planning sessions discuss the work and meteorological forecast for the week to come. This IEA has found that the BMC NMP adequately addresses the requirements of DA Recommendations relating to the NMP can be found in Table 16. A detailed list of each condition and corresponding audit finding can be found in Appendix V Blast Management Plan (Bengalla, 2013) The Blast Management Plan (BMP) describes BMC s strategy for controlling blasting impacts through vibration and overpressure. The BMP was submitted for approval to NSW EPA, RMS and DP&I on 30 January 2013, the EPA and RMS didn t comment, DP&I approval was issued on the 1 May It should be noted that the date for submission of the BMP was pushed back with the approval of DP&I, so the submission date is not in accordance with the requirements issued with the approval of the latest DA modification. Revision B 30-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

42 AECOM Independent Environmental Audit 32 The key objectives of the BMP are to: - Ensure that all relevant statutory requirements (specifically Schedule 3, Condition 16 of DA 211/93(as modified)) and BMC policies and standards relating to blasting and vibration are met; - Provide monitoring requirements and ensure that vibration and overpressure amenity levels are achieved; - Provide appropriate road closure protocols; - Describe the public blast notification process and measures to maintain an effective response mechanism for dealing with issues and complaints; and - Outline reporting requirements in relation to blasting activities undertaken as part of continued operations at BMC. During the conduct of the audit, the commitments made in the BMP were either complied with or not triggered (either due to the timing of the requirement or due to the right circumstances not eventuating). During 2010, five exceedances of the blast overpressure level of 115 db were recorded, these were investigated and were determined to be attributed to wind gusts affecting the measurements and were not considered blast related. During 2011, 1 exceedance of the blast overpressure level of 115 db was recorded, this was investigated in accordance with the BMP and a review of blast patterns was undertaken. During 2012, no exceedances were recorded. No blast induced vibration exceedances were measured during the period 2010 to One blast event in 2011 and one event in 2012 were not recorded. In both cases the reasons for not capturing the events were reviewed and rectified. The 2011 event was not captured due to a failure to follow the monthly reporting process. The 2012 event was not captured due to an equipment failure respectively. A detailed list of each condition and the corresponding audit findings can be found in Appendix W. Three recommendations have been made by the vibration specialist auditor in relation to the BMP (refer Table 16). 5.4 Environmental Monitoring Program (Bengalla, 2010) To satisfy requirements under the EPL 6538 and DA 211/93 the Environmental Monitoring Program (EMP) (Bengalla, 2010) was developed. The EMP operates in conjunction with the BMC EMS. The EMP consolidates all of BMCs monitoring requirements into a single document. This includes monitoring relating to: - Noise; - Blasting; - Air quality; - Metrological monitoring; - Surface and groundwater monitoring; - Rehabilitation and flora and fauna monitoring; - Spontaneous combustion and acid rock drainage monitoring; - Monitoring of contaminated sites; - Greenhouse gas; and - Waste monitoring. All conditions and commitments in the EMP were identified as compliant or not triggered. A detailed list of conditions and the corresponding audit findings can be found in Appendix Y. Recommendations made in relation to the EMP can be found in Table 16. Revision B 30-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

43 AECOM Independent Environmental Audit Environmental Pollution Incident Response Management Plan (Bengalla, 2012) As a holder of an EPL, BMC is required to comply with the requirements of the Protection of the Environment Operations Act 1997 (POEO Act) which requires BMC, under Part 5.7A of the POEO Act, to prepare, keep, test and implement a pollution incident response management plan. In the event of a pollution incident occurring at BMC such that material harm to the environment is caused or threatened, the Environmental Pollution Incident Response Management Plan (EPIRMP) (Bengalla, 2012) will be immediately implemented. The primary priority of the EPIRMP is to ensure the protection and preservation of life, the environment and assets. The prime objectives of the EPIRMP are to ensure that: - Emergency information is available and maintained as current; - Emergency response procedures are documented and communicated; - Emergencies are managed according to defined protocols to minimise and control the risk of a pollution incident; and - Emergencies are reported according to defined requirements. All of the conditions composing the EPIRMP were identified as compliant or not triggered for the purpose of this audit. A detailed list of conditions and their corresponding audit findings can be found in Appendix Z. Recommendations made in relation to the EPIRMP can be found in Table 16. Revision B 30-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

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45 AECOM Independent Environmental Audit Recommendations This section addresses Condition 9(e), Schedule 5 of Development Approval 211/93 (as modified) which requires this IEA to: if necessary, recommend appropriate measures or actions to improve the environmental performance of the development, and/or any strategy, plan or program required under the abovementioned instruments. This IEA audited over 2015 conditions and commitments in the Development Approval, EPL, mining tenements, the Environmental Assessment and the relevant management plans. Many of the non-compliances noted in this IEA relate to the same issue which, due to the repetition of commitments between consent documents and management plans, raise the same non-compliance issue numerous times. 33 non compliances were identified by this IEA (refer section 3.0). Table 16 presents key recommendations stemming from this IEA in relation to all non-compliances with approvals and management plans. Table 16 is intended to provide guidance for BMC in resolving these non-compliances. Table 16 Consolidated Audit Recommendations Reference Commitment Recommendation Development Approval 211/93 (as modified) Schedule 3, Condition 39 The Applicant shall rehabilitate the site to the satisfaction of the Executive Director, Mineral Resources in DRE. This rehabilitation must be generally consistent with the proposed rehabilitation strategy described in the EIS and EA, and comply with the objectives in Table 14. Mining Operations Plan (Bengalla, ) Erosion control within rehabilitated areas is managed using the following techniques: Construction of contour banks on steep areas to direct runoff water and minimise riling; Lined drop structures to collect runoff from contour banks and direct runoff to approved sedimentation structures; Deep ripping prior to seeding to increase water infiltration and soil moisture, and provide a seed bed for rapid germination; Planting of a cover crop on both pasture and tree seeded areas to stabilise the surface; and Engagement of specialist rehabilitation consultants to assist in rehabilitation techniques. Rehabilitation Management Plan (Bengalla, 2013) 3.3 The topsoil stockpiles will be: Located as close as practicable and readily accessible to re-spreading areas; Located where they will not interfere with present and future mining and ancillary operations; At least 10 m from trees or watercourses; and In areas that will allow free drainage and minimal soil erosion. If the monitoring of the direct seeded area ascertains that revegetation techniques have not produced the required high density tree cover, then a review of the area should be conducted to determine the most appropriate mitigation measures to ensure the successful establishment of the dense planting. These measures should then be implemented. It is recommended that, for water management areas, dam batters are vegetated, especially during the initial stages of development (e.g. prior to dam filling). Seeded areas were observed by the auditors during the site visit. Areas were observed to be shaped, with subsoil of around 400 mm and topsoil of around 500 mm which was sourced from land capability Class II. On application these soils have been ripped and rock raked. BMC continues to engage specialists to assist with rehabilitation methods. It is recommended that, where practical, topsoil is not to be moved during periods of extreme dry weather. Revision B 30-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

46 AECOM Independent Environmental Audit 36 Reference Commitment Recommendation 5.1 The key objective of site rehabilitation is to achieve an optimum post-mining land capability suitable for supporting a combination of grazing and native habitat land use. Detailed rehabilitation objectives and completion criteria, consistent with these post mining land use objectives are listed in Table It is likely that most domains will require a different rehabilitation methodology to achieve the intended post-mining land use. Rehabilitation objectives for each domain are presented in Table A combination of grazing and limited native bushland regeneration will be adopted as the preferred post-mining land use in suitable areas of the site, with a focus on linking remnant vegetation with rehabilitation. Water Management Plan (Bengalla, September 2012) BMC operates three HRSTS monitoring points around its operations as shown in Figure 7 and Table 7 to monitor upstream and downstream water quality from the discharge point For the first 12 months after completion of construction, an additional site inspection will be undertaken after any significant rainfall event (> 20 mm in 24 hours) to assess any adverse impacts due to local stormwater runoff or flow through the diversion channel. 3 All surface drainage systems on rehabilitated areas will be designed to be consistent with Guidelines for Establishing Stable Drainage Lines on Rehabilitated Minesites (Draft) (DLWC 1999). Noise Management Plan (Bengalla, 2013) 5.1 Monitoring data at each location will be collected in 15 minute periods and the Leq db(a) result recorded. If the reading is below all criteria, then the result will be recorded as being in compliance and monitoring can move onto the next monitoring location. If mining noise levels exceed any criterion and are taken in valid meteorological conditions then the steps in condition 5.1 are to be followed. (refer section 5.1 NMP) It is recommended that BMC review the seed mix used in its rehabilitation program in the context of the habitat values it offers. It is recommended that BMC include the assessment of land capability into the overall rehabilitation monitoring program at Bengalla. It is recommended that BMC develop a formal plan that incorporate water structures, existing areas of native vegetation, the use of woody debris and also defines the seeding mix and areas to provide linkages. Evidence as per site inspection - need evidence of formal plan that shows the planned approach to connectivity. It is recommended that the reference to EPA03 be reviewed, as Point 3 under EPL 6538 is used for air quality monitoring. It is recommended that the Water Management Plan be updated so that it is less prescriptive on this point. It is recommended that this language be reviewed during the next update of the Water Management Plan. The updated requirement could say something like "all drainage systems will be designed to be long-term stable." It is recommended that, in the next round of quarterly noise monitoring undertaken after the IEA is finalised, this methodology is clarified in the noise monitoring report to ensure it is being complied with. Revision B 30-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

47 AECOM Independent Environmental Audit 37 Reference Commitment Recommendation 5.2 The following data parameters, as returned from each unattended monitoring site and the site weather station, will be trended in real time and display available in the operation dispatch area as a management tool: - Omnidirectional low pass LA db (estimated total mining LAeq); - Wind speed; - Wind direction; - Atmospheric stability class; - The relevant impact criterion; and - The relevant cumulative criterion. Homestead Conservation Management Plan (Bengalla, September 2012) BMC is to clearly identify the individual responsible for the oversight of this CMP. European Heritage Management Plan (Bengalla, September 2012) It is recommended that this reference to cumulative criterion be removed during the next revision of the noise management plan. It is recommended that this be rectified in the next update of the European heritage management plans. 4.2 & It is recommended that these requirements are removed from the next version of the plan. Environmental Management Program (Bengalla, August 2010) BMC currently calculates emissions, and convert these to a carbon dioxide equivalent tonnage to provide a Greenhouse Gas emission inventory on a monthly basis Schedule 3, Condition 22 of DA211/93 (M3) specifies Operating Conditions at Bengalla in order to reduce air quality impacts, ensuring: (refer section EMP) Bengalla operates three HRSTS monitoring points around its operations to monitor upstream and downstream of the discharge point. General It is recommended that this language be updated in the next version of the Environmental Monitoring Program It is recommended that the reference to Condition 22 be updated to Condition 21 during the next revision of the Environmental Monitoring Program. It is recommended that the reference to EPA03 be reviewed, as Point 3 under EPL 6538 is used for air quality monitoring. Generally DA 211/93 Schedule 5, Condition 4; MOP ( ) Condition 10.1; EPIRMP Condition 3 and Previous IEA Condition 12 Bengalla will continue consultation with the dairy manager regarding the performance of the dairy. It is recommended that BMC consolidate the review and update of its management plans to ensure that this is recorded and responded to when required. This could be done in the form of an electronic table which a checklist for each triggering action and annual review dates for each Bengalla management plan. Revision B 30-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

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49 AECOM Independent Environmental Audit A Appendix A Audit Team Curricula Vitae Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

50 AECOM Independent Environmental Audit a-1 Appendix A Audit Team Curricula Vitae Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

51 1 Résumé Peter Horn Associate Director - Environment Qualifications Master of Applied Science (Environmental Management and Restoration) Bachelor Applied Science (Environmental Science) Lead Auditor Environmental Compliance and Environmental Management Systems (certified by RABQSA) Affiliations MEIANZ (Environmental Institute of Australia and New Zealand) MCASANZ (Clean Air Society of Australia and New Zealand) Career History Peter has 18 years experience providing professional environmental services to industry and a further 15 years industry experience. Peter has extensive experience as a Director, Project Manager and Team Member for a range of clients in the management of environmental controls and issues including environmental assessment, strategic environmental advice, EMS implementation and auditing, application of ESD principles, contaminated land management and Legal compliance. His project direction experience includes numerous multi-disciplinary projects with deliverables from a broad range of skill sets. Peter has developed skills in all aspects of environmental management and a good general overview of the project development process. These skills include Project Management, Environmental Assessment, Environmental Constraints Analysis, Air Quality and Noise, Stakeholder Consultation, Site Investigation and Remediation, Hazardous Chemicals Management, Ecologically Sustainable Development, Environmental Management Systems, Energy and Climate Change, Water and Waste Water, Community Consultation, Approvals Management, Ecological Rehabilitation, Management of Contractors and Consultants and Communication with key Stakeholders including Regulatory Authorities. Peter has audited environmental compliance, Environmental Management Systems, NSW Planning approval conditions, Environment Protection License compliance, construction compliance and general environmental performance since completing an ISO based auditing course in He has been accepted by NSW Planning as a lead auditor on twelve audits, by NSW Division of resources and energy on two audits and by the NSW Office of Water on an audit to date. 23-Mar-2011

52 AECOM Résumé Peter Horn Associate Director - Environment 2 Detailed Experience Auditing Peter is a certified lead auditor for Environmental Management Systems and Environmental Compliance and has conducted a range of environmental audits across various industries including manufacturing, mining, power generation, Defence and construction. Audits have been focused on general environmental compliance, compliance with approval requirements, compliance with Environment Protection Licenses, compliance with Environmental Management Systems, industry best practice and cleaner production and due diligence audits associated with sale or purchase of assets. Recent projects include: - Compliance audit of Eraring Energy s Eraring Power Station and six Hydro-electric generation sites. - Compliance audit of a gas fired power station at Barcaldine, Central Queensland Power for the establishment of and EMS (now Origin Energy). - Due diligence audit for AGL pre-joint venture with ACTEW which when successful formed a large joint venture to deliver energy, water and waste water services to the Australian Capital Territory. - Audited three Defence sites and developed EMPs for the sites based on the audit observations as sole auditor. - Audit of the Environmental Management of a sewage treatment plant for the Department of Defence at Williamtown, NSW as a sole auditor. - Chemical and due diligence audits of 5 of Hunter Waters water and waste water treatment plants. - Due diligence audit for Valspar of its Glendenning paint manufacturing facility focussed on the use and storage of Hazardous Chemicals. Senior auditor in a team of four auditors. - Environmental Compliance Audits of development approval conditions for an explosives mixing plant at Mount Thorley, NSW for Roche Blasting. - Independent Third Party Environmental Audits of Warkworth Mine (2 of), Muswellbrook Coal, Drayton Mine, Integra Mine, Bengalla Mine, Mount Thorley Operations, Mount Owen Complex, Werris Creek Mine, Wilpinjong Mine, Ravensworth Underground Mine and Hydro Aluminium as an approved Lead Auditor (DoP). - Independent Third Party Compliance audits of Exploration Licences as an approved lead auditor by DTIRS DRE for Clarence Colliery and Moolarben Mines. - Independent Third Party Compliance audit of water licences at Ravensworth Surface Operations as an approved lead auditor (by NSW Office of Water). - Independent Third Party Specialist Environmental Audit of Air Quality, Noise and Vibration at Warkworth Mine as an approved lead auditor (NSW Dept of Planning). - Audited two electrical engineering manufacturing plants in Cardiff (NSW) and Mackay (Queensland) and provided the risk elements and skeleton for an EMS at each site as a sole auditor. - EMS audits for University of Western Sydney and Colongra Power Station. - Environmental management audit of New England Trading s Carrington building refurbishment operation, NSW. - Eco-efficiency Audit of a portion of OneSteel s steel rolling and reforming works at Waratah NSW. - Compliance Audits of Hunter Valley Operations, Warkworth, Mount Thorley mines for Coal and Allied. - EPL compliance for CSA Mine (Cobar) and Ashton Coal Mines. Training Train the Trainer, AECOM 2008 NSCA Course in OHS Consultation, 2002 Environmental Management Systems Auditor Training 1997 Professional History 2006 to Current AECOM Australia Pty Limited Associate Director Environment, Principal Environmental Scientist 2005 to 2006 Carbon Based Environmental Ashton Coal Mine, Environmental Officer 2004 to 2005 Environmental Resources Management Senior Environmental Scientist 1999 to 2004 Parsons Brinckerhoff Senior Environmental Scientist 1995 to 1999 ACIRL Senior Environmental Scientist/ Environmental Scientist/ Environmental Technician 23-Mar-2011

53 Résumé Jessica Miller Graduate Environmental Planner Qualifications Bachelor of Laws, University of Newcastle Advanced Diploma of Applied Environmental Management, Belmont TAFE Bachelor of Arts (Sociology and Anthropology), University of Newcastle Master of Social Scient (Planning and Environment), currently studying with RMIT Awards College Dux, St Francis Xavier s College, Hamilton, in years 11 and 12. University of Newcastle Academic Excellence Award in year 12. UAI Career History Jessica commenced employment with AECOM in November 2010 as a Graduate Environmental Planner, having recently completed a Bachelor of Laws and an Advanced Diploma of Applied Environmental Management. In her time working at AECOM, Jessica has been involved in the preparation of environmental assessment reports for various project approvals within the NSW planning framework. This has included writing several Reviews of Environmental Factors and Preliminary Environmental Assessments for submission to the Australian Rail Track Corporation under Part 5 of the Environmental Planning and Assessment Act 1974 (EPA Act), as part of the ARTC s Curve Easing Program on the east coast rail corridor, as well as a Part 5 Review of Environmental Factors for the Roads and Maritime Services to upgrade an intersection on the Central Coast Highway, and a Review of Environmental Factors for exploratory drilling works at Mangoola Coal Mine under Part 5 of the Act. Most recently Jessica has prepared an Environmental Impact Statement for a State Significant Development under Part 4 of the EPA Act, to convert Shell s crude oil refinery in Parramatta into a refined oil storage facility. Jessica has also prepared an Environmental Assessment for a Major Project under Part 3A of the EPA Act for the construction of a bulk liquid fuel storage facility alongside the Newcastle Harbour. In managing post approvals for clients, Jessica has prepared the Annual Environmental Management Report for Hydro Aluminium Kurri Kurri, as well as reviewing and updating the Long Term Management Strategy for Eraring Energy s Coal Combustion Products. In terms of managing client excellence, Jessica also prepared winning a submission for Eraring Energy s entry into the 2011 Hunter Manufacturing Awards. 24-Apr-2013

54 AECOM Résumé Jessica Miller Graduate Environmental Planner 2 Career History (continued) Jessica s personal attributes and qualifications in law and environmental management are well suited to environmental auditing. Since joining AECOM, she has prepared an audit protocol for the Ravensworth North Project to assist with internal compliance. Jessica has also acted as audit assistant for Independent Environmental Audits of Werris Creek Mine, Ravensworth Underground Mine, Mt Owen Mine and Wilpinjong Mine. As audit assistant, Jessica was responsible for developing audit protocol and formulae for reporting environmental compliance, liaising with key clients, and interpreting and determining issues of audit compliance. Jessica has also prepared audit protocol and findings for Independent Audits of Exploration Licences at Moolarben Coal Mine and Clarence Colliery as part of the NSW Department of Resources and Energy s statewide audit of Exploration Licences in mid After starting at AECOM, Jessica was involved in producing quarterly update reports on environmental and occupational health and safety law amendments for Eraring Energy. This has involved providing detailed information about the new Work Health and Safety Scheme in particular. Throughout early 2012, Jessica also completed a five month secondment with AECOM s New South Wales Commercial Team as a Contracts Advisor. This involved liaising with Commercial Counsel to review and assess contractual risks for AECOM, and drafting and negotiating new contractual terms with our key clients. After having returned to her duties as an Environmental Planner, Jessica continues on occasion to work alongside AECOM s NSW Commercial Team to undertake contractual reviews and negotiations when this resource is required. Detailed Experience Jessica has worked on delivering reports to key clients including Review of Environmental Factors, Preliminary Environmental Assessment, and Environmental Assessment reports under the EPA Act. This has involved desktop environmental research, collating specialist information, and undertaking legal research. She is experienced in post approvals management through preparing AEMR reports and undertaking several Independent Environmental Audits and has prepared quarterly environmental and safety law update reports involving legal research and interpretation of statutes and case law. Jessica has reviewed and negotiated contacts for a range of AECOM projects. Conferences Attended AECOM s Graduate Induction conference in Brisbane, March Training WorkCover NSW Construction Induction Communication for Success EQ Delivery Successful Presentations Safety for Life Managing AECOM Projects (MAP) training course Languages Spanish working knowledge Professional History 2010 Present AECOM Graduate Environmental Planner 24-Apr-2013

55 Résumé Kate Michelmore Graduate Environmental Scientist Qualifications Bachelor of Science in Environmental Forensics University of Technology Sydney (2011) Career History Kate commenced employment with AECOM in January 2012 as a Graduate Environmental Scientist. She joined AECOM s graduate program after completing a degree of Environmental Forensics. Kate s studies focused on Environmental Forensics, Environmental Law and Science, Stream and Lake Assessment, Aquatic Ecology, Environmental Protection and Assessment, GIS and Remote Sensing, Physical Aspects of Nature and Chemistry. While studying Kate was involved in a number of bush regeneration projects as a Volunteer with Landcare. In her time working at AECOM, Kate has been involved in the preparation, fieldwork and reporting for a range of environmental investigations. Her combination of environmental science and environmental law makes her well suited to environmental auditing. Since joining AECOM, Kate has assisted with independent environmental audits for Wilpinjong Mine, Mount Owen Complex, Mount Thorley Operations and Ravensworth Underground Mine. Kate has also developed content for a compliance database for Ravensworth Underground Mine, and assisted with the development of an annual report for Hydro Aluminium s Property Management Plan. 29-Mar-2012

56 AECOM Résumé Kate Michelmore Graduate Environmental Scientist 2 Detailed Experience Independent Environmental Audits Hunter Water - Water and Waste Water Chemical Audits 2012 Water Licence IEA Ravensworth Surface Operations 2012 Warkworth Mining Limited Specialist IEA 2012 Mount Thorley Operations IEA 2012 Wilpinjong Coal Mine IEA 2012 Ravensworth Underground Mine IEA 2011 Mount Owen Complex IEA 2011 Her role has included preparation of audit protocols, desktop environmental research, collating specialist s information and report preparation. Environmental Reporting GIS Other Projects Preparation of the Annual Hydro Aluminium s Property Management Plan 2011 Preparation of the 2011 Annual Environmental Management Plan for Hydro Aluminium Kurri Kurri Pty Ltd Assisted in preparation of revised Mining Operations Plan for Ashton Coal Pty Limited Constructed maps detailing vegetation health and fluoride levels using GIS software (ESRI) for the annual Vegetation Health Survey for Hydro Aluminium Kurri Kurri Limited. Assisted in ETRS project for Department of Defence involving classification of hazard estate classes and identification of technical and regulatory requirements as defined in model WHS Legislation (2012). Inputting of ALS data into electronic system for the Centennial Coal Environmental Monitoring Project (Ongoing) Assembling evidence for the Ravensworth Underground Mine Compliance Database 2012 Communication for Success Assertiveness Communication for Success Emotional Intelligence Professional History 2012 Present AECOM Graduate Environmental Scientist Conferences Attended AECOM s Graduate Induction conference in Melbourne, March 2012 Training WorkCover NSW Construction Induction (White Card) Senior First Aid Mar-2012

57 Résumé 1 Peter Sanderson Principal Acoustic Engineer - Acoustics Manager Hunter Region Qualifications BSc (hons) Environmental Geology PgDip Acoustics and Noise Control Engineering Affiliations Associate member Institute of Acoustics (IOA) United Kingdom Member - Australian Acoustical Society Career History Peter is an environmental engineer with eleven years experience in acoustical engineering and waste management engineering. He specialises in the delivery of acoustic assessments for mining, building, environmental and transportation projects. He is principally involved with the management of environmental acoustic impact assessments for large industrial and infrastructure developments, such as mines, waste management facilities, power infrastructure and commercial port facilities. This focus best utilises his geological background and extensive site experience as a resident engineer. Peter has experience with acoustic design and assessment using SoundPLAN modelling software. He is also helping to develop a new acoustic software package aimed at live noise prediction on mine sites in Australian conditions. Prior to developing an interest in acoustic engineering, Peter spent seven years in the waste management sector. His principal responsibilities were the design, construction supervision, quality assurance and operational auditing of new landfill/raise developments. This included extended periods as resident site engineer during construction phases. He has experience of site investigation and interpretation, hydrogeological modelling (using LandSim modelling software), contaminated land remediation and environmental auditing of waste facilities. He has gained experience working in the United Kingdom and Australia. 29-Jul-2012 c:\users\hornp\appdata\local\microsoft\windows\temporary internet files\content.outlook\s1a4b6x0\peter sanderson - auditing (3).doc

58 AECOM Résumé Peter Sanderson Principal Acoustic Engineer - Acoustics Manager Hunter Region 2 Selected Experience - Chain Valley Colliery Acoustic impact assessment as part of EA for licence upgrade through Part 3A - NCIG Stage 2AA (ongoing) Noise compliance measurements of reach stacker and ship loading plant at NCIG, Newcastle. - Mount Thorley Mine Audit Audit of noise compliance monitoring procedures and reporting for Mount Thorley Mine. - Development of Noise Prediction Software for Australian Mining Industry (ACARP) Software development for live noise prediction of mobile plant on mining sites. - Mangoola Exploratory Drilling REF Acoustic impact assessment submitted as part of the REF for exploratory borehole drilling. - Eastern Star Gas Construction and operational noise assessment suitable for submission with the EA for a proposed Liquefied Natural Gas facility on Kooragang Island. - Dartbrook and Drayton South (ongoing) Operational and baseline noise compliance monitoring. - NPC Berth 4 Operational noise assessment of cargo unloading facilities at Mayfield Berth 4 on behalf of Newcastle Port Corporation. - Cononish Gold Mine (UK) Environmental audit following care and maintenance. - Newbigging Proposed Opencast Mine (UK) Background noise monitoring for environmental impact assessment. - Leadloch Proposed Opencast Mine (UK) Background noise measurement and site soil survey for environmental impact assessment. - Port Kembla Outer Harbour Construction and operational noise assessment of $700m port terminal development. - MR82 Construction and operational noise impact assessment for proposed intersection upgrades between the F3 and Newcastle City Centre. - Ballina Bypass Prepared construction noise impact assessment and subsequent mitigation requirements for the Ballina Bypass construction phase. - Wollongong Stabling Yard Project Manager responsible for construction and operational noise assessment and subsequent mitigation options for the proposed Wollongong Stabling Yard Upgrade. - Mount Victoria Stabling Yard Responsible for construction and operational noise assessment for the Mount Victoria Stabling Yard upgrade works. - Sandvik Broadmeadow Acoustic assessment and mitigation recommendations for existing dust extraction system in Broadmeadow, NSW. - Gosford Coastal Carrier Augmentation - Produced construction and operational noise assessments for all five stages of the project. - Medowie Substation Construction and operational noise impact assessment for new zone substation at Medowie, near Newcastle. The site is in the middle of a residential neighbourhood which highlighted the importance of sensitive noise design. - Tighes Hill Substation Construction and operational noise impact assessment and Construction Noise and Vibration Management Plan for the site. - Rookwood Substation Project Manager responsible for constructional and operational noise assessment for proposed new substation near Potts Hill, NSW. - Sydney North Substation SoundPLAN modelling of existing substation layout and mitigation recommendations for planned expansion. - Orange Substation Sound intensity measurements, SoundPLAN modelling and subsequent acoustic assessment for existing substation. - Sydney West Substation Operational noise impact assessment and mitigation advice for existing and proposed future layouts. Included assessment of static var compensator compound. - New Lambton Substation Construction and operational noise impact assessment for a zone substation refurbishment. Included sound intensity measurements of existing plant. - Lane Cove Market Square DA acoustic assessment, design development and construction stage liaison for new market square development in Lane Cove, Sydney. - Emanuel Synagogue DA acoustic assessment for proposed redevelopment of Emanuel Synagogue in Woollahra, Sydney. - Newcastle Courthouse (ongoing) Acoustic consultancy services from briefing through construction stages for the new Newcastle Courthouse development. 29-Jul-2012 c:\users\hornp\appdata\local\microsoft\windows\temporary internet files\content.outlook\s1a4b6x0\peter sanderson - auditing (3).doc

59 Résumé Dr Geoff Lucas Senior Vibration/Acoustic Engineer Qualifications BE Mechanical (Hons) University of New South Wales, Australia PhD (Mech) University of New South Wales, Australia Affiliations Member of the Australian Acoustical Society Member of the Institute of Engineers Australia Publications and Technical Papers - Lucas G., Kessissoglou N., Statistical Measures to Describe the Vibrational Characteristics of Structures with Uncertainty, Acoustics Australia, 36, 41-49, Kessissoglou N., Lucas G., Gaussian orthogonal ensemble spacing statistics and the statistical overlap factor applied to dynamic systems, Journal of Sound and Vibration, 324, 3-5, , July Lucas G., Kessissoglou N., The Vibro-acoustic Response of Structures with Uncertainties, ISMA 2006, September 2006, Leuven, Belgium. - Lucas G., Kessissoglou N., Mid-Frequency Modelling of the Vibroacoustic Responses of Structures with Uncertainties, Acoustics 2006, November 2006, Christchurch, New Zealand. - Lucas G., Kessissoglou N., Natural Frequency Statistics of Plates with Bounded Uncertain Properties Using Interval Analysis, ICSV 14, 9-12 July 2007, Cairns, Australia, Career History Geoff is a senior acoustic and vibration engineer who joined AECOM in February He graduated from the University of New South Wales in 2004 receiving a Bachelor degree in Mechanical Engineering, with honours. Geoff obtained his PhD in 2008 in Mechanical Engineering, specialising in Vibrations and Acoustics. Geoff s experience in noise and vibration assessments includes determination of appropriate criteria, completion of noise and vibration measurements and the recommendation of suitable and practical noise and vibration control measures. He also has experience in the prediction of vibration levels induced by blasting. Geoff has been consulting for more than five years and maintains excellent working relationships with a range of clients (including Government and Building Contractors) built on understanding client needs and delivering high quality and timely advice. In his consulting career Geoff has worked on rail and road infrastructure projects and residential and commercial developments. - Duschlbauer D., Pettersson M., Lucas G., Nelson J.: Experimental and numerical analyses of a floating slab track, AAS 2008, Australian Acoustics Society National Conference, Geelong, Australia, Jan-2013

60 AECOM Résumé Dr Geoff Lucas Senior Vibration/Acoustic Engineer 2 Detailed Experience - Ballina Bypass Alliance Operational noise and vibration assessment in accordance with the requirements detailed in the Minister s Conditions of Approval for the proposed Pacific Highway Upgrade Ballina Bypass. Included blast overpressure and vibration predictions due to blasting. - Dubbo Sewage Treatment Plant Construction and operational noise assessment for the proposed upgrade of the Dubbo Sewage Treatment Plant was undertaken. Included blast overpressure and vibration predictions due to blasting. vibration levels using Finitel Element Analysis and provided recommendations to mitigate footfall indiced vibraiton. - Central Corridor Light Rail Transit Project (Cedar Street) Assessment of rail vibration mitigation options and design of a floating slab track. - Chatswood Transport Interchange Multi- Channel impact and train pass-by vibration measurements on a floating slab track to verify its performance characteristics. - The W Hotel Pudong in Shanghai Rail noise and vibration assessment. Prediction of regenerated noise levels within the hotel complex O Riordan St, Green Square Rail noise and vibration assessment. Prediction of regenerated noise levels and vibration levels within the proposed commercial development. - 8 Australia Avenue, Sydney Olympic Park Rail noise and vibration assessment. Prediction of regenerated noise levels and vibration levels within the proposed commercial development - Southern Freight Link Project Construction noise and vibration impact assessments for works involved with this project. SoundPlan and ArcView software has been utilised for this project to assess the acoustic impact of construction activities. - Kingsgrove to Revesby Quadruplication Project Construction noise and vibration impact statements for works involved with this project. SoundPlan software has been utilised for this project to assess the acoustic impact of construction activities. - Richmond Line Duplication Project Construction noise and vibration impact statements for works involved with this project. SoundPlan software has been utilised for this project to assess the acoustic impact of construction activities - Royal Hobart Hospital Redevelopment Identification of noise and vibration likely to impact the development which will include surgical and critical care facilities. Footfall vibrations were the most significant source of structure-borne vibration. Geoff predicted structure-borne 01-Jan-2013

61 Résumé 1 Dee Murdoch Associate Director Qualifications AQF IV Chemical Risk Management Tocal 2009 Graduate Diploma of Land Rehabilitation, Ballarat University, 1995 Certificate of Horticulture, Charlestown TAFE, 1990 Bachelor of Science, University of Newcastle, 1982 Affiliations International Society for Ecological Restoration Ecological Society of Australia Member, Environment Institute of Australia and New Zealand Australian Network for Plant Conservation NSW Weeds Association STIPA Native Grasses Association Career History Dee is a land management specialist. Her areas of core expertise are the establishment and rehabilitation of ecologically sustainable native plant communities, mine site revegetation, assessment of stocking rates / carrying capacity and pasture productivity, seed collection, habitat reconstruction and enhancement, weed and vertebrate pest animal management and control. Dee has been working at the cutting edge of the management and rehabilitation of native plant communities for the past 25 years.. Her work has focused on the formulation of sustainable solutions for the rehabilitation of grossly disturbed ecosystems that have resulted from mining for coal and mineral sands, land development and military activities with the solutions incorporating key issues as raised by all stakeholders. During this time Dee has been involved in a range of stakeholder and community liaison projects ranging from access agreements through to final land use and landscape assessment. She has developed, project managed, supervised and implemented, innovative cost effective and ecologically sustainable solutions for many projects, with many of these concepts having become industry standards and lead practice benchmarks. Dee also has extensive experience in all facets of adult learning having worked on national industry panels for the development and delivery of qualifications, competency standards and training modules under the National Qualification Framework. These knowledge and skills have been recently utilised by the clients of AECOM with Dee s direct involvement in the development of Rehabilitation and Environmental Management Plans (REMP) and Mining Operation Plans (MOP s) for a range of coal and metalliferous mines across NSW. Dee s expertise also extends to the development and implementation of monitoring programs for mine site rehabilitation using the CSIRO developed Landscape Function Analysis. Her knowledge and skills have also been combined in the development and implementation of monitoring programs designed to assess pasture productivity, carrying capacity and stocking rates for areas of post mining landuse returning to agriculture and the development and implementation of monitoring and management programs for the control of macropods and wild horses on the Commonwealth lands of the Defence estate. 17-Jan-2012

62 AECOM Résumé Dee Murdoch Associate Director 2 Detailed Experience Management and Monitoring of Sustainable Landscapes To have a true understanding of a landscape the data collection, collation and interpretation techniques that are associated with monitoring programs need to be relevant to the client s ongoing land management commitments. Over the past 25 years Dee s work has included the use of the data derived from seed, pasture and habitat surveys, to underpin the range of restoration ecology techniques that she has developed, many of which have subsequently become accepted as industry lead practice. These techniques range from the innovative use of large woody debris in mineral sands mining projects on the Tomago Sandbeds (NSW) to habitat reconstruction for woodland birds on coal mining sites across the Hunter Valley of NSW. Recent projects Dee has authored, technically peer reviewed, managed, supervised and/or implemented include: - Centennial Coal Lamberts Gully, Ivanhoe North, Ivanhoe No. 1, Blue Mountains Colliery Annual Monitoring using Ecosystem Functional Analysis , Bengalla Mine - Annual Monitoring using Ecosystem Functional Analysis Ravensworth Operations - Annual Monitoring using Ecosystem Functional Analysis, Pasture Assessment and Carrying Capacity , 2010, Hunter Valley Operations - Habitat Augmentation Survey Nesting boxes, Timber Debris and Rock Stockpiles Mangoola Coal Seed Strategy Mine Planning and Closure An integral of any mining operation is that as relates to mine planning and closure. Dee has developed a range of management plans for AECOM clients being based on the regulatory guidelines that relate to either REMP s or MOP s. The strength of these documents lies in the strategic development of completion criteria, performance measures and indicators using domains to define the landscape. - Mount Pleasant Mine Biodiversity and Rehabilitation Management Plan Dec Mt Arthur Coal - Rehabilitation Strategy - Oct 2011, Biodiversity and Rehabilitation Management Plan Dec CSA Mine Cobar - Rehabilitation and Environment Management Plan Dec Mount Thorley Operations Abbey Green - Rehabilitation and Land Management Plan May Hunter Valley Operation South Coal Project Rehabilitation and Land Management Plan March Ravensworth Complex Rehabilitation, Biodiversity and Land Management System Weed Management and Control Dee has undertaken a diverse range of projects relating to strategic weed management and control projects for Weeds of National Significance (WONS), noxious species as listed under the Noxious Weeds Act 1999 and environmental species that have a proven impact on the biodiversity of a site. The projects have incorporated innovative ideas that have been aligned to industry best practice guidelines, OHS and site capability requirements (as required under the Pesticide Act 1999), ecologically sustainable goals and legislative requirements related to the development of weed management plans and strategies. Dee has extensive experience in the supervision and implementation of on-ground weed control operations via the utilisation of chemical, manual, mechanical and biological control techniques that have incorporated work crews of up to 35 people on ecologically sensitive plant communities relevant to weeds. Projects include: - National Guidelines for the Management of Ferals, Weeds and Overabundant Species, Department of Defence, Weed Management and Control RAAF Base Richmond, RAAF Base Glenbrook and Defence Establishment Orchard Hills DMM Pty Ltd on behalf of the Department of Defence 2008 June Weed Management and Control Operations Hunter Valley Operations Mine, Singleton, NSW, 2003 Dec Weed Management and Control Operations Mt Thorley Warkworth Mine, Singleton, NSW, 2003 Dec Weed Management and Control Ravensworth Narama and East Mines, Ravensworth Operations Pty Limited, Singleton, Weed Management Plan and On-ground Weed Control Operations Eraring Power Station, Eraring Energy, Eraring, 2003 current. 17-Jan-2012

63 AECOM Résumé Dee Murdoch Associate Director 3 Overabundant Native Fauna During her time with AECOM Dee has undertaken/been closely involved in the development of industry leading practice relating to the management and control of overabundant native fauna, with a particular focus on macropod species. These projects have resulted in the development of the National Guidelines for the Management of Feral, Weeds and Overabundant Native Species for the Department of Defence, together with management plans for areas of the Defence estate including the Eastern Grey Kangaroo Management Plan for Singleton Military Area and the Macropod Management Plan for RAAF Base Williamtown. Further to this Dee has taken the role of Project Manager of works relating to macropod management for RAAF Base Williamtown. Vertebrate Pest Animal Management and Control Dee has undertaken many strategic vertebrate pest animal management and control projects. These projects have incorporated industry best practice guidelines, OHS and site capability requirements, environmental conservation goals and legislative requirements related to the development of vertebrate pest animal management plans and strategies, and the supervision and implementation of on-ground vertebrate pest animal control operations. Projects have incorporated industry best practice methods related to the management of impacts to nontarget species and the implementation and/or supervision of control techniques including trapping, baiting, fumigation and shooting of pigs, rabbits, hares, dogs, foxes, horses, introduced bird species and cats. Dee assesses the project goals and objectives and management and control methods available to evaluate their use or impracticalities for each site before determining a control program. Monitoring programs are designed to collect sufficient and relevant data that can be integrated with GIS methodologies to assess the effectiveness of the onground pest animal control operations program and the impacts the target animals are having at each specific site. Depending on the reasons for control of pest species, monitoring usually involves whether the control action actually reduced the abundance of pest species and the response of native species and ecological communities to the control action. An example of project experience is Dee s role as author of the Management Strategy for the Removal of Feral Horses from the Singleton Training Area. This report was used as the framework against which Defence could mitigate the risks that feral horses pose to the safety of range users and to the military and environmental values of the site. The Strategy provided an analysis of a wide range of horse removal options and recommended those that are the most prudent and feasible methods relative to the constraints of the Singleton Training Area. Conferences International Society of Restoration Ecology NSW Minerals Council Conference Professional History Present AECOM Australia Pty Ltd Associate Director AECOM Australia Pty Ltd Manager Singleton Office HLA- Envirosciences Pty Ltd Manager Singleton Office HLA- Envirosciences Pty Ltd Land Rehabilitation Scientist NSW Department of Land and Water Conservation Crown Reserves Management Officer - Hunter RZM Pty Ltd Rehabilitation Specialist Retail and wholesale nursery industry TAFE NSW Teacher, Syllabus technical writer 17-Jan-2012

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65 Résumé 1 Sharmin Lubonski Associate Director Qualifications Bachelor of Science (Hons) (Environmental) Master of Science (Environmental Technology) Doctor of Philosophy (Environmental Economics and Corporate Social Responsibility) Affiliations DCCEE Registered NGERs Auditor GHG Management Institute, GHG Verification and Advanced Accounting IRCA Sustainability Assurance Professional RABQSA Environmental Managements Systems Auditor IEMA Environmental Auditor Institute of Engineers (Hong Kong) Institute of Environmental Economics (Australia) Awards University of Hong Kong RGC Award for Outstanding International Workshop/Conference (2004) Paper award for World Student Business Congress, Cologne, Germany (2003) ICAC Award for Outstanding Research Project in Corporate Governance, Hong Kong (2001) Publications and Technical Papers Smith G and Lubonski S (2012) Greenhouse Gas in Brownfield versus Greenfield Sites EcoForum Lubonski S (contributing author) (2011) Understanding the business case for sustainability Respect Europe Publications Salahuddin, S. (2005) Drivers and Barriers for Extended Producer Responsibility in Asia PhD Thesis, University of Hong Kong Salahuddin, S. (2005) Extended Producer Responsibility in Asia Pacific: Implementation challenges for Economic, Regulatory and Voluntary Instruments Industrial Ecology Conference Salahuddin, S. (2004) Environmental Industry in Hong Kong: A Company Case Study of Jets Technics Ltd., Greening of Industry Network Conference Salahuddin, S. and Tsoi, J. (2003) Ethical Practices and Codes of Conduct amongst Retailers in Hong Kong University of Hong Kong Publications Salahuddin, S. Tsoi, C.S.J, Lam, J.C.K. (2003) "Corporate Social Responsibility as a Competitive Advantage: a Hong Kong Perspective Greening of Industry Network Conference Career History Sharmin has over 13 years of environmental and sustainability experience, including over 10 years in auditing and product stewardship. This has included projects for Xstrata Coal, Anglo American Coal, and Downer EDI Mining. Recent audit experience includes as peer review auditor for Wilpinjong Coal Mine and the Mt Owen Complex and as Lead Auditor for Port Kembla Coal Terminal and Dartbrook Mine. In 2005 Sharmin also completed a PhD on Product Stewardship and Extended Producer Responsibility. The focus of this work was on understanding how major organisations can track the impacts and risks associated with their products and services through the life cycle, especially beyond the traditional definition of responsibility. This included issues beyond direct control such as recycling and disposal. Sharmin also spent a number of years working on product stewardship projects, including with Downer EDI mining and the Office of Environment and Heritage in NSW. Sharmin is also a RABQSA and IEMA Environmental Auditor (Lead Auditor) with experience in leading audit teams for compliance, internal, second party and third party audits for environmental, quality and social aspects. In addition Sharmin holds specialist qualifications and experience as a Registered Greenhouse and Energy Auditor (NGER audits) and Sustainability Assurance Professional (GRI and AA1000 audits). Key project experience: - Wilpinjong Coal Mine, Independent Environmental Audit - Xstrata Coal, Mt Owen Complex Independent Environmental Audit - Port Kembla Coal Terminal Lead Auditor, Independent Environmental Audit - Anglo American Coal, GHG Audit and Abatement Option Analysis for Dartbrook Mine - Xstrata Coal, confidential mine project sustainability and climate change assessment - Easter Star Gas, Greenhouse gas assessment for Narrabri coal seam gas fields - Centennial Coal, Carbon Price advisory paper - Downer EDI Mining, Integrated management systems development and implementation - Office of Environment and Heritage, regulatory and economic analysis for proposed product stewardship schemes and regulations (NSW) - China Light and Power, Compliance Audit (Energy, AS3598), Kowloon Cable and Substations - DCCEE, Chief Company Auditor, Green Loans Audit Program 15-Feb-2010 c:\users\hornp\desktop\xcn response\sharmin lubonski_aecom_ doc

66 AECOM Résumé Sharmin Lubonski Associate Director 2 Detailed Experience A cross-section of relevant projects are detailed below: Product Stewardship Sharmin has worked on a number of product stewardship related projects, including: - Product stewardship and extended producer responsibility initiatives and policies (standard household batteries, mobile phones, consumer electronic products, toner and ink cartridges, plastic bags, PET bottles, packaging) - Take-back systems for recycling and reuse of products and materials (toner and ink cartridges and mobile phones) including as industry participant for Vodafone Australia on the Mobile Muster program - Supply chain management and sustainable procurement, particularly in areas such as procurement and sourcing strategies related to packaging and material selection for batteries and mobile phones - Life cycle analysis for food product packaging, washing powder (Proctor & Gamble), aluminium beverage containers (Coca Cola) and lithium batteries (Jet Technics) - Regulatory and economic analysis, including cost benefit analysis and regulatory impact statements such as on the National Packaging Covenant, landfill levy (NSW), proposed product stewardship schemes and regulations (NSW), hazardous waste regulations amendments, traffic noise pollution regulation and bio-banking scheme - International and national waste legislation compliance including National Packaging Covenant (for Vodafone) and Waste Electrical and Electronic Equipment (WEEE) Directive (for Hewlett Packard) Development of product stewardship initiatives for printers, toners and ink cartridges, Hewlett Packard (South East Asia) - Sharmin led the review and implementation of product stewardship initiatives in three product categories: small to medium printers, toner cartridges and ink cartridges. This included an analysis of materials procured for production (including packaging) and the distribution and sales patterns for these products in order to develop a viable take-back system in the South East Asia region (Hong Kong, Macau and South China). Extensive stakeholder engagement both internally and externally was required including a 3 month test phase in selected areas of Hong Kong. Mobile Muster telecommunications industry product stewardship program, Vodafone Australia - Sharmin worked as port of a intra-industry working group on the implementation of the telecommunication industry voluntary take-back program, representing Vodafone Australia. This included development of collection systems (in stores, mail backs et), communications program, recycling facilities and incentives for consumers (e.g. tree planting). Auditing and EMS Shoalhaven Defence Regional EMS Review, Brookfield Multiplex and Department of Defence Sharmin project managed the recent EMS Review for Department of Defence s Shoalhaven Region (HMAS Albatross, HMAS Creswell, Beecroft Range and Jervis Bay). This included the review and re-development of the EMS risk register and the legal and other obligations register such as Commonwealth, State and Defence Policies that the region must adhere to. Integrated management systems development and implementation Downer EDI (ANZ) Sharmin was responsible for the environmental component of Downer EDI s integrated management system (IMS) in accordance with ISO Her role included ensuring maintenance of the system for ISO certification, such as updates to the risk register, legal registers, conducting internal audits and liaising with the quality and OHS technical leads for the IMS to ensure Downer EDI s overall compliance. EMS review and audits, Vodafone (Australia) Sharmin led all of Vodafone Australia s internal and contractor EMS reviews and audits during her time as Corporate Responsibility Advisor. This involved working closely with a number of Joint Venture partner, contractors and sub-contractors, such as Kordia, Ericsson, Telstra and Optus. In addition she was responsible for working with the legal team to address compliance to any new and emerging legislation, which at the time was especially significant given the introduction of the National Greenhouse and Energy Reporting Act. EMS implementation (ISO 14001), Hewlett Packard (SE Asia) Sharmin project managed the development and implementation of Hewlett Packard s EMS in the South East Asia region over a three year This included international, national and local government compliance, in particular around waste legislation requirements in Europe such as WEEE. Sharmin was also responsible for liaising with Hewlett Packard s partners, contractors and sub-contractors to ensure compliance in instances where the company did not have direct control of the risk. Greenhouse Gas Management Plan for NGERS compliance, Endeavour Energy Sharmin was the lead auditor to ensure Endeavour Energy s EMS and related procedures where in compliance with NGERS. 15-Feb-2010 c:\users\hornp\desktop\xcn response\sharmin lubonski_aecom_ doc

67 AECOM Résumé Sharmin Lubonski Associate Director 3 This was particularly aimed at contractor s who are responsible for a significant amount of the company s NGER reporting data. GHG Audit and Abatement Option Analysis for Dartbrook Mine, Anglo American Coal. Sharmin was the lead auditor for GHG in relation to NGERS compliance. Eastern Star Gas Liquefied Natural Gas (LNG) export facility, ESD assessment. Sharmin led the assessment and identification of relevant project Ecologically Sustainable Development (ESD) initiatives as part of the Environment Impact Assessment process. Easter Star Gas Narrabri Coal Seam Gas Environmental Assessment, Greenhouse Gas Assessment.Sharmin was the greenhouse gas assessment lead for the Narrabri Coal Seam Gas Project. Global Reporting Initiative Sharmin is currently working in a number of reference groups for the development of GRI G4 and also worked with the United Nations representatives in South East Asia during the original GRI guidelines development. In addition Sharmin is a Sustainability Assurance Professional, registered and accredited to verify and assure GRI reports. Recent Global Reporting Initiative related projects that Sharmin has completed are listed below: - Greenstreets, GRI training course: Non-financial accounting for accountants (GRI and Integrated Reporting) Power Assets, Sustainability Report GRI Verification, AECOM, Global Sustainability Report, AECOM, Australia Sustainability Report, GRI Verification 2010 and Eraring Energy, Sustainability Report 2010 and Police Department, Sweden. Verification of GRI report Rica Bank, Sustainability Report Verification IF Nordic and Balticum, GRI reporting and verification 2008 and Visit Sweden, Sustainability Report Verification Dramaten, Sustainability Report Verification Spendrups, Sustainability Report Verification Swedish Post Office, Sustainability Report GRI Verification Downer EDI, Sustainability Report and GRI Verification Vodafone, Sustainability Report and GRI verification 2007 and 2008 Training ISO 14000, 8000 ISO SA 8000 AA1000AS/GRI Greenhouse gas protocol reporting and verification NGERS reporting Six Sigma Languages Fluent in Swedish, English, and Hindi/Urdu Working knowledge of German and French Basic knowledge of Chinese (Cantonese and Mandarin) and Polish Professional History Present AECOM, Australia Team Leader NSW and Associate Director, Sustainability and Climate Change Respect Europe, Sweden Manager, Sustainability and CSR 2008 Downer EDI, Australia Manager, Sustainability Reporting Vodafone Australia Corporate Responsibility Advisor Department of Environment and Climate Change NSW Economist Corporate Environmental Governance, Hong Kong Consultant Freshfields Bruckhaus Deringer, United Kingdom Environmental and Planning Consultant 2000 Department of Environment, Transport and the Regions, United Kingdom Executive Officer 15-Feb-2010 c:\users\hornp\desktop\xcn response\sharmin lubonski_aecom_ doc

68 AECOM Résumé Peter Sanderson Principal Acoustic Engineer - Acoustics Manager Hunter Region 3 - Greater Building Society HQ (ongoing) Acoustic assessment for EIS submitted for proposed GBS HQ at Honeysuckle, Newcastle. - Armidale Landfill Site (NSW) Provided the acoustic assessment as part of the EA for the landfill site. - Elizabeth Drive Landfill Site (NSW) Site inspections during construction phase of new cell and review of CQA and MQA documentation. 29-Jul-2012 c:\users\hornp\appdata\local\microsoft\windows\temporary internet files\content.outlook\s1a4b6x0\peter sanderson - auditing (3).doc

69 AECOM Independent Environmental Audit Appendix B Consultation Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

70 AECOM Independent Environmental Audit b-1 Appendix B Consultation Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

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73 AECOM Independent Environmental Audit Appendix C Audit Meeting Agenda Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

74 AECOM Independent Environmental Audit c-1 Appendix C Audit Meeting Agenda Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

75 Meeting Agenda AECOM Australia Pty Ltd 17 Warabrook Boulevard Warabrook NSW 2304 PO Box 73 Hunter Region MC NSW 2310 Australia tel fax ABN Pages 2 Subject Venue Participants Bengalla Mine Independent Environmental Audit Bengalla staff offices Peter Horn, Jessica Miller, Dee Murdoch, Amy Harburg, Calvin Leech and Nathan Smith File/Ref No Date 26 to 28 August 2013 Distribution As above Time 8:30 am 4:00 pm Day 1 Monday 26 August 2013 No Content Time Location 1 Opening Meeting Introductions & Audit Purpose Confirmation of Meetings and Process Overview of Bengalla Review of Development Consent, Environmental Protection Licences and Mining Leases 9:00 Staff Office Lunch 12:30 2 General environmental site inspection 13:00 In-field 3 Review of Bengalla management plans 14:00 Staff Office Day End 16:00 Day 2 Tuesday 27 August 2013 No Content Time Location 1 Review of Bengalla management plans 9:00 Staff Office Lunch 12:30 2 Review of Bengalla management plans 13:00 Staff Office 3 Review of Bengalla environmental assessments 14:00 Staff Office Day End 16:00 Day 3 Wednesday 28 August 2013 No Content Time Location 1 Review of Bengalla environmental assessments Site visit by Dee Murdoch (rehabilitation specialist) 8:00 Staff Office audit report/appendix c/audit agenda.docx

76 Lunch 12:30 2 General environmental site inspection Rehabilitation site inspection 13:00 In-field 3 Review of Bengalla management plans 14:00 Staff Office 4 Auditor Review 15:00 Staff Office 5 Closeout meeting 15:15 Staff Office Day End 15:30 Staff Office audit report/appendix c/audit agenda.docx 2 of 2

77 AECOM Independent Environmental Audit Appendix D Audit Protocol: Development Approval 211/93 (as modified) Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

78 AECOM Independent Environmental Audit d-1 Appendix D Audit Protocol: Development Approval 211/93 (as modified) Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

79 Audit Protocol: DA 211/93 (as modified) Clause Requirement Evidence Audit Finding Project Approval 211/93 SCHEDULE 2 - ADMINISTRATIVE CONDITIONS OBLIGATION TO MINIMISE HARM TO THE ENVIRONMENT 1 The Applicant shall implement all reasonable and feasible measures to prevent and/or minimise any material harm to the environment that may result from the construction, operation, or rehabilitation of the development. During the site visit the auditors noted that the Bengalla site was generally kept in a tidy and orderly condition. While a small number of isolated environmental incidents have occurred during the audit period, no actual environmental harm incidents have taken place during the audit TERMS OF CONSENT 2 The Applicant shall carry out the development in accordance with the: 2(a) EIS Apart from a few discrete non-compliances, Bengalla has been operated largely in accordance with the EIS during the audit 2(b) EA Apart from a few discrete non-compliances, Bengalla has been operated largely in accordance with the EA during the audit 2(c) Statement of commitments; and Apart from a few discrete non-compliances, Bengalla has been operated largely in accordance with the Statement of Commitments during the audit 2(d) Conditions of this consent Notes: - The general layout of the development is shown in Appendix 2. - The statement of commitments is reproduced in Appendix 6. Apart from a few discrete non-compliances, Bengalla has been operated largely in accordance with the conditions of this consent during the audit 3 If there is any inconsistency between the above documents, the most recent document shall prevail to the extent of the inconsistency. However, the conditions of this consent shall prevail to the extent of any inconsistency. 4 The Applicant shall comply with any reasonable requirement/s of the Director- General arising from the Department s assessment of: (a) any reports, strategies, plans, programs, reviews, audits or correspondence that are submitted by the Applicant in accordance with this consent; and (b) the implementation of any actions or measures contained in these documents. The auditors viewed evidence of management plans having been updated during the audit period to take into account comments made by regulators, including DP&I. LIMITS ON CONSENT Mining Operations 5 The Applicant may carry out mining operations on the site until 27 June 2017 Note: Under this consent, the Applicant is required to rehabilitate the site and carry out additional undertakings to the satisfaction of both the Director-General and the Executive-Director, Mineral Resources in DRE. Consequently this consent will continue to apply in all other respects - other than the right to conduct mining operations - until the rehabilitation of the site and these additional undertakings have been carried out satisfactorily. DA (as modified) Page 1

80 Audit Protocol: DA 211/93 (as modified) Coal Extraction 6 The Applicant shall not extract more than 10.7 million tonnes of ROM coal from the site in a calendar year. This is reported in the AEMRs as being 6.7 Mt in 2010, 7 Mt in 2011 and 8.4 in Coal Transport 7 The Applicant shall: (a) transport all coal from the site by rail; and (b) restrict train movements from the Bengalla load point to a maximum of 16 laden trains a day, unless otherwise approved by the Director-General. Note: Laden trains may contain coal from either the development or the adjoining Mt Pleasant Coal Mine. All coal leaves site via the rail loop. During the site visit, auditors viewed copies of train movement records indicating that this is the case. STRUCTURAL ADEQUACY The Applicant shall ensure that all new buildings and structures, and any alterations or additions to the existing buildings and structures, are constructed in accordance with the relevant requirements of the BCA and MSB. 8 Notes: - Under Part 4A of the EP&A Act, the Applicant is required to obtain construction and occupation certificates for the proposed building works. - Part 8 of the EP&A Regulation sets out the requirements for the certification of the development. - The development is located in the Muswellbrook Mine Subsidence District. Under Section 15 of the Mine Subsidence Compensation Act 1961, the Applicant is required to obtain the MSB s approval before conducting any improvements on site. Expansion undertaken with new facilities at CHPP and workshops. Auditors viewed construction certificates of new infrastructure during the site visit and approvals from MSB. DEMOLITION 9 The Applicant shall ensure that all demolition work on site is carried out in accordance with AS : The Demolition of Structures, or its latest version. PROTECTION OF PUBLIC INFRASTRUCTURE 10 Unless the Applicant and the applicable authority agree otherwise, the Applicant shall: (a) repair, or pay the full costs associated with repairing, any public infrastructure that is damaged by the development; and (b) relocate, or pay the full costs associated with relocating, any public infrastructure that needs to be relocated as a result of the development. Note: This condition does not include matters that are expressly provided for in the conditions of this consent, such as the maintenance of public roads. DA (as modified) Page 2

81 Audit Protocol: DA 211/93 (as modified) OPERATION OF PLANT AND EQUIPMENT 11 The Applicant shall ensure that all plant and equipment used on site, or to transport coal from site, is: (a) maintained in a proper and efficient condition; and (b) operated in a proper and efficient manner. During the site visit the auditors viewed the maintenance planning system which Bengalla has in place to ensure that its plant and equipment undergo preventative maintenance, as well as maintenance when repairs are required. The auditors also viewed plant being repaired in the workshop as required. STAGED SUBMISSION OF STRATEGIES, PLANS AND PROGRAMS 12 With the approval of the Director-General, the Applicant may submit any strategy, plan or program required by this consent on a progressive basis. Note: While any strategy, plan or program may be submitted on a progressive basis, the Applicant will need to ensure that the operations on site are covered by suitable strategies, plans or programs at all times. 13 The Applicant shall continue to implement the existing strategies, plans or programs that apply to the development on site until they are replaced by an equivalent strategy, plan or program approved under this consent. There has always been a certified Environmental Management System at Bengalla. Therefore, the site was always managed appropriately regardless of the status of management plans. For instance, the site did not have an approved Noise Management Plan until recently. However, the requirements to monitor noise were previously dealt with under the Environmental Management System. PLANNING AGREEMENT 14 By the end of March 2012, unless otherwise agreed by the Director-General, the Applicant shall enter into a planning agreement with Council in accordance with: (a) Division 6 of Part 4 of the EP&A Act; and (b) the terms of the Applicant s offer dated 6 July 2011 which is summarised in Appendix 4. This agreement must provide for annual payments (in advance) to be made to Council, with the first period for payment to be backdated to commence on 1 October During the site visit the auditors viewed a copy of this Voluntary Planning Agreement between Bengalla and Muswellbrook Shire Council. The auditors also viewed correspondence confirming the date of this agreement to be 12 March DA (as modified) Page 3

82 Audit Protocol: DA 211/93 (as modified) SCHEDULE 3 - ENVIRONMENTAL PERFORMANCE CONDITIONS NOISE Noise Criteria The Applicant shall ensure that the noise generated by the development does not exceed the criteria in Table 1 at any residence on privately-owned land or on more than 25% of any privately-owned land. Notes: - To identify the locations referred to in Table 1, refer to Figure 1 in Appendix 3; and - Noise generated by the development is to be measured in accordance with the relevant procedures and exemptions (including certain meteorological conditions) of the NSW Industrial Noise Policy. However, these criteria do not apply if the Applicant has a written agreement with the relevant landowner to exceed the criteria, and the Applicant has advised the Department in writing of the terms of this agreement. There has been an exceedance of these criteria. Monitoring results taken during the day of 20 June 2012 recorded a noise level of 41 dba. Monitoring was being undertaken at Racecourse Road (i.e. the Farrell residence). An incident report was prepared, and provided to DP&I. Following the incident, Bengalla implemented several operational restrictions and containment measures to ensure ongoing compliance with noise criteria. 1 Not Compliant DA (as modified) Page 4

83 Audit Protocol: DA 211/93 (as modified) Noise Acquisition Criteria If the noise generated by the development exceeds the criteria in Table 2 at any residence on privately owned land or on more than 25 percent of any privatelyowned land, then upon receiving a written request for acquisition from the landowner, the Applicant shall acquire the land in accordance with the procedures in conditions 6-7 of schedule 4. 2 Notes: - To identify the locations referred to in Table 2, refer to Figure 1 in Appendix 3; - Noise generated by the development is to be measured in accordance with the relevant procedures and exemptions (including certain meteorological conditions) of the NSW Industrial Noise Policy; and - For this condition to apply, the exceedences of the criteria must be systematic. These criteria have not been exceeded during the audit Cumulative Noise Criteria The Applicant shall implement all reasonable and feasible measures to ensure that the noise generated by the development combined with the noise generated by other mines in the area does not exceed the criteria in Table 3 at any residence on privately owned land or on more than 25% of any privately-owned land: 3 These criteria have not been exceeded during Notes: the audit - To identify the locations referred to in Table 3, refer to Figure 1 in Appendix 3; and - Cumulative noise is to be measured in accordance with the relevant requirements and exceptions (including certain meteorological conditions) of the NSW Industrial Noise Policy. Cumulative Noise Acquisition Criteria If the noise generated by the development combined with the noise generated by other mines in the area exceeds the criteria in Table 4 at any residence on privatelyowned land or on more than 25 percent of any privately-owned land, then upon receiving a written request from the landowner, the Applicant shall acquire the land on as equitable basis as possible with the relevant mines, in accordance with the procedures in conditions 6-7 of schedule 4. 4 This has not occurred during the audit Notes: - To identify the locations referred to in Table 4, refer to Figure 1 in Appendix 3; - Cumulative noise is to be measured in accordance with the relevant requirements and exceptions (including certain meteorological conditions) of the NSW Industrial Noise Policy; and - For this condition to apply, the exceedence of the criteria must be systematic. DA (as modified) Page 5

84 Audit Protocol: DA 211/93 (as modified) Additional Noise Mitigation Measures Upon receiving a written request from the owner of any residence on the land listed in Table 5, the Applicant shall implement additional noise mitigation measures (such as double glazing, insulation, and/or air conditioning) at the residence in consultation with the owner. These measures must be reasonable and feasible. If within 3 months of receiving this request from the owner, the Applicant and the owner cannot agree on the measures to be implemented, or there is a dispute about the implementation of these measures, then either party may refer the matter Interviews with Bengalla staff confirmed that to the Director-General for resolution. such a request was received during the audit 5 period, and subsequent consultation was undertaken with the affected stakeholder regarding mitigation measures. Rail Noise 6 The Applicant shall ensure that the rail spur is only accessed by locomotives that are approved to operate on the NSW rail network in accordance with noise limits L6.1 to 6.4 in Railcorp s EPL (No.12208) and ARTC s EPL (No.3142) or a Pollution Control Approval issued under the former Pollution Control Act Operating Conditions 7 The Applicant shall, to the satisfaction of the Director-General: During the site visit the auditors viewed correspondence with Pacific National dated 13 January Pacific National confirmed that before locomotives go on the track they are certified to a certain standard so that these criteria would be met. This is managed as per the Bengalla Mining Company Pty Limited Noise Management Plan (Bengalla, August 2013). DPI granted an extension for the submission of the NMP to the 31 January The Noise Management Plan Administrative Non has been reviewed by DoPI representative Compliance (291013) however has not been approved. Bengalla have made best efforts to obtain approval from DG. 7(a) Apart from an isolated instance of exceedance, which was investigated and followed up, the site has generally been managed in compliance with noise criteria. Have also been required to Implement best practice noise management, including all reasonable and feasible conduct the additional noise report as required noise mitigation measures to minimise the operational, low frequency and rail noise by EPL conditions. It appears from review that generated by the development; current best practice of noise management is being implemented on site. Various developments in online reporting are being used for community engagement purposes at industrial sites. 7(b) Minimise the noise impacts of the development during temperature inversions; Interviews with Bengalla staff and the operations observed by the auditors during the site visit confirmed that Bengalla continues to operate a real time environmental monitoring system which includes alarms and meteorological forecasting, linked to a weather station. Under certain weather conditions, almas will come up at dispatch so that operations can be modified for noise and dust. 7(c) Interviews with Bengalla staff confirmed that Regularly assess the real-time noise monitoring and meteorological forecasting site planning meetings are undertaken each data and relocate, modify, and/or stop operations on site to ensure compliance with Friday, where forward planning for operations is the relevant conditions of this consent, and discussed, including the influence of meteorological conditions. DA (as modified) Page 6

85 Audit Protocol: DA 211/93 (as modified) 7(d) The Bengalla Mining Company Pty Limited Noise Management Plan (Bengalla, August 2013) fulfils these requirements. The Noise Co-ordinate the noise management on site with the noise management at nearby Management Plan outlines how two live noise mines (including the Mt Pleasant mine) to minimise the cumulative noise impacts of monitors are onsite. One measures total noise the mines. whilst the other is direction. This allows for the differences in onsite noise and cumulative noise impacts to be monitored. Noise Management Plan 8 The Applicant shall prepare and implement a Noise Management Plan for the development to the satisfaction of the Director-General. This plan must: The Bengalla Mining Company Pty Limited Noise Management Plan (Bengalla, August 2013) fulfils these requirements. The Noise Management Plan has been reviewed by DoPI representative (291013) however has not been approved. Administrative Non Compliance 8(a) Be prepared in consultation with OEH, and submitted to the Director-General for approval by the end of December 2012; Section 1.4 of Appendix A of the Bengalla Mining Company Pty Limited Noise Management Plan (Bengalla, August 2013) fulfils these requirements. DP&I provided Bengalla with an extension of one month on this timeframe until 31 January 2013, on which date the Noise Management Plan was submitted. 8(b) Describe the noise mitigation measures that would be implemented to ensure compliance with the relevant conditions of this consent, including a real-time noise management system that employs both reactive and proactive mitigation measures; Section 4.0 of the Bengalla Mining Company Pty Limited Noise Management Plan (Bengalla, August 2013) fulfils these requirements. 8(c) Include a noise monitoring program that: - uses a combination of real-time and supplementary attended monitoring measures to evaluate the performance of the development; - includes a protocol for determining exceedances of the relevant conditions of this consent; and Section 4.0 of the Bengalla Mining Company Pty Limited Noise Management Plan (Bengalla, August 2013) fulfils these requirements. 8(d) Include a protocol that has been prepared in consultation with the owners of nearby Section 5.3 of the Bengalla Mining Company mines (including the Mt Pleasant mine) to minimise the cumulative noise impacts of Pty Limited Noise Management Plan (Bengalla, the mines. August 2013) fulfils these requirements. BLASTING Blasting Criteria The Applicant shall ensure that the blasting on the site does not cause exceedences of the criteria in Table 6. In 2010 there were five cases where the overpressure was recorded greater than 115dBL at privately owned residences as a result of a Bengalla blast. All five blasts were investigated and results show the exceedances 9 were the result of non-blast related events (high wind events). The number of investigations in 2010 was a significant decrease from the 14 in All exceedances were of overpressure, not vibration, and they did not go over the allowable percentage for any given year. DA (as modified) Page 7

86 Audit Protocol: DA 211/93 (as modified) Blasting Hours 10 The Applicant shall only carry out blasting on site between 7am and 5pm Monday to Saturday inclusive. No blasting is allowed on Sundays, public holidays, or at any other time without the written approval of the Director-General. During the site visit, auditors viewed blasting records showing that blasting was undertaken within these times during the audit Blasting Frequency Except in accordance with written approval by the Director-General, the Applicant may carry out a maximum of: (a) 2 blasts per day; and (b) 4 blasts a week averaged over any calendar year. 11 This condition does not apply to blasts that generate ground vibration of 0.5 mm/s or less at any residence on privately-owned land, or to blasts required to ensure the safety of the mine or its workers. During the site visit, auditors viewed blasting records showing that blasting was undertaken within these limits during the audit Note: For the purposes of this condition, a blast refers to a single blast event, which may involve a number of individual blasts fired in quick succession in a discrete area of the mine. Property Inspections 12 If the Applicant receives a written request from the owner of any privately-owned land within 2 kilometres of the approved open cut mining pit on site, for a property inspection to establish the baseline condition of any buildings and/or structures on his/her land, or to have a previous property inspection report updated, then within 2 months of receiving this request the Applicant shall: (a) commission a suitably qualified, experienced and independent person, whose appointment has been approved by the Director-General, to: - establish the baseline condition of the buildings and/or structures on the land, or update the previous property inspection report; and - identify any measures that should be implemented to minimise the potential blasting impacts of the development on these buildings and/or structures; and (b) give the landowner a copy of the new or updated property inspection report. Interviews with Bengalla staff confirmed that letters were sent to all residents within 2km of site as part of a recent approval. As a result several residences requested baseline inspections be carried out. These letters were sent in November 2011, and also contained information about Mine Dust and You factsheet. During the site visit the auditors also viewed a copy of a Parsons Brinckerhoff memorandum stating that independent property inspection had been carried out. A letter from DP&I dated 20 January 2012 was also viewed, approving the relevant person to undertake these property inspections. Property Investigations 13 If the landowner of any privately-owned land claims that the buildings and/or structures on his/her land have been damaged as a result of blasting on site, then within 2 months of receiving this claim the Applicant shall: (a) commission a suitably qualified, experienced and independent person, whose appointment has been approved by the Director-General, to investigate the claim; and (b) give the landowner a copy of the property investigation report. If this independent property investigation confirms the landowner s claim, and both parties agree with these findings, then the Applicant shall repair the damages to the satisfaction of the Director-General. This has not occurred during the audit If the Applicant or landowner disagrees with the findings of the independent property investigation, then either party may refer the matter to the Director- General for resolution. DA (as modified) Page 8

87 Audit Protocol: DA 211/93 (as modified) Operating Conditions 14 The Applicant shall, to the satisfaction of the Director-General: 14(a) Implement best blasting management practice on site to: - protect the safety of people and livestock in the surrounding area; - protect public or private infrastructure/property in the surrounding area; and - minimise the dust and fume emissions of the blasting on site; During the site visit the auditors viewed a copy of the Closure of Public Road for Blasting Pla n (Bengalla, 2011), which fulfils these requirements,. 14(b) Co-ordinate the blasting on site with the blasting at nearby mines (including the Mount Pleasant mine) to minimise the cumulative blasting impacts of the mines; and Interviews with Bengalla staff confirmed that each day, Bengalla receives and sends out blast notifications to surrounding mine. Operate a suitable system to enable the public to get up-to-date information on the proposed blasting schedule on site. 14(c) The Applicant shall not undertake blasting within 500 metres of: (a) a public road without the approval of Council; (b) the Ulan-Muswellbrook railway line without the approval of the ARTC; and (c) any land outside the site not owned by the Applicant, unless: - the Applicant has a written agreement with the relevant landowner to allow blasting to be carried out closer to the land, and the Applicant has advised the Department in writing of the terms of this agreement; or - the Applicant has: (i) demonstrated to the satisfaction of the Director-General that the blasting can be carried out without compromising the safety of the people or livestock on the land, or damaging the buildings and/or structures on the land; and (ii) updated the Blast Management Plan to include the specific measures that would be implemented while the blasting is being carried out within 500m of the land. During site visit, the auditors viewed a signposted schedule of upcoming blasts. Blast Management Plan 16 The Applicant shall prepare and implement a Blast Management Plan for the development to the satisfaction of the Director-General. This plan must: The Bengalla Mining Company Pty Limited Blast Management Plan (Bengalla, April 2013) fulfils these requirements. Approval from DG noted in letter (dated ). 16(a) be prepared in consultation with OEH, and submitted to the Director-General for approval by the end of December 2012; Section 1.5 of the Bengalla Mining Company Pty Limited Blast Management Plan (Bengalla, April 2013) fulfils these requirements. DP&I provided Bengalla with an extension of one month on this timeframe until 31 January 2013, on which date the Blast Management Plan was submitted. 16(b) describe the blast mitigation measures that would be implemented to ensure compliance with the relevant conditions of this consent; Section 2.0 of the Bengalla Mining Company Pty Limited Blast Management Plan (Bengalla, April 2013) fulfils these requirements. DA (as modified) Page 9

88 Audit Protocol: DA 211/93 (as modified) 16(c) Sections 2.2 and 2.3 of the Bengalla Mining describe the measures that would be implemented to ensure the public can get upto-date information on the proposed blasting schedule on site or any road closures; Company Pty Limited Blast Management Plan (Bengalla, April 2013) fulfil these requirements. 16(d) include a road closure management plan, prepared in consultation with Council and the RTA; Sections 1.5 and 2.3 of the Bengalla Mining Company Pty Limited Blast Management Plan (Bengalla, April 2013) fulfil these requirements. 16(e) include a blast monitoring program for evaluating compliance with the relevant conditions of approval; and Sections 3.0 and 4.0 of the Bengalla Mining Company Pty Limited Blast Management Plan (Bengalla, April 2013) fulfil these requirements. 16(f) include a protocol that has been prepared in consultation with the owners of nearby mines for minimising and managing the cumulative blasting impacts of the mines. Section 5.6 of the Bengalla Mining Company Pty Limited Blast Management Plan (Bengalla, April 2013) fulfils these requirements. AIR QUALITY & GREENHOUSE GAS Odour 17 The Applicant shall ensure that no offensive odours are emitted from the site, as defined under the POEO Act, unless otherwise authorised by an EPL. The EPA is currently investigation an allegation that Bengalla has caused offensive odour caused by the fume of one blast during the audit However, this allegation has not been made out. There is currently nothing else to suggest that Bengalla has caused any offensive odours during the audit Greenhouse Gas Emissions 18 The Applicant shall implement all reasonable and feasible measures to minimise the release of greenhouse gas emissions from the site to the satisfaction of the Director-General. The Bengalla Mining Company Pty Limited Air Quality and Greenhouse Gas Management Plan (Bengalla, November 2011) fulfils these requirements. DA (as modified) Page 10

89 Audit Protocol: DA 211/93 (as modified) Air Quality Criteria The Applicant shall ensure that all reasonable and feasible avoidance and mitigation measures are employed so that particulate matter emissions generated by the development do not exceed the criteria listed in Tables 7, 8 or 9 at any residence on privately-owned land or on more than 25 percent of any privatelyowned land. 19 During the audit period there were three exceedances of the 24 hour average criterion Not Compliant of PM 10 in In 2011 there were three exceedances, and in 2012 there was one exceedance. In each of these years, the annual PM 10 averaging criterion was not exceeded. Air Quality Acquisition Criteria If particulate matter emissions generated by the development exceed the criteria in Tables 10, 11 or 12 at any residence on privately-owned land or on more than 25 percent of any privately-owned land, then upon receiving a written request for acquisition from the landowner the Applicant shall acquire the land in accordance with the procedures in conditions 6-7 of schedule This has not occurred during the audit Operating Conditions 21 The Applicant shall, to the satisfaction of the Director-General: This is managed as per the Bengalla Mining Company Pty Limited Air Quality and Greenhouse Gas Management Plan (Bengalla, November 2011), which was approved by DP&I on 9 November DA (as modified) Page 11

90 Audit Protocol: DA 211/93 (as modified) 21(a) Implement best practice air quality management, including all reasonable and feasible measures to minimise off site odour, fume and dust emissions of the development; This is managed as per the Bengalla Mining Company Pty Limited Air Quality and Greenhouse Gas Management Plan (Bengalla, November 2011). 21(b) Minimise any visible off site air pollution; Small amounts of fugitive dust was observed during the audit site inspection, with elevated amounts of dust observed in the pit. Lead Auditor noticed, on a day other than the day of the audit site visit, large amounts of dust leaving site at BCM. It should be noted that conditions on that day were particularly bad in the area causing neighbouring mines to have similar problems. The BCM management plans are acceptable in their content however application of their management plans requires a more aggressive approach. Not Compliant 21(c) Minimise the surface disturbance on site; This was observed by the auditors during the site visit. 21(d) Regularly assess the real-time air quality monitoring and meteorological forecasting data and relocate, modify and/or stop operations on site to ensure compliance with the relevant conditions of this consent; and Interviews with Bengalla staff and the operations observed by the auditors during the site visit confirmed that Bengalla continues to operate a real time environmental monitoring system which includes alarms and meteorological forecasting, linked to a weather station. Under certain weather conditions, alarms will come up at dispatch so that operations can be modified for dust. Site planning meetings are undertaken each Friday, where forward planning for operations is discussed, including the influence of meteorological conditions. 21(e) Co-ordinate the air quality management on site with the air quality management at nearby mines (including the Mount Pleasant mine) to minimise the cumulative air quality impacts of the mines. Interviews with Bengalla staff confirmed the process by which Bengalla coordinates its cumulative impacts with other nearby mines. Additional Air Quality Mitigation Measures Upon receiving a written request from the owner of any residences on land listed in Table 13, the Applicant shall implement additional dust mitigation measures (such as a first flush roof system, internal or external air filters, and/or air conditioning) at the residence in consultation with the owner. These measures must be reasonable and feasible. 22 Interviews with Bengalla staff and a review of site documentation confirmed that such a request was received and responded to during If within 3 months of receiving this request from the owner, the Applicant and the the audit owner cannot agree on the measures to be implemented, or there is a dispute about the implementation of these measures, then either party may refer the matter to the Director-General for resolution. DA (as modified) Page 12

91 Audit Protocol: DA 211/93 (as modified) Air Quality and Greenhouse Management Plan 23 The Applicant shall prepare and implement an Air Quality and Greenhouse Gas Management Plan for the development to the satisfaction of the Director-General. This plan must: Appendix A of the Bengalla Mining Company Pty Limited Air Quality and Greenhouse Gas Management Plan (Bengalla, November 2011) fulfils these requirements. 23(a) Be prepared in consultation with OEH, and be submitted to the Director-General for approval by the end of February 2012; Section 2.1 and Appendix A of the Bengalla Mining Company Pty Limited Air Quality and Greenhouse Gas Management Plan (Bengalla, November 2012) fulfil these requirements. Plan was submitted to DPI on 29 Feb 2012 (Hansen bailey letter sighted). The plan was subsequently approved by DP&I on 9 November Correspondence letters for the AQGGMP are included as appendices to the Management Plan (letter to / and from the OEH dated 29 Feb 2012 and 6 Mar 2012 respectively). 23(b) Describe the measures that would be implemented to ensure compliance with the relevant conditions of this consent, including a real-time air quality management system that employs reactive and proactive mitigation measures; Section 3.0 of the Bengalla Mining Company Pty Limited Air Quality and Greenhouse Gas Management Plan (Bengalla, November 2011) fulfils these requirements. 23(c) Section 3.3 of the Bengalla Mining Company Include an air quality monitoring program that: Pty Limited Air Quality and Greenhouse Gas - uses a combination of real-time monitors and supplementary monitors to evaluate Management Plan (Bengalla, November 2011) the performance of the development; - includes PM2.5 monitoring (although this obligation could be satisfied by the regional air quality monitoring network if sufficient justification is provided); and Section 3.0 of the Bengalla Mining Company Pty Limited - Environmental Management Program (Bengalla, August 2010) - includes a protocol for determining exceedences of the relevant conditions of this fulfil these requirements. Bengalla also consent; and operates an inversion tower, which was viewed by the auditors during the site visit. 23(d) Include a protocol that has been prepared in consultation with the owners of nearby mines to minimise the cumulative air quality impacts of the mines. Section 3.4 of the Bengalla Mining Company Pty Limited Air Quality and Greenhouse Gas Management Plan (Bengalla, November 2011) fulfils these requirements. METEOROLOGICAL MONITORING 24 For the life of the development, the Applicant shall ensure that there is a suitable meteorological station operating in the vicinity of the site that: (a) complies with the requirements in the Approved Methods for Sampling of Air Pollutants in NSW guideline; and (b) is capable of continuous real-time measurement of temperature lapse rate in accordance with the NSW Industrial Noise Policy, or as otherwise approved by the OEH. During the site visit the auditors viewed correspondence from the consultant who installed this monitoring system, confirming that it complies with these requirements. This is managed as per Section 2.0 of the Bengalla Mining Company Pty Limited - Environmental Management Program (Bengalla, August 2010). SOIL AND WATER Note: Under the Water Act 1912 and/or the Water Management Act 2000, the Applicant is required to obtain water licences for the development. DA (as modified) Page 13

92 Audit Protocol: DA 211/93 (as modified) Water Supply 25 The Applicant shall ensure that it has sufficient water for all stages of the development, and if necessary, adjust the scale of mining operations to match its available supply of water, to the satisfaction of the Director-General. The auditors viewed copies of current water licences held by Bengalla during the site visit. Water discharges 26 The Applicant shall ensure that any mine water discharges from the site comply with the: (a) discharge limits (both volume and quality) set for the development in any EPL; or (b) relevant provisions in the POEO Act or Protection of the Environment Operations (Hunter River Salinity Trading Scheme) Regulation On 11 January 2012 the failure of a scour valve located on a water pipe resulted in an uncontrolled water discharge of 2.5 mega litres of mine affected water from that pipeline. The incident was reported to the EPA and DP&I on the same day, and the EPA was subsequently provided with a written report on the incident on 17 January Water samples were Not Compliant collected from discharged water at two locations. The results indicated that the potential for environmental harm to have been caused by the incident was negligible. Compensatory Water Supply 27 The Applicant shall provide compensatory water supply to any landowner of privately owned land whose water entitlements are adversely and directly impacted (other than an impact that is negligible) as a result of the development, in consultation with NOW, and to the satisfaction of the Director- General. The compensatory water supply measures must provide an alternative long-term supply of water that is equivalent to the loss attributed to the development. Equivalent water supply should be provided (at least on an interim basis) within 24 hours of the loss being identified. If the Applicant and the landowner cannot agree on the measures to be implemented, or there is a dispute about the implementation of these measures, then either party may refer the matter to the Director-General for resolution. If the Applicant is unable to provide an alternative long-term supply of water, then the Applicant shall provide alternative compensation to the satisfaction of the Director-General. Water Management Plan 28 The Applicant shall prepare and implement a Water Management Plan for the development to the satisfaction of the Director-General. This plan must be prepared in consultation with OEH, NOW, DRE and Council, and be submitted to the Director-General for approval by the end of February The plan must include: The Bengalla Mining Company Pty Limited Water Management Plan (Bengalla, September 2012) fulfils these requirements. Section 1.3 of the plan details how it was first provided to DP&I on 29 February The finalised plan was subsequently approved by DP&I on 9 November (a) a Site Water Balance, which must; a. Include details of: i. sources and security of water supply; ii. water use on site; iii. water management on site; iv. any off-site water transfers; and b. investigate and implement all reasonable and feasible measures to minimise water use by the development; Section 2.3 and Appendix A of the Bengalla Mining Company Pty Limited Water Management Plan (Bengalla, September 2012) fulfils these requirements. DA (as modified) Page 14

93 Audit Protocol: DA 211/93 (as modified) 28(b) a Drainage Path Diversion Plan, which must include: a. detailed design specifications for the drainage path relocation/rehabilitation; b. a construction program for the drainage path relocation/rehabilitation, describing how it would be staged, and integrated with mining operations; c. measures for identifying and managing potential impacts of the drainage path relocation/rehabilitation on: i. ARTC works and assets; and/or ii. existing agricultural activities; d. water quality, ecological, hydrological and geomorphic performance and completion criteria for the drainage path relocation/rehabilitation based on an assessment of baseline conditions; and e. a program to monitor and maintain the water quality, ecology, hydrological and geomorphic integrity of the drainage path relocation/rehabilitation; Section 6.0 and Appendix C of the Bengalla Mining Company Pty Limited Water Management Plan (Bengalla, September 2012) fulfils these requirements. 28(c) an Erosion and Sediment Control Plan, which must; a. identify activities that could cause soil erosion and generate sediment or affect flooding; b. describe measures to minimise soil erosion and the potential for the transport of sediment to downstream waters, and manage flood risk; c. describe the location, function, and capacity of erosion and sediment control structures and flood management structures; and d. describe what measures would be implemented to maintain the structures over time; Section 3.0 and Appendix C of the Bengalla Mining Company Pty Limited Water Management Plan (Bengalla, September 2012) fulfils these requirements. 28(d) a Surface Water Management Plan, which must include; a. detailed baseline data of surface water flows and quality in creeks and other waterbodies that could potentially be affected by the development; b. surface water and stream health impact assessment criteria including trigger levels for investigating any potentially adverse surface water impacts; c. a program to monitor and assess i. surface water flows and quality ii. impacts on water uses; iii. stream health; iv. channel stability; and Section 4.0 and Appendix C of the Bengalla Mining Company Pty Limited Water Management Plan (Bengalla, September 2012) fulfils these requirements. 28(e) a Ground Water Management Plan, which must include; a. detailed baseline data of groundwater levels, yield and quality in the region, and any privately-owned groundwater bores, that could be affected by the development; b. groundwater impact assessment criteria, including trigger levels for investigating any potentially adverse groundwater impacts; Section 5.0 and Appendix C of the Bengalla c. a description of the measures that will be implemented to minimise any Mining Company Pty Limited Water potential impacts on aquifer water quality from the emplacement of overburden on Management Plan (Bengalla, September 2012) alluvial lands; fulfils these requirements. d. a program to monitor and asses: i. groundwater inflows to the mining operations; ii. impacts on regional and local (including alluvial) aquifers; iii. impacts on the groundwater supply of potentially affected landowners; iv. impacts on any groundwater dependent ecosystems and riparian vegetation; DA (as modified) Page 15

94 Audit Protocol: DA 211/93 (as modified) 28(f) a Surface and Ground Water Response Plan, which must include: - a response protocol for any exceedence of the surface water and groundwater assessment criteria; - measures to offset the loss of any baseline flow to watercourses caused by the development; - measures to prevent, minimise or offset groundwater leakage from alluvial aquifers caused by the development; - measures to compensate landowners of privately-owned land whose supply is adversely affected by the development; and - measures to mitigate and/or offset any adverse impacts on groundwater dependent ecosystems or riparian vegetation. Note: The indicative modified drainage path is shown in Appendix 7. Section 7.0 and Appendix C of the Bengalla Mining Company Pty Limited Water Management Plan (Bengalla, September 2012) fulfils these requirements. HERITAGE Note: Under the National Parks and Wildlife Act 1974 or the Heritage Act 1977, the Applicant is required to obtain approvals for any impacts to Aboriginal objects and/or significant relics. Aboriginal Cultural Heritage Management Plan 29 The Applicant shall prepare and implement a Heritage Management Plan for the project to the satisfaction of the Director-General. This plan must: The Aboriginal Cultural Heritage Management Plan (Hansen Bailey, September 2012) and the Bengalla Mining Company Pty Limited European Heritage Management Plan (Bengalla, September 2012) fulfil these requirements. These plans were approved by DP&I on 9 November (a) Be prepared in consultation with DECCW, the Aboriginal community, the Heritage Branch, Council, local historic organisations and relevant landowners, and be submitted to the Director- General for approval by the end of February 2012; Sections 1.3, 3.0 and Appendices A and B of the Aboriginal Cultural Heritage Management Plan (Hansen Bailey, September 2012) and Section 1.7 of the Bengalla Mining Company Pty Limited European Heritage Management Plan (Bengalla, September 2012) fulfil these requirements. Plan was submitted to DPI on 29 Feb 2012 (Hansen Bailey letter sighted). Correspondence letters for the ACHMP are also included as appendices to the plan including: - Letter to / and from OEH dated 23 Jan 2012 and 20 Feb 2012 respectively; - Correspondence between various aboriginal group and landowners and Bengalla; - Correspondence between Upper Hunter Wonnarua Council and Bengalla; and - Correspondence between local aboriginal land council and Bengalla DA (as modified) Page 16

95 Audit Protocol: DA 211/93 (as modified) 29(b) Include the following for the management of Aboriginal heritage on site: - a program/procedures for: o salvage, excavation and/or management of Aboriginal sites and potential archaeological deposits within the development disturbance area; o protection and monitoring of Aboriginal outside of the disturbance area; o monitoring, notifying and managing the effects of blasting on potentially affected aboriginal sites; o maintaining and managing access to Aboriginal sites by the Aboriginal community; o contributing to Aboriginal cultural heritage management (in accordance with the commitments in the EIS and EA); o managing the discovery of any new Aboriginal objects or skeletal remains identified during the development; and o ongoing consultation and involvement of the Aboriginal communities in the conservation and management of Aboriginal cultural heritage on the site; and Section 4.0 of the Aboriginal Cultural Heritage Management Plan (Hansen Bailey, September 2012) fulfils these requirements. 29(c) Include the following for the management of other historic heritage on site: - a review of existing heritage items in the vicinity of the development, including an assessment of significance, that may be directly or indirectly affected, - photographic and archival recording of heritage items directly or indirectly affected by the project, in accordance with the applicable guidelines of the Heritage Council of NSW; - Conservation Management Plans for both the Bengalla and Overdene homesteads including details on access, long-term ownership, maintenance and use of the The Bengalla Mining Company Pty Limited homesteads; European Heritage Management Plan - measures to minimise the visual impacts of the development on the Edinglassie (Bengalla, September 2012) fulfils these and requirements. Rous Lench Homesteads; and - a description of measures that would be implemented for: o monitoring, notifying and managing the effects of development-related blasting on potentially affected heritage items; o managing the discovery of human remains or previously unidentified heritage items during the development; and o heritage inductions for construction personnel (including procedures for keeping records of inductions). DA (as modified) Page 17

96 Audit Protocol: DA 211/93 (as modified) TRANSPORT Coal Handling Transport 30 If the Mount Pleasant coal mine, or other mining operation, requires the use of the Bengalla rail loop, then the Applicant shall negotiate an agreement to facilitate the future use. This agreement must: (a) be dependent on the available capacity of the rail loop; (b) be developed in consultation with the ARTC and Council; (c) consider the requirements for: - the provision of an additional loading facility; - the sharing of maintenance and operating costs; - contributions to amortise capital costs of the establishment of the loop; - access to the loop and loading area; and - accommodation of a coal transfer and handling system. Monitoring of Coal Transport 31 The Applicant shall: (a) keep records of the: - amount of coal transported from the site (on a monthly basis); and - date and time of each train movement generated by the development; and (b) make these records available on its website at the end of each calendar year. This requirement was only added into the conditions of consent in The auditors viewed the Bengalla Mining Company Monitoring of Coal Transport 2011, the Bengalla Mining Company Monitoring of Coal Transport 2012 and the Bengalla Mining Company Monitoring of Coal Transport 2013 on the Bengalla website. Traffic Management 32 The Applicant shall: (a) be responsible for the costs of maintenance of Bengalla Link Road from Denman Road to the Western limit of the 1 in 100 year flood level for the life of the mine or as otherwise agreed by Council; and (b) maintain signs giving at least 24 hours notice of road closure on Wybong Road and Bengalla Link Road. The location and the wording of these signs are to be approved by Council. The auditors viewed invoices showing that this maintenance was done. The relevant signs were also viewed by the auditors during the site visit. Council has approved Bengalla's Road Management Plan and Traffic Management Plans. Auditors were satisfied with compliance at the time of audit interview. 33 The Applicant shall implement any improvement works recommended by the 2007 road safety audit of night time operations at the Bengalla Link Road/Denman Road intersection, to the satisfaction of the RTA and Council. DA (as modified) Page 18

97 Audit Protocol: DA 211/93 (as modified) VISUAL Visual Amenity and Lighting 34 The Applicant shall, to the satisfaction of the Director-General: These measures are contained in section of the Bengalla Mine Operations Plan MOP (1 January December 2015) (Bengalla) which was approved in December (a) Implement all reasonable and feasible measures to mitigate the visual and off-site lighting impacts of the development; Interviews with Bengalla staff confirmed that nightly visual assessments are undertaken at three locations throughout the site to assess lighting and noise impacts. are captured. Visual management measures are also included in site training. During the site visit the auditors also observed the site to be bunded so that equipment and plant cannot be seen. Mobile plant and lighting towers, for instance, are shielded to prevent such impacts. 34(b) Ensure no outdoor lights shine above the horizontal; Interviews with Bengalla staff confirmed that training is undertaken for all site personnel to ensure that operators know to keep lights facing down and below the horizontal. Floodlights on the site are positioned as such. 34(c) Screen all on-site flood lighting and vehicular lights within the development, in accordance with the Connell Wagner Report, and the submission of Kevin Barry to the Commission of Inquiry; and Interviews with Bengalla staff confirmed that lux tests have been carried out for onsite lighting. The site does not have a history of receiving lighting complaints. 34(d) Ensure that all external lighting associated with the development complies with Australian Standard AS4282 (INT) 1997 Control of Obtrusive Effects of Outdoor Lighting. Lighting at Bengalla is maintained according to PRO-0365 Placement and Operation of Lighting Sets. However there is nothing to suggest that Not Compliant this complies with AS4282 (INT) 1997 Control of Obtrusive Effects of Outdoor Lighting. Landscape Management Plan 35 The Applicant shall prepare and implement a Landscape Management Plan to mitigate the visual impacts of the development, to the satisfaction of the Director- General. This plan must: - be prepared in consultation with Council, and submitted to the Director-General for approval by the end of December 2012; and - provide for the establishment of trees and shrubs of the eastern overburden emplacement area. The Bengalla Mining Company Pty Limited Landscape Management Plan (Bengalla, April 2013) fulfils these requirements. On 17 December 2012 DP&I granted an extension for the submission of this plan until 31 January The draft of this plan was submitted on 31 January Approved by DG on (letter sighted). DA (as modified) Page 19

98 Audit Protocol: DA 211/93 (as modified) BUSHFIRE MANAGEMENT 36 The Applicant shall: (a) ensure that the development is suitably equipped to respond to any fires on site; and (b) assist the Rural Fire Service and emergency services as much as possible if there is a fire in the vicinity of the site. Bengalla maintains a fleet of water carts onsite and a fully equipped mobile fire-fighting unit with the capacity to respond to bushfires if required. Bengalla's general emergency response team is also onsite also. During 2011, one small grass fire occurred across 3.74 hectares of Bengalla land. The incident was managed by Bengalla, and the fire was extinguished promptly. One small fire also occurred in the CHPP work area in 2011 and was also managed by site personnel. WASTE 37 The Applicant shall, to the satisfaction of the Director-General: This information is outlined in the Bengalla Mine Operations Plan MOP (1 January December 2015) (Bengalla), which was approved in December (a) Minimise the waste (including coal reject) generated by the development; During the audit period the CHPP phase three upgrade was undertaken. This helps reduce coal reject at the site. 37(b) Ensure that waste generated by the development is appropriately stored, handled and disposed of; Waste management was viewed by the auditors during the site visit and was generally observed to be appropriate. 37(c) Manage on-site sewage treatment and disposal in accordance with the requirements of Council; and A sewerage system is located onsite. During the site visit the auditors viewed copies of the relevant consents from Muswellbrook Shire Council for the septic tanks. 37(d) Report on waste management and minimisation in the Annual Review, This information is provided in section 3.19 of the Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and section 4.13 of the Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013). DA (as modified) Page 20

99 Audit Protocol: DA 211/93 (as modified) AGRICULTURAL PRODUCTIVITY RESEARCH PROGRAM 38 The Applicant shall prepare and implement a Agricultural Productivity Research Program for the development to the satisfaction of the Director-General, and allocate $1,000,000 towards the implementation of this program. This program must: This project continues to be undertaken at Bengalla, and the site has been shortlisted for award regarding this project. During the site visit the auditors viewed budget records indicating that the necessary funds continue to be set aside. 38(a) Be prepared in consultation with DPI, OEH, CMA and NOW; Getting copies of consultation letters. The Bengalla Mining Company Pty Limited Land Management Plan (Bengalla) fulfils these requirements. Evidence of meetings was shows to auditors during audit interview. 38(b) Be submitted to the Director General by the end of 2012; This was approved by the D-G before it was included in this updated version of the conditions of consent in (c) Be directed at encouraging or improving agricultural productivity of land within the local region; and This project continues to be undertaken at Bengalla, and the site has been shortlisted for award regarding this project. During the site visit the auditors viewed budget records indicating that the necessary funds continue to be set aside. 38(d) Be targeted at genuine research, as opposed to implementing the matters required by this consent. This project continues to be undertaken at Bengalla, and the site has been shortlisted for award regarding this project. During the site visit the auditors viewed budget records indicating that the necessary funds continue to be set aside. DA (as modified) Page 21

100 Audit Protocol: DA 211/93 (as modified) REHABILITATION Rehabilitation Objectives The Applicant shall rehabilitate the site to the satisfaction of the Executive Director, Mineral Resources in DRE. This rehabilitation must be generally consistent with the proposed rehabilitation strategy described in the EIS and EA, and comply with the These slopes were viewed by the auditors objectives in Table 14. during the site visit. Some slopes were observed to be above this 10% criterion. 39 Technical Non Compliance Progressive Rehabilitation 40 The Applicant shall carry out the rehabilitation of the site progressively, that is, as soon as practicable following disturbance. Interviews with Bengalla staff, a review of site records and the site inspection undertaken by the auditors confirmed that this rehabilitation program continues to be undertaken based on seasonal conditions and mining operations. Rehabilitation Management Plan 41 The Applicant shall prepare and implement a Rehabilitation Management Plan for the development to the satisfaction of the Executive Director Mineral Resources in DRE. This plan must: The Bengalla Mining Company Pty Limited Rehabilitation Management Plan (Bengalla, April 20130) fulfils these requirements. Approved by DG on (letter sighted). 41(a) Section 1.7 of the Bengalla Mining Company Pty Limited Rehabilitation Management Plan (Bengalla, April 20130) sets out how a draft of Be prepared in consultation with the Department, OEH, NOW, Council and the CCC this plan was provided to OEH, DP&I, NoW, Muswellbrook Shire Council, and the Bengalla CCC. DA (as modified) Page 22

101 Audit Protocol: DA 211/93 (as modified) 41(b) Be submitted to the Executive Director Mineral Resources in DRE for approval by the end of December 2012; On 17 December 2012 Bengalla sought an extension for the submission of this plan until 31 January 2013, which was granted by DP&I. Bengalla submitted the draft plan to DP&I and DRE on 31 January DRE, DP&I, the EPA and NoW have subsequently confirmed with Bengalla that they are satisfied with the plan. 41(c) Be prepared in accordance with any relevant DRE guideline, and be consistent with the rehabilitation objectives above; Section 1.5 of the Bengalla Mining Company Pty Limited Rehabilitation Management Plan (Bengalla, April 20130) fulfils these requirements. 41(d) Build, to the maximum extent practicable, on the other management plans required under this consent; and Section 2.1 of the Bengalla Mining Company Pty Limited Rehabilitation Management Plan (Bengalla, April 20130) fulfils these requirements. 41(e) Address all aspects of rehabilitation, mine closure, final landform including final land use assessment, rehabilitation objectives, domain objectives, completion criteria and rehabilitation monitoring, and include: - an evaluation of end land use options for final void/s; and - a life of mine tailings management strategy, including an environmental risk assessment demonstrating that the emplacements can be designed, managed and rehabilitated appropriately. Sections 3.0, 4.0 and 5.0 of the Bengalla Mining Company Pty Limited Rehabilitation Management Plan (Bengalla, April 20130) fulfil these requirements. 42 Sections 3.9 of the Bengalla Mining Company Pty Limited Rehabilitation Management Plan (Bengalla, April 20130) details this. No The Applicant shall maintain the agricultural productivity of the non-alluvial land not agricultural assessments of alluvial lands have being mined or rehabilitated, and ensure that the agricultural potential of the alluvial been conducted to the satisfaction of the flats under its control (with the exception of land within the approved 21 year Director General. disturbance boundary) is not decreased, to the satisfaction of DPI. Observations made indicate that the land is not being appropriately managed, and is possibly being derogated by its current usage. DA (as modified) Page 23

102 Audit Protocol: DA 211/93 (as modified) SCHEDULE 4 - ADDITIONAL PROCEDURES NOTIFICATION OF LANDOWNERS 1 By the end of November 2011, the Applicant shall: This was done by the end of November (a) Notify in writing the owners of: - any residence on the noise-affected land in Table 5 of schedule 3 that they are entitled to ask for additional noise mitigation measures to be implemented at their residence at any stage of the development; - any residence on the air quality-affected land listed in Table 13 of schedule 3 that they are entitled to ask for additional air quality mitigation measures to be installed at their residence at any stage of the development; - any privately-owned land within 2 kilometres of the approved open cut mining pit on the site that they are entitled to ask for an inspection to establish the baseline condition of any buildings and/or structures on their land, or to have a previous property inspection report updated; and As outlined in the Bengalla Mining Company Pty Limited Air Quality and Greenhouse Gas Management Plan (Bengalla, November 2011), written notices were sent to landholders in November 2011 to notify residences in air quality affected land they are entitled to request additional air quality mitigation measures with a copy of Mine Dust and You. 1(b) Send a copy of the NSW Health fact sheet entitled Mine Dust and You (as may be updated from time to time) to the owners and/or existing tenants of any land (including mine-owned land) where the predictions in the EA identify that dust emissions generated by the development are likely to be greater than the relevant air quality criteria in schedule 3 at any time during the life of the development. As outlined in the Bengalla Mining Company Pty Limited Air Quality and Greenhouse Gas Management Plan (Bengalla, November 2011), written notices were sent to landholders in November 2011 to notify residences in air quality affected land they are entitled to request additional air quality mitigation measures with a copy of Mine Dust and You. 2 As soon as practicable after obtaining monitoring results showing: This correspondence was provided as soon as practicable after the monitoring results were received and analysed. 2(a) An exceedance of the relevant criteria in schedule 3, the Applicant shall notify the affected landowner and tenants in writing of the exceedance, and provide regular monitoring results to each of these parties until the development is complying with the relevant criteria again; During the site visit the auditors viewed copies of such correspondence provided to residents on 15 July 2012 outlining noise exceedances which occurred in late June This correspondence was therefore provided as soon as practicable after the monitoring results were received and analysed. 2(b) An exceedance of the relevant air quality criteria in schedule 3, the Applicant shall send a copy of the NSW Health fact sheet entitled Mine Dust and You (as may be updated from time to time) to the affected landowners and/or existing tenants of the land (including the tenants of any mine-owned land). DA (as modified) Page 24

103 Audit Protocol: DA 211/93 (as modified) INDEPENDENT REVIEW 3 If an owner of privately-owned land considers the development to be exceeding the criteria in schedule 3, then he/she may ask the Director-General in writing for an independent review of the impacts of the development on his/her land. If the Director-General is satisfied that an independent review is warranted, then within 2 months of the Director-General s decision the Applicant shall: 3(a) commission a suitably qualified, experienced and independent expert, whose appointment has been approved by the Director-General, to: - consult with the landowner to determine his/her concerns; - conduct monitoring to determine whether the development is complying with the relevant criteria; and - if the development is not complying with these criteria, then: o determine if more than one mine is responsible for the exceedence, and if so the relative share of each mine towards the impact of the land; o identify the measures that could be implemented to ensure compliance with the relevant criteria; and 3(b) give the Director-General and landowner a copy of the independent review. 4 If the independent review determines that the development is complying with the relevant criteria Schedule 3, then the Applicant may discontinue the independent review with the approval of the Director-General. If the independent review determines that the development is not complying with the relevant criteria, and that the development is primarily responsible for this noncompliance, then the Applicant shall: (a) implement all reasonable and feasible mitigation measures, in consultation with the landowner and appointed independent expert, and conduct further monitoring until the development complies with the relevant criteria; or (b) secure a written agreement with the landowner to allow exceedences of the relevant criteria, to the satisfaction of the Director-General. If the independent review determines that the development is not complying with the relevant acquisition criteria, and that the development if primarily responsible for this non-compliance, then upon receiving a written request from the landowner, the Applicant shall acquire all or part of the landowner s land in accordance with the procedures in conditions 6-7 below. DA (as modified) Page 25

104 Audit Protocol: DA 211/93 (as modified) 5 If the independent review determines that the relevant criteria are being exceeded, but that more than one mine is responsible for this exceedance, then together with the relevant mine/s the Applicant shall: (a) implement all reasonable and feasible mitigation measures, in consultation with the landowner and appointed independent expert, and conduct further monitoring until there is compliance with the relevant criteria; or (b) secure a written agreement with the landowner and other relevant mines to allow exceedances of the relevant criteria, to the satisfaction of the Director-General. If the independent review determines that the development is not complying with the relevant acquisition criteria in schedule 3, but that more than one mine is responsible for this non-compliance, then upon receiving a written request from the landowner, the Applicant shall acquire all or part of the landowner s land on as equitable a basis as possible with the relevant mine/s, in accordance with the procedures in conditions 6-7 below. LAND ACQUISITION 6 Within 3 months of receiving a written request from a landowner with acquisition rights, the Applicant shall make a binding written offer to the landowner based on: (a) the current market value of the landowner s interest in the land at the date of this written request, as if the land was unaffected by the development, having regard to the: - existing and permissible use of the land, in accordance with the applicable planning instruments at the date of the written request; and - presence of improvements on the land and/or any approved building or structure which has been physically commenced on the land at the date of the landowner s written request, and is due to be completed subsequent to that date, but excluding any improvements that have resulted from the implementation of any additional mitigation measures under condition 5 and/or condition 20 of schedule 3; (b) the reasonable costs associated with: - relocating within the Muswellbrook, Singleton or Scone local government areas, or to any other local government area determined by the Director-General; and - obtaining legal advice and expert advice for determining the acquisition price of the land, and the terms upon which it is to be acquired; and (c) reasonable compensation for any disturbance caused by the land acquisition process. Interviews with Bengalla staff confirmed that this occurred during the audit period, and the process was carried out appropriately. However, if at the end of this period, the Applicant and landowner cannot agree on the acquisition price of the land and/or the terms upon which the land is to be acquired, then either party may refer the matter to the Director-General for resolution. DA (as modified) Page 26

105 Audit Protocol: DA 211/93 (as modified) Upon receiving such a request, the Director-General will request the President of the NSW Division of the Australian Property Institute to appoint a qualified independent valuer to: - consider submissions from both parties; - determine a fair and reasonable acquisition price for the land and/or the terms upon which the land is to be acquired, having regard to the matters referred to in paragraphs (a)-(c) above; - prepare a detailed report setting out the reasons for any determination; and - provide a copy of the report to both parties. Within 14 days of receiving the independent valuer s report, the Applicant shall make a binding written offer to the landowner to purchase the land at a price not less than the independent valuer s determination. However, if either party disputes the independent valuer s determination, then within 14 days of receiving the independent valuer s report, they may refer the matter to the Director-General for review. Any request for a review must be accompanied by a detailed report setting out the reasons why the party disputes the independent valuer s determination. Following consultation with the independent valuer and both parties, the Director-General will determine a fair and reasonable acquisition price for the land, having regard to the matters referred to in paragraphs (a)-(c) above, the independent valuer s report, the detailed report of the party that disputes the independent valuer s determination and any other relevant submissions. Within 14 days of this determination, the Applicant shall make a binding written offer to the landowner to purchase the land at a price not less than the Director- General s determination. If the landowner refuses to accept the Applicant s binding written offer under this condition within 6 months of the offer being made, then the Applicant's obligations to acquire the land shall cease, unless the Director-General determines otherwise. 7 The Applicant shall pay all reasonable costs associated with the land acquisition process described in Condition 6 above, including the costs associated with obtaining Council approval for any plan of subdivision (where permissible), and registration of this plan at the Office of the Registrar-General. DA (as modified) Page 27

106 Audit Protocol: DA 211/93 (as modified) SCHEDULE 5 - ENVIRONMENTAL MANAGEMENT, REPORTING AND AUDITING ENVIRONMENTAL MANAGEMENT Environmental Management Strategy 1 The Applicant shall prepare and implement an Environmental Management Strategy for the development to the satisfaction of the Director-General. The strategy must: The Environmental Management Strategy (Bengalla, January 2013) fulfils these requirements. Approved by DG on (letter sighted). 1(a) Be submitted to the Director-General for approval before the end of December 2012; EMS submission date was granted by DPI on 17 Dec Submission date was extended to the 31 January (b) Provide the strategic context for environmental management of the development; Section 4.0 of the Environmental Management Strategy (Bengalla, January 2013) fulfils these requirements. 1(c) Identify the statutory approvals that apply to the development; Section 7.0 of the Environmental Management Strategy (Bengalla, January 2013) fulfils these requirements. 1(d) Describe the role, responsibility, authority, and accountability of all key personnel involved in environmental management of the development; Section 8.10 of the Environmental Management Strategy (Bengalla, January 2013) fulfils these requirements. 1(e) Describe the procedures that would be implemented to: - keep the local community and relevant agencies informed about the operation and environmental performance of the development; - receive, handle, respond to, and record complaints; - resolve any disputes that may arise during the course of the development; - respond to any non-compliance; - manage cumulative impacts; and - respond to emergencies; and Sections 8.3, 8.4, and 9.2 of the Environmental Management Strategy (Bengalla, January 2013) fulfil these requirements. 1(f) Include: - copies of any strategies, plans and programs that are approved under the conditions of this consent once they have been approved; and - a clear plan depicting all the monitoring, required to be carried in relation to the development. The other required management plans at Bengalla were submitted separately to the Environmental Management Strategy (Bengalla, January 2013). However, all of these management plans form part of the same overall management system. DA (as modified) Page 28

107 Audit Protocol: DA 211/93 (as modified) Management Plan Requirements 2 The Applicant shall ensure that the management plans required under this consent are prepared in accordance with any relevant guidelines, and include: (a) detailed baseline data; (b) a description of: - the relevant statutory requirements (including any relevant consent, licence or lease conditions); - any relevant limits or performance measures/criteria; - the specific performance indicators that are proposed to be used to judge the performance of, or guide the implementation of, the development or any management measures; (c) a description of the measures that would be implemented to comply with the relevant statutory requirements, limits, or performance measures/criteria; (d) a program to monitor and report on the: - impacts and environmental performance of the development; - effectiveness of any management measures (see c above); (e) a contingency plan to manage any unpredicted impacts and their consequences; (f) a program to investigate and implement ways to improve the environmental performance of the development over time; (g) a protocol for managing and reporting any: - incidents; - complaints; - non-compliances with statutory requirements; and - exceedances of the impact assessment criteria and/or performance criteria; and (h) a protocol for periodic review of the plan. Note: The Director-General may waive some of these requirements if they are unnecessary or unwarranted. A review of Bengalla's management plans was undertaken by the auditors. Overall, the site's management plans were found to generally comply with these requirements. Annual Review 3 By the end of March each year (or other such timing as agreed by the Director- General), the Applicant shall review the environmental performance of the development to the satisfaction of the Director-General. This review must: The Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011), the Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012) and the Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) fulfil these requirements. 3(a) Describe the development (including any rehabilitation) that was carried out in the past year, and the development that is proposed to be carried out over the next year; The Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011), the Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012) and the Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) fulfil these requirements. DA (as modified) Page 29

108 Audit Protocol: DA 211/93 (as modified) 3(b) Include a comprehensive review of the monitoring results and complaints records of the development over the past year, which includes a comparison of these results against : - the relevant statutory requirements, limits or performance measures/criteria; - the monitoring results of previous years; and - the relevant predictions in the EIS and EA; Section 3.0 of the Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011), section 3.0 of the Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012) and sections 4.0 and 5.2 of the Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) fulfil these requirements. 3(c) Identify any non-compliance over the last year, and describe what actions were (or are being) taken to ensure compliance; Section 3.0 of the Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011), section 3.0 of the Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012) and section 4.0 of the Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) fulfil these requirements. 3(d) Identify any trends in the monitoring data over the life of the development; Section 3.0 of the Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011), section 3.0 of the Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012) and section 4.0 of the Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) fulfil these requirements. 3(e) Section 3.0 of the Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011), section 3.0 of the Bengalla Mining Company Pty Limited Annual Environmental Management Identify any discrepancies between the predicted and actual impacts of the Report and Annual Review 2011 (Bengalla, development, and analyse the potential cause of any significant discrepancies; and March 2012) and section 4.0 of the Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) fulfil these requirements. DA (as modified) Page 30

109 Audit Protocol: DA 211/93 (as modified) 3(f) Describe what measures will be implemented over the next year to improve the environmental performance of the development. Section of the Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011), section of the Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012) and section 4.0 of the Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) fulfil these requirements. Revision of Strategies, Plans and Programs 4 Within 3 months of: (a) the submission of an annual review under condition 3 above; (b) the submission of an incident report under condition 7 below; (c) the submission of an audit under condition 9 below; and (d) any modification to the conditions of this consent, the Applicant shall review, and if necessary revise, the strategies, plans, and programs required under this consent to the satisfaction of the Director-General. Note: This is to ensure the strategies, plans and programs are updated on a regular basis, and incorporate any recommended measures to improve the environmental performance of the development. The auditors saw the review history of the management plans at Bengalla, and found that the majority of plans were reviewed and updated at least once (most were updated several times) during the audit However it is recommended that Bengalla consolidate the review and update of its management plans to ensure that this is recorded and responded to when required. This could be done in the form of an electronic table which a checklist for each triggering action and annual review dates for each Bengalla management plan. - Recommendation Made Management of Cumulative Impacts 5 In conjunction with the owners of the nearby mines (including the Mount Pleasant Mine), the Applicant shall use its best endeavours to minimise the cumulative impacts of the development on the surrounding area to the satisfaction of the Director-General. Note: Nothing in this consent is to be construed as requiring the Applicant to act in a manner which is contrary to the Trade Practices Act Section 3.6 of the Bengalla Mining Company Pty Limited Air Quality and Greenhouse Gas Management Plan (Bengalla, November 2011) and section 5.3 of the Bengalla Mining Company Pty Limited Noise Management Plan (Bengalla, August 2013) fulfil these requirements. Community Consultative Committee 6 The Applicant shall operate a Community Consultative Committee (CCC) for the development to the satisfaction of the Director-General. This CCC must be operated in general accordance with the Guidelines for Establishing and Operating Community Consultative Committees for Mining Projects (Department of Planning, 2007, or its latest version). Note: The CCC is an advisory committee. The Department and other relevant agencies are responsible for ensuring that the Applicant complies with this consent. Bengalla continues to operate its CCC in this manner. DA (as modified) Page 31

110 Audit Protocol: DA 211/93 (as modified) REPORTING Incident Reporting 7 The Proponent shall notify the Director-General and any other relevant agencies of any incident that has caused, or has the potential to cause, significant risk of material harm to either human health or the environment, at the earliest While a limited number of isolated opportunity. For any other incident associated with the project, the Proponent shall environmental incidents have occurred at the notify the Director-General and any other relevant agencies as soon as practicable site during the audit period, there have been no after the Proponent becomes aware of the incident. Within 7 days of the date of the actual instances of environmental harm as incident, the Proponent shall provide the Director-General and any relevant defined under section 147 of the POEO Act. agencies with a detailed report on the incident, and such further reports as may be requested. Regular Reporting 8 The Applicant shall provide regular reporting on the environmental performance of the development on its website, in accordance with the reporting arrangements in any plans or programs approved under the conditions of this consent. During the audit the auditors undertook a review of the Bengalla website, and found this information to be generally available. INDEPENDENT ENVIRONMENTAL AUDIT 9 By the end of July 2013, and every 3 years thereafter, unless the Director-General directs otherwise, the Applicant shall commission and pay the full cost of an Independent Environmental Audit of the development. This audit must: The current IEA satisfies these requirements. 9(a) Be conducted by a suitably qualified, experienced and independent team of experts whose appointment has been endorsed by the Director-General; The current IEA satisfies these requirements. 9(b) Include consultation with the relevant agencies; The current IEA satisfies these requirements. 9(c) Assess the environmental performance of the development and whether it is complying with the requirements in this consent and any relevant EPL or Mining Lease (including any assessment, plan or program required under these instruments); The current IEA satisfies these requirements. 9(d) Review the adequacy of strategies, plans or programs required under the abovementioned instruments; and The current IEA satisfies these requirements. If necessary, recommend appropriate measures or actions to improve the environmental performance of the development, and/or any strategy, plan or program required under the abovementioned instruments. 9(e) Notes: - This audit team must be led by a suitably qualified auditor and include experts in any fields specified by the Director-General. - The audits can be coordinated with similar auditing requirements for the Mt Pleasant mine. The current IEA satisfies these requirements. 10 Within 3 months of commissioning this audit, or as otherwise agreed by the Director-General, the Applicant shall submit a copy of the audit report to the Director-General, together with its response to any recommendations contained in the audit report. This IEA to be submitted prior to 28 October DA (as modified) Page 32

111 Audit Protocol: DA 211/93 (as modified) ACCESS TO INFORMATION 11 The Applicant shall, to the satisfaction of the Director General: AECOM does not consider it possible to determine whether the DG is satisfied with this requirement. 11(a) Make the following information publicly available on its website: - the EIS and EA; - all current statutory approvals for the development; - approved strategies, plans and programs required under the conditions of this consent; - a comprehensive summary of the monitoring results of the development, which have been reported in accordance with the various plans and programs approved under the conditions of this consent; - a complaints register, which is to be updated on a monthly basis; - minutes of CCC meetings; - the annual reviews (over the last 5 years); - any independent environmental audit, and the Applicant s response to the recommendations in any audit; - any other matter required by the Director-General; and During the audit the auditors undertook a review of the Bengalla website, and found this information to be generally available. 11(b) Keep this information up to date. During the audit the auditors undertook a review of the Bengalla website, and found this information to be generally available. Appendix 5 - Statement of Commitments Construction and Operation 1 A procedure detailing specific topsoil stripping methods will be developed in consultation with I&I NSW to ensure topsoil stripped from the Southern OEA Extension is utilised beneficially within the rehabilitation activities of the existing OEA. The Bengalla Topsoil Stripping Procedure (January, 2012) fulfils these requirements. 2 No reject material or Wynn interburden (Archerfield Sandstone) will be placed within the Southern OEA Extension beyond the Limit of Reject Emplacement indicated on Figure 3. Interviews with Bengalla staff confirmed that the site continues to be operated in this manner. Environmental Management and Monitoring 3 The CAN EMA will continue to be relied upon for environmental management, mitigation and monitoring at Bengalla, including for this Modification. The relevant plans will be updated as required. The auditors viewed evidence of management plans having been updated during the audit period to take into account comments made by regulators, including DP&I. DA (as modified) Page 33

112 Audit Protocol: DA 211/93 (as modified) 4 These measures in section 6 of the BMC will implement the management and mitigation measures as described in Environmental Assessment, Development Sections 6.1.4, 6.2.4, 6.3.4, 6.4.4, 6.5.4, 6.6.4, 6.7.4, 6.8.4, 6.9.4, and Consent Modification (MOD 4) (Hansen Bailey, to ensure that potential environmental issues are appropriately managed. 2010) were generally found to have been complied with. 5 BMC will continue to implement the noise management and mitigation measures listed in Section as required to ensure noise levels described within this EA remain within the predictions presented in Table 7. There has been an exceedance of these criteria. Monitoring results taken during the day of 20 June 2012 recorded a noise level of 41 dba. Monitoring was being undertaken at Racecourse Road (i.e. the Farrell residence). An incident report was prepared, and provided to DP&I. Following the incident, Bengalla implemented several operational restrictions and containment measures to ensure ongoing compliance with noise criteria. Not Compliant 6 Two additional groundwater monitoring bores (SMB1 and SMB2) will be incorporated into the existing Bengalla Environmental Monitoring Program to monitor potential impacts of this modification. This was undertaken, as reported in section of Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012). 7 BMC will revise and consolidate its Rehabilitation and Landscape Management Plan and the Landscape Management Plan to incorporate details of this modification in consultation with MSC, I&I NSW and to the satisfaction of DoP. The Bengalla Mining Company Pty Limited Rehabilitation Management Plan (Bengalla, April 2013) and the Bengalla Mining Company Pty Limited Landscape Management Plan (Bengalla, April 2013) were both updated during the audit Approved by DG on (letter sighted). 8 BMC will revise its existing Land Management Plan to incorporate details of this Modification, including the implementation of management measures required to compensate on impacts on Class II agricultural lands. This review will be undertaken in consultation with MSC, I&I NSW and to the satisfaction of the DoP. This review has not been undertaken - the latest version of the Land Management Plan is dated Not Compliant 9 BMC will prepare a new Mining Operations Plan in accordance with I&I NSW Mining Rehabilitation Environmental Planning (MREP) Guidelines or relevant guidelines. The Bengalla Mine Operations Plan MOP (1 January December 2015) (Bengalla) fulfils these requirements. This plan was approved in December Apprentices 10 BMC will, wherever possible and feasible, employ four (4) apprentices per year from the local area for the life of the mine. Bengalla first took apprentices in 2006 as part of the CNA program. First apprentices to go through the Mining Skills was in the 2007 intake. Since then Bengalla have had 13 more apprentices complete the skills centre. There were 2 in 2007, 2 in 2008, 1 in 2009, 2 in 2010, 2 in 2011, 2 in 2012, and 4 in All up Bengalla have trained 18 apprentices since 2006, 9 electrical and 9 plant mechanics. DA (as modified) Page 34

113 AECOM Independent Environmental Audit Appendix E Audit Protocol: Environmental Protection Licence 6538 Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

114 AECOM Independent Environmental Audit e-1 Appendix E Audit Protocol: Environmental Protection Licence 6538 Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

115 Audit Protocol: EPL 6538 Clause Requirement Evidence Audit Finding EPL ADMINISTRATIVE CONDITIONS A1 What the licence authorises and regulates This licence authorises the carrying out of the scheduled activities listed below at the premises specified in A2. The activities are listed according to their scheduled activity classification, fee-based activity classification and the scale of the operation. A1.1 Unless otherwise further restricted by a condition of this licence, the scale at which the activity is carried out must not exceed the maximum scale specified in this condition. A2 Premises or plant to which this licence applies The licence applies to the following premises: A2.1 A3 Other activities This licence applies to all other activities carried on at the premises, including: A3.1 A4 Information supplied to the EPA Works and activities must be carried out in accordance with the proposal contained in the licence application, except as expressly provided by a condition of this licence. A4.1 In this condition the reference to "the licence application" includes a reference to: a) the applications for any licences (including former pollution control approvals) which this licence replaces under the Protection of the Environment Operations (Savings and Transitional) Regulation 1998; and b) the licence information form provided by the licensee to the EPA to assist the EPA in connection with the issuing of this licence. 2 - DISCHARGES TO AIR AND WATER AND APPLICATIONS TO LAND P1 Location of monitoring/discharge points and areas The following points referred to in the table below are identified in this licence for the Monitoring at Bengalla continues to be purposes of monitoring and/or the setting of limits for the emission of pollutants to the undertaken in this manner. air from the point. P1.1 P1.2 The following points referred to in the table are identified in this licence for the purposes of the monitoring and/or the setting of limits for discharges of pollutants to water from the point. Monitoring at Bengalla continues to be undertaken in this manner. EPL 6538 Page 1

116 Audit Protocol: EPL 6538 The following utilisation areas referred to in the table below are identified in this licence for the purposes of the monitoring and/or the setting of limits for any application of solids or liquids to the utilisation area. Monitoring at Bengalla continues to be undertaken in this manner. P1.3 The following point is identified in this licence for the purpose of the monitoring of weather parameters at the point: Monitoring at Bengalla continues to be undertaken in this manner. P LIMIT CONDITIONS L1 Pollution of waters Except as may be expressly provided in any other condition of this licence, the licensee must comply with section 120 of the Protection of the Environment L1.1 Operations Act L2 Concentration limits For each monitoring/discharge point or utilisation area specified in the table\s below (by a point number), the concentration of a pollutant discharged at that point, or applied to that area, must not exceed the concentration limits specified for that pollutant in the table. L2.1 An isolated unlicensed water discharge event occurred during the audit However the auditors do not consider that this event constitutes the pollution of waters as per section 120 of the POEO Act. During the site visit the auditors viewed records of data obtained during discharge events, and none of these criteria were found to be exceeded. The auditors also viewed copies of discharge checklists that were filled in before those discharges took place. L2.2 Where a ph quality limit is specified in the table, the specified percentage of samples must be within the specified ranges. During the site visit the auditors viewed records of data obtained during discharge events, and none of these criteria were found to be exceeded. The auditors also viewed copies of discharge checklists that were filled in before those discharges took place. To avoid any doubt, this condition does not authorise the pollution of waters by any pollutant other than those specified in the table\s. During the site visit the auditors viewed records of data obtained during discharge events, and none of these criteria were found to be exceeded. The auditors also viewed copies of discharge checklists that were filled in before those discharges took place. L2.3 EPL 6538 Page 2

117 Audit Protocol: EPL 6538 L2.4 Water and/or Land Concentration Limits During the site visit the auditors viewed records of data obtained during discharge events, and none of these criteria were found to be exceeded. The auditors also viewed copies of discharge checklists that were filled in before those discharges took place. L3 Volume and mass limits For each discharge point or utilisation area specified below (by a point number), the volume/mass of: a) liquids discharged to water; or; b) solids or liquids applied to the area; must not exceed the volume/mass limit specified for that discharge point or area. L3.1 During the site visit the auditors viewed records of data obtained during discharge events, and none of these criteria were found to be exceeded. The auditors also viewed copies of discharge checklists that were filled in before those discharges took place. L4 Blasting The overpressure level from blasting operations carried out in or on the premises During the site visit, auditors viewed blasting must not: records showing that blasting was undertaken a) exceed 115 db(l) for more than 5% of the total number of blasts carried out on the within these limits during the audit premises within the 12 months annual reporting period; and b) exceed 120 db(l) at any time at any residence or noise sensitive location (such as a school or hospital) that is not owned by the licensee or subject of a private L4.1 agreement between the owner of the residence or noise sensitive location and the licensee as to an alternative overpressure level. L4.2 The ground vibration peak particle velocity from blasting operations carried out in or During the site visit, auditors viewed blasting on the premises must not: records showing that blasting was undertaken a) exceed 5mm/second for more than 5% of the total number of blasts carried out on within these limits during the audit the premises within the 12 months annual reporting period; and b) exceed 10mm/second at any time at any residence or noise sensitive location (such as a school or hospital) that is not owned by the licensee or subject of a private agreement between the owner of the residence or noise sensitive location and the licensee as to an alternative ground vibration level. 4 - OPERATING CONDITIONS O1 Activities must be carried out in a competent manner Licensed activities must be carried out in a competent manner. This includes: a) the processing, handling, movement and storage of materials and substances used to carry out the activity; and b) the treatment, storage, processing, reprocessing, transport and disposal of waste generated by the activity. During the site visit undertaken by the auditors, operations at Bengalla were observed to be undertaken in a competent manner. O1.1 EPL 6538 Page 3

118 Audit Protocol: EPL 6538 O2 Maintenance of plant and equipment All plant and equipment installed at the premises or used in connection with the licensed activity: a) must be maintained in a proper and efficient condition; and b) must be operated in a proper and efficient manner. O2.1 During the site visit the auditors viewed the maintenance planning system which Bengalla has in place to ensure that its plant and equipment undergo preventative maintenance, as well as maintenance when repairs are required. The auditors also viewed plant being repaired in the workshop as required. A noncompliance against this condition was reported to the EPA during the audit On 11 January 2012 the failure of a scour valve located on a water pipe resulted in an uncontrolled water discharge of 2.5 megalitres of mine affected water from that pipeline. The incident was reported to the EPA and DP&I on the same day, and the EPA was subsequently provided with a written report on the incident on 17 January Water samples were collected from discharged water at two locations. The results indicated that the potential for environmental harm to have been caused by the incident was negligible. The auditors note that the failed scour valve was identified by Bengalla's maintenance systems, resulting in the incident being quickly remediated. Not Compliant O3 Dust O3.1 The premises must be maintained in a condition which minimises or prevents the emission of dust from the premises. A small amount of fugitive dust was observed during the audit site inspection, with elevated dust levels observed in the pit. Lead Auditor noticed, on a day other than the day of the audit site visit, large amounts of dust leaving site at BCM. It should be noted that weather conditions on that day were particularly bad in the area causing neighbouring mines to have similar problems. The BCM management plans have acceptable control and mitigation measures however application of the management plan requirements requires a more aggressive approach. Not Compliant 5 - MONITORING AND RECORDING CONDITIONS M1 Monitoring records The results of any monitoring required to be conducted by this licence or a load M1.1 calculation protocol must be recorded and retained as set out in this condition. M1.2 M1.3 All records required to be kept by this licence must be: a) in a legible form, or in a form that can readily be reduced to a legible form; b) kept for at least 4 years after the monitoring or event to which they relate took place; and c) produced in a legible form to any authorised officer of the EPA who asks to see them. The following records must be kept in respect of any samples required to be collected for the purposes of this licence: a) the date(s) on which the sample was taken; b) the time(s) at which the sample was collected; c) the point at which the sample was taken; and d) the name of the person who collected the sample. During the site visit the auditors viewed these monitoring records and found them to be compliant with the requirements herein. During the site visit the auditors viewed Bengalla monitoring records dating back at least four years. During the site visit the auditors viewed copies of field monitoring sheets complying with these requirements. M2 Requirement to monitor concentration of pollutants discharged For each monitoring/discharge point or utilisation area specified below (by a point number), the licensee must monitor (by sampling and obtaining results by analysis) the concentration of each pollutant specified in Column 1. The licensee must use the M2.1 sampling method, units of measure, and sample at the frequency, specified opposite in the other columns: EPL 6538 Page 4

119 Audit Protocol: EPL 6538 M2.2 Air Monitoring Requirements During the site visit the auditors viewed field data sheets and reports confirming that these methodologies are used by reference to the standards set out in the Bengalla Mining Company Pty Limited Air Quality and Greenhouse Gas Management Plan (Bengalla, November 2011). During the audit period a non compliance against this condition was reported to the EPA. There was an inability to record a PM 10 sample from its monitor due to equipment failure. Water and/ or Land Monitoring Requirements During the site visit the auditors viewed field data sheets and reports confirming that these methodologies are used by reference to the standards set out in the Bengalla Mining Company Pty Limited Water Management Plan (Bengalla, September 2012). M2.3 M3 Testing methods - concentration limits Monitoring for the concentration of a pollutant emitted to the air required to be During the site visit the auditors viewed field data conducted by this licence must be done in accordance with: sheets and reports confirming that these a) any methodology which is required by or under the Act to be used for the testing of methodologies are used by reference to the the concentration of the pollutant; or standards set out in the Bengalla Mining b) if no such requirement is imposed by or under the Act, any methodology which a Company Pty Limited Water Management Plan condition of this licence requires to be used for that testing; or (Bengalla, September 2012) and the Bengalla c) if no such requirement is imposed by or under the Act or by a condition of this Mining Company Pty Limited Air Quality and licence, any methodology approved in writing by the EPA for the purposes of that Greenhouse Gas Management Plan (Bengalla, M3.1 testing prior to the testing taking place. November 2011). Note: The Protection of the Environment Operations (Clean Air) Regulation 2010 requires testing for certain purposes to be conducted in accordance with test methods contained in the publication "Approved Methods for the Sampling and Analysis of Air Pollutants in NSW". M3.2 Subject to any express provision to the contrary in this licence, monitoring for the concentration of a pollutant discharged to waters or applied to a utilisation area must be done in accordance with the Approved Methods Publication unless another method has been approved by the EPA in writing before any tests are conducted. M4 Weather monitoring For each monitoring point specified in the table below, the licensee must monitor (by sampling obtaining results by analysis) the parameters specified in Column 1. The licensee must use the sampling method, units of measure, averaging period and sample at the frequency, specified opposite in the other columns: During the site visit the auditors viewed correspondence from the consultant who established and maintains this monitoring network, confirming that it complies with these sampling methods. M4.1 POINT W1 EPL 6538 Page 5

120 Audit Protocol: EPL 6538 M5 Recording of pollution complaints M5.1 The licensee must keep a legible record of all complaints made to the licensee or any employee or agent of the licensee in relation to pollution arising from any activity to which this licence applies. The auditors viewed copies of complaints records at Bengalla. M5.2 The record must include details of the following: a) the date and time of the complaint; b) the method by which the complaint was made; c) any personal details of the complainant which were provided by the complainant or, if no such details were provided, a note to that effect; d) the nature of the complaint; e) the action taken by the licensee in relation to the complaint, including any followup contact with the complainant; and f) if no action was taken by the licensee, the reasons why no action was taken. During the site visit the auditors viewed copies of complaints records maintained at Bengalla, and confirmed that all of these criteria are recorded. M5.3 M5.4 The record of a complaint must be kept for at least 4 years after the complaint was made. The record must be produced to any authorised officer of the EPA who asks to see them. During the site visit the auditors viewed copies of complaints records at Bengalla going back to at least The EPA is currently investigation an allegation that Bengalla has caused offensive odour caused by the fume of one blast during the audit However, this allegation has not been made out. There is currently nothing else to suggest that Bengalla has caused any offensive odours during the audit Bengalla continues to cooperate with the EPA during this investigation, which has included providing the EPA with information about any relevant complaints. M6 Telephone complaints line The licensee must operate during its operating hours a telephone complaints line for the purpose of receiving any complaints from members of the public in relation to activities conducted at the premises or by the vehicle or mobile plant, unless M6.1 otherwise specified in the licence. This 24 telephone line continues to be maintained. It is advertised on the Bengalla website, in local newspapers and also in the CCC newsletter and Coal and Allied newsletters. M6.2 The licensee must notify the public of the complaints line telephone number and the fact that it is a complaints line so that the impacted community knows how to make a complaint. This 24 telephone line continues to be maintained. It is advertised on the Bengalla website, in local newspapers and also in the CCC newsletter and Coal and Allied newsletters. M6.3 The preceding two conditions do not apply until 3 months after: a) the date of the issue of this licence or b) if this licence is a replacement licence within the meaning of the Protection of the Environment Operations (Savings and Transitional) Regulation 1998, the date on which a copy of the licence was served on the licensee under clause 10 of that regulation. M7 Requirement to monitor volume or mass For each discharge point or utilisation area specified below, the licensee must monitor: a) the volume of liquids discharged to water or applied to the area; b) the mass of solids applied to the area; c) the mass of pollutants emitted to the air; at the frequency and using the method and units of measure, specified below. M7.1 During the site visit the auditors viewed the calibration certificate for the flow meter dated 30 January 2013 and undertaken by ABB. During the audit period a non compliance against this condition (previously numbered M6.1) was reported to the EPA, when continuous monitoring equipment ceased to operate during a discharge event. Not Compliant EPL 6538 Page 6

121 Audit Protocol: EPL 6538 M8 Blasting The licensee must monitor all blasts carried out in or on the premises at or near the During the site visit the auditors viewed blasting nearest residence or noise sensitive location (such as a school or hospital) that is data which generally complies with these likely to be most affected by the blast and that is not owned by the licensee or subject requirements. During the audit period a non of a private agreement between the owner of the residence or noise sensitive location compliance against this condition was reported and the licensee relating to alternative blasting limits. to the EPA. On 10 September 2012 the St James School blast monitoring unit ceased to operate due to firmware failure. As a result, no data were retrievable. During the audit period another non compliance against this condition (previously numbered M7.1) was reported to the M8.1 EPA, when a blasting event was not monitored at the nearest sensitive receiver. The reporting noted that the blast event details and weather monitoring had been completed. However, overpressure and ground vibration for the blast were not recorded due to the process not being followed. As a result, relevant staff received retraining on the monitoring requirements. Not Compliant M9 Other monitoring and recording conditions HRSTS Monitoring The licensee must continuously operate and maintain communication equipment which makes the conductivity and flow measurements, taken at Point 1 available to the "Service provider" within one hour of those measurements being taken and M9.1 makes them available in the format specified in the "Hunter River Salinity Trading Scheme Discharge Point Site Equipment" as published by the Department of Land and Water Conservation on 7 May Interviews with Bengalla staff confirmed how checks are put in place to confirm that this communication equipment is running before discharges occur. During the site visit the auditors viewed copies of s sending on the results of tributary monitoring on 16 July M9.2 The licensee must ensure that the results of the measurements it takes at the tributary monitoring points are available to the regional water quality monitoring network operated by the service provider within 1 hour of its recording. During the site visit the auditors viewed copies of s sending on the results of tributary monitoring on 16 July The licensee must ensure that all monitoring data is within a margin of error of 5% for conductivity measurements and 10% for discharge flow measurement. During the site visit the auditors viewed the calibration records for this flow meter. M9.3 M9.4 The licensee must mark monitoring point(s) 1 & 2, with a sign which clearly indicates the name of the licensee, whether the monitoring point is up or down stream of the discharge point(s) and that it is a monitoring point for the Hunter River Salinity Trading Scheme. During the site visit the auditors viewed this signage. 6 - REPORTING CONDITIONS R1 Annual return documents R1.1 The licensee must complete and supply to the EPA an Annual Return in the approved form comprising: a) a Statement of Compliance; and b) a Monitoring and Complaints Summary. At the end of each reporting period, the EPA will provide to the licensee a copy of the form that must be completed and returned to the EPA. During the site visit the auditors viewed copies of annual returns for EPL 6538 complying with these requirements. R1.2 An Annual Return must be prepared in respect of each reporting period, except as provided below. Note: The term "reporting period" is defined in the dictionary at the end of this licence. Do not complete the Annual Return until after the end of the reporting During the site visit the auditors viewed copies of annual returns for EPL 6538 complying with these requirements. EPL 6538 Page 7

122 Audit Protocol: EPL 6538 Where this licence is transferred from the licensee to a new licensee: a) the transferring licensee must prepare an Annual Return for the period commencing on the first day of the reporting period and ending on the date the application for the transfer of the licence to the new licensee is granted; and b) the new licensee must prepare an Annual Return for the period commencing on R1.3 the date the application for the transfer of the licence is granted and ending on the last day of the reporting This has not occurred during the audit Note: An application to transfer a licence must be made in the approved form for this purpose. R1.4 R1.5 Where this licence is surrendered by the licensee or revoked by the EPA or Minister, This has not occurred during the audit the licensee must prepare an Annual Return in respect of the period commencing on the first day of the reporting period and ending on: a) in relation to the surrender of a licence - the date when notice in writing of approval of the surrender is given; or b) in relation to the revocation of the licence - the date from which notice revoking the licence operates. The Annual Return for the reporting period must be supplied to the EPA by registered post not later than 60 days after the end of each reporting period or in the case of a transferring licence not later than 60 days after the date the transfer was granted (the 'due date'). During the site visit the auditors viewed copies of annual returns for EPL 6538 complying with these requirements. R1.6 R1.7 R1.8 The licensee must retain a copy of the Annual Return supplied to the EPA for a period of at least 4 years after the Annual Return was due to be supplied to the EPA. Within the Annual Return, the Statement of Compliance must be certified and the Monitoring and Complaints Summary must be signed by: a) the licence holder; or b) by a person approved in writing by the EPA to sign on behalf of the licence holder. A person who has been given written approval to certify a certificate of compliance under a licence issued under the Pollution Control Act 1970 is taken to be approved for the purpose of this condition until the date of first review of this licence. During the site visit the auditors viewed copies of annual returns for EPL 6538 complying with these requirements. During the site visit the auditors viewed copies of annual returns for EPL 6538 complying with these requirements. R2 Notification of environmental harm Note: The licensee or its employees must notify all relevant authorities of incidents causing or threatening material harm to the environment immediately after the person becomes aware of the incident in accordance with the requirements of Part 5.7 of the Act. It is considered that no actual environmental harm incidents within the meaning of section 147 of the POEO Act actually occurred during the audit Some isolated environmental incidents/exceedances of approval criteria did occur. One of these events in particular was treated as potential environmental harm in the first instance. On 11 January 2012 the failure of a scour valve located on a water pipe resulted in an uncontrolled water discharge of 2.5 megalitres of mine affected water from that pipeline. The incident was reported to the EPA and DP&I on the same day, and the EPA was subsequently provided with a written report on the incident on 17 January Water samples were collected from discharged water at two locations. The results indicated that the potential for environmental harm to have been caused by the incident was negligible. This response indicates that Bengalla is in the position to be able to meet its reporting requirements under the POEO Act should such an incident occur. R2.1 Notifications must be made by telephoning the Environment Line service on EPL 6538 Page 8

123 Audit Protocol: EPL 6538 R2.2 The licensee must provide written details of the notification to the EPA within 7 days of the date on which the incident occurred. R3 Written report Where an authorised officer of the EPA suspects on reasonable grounds that: a) where this licence applies to premises, an event has occurred at the premises; or b) where this licence applies to vehicles or mobile plant, an event has occurred in connection with the carrying out of the activities authorised by this licence, and the event has caused, is causing or is likely to cause material harm to the R3.1 environment (whether the harm occurs on or off premises to which the licence applies), the authorised officer may request a written report of the event. The EPA is currently investigation an allegation that Bengalla has caused offensive odour caused by the fume of one blast during the audit However, this allegation has not been made out. There is currently nothing else to suggest that Bengalla has caused any offensive odours during the audit Bengalla has cooperated completely with the EPA during this investigation. R3.2 The licensee must make all reasonable inquiries in relation to the event and supply the report to the EPA within such time as may be specified in the request. The EPA is currently investigation an allegation that Bengalla has caused offensive odour caused by the fume of one blast during the audit However, this allegation has not been made out. There is currently nothing else to suggest that Bengalla has caused any offensive odours during the audit Bengalla has cooperated completely with the EPA during this investigation. R3.3 The request may require a report which includes any or all of the following information: a) the cause, time and duration of the event; b) the type, volume and concentration of every pollutant discharged as a result of the event; c) the name, address and business hours telephone number of employees or agents of the licensee, or a specified class of them, who witnessed the event; d) the name, address and business hours telephone number of every other person (of whom the licensee is aware) who witnessed the event, unless the licensee has been unable to obtain that information after making reasonable effort; e) action taken by the licensee in relation to the event, including any follow-up contact with any complainants; f) details of any measure taken or proposed to be taken to prevent or mitigate against a recurrence of such an event; and g) any other relevant matters. R3.4 The EPA may make a written request for further details in relation to any of the above matters if it is not satisfied with the report provided by the licensee. The licensee must provide such further details to the EPA within the time specified in the request. The EPA is currently investigation an allegation that Bengalla has caused offensive odour caused by the fume of one blast during the audit However, this allegation has not been made out. There is currently nothing else to suggest that Bengalla has caused any offensive odours during the audit Bengalla has cooperated completely with the EPA during this investigation. R4 Other reporting conditions HRSTS Reporting During the site visit the auditors viewed copies of The licensee must compile a written report of the activities under the Scheme for the HRSTS reports for 2012 and 2013, which each scheme year. The scheme year shall run from 1 July to 30 June each year. The were provided in August each year. During the written report must be submitted to the EPA s regional office within 60 days after the audit period a non compliance against this end of each scheme year and be in a form and manner approved by the EPA. The condition was reported to the EPA, when the information will be used by the EPA to compile an annual scheme report. HRSTS report for the period 1 July 2010 to 30 June 2011 was not provided to the EPA within 60 days. R4.1 Not Compliant EPL 6538 Page 9

124 Audit Protocol: EPL GENERAL CONDITIONS G1 - Copy of licence kept at the premises or plant A copy of this licence must be kept at the premises to which the licence applies. G1.1 G1.2 The licence must be produced to any authorised officer of the EPA who asks to see it. The licence must be available for inspection by any employee or agent of the licensee working at the premises. G POLLUTION STUDIES AND REDUCTION PROGRAMS U1 Saline dispersion investigation During the licensee s next discharge under the rules of the Hunter River Salinity Trading Scheme (the Scheme) the licensee must monitor salinity levels at least at the following location, provided it is safe to do so: - at the nearest downstream irrigation off-take point. As far as practicable it should be timed to coincide with the peak flow of discharge water. The results of this monitoring must be reported to the Regional Manager within 30 days of being collected. The report should detail the exact location, time U1.1 and method of monitoring. During the site visit the auditors viewed a copy of the EPL held onsite. During the site visit the auditors viewed a copy of the EPL held onsite. The 'next discharge' references in this condition actually occurred prior to the current audit U2.1 Note: - A handheld salinity probe is considered an adequate method of undertaking the monitoring. - This monitoring can be carried out in conjunction with other discharging participants in the Scheme. U2 Premises noise limits The licensee must conduct a noise assessment in accordance with the document, 'NSW Industrial Noise Policy ', (EPA 2000) for the operations and activities carried out at the licensed premises and submit a report to the Manager, Hunter Region, by no later than 28 February This licence condition was given the due date of 28 February 2013 when the licence was varied on 21 March 2013 (and so the EPA accidentally gave this requirement a retrospective due date). Bengalla continues its dialogue with the EPA about an appropriate timeframe for this assessment to be submitted. The report referred to in condition U2.1 must include, but is not limited to the following: This licence condition was given the due date of 28 February 2013 when the licence was varied on 21 March 2013 (and so the EPA accidentally gave this requirement a retrospective due date). Bengalla continues its dialogue with the EPA about an appropriate timeframe for this assessment to be submitted. 1. Project Specific Noise Levels for the nearest noise sensitive receiver location(s). The project specific noise levels may be sourced from recent documentation submitted in support of a project approval applications, or determined specifically in response to this condition, provided that: a) The source of the project specific noise levels are stated; b) The project specific noise levels have been derived in accordance with the NSW industrial Noise Policy (EPA 2000), ( INP ); c) Details are provided of how the project specific noise levels have been derived; and d) The nearest noise sensitive receiver locations chosen are representative of those potentially most affected by noise from the premises. EPL 6538 Page 10

125 Audit Protocol: EPL 6538 U Predicted or measured noise level contributions for the noise sensitive receiver locations identified in U3.2-1 above as a result of all activities and operations carried out at the premises. These may be sourced from recent documentation submitted in support of a project approval or determined specifically in response to this conditions provided that: a) The source of the predicted or measured noise level(s) are stated; b) Noise levels have been predicted or measured in accordance with the INP; and c) Details of how the noise levels have been predicted are provided. 3. Noise limits proposed for the location(s) identified in U2.2-1 above, derived with regard to the project specific noise levels and predicted noise level contributions from U2.2-1 and U2.2-2 above, that can be placed on the licence, for all activities and operations carried out at the premises. 4. Details of methods to be used to determine compliance with limits in U2.2-3 above. Note: (a) A reference to the INP includes a reference to INP Application Notes; and (b) Noise sensitive receiver locations do not include any locations owned by the licensee or another coal mine or where a negotiated agreement (as outlined in the INP) is in place between the landowner and any licence holder. U3 Particulate matter control best practice implementation - wheel generated The Licensee must achieve and maintain a dust control efficiency of 80% or more on all active haul roads by 22 March Control efficiency is calculated as: CE= ( ) ( ) x 100 ( ) This condition was added into the EPL licence without enough time for the condition to have been complied with by March The initial report was provided to the EPA in May 2013, and this was approved in August The initial reporting shows that the site is meeting this target. Where E = the emission rate of the activity U3.1 The Licensee must prepare a Monitoring Program to assess its compliance with Condition U3.1 under varying meteorological conditions. The Monitoring Program must detail the: parameters to be monitored; methods to be used to monitor each parameter; locations where each parameter will be monitored; frequency at which each parameter will be monitored; Key Performance Indicators that will be used to determine compliance with Condition U3.1; and A detailed justification for each Key Performance Indicator selected. During the site visit the auditors viewed this report, which was submitted to the EPA in May U3.2 As a guide, the EPA anticipates that the following parameters will be monitored: moisture and silt contents of haul roads; frequency, duration, rate and quantity of water applied to haul roads; frequency, duration, rate and quantity of suppressant applied to haul roads in comparison to manufacturer s specifications; vehicle kilometres travelled; haul truck weight; haul truck speed; and dust levels on haul roads. The Monitoring Program must be submitted by the Licensee to the Environment Protection Authority Regional Manager Hunter, at PO Box 488G, NEWCASTLE by 31 May The EPA intends to require the licensee to implement the Monitoring Program once it is approved by the EPA. EPL 6538 Page 11

126 Audit Protocol: EPL 6538 U3.3 The Licensee must submit a written report to the EPA providing the results of the Monitoring Program. The report must include an assessment of the dust control effectiveness, dust levels and the Licensee s compliance with Condition U3.1. The report must be submitted by the Licensee to the Environment Protection Authority Regional Manager Hunter, at PO Box 488G, NEWCASTLE by 15 August This has not occurred during the audit U4 Particulate matter control best practice implementation - disturbing and handling overburden under adverse weather conditions The licensee must alter or cease the use of equipment on overburden and the This condition was added into the EPL licence loading and dumping of overburden during adverse weather conditions to minimise without enough time for the condition to have the generation of particulate matter from 22 March been complied with by March The initial U4.1 report was provided to the EPA in May 2013, and this was approved in August 2013, with the current IEA conducted in early September The Licensee must prepare a Monitoring Program to assess its compliance with Condition U4.1. The Monitoring Program must detail the following: parameters to be monitored; methods to be used to monitor each parameter; locations where each parameter will be monitored; frequency at which each parameter will be monitored; way in which changes to operational activities will be documented; Key Performance Indicators that will be used to determine compliance with Condition U4.1; and detailed justification for each parameter and Key Performance Indicator selected. During the site visit the auditors viewed this report, which was submitted to the EPA in May U4.2 As a guide, the EPA anticipates that the following parameters will be monitored: wind speed and direction; temperature; rainfall/humidity; evaporation rate; solar radiation; operational activities; and dust levels. The Monitoring Program must be submitted by the Licensee to the Environment Protection Authority Regional Manager Hunter, at PO Box 488G, NEWCASTLE by 31 May The EPA intends to require the licensee to implement the Monitoring Program once it is approved by the EPA. U4.3 The Licensee must submit a written report to the EPA providing the results of the Monitoring Program. The report must detail the following: weather conditions during which activities were altered or ceased; changes made to operational activities as a result of adverse weather; and resultant dust levels when activities were altered or ceased. The report must be submitted by the Licensee to the Environment Protection Authority Regional Manager Hunter, at PO Box 488G, NEWCASTLE by 15 August This has not occurred during the audit U5 Particulate matter control best practice implementation - trial of best practice measures for disturbing and handling overburden The Licensee must submit a report documenting an investigation and trial of best practice measures for the control of particulate matter from the use of equipment on overburden and the loading and dumping of overburden. Best practice measures may include, but should not be limited to, the following: use of foggers; use of water sprays; and U5.1 reduction of drop heights. The report must document the investigation and trial of each best practice measure. It must quantify the particulate matter control effectiveness and discuss the practicability of each best practice measure. The report must be submitted by the Licensee to the Environment Protection Authority Regional Manager Hunter, at PO Box 488G, NEWCASTLE by 14 April SPECIAL CONDITIONS E1 - Hunter River Salinity Trading Scheme This licence authorises the discharge of saline water into the Hunter River Catchment from an authorised discharge point (or points), in accordance with the Protection of the Environment Operations (Hunter River Salinity Trading Scheme) E1.1 Regulation EPL 6538 Page 12

127 Audit Protocol: EPL 6538 E1.2 For the purposes of Clauses 23 and 29 of the Protection of the Environment Operations (Hunter River Salinity Trading Scheme) Regulation 2002 the licensee must apply the conversion factor of 0.6. During the site visit the auditors viewed field data sheets showing this. EPL 6538 Page 13

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129 AECOM Independent Environmental Audit Appendix F Audit Protocol: Mining Tenements Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

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131 Audit Protocol: Mining Tenements Requirement MINING TENEMENTS ML 1450, ML 1469 and ML1592 Methods of Operation The lease holder shall extract as large a percentage of the coal in the subject area as is practicable, consistent with the provisions of the Coal Mines Regulation Act 1982 and the Regulations thereunder and shall comply with any direction given or which may be given in this regard by the Minister. Mining, Rehabilitation, Environmental Management Process (MREMP) Mining Operations Plan (MOP) Mining operations, including mining purposes, must be conducted in accordance with a Mining Operations Plan (the Plan) satisfactory to the Director-General. The Plan together with environmental conditions of the development consent and other approvals will form the basis for: (a) ongoing mining operations and environmental management, and (b) ongoing monitoring of the project Condition Evidence Audit Finding ML1450 (1) Under its conditions of consent, Bengalla is able to extract up to 10.7 Mtpa. This is reported in the AEMRs as being 6.7 Mt in 2010, 7 Mt in 2011 and 8.4 in The Bengalla Mine Operations Plan MOP (1 ML1450 January December 2015) (Bengalla) (2)(1); fulfils these requirements. This plan was ML1592 (2)(1) approved in December The Plan must be prepared in accordance with the Director-General's guidelines current at the time of lodgement. A Plan must be lodged with the Director General: (a) prior to the commencement of operations; (b) subsequently as appropriate prior to the expiry of any current Plan; and (c) in accordance with any direction issued by the Director-General ML1450 The Bengalla Mine Operations Plan MOP (1 (2)(2); January December 2015) (Bengalla) ML1592 (2)(2) fulfils these requirements. Mining operations at Bengalla during the reporting period were carried out generally in accordance with the MOP that was approved in January 2009 (as reported in section of ML1450 Bengalla Mining Company Pty Limited Annual (2)(3); Environmental Management Report 2010 ML1592 (2)(3) (Bengalla, March 2011)). The updated Bengalla Mine Operations Plan MOP (1 January December 2015) (Bengalla) was approved in December The Plan must present a schedule of proposed mine development for a period of up to 7 years and contain diagrams and documentation which identify: Section of the Bengalla Mine Operations Plan MOP (1 January December 2015) (Bengalla) fulfils these requirements. (a) areas proposed to be disturbed under the Plan; Map 4 of the Bengalla Mine Operations Plan MOP (1 January December 2015) (Bengalla) fulfils these requirements. (b) mining and rehabilitation method(s) to be used and their sequence; Sections 5.0, 6.0, 7.0 and 8.0 of the Bengalla Mine Operations Plan MOP (1 January December 2015) (Bengalla) fulfil these requirements. (c) areas to be used for disposal of tailings/waste; Section 2.6 of the Bengalla Mine Operations Plan MOP (1 January December 2015) (Bengalla) fulfils these requirements. (d) existing and proposed surface infrastructure; Section 2.7 of the Bengalla Mine Operations Plan MOP (1 January December 2015) (Bengalla) fulfils these requirements. (e) Existing flora and fauna on site; ML1450 (4); ML1592 (4) Section of the Bengalla Mine Operations Plan MOP (1 January December 2015) (Bengalla) fulfils these requirements. (e) progressive rehabilitation schedules; Sections 5.0, 6.0, 7.0 and 8.0 of the Bengalla Mine Operations Plan MOP (1 January December 2015) (Bengalla) fulfil these requirements. (f) areas of particular environmental, ecological and cultural sensitivity and measures to protect these areas; Sections and of the Bengalla Mine Operations Plan MOP (1 January December 2015) (Bengalla) fulfil these requirements. (g) water management systems (including erosion and sediment controls); Sections 3.3.2, and of the Bengalla Mine Operations Plan MOP (1 January December 2015) (Bengalla) fulfil these requirements. Mining Tenements Page 1

132 Audit Protocol: Mining Tenements (h) proposed resource recovery; and Section of the Bengalla Mine Operations Plan MOP (1 January December 2015) (Bengalla) fulfils these requirements. (i) where the mined will cease extraction during the term of the Plan, a closure plan including final rehabilitation objectives/methods and post mining land use/vegetation. The Plan when lodged will be reviewed by the Department of Mineral Resources ML1450 (5); ML1592 (5) The Director-General may within 2 months of the lodgement of a Plan require modification and re-lodgement. ML1450 (6); ML1592 (6) If a requirement in accordance with Clause (6) is not issued within 2 months of the lodgement of a Plan, lease holder may proceed with implementation of the plan submitted subject to the lodgement of the required security deposit within the specified time. ML1450 (7); ML1592 (7) During the life of the MOP, proposed modifications to the plan must be lodged with the Director-General and will be subject to the review process outlined in (5)-(7) Annual Environmental Management Report (AEMR) Within 12 months of the commencement of mining operations and thereafter annually or, at such other times as may be allowed by the Director-General, the lease holder must lodge and Annual Environmental Management Report (AEMR) with the Director-General. ML1450 (8); ML1592 (8) ML1450 (3)(1); ML1592 (3)(1) The Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011), the Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012) and the Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) fulfil these requirements. The AEMR must be prepared in accordance with the Director-General's guidelines current at the time of reporting and contain a review and forecast of performance for the preceding and ensuing 12 months in terms of: (a) the accepted MOP; (b) DA requirements and conditions; (c) Environment Protection Authority, OEH and DoPI licences and approvals; (d) any other statutory environmental requirements; (e) details of any variations to environmental approvals applicable to the lease area; and (f) where relevant, progress towards final rehabilitation objectives. The Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011), the Bengalla Mining Company Pty Limited Annual ML1450 Environmental Management Report and (3)(2); Annual Review 2011 (Bengalla, March 2012) ML1592 (3)(2) and the Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) fulfil these requirements. An Environmental Rehabilitation Report must be submitted to the Department as follows: (i) the reports must be prepared according to Departmental Guidelines for environmental and rehabilitation reporting on exploration licences. (ii) The reports must be lodged within one month of expiry or earlier termination of AL (a); the licence or whenever part of the licence ceases to have effect. AL 13(27)(a) (ii) The reports must be prepared to the satisfaction of the Department and include information on all surface disturbing prospecting operations and rehabilitation carried out in the licence area or in the part of the licence that has ceased to have effect. They should include sufficient information to demonstrate that the requirements of Conditions 1 to 6 to 27 or those of them included in the licence have been satisfied. Bengalla Exploration Rehabilitation Notice provided to Auditors (Dated 15 August 2013). Evidence for the submission of AL13 reports provided to auditors. Meeting minutes (sighted) contain evidence that the department received the AL13 Rehabilitation Report, under section 4:exploration liabilities. Mining Tenements Page 2

133 Audit Protocol: Mining Tenements An Incident and Complaints Report must be submitted to the Department as follows: (i) The report is to be submitted within 24 hours of confirmation of any serious environmental incident, breach of Conditions 1 or 27 or those of them included in the licence or breach of other environmental regulations, or a serious complaint from landholders or the public. AL (b); (ii) The report must include the details of the exploration licence, contact details for AL 13(27)(b) the exploration manager, complainant and landholder, a map showing the area of concern, the nature of the incident or complaint, likely causes and consequences, and a timetable showing actions taken or planned to fix the problem. (iii) Details of all incidents or complaints occurring whilst the licence is in force must be included in reports prepared in accordance with Condition 28(e). Additional environmental reports may be required on specific surface disturbing operations or environmental incidents from time to time as directed in writing by the Department and must be lodged as instructed. AL (c); AL 13(27)(c) After considering an AEMR the Director-General may, by notice in writing, direct the lease holder to undertake operations, remedial actions or supplementary studies un the manner and within the period specified in the notice to ensure that operations on the lease area are conducted in accordance with sound mining and environmental practices. ML1450 (3)(3); ML1592 (3)(3) Such requests were received from DRE during the audit period, and were responded to as required. The lease holder shall, as and when directed by the Minister, co-operate with the Director-General, to conduct and facilitate review of the AEMR involving other government agencies and the local Council. ML1450 (3)(4); ML1592 (3)(4) Safety Operations must be carried out in a manner that ensures the safety of persons or stock in the vicinity of the operations. All drill holes shafts and excavations must be appropriately protected, to the satisfaction of the Director-General, to ensure that access to them by persons and stock is restricted. Abandoned shafts and excavations opened up or used by the lease holder must be filled in or otherwise rendered safe to a standard acceptable to the Director-General. ML ; AL (b) During the site visit the auditors viewed how all of these areas are bounded by roads, and that there are no stock in active areas. Operations must be carried out in a manner that ensures the safety of persons or stock in the vicinity of the operations. All drill holes shafts and excavations must be appropriately protected, to the satisfaction of the Director-General, to ensure that access to them by persons and stock is restricted. Abandoned shafts and excavations opened up or used by the lease holder must be filled in or otherwise rendered safe to a standard acceptable to the Director-General. AL (a); AL 13(34)(a) During the site visit, the auditors viewed copies of such reports as are provided to DRE, and confirmed that the reports cover off on these requirements for sealing drill holes. The measures put in place to control hazards must comply with the Mine Health and Safety Act 2004 and the Mine Health and Safety Regulation These measures include, but are not limited to, the development of a Safety Management Plan prepared according to the Departmental guidelines. AL (c); AL 13(34)(c) This is outside of the scope of the current IEA. The measures put in place to control hazards must comply with the Mine Health and Safety Act 2004 and the Mine Health and Safety Regulation These measures include, but are not limited to, the development of a Safety Management Plan prepared according to the Departmental guidelines. AL (d); AL 13(34)(b); AL 13(34)(d) This is outside of the scope of the current IEA. Rehabilitation / Management and Rehabilitation of Lands (General) The lease holder shall observe any instruction given or which may be given by the Minister with a view to minimising or preventing public inconvenience or damage to public or private property. ML1450 (5) Mining Tenements Page 3

134 Audit Protocol: Mining Tenements If required to do so by the Minister and within such time as my be stipulated by the Minister, the lease holder shall carry out to the satisfaction of the Minister surveys of structures, buildings and pipelines on adjacent landholdings to determine the effect of operations on any such structures, buildings and pipelines. ML1450 (6) The lease holder shall each year once operations have commenced, submit for the Minister's approval an AEMR relating to the operations of the lease holder on the subject area. ML1450 (7)(a) The Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011), the Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012) and the Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) fulfil these requirements. The date by which the report must be submitted will be determined by the Minister after consulting with the lease holder. The report shall comprise: ML1450 (7)(b) (i) a plan showing short, medium and long term mining plans; Plans are submitted to the department at the same time the AEMR is submitted. Plans are also submitted as required under the MOP guidelines. (ii) a rehabilitation report (in respect of open cut operations) and/or a surface environmental management report (in respect of underground operations); Section 5.0 of the Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011), section 5.0 of the Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012) and section 6.0 of the Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) fulfil these requirements. (iii) a review of performance in terms of Environmental Protection Authority and Department of Water Resources licence and approval conditions (related to the Clean Air Act 1961, the Clean Waters Act 1970, the Noise Control Act 1975, the Environmentally Hazardous Chemical Act 1985, the Pollution Control Act 1970 and the Water Act 1912) applicable to the subject area; ML1450 (7)(c) Section 3.0 of the Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011), section 3.0 of the Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012) and section 4.0 of the Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) fulfil these requirements. (iv) a review of performance in terms of Development Consent conditions for the subject area; Section 5.0 of the Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011), section 5.0 of the Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012) and section 6.0 of the Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) fulfil these requirements. Mining Tenements Page 4

135 Audit Protocol: Mining Tenements (v) a listing of any variations obtained to approvals applicable to the subject area during the previous year. Section 1.3 of the Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011), section 1.3 of the Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012) and section 2.3 of the Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) fulfil these requirements. The Minister may, by notice in writing, direct the lease holder to undertake any operations or remedial actions in such manner and within such period as may be specified in that notice, so as to ensure that operations on the subject area conform to the requirements of relevant statutory approvals or licences. ML1450 (7)(d) The lease holder shall conduct operations on the subject area in accordance with an "open cut application" approved by the Minister and any conditions contained in the Minister's approval of that application. Where the lease holder is of the opinion that the approved operations should be amended the lease holder shall submit an amendment for the Minister's approval. ML1450 (7)(e) If so directed by the Minister, the lease holder shall rehabilitate to the satisfaction of the Minister any lands within the subject area which may have been disturbed by the lease holder. ML1450 (8) Upon completion of operations on the surface of the subject area or upon the expiry or sooner determination of this authority or any renewal thereof, the lease holder shall remove from such surface such buildings, machinery, plant, equipment, constructions and works as may be directed by the Minister and such surface shall be rehabilitated and left in a clean, tidy and safe condition to the satisfaction of the Minister. ML1450 (9) If so directed by the Minister, the lease holder shall rehabilitate to the satisfaction of the Minister and within such time as may be allowed by the Minister any lands within the subject area which may have been disturbed by mining or prospecting operations whether such operations were or were not carried out by the lease holder. ML1450 (10) The lease holder shall take all reasonable precautions against causing outbreak of fire on the subject area. ML1450 (11) Bengalla maintains a fleet of water carts onsite and a fully equipped mobile fire-fighting unit with the capacity to respond to bushfires if required. Bengalla's general emergency response team is also onsite also. During 2011, one small grass fire occurred across 3.74 hectares of Bengalla land. The incident was managed by Bengalla, and the fire was extinguished promptly. One small fire also occurred in the CHPP work area in 2011 and was also managed by site personnel. Land disturbed must be rehabilitated to a stable and permanent form suitable for a subsequent land use acceptable to the Director-General and in accordance with the MOP so that: there is no adverse environmental effect outside the disturbed area and that the land is properly drained and protected from soil erosion; the state of the land is compatible with the surrounding land and land use requirements; the landforms, soils, hydrology and flora require no greater maintenance than that in the surrounding land; in cases where revegetation is required and native vegetation has been removed or damaged, the original species must be re-established with close reference to the flora survey included in the MOP. If the original vegetation was not native, any reestablished community must be appropriate to the area and at an acceptable density; the land does not pose a threat to public safety. ML1592 (13)(a); AL (a); AL 13(26)(c) This is managed as per thee Bengalla Mining Company Pty Limited Rehabilitation Management Plan (Bengalla, April 20130), which has been approved. Mining Tenements Page 5

136 Audit Protocol: Mining Tenements Any topsoil that is removed must be stored and maintained in a manner acceptable to the Director-General. ML1592 (13(b)); AL 438 (27)(b); AL 13(26)(b) Topsoil stockpiles were observed by the auditors during the site visit, and were generally found to comply with these requirements of Bengalla Mining Company Pty Limited Rehabilitation Management Plan (Bengalla, April 2013). On 17 December 2012 Bengalla sought an extension for the submission of this plan until 31 January 2013, which was granted by DP&I. Bengalla submitted the draft plan to DP&I and DRE on 31 January DRE, DP&I, the EPA and NoW have subsequently confirmed with Bengalla that they are satisfied with the plan. Any shafts, drill holes and excavations, that remain abandoned from previous mining or exploration, which are opened up or used by the licence holder must be filled in or otherwise rehabilitation to a standard acceptable to the Department AL (c); AL 13(26)(c) During the site visit, the auditors viewed copies of such reports as are provided to DRE, and confirmed that the reports cover off on these requirements for sealing drill holes. All rehabilitation of disturbed areas should be completed before the expiry of the licence or immediately following termination of the licence. Dumps AL (d); AL 13(26)(d) The lease holder shall comply with any direction, given or which may be given by the Inspector/Director-General regarding the dumping, depositing or removal of material extracted, as well as the stabilisation and revegetation of any dumps of coal, minerals, mine residues, tailings or overburden situated on the subject area or the associated colliery holdings. Blasting ML1450 (4); ML1592 (14) The lease holder shall monitor noise and vibration and institute controls, generally in accordance with the recommendations of Australian Standards AS and ANZEC guidelines. ML1450 (12) This is managed as per the Bengalla Mining Company Pty Limited Noise Management Plan (Bengalla, August 2013) Ground Vibration The lease holder shall design all blasts on the basis that the ground vibration peak particle velocity generated by any blasting within the subject area, shall not exceed the levels in or conditions of the EPA Licence for the mine, at any dwelling or occupied premises not owned by the lease holder, the holder of an authority under the Mining Act, Pacific Power, or any property referred to in Condition 21A of the development consent, or not subject to a valid agreement with the lease holder, with respect to the effects of blasting. Unless determined otherwise by the Department. ML1450 (12)(a); ML1592 (11)(a) During the site visit, auditors viewed blasting records showing that blasting was undertaken within these limits during the audit Blast Overpressure The lease holder shall design all blasts on the basis that the blast overpressure noise level generated by any blasting within the subject area, shall not exceed the levels in or conditions of the EPA Licence for the mine, at any dwelling or occupied premises not owned by the lease holder, the holder of an authority under the Mining Act, Pacific Power, or any property referred to in Condition 21A of the development consent, or not subject to a valid agreement with the lease holder, with respect to the effects of blasting. Unless determined otherwise by the Department. Soil Erosion / Pollution The lease holder shall conduct operations in such manner as not to cause or aggravate soil erosion and the lease holder shall observe and perform any instructions given or which may be given by the Minister with a view to minimising or preventing soil erosion. ML1450 (12)(b); ML1592 (11)(b) ML1450 (14) During the site visit, auditors viewed blasting records showing that blasting was undertaken within these limits during the audit Erosion at the site is managed as per the Bengalla Mining Company Pty Limited Water Management Plan (Bengalla, September 2012). A review of these requirements was undertaken by the auditors, and the site was generally found to be in compliance. Operations must be carried out in a manner that does not cause or aggravate air pollution, water pollution (including sedimentation), or soil contamination or erosion, unless otherwise authorised by a relevant approval, and in accordance with an accepted MOP. For the purpose of this condition, water shall be taken to include any watercourse, waterbody or groundwaters. The lease holder must observe and perform any instructions given by the Director-General in this regard. ML1592 (16) Apart from a few isolated environmental incidents (which were appropriately dealt with), no such pollution has occurred during the audit Roads and Tracks Operations must not affect any road unless in accordance with an accepted MOP or with the prior written approval of the Director-General and subject to any conditions he may stipulate. ML1592([19)( a) Mining Tenements Page 6

137 Audit Protocol: Mining Tenements The lease holder shall pay to MSC, Department of Land and Water Conservation, the Chief Executive, RTA the cost incurred by such Council or Department or Chief Executive, of making good any damage caused by operations carried on by or under the authority of the lease holder to any road adjoining or traversing the surface or the expected surface, as the case may be of the subject area. PROVIDED HOWEVER that the amount to be paid by the lease holder as aforesaid shall be reduced by such sum of money if any as may be paid to the said Council, the Department of Conservation and Land Management or the Chief Executive, RTA as the case may be from the Mine Subsidence Compensation Fund constituted under the Mine Subsidence Compensation Act 1961, in settlement of a claim for compensation for the same damage. ML1450 (15); ML1592 (19)(b) In the event of operations being conducted on the surface of any road, track or firetrail traversing the subject area or in the event of such operations causing damage to or interference with any such road, track or firetrail the lease holder, at his own expense, shall if directed to do so by the Minister provide to the satisfaction of the Minister an alternate road, track or firetrail in a position required by the Minister and shall allow free and uninterrupted access along such alternate road, track or firetrail and, if required to do so by the Minister, the lease holder shall upon completion of operations rehabilitate the surface of the original road, track or firetrail to a condition satisfactory to the Minister. ML1592 (19)(c) Access tracks must be kept to a minimum and be positioned so that they do not cause any unnecessary damage to the land. Temporary access tracks must be ripped, topsoiled and revegetated as soon as possible after they are no longer required for mining operations. The design and construction of access tracks must be in accordance with specifications fixed by the Department of Natural Resources. ML1592 (20) This was observed by the auditors during the site visit. Transmission Lines, Communication Lines and Pipelines The lease holder shall as far as practicable, conduct operations so as to not interfere with or impair the stability or efficiency of any transmission line, communication line or pipeline traversing the surface of the subject area and shall comply with any direction given or which may be given by the Minister in this regard. ML1450 (18); ML1592 (17) During the audit period Bengalla has relocated its own power lines onsite. However there are no other public service utilities on the site that would be affected in this manner. Fences / Gates Activities on the lease must not interfere with or damage fences without the prior written approval of the owner thereof or the Minister and subject to any condition the Minister may stipulate ML1592 (18)(a) Interviews with Bengalla staff and the site inspection conducted by the auditors confirmed that the site continues to be operated in this manner. Gates within the lease area must be closed or left open in accordance with the requirements of the landholder. Trees (Planting and Protection of) Flora and Fauna and Arboreal Screens ML1592 (18)(b) Interviews with Bengalla staff confirmed that contracted site security checks these gates each night. If so directed by the Minister, the lease holder shall ensure that operations are carried out in such manner so as to minimise disturbance to flora and fauna within the subject area. ML1450 (13) Trees and Timber The lease holder must not fell trees, strip bark or cut timber on the lease without the consent of the landholder who is entitled to the use of the timber, or if such a landholder refuses consent or attaches unreasonable conditions to the consent, without the approval of a warden ML1592 (21)(a) Bengalla owns these lands, and such consent has therefore not been required during the audit The lease holder must not curt, destroy, ringbark or remove any timber or other vegetative cover on the lease area except such as directly obstructs or prevents the carrying on of operation. Any clearing not authorised under the Mining Act 1992 must comply with the provisions of the Native Vegetation Act ML1592 (21)(b) A review of these activities was conducted by the auditors during the site visit, and the procedure that Bengalla has in place were generally found to comply with requirements of the Native Vegetation Act The lease holder must obtain all necessary approvals or licences before using timber from any Crown Land within the lease area. ML1592 (21)(c) Mining Tenements Page 7

138 Audit Protocol: Mining Tenements Labour/Expenditure The lease holder shall during each year of the term of the authority: (a) ensure that at least 7 workers are efficiently employed on the subject area or; (b) expand on operations carried out in the course of prospecting or mining the subject area, an amount of not less than $122, The Minister may, at any time after a period of 2 years from the date on which this authority has effect or from the date on which the renewal of this authority has effect, increase or decrease the amount of expenditure or labour required. ML1450 (19) During the site visit the auditors viewed budgetary documentation confirming that Bengalla continues to meet these expenditure targets. Additional Information The lease holder shall if directed by the Minister and within such time as the Minister may stipulate furnish to the Minister: (a) information regarding the ownership of the land within the subject area; (b) information regarding the ownership of the coal within the subject area prior to 1st January 1882; (c) an indemnity in a form approved by the Minister, indemnifying the Crown and the Minister against any wrong payment effected as a result of incorrect information furnished by the lease holder; (d) information regarding the financial viability of the lease holder and operations within and associated with the subject area; and (e) information regarding shareholdings in the lease holder. ML1450 (20) Service of Notices / Notice to Landowners Within a period of three months from the date of this authority, or a period of three months from the date of service of the notice of renewal, or within such further time as the Director-General/Minister may allow, the lease holder shall serve on each owner and occupier of the private land and on each occupier of the Crown land held under a pastoral lease within the subject area a notice in writing indicating that this authority has been granted and renewed and whether the authority includes the surface. The notice shall be accompanied by an adequate plan and description of the subject area. ML1450 (21); ML1592 (1) Within a period of three months from the date of this authority, or a period of three months from the date of service of the notice of renewal, or within such further time as the Director-General/Minister may allow, the lease holder shall serve on each owner and occupier of the private land and on each occupier of the Crown land held under a pastoral lease within the subject area a notice in writing indicating that this authority has been granted and renewed and whether the authority includes the surface. The notice shall be accompanied by an adequate plan and description of the subject area. Inspectors / Control of Operations Where an Inspector/Environmental Officer of the Department is of the opinion that any condition of this authority relating to operations within the subject area, or any provision of the Mining Act 1992, relating to operations within the subject area, are not being complied with by the lease holder, the Inspector may serve on the lease holder a notice stating that and give particulars of the reason why, and may in such notice direct the lease holder: (i) to cease operations within the lease area in contravention of that condition or Act, and (ii) to carry out within the specified time works necessary to rectify or remedy the situation; until in the opinion of the Inspector/Environmental Officer the situation is rectified. ML1450 (22)(a); ML1592 (6)(a); AL ; AL 13(32)(a) The lease holder shall comply with the directions contained in any notice served pursuant to sub paragraph (a) of this condition. The Director General may confirm, vary or revoke any such direction. ML1450 (22)(b); ML1592 (6)(b); AL 13(32)(b) Mining Tenements Page 8

139 Audit Protocol: Mining Tenements A notice referred to in this condition may be served on the Mine Manager. ML1450 (22)(c); ML1592 (6(c) Indemnities The lease holder shall indemnify and keep indemnified the Crown from and against all actions suits and claims and demands of whatsoever nature and all cost charges and expenses which may be brought against the lease holder or which the lease holder may incur in respect of any accident or injury to any person or property which may arise out of the construction, maintenance or working of any workings now existing or to be made by the lease holder within the boundary of the subject area or in connection with any of the operations, notwithstanding that all other conditions of this authority shall in all respects have been observed by the lease holder or that any such accident or injury shall arise from any act or thing which the lease holder may be licensed or compelled to do hereunder. ML1450 (23); ML1592 (24) The lease holder shall save harmless the Crown from payment of compensation and from and against all claims, actions, suits or demands whatsoever in the event of any damage resulting from mining operations under or near the subject area. ML1450 (24) Prospecting (General) Where the lease holder desires to commence prospecting operations in the subject area, the lease holder shall notify the Director General in writing and shall comply with such additional conditions as the Minister may impose including any condition requiring the lodgement of an additional bond or other form of security for rehabilitation of the area affected by such operations. ML1450 (25)(a) During the site visit the auditors viewed examples of such correspondence with DRE regarding the commencement of drilling operations in Where the lease holder notifies the Director General pursuant to sub paragraph (a) of this condition, the lease holder shall furnish with that notification details of the type of prospecting methods that would be adopted and the extent and location of the area that would be affected by them. Security Deposit ML1450 (25)(b) The lease holder shall, within 2 months of being requested by the Director-General, lodge with the Minister the sum of (ten thousand dollars) $10, in accordance ML1450 with the Instructions for Manner of Lodgement of Security Deposits as security for the (26)(a) fulfilment of the obligations of the lease holder under this authority. During the site visit the auditors viewed examples of such correspondence with DRE regarding the commencement of drilling operations in During the site visit the auditors viewed correspondence showing that this security has been provided. In the event that the lease holder fails to fulfil any of his obligations under this authority the said sum may be applied at the discretion of the Minister towards the cost of fulfilling such obligations. For the purpose of this clause a lease holder shall ML1450 be deemed to have failed to fulfil its obligations under this authority, if it fails to (26)(a); comply with any condition or provision of this authority, any provision of the Act or ML1592 regulations made thereunder or any condition or direction imposed or given pursuant (26)(b) to a condition or provision of this authority or of any provision of the Act or regulations made thereunder. The Minister may at any time after the commencement of this authority or any renewal thereof, vary the amount of security required in accordance with this condition. ML1450 (26)(b) Where the amount of security has been increased pursuant to clause (b) thereof, the lease holder shall within 2 months of being requested by the Minister, lodge a security for the amount of security required, in which case the Minister shall refund or release to the lease holder the security previously lodged. ML1450 (26)(c) Mining Tenements Page 9

140 Audit Protocol: Mining Tenements A security in the sum of $10,000 must be given and maintained with the Minister by the licence holder for the purpose of ensuring the fulfilment by the licence holder of obligations under this licence. If the licence holder fails to fulfil any one or more of such obligations, the said sum may be applied at the discretion of the Minister towards the cost of fulfilling such obligations. AL 438 (29)(a); AL 13(28)(a) During the site visit the auditors viewed correspondence showing that this security has been provided. The licence holder must provide the security required by paragraph (a) in one of the following forms: (i) cash; or (ii) a security certificate in a form approved by the Minister and issued by an authorised deposit-taking institution. AL 438 (29)(b); AL 13(28)(b) Single Security (Extended) The single security given and maintained with the Minister by the lease holder for the purpose of ensuring the fulfilment by the lease holder of obligations under ML1397, ML1450 and ML1469 (Act 1992) is extended to apply to this lease. ML1592 (26)(a) Royalty at Additional Rate The lease holder shall during the term of this authority pay to the Minister royalty at additional rate as prescribed by the Regulations for coal recovered by open cut mining methods from the area of the lease. ML1450 (27) Additional Conditions Where practicable the lease holder shall, upon completion of mining, revegetate the area with tree species and understorey vegetation native to the district and preferably to that site, with seed collected from local stock. ML1450 (29) The lease holder shall pay Rail Access Corporation the cost of making good any damage caused by operations carried on, by or under the authority of the lease holder to any rail infrastructure of the subject area. ML1450 (30) The lease holder shall provide and maintain to the satisfaction of the Minister efficient means to prevent contamination, pollution, erosion or siltation of any river, stream, creek, tributary, lake, dam, reservoir, watercourse, groundwater or catchment area or any undue interference to fish or their environment and shall observe any instruction given or which may be given by the Minister with a view to preventing or minimising the contamination, pollution, erosion or siltation of any river, stream, creek, tributary, lake, dam, reservoir, watercourse, groundwater or catchment area or any undue interference to fish or their environment. ML1450 (31) The Bengalla Mining Company Pty Limited Water Management Plan (Bengalla, September 2012) fulfils these requirements. Section 1.3 of the plan details how it was first provided to DP&I on 29 February The finalised plan was subsequently approved by DP&I on 9 November Mining Tenements Page 10

141 Audit Protocol: Mining Tenements A Exploration Licence Conditions 2009 Section A APPROVAL OF PROSPECTING OPERATIONS 1 Prospecting Operations Permitted under the Licence The prospecting operations listed in Category 1 may be conducted on the licence area provided that: AL 438 (1); AL 13 (1) (a) the operation does not cause more than minimal impact on the environment, taking into account the sensitivity of the local environment to disturbance; While a small number of isolated environmental incidents have occurred during the audit period, no actual environmental harm incidences have taken place during the audit (b) the operations do not cause harm to any threatened species, populations or ecological community, or their habitats, including critical habitat; While a small number of isolated environmental incidents have occurred during the audit period, no actual environmental harm incidences have taken place during the audit (c) the operations do not cause damage to Aboriginal objects or Aboriginal places; No such damage has occurred during the audit (d) the operations do not cause damage to the values and features listed in Section 238 of the Act; No such damage has occurred during the audit (e) the requirements of Section 30 of the Act are met, if relevant, and; (f) the requirements of all state conservation, threatened species, environmental protection, heritage, and related legislation are met 2 Prospecting Operations Requiring Further Approval The auditors found the site to generally comply with these requirements. All prospecting operations not covered by Condition 1 required additional approval. Such operations comprise: (a) prospecting operations listed in Category 1 where the provisions listed under Condition 1 cannot be satisfied; (b) prospecting operations listed in Category 2 or 3; and (c) surface disturbing prospecting operations not listed in Categories 1, 2 or 3. All such prospecting operations require prior notification on a Surface Disturbance Notice from the Department. Approval by the Department requires assessment and determination under Part 5 of the EP&A Act AL 438 (2); AL In the case of prospecting operations listed in Category 3, a REF must be prepared and must accompany the Surface Disturbance Notice. In respect of prospecting operations not listed in Category 3, the Department, after consideration of the completed Surface Disturbance Notice form, will determine whether a REF must be prepared and notify the licence holder in writing. Any REF must be prepared i accordance with Department guidelines. If the impact of the prospecting operations on the environment is determined as likely to be significant in terms of Part 5 of the EP&A Act, then the Department will require the licence holder to submit an EIS. AL 438 (2); AL The licence holder must not commence the operations without prior written approval from the Department. AL 438 (2); AL Mining Tenements Page 11

142 Audit Protocol: Mining Tenements Section B SPECIAL AREA CONDITIONS 3 Exempted Areas The licence holder must not commence prospecting operations in an exempted area under the Act without obtaining prior written consent from the Minister. "Exempted Areas" under the Act are lands set aside for public purposes. They include travelling stock reserves, road reserves, water supply reserves, State Forests, and public reserves and permanent commons. Under section 30 of the Act the "exercise of rights" under an exploration licence is subject to the consent of the Minister. The "exercise of rights" includes the right to conduct prospecting operations. The Minister's consent requires assessment and determination under Part 5 of the EP&A Act. AL 438 (3); AL Section C ENVIRONMENTAL MANAGEMENT OF PROSPECTING OPERATIONS 10 Environmental Management Conditions Conditions attached to any consent or approval given pursuant to the Act or this licence are taken to be conditions of this licence and are enforceable under the Act as such. AL 438 (10(a)); AL 13 (9)(a) Without limiting the generality of paragraph (a) conditions attached to the following approvals and consents are taken to be conditions of this licence and are enforceable as such: (i) Approvals under conditions 2, 6, 9, 16(a), 17, 20(b) and 21(a) (if included in the licence); and (ii) Consents under conditions 3 and 4 (if included in the licence. AL 438 (10(b)); AL 13 (9)(b) For the purpose of Sections 125(3) and 374A(1) of the Act, Conditions 1 to 6 and 9 to 32 (if included in the licence) are identified as being related to environmental management. AL 438 (10(c)); AL 13 (9)(c) For the purposes of Division 3 of Part 11 of the Act, Conditions 1 to 6 and 9 to 28 (if included in the licence) are identified as being imposed under Division 2 of Part 11 of the Act, as well as being imposed under Section 26(1), 114(4) or 121(3) of the Act as the case may be. AL 438 (10(d)); AL 13 (9)(d) 11 Environmental Management - General Environmental management of operations must be carried out according to current best environmental practice* or, alternately, it must conform to a specific Environmental Management Plan prepared by the licence holder which is acceptable AL 438 to the Department. (11(a)); AL * As a guide see "Onshore Minerals and Petroleum Exploration" 1996 Commonwealth Department 13(10)(a) of Environment and heritage or "Guidelines for Environmentally Responsible Mineral Exploration in NSW" 1998 NSW Mineral Councils. Bengalla operates under its Environmental Management Strategy (Bengalla, January 2013). A review of this strategy was undertaken by the auditors, and the site was generally found to comply with these requirements. Approval of Category 3 prospecting operations may be subject to a requirement to prepare an Environmental Management Plan (EMP). When directed in writing by the AL 438 Department, the licence holder must prepare an EMP for the operation or for a (11)(b); AL specific aspect of the operation. The EMP must be prepared in a format and with 13(10)(b) content as specified and to a timetable specified by the Department 12 Aboriginal Cultural Heritage Prior to carrying out any prospecting operations the licence holder must consider potential impacts on Aboriginal Heritage according to the Guidelines for Aboriginal Heritage Impact Assessment in the Exploration and Mining Industries (NPWS October 1997). AL 438 (12)(a); AL 13(11)(a) Interviews with Bengalla staff confirmed that this is undertaken as per the site's Ground Disturbance Permit system. During the site visit the auditors viewed Bengalla's GIS system and confirmed that these records are maintained and easily available to ensure unintentional disturbance does not take place. Aboriginal Cultural Heritage issues must be satisfactorily addressed in any notification under Condition 2 of this licence. AL 438 (12)(b); AL 13(11)(b) Interviews with Bengalla staff confirmed that this is undertaken as per the site's Ground Disturbance Permit system. During the site visit the auditors viewed Bengalla's GIS system and confirmed that these records are maintained and easily available to ensure unintentional disturbance does not take place. Mining Tenements Page 12

143 Audit Protocol: Mining Tenements The licence holder must not knowingly destroy, deface or damage any Aboriginal object or Aboriginal place within the area except in accordance with a consent issued AL 438 under the NPW Act The licence holder must take all necessary precautions in (12)(c); AL drilling, excavating or disturbing the land against any such destruction, defacement 13(11)(c) or damage. 13 Threatened Species, Populations, Ecological Communities and their Habitats, and Critical Habitats. Prior to carrying out any prospecting operations the licence holder must consider potential impacts on threatened species (of plants, animals and fish), populations and ecological communities and their habitats, and critical habitat, and plan the activities to minimise any such impact. AL 438 (13(a)); AL 13 (12)(a) There are no records of such damage occurring during the audit This is managed as per the site's Ground Disturbance Permit system. Threatened species populations and ecological communities and their habitats, and critical habitat, must be satisfactorily addressed in any notification under Condition 2 of this licence. AL 438 (13(b)); AL 13(12)(b) The site's Ground Disturbance Permit application to DTIRIS fulfils this requirement. The licence holder must comply with legislation relating to threatened species, AL 438 populations and ecological communities and their habitats, and critical habitat. (13(c)); AL Should prospecting operations require a licence under the NPW Act or TSC Act then 13(12)(c) the licence holder must obtain such licence. This is managed as per the Bengalla Mining Company Pty Limited Rehabilitation Management Plan (Bengalla, April 2013), and the site's Ground Disturbance Permit system 14 Heritage Items Prior to carrying out any prospecting operations the licence holder must consider potential impacts on items of heritage significance including old mine relics and workings. The licence holder must take all necessary precautions in drilling, excavating or disturbing the land against causing any damage to or destruction of items of heritage significance. AL 438 (14)(a); AL 13(13)(a) During the site visit the auditors viewed Bengalla's GIS system and confirmed that these records are maintained and easily available to ensure unintentional disturbance does not take place. Heritage items must be satisfactorily addressed in any notification under Condition 2 of this licence AL 438 (14)(b); AL 13(13)(b) The site's Ground Disturbance Permit application to DTIRIS fulfils this requirement. The licence holder must not disturbed any items of heritage significance within the area except in accordance with an approval issued under the Heritage Act AL 438 (14)(c); AL 13(13)(c) There are no records of such disturbance occurring during the audit 15 Trees and Vegetation The lease holder must not fell trees, strip bark or cut timber on the lease without the consent of the landholder who is entitled to the use of the timber, or if such a landholder refuses consent or attaches unreasonable conditions to the consent, without the approval of the Mining Warden AL 438 (15)(a); AL 13(14)(a) Bengalla owns these lands, and such consent has therefore not been required during the audit The lease holder must not curt, destroy, ringbark or remove any timber or other vegetative cover on any land the subject of this licence other than in accordance with the conditions of this licence and any approval granted thereunder. Any clearing not authorised under the Mining Act 1992 must comply with the provisions of the Native Vegetation Act AL 438 (15)(b); AL 13(14)(b) A review of these activities was conducted by the auditors during the site visit, and the procedure that Bengalla has in place were generally found to comply with requirements of the Native Vegetation Act The lease holder must obtain any necessary licence from the Department's State Forest Division before using timber from any Crown Land within the licence area. AL 438 (15)(c); AL 13(14)(c) 16 Roads and Tracks Operations must not affect the public's normal use of any road or track unless with the prior written approval of the Department. AL 438 (16)(a); AL 13(15)(a) Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that the site continues to be operated in this manner. Operations must not affect the availability of existing roads on any lands for use for fire fighting. AL 438 (16)(b); AL 13(15)(b) Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that the site continues to be operated in this manner. The licence holder must pay to the designated authority in control of the road or track (generally the local council or the RTA) the reasonable costs incurred by the designated authority in fixing any damage to roads caused by operations carried out under the licence. AL 438 (16)(c); AL 13(15)(c) Mining Tenements Page 13

144 Audit Protocol: Mining Tenements During wet weather the use of any road or track must be restricted so as to prevent damage to the road or track. AL 438 (16)(d); AL 13(15)(d) Interviews with Bengalla staff confirmed that the site continues to be operated in this manner. Existing access racks should be used for all operations where possible. New access racks must be kept to a minimum and be positioned so that they do not cause any unnecessary damage to the land, watercourse or vegetation. AL 438 (16)(e); AL 13(15)(e) Interviews with Bengalla staff confirmed that the site continues to be operated in this manner. The design, construction, repair and rehabilitation of constructed access tracks must be in accordance with specifications given in any REF required by Condition (2) or an EMP (Condition 11) which has been accepted by the Department. AL 438 (16)(f); AL 13(15)(f) Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that the site continues to be operated in this manner. As soon as possible after they are no longer required for prospecting operations, temporary access tracks must be rehabilitated and revegetated to the satisfaction of the Department. Rehabilitation activities undertaken in regard to this condition must be included in reports prepared in accordance with Condition 28(a) 17 Streams and Watercourses The licence holder must not interfere with the flow of water in any stream or watercourse without the prior written approval of the Department, and subject to any conditions that may be stipulated. 18 Erosion and Sediment Controls All operations must be planned and carried out in a manner that minimises erosion and controls sediment movement. The licence holder must observe and perform any instructions given by the Department in this regard. For operations requiring approval under Condition 2 the licence holder must document in any REF required a plan setting out the proposed methods for minimising erosion and controlling sediment movement. The procedures taken to minimise erosion and control of sediment movement must be included in reports prepared in accordance with Condition 28(a) 19 Prevention and Monitoring of Pollution All operations must be planned and carried out in a manner that does not cause or aggravate air pollution, water pollution (including sedimentation) or soil contamination. For the purpose of this condition, water shall be taken to include any watercourse, waterbody or groundwaters. The licence holder must observe and perform any instructions given by the Department in this regard. AL 438 (16)(g); AL 13(15)(g) AL 438 (16)(h); AL 13(15)(h); AL 1(26)(e) AL 438 (17); A: 13(16) AL 438 (18)(a); AL 13(17)(a) AL 438 (18)(b); AL 13(17)(b) AL 438 (18)(c); AL 13(17)(c) AL 438 (19)(a); AL 13(18)(a) Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that the site continues to be operated in this manner. Rehabilitation report provided to auditors - satisfies this requirement. This is managed as per the site's Ground Disturbance Permit system. Rehabilitation report provided to auditors - satisfies this requirement. While a small number of isolated environmental incidents have occurred during the audit period, no actual environmental harm incidences have taken place during the audit For operations requiring approval under Condition 2 the licence holder must document in any REF required the proposed methods for minimising air pollution, water pollution and soil contamination. AL 438 (19)(b); AL 13(18)(b) During the audit period, this has been undertaken in relation to the most recent Continuation of Bengalla Mine Environmental Impact Statement (Hansen Bailey Bengalla, September 2013). The licence holder must carry out environmental monitoring as directed by the Department to assess environmental performance in relation to prevention of pollution and rehabilitation of affected areas. AL 438 (19)(c); AL 13(18)(c) This is managed as per the Bengalla Mining Company Pty Limited - Environmental Management Program (Bengalla, August 2010) The procedures and results of monitoring of the activities undertaken to minimise air pollution, water pollution and soil contamination must be included in reports prepared in accordance with Condition 28(a) 20 Refuse, Chemicals, Fuels and Waste Materials The licence holder must maintain operations areas in a clean and tidy condition at all times All refuse and waste materials must be collected, segregated and deposited in properly constructed containers and removed to an approved landfill or buried in an approved manner at an approved location. AL 438 (19)(d); AL 13(18)(d) AL 438 (20)(a); AL 13(19)(a) AL 438 (20)(b); AL 13(19)(b) Rehabilitation report provided to auditors - satisfies this requirement. During the site visit the auditors noted the site to be generally maintained in a clean and tidy manner. Interviews with Bengalla staff and the site inspection conducted by the auditors confirmed that the site continues to be operated in this manner. Sanitation collection should be in accordance with the requirements of the local authority, or the licence holder must make such provisions for sanitation as may be directed by the department. AL 438 (20)(c); AL 13(19)(c) A sewerage system is located onsite. During the site visit the auditors viewed copies of the relevant consents from Muswellbrook Shire Council for the septic tanks. Mining Tenements Page 14

145 Audit Protocol: Mining Tenements Precautions must be taken to prevent spills and soil contamination. All chemicals, fuels and oils must be stored in sound containers and kept spill trays or in a bunded area. A supply of appropriate spill and dust prevention and oil absorbent materials must be maintained at drill sites. AL 438 (20)(d); AL 13(19)(d) This was observed by the auditors during the site visit. All drill cuttings and fluids must be contained in above-ground tanks or in-ground sumps. To prevent contamination of the groundwater or soils in ground, sumps must be plastic lined whenever plastic or non-biodegradable drilling fluids are used or when drilling into rock potentially containing high concentrations of toxic metals or metalloids. AL 438 (20)(e); AL 13(19)(e) This was observed by the auditors during the site visit. Any soil contaminated by chemicals, oils and fuel, or drilling mud or drill core containing toxic metals must be collected and remediated or disposed of in an approved manner, and the site rehabilitated with clean soil. AL 438 (20)(f); AL 13(19)(f) Interviews with Bengalla staff confirmed that the site continues to be operated in this manner. Activities undertaken in regard to this condition must be included in reports prepared in accordance with Condition 28(a) AL 438 (20)(g); AL 13(19)(g) Rehabilitation report provided to auditors - satisfies this requirement. 21 Transmission Lines, Communication Lines, Pipelines and Other Public Utilities Operations must not interfere with or impair the stability or efficiency of any transmission line, communication line, pipeline or any other public utility without the prior written approval of the Department and subject to any conditions that may be stipulated. AL 438 (21)(a); AL 13 (20)(a) During the audit period Bengalla has relocated its own power lines onsite. However there are no other public service utilities on the site that would be affected in this manner. If the operation in any way impacts on the utility the licence holder must inform the authority in control of the utility and provide sufficient information for the authority to assess the proposal or its impacts. The licence holder must pay costs for remediation or repair of damage to utilities caused by prospecting operations and associated activities. AL 438 (21)(b); AL 13(20)(b) 22 Public and Private Property The licence holder must observe any instructions given by the Department in connection with minimising or preventing public inconvenience or damage to public or private property. 23 Drilling AL 438 (22); AL 13(21) At least 28 days prior to the commencement of drilling operations other than Category 1 drilling the licence holder must notify the relevant Department of Water and Energy's regional hydrologist of the intention to drill holes together with information on the nature and location of the proposed holes. AL 438 (23)(a); AL 13(22)(a) During the site visit the auditors viewed examples of such correspondence with DRE regarding the commencement of drilling operations in If the licence holder drills exploratory drill holes he must satisfy the Department that during and after the activity: (i) all holes cores or otherwise are constructed and/or sealed to prevent the collapse of the surrounding surface; (ii) if any drill hole meets natural or noxious gases it is plugged or sealed to prevent their escape; (iii) if any drill hole meets an artesian or sub-artesian flow it is effectively sealed to prevent contamination or cross-contamination of aquifers, and is permanently sealed with cement plugs to prevent surface discharge of groundwater; (iv) potentially hazardous tools or logging equipment dropped in holes and unable to be recovered must be reported to the Regional Inspector of Mines and if directed to do so the licence holder must recover the equipment; (v) waters flowing from any drill holes must be managed and contained. Disposal of any such waters must be in accordance with the ANZECC 2000 "Australian and NZ Guidelines for Fresh and Marine Water Quality Guidelines" so as to meet the environmental values of the receiving climate; (vi) once any drill hole ceases to be used the land and its immediate vicinity is to be rehabilitated to its former condition; (vii) Activities undertaken in regard to this condition must be included in reports prepared in accordance with Condition 28(a) AL 438 (23)(b); AL 13(22)(b) During the site visit, the auditors viewed copies of such reports as are provided to DRE, and confirmed that the reports fulfil these requirements. Mining Tenements Page 15

146 Audit Protocol: Mining Tenements 24 Drilling (Additional for Group 8 and 9 Minerals) Before commencing drilling within the licence area, the licence holder must carry out an assessment of the risks of gas blowouts to the satisfaction of the Department. If this assessment indicates that there is potential for a gas blowout to occurring any particular drill hole, that drill hole is to be drilled using a drilling rig fitted with gas blowout prevention equipment according to the Schedule of Onshore Petroleum Exploration and Production Safety Requirements. AL 438 (24)(a); AL 13(23)(a) Interviews with Bengalla staff confirmed that this is included as part of pre-clearing risk assessments. The licence holder must support orally and forthwith to the Department all overpressure gas occurrences that occur during drilling. Written notification of the occurrence is to be given to the Inspector within 24hrof the occurrence. AL 438 (24)(b); AL 13(23)(b) The Department may direct the licence holder to undertake analyses and tests on AL 438 any or all coal seams intersected in drill holes which in the opinion of the Department (24)(c); AL are likely to be economically mineable. 13(23)(c) Once any drill hole ceases to be used the hole must be sealed, surveyed and marked in accordance with Departmental Guidelines for Borehole Sealing on Land: Coal Exploration. Alternatively, the hole must be sealed as instructed by the Department. AL 438 (24)(d); AL 13(23)(d) During the site visit, the auditors viewed copies of such reports as are provided to DRE, and confirmed that the reports cover off on these requirements for sealing drill holes. 26 Maintenance of Open Drill Holes Where the licence holder wishes to temporarily maintain a drill hole in an open condition for monitoring purposes, or where a landholder requests that a drill holes be left open for water supply purposes, the licence holder shall inform the Department an provide reasons for leaving the hole open. If leaving the drill hole open at the request of a landholder, the licence holder must produce a signed copy of a document transferring the responsibility of that drill hole and its licencing requirements to the landholder. All drill holes which are maintained in an open condition must be cased to prevent collapse and fitted with a removable cap to ensure the safety of persons and stock. AL 438 (26); AL 13(25) During the site visit the auditors viewed copies of such reports that have been provided to DRE where boreholes are maintained for piezometer monitoring. 32 Failure to Fulfil Obligations For the purposes of Condition 29, the licence holder shall be deemed to have failed to fulfil the obligations of this licence if the licence holder fails to comply with: (a) any condition or provision of the licence; (b) any condition of a consent or approval given pursuant to the Act or the licence; (c) any provision of the Act or regulations made thereunder; or (d) any direction or other instrument given by the Department pursuant to paragraphs (a)-(c) above. AL 438 (32); AL 13(31) Section D GENERAL CONDITIONS 34 Landholder Liaison Program (Group 9 Minerals) The licence holder must establish a Landholder Liaison Program, This program must have procedures for addressing all landholder inquiries or complaints. AL 438 (34); AL 13(44) The Bengalla CCC fulfils these requirements. Notification of the program is to be given to all landholders within the licence area and to the Department. AL 438 (34); AL 44 All of these lands are owned by Bengalla. Where the lease area may be used in future for open cut mining operations, the lease holder shall establish a strategy for the acquisition of property within the lease area. In this strategy, provision should be made for land purchases from any land owners who can demonstrate hardship as a result of the changes in tenure from exploration title to assessment lease and who have made bona fide efforts to sell during the tenure of the assessment lease. The lease holder must be prepared to purchase any such land at independently determined rural land values, where such hardship and bona fide efforts to sell are established and agreed between the parties. AL 13(44) This is managed as per Development Approval 211/93 (as modified). Mining Tenements Page 16

147 Audit Protocol: Mining Tenements 38 Core Samples (For Group 8 and 9 Minerals) Where a person obtains a core in the course of drilling any borehole, the core (except any material used for analysis) and any samples obtained there from shall be labelled and properly stored by the person on the completion of the borehole. AL 438 (38)(a) This storage of core samples was observed by the auditors during the site visit, and was generally found to be in compliance with these requirements. The licence holder must, if using non core drilling methods, retain representative cuttings of every three (3) metres of formation drilled, or change of formation and such samples must be at least 100 grams in weight, dried, bagged and securely labelled with depth limits. AL 438 (38)(b); AL 13(36)(b) This storage of core samples was observed by the auditors during the site visit, and was generally found to be in compliance with these requirements. Cores and samples labelled and stored as required under subsection (a) or (b) shall at all times be available for examination by the Manager Coal Advice of the Department. AL 438 (38)(c) This storage of core samples was observed by the auditors during the site visit, and was generally found to be in compliance with these requirements. Portions of cores or samples labelled and stored as required under subsection (a) or (b) may be taken by the Manager Coal Advice referred to in subsection (c) for the purpose of analysis or other examination. AL 438 (38)(d) This storage of core samples was observed by the auditors during the site visit, and was generally found to be in compliance with these requirements. Any information obtained by any person as the result of any action taken under subsection (c) shall not be made public without the consent of the person carrying out the drilling from which the cores or samples were obtained unless the Manager Coal Advice directs otherwise. If a person who has obtained cores or samples in the course of drilling any borehole proposes to dispose of the cores or samples: (i) the person shall advise the Manager Coal Advice in writing, and (ii) the Manager Coal Advice may take possession of the cores and samples within 28 days after being given that notice. AL 438 (38)(e) AL 438 (38)(f) This storage of core samples was observed by the auditors during the site visit, and was generally found to be in compliance with these requirements. This storage of core samples was observed by the auditors during the site visit, and was generally found to be in compliance with these requirements. This section does not apply to boreholes or sections of boreholes sunk in surface gravel or alluvial ground. AL 438 (38)(g) The lease holder must, if using diamond drilling methods where solid core is recovered, retain all cores in standard modular metal core boxes, the size specifications of which are obtainable from the Department's Core Library. Information on the drill hole and drilling depths shall be clearly and permanently indicated inside and outside each box. Core blocks or some other permanent marker shall be used to indicate the start of each box and record drilling depths. AL 13(36)(a) This storage of core samples was observed by the auditors during the site visit, and was generally found to be in compliance with these requirements. The lease holder must, if using diamond drilling methods where solid core is recovered, retain all cores in standard modular metal core boxes, the size specifications of which are obtainable from the Department's Core Library. Information on the drill hole and Drilling depths shall be clearly and permanently indicated inside and outside of each box. AL 13(36)(c) This storage of core samples was observed by the auditors during the site visit, and was generally found to be in compliance with these requirements. Section E EXPLORATION PERFORMANCE AND REPORTING CONDITIONS 41 Completion of Exploration Program The licence holder must satisfactorily complete the work program nominated in the application for this licence or for renewal of this licence. Any changes to the proposed program must be approved by the Department. AL 438 (41); AL 13(37) 42 Technical Management of Exploration Prospecting operations are to be conducted, or directly supervised, by the Technical Manager nominated in the application for this licence. The nominated technical manager must prepare or supervise and approve all exploration reports. Any changes to the Technical Manager must be approved by the Department. AL 438 (42); AL 13(38) There has been a change in this personnel during the audit During the site visit the auditors viewed correspondence indicating that this role change was approved. Mining Tenements Page 17

148 Audit Protocol: Mining Tenements 44 Exploration Reports (For Group 8 and 9 Minerals) The licence holder must lodge reports to the satisfaction of the Department detailing the operations conducted. The reports must comply with Departmental guidelines and be lodged, as specified in this condition, and include all maps, plans and data necessary to satisfactorily interpret and evaluate the reports. Approval by the Department is required if the holder wishes to lodge reports at times other than those specified. AL 438 (44) During the site visit the auditors viewed copies of these reports, and confirmed that they complied with these requirements. Summary Reports must be lodged within twenty eight (28) days after the expiry of each 6 months during the currency of the licence and must contain: (i) a brief summary of prospecting operations carried out, including expenditure thereon, during the 6 month period; and (ii) the results and conclusions of all surveys and other operations; and (iii) the proposed exploration to be conducted during the following 6 month AL 438 (44)(a) Application for Renewal Report must accompany any application for renewal of the licence and contain a comprehensive report of: (i) prospecting operations carried out, including expenditure thereon, during the current term of the licence; and (ii) the results of prospecting operations and the conclusions reached as to the coal resources potential of the licence area. AL 438 (44)(b) Airborne Geophysical Survey Results must be lodged within 6 calendar months of the completion of any airborne geophysical survey. The results must be in digital form and comply with Departmental Guidelines for the Submission of Digital Coal and Petroleum Exploration Data. AL 438 (44)(c) A Final Report must be lodged on the expiry or earlier termination of the licence and must contain: (i) details of all surveys and other operations (including details of the expenditure incurred) carried out by or on behalf of the licence holder during the full term of the licence from grant to termination; and (ii) the results of the surveys and operations and the conclusions reached by the licence holder as to the coal resources potential of the licence area; and (iii) if detailed data has been included in previous reports the Final Report may consist of a summary of all work conducted, and the main results and conclusions of each phase of operations. AL 438 (44)(d); AL 13(40)(g) Additional Reports on surveys and other operations may be required from time to time and must be lodged as instructed. 40 Reports for Coal AL 438 (44)(e) Within fourteen (14) days after the expiration of one (1) year from the date of this lease, and within fourteen (14) days after the expiration of each year thereafter, the lease holder must lodge with the Department a summary report to the satisfaction of the Minister containing full particulars of: AL 13(40)(a) (a) exploration activities and expenditure thereon, (b) any studies carried out, (c) any project planning carried out, and (d) any economic feasibility assessments. AL 13(14)(b) The lease holder must forward to the Department, upon the expiry or earlier termination of the lease, a comprehensive report to the satisfaction of the Minister containing full particulars of: (a) exploration activities and expenditure thereon, (b) any studies carried out, (c) any project planning carried out, (d) any economic or feasibility assessments AL 13(40)(c) The lease holder must forward to the Minister such further reports as the Minister may from time to tome require. AL 13(40)(d) Mining Tenements Page 18

149 Audit Protocol: Mining Tenements Within 6 months of the completion of any airborne geophysical survey the results must be supplied in a digital form and comply with the Department's Guidelines for the submission of Digital Exploration Data. AL 13(40)(e) The lease holder must forward with all exploration reports all maps, plans and data as are necessary to satisfactorily interpret and evaluate the report. Every report must also be accompanied by a detailed lithological log of every hole drilled by the lease holder together with the results of all down hole geophysics, analysis and tests. All information supplied in digital form is to be in accordance with the Departmental guidelines for the submission of digital data. 45 Confidentiality of Reports All exploration reports lodged in accordance with the conditions of this licence will be kept confidential while the licence is in force, except in cases where: (i) the licence holder has agreed that specified reports may be made nonconfidential. (ii) reports deal with exploration conducted exclusively on areas that have ceased to be part of the licence. AL 13(40)(f) AL 438 (45)(a); AL 13(41)(a) Confidentiality will be continued beyond the termination of a licence where an application for a flow-on title was lodged during the currency of the licence. The confidentiality will last until that flow-on title or any subsequent flow-on title, has terminated. AL 438 (45)(b); AL 13(41)(b) Continued confidentiality is subject to the licence holder lodging a report that covers all exploration conducted on the areas not covered by the flow-on title. This report will be made public. AL 438 (45)(c); AL 13(41)(c) The Department may extend the period of confidentiality. 46 Licence to Use Reports The licence holder grants to the Minister, by way of a non-exclusive licence, the right in copyright to publish, print, adapt and reproduce all exploration reports lodged in any form and for the full duration of copyright. The non-exclusive licence will operate as consent for the purposes of section 365 of the Act. 47 Terms of the non-exclusive Licence The terms of the non-exclusive copyright licence granted under Condition 46(a) are: The Minister may sub-licence others to publish, print, adapt and reproduce but not on-licence reports. AL 438 (45)(d); AL 13(41)(d) AL 438 (46)(a); AL 13(42)(a) AL 438 (46)(b); AL 13(42)(b) AL 438 (47); AL 13(43) AL 438 (47)(a); AL 13(43)(a) The Minister and any sub-licensee will acknowledge the licence holder's and any identifiable consultant's ownership of copyright in any reproduction of the reports, including storage of reports onto an electronic database. AL 438 (47)(b); AL 13(43)(b) The licence holder does not warrant ownership of all copyright works in any report and, the licence holder will use best endeavours to identify those parts of the report for which the licence holder owns the copyright. AL 438 (47)(c); AL 13(43)(c) There is no royalty payable by the Minister for the licence. AL 438 (47)(d); AL 13(43)(d) If the licence holder has reasonable grounds to believe that the Minister has AL 438 exercised his rights under the non-exclusive copyright licence in a manner which (47)(e); AL adversely affects the operations of the licence holder, that licence is revocable on the 13(43)(e) giving of a period of not less than three months notice. Mining Tenements Page 19

150 Audit Protocol: Mining Tenements 48 Cooperation Agreement The licence holder must make every reasonably attempt, and be able to demonstrate their attempts, to enter into a cooperation agreement with the holder(s) of any overlapping petroleum title(s). The cooperation agreement should address but not be limited to issues such as: access arrangements operational interaction procedures dispute resolution information exchange Well Location Timing of drilling potential resource extraction conflicts and rehabilitation issues. AL 438 (48) 45 Refund Public Monies The lease holder shall refund the Department of Primary Industries the sum of $37,080 for the refund of public monies previously incurred by the Department's evaluation of the area. $37,080 is due within twenty-eight (28) days of the grant of this licence. Al 13(45) Mining Tenements Page 20

151 AECOM Independent Environmental Audit Appendix G Audit Protocol: Environmental Impact Statement for Bengalla Open Cut Mine (November, 1993) Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

152 AECOM Independent Environmental Audit g-1 Appendix G Audit Protocol: Environmental Impact Statement for Bengalla Open Cut Mine (November, 1993) Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

153 Audit Protocol: EIS 1993 Reference Requirement Evidence Audit Finding ENVIRONMENTAL MPACT STATEMENT FOR BENGALLA OPEN CUT COAL MINE (Nov 1993) SECTION 1: INTRODUCTION 1.1 The Proposal Consent is sought to a 21 year Mining Lease to authorise the mining of up to a total of approximately 147 million tonnes of run-of-mine (ROM) coal Consent is also sought to the construction and operation, for the 21 year period, of the coal washing, handling, preparation and loading facilities described. Mining is proposed generally by the methods and with plant and equipment of the type and capacity described in this Environmental Impact Statement 1.1 The proposed opencut mine will produce coal which will be washed on site for the export market. The washed coal will be transported by rail to ship loading facilities at the Port of Newcastle. The Bengalla site continues to be operated in this manner. 1.1 The mine design is based on a series of 60 m wide strips running approximately north-south, parallel to the strike. Mining will begin in the east with the excavation of a box cut aligned with the subcrop of the Edderton Seam, the stratigraphically lowest seam to be mined in the opencut. Mining will proceed westwards from the box cut in successive parallel strips. 1.1 The subcrop of the Edderton Seam lies west of the Overton Ridge in the eastern part of the Authorisation, so that the ridge will help shield the box cut and subsequent mining strips from sight when viewed from Muswellbrook. 1.1 The development of the mine behind Overton Ridge will also leave sufficient room for initial spoils and thus minimise the impact on the eastern face of the ridge and on the floodplain. 1.1 Overburden removal will principally be a dragline operation, with a shovel and fleet of trucks removing the prestrip overburden. Coal will be ripped by dozers or blasted where necessary, mined by front-end loaders and transported by truck to in-pit receival points thence to the on-site coal preparation plant by overland conveyor. Front-end loaders will be substituted by continuous surface miners if suitable commercial models of continuous surface miners are available. The Bengalla site continues to be operated in this manner. 1.1 The coal preparation plant located in the southwest corner of the project area will contain a modular dense medium washery This requirement has now been superseded. 1.1 Fine reject material (tailings) will be dewatered and buried with coarse reject in overburden dumps. The Bengalla site continues to be operated in this manner. 1.1 Run-of-mine and clean coal will be stockpiled adjacent to the washery. 1.1 Thermal coal will be the major product; semi-soft coking coal may also be produced. The Bengalla site continues to be operated in this manner. 1.1 Coal for export will be loaded into trains on a rail loop to be constructed branching off the Muswellbrook - Ulan Railway. This railway is located just south of the proposed washery and stockpile area, and joins the Main Northern Railway to Newcastle at Muswellbrook. If domestic markets arise in the future, the impact of transporting the coal to such markets will be addressed at the time. The Bengalla site continues to be operated in this manner. 1.1 As mining proceeds, spoils will be progressively recontoured, topdressed and seeded for pasture and trees. The Bengalla site continues to be operated in this manner. 1.1 The Joint Venture aims to acquire properties or reach agreement with landholders to permit mining within the proposed development area before the construction phase of the project commences in accordance with the Bengalla Joint Venture Land Ownership Policy. 1.1 The Joint Venture will establish Bengalla Agricultural Company Pty Limited to manage, for agricultural purposes, all land owned by the Joint Venture not required or used for mining related purposes 1.1 Both the proposed opencut mine and the surface facilities will cut Bengalla Road. Before mining begins, a new road will be constructed linking Denman Road and Wybong Road, with new bridges across the Hunter River and the Muswellbrook - Ulan Railway, to give access to the development site as well as to properties outside the Authorisation that are currently serviced by Bengalla Road EIS 1993 Page 1

154 Audit Protocol: EIS No stream or major transmission line diversions will be required. SECTION 4: PROJECT DESCRIPTION 4.1 Mining Plan Constraints to Opencut Mining The areal extent of the proposed opencut mine during the first 21 years of operation is shown in Figure 4.1. Authorisation 438 has an area of 19.2 km2; the proposed mining lease will occupy an area of km2. Mining will be carried out to within 40 m of Wybong Road, which will be temporarily closed when blasting takes place within 500 m of the road The lowest seam to be mined, the Edderton Seam, subcrops in the vicinity of Bengalla Road and dips away to the west. The underlying seams in this area will not be worked by opencut methods for economic and environmental reasons. The limit of excavation will be 200 m west of the northern part of Bengalla Road and will cross Bengalla Road to the west of Overdene. This requirement has now been superseded. The Bengalla site continues to be operated in this manner The eastern mining spoil pile limit will be designed to avoid Bengalla Homestead. The Bengalla site continues to be operated in this manner The coal reserves continue to the west of the limit of excavation, and beyond the edge of the Authorisation area. It is anticipated that these reserves will be mined by opencut methods in the future, subject to appropriate approvals Mining Plan and Schedule Mining will be carried out in a series of parallel strips 60 m wide, aligned approximately north-south along strike of the coal seams Mining will advance down dip from east to west at a rate of approximately 60 metres per year. The rate of advance in the first five years will be more than 60 metres per year because of shorter, shallower strips. Overburden from the initial strip will be placed on the surface, to the east of the limit of excavation. Overburden from subsequent strips will be used to backfill the previously mined strip. Spoil will be rehabilitated progressively as final contours are achieved Coal will be conveyed from receival points near the mining faces to the coal preparation plant Access to the base of the pit will be via the central ramp. Service roads will be constructed at the surface to provide access to the prestrip and dump areas. The service roads will be repositioned every five years to accommodate the advancing mine. The Bengalla site continues to be operated in this manner. The Bengalla site continues to be operated in this manner. The Bengalla site continues to be operated in this manner. The width of disturbed ground will be limited by restricting topsoil stripping to 120 m This is managed as per section 2.3 of the ahead of mining and maintaining recontouring and rehabilitation of spoils as close as Bengalla Mine Operations Plan MOP (1 180 m behind the active mining area. From Year 5 onwards, it is anticipated that the January December 2015) (Bengalla). width of the disturbed ground will be 1 km The project will require a two year lead-in period for construction of access roads, surface facilities, the coal preparation plant and the dragline. Following construction, the mine will build up to the designed production by the third year of operation End Use of Site It is planned to continue mining in a westerly direction to the Authorisation boundary over a period of approximately 60 years. Thus, the void which will exist at the end of years will be that required to allow full scale open pit mining to continue. Extensions to the proposed mine will be the subject of separate development applications in the future The Bengalla site continues to be operated in this manner. In the event that mining does not proceed beyond 21 years then options for using the final void would be: leaving open to enable mining to proceed at a later stage; utilising the void for the dumping of overburden from future mining operations in the local area; recontouring the void area and revegetating the disturbed area to provide a stable and safe surface area. 4.2 Mining Method Opencut Operations Mining operations will be carried out by dragline to remove the overburden, a shovel and fleet of trucks to prestrip in advance of the dragline and loaders or continuous miners to extract the coal. The Bengalla site continues to be operated in this manner. EIS 1993 Page 2

155 Audit Protocol: EIS 1993 Topsoil Stripping Topsoil will be stripped by scrapers or dozers, loaders and trucks, depending on equipment availability. Soil removed from the initial strips will be stockpiled to the east and west of the excavation and reseeded to maintain soil viability prior to use in future rehabilitation. The Bengalla site continues to be operated in this manner Topsoil stripped after year 2, when the out-of-pit spoil emplacement reaches final The Bengalla site continues to be operated in contours, wherever possible will be placed directly on recontoured spoil as part of the this manner. rehabilitation programme Topsoil stripping will take place up to 120 m ahead of the prestrip, to minimise the area of disturbance at any one time. This is managed as per section 2.3 of the Bengalla Mine Operations Plan MOP (1 January December 2015) (Bengalla) Overburden will be drilled and blasted to achieve the desired fragmentation for removal by shovel and dragline. Drilling of blast holes will be carried out by rotary The Bengalla site continues to be operated in drilling rigs, to a pattern designed to maximise fragmentation and minimise noise and this manner. vibration Blast holes will be charged by direct loading with ANFO. Where the boreholes are wet, heavy ANFO or emulsion will be used. The Bengalla site continues to be operated in this manner. Overburden Removal - Pre-strip In the first stage of overburden removal or prestripping, fragmented overburden will be removed by a shovel or a front-end loader and loaded onto rear dump trucks for haulage to a dump in the dragline spoils. Prestripping will generally be carried out down to the Piercefield Seam. The Bengalla site continues to be operated in this manner. Overburden Removal - Dragline Excavation of overburden below the prestrip level will be carried out by a walking dragline with a 57 m3 capacity bucket. The dragline will dig the fragmented overburden to expose the coal seam, casting the overburden into the void of the previous strip from which coal has been extracted. The Bengalla site continues to be operated in this manner The dragline will work from the central ramp. It will commence each strip on the floor of the Piercefield Seam, casting the spoil to the floor of the adjacent strip (the floor of the Edderton) and exposing the Vaux Seam for coaling. The Bengalla site continues to be operated in this manner After coaling the Vaux Seam, the dragline will carry out a similar operation to expose the Broonie and Bayswater seams, casting the spoil to the far side of the adjacent strip. After removal of this coal, the dragline will then move to the low wall side and create a working bench. The overburden to the Wynn Seam will be excavated from this position. After the Wynn Seam coal is mined, the dragline will repeat the rehandling and overburden removal operation from the low wall side to expose the Edderton Seam. The Bengalla site continues to be operated in this manner In the study of the quality of the overburden material, the interburden between the Bayswater and Wynn seams has been identified as being unsuitable for vegetation Mine geologists plan for a 10 m buffer between and should be covered by suitable spoil. The placement of prestrip overburden over reject material and final surface material. this material will ensure a minimum of 5 m of cover is maintained. In the initial strips it will be necessary to shape these spoils prior to the dumping of prestrip overburden. Surface Dump Development During excavation of the initial box cut, overburden will be placed on ground to the east of Strip 1 from which the topsoil has been stripped Approximately 200 m has been allowed between the eastern pit limit and the spoil limit for the surface placement of spoil. The final spoil surface will rise at a maximum gradient of 10 degrees from the spoil limit. To achieve this with minimum rehandling or recontouring, dragline spoil will be placed adjacent to the excavation and prestrip material will be used to infill between the spoil limit and the edge of the dragline spoil These slopes were viewed by the auditors during the site visit. Some slopes were observed to be above this 10% criterion. Technical Non Compliance EIS 1993 Page 3

156 Audit Protocol: EIS Some shaping of the initial spoils will be carried out to ensure any sodic material from the Bayswater-Wynn interburden is covered with at least 5 m of suitable overburden. Prestrip will be transported to this area by truck, allowing good control over the placement of the spoil and minimising the need for recontouring. This is managed at Bengalla through the Acid Mine Drainage and Mineral Waste Management Plan (March 2007). Procedures are in place to ensure this occurs. Mine geologists plan for a 10 m buffer between reject material and final surface material The spoil will be dozed to the final landform of a smooth 10 degree hillside sloping to the southeast as the spoil surface reaches the desired elevation. It will take approximately 2 years for the eastern margin of the surface spoil to achieve final contours. Revegetation of areas completed during this time will occur progressively. These slopes were viewed by the auditors during the site visit. Some slopes were observed to be above this 10% criterion. Technical Non Compliance Once the eastern margin of the spoil is complete, prestrip material will be placed between the rows of dragline spoil. As the mine progresses westwards, successive strips of spoil will be dozed to give smooth contours in preparation for revegetation. The Bengalla site continues to be operated in this manner. Coal Extraction The top of the exposed coal seam will be cleaned by dozers. The coal seam will be ripped or blasted to enable front-end loaders to productively load the coal into rear dump haul trucks. The Bengalla site continues to be operated in this manner The use of continuous surface miners for mining the coal and loading trucks has also been assessed. Currently available prototypes of these machines have been assessed and more development work is required prior to a model of sufficient capacity being commercially available for coal mining at Bengalla. Progress of the development of this technology will be monitored with a view to substituting continuous surface miners for frontend loaders, provided that they operate within the noise and dust emission levels used for the assessment of the impact of the mine Trucks will transport the coal from the mining face to one of two coal receival points. One receival point will be located down the eastern ramp and will handle coal from the Broonie, Bayswater, Wynn and Edderton seams. The other will be located on the southern side of the pre-stripping horizon (to the west of the dragline strip) and will handle coal from the Warkworth, Mt Arthur, Piercefield and Vaux seams. This requirement has now been superseded The coal from each receival point will be crushed by a feeder breaker to ensure satisfactory sizing prior to loading onto a conveyor for transport to the coal preparation plant. Receival points will be relocated during the mine life to limit the haul cycles of the trucks hauling coal Equipment The proposed mine fleet is listed in Table 4.2. The Bengalla site continues to be operated in this manner. The Bengalla site continues to be operated in this manner EIS 1993 Page 4

157 Audit Protocol: EIS Production Rate The ROM coal will be washed to produce approximately 6 Mtpa of saleable coal. Production during Years 1 and 2 will be lower as the mine becomes established. To achieve the designed production, up to 10 million, 15 million and 1 million bcm of prestrip, dragline and partings overburden respectively will be excavated per year. This is reported in the AEMRs as being 6.7 Mt in 2010, 7 Mt in 2011 and 8.4 in 2012 of ROM coal. 4.3 Coal Handling and Preparation Raw Coal Handling Coal from the opencut receival points will be transported by overland conveyors to the coal sizing plant adjacent to the ROM stockpile. All ROM coal will be reduced to 50mm prior to being placed on the ROM stockpile. The stockpiling system will allow placement of coal from different seams or plies to different portions of the ROM stockpile and allow a blended feed to be prepared for the washery. The Bengalla site continues to be operated in this manner. The Bengalla site continues to be operated in this manner Bypass conveyors will allow the sized coal to be fed directly to the product stockpiles. The Bengalla site continues to be operated in this manner All coal stockpiles will be located above the 1 in 100 year flood level, to ensure no coal is washed from the stockpiles into the Hunter River during a flood event. The Bengalla site continues to be operated in this manner Coal Preparation The ROM stockpile will be equipped with two stackers to allow stockpiling of coal from both surface conveyors at the same time. Two reclaimers will facilitate the selective recovery of ROM coal to be treated in the washery The ROM stockpile is designed to accommodate 200,000 t of ROM coal in two parallel stockpiles and the adjacent product stockpile will accommodate 500,000 t of product coal. The coal stockpiles will be serviced with perimeter water sprays to minimise dust generation and perimeter drains to prevent the release of sediment laden runoff. The conveyors will be covered with appropriately coloured wind shields to reduce dust emissions, particularly during westerly winds. The reclaimed raw coal from both stockpiles will be fed to a 600 t capacity surge bin from where it will be withdrawn at a controlled rate to the coal preparation plant. Raw coal of suitable quality can be diverted directly to the product handling system at a controlled rate of up to 1,100 tph. The Bengalla site continues to be operated in this manner. The Bengalla site continues to be operated in this manner. The Bengalla site continues to be operated in this manner. This requirement has now been superseded The preparation plant will be a three module unit. Each module has a nominal capacity of 400 tph and utilises dense medium cyclones to process the minus 50 to plus 1.0 mm coarse coal, spirals for the minus 1.0 to plus 0.2 mm fine coal and Jameson flotation cells for the minus 0.2 mm slimes fraction. This requirement has now been superseded The fine magnetite used as the dense medium in the coarse coal recovery process will be recovered for recycling from the coarse product and waste streams by a combination of rinsing, screening and magnetic separation. Thickeners will be used to partially dewater both the flotation product and tailings residue and to recover the water for re-use in the process. Coarse reject material will be dewatered over screens and conveyed to a 400 t capacity storage bin. Fine reject material will be dewatered by filter presses and the dried fines conveyed to the reject storage bin where they will mix with the coarse rejects for disposal. The washery building will be fully clad with appropriately coloured sheeting to minimise noise and dust emissions Clean Coal Handling The coarse product coal will be dewatered by centrifuges and the fine coal by band press filtration. These products, together with raw coal from the bypass system, will be combined on the plant product conveyor and fed to two parallel 250,000 t live capacity product coal stockpiles. Each of the two stockpiles will be serviced by a fully automatic stacker and portal scraper reclaimer. Compliance of this condition could not be verified at the time of the audit. The Bengalla site continues to be operated in this manner. This requirement has now been superseded. The Bengalla site continues to be operated in this manner. The Bengalla site continues to be operated in this manner. This requirement has now been superseded. The quality of the product and bypassed coal will be analysed by continuous on-line The Bengalla site continues to be operated in monitoring equipment before being placed on the stockpiles. A constant tonnage and this manner. quality inventory will automatically be maintained. Not Compliant Evidence Required EIS 1993 Page 5

158 Audit Protocol: EIS Different products, such as semi-soft coking coals and steaming coals will be stored in designated sections of the stockpile. The Bengalla site continues to be operated in this manner The ability will exist, via the stacker on the southern product stockpile, to store coal on a third emergency stockpile to the south of the product stockpile. This additional product storage may be required in the event of failure of the rail system transporting coal to Newcastle This requirement has now been superseded The emergency stockpile area will only be used when coal cannot be transported from the mine, and will be protected by drainage and dust control systems similar to the other active stockpile. The Bengalla site continues to be operated in this manner Coal will be reclaimed from the product stockpile by means of a 5,000 tph reclaim conveyor, which will load into the 1,750 t capacity loading bin on the rail loop. The coal will then be transported 137 km by rail to ship loading facilities at the Port of Newcastle for export mainly to Japan, Korea and Taiwan. The Bengalla site continues to be operated in this manner. 4.4 Reject Handling Coarse and Fine Reject Disposal The reject materials will be dewatered in the preparation plant. The coarse reject will be dewatered over screens to 10 per cent moisture. The fine reject will be dewatered with filter presses, to reduce the water content of the fines to 30 per cent. The dewatered coarse and fine rejects will be conveyed by overland conveyor to a 400 t capacity reject bin adjacent to the haul road where they will be loaded onto trucks and dumped with the prestrip material in between the dragline spoils. This requirement has now been superseded Spontaneous Combustion To minimise the potential for spontaneous combustion in the spoil dumps, the coal will be mined as cleanly as possible, minimising the amount of coal in the spoil. The Bengalla site continues to be operated in this manner Coal Transpiration The reject material, which will contain a higher concentration of carbonaceous material than the spoil, will be covered to a depth of at least 5 m with inert material to prevent the inflow of air and hence reduce the likelihood of spontaneous combustion. Coal will be transported by rail to the Port of Newcastle, for export. No coal will be transported by road. In the event of failure of the rail system, coal will be stockpiled within the Authorisation area If a domestic market were found, the coal would be transported overland by conveyor or by train to the power station. Such a conveyor would be the subject of a separate development application and environmental impact assessment Rail Loop Design The rail loop will be designed and constructed to State Rail Authority Class requirements. This currently requires trains of 91 wagons of 95 t capacity to be loaded within 2 hours. Trains can be expected to collect coal at any hour of the day, seven days a week, depending on State Rail Authority (SRA) scheduling requirements. The rail loop will therefore be equipped to facilitate night loading. This is managed at Bengalla through the Acid Mine Drainage and Mineral Waste Management Plan (March 2007). Procedures are in place to ensure this occurs. Mine geologists plan for a 10 m buffer between reject material and final surface material. The Bengalla site continues to be operated in this manner. The Bengalla site continues to be operated in this manner The entry to the loop will be located 7 km west of Muswellbrook on the Muswellbrook -The Bengalla site continues to be operated in Ulan Railway line. this manner Details of the rail loop and loading facility design will be submitted to SRA for approval prior to construction Train Loading A storage bin and product loading facility will be located on the western side of the loop. The 1,750 t capacity storage bin will be filled prior to train loading with the required product by a 5,000 tph conveyor from the product stockpile. A single train may take up to 8,645 t of coal, so the conveyor will continue to fill the storage bin as the train is being loaded. The product loading facility is designed to load a train within 2 hours as required by the SRA. This has since been superseded with updated site operations. EIS 1993 Page 6

159 Audit Protocol: EIS Surface Facilities Site Facilities The following buildings and structures will be located in the infrastructure area: Office, Bathhouse, Workshop, Stores, Truck Washing Facility, Coal Preparation Plant, ROM and Product Stockpiles, Rail Loop and Load Out Bin, Car Parks, Water Storage Dams, Hard Stand Area Site Development and Earthworks Site development will commence with construction of the road linking Denman Road and Wybong Road to provide access to the site Site Access Construction of the dragline is anticipated to take two years and construction of the coal preparation plant is anticipated to take 18 months, so these items will be started early in the construction The dragline will be erected on a prepared site to the north of Bengalla Road, approximately 700 m west of the box cut Earthworks for the mine facilities and site works such as dams, roads and drainage will start approximately nine months after construction of the access road and dragline commences. The development of the bathhouse, workshop, office and rail loop will begin approximately four months later. This was observed by the auditors during the site visit Access to the site will be from the new Denman Road - Wybong Road link. A single controlled gate access point will be the entry to both the coal preparation plant and the mine site. The site will be fenced to prevent unauthorised access to the mine. This was observed by the auditors during the site visit The access road will be a two-lane, 6 m wide bitumen surfaced road. The junction with the link road will be an AUSTROADS Type C intersection with minimum sight distances of 150 m, to ensure that additional intersection works are not necessary in the future. Within the site, a sealed road will provide access to the workshop and office complex from the main road. A service road from the office and workshop complex to the pit will run along the southern mining limit to the mine area. A service road to the pre-strip area will run north from this road and will be relocated to a new site westwards each 4 to 5 years. This will limit the area of disturbance at any stage. All service roads will be gravel surfaced and will be kept watered to minimise dust generation Power and Water Supply Separate new high voltage transmission lines will be required for an electrical supply system to provide power for the electric dragline, electric shovel, coal preparation plant, coal stockpiles and the office and workshop facilities. This was observed by the auditors during the site visit. This was observed by the auditors during the site visit. This was observed by the auditors during the site visit. The Bengalla site continues to be operated in this manner. This was observed by the auditors during the site visit The current power transmission line layout in the southern area will be adjusted to provide an uninterrupted power supply to other users in the area. The relocation of the low voltage powerlines and the development of the new high voltage supply will be undertaken in consultation with Shortland Electricity The closure and removal of Bengalla Road will interrupt the Telecom line along Bengalla Road. The line will be relocated along a route to be agreed with Telecom, to maintain the service to properties at the southern end of Bengalla Road and Denman Road and to provide a service to the new mine. Water for the coal preparation plant and for dust suppression will largely come from surface runoff and water make to the mining pit which will be retained in a series of dams of appropriate size. After prolonged dry periods and to maintain process water quality, additional make up water will be required. This will be extracted from the Hunter River and pumped to storage dams. The Bengalla site continues to be operated in this manner Water for use in the offices and bathhouse will be extracted from the Hunter River and treated on site. Drinking water will be supplied by tanker from Muswellbrook. The Bengalla site continues to be operated in this manner Licences will be requested from the Department of Water Resources for the supply of the water from the Hunter River. 4.7 Denman Road - Wbong Road Link The proposed mining area cuts across the central portion of Bengalla Road. Prior to mining, Bengalla Road will be closed and access to properties at the southern end of Bengalla Road and to the mine lease area will be provided by an alternative road. The Bengalla site continues to be operated in this manner. EIS 1993 Page 7

160 Audit Protocol: EIS The proposed new road will link Denman Road south of Balmoral Corner with Wybong Road at the western margin of the site. The new road will incorporate a bridge over the Hunter River and an overpass over the Muswellbrook - Ulan rail line The Link Road will be a two-lane undivided carriageway with a design speed of 80 km/h. A T junction (AUSTROADS Type C) is proposed for the Denman Road Link Road intersection and an AUSTROADS Type B intersection is proposed for the northern intersection with Wybong Road. The site access road junction will also be a Type C intersection The bridge over the Hunter River will be at 1 m above the 1 in 100 year flood level and designed to avoid any backing up of water during high flow periods in order not to increase the dangers of flooding in Muswellbrook. The detailed design of the bridge will be discussed with the Department of Water Resources prior to construction. The design of the road will be discussed with RTA, Department of Water Resources and Council prior to construction. 4.7 The link road will be a public road, maintained by Council. 4.8 Workforce Construction Phase The estimated workforce during the 2 year construction period will rise from 20 at the start of construction to a peak of 510 after 15 months. The majority of the construction workforce will be drawn from Hunter Valley based contractors who are familiar with and work regularly in the coal industry Operational Phase The anticipated workforce during mine operations is Mine Working Hours 4.9 The mine will operate 24 hours a day, 7 days a week. The dragline will work 7 days per week but the prestrip and coaling teams will generally only work from Monday to Friday. Routine maintenance will be undertaken at the weekend. The Bengalla site continues to be operated in this manner. 4.9 The coal preparation plant will operate 24 hours a day, 7 days a week, on a three shift system. The Bengalla site continues to be operated in this manner. 4.9 The coal loader on the rail loop will be ready to load trains at any time of the day or night, as required by the SRA. The Bengalla site continues to be operated in this manner. Lighting will be needed to allow operations to take place safely 24 hours a day in both the mine and the surface facilities area. The lighting will be designed to 4.9 maximise the workplace lighting levels but minimise the visibility of the lights from outside the site Markets 4.10 Bengalla Coal Sales Company Pty Limited will target the export market without precluding the domestic market. Coal transport arrangements will be reviewed if a domestic market is found Water Management Introduction The Bengalla site continues to be operated in this manner Rainfall runoff into the mining pit and groundwater make to the mine will be retained for use on-site, for dust suppression and in the coal preparation plant. The Bengalla site continues to be operated in this manner Water management controls will also cater for all requirements concerning potable water, non-potable water, domestic water and sediment control. The Bengalla site continues to be operated in this manner Water Use and Disposal Potable Water The potable water demands have been calculated to be approximately 1.4 ML/y. This demand for drinking water throughout the office and workshop complex will be met through water transported by truck from Muswellbrook. The Bengalla site continues to be operated in this manner. EIS 1993 Page 8

161 Audit Protocol: EIS 1993 Non-Potable Domestic Water Water will be pumped from the Hunter River under appropriate licence conditions to meet the mine demands for non-potable domestic water. The demands comprise employee washing, fire control, landscape irrigation and internal washdown. This water supply will be passed through a treatment plant to improve quality. The Bengalla site continues to be operated in this manner. Wastewater from the bathhouse will enter an effluent treatment pond and, after treatment in this fashion, will be directed via trickle irrigation onto landscaped or rehabilitated areas. Mine Water Pit water inflows will be pumped into a series of holding dams. Two 20 ML holding dams are located adjacent to the pit and a further six 20 ML holding dams will be used to water the coal stockpiles in the southwest corner of the site. The holding dams will provide storage for a number of re-use options The Bengalla site continues to be operated in this manner. This has since been superseded with updated site operations. The greatest re-use of water will be through the washery system which will create a constant demand, throughout the life of the operation. Water from the washery will be The Bengalla site continues to be operated in either taken offsite in the form of the added moisture content of product coal or this manner. incorporated into reject material. Some water from the washery will be recycled. Dewatered rejects will be disposed of in the dragline spoils The minewater dams will also provide the supply for coal stockpile sprays and other dust suppression demands, external washdown and truck washing. The Bengalla site continues to be operated in this manner Two 20 ML holding dams near the mining area will be fitted with pumps to enable filling of water tankers. This has since been superseded with updated site operations Machinery washdown will take place on a designated area with runoff directed via an oil and grease separator to return to the minewater dam. It is proposed that water balance shortfalls as a result of demands exceeding supply will be made up through pumping from the Hunter River. Sedimentation dams and contour banks will direct runoff from undisturbed areas away from the disturbed areas. Each of the contour banks has a 4 ML sedimentation dam at the toe of the bank which provides additional settlement of runoff prior to overflow into the natural gully. This was observed by the auditors during the site visit. The Bengalla site continues to be operated in this manner. Bengalla largely operates under a closed water system. HRSTS water is the only water discharged from the site. This system is managed onsite with bunds, catchment drains and sediment drains have bunds. At the staged discharge dam there is also a diversion dam. A comprehensive sediment control programme will be implemented which will allow Interviews with Bengalla staff and the site visit for the containment and treatment of stormwater flows for a design rainfall event of 1 conducted by the auditors confirmed that these in 10 years return period of one hour duration from all disturbed areas. The runoff will structures lie outside of that flooding level. At the be detained in sedimentation basins for a period of 1 hour during such an event, to staged discharge dam there is also a diversion remove suspended sediment of 0.1 mm diameter and greater. dam Holding dams have been designed to ensure that all contaminated water will be contained and re-used on site. A 10 ML sedimentation dam is located adjacent to each set of holding ponds. Contaminated water will only be released from the site when the design event is exceeded. HRSTS water is the only water discharged from the site. At the staged discharge dam there is also a diversion dam The coal preparation plant will be designed to use groundwater quality water input. Under normal rainfall conditions, these combined demands for water exceed Interviews with Bengalla staff and the site visit predicted groundwater inflow volumes. Therefore, operating purely on minewater, the conducted by the auditors confirmed that the site Bengalla project will create a significant deficit, ensuring no possibility of offsite continues to be operated in this manner. discharge of contaminated water. The water deficit will be supplemented by pumping from the Hunter River The Hunter River pumping system will be capable of supplying a volume of 90 KL/h to provide for maximum washery demands Extraction of water from the Hunter River will be carried out under Department of Water Resources Licence. The Bengalla site continues to be operated in this manner Rainfall runoff from undisturbed and rehabilitated areas with no potential to be contaminated by mine activities, will be diverted around the mine development and allowed to discharge to the Hunter River. Bengalla largely operates under a closed water system. HRSTS water is the only water discharged from the site. This system is managed onsite with bunds, catchment drains and sediment drains have bunds. EIS 1993 Page 9

162 Audit Protocol: EIS Rehabilitation Introduction Objectives Rehabilitation works will be closely integrated with mine production and will be undertaken progressively as mining proceeds. Disturbed land will be returned to a stable condition and, with the exception of some Class II land, to a land capability at least equal to that which existed prior to mining. Revegetation will result in the establishment of pasture cover with extensive tree covered areas. Interviews with Bengalla staff, a review of site records and the site inspection undertaken by the auditors confirmed that this rehabilitation program continues to be undertaken based on seasonal conditions and mining operations. This was observed by the auditors during the site visit Minimisation of erosion and reinstatement of pre-mining land capability are the primary objectives of the rehabilitation programme. Other objectives are: to generate a final rehabilitated landform which is consistent with general landforms in the area and which will blend unobtrusively with the natural topography; to provide a landform that is suitable for the primary final land use of grazing; to plan mining and overburden handling operations to minimise rehandling, reshaping and contouring; to minimise the amount of disturbed land awaiting rehabilitation; to provide for the safe and environmentally acceptable disposal of coarse washery rejects and tailings; wherever possible to utilise rehabilitation to achieve visual and acoustic barriers between the mine operations and outside areas. A review of rehabilitation works was undertaken by the auditors during the site visit, and was generally found to comply with these requirements Landuse Rehabilitated land will be returned to grazing as soon as possible General Rehabilitation Procedures Prior to disturbance, any suitable timber will be harvested for fenceposts or firewood. However, there is little standing timber and most trees are of little commercial value Trees removed for mining and not used for timber will be chipped and used for landscaping Shaping Spoil Dumps Spoil dumps will be progressively recontoured Topdressing Material This was observed by the auditors during the site visit. This was observed by the auditors during the site visit. This was observed by the auditors during the site visit. Suitable topsoil material will be stripped from areas to be disturbed. Most topdressing material will be derived from areas ahead of the advancing mine. The remainder will These stockpiled topsoils were observed by the be obtained from other sources of disturbance such as roads, stockpiles and other auditors during the site visit. infrastructure development sites. The recovery of all suitable topdressing material will be a prerequisite to any soil disturbance. Topdressing material will be removed from no further than two strip widths (120 m) ahead of the advancing mine. Strict control will be kept over the depth of stripping to ensure only suitable quality material is removed. Material will either be immediately respread onto recontoured areas, or stockpiled. This is managed as per section 2.3 of the Bengalla Mine Operations Plan MOP (1 January December 2015) (Bengalla) At commencement of mining, stockpiling will be necessary until suitable recontoured areas are available. As mining progresses, a direct correlation will exist between the area disturbed and the area topdressed and topsoil will be stripped and spread in one operation. Stockpiling will be avoided wherever possible. This was observed by the auditors during the site visit To minimise the reduction in soil viability, the following procedures will be adopted: topsoil will be stripped in a moist condition to prevent excessive brittle or plastic failures and thereby retaining the soil structure; stockpiles will not exceed 1.0 m depth; stockpiles will be seeded with preferred pasture species immediately after deposition. This will have numerous advantages including restricting the invasion of the weed Galenia secunda, encouraging soil microbial activity and reducing erosion of stockpiles. Topdressing stockpiles will be clearly marked and protected from disturbance prior to respreading. Following recontouring of spoil, topdressing material will be spread to a minimum depth of 100 mm; sufficient material is available for up to 200 mm of topdressing to be placed on most areas. One horizon with unfavourable chemical characteristics, the Archerfield-Bulga Formation, has been identified as being highly saline, sodic and having potential for acid formation due to the presence of pyrite. Overburden material from this horizon is therefore not suitable as a rooting medium and will be placed at a depth of at least 5m in the backfill, well away from the root systems of plants. This is managed as per the Bengalla Topsoil Stripping Procedure (January, 2012). This was observed by the auditors during the site visit. This was observed by the auditors during the site visit. This is managed at Bengalla through the Acid Mine Drainage and Mineral Waste Management Plan (March 2007). Procedures are in place to ensure this occurs. Mine geologists plan for a 10 m buffer between reject material and final surface material. EIS 1993 Page 10

163 Audit Protocol: EIS Site Preparation Revegetation Following topdressing, the surface will be either cultivated or ripped along the contour as a prerequisite for revegetation. Revegetation will immediately follow topdressing and site preparation and will include either pasture or tree establishment. These rehabilitation techniques were observed by the auditors during the site visit. Interviews with Bengalla staff, a review of site records and the site inspection undertaken by the auditors confirmed that this rehabilitation program continues to be undertaken based on seasonal conditions and mining operations. A revegetation strategy detailing the location of pasture and treed areas will be This has since been superseded with updated developed prior to disturbance. A strong emphasis will be placed on tree cover with a rehabilitation requirements. minimum of 25 per cent of the rehabilitated area being planted/sown to trees. The objective of all rehabilitation work will be to develop well designed agricultural/grazing land with a land capability at least equal to that existing prior to mining. Endemic tree species will be used and seed from remnant trees will be collected prior to tree destruction and either sown directly or propagated in a nearby nursery. Continuing close liaison with these government agencies will be maintained to ensure sowing, planting and fertiliser specifications are the best available. This identification of seed and habitat trees is not currently undertaken. However, the current clearing areas at Bengalla do not contain any such suitable trees. A review of the Ground Disturbance Permit system conducted by the auditors confirmed that these works would be undertaken in future as part of that GDP process. The Bengalla Mining Company Pty Limited Rehabilitation Management Plan (Bengalla, April 2013) fulfils these requirements Rehabilitation of Washery Rejects Washery rejects will be placed in the opencut void, with prestrip and dragline Interviews with Bengalla staff confirmed that the overburden, topdressed and rehabilitated. There will never be any need to separately site continues to be managed in this manner. rehabilitate washery rejects Extent of Disturbance Bare ground will be kept to a minimum. This will be achieved by minimising the area of vegetation stripped ahead of mining and by ensuring revegetation follows mining as closely as practicable This is managed as per section 2.3 of the Bengalla Mine Operations Plan MOP (1 January December 2015) (Bengalla). Interviews with Bengalla staff, a review of site records and the site inspection undertaken by the auditors confirmed that this rehabilitation program continues to be undertaken based on seasonal conditions and mining operations Other areas of temporary disturbance associated with infrastructure works will be revegetated immediately activity has ceased. interviews with Bengalla staff, a review of site records and the site inspection undertaken by the auditors confirmed that this rehabilitation program continues to be undertaken based on seasonal conditions and mining operations Progress of Rehabilitation Initial revegetation of mined areas will commence within the first 2 years. Within the initial 2 year period, prestrip material will be used to achieve approximate final levels on the eastern margin of the surface dump. Topdressing and revegetation will then remain two to three strip widths behind the active mining operation and will annually advance at approximately the same rate as the high wall This is managed as per section 2.3 of the Bengalla Mine Operations Plan MOP (1 January December 2015) (Bengalla). EIS 1993 Page 11

164 Audit Protocol: EIS Table 4.4 provides a guide to the approximate extent of rehabilitation at various stages in the mine's life, subject to approval of mining plans by DMR (Mines Inspectorate) Revegetation of the prominent eastern slope of the overburden emplacement will, with the exception of the ramp slopes, be completed to the maximum height after approximately 7 years The east to west ramp will remain open for the life of mining. Revegetation of the ramp batters will be trialled to determine the best method. A review of site documentation confirmed that these trials have been previously undertaken at the site Rehabilitated pasture areas will be stocked with cattle approximately 3 to 4 years after pasture establishment. All grazing will be closely monitored to avoid damage to rehabilitated areas All revegetated areas will receive routine maintenance applications of fertiliser in accordance with standard CALM specifications for mined areas. As part of the tracking process for site rehabilitation, data is recorded on fertiliser usage and application rates Weed Control A strategy to minimise weed invasion will form part of both the management of unmined pastoral land and the rehabilitation and management of mined areas. Included in the latter category are areas disturbed, but not mined e.g. infrastructure areas. This is managed as per the Weed Management Plan: Bengalla Mine (HLA Enviroscience, 16 May 2003) The following strategy will be employed: employ proven agricultural weed control techniques on unmined pastoral land. Land will not be allowed to lie derelict. When weeds occur, spraying and other management practices will be employed to kill weeds and prevent weeds from seeding and spreading; on mined land, revegetation will occur immediately after recontouring and topsoiling. Quick and effective establishment of dense pasture and/or tree cover will reduce opportunities for weed colonisation; the Environmental Officer will inspect all rehabilitated areas for weeds twice per year and, if required, will instigate weed control programmes. This is managed as per the Bengalla Mining Company Pty Limited Rehabilitation Management Plan (Bengalla, April 2013) and the Weed Management Plan: Bengalla Mine (HLA Enviroscience, 16 May 2003) The expert advice of the New South Wales Department of Agriculture will be sought prior to commencement of mining in regards to specific weed control details Leachate Generation Only a small proportion of the total spoil material is saline. This material from the Archerfield Bulga formation will be placed at depth within the overburden to prevent any inhibition of revegetation. Personal communication with Bengalla environment officer. The MOP details this process. The Aecherfield sandstone are Bengalla's only potentially saline material. They are very deep in the pit. This was part of our mining sequence and still happens. Auditors verified compliance during desktop review. EIS 1993 Page 12

165 Audit Protocol: EIS Environmental Monitoring 4.13 Regular environmental monitoring will be undertaken throughout the life of the mine, under the supervision of an Environmental Officer. The existing monitoring programmes will continue. These include: continuous monitoring of weather data on Overton Ridge; weekly monitoring of airborne dust concentrations; monthly monitoring of dust deposition rates; monthly monitoring of Hunter River water quality; monitoring of groundwater quality and levels. The auditors undertook a review of the Bengalla Mining Company Pty Limited - Environmental Management Program (Bengalla, August 2010), and these requirements were found to have generally been complied with The continued use of the same sampling points and sampling techniques will ensure that pre and post mining results are directly comparable. This is managed as per the Bengalla Mining Company Pty Limited - Environmental Management Program (Bengalla, August 2010), which was found to have generally been complied with during the audit 4.13 In addition, the progress of revegetation will be monitored on a half yearly basis and additional seed or fertiliser applications made as necessary. Monthly rehabilitation walkover inspections (with completed inspection forms sighted by the auditors during the site visit) and annual rehabilitation audits (e.g. the Rehabilitation Audit Final - Eastern of overburden Dump (January, 2013)) fulfil this requirement. As part of the tracking process for site rehabilitation, data is recorded on fertiliser usage and application rates Noise monitoring will be carried out periodically to check the accuracy of the predictions in the noise impact assessment Noise monitoring consultation undertook quarterly surveys at Bengalla during the audit period, as outlined in section 3.12 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and section of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) All blasts will be monitored for overpressure and ground vibration at selected locations. This monitoring continues to be undertaken at Bengalla An environmental management report will be prepared annually, reviewing the performances of the mine against the licence conditions. The Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011), the Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012) and the Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) fulfil these requirements. Heritage Management 4.13 Regular inspections of the heritage properties within the Authorisation will be made to check for signs of damage or deterioration. Quarterly inspections continued to take place during the audit period, as reported in section 3.15 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and in section 4.11 of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013). EIS 1993 Page 13

166 Audit Protocol: EIS An archaeological management plan will be developed, with the aim of assessing and researching the Aboriginal heritage of the Authorisation area in the context of the Hunter Valley. SECTION 5: IMPACT OF THE PROPOSAL ON THE ENVIRONMENT 5.1 Impact on Topography, Soils and Landuse Topography Open cut mining will destroy the existing topography within the mining area. However, new topography will be formed with the spoil which will be contoured to blend in with the surrounding landscape. Small scale topographic variations will be built into the surface profile to ensure that the final surface is similar to the surrounding land rather than perfectly smooth. The Aboriginal Cultural Heritage Management Plan (Hansen Bailey, September 2012) fulfils these requirements. This was observed by the auditors during the site visit The eastern edge of the spoil will rise at a maximum gradient of 10 degrees to a maximum height of 240 m AHD. This is higher than the existing topography, due to bulkage of the spoil. The spoil will be contoured to drain away from the mining areas. These slopes were viewed by the auditors during the site visit. Some slopes were observed to be above this 10% criterion. Technical Non Compliance Soils Soil from the disturbed areas will be stripped prior to disturbance. Where possible, the soil will be used directly for topdressing rehabilitation areas to avoid the need to stockpile soil. In the first few years this will not be possible and soil will have to be stockpiled. Soil will be stockpiled in mounds no higher than 1 m and vegetated to minimise textural degradation, erosional losses and to maintain the viability of the soil, in accordance with the Department of Conservation and Land Management recommendations. The short term stockpiles will be positioned to ensure that the stockpiles will not need relocating. Up to 0.20 m of topdressing may be placed on the postmining landform and infrastructure areas. Some amelioration of the soil in the form of fertiliser may be required. Topdressed areas will be revegetated promptly to minimise erosional losses. This is managed as per the Bengalla Topsoil Stripping Procedure (January, 2012). This is managed as per the Bengalla Topsoil Stripping Procedure (January, 2012). This is managed as per the Bengalla Topsoil Stripping Procedure (January, 2012) The rehabilitated area at Bengalla will have a covering of topsoil sufficient in quality and thickness to allow revegetation and stabilisation and the eventual development of pedological differentiation with depth. This was observed by the auditors during the site visit Impact on Land Capability Land Use Post mining rural land capability classification will be at least equal to pre-mining capability except for 6 ha of Class 2 land located within the mining areas The Joint Venture has adopted a Land Use Policy. In accordance with this policy, land not being directly used for mining or mining purposes, and land rehabilitated after mining, will be used for appropriate agricultural activity. This was observed by the auditors during the site visit The Joint Venture objective will be to restore all mine land to at least equal its premining agricultural productive capacity. The Joint Venture proposes to maintain the agricultural productivity of the total area to approximately pre-mining levels The surplus land includes approximately 414 ha of Hunter River alluvial flats This was observed by the auditors during the presently substantially used for dairying. The Joint Venture proposes that this alluvial site visit. land will continue as dairying land Dairying The mine is not expected to affect access to the Rural Lands Protection Board Clarke Reserve (Property No. 41) along Wybong Road, except for the temporary closure of the road when blasting takes place within 500 m of the road. This will result in closure of the road for approximately 10 minutes on average once every 20 days. Mine staff will liaise with the Rural Lands Protection Board to ensure the road closures do not affect the passage of stock. If the Joint Venture gains ownership of dairying properties, it will endeavour to continue milk production at the same output. This may be achieved by consolidating the farming areas to form two or more dairies of optimum commercial and productive size which could then be operated in conjunction with surplus land to the west of Bengalla Road. The development of the mine could cause a temporary interruption to milk production if the dairies are reconfigured. It is envisaged that any interruption will be for approximately six months. The implementation of the Joint Venture Land Use Policy in this way will ensure that the agricultural productivity of the area will continue substantially unchanged. A deed covering off on road closure issues has been entered into with Muswellbrook Shire Council. This dairying production was observed by the auditors during the site visit. EIS 1993 Page 14

167 Audit Protocol: EIS Impact on Surface Water and Groundwater Impact on Surface Water Rainfall runoff from the mining pit and the infrastructure area will be retained for use in the washery and for dust suppression Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that the site continues to be operated in this manner Rainfall runoff from undisturbed areas will be diverted around the site and allowed to discharge to the Hunter River Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that the site continues to be operated in this manner Runoff from the revegetated spoils will be allowed to discharge to the Hunter River after retention in sedimentation basins to remove suspended sediments. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that the site continues to be operated in this manner All contaminated water will be retained and used for the operation of the washery and dust suppression on site, while runoff from rehabilitated areas will be treated to remove sediments prior to discharge. All works associated with the proposed mining operation will be undertaken in accordance with the Joint Venture Policy on Water (Appendix 7) so as to preserve both the quality and quantity of water in the Hunter River. 5.3 Air Quality Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that the site continues to be operated in this manner. This requirement has now been superseded. 5.3 A variety of management measures will also be used to reduce dust emissions: trafficked areas will be kept damp; topsoil stripping will be restricted to being two strips ahead of the prestrip to minimise the area of exposed ground; revegetation of disturbed ground will take place at the earliest possible opportunity; drills will be fitted with dust suppression equipment. The auditors undertook a review of air quality management at the site, and found these requirements to have been generally complied with. 5.3 Table 5.2 indicates that four residences to the north of Wybong Road and two residences to the east of Bengalla Road are considered adversely affected by dust outside the mining lease area. The Joint Venture will negotiate for the purchase of these properties in addition to those properties within the mining lease, in accordance with the Land Ownership Policy set out in Appendix 7, if so requested by the owners. 5.3 Property No. 56 is a special case because of the nature of its agricultural activity which is cut flower production. This could make it more sensitive to dust from the mining operation than other land uses (e.g. residential), which are protected by the EPA's air quality goals. In this case the Joint Venture will offer a compensation agreement with the owner or negotiate the purchase of the property in accordance with the Land Ownership Policy set out in Appendix 7, if so requested by the owners. Dust and Dairying 5.3 In extreme conditions it may be advisable to effect some changes to dairy structure to prevent the entry of dust into the dairy building itself. This can be achieved by minor structural changes and screens to the dairy building and by the installation of water filters. If it is shown that such action becomes necessary due to the operation of the mine it will be done by the Joint Venture at its cost. 5.3 Where, in spite of proper dairy management, a dairy farmer incurs a loss due to dust in his milk or loss of production where that loss was caused by the dust generated from the Bengalla Mine, then the Joint Venture will be responsible and will compensate for that loss. 5.3 The Joint Venture proposes, in accordance with the Joint Venture Land Use Policy, that dairying will continue utilising the river flat land and surplus dry land purchased by the Joint Venture and not required for the actual mining process from time to time. 5.4 Noise and Blasting Impact Noise Impact The noise impact assessment indicates that noise levels during mining operations will exceed the appropriate criteria at a number of residences outside the mining lease. If requested by the owners, these properties will be purchased by the Joint Venture in accordance with the Land Ownership Policy as presented in Appendix 7. EIS 1993 Page 15

168 Audit Protocol: EIS If the present owners of these properties wish to remain, then the Joint Venture is prepared to come to an agreement regarding compensation or ameliorative measures such as double glazing and air conditioning Blasting The blasting assessment showed that 15 residences outside the mining lease boundary would be affected by blast induced overpressure. These properties would also be subject to ground vibration in excess of 5 mm/s and will therefore be adversely affected by blasting. These buildings will be protected against vibration damage or will be purchased by the Joint Venture in accordance with the Land Ownership Policy presented in Appendix 7. Building protection measures include structural inspection, including foundations and footings, compaction of all voids around the building and testing of response to vibration levels generated by a vibrating drum roller. The auditors undertook a review of these commitments as they are established in Development Approval 211/93 (as modified), and general found these requirements to have been complied with When blasting takes place within 500 m of Wybong Road, the road will be temporarily closed to eliminate any danger from fly rock. The road closure will be controlled by mine staff. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that blasting continues to be managed in this manner The road is anticipated to be closed for approximately 10 minutes on an average of one day in twenty Permanent signs will be erected at both ends of the section of Wybong Road adjacent to the Authorisation warning drivers of potential closures, the likely duration and alternate routes. This was observed by the auditors during the site visit The alternative route to Muswellbrook along the new Link Road will not be affected by the temporary closure Wybong Road will be inspected prior to re-opening to ensure there is no fly rock lying on the road. Mine staff will liaise with SRA to ensure that no trains are in danger from fly rock when blasting takes place within 500 m of the Muswellbrook - Ulan Railway Line. The track will subsequently be inspected by mine staff to ensure there is no flyrock on the track. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that blasting continues to be managed in this manner. This is managed as per a Blasting Deed that Bengalla has entered into with ARTC dated 6 April Measures that will be employed to reduce the impact of blasting include: designing the blast to minimise the maximum instantaneous charge while achieving This is managed as per the Bengalla Mining the desired degree of fragmentation; Company Post Blast Fume Generation keeping strict control of drill hole spacing and orientation; Mitigation and Management Plan (Bengalla, proper stemming of holes and the use of nonel cord to reduce air overpressure; 2007). delaying blasting if adverse weather conditions, such as low cloud or temperature inversion occur The Joint Venture will negotiate with the owners of any residence identified as being adversely affected by blasting induced vibration or overpressure for the purchase of the affected property in accordance with the Land Ownership Policy presented in Appendix Visual Impact The initial spoil piles will screen the majority of the mine workings from Muswellbrook. Progressive revegetation of these spoils will be carried out as mining proceeds westwards. By Year 7, the screening benefits of these revegetated spoils will be significant. Ameliorative measures will be implemented to reduce the overall visual impact of the mine and infrastructure areas. These tree screens and bunds were observed by the auditors during the site visit, and were generally found to be effective. EIS 1993 Page 16

169 Audit Protocol: EIS Measures to reduce the visual impact of the mine will be carried out either at the source or at the view point and will include: forward tree planting massed tree planting amenity and specimen planting earthworks and bunding rehabilitation techniques. This was observed by the auditors during the site visit. 5.5 Some forward tree planting has already been undertaken along Bengalla and Wybong Roads. Additional forward tree planting is proposed along Denman Road, Wybong Road and the northern side of the Link Road. Native species will be used. This was observed by the auditors during the site visit. 5.5 All spoil will be revegetated as soon as final contours are achieved. Rehabilitation of the eastern spoil slopes will commence within the first two years of mining and will provide progressively improved screening of the mining operation. 5.5 The major infrastructure buildings will be coloured with a blend of olive green and grey green to blend with the pastoral environment. This was observed by the auditors during the site visit. 5.5 Massed tree planting around the industrial area will filter ground level views from Denman Road and the Link Road but will not screen the taller built structures. This was observed by the auditors during the site visit. 5.5 The screening effect of tree planting relies on mature trees with healthy leaf development. Tree planting will therefore be undertaken as early as possible to optimise the screening capacity of the trees. Some tree planting has already taken place. Extensive tree planting will be undertaken during the construction 5.6 Impact on Flora and Fauna 5.6 Greater species diversity will be achieved by the introduction of common Upper Hunter Valley tree species to the rehabilitated land. 5.6 Seeds will be collected from trees prior to vegetation clearance for use in revegetation, thereby maintaining the existing gene pool. This identification of seed and habitat trees is not currently undertaken. However, the current clearing areas at Bengalla do not contain any such suitable trees. A review of the Ground Disturbance Permit system conducted by the auditors confirmed that these works would be undertaken in future as part of that GDP process. 5.7 Impact on Land Ownership and Residences Land Ownership The Joint Venture seeks to maintain the highest level of agricultural production. To this end, the Joint Venture will negotiate with any landholder within the lease area for the purchase or lease of the land in accordance with Land Ownership and Land Use Policies presented in Appendix 7. Where mining will render a residence uninhabitable due to adverse impacts or where the impact from the mine is such that the property can no longer be used to make a satisfactory living, the Joint Venture is prepared to purchase the property. All rehabilitated and unmined land held by the Joint Venture will be used for agriculture Residences This was observed by the auditors during the site visit The Joint Venture has made a commitment to purchase any property containing a residence inside or outside the Authorisation adversely affected by the mining operations at a price determined in accordance with the principles set out in previous determinations of development applications by the Minister for Planning (see Land Ownership Policy, Appendix 7). EIS 1993 Page 17

170 Audit Protocol: EIS Transport Impact Road Network Changes In order to maximise the recovery of the available reserves, it is proposed to close Bengalla Road. Bengalla Road is a no-through road providing access to rural properties. Alternative access to the properties at the southern end of Bengalla Road will be provided by the new Link Road Properties to which access will be prevented by mining will be purchased, or have been purchased by the Bengalla Joint Venture, or arrangements will be entered into with landholders for the use of the property A new Link Road will be built between Denman Road, 800 m west of Thomas Mitchell Drive and Wybong Road east of Roxburgh Road Traffic Impact of Proposed Mine All coal will be transported by rail. There will be no road transport of coal, either during the construction phase or during rail strikes. Coal will be stockpiled within the mining lease area where necessary. The Bengalla site continues to be operated in this manner The closure of Bengalla Road will remove access to properties along the central portion of the road. Agreement will have been reached with these property owners regarding purchase or lease of the land to allow mining to take place and hence there will be owners/occupiers consent for the road closure The new Link Road will provide an additional Hunter River crossing and an alternative route to Kayuga Road and Wybong Road for traffic heading west Upgrading of the Denman Road - Thomas Mitchell Drive intersection to a Type B right turn into Thomas Mitchell Drive may be warranted, as a result of peak hour flows. Discussions will be held with the RTA regarding this upgrading Wybong Road will need to be closed periodically to enable blasting to proceed safely at the northern end of the mine site. The road will be closed on average once every 20 days, for a period of 10 minutes. The closure will be controlled by mine staff. Signs will be erected on Wybong Road advising the public that occasional closures will be experienced and advising of alternative routes such as the Link Road Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that blasting continues to be managed in this manner. 5.9 Social and Economic Impact Employment Impact The project will create 510 new short term jobs during construction and 300 new long term employment opportunities during the operation phase The site has continued to employ around 300 staff during the audit period, with some fluctuations in numbers as required Infrastructure Contributions The Joint Venture will contribute to community infrastructure which can be reasonably attributed to the requirements of the project employees and their families Impact on Aboriginal Heritage The destruction of archaeological material will be mitigated by: use of site protection methods, such as fencing, to ensure that sites or areas adjacent to works are not accidentally damaged or destroyed during construction or operation of the mine; implementation of an archaeological salvage programme to recover material and information for future research and to ascertain, via residue analysis, what different kinds of stone tools might have been used for; preparation of a Plan of Management to ensure the protection of sites not destroyed by the proposed development during the 21 years of the mine life. Interviews with Bengalla staff and a review of budget documents by the auditors during the site visit confirmed that this fund continues to be maintained. This is managed as per the Aboriginal Cultural Heritage Management Plan (Hansen Bailey, September 2012) Destruction of archaeological material will only be carried out with the written consent of the Director of the National Parks and Wildlife Service, in accordance with Section 90 of the National Parks and Wildlife Act. EIS 1993 Page 18

171 Audit Protocol: EIS Impact on European Heritage Potential Threats to Heritage Items Dust Vibration Any dust deposited on Overdene and Bengalla is not therefore expected to affect the external finishes. As an additional precaution, Overdene and Bengalla will be cleaned regularly to remove any dust build up. This has been undertaken as per the Bengalla Mining Company Pty Limited European Heritage Management Plan (Bengalla, September 2012) Blasts will be designed to reduce the level of ground vibration as much as possible, however vibrations in excess of 2 mm/s are still likely to occur. Relocation of the properties to land away from the mine site is considered undesirable because of the significant associations each property has with its respective site. Bengalla and Overdene will therefore be secured to preserve their intrinsic state and restored after mining. Details of the protection required to minimise the impact of vibration on Bengalla and Overdene will be assessed by a structural engineer experienced in protection of heritage buildings. This is managed as per the Bengalla Mining Company Pty Limited European Heritage Management Plan (Bengalla, September 2012). Impact on the Immediate Curtilage The immediate surroundings of the residence contribute to the overall impression of a property and hence to the historical interpretation. Only Bengalla is in close proximity to the excavation. The mining pit limit will be 250 m from the homestead to protect the immediate surroundings. This is managed as per the Bengalla Mining Company Pty Limited European Heritage Management Plan (Bengalla, September 2012) Measures to Protect Heritage Items within the Authorisation Area Management of Bengalla and Overdene to protect these heritage items within the Authorisation area will include: recording of existing items, including all structures within the curtilage, and with the owners consent, internal features, a photographic inventory and collation of documentary evidence relating to the property; preservation measures of each property to prevent unauthorised entry, vandalism and theft, deterioration and to minimise damage from dust and vibration; temporary reinforcement to minimise vibration damage; regular monitoring; installation of fire detection and security systems; regular maintenance, including cleaning to remove any dust buildup; This has been undertaken as per the Bengalla Mining Company Pty Limited European Heritage Management Plan (Bengalla, September 2012). restoration of the residence once impacts are within accepted standards Measures to Protect Heritage Items outside the Authorisation Area Focussing of overpressure due to temperature inversions may occur occasionally. With the owners' permission, the ceilings of Edinglassie, Rouse Lench and Balmoral will be surveyed to assess their condition and ability to withstand the expected maximum overpressure The mine will be visible from Edinglassie, Rouse Lench and Balmoral. Where requested, tree planting will be carried out around these properties to minimise the visual impact Lighting Impact 5.12 Measures that will be employed to reduce the impact on the night time visual amenity of the area include: enclosed truck washing bays; low brightness floodlights mounted horizontally at a height of 15 to 20 m and fitted with reflectors to restrict stray light; keeping workshop access doors closed at night; restricting the use of translucent cladding panels on the workshops and washery; low brightness lights around the outside of the workshop; blinds in the bathhouse and offices; egg crate louvre shielding of carpark lights; louvres on safety lights on ladders and walkways; the use of dipped headlamps on dump trucks where possible and the use of visual barriers such as heightened safety berms to cut off direct views of headlamps. The auditors undertook a review of visual management measures at Bengalla, and found these requirements to have been generally complied with. EIS 1993 Page 19

172 Audit Protocol: EIS Summary of Impacts Impact on Properties to the North of Wybong Road Two groundwater bores exist on Property Nos. 45 and 47, tapping the deep hardrock aquifer for stock and domestic water. The mine will result in a reduction in groundwater level at these two bores during the first seven years of mining, after which the groundwater level will remain constant. This will reduce the availability and yield of water from these bores. In accordance with the Water Policy, the Bengalla Joint Venture will implement remedial action to reduce this problem if required by the owner Impact on Residences to the West of the Project Area Without ameliorative measures, Residence 22f could be moderately affected by noise through the operation of the coal handling facilities. To overcome this possibility, noise control treatment will be applied to plant and equipment to ensure the received noise levels do not exceed the EPA criteria The bore on Property No. 146 taps the deephardrock aquifer which will be affected by mining. The water level in the deep hardrock aquifer is expected to reduce by approximately 9 m by Year 21. The mine is therefore likely to reduce the availability water in this bore. If this is shown to occur, the Joint Venture will provide an alternative water supply of quality suitable for stock, if required by the land owner Impact on Properties to the South of the Project Area Residence No. 22a could be affected by operational noise from the coal handling facility. Noise control measures will be applied to the coal handling facility and conveyor to ensure noise levels at Residence No. 22a do not exceed the night time criterion The opencut and infrastructure area will be clearly visible in the middle distance from residences along Denman Road including Edinglassie (Property No. 115e) and Rouse Lench (Property No. 115d). Amenity tree planting will be carried out at any of these residences, if required by the owner, to reduce the view of the mine The major infrastructure buildings will be coloured with a blend of olive green and grey green to blend with the pastoral environment and massed tree planting will be undertaken around the industrial area to filter ground level views. Amenity tree planting will be undertaken on residences along Denman Road, if required by the owners, to screen the views of the mine. This was observed by the auditors during the site visit Impact on Properties to the East of the Project Area The flower farm (Property No. 56) represents an area where the existing land use is more sensitive to dust than other land uses, and could be impacted by dust emission from mining operations. In this special case, the Joint Venture will offer a compensation agreement to the owner or negotiate the purchase if so requested by the landowner, in accordance with the Policy on Land (Appendix 7). EIS 1993 Page 20

173 AECOM Independent Environmental Audit Appendix H Audit Protocol: Bengalla Mine Development Consent Modification: Environmental Assessment (Hansen Bailey, 2010) Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

174 AECOM Independent Environmental Audit h-1 Appendix H Audit Protocol: Bengalla Mine Development Consent Modification: Environmental Assessment (Hansen Bailey, 2010) Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

175 Audit Protocol: Environmental Assessment 2010 Clause Requirement Evidence Audit Finding Environmental Assessment, Development Consent Modification (MOD 4) (Hansen Bailey, 2010) 2.1 Existing Planning Approval This Modification 2.1 If this Modification is approved, Bengalla as modified will have the following features as compared to the currently approved development: 21 Year Mine Disturbance Area of approximately 717 ha being an increase of 26 ha (i.e. 3.6%) to that previously approved (see Figure 1); Maximum ROM coal production of 10.7 Mtpa being no change to what is currently approved by the Development Consent as modified; Maximum recovered coal reserve of Mt of ROM coal (no change to what is approved by the Development Consent as modified); 2.1 Mining approval to 2017,F6 remaining unchanged from that currently approved; 2.1 The same open-cut strip mining method as currently approved; 2.1 The same prestrip fleet as currently approved; 2.1 The same maximum height of the OEA (RL 270 m) as currently approved; 2.1 No increase in the 400 full-time permanent employees as currently approved; 2.1 No change to existing infrastructure to that currently approved; and 2.1 Some minor (but not material) changes in the potential environmental impacts of the operations arising from the alterations to the approved development as proposed by this Modification.B5 3. Modification Description 3.1 Wantana Extension 3.1 This Modification application is seeking the acceleration of mining within the Wantana Extension area at a rate of up to 2.5 Mtpa. This will align with the main mining area and ultimately assist in liberating approved emplacement areas. Although mining within the Wantana Extension area will (if this Modification application is approved) be conducted at higher rates, ROM coal production from Bengalla will remain within the maximum approved 10.7 Mtpa. 3.1 The auditors undertook a review of Mining and associated activities will otherwise continue to be conducted in Development Approval 211/93 (as modified), accordance with those approved in DA 211/93 as modified (see Section 2) except and found those requirements to have as modified herein. generally been complied with Southern OEA Extension The Southern OEA Extension involves the development of the existing OEA further towards the south-east and will generate approximately 10 Million loose cubic metres (Mlcm) of additional overburden emplacement capacity at Bengalla The Southern OEA Extension covers approximately 11 ha outside the currently approved 21 Year Disturbance Limit within the current Mining Lease (see Figure 1) The new landform will extend from the old conveyor belt road at around 10 degrees towards the north-west to the maximum approved OEA height of RL 270 m. EA 2010 (Mod 4) Page 1

176 Audit Protocol: Environmental Assessment The Southern OEA Extension will allow the final landform to be developed at RL 270 m further to the south than currently approved. The Southern OEA Extension has been designed to blend in with the currently approved mine plan, with some minor adjustments to create a free draining final landform Prior to the commencement of activities within the Southern OEA Extension, appropriate erosion and sediment controls, including sedimentation dams and diversion structures will be installed to avoid any impacts on the neighbouring Hunter River Floodplain. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that culverts under the road were closed off as a temporary sediment control measure during these works, and then the new diversion drains were used as a permanent management measure to complement this Topsoil from the Southern OEA Extension will be collected for ultimate reuse on rehabilitation, consistent with current management practices at Bengalla. The commencement of activities associated with the Southern OEA Extension is scheduled in early 2011 to ensure that BMC can proceed with currently approved mining operations (see Figure 3). By this time, the eastern face of the existing OEA will be developed in readiness for rehabilitation activities. As illustrated in Figure 4, the eastern face of the existing OEA is anticipated to be rehabilitated by the end of By this time, the Southern OEA Extension is scheduled to be approximately half developed, with the southern most extent of this area being shaped for rehabilitation. Rehabilitation of the eastern and southern faces of the Southern OEA Extension is anticipated to be undertaken by around mid From this point in time, continuing improved environmental outcomes will be experienced by receivers to the east and south of Bengalla. Rehabilitation activities on the exposed faces of the existing OEA will continue to be undertaken during day time hours only, consistent with commitments made in the Bengalla SEE and Wantana Extension SEE. This is managed as per the Bengalla Topsoil Stripping Procedure (January, 2012) Interviews with Bengalla staff confirmed that the site continues to be operated in this manner Figure 5 illustrates the revised final landform as at 2017, incorporating the activities associated with the Southern OEA Extension. Stormwater runoff and drainage from the landform will continue to be diverted via drop structures, consistent with that currently approved at Bengalla. The drainage designs for the final landform will continue to be developed in consultation with Industry and Investment NSW (I&I NSW) Western OEA Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that the site continues to be managed in this manner. The Bengalla Mining Company Pty Limited Water Management Plan (Bengalla, September 2012) provides evidence of ongoing regulatory consultation The Temporary OEA as illustrated in Figure 3 and described in both the Bengalla SEE and Wantana Extension SEE has not yet been constructed in its currently approved location. BMC s mine planners have identified an alternative location for this emplacement area to the west of currently approved mining activities The Western OEA will be constructed to a maximum height of RL 210 m, which will complement the natural topography within this area. The Western OEA will cover a total area of approximately 24.6 ha with an additional footprint of approximately 15 ha outside of the approved 21 Year Disturbance Limit (see Figure 1) BMC plans to utilise the Western OEA as the last resort for emplacing overburden material in order to reduce the amount of land disturbance and the impacts associated with the rehandling of this material at a later date. Should the Western OEA be required, it is planned to be constructed in stages. The temporary rehabilitation of the Western OEA will be undertaken as each stage is developed to ensure the area of open spoil is limited. EA 2010 (Mod 4) Page 2

177 Audit Protocol: Environmental Assessment Should BMC not seek approval and hence not be granted the relevant approval for the continuation of mining at Bengalla (post 2017), the material remaining within the Western OEA may be utilised in final rehabilitation activities such as capping of the CHPP areas. If utilised, the footprint of the Western OEA will be topsoiled and rehabilitated consistent with other rehabilitation activities at Bengalla Northern OEA As described in the Bengalla SEE, the northern face of the existing OEA has been steepened to accommodate additional overburden capacity and to maximise coal Interviews with Bengalla staff and the site visit recovery. The Bengalla SEE described the reshaping of this area at 10 degree conducted by the auditors confirmed that much slope in approximately Due to the overburden emplacement capacity issues of this area has already been hydromulched currently experienced at Bengalla, BMC seeks approval to delay the final shaping with temporary rehabilitation. This is still on and rehabilitation of the northern face of the existing OEA until BMC will schedule to be undertaken in continue to emplace overburden and temporarily rehabilitate this area until 2016, when it will be reshaped and topsoiled for permanent rehabilitation. 4. Regulatory Framework Other Approvals Under Other Legislation The following approvals will be acquired from the relevant approval bodies as necessary in connection with the development described in this Modification: (a) Any variation to Environment Protection Licence (EPL) 6538 held by BMC in respect of the Bengalla Mine under the Protection of the Environment Operations Act 1997 (POEO Act); (b) Any consents required under Section 87 or 90 of the NPW Act in respect of any Aboriginal Objects in the relevant area; and (c) Any required controlled activity approval under Section 91 Water Management Act 2000 (WM Act) Hunter Regional Environmental Plan 1989 Three variations to EPL 6538 have been obtained during the audit This is managed as per the Aboriginal Cultural Heritage Management Plan (Hansen Bailey, September 2012). Interviews with Bengalla staff confirmed that this need was met with existing water licences already held by the site Section 6.9 describes the non-indigenous heritage impact assessment undertaken as part of this Modification in relation to the Bengalla Homestead. The assessment confirms that this Modification will not significantly alter the heritage significance of this building Protection of the Environment Operations Act A variation to the EPL 6538 may be sought under the POEO Act for this Modification, as required Mining Act The Mining Operations Plan (MOP) for Bengalla as required by the conditions of its mining tenements will be updated as required to incorporate details of mining operations associated with this Modification. The updated MOP will be prepared and submitted to I&I NSW for approval. The Bengalla Mine Operations Plan MOP (1 January December 2015) (Bengalla) fulfils these requirements Coal Mine Health and Safety Act BMC s existing approval under Section 100 of the CMHS Act will be reviewed in respect of this Modification and updated as required. Compliance of this condition could not be verified at the time of the audit. Not Compliant Evidence required Water Management Act BMC will continue to consult with NSW Office of Water (NOW) over matters related to the WM Act and Water Act. The updated Bengalla Mining Company Pty Limited Water Management Plan (Bengalla, September 2012) provides evidence of this ongoing regulatory consultation. EA 2010 (Mod 4) Page 3

178 Audit Protocol: Environmental Assessment This Modification will include works which are a controlled activity as defined under the WM Act. Accordingly, but for Section 75U of the EP&A Act a controlled activity approval would be required under Section 91 of the WM Act. 5 Stakeholder Consultation 5.5 Ongoing Consultation 5.5 BMC has an established stakeholder consultation program, which will continue to be implemented throughout the operation of Bengalla. The auditors conducted a review of stakeholder consultation at Bengall, and found it to comply with these requirements. 5.5 This will include periodic consultation with neighbouring landholders, representatives of key local and state regulatory authorities, industry bodies and the Aboriginal community. The auditors conducted a review of stakeholder consultation at Bengall, and found it to comply with these requirements. 5.5 During the site visit the auditors observed the process undertaken by Bengalla staff in communicating with neighbours, for instance, during blasting events. The auditors viewed the Bengalla CCC newsletters and the Coal & Allied Community newsletters have continued BMC will continue to consult with its neighbours throughout the life of Bengalla to be sent. A newsletter has therefore been through (at least): prepared for each quarter during the audit - The BMCCC; The auditors viewed copies of CCC - External Reporting (e.g. Annual Environmental Management Report (AEMR) and meeting minutes indicating that the CCC has regular CNA Community Newsletters); been meeting at least twice per year during the - Open days and general community sponsored events; and audit Bengalla continues to run open - Ongoing offers for face to face discussions with any interested stakeholders. days and the Coal & Allied shopfront continues. These telephone lines are maintained. The Rio Tinto Coal Australia website continues to be the site through which Bengalla's information is published, including its AEMRs. 6. Impacts, Management and Mitigation 6.1 Air Quality Mitigation and Management Bengalla will continue to be operated in accordance with the various regulatory Environmental Management Plans (EMPs) which are approved by DoP. These EMPs are updated and modified with the approval of DoP as the operation progresses. The auditors saw the review history of the various management plans at Bengalla having been updated several times during the audit period in consultation with the relevant regulators These EMPs include the following relevant to air quality: Environmental Monitoring Program, Rio Tinto Environmental Performance Standard 2 Air Quality Control and 4 Greenhouse Gas Emissions and the relevant CNA Environmental Procedures and as described in the Bengalla SEE and Wantana Extension SEE as approved by DoP (in consultation with relevant government agencies) The mitigation and management measures included within the approved EMPs which are relevant to this Modification are provided below and include: Proactively modifying operations during adverse weather with the use of the existing real time air quality monitoring network; This system was observed by the auditors during the site visit. EA 2010 (Mod 4) Page 4

179 Audit Protocol: Environmental Assessment Conduct progressive and aggressive rehabilitation (in consultation with relevant government agencies); This is being managed onsite as per the Bengalla Mining Company Pty Limited Rehabilitation Management Plan (Bengalla, April 2013) Limit overburden emplacement within the Western OEA; Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that the site continues to be managed in this manner Effective use of water carts as a means of dust suppression on the primary haul roads; and This was observed by the auditors during the site visit Reduced haul road travel distances. This was observed by the auditors during the site visit Any technical recommendations included in Appendix D will be incorporated in the updated EMPs as required in consultation with relevant regulators to the satisfaction of DoP. The auditors saw the review history of the various management plans at Bengalla having been updated several times during the audit period in consultation with the relevant regulators. 6.2 Acoustics Mitigation and Management This Modification will result in noise levels similar to the currently approved levels with no further mitigation or management strategies necessary The following strategies for mitigation of noise impacts are implemented in accordance with the relevant EMPs: Shielded working areas for mobile equipment during night time periods under noise enhancing weather conditions; These bunds were observed by the auditors during the site visit Real time monitoring of noise levels and proactive response to exceedances or potential exceedances of noise criteria; This system was observed by the auditors during the site visit Mobile equipment will continue to be maintained to minimise noise emissions; and Sound power tests are undertaken annually at Bengalla by an external noise consultant (e.g. Bengalla Mining Company: Mobile Plant Sound Power Survey 2012 (Global Acoustics, January 2013) Noise limiting techniques including slow dozer reversing speed in exposed areas, controlled dragline chain and bucket movements, experienced operators and limiting the time machinery is in exposed areas during adverse weather conditions. Interviews with Bengalla staff confirmed that this is managed as per the training process onsite, and in response to the real time monitoring system Bengalla will continue to comply with the mitigation and management measures provided for in the relevant EMPs as approved by DoP including the CNA EMS and the relevant Rio Tinto Environmental Performance Standard and CNA Environmental Procedures and as described in the Bengalla SEE and Wantana Extension SEE Technical recommendations included in Appendix E will be incorporated in the updated EMPs as required in consultation with relevant regulators to the satisfaction of DoP. The auditors saw the review history of the various management plans at Bengalla having been updated several times during the audit period in consultation with the relevant regulators. EA 2010 (Mod 4) Page 5

180 Audit Protocol: Environmental Assessment Soils and Land Capability Mitigation and Management Suitable topsoil from each of the soil types within the Southern OEA Extension and the Western OEA will be stripped prior to overburden emplacement. To ensure that the better quality topsoil is not mixed with the inferior subsoil, selective soil stripping practices will occur. This is managed as per the Bengalla Topsoil Stripping Procedure (January, 2012) Bengalla will continue to comply with the land mitigation and management measures provided for in accordance with the EMPs approved by DoP, including Rehabilitation and Landscape Management Plan, Landscape Management Plan, Land Management Plan, the CNA EMS, Rio Tinto Environmental Performance Standard 9 Land Use Stewardship and CNA Environmental Procedure 5.1 Disturbance and Rehabilitation. The auditors undertook a review of the Bengalla Mining Company Pty Limited Landscape Management Plan (Bengalla, April 2013) and the Bengalla Mining Company Pty Limited Rehabilitation Management Plan (Bengalla, April 2013), and found these requirements to have generally been complied with The EMPs will be revised and consolidated in consultation with MSC, I&I NSW The auditors saw the review history of the and to the satisfaction of DoP. Such revisions will, subject to DoP approval, various management plans at Bengalla having include any of the technical recommendations included in Appendix F. Further, been updated several times during the audit the Land Management Plan will be revised and updated in consultation with MSC, period in consultation with the relevant I&I NSW and to the satisfaction of DoP. regulators As discussed in Section 3.2.3, should Survey Area 2 be required for this Modification, overburden material emplaced within this area will be utilised in future rehabilitation The mitigation and management measures included within the approved EMPs which are relevant to this Modification are provided below and include: Black Vertosols will be defined and stored separately from all other topsoil resources to ensure mixing does not occur; The Bengalla Topsoil Stripping Procedure (January, 2012) delineates the separate handling of Black Vertosols Topsoil will be maintained in a slightly moist condition during stripping; This is managed as per the Bengalla Topsoil Stripping Procedure (January, 2012) Stripped material will be placed onto reshaped overburden and spread immediately, if practical; This is managed as per the Bengalla Topsoil Stripping Procedure (January, 2012) Grading or pushing soil into windrows with graders or dozers for later collection for loading into rear dump trucks by front-end loaders; This is managed as per the Bengalla Topsoil Stripping Procedure (January, 2012) Soil transported by overburden trucks may be placed directly into storage; This is managed as per the Bengalla Topsoil Stripping Procedure (January, 2012) As a general rule, a maximum stockpile height of 3 m will be maintained. Clayey soils will be stored in lower stockpiles for shorter periods of time compared to coarser textured sandy soils; This is managed as per the Bengalla Topsoil Stripping Procedure (January, 2012) If long-term stockpiling is planned (i.e. Greater than 12 months), these will be seeded and fertilised; During the site visit the auditors observed the stockpiled topsoils to be vegetated. EA 2010 (Mod 4) Page 6

181 Audit Protocol: Environmental Assessment Prior to re-spreading stockpiled topsoil onto reshaped overburden, an assessment of weed infestation on stockpiles will be undertaken to limit any potential distribution of weed species; and Interviews with Bengalla staff confirmed that topsoil stockpiles are assessed for weeds, and are either sprayed or scalped as required Topsoil should be spread to a minimum depth range of 0.1 m (steep slopes) to 0.2 m (flatter areas). This is managed as per section 2.3 of the Bengalla Mine Operations Plan MOP (1 January December 2015) (Bengalla). 6.4 Geochemistry Mitigation and Management Bengalla will continue to comply with the mitigation and management measures provided for in accordance with the approved EMPs Potentially sodic overburden generated at Bengalla will continue to be placed in a manner that limits the risk of surface exposure and subsequent erosion (covered with topsoil and revegetated). This is managed at Bengalla through the Acid Mine Drainage and Mineral Waste Management Plan (March 2007). Procedures are in place to ensure this occurs. Mine geologists plan for a 10 m buffer between reject material and final surface material BMC will not dispose overburden material from the Wynn coal seam or codispose coal rejects within the area of the Southern OEA Extension which Interviews with Bengalla staff confirmed that overlies, or has potential connectivity with alluvial soils in order to prevent any the site continues to be operated in this potential adverse impacts upon the water resources within that area. Figure 3 and manner. Figure 4 illustrate the proposed Limit of Reject Emplacement within the Southern OEA Extension Surface water runoff and seepage will continue to be monitored quarterly for ph, Electrical Conductivity (EC) and Total Suspended Solids (TSS), and annually for dissolved trace metals as part of the approved Bengalla EMP. This monitoring continues to be undertaken at Bengalla The auditors saw the review history of the Technical recommendations included in Appendix G will be incorporated in the various management plans at Bengalla having updated management plans as required in consultation with relevant regulators to been updated several times during the audit the satisfaction of DoP. period in consultation with the relevant regulators. 6.5 Groundwater Mitigation and Management Bengalla will continue to comply with the mitigation and management measures provided for in accordance with the approved EMPs Reject material will not be disposed of in the Southern OEA Extension in areas outside the footprint of the approved mining operations. Interviews with Bengalla staff confirmed that the site continues to be operated in this manner. The installation of SMB1 and SMB2 will be incorporated into the regular This is managed as per the Bengalla Mining monitoring program conducted at Bengalla to monitor any changes in water levels Company Pty Limited Water Management and quality that may result from this Modification. Plan (Bengalla, September 2012) Any technical recommendations included in Appendix H will be incorporated in the updated EMPs as required in consultation with relevant regulators to the satisfaction of DoP. The auditors saw the review history of the various management plans at Bengalla having been updated several times during the audit period in consultation with the relevant regulators. 6.6 Surface Water and Flooding Impact Assessment Modification Water Supplies This Modification will result in a small increase in disturbance area to the Approved 21 Year Disturbance Limit identified on Figure 1. This will require the capture of additional runoff from disturbed areas within the water management system to minimise any impacts on receiving waters. The increase in surface water runoff has been estimated at approximately 75 ML per annum during an average rainfall year. EA 2010 (Mod 4) Page 7

182 Audit Protocol: Environmental Assessment Modification Water Demands This Modification requires the development of a new sedimentation dam and extensions to an existing dam to capture the surface runoff from the Southern OEA Extension. Processing water will continue to be supplied from the water management system and supplemented with BMC s existing Hunter River water allocation as required. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that the site continues to be operated in this manner Water Balance The assessment of the water balance has confirmed that Bengalla operates at a water deficit of approximately 630 ML in a year of average rainfall. As discussed above, this Modification will result in an increase of approximately 75 ML per annum of rainfall runoff entering the water management system. This additional water will be utilised to reduce the current water deficit and in turn, reduce the amount of water drawn from the Hunter River During a wet year, excess water may still be required to be discharged from the site. This will be undertaken strictly in accordance with the requirements of the Hunter River Salinity Trading Scheme (HRSTS) Future Drainage Paths The Southern OEA Extension will obstruct a minor historical low grade drainage path for local runoff adjacent the Hunter River Floodplain. In order to ensure future drainage and potential floodwaters do not infiltrate through the railway culverts and into Southern OEA Extension, a diversion drain will be required to be constructed to ensure that water continues to flow from east to west, consistent with existing flow behaviour. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that these works have occurred during the audit Figure 9 illustrates a conceptual alignment of this minor diversion of the drainage line with an indicative cross section of the diversion based on the existing drainage line included as an insert to this figure. The proposed diversion will be approximately 400 m in length on the southern side of the Muswellbrook to Ulan Railway Line. The minor diversion would have banks constructed with gradients of 1 in 3 and be capable of diverting any water that would have normally infiltrated into the DA Boundary to the natural flow path to the west. The final design for the drainage line will be developed in consultation with NOW which will involve the presentation of a design developed on detailed hydrological modelling. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that these works have occurred during the audit The Bengalla Mining Company Pty Limited Water Management Plan (Bengalla, September 2012) details this consultation process The final diversion design to be constructed will be based on the following objectives: Consideration of other proposed Australian Rail Track Corporations (ARTC s) works; Consideration of any possible impacts to the existing agricultural activities undertaken on this land (i.e. grazing of dairy cattle); Channel capacity designed to match current flows into the DA Boundary; and Designed to ensure that flows are conveyed at non-erosive velocities. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that these works have occurred during the audit The construction activities for the diversion will commence prior to works within the Southern OEA Extension to ensure that localised drainage is established. Construction of the drainage line will require the use of a small excavator and two trucks over a period of approximately four days. These minor construction activities will be undertaken in accordance with the Standards and Procedures within the CNA EMS to ensure that any potential environmental impacts are minimised. The diverted drainage line will be revegetated to minimise any potential erosion and sediment generation. The rehabilitated diversion drain will enable the area to continue to be utilised for dairy cattle grazing, consistent with the existing land use. This will ensure minimal impact on the agricultural productivity of this land. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that these works have occurred during the audit Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that these works have occurred during the audit Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that these works have occurred during the audit EA 2010 (Mod 4) Page 8

183 Audit Protocol: Environmental Assessment 2010 Post Mining Water Management No additional final voids are proposed as part of this Modification. All areas associated with the Southern OEA Extension will be rehabilitated as soon as practical and left in a free draining state consistent with previous final landforms (see Figure 5) developed as part of the Bengalla SEE and Wantana Extension SEE Mitigation and Management Surface water at Bengalla will continue to be managed in accordance with management measures provided for in DA 211/93, the Bengalla EMPs, Rio Tinto Environmental Performance Standard 10 Water Use and Quality Control, CNA Environmental Procedure 7.1 Water Management and Environmental Procedure 7.2 Water Discharge and as described in the Bengalla SEE and Wantana Extension SEE as approved by DoP (in consultation with relevant government agencies). The auditors undertook a review of the Bengalla Mining Company Pty Limited Water Management Plan (Bengalla, September 2012), and generally found these requirements to have been complied with Water from all disturbed areas will continue to be collected in drainage structures and sediment dams and either recycled in the Bengalla water management system or allowed to leave site following treatment of suspended solids. Bengalla largely operates under a closed water system. HRSTS water is the only water discharged from the site. This system is managed onsite with bunds, catchment drains and sediment drains have bunds. At the staged discharge dam there is also a diversion dam The auditors saw the review history of the Technical recommendations included in Appendix I will be incorporated into the various management plans at Bengalla having updated management plans as required in consultation with relevant regulators to been updated several times during the audit the satisfaction of DoP. period in consultation with the relevant regulators. 6.7 Visual and Lighting Mitigation and Management BMC will continue to comply with the mitigation and management measures in accordance with the CNA EMS, Bengalla s Land Management Plan and CNA Environmental Procedure 10.1 Visual Management. These plans are altered and adapted with the approval of DoP and in consultation with the relevant stakeholders. The Bengalla Mining Company Pty Limited Landscape Management Plan (Bengalla, April 2013) was reviewed by the auditors, and these requirements were generally found to have been complied with. The expeditious completion and rehabilitation of the Southern OEA Extension with This was observed by the auditors during the priority given to the outer faces will occur. This will reduce the visual impact of site visit. this Modification to potentially sensitive receivers to the east of Bengalla. Additionally, BMC will continue to consult with MSC, I&I NSW and DoP in relation to the revision and consolidation of the Rehabilitation and Landscape Management Plan and the Landscape Management Plan. This revision will consider objectives in relation to visual amenity along with final land use and biodiversity objectives. The Western OEA will continue to be rehabilitated temporarily to minimise visual contrasts with the adjacent grassland Lighting will continue to be managed in accordance with the CNA EMS. This consultation is outlined in the updated versions of these management plans. This was observed by the auditors during the site visit Technical recommendations included in Appendix J will be incorporated in any updated EMPs as required in consultation with relevant regulators to the satisfaction of DoP. 6.8 Ecology Impact Assessment Flora This proposed Modification involves the disturbance of approximately 9 ha of grassland containing predominantly exotic pasture and no native plant communities for the Southern OEA Extension. The auditors saw the review history of the various management plans at Bengalla having been updated several times during the audit period in consultation with the relevant regulators The Western OEA will disturb approximately 22 ha of heavily modified native grassland that has derived from the historic clearing of woodland. EA 2010 (Mod 4) Page 9

184 Audit Protocol: Environmental Assessment Mitigation and Management The BMC EMS will continue to be utilised to ensure indirect impacts to surrounding woodland and grassland habitats are minimised. This will include the implementation of CNA Environmental Procedure 10.2 Flora and Fauna A 100 m buffer is also to be retained between Dry Creek, with appropriate erosion and sedimentation controls, and the proposed Western OEA to limit any impact on this drainage line. This was observed by the auditors during the site visit BMC will continue the management of weed species in accordance with Bengalla s Land Management Plan and CNA Environmental Procedure 10.4 Weed Management. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that the site continues to be managed in this manner. 6.9 Non-Indigenous Heritage Mitigation and Management Bengalla will continue to comply with the mitigation and management measures for the Bengalla Homestead in accordance with the Bengalla EHMP, Rio Tinto Environmental Performance Standard 9 Land Use Stewardship and CNA Environmental Procedure 2.1 Cultural Heritage Management and as described in the Bengalla SEE as approved by DoP (in consultation with relevant government agencies). The auditors undertook a review of the Bengalla Mining Company Pty Limited European Heritage Management Plan (Bengalla, September 2012), and generally found these requirements to have been complied with Ongoing management of the Bengalla Homestead will continue in accordance with the above mentioned documents with the Bengalla EHMP updated in accordance with DA 211/93 to incorporate this Modification. This is managed in accordance with the Bengalla Homestead Conservation Management Plan (Bengalla, September 2012) Indirect impacts resulting from increased traffic are considered minor and sufficient management of these impacts exists in the current Bengalla EHMP. This includes ongoing monitoring of structural integrity and dust build up and remedial action taken if necessary Water management structures will be designed and implemented to divert runoff away from the Homestead, effectively managing the risk of flooding in the immediate vicinity of the Homestead. A drainage line between the Homestead and the toe of the slope, following the line of the existing terrace, is preferred as it replicates the most natural alignment The previous establishment of the Existing OEA within the area has already significantly reduced the visual integrity of Bengalla Homestead. While the Southern OEA Extension is likely to impact the Homestead, additional impacts are unlikely to further diminish the visual integrity of the Homestead. A row of trees, complementary to existing garden species will be planted to act as a screen between the Homestead and the Southern OEA Extension. This was observed by the auditors during the site visit Progressive rehabilitation of the surface of the Southern OEA Extension will mitigate long term visual impacts of this Modification at the Bengalla Homestead The EMPs are updated and altered with the approval of DoP and in consultation with relevant stakeholders. The auditors saw the review history of the various management plans at Bengalla having been updated several times during the audit period in consultation with the relevant regulators. EA 2010 (Mod 4) Page 10

185 Audit Protocol: Environmental Assessment Technical recommendations included in Appendix L may be incorporated in the updated EMPs as required in consultation with relevant regulators to the satisfaction of DoP. The auditors saw the review history of the various management plans at Bengalla having been updated several times during the audit period in consultation with the relevant regulators Indigenous Heritage Mitigation and Management Bengalla will continue to comply with the mitigation and management measures for the management of Aboriginal Cultural Heritage in accordance with the EMPs including Aboriginal Cultural Heritage Management Plan and Rio Tinto Environmental Performance Standard 9 Land Use Stewardship and CNA Environmental Procedure 2.1 Cultural Heritage Management and as described in the Bengalla SEE as approved by DoP (in consultation with relevant government agencies). A review of the Aboriginal Cultural Heritage Management Plan (Hansen Bailey, September 2012) was conducted by the auditors, and these requirements were generally found to have been complied with The EMPs are updated and altered from time to time with the approval of DoP and in consultation with relevant stakeholders. The auditors saw the review history of the various management plans at Bengalla having been updated several times during the audit period in consultation with the relevant regulators Should any activities be undertaken in accordance with SEPP (Mining) for which development consent is not required, an appropriately qualified person will perform a relevant survey if the proposed activities are outside of the 21 Year Mine Disturbance Boundary. This is managed as per the site's Ground Disturbance Permit system Should any artefacts be discovered, work will cease and consultation will occur with DECCW and the Aboriginal Community Rehabilitation and Final Landform Introduction Conceptual Final Landform The Bengalla EIS identified future coal reserves beyond the current 21 year mine plan that would be accessible via open cut mining methods. It is anticipated that BMC will seek the relevant approval necessary prior to 2017, to allow the continuation of mining operations at Bengalla into the future. Should approval be granted for the continuation of mining to uncover these additional coal reserves, then mine closure would be rescheduled and the location of the final void and associated landform would be altered Mitigation and Management Bengalla will continue to comply with the mitigation and management measures for the management of rehabilitation in accordance with the methods that are currently in place at Bengalla under the CNA Rehabilitation Procedure and the RLMP. The auditors undertook a review of the Bengalla Mining Company Pty Limited Rehabilitation Management Plan (Bengalla, April 2013), and generally found these conditions to have been complied with A summary of these techniques that will continue to be utilised and developed further for this Modification are provided below Progressive Rehabilitation The rehabilitation of land disturbance associated with this Modification will continue to occur progressively as an integral component of the mining operations at Bengalla. Interviews with Bengalla staff, a review of site records and the site inspection undertaken by the auditors confirmed that this rehabilitation program continues to be undertaken based on seasonal conditions and mining operations. EA 2010 (Mod 4) Page 11

186 Audit Protocol: Environmental Assessment The rehabilitation at Bengalla will continue to be undertaken generally in accordance with the above mentioned documents, which will be revised as appropriate in accordance with DA 211/93. The auditors saw the review history of this RMP, and found it to have been updated in consultation with the regulators during the audit It is anticipated that in order to minimise air quality impacts associated with the proposed Western OEA, surface disturbance will be limited to a maximum of 50% of the total footprint with progressive temporary rehabilitation being conducted on any additional disturbance As discussed in Section 3 and as generally displayed on Figure 3, Figure 4 and Interviews with Bengalla staff, a review of site Figure 5 rehabilitation will be scheduled to occur progressively from 2011 to 2017, records and the site inspection undertaken by as soon as is practical following the completion of mining disturbance. This the auditors confirmed that this rehabilitation process is in accordance with I&I NSW requirements for Rehabilitation program continues to be undertaken based on Completion Criteria. seasonal conditions and mining operations Should approval of this Modification be granted, a revised MOP will be required to be submitted to I&I NSW. The Bengalla Mine Operations Plan MOP (1 January December 2015) (Bengalla) fulfils these requirements Detailed mining and rehabilitation schedules will be prepared for their inclusion in the revised MOP and will continue to be reported in the AEMR and submitted to I&I NSW in accordance with DA 211/93. The Bengalla Mine Operations Plan MOP (1 January December 2015) (Bengalla) fulfils these requirements Revegetation The revegetation strategy at Bengalla has been developed as a result of previous rehabilitation experience and in accordance with current best practice. Revegetation will occur, where practical, as soon as possible after reshaping and drainage activities have been completed. Section 5 of the Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and the Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and section 6 of the Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) contains this information Bengalla will continue to complete the revegetation of rehabilitation areas using specific seed mixes for pastoral and native vegetation areas, which contain native species and have proven successful in previous use. This is managed as per the Bengalla Mining Company Pty Limited Rehabilitation Management Plan (Bengalla, April 2013) To promote effective links between site rehabilitation and remnant vegetation, Bengalla will investigate the potential of developing a series of native vegetation This is managed as per the Bengalla Mine corridors across the site, in consultation with I&I NSW and in accordance with the Operations Plan MOP (1 January principles presented in the Synoptic Plan: Integrated Landscapes for Coal Mine December 2015) (Bengalla). Rehabilitation in the Hunter Valley of New South Wales (Synoptic Plan) (DMR, 1999). EA 2010 (Mod 4) Page 12

187 Audit Protocol: Environmental Assessment Rehabilitation Monitoring In accordance with existing site procedures, rehabilitation areas will continue to be monitored on a regular basis to ensure that rehabilitation objectives are being met and that revegetation and long term landform sustainability is achieved. This is undertaken in the form of monthly walkover inspections (with completed inspection forms sighted by the auditors during the site visit). The Rehabilitation Audit Final - Eastern of overburden Dump (January, 2013) was also undertaken during the audit Any resulting actions are logged and tracked via Lotus Notes Rehabilitation monitoring will include regular inspections of rehabilitated areas to: Assess the long term viability of the rehabilitation; and To collect data that demonstrates that standards, milestones and overall objectives of the rehabilitation have been met. During the site visit the auditors viewed copies of monitoring records complying with these requirements Maintenance works in rehabilitation areas will be completed as required to address any issues of concern or recommendations identified during monitoring. Maintenance activities may include a range of responses, including: the application of fertiliser, supplementary seeding of vegetated areas and weed and pest control. This is managed as per the site's Ground Disturbance Permit system The results of rehabilitation monitoring and the effectiveness of any maintenance activities conducted for this Modification will be assessed and reported against in the Bengalla AEMR. Section 5 of the Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and the Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and section 6 of the Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) contains this information. EA 2010 (Mod 4) Page 13

188 Audit Protocol: Environmental Assessment Statement of Commitments 7.0 In addition to the conditions of DA 211/93, BMC commits to the operational controls as outlined in Table 11 for all activities associated with this Modification. Ref 1 - The Bengalla Topsoil Stripping Procedure (January, 2012) fulfils these requirements. Ref 2 - Interviews with Bengalla staff also confirmed that the site continues to be operated in this manner. Ref 3 and 4 - The auditors viewed evidence of management plans having been updated during the audit period to take into account comments made by regulators, including DP&I. Ref 5 - There has been an exceedance of these criteria. Monitoring results taken during the day of 20 June 2012 recorded a noise level of 41 dba. Monitoring was being undertaken at Racecourse Road (i.e. the Farrell residence). An incident report was prepared, and provided to DP&I. Following the incident, Bengalla implemented several operational restrictions and containment measures to ensure ongoing compliance with noise criteria. Ref 6 - These additional groundwater monitoring bores were installed, as reported in section of Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012). Ref 7 - The Bengalla Mining Company Pty Limited Rehabilitation Management Plan (Bengalla, April 2013) and the Bengalla Mining Company Pty Limited Landscape Management Plan (Bengalla, April 2013) were both updated during the audit Ref 8 - The review of the Land Management Plan has not been done: the latest version of the Land Management Plan is dated Ref 9 - The Bengalla Mine Operations Plan MOP (1 January December 2015) (Bengalla) fulfils these requirements. Not Compliant 8. Modification Justification 8.3 Socio-Economic Benefits 8.3 BMC has an ongoing commitment to future operations at Bengalla as part of its long term investment in the Upper Hunter Region and as such will continue to explore mining efficiencies which can deliver improved environmental outcomes. This information is reported in section of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and section of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013). EA 2010 (Mod 4) Page 14

189 Audit Protocol: Environmental Assessment Table 12 (vi) This Modification will not create any significant additional environmental effects of the development as already approved on the basis that the development will be carried out in accordance with the existing conditions of the approval and also abide by environmental management plans which are approved by DoP. Management plans and procedures will continue to be updated and improved on a continual basis to ensure environmental outcomes are the best possible at all times having regard for best available technology and knowledge from time to time. The auditors saw the review history of the various management plans at Bengalla having been updated several times during the audit period in consultation with the relevant regulators. Appendix D: Air Quality Impact Assessment MITIGATION MEASURES 9.2 Mine Design There are a number of existing safeguards inherent in the planning of Bengalla to manage and reduce dust emissions due to mining operations. These safeguards include, watering of haul roads, the use of automated mist sprays on coal stockpiles, dust curtains and sprays on drills and enclosure of processing These management strategies were reviewed facilities. In addition to these measures, Bengalla has recently upgraded its realtime air quality monitoring network to ensure that operations are proactively audit and found to have been undertaken during the managed during times of adverse weather. As the Modification does not significantly alter the current mine plans and operational procedures already in place, dust minimisation practices will not differ from those strategies already in place at Bengalla, detailed in Section of the Bengalla SEE Dust management and control procedures The following procedures are proposed for the management of dust emissions from the Modification. The aim of these is to minimise the emission of dust in a cost effective manner. The effects of these controls are included in the model simulations. Dust can be generated from two primary sources: Wind blown dust from exposed areas; and Dust generated by mining activities. The existing controls have been considered against those determined to be leading practice in the DERT, (2009) handbook. Table 9-1 lists the sources of dust as a result of mine design, the proposed controls and identifies those considered to be leading practice. Table 9-2 and Table 9-3 lists the different sources of wind-blown and mining-generated dust respectively, the proposed controls, and identifies those considered to be leading-practice. These management strategies were reviewed and found to have been undertaken during the audit EA 2010 (Mod 4) Page 15

190 Audit Protocol: Environmental Assessment 2010 These management strategies were reviewed and found to have been undertaken during the audit These management strategies were reviewed and found to have been undertaken during the audit These management strategies were reviewed and found to have been undertaken during the audit Monitoring The location of the Bengalla air quality monitoring network is shown in Figure 2-3. It is recommended that the following aspects of the Bengalla air quality monitoring network in assessing the Modification s environmental performance remain This monitoring continues to be undertaken at operational: Bengalla. The current network of 29 dust deposition gauges; The four PM10 HVAS; and The five TSP HVAS. EA 2010 (Mod 4) Page 16

191 Audit Protocol: Environmental Assessment 2010 Appendix E: Noise - No specific mitigation measures detailed. Appendix F: Soil and Land Capability Impact Statement 5.2 Topdressing Management 5.2 Where topsoil stripping and transportation is required, the following topsoil handling techniques are recommended to prevent excessive soil deterioration, note this also applies to subsoil stripping: Strip material to the depths stated in Tables , subject to further investigation as required. This is managed as per the Topsoil Stripping Procedure for the Southern Overburden Pit Emplacement Areas PRO Topsoil should be maintained in a slightly moist condition during stripping. Material should not be stripped in either an excessively dry or wet condition. This is managed as per the Topsoil Stripping Procedure for the Southern Overburden Pit Emplacement Areas PRO Place stripped material directly onto reshaped overburden and spread immediately (if mining sequences, equipment scheduling and weather conditions permit) to avoid the requirement for stockpiling. This is managed as per the Topsoil Stripping Procedure for the Southern Overburden Pit Emplacement Areas PRO Grading or pushing soil into windrows with graders or dozers for later collection for loading into rear dump trucks by front-end loaders, are examples of preferential less aggressive soil handling systems. This minimises compression effects of the heavy equipment that is often necessary for economical transport of soil material. This is managed as per the Topsoil Stripping Procedure for the Southern Overburden Pit Emplacement Areas PRO Soil transported by overburden trucks may be placed directly into storage. This is managed as per the Topsoil Stripping Procedure for the Southern Overburden Pit Emplacement Areas PRO The surface of soil stockpiles should be left in as coarsely structured a condition as possible in order to promote infiltration and minimise erosion until vegetation is established, and to prevent anaerobic zones forming. This is managed as per the Topsoil Stripping Procedure for the Southern Overburden Pit Emplacement Areas PRO As a general rule, maintain a maximum stockpile height of 3 m. Clayey soils should be stored in lower stockpiles for shorter periods of time compared to coarser textured sandy soils. This is managed as per the Topsoil Stripping Procedure for the Southern Overburden Pit Emplacement Areas PRO If long-term stockpiling is planned (i.e. greater than 12 months), seed and fertilise stockpiles as soon as possible. An annual cover crop species that produce sterile florets or seeds should be sown. A rapid growing and healthy annual pasture sward will provide sufficient competition to minimise the emergence of undesirable weed species. The annual pasture species will not persist in the rehabilitation areas but will provide sufficient competition for emerging weed species and enhance the desirable micro-organism activity in the soil. This is managed as per the Topsoil Stripping Procedure for the Southern Overburden Pit Emplacement Areas PRO Prior to re-spreading stockpiled topsoil onto reshaped overburden (particularly onto designated tree seeding areas), an assessment of weed infestation on stockpiles should be undertaken to determine if individual stockpiles require herbicide application and / or scalping of weed species prior to topsoil spreading. This is managed as per the Topsoil Stripping Procedure for the Southern Overburden Pit Emplacement Areas PRO An inventory of available soil should be maintained to ensure adequate topsoil materials are available for planned rehabilitation activities. This is managed as per the Topsoil Stripping Procedure for the Southern Overburden Pit Emplacement Areas PRO Topsoil should be spread to a minimum depth range of 0.1 m (steep slopes) to 0.2 m (flatter areas). Soil respreading on steep slopes at depths exceeding 0.1 m can be deleterious because of the sponge effect which can cause slippage of the topsoil from the slope. Flat areas should be topsoiled at a nominal depth of 0.2 m. Specific topsoil respreading depths for different post mining landform elements will be specified in the Landscape Management Plan. This is managed as per the Topsoil Stripping Procedure for the Southern Overburden Pit Emplacement Areas PRO EA 2010 (Mod 4) Page 17

192 Audit Protocol: Environmental Assessment Topsoil Re-spreading and Seedbed Preparation Where practical, suitable topsoil should be re-spread directly onto reshaped areas. Where topsoil resources allow, topsoil should be spread to a nominal depth of 100 mm on all re-graded spoil. Topsoil should be spread, treated with fertiliser and seeded in one consecutive operation, to reduce the potential for topsoil loss to wind and water erosion. Thorough seedbed preparation should be undertaken to ensure optimum establishment and growth of vegetation. All topsoiled areas should be lightly contour ripped (after topsoil spreading) to create a key between the soil and the spoil. Ripping should be undertaken on the contour. Best results will be obtained by ripping when soil is moist and when undertaken immediately prior to sowing. The respread topsoil surface should be scarified prior to, or during seeding, to reduce run-off and increase infiltration. This can be undertaken by contour tilling with a fine-tyned plough or disc harrow. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that the site continues to be operated in this manner. Appendix G: Geochemical Impact Assessment 6.2 Potential Management Measures 6.2 The ongoing management of overburden (and co-disposed coal reject) materials at the proposed Southern OEA Extension and Western OEA should consider the geochemistry of these materials with respect to their potential risk to cause harm to the environment and their suitability for use in construction and revegetation. It is therefore suggested that the Proponent considers: Pre-stripping topsoil from areas to be disturbed for use in final rehabilitation activities (surface cover or vegetation growth medium); This is managed as per the Topsoil Stripping Procedure for the Southern Overburden Pit Emplacement Areas PRO Continuing successful site rehabilitation practices for potentially sodic overburden within the Southern OEA Extension and Western OEA by ensuring that a topsoil cover is utilised as part of final rehabilitation; This is managed as per the Topsoil Stripping Procedure for the Southern Overburden Pit Emplacement Areas PRO No co-disposal of coal rejects and overburden within the area of the Southern OEA Extension which overlies, or has potential connectivity with, alluvial soils; and This is managed as per the Topsoil Stripping Procedure for the Southern Overburden Pit Emplacement Areas PRO Potential co-disposal of coal rejects and overburden only at those parts of the Southern OEA Extension clearly demonstrated by current groundwater/ hydrogeological studies being completed by BMC to have a low risk of connectivity to alluvial soils. This is managed as per the Topsoil Stripping Procedure for the Southern Overburden Pit Emplacement Areas PRO Surface water and water collected in the pit (including seepage from overburden materials), should continue to be monitored to ensure that key water quality parameters remain within appropriate criteria. It is therefore suggested that BMC continues to: Monitor run-off/seepage from the proposed and approved overburden emplacement areas for ph, electrical conductivity (EC), total suspended solids (TSS) on a quarterly basis and dissolved trace metals and sulfate on an annual basis. This monitoring continues to be undertaken at Bengalla. Appendix H: Groundwater Impact Assessment 11.0 The RGS report recommends: 1. No co-disposal of coal rejects with overburden within the area of the Southern OEA Extension, which overlies alluvial soils; and 2. Co-disposal of overburden and coal reject material at the north-eastern part of the Southern OEA Extension, only if the current groundwater/hydrogeological studies being completed by BMC clearly demonstrates a low risk of seepage connectivity to the south-eastern part of the surface footprint. This is managed as per the Topsoil Stripping Procedure for the Southern Overburden Pit Emplacement Areas PRO EA 2010 (Mod 4) Page 18

193 Audit Protocol: Environmental Assessment 2010 With respect to the second recommendation, it is considered that co-disposal of overburden and coal reject material can take place in the most north-eastern part of the Southern OEA Extension, but only in areas where the spoil backfills the previously open cut mined areas. Leachate generated in this area will migrate to the base of the pit whereas if co-disposal were to occur in areas where the premining surface is undisturbed and slopes towards the alluvium, leachate This is managed as per the Topsoil Stripping 11.0 generated in the spoil may migrate down the natural slope of undisturbed material Procedure for the Southern Overburden Pit to the alluvial area and potentially to the aquifer. Therefore in summary it is Emplacement Areas PRO recommended that co-disposal of coal reject material in the Southern OEA Extension should only take place in areas overlying the footprint of the previously open cut mined areas. If these recommendations are adopted a compacted clay base (clay liner), is not warranted. Appendix I: Surface Water Impact Assessment Erosion and Sediment Control Erosion and sediment control measures for the Modification will be incorporated into the site Erosion and Sediment Control Plan (Coal and Allied, 2009). The design of sediment control measures will be based on the principle of ensuring This is managed as per the Bengalla Mining that runoff from disturbed areas is separated from clean area runoff and collected Company Pty Limited Water Management 5.1 in sediment dams for treatment. Design of proposed erosion and sediment Plan (Bengalla, September 2012) and the control measures will be based on the recommended design standards in the site's Ground Disturbance Permit system. following guidelines: Managing Urban Stormwater, Soils and Construction, (Landcom, 2004), and Managing Urban Stormwater, Soils and Construction, Volume 2E Mines and Quarries (DECC, 2008). Figures 5.1 and 5.2 show the proposed sediment control measures for the Western OEA and the Southern OEA Extension. For the Southern OEA Extension, runoff will be collected in two sediment dams adjacent to the existing road embankment (referred to as the Bengalla East and Bengalla West Sediment Dams). These dams will replace proposed Sed Ponds for the previous This was observed by the auditors during the 5.1 configuration of the OEA, as shown in Figure 3.1. For the Western OEA, dirty site visit. water drains will be used to direct runoff to a new sediment dam in the southwestern corner of the OEA (referred to as the West OEA Sediment Dam), adjacent to Dry Creek. The crest level of the dam and diversion drain embankment will be set above the 100 year ARI flood level for Dry Creek. 5.1 Preliminary estimates of sediment dam sizes are provided in Table 5.1. These sizes will be confirmed during detailed design. 5.1 Based on current design guidelines, the new sediment dams are to be dewatered within 5 days after a runoff event to provide free storage capacity of at least the Settling Zone Volume shown in Table 5.1. Where TSS concentration in sediment dams after a runoff event is less than 50 mg/l (or equivalent turbidity value), basins may be dewatered to receiving waters. Where TSS exceeds 50 mg/l, water in basins must be either: - Flocculated to reduce TSS to less than 50 mg/l; - Pumped to another water storage with available capacity; or - Pumped in to the mine water management system Drainage of Final Landform The rehabilitated OEA east of mining operations will be drained using the approach currently adopted at Bengalla which is based on: Topsoiling and revegetation of the finished landform; Construction of contour drains across the batter slope to minimise the potential for rilling and gullying of the finished landform; Collection of inflows from contour drains in rock chutes which flow downslope; and Discharge from rock chutes to sediment basins prior to discharge from Bengalla. Figure 5.3 shows a concept layout for the final landform drainage. Surface Water Monitoring The current Surface Water Monitoring Program, as described in Section 2.5, will continue to be implemented at Bengalla. This was observed by the auditors during the site visit. This monitoring continues to be undertaken at Bengalla. EA 2010 (Mod 4) Page 19

194 Audit Protocol: Environmental Assessment 2010 Appendix J: Visual Impact Assessment Mitigation strategies to improve the visual performance of the Modification include: Expediting the completion of the outer faces of the Wybong, ROM Hopper and Wantana OEAs; The progressive rehabilitation of OEA outer faces consistent with operation This was observed by the auditors during the management needs to minimise pre-rehabilitation areas to external sensitive view site visit. locations; Consistent with maintaining tree planting areas, consider design options for planting areas to achieve the best visual outcome to critical eastern and southern views; This was observed by the auditors during the site visit Utilise tree areas to assist in breaking up the line and screening water drop down structures; This was observed by the auditors during the site visit Utilise dark rock where possible in such structures to minimise contrast; and Expedite the temporary rehabilitation of the Western OEA to minimise visual contrast with adjacent grassland and woodland. Appendix K: Ecological Impact Assessment Management and Monitoring The following mitigation measures form part of the Environmental Management System at Bengalla, and will ensure that potential impacts to surrounding woodland and floodplain vegetation are mitigated Standard construction operational environmental management measures and procedures will be implemented to avoid any indirect impacts on adjoining areas of native vegetation and EECs. This is managed as per the site's Ground Disturbance Permit system A 100m buffer has been applied to the banks of the ephemeral Dry Creek and strict soil and water management controls will be applied to avoid any downstream impacts from the Western OEA. This was observed by the auditors during the site visit The continued management of key weed species will reduce the spread of noxious and key environmental weeds. The main species that will be targeted for control in the mine plan alterations originate mostly from the Wantana Extension area, including Galenia pubescens, Cirsium vulgare, Opuntia stricta var. stricta and Sida rhombifolia. The mine plan alterations will be inspected regularly for outbreaks of these target weeds and sprayed with appropriate herbicide in accordance with the approved Land Management Plan. This is managed as per the Weed Management Plan: Bengalla Mine (HLA Enviroscience, 16 May 2003). Appendix L: Non-Indigenous Heritage Impact Assessment Potential Mitigation & Management Strategies The following mitigation measures would reduce such impact: Plant a row of screen trees (species similar to and complementary to existing garden trees) between the proposed Southern OEA Extension and the Homestead boundary fence (planting prior to commencement of works); Construct a drainage line between the Homestead and the toe of the slope, preferably following the line of the existing terrace to provide as natural a setting as possible; This was observed by the auditors during the site visit. This was observed by the auditors during the site visit. Continue to monitor the structural integrity of the Homestead in accordance with the EHMP to ascertain if vibrations are causing any damage and take remedial action if necessary; This monitoring continues to be undertaken at Bengalla. EA 2010 (Mod 4) Page 20

195 Audit Protocol: Environmental Assessment 2010 Monitor interior of Homestead to measure dust build up and rectify if necessary; Restoration and maintenance works have been ongoing throughout the audit period, as reported in section 3.15 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and in section 4.11 of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013). Following the completion of overburden emplacement activities, rehabilitate the surface of the Southern OEA Extension as has been done to the rear (north) of the Homestead. This was observed by the auditors during the site visit. EA 2010 (Mod 4) Page 21

196 AECOM Independent Environmental Audit 8 This page has been left blank intentionally. Revision B Prepared for Bengalla Mining Company Pty Limited ABN:

197 Audit Protocol: Environmental Assessment 2010 Clause Requirement Evidence Audit Finding Environmental Assessment 2010 (MOD 4) Response to Submissions (Hansen Bailey, February 2011) 2.1 Department of Environment, Climate Change and Water Comment 3 Noise Impacts As noted in Section of the EA, this Modification will result in the noise levels similar to the currently approved levels with noise mitigation measures to continue to be implemented in accordance with the mitigation and management measures provided for in the relevant Environmental Management Plans (EMPs) including the Coal & Allied (CNA) Environmental Management System (EMS), the relevant Rio Tinto Environmental Performance Standard and CNA Environmental Procedures and as described in the approved Statement of Environmental Effects Modification to Mining Operations (Bengalla SEE) (Hansen Consulting 2006) and the Wantana Extension Statement of Environmental Effects (Wantana Extension SEE) (Hansen Bailey 2007). These management plans and procedures will ensure that Bengalla Mine will continue to employ best practice noise management and mitigation measures and achieve best practice noise emission levels from its plant and equipment. The auditors undertook a review of the Bengalla Mining Company Pty Limited Noise Management Plan (Bengalla, August 2013), and found these conditions to have generally been complied with Any technical recommendations included in the Acoustic Impact Assessment (Bridges Acoustics 2010) presented in Appendix E of the EA will be incorporated into the updated EMPs as required in consultation with the relevant regulators to the satisfaction of DoP. 2.2 Industry and Investment NSW Comment 1 Mining Title Bengalla will ensure that valid Mining Leases are maintained throughout the life of their mining operations Comment 2 Mining Operations Plan The auditors saw the review history of the various management plans at Bengalla having been updated several times during the audit period in consultation with the relevant regulators. Bengalla continues to maintain these leases As noted in Section and Table 11 Reference 9 of the EA, should this Modification be granted, Bengalla, in consultation with I&I NSW, will submit a revised Mining Operations Plan (MOP) prior to the commencement of any activities proposed by this Modification. The Bengalla Mine Operations Plan MOP (1 January December 2015) (Bengalla) fulfils these requirements Comment 3 Rehabilitation Plan I&I NSW require the following issues to be addressed by the proponent in presenting a Rehabilitation Plan to the satisfaction of the Director-General I&I NSW. a) Domain Specific Objectives: Identify the functional domains of the project and describe the rehabilitation objectives for each domain. b) Completion Criteria: Propose strategic completion criteria for each domain having regard to the various phases of rehabilitation (i.e. Decommissioning, Landform Establishment, Growth Medium Development, Ecosystem Establishment, Ecosystem Development) and outline the proponent s commitment to progressive rehabilitation. I&I NSW recommend that the following conditions be incorporated into the planning approval, if granted: The Proponent must prepare and implement a Rehabilitation Plan to the satisfaction of the Director-General I&I NSW. The Plan must: a) Be prepared in accordance with I&I NSW guidelines and in consultation with relevant agencies and stakeholders; b) Be submitted and approved by the Director-General I&I NSW prior to the commencement of construction; c) Address all aspects of rehabilitation and mine closure, including final land use assessment, rehabilitation objectives, domain objectives, completion criteria and rehabilitation monitoring. The Bengalla Mining Company Pty Limited Rehabilitation Management Plan (Bengalla, April 2013) fulfils these requirements. EA 2010 Response to Submission Page 1

198 Audit Protocol: Environmental Assessment The Bengalla Mining Company Pty Limited Table 11 Reference 7 of the EA notes that BMC will revise and consolidate its Rehabilitation Management Plan (Bengalla, Rehabilitation and Landscape Management Plan and the Landscape Management April 2013) and the Bengalla Mining Company Plan to incorporate details of this Modification in consultation with I&I NSW, MSC Pty Limited Landscape Management Plan and to the satisfaction of DoP. Bengalla will include the requirements outlined in the (Bengalla, April 2013) were both updated above correspondence including domain specific objectives and completion criteria. during the audit Comment 4 Adequate consultation with I&I NSW (Primary Industries Division) did not occur in relation to the value of the identified agricultural resource lands and proposed impacts. I&I NSW P(Primary Industries Division) is additionally concerned that the Modification proposal and exhibited EA: Does not identify adequate agricultural compensatory measures or offsets; May create precedent for future mining disturbance to important agriculture resource lands and related alluvial water resources in the Hunter (including by other mining companies); The Bengalla Mining Company Pty Limited Does not adequately identify rehabilitation objectives as required by DoP; Rehabilitation Management Plan (Bengalla, April 2013) has been updated during the audit period in recognition of this. Discussions commenced with I&I NSW in September 2010 in relation to reinstating an area of Class II land. One proposition currently being investigated is the amelioration of soils by the application of bio-solids in advance of stripping to improve their quality and handleability. BMC will continue to consult with I&I NSW (Primary Industries Division) and are available at any time to provide a briefing and / or site tour of the area proposed to be impacted as a result of the Modification Comment 6 Classification Systems The author of the Soil and Land Capability Impact Assessment disagrees with the above statement that the recreation of Class 2 Agricultural Suitability on the Southern OEA Extension is unrealistic and would be more appropriately classified as Class 3. The indicative location of the area proposed to be recreated to Class 2 Agricultural Suitability will be relatively flat and contain sufficient amounts of high quality Black Vertosol topsoil that would be capable of supporting regular dry land cropping or pasture establishment and would provide a relatively high quality seedbed. Section of the EA notes that suitable topsoil from each of the soil types within the Southern OEA Extension and the Western OEA will be stripped prior to overburden emplacement Table 11 of the EA notes that a procedure detailing specific topsoil stripping methods will be developed in consultation with I&I NSW to ensure topsoil stripped from the Southern OEA Extension is utilised beneficially within the rehabilitation activities of the existing OEA. The Bengalla Topsoil Stripping Procedure (January, 2012) fulfils these requirements Comment 8 Agricultural Impacts The author of the Soil and Land Capability Impact Assessment has reconfirmed that the indicative location of the area between 230 and 240 m can be appropriately classified as Class 2 Agricultural Suitability and Class III Land Capability as: Agricultural Suitability Class 1 soils are to be selectively stripped and stored for this purpose; It is proposed that a sufficient amount of good quality Black Vertosol topsoil be overlayed onto a suitable subsoil; Success using this approach has occurred on other mines in the Hunter Valley e.g. Hunter Valley Operations Mine; The final landform of the entire mine landscape will allow for accessibility of agricultural input e.g. biosolids, seed and fertiliser; and The local climate is suitable for dry land pasture production and cropping. This was observed by the auditors during the site visit. EA 2010 Response to Submission Page 2

199 Audit Protocol: Environmental Assessment Comment Table 11 Reference 1 of the EA notes that BMC will develop a procedure detailing specific topsoil stripping methods in consultation with I&I NSW to ensure that topsoil stripped from the Southern OEA Extension is utilised beneficially within the rehabilitation activities of the existing OEA. The Bengalla Topsoil Stripping Procedure (January, 2012) fulfils these requirements Section 5.2 of the Soil and Land Capability Impact Assessment identifies that where topsoil stripping and transportation is to occur a number of handling techniques are recommended. Section of the EA notes that suitable topsoil The Bengalla Topsoil Stripping Procedure from each of the soil types within the Southern OEA Extension and the Western (January, 2012) fulfils these requirements. OEA will be stripped prior to overburden emplacement. To ensure that better quality topsoil is not mixed with the inferior subsoil, selective soil stripping practices will occur Comment 10 Agricultural Recommendations As noted in Table 11, of the EA Bengalla will update the Rehabilitation and Landscape Management Plan, Landscape Management Plan and Land Management Plan in consultation with I&I NSW, MSC and to the satisfaction of DoP. Such revisions will, subject to DoP approval, include any of the technical recommendations included in the Soil and Land Capability Impact Assessment. Bengalla looks forward to working with I&I NSW (Primary Industries Division) to ensure the best land management outcome is achieved with the limited soil resource which will become available. The Bengalla Mining Company Pty Limited Rehabilitation Management Plan (Bengalla, April 2013) and the Bengalla Mining Company Pty Limited Landscape Management Plan (Bengalla, April 2013) were both updated during the audit However the latest version of the Land Management Plan is dated 2008, and hence the review and update of that plan was not undertaken. Administrative non compliance 2.3 NSW Office of Water Comment BMC will progressively rehabilitate the spoil by contouring, placing stockpiled topsoil and re-vegetating. This will further significantly reduce rainfall infiltration into the spoil and hence infiltration from the base of spoil to the alluvial gravels. Interviews with Bengalla staff, a review of site records and the site inspection undertaken by the auditors confirmed that this rehabilitation program continues to be undertaken based on seasonal conditions and mining operations The Geochemical Assessment completed as part of the EA confirmed that for the materials to be placed in the Southern OEA and the management measures to be employed (including adherence to the limit of rejects emplacement), limited salinity generation from runoff is likely. However until rehabilitation is completed, runoff water from this area will be diverted and captured within the mine s closed water management system. Additionally, BMC will rip and seal the natural surface in the vicinity of the Southern OEA to assist in this process prior to the emplacement of overburden. Bengalla largely operates under a closed water system. HRSTS water is the only water discharged from the site. This system is managed onsite with bunds, catchment drains and sediment drains have bunds. At the staged discharge dam there is also a diversion dam. This ripping of materials was observed by the auditors during the site visit. 3.1 Hunter-Central Rivers Catchment Management Authority Comment 5 Riparian Health and Groundwater To ensure that the groundwater is appropriately monitored in the vicinity of the Southern OEA Extension, Section and Table 11 of the EA describes Bengalla s commitment to the ongoing monitoring of SMB1 and SMB2 with both groundwater bores to be incorporated into the regular environmental monitoring program at Bengalla to ensure the long term preservation of the groundwater network in the area. Monitoring of SMB1 and SMB2 has commenced with the results to be presented going forward in Bengalla s Annual Environmental Management Report. This was undertaken, as reported in section of Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012) Section 6.11 of the EA notes that Bengalla will continue to comply with its already approved Rehabilitation and Landscape Management Plan in accordance with DA 211/93. The Rehabilitation and Landscape Management Plan includes preliminary details of the Final Void Management Plan and Mine Closure Plan. The auditors undertook a review of the Bengalla Mining Company Pty Limited Landscape Management Plan (Bengalla, April 2013), and found these conditions to have been generally complied with. EA 2010 Response to Submission Page 3

200 Audit Protocol: Environmental Assessment Should this Modification be granted Bengalla in consultation with I&I NSW will The Bengalla Mine Operations Plan MOP (1 submit a revised MOP prior to the commencement of any activities proposed by this January December 2015) (Bengalla) Modification. fulfils these requirements Table 11 Reference 7 of the EA notes that BMC will revise and consolidate its Rehabilitation and Landscape Management Plan and the Landscape Management Plan to incorporate details of this Modification in consultation with I&I NSW, MSC and to the satisfaction of DoP. The Bengalla Mining Company Pty Limited Rehabilitation Management Plan (Bengalla, April 2013) and the Bengalla Mining Company Pty Limited Landscape Management Plan (Bengalla, April 2013) were both updated during the audit Section of the EA notes that appropriate erosion and sediment control measures will be implemented between Dry Creek and the Western OEA to limit any impacts to this drainage line. This was observed by the auditors during the site visit. 3.3 Muswellbrook Shire Council Local and Family History Society Inc Comment Mining has previously occurred in similar proximity to Bengalla homestead. The management plans and monitoring protocols in place have ensured minimal impact on the property. Any foreseeable impacts going forward are considered to be minor and will be managed in accordance with the existing approved Bengalla European Heritage Management Plan (Archaeology Australia 2008). The auditors undertook a review of the Bengalla Mining Company Pty Limited European Heritage Management Plan (Bengalla, September 2012), and generally found these conditions to have been complied with Comment Indirect impacts on the Bengalla Homestead complex including vibration may impact on the house footings. Any foreseeable impacts are considered to be minor and will be managed in accordance with the existing approved Bengalla European Heritage Management Plan (Archaeology Australia 2008). 4.3 Community Submissions: Tickle Comment 6 The auditors undertook a review of the Bengalla Mining Company Pty Limited European Heritage Management Plan (Bengalla, September 2012), and generally found these conditions to have been complied with An existing approved haul road is situated between the existing OEA and the Homestead. It is anticipated that as the existing OEA reaches its maximum approved capacity this haul road will be rehabilitated consistent with the mine plans shown on Figure 3, Figure 4 and Figure 5 of the EA. No additional haul road is required to be constructed closer to the Bengalla Homestead or its constituents. Interviews with Bengalla staff confirmed that this was undertaken during the audit Comment Comment (B) (B) The final landform as presented in Figure 5 within the EA will be achieved in accordance with the Coal & Allied Rehabilitation Procedure and the Rehabilitation and Landscape Management Plan. In order to prevent the uncontrolled discharge of water from within the DA Boundary off site the construction of appropriate drainage from the Southern OEA Extension will be required to be constructed consistent with the 2017 Mine Plan as presented on Figure 5 of the EA. Section of the EA states that all areas associated with the Southern OEA Extension will be rehabilitated as soon as practical and left in a free draining state consistent with design of previous final landforms developed as part of the Bengalla SEE and the Wantana Extension SEE. perio This was observed by the auditors during the site visit. Interviews with Bengalla staff, a review of site records and the site inspection undertaken by the auditors confirmed that this rehabilitation program continues to be undertaken based on seasonal conditions and mining operations. EA 2010 Response to Submission Page 4

201 Audit Protocol: Environmental Assessment (C) Indirect impacts on the Bengalla Homestead complex including vibration may impact on the house footings. Any foreseeable impacts are considered to be minor and will be managed in accordance with the existing approved Bengalla European Heritage Management Plan (Archaeology Australia 2008). The auditors undertook a review of the Bengalla Mining Company Pty Limited European Heritage Management Plan (Bengalla, September 2012), and generally found these conditions to have been complied with (D) The Statement of Commitments (Table 11) item number 2 within in the EA states that no reject material or Wynn Interburden (Archerfield Sandstone) will be placed within the Southern OEA Extension beyond the limit of Reject Emplacement indicated on Figure 3. Interviews with Bengalla staff confirmed that the site continues to be operated in this manner (D) Management of the Bengalla Homestead will continue to be managed in accordance with the existing approved Bengalla European Heritage Management Plan (Archaeology Australia 2008). 4.5 Community Submissions: Peel Comment 3 The Bengalla Homestead Conservation Management Plan (Bengalla, September 2012) was reviewed by the auditors, and the site was found to generally be in compliance with this plan Any technical recommendations included in the Appendix D of the EA will be incorporated into the updated Environmental Management Plans in consultation with DoP. The auditors saw the review history of the various management plans at Bengalla having been updated several times during the audit period in consultation with the relevant regulators. EA 2010 Response to Submission Page 5

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203 AECOM Independent Environmental Audit Appendix I Audit Protocol: Bengalla Mine Development Consent Modification: Environmental Assessment (Hansen Bailey, 2008) Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

204 AECOM Independent Environmental Audit i-1 Appendix I Audit Protocol: Bengalla Mine Development Consent Modification: Environmental Assessment (Hansen Bailey, 2008) Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

205 Audit Protocol: EA 2008 Reference Requirement Evidence Audit Finding Bengalla Mine Development Conseent Modification - Environmental Assessment (March 2008) 3.0 MODIFICATION DESCRIPTION 3.1 Bengalla Link Road Stage Bengalla Link Road Stage 2 will be constructed to similar or higher design standards and specifications to those originally approved in the Bengalla EIS on the alignment as agreed with MSC. This was completed prior to the audit 3.1 Bengalla Link Road Stage 2 will be dedicated to MSC as a public road. This was completed prior to the audit Minor connector roads will also be constructed from the existing Wybong Road and Roxburgh Road to provide adequate intersections with the Bengalla Link Road This was completed prior to the audit Stage The northern most 500 m of Roxburgh Road will be closed with a permanent barrier installed to prevent its use. This was completed prior to the audit The alignment of the Bengalla Link Road Stage 2 crosses one non-mine owned property immediately to the south of Roxburgh Road. BMC is presently in negotiations with this landholder for acquisition of the land in accordance with Schedule 3, Condition 1 of DA 211/93 (M2). This was completed prior to the audit Construction of the Bengalla Link Road Stage 2 is estimated to take approximately eight months to complete and will utilise standard road construction methods (i.e. ripping of topsoil, excavation works, haulage of material and placing and compaction of road material). This was completed prior to the audit Construction activities which are audible at nearby non-mine owned receivers will occur during day time hours (i.e. 7:00 am to 6:00 pm) from Monday to Saturday only. This was completed prior to the audit All pavement material for the road construction will be sourced from suitable regional suppliers to ensure that it meets the relevant criteria for the road design. This was completed prior to the audit In order to manage the potential construction impacts during the construction of the Bengalla Link Road Stage 2, BMC will prepare and implement a detailed Construction Management Plan to the satisfaction of MSC. The Construction Management Plan will include relevant detail on the construction works and any required mitigation and management of environmental impacts. This was completed prior to the audit The construction of the Bengalla Link Road Stage 2 will be undertaken in accordance with the CNA EMS to ensure that all environmental issues are managed appropriately. Reference will be made in the Construction Management Plan to the relevant CNA EMS standards, procedures and the regulatory required management plans. This was completed prior to the audit Traffic impacts during the construction of the Bengalla Link Road Stage 2 will be managed in accordance with a Traffic Management Plan and a Traffic Control Plan This was completed prior to the audit which will be developed to the satisfaction of the MSC. EA 2008 (Mod 3) Page 1

206 Audit Protocol: EA Once construction activities have been completed, the areas that have been disturbed will be fully rehabilitated as these areas become available. Rehabilitation activities along the Bengalla Link Road Stage 2 will be undertaken in accordance This was observed by the auditors during the site with the CNA EMS and the approved Bengalla Rehabilitation and Landscape Management Plan. The road alignment will intercept existing sections of Crown Roads. As these roads will be affected by the construction of Bengalla Link Road Stage 2, BMC is currently in discussions with MSC with regard to transferring the management of This was completed prior to the audit the appropriate sections of Crown Roads in the area that are currently managed by the Crown to MSC Further, it is proposed that an application will be lodged with the NSW Department of Lands (DoL), in parallel with the planning approval process to close the unnecessary sections of Crown Road and to purchase the Crown Land. This was completed prior to the audit 3.2 ROM Hopper Relocation The construction activities associated with the relocation of the ROM hopper and associated facilities are now scheduled to commence in early 2008 and are anticipated to be completed by 31 March This was completed prior to the audit ROM coal will continue to be transported via the southern internal haul road to the existing ROM hopper until its relocation is completed. This was completed prior to the audit Coal mining proposed to occur in the Wantana Extension as described in the Wantana Extension SEE will not commence until the relocated ROM hopper has been completed. This was completed prior to the audit The infilling of the southern loop road will commence once the relocation of the ROM hopper has been completed. Rehabilitation of the eastern faces of the OEA will also continue progressively as areas of shaped overburden become available. This was completed prior to the audit In order to mitigate potential noise and air quality impacts on sensitive receivers to the east of Bengalla during 2008, BMC will maintain production at up to 8.7 Mtpa ROM coal. Once the relocated ROM hopper and associated facilities are completed, Bengalla may increase the production rate to up to 10.7 Mtpa ROM coal as approved by DA 211/93 (M1). This was completed prior to the audit 4.0 REGULATORY FRAMEWORK 4.4 Other Regulatory Requirements BMC will, with approval from MSC, transfer the management of the appropriate sections of Crown Roads in the area that are managed by the Crown to MSC. Transfer of the management of the relevant roads will be undertaken under the provisions of Section 151 of the Roads Act. This was completed prior to the audit Prior to the construction of the Bengalla Link Road Stage 2 on or over public roads, the relevant approval will be sought from MSC (as the appropriate roads authority) under Section 138 of the Roads Act. Such an approval must be granted consistent with this Modification pursuant to Section 75V of the EP&A Act. This was completed prior to the audit Following the construction of Bengalla Link Road Stage 2, BMC will progress the closure of the adjacent unnecessary Crown Roads under the provisions of Section This was completed prior to the audit 34 of the Roads Act. EA 2008 (Mod 3) Page 2

207 Audit Protocol: EA BMC will also prepare a Plan of Subdivision to dedicate the entire road alignment of the Bengalla Link Road Stage 2 to MSC as a public road under Part 2 of the Roads Act. This was completed prior to the audit 5.0 COMMUNITY CONSULTATION 5.6 Ongoing Consultation 5.6 BMC has an established stakeholder consultation program, which will continue to be implemented throughout the operation of Bengalla. This will include periodic consultation with neighbouring landholders, representatives of key local and state regulatory authorities, industry bodies and the Aboriginal community. The auditors undertook a review of stakeholder engagement at Bengalla, and found it to be compliant with these requirements. 5.6 BMC will continue to consult with its neighbours throughout the life of Bengalla through (at least): The BMCCC; External Reporting (e.g. Annual Environmental Management Report (AEMR) and regular Newsletters); Open days and general community sponsored events; and Ongoing offer of face-to-face discussions with any interested stakeholders. The auditors viewed the Bengalla CCC newsletters and the Coal & Allied Community newsletters have continued to be sent. The auditors viewed copies of CCC meeting minutes indicating that the CCC has been meeting at least twice per year during the audit Bengalla continues to run open days and the Coal & Allied shopfront continues. The Rio Tinto Coal Australia website continues to be the site through which Bengalla's information is published. The auditors also viewed evidence of the site's reporting of environmental incidents and potential incidents. 6.0 IMPACTS, MANAGEMENT & MITIGATIONS 6.1 Bengalla Link Road Stage Air Quality Additional care will be taken to ensure that dust is controlled during construction using best practice measures. This was completed prior to the audit During the construction period, in addition to the management of all activities in accordance with the CNA EMS and the approved Bengalla Environmental Monitoring Program (EMP), the following air quality controls will be implemented: This was completed prior to the audit Use of water carts to maintain trafficked surfaces in a damp condition; This was completed prior to the audit Use of properly maintained equipment to minimise emissions of black diesel smoke; This was completed prior to the audit Covering of loads when travelling on public roads; This was completed prior to the audit Implementation of speed limits along the alignment during construction; This was completed prior to the audit Mark out the trafficable areas along the road alignment to minimise disturbance; and This was completed prior to the audit The suspension of construction activities under unfavourable weather conditions. This was completed prior to the audit EA 2008 (Mod 3) Page 3

208 Audit Protocol: EA A Construction Management Plan will also be developed to the satisfaction of MSC and will address any air quality controls required during the construction of the Bengalla Link Road Stage 2. This was completed prior to the audit Acoustics During the construction period, in addition to the management of all activities in accordance with the CNA EMS and the approved Bengalla EMP, the following noise mitigation measures will be implemented to manage any short-term noise impacts: This was completed prior to the audit The proposed construction program will be discussed with nearby residential neighbours prior to the commencement of construction; This was completed prior to the audit Consideration will be given to cut and fill sections of road to balance the material requirements to minimise cut and fill and movement of materials along the road alignment; This was completed prior to the audit No noise generating activity which would be audible at private residences will occur at the work site outside the normal construction hours of 7:00 am to 6:00 pm Monday to Saturday; Appropriate machines will be selected for each task and efficient work practices adopted to minimise the total construction period and the number of noise sources on the site; This was completed prior to the audit This was completed prior to the audit All machines used on the site will be maintained in good condition with excessively noisy machines repaired or removed; This was completed prior to the audit Machines with excessively noisy reverse alarms will be modified prior to entry to site; and This was completed prior to the audit Access tracks will be regularly maintained along the route to minimise impact noise from empty truck bodies travelling over rough ground. This was completed prior to the audit A Construction Management Plan will also be developed to the satisfaction of MSC and will address any noise mitigation and management measures required during the construction of the Bengalla Link Road Stage Traffic Assessment Flora and Fauna This was completed prior to the audit Traffic impacts associated with the construction of the Bengalla Link Road will be managed in accordance with the Traffic Management Plan and Traffic Control Plan This was completed prior to the audit which will be prepared to the satisfaction of MSC. The use of best practice management throughout the construction of the road in accordance with the CNA EMS, will ensure that impacts will be minimised and managed appropriately. This was completed prior to the audit Additionally, a Construction Management Plan will be developed to the satisfaction of MSC which will address any management measures to protect native flora and fauna not proposed to be impacted during the construction of the Bengalla Link Road Stage 2. This was completed prior to the audit Aboriginal Archaeology A total of nine sites were identified within the Survey Area, consisting of five artefact scatters and four isolated finds. As such, the existing Bengalla Aboriginal Cultural Heritage Management Plan will be revised in consultation with the local Aboriginal community and DECC and to the satisfaction of DoP to include a relevant salvage program for the artefacts identified within the Survey Area. This was completed prior to the audit EA 2008 (Mod 3) Page 4

209 Audit Protocol: EA Aboriginal archaeology along the Bengalla Link Road Stage 2 will continue to be managed in accordance with the CNA EMS and the revised Bengalla Aboriginal Cultural Heritage Management Plan. This was completed prior to the audit The Construction Management Plan being developed to the satisfaction of MSC will also address controls required during the construction of the Bengalla Link Road Stage 2 to protect Aboriginal archaeology not proposed to be disturbed by the Modification. This was completed prior to the audit Visual and Lighting Soil Capability Roadside tree screening along appropriate sections of the eastern side of the road alignment will occur to reduce the visual impacts of the mining operations at Bengalla on the road users, consistent with the approved Bengalla Landscape Management Plan. In addition to the management of construction activities in accordance with the CNA EMS, the following management techniques will be employed to mitigate potential impacts to soils during transport and stockpiling operations: This was observed by the auditors during the site This was completed prior to the audit Soil will not be stripped below 150 millimetres (mm). Topsoil will be maintained in a slightly moist condition during stripping with material not stripped in either an excessively dry or wet condition; This was completed prior to the audit Soil will be graded or pushed into windrows for later collection or for loading into rear dump trucks or scrapers to minimise compression effects of the heavy equipment that is often necessary for economical transport of soil material; This was completed prior to the audit Soil to be transported by dump trucks will be placed directly into storage stockpiles. Soil transported by scrapers will be pushed into stockpiles by other equipment such as dozers to avoid tracking over soil previously laid by the scraper; and This was completed prior to the audit The surface of soil stockpiles will be left in a rough condition to promote infiltration and minimisation of erosion until vegetation is established to prevent anaerobic zones forming. This was completed prior to the audit The Construction Management Plan being developed to the satisfaction of MSC will also address any controls required to adequately protect the soil resource during the construction of the Bengalla Link Road Stage 2. This was completed prior to the audit Surface Water BMC will ensure all water runoff from the disturbed areas within the Survey Area during construction is treated for sediment with temporary sediment structures designed for this purpose. This was completed prior to the audit A potable quality water supply will be required during the construction of the Bengalla Link Road Stage 2, largely for dust suppression purposes. This will be sourced from either local farm dams on BMC owned land, the Bengalla Hunter River raw water dam at Bengalla or from the Muswellbrook potable water supply. This was completed prior to the audit The development of the Construction Management Plan will address any required surface water and erosion controls required during the construction of the Bengalla This was completed prior to the audit Link Road Stage The management of construction activities in accordance with the CNA EMS and the additional mitigation and management measures described above will ensure minimal adverse impacts occur to the surrounding natural water resources. This was completed prior to the audit EA 2008 (Mod 3) Page 5

210 Audit Protocol: EA ROM Hopper Relocation Acoustics In order to minimise the potential adverse acoustics impacts on the sensitive receivers to the east of Bengalla during the deferral period, BMC will limit its maximum production rate to 8.7 Mtpa as originally approved in DA 211/93. This was completed prior to the audit Additionally as committed to in the Bengalla SEE, no active dumping and other operations in exposed locations will be undertaken during adverse weather conditions, where noise may be exacerbated towards receivers. Interviews with Bengalla staff and a review of the RTEMS installed at the site by the auditors confirmed that the site continues to be operated in this manner Visual and Lighting BMC will continue visual screening works during 2008 for those non-mine owned receivers that were predicted to receive high visual impacts as described in the Bengalla SEE. This was completed prior to the audit This includes the proposed works to mitigate the visual impacts on the heritage listed Edinglassie and Rous Lench Homesteads, consistent with the approved Landscape Management Plan. This was observed by the auditors during the site visit Additionally, the expeditious completion of rehabilitation of the OEA will continue to occur as areas become available. Interviews with Bengalla staff, a review of site records and the site inspection undertaken by the auditors confirmed that this rehabilitation program continues to be undertaken based on seasonal conditions and mining operations. EA 2008 (Mod 3) Page 6

211 AECOM Independent Environmental Audit Appendix J Audit Protocol: Wantana Extension: Statement of Environmental Effects (Hansen Bailey, 2007) Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

212 AECOM Independent Environmental Audit j-1 Appendix J Audit Protocol: Wantana Extension: Statement of Environmental Effects (Hansen Bailey, 2007) Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

213 Audit Protocol: SEE 2007 Reference Requirement Evidence Audit Finding Wantana Extension - Statement of Environmental Effects 2.0 EXISTING OPERATIONS 2.6 Environmental Management System 2.6 The operation will Continue to be managed in accordance with the ISO accredited EMS as described in the Bengalla SEE and this SEE Environmental Monitoring at Bengalla will continue to be undertaken generally in accordance with the approved Bengalla EMP The auditors undertook a review of the Environmental Management Strategy (Bengalla, January 2013), and found the site to be generally in compliance with this strategy. The auditors undertook a review of the Bengalla Mining Company Pty Limited - Environmental Management Program (Bengalla, August 2010), and found the site to be generally in compliance with that program. 3.0 THE MODIFICATION 3.2 Wantana Extension The Wantana Extension covers a 32 ha coal extraction area on the escarpment of the Hunter River floodplain. No coal extraction is proposed on the floodplain The mine plan is to be in accordance with the Guidelines for the Management of This was observed by the auditors during the Stream/Aquifer Systems in Coal Mining Developments (DIPNR, 2005), and designed site visit. so that a 150 m barrier zone remains in place from the point of the defined edge of the alluvium to the point on the coal extraction highwall at 2 m above the long-term average groundwater level in the adjacent alluvium aquifer A haul road and associated water management infrastructure is proposed to be constructed within this barrier zone, well above the 1:100 year Average Recurrence Interval (ARI) flood level. This was observed by the auditors during the site visit A reserve of approximately 7.5 Mt ROM coal has been identified within the Wantana Extension, which BMC proposes to mine at a production rate of up to 1.5 Mtpa. Mining of the Wantana Extension will not increase BMC s approved production rate of up to 10.7 Mtpa Mining operations will continue to progress towards the west as outlined in the Bengalla EIS and Bengalla SEE; however, the rate of stripping to the west will slow due to mining of the Wantana Extension BMC does not intend to mine the upper coal seam (Warkworth seam) or the lower coal seam (Edderton seam) in the Wantana Extension Mining of the Wantana Extension is proposed to be undertaken over an approximate five year Prior to the commencement of mining, all existing structures from previous dairying activities will be demolished. The demolition works will be undertaken in accordance with Australian Standard (AS) : The Demolition of Structures, or its latest version The powerline to be relocated around the Wantana Extension and across the rail line prior to mining commencing will be designed and constructed in consultation with Australian Rail Track Corporation (ARTC). SEE 2007 (Mod 2) Page 1

214 Audit Protocol: SEE Excavators operating in the Wantana Extension will operate using the overhand dig method to ensure equipment remains approximately 10 m below the natural surface, and to reduce impacts on neighbouring receivers Evidence provided to audit team verifying this method of use As illustrated in the 2010, 2012 and 2017 mine plans, the existing OEA will be extended into the Wantana Extension and will be progressively rehabilitated. Interviews with Bengalla staff, a review of site records and the site inspection undertaken by the auditors confirmed that this rehabilitation program continues to be undertaken based on seasonal conditions and mining operations As with the existing rehabilitated areas of the OEA, water drainage and sediment dams will also be constructed in the Wantana Extension. These will be designed to capture a 1:20 year ARI rainfall event. This was observed by the auditors during the site visit The construction of a surface water management bund will occur prior to the commencement of mining operations to ensure all dirty water is treated for suspended sediment prior to release from site. The surface water management bund will be constructed around the low point of the Wantana Extension to capture and direct run-off water from the catchment. This surface water structure will be constructed from subsoil material, capped with topsoil and established with grasses, with the subsoil materials sourced from areas proposed to be disturbed at Bengalla. This was observed by the auditors during the site visit Road closures will continue to be required on the Wybong Road for blasting activities at Bengalla. Additionally, the Wantana Extension will encroach within 500 m of the Benalla Link Road. BMC will conduct road closures of the Bengalla Link Road in accordance with the requirements of MSC, consistent with those currently undertaken for Wybong Road. Interviews with Bengalla staff and a review of site records confirmed that these road closures continue to take place as required. 3.3 Infrastructure Modifications As such, the Modification seeks approval for an additional 80 full-time, permanent employees which will increase the approved full-time permanent workforce up to 400. This requirement has now been superseded The Modification proposes the following changes to the existing administration and workshop facilities: Extension of various car parking areas to accommodate additional light vehicles; Extension to the office buildings in the vicinity of the workshop; Extension of the bathhouse facilities; Extension of the workshop with an additional two bays and boiler shop; Construction of a tyre change over bay and tyre storage area; Relocation of the heavy vehicle wash down bay and associated facilities; and Relocation of the light vehicle wash down bay and associated facilities As a result of these modifications, the hardstand area will be extended by approximately 2 ha to the north-west to ensure a safe area for heavy vehicles to manoeuvre Construction activities for the modifications to the administration and workshop facilities are planned to take approximately 12 months to complete. SEE 2007 (Mod 2) Page 2

215 Audit Protocol: SEE In-pit Facilities 3.4 BMC intends to relocate and upgrade an in-pit refuelling facility and associated infrastructure to the immediate west of the 21 year coal extraction limit and adjacent to the southern side of the existing haul road (Figure 5). The works will generally consist of the following: An in-pit fuelling facility consisting of: o A concrete refuelling pad; o Up to six steel tanks totalling 670,000 Litres capacity for diesel and other hydrocarbon lubricants housed within separate impermeable concrete bunds of 110% of the capacity of the largest storage vessel; and o Infrastructure for the treatment of surface run-off water. An access road for heavy mining equipment; A bio-remediation area for the treatment of hydrocarbon waste; Laydown areas; Facilities which will be consumed by mining activities and need to be relocated (including, but not limited to: water fill points, explosives magazine storage area, mobile crib huts and associated amenity facilities); and A powerline to provide power to the in-pit refuelling facility. 4.0 REGULATORY FRAMEWORK 4.4 Other Regulatory Requirements BMC holds Environmental Protection Licence (EPL) 6538 in respect to its currently approved mining operations. Should the Minister for Planning consider it appropriate to grant the Modification, a variation to the EPL 6538 may be sought under the POEO Act, as required The Bengalla MOP as required by the conditions of these Mining Leases will be updated as required to incorporate details of mining operations associated with the Modification. The updated MOP will be prepared and submitted to the DPI for approval. The Bengalla Mine Operations Plan MOP (1 January December 2015) (Bengalla) fulfils these requirements Division 3, Section 100 of the Coal Mines Health and Safety Act 2002 states that Ministerial approval must be obtained to establish an emplacement area where reject material is to be deposited or placed. BMC is currently applying for Ministerial approval for rejects emplacement in the OEA, co-disposal in-pit, and tailings drying areas. 5.0 STAKEHOLDER CONSULTATION 5.5 Ongoing Consultation 5.5 Consultation will continue to occur between BMC and its neighbours throughout the life of Bengalla through: The BMCCC; External Reporting (AEMR, newsletters); Open days and general community sponsored day events; and Ongoing offer of face to face discussions with any interested stakeholders. The auditors viewed the Bengalla CCC newsletters and the Coal & Allied Community newsletters have continued to be sent. The auditors viewed copies of CCC meeting minutes indicating that the CCC has been meeting at least twice per year during the audit Bengalla continues to run open days and the Coal & Allied shopfront continues. The Rio Tinto Coal Australia website continues to be the site through which Bengalla's information is published. The auditors also viewed evidence of the site's reporting of environmental incidents and potential incidents. SEE 2007 (Mod 2) Page 3

216 Audit Protocol: SEE IMPACTS, MANAGEMENT AND MITIGATIONS 6.1 Air Quality Air quality at Bengalla is managed in accordance with DA 211/93 (M1), the Bengalla Environmental Monitoring Program (EMP) and CNA EMS ES 8 Air Quality Management and relevant Eps Based on the conclusions of this assessment, there will be no noticeable increase in air quality impacts to receivers as a result of the Modification, when compared to the currently approved Bengalla. No additional management or mitigation measures are required in relation to the management of air quality for the Modification. The auditors undertook a review of the Bengalla Mining Company Pty Limited Air Quality and Greenhouse Gas Management Plan (Bengalla, November 2011), and found these conditions to have generally been complied with. 6.2 Acoustics Acoustics at Bengalla is managed in accordance with DA 211/93 (M1), the Bengalla EMP and associated CNA EMS ES 9 Noise and Vibration Control and EP 9.1 Noise Additional and continued management techniques to be employed at Bengalla as a result of the modification will include: The auditors undertook a review of the Bengalla Mining Company Pty Limited Noise Management Plan (Bengalla, August 2013), and found these requirements to have generally been complied with Dragline operators will continue to avoid potentially noisy situations, particularly with the dragline at the end of the open-cut and at night-time, to avoid disturbance to receivers and residents and minimise the chance of exceeding sleep disturbance criterion; Interviews with Bengalla staff confirmed that nightly visual and noise assessments are undertaken at three locations throughout the site to assess lighting and noise impacts are captured The initial construction activities proposed by the Modification will be undertaken during day-time hours only, and will cease as required during noise enhancing weather conditions (towards eastern and southern receivers); Initial mining activities within 10 m of the natural surface in the Wantana Extension will utilise the overhand dig method to minimise adverse impacts on sensitive receivers; and Topsoil stripping activities and other operations within exposed locations in the Wantana Extension will occur during day-time hours only and in noise-reducing conditions to negate any potential noise impacts on receivers. 6.3 Blasting Blasting activities at Bengalla are managed in accordance with DA 211/93 (M1), the The auditors undertook a review of the Bengalla EMP and associated CNA EMS ES 9 Noise and Vibration Control and EP Bengalla Mining Company Pty Limited Blast 9.2 Blasting Management Plan (Bengalla, April 2013), and generally found these conditions to have been complied with Additional management measures specific to the Modification include: The procedure for blasting in the vicinity of the rail line will be updated in close consultation with ARTC; During the site visit the auditors viewed copies of a Blasting Deed that Bengalla has entered into with ARTC dated 6 April Where blasting activities are to occur within 500 m of the Bengalla Link Road, appropriate consultation will be undertaken with MSC for the closure of the road during blasting; and A deed exists with Muswellbrook Shire Council to managed these issues Where blasting activities are to be carried out in the Wantana Extension in the close vicinity to the barrier zone, blasts will be designed to ensure minimal impact on the strata in this area. This is managed as per the Bengalla Mining Company Pty Limited Blast Management Plan (Bengalla, April 2013), the Bengalla Mining Company Post Blast Fume Generation Mitigation and Management Plan (Bengalla, 2007) and the Post Blast Fume Generation Mitigation and Management Plan (2012) which fulfils these requirements. SEE 2007 (Mod 2) Page 4

217 Audit Protocol: SEE Groundwater Seven bores located on non-mine owned properties listed in Table 19 are within the cone of depression and hence may be potentially impacted by a reduction in groundwater levels. The non-mine owned properties in which all of these bores are situated will be directly impacted by MTP when operations commence. If the registered bores are identified to be actively utilised, BMC will implement a monitoring program of water levels and quality in these bores so that potential impacts can be monitored. The Bengalla Mining Company Pty Limited Water Management Plan (Bengalla, September 2012), and the Bengalla Mining Company Pty Limited - Environmental Management Program (Bengalla, August 2010) fulfil these requirements Groundwater at Bengalla is managed in accordance with DA 211/93 (M1), the Bengalla EMP, the Bengalla Water Management Plan and associated CNA EMS ES 7 Water Management, and EP 7.1 Water Management The auditors undertook a review of the Bengalla Mining Company Pty Limited Water Management Plan (Bengalla, September 2012), and found these requirements to have generally been complied with. Both the Water Management Plan and EMP will be updated to incorporate, as relevant: The Bengalla Mining Company Pty Limited Water Management Plan (Bengalla, September 2012), and the Bengalla Mining Company Pty Limited - Environmental Management Program (Bengalla, August 2010) fulfil these requirements. The installation of additional monitoring piezometers prior to mining operations consuming existing bores; Installation of a replacement for groundwater bore I7; Installation of additional alluvial bores on the Hunter River floodplain adjacent to the Wantana Extension; and Increasing the frequency of monitoring of the Wantana bores to monthly during mining operations in the Wantana Extension BMC will conduct a census of the bores listed in Table 19 to ascertain the status of the non-mine owned bores to provide baseline data against which the potential impacts of the Modification will be monitored Landowners will be provided an alternative comparable water supply if levels are shown to decline as a result of the operations at Bengalla (including the Modification) and prevent the ongoing use of any bore for the purpose and quantities for which it was utilised as at June Surface water Pit water may have elevated salinity levels; however, all pit water will be contained within the mine water management system and re-used at Bengalla. Bengalla largely operates under a closed water system. HRSTS water is the only water discharged from the site. This system is managed onsite with bunds, catchment drains and sediment drains have bunds The proposed construction of a surface water management bund will provide at least 5 m freeboard between the natural surface at the southern perimeter of the Modification and the adopted 1:100 year flood level of the adjacent Hunter River. During the site visit the auditors viewed flood mapping showing that this is outside the floodplain. Interviews with Bengalla staff confirmed that the freeboard is more than 5m taller than the 1:100m level No final voids are proposed in the Wantana Extension following the completion of mining. All areas of the Wantana Extension OEA will be rehabilitated as soon as practically possible. Interviews with Bengalla staff, a review of site records and the site inspection undertaken by the auditors confirmed that this rehabilitation program continues to be undertaken based on seasonal conditions and mining operations The OEA will be left in a free draining state with the exception of three sediment control basins which will remain along the southern boundary of the Wantana Extension until vegetation is fully established. One of these dams has since been mined over in the SOEA, but the remaining dams continue to be managed in this manner. SEE 2007 (Mod 2) Page 5

218 Audit Protocol: SEE Surface water at Bengalla is managed in accordance with DA 211/93 (M1), the Bengalla EMP, the Bengalla Water Management Plan and associated CNA EMS ES 7 Water Management, EP 7.1 Water Management and EP 7.2 Water Discharge The auditors undertook a review of the Bengalla Mining Company Pty Limited Water Management Plan (Bengalla, September 2012), and found these requirements to have generally been complied with Water from all disturbed areas will continue to be collected in drainage structures and sediment dams and either recycled in the mine water management system or allowed to leave site following treatment of suspended solids. Bengalla largely operates under a closed water system. HRSTS water is the only water discharged from the site. This system is managed onsite with bunds, catchment drains and sediment drains have bunds. At the staged discharge dam there is also a diversion dam No further management measures to those currently in place are required as a result of the Modification. 6.6 Visual and Lighting Visual and lighting impacts will continue to be managed in accordance with the CNA EMS and the CNA EMS ES 10 Land Management and EP 10.1 Visual Management Lighting will continue to be oriented away from private receivers and directed towards the ground and work areas to reduce adverse impacts on surrounding neighbours. This was observed by the auditors during the site visit The expeditious completion of rehabilitation of the OEA, with priority given to the east and south-eastern faces of the Wantana Extension OEA, will continue to occur. This will allow the highly sensitive receivers in Muswellbrook and Racecourse Area to experience reduced visual impact from Bengalla (including the Modification). 6.7 Soils and Landscape Land management activities for the Modification will continue to be conducted in accordance with the Rehabilitation and Landscape Management Plan, Land The auditors undertook a review of the Bengalla Mining Company Pty Limited Management Plan, the CNA EMS, ES 5 Rehabilitation and EP 5.1 Rehabilitation. Landscape Management Plan (Bengalla, No further management measures are required as a result of the Modification. April 2013), and found these requirements to have generally been complied with. 6.8 Flora and Fauna Flora and fauna at Bengalla is managed in accordance The auditors undertook a review of the with DA 211/93 (M1), the Rehabilitation and Landscape Management Plan, the Land Bengalla Mining Company Pty Limited Management Plan and the CNA EMS ES 5 Rehabilitation, ES 10 Land Management, EP 5.1 Rehabilitation and EP 10.2 Flora and Fauna Rehabilitation Management Plan (Bengalla, April 2013), and found these conditions to have been generally complied with Should any activities be undertaken in accordance with SEPP (Mining) for which development consent is not required, an appropriately qualified person will perform a relevant survey if the proposed activities are outside of the 21 year mine disturbance boundary. Should any flora or fauna be discovered listed under the TSC Act or EPBC Act, work will cease and consultation will occur with DECC and the DEWR, as necessary. This is managed as per the Ground Disturbance Permit system for the site. 6.9 Aboriginal Archaeology Aboriginal Cultural Heritage at Bengalla is managed in accordance with the Aboriginal Cultural Heritage Management Plan and CNA EMS ES 2 Environmental, Social and Cultural Impact Management and EP 2.1 Cultural Heritage Management The auditors undertook a review of the Aboriginal Cultural Heritage Management Plan (Hansen Bailey, September 2012), and found these requirements to have generally been complied with. SEE 2007 (Mod 2) Page 6

219 Audit Protocol: SEE Should any activities be undertaken in accordance with SEPP (Mining) for which development consent is not required, an appropriately qualified person will perform a relevant survey if the proposed activities are outside of the 21 year mine disturbance boundary. Should any artefacts be discovered, work will cease and consultation will occur with DECC and the Aboriginal Community. This is managed as per the Ground Disturbance Permit system for the site European Heritage European heritage at Bengalla is managed in accordance with the European Heritage Management Plan and CNA EMS ES 2 Environmental, Social and Cultural Impact Management and EP 2.1 Cultural Heritage Management No further management measures in relation to European heritage are required as a result of the Modification Socio-Economics No economic mitigation or management measures are required as a result of the Modification Traffic The Modification will not result in any adverse traffic impacts on the public road network providing access to Bengalla, and as such no mitigation measures are required. SEE 2007 (Mod 2) Page 7

220 AECOM Independent Environmental Audit 8 This page has been left blank intentionally. Revision B Prepared for Bengalla Mining Company Pty Limited ABN:

221 AECOM Independent Environmental Audit Appendix K Audit Protocol: Statement of Environmental Effects Modifications to Mining Operations (Hansen Consulting, 2006) Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

222 AECOM Independent Environmental Audit k-1 Appendix K Audit Protocol: Statement of Environmental Effects Modifications to Mining Operations (Hansen Consulting, 2006) Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

223 Audit Protocol: SEE 2006 Reference Requirement Evidence Audit Finding Statement of Environmental Effects - Modifications to Mining Operations 2.0 MINE PLAN MODIFICATION 2.1 Introduction The modifications sought to the approved mine plan include: The relocation of the overland conveyor, ROM hopper and associated emergency coal stockpile; These works were undertaken as required, but this occurred outside of the current audit 2.1 Modifications to the CHPP to facilitate two-stage washing and an extension of the ROM and product coal stockpiles; These works were undertaken as required, but this system has also since been superseded. The construction of two permanent tailings drying areas for the placement of tailings on a temporary basis; and These works were never actually undertaken, despite Bengalla obtaining approval for them. Increasing the maximum allowable annual production levels from 8.7 to 10.7 Mtpa ROM coal. During the audit period this is reported in the AEMRs as being 6.7 Mt in 2010, 7 Mt in 2011 and 8.4 in Increase in Final Landform Height BMC propose to increase the final rehabilitated landform height by 30 metres at its highest point as the mine moves further to the West. This will create an increase in the final height of the OEA and allow Bengalla to construct a more undulating, free-draining final landform. This requirement has now been superseded A temporary steepening of overburden emplacement in the North of the pit may also be required after This temporary steepening will be reshaped to a 10 slope by This requirement has now been superseded A temporary out of pit OEA may also need to be constructed ahead of mining within the current development consent boundary. If required, it will be rehandled after approximately three to four years and placed back into the OEA to be incorporated into the final landform. This requirement has now been superseded ROM Hopper and Emergency Coal Stockpile Relocation The Proposal includes the construction and operation of a new concrete-lined steel ROM hopper adjacent to the existing Bengalla CHPP It will have the effect of relocating operational activities associated with the ROM hopper from the East of the mine to the South-west, further away from Muswellbrook. This will allow the centre ramp area and the Southern internal haul road to be in-filled and rehabilitated. The entire Eastern face of the mine will subsequently be rehabilitated by The new ROM hopper design will be similar to the existing ROM hopper design and will include a hood to assist in controlling noise and dust In addition, the concrete lining of the new ROM hopper will assist in further reducing noise. Automatic water sprays will be utilised at both the ROM hopper and emergency ROM coal stockpile to reduce dust CHPP Upgrade Conversion of the existing Bengalla CHPP from a single-product plant to a two product operation The additional coal separation equipment will be located inside the existing CHPP building and within extensions of the existing CHPP. SEE 2006 (Mod 1) Page 1

224 Audit Protocol: SEE Much of the existing separation equipment will be reused with no additional height required to existing infrastructure The proposed increase in coal handling ability will lead to a requirement for extra coal storage. To facilitate this, it is proposed to extend the current clean coal stockpiles, stacker rails and conveyors to the West. Similarly, the rail-loader reclaim rails and conveyor will be extended, along with the addition of a surge bin with associated feeders and conveyors It is also proposed that each coal stockpile be extended approximately 300 metres to the West to facilitate the storage of an additional 335,000 tonnes of coal These extensions will necessitate the excavation of a significant volume of earth. This cut material will be utilised to extend the South-western edge of the existing visual bund to the West of the CHPP, adjacent to the Bengalla Link Road The modifications to the CHPP will require earthworks, concreting work and erection of structures. The majority of the required additional mechanical equipment will be fabricated and assembled offsite Tailings Drying Areas Construction of two tailings drying areas, one immediately North of the existing ROM stockpiles within the CHPP area and one to the North-west of the administration and workshop Wet tailings will be pumped via a pipeline from the CHPP into the drying cells. Once dry, tailings will be relocated to the pit for disposal with overburden material, as is currently undertaken Saline water collected in the tailings drying areas will be decanted and returned for reuse throughout Bengalla Increase in Production To achieve the production levels applied for, it has been determined that Bengalla will require two additional trucks, five dozers, one watercart and two graders This requirement has now been superseded. 6.0 ENVIRONMENTAL MANAGEMENT AND MITIGATIONS 6.1 Environmental Management System Environment Policy Copies of the policy are included in public documents such as the AEMR and the CNA Operations Social and Environmental Report The Environment Policy is reviewed for its continuing appropriateness and applicability during the annual management review of the EMS. The auditors confirmed that the management of the Bengalla site, as per the Environmental Management Strategy (Bengalla, January 2013) is reviewed each as part of a management review of environmental performance. Incidents and improvement plans are reviewed each quarter with the annual review confirming follow up has been undertaken Management Plans The EMS incorporates a number of environmental management plans, to assist in meeting community and regulatory expectations. Bengalla operates under a number of development consent required management plans. Management plans include Water, Noise, Air Quality, Land, Construction Landscape, Aboriginal Archaeology and Cultural Heritage, and European Heritage SEE 2006 (Mod 1) Page 2

225 Audit Protocol: SEE Standards Procedures The site performance against each standard is measured by auditing. Changes to standards can be approved only by the Operations Committee. There are 13 standards associated with the EMS There are 30 procedures associated with the EMS. Procedures provide details of operation and maintenance of facilities, along with equipment and machinery to achieve the requirements of the standards. Contractors and suppliers of goods and services are required to adhere to relevant environmental procedures. Interviews with Bengalla staff confirmed that task specific training is provided on an asneeds basis, e.g. for contractors working on drainage works where heritage may be an issue. Most Bengalla personnel only receive the generic environmental training unless specific training is warranted Approvals and Licences An independent regulatory compliance audit is undertaken bi-annually to ensure compliance with conditions of approvals and licences. This requirement has now been superseded Compliance against relevant environmental acts and regulations is assessed progressively as part of the internal environmental audits and as part of the independent regulatory compliance audit. The auditors confirmed that the management of the Bengalla site, as per the Environmental Management Strategy (Bengalla, January 2013) is reviewed each as part of a management review of environmental performance. Incidents and improvement plans are reviewed each quarter with the annual review confirming follow up has been undertaken. The current IEA also satisfies these requirements Environmental Aspects and Impacts All significant aspects (identified with a high environmental risk) are reviewed at the annual management review of the EMS Objectives and Targets Bengalla's environmental risk register was recently reviewed. The EMS is internally audited annually, and externally audited every two years Progressive performance against targets is communicated as part of the Environmental Specialist s monthly environmental report to site. Interviews with Bengalla staff confirmed that this is included in the overall monthly internal environmental reporting CNA s objectives and targets are consistent with the Environment Policy. They incorporate legal requirements, the management of significant environmental impacts, the views of the community, the mine s technological options and its operational and business requirements Objectives and targets are reviewed and modified as part of the annual management review of the EMS. During the site visit the auditors viewed records of monthly reporting against progressive performance requirements Environmental Management Programs Environmental Management Programs (EMP's) document the practical means to achieve the mine s environmental objectives and targets by the accomplishment of identified environmental improvements. The programs are updated annually at the annual management review, prior to budget planning. The auditors observed the document control systems Bengalla has in place to review these plans annually. SEE 2006 (Mod 1) Page 3

226 Audit Protocol: SEE Environmental Audits Bengalla undertake or is subject to a variety of environmental audits including: Regular internal environmental audits which are undertaken four times per year; Incidents and improvement plans are reviewed each quarter with the annual review confirming follow up has been undertaken. Any necessary actions are also managed through Lotus notes and are thereby designated to the relevant persons Periodic external certification audits of the EMS to verify that it complies with ISO14001 undertaken bi-annually; This has now been superseded with the requirement to conduct this review once a year. These annual reviews were undertaken during the audit period as reported in section 1.5 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012). A combined bi-annual compliance audit against approval conditions and RTCA s expectations; This requirement has now been superseded. DoP audits at five yearly intervals as per requirements of development consent, undertaken at the same time as the compliance audit; and The current IEA satisfies these requirements. Other audits by statutory authorities (DPI annual audit of rehabilitation), announced or unannounced audits by regulators Corrective Action Register Non-conformances from internal environmental audits, compliance audits, periodical audits of the EMS against ISO 14001, departmental inspections, observations and other sources are placed on the Corrective Action Register (CAR). The CAR is managed on a database and details what corrective or preventive action is required, the environmental risk, responsibility for action, target date for completion and closing comments. All policies and procedures for the site are maintained on Lotus notes to trigger review dates. A management review is undertaken each year to review the environmental performance of the site. Incidents and improvement plans are reviewed each quarter with the annual review confirming follow up has been undertaken. Any necessary actions are also managed through Lotus notes and are thereby designated to the relevant persons. Internal audits are also managed through Rio Tinto Coal Australia. Actions requiring higher priority can be entered into a global based system Management Reviews The auditors confirmed that the management of the Bengalla site, as per the Environmental Management Strategy (Bengalla, January The EMS is reviewed annually by the Environmental Specialist to determine its 2013) is reviewed each as part of a continuing suitability, adequacy and effectiveness. It includes an assessment of management review of environmental the appropriateness of the environmental policy, risk assessments, objectives and performance. Incidents and improvement plans targets, audit results, responsibilities and resources. are reviewed each quarter with the annual review confirming follow up has been undertaken Following the site reviews, a summary of outcomes is presented to the Operations Committee, for sign-off by the General Manager. Interviews with Bengalla staff confirmed that the site continues to be operated in this manner. SEE 2006 (Mod 1) Page 4

227 Audit Protocol: SEE Environmental News and Reports Bengalla is actively involved in communicating its environmental management initiatives to its staff, contractors, regulatory authorities, visitors and external interest groups. External communications include: Bengalla Community Consultative Committee; Newsletters; Annual Social and Environment Reports; Annual Environmental Management Report; Complaints management and environmental contact line; Visits to neighbours by mine personnel Bi-annual open days; Project Planning Process; RTCA internet site; Inspections by statutory authorities; and School links program. The auditors viewed the Bengalla CCC newsletters and the Coal & Allied Community newsletters have continued to be sent. The auditors viewed copies of CCC meeting minutes indicating that the CCC has been meeting at least twice per year during the audit Bengalla continues to run open days and the Coal & Allied shopfront continues. The Rio Tinto Coal Australia website continues to be the site through which Bengalla's information is published. The auditors also viewed evidence of the site's reporting of environmental incidents and potential incidents. During the site visit the auditors viewed copies of complaints records maintained at Bengalla, and confirmed that all of the relevant criteria are recorded Training Resources All mine personnel receive training in environmental awareness and the EMS as part of their induction and thereafter a refresher courses to provide updated information on changes to legislation and environmental management controls. Interviews with Bengalla staff confirmed that all staff have position descriptions which are updated and reviewed on an annual basis. The Emergency Response Plan and the Environmental Pollution Incident Response Management Plan also explain who is responsible. This generic environmental awareness training was viewed by the auditors. Bengalla employees also go through a further environmental training process. Lotus notes records the three yearly training updates Specific training based upon environmental issues and summarising the relevant content of procedures is provided on a regular basis, in toolbox talk format and with training records maintained. Interviews with Bengalla staff confirmed that these issues are addressed during the monthly meetings, which include an environmental agenda so that new updates to environmental laws/procedures/risks can be discussed Contractors are required to ensure that their workforce has been trained and meet the requirements of the EMS which is facilitated through induction and toolbox talks. 6.2 Environmental Monitoring and Mitigation Air Quality Spraying recycled mine water using a fleet of water carts on trafficked haul roads; This was observed by the auditors during the site visit Operation of dust suppression equipment on drills used within the mine site; Interviews with Bengalla staff confirmed that drill rigs are equipped as such Rehabilitation of disturbed areas as soon as practicable to minimise the generation of wind eroded dust; Interviews with Bengalla staff, a review of site records and the site inspection undertaken by the auditors confirmed that this rehabilitation program continues to be undertaken based on seasonal conditions and mining operations. Compliant SEE 2006 (Mod 1) Page 5

228 Audit Protocol: SEE Operation of automatic water sprays on coal stockpile areas so that the stockpiles are sprayed when the wind speed from any direction exceeds 5.6 m/s; This system is installed and was observed by the auditors during the site visit Enclosed ROM hopper with automatic water sprays; This system is installed and was observed by the auditors during the site visit Utilisation of an additional contractor s water cart during the drier summer periods particularly on drill patterns where fine drill cuttings are concentrated; Interviews with Bengalla staff confirmed that drilling operations are undertaken in this manner Progressive infilling of the centre ramp reducing the windblown vortex effect towards Muswellbrook; These rehabilitation works were observed by the auditors during the site visit Operating restrictions enforced on primary mining equipment when wind speeds exceed 10 m/s over an average hourly period or in the event of dust leaving the DA boundary; Interviews with Bengalla staff and observations of the site's real-time meteorological monitoring equipment confirmed that the site continues to be operated in this manner Blasting constraints configured to Bengalla s real time meteorological and temperature inversion stations; Interviews with Bengalla staff and observations of the site's real-time meteorological monitoring equipment confirmed that the site continues to be operated in this manner Bitumen sealing of frequently travelled roads within the CHPP; This was observed by the auditors during the site visit Changes in haul road configuration where practical to reduce dust; Interviews with Bengalla staff confirmed that the site continues to be operated in this manner Fully enclosed coal conveyor systems; and This was observed by the auditors during the site visit Training in dust control and dust management activities for Bengalla s employees and contractors. The auditors confirmed that this is contained within the site's generic environmental induction training package. SEE 2006 (Mod 1) Page 6

229 Audit Protocol: SEE Section of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Dust monitoring at Bengalla is undertaken at the locations shown on Figure 10 Bengalla Mining Company Pty Limited Annual utilising the following monitoring equipment: Environmental Management Report and Four High Volume Air Samplers (TSP); Annual Review 2011 (Bengalla, March 2012), Two PM10 Air Samplers; and section of Bengalla Mining Company 29 Depositional Dust Gauges; and Annual Environmental Management Report Four GRIMM monitors linked to the Real Time Environmental Monitoring System and Annual Review 2012 (Bengalla, March (RTEMS). 2013) confirms that this monitoring continued to take place during the audit The Bengalla Air Quality Management Plan will be revised and updated to reflect relevant changes stated in the SEE in consultation with DEC and to the approval by DoP. Following the approval, the relevant EMS standards and procedures will also be updated. While the update referred to here is likely to have occurred outside of the current audit period, the auditors did see the review history of this plan, and found it to have been updated several times during the audit Additionally, to manage impacts to the North-west of the operation, one PM10 and one Total Suspended Particulates (TSP) monitor will be additionally installed to the North-west of Bengalla, adjacent to a privately owned residence, the location of which is to be agreed with DEC. This has occurred outside of the audit Meteorological A Real-Time Meteorological Station has been in operation on the Overton Ridge since Data is relayed through a telemetry system into the mines RTEMS recording: Wind speed and direction; Temperature; Rainfall; Evaporation (by calculation); Relative humidity; and Solar radiation. Section of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and section 4.1 of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) confirm that these parameters continue to be monitored Additional to the Meteorological Station, Bengalla operates an Inversion Tower situated on the floodplain to the South of the mining lease. This was observed by the auditors during the site visit Noise No active dumping and operating in exposed locations during adverse weather conditions, where noise may be exacerbated towards receptors; Interviews with Bengalla staff and a review of the RTEMS installed at the site by the auditors confirmed that the site continues to be operated in this manner Extension of noise and visual bunds to the South of the active mining operation and East of the CHPP; These bunds were observed by the auditors during the site visit. SEE 2006 (Mod 1) Page 7

230 Audit Protocol: SEE Comply with stringent equipment sound power level requirements on BMC-owned mobile equipment as modelled; Sound power tests are undertaken annually at Bengalla by an external noise consultant (e.g. Bengalla Mining Company: Mobile Plant Sound Power Survey 2012 (Global Acoustics, January 2013) Noise attenuation fitted to all BMC mobile equipment and some fixed plant including pumps and lighting sets; During the site visit the auditors viewed the maintenance planning system which Bengalla has in place to ensure that its plant and equipment undergo preventative maintenance, including noise attenuation as required Regular preventative maintenance of all mobile equipment; During the site visit the auditors viewed the maintenance planning system which Bengalla has in place to ensure that its plant and equipment undergo preventative maintenance, as well as maintenance when repairs are required. The auditors also viewed plant being repaired in the workshop as required Noise attenuation fitted and concrete primary construction of the relocated ROM hopper along with procedural requirements for the loading of this bin at nighttime; This was observed by the auditors during the site visit. Bengalla's ROM Hopper has also been nominated for an award based on environmental design (including noise) Rigorous mine planning for the scheduling and siting of active OEA and haul roads away from Muswellbrook during night-time operations; Interviews with Bengalla staff confirmed that the site continues to be operated in this manner Regular independent noise monitoring surveys undertaken on all pieces of plant and mobile equipment; Sound power tests are undertaken annually at Bengalla by an external noise consultant (e.g. Bengalla Mining Company: Mobile Plant Sound Power Survey 2012 (Global Acoustics, January 2013) Night-time operator attended surveys undertaken at relevant locations after 10 pm (as required) to ensure compliance with noise conditions; Interviews with Bengalla staff confirmed that nightly visual and noise assessments are undertaken at three locations throughout the site to assess lighting and noise impacts. are captured Independent fortnightly surveys occurring throughout winter, when the operation is prone to temperature inversions and the subsequent enhancement of noise levels; This was undertaken during the audit period, as reported in section of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and in section of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013). SEE 2006 (Mod 1) Page 8

231 Audit Protocol: SEE Regular interrogation of the RTEMS as required; and Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that the site continues to be operated in this manner Ongoing noise awareness training provided to all CHPP and production crews. This is included in the generic Bengalla environment induction. More specific training is provided to other personnel as required Noise monitoring at Bengalla is undertaken at the locations shown on Figure 10. Environmental noise level assessments are undertaken four times per annum over a continuous 72 hour period to ensure compliance with Bengalla s licence and consent conditions. Noise monitoring consultation undertook quarterly surveys at Bengalla during the audit period, as outlined in section 3.12 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and section of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) Mobile plant equipment is surveyed every six months and the overland conveyor is surveyed quarterly. This has been superseded by annual monitoring of sound power levels (e.g. the Bengalla Mining Company: Mobile Plant Sound Power Survey 2012 (Global Acoustics, January 2013)) Regular fortnightly surveys are conducted at night during the winter periods at the Racecourse and other areas of concern, due to the increased effect of temperature inversions in winter. This was undertaken during the audit period, as reported in section of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and in section of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) The Bengalla Noise Management Plan will be revised and updated to reflect relevant changes stated in the SEE in consultation with DEC and approval by DoP. Following the approval, the relevant EMS standards and procedures will also be updated. SEE 2006 (Mod 1) Page 9

232 Audit Protocol: SEE Additionally, to manage impacts to the West of the operation, quarterly attended noise monitoring will be required to be undertaken adjacent to a privately owned residence, the location of which will be agreed with DEC. Noise monitoring consultation undertook quarterly surveys at these locations during the audit period, as outlined in section 3.12 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and section of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) Blasting Designing the blast to minimise the MIC while achieving the desired degree of fragmentation; This is managed as per the Bengalla Mining Company Post Blast Fume Generation Mitigation and Management Plan (Bengalla, 2007) Ensuring strict control of drill hole spacing and orientation; This is managed as per the Bengalla Mining Company Post Blast Fume Generation Mitigation and Management Plan (Bengalla, 2007) Adequate stemming of holes and the use of Nonel cord to reduce overpressure; and This is managed as per the Bengalla Mining Company Post Blast Fume Generation Mitigation and Management Plan (Bengalla, 2007) Delaying blasting if adverse weather conditions occur, such as unsuitably low cloud or large temperature inversions. This is managed as per the Bengalla Mining Company Pty Limited Blast Management Plan (Bengalla, April 2013) Blast monitoring units are installed at 10 locations surrounding Bengalla (Figure 10). An additional mobile unit operates as an early warning unit by alarming all fixed units of impending overpressure and ground vibration. This monitoring continues to be undertaken at Bengalla Aboriginal Heritage Aboriginal archaeological sites that have been identified are protected by fencing and signage to prevent disturbance. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that the site continues to be operated in this manner Where sites are required to be destroyed, a Section 90 Consent to Destroy application is made A review of signage and fencing is completed annually for archaeological sites which have do not have a Section 90 Consent to Destroy issued. This was undertaken during the audit period, for instance as reported in section of the Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) SEE 2006 (Mod 1) Page 10

233 Audit Protocol: SEE The Aboriginal Archaeology and Cultural Heritage Management Plan will be revised and updated to reflect relevant changes stated in the SEE in consultation with DEC and approval by DoP All identified sites will be protected by fencing and managed until such time as a Section 90 Consent to Destroy is granted and the sites are salvaged; Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that the site continues to be operated in this manner A Section 90 Consent to Destroy permit with salvage will be sought prior to the disturbance of all identified sites; and The views of the Wonnarua People and WLALC will be sought on this SEE European Heritage A monthly grounds maintenance program is undertaken at the Bengalla Homestead to ensure lawns and gardens are kept neat and prevent excessive plant growth around the building. Restoration and maintenance works have been ongoing throughout the audit period, as reported in section 3.15 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and in section 4.11 of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) Flora and Fauna Site inspections of rehabilitated areas at Bengalla are carried out on a routine basis as required by the EMS Procedure EP 5.1 Rehabilitation. This is undertaken in the form of monthly walkover inspections (with completed inspection forms sighted by the auditors during the site visit). The Rehabilitation Audit Final - Eastern of overburden Dump (January, 2013) was also undertaken during the audit Any resulting actions are logged and tracked via Lotus Notes. Compliant The easement in which B. biloba occurs will be flagged and marked with appropriate signage to indicate to indicate the locality of the flora to ensure that it is not accidentally disturbed during future development of the Proposal area Visual Regular visual inspections are undertaken to identify and monitor tree screening effectiveness, lighting impacts and any other visual impacts of Bengalla to the locality of Muswellbrook and surrounding areas. Bengalla conduct nightly visual inspections of tree screening effectiveness. Annual visual survey is taken place as well to look into lighting impacts and tree screening effectiveness. SEE 2006 (Mod 1) Page 11

234 Audit Protocol: SEE The following specific ameliorative measures are to be undertaken to further reduce impacts on adjacent receivers: Extension of vegetated noise and visual bunds to the South of the active mining operation and to the West of the CHPP; These tree screens and bunds were observed by the auditors during the site visit Continuation of the development of relevant tree screens, specifically to the South of the operation, and West and North-west of the tailings drying areas; and These tree screens and bunds were observed by the auditors during the site visit Vegetation planting on private properties between Bengalla and the residence to reduce visual impact, where appropriate. This was observed by the auditors during the site visit Soils and Land Capability Site inspections of rehabilitated areas at Bengalla are carried out on a routine basis, with the primary aim to identify areas of erosion, areas that fail to achieve an adequate vegetation cover and the presence of weeds and feral animals. This is undertaken in the form of monthly walkover inspections (with completed inspection forms sighted by the auditors during the site visit). The Rehabilitation Audit Final - Eastern of overburden Dump (January, 2013) was also undertaken during the audit Any resulting actions are logged and tracked via Lotus Notes Surface Water Bengalla monitors surface water quality at four locations, both upstream and downstream of the mining operations along the Hunter River This monitoring continues to be undertaken at Bengalla Samples are collected and analysed monthly by an independent consultant and following extreme rainfall events (greater than 10 mm in any 24 hour period). This monitoring continues to be undertaken at Bengalla Surface water monitoring is also undertaken at three locations during and for five days following any regulated discharge events under the HRSTS. This requirement has now been superseded The Bengalla Water Management Plan will be revised and updated to reflect relevant changes stated in the SEE in consultation with DEC and approval by DoP. Following the approval, the relevant EMS standards and procedures will also be updated. SEE 2006 (Mod 1) Page 12

235 Audit Protocol: SEE Groundwater Standing water level and water quality is currently monitored at 21 groundwater monitoring locations surrounding the mine site This monitoring continued to be undertaken during the audit period, as reported in section of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and section of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) The sampling regime incorporates key groundwater wells that are monitored twice per annum with a full chemical analysis undertaken annually. This monitoring was undertaken during the audit period, as reported in section of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012) Monitoring of all other wells occurs annually for standing water, ph and electrical conductivity. This monitoring continued to be undertaken during the audit period, as reported in section of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and section of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) The results of Bengalla s groundwater monitoring program are reported annually in the Annual Environmental Management Report (AEMR). This was reported in section 3.6 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and section 4.8 of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013). SEE 2006 (Mod 1) Page 13

236 Audit Protocol: SEE The Bengalla Water Management Plan will be revised and updated to reflect relevant changes stated in the SEE in consultation with DEC, DNR and approval by DoP. Following the approval, the relevant EMS standards and procedures will also be updated The tailing drying areas will be lined with compacted clay to negate any impacts on the groundwater aquifers. This requirement has now been superseded All runoff will be diverted to Bengalla s mine water management system, and incorporated in a revised Water Management Plan. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that the site continues to be operated in this manner Mineral Waste Tailings material placed within the containment cells of the spoil will then be capped with a minimum of five metres of overburden material. The overburden is then re-profiled and rehabilitated. This is managed at Bengalla through the Acid Mine Drainage and Mineral Waste Management Plan (March 2007). Procedures are in place to ensure this occurs. Mine geologists plan for a 10 m buffer between reject material and final surface material Site inspections are carried out on a routine basis in accordance with relevant EMS standards and procedures. During the site visit the auditors viewed records of these site inspections The tailings drying areas will be clearly delineated, bounded by visual bunds This requirement has now been superseded. where appropriate and lined with compacted clay to negate any potential impacts The relevant EMS standards and procedures will also be updated. SEE 2006 (Mod 1) Page 14

237 AECOM Independent Environmental Audit Appendix L Audit Protocol: Bengalla Mine: Mine Operations Plan (Bengalla, 2013) Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

238 AECOM Independent Environmental Audit l-1 Appendix L Audit Protocol: Bengalla Mine: Mine Operations Plan (Bengalla, 2013) Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

239 Audit Protocol: MOP Reference Requirement Evidence Audit Finding Bengalla Mine Operations Plan MOP (1 January December 2015) (Bengalla) 1 Introduction 1.4 Stakeholder Consultation 1.4 There are a number of different groups which affect and are impacted by Bengalla s operations in the Muswellbrook area and these are identified and detailed in RTCA s Community and Stakeholder Engagement Tracking System (CSETS). 1.4 Regional and broader community relations programmes such as the Coal & Allied Community Development Fund, Corporate Partnership Programme, corporate donations and sponsorships, media liaison and stakeholder consultation are managed by Rio Tinto Coal Australia s External Relations Department. 1.4 The Rio Tinto Communities Standard sets out a framework for implementing the communities policy. This includes the Muswellbrook Community Relations Plan, which is reviewed regularly and updated annually 1.4 The Bengalla community relations strategy is currently being implemented across four key task areas of communication, consultation, community development and strategic relationships with stakeholders Community Consultative Committee Statutory Authorities Bengalla has a Community Consultative Committee (CCC) that monitors compliance with conditions of consent and provides a forum for important community discussion. The CCC is comprised of members from the community, with representatives from Bengalla, Muswellbrook Shire Council, and local community groups. Bengalla has also implemented a 24-hour environmental hotline for community issues relating to its operations. Bengalla has informed community members that they may contact the site at any time to lodge concerns or enquiries regarding its mining operations. A system has been established to ensure an appropriate Bengalla representative responds to any complaint lodged. This 24 telephone line continues to be maintained. It is advertised on the Bengalla website, in local newspapers and also in the CCC newsletter and Coal and Allied newsletters. During the site visit the auditors viewed copies of complaints records maintained at Bengalla, and confirmed that all of these criteria are recorded Bengalla has consulted with the DPI regarding the preparation and content of the original MOP and all amendments Consultation with other authorities has occurred during recent approval submissions and environmental assessments Aboriginal Groups Coal & Allied works closely with local Aboriginal people through professional engagement and consultation on cultural heritage management. During the audit period, this has been undertaken in relation to the most recent Continuation of Bengalla Mine Environmental Impact Statement (Hansen Bailey Bengalla, September 2013) Company employees also undergo training in Aboriginal cultural awareness. This is provided as per the generic environmental induction training provided to all Bengalla personnel, and which was viewed by the auditors The Rio Tinto Coal Australia Aboriginal Relations Unit (External Relations Department) has developed a Cultural Heritage Management System (CHMS) that applies across all Rio Tinto Coal Australia projects and operations in the Hunter Valley, including Bengalla A series of stakeholder consultation meetings and working group meetings have been conducted between Coal & Allied and representatives of the local Aboriginal community regarding the establishment of the Coal & Allied Aboriginal Development Fund (C&AADF). The C&AADF has been formed by Coal & Allied and representatives from the local Aboriginal community to provide funding for activities and projects that will benefit the Upper Hunter Aboriginal people Interviews with Bengalla staff and a review of budget documents by the auditors during the site visit confirmed that this fund continues to be maintained. MOP ( ) Page 1

240 Audit Protocol: MOP Stakeholder Expectations Bengalla will continue to engage and involve stakeholders to ensure an understanding of key expectations and concerns Rehabilitation and Post-Mining Landuse Rehabilitation plans and reports are prepared to satisfy the requirements of both Government Agencies and other relevant stakeholders. Interviews with Bengalla staff and a review of site documentation confirmed that the site continues to consult with its stakeholders as required. On 17 December 2012 Bengalla sought an extension for the submission of this plan until 31 January 2013, which was granted by DP&I. Bengalla submitted the draft plan to DP&I and DRE on 31 January DRE, DP&I, the EPA and NoW have subsequently confirmed with Bengalla that they are satisfied with the plan All rehabilitation will be undertaken in consultation with the DP&I and other relevant agencies. Section 1.7 of the Bengalla Mining Company Pty Limited Rehabilitation Management Plan (Bengalla, April 20130) sets out how a draft of this plan was provided to OEH, DP&I, NoW, Muswellbrook Shire Council, and the Bengalla CCC Security deposits usually in the form of a bank guarantee are lodged with the DPI to ensure that rehabilitation is undertaken. These deposits are progressively reviewed as areas are rehabilitated. During the site visit the auditors viewed correspondence showing that this security has been provided Objectives for Rehabilitation are integrated into early mine planning to ensure compatibility with site constraints, mining operations, conservation objectives, community expectations, pre-mining land use, final land use, drainage, stability, soils, erosion control and visual compatibility. Progressive rehabilitation works meeting these objectives were observed by the auditors during the site visit Rehabilitation designs for the final landform at Bengalla have been designed to follow the principles and strategies outlined in the DP&I Synoptic Plan: Integrated Landscapes for Coal Mine Rehabilitation in the Hunter Valley of New South Wales. This plan is currently being updated by the regulators. The rehabilitation works at Bengalla were generally observed to be in compliance with the relevant standards. 2 Proposed Mining Activities 2.1 Project Description Production and Waste Schedule The proposed material production schedules for Bengalla for the period covered by this MOP are shown below in Table 3: Production and Waste Schedule during MOP Term. These production figures are approximate and may increase or decrease depending on the approved mine plan at the time, but will not exceed the approved 10.7Mtpa Exploration and Geology Exploration Each year annual reports on coal exploration are completed and submitted to the NSW Department of Primary Industries / Minerals, separately for the Bengalla Group, AL13 and Auth 438. Each report includes exploration activities and associated expenditure undertaken within the previous 12 month reporting period and proposed exploration activities and expenditures for the following 12 month reporting period Exploration reports and submission s provided to auditors. MOP ( ) Page 2

241 Audit Protocol: MOP Bengalla will continue to conduct exploration drilling over the MOP term to further define the resource using diamond coring and open hole drilling. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that these works continue to be undertaken. 2.3 Land Preparation Land preparation for mining at Bengalla consists of both vegetation and topsoil removal for later use on post mining landform rehabilitation. Trees are stockpiled and used for native fauna habitats while topsoil is recovered and either used directly on re-shaped final landform or stockpiled for later rehabilitation. Areas to be prepared for mining are first identified in the mining plan and are then marked with survey pegs by the mine surveyor. During the site visit the auditors viewed copies of Ground Disturbance Permits used at Bengalla. The Ground Disturbance Permit system was found by the auditors to satisfy these requirements. During the site visit the auditors viewed copies of Ground Disturbance Permits used at Bengalla. The Ground Disturbance Permit system was found by the auditors to satisfy these requirements. During the site visit the auditors viewed copies A Ground Disturbance Permit (GDP) is completed and an inspection of the site is of Ground Disturbance Permits used at conducted which identifies vegetation to be removed and where topsoil need to be Bengalla. The Ground Disturbance Permit recovered and relocated. system was found by the auditors to satisfy these requirements. 2.3 Vegetation and topsoil clearing ahead of mining areas is kept to a minimum and is restricted to two strips width ahead of the active mining area. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that the site continues to be managed in this manner. 2.3 The Topsoil Management Guide for Bengalla Mine covers the importance of topsoil management, soil types, clearing, topsoil stripping and topsoil handling and stockpiling, and is available onsite Removal of Vegetation During the site visit the auditors viewed copies of Ground Disturbance Permits used at Bengalla. The Ground Disturbance Permit system was found by the auditors to satisfy these requirements All vegetation clearing is undertaken as a staged operation immediately in advance of mining operations. Vegetation clearing is in accordance with Coal & Allied Environmental Procedure Flora and Fauna. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that the site continues to be managed in this manner Pre-clearing surveys are undertaken prior to vegetation removal to identify reusable timber and important habitats. Habitat trees are also surveyed and marked to determine if fauna are using them. Any marked trees that show signs of current or recent use are reserved for latest possible removal to encourage fauna to abandon the area of their own accord Vegetation removal is undertaken in accordance with Coal & Allied Environmental Procedure 5.1 Disturbance and Rehabilitation. During the site visit the auditors viewed Ground Disturbance Permit 1204 and found it to contain this information Topsoil Stripping The depth of topsoil is stripped until clay or secondary horizons are observed by the operator. This was viewed by the auditors during the site visit to have been done in accordance with the Topsoil Management Guide for Bengalla Mine Whenever practical and to prevent dust generation, the topsoil is moistened but not saturated. This was viewed by the auditors during the site visit to have been done in accordance with the Topsoil Management Guide for Bengalla Mine. MOP ( ) Page 3

242 Audit Protocol: MOP Topsoil stripping is not undertaken when wind speeds are above 5.6 m/s or when there is the potential for windblown topsoil to dissipate across private residential areas. Interviews with Bengalla staff and observations of the site's real-time meteorological monitoring equipment confirmed that, when winds of 5.6 m/s occur, a warning alarm sounds. This is the trigger for no in pit and out of pit operations to be undertaken Where possible, topsoil is stripped and immediately moved to reshaped landform areas for spreading This was viewed by the auditors during the site visit to have been done in accordance with the Topsoil Management Guide for Bengalla Mine In the event that reshaped areas are not immediately available, topsoil is stockpiled within designated and surveyed areas either West of the active mining area or alongside unshaped areas on the overburden emplacement area ready to be pushed out once the overburden is shaped. Due to the similarity in the topsoil types identified within the mining lease area, the three different topsoil types are generally not segregated for re-use in separate areas, with the exception of the Black soils recovered from the Southern Overburden Emplacement Area (SOEA) which have been separated and will be used to rehabilitate to Class III land capability During the site visit the auditors viewed aerial mapping of stockpile locations on the site. During the site visit the auditors viewed the segregation of black soils Topsoil Stockpiles Bengalla aims to keep topsoil stockpiling to a minimum through rehabilitation of available final shaped landform as it becomes available. Where topsoil stockpiles are required, they are designed to maximise surface exposure to the atmosphere. Any topsoil stockpiled for greater than three months is revegetated using a preferred pasture seed mix. All topsoil stockpiles with a life expectancy of greater than 18 months will continue to be managed to ensure weed invasion is appropriately controlled and soil condition is maintained Topsoil Management over the MOP Term This was viewed by the auditors during the site visit. During the site visit the auditors viewed aerial mapping of stockpile locations on the site which maintains this information. Stockpiles were viewed by the auditors to be seeded and signposted. During the site visit the auditors viewed aerial mapping of stockpile locations on the site which maintains this information. Stockpiles were viewed by the auditors to be seeded and signposted As the mine advances west over the MOP period, existing topsoil stockpiles on the highwall side are required to be relocated to allow mining to progress. Options to relocate the stockpiles further west were investigated, though access to new sites, location of Dry Creek, and disturbing new ground outside of current mining areas were deemed unfavourable. Instead the stockpiles will be relocated to level areas in final position on the final surface of the OEA at the 270RL level and the 240RL south level. This will delay final rehabilitation although the long term stockpiles will be vegetated for temporary rehabilitation. This was observed by the auditors during the site visit. One on the western side of the has been removed to allow mining. Most were on the 270 level. 2.4 Mining Mine Equipment Bengalla s mobile equipment fleet currently incorporates modern technology and includes a dragline, loading units including excavators and loaders, a fleet of trucks, and other ancillary equipment including bulldozers, water carts, graders, drills, fuel/lube trucks, pumps, lighting plants, loaders, and various light vehicles and service vehicles. This equipment was viewed by the auditors during the site visit. The auditors viewed copies of sound power All Bengalla owned mining equipment has been modified to meet stringent noise level testing undertaken during the audit requirements to ensure Bengalla continues to meet consented noise limits criteria period, confirming that the site complies with at private residences. sound power levels. To minimize noise generation, the fitting and maintenance of specially designed noise attenuation equipment has ensured quieter operating equipment, most notably the P&H model 9020 dragline and haul truck fleet Mining over the MOP Term Mining at Bengalla over the MOP term will continue at a rate of approximately 9.3Mt ROM coal per year for 2013 and 2014 with planned expansion up to the maximum approved 10.7Mt ROM coal in 2015 pending internal feasibility. This is reported in the AEMRs as being 6.7 Mt in 2010, 7 Mt in 2011 and 8.4 in MOP ( ) Page 4

243 Audit Protocol: MOP Both the Main pit and Wantana pit will be mined during this time, with a focus on accelerating the Wantana pit up to the approved rate of 2.5Mt ROM Coal per year to assist in liberating approved emplacement areas, which will see it completed in Although mining within the Wantana extension area will be conducted at higher rates, ROM coal production from Bengalla will remain within the maximum approved 10.7 Mtpa. This is reported in the AEMRs as being 6.7 Mt in 2010, 7 Mt in 2011 and 8.4 in Waste Disposal Mineral Waste Management Each 7m lift allows for 1-2m of reject and 5-6m of overburden for encapsulation, where rejects will either be dumped prior to, or dumped during encapsulation. This is managed at Bengalla through the Acid Mine Drainage and Mineral Waste Management Plan (March 2007). Procedures are in place to ensure this occurs This is managed at Bengalla through the Acid The placement of reject, carbonaceous and acid rock drainage material is Mine Drainage and Mineral Waste planned at least 5m below the final landform in order to minimise the possibility of Management Plan (March 2007). Procedures spontaneous combustion associated with any carbonaceous material in the are in place to ensure this occurs. Mine rejects. geologists plan for a 10 m buffer between reject material and final surface material Reject and ARD material is limited in the southern part of the SOEA to maintain the alluvial aquifer quality As the OEA is filled to final design it is progressively shaped and rehabilitated Non-mineral Waste Management Interviews with Bengalla staff confirmed that no reject material is placed in the SOEA Bengalla operates a comprehensive non mineral waste management system that consolidates waste management into a single contract. This includes the day-today management of all major regulated and industrial waste streams and recycling generated by the operation. A large focus of the waste management programme is placed upon correct handling, storage, segregation, recycling and reuse of materials. To achieve this and improve upon waste recycling performance, employees are provided with regular training and awareness courses on different aspects of waste management, as well as feedback on Bengalla s performance in these areas Sewage Waste Interviews with Bengalla staff confirmed that this is undertaken Bengalla has its own sewage treatment plant where sewage is passed through a series of aeration dams into a settling dam to allow settlement of solids. The liquid is then ponded with sufficient residence time to allow further settlement and aeration before being reused on site in the mine s water management system Waste Disposal over the MOP Term Over the MOP period the Southern Overburden Emplacement Area (SOEA) will continue to be utilised as the priority emplacement area continuing on from the old ROM area to reach the final landform surface. The Western Overburden Emplacement Area (WOEA) will be constructed pending mine planning requirements as described in the EA (2010). Due to overburden emplacement capacity issues currently experienced, Bengalla will delay the final shaping and rehabilitation of the northern face of the existing OEA until Bengalla will continue to emplace overburden and temporally rehabilitate this area until 2016, when it will be reshaped and topsoiled for permanent rehabilitation. 2.7 Infrastructure & Construction Construction over the MOP Term Proposed Construction activities over the MOP term will include the remaining construction work to complete expansion from 9.3Mt to 10.7Mt ROM Coal production as well as relocating existing in pit mine infrastructure due to the proximity of the advancing mining face west. This includes but is not limited to: This was undertaken during the audit This is reported in the AEMRs as being 6.7 Mt in 2010, 7 Mt in 2011 and 8.4 in Bengalla Link Road Stage 1 Upgrade, started in 2012; Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that these works have been completed. MOP ( ) Page 5

244 Audit Protocol: MOP CHPP stockpile extensions to the west and associated visual bund as part of feasibility to 10.7Mtpa; Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that these works have been completed Remaining construction work to CHPP plant and infrastructure as part of 10.7Mtpa feasibility study; Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that these works have been completed Upgrades to stores hardstand and sheds Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that these works have been completed South western power line relocation to assist with mine infrastructure relocating west; Interviews with Bengalla staff confirmed that these works have not commenced yet Maintenance Fuel Storage upgrade; Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that these works have been completed In pit Fuel Farm modifications and/or relocation west ahead of mining; Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that these works have been completed Crib Huts and Hardstand facilities west ahead of mining; Interviews with Bengalla staff confirmed that these works have not commenced yet Bioremediation area west ahead of mining; Interviews with Bengalla staff confirmed that these works have not commenced yet Maintenance construction pad west ahead of mining; Interviews with Bengalla staff confirmed that these works have not commenced yet Hot Tyre Park-up area west ahead of mining; Interviews with Bengalla staff confirmed that these works have not commenced yet Continued relocation of the North Substation west progressively ahead of mining; Interviews with Bengalla staff confirmed that these works are ongoing Construction of Water Management system along the western highwall crest to divert water back into the Pit; Interviews with Bengalla staff confirmed that these works have not commenced yet Dam construction in place of the existing sedimentation dam on the North side of the pit access road, east of Dry creek, to assist with water management of the WOEA when constructed; and Interviews with Bengalla staff confirmed that these works have not commenced yet North Loop Road and associated water management systems. Interviews with Bengalla staff confirmed that these works have not commenced yet Inpit infrastructure will be relocated to the approved disturbance area previously reserved for the tailings drying area. This will include the Crib and amenity facilities with Truck Park-up and Maintenance construction pad. Interviews with Bengalla staff confirmed that these works have not commenced yet. 2.8 Forecast Rehabilitation Activities 2.8 Over this MOP period Bengalla aims to rehabilitate 60Ha of Overburden Emplacement Areas. During the audit period, around 40 ha of this rehabilitation has occurred. Around more hectares of rehabilitating are planned for the year MOP ( ) Page 6

245 Audit Protocol: MOP Bengalla generally aims to rehabilitate OEA s as soon as practically possible to assist in minimising environmental impact. This was observed by the auditors during the site visit. 2.8 Focus over the MOP period will be on the south eastern area of the dump 2.8 Water management systems for the SOEA need to be completed prior to the rehabilitation continuing from the old ROM hopper on the eastern face around to the southwest. Interviews with Bengalla staff confirmed that these works are ongoing. 2.8 Native Vegetation domains on the slope and Pasture Domains on the flatter areas will continue to be established on the rehabilitated OEA. Interviews with Bengalla staff confirmed that these works are ongoing. 3 Environmental Issues Management 3.2 Environmental Management System 3.2 The RTCA Health, Safety, Environment and Quality (HSEQ) Management System streamlines current management system requirements from the health, safety and environment disciplines, incorporates current leading practices and supports the Rio Tinto performance standards which are mandatory for all Rio Tinto businesses. The HSEQ Management System provides for the integration of the existing Coal & Allied Safety Management System and Coal & Allied Environmental Management System. This integration streamlines the management activities used to uphold HSE performance. 3.2 Coal & Allied (CNA) have developed a Rehabilitation Procedure (Environmental Procedure EP 5.1) to ensure that vegetation removal, topsoil and rehabilitation are correctly managed throughout Bengalla. The procedure outlines the methods for activities such as soil stockpiling, surface preparation, soil re-spreading, revegetation and weed control Environmental Management Documents Management Strategies, Plans and Monitoring Programmes are prepared as required by development consent /project approval conditions Environmental procedures have been established, documented and maintained for all mining related activities that have a potentially significant impact on the environment. Procedures provide details of operation and maintenance of facilities, equipment and machinery where required. 3.3 Issues Management Documentation 3.3 Bengalla is currently revising the Environmental Management Plans to reflect the requirements of Modification 4 (DA 211/93) and will detail the specific management techniques for environmental issues that have been identified through risk assessment and the EA process. The auditors saw the review history of Bengalla's environmental management strategies, and found most of them to have been updated (some several times) during the audit Air Quality Bengalla shall operate and manage an air quality monitoring network in accordance with DA211/93. This is undertaken as per the Bengalla Mining Company Pty Limited Air Quality and Greenhouse Gas Management Plan (Bengalla, November 2011). MOP ( ) Page 7

246 Audit Protocol: MOP Bengalla aims to proactively manage dust and effectively apply operational controls to reduce or minimise dust. These controls include, but are not limited to the following practices: Spraying recycled mine water using a fleet of water carts on trafficked haul roads; Operation of dust suppression equipment on drills used within the mine site; Rehabilitation of disturbed areas as soon as practicable to minimise the generation of wind eroded dust; Operation of automatic water sprays on coal stockpile areas; Enclosed ROM hopper with automatic water spray and fully enclosed coal conveyor systems in exposed areas; Blasting constraints configured to Bengalla s real time meteorological and These management measures were observed temperature inversion stations; by the auditors during the site visit. Bitumen sealing of frequently travelled roads within the CHPP; Changes in haul road configuration and utilisation where practical to reduce dust; Real time air quality monitoring (24hr PM10) and meteorological data are assessed regularly with operations relocated, modified and/or stopped as required; All out-of-pit mining operations (including overburden dumping, shaping and topsoil stripping) are ceased when the average hourly wind velocity exceeds 5.6 m/s; and All excavation is stopped if dust was to affect the visibility or safety on adjacent public roads Erosion and Sedimentation Active mining and rehabilitation areas may utilise drains, dams, contour banks and pipelines to control erosion and sediment-laden water flow. These structures shall be regularly inspected. Weekly environmental inspections are done of these structures. More detailed annual inspections are undertaken of rehabilitation works. Detailed quarterly inspections are done of the structural integrity of dams. Any resulting actions from these reviews are input into Lotus notes. The staged discharge dam continues to be regulated under the Dams Safety Act Surface Water Erosion control within rehabilitated areas may be managed using the following techniques: Construction of contour banks on steep areas to direct runoff water and minimise riling; Lined drop structures to collect runoff from contour banks and direct runoff to These management measures were observed approved sedimentation structures; by the auditors during the site visit. Deep ripping prior to seeding to increase water infiltration and soil moisture, and provide a seed bed for rapid germination; and Planting of a cover crop on both pasture and tree seeded areas to stabilise the surface Bengalla s water management system has been designed to minimise the use of fresh water from the Hunter River. This is achieved through maximising the recycling of CHPP process water by dewatering rejects and utilising secondary quality water where possible across site. Wherever possible saline mine water and treated sewage water are used for coal processing and dust suppression. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that the site continues to be managed in this manner Any required discharge events at Bengalla shall be managed under the guidelines of the Hunter River Salinity Trading Scheme (HRSTS). It is anticipated that any discharges will continue to remain infrequent and only be required following periods of prolonged heavy rainfall. HRSTS discharge events have generally occurred in compliance with these requirements All dams within the mine lease area shall be monitored for ph, electrical conductivity (EC) and total suspended solids (TSS) on an annual basis. This monitoring programme provides necessary baseline data as well as information relating to the impacts, if any, from the mining operation for all site water resources. This monitoring was undertaken during the audit period, as reported in section of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012). MOP ( ) Page 8

247 Audit Protocol: MOP Groundwater To ascertain potential impacts upon groundwater from mining activities at Bengalla a groundwater monitoring network has been established around the mine and on adjoining land. The monitoring network targets three aquifers; an unconsolidated aquifer, a shallow hard rock aquifer and a deep hard rock aquifer. This monitoring continues to be undertaken, as reported in section of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and section of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) Contaminated Land Control measures include: a chemical approval process; a strong focus on waste management and recycling; prompt spill response and remediation, bunding and containment to isolate and prevent site contamination; updated contaminated land site register; formal process utilising external contaminated land consultants to decommission contaminated sites; and Bengalla operates a bioremediation facility where any soil contaminated with hydrocarbons is placed for remediation. During the site visit the auditors viewed these management measures. The site also continues to maintain a contaminated site register Flora and Fauna Weeds and Pests As per Bengalla s EMS, prior to clearing a fauna specialist shall assess trees proposed for disturbance for fauna. During the site visit the auditors viewed Ground Disturbance Permit system and found it to contain this information Bengalla currently manages weed control under two separate management plans, one for the Hunter River and one for the Bengalla lease areas. These plans form the basis for weed control activities at Bengalla. The weed management plan for the Hunter River was developed in co-operation with Mt Arthur Coal in 2005 and covers a 24 kilometre stretch of river (16 kilometres Bengalla owned land and eight kilometres Mt Arthur Coal owned land). The Weed Management Plan for Bengalla Mine (HLA Envirosciences, 16 May 2003) fulfils these requirements Blasting Blasting at Bengalla is managed as per the site s EMS procedures and conditions of DA211/ Bengalla s standard blast design guidelines, which include blast face profiling to ensure that the front row of any free face blasts has sufficient burden to prevent a blowout of explosive force shall be utilised in all blasts designed. The burden and spacing design incorporates pattern tie-ups to minimise environmental impacts such as dust, air blast and also vibration which has proven successful over the blast events this year. High Precision GPS systems and survey control maintain the accuracy of drill positioning and hole depth within the blasting patterns to minimise blasting impact. Computer programmes that simulate blast patterns are also used to further reduce the impacts of blasting. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that blasting continues to be managed in this manner Prior to each blast being undertaken, the RTEMS system shall be accessed and Interviews with Bengalla staff and the site visit data from Bengalla s meteorological station used to determine the potential conducted by the auditors confirmed that effects of blasting at the scheduled blast time. Wind speed, wind direction and blasting continues to be managed in this temperature inversion are all to be taken into account when determining suitability manner. of blast time The scheduled blast will be postponed if wind speed, wind direction or temperature inversion changes do not meet the specified Bengalla blasting criteria (Bengalla Meteorological Restrictions for Blasting) unless other circumstances related to safety prevail. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that blasting continues to be managed in this manner. MOP ( ) Page 9

248 Audit Protocol: MOP Blast monitoring units are installed to fulfil the site s regulatory requirements in relation to blast monitoring. The blast monitoring system operates in real time, relaying blast results to a website that is accessible 24 hours a day by Bengalla staff This was observed by the auditors during the site visit Operational Noise To comply with development consent conditions, various management techniques may be utilised for the control and minimisation of noise levels across the mine site, including: construction of noise and visual bunds surrounding the active mining operation; development of tree screens; stringent sound power level requirements placed upon supplier s items of plant and equipment; noise attenuation fitted to mobile equipment and some fixed plant including pumps and lighting sets; regular preventative maintenance of all mobile equipment; noise attenuation fitted to the ROM dump hopper; rigorous mine planning for the scheduling and siting of active dump areas and haul roads away from Muswellbrook during night time operations; noise modelling; regular independent noise monitoring surveys undertaken on all pieces of plant and mobile equipment; daily night-time operator attended surveys undertaken around the site after pm to ensure compliance with noise conditions; alarming and interrogation of the Real Time Environmental Noise Monitoring System which is available to all employees; and ongoing noise awareness training provided to all relevant employees. Interviews with Bengalla staff and the site visit undertaken by the auditors confirmed that the site continues to be operated in this manner Visual and Lighting To manage any offsite lighting impacts and ensure that the visual amenity of surrounding residences is impacted as little as possible, Bengalla will continue to follow a stringent set of guidelines, which is documented in the site s EMS. Interviews with Bengalla staff confirmed that training is undertaken for all site personnel to ensure that operators know to keep lights facing down and below the horizontal. Floodlights on the site are positioned as such. Interviews with Bengalla staff confirmed that lux tests have been carried out for onsite lighting. The site does not have a history of receiving lighting complaints Various management techniques may be utilised for the control and minimisation of visual impacts, which include: light casing, direction assessment and consideration of light source observable off site monitored; visual bunds established to improve the visual amenity of the site; training and awareness initiatives are provided to educate employees about the sensitivity of Bengalla s proximity to local residents and the need to minimise stray light; a regular visual impact survey; nightly attended monitoring by mining personnel; and all new lighting installed meets specification in Bengalla s EIS/EA. Interviews with Bengalla staff confirmed that training is undertaken for all site personnel to ensure that operators know to keep lights facing down and below the horizontal. Floodlights on the site are positioned as such. Interviews with Bengalla staff confirmed that lux tests have been carried out for onsite lighting. The site does not have a history of receiving lighting complaints. Tree screens and bunds were observed by the auditors during the site visit. Lighting at Bengalla is maintained according to PRO-0365 Placement and Operation of Lighting Sets Heritage (Aboriginal and European) Issues relating to Aboriginal cultural heritage are managed in accordance with the National Parks and Wildlife Amendment Act 2010 and the EP&A Act via Bengalla s Aboriginal Cultural Heritage Management Plan. The auditors undertook a review of Aboriginal cultural heritage management at Bengalla, and found it to generally be in compliance with these requirements MOP ( ) Page 10

249 Audit Protocol: MOP Bengalla acknowledges the cultural importance that Aboriginal archaeological sites represent to the local Aboriginal people. Sites that have been identified and do not have an Aboriginal Heritage Impact Permit ( AHIP) and are close to mining This was observed by the auditors during the operations are protected by fencing and signage to prevent accidental site visit. disturbance and to assist in safeguarding the condition of these sites for future years Archaeological and heritage assessments are to be undertaken prior to any new mining activities, in consultation with the local Aboriginal community. The During the audit period, this has been significance of each site shall be assessed to determine the need for further undertaken in relation to the most recent investigation and whether there are any options for conservation. Where mining Continuation of Bengalla Mine Environmental will impact upon Aboriginal sites, an Aboriginal Heritage Impact Permit Impact Statement (Hansen Bailey Bengalla, (previously S.90 Consent to Destroy) shall be sought from the Director-General of September 2013). the OEH Two areas of European heritage significance, as listed in the Heritage Act register of Heritage Orders, Hunter Regional Plan Heritage schedule and the National Trust register, are the Bengalla homestead (c1877) and Overdene property (c1860), which have both been listed as items of local significance. In addition to these homesteads, Bengalla will continue to perform maintenance on a number of other heritage areas on its landholdings including the Keys Family Cemetery and Overton homestead. Evidence of this ongoing maintenance was sighted by the auditors (e.g. invoices from maintenance contractor) Spontaneous Combustion and ARD Bengalla shall employ best practice procedures to minimise the likelihood of either of these processes to occur within the constraints of the overall mining method. As a broad principle, known reactive materials are to be covered with thick layers of inert waste material. The maintenance of inert material over potentially reactive waste (as per design criteria) significantly reduces the risk of spontaneous combustion and ARD at Bengalla. This was undertaken during the audit period, as reported in section of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and in section of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) Bushfire Bengalla maintains a fleet of water carts onsite and a fully equipped mobile fire-fighting unit with the capacity to respond to bushfires if Bengalla has in place a number of effective measures for the prevention and required. Bengalla's general emergency control of bushfires which include periodically slashing roadsides verges, response team is also onsite also. During maintaining tree-lot undergrowth areas free of grass and fuel build-up and grazing 2011, one small grass fire occurred across of pastures. A fully equipped mobile fire-fighting unit, along with a fleet of three ,000 litre water carts is also on hand should a fire outbreak occur within the hectares of Bengalla land. The incident was lease holding. managed by Bengalla, and the fire was extinguished promptly. One small fire also occurred in the CHPP work area in 2011 and was also managed by site personnel Erosion and Sedimentation Active mining and rehabilitation areas have a number of approved facilities in place including drains, dams, contour banks and pipelines to control erosion and sediment-laden water flow, which are regularly inspected. Weekly environmental inspections are done of these structures. More detailed annual inspections are undertaken of rehabilitation works. Detailed quarterly inspections are done of the structural integrity of dams. Any resulting actions from these reviews are input into Lotus notes. The staged discharge dam continues to be regulated under the Dams Safety Act Erosion control within rehabilitated areas is managed using the following techniques: Construction of contour banks on steep areas to direct runoff water and minimise riling; Lined drop structures to collect runoff from contour banks and direct runoff to approved sedimentation structures; The auditors verified compliance during the Deep ripping prior to seeding to increase water infiltration and soil moisture, and audit site inspection. provide a seed bed for rapid germination; Planting of a cover crop on both pasture and tree seeded areas to stabilise the surface; and Engagement of specialist rehabilitation consultants to assist in rehabilitation techniques. MOP ( ) Page 11

250 Audit Protocol: MOP Public Safety In the context of this MOP, public safety at Bengalla relates to access to the operation from public roads. The open-cut operation is fenced and signposted at the boundary perimeter to prevent trespassers. These security measures were viewed by the auditors during the site visit Greenhouse Gas It is important that Bengalla contributes to climate change solutions and invests in research and development initiatives to find ways to reduce our greenhouse gas emissions throughout the coal chain. This was undertaken during the audit period, as reported in section 3.3 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012) and section 4.6 of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) Bengalla has a climate change programme which has objectives in four key areas: The active research and promotion of technologies that reduce carbon dioxide emissions from the use of coal; The improved use of energy at our operations, projects and supply chain; Designing future projects with energy efficiency and climate change risks considered; and Raising awareness amongst stakeholders that climate change is an issue that requires us all to change how we currently operate. This was undertaken during the audit period, as reported in section 3.3 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012) and section 4.6 of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) Non-Mineral Waste Management Non-mineral waste that cannot be recycled and is considered non-hazardous is disposed of at appropriate landfill facilities, using licensed contractors Interviews with Bengalla staff confirmed that the waste contractor Remondis removes such waste, which is relocated to landfill in the Muswellbrook area. Waste tracking sheets are retained as required Hazardous non mineral waste that cannot be re-used or recycled is collected and sent off site for treatment and specialised disposal by licensed contractors. Interviews with Bengalla staff confirmed that oils, for example, are transported offsite with a specialist waste contractor supervised by Remondis The offsite treatment and disposal facilities used are audited to ensure that the wastes are appropriately disposed The Remondis facilities are audited by Bengalla and some other waste users Bengalla operates a comprehensive waste management system that consolidates waste management into a single contract. The system includes the day-to-day management of all major regulated and industrial waste streams and recycling generated by the operation This was observed by the auditors during the site visit A large focus of the waste management programme is placed upon correct handling, storage, segregation, recycling and reuse of materials. To achieve this and improve upon waste recycling performance, employees are provided with regular training and awareness courses on different aspects of waste management. This was sighted by the auditors to be part of the site's generic induction. MOP ( ) Page 12

251 Audit Protocol: MOP Operational Issues which Affect Rehabilitation Exploration Each exploration site on the western side of the highwall is rehabilitated after drilling. Interviews with Bengalla staff confirmed that the site continues to be managed in this manner Mining Method and Features (Dehab) Rehabilitation planning at Bengalla includes incorporating buffer areas between active dumping and landform shaping to minimise the possibility of dehab. Once landform shaping is complete, a haul road width (30-50m) remains and is not rehabbed on the western side to ensure the next lot of rehab can be blended in when landform shaping if being performed without the need to strip back existing rehab. Contour drains are continued through these areas on slopes to minimise erosion of recently rehabilitated areas. During ha of land was rehabilitated for the southern overburden extension area due to amendments to the site's mine plan. This was observed by the auditors during the site visit. The remainder of this commitment does not require a finding to be made against it Minerals Processing Residues and Tailings All reject is at least 5m below the final landform. This depth of cover ensures that the rejects will not impact on the quality of rehabilitation. This is managed at Bengalla through the Acid Mine Drainage and Mineral Waste Management Plan (March 2007). Procedures are in place to ensure this occurs. Mine geologists plan for a 10 m buffer between reject material and final surface material Geology and Geochemistry Bengalla has an ARD and mineral waste management plan to manage the mineral wastes produced by mining. This minimises the potential influence of geochemistry issues affecting rehabilitation. It includes ARD, reject and carbonaceous materials which are all dumped at least 5m below the final landform. This is managed at Bengalla through the Acid Mine Drainage and Mineral Waste Management Plan (March 2007). Procedures are in place to ensure this occurs. Mine geologists plan for a 10 m buffer between reject material and final surface material Bengalla s OEA is net acid neutralising with approximately 93% of the waste going into it being acid neutralising and approximately 7% comprising of ARD Wynn Interburden or reject material. These figures are calculated annually through the internal mineral waste inventory memo Spontaneous Combustion Once dug out the material is encapsulated as deep as possible in the OEA. 4 Post Mining Land Use 4.2 Post Mining Land Use Vision This is managed at Bengalla through the Acid Mine Drainage and Mineral Waste Management Plan (March 2007). Procedures are in place to ensure this occurs. Mine geologists plan for a 10 m buffer between reject material and final surface material. 4.2 The objective of the post-mining land use is to be compatible with surrounding land uses and provide environmental and community benefits. 4.3 Project Rehabilitation Objectives 4.3 Mine Site (as a whole): Safe, stable and non-polluting 4.3 Surface Infrastructure: To be decommissioned and removed, unless the Director-General agrees otherwise. MOP ( ) Page 13

252 Audit Protocol: MOP Overburden Dump: Rehabilitate, as soon as practicable, the working face of the overburden dump exposed to the Muswellbrook township and Denman Road. Where reasonable, rehabilitation will include high density tree planting. This was viewed by the auditors during the site visit. 4.3 Eastern Overburden Dump: Contoured to no more than a 10 degree slope These slopes were viewed by the auditors during the site visit. Some slopes were observed to be above this 10% criterion. Techincal Non Compliance 4.3 Other land affected by the development: Restore ecosystem function, including maintaining or establishing self-sustaining eco-systems comprised of: local native plant species; extensive areas of Class 3 Agricultural Capability Land; a landform consistent with the surrounding environment. This was observed by the auditors during the site visit to generally be trending toward these criteria. Final Void: 4.3 Safe, stable and non-polluting Community: 4.3 Minimise the adverse socio-economic effects associated with mine closure 5 Rehabilitation Planning 5.2 Domains Rehabilitation Objectives Final Void: 5.2 Final voids will be used for water storage post-mining. The objective is for the final voids to be safe, stable and nonpolluting. Water Management Areas: The drainage pattern of the final landform will be designed to integrate with the 5.2 surrounding catchments and will be revegetated to achieve long term stability and erosion control and also to harmonise with more general rehabilitation and revegetation strategies Infrastructure Areas: Mining infrastructure within the identified disturbance area will be removed if no longer required; and the affected lands rehabilitated. Overburden Emplacements: Undulating, stable, free draining landform. Final landform will incorporate the existing rehabilitated landforms to ultimately be consistent with the surrounding landscape features. Rehabilitation Area Class III: Pastures with Class III Land capability 5.2 Rehabilitation Area Class IV and V (Pasture): Approximately 70% of mined land re-established as stable pasture areas. 5.2 Rehabilitation Area Class IV and V (Native Vegetation): Approximately 30% of mined land re-established as stable native vegetation, with the majority of the eastern OEA face as native vegetation. 7 Rehabilitation Implementation 7.2 Proposed Rehabilitation Activities this MOP Period Water Management Areas Construction of drainage structures on rehabilitated areas will assist in rehabilitating overburden emplacement areas. In particular the SOEA Water Management system is planned to be completed at the start of 2012 which will enable the majority of the SOEA rehabilitation to begin. This was being gradually constructed during the time of the IEA, as observed onsite by the auditors Overburden Emplacements Landform Establishment Topsoil Spreading The Final Landform has a maximum height of 270RL and a maximum overall slope of 10 degree from the edge of the dump. The eastern and northern faces are mostly 10 degrees although the southern and western slopes shallow off between 240RL and 270RL. Some slopes were observed to be above this 10% criterion. Most slopes viewed by the auditors were on the 270 level Topsoil will be spread across the dozed areas and slopes to the appropriate coverage ( mm) and then rock raked to remove any large exposed rocks larger than 200mm in size. This was observed by the auditors during the site visit. MOP ( ) Page 14

253 Audit Protocol: MOP Drainage and Erosion Control Graded contour banks will also be constructed in order to capture and direct surface flows thereby minimising any potential erosion areas. Areas will then be scarified along the contour to assist in seed germination and water infiltration Drainage and erosion control are based on Rio Tinto Environmental Standards E10- Water Use and Quality Control and Coal & Allied Environmental Procedure CNS-10-EWI-SITE-E Water Management. This was observed by the auditors during the site visit Drainage within rehabilitated areas is managed using the following techniques: Construction of contour banks on steep areas to direct runoff water and minimise rilling; This was observed by the auditors during the Lined drop structures to collect runoff from contour banks and direct runoff to site visit. approved sedimentation structures; and Deep ripping prior to seeding to increase water infiltration and soil moisture, and provide a seed bed for rapid germination Soil Amelioration / Treatment Methods Soil analysis is undertaken on re-contoured areas to determine suitable ameliorants for revegetation. Interviews with Bengalla staff confirmed that, as part of the tracking process for rehabilitation, data is recorded regarding soils and ameliorants subsequently used as required. Recorded data at the site on soil samples and their analysis was observed to be based on the EA soils data Revegetation will be undertaken progressively as the surface preparation of the mine spoil is completed. At the time of sowing all pasture revegetation area are treated with fertilizer at a rate based on soil analysis results. Interviews with Bengalla staff, a review of site records and the site inspection undertaken by the auditors confirmed that this rehabilitation program continues to be undertaken based on seasonal conditions and mining operations. As part of the tracking process for site rehabilitation, data is recorded on fertiliser usage and application rates. This data is relayed from the revegetation contractor to the Bengalla staff for record keeping Revegetation Revegetation will be undertaken progressively and as soon as practicable after the completion of this surface preparation, in accordance with the rehabilitation objectives outlined in Modification 4. Interviews with Bengalla staff, a review of site records and the site inspection undertaken by the auditors confirmed that this rehabilitation program continues to be undertaken based on seasonal conditions and mining operations Pastures are not anticipated to be planted directly into overburden materials. Guidance from the DPI and/or DNR will be sought as required Interviews with Bengalla staff confirmed that nothing is sown directly into overburden materials; it is all topsoiled Consistent with CNA s Greenhouse Challenge commitment, it is intended to plant a minimum of 30% of the final rehabilitated land to native trees by way of direct seeding. Advice from DPI and Department of Natural Resources (DNR) will continue to be sought as required in regard to ongoing rehabilitation techniques. MOP ( ) Page 15

254 Audit Protocol: MOP Vegetation Species and Establishment Techniques Rehabilitation vegetation and establishment techniques are based on Coal & Allied environmental procedure CNA-10-EWI-SITE-E9-007 CNA Disturbance and Rehabilitation, and vegetation species are selected from an approved list CNA -05-REG-SITE-E Management of Cleared Vegetation Where appropriate, hollow bearing logs may be collected and used for habitat in rehabilitation and non-disturbed areas, as directed by the Environmental Specialist or Advisor. This was observed by the auditors during the site visit Vegetation or rocks, not required for rehabilitation purposes will be pushed on to the pre-strip area for removal with the overburden This was observed by the auditors during the site visit All grass will be left to be recovered with the topsoil Habitat Establishment Techniques Interviews with Bengalla staff confirmed that the site continues to be managed in this manner All hollow bearing logs may be collected and used for habitat in rehabilitation and nondisturbed areas. Logs are stockpiled in the prestrip and relocated close to rehabilitation areas until they can be placed accordingly onto selected rehabilitation sites. This was observed by the auditors during the site visit Maintenance Activities / Requirements Bengalla undertake annual rehabilitation audits and annual rehabilitation monitoring programmes. Any maintenance requirements are scheduled for completion or incorporated into the sites annual environmental improvement programmes. This was evidenced by the Rehabilitation Audit Final - Eastern of overburden Dump (January, 2013). Section 5 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and section 6 of the Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) contain a summary of annual monitoring information Class III Pastures It is planned that the Class III Pasture areas on the south 270RL will be shaped and seeded by the start of this MOP This was observed by the auditors during the site visit Class IV and V Pastures The Class IV and V Pasture rehabilitation area will continue to be created as rehabilitation is completed along the south east side of the OEA during the MOP Period. The flatter areas will primarily be pasture areas This was observed by the auditors during the site visit Class V and V Native Vegetation The Class IV and V Native Vegetation rehabilitation will continue to be created as rehabilitation is completed along the south east side of the OEA during the MOP The majority of this slope area will be Native Vegetation. This was observed by the auditors during the site visit. MOP ( ) Page 16

255 Audit Protocol: MOP Temporary Rehabilitation The northern 37 degree face of the OEA will continue to be temporarily rehabbed up to the 240RL as the dump progresses west. This temporary rehabilitation will continue until 2016 where in the current approval it will be rehandled and reshaped back to the 10 degree final surface. This was observed by the auditors during the site visit Topsoil stockpiles will continue to be built on the 270RL and south 240RL of the OEA as mining advances west through existing topsoil stockpiles. These topsoil stockpiles will be temporarily rehabilitated to preserve topsoil quality and reduce dust emissions. This was observed by the auditors during the site visit Rehabilitation and Disturbance over the MOP During the audit period, around 40 ha of this rehabilitation has occurred. Around more hectares of rehabilitating are planned for the year Rehabilitation Monitoring, Research and Reporting 8.1 Monitoring 8.1 Bengalla has implemented a monitoring program that assesses the performance of rehabilitation areas across the site. The Bengalla Mining Company Pty Limited - Environmental Management Program (Bengalla, August 2010) fulfils these requirements. 8.2 Research and Rehabilitation Trials and Use of Analogue Sites 8.2 Bengalla is currently undertaking an Agricultural research programme that is investigating the relationship between soil carbon levels and land productivity. The research programme started in 2012 and runs for four years. The research focuses on; building soil Carbon via better management practice, and Bio Char research. Interviews with Bengalla staff confirmed that this research program continues to run. 8.3 Reporting 8.3 The following reporting will be undertaken as per the requirements of DA211/93 Mod 4 Schedule 5 for managing and reporting incidents, complaints, noncompliances and environmental performance against statutory requirements: Annual Review and Annual Environmental Management Report; Incident reporting mechanism; Independent Environmental Audit; Community Consultative Committee; and Access to information via the project website which is update regularly. The auditors viewed the Bengalla CCC newsletters and the Coal & Allied Community newsletters have continued to be sent. The auditors viewed copies of CCC meeting minutes indicating that the CCC has been meeting at least twice per year during the audit Bengalla continues to run open days and the Coal & Allied shopfront continues. The Rio Tinto Coal Australia website continues to be the site through which Bengalla's information is published. The auditors also viewed evidence of the site's reporting of environmental incidents and potential incidents. The current IEA also satisfies these requirements. 10 Review and Implementation of the MOP 10.1 Review of the MOP 10.1 The MOP will be reviewed, and if necessary revised when: Any Modification to the conditions of the Development Consent is submitted; Any new Development Consent is submitted; A new MOP is to be submitted. The current MOP is itself evidence of this review process. However it is recommended that Bengalla consolidate the review and update of its management plans to ensure that this is recorded and responded to when required. This could be done in the form of an electronic table which a checklist for each triggering action and annual review dates for each Bengalla management plan. - Recommendatio n Made MOP ( ) Page 17

256 Audit Protocol: MOP This MOP may also be revised due to: Changing environmental requirements; Deficiencies of the MOP being identified; Changes in legislation; Result or recommendations from monitoring programs; Improvements in knowledge or technology; Where a risk assessment identifies the requirement to alter the MOP; and Change in the activities or operations associated with Bengalla Mine. MOP ( ) Page 18

257 AECOM Independent Environmental Audit Appendix M Audit Protocol: Bengalla Rehabilitation Management Plan (Bengalla, 2013) Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

258 AECOM Independent Environmental Audit m-1 Appendix M Audit Protocol: Bengalla Rehabilitation Management Plan (Bengalla, 2013) Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

259 Audit Protocol: Rehabilitation Management Plan Reference Requirement Evidence Audit Finding Bengalla Mining Company Pty Limited Rehabilitation Management Plan (Bengalla, April 2013) 3.0 REHABILITATION MEASURES 3.2 EA Commitments Re-creation of Class III land BMC has established an area of approximately 5.7 ha to Class III Land Capability where slopes are <3%. This area was seeded with pasture vegetation in late 2012 and will be monitored as part of the annual rehabilitation audit with results presented in the Annual Review. This was as seeded in-field by the auditors during the site visit. The area was observed to be shaped, with subsoil of around 400 mm and topsoil of around 500 mm which was sourced from land capability Class II. On application these soils have been ripped and rock racked. They were also observed to have been seeded with pasture and millet. Millet was slashed and is providing 100% ground cover. The use of pasture species was evident across the site. The formal rehabilitation monitoring program that is undertaken at Bengalla was evidenced through records of environmental inspections (including water, waste, dust and weather components). The schedule for these inspections was also sighted by the auditors Clearing and Topsoil Stripping Prior to disturbing any new areas, a site inspection and Ground Disturbance Permit (GDP) is completed by the Environmental Specialist (or delegate) to During the site visit the auditors viewed identify any environmental or Aboriginal archaeological issues associated with the Ground Disturbance Permit 1204 and found it disturbance of the area in accordance with EP 5.1 Rehabilitation. No disturbance to contain this information of any area occurs until the respective area has been approved via the Environmental Specialist (or delegate) in the GDP. There is limited existing remnant native tree cover within the approved disturbance area at Bengalla. However, prior to undertaking any disturbance, all habitat trees or seed trees will be identified. This identification of seed and habitat trees is not currently undertaken. However, the current clearing areas at Bengalla do not contain any such suitable trees. A review of the Ground Disturbance Permit system conducted by the auditors confirmed that these works would be undertaken in future as part of that GDP process Prior to, and during clearing, where available, seed is collected and any fauna present is relocated by an appropriately qualified person in accordance with EP A review of Bengalla's Ground Disturbance Permit system was undertaken by the auditors. There was no evidence of seed collection as only non-native species or unseasonal, senescing species were onsite at the time of the audit. A review of the Ground Disturbance Permit system conducted by the auditors confirmed that these works would be undertaken in future as part of that GDP process. 3.3 Topsoil Stockpiling 3.3 In accordance with EP 5.1, all topsoil stockpiles are located in designated areas and constructed to a shape and depth as specified in the MOP (BMC, 2012). Topsoil stockpiles were observed by the auditors during the site visit, and were generally found to comply with these requirements. 3.3 The topsoil stockpiles will be: - Located as close as practicable and readily accessible to re-spreading areas; - Located where they will not interfere with present and future mining and ancillary operations; - At least 10 m from trees or watercourses; and - In areas that will allow free drainage and minimal soil erosion. These topsoil stockpiles were observed by the auditors during the site visit. However, it was observed that topsoil materials are sometimes double handled, and that materials are sometimes also moved during very dry weather conditions, resulting in powdery-like soil material. It is recommended that, where practical, topsoil is not to be moved during periods of extreme dry weather. - Recommendatio n Made 3.3 Topsoil stockpiles that will not be used for longer than three months will be shaped, fertilised and revegetated with a cover crop specified by the Environmental Specialist to provide initial stability, maintain soil viability and minimise erosion. During the site visit the auditors observed the stockpiled topsoils to be vegetated. Rehabilitation Management Plan Page 1

260 Audit Protocol: Rehabilitation Management Plan 3.3 When removing soil from stockpiles to place on shaped areas, all practical measures (including spraying and/or removing the top 20 mm as proven to be effective through trials) will be taken to remove weed seed banks prior to respreading. Interviews with Bengalla staff confirmed that topsoil stockpiles are assessed for weeds, and are either sprayed or scalped as required. 3.5 Progressive Rehabilitation 3.5 Revegetation is undertaken progressively and as soon as practicable after the completion of surface preparation. Interviews with Bengalla staff, a review of site records and the site inspection undertaken by the auditors confirmed that this rehabilitation program continues to be undertaken based on seasonal conditions and mining operations. 3.5 Inert capping material and topsoil is usually spread over areas to be rehabilitated This was observed by the auditors during the as soon as possible, to maintain topsoil quality and take advantage of native seedbanks if site visit. present. 3.6 Overburden Emplacement Areas Southern OEA BMC commenced emplacing material in the Southern OEA Extension area in fourth quarter 2012 and is scheduled to be completed by At time of inspection the area was being topsoiled, with some sectors seeded and showing signs of pasture species establishment Rehabilitation of the Southern OEA Extension will be conducted in accordance with the MOP (BMC, 2012) and this RMP. At time of inspection the area was being topsoiled, with some sectors seeded and showing signs of pasture species establishment Western OEA Northern OEA Completion Criteria Tailings Management BMC plans to utilise the Western OEA only if absolutely required. Should the Western OEA be required, it is planned to be constructed in stages. Prior to use, This has not occurred yet during the audit suitable topsoil from the proposed Western OEA location will be extracted for use on rehabilitation. BMC will continue to emplace overburden and temporarily rehabilitate this area until it will be reshaped and topsoiled for permanent rehabilitation. Rehabilitation that achieves the completion criteria will be considered to be sustainable without ongoing management and therefore suitable for mining lease relinquishment. This is still in the planning stage. 3.8 Bengalla does not have any tailings dams to store reject material. Consistent with existing practices, the two waste streams from the CHPP process, tailings and coarse reject are combined and stored in a reject bin before being hauled back to This process was observed by the auditors be co-disposed in the Main OEA where it is dried in cells, buried within the Main during the site visit. OEA and capped with a minimum of 5 m of inert overburden material. Final landform shaping and rehabilitation is then undertaken. 3.9 Agricultural Productivity of BMC Land 3.9 BMC will continue to implement private licensing arrangements to ensure that the agricultural productivity of the BMC land (not required for mining) is maintained. The auditors sighted evidence of the current review program which is in place in relation to the management of non-mined lands. Interviews with Bengalla staff confirmed that its dairy, for instance, continues to produce high volumes of milk. Recommend the agricultural productivity of this land continues to be assessed. - Recommendatio n Made 4.0 REHABILITATION MONITORING 4.0 BMC will continue to undertake regular rehabilitation inspection to assess its ongoing success. This regular inspection consists of a reconnaissance level/on site walk through assessment, which includes observations of rehabilitation and some design recommendations for remediation of existing and future rehabilitation. This is undertaken in the form of monthly walkover inspections (with completed inspection forms sighted by the auditors during the site visit). The Rehabilitation Audit Final - Eastern of overburden Dump (January, 2013) was also undertaken during the audit Any resulting actions are logged and tracked via Lotus Notes. Rehabilitation Management Plan Page 2

261 Audit Protocol: Rehabilitation Management Plan 4.0 This is undertaken in the form of monthly The regular inspection also includes the review of BMC s initial rehabilitation walkover inspections (with completed completion criteria and other relevant statutory rehabilitation obligations including: inspection forms sighted by the auditors during - MOP; the site visit). The Rehabilitation Audit Conditions of DA 211/93 and this RMP; Final - Eastern of overburden Dump (January, - Environment Protection Licence (EPL 6538); and 2013) was also undertaken during the audit - Landscape Management Plan. Any resulting actions are logged and tracked via Lotus Notes. 5.0 MINE CLOSURE 5.1 Objectives Should BMC not be granted the relevant approvals to enable mining operations to continue beyond the extent of the approved Bengalla mine which is currently 5.1 being sought, (see Figure 2) then the following will be implemented in relation to mine closure. 5.1 The key objective of site rehabilitation is to achieve an optimum post-mining land capability suitable for supporting a combination of grazing and native habitat land use. Detailed rehabilitation objectives and completion criteria, consistent with these postmining land use objectives are listed in Table 2. Evidence of this was observed by the auditors during the site visit. The balance of areas of rehabilitation lands are being seeded with pasture species and tree species. Habitats are provided by open bodies of water and woody log debris. It is recommended that Bengalla review the seed mix used in its rehabilitation program in the context of the habitat values it offers. - Recommendatio n Made 5.2 Rehabilitation Domains It is likely that most domains will require a different rehabilitation methodology to achieve the intended post-mining land use. Rehabilitation objectives for each domain are presented in Table Final void infrastructure was not yet relevant at the time of undertaking this audit. Overburden is landscaped as per the MOP and the Bengalla Technical Services project Execution Plan Rehabilitation (February, 2013). In terms of rehabilitation, Class III areas are stable and vegetated, and Black Vertosols are used as growing media. The Bengalla Topsoil Stripping Procedure (January, 2012) delineates the separate handling of Black Vertosols. There is no ongoing assessment of land capability at the site. Water management areas were observed during the site visit to have steep dam batters with no cover crops or other vegetation visible. Rehabilitation of the steep dam batters was only recent and as such vegetation was not yet established at the time of the audit. 5.3 Post-mining Land Use 5.3 A combination of grazing and limited native bushland regeneration will be adopted as the preferred post-mining land use in suitable areas of the site, with a focus on linking remnant vegetation with rehabilitation. Evidence of these ongoing rehabilitation works was observed by the auditors during the site visit. It is recommended that Bengalla develop a formal plan that incorporate water structures, existing areas of native vegetation, the use of woody debris and also defines the seeding mix and areas to provide linkages. Evidence as per site inspection - need evidence of formal plan that shows the planned approach to connectivity. - Recommendatio n Made 5.4 Environmental Management 5.4 Ongoing monitoring and management of environmental performance will continue to be undertaken for five years after mine closure or until such time as monitoring results demonstrate that the site meets the closure criteria. Rehabilitation Management Plan Page 3

262 Audit Protocol: Rehabilitation Management Plan Detailed closure criteria and associated monitoring and maintenance programs will be included in the Final Void Management Plan. Mine closure monitoring will include at least the following: Rehabilitation and closure completion criteria/success indicators; Groundwater; Surface water; and Air quality. 5.5 Performance Measurement 5.5 The performance of the rehabilitation at Bengalla at mine closure will be monitored in accordance with the monitoring programs specified in Table 2. The assessment of the monitoring results will enable the confirmation of achievement of the success indicators and associated completion criteria. 5.6 Final Void Should BMC not be granted the relevant approvals to enable mining operations to continue beyond the extent of the approved Bengalla mine then a Final Void 5.6 Management Plan will be completed within two years prior to the completion of mining in consultation with the relevant authorities and to the satisfaction of DP&I Design Criteria Based on the currently approved mine plan at Bengalla, a final void will be created as shown on Figure 2. The void will be aligned generally north-south and will be retained as an open water body. The currently approved void will remain as an open water body as all available overburden will be used to create undulating and a free-draining overburden emplacement. The location and use of the final void will not result in any adverse environmental impacts and is situated well above the 1:100 Hunter River flood level. The location and use of the final void will continue to be investigated during detailed mine closure planning. 5.7 The final void will be managed and designed such that the low wall is at a slope of no greater than 18 and will be rehabilitated with pasture species suitable for surface stability. Benches will be incorporated at regular intervals along the low wall where practical (Hannan, 2003). 5.7 The steep slope of the high wall will be designed to a stable gradient, based on assessments of geotechnical stability and risk. Fencing will be constructed across the high wall to restrict cattle and pedestrian access. A steep ditch and bund wall may also be constructed at a short distance back from the high wall, so as to prevent inadvertent vehicular access. 5.7 Water management structures will be utilised to divert as much of the surrounding surface water catchment away from the void. Diversion banks with a capacity to convey a relevant level of peak runoff storm events will be constructed above the low wall to convey and redirect runoff. 5.8 Community Issues Associated with Mine Closure 5.8 In the unlikely event that a future approval will not be granted, then BMC would cease operations in As discussed in Section 5.6 BMC will develop a Final Void Management Plan within two years of mine closure which will address any community and social issues associated with the cessation of mining. 6.0 REPORTING AND REVIEW 6.1 Management Plan Review Rehabilitation Management Plan Page 4

263 Audit Protocol: Rehabilitation Management Plan 6.1 This RMP will be reviewed and revised (in consultation with relevant government agencies) each 5 years, or sooner in accordance with Schedule 5, Condition 4 of DA 211/93 The auditors saw the review history of this RMP, and found it to have been updated in consultation with the regulators during the audit 6.2 Reporting an Incident 6.2 Incidents will be reported to DP&I and any other relevant regulatory agencies required under the EPL, within seven days, and will comprise a detailed report on the incident. It is considered that no actual environmental harm incidents within the meaning of section 147 of the POEO Act actually occurred during the audit Some isolated environmental incidents/exceedances of approval criteria did occur. One of these events in particular was treated as potential environmental harm in the first instance. On 11 January 2012 the failure of a scour valve located on a water pipe resulted in an uncontrolled water discharge of 2.5 megalitres of mine affected water from that pipeline. The incident was reported to the EPA and DP&I on the same day, and the EPA was subsequently provided with a written report on the incident on 17 January Water samples were collected from discharged water at two locations. The results indicated that the potential for environmental harm to have been caused by the incident was negligible. This response indicates that Bengalla is in the position to be able to meet its reporting requirements under the POEO Act should such an incident occur. 6.3 Public Access to Information 6.3 In accordance with Schedule 5, Condition 3 and Condition 11 of DA 211/93 (M4), BMC will regularly (in the form of the Annual Review) prepare a summary of monitoring results required by DA 211/93 and make these publicly available on the Bengalla website. This was evidenced by the Rehabilitation Audit Final - Eastern of overburden Dump (January, 2013). Section 5 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and section 6 of the Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) contain a summary of annual monitoring information. These AEMRs are publically available on the Bengalla website. 7.0 CONTINOUS IMPROVEMENT 7.0 BMC continually strives to improve Bengalla s environmental performance by applying the principles of best practice through the continued implementation of its ISO certified EMS. Reasonable and feasible new best practice technologies will be investigated and adopted where relevant and progress will continue to be monitored using the performance indicators detailed in Section 2.1. This was evidenced by the Rehabilitation Audit Final - Eastern of overburden Dump (January, 2013). Any resulting actions are logged and tracked via Lotus Notes. Rehabilitation Management Plan Page 5

264 AECOM Independent Environmental Audit 8 This page has been left blank intentionally. Revision B Prepared for Bengalla Mining Company Pty Limited ABN:

265 AECOM Independent Environmental Audit Appendix N Audit Protocol: Bengalla Environmental Management Strategy (Bengalla, 2013) Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

266 AECOM Independent Environmental Audit n-1 Appendix N Audit Protocol: Bengalla Environmental Management Strategy (Bengalla, 2013) Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

267 Audit Protocol: Environmantl Management Strategy Reference Requirement Evidence Audit Finding Environmental Management Strategy (Bengalla, January 2013) 4 THE STRATEGIC CONTEXT 4.2 Our Strategy 4.2 We manage any activities that have potential to impact on the environment. This includes our coal mining operations, coal handling and processing operations, construction and all the support services associated with our business. 4.2 The Strategy aims to integrate environmental management planning into the Coal & Allied strategic and business planning cycle. It will provide for the establishment and endorsement of annual environmental management priorities for action and reporting and set the direction for all Coal & Allied operations in responsible environmental practice at a system level. 5 HSEQ MANAGEMENT SYSTEM 5 The HSEQ Management System streamlines current management system requirements from the health, safety and environment disciplines, incorporates current leading practices and supports the Rio Tinto performance standards which are mandatory for all Rio Tinto businesses. The HSEQ Management System enables the operations to apply specific tools that support the implementation, execution and effectiveness of the Rio Tinto health, safety and environmental performance standards. 5 The HSEQ management system is designed on the principles of continuous improvement and generally follows the layout of common international standards (including ISO14001) and the Plan, Do, Check and Review cycle. These steps are subdivided into 17 elements describing the requirements of the system, some of which will be implemented through the Rio Tinto Business Solution (an online information management system). Element 17 of the Rio Tinto HSEQ system encompasses continuous review. All policies and procedures for the site are maintained on Lotus notes to trigger review dates. A management review is undertaken each year to review the environmental performance of the site. Incidents and improvement plans are reviewed each quarter with the annual review confirming follow up has been undertaken. Any necessary actions are also managed through Lotus notes and are thereby designated to the relevant persons. Internal audits are also managed through Rio Tinto Coal Australia. Actions requiring higher priority can be entered into a global based system. 5.1 C&A Environmental Management System Environmental Management Documents During the audit the auditors conducted a All EMS documents are kept on the RTCA Site Document Register (SDR) intranet review of the Bengalla website, and found this site, allowing ready access across the organisation. At Bengalla, EMS documents information to be available. During the site visit are maintained within Lotus Notes. the auditors also viewed this information to be stored electronically on the Bengalla intranet Management Strategies, Plans and Monitoring Programmes have been prepared as required by development consent / project approval conditions Environmental procedures have been established, documented and maintained for all mining related activities that have a potentially significant impact on the environment. Procedures provide details of operation and maintenance of facilities, equipment and machinery where required, and are common across all sites with appendices to describe site-specific details EMS Page 1

268 Audit Protocol: Environmantl Management Strategy 6 MANAGEMENT OF ENVIRONMENTAL ASPECTS 6 As required by NSW Planning Approvals, each Coal and Allied mine / development is required to develop and implement Environmental Management Plans for key environmental aspects. These Management Plans outline the key strategies and operational control mechanisms which will be employed to maintain compliance with the relevant conditions of approval, and outline the framework for measuring and monitoring environmental performance, and reporting on the outcomes of performance assessment. Current management plans at Bengalla include: Air Quality and Greenhouse Gas MP; Water MP; Noise MP; Blast MP; Rehabilitation MP; Landscape MP; Aboriginal Heritage MP; European Heritage MP. 7 PLANNING PROCESSES 7.1 Legislative and External Requirements 7.1 A register of all C&A approvals is maintained as part of the EMS 8 IMPLEMENTATION AND OPERATION 8.2 Training and Competency During the site visit the auditors viewed a hard copy register of these consent documents which is maintained at Bengalla. 8.2 Coal & Allied aims to ensure that all employees and contractors have the appropriate environmental training and awareness, so that they understand their environmental responsibilities and can ensure work is carried out in a manner that appropriately manages impacts on the environment. All employees and contractors are required to undertake a Coal & Allied induction, which provides environmental awareness training and general environmental procedures training prior to commencing work on site. Prior to working on a particular Coal & Allied site, contractors must also complete a site-specific familiarisation. Interviews with Bengalla staff confirmed that all staff have position descriptions which are updated and reviewed on an annual basis. The Emergency Response Plan and the Environmental Pollution Incident Response Management Plan also explain who is responsible. This generic environmental awareness training was viewed by the auditors. Bengalla employees also go through a further environmental training process. Lotus notes records the three yearly training updates. 8.2 Environmental awareness is also revisited during toolbox sessions on a regular basis, which equips personnel to: effectively undertake their tasks in accordance with the relevant environmental procedures in order to prevent or minimise environmental impacts; and recognise the environmental hazards associated with their specific work tasks, through a risk based assessment process. Interviews with Bengalla staff confirmed that these issues are addressed during the monthly meetings, which include an environmental agenda so that new updates to environmental laws/procedures/risks can be discussed. EMS Page 2

269 Audit Protocol: Environmantl Management Strategy 8.3 Communication and Consultation Internal Communication All employees and contractors are provided with the information they need to ensure they minimise their impacts upon the environment. Environmental communication includes: Environmental Policy and any changes; EMS Strategies, Plans, Procedures and Programmes detailing objectives, management and monitoring; Environmental toolbox training; and Information about incidents from all operations. Interviews with Bengalla staff confirmed that task specific training is provided on an asneeds basis, e.g. for contractors working on drainage works where heritage may be an issue. Most Bengalla personnel only receive the generic environmental training unless specific training is warranted External Communication The regular processes for external communication between Coal & Allied and its stakeholders include: Contact with immediate neighbours Mine General Manager or designated representative, Community Relations personnel and Environmental representatives (regularly); Near Neighbours Newsletter (Quarterly); CCC (at least twice per year or in accordance with DA); Community open days (periodically); C&A shopfront Singleton and Muswellbrook (Weekdays); 24hr Environmental Complaints line (as required); Community information line (as required); RTCA website (as required); Corporate reporting (annually). During the site visit the auditors observed the process undertaken by Bengalla staff in communicating with neighbours, for instance, during blasting events. The auditors viewed the Bengalla CCC newsletters and the Coal & Allied Community newsletters have continued to be sent. A newsletter has therefore been prepared for each quarter during the audit The auditors viewed copies of CCC meeting minutes indicating that the CCC has been meeting at least twice per year during the audit Bengalla continues to run open days and the Coal & Allied shopfront continues. These telephone lines are maintained. The Rio Tinto Coal Australia website continues to be the site through which Bengalla's information is published Community Complaints The Coal and Allied Complaints Hotline will be maintained during the operating hours of the mines for the purpose of receiving complaints from members of the public in relation to activities conducted at the premises, including concerns relating to operation of vehicles and mobile plant. The Environmental Complaints Line number is This 24 telephone line continues to be maintained. It is advertised on the Bengalla website, in local newspapers and also in the CCC newsletter and Coal and Allied newsletters The Coal and Allied Complaints Hotline will be advertised in the telephone directory, periodically in the local newspapers, CNA community newsletters, and on the Rio Tinto Coal Australia website. This 24 telephone line continues to be maintained. It is advertised on the Bengalla website, in local newspapers and also in the CCC newsletter and Coal and Allied newsletters All complaints lodged with the Environmental Complaints Line will be investigated promptly and thoroughly. Where a complainant requests a return phone call, this will be made as soon as reasonably practicable. At Bengalla Mine all complainants will be called back as soon as reasonably practicable. All complaints pertaining to Coal and Allied sites activities will be logged in the complaints register. During the site visit the auditors viewed copies of complaints records maintained at Bengalla, and confirmed that all of these criteria are recorded Conflict Resolution In the event that Coal & Allied cannot agree with Muswellbrook Shire Council (MSC) or other relevant agency (other than DoPI), on the requirements applicable under the Development Consent, the matter shall be referred to the Directorgeneral of DoPI for resolution. If not resolved by the Director-General, it will then be referred to the Minister for Planning, whose determination of the matter is final and binding. EMS Page 3

270 Audit Protocol: Environmantl Management Strategy In addition, if a dispute occurs between Coal & Allied and a private landowner and cannot be resolved between the two parties, the matter will be referred to the Director-General of DoPI for resolution. If the matter cannot be resolved within 21 days, the Director-General shall refer the matter to an Independent Dispute Resolution Process. In summary, if the Director-General of DoPI is satisfied that an investigation is required, Coal & Allied shall: consult with the affected landowners; make arrangements for appropriate investigations as approved by the Director- General; if exceedances are demonstrated to result from the mine related activity, take appropriate actions such as introducing additional controls or entering into an agreement with the landowner; and conduct follow-up investigations where necessary. 8.4 Response to Emergencies 8.4 Each site has an Emergency Response Team which is trained to respond to emergencies. Simulated emergency exercises are conducted at least annually in order to measure and improve the effectiveness of emergency management. Interviews with Bengalla staff confirmed that the site continues to be operated in this manner. 8.4 Coal & Allied also has in place an Emergency Hazard Management Plan and a Disaster Management Plan. As well as events relating to safety, community and production, the Disaster Management Plan includes responses to key environmental threats including significant environmental pollution, bushfire, chemical/toxic leak and tailings dam wall failure. Interviews with Bengalla staff confirmed that the site continues to be operated in this manner. The Emergency Hazard Management Plan has now been replaced by the Environmental Pollution Incident Response Management Plan. 8.4 Interviews with Bengalla staff confirmed that Where risk assessments have identified potential emergency situations, specific the site continues to be operated in this documented procedures for dealing with those emergency situations are in place. manner. The Coal & Allied environmental emergency procedure includes the following information: initial and ongoing emergency notification to internal and external resources; events and communication log; documented accountabilities; 8.4 evacuation; specific emergency situations; critical incident stress management; and debriefs to take place after any emergency situation and include relevant persons and action plans prepared to correct deficiencies. The emergency procedures include accountabilities for dealing with other matters such as using outside assistance, dealing with media, counselling and community relations. Interviews with Bengalla staff confirmed that the site continues to be operated in this manner. 9 CHECKING AND CORRECTIVE ACTION 9.1 Monitoring Programme 9.1 Monitoring programmes have been developed for each site where required by conditions of the development / project consent for specific environmental impacts. Each programme has been developed in consultation with relevant stakeholders to achieve compliance with the consent criteria in a way that prevents and/or minimises the environmental impact generated by the development. 9.1 The existing sites monitoring programmes include comprehensive monitoring of (at least) surface and groundwater, air quality, noise, ground vibration and overpressure. 9.1 This information is reported in sections 3.1 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and The meteorological stations located centrally to MTW, HVO, MTP and BMC will Bengalla Mining Company Pty Limited Annual provide weather data such as temperature, rainfall, wind speed and direction, to Environmental Management Report and be used in the assessment of data collected. All data will be reviewed regularly as Annual Review 2011 (Bengalla, March 2012), part of compliance checking and reported in the AEMR. and section 4.1 of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013). EMS Page 4

271 Audit Protocol: Environmantl Management Strategy 9.1 Copies of the following environmental monitoring programmes can be located on the RTCA website: BMC Environmental Monitoring Programme Monitoring and Management of Cumulative Impacts During the audit a review was conducted of the Bengalla website, and this information was found to be available Cumulative impacts have been assessed in the environmental assessment documents as required. Generally these have included consideration of the issues and impacts reported in the Upper Hunter Cumulative Impact Study and Action Strategy (DoPI 1997) Air quality or noise models may be used to determine the proportion of impact that a particular mine or operation is contributing. In the event that two or more mines have a similar proportion of impact at a specific location that causes cumulative impacts then the mines will be required to reach an agreement for mitigate strategies The responsibility each mine has for the mitigative strategies will be based on the proportion of impact attributed to their operation. If the mines cannot reach agreement on either the mitigative strategy to be implemented or the proportion of impact that is attributed to their operation then the matter will be referred to the Director General for resolution Coal & Allied will continue to be involved in and contribute to the actions outlined in the Upper Hunter Cumulative Impact Study and Action Strategy (DoPI 1997). Bengalla continues to be involved in the Upper Hunter Air Quality Monitoring Network which supersedes this previous strategy. 9.2 Non-Compliance / Non-Conformance A management review is undertaken each year to review the environmental performance of the site. Incidents and improvement plans 9.2 Compliance and conformance is monitored through internal inspections, environmental audits, external certification audits of the EMS, compliance audits and audits by statutory authorities, and the results of routine compliance are reviewed each quarter with the annual review confirming follow up has been undertaken. Any necessary actions are also monitoring. Coal & Allied has a procedure to respond to non-compliance and nonconformance managed through Lotus notes and are thereby issues. designated to the relevant persons. Internal audits are also managed through Rio Tinto Coal Australia. Actions requiring higher priority can be entered into a global based system. 9.2 Instances of non-compliance or non-conformance are recorded in a database along with actions proposed to correct the activity and progress in achieving compliance. The database is reviewed regularly and managed by the Departmental Manager with the assistance from Environmental Services representatives. This is managed via the site's Lotus Notes system, which was observed by the auditors during the site visit. 9.2 Non-compliances with EPL or DC conditions are reported to the appropriate authority, and also in line with the relevant condition, for example to the CCC, council, etc. These instances are also reported in the Annual Review. When isolated environmental incidents having the potential to cause environmental harm did occur during the audit period, the subsequent incident reporting was observed by the auditors to fulfil these requirements. 9.2 In the event that an incident could cause, or has caused significant environmental harm, it will be reported in accordance with the Coal & Allied EMS Procedure 1.8 Incident Reporting. When isolated environmental incidents having the potential to cause environmental harm did occur during the audit period, the subsequent incident reports were observed by the auditors to fulfil these requirements. EMS Page 5

272 Audit Protocol: Environmantl Management Strategy 9.3 Reporting 9.3 Coal & Allied has a schedule of mandatory reports for each operation. These include: Government reporting: AEMR Annual Review; Monthly Meaningful Summaries; HRSTS Annual Report; EPA Licence Annual Return; National Pollutant Inventory Reporting; and Environmental Monitoring Reporting Regular Reporting: Website updates; Rio Tinto reporting: Social and Environmental Report; and Health, Safety and Environment Survey Internal reporting: Monthly Environmental Performance Reporting Community reporting: C&A Sustainable Development Report and Community Trust Report The auditors undertook a review of this reporting, and found it to have generally complied with the conditions listed herein during the audit 9.4 Audit Programme Coal & Allied has a schedule of HSEQ audits. The audits focus on specific aspects of health, safety and environmental practice and compliance at each operation. Rio Tinto HSEQMS Business Conformance Audit (Biennial) External compliance audit (frequency determined by DA) 9.4 HSE Performance Standards Internal Audit (annually) Workplace inspection systems audit (annual review) Certification audit (every 3 years) Review of HSEQMS Objectives (regularly throughout the year) HSQEMS Management review (annual review by senior management) 9.4 Audits are documented and reported on the site management system and corrective actions are assigned to the relevant staff. Incidents and improvement plans are reviewed each quarter with the annual review confirming follow up has been undertaken. Any necessary actions are also managed through Lotus notes and are thereby designated to the relevant persons. Internal audits are also managed through Rio Tinto Coal Australia. Actions requiring higher priority can be entered into a global based system. 10 MANAGEMENT REVIEW 10.1 Review and Distribution of this Strategy 10.1 This Strategy will be formally reviewed and updated at least every five years, or as required. The auditors saw the review history of the strategy, and found it to have been updated several times during the audit 10.1 This strategy, once approved, will be made publicly available via the Rio Tinto Coal Australia website ( and provided to the relevant agencies, councils, and Hunter Valley Operations CCC (Community Consultative Committee). During the audit a review was conducted of the Bengalla website, and this information was found to be available. EMS Page 6

273 Audit Protocol: Environmantl Management Strategy 10.2 Continuous Improvement 10.2 The overall intent of the HSEQMS is to prevent or reduce potential or actual environmental impacts and continuously improve Coal & Allied s environmental performance. This is achieved by an annual management review of the HSEQMS at each site and the regular internal audit of the performance of the HSEQMS to ensure it continues to be suitable, appropriate and effective. Element 17 of the Rio Tinto HSEQ system encompasses continuous review. All policies and procedures for the site are maintained on Lotus notes to trigger review dates. A management review is undertaken each year to review the environmental performance of the site. Incidents and improvement plans are reviewed each quarter with the annual review confirming follow up has been undertaken. Any necessary actions are also managed through Lotus notes and are thereby designated to the relevant persons. Internal audits are also managed through Rio Tinto Coal Australia. Actions requiring higher priority can be entered into a global based system. EMS Page 7

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275 AECOM Independent Environmental Audit Appendix O Audit Protocol: Landscape Management Plan (Bengalla, 2013) Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

276 AECOM Independent Environmental Audit o-1 Appendix O Audit Protocol: Landscape Management Plan (Bengalla, 2013) Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

277 Audit Protocol: Landscape Management Plan Reference Requirement Evidence Audit Finding Bengalla Mining Company Pty Limited Landscape Management Plan (Bengalla, April 2013) 3.0 LANDSCAPE MITIGATION MEASURES 3.2 On Site Vegetation Screening 3.2 Tree screens have been established in a number of locations surrounding Bengalla to reduce visual impacts to surrounding receivers, including: - Areas to the north and east along Wybong and Overton Roads; - A screen and rehabilitated bund along the southern portion of the DA Boundary; - Along the southern and western faces of the rail loop alignment; - South of the Wantana Extension; - To the south along Denman Road and the Bengalla Link Road; and - A vegetated bund that has been established surrounding the infrastructure area in the south-west of the DA Boundary. These tree screens were observed by the auditors during the site visit. 3.3 Off Site Vegetation Screening 3.3 To minimise the offsite impacts of the development to surrounding areas where possible, BMC has implemented an extensive system of visual impact management These tree screens and bunds were observed via the establishment of a range of visual tree screens, vegetated earth bunds and by the auditors during the site visit. vegetation corridors in key areas across the site and on neighbouring properties. 3.3 All visual bunds or vegetation screens will utilise native species and weed control will be undertaken as necessary, in accordance with the requirements of the Rehabilitation Management Plan (BMC RMP, 2013). These tree screens were observed by the auditors during the site visit. Interviews with Bengalla staff confirmed that weed control is undertaken as necessary. 3.3 Visual bunds and vegetation screens will be regularly maintained to ensure their effectiveness. These tree screens and bunds were observed by the auditors during the site visit, and were generally found to be effective. However there is no form of monitoring or procedure to assess the success of the vegetative screens and other similar measures in relation to the screening of the site. It is recommended that this be incorporated into existing rehabilitation monitoring. - Recommendation Made 3.3 The remaining vegetation screens proposed south of the Wantana Extension Area are anticipated to be progressively completed by the end of European Heritage Impacts 3.3 BMC has in place an European Heritage MP that includes measures to minimise the visual impacts of the development on the Edinglassie and Rous Lench Homesteads. The visual impacts of Bengalla s operations on these two locations will continue to be monitored and maintained (in consultation with MAC) in accordance with the approved EHMP (BMC EHMP, 2012). Interviews with Bengalla staff confirmed that this visual management continues. 3.4 Infrastructure Design 3.4 Infrastructure buildings will be maintained in accordance with EP 10.1 Visual Management, with particular attention provided to: - Maintenance of building colours, using muted greens or beige (over bright colours unless bright colours are necessary for safety purposes); - The use and maintenance of non-reflective and textured buildings to avoid glare (see Plate 1 and Plate 2); - Where practical, the design and construction of trafficable haul roads will occur below the natural surface level to reduce visibility from private receptors and locations; and - Infrastructure must be maintained in proper working order and in a tidy condition. These design principles were observed throughout the site by the auditors during the site visit. 3.5 Lighting Design 3.5 Night time operations will be conducted in a manner that will minimise the effects of lighting on neighbouring areas. This is achieved by: Keeping lighting to a minimum but consistent with ensuring a safe and efficient working environment for operations and staff; Interviews with Bengalla staff confirmed that nightly visual assessments are undertaken at three locations throughout the site to assess lighting and noise impacts. are captured. Visual management measures are also included in site training. Landscape MP Page 1

278 Audit Protocol: Landscape Management Plan 3.5 Directing flood lighting and movement area lighting is facing towards mine workings and away from mine boundaries wherever possible, taking particular care to avoid lighting impacts on C20; 3.5 Ensuring no outside lights shine above the horizontal; Fitting floodlights on the dragline with shields where practical and checking and adjusting lights to minimise the effects on adjacent areas. This is particularly important when the dragline is operating in an exposed location or close to a public road; Fitting appropriate lights on conveyor walkways and other infrastructure that are infrequently utilised with sensor switches or time switches to keep their use to a reasonable minimum; 3.5 Switching off floodlights in maintenance areas when they not needed; When planning and designing new developments or major refurbishments, careful consideration is given to the need for and placement of lights and the provision of lighting control systems; Operators of vehicles and plant (including haul trucks) avoiding the use of high beam when it is safe to use low beam. Operators must avoid causing interference to vehicles on adjacent public roads; and Ensuring that operations being conducted at night time near public roads are inspected from the road during set up and whenever lights are moved during a shift. If lights from operations are observed to be affecting areas outside the DA Boundary or if a complaint is received: The Supervisor or Team Leader must be contacted; and The amount or orientation of the lighting must be adjusted to reduce the effects, particularly if residences or public roads are being affected. During the site visit the auditors also observed the site to be bunded so that equipment and plant cannot be seen. Mobile plant and lighting towers, for instance, are shielded to prevent such impacts. Interviews with Bengalla staff confirmed that training is undertaken for all site personnel to ensure that operators know to keep lights facing down and below the horizontal. Floodlights on the site are positioned as such. Interviews with Bengalla staff confirmed that training is undertaken for all site personnel to ensure that operators know to keep lights facing down and below the horizontal. Floodlights on the site are positioned as such. Interviews with Bengalla staff confirmed that lux tests have been carried out for onsite lighting. The site does not have a history of receiving lighting complaints. Interviews with Bengalla staff confirmed that the site continues to be operated in this manner. Interviews with Bengalla staff confirmed that the site continues to be operated in this manner. Interviews with Bengalla staff confirmed that nightly visual assessments are undertaken at three locations throughout the site to assess lighting and noise impacts are captured. Visual management measures are also included in site training. Interviews with Bengalla staff confirmed that nightly visual assessments are undertaken at three locations throughout the site to assess lighting and noise impacts. are captured. The site does not have a history of receiving lighting complaints. Visual management measures are included in site training. Interviews with Bengalla staff confirmed that nightly visual assessments are undertaken at three locations throughout the site to assess lighting and noise impacts. are captured. Visual management measures are also included in site training. During the site visit the auditors also observed the site to be bunded so that equipment and plant cannot be seen. Mobile plant and lighting towers, for instance, are shielded to prevent such impacts. Interviews with Bengalla staff confirmed that nightly visual assessments are undertaken at three locations throughout the site to assess lighting and noise impacts. are captured. The site does not have a history of receiving lighting complaints. 3.5 All lighting requirements at Bengalla will continue to be managed as required in accordance with EP Lighting at Bengalla is maintained according to PRO-0365 Placement and Operation of Lighting Sets. Landscape MP Page 2

279 Audit Protocol: Landscape Management Plan 3.5 All lighting designs for infrastructure at Bengalla will also comply with the AS1680 Interior Lighting Code in order to minimise any impacts that may occur during night time hours resulting from light reflectance. 3.6 Progressive Rehabilitation Lighting at Bengalla is maintained according to PRO-0365 Placement and Operation of Lighting Sets. However there is nothing to suggest that this complies with AS1680 Interior Lighting Code. Administrative non compliance 3.6 All rehabilitation at Bengalla will continue to be undertaken progressively with the mine development, in accordance with Mining Operations Plan (BMC MOP, 2012), EP 5.1 Rehabilitation and BMC s Rehabilitation Management Plan (BMC RMP, 2013). Evidence of this progressive rehabilitation was observed by the auditors during the site visit. 3.6 All rehabilitation will be undertaken generally consistent with the Synoptic Plan: Integrated Landscapes for Coal Mine Rehabilitation in the Hunter Valley of New South Wales (Synoptic Plan) (DMR, 1999). This plan is currently being updated by the regulators. The rehabilitation works at Bengalla were generally observed to be in compliance with the relevant standards. 3.6 Rehabilitation components that provide emphasis on reducing visual impacts of the development include: Rehabilitation will be conducted consistently with the approved Mine Plan and DA 211/93 (see Figure 3); These tree screens and bunds were observed by the auditors during the site visit. 3.6 Tree belts and vegetated bunds will be used where possible to screen buildings, infrastructure and mining operations; These tree screens and bunds were observed by the auditors during the site visit. 3.6 Rehabilitation areas will, as far as practicable, be designed to shield mining operations; These tree screens and bunds were observed by the auditors during the site visit. 3.6 Rehabilitation areas will be revegetated as soon as practical after final landforms and drainage structures are completed; Water management areas were observed during the site visit to have steep dam batters with no cover crops or other vegetation visible. Rehabilitation of the steep dam batters was only recent and as such vegetation was not yet established at the time of the audit. 3.6 Rehabilitation areas will be designed to ensure that an undulating, free draining landform is achieved where possible; This was observed by the auditors during the site visit. 3.6 Vegetation plantings will be carried out in accordance with procedure EP 5.1 Rehabilitation. Plantings must include trees and shrubs of varying heights and These tree screens were observed by the stands to be of sufficient width (at least 10 metres) to provide good visual screening auditors during the site visit. and be sustainable; 3.6 Rehabilitation attention will be given to views from elevated and more prominent public viewing locations; and This was observed by the auditors during the site visit. 3.6 Local native species must be used, where practicable. This was observed by the auditors during the site visit. 3.6 Rehabilitated and landscaped areas will be maintained regularly to ensure their viability and effectiveness in accordance with procedure EP 5.1. This will include a Interviews with Bengalla staff and a review of regular visual assessment with attention provided on compliance with the above dot monitoring documentation confirmed that the points and the effectiveness of rehabilitation areas in screening site operations from site continues to be operated in this manner. receivers surrounding the mine. Landscape MP Page 3

280 Audit Protocol: Landscape Management Plan 4.0 REPORTING AND REVIEW 4.1 Management Plan Review 4.1 This LMP will be reviewed and revised (in consultation with relevant government agencies) each 5 years, or sooner in accordance with Schedule 5, Condition 4 of DA 211/93 The auditors saw the review history of this LMP, and found it to have been updated in consultation with the regulators during the audit 4.2 Reporting an Incident 4.2 Incidents will be reported to DP&I and any other relevant regulatory agencies required under the EPL, within seven days, and will comprise a detailed report on the incident. It is considered that no actual environmental harm incidents within the meaning of section 147 of the POEO Act actually occurred during the audit Some isolated environmental incidents/exceedances of approval criteria did occur. One of these events in particular was treated as potential environmental harm in the first instance. On 11 January 2012 the failure of a scour valve located on a water pipe resulted in an uncontrolled water discharge of 2.5 megalitres of mine affected water from that pipeline. The incident was reported to the EPA and DP&I on the same day, and the EPA was subsequently provided with a written report on the incident on 17 January Water samples were collected from discharged water at two locations. The results indicated that the potential for environmental harm to have been caused by the incident was negligible. This response indicates that Bengalla is in the position to be able to meet its reporting requirements under the POEO Act should such an incident occur. 4.3 Public Access to Information 4.3 In accordance with Schedule 5, Condition 3 and Condition 11 of DA 211/93 (M4), BMC will regularly (in the form of the Annual Review) prepare a summary of monitoring results required by DA 211/93 and make these publicly available on the Bengalla website. The Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011), Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) contain a summary of annual monitoring information. These AEMRs are publically available on the Bengalla website. Landscape MP Page 4

281 Audit Protocol: Landscape Management Plan 5.0 CONTINUOUS IMPROVEMENT 5.0 BMC continually strives to improve Bengalla s environmental performance by applying the principles of best practice through the continued implementation of its ISO certified EMS. Element 17 of the Rio Tinto HSEQ system encompasses continuous review. All policies and procedures for the site are maintained on Lotus notes to trigger review dates. A management review is undertaken each year to review the environmental performance of the site. Incidents and improvement plans are reviewed each quarter with the annual review confirming follow up has been undertaken. Any necessary actions are also managed through Lotus notes and are thereby designated to the relavant persons. Internal audits are also managed through Rio Tinto Coal Australia. Actions requiring higher priority can be entered into a global based system. 5.0 Reasonable and feasible new best practice technologies will be investigated and adopted where relevant and progress will continue to be monitored using the performance indicators detailed in Section 3.1. This is evidenced by Bengalla's comitment to its Agricultural Productivity Research Program. Landscape MP Page 5

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283 AECOM Independent Environmental Audit Appendix P Audit Protocol: Bengalla Aboriginal Cultural Heritage Management Plan (Bengalla, 2012) Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

284 AECOM Independent Environmental Audit p-1 Appendix P Audit Protocol: Bengalla Aboriginal Cultural Heritage Management Plan (Bengalla, 2012) Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

285 Audit Protocol: Aboriginal and Cultural Heritage Management Plan Reference Requirement Evidence Audit Finding Aboriginal Cultural Heritage Management Plan (Hansen Bailey, September 2012) 2.0 Aboriginal Cultural Heritage Sites 2 All previously recorded Aboriginal sites are located outside the Approved 21 Year Mine Disturbance Limit as presented on Figure 1. Cultural or scientific significance was not assigned to Aboriginal heritage sites identified as part of the Bengalla EIS. BMC is currently preparing a new EIS to support an application for continuation of mining which will ensure previously recorded sites are part of a contemporary Aboriginal archaeological assessment and assigned appropriate significance classifications. 3.0 Aboriginal Community Consultation 3 Since the release of OEH s Aboriginal cultural heritage consultation requirements for proponents 2010 (DECCW 2010) future consultation will be conducted in accordance with its requirements for all matters concerning Aboriginal Cultural Heritage at Bengalla. During the audit period, this has been undertaken in relation to the most recent Continuation of Bengalla Mine Environmental Impact Statement (Hansen Bailey Bengalla, September 2013). 4.0 Management Strategies 4.1 The following management strategies will be undertaken at Bengalla consistent with CNA s ISO14001 Certified Environmental Management System (EMS) to ensure that no known Aboriginal Cultural Heritage sites are impacted by mining or associated activities without appropriate approvals being obtained and to ensure that any newly identified sites are reported appropriately. 4.3 All Aboriginal Cultural Heritage sites that have been identified by BMC are recorded on a Geographical Information System (GIS) database and held onsite During the site visit the auditors viewed to assist in their management. All previously recorded Aboriginal sites are Bengalla's GIS system and confirmed that located outside the Approved 21 Year Mine Disturbance Limit as presented on these records are maintained and easily Figure 1. available to ensure unintentional disturbance In addition, sites located in proximity to the operations areas (B10 (part), B14, does not take place. B15, B16, B17, B18, B19, B20, B21 and B33) have been either fenced or appropriately signposted to ensure they are not impacted. 4.4 As a component of the Coal & Allied Health and Safety Induction all employees and contractors receive Cultural Heritage training which assists in building the knowledge base surrounding Aboriginal cultural heritage. In addition the site specific Bengalla induction has also been recently updated to encompass additional detail regarding protection and management of Aboriginal Cultural Heritage items and the Ground Disturbance Permit (GDP) process. This induction requires that all personnel and contractors are also made aware of the management issues associated with specific BMC Aboriginal Cultural Heritage sites and the requirement to keep clear of marked sites and report any previously unidentified sites to the Environmental Specialist. Aboriginal and European heritage is contained within the generic site environmental induction training. ACHMP Page 1

286 Audit Protocol: Aboriginal and Cultural Heritage Management Plan 4.5 All project and operational work areas subject to ground disturbance require the completion of a comprehensive GDP prior to any activities requiring ground disturbance to ensure that the area does not contain Aboriginal Cultural Heritage material. GDPs are required to all land that is managed or owned by BMC that have not previously been disturbed by mining or mining associated activities. A component of the GDP is the requirement to assess for Aboriginal cultural heritage which entails (depending on the locality of the GDP) the completion of a AHIMS database search followed by a due diligence assessment by suitably qualified archaeologist. This assessment is also then cross checked against the Bengalla GIS archaeological database. Interviews with Bengalla staff confirmed that this is undertaken as per the site's Ground Disturbance Permit system. During the site visit the auditors viewed Bengalla's GIS system and confirmed that these records are maintained and easily available to ensure unintentional disturbance does not take place. 4.5 If any ground disturbance is required on BMC land then the relevant approvals will be sought and will include the completion of the GDP as described above. Interviews with Bengalla staff confirmed that this is undertaken as per the site's Ground Disturbance Permit system. 4.7 Monitoring for human remains and Aboriginal Cultural Heritage material will be undertaken during the topsoil stripping and overall mining processes at Bengalla. When the drainage diversion works took place during the audit period, specific contractor training was provided on this issue. 4.7 If human remains are encountered, all works will cease in the area and the Environmental Specialist (Extension Number (02) ) or BMC main office (Extension Number (02) ) will be immediately notified who will in turn notify the General Manager. The General Manager will then contact the local Muswellbrook police on (02) During this time no one is to interfere with the surrounding area. 4.7 The Environmental Specialist will notify OEH and representatives of the local Aboriginal community if human remains are determined to be of Aboriginal origin and appropriate management measures will be determined through consultation with them. Representatives of the Aboriginal community will be present during all investigations of Aboriginal remains. 4.8 If Aboriginal Cultural Heritage material or sites other than human remains are identified during mining activities at Bengalla, works will cease and the Environmental Specialist will be contacted. Prior to the recommencement of any works the Environmental Specialist will have the site assessed by a suitably qualified archaeologist and any necessary additional approvals will be sought. ACHMP Page 2

287 Audit Protocol: Aboriginal and Cultural Heritage Management Plan 4.8 If it is determined a non compliance with this AHMP or GDP has occurred then the following steps would be implemented: 1. Check and validate the non-compliance with this AHMP or GDP; 2. If non compliance has been determined by suitably qualified professions BMC will notify the representatives of the Aboriginal community, OEH and DP&I as soon as practicable after awareness of the non compliance; 3. Undertake a preliminary investigation to establish the cause(s) for the non compliance and determine whether any changes to the Aboriginal heritage management system are required; 4. Submission of the preliminary investigation to the representatives of the Aboriginal Community, OEH and DP&I within 14 days of completion of the preliminary investigation report; 5. If the preliminary investigation report recommends further detailed investigations these would be conducted in consultation with the representatives of the Aboriginal community, OEH and DP&I; and 6. If required implement appropriate remedial measures developed in consultation with representatives of the Aboriginal community, OEH, and DP&I including a response to the outcomes of the investigations. 5.0 Reporting and Review 5 Management outcomes will be reported by the following methods: Archaeological Survey and Salvage Reports to OEH and representatives of the local Aboriginal community (as required); Activities which relate to Aboriginal Cultural Heritage summarised in the Bengalla Annual Review (formerly Annual Environmental Management Report); and A review of this Management Plan at least once every 5 years or as required by DA 211/93 (M4) Schedule 5, Condition 4. During the audit period, this has been undertaken in relation to the most recent Continuation of Bengalla Mine Environmental Impact Statement (Hansen Bailey Bengalla, September 2013). 5 A finalised copy of this AMP will be made available to the representatives of the local Aboriginal community and OEH following approval by DP&I. Interviews with Bengalla staff confirmed that this was done. The plan is also publically available on the Bengalla website. ACHMP Page 3

288 AECOM Independent Environmental Audit 8 This page has been left blank intentionally. Revision B Prepared for Bengalla Mining Company Pty Limited ABN:

289 AECOM Independent Environmental Audit Appendix Q Audit Protocol: Bengalla European Heritage Management Plan (Bengalla, 2012) Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

290 AECOM Independent Environmental Audit q-1 Appendix Q Audit Protocol: Bengalla European Heritage Management Plan (Bengalla, 2012) Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

291 Audit Protocol: European Heritage Management Plan Reference Requirement Evidence Audit Finding Bengalla Mining Company Pty Limited European Heritage Management Plan (Bengalla, September 2012) 2.0 Management Requirements 2.3 Bengalla EIS 2.3 The European heritage assessment in the Bengalla EIS discusses site works for the Bengalla Homestead and Overdene and recommends that: arrangements be made to facilitate the future restoration of Bengalla (Homestead) and Overdene (Homestead)". 2.3 These recommended works are outlined in Appendix 13 (Heritage Assessment) of the Bengalla EIS and include: Structural works including repairing footings, masonry, brickwork and structural timbers; Repairs to detailed timber and joinery; Repairs to internal finishes including hard plaster, ceilings, joinery, floors and details such as fire places; Painting and decorating; Reconnection of services; Refitting of kitchens, bathrooms and laundries; Restoration of the curtilage of the buildings to include fencing and landscaping; and The collation of a historical record of each site and provision of a historical marker (Suters Architects Snell, 1993). During the site visit the auditors viewed contractor invoices indicating that maintenance works had been undertaken during the audit 2.3 Further, Section of the Bengalla EIS provided management actions in order to protect the Bengalla Homestead and Overdene including: Recording of existing items, including all structures within the curtilage, and with owners consent, internal features, a photographic inventory and collation of documentary evidence relating to the property; This is included within the Bengalla Homestead Conservation Management Plan (Bengalla, September 2012) and the Overdene Conservation Management Plan (Bengalla, September 2012) 2.3 Preservation measures of each property to prevent unauthorised entry, vandalism and theft, deterioration and to minimise damage from dust and vibration; The auditors viewed the fencing around this property during the site visit. 2.3 Temporary reinforcement to minimise vibration damage; Interviews with Bengalla staff and a review of contractor invoices confirmed that the Overdene property's chimneys were reinforced during the audit period to protect it against vibration. 2.3 Regular monitoring; Quarterly inspections continued to take place during the audit period, as reported in section 3.15 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and in section 4.11 of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013). 2.3 Installation of fire detection and security systems; Bengalla Homestead has been fitted with fire extinguishers and has restricted access by virtue of being situated on Bengalla owned land. 2.3 Regular maintenance, including cleaning to remove any dust build-up; and During the site visit the auditors viewed contractor invoices indicating that maintenance works had been undertaken during the audit 2.3 Restoration of the residence once impacts are within accepted standards (BMC EIS, 1993). EHMP Page 1

292 Audit Protocol: European Heritage Management Plan 2.4 Previous BMC European Heritage Management Plan 2.4 Future site conservation of the Bengalla Homestead and Overdene will align with the previous management plan commitments described below: Once mining operations which may directly impact the site (primarily blasting effects) are completed, BMC will commence the conservation of Bengalla Homestead comparable to the state it was in prior to the acquisition of the site; and 2.4 Once mining operations which may directly impact the site (particularly blasting affects) are completed, BMC will assess the conservation of Overdene and return it to the comparable state it was in prior to the acquisition of the site. 2.5 BMC Internal Commitments Procedures and Standards Coal & Allied (CNA) Environmental Standard (ES) 2 Environmental, Social and Cultural Impact Management requires BMC to maintain records of European heritage sites, and manage all sites in a manner consistent with the relevant heritage legislation CNA Environmental Procedure (EP) 2.1 Cultural Heritage Management, discusses the management of European heritage sites. Under this EP, any relevant state significant sites are to be listed on the State Heritage Register and approval must be sought if any disturbance occurs EP 2.1 also provides for the management of sites listed on the Register of the National Estate, for which any relevantly listed heritage items are to be managed in consultation with the Australian Heritage Council Mining Operations Plan The approved Bengalla Mine Mining Operations Plan (MOP) (approved by the then Department of Primary Industries Mineral Resources (DPI) dated December 2006) for the period 2007 to 2012 also discusses the management of European heritage sites In the MOP, BMC commits to developing a restoration program in consultation with the NSW Heritage Branch for the Bengalla Homestead. The Bengalla Homestead is also to be excised from Mining Lease (ML 1397) following restoration. The Bengalla Homestead Conservation Management Plan (Bengalla, September 2012) contains the restoration plan for this property. This excise took place during the audit period as reported in section of the Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) Annual Review Each year, BMC is required to include comment on any heritage management actions carried out on site in its Annual Review Report. This Report provides an outline of general maintenance works carried out for the Bengalla and Overdene homesteads. This information is included in section 3.15 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and in section 4.11 of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) EHMP Page 2

293 Audit Protocol: European Heritage Management Plan 4.0 Management Measures 4.2 Site Specific Management Measures 4.2 Bengalla Homestead: Restore Bengalla Homestead (Envirosciences Pty Ltd, 1993) Develop restoration plan (BMC MOP) Excise Bengalla from the Mining Lease (BMC MOP) Reinstate Overton Road when the conveyor has been relocated (BMC MOP) Installation of fire detection and security systems (Envirosciences Pty Ltd, 1993) Regular maintenance, including cleaning to remove dust build-up (Envirosciences Pty Ltd, 1993) Annual dilapidation surveys to monitor for the effects of vibration and long-term vacancy (Envirosciences Pty Ltd, 1993) Manage Bengalla in accordance with the CMP in Appendix B, which addresses the management commitments The Bengalla Homestead Conservation Management Plan (Bengalla, September 2012) contains the restoration plan for the property. This excise took place during the audit period as reported in section of the Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011). The reinstatement of Overton Road has not yet been triggered. Bengalla Homestead has been fitted with fire extinguishers and has restricted access by virtue of being situated on Bengalla owned land. Annual structural surveys continued to be undertaken during the audit period, as reported in section 3.15 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and in section 4.11 of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013). 4.2 Overdene Restore Overdene (Envirosciences Pty Ltd, 1993) Installation of fire detection and security systems (Envirosciences Pty Ltd, 1993) Regular maintenance, including cleaning to remove dust build-up (Envirosciences Pty Ltd, 1993) Annual dilapidation surveys to monitor for the effects of vibration and long-term vacancy (Envirosciences Pty Ltd, 1993) Manage Overdene in accordance with the CMP in Appendix C, which addresses the management commitments The Overdene Conservation Management Plan (Bengalla, September 2012) contains the restoration plan for the property. A 2 m high security fence has been installed at the property during the audit period and the property is fitted with fire fighting equipment. Annual structural surveys continued to be undertaken during the audit period, as reported in section 3.15 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and in section 4.11 of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013). 4.2 Overton Homestead: Manage Overton in line with BMC policy on utilising acquired lands and properties where possible 4.2 Keys Family Private Cemetery: Maintaining public access to the site Regular maintenance and upkeep of the grounds Interviews with Bengalla staff and a review of contractor involves confirmed that these works are undertaken, including fence maintenance. 4.2 Old Bengalla (Dalmar Stud): 2004 consultation with MSC determined the barn / stable be allowed to deteriorate naturally Ongoing maintenance of the grounds as required Follow archaeological protocol outlined in Section 4.0 should works be proposed in the area Interviews with Bengalla staff and a review of contractor involves confirmed that these works are undertaken, including fence maintenance. This property is currently under lease. EHMP Page 3

294 Audit Protocol: European Heritage Management Plan 4.2 Blunt's Butter Factory: Undertake a visual impact assessment (found in Appendix D) Liaise with MAC to enact measures to reduce the visual impact of Bengalla Mine on Edinglassie MAC have indicated that management commitments (found in Appendix D) are not permitted and Edinglassie will be managed in accordance with their European Heritage Management Plan (MAC-ENC-MTP-018). The visual impact assessment has already been prepared as per Appendix D. Visual impact measures have not been undertaken during the audit period, as agreement cannot be obtained with Mt Arthur Coal. It is recommended that this requirement is removed from the next version of the plan. - Recommendatio n Made 4.2 Rous Lench: Undertake a visual impact assessment (found in Appendix D) Liaise with MAC to enact measures to reduce the visual impact of Bengalla Mine on Rous Lench Maintain operations so that blasting vibration and overpressure levels fall under management criteria MAC have indicated that management commitments (found in Appendix D) are not permitted and Edinglassie will be managed in accordance with their European Heritage Management Plan (MAC-ENC-MTP-018). Liaise with MAC regarding blast vibration and overpressure levels where required This has not been undertaken during the audit period, as agreement cannot be obtained with Mt Arthur Coal. It is recommended that this requirement is removed from the next version of the plan. - Recommendatio n Made 4.3 General Management Measures Visual Impact Mitigation To minimise the offsite impacts of the development to surrounding areas where possible, BMC has implemented an extensive system of visual impact management via the establishment of a range of visual tree screens, vegetated earth bunds and vegetation corridors in key areas across the site and on neighbouring properties. This was observed by the auditors during the site visit BMC is committed to the process of maintaining and expanding visual management measures on its land to ensure that mitigation measures for Edinglassie and Rous Lench Homesteads remain in place As recommended in the visual impact assessment (see Appendix D), BMC proposes to establish additional foreground vegetation screening in defined areas on the Edinglassie and Rous Lench properties in consultation with MAC. This additional foreground vegetation screening is anticipated to conceal a significant proportion of mining operations and as a result, minimise the moderate visual impacts experienced at these properties. This has not been undertaken during the audit period, as agreement cannot be obtained with Mt Arthur Coal. It is recommended that this requirement is removed from the next version of the plan. - Recommendatio n Made EHMP Page 4

295 Audit Protocol: European Heritage Management Plan BMC will continue to consult with MAC, where required, regarding the effectiveness of any tree screening established to assist in reducing visual impacts to Edinglassie Homestead and Rous Lench Homestead. This has not been undertaken during the audit period, as agreement cannot be obtained with Mt Arthur Coal. It is recommended that this requirement is removed from the next version of the plan. - Recommendatio n Made Unexpected Find Procedure The following procedure guides the management of an unexpected and previously unidentified finds during the course of operations. Finds includes artefact scatters (glass, animal bone, ceramic, brick, metal etc.), building foundations, earthworks of unknown origin (i.e. not associated with BMC operations): All work in the area is to cease immediately; Alert the Environmental Specialist to the find; If necessary, protect the area with fencing; Engage a suitably qualified archaeologist to undertake an assessment of the finds; The assessment should be undertaken using the guidelines Assessing Significance for Historical Archaeological Sites and Relics (NSW Heritage Branch, 2009); On the advice of the archaeologist, if necessary, prepare an Impact Assessment and Research design and methodology to submit to the Heritage Branch for a Section 140 excavation permit or exception; Undertake the archaeological mitigation in accordance with the prepared documents and the permit/exception issued by the Heritage Branch; and Once the site has been mitigated to the satisfaction of the archaeologist and the Heritage Branch, works may resume in the area Management of Human Remains In the event that operations reveal possible human skeletal material (remains), the following procedure is to be followed: When suspected human remains are exposed, all construction work is to cease immediately in the near vicinity of the find location and the General Manager on site is to be immediately notified. The General Manager will contact the Police at the earliest reasonable time; An area of 5 m radius is to be cordoned off by temporary fencing around the exposed human remains site - work can continue outside of this area as long as there is no risk of interference to the human remains or the assessment of human remains. Assessment of risk may utilise the risk matrix provided within the NSW Health Policy directive on the exhumation of human burials; Contact the OEH Environment line on and the Heritage Branch on ; and A physical or forensic anthropologist should be commissioned by BMC to inspect the remains in situ (unless otherwise directed by the police), and make a determination of ancestry (Aboriginal or non-aboriginal) and antiquity (pre-contact, historic or modern); a) if the remains are identified as modern the area is deemed as crime scene; or b) if the remains are identified as Aboriginal, the Environmental Specialist will notify OEH and representatives of the local Aboriginal community and appropriate management measures will be determined through consultation with them. Representatives of the Aboriginal community will be present during all investigations of Aboriginal remains; or c) if the remains are as non-aboriginal (historical) remains, the site is to be secured and the Heritage Branch is to be contacted. EHMP Page 5

296 Audit Protocol: European Heritage Management Plan The above process functions only to appropriately identify the remains and secure the site. From this time, the management of the area and remains is to be determined through one of the following means: If the remains are identified as a modern matter, liaise with the police and/or the Coroner s Office and/or NSW Health with respect to the exhumation of the remains; If the remains are identified as Aboriginal, liaise with OEH and Aboriginal stakeholders; If the remains are identified as non-aboriginal (historical), liaise with the Heritage Branch; and If the remains are identified as not being human then work can recommence without delay Induction Program All BMC site inducted workers will be inducted into their responsibilities to avoid damage to European heritage and to report any human remains that may be uncovered in the course of operations. The induction includes the following points: European sites that have been recorded within the area; These sites are not to be intentionally or unintentionally damaged; In the event that a previously unidentified site is uncovered work should stop and the BMC Environmental Specialist contacted; and In the event that bones are uncovered, work should stop and the BMC Environmental Specialist contacted immediately. The first two points were included in the induction witnessed by the auditors at the time of the audit. Bengalla provided the auditors with evidence verifying the bottom two points are present in the induction As required by Condition 29 (C) of DA 211/93 (M4) detailed archival photographic recording was undertaken of both the Bengalla Homestead and Overdene Homestead in February The archival recording was complied in accordance with Heritage Branch guidelines How to Prepare Archival Records of Heritage Items (1998) and Photographic Recording Of Heritage Items Using Film or Digital Capture (2006). A copy of the archival recordings of the Bengalla Homestead and Overdene Homestead is available to view at BMC or the Heritage Branch. The Bengalla Homestead Conservation Management Plan (Bengalla, September 2012) and the Overdene Conservation Management Plan (Bengalla, September 2012) fulfil these requirements. 6.0 Reporting and Review 6.0 Management outcomes for sites of European heritage at Bengalla Mine will be communicated and reported by the following methods: Regular presentations to BMCCC; Summaries provided in the Bengalla Annual Review; Correspondence with NSW Heritage Branch, DP&I and MSC as required; and Five yearly review of this EHMP. The auditors viewed CCC meeting minutes showing where this has been discussed. This information is included in section 3.15 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and in section 4.11 of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013). The auditors saw the review history of the plan, which showed how it had been updated during the audit period in consultation with the relevant agencies. EHMP Page 6

297 AECOM Independent Environmental Audit Appendix R Audit Protocol: Bengalla Homestead Conservation Management Plan (Bengalla, 2012) Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

298 AECOM Independent Environmental Audit r-1 Appendix R Audit Protocol: Bengalla Homestead Conservation Management Plan (Bengalla, 2012) Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

299 Audit Protocol: Bengalla Homestead Conservation Management Plan Reference Requirement Evidence Audit Finding Bengalla Homestead Conservation Management Plan (Bengalla, September 2012) 2.0 Regulatory Framework 2.3 The Heritage Act Bengalla is not listed on the SHR, however, a section 140 permit or exception will be required if areas of archaeological sensitivity are to be disturbed. 2.4 Muswellbrook LEP (2009) During the audit period no works requiring a section 140 permit were completed. 2.4 MSC require a Statement of Heritage Impact accompany a Development Application to alter the exterior fabric, make structural changes to the interior, subdivide or erect another building. 2.5 Hunter Regional Environmental Plan (Heritage) (1989) During the audit period no works requiring a Statement of Heritage Impact were completed Clause 7 of the Hunter REP provides the process for regulating the development of heritage listed items. Bengalla is listed on Schedule 4 of the REP and alterations to the house therefore require MSC approval. 6.0 Conservation Policy 6.1 Conservation Strategies During the audit period, no alterations requiring MSC approval have been completed. The challenge in the short to medium term is to maintain the Complex to a level that will enable future uses to be readily achievable without major works. Bengalla AEMR 2008 states that Bengalla intended to carry out maintenance works only until 2012, when the cessation of mining activities in the area was anticipated. With the approval of DA 211/93 (M4), activities associated with mining in the area will continue until mid 2017, with future approvals presently being sought beyond this which if granted, will restrict public access until It is therefore necessary to reconsider the conservation policy. 6.3 Statement of Conservation Policy Archaeological Investigations Management Before ground disturbance is undertaken within the curtilage an archaeological assessment must be undertaken; Areas of high archaeological sensitivity are indicated on Figure 6 and outlined in Section 4.10 and should be avoided, where possible; The assessment must be undertaken by a suitably qualified and experienced archaeologist; Disturbance will require a Section 140 permit or exception under the Heritage Act 1977 as works within the curtilage have not been approved under the Part 3A Conditions of Consent. The Statement of Significance should be accepted as a guiding principle in the management of the Complex; The current Bengalla Homestead Conservation Management Plan (Bengalla, September 2012) fulfils these requirements. The current Bengalla Homestead Conservation Management Plan (Bengalla, September During the 2012) audit fulfils period these no requirements. works within the curtilage requiring a section 140 permit or exception have been completed. The Bengalla Mining Company Pty Limited European Heritage Management Plan (Bengalla, September 2012) contains this statement of heritage significance Conservation and maintenance of the Complex should be in accordance with the principles of the Burra Charter; The ongoing management of Bengalla Homestead was not found to be inconsistent with the Burra Charter Concerted effort should be made to undertake the program of works outlined in Section 7.0; A review of the management measures employed at Bengalla Homestead was undertaken by the auditors, and this list of conservation measures was generally found to have been complied with The security of the property should be maintained at all times; and Bengalla Homestead has been fitted with fire extinguishers and has restricted access by virtue of being situated on Bengalla owned land. Bengalla Homestead CMP Page 1

300 Audit Protocol: Bengalla Homestead Conservation Management Plan BMC is to clearly identify the individual responsible for the oversight of this CMP. 7.0 Schedule of Conservation Works Table 9 of the Bengalla Homestead CMP identifies management measures and responsibilities of individuals associated with the management of the Bengalla Homestead. 7.0 The following provides a schedule of works required to fulfil the Conservation Policy. In accordance with Heritage Branch guidelines, the schedule has been divided into short, medium and long term goals (as defined in Section 6.2), as well as the on-going maintenance schedule for the Complex. Where appropriate the following Schedule should be overseen by a suitably qualified architect with heritage experience and should be in reference to the Maintenance Series found on the Heritage Branch website 7.0 The works are to follow Burra Charter principles, with the first option being to restore (see definitions) the feature. Should the feature be beyond restoration, it is to be replaced like for like (reconstructed). The ongoing management of Bengalla Homestead was not found to be inconsistent with the Burra Charter. 7.1 On-going Maintenance 7.1 Annual structural inspection and reporting in the Annual Review; Annual structural surveys continued to be undertaken during the audit period, as reported in section 3.15 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and in section 4.11 of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013). 7.1 Complete works identified in the annual structural inspection as being necessary for the structural integrity of the Complex s buildings within a year of identification; Restoration and maintenance works have been ongoing throughout the audit period, as reported in section 3.15 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and in section 4.11 of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013). 7.1 Complete quarterly checks and repairs, if necessary, of the rooves, all downpipes, guttering and drainage gulleys for leaks and to ensure free-flowing drainage by BMC Properties Manager or their appropriately qualified delegate. These quarterly inspections continued to take place during the audit period, as reported in section 3.15 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and in section 4.11 of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013). Bengalla Homestead CMP Page 2

301 Audit Protocol: Bengalla Homestead Conservation Management Plan 7.1 Continuation of security to ensure the prevention of vandalism and/or damage; Bengalla Homestead has been fitted with fire extinguishers and has restricted access by virtue of being situated on Bengalla owned land. 7.1 Regular pest maintenance conducted on an as needed basis or if identified during structural inspections; Restoration and maintenance works have been ongoing throughout the audit period, as reported in section 3.15 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and in section 4.11 of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013). 7.1 Regular internal cleaning on a six monthly basis, with allowance for cleaning on an as needs basis as necessary; Restoration and maintenance works have been ongoing throughout the audit period, as reported in section 3.15 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and in section 4.11 of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013). 7.1 Regular, ongoing inspections and maintenance of the site and grounds including mowing and weed control to maintain a satisfactory appearance Restoration and maintenance works have been ongoing throughout the audit period, as reported in section 3.15 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and in section 4.11 of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013). Bengalla Homestead CMP Page 3

302 Audit Protocol: Bengalla Homestead Conservation Management Plan 7.1 The monitoring and management of blasting impacts and temporary reinforcement, as required. No exceedances of this blast criteria for the Bengalla Homestead have occurred during the audit 7.2 Short-term ( ) Bengalla Homestead CMP Page 4

303 Audit Protocol: Bengalla Homestead Conservation Management Plan Annual structural integrity inspections have continued during the audit period as reported in section 3.15 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and in section 4.11 of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013). 7.2 Ongoing inspections and maintenance have continued during the audit period as reported in section 3.15 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and in section 4.11 of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013). Bengalla Homestead CMP Page 5

304 Audit Protocol: Bengalla Homestead Conservation Management Plan Medium Term ( ) Bengalla Homestead has restricted access by virtue of being situated on Bengalla owned land Bengalla Homestead CMP Page 6

305 Audit Protocol: Bengalla Homestead Conservation Management Plan 7.4 Long-term (2018+) 7.4 BMC will investigate long term options for the Bengalla Complex during the next revision of the European Heritage Management Plan and closer to the cessation of mining. The plans were updated in September 2012 during the audit 7.4 As per the original EIS dated 1993 the residence will be restored once impacts are within acceptable standards. Final restoration phases will be carried out once mining operations have been completed and in consultation with a heritage architect, the Heritage Branch, MSC and DP&I. 7.4 The Complex will be restored to a condition comparable to the state it was acquired in. 7.4 The Complex will be maintained to further prevent deterioration until restoration is undertaken. During the site visit the auditors viewed contractor invoices indicating that maintenance works had been undertaken during the audit 7.4 The following is provided as an indication of the direction and works currently under consideration by BMC, but is subject to future operation requirements. 7.4 General and Building 1 Reasonable endeavours will be undertaken to achieve occupation of the Homestead post mining; Reinstate original veranda design, if not previously undertaken; Reinstate garden and leisure facilities, including tennis court carriage loop and sundial if available. 7.4 Building addition Remove addition, with due care that potential archaeological deposits relating to an earlier timber structure are not impacted or are archaeologically investigated. 7.4 Building 3 Underground cistern Investigate the feasibility of returning the cistern to working order. 7.4 Building 4 Garden Lodge Consideration should be given to a reconstruction on the foundations. 7.4 Building 5 Toilet/Shower Restore functions to working order. 7.4 Building 6 - Gazebo Undertake on-going maintenance. 7.4 Building 7 Laundry Should an additional outbuilding be required by the future use of the site, consider reconstruct laundry under the direction of a heritage architect and with reference to materials salvageable. Reconstruction need not retain the same function. Bengalla Homestead CMP Page 7

306 Audit Protocol: Bengalla Homestead Conservation Management Plan 7.4 Building 8 Book-keeper s Cottage Restore book-keeper s cottage under the direction of a heritage architect. 7.4 Building 9 Tennis Court Reinstate to working order. 7.4 Building 10 Water-tower Water-tower is expected to have been removed by this time. No works required. 7.4 Building 11 Machinery shed Undertake on-going maintenance. 7.4 Building 12 Modern Water-Tower Undertake on-going maintenance. 7.4 Building 13 Stockyards No works required. 7.4 Building 14 Stables (archaeological site) No works required. Ensure the area is not impacted by works fence if necessary. 7.4 Building 15 Hay-shed Should the Complex require a hay-shed in the future, consideration be given to using a similar form to the pre-existing hay-shed. 7.4 Building 16 Shed and Yard Shed is expected to have been removed by this time. No works required. 9.0 Reporting and Review 9.0 This CMP should be reported and reviewed in the following manner: This CMP should be adopted by BMC and be used as the foundation for decisions regarding the Complex; The Bengalla Mining Company Pty Limited European Heritage Management Plan (Bengalla, September 2012) continues to be implemented by Bengalla. 9.0 As such, it should be available to those connected with the care, maintenance and restoration of the Complex; During the audit a review was conducted of the Bengalla website, and this information was found to be available. 9.0 Regular presentation to BMCCC; The auditors viewed CCC meeting minutes showing where this has been discussed. Bengalla Homestead CMP Page 8

307 Audit Protocol: Bengalla Homestead Conservation Management Plan 9.0 Summaries provided in the Bengalla Mine Annual Review; This information is included in section 3.15 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and in section 4.11 of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) 9.0 Correspondence with NSW Heritage Branch, DP&I and MSC as required; and The auditors saw the review history of the plan, which showed how it had been updated during the audit period in consultation with the relevant agencies. 9.0 Five yearly review of this CMP. The auditors saw the review history of the plan, and found it to have been updated several times during the audit Bengalla Homestead CMP Page 9

308 AECOM Independent Environmental Audit 8 This page has been left blank intentionally. Revision B Prepared for Bengalla Mining Company Pty Limited ABN:

309 AECOM Independent Environmental Audit Appendix S Audit Protocol: Overdene Conservation Management Plan (Bengalla, 2012) Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

310 AECOM Independent Environmental Audit s-1 Appendix S Audit Protocol: Overdene Conservation Management Plan (Bengalla, 2012) Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

311 Audit Protocol: Overdene Conservationa Management Plan Reference Requirement Evidence Audit Finding Overdene Conservation Management Plan (Bengalla, September 2012) 2.0 Regulatory Framework 2.4 Muswellbrook LEP (2009) 2.4 Muswellbrook Shire Council require a Statement of Heritage Impact accompany a Development Application to alter the exterior fabric, make structural changes to the interior, subdivide or erect another building. 2.5 Hunter Regional Environmental Plan (Heritage) (1989) 2.5 Overdene is listed on Schedule 3 of the REP and alterations to the house therefore require MSC approval. 6.0 Conservation Policy 6.1 Conservation Strategies 6.1 BMC is committed to returning Overdene to a state comparable to that it was in prior to acquisition. 6.3 Statement of Conservation Policy Archaeological Investigations Archaeological assessment must precede disturbance of areas of high sensitivity, as outlined in Section The assessment must be undertaken by a suitably qualified and experienced archaeologist; and The Overdene Conservation Management Plan (Bengalla, September 2012) fulfils these requirements Disturbance of these areas will require a Section 140 permit or exception under the Heritage Act During the audit period no works requiring a section 140 permit were completed Management The Statement of Significance should be accepted as a guiding principle in the management of Overdene; The Bengalla Mining Company Pty Limited European Heritage Management Plan (Bengalla, September 2012) contains this statement of heritage significance Conservation, preservation and maintenance of Overdene should be in accordance with the principles of the Burra Charter; The ongoing management of Overdene was not found to be inconsistent with the Burra Charter Concerted effort should be made to undertake the program of works outlined in Section 7.0; A review of the management measures employed at Overdene was undertaken by the auditors, and this list of conservation measures was generally found to have been complied with The security of the property should be maintained at all times; and A 2 m high security fence has been installed at the property during the audit period and the property is fitted with fire fighting equipment BMC is to clearly identify the individual responsible for the oversight of this CMP. Table 6 of the Overdene CMP identifies management measures and responsibilities of individuals associated with the management of Overdene. 7.0 Schedule of Conservation Works 7.0 The following provides a schedule of works required to fulfil the Conservation Policy. In accordance with Heritage Branch guidelines, the schedule has been divided into short, medium and long term goals (as defined in Section 6.2.2), as well as the on-going maintenance schedule. Where appropriate, the following schedule should be overseen by a suitably qualified architect with heritage experience and should be in reference to the Maintenance Series found on the Heritage Branch website Overdene CMP Page 1

312 Audit Protocol: Overdene Conservationa Management Plan 7.0 The works are to follow Burra Charter principles, with the first option being to restore (see definitions) the feature. Should the feature be beyond restoration, it is to be replaced like for like (reconstructed). The ongoing management of Overdene was not found to be inconsistent with the Burra Charter. 7.1 On-going Maintenance 7.1 Annual structural inspection and reporting of results in the Annual Review; These inspections continued to take place during the audit period, as reported in section 3.15 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and in section 4.11 of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013). 7.1 Complete works identified in the annual structural inspection as being necessary for the structural integrity of the Complex s buildings within a year of identification; These inspections continued to take place during the audit period, as reported in section 3.15 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and in section 4.11 of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013). 7.1 Maintain, preserve, reconstruct or restore house features where required to prevent deterioration; Appropriate management measures continued to take place during the audit period, as reported in section 3.15 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and in section 4.11 of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013). 7.1 Complete quarterly checks and repairs, if necessary, of the rooves, all downpipes, guttering and drainage gulleys for leaks and to ensure free-flowing drainage by BMC Properties Manager or their appropriately qualified delegate. These quarterly inspections continued to take place during the audit period, as reported in section 3.15 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and in section 4.11 of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013). Overdene CMP Page 2

313 Audit Protocol: Overdene Conservationa Management Plan 7.1 Continuation of security to prevent vandalism and/or damage; During 2011, for instance, Bengalla installed 2 m high security fences at Overdene. 7.1 Ongoing inspections and maintenance of the site and grounds for gardening, mowing and general upkeep; During the site visit the auditors viewed contractor invoices indicating that maintenance works had been undertaken during the audit 7.1 Pest management conducted on an as needed basis or if identified during structural inspections; and These pest inspections continued to take place during the audit period, as reported in section 3.15 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and in section 4.11 of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013). 7.1 The monitoring and management of blasting impacts and temporary reinforcement as required. Interviews with Bengalla staff and a review of contractor invoices confirmed that the Overdene property's chimneys were reinforced during the audit period to protect it against vibration. No exceedances of this blast criteria for the Bengalla Homestead have occurred during the audit Maintenance activities will be conducted to ensure the following: There will be no affect the general form and layout of the house; The existing setting will be retained without new development in its immediate 7.1 setting; and Views to and from the house across the floodplain to Muswellbrook will be retained. 7.2 Short-term ( ) The site continues to be managed in this manner Overdene CMP Page 3

314 Audit Protocol: Overdene Conservationa Management Plan Medium Term ( ) Long-term (2018+) 7.4 The restoration of Overdene will be considered following the conclusion of the mine life of Bengalla Mine and in consultation with a heritage architect, the Heritage Branch, MSC and DP&I. The conservation policy outlined in Section 6.0, together with the Statement of Significance (Section 5.0) will be used to guide this process. 9.0 Reporting and Review 9.0 Management outcomes for sites of European heritage at Bengalla will be communicated and reported by the following methods: This CMP should be adopted by BMC and be used as the foundation for decisions regarding the Complex; The Bengalla Mining Company Pty Limited European Heritage Management Plan (Bengalla, September 2012) continues to be implemented by Bengalla. 9.0 As such, it should be available to those connected with the care, maintenance and restoration of the Complex; During the audit a review was conducted of the Bengalla website, and this information was found to be available. 9.0 Regular presentations to BMCCC; The auditors viewed CCC meeting minutes showing where this has been discussed. Overdene CMP Page 4

315 Audit Protocol: Overdene Conservationa Management Plan 9.0 Summaries provided in the Bengalla Mine Annual Review; This information is included in section 3.15 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and in section 4.11 of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) 9.0 Correspondence with NSW Heritage Branch, DP&I and MSC as required; and The auditors saw the review history of the plan, which showed how it had been updated during the audit period in consultation with the relevant agencies. 9.0 Five yearly review of this CMP. The auditors saw the review history of the plan, and found it to have been updated several times during the audit Overdene CMP Page 5

316 AECOM Independent Environmental Audit 8 This page has been left blank intentionally. Revision B Prepared for Bengalla Mining Company Pty Limited ABN:

317 AECOM Independent Environmental Audit Appendix T Audit Protocol: Bengalla Air Quality and Greenhouse Gas Management Plan (Bengalla, 2012) Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

318 AECOM Independent Environmental Audit t-1 Appendix T Audit Protocol: Bengalla Air Quality and Greenhouse Gas Management Plan (Bengalla, 2012) Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

319 Audit Protocol: Air Quality and Greenhouse Gas Management Plan Reference Requirement Evidence Audit Finding Bengalla Mining Company Pty Limited Air Quality and Greenhouse Gas Management Plan (Bengalla, November 2011) 3.0 Control Measures 3.1 BMC Environmental Management System EMS standards and procedures implemented at Bengalla relating to the management of air quality emissions include, but not limited to: SYS-0014 Major Hazard Management Plan Airborne Dust; CNA-10-EWI-SITE-E Dust Management, CHPP Operations; CNA-10-EWI-SITE-E2-004 Dust Management, Mobile Equipment; CAN-10-EWI-SITE-E6-016 Blasting; and EP 8.3 Air Quality - Spontaneous Combustion. In addition, the principles of the overriding Rio Tinto Environmental Performance Standard E2 Air Quality Control are also adopted at Bengalla. 3.1 These procedures and standards are regularly reviewed and audited as part of the continuous improvements of Bengalla s EMS to adopt relevant industry best practice and technology. Element 17 of the Rio Tinto HSEQ system encompasses continuous review. All policies and procedures for the site are maintained on Lotus notes to trigger review dates. A management review is undertaken each year to review the environmental performance of the site. Incidents and improvement plans are reviewed each quarter with the annual review confirming follow up has been undertaken. Any necessary actions are also managed through Lotus notes and are thereby designated to the relevant persons. Internal audits are also managed through Rio Tinto Coal Australia. Actions requiring higher priority can be entered into a global based system. 3.2 Air Quality Control Measures General Dust Mitigation 3.2 (Table 1) Dust alarms and wind speed alarms alert the Open Cut Examiner (OCE) and environmental staff about potential dust impacts. During the site visit the auditors viewed this real time monitoring in use (via computer screen in control room). 3.2 (Table 1) Bengalla ceases operations during high dust periods (as informed by the site s real-time air quality monitoring system). When hourly average wind speeds are above 5.6 m/s the site does not operate on the elevated areas of its overburden emplacement area, pre-strip area or the run of mine infill area. Interviews with Bengalla staff and observations of the site's real-time meteorological monitoring equipment confirmed that, when winds of 5.6 m/s occur, a warning alarm sounds. This is the trigger for no in pit and out of pit operations to be undertaken. 3.2 (Table 1) Forecasting is utilised to predict the likelihood of potential adverse weather conditions. When adverse conditions are anticipated operations are modified where practicable to reduce excess emissions leaving site. Modification of operations may include but are not limited to: additional frequency and use of water carts targeting specific areas, no blasting when winds exceed 10 m/s. Interviews with Bengalla staff and observations of the site's real-time meteorological monitoring equipment confirmed that the site continues to be operated in this manner. Blasting 3.2 (Table 1) 3.2 (Table 1) Blasting at restricted times. In accordance with DA 211/93 Condition 10, all blasting is conducted on site between 7 am and 5 pm Monday to Saturday inclusive. No blasting occurs on Sundays, public holidays, or at any other time without written approval of the Director-General. Individual blasts are designed to limit the potential for environmental impacts taking into account the size of individual charges, their proximity to roads and neighbouring residences, the nature of the stemming material and weather conditions. During the site visit, auditors viewed blasting records showing that blasting was undertaken within these times during the audit Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that blasting continues to be managed in this manner. 3.2 (Table 1) Public roads within 500 m of blast site closed during the blast and until they are clear of dust and fumes. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that blasting continues to be managed in this manner. Air Quality MP Page 1

320 Audit Protocol: Air Quality and Greenhouse Gas Management Plan 3.2 (Table 1) Blasting operations are assisted by the Blasting Permission System which integrates real-time meteorology (wind speed, inversion strength, wind direction). In addition during scheduling consideration is given to the size and design of the blast pattern relative to extremities of the mining areas and neighbours, material type, expected dust and or blast fume generation potential, sleep time and hot or reactive ground. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that blasting continues to be managed in this manner. 3.2 (Table 1) On the morning prior to a scheduled blast time, Bengalla Environmental Services staff check the real-time meteorological information for wind speed and direction before the blast is fired. Blasts are avoided under adverse meteorological conditions. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that blasting continues to be managed in this manner. 3.2 (Table 1) Neighbours are notified by phone, and a Blasting Hotline ( ) provides the community with daily blast times and locations. This Blasting Hotline is also advertised regularly in the local paper. Bengalla continues to operate this blasting hotline. 3.2 (Table 1) Bulldozing Coal 3.2 (Table 1) In relation to fume generation: - Blasts in weathered material not permitted to be slept > 48 hours without approval, and no other blasts are permitted to be planned to be slept > 5 days without approval. - Use of blast fume scale and logging of fume incidences. - Trialling of different explosives. - Blasts filmed where practicable to provide a library of reference data. Dozers travel on watered routes between work areas. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that blasting continues to be managed in this manner. This was observed by the auditors during the site visit. 3.2 (Table 1) Dozers travel on watered routes between work areas. This was observed by the auditors during the site visit. 3.2 (Table 1) No operations at exposed areas during high dust periods (as informed by the site s real-time air quality monitoring system). Coal Crushing and Screening This was observed by the auditors during the site visit. 3.2 (Table 1) Crushing plant enclosed within internal water sprays. The CHPP and most of the conveyors were observed by the auditors during the site visit to be fully enclosed. Water canons at the ROM pad are triggered at winds of 5.6 m/s. Cannons are also in place at the CHPP. Loading / Unloading Coal Stockpiles 3.2 (Table 1) Automated initiation of coal stockpile sprays when the wind exceeds 5.6 m/s. Coal stockpile spray systems are informed by on-line meteorological data. This system is installed and was observed by the auditors during the site visit. 3.2 (Table 1) Monitoring of the stacking machine and stockpile height to minimise drop heights. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that all stackers can be moved up and down to meet drop height requirements. 3.2 (Table 1) Visual surveillance of dust plumes visible dust not to rise above the boom height of the stacker or reclaimer or leave the bounds of the stockpile being worked. Interviews with control room staff confirmed that air quality is visually monitored for this. This is observed through real time camera monitoring. 3.2 (Table 1) Closed monitoring of reclaim operations where the machine is working raw coal or performing final cut reclaiming. This system is installed and was observed by the auditors during the site visit. Air Quality MP Page 2

321 Audit Protocol: Air Quality and Greenhouse Gas Management Plan 3.2 (Table 1) Use of stockpile sprays and/or water carts where dust cannot be controlled within the confines of the stockpile. This system is installed and was observed by the auditors during the site visit. 3.2 (Table 1) Automated stacker/reclaimers which vary their height by sensor. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that all stackers can be moved up and down to meet drop height requirements. 3.2 (Table 1) Stockpiling and recovery of ROM coal is minimised as practical. Interviews with Bengalla staff confirmed that coal is not stockpiled on the ROM pad where possible. Haul trucks generally go straight from the pit to the ROM hopper where the coal is conveyed over to the CHPP. 3.2 (Table 1) ROM coal is usually trucked from the pit to the ROM hopper, with a limited ROM stockpile maintained in case of poor weather. This was observed by the auditors during the site visit. Dragline Operations 3.2 (Table 1) Avoiding over-dragging and overflowing the material in the bucket. Interviews with Bengalla staff confirmed that the maximum drop height allowed is 10 m. 3.2 (Table 1) Lift bucket cleanly away from the dig face-hoist up with minimum spillage. This was observed by the auditors during the site visit. 3.2 (Table 1) Restrict the drop height as far as practical, particularly during windy conditions. Interviews with Bengalla staff confirmed that the maximum drop height allowed is 10 m. 3.2 (Table 1) Placement of material in a manner which avoids large rocks rolling down the spoils. This was observed by the auditors during the site visit. 3.2 (Table 1) Regular assessment of dust from dragline operations throughout the shift by the dragline operator and mine supervisor / team leader (or nominated representative). Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that the site continues to be managed in this manner. 3.2 (Table 1) Implementation of measures to ensure that visible dust from active work areas does not leave the mine site and encroach on private property. Bengalla implements a range of air quality management measures to mitigate these impacts. 3.2 (Table 1) Specific measures to limit dust from dragline operations include modifying dragline bucket movement, material placement, skilled modification of bucket movement, fill and placement of material decreases dust impact. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that the site continues to be managed in this manner. Air Quality MP Page 3

322 Audit Protocol: Air Quality and Greenhouse Gas Management Plan 3.2 (Table 1) Dust-related dragline stoppages are logged. Interviews with Bengalla staff confirmed that dragline operations are managed in this manner, and that around 300 hours each year are scheduled for dragline stoppages as required. Drilling 3.2 (Table 1) All drill rigs equipped with dust suppression systems (vacuum systems). Interviews with Bengalla staff confirmed that drill rigs are equipped as such. 3.2 (Table 1) Inspection of drill dust suppression systems to ensure they are fully operational at the start of each shift (water sprays, vacuum equipment, dust skirts to be fully operational). This is included as part of the pre-start checklist for drilling. 3.2 (Table 1) 3.2 (Table 1) 3.2 (Table 1) 3.2 (Table 1) 3.2 (Table 1) Ceasing operations if systems are not operating properly resulting in visible dust. The drill is stood down pending repairs being carried out. When moving off a drill hole, operators are required to take care not to disturb drill cuttings. Blast crew must ensure disturbance to the crust on the drill cuttings is kept to a minimum when loading the shot. All drill sites are watered down post drilling to ensure adequate crusting of drill cuttings. Visible dust triggers for suspending operations (visible dust cloud rising above drill deck is unacceptable). Visible dust is a trigger to cease drilling operations at Bengalla. Interviews with Bengalla staff confirmed that drilling operations are undertaken in this manner. This is managed as per the Bengalla Mining Company Post Blast Fume Generation Mitigation and Management Plan (Bengalla, 2007) and the Bengalla Mining Company Pty Limited Blast Management Plan (Bengalla, April 2013). Interviews with Bengalla staff confirmed that drilling operations are undertaken in this manner. Visible dust is a trigger to cease drilling operations at Bengalla. 3.2 (Table 1) Graders 3.2 (Table 1) 3.2 (Table 1) Operators can call for a water cart if the drill bench is dusty (a small water cart is available for this purpose). All haul roads are watered prior to grading. Interviews with Bengalla staff confirmed that drilling operations are undertaken in this manner. All roads are watered, and the use of water carts to water roads was observed by the auditors during the site visit. All roads are watered, and the use of water Where possible haul roads are watered immediately following grading prior to any carts to water roads was observed by the heavy vehicle traffic. auditors during the site visit. Hauling on Unsealed Roads 3.2 (Table 1) Access roads with high light vehicle traffic volumes are paved including around the administration and CHPP areas This was observed by the auditors during the site visit. 3.2 (Table 1) Trafficable areas are clearly demarcated and vehicle movements largely restricted to these areas. This was observed by the auditors during the site visit. 3.2 (Table 1) All trafficable areas and vehicle manoeuvring areas are maintained. This was observed by the auditors during the site visit. 3.2 (Table 1) Fleet optimisation to reduce vehicle kilometres travelled. Interviews with Bengalla staff confirmed that the site continues to be operated in this manner. 3.2 (Table 1) Wet suppression is applied using water carts. This was observed by the auditors during the site visit. 3.2 (Table 1) Levels of visible dust are assessed regularly by operators and the mine supervisor. This monitoring system was observed by the auditors during the site visit. 3.2 (Table 1) Additional water suppression is called for by operators when observed elevated dust levels occur. This was observed by the auditors during the site visit. 3.2 (Table 1) Interim measures that are taken to reduce dust levels (pending additional wet suppression) may include reduced vehicle speed or suspension of operations. Interviews with Bengalla staff confirmed that the site continues to be operated in this manner. Air Quality MP Page 4

323 Audit Protocol: Air Quality and Greenhouse Gas Management Plan Trucks Unloading Overburden 3.2 (Table 1) Ceasing of operations during high dust periods. Interviews with Bengalla staff and observations of the site's real-time meteorological monitoring equipment confirmed that, when winds of 5.6 m/s occur, a warning alarm sounds. This is the trigger for no in pit and out of pit operations to be undertaken. 3.2 (Table 1) 3.2 (Table 1) In general Maximum overburden dump heights are restricted to 7 m lifts. Material Transfer of Coal Enclosure or partial enclosure of conveyors. This was observed by the auditors during the site visit. This was observed by the auditors during the site visit. 3.2 (Table 1) 3.2 (Table 1) 3.2 (Table 1) Scrapers 3.2 (Table 1) Skirting fitted to conveyors at transfer points. Use of belt cleaning. Enclosed chutes. Scrapers travel on watered or chemically suppressed haul roads. This was observed by the auditors during the site visit. Interviews with Bengalla staff confirmed that the site continues to be operated in this manner. This was observed by the auditors during the site visit. This was observed by the auditors during the site visit. 3.2 (Table 1) Suspension of topsoil stripping operations during dry, windy conditions. Interviews with Bengalla staff and observations of the site's real-time meteorological monitoring equipment confirmed that, when winds of 5.6 m/s occur, a warning alarm sounds. This is the trigger for no in pit and out of pit operations to be undertaken. 3.2 (Table 1) Train Loading 3.2 (Table 1) Haul roads used by scrapers during their loading and unloading cycle will be watered. Automated loading systems, with provision made for telescopic chutes and load profiling. This was observed by the auditors during the site visit. This was observed by the auditors during the site visit. 3.2 (Table 1) Provision for rail loading facilities to be closely monitored for the spillage of coal fines and material in the vicinity of the loading bin and rail siding. Coal spillage is required to be collected and disposed of on a regular basis to eliminate the potential for wind-blown dust. Interviews with Bengalla staff confirmed that Bobcats are used to clean up these areas, however the spillage of coal is minimal anyway. Loading / Unloading of ROM Coal to / from Trucks 3.2 (Table 1) 3.2 (Table 1) Drop heights reduced as far as practicable by excavator operators. ROM hopper is equipped with a roof and is enclosed on 3-sides with automated water curtain. Interviews with Bengalla staff confirmed that the site continues to be operated in this manner. This was observed by the auditors during the site visit. 3.2 (Table 1) 3.2 (Table 1) Visual triggers for safety purposes (visible dust should not rise above the operator cabin to ensure visibility is not compromised). Visual trigger for dust mitigation. Dust mitigation measures are called for (e.g. water cart) if dust is observed to rise half way above the wheel height. Interviews with Bengalla staff confirmed that the site continues to be operated in this manner. Interviews with Bengalla staff confirmed that the site continues to be operated in this manner. 3.2 (Table 1) Application of wind speed thresholds (5.6 m/s) for defining moderate to strong winds for dust management purposes. Interviews with Bengalla staff and observations of the site's real-time meteorological monitoring equipment confirmed that, when winds of 5.6 m/s occur, a warning alarm sounds. This is the trigger for no in pit and out of pit operations to be undertaken. 3.2 (Table 1) Dust suppression sprays (or water cart) availability for use at all times during coal handling or dumping. This was observed by the auditors during the site visit. 3.2 (Table 1) Modification of operations (e.g. slower tipping) if dust cannot be controlled in the manner specified. Interviews with Bengalla staff confirmed that the site continues to be operated in this manner. Air Quality MP Page 5

324 Audit Protocol: Air Quality and Greenhouse Gas Management Plan 3.2 (Table 1) Ceasing of operations when visible dust leaves the mine site. Wind Erosion of Exposed Areas / Stockpiles Interviews with Bengalla staff confirmed that the site continues to be operated in this manner. 3.2 (Table 1) Topsoil Stripping Areas are limited to two strips ahead of mining to minimise the amount of disturbed area. All site disturbances are managed via the ground disturbance permit system. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that the site continues to be managed in this manner. 3.2 (Table 1) Topsoil stripping and topsoil stockpile volumes are tracked (and mapped) on an ongoing basis (topsoil stockpiled register). During the site visit the auditors viewed aerial mapping of stockpile locations on the site. 3.2 (Table 1) Topsoil stockpiles in place for longer than 3 months are vegetated to minimise dust generation. During the site visit the auditors observed the stockpiled topsoils to be vegetated. 3.2 (Table 1) Topsoil stockpiles have gently battered slopes with heights limited to 3 m. This is managed as per the Bengalla Topsoil Stripping Procedure (January, 2012). 3.2 (Table 1) Topsoil stripping is not undertaken during high winds. Interviews with Bengalla staff and observations of the site's real-time meteorological monitoring equipment confirmed that, when winds of 5.6 m/s occur, a warning alarm sounds. This is the trigger for no in pit and out of pit operations to be undertaken. 3.2 (Table 1) Bengalla has no tailings dam (fine material is thickened, dewatered and then combined with other reject streams for emplacement within the spoil area and capped with a minimum of 5 m of inert overburden material.) This is managed at Bengalla through the Acid Mine Drainage and Mineral Waste Management Plan (March 2007). Procedures are in place to ensure this occurs. Mine geologists plan for a 10 m buffer between reject material and final surface material. Wind Erosion of Overburden 3.2 (Table 1) Permanent rehabilitation in line with Mining Operation Plan (MOP) targets. The auditors conducted a review of rehabilitation progress at Bengalla, and found it to be generally complying with these targets. 3.2 (Table 1) Rehabilitation methods and procedures are undertaken in accordance with the Bengalla procedures. The auditors conducted a review of rehabilitation progress at Bengalla, and found it to be generally complying with these procedures. 3.2 (Table 1) As rehabilitation progresses the vegetation is actively managed. The auditors saw evidence of this ongoing rehabilitation management during the site visit. Air Quality MP Page 6

325 Audit Protocol: Air Quality and Greenhouse Gas Management Plan 3.2 (Table 1) Rehabilitation is completed opportunistically to ensure plant establishment occurs reducing dust generation from uncovered areas. Bengalla undertakes rehabilitation of areas as soon as they become available (including grass cover on windrows and temporary slopes at the outer edges of the mine). Rehabilitation monitoring is undertaken to assess the long term viability of rehabilitation. Interviews with Bengalla staff, a review of site records and the site inspection undertaken by the auditors confirmed that this rehabilitation program continues to be undertaken based on seasonal conditions and mining operations. This monitoring was evidenced by the Rehabilitation Audit Final - Eastern of overburden Dump (January, 2013). Section 5 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and section 6 of the Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) contain a summary of annual monitoring information. 3.2 (Table 1) 3.2 (Table 1) 3.2 (Table 1) Annual audit of rehabilitated areas to assess ongoing success of rehabilitation and identify areas that need remedial work. Alternative rehabilitation techniques and soil improvement options maybe trialled at Bengalla to improve the rehabilitation success of both pasture species and native tree species. Interim stabilisation of inactive spoil through vegetation and/or chemical suppression. Interim stabilisation techniques are applied on temporarily inactive open spoils. Spontaneous Combustion 3.2 (Table 1) Minimise quantity of combustible material disposed of with overburden and minimise quantity of air that can reach material that is disposed. This monitoring was evidenced by the Rehabilitation Audit Final - Eastern of overburden Dump (January, 2013). Some trials have been conducted during the audit period, including trials with organic materials and biosolids as part of rehabilitation works. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that these areas are seeded and hydromulched as required. This is managed at Bengalla through the Acid Mine Drainage and Mineral Waste Management Plan (March 2007). Procedures are in place to ensure this occurs. Mine geologists plan for a 10 m buffer between reject material and final surface material. 3.2 (Table 1) Manage the raw and clean coal stockpiles to prevent spontaneous combustion of the stockpiled coal. Vehicle Exhaust Emissions This is managed at Bengalla through the Acid Mine Drainage and Mineral Waste Management Plan (March 2007). Procedures are in place to ensure this occurs. Mine geologists plan for a 10 m buffer between reject material and final surface material. 3.2 (Table 1) All vehicles to comply with appropriate emission guidelines and equipment will be properly maintained to minimise emissions. During the site visit the auditors viewed the maintenance planning system which Bengalla has in place to ensure that its plant and equipment undergo preventative maintenance, as well as maintenance when repairs are required. The auditors also viewed plant being repaired in the workshop as required. 3.3 Supplementary Monitoring Investigations 3.3 In order to satisfy DA 211/93 Condition 23 (C), point 1 in July 2012 BMC installed video camera surveillance devices to address the supplementary monitoring and This system is installed and was observed by assess the performance of the development. The video cameras will be utilised to the auditors during the site visit. further enhance the existing air quality monitoring network. Air Quality MP Page 7

326 Audit Protocol: Air Quality and Greenhouse Gas Management Plan 3.3 Four video camera surveillance devices will be installed and continuously operated at BMC overlooking critical infrastructure of the mine site including the active mining area, fuel farm and haul roads to primarily allow for remote visualisation of the pit to support operational decision making. This system is installed and was observed by the auditors during the site visit. 3.3 Video camera surveillance devices will be installed and continuously operating and will be monitored by BMC. Individual camera devices will be clearly visible, with signs notifying people they may be under surveillance being placed at the entry to areas under surveillance. This was observed by the auditors during the site visit. 3.3 BMC may also conduct monitoring of the surveillance devices at any time in connection with an investigation of an incident at Bengalla. 3.3 BMC will also install an additional air quality monitoring device in close proximity to Bengalla to further improve site management of potential air quality impacts. The device will be trialled in a number of locations to the south of Bengalla, with the final location chosen to ensure that the device monitors air quality in the most effective manner. Interviews with Bengalla staff confirmed that this has not been installed yet. However the site is in the process of procuring this. 3.3 BMC is currently preparing an Environmental Impact Statement (EIS) to support an application for continuation of mining. Reasonable and feasible best practice dust management measures will be considered in relation to the proposed mine plan and incorporated in the EIS in consideration of future potential mining. During the audit period, this has been undertaken in relation to the most recent Continuation of Bengalla Mine Environmental Impact Statement (Hansen Bailey Bengalla, September 2013). 3.4 Pollution Reduction Programmes Wheel Generated Dust 3.4 (Table 2) Chemical or organic suppression on unpaved haul roads: Bengalla are not currently using a chemical dust suppressant. The potential future use of this product is part of ongoing discussions with the EPA as part of a pollution reduction program. The requirement for this program was only added to the EPL 6538 in March 2013, and the preliminary results were only provided to the EPA in May Therefore, there had been no real time to implement this before the audit occurred. 3.4 (Table 2) Identify a dust suppression option and devise an application strategy to achieve >80% dust control effectiveness. During the site visit the auditors viewed this report, which was submitted to the EPA in May (Table 2) Implement a method of monitoring the dust control effectiveness appropriate for the operations This monitoring system was observed by the auditors during the site visit. 3.4 (Table 2) Submit a report to the EPA providing the results of a monitoring programme undertaken for a period of 12 months. During the site visit the auditors viewed this report, which was submitted to the EPA in May Air Quality MP Page 8

327 Audit Protocol: Air Quality and Greenhouse Gas Management Plan Overburden Loading / Dumping and Bulldozing Activities 3.4 (Table 2) Cease or alter the use of bulldozers on overburden and the loading and dumping of overburden during adverse weather conditions to minimise the generation of particulate matter: Interviews with Bengalla staff and observations of the site's real-time meteorological monitoring equipment confirmed that, when winds of 5.6 m/s occur, a warning alarm sounds. This is the trigger for no in pit and out of pit operations to be undertaken. 3.4 (Table 2) Implement a method of monitoring the dust control effectiveness appropriate for the operations This monitoring system was observed by the auditors during the site visit. 3.4 (Table 2) Submit a report to the EPA providing the results of a monitoring programme undertaken for a period of 12 months. Wind Erosion of Exposed Areas (Unpaved Roads and Overburden) This condition was added into the EPL licence without enough time for the condition to have been complied with by March The initial report was provided to the EPA in May 2013, and this was approved in August 2013, with the current IEA conducted in early September (Table 2) Interim stabilisation through vegetation and/or chemical suppression During the site visit the auditors observed the stockpiled topsoils to be vegetated. 3.4 (Table 2) Review currently exposed overburden emplacement areas to assess: - material and surface characteristics (moisture and silt content) - The period over which such areas are to remain inactive There is nothing to show that this has been undertaken during the audit Evidence unable to be provided at the time of the audit. Not Compliant 3.4 (Table 2) Investigate most suitable interim stabilisation methods to the currently exposed overburden emplacement areas identified. 3.5 Air Quality Monitoring Program During the site inspection discussions took place in relation to direct seeding the overburden stockpiles via an aerial seeding program as per that at other sites across the Hunter including Coal & Allied Mt Thorley Warkworth. It is understood that no such plans were in proposed or had been assessed for Bengalla. Evidence unable to be provided at the time of the audit. Not Compliant 3.5 BMC has also developed a comprehensive Environmental Monitoring Program (EMP (BMC 2010) that documents the statutory conditions, standards, locations and reporting requirements for all environmental monitoring undertaken by BMC 3.5 Bengalla s air quality monitoring network is shown in Figure 1 (see Appendix C) and presently comprises: Four real time air quality monitors linked to the RTEMS; Nine High Volume Air Samplers (HVAS) with five measuring TSP and four measuring PM10; and 29 Depositional Dust Gauges. Section of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and section of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) confirms that this monitoring continued to take place during the audit 3.5 As described in Section 3.3, 4 video surveillance cameras are to be installed to assist in the proactive management of operations at Bengalla. This was observed by the auditors during the site visit. Air Quality MP Page 9

328 Audit Protocol: Air Quality and Greenhouse Gas Management Plan 3.5 Bengalla is currently preparing an EIS to support an application for continuation of mining. A revised EMP will be included in the EIS including reasonable and feasible best practice dust management measures relevant to the proposed mine plan. This was not included in the most recent Continuation of Bengalla Mine Environmental Impact Statement (Hansen Bailey Bengalla, September 2013). Proactive monitoring 3.5 BMC utilises four E-bam monitors which are linked to the RTEMS and provide continuous measurements of PM10. These monitors have been installed to provide monitoring data that is beyond that required by regulatory requirements and ensure a more proactive approach to managing the operations. This monitoring continues to be undertaken at Bengalla. 3.6 Cumulative Impacts 3.6 Management of air quality will primarily be undertaken in accordance with the Bengalla EMP and this AQMP. A review of air quality monitoring was conducted by the auditors, and it was generally found to have been done in compliance with the Bengalla Mining Company Pty Limited Air Quality and Greenhouse Gas Management Plan (Bengalla, November 2011) and the Bengalla Mining Company Pty Limited - Environmental Management Program (Bengalla, August 2010). 3.6 To assist in ensuring cumulative dust impacts around the Bengalla operation remain below the relevant criteria, consultation and data sharing arrangements will be sought with neighbouring mines including Mt Pleasant and Mt Arthur Coal. 3.6 Blasting is coordinated between neighbouring mines to ensure blasting impacts are minimised. This is done through notifications and communications including public blasting hotlines. Blasting times are reviewed in the planning stages to ensure blast impacts are minimised. This practice will occur with Mt Pleasant upon its commencement. Interviews with Bengalla staff confirmed the process by which Bengalla coordinates its cumulative impacts with other nearby mines. 3.6 A copy of the final AQMP will be provided to Mt Arthur Coal Mine and Mount Pleasant Project personnel. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that blasting continues to be managed in this manner. Bengalla staff confirmed that this plan has been provided to Mt Arthur, and is publically available on the Bengalla website. Mt Pleasant operations have not commenced during the audit 3.7 Greenhouse Gas Emissions Bengalla, as part of the Rio Tinto Group, participates in COAL21 and relevant ACARP studies to encourage research into GHG reductions. The COAL21 participation was undertaken in 2012, as reported in the Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) Air Quality MP Page 10

329 Audit Protocol: Air Quality and Greenhouse Gas Management Plan 3.7 Bengalla also complies with the requirements of the Energy Efficiency Opportunity Act 2006 which included an energy assessment (completed in 2009) and ongoing implementation of energy saving projects. This was undertaken during the audit period as reported in section 3.3 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and section 4.6 of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013). 3.7 Bengalla has continued to look at ways to improve energy efficiency with a number of actions including: Use of B2 biodiesel in which 1,326 carbon dioxide equivalent (CO2-e) was saved; and Completion of the first five year cycle of the Energy Efficiency Opportunity project, with an approximate saving of 41,000 gigajoules per annum; B2 biodiesel was implemented at the site during the audit period, as reported in section of the Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012) 3.7 Bengalla also completes biannual and annual reporting on carbon dioxide emission production and abatement including: National Pollution Inventory (NPI) report as required by the OEH. National Greenhouse and Energy Reporting Scheme (NGERS). NPI and NGER reporting continued to be undertaken during the audit period as reported in section of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and in section of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013). 3.7 BMC will continue to report on the results from the greenhouse reduction and energy saving programs in the Annual Review. As reported in section of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and in section of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013). 3.8 Odour Control Measures 3.8 The primary potential source of odour at Bengalla is spontaneous combustion. Occurrences of spontaneous combustion are historically rare at Bengalla due to the inert nature of the strata and proactive stockpile management. Although unlikely, should any spontaneous combustion occur, management of potentially offensive odours would be undertaken consistent with EP 8.3 Spontaneous Combustion. 4.0 Response Procedure 4.2 Contingency Plan 4.2 Where dust and/or particulate concentrations consistently approach or exceed the relevant air quality criteria, active air quality controls for excessive dust events will be implemented, and additional dust and particulate control measures investigated. 4.2 Mining operations will be modified until air quality levels return to an acceptable range and/or the source of the exceedances can be determined and managed. Exceedance reporting will comply with Schedule 5 Condition 7 of DA 211/93 (M4). Air Quality MP Page 11

330 Audit Protocol: Air Quality and Greenhouse Gas Management Plan 4.3 Community Response Procedure 4.3 All complaints received regarding operational air quality will be responded to in accordance with Schedule 5, Condition 2(g) of DA 211/93 (M4) consistent with Bengalla s existing Complaint s Response Procedure. This Procedure details BMC s processes in regards to receiving, handling, responding to and recording details of all community complaints. During the site visit the auditors viewed copies of complaints records maintained at Bengalla, and confirmed that all of these criteria are recorded. 4.4 Landowner Notification 4.4 BMC will continue to follow the notification to landholders protocol outlined in Schedule 4, Conditions 1 and 2 of DA 211/93 (M4) As outlined in the Bengalla Mining Company Pty Limited Air Quality and Greenhouse Gas Management Plan (Bengalla, November 2011), written notices were sent to landholders in November 2011 to notify residences in air quality affected land they are entitled to request additional air quality mitigation measures with a copy of Mine Dust and You. 4.4 Written notices were sent to landholders in November 2011 to notify residences in air quality affected land they are entitled to request additional air quality mitigation measures with a copy of Mine Dust and You. 5.0 Communication 5.1 Reporting 5.1 BMC will continue to maintain public access to all statutory required documentation in DA 211/93 (M4) through its website This will include the Annual Review which will include regular reporting on the environmental performance of Bengalla. During the audit the auditors conducted a review of the Bengalla website, and found this information to be available. 5.2 Training 5.2 In order to maintain a strong environmental awareness, employees are encouraged to embody a culture of individual responsibility towards proactively managing environmental impacts. Environmental inductions, training and regular communication on performance is an essential part in maintaining this strong culture at Bengalla. Interviews with Bengalla staff and a review of the generic environmental site induction confirmed that the site continues to be operated in this manner. 5.2 As part of its EMS, Bengalla initiates regular environmental training to provide employees with an awareness of environmental issues, including the identification of environmental incidents. This training includes key aspects of air quality management and is provided to all personnel, including contractors. Bengalla Training and Development system (sys-0023) ensures that Bengalla employees and contractors are competent to perform work at Bengalla Mine and appropriate qualifications are maintained. Interviews with Bengalla staff confirmed that the site continues to be operated in this manner. 5.3 Performance Indicators 5.3 The extent to which this AQMP complies with DA211/93 and EPL6538 requirements will be measured by the following performance indicators: Compliance with relevant air quality standards at monitoring locations, in particular those which are representative of sensitive receiver locations; and Compliance with the Bengalla EMP and this plan, as indicated by internal and statutory reporting. This monitoring continues to be undertaken at Bengalla. Air Quality MP Page 12

331 Audit Protocol: Air Quality and Greenhouse Gas Management Plan 6.0 Periodic Review 6.0 This AQMP and associated monitoring plan will be reviewed and, if necessary, revised (in consultation with relevant government agencies) in accordance with Condition 4, Schedule 5 of DA 211/93 (M4) which requires: Within 3 months of the submission of an: o Annual review in accordance with Schedule 5, Condition 5 of DA 211/93 (M4); o An incident report under Schedule 5, Condition 7 of DA 211/93 (M4); o An audit under Schedule 5, Condition 9 of DA 211/93 (M4); and o Any Modification to DA 211/93. The auditors saw the review history of this plan, and found it to have been updated several times during the audit 7.0 Continuous Improvement 7.0 BMC continually strives to improve Bengalla s environmental performance by applying the principles of best practice through the continued implementation of its ISO14001-certified EMS. Reasonable and feasible new best practice technologies will be investigated and adopted where relevant and progress will continue to be monitored using the performance indicators detailed in Section 5.3. Element 17 of the Rio Tinto HSEQ system encompasses continuous review. All policies and procedures for the site are maintained on Lotus notes to trigger review dates. A management review is undertaken each year to review the environmental performance of the site. Incidents and improvement plans are reviewed each quarter with the annual review confirming follow up has been undertaken. Any necessary actions are also managed through Lotus notes and are thereby designated to the relevant persons. Internal audits are also managed through Rio Tinto Coal Australia. Actions requiring higher priority can be entered into a global based system. Air Quality MP Page 13

332 AECOM Independent Environmental Audit 8 This page has been left blank intentionally. Revision B Prepared for Bengalla Mining Company Pty Limited ABN:

333 AECOM Independent Environmental Audit Appendix U Audit Protocol: Bengalla Water Management Plan (Bengalla, 2012) Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

334 AECOM Independent Environmental Audit u-1 Appendix U Audit Protocol: Bengalla Water Management Plan (Bengalla, 2012) Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

335 Audit Protocol: Water Management Plan Reference Requirement Evidence Audit Finding Bengalla Mining Company Pty Limited Water Management Plan (Bengalla, September 2012) 1.0 Introduction 1.4 Water Licencing Requirements 1.4 BMC currently holds Water Access Licence (WAL) WAL (previously 20SL060388) which provides a water allocation from the Hunter River of up to 1,449 units (1,449 ML for years of 100% allocation) and is administered under the Hunter Regulated River Water Source Water Sharing Plan 2003 (HR WSWSP) and the Water Management Act 2000 (WM Act). This water allocation is utilised as required to supplement existing site water largely for use in the CHPP and for dust suppression. Interviews with Bengalla staff confirmed that the site continues to be managed in this way. 1.4 During periods of high rainfall, excess water from Bengalla can also be discharged into the Hunter River under the Hunter River Salinity Trading Scheme (HRSTS) during periods of high or flood flows. Discharges are conducted strictly in accordance with BMC s Environment Protection Licence (EPL) 6538 administered under the Protection of the Environment Operations Act 1997 (POEO Act). HRSTS discharge events have generally occurred in compliance with these requirements. 1.4 During the site visit the auditors viewed records of data obtained during discharge events, and All discharges are released from the main Bengalla water storage (Staged none of the relevant criteria were found to be Discharge Dam) and additional surface water monitoring is also undertaken during exceeded. The auditors also viewed copies of any such discharge event. discharge checklists that were filled in before those discharges took place. 2.0 Water Management System 2.1 Introduction The water management system is designed to ensure: Water runoff from undisturbed catchment areas is diverted away from the mining Bengalla largely operates under a closed water area, where possible; system. HRSTS water is the only water Sediment laden runoff from disturbed areas is treated prior to re-use in the water discharged from the site. This system is 2.1 management system or released into the natural environment; managed onsite with bunds, catchment drains Stormwater runoff and groundwater collected within pit areas is controlled and and sediment drains have bunds. At the staged managed appropriately; and discharge dam there is also a diversion dam. Minimal discharge of surplus mine water off-site (i.e. promote recycling of captured water). 2.2 Water Management Environmental Management System Within the EMS, Standard 7 Water Management is utilised to manage surface waters at Bengalla. This standard is supported by the following two environmental procedures: Water Management; and Water Discharge Real Time Environmental Management System The Bengalla RTEMS contains a fully automated water management system that provides BMC with up-to-date information on water movement, quality and usage across the site. The RTEMS incorporates dam capacities, pipelines and flow meters at Bengalla, as shown in Figure 1. This was observed by the auditors during the site visit The RTEMS also has a range of safeguards and alarms to detect any potential discharge, leaks or water related incidents. During the site visit the auditors viewed this range of alarms and safeguards in use (via computer screen in control room). Water MP Page 1

336 Audit Protocol: Water Management Plan Routine inspections of water and sedimentation dams are also conducted as an added safeguard to the system. Weekly environmental inspections are done of these structures. More detailed annual inspections are undertaken of rehabilitation works. Detailed quarterly inspections are done of the structural integrity of dams. Any resulting actions from these reviews are input into Lotus notes. The staged discharge dam continues to be regulated under the Dams Safety Act The RTEMS is utilised to account for the various water sources and demands experienced throughout the year, the information from which is reported in Bengalla s Annual Review. This is contained in sections and 3.6 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and in sections 4.7 and 4.8 of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) Drainage Design The design of dams, pipelines and associated drainage structures allows for capture of water from undisturbed areas to be diverted, where possible, away from disturbed and sediment laden mine water. Bengalla largely operates under a closed water system. HRSTS water is the only water discharged from the site. This system is managed onsite with bunds, catchment drains and sediment drains have bunds. At the staged discharge dam there is also a diversion dam Controls are implemented to ensure stormwater and groundwater from mining areas is diverted to either mine water dams or the pit to prevent discharge of this water off-site. Bengalla largely operates under a closed water system. HRSTS water is the only water discharged from the site. This system is managed onsite with bunds, catchment drains and sediment drains have bunds. At the staged discharge dam there is also a diversion dam Based on current design guidelines, the new sediment dams are to be dewatered within 5 days after a runoff event to provide free storage capacity of at least the Settling Zone Volume Where TSS concentration in sediment dams after a runoff event is less than 50 mg/l (or equivalent turbidity value), basins may be dewatered to receiving waters. Where TSS exceeds 50 mg/l, water in basins must be: Flocculated to reduce TSS to less than 50 mg/l; or Pumped to another water storage with available capacity; or Pumped in to the mine water management system Water Management Structures All dams have been designed to meet the requirements of DA 211/93. Water MP Page 2

337 Audit Protocol: Water Management Plan Under the DS Act, the NSW Dam Safety Committee requires prescribed dam owners to arrange for: Proper operation and maintenance of their dams using trained personnel; Regular dam surveillance using trained personnel; Appropriate emergency planning and security precautions for their dams; Ongoing assessment of their dam's behaviour by experienced personnel and regular review of their dam's compliance with current DSC requirements; and Actions, in response to these assessments to ensure that their dams are maintained in a safe condition. Bengalla's Environment Representative is the trained Dams Safety Officer. The most recent NSW Dams Safety Committee inspection was conducted in August Detailed quarterly inspections are done of the structural integrity of dams. 2.3 Site Water Balance 2.3 The Bengalla water management system is designed as a closed system to minimise the use of fresh water from the Hunter River through maximising recycling of CHPP process water by dewatering rejects and utilising secondary quality water where possible for dust suppression. Bengalla largely operates under a closed water system. HRSTS water is the only water discharged from the site. This system is managed onsite with bunds, catchment drains and sediment drains have bunds. At the staged discharge dam there is also a diversion dam. 2.3 Wherever possible, saline mine water and treated sewage water are used for coal processing and dust suppression. Drains from the CHPP flow back into dams. The wind triggered water canons at the CHPP and the water carts onsite are largely filled up from those dams. 2.3 Any surplus water is stored on site or discharged under the HRSTS, and any additional water requirements will be made up from other Hunter River pumping licences. HRSTS discharge events have generally occurred in compliance with these requirements. 2.3 The site water balance is calculated annually from recorded data and reported in the Annual Review. Section of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and Table 16 in Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) contain this information. 2.3 The actual volume of water recovered from in-pit dewatering will be reported in the Annual Review. Section of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and Table 16 in Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) contain this information. Water MP Page 3

338 Audit Protocol: Water Management Plan 3.0 Erosion and Sediment Control Plan 3.1 Introduction Coal & Allied has implemented erosion and sediment control measures at Bengalla in accordance with an approved Erosion and Sediment Control Plan, developed in consultation with DECCW and the Singleton Shire Council (SSC) and has been approved by DoP. The Western OEA (if required) and Southern OEA Extension will require construction of additional infrastructure for erosion and sediment control, including three new sediment control dams to collect disturbed area runoff from the overburden emplacement areas. Interviews with Bengalla staff confirmed that The new sediment control dams will be designed in accordance with current these new dams are under construction, but recommended design standards in the following guidelines: have not been completed yet. Managing Urban Stormwater, Soils and Construction, (Landcom, 2004); and Managing Urban Stormwater, Soils and Construction, Volume 2E Mines and Quarries (DECC, 2008). 3.2 Management of Flood Impacts 3.2 All proposed sediment and erosion control infrastructure will be located outside the Hunter River 100 year average recurrence interval flood extent. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that these structures lie outside of that flooding level. 3.2 Flow along an existing floodplain channel on the southern side of the railway, that used to flow into the Southern OEA Extension area, will be diverted along a new channel diversion on the southern side of the railway. 3.4 Existing Sediment Control Structures This diversion has been completed. 3.4 Sedimentation dams and contour banks have been positioned at Bengalla to direct runoff from undisturbed areas away from the disturbed areas. Each of the contour banks direct the passage of water into sedimentation dams, which provides additional settlement of runoff prior to overflow into natural gully lines. Bengalla largely operates under a closed water system. These sediment and erosion structures were observed by the auditors during the site visit. 3.4 Existing sediment control dams have been designed to remove suspended sediment of 0.1 mm diameter and greater, based on detaining water for a period of 1 hour during a 1 in 10 year storm event. 3.4 All rehabilitated land is shaped with contour banks at varying vertical spacing to minimise down slope flows. Contour banks carry water around the slopes to settling ponds where it is either released offsite following settlement or pumped back into the mine water management system. Bengalla largely operates under a closed water system. HRSTS water is the only water discharged from the site. This system is managed onsite with bunds, catchment drains and sediment drains have bunds. At the staged discharge dam there is also a diversion dam. These sediment and erosion structures were observed by the auditors during the site visit. 3.5 Proposed Sediment Control Structures 3.5 The general arrangement of proposed sediment control measures for the Western OEA and Southern OEA Extension are shown in Figure 3 and Figure 4 respectively. The site continues to be operated in this manner, apart from the Western OEA dam which has not been constructed yet. Water MP Page 4

339 Audit Protocol: Water Management Plan 3.6 Propose Control Measures Construction Prior to disturbance of land, appropriate erosion and sediment controls will be established. Erosion and sediment control measures that may be used include silt fences, hay bales and other measures consistent with current best practice standards. This is managed as per the site's Ground Disturbance Permit system. The GDP makes reference to existing erosion and sediment control measures, and asks whether these have been checked before drilling works commence, and whether they are appropriate for the proposed works Where practicable, runoff from undisturbed catchments will be diverted around the construction activities via diversion drains and banks to discharge into the natural watercourses. This was observed by the auditors during the site visit Runoff from disturbed areas will be retained on site in sediment dams and allowed to settle prior to discharge into the natural system. Bengalla largely operates under a closed water system. HRSTS water is the only water discharged from the site. This system is managed onsite with bunds, catchment drains and sediment drains have bunds. At the staged discharge dam there is also a diversion dam Operations Drains, diversion banks and channels will be compacted and stabilised as they are constructed Sediment mobilisation and erosion will be minimised by: This was observed by the auditors during the site visit Installing appropriate erosion and sediment controls prior to disturbance of any land; This is controlled by the site's Ground Disturbance Permit System Limiting the extent of the disturbance to the practical minimum; Interviews with Bengalla staff confirmed that only one to two strips are opened up ahead of mining at any one time Reducing the flow rate of water across the ground particularly on exposed surfaces and in areas where water concentrates; Sediment fences are used in certain areas of pre-strip where sediment control might otherwise be inadequate Progressively rehabilitating disturbed land and constructing drainage controls to improve stability of rehabilitated land; This was observed by the auditors during the site visit Ripping of rehabilitation areas to promote infiltration; The auditors viewed the checklist used to guide rehabilitation measures to ensure that ripping occurs to the appropriate grade. A tracking sheet for all rehabilitation taking place across the site includes a component for ripping Protecting natural drainage lines and watercourses by the construction of erosion control devices such as diversion banks, channels and sediment retention dams; This was observed by the auditors during the site visit Steep gradients will require the installation of rock riprap, geotextile fabric sediment filters or other suitable measures, as required; and This was observed by the auditors during the site visit. Water MP Page 5

340 Audit Protocol: Water Management Plan Restricting access to rehabilitated areas. 3.7 Maintenance The current rehabilitation area at Bengalla falls under the construction zone. To access this area, access must be approved. 3.7 Dams, contour banks and drainage lines across Bengalla are regularly inspected to assess their integrity and efficiency to control and capture water. Maintenance works are undertaken on these structures as required, including repair of any erosion damage to channel banks and desilting of sediment control dams to ensure that sufficient capacity for sediment storage and runoff capture is available. Weekly environmental inspections are done of these structures. More detailed annual inspections are undertaken of rehabilitation works. Detailed quarterly inspections are done of the structural integrity of dams. Any resulting actions from these reviews are input into Lotus notes. 3.8 Monitoring and Reporting 3.8 Monitoring includes real time weather monitoring, quarterly assessment of all erosion control and sediment retention devices and monthly surface water quality monitoring. The auditors viewed monthly monitoring reports containing meteorological and surface water monitoring. These assessments of erosion and sediment controls are undertaken, and during 2010 and 2011 were undertaken monthly. This erosion and sediment control inspection regime continued in There is nothing to suggest that erosion and sediment controls are failing. Work order provided to auditors showing that Bengalla operate an inspection regime to monitor the dams quarterly for erosion and sediment controls. The system was never not operating during the operating and is an automated systems generated process. 3.8 Additional post-event inspections of sediment control structures will be undertaken where more than 20 mm of rainfall is recorded in 24 hours. The post-event inspection will include field-based assessment of water quality for any sedimentation dam overflows. When a 20 mm rain event occurs, the monitoring consultants come out to site to undertake this monitoring. 3.8 For the new sedimentation dams, a decision on dewatering will be made based on available storage capacity on site and the water quality within the sediment dams in accordance with the design objectives of the Erosion and Sediment Control Plan. 3.8 Sampling and analysis is undertaken in accordance with Standard Methods for the Examination of Water and Wastewater (APHA, AWWA, SPCF 2nd edition 1998), Australian/New Zealand Standard (AS/NZ) and AS The auditors viewed monthly water monitoring reports where these guidelines are quoted. A separate consultant prepares the annual monitoring report for the AEMR. Water MP Page 6

341 Audit Protocol: Water Management Plan 3.8 Details of the monitoring program are reported in the Annual Review. Performance against the objectives of this Plan will also be reported in the Annual Review. This information is contained in sections 3.1, 3.4, 3.5 and 3.6 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and in sections 4.1, 4.7, 4.8 and 4.9 of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013). 4.0 Surface Water Management Plan 4.2 Baseline Surface Water Data - Water Quality 4.2 The Hunter River is the receiving water for all site discharges from Bengalla. Water quality parameters (ph, Electrical Conductivity (EC) and Total Suspended Solids (TSS)) in the Hunter River are monitored on a monthly basis. This was observed by the auditors in the monthly water monitoring reports provided to Bengalla. 4.2 Monitoring is conducted at three sites upstream (W01, W02 and W03) and one site downstream (W04) of Bengalla. Additional samples are also collected from these locations following rainfall events of greater than 20 millimetres over a 24 hour This monitoring continues to be undertaken at Bengalla. When a 20 mm rain event occurs, the monitoring consultants come out to site to undertake this monitoring. 4.2 In periods of high rainfall, excess water from Bengalla can also be discharged into the Hunter River under the HRSTS, where discharges are conducted strictly in accordance with BMC s Environment Protection Licence (EPL 6538). 4.2 All discharge is released from the main Bengalla water storage (Staged Discharge Dam) and additional surface water monitoring is also undertaken (EPA1, EPA2 and EPA3) during any such discharge event. During the site visit the auditors viewed records of data obtained during discharge events, and none of the relevant criteria were found to be exceeded. The auditors also viewed copies of discharge checklists that were filled in before those discharges took place. 4.3 Impact Assessment Criteria 4.3 Schedule 3, Condition 28 of DA 211/93 stipulates that the Surface Water Monitoring Program (SWMP) must include criteria for surface water quality. BMC s EPL 6538 stipulates its discharge limits. These limits are adopted as surface water impact assessment criteria for the purposes of this SWMP During the site visit the auditors viewed records of data obtained during discharge events, and none of these criteria were found to be exceeded. The auditors also viewed copies of discharge checklists that were filled in before those discharges took place. Water MP Page 7

342 Audit Protocol: Water Management Plan 4.3 During the site visit the auditors viewed records of data obtained during discharge events, and Bengalla is permitted to discharge no more than 200 ML per day under the none of these criteria were found to be HRSTS, in accordance with section L4.1 of EPL 6538 and conditions stipulated in exceeded. The auditors also viewed copies of Managed Envelope of Residual Flood Flows (MERFF). discharge checklists that were filled in before those discharges took place. 4.3 Section of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Water extracted from the Hunter River is recorded through the RTEMS and the Environmental Management Report and total volume compared to current licences on an ongoing basis. Annual water Annual Review 2011 (Bengalla, March 2012), volumes taken from the Hunter River are reported each year in the Annual Review. and Table 16 in Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) contain this information. 4.4 Monitoring 4.4 All monitoring conducted under the HRSTS is in accordance with the methods specified in BMC s EPL. This includes monitoring: EC with a probe designed to measure the range 0 to 10,000 S/cm; and TSS and ph with a representative sample. This monitoring continues to be undertaken at Bengalla. 4.4 All surface water quality monitoring at Bengalla is conducted in accordance with the requirements provided in Approved Methods for Sampling and Analysis of Water Pollutants in New South Wales (DEC 2004) and AS 5667:1:1998 Parts 1, 4 and 6. The auditors viewed monthly water monitoring reports where these guidelines are quoted. 4.4 In accordance with Schedule 3, Condition 28 of DA 211/93, Bengalla s SWMP (Figure 7) includes: Six locations to monitor surface water flows and quality upstream and downstream of the mine; and Three locations to monitor the volume and quality of water discharged from the site under the HRSTS. This monitoring continues to be undertaken at Bengalla. 4.4 Daily rainfall is also recorded on the site to assist in identifying significant rainfall events. Where more than 20 mm of rainfall is recorded in 24 hours, an inspection of the site water management system (particularly sediment control infrastructure) is undertaken. The post-event inspection includes field-based assessment of water quality for any sedimentation dam. For the new sedimentation dams, a decision on dewatering will be made based on available storage capacity on site and the water quality within the sediment dams in accordance with the design objectives of the Erosion and Sediment Control Plan. This monitoring continues to be undertaken at Bengalla. Water MP Page 8

343 Audit Protocol: Water Management Plan HRSTS Discharge BMC operates three HRSTS monitoring points around its operations as shown in Figure 7 and Table 7 to monitor upstream and downstream water quality from the discharge point. This monitoring continues to be undertaken at Bengalla. It is recommended that the reference to EPA03 be reviewed, as Point 3 under EPL 6538 is used for air quality monitoring. - Recommendat ion Made Surface Water Quality BMC currently samples four water quality monitoring points (see Figure 7 and Table 8) on the Hunter River. Four additional on-site water management structures were included in the quarterly surface water monitoring program from 1 July 2007, with an additional two sites on Dry Creek monitored following high rainfall events To assist in management of water quality on site, numerous dams within the Mining Lease are sampled annually for ph, EC and TSS. The auditors viewed monthly water monitoring reports including this information Stream Health and Channel Stability Monitoring of Dry Creek will also continue be undertaken as part of regular inspections of the sediment and erosion control network. Monitoring will include a walkover inspection and collection of photographs of the Dry Creek channel. Key locations for inspection will include the area around overflow points from sedimentation dams. Key indicators to be assessed during inspections will include: Evidence of active erosion or sediment deposition; Bank stability; and Vegetation health. Photographic evidence is undertaken of this. If the dry creek flows, it is monitored in this way Daily rainfall is also recorded on the site to assist in identifying significant rainfall events. Where more than 20 mm of rainfall is recorded in 24 hours, an inspection of the site water management system (particularly sediment control infrastructure) is undertaken. When a 20 mm rain event occurs, the monitoring consultants come out to site to undertake further water quality and Bengalla undertakes an inspection of the water management system Where significant changes are observed in any of these indicators, further investigations will be undertaken to assess the cause of the observed impacts. Water MP Page 9

344 Audit Protocol: Water Management Plan 4.5 Management 4.5 Any discharges of water that are required are managed under the guidelines of the HRSTS and MERFF. During the site visit the auditors viewed records of data obtained during discharge events, and none of the relevant criteria were found to be exceeded. The auditors also viewed copies of discharge checklists that were filled in before those discharges took place. 4.5 The Bengalla RTEMS contains a fully automated water management system that provides BMC with up to date information on water movement, quality and usage across the site. The RTEMS also has a range of safeguards and alarms to detect any potential discharge, leaks or water related incidents. This was observed by the auditors during the site visit. 4.5 Routine inspections of water and sedimentation dams are also conducted as an added safeguard to the system. Weekly environmental inspections are done of these structures. More detailed annual inspections are undertaken of rehabilitation works. Detailed quarterly inspections are done of the structural integrity of dams. Any resulting actions from these reviews are input into Lotus notes. 5.0 Groundwater Management Plan 5.2 Monitoring Groundwater All groundwater monitoring at Bengalla is conducted in accordance with AS :-1998, Guidance on the Design of Sampling Programs, Sampling Techniques and the Preservation and Handling of Samples and AS , Guidance on Sampling of Groundwaters. The auditors viewed monthly water monitoring reports where these guidelines are quoted. A separate consultant prepares the annual monitoring report for the AEMR Bengalla currently conducts monitoring in 41 groundwater monitoring bores at 31 monitoring sites The auditors viewed monthly water monitoring reports where this is reported The groundwater bores within the vicinity of the Wantana Extension will be monitored on a monthly basis during mining in this area to compare groundwater quality and quantity with the predictions made in the Wantana SEE. This monitoring continues to be undertaken at Bengalla Monitoring results will be evaluated against the assessment criteria provided in Section 5.3 and previous data summarised in Table 9. Should a significant variation be apparent, then an investigation (as described in Section 7.0) will be undertaken to determine the source of the impact. The auditors viewed monthly and annual water monitoring containing this information While it is considered that transects between bores may not provide data that will confirm leakage from the alluvium, due to the high laterally permeability of the basal gravel aquifer, this method of analysis will be continued in the Wantana Extension area. Compliance of this condition could not be verified at the time of the audit. Not Compliant Evidence Required Should the investigation determine that Bengalla s operations are impacting on the Hunter River alluvial water more than that predicted in the Wantana SEE, BMC will seek to revise the water access licence (to be sought by BMC) to account for these additional impacts. Water MP Page 10

345 Audit Protocol: Water Management Plan Water quality data may be a mean of identifying and quantifying seepage from the alluvium through mixing of alluvial and coal seam groundwater. Hence, the following parameter suite will be used for future water quality monitoring: Electrical Conductivity (EC); Total Dissolved Solids (TDS); Major cations (CO3, HCO3, SO4, Cl, NO3); Major anions (Ca, Mg, Na, K); ph; Sulphate; and Standard Suite of Metals including aluminium, arsenic, beryllium, boron, cadmium, chromium, cobalt, copper, iron, lead, lithium, manganese, mercury, molybdenum, nickel, selenium, vanadium, zinc and Hexavalent Chromium (plus, fluoride, bromine and strontium). As reported in Section of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), this monitoring was undertaken during the audit Privately Owned Bores No non-mine owned bores are predicted to be affected by Bengalla Pit Groundwater Inflow To estimate the actual groundwater inflow component of this pit water, data on rainfall, pit catchment area and quantity of water pumped from the pit will continue to be collected to enable a water balance to be calculated for inclusion in the Annual Review. Section of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and Table 16 in Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) contain this information Mitigation Measures The following management measures will be implemented to minimise any potential impacts on aquifer water quality from the emplacement of overburden on alluvial land: No overburden material from the Wynn coal seam will be placed within the Southern OEA Extension which overlies or has potential connectivity with alluvial soils; Interviews with Bengalla staff confirmed that the site continues to be operated in this manner No co-disposal of coal rejects with overburden will be placed within the Southern OEA Extension which overlies or has potential connectivity with alluvial soils; Interviews with Bengalla staff confirmed that the site continues to be operated in this manner SMB1 and SMB2 will be incorporated into the regular monitoring program conducted at Bengalla to monitor any changes in water levels and quality that may result from the Southern OEA Extension; This monitoring continues to be undertaken at Bengalla Prior to the emplacement of overburden material within the Southern OEA Extension, a suitable clay base will be established (tyned and compacted) to reduce the volume of leachate entering the alluvial groundwater system; During the site visit the auditors viewed the relevant report prepared by GSS Environmental. Water MP Page 11

346 Audit Protocol: Water Management Plan Progressively rehabilitation of the Southern OEA Extension will be conducted to further reduce rainfall infiltration into the spoil and hence infiltration from the base of spoil to the alluvial gravels. Bengalla is in the process of rehabilitating this area now. The auditors viewed an execution plan indicating how this rehabilitation is going to be executed. 5.5 Management 5.5 Standard 7 Water Management and Procedure Water Management of the Coal & Allied EMS are relied upon to pro-actively manage groundwater at Bengalla. 5.5 The Wantana Extension has been designed to satisfy the requirements of NOW s Guidelines for the Management of Stream/Aquifer Systems in Coal Mining Developments (DIPNR, 2005) to ensure a sufficient barrier zone between the defined edge of the alluvium and mining of coal remains. This 150 metre barrier zone will remain as a management measure to ensure no horizontal seepage occurs from the alluvium through the endwall of the Wantana Extension. As mining at Bengalla has remained within the approved boundary, this 150 m area is therefore unlikely to have been contravened during the audit 5.5 Groundwater monitoring at Bengalla will continue to be monitored at the locations discussed in Section 5.2 and results reported on an annual basis in the Annual Review. As required by Schedule 5, Condition 3 of DA 211/93, the Annual Review will include an analysis of environmental monitoring data against the predictions from the Bengalla EIS, Bengalla SEE and the Wantana SEE and the Bengalla EA as relevant. Section 3.6 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and section 4.8 of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) contains this information. 6.0 Drainage Path Diversion Plan 6.1 Overview A channel diversion will be constructed to replace the flow capacity along an existing drainage path which will be obstructed by the Southern OEA Extension. The channel has been designed to minimise impacts on upstream and downstream drainage by matching the hydraulic characteristics of the channel as closely as possible to existing conditions. 6.2 Detailed Design and Construction Program The drainage line diversion, as stated in the Environmental Assessment (Hansen Bailey, 2010) will be constructed before works commence in the Southern OEA Extension to ensure localised drainage is established. This diversion has been completed. This diversion has been completed. 6.2 Stages of the drain diversion works will be as follows: 1. Site establishment; 2. Erosion and sediment control establishment in accordance with BMC procedures; 3. Set out spoil mound locations to ensure free draining areas maintained; 4. Topsoil stripping and stockpiling in accordance with BMC procedures; 5. Excavation and compaction earthworks; 6. Respreading of topsoil to diversion channel and permanent spoil location (See Appendix C); 7. Seed and fertilise disturbed areas in accordance with sustainable agricultural practices; and 8. Preparation of survey conformance report and dxf file of finished surface. Interviews with Bengalla staff confirmed that the diversion works were undertaken in this manner. 6.2 The Southern OEA Extension works will then commence in accordance with the Environmental Assessment and DA 211/93. These works were undertaken during the audit period, generally in accordance with approval conditions. Water MP Page 12

347 Audit Protocol: Water Management Plan 6.3 Impacts on Railway Infrastructure and Agricultural Activities 6.3 BMC will ensure that ARTC works and/or assets are not impacted by the drain diversion. The works are not planned to come in contact with ARTC rail infrastructure or proposed ARTC plans. Planned ARTC works in the area of proximity to the drain diversion have been completed; 6.3 BMC will ensure that the works involve revegetation at the earliest possible occasion following earthworks to ensure grazing land is not adversely impacted. The lessee of the BMC-owned grazing land has been and will continue to be consulted concerning the works. The drain design will allow for stock to graze on the banks and bed of the alignment. Contractor reseeded drainage diversion to make suitable for grazing. 6.4 Environmental Performance Criteria and Monitoring 6.4 The key environmental performance criterion for the drainage path diversion is the establishment of a stable landform with good vegetation cover and no bed or bank erosion. The following measures will be implemented to monitor and maintain the environmental performance of the drainage path diversion: No flow occurred during the audit Triggers are nevertheless in place to undertake monthly inspection and to check drainage if a greater than 50mm rainfall is recorded A baseline environmental report, based on a site inspection, will be prepared prior to the commencement of construction. The report will include an ecological assessment of reaches of the drainage path immediately upstream and downstream of the proposed diversion to characterise existing conditions. The baseline report will also include of a photographic record of pre-disturbance channel conditions immediately upstream and downstream of the diversion which will be used as a future reference to demonstrate no adverse impacts on the existing environmental conditions along the drainage path. baseline report provided to auditors. Compliance verified during audit interview A monthly site inspection, including collection of site photographs, will be undertaken for the first 4 months after the completion of construction to confirm that vegetation is becoming established. Compliance verified during audit interview / site inspection For the first 12 months after completion of construction, an additional site inspection will be undertaken after any significant rainfall event (> 20 mm in 24 hours) to assess any adverse impacts due to local stormwater runoff or flow through the diversion channel. The trigger that has been employed onsite is > 50 mm of rainfall. As 20 mm rainfall events have not occurred since these diversion works were completed in December 2011, it is fair to - say that this condition is not non-compliant. In Recommendat practice, the site has sufficient controls in place ion Made to manage any resulting impacts. It is recommended that the Water Management Plan be updated so that it is less prescriptive on this point. Water MP Page 13

348 Audit Protocol: Water Management Plan An environmental assessment report, including a site inspection and ecological assessment, will be completed 12 months after construction. The report will compare ecological and site conditions with the information contained in the baseline report to confirm the environmental performance of the diversion. Compliance verified during audit interview / site inspection If no flow through the diversion channel occurs within the first 12 months after construction, a site inspection and assessment report will be completed after the first flow through the diversion channel. The key issue to be considered in the This has not occurred during the audit assessment report will be the geomorphologic stability of the diversion, with the primary objective being a stable channel with good vegetative cover and no bed or bank erosion, particularly around the entry and exit points of the diversion channel. 6.4 If any of the following issues are identified during site inspections or in assessment reports, then professional advice will be obtained to identify the key cause of the issue and develop an appropriate response: Obvious poor vegetation establishment or poor vegetation cover; Rill erosion of diversion channel banks; Erosion of topsoil from channel bed or banks, particularly around the entrance to and exit from the diversion channel; and Breaching or slumping of channel banks. This has not occurred during the audit 7.0 Surface and Groundwater Response Plan 7.1 Criteria Exceedance Protocol 7.1 In accordance with Condition 28(f) of Schedule 3 of DA 211/93, should an exceedance of the monitoring criteria listed in this WMP or a significant variation from data in Table 6 Table 5 or Table 9 occur, then BMC will follow the procedure outlined in Table 11. This procedure will also apply in the event of an exceedance of volumetric limits for water discharge from the site (EPL 6538) or water consumption under the site s Water Access Licence for the Hunter River (WAL001106). 7.2 Response Protocol 7.2 BMC shall operate in accordance with Schedule 3, Condition 27 of DA 211/93 which states: The applicant shall provide compensatory water supply to any landowner of privately owned land whose water entitlements are adversely and directly impacted (other than an impact that is negligible) as a result of the development, in consultation with NOW, and to the satisfaction of the Director- General. Water MP Page 14

349 Audit Protocol: Water Management Plan 7.2 Table 12 provides a response protocol for implementation should any non-mine owned landholder enquire about dropping water levels in their groundwater bores. 7.3 Unforeseen Impacts 7.3 The procedure outlined in Table 13 will be followed in the event that any unforeseen surface or groundwater impacts are detected. 7.3 Should there be any unforeseen impacts upon the water levels in the alluvial aquifer, an investigation will be undertaken in accordance with the procedure in Table 13 to identify if Bengalla s operations are impacting on the Hunter River alluvial aquifer. BMC will then seek to manage these impacts through a revision to its water access licence entitlements under the Hunter Unregulated River and Alluvial Water Source Water Sharing Plan 2009 and the Water Management Act If required the water entitlements will either be obtained from the existing water licences held by BMC or through the acquisition of water access licences for the Hunter River alluvial water source that are available on the open market. 7.3 The acquisition of any additional water licences will be undertaken in consultation with NOW and in accordance with the processes provided under the Water Management Act 2000, NOW s Access Licence Dealing Principles and the Access Licence Dealing Rules listed under the Hunter Unregulated River and Alluvial Water Source Water Sharing Plan Table 13 describes the procedures BMC will follow should rising water levels or deterioration in water quality be detected in monitoring bores in the Southern OEA Extension. Water MP Page 15

350 Audit Protocol: Water Management Plan 7.3 The outcomes of this procedure will be reported in the Annual Review. 7.3 The implementation of any mitigation measures will be undertaken in consultation with DRE and OEH/NOW and will be reported in the Annual Review. 8.0 Reporting and Review 8.1 Reporting and Exceedance 8.1 Schedule 5, Condition 2 of DA 211/93 requires BMC to prepare a protocol to manage and report exceedances of the impact assessment criteria and/or performance criteria listed in this WMP to the relevant regulatory agencies. An exceedance in criteria will trigger the response plan and reporting outlined in Section 7.1. No exceedance of water criteria have occurred during the audit 8.2 Reporting an Incident 8.2 Incidents will be reported to DP&I and any other relevant regulatory agencies required under the EPL, within seven days, and will comprise a detailed report on the incident. It is considered that no actual environmental harm incidents within the meaning of section 147 of the POEO Act actually occurred during the audit Some isolated environmental incidents/exceedances of approval criteria did occur. One of these events in particular was treated as potential environmental harm in the first instance. On 11 January 2012 the failure of a scour valve located on a water pipe resulted in an uncontrolled water discharge of 2.5 megalitres of mine affected water from that pipeline. The incident was reported to the EPA and DP&I on the same day, and the EPA was subsequently provided with a written report on the incident on 17 January Water samples were collected from discharged water at two locations. The results indicated that the potential for environmental harm to have been caused by the incident was negligible. This response indicates that Bengalla is in the position to be able to meet its reporting requirements under the POEO Act should such an incident occur. Water MP Page 16

351 Audit Protocol: Water Management Plan 8.2 Incidents related to requirements under BMC s EPL 6538 will be reported to the Environment Protection Authority within seven days. A report on the incident will be provided on request by Environment Protection Authority. It is considered that no actual environmental harm incidents within the meaning of section 147 of the POEO Act actually occurred during the audit Some isolated environmental incidents/exceedances of approval criteria did occur. One of these events in particular was treated as potential environmental harm in the first instance. On 11 January 2012 the failure of a scour valve located on a water pipe resulted in an uncontrolled water discharge of 2.5 megalitres of mine affected water from that pipeline. The incident was reported to the EPA and DP&I on the same day, and the EPA was subsequently provided with a written report on the incident on 17 January Water samples were collected from discharged water at two locations. The results indicated that the potential for environmental harm to have been caused by the incident was negligible. This response indicates that Bengalla is in the position to be able to meet its reporting requirements under the POEO Act should such an incident occur. 8.3 Annual Review 8.3 In accordance with Schedule 5, Condition 3 of DA 211/93, BMC will submit by the end of March each year (or other such timing as agreed by the Director-General) an Annual Review to the Director-General of DP&I, which will fulfil the reporting requirements listed in that condition. 8.4 Management Plan Review The AEMRs prepared during the audit period are all dated March, indicating that they were prepared and submitted on time. 8.4 This WMP will be reviewed on a five yearly basis. Consideration and review of the monitoring locations will be undertaken at this time to ensure all monitoring locations remain representative. The auditors saw the review history of the strategy, and found it to have been updated several times during the audit 8.4 Any review of the WMP will be conducted in accordance with EMS Procedure 1.12 Document Control. This WMP may also be reviewed and, if necessary, revised in accordance with Condition 4 of Schedule 5 of DA 211/93 (M4) The auditors saw the review history of the strategy, and found it to have been updated several times during the audit period in accordance with this document control procedure. 8.5 Public Access to Information 8.5 In accordance with Schedule 5, Condition 3 and Condition 11 of DA 211/93 (M4), BMC will regularly (in the form of the Annual Review) prepare a summary of monitoring results required by DA 211/93 (M4) and make these publicly available on the Bengalla website. During the audit a review was conducted of the Bengalla website, and this information was found to be available. Appendix B - Erosion and Sediment Control Procedures Construction Control Measures 1 All Contractors must attend a CNA Induction and BMC site familiarisation prior to commencing work on-site. The induction will ensure an awareness and understanding of environmental management requirements, objectives and incident response procedures Interviews with Bengalla staff and a review of site documentation confirmed that the site continues to be managed in this manner. Water MP Page 17

352 Audit Protocol: Water Management Plan 2 All major contracts will be required to undertake a Safety and Environmental Risk Assessment prior to commencing work on site. This will be done with a representative(s) of CNA and will be signed off by both the Contractor and CNA. Copies of the risk assessment will be kept by both CNA and the Contractor During the site visit the auditors viewed a contract for environmental works fulfilling these requirements. 3 All sedimentation dams will be designed to control and treat runoff from a 1 in 20 year storm event. This was observed by the auditors during the site visit. 4 All erosion and sediment control devices including dams, sediment fences and banks and channels will be consistent with the Managing Urban Stormwater, Soils Compliance verified during audit interview / site and Construction, (Landcom, 2004) and Managing Urban Stormwater, Soils and inspection. Construction, Volume 2E Mines and Quarries (DECC, 2008). 5 Where practicable runoff from undisturbed catchments will be diverted around the construction areas via diversion drains and banks to discharge into natural watercourses. Bengalla largely operates under a closed water system. HRSTS water is the only water discharged from the site. This system is managed onsite with bunds, catchment drains and sediment drains have bunds. At the staged discharge dam there is also a diversion dam. 6 All runoff from disturbed areas will be diverted via perimeter channels and diversion drains into sediment retention dams before release into natural watercourses. Bengalla largely operates under a closed water system. HRSTS water is the only water discharged from the site. This system is managed onsite with bunds, catchment drains and sediment drains have bunds. At the staged discharge dam there is also a diversion dam. 7 Scour protection will be provided where runoff joins the natural drainage channel, as required. This was observed by the auditors during the site visit. 8 All surface water management structures will be inspected quarterly to ensure the integrity of the system is maintained. Desilting will be undertaken as soon as practicable, with silt being disposed of to an area approved by CNA. The auditors viewed monthly monitoring reports containing meteorological and surface water monitoring. These assessments of erosion and sediment controls are undertaken, and during 2010 and 2011 were undertaken monthly. This erosion and sediment control inspection regime continued in There is nothing to suggest that erosion and sediment controls are failing. Work order provided to auditors showing that Bengalla operate an inspection regime to monitor the dams quarterly for erosion and sediment controls. The system was never not operating during the operating and is an automated systems generated process. 9 Topsoil will be stockpiled for reuse and all stockpiles will be protected by temporary erosion control works. This was observed by the auditors during the site visit. Water MP Page 18

353 Audit Protocol: Water Management Plan 10 All erosion and sediment control measures will remain in place until exposed areas are rehabilitated. This was observed by the auditors during the site visit. Operational Control Measures 1 All Contractors must attend a CNA Induction and BMC site familiarisation prior to commencing work on-site. The induction will ensure an awareness and understanding of environmental management requirements, objectives and incident response procedures. Interviews with Bengalla staff confirmed that task specific training is provided on an asneeds basis, e.g. for contractors working on drainage works where heritage may be an issue. Most Bengalla personnel only receive the generic environmental training unless specific training is warranted. 2 All sedimentation dams will be designed to control and treat runoff from a 1 in 20 year storm event. This was observed by the auditors during the site visit. 3 This is a fairly old standard, and has since been superseded. Nevertheless, it seems that the drainage design of the site would be All surface drainage systems on rehabilitated areas will be designed to be compliant with that standard. It is consistent with Guidelines for Establishing Stable Drainage Lines on Rehabilitated recommended that this language be reviewed Minesites (Draft) (DLWC 1999). during the next update of the Water Management Plan. The updated requirement could say something like "all drainage systems will be designed to be long-term stable." - Recommendat ion Made 4 All erosion and sediment control devices including dams, sediment fences and banks and channels will be consistent with the Managing Urban Stormwater, Soils This was observed by the auditors during the and Construction, (Landcom, 2004) and Managing Urban Stormwater, Soils and site visit. Construction, Volume 2E Mines and Quarries (DECC, 2008). 5 Where practicable, runoff from undisturbed catchments will be diverted around the mine via diversion drains and banks to prevent erosion of cleared or rehabilitated areas. Bengalla largely operates under a closed water system. HRSTS water is the only water discharged from the site. This system is managed onsite with bunds, catchment drains and sediment drains have bunds. At the staged discharge dam there is also a diversion dam. 6 All runoff from disturbed and rehabilitated areas will be diverted via contour banks and diversion drains into a system of sediment retention dams before release into natural watercourses. Bengalla largely operates under a closed water system. HRSTS water is the only water discharged from the site. This system is managed onsite with bunds, catchment drains and sediment drains have bunds. At the staged discharge dam there is also a diversion dam. 7 Sediment will be allowed to settle out before the treated runoff overflows into natural watercourses. Bengalla maintains a staged discharge dam system. 8 Erosion control structures will be grassed to improve their stability, and scour protection will be provided where treated runoff joins the natural drainage channel. This was observed by the auditors during the site visit. 9 The results of the water monitoring program and the effectiveness and performance of the soil and erosion control system will be reviewed regularly. This review is contained within the AEMRs prepared during the auditing Water MP Page 19

354 Audit Protocol: Water Management Plan 10 All surface water management structures will be inspected quarterly to ensure the integrity of the system is maintained. Desilting will be undertaken as soon as practicable, with silt being disposed of to an area approved by CNA. The auditors viewed monthly monitoring reports containing meteorological and surface water monitoring. These assessments of erosion and sediment controls are undertaken, and during 2010 and 2011 were undertaken monthly. This erosion and sediment control inspection regime continued in There is nothing to suggest that erosion and sediment controls are failing. Work order provided to auditors showing that Bengalla operate an inspection regime to monitor the dams quarterly for erosion and sediment controls. The system was never not operating during the operating and is an automated systems generated process. 11 Progressive rehabilitation of mined areas will be undertaken as soon as possible. Reshaped areas awaiting revegetation will be cultivated on the contour to maximise infiltration. Interviews with Bengalla staff, a review of site records and the site inspection undertaken by the auditors confirmed that this rehabilitation program continues to be undertaken based on seasonal conditions and mining operations. Compliant 12 Topsoil will be stockpiled for reuse and all stockpiles will be protected by temporary erosion control works such as bunding, silt fences and hay bales. This was observed by the auditors during the site visit. Compliant 13 The extent of clearing will be restricted to that which is essential and access to all cleared areas will be controlled. Interviews with Bengalla staff confirmed that only one to two strips are opened up ahead of mining at any one time. The current rehabilitation area at Bengalla falls under the construction zone. To access this area, access must be approved. 14 All erosion control and sediment control measures will remain in place until exposed areas are rehabilitated and stabilised. Monitoring and Reporting Control Measures Monitoring of weather conditions, including but not limited to rainfall, wind speed 1 and direction and temperature will be undertaken at a weather station. This was observed by the auditors during the site visit. This monitoring continues to be undertaken at Bengalla. 2 Monitoring of water quality will include measurement of suspended solids, ph and EC or as required by EPA Licence Conditions This monitoring continues to be undertaken at Bengalla. 3 The results of the water monitoring program and the effectiveness of sediment and erosion management will be reported in the Annual Report. This information is contained in sections 3.1, 3.4, 3.5 and 3.6 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and in sections 4.1, 4.7, 4.8 and 4.9 of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013). Water MP Page 20

355 Audit Protocol: Water Management Plan 4 Erosion and sediment monitoring results, reviews of performance and responses will be reported through CNA s internal performance measurement process. Weekly environmental inspections are done of these structures. More detailed annual inspections are undertaken of rehabilitation works. Detailed quarterly inspections are done of the structural integrity of dams. Any resulting actions from these reviews are input into Lotus notes. 5 The results of the erosion and sediment monitoring program will be reported in the Annual Report Section 3.4 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and section 4.9 of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) contains this information. 6 Details will be included in the Annual Report of any remedial measures undertaken to correct situations where erosion or heavy sediment deposition has occurred. Section 3.4 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012) and section 4.9 of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) contains this information. Water MP Page 21

356 AECOM Independent Environmental Audit 8 This page has been left blank intentionally. Revision B Prepared for Bengalla Mining Company Pty Limited ABN:

357 AECOM Independent Environmental Audit Appendix V Audit Protocol: Bengalla Noise Management Plan (Bengalla, 2013) Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

358 AECOM Independent Environmental Audit v-1 Appendix V Bengalla Noise Management Plan (Bengalla, 2013) Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

359 Audit Protocol: Noise Management Plan Reference Requirement Evidence Audit Finding Bengalla Mining Company Pty Limited Noise Management Plan (Bengalla, August 2013) 4.0 Noise Management Measures 4.2 Existing Noise Control Strategies BMC implements a comprehensive active noise management strategy which enables BMC to modify operations during unfavourable weather conditions by: During the site visit the auditors viewed this real time monitoring in use (via computer screen in control room) Operation of a real time noise monitoring system to provide feedback regarding Bengalla s acoustic performance allowing equipment to be carefully positioned to avoid excessive noise at receptors; Moving mobile equipment including trucks, dozers, graders and water carts to more shielded sections of the OEA during the sensitive night period; and Operating mining machinery below the surface during the sensitive night period and undertake surface work (including clearing, topsoil stripping, stockpiling and rehabilitation) during the day; BMC also implement the following noise mitigation management measures: Construction of noise, visual bunds and tree screens surrounding the active mining operation; Noise attenuation fitted to mobile equipment and some fixed plant including pumps and lighting sets; Interviews with Bengalla staff confirmed that nightly visual and noise assessments are undertaken at three locations throughout the site to assess lighting and noise impacts are captured. Visual management measures are also included in site training. During the site visit the auditors also observed the site to be bunded so that equipment and plant cannot be seen and to reduce noise. Mobile plant and lighting towers, for instance, are shielded to prevent such impacts. These tree screens and bunds were observed by the auditors during the site visit. During the site visit the auditors viewed the maintenance planning system which Bengalla has in place to ensure that its plant and equipment undergo preventative maintenance, including noise attenuation as required. The existing ROM Hopper has been designed and constructed with the following best practice modifications including: o The hopper is located within a boxcut to maximise shielding towards receivers; o A hood has been fitted to control noise emitted from the inside surface of the hopper; and o The hopper is constructed with a double steel skin, with the space between the skins filled with sand to dampen vibration in the hopper walls. Reduced wall vibration results in less noise produced by the walls as material is deposited in the hopper, particularly when the hopper is almost empty. Regular preventative maintenance of all mobile equipment; This was observed by the auditors during the site visit. Bengalla's ROM Hopper has also been nominated for an award based on environmental design. During the site visit the auditors viewed the maintenance planning system which Bengalla has in place to ensure that its plant and equipment undergo preventative maintenance, as well as maintenance when repairs are required. The auditors also viewed plant being repaired in the workshop as required. 4.2 The areas designated for day time and night Mine planning for the scheduling and siting of active dump areas and haul roads time works were observed by the auditors away from Muswellbrook during night time operations; during the site visit Regular independent noise monitoring surveys undertaken in accordance with the requirements of DA 211/93 and the INP; and Noise monitoring consultation undertook quarterly surveys at Bengalla during the audit period, as outlined in section 3.12 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and section of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013). Noise awareness training provided to all relevant employees. This is included in the generic Bengalla environment induction. More specific training is provided to other personnel as required. Noise management measures are reviewed periodically by the Environmental The auditors saw the review history of the Services team. The review will take into account the results of monitoring programs, noise management plan, and found it to have community liaison, audit programs and any new requirements of regulatory been updated during the audit period in authorities. consultation with the regulators. Noise MP Page 1

360 Audit Protocol: Noise Management Plan 4.3 Proactive Mitigation Attenuated Fleet BMC operates an attenuated fleet of trucks, dozers, drills and excavators Sound Power Testing During the site visit the auditors viewed the maintenance planning system which Bengalla has in place to ensure that its plant and equipment undergo preventative maintenance, as well as maintenance and noise attenuation as required. The auditors also viewed plant being repaired in the workshop as required Results of site operational noise modelling, undertaken as part of the Bengalla Modification EA, are based on criteria specified in DA 211/93 as required. In order minimise impact upon private receivers as per Schedule 3, Condition 1 of DA 211/93 internal sound power testing is undertaken as required. Sound power tests are undertaken annually at Bengalla by an external noise consultant (e.g. Bengalla Mining Company: Mobile Plant Sound Power Survey 2012 (Global Acoustics, January 2013) In addition to plant operated by BMC, locomotives accessing the Bengalla rail spur are have noise emissions monitored in accordance with the ARTC EPL Proactive Monitoring BMC operates and maintains unattended, real time noise monitors. The real time system provides site personnel access to real time noise emissions via the Supervisory Control and Data Acquisition (SCADA) system, known on site as the Real Time Environmental Monitoring System (RTEMS). During the site visit the auditors viewed this real time monitoring in use (via computer screen in control room) Real time noise alarms provide a system to assist in warning operational personnel of levels that are approaching relevant criterion. In accordance with the footnotes to criteria tables in Schedule 3 of DA 211/93, appropriate triggers have been set to incorporate a range of meteorological conditions. During the site visit the auditors viewed this range of alarms and safeguards in use (via computer screen in control room). 4.4 Reactive Mitigation If an exceedance is measured during attended noise monitoring and Bengalla was determined to be the primary cause of the exceedance, the acoustic consultant will advise site personnel of detected levels and audible sources. Site personnel will immediately take action to reduce noise levels to ensure compliance is achieved. 4.4 Within 75 mins after first reading (and no earlier than 10pm) a second 15 minute reading is to be taken. If the reading exceeds any criterion and is attributable to the mine operation and taken in valid meteorological conditions then the location is deemed a noise affected night. An additional monitoring test (follow up measurement) should be scheduled to be undertaken at the location within 1 week. Should an exceedance be recorded during attended monitoring an internal investigation will be completed to determine the likely cause of the exceedance. If 4.4 the exceedance was determined to be as a result of Bengalla s operations then the Environmental Specialist will notify DP&I and/or EPA of the exceedance (see Section 6.0). 5.0 Monitoring Attended Monitoring 5.1 Noise monitoring will be undertaken in accordance with the following documents: Conditions of DA 211/93; The NSW Industrial Noise Policy (EPA, 2000); and Australian Standard 1055 (Standards Australia, 1997). Noise monitoring will be comprised of both attended and unattended measurements. Attended monitoring is the methodology for determining compliance with prescribed limits; since it allows an accurate determination of the contribution by the site, if any, to measured noise levels. Unattended monitoring data allows management by site staff if and when noise issues arise. It also provides a history that can be used to identify trends and is useful for management, planning and decision-making related to noise control. During actual and potential exceedances that occurred during the audit period, this was the process that was followed, as viewed in the incident reports sighted by the auditors. During actual and potential exceedances that occurred during the audit period, this was the process that was followed, as viewed in the incident reports sighted by the auditors. These are the standards quoted in the quarterly noise monitoring results sighted by the auditors. Interviews with Bengalla staff confirmed that nightly visual and noise assessments are undertaken at three locations throughout the site to assess lighting and noise impacts. are captured. This is a new requirement that has only Operational compliance noise monitoring is to be undertaken three nights per recently been added into the Noise quarter, nominally once per month, at night only, with results compared to all criteria Management Plan. As such, Bengalla has (day, evening and night). Atmospheric conditions and noise propagation are usually continued to only monitor one night per the same on the evening/night and night/day period boundaries. quarter. Noise MP Page 2

361 Audit Protocol: Noise Management Plan Monitoring data at each location will be collected in 15 minute periods and the Leq db(a) result recorded. If the reading is below all criteria, then the result will be recorded as being in compliance and monitoring can move onto the next monitoring location. If mining noise levels exceed any criterion and are taken in valid meteorological conditions then the following steps are to be followed: 1. The reading is to be recorded and the mine is to be advised a reading has exceeded a criterion and proceed to Step Within 75 mins after first reading (and no earlier than 10pm) a second 15 minute reading is to be taken. If this reading exceeds any criterion then proceed to Step 3 otherwise proceed to Step If the reading exceeds any criterion and is attributable to the mine operations and taken in valid meteorological conditions then proceed to Step The result will be recorded, note the location has passed, schedule an additional monitoring test (follow up measurement) to be undertaken at the location within 1 week, and move on to the next monitoring location. Some of this methodology was in the quarterly noise monitoring results sighted by the auditors. It is recommended that, in the next round of quarterly noise monitoring undertaken after the IEA is finalised, this methodology is clarified in the noise monitoring report to ensure it is being complied with. - Recommendatio n Made 5. The result will be recorded, note the location has failed and is deemed a noise affected night at that location. An additional monitoring test (follow up measurement) should be scheduled to be undertaken at the location within 1 week, and move on to the next monitoring location. 6. DP&I will be notified the following day of all monitoring results that exceed the criteria. 7. All monitoring that results in a night being deemed a noise affected night shall be reported to DP&I, other relevant agencies and the community as per the notification requirements in Section Operational noise monitoring locations, as shown in Table 4 and on Figure 2, have been updated as representative of private residential receivers predicted to be impacted by mining operations, and with consideration given to the privacy of residents (e.g. not monitoring immediately adjacent the dwelling). Locations have been selected to ensure coverage in terms of demonstrating compliance with criteria as set in Table 3. These locations are subject to confirmation with the private landholder s permission and should this not be granted, the next closest receiver or representative location will be utilised. 5.1 Operational noise monitoring locations will be reviewed and where necessary modified as a result of monitoring results, changes to the operation or, changes in land ownership. Attended noise monitoring will be conducted in accordance with INP guidelines and Australian Standard AS 1055 Acoustics, Description and Measurement of Environmental Noise. The duration of each measurement is to be 15 minutes. 5.1 This is the methodology quoted in the quarterly noise monitoring results sighted by the auditors. 5.1 If site noise were not measurable due to masking, then suitable methods must be employed as per the INP (e.g. measure closer and back calculate) to determine a value for assessment of compliance. This is the methodology quoted in the quarterly noise monitoring results sighted by the auditors. 5.1 As stated in the footnotes to criteria tables in Schedule 3 of the approval, 'Noise generated by the development is to be measured in accordance with the relevant procedures and exemptions (including certain meteorological conditions) of the NSW Industrial Noise Policy'. This is the methodology quoted in the quarterly noise monitoring results sighted by the auditors. Noise MP Page 3

362 Audit Protocol: Noise Management Plan In accordance with DA 211/93 and Chapter 9 of the INP, noise criteria will apply during all meteorological conditions except: Rain; Wind speed greater than three metres per second (at 10 metres height); and Atmospheric stability class G. Attended monitoring reports will include a comparison to criteria detailed in DA211/93 and EPL All attended measurement result analysis should consider Noise monitoring results are compared criteria applicability (for impact, mitigation, cumulative and acquisition criteria) with against the criteria contained in Development regard to wind speed and vertical temperature gradient. As per Section of the Approval 211/93 (as modified) INP, measured noise levels must exceed the relevant criterion by 2 db before the development is deemed to be in noncompliance 5.1 In addition to compliance monitoring, the site undertakes monitoring once each night (after 10:00 pm) at location N01. This is the methodology quoted in the quarterly noise monitoring results sighted by the auditors. 5.2 Unattended Real Time Monitoring 5.2 Continuous unattended noise monitoring (referred to in the approval as real time monitoring) is utilised as a management tool. Results from the real time monitoring system are not required to be used to determine compliance, since the noise levels recorded do not represent only noise from Bengalla, it represents noise levels from all sources and can be impacted by wind and other environmental factors. A network of real-time monitors will be used to monitor and manage noise. They are located as shown in Table 5 and Figure These monitoring locations are quoted in the quarterly noise monitoring results sighted by the auditors Cumulative Impacts Any unattended data will be collected and stored on site to allow data trend analysis as required. The following data parameters, as returned from each unattended monitoring site and the site weather station, will be trended in real time and display available in the operation dispatch area as a management tool: Omnidirectional low pass LA db (estimated total mining LAeq); Wind speed; Wind direction; Atmospheric stability class; The relevant impact criterion; and The relevant cumulative criterion. A data evaluation will be undertaken by dispatch within one half hour of notification receipt, a response will be undertaken by the OCE or delegate and if required actions will taken to modify operations. During the site visit the auditors observed how this data is maintained on the Bengalla intranet system. During the site visit the auditors viewed this real time monitoring in use (via computer screen in control room). However, this real time monitoring does not include cumulative criterion as this is not really possible to delineate from the control room. It is recommended that this reference to cumulative criterion be removed during the next revision of the noise management plan. During the site visit the auditors observed the noise alarm trigger system which is used at Bengalla to trigger these actions by the OCE or their delegate. Administrative Non Compliance - Recommendatio n Made 5.3 To assist in ensuring there are no cumulative noise impacts around the Bengalla operation, BMC utilise two real time noise monitors to monitor noise levels. If real Interviews with Bengalla staff confirmed how time monitors identify excessive mining noise being generated by another mine site, this process takes place. the Environmental Specialist will contact that site to discuss with them the situation. 5.3 This practice will occur with Mount Pleasant should it commence. Noise MP Page 4

363 Audit Protocol: Noise Management Plan 5.3 In addition a copy of the final NMP will be provided to Mt Arthur Coal Mine and Mount Pleasant Project personnel. 5.4 Landholder Management Measures In accordance with Schedule 3, Condition 5 - Table 5 (see Appendix B), upon receiving written request by the landholder, BMC will implement additional 5.4 reasonable and feasible noise mitigation measures (such as double glazing, insulation and/or air-conditioning) at the following privately owned residences in consultation with the landholder: 38 Hamilton; 40 Ellis; 44 Lane; 47 Rankin; and 80 Rankin. 6.0 Communication 6.1 Reporting Scheduled Reporting BMC environmental noise performance is reported a number of ways. External reporting includes: During the audit, the auditors undertook a review of Bengalla's website, and found this information to be available this way. Quarterly updates were included in CCC minutes. An Annual Review, previously known as the Annual Environmental Management Report; Quarterly updates of monitoring results on the BMC website; Community Consultative Committee (CCC) meetings; and Neighbour reports (by exception, in the event of noise exceedance) The AR is written in accordance with the requirements of Schedule 5, Condition 3 of DA 211/93. A copy of the AR will be forwarded to relevant stakeholders including, but not limited to, DP&I, EPA, MSC, Department of Trade, Regional Infrastructure and Services, Department of Premier and Cabinet and members of the CCC. The Annual Review will also be placed on the BMC website. The auditors confirmed compliance during the audit interview and desktop review with Bengalla's environmental manager Community Response Procedure All complaints received regarding operational noise impacts will be responded to in accordance with Schedule 5, Condition 2(g) of DA 211/93 consistent with Bengalla s existing Complaint s Response Procedure. This Procedure details BMC s processes in regards to receiving, handling, responding to and recording details of all community complaints Incident Reporting In the event that it is determined that an exceedance of a noise criterion has occurred, the exceedance will be reported to DP&I, EPA and other relevant agencies within 24 hours of confirmation of results (following post processing of data for meteorological application). An exceedance is when the measured mining noise level (mining noise only, other sources having been excluded) is more than 2 db above the relevant criterion. During the site visit the auditors viewed copies of complaints records maintained at Bengalla, and confirmed that all of these criteria are recorded. There has been an exceedance of these criteria. Monitoring results taken during the day of 20 June 2012 recorded a noise level of 41 dba. DP&I was advised as soon as practical of the exceedance. Monitoring was being undertaken at Racecourse Road (i.e. the Farrell residence). An incident report was prepared, and provided to DP&I on 29 June. Compliant In accordance with Schedule 5, Condition 7 of DA 211/93 BMC will, within 7 days of the exceedance date, notify D&PI and other relevant agencies. Monitoring results taken during the day of 20 June 2012 recorded a noise level of 41 dba. DPI notified straight away following exceedance. A follow up incident report was prepared, and provided to DP&I on 29 June (sighted by Auditors). BMC will submit a written report that: Describes the date, time, and nature of the exceedance; Identifies the cause (or likely cause) of the exceedance; Describes what action has been taken to date; and Describes the proposed measures to address the exceedance. The incident report provided to DP&I on 29 June fulfils these requirements. Noise MP Page 5

364 Audit Protocol: Noise Management Plan In accordance with Schedule 4, Condition 2 of DA211/93, as soon as practicable after obtaining monitoring results showing an exceedance of the criteria, BMC will notify the affected landowners in writing of the exceedance. Subsequent monitoring reports will also be provided to all affected landowners to demonstrate that BMC is again complying with relevant criteria. This has not occurred during the audit 6.2 Plan Reviews 6.2 In accordance with Schedule 5, Condition 4 of DA 211/93, this NMP will be reviewed within 3 months of the submission of: 6.1(a) Annual review under Condition 3 of Schedule 5 of DA 211/93; 6.2(b) Incident report under Condition 7 of Schedule 5 of DA 211/93; 6.2(c) Audit under Condition 9 of Schedule 5 of DA 211/93; and 6.2(d) Any modification to the conditions of DA 211/ Performance Indicators 6.3 Schedule 5, Condition 2 of DA 211/93 requires BMC to describe specific performance indicators to judge the performance of, or guide the implementation of the development of any management measures. The extent to which this NMP complies with DA 211/93 and EPL 6538 requirements will be measured by the following performance indicators: Compliance with relevant noise criteria at monitoring locations, in particular those which are representative of sensitive receiver locations; and Compliance with the NMP, as indicated by internal and statutory reporting. 6.4 Community Response Procedure All complaints received regarding operational noise impacts will be responded to in accordance with Schedule 5, Condition 2(g) of DA 211/93 consistent with BMC s existing Complaint s Response Procedure. This Procedure details BMC s processes in regards to receiving, handling, responding to and recording details of all community complaints. 7.0 Continuous Improvement The auditors saw the review history of the noise management plan, and found it to have been updated during the audit period in consultation with the regulators. This analysis is included in section 3.12 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and section of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013). During the site visit the auditors viewed copies of complaints records maintained at Bengalla, and confirmed that all of these criteria are recorded. 7 BMC continually strives to improve Bengalla s environmental performance by applying the principles of best practice through the continued implementation of its ISO14001-certified EMS. Element 17 of the Rio Tinto HSEQ system encompasses continuous review. All policies and procedures for the site are maintained on Lotus notes to trigger review dates. A management review is undertaken each year to review the environmental performance of the site. Incidents and improvement plans are reviewed each quarter with the annual review confirming follow up has been undertaken. Any necessary actions are also managed through Lotus notes and are thereby designated to the relevant persons. Internal audits are also managed through Rio Tinto Coal Australia. Actions requiring higher priority can be entered into a global based system. 7 Reasonable and feasible new best practice technologies will be investigated and adopted where relevant and progress will continue to be monitored using the performance indicators detailed in Section 6.3. This was observed by the auditors during the site visit. Bengalla's ROM Hopper has also been nominated for an award based on environmental design (noise). Noise MP Page 6

365 AECOM Independent Environmental Audit Appendix W Audit Protocol: Bengalla Blast Management Plan (Bengalla, 2013) Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

366 AECOM Independent Environmental Audit w-1 Appendix W Bengalla Blast Management Plan (Bengalla, 2013) Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

367 Audit Protocol Blast Management Plan Reference Requirement Evidence Audit Finding Bengalla Mining Company Pty Limited Blast Management Plan (Bengalla, April 2013) 2.0 Blast Management Measures 2.2 Regulatory Control Measures 2.2 All blasting activities are conducted in accordance with DA 211/93, Schedule 3, Conditions 9 to 16 and EPL 6538 A review of these conditions was conducted by the auditors, and blasting at Bengalla was generally found to have been compliant with these requirements. 2.2 All blasting in accordance with DA 211/93 Condition 10, all blasting is conducted on site between 7 am and 5 pm Monday to Saturday inclusive. No blasting occurs on Sundays, public holidays, or at any other time without the written approval of the Director-General; The auditors viewed a copy of Bengalla's blasting data, confirming that the site continues to comply with these timing requirements for blasting. 2.2 The Production Manager will ensure that the blasting frequency does not exceed During the site visit, auditors viewed blasting a maximum of two blasts per day and four blasts per week when averaged over a records showing that blasting was undertaken calendar year (this does not include blasts that generate a ground vibration of 0.5 within these limits during the audit mm/s or less at any privately owned land or to blasts required to ensure the safety of the mine or its workers); 2.2 Blasting operations are scheduled, where practicable, to occur at times which do not impede school bus operations; Interviews with Bengalla staff confirmed that the site tries not to close Wybong Road around 2:30 to 4:00pm to avoid these impacts. 2.2 Public roads within 500 m of blast sites will be closed during the blast and until they are clear of dust and fumes in accordance with the Road Closure Management Plan; 2.2 The Blasting Hotline ( ) provides the community with daily blast times and locations; Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that blasting continues to be managed in this manner. Bengalla continues to operate this blasting hotline. 2.2 A blast SMS notification service will be established by the end of 2013 and will be This has not occurred yet during the audit designed to provide details of the upcoming blast (including date and approximate time) and will have the ability to send an update if a blast has been delayed or cancelled; 2.2 The blast SMS notification service will be offered to all persons currently identified on the Blast Notification List and will be provided to any community member who registers for the service; This has not occurred yet during the audit 2.2 Details of the blast SMS notification service will be communication to the BMC CCC; and 2.2 In relation to fume generation this is controlled in accordance with the approved Blast Fume Management Plan (BMC Blast Fume Management Plan, 2012). This has not occurred yet during the audit The auditors reviewed the Bengalla Mining Company Post Blast Fume Generation Mitigation and Management Plan (Bengalla, 2007), and found blasting at the site to be generally undertaken according to those requirements. 2.3 Blast Design 2.3 Individual blasts are designed to contain the blast and minimise overpressure and In 2010 there were five cases where the vibration consistent with achieving an acceptable blast performance and to avoid overpressure was recorded greater than exceeding 115dBL overpressure and 5mm/s vibration at monitoring locations. 115dBL at privately owned residences as a result of a Bengalla blast. All five blasts were investigated and results show the exceedances were the result of non-blast related events (high wind events). The number of investigations in 2010 was a significant decrease from the 14 in All exceedances were of overpressure, not vibration, and they did not go over the allowable percentage for any given year. 2.4 Weather Conditions 2.4 On the morning prior to a scheduled blast, the Bengalla Environmental Services staff check the meteorological information. Blasting should not be conducted if weather conditions are not within meteorological limits. 2.4 At least 1 hour prior to scheduled blast time - Meteorological information is to be checked for wind speed and direction before preparing to fire the blast. These conditions should be monitored if conditions are close to the limits set by the site. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that blasting continues to be managed in this manner. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that blasting continues to be managed in this manner. Blast MP Page 1

368 Audit Protocol Blast Management Plan 2.4 Two minutes prior to scheduled blast time - Shotfirer to reconfirm wind speed and direction. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that blasting continues to be managed in this manner. 2.4 If a blast needs to be delayed - Notify relevant supervisor and Superintendent Dragline Drill and Blast; and Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that - If delay will extend beyond licence time limit, then procedures for postponing tied blasting continues to be managed in this shots should be followed. manner. 3.0 Road Closure Management Plan 3.1 Closure of Public Roads 3.1 As required by DA 211/93 Conditions 16 (d) and 15, BMC will continue to implement the existing Road Closure Management Plan. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that blasting continues to be managed in this manner. 3.1 In the week prior to blasting Notification of the time and date for the scheduled blast will be provided to Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that Muswellbrook Shire Council Traffic and Roads Status Officer (Phone Number blasting continues to be managed in this ). manner. 3.1 One working day prior to blasting Confirm either verbally or in writing with MSC the scheduled time and date for the blast. 3.1 One working day prior to blasting Time signs will be posted facing both directions along the public road scheduled to be closed, displaying the closure date and time for the next blast 3.1 The day of blasting Confirm the scheduled date and time of the blast with personnel identified on the Blast Notification Form. 3.1 The day of blasting 30 minutes prior to blasting, confirmation of the firing time will be provided to the Blasting coordinator. 3.1 The day of blasting 30 minutes prior to blasting, all temporary traffic control signposting will be in place 3.1 The day of blasting Blasting will not take place at times when adverse environmental conditions would make road closure hazardous including heavy rain, fog, smoke etc. A decision in relation to the environmental conditions will be made prior to closure of any public road. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that blasting continues to be managed in this manner. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that blasting continues to be managed in this manner. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that blasting continues to be managed in this manner. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that blasting continues to be managed in this manner. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that blasting continues to be managed in this manner. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that blasting continues to be managed in this manner. 3.1 The day of blasting Prior to blasting, sentries will be positioned along the public roads. Sentries will ensure that vehicle stop points are manned to prevent traffic entering the blast exclusion zone until after the blast has been fired and the area deemed safe by the Blasting Coordinator. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that blasting continues to be managed in this manner. 3.1 The day of blasting Two minutes prior to blasting, when confirmation has been received from the Blasting Coordinator that the blasting area within the sentries is all clear, the Shotfirer will initiate the two minute warning at the commencement of normal blasting procedures. 3.1 The day of blasting Following the completion of one minute post blast, the Shotfirer will instruct the Blasting Coordinator to inspect the public road for any post blast fumes, dust, debris or damage. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that blasting continues to be managed in this manner. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that blasting continues to be managed in this manner. 3.1 The day of blasting Interviews with Bengalla staff and the site visit If there is no evidence of post blasting fumes, dust, debris or damage the Blasting conducted by the auditors confirmed that Coordinator will notify the Shotfirer who will then give permission to re-open the public road. blasting continues to be managed in this manner. 3.1 The day of blasting If there is evidence of post blast fumes or dust that is predicted to impact on queued traffic, then the Blasting Coordinator will advise the closest sentry to divert traffic or reopen the road to ensure there are no unnecessary impacts. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that blasting continues to be managed in this manner. Blast MP Page 2

369 Audit Protocol Blast Management Plan 3.1 The day of blasting If there is evidence of debris or damage then the Blasting Coordinator will notify the Shotfirer of such debris or damage. The sentries on the public road will hold the stop position and delay through traffic until such stage as the debris is removed, damage is repaired or controlled traffic conditions put in place. Not until this has been completed will the Shotfirer give permission to re-open the public road. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that blasting continues to be managed in this manner. 3.1 The day of blasting Once the road inspection has been completed and has been deemed safe to reopen the Blasting Coordinator will then remove the temporary barriers from across the public road, and the sentries will remain in position with the SLOW sign displayed. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that blasting continues to be managed in this manner. 3.2 Muswellbrook-Ulan Rail Line Closure 3.2 DA 211/93 Schedule 3, Condition 15 (b) states that blasting shall not be undertaken within 500 m of the Muswellbrook-Ulan Rail Line without the approval of the ARTC. BMC currently has a Blasting Deed dated 6 April 2009 in place with ARTC that facilitates blasting within 500 m of the Muswellbrook-Ulan Rail Line, which will be updated as required. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that blasting continues to be managed in this manner. 5.0 Blast Monitoring 5.1 Blast Monitoring Program 5.1 As a component of the blast monitoring program, monitoring of blast characteristics will be undertaken at 10 real time blast monitors as shown in Table 5. The auditors viewed copies of monitoring data confirming that these locations continue to be monitored for blast impacts at Bengalla. 5.1 The blast monitors record the following characteristics for each blast which The auditors viewed copies of monitoring data triggers relevant threshold levels and relays information live to a service provider s confirming that these criteria continue to be website: monitored for blast impacts at Bengalla. Blast location and name; Time and date; Peak vector sum (mm/s); Air overpressure peak (dblin Peak); and Waveform trace, where applicable. 5.1 Calibration and maintenance of monitoring equipment will be carried out by a specialised blast monitoring service provider. 5.1 Instrumentation used to measure and record the blast vibration and overpressure levels will meet the requirements of Australian Standard :2006 Explosives Storage and use Use of explosives. During the site visit the auditors viewed copies of calibration records to confirm this is undertaken. During the site visit the auditors viewed copies of correspondence with Ecotech to confirm that monitoring equipment is used according to this standard. 5.2 Exceedance Monitoring 5.2 Following each blast, monitoring data will be reviewed by the Environmental Department as soon as practicable to determine the cause of the exceedance. Interviews with Bengalla staff confirmed that blast data continues to be reviewed in this manner. 5.2 Any record of a blast exceeding the absolute limits of 120dBL overpressure or 10mm/sec vibration must be reported to the Blast Coordinator and the General Manager. The result must then be reported to the OEH and DP&I by Environmental Services within 24 hours of the blast occurring or in accordance with conditions of EPL Blast MP Page 3

370 Audit Protocol Blast Management Plan 5.2 All blast monitoring results and analysis will be included in the Annual Review. Section 3.11 and Appendix 7 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011), section 3.11 and Appendix 8 of Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012) and section 4.3 of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) contains this information. 6.0 Communication 6.1 Reporting 6.1 BMC will continue to maintain public access to all statutory required documentation in DA 211/93 through its website During the audit a review was conducted of the Bengalla website, and this information was found to be available. 6.1 This will include the Annual Review which will include reporting on the environmental performance of Bengalla. The AEMRs prepared during the audit period contain this information. 6.2 Training 6.2 In order to maintain a strong environmental awareness, employees are encouraged to embody a culture of individual responsibility towards proactively managing environmental impacts. Environmental inductions, training and regular communication on performance is an essential part in maintaining this strong culture at Bengalla. 6.3 Performance Indicators 6.3 Schedule 5, Condition 2 of DA 211/93 requires BMC to describe specific performance indicators to judge the performance of, or guide the implementation of the development of any management measures. The extent to which this BMP complies with DA 211/93 and EPL 6538 requirements will be measured by the following performance indicators: Compliance with relevant vibration and overpressure criteria at monitoring locations; and Compliance with the Bengalla EMP and this plan, as indicated by internal and statutory reporting. The auditors viewed blast monitoring data which contained this information. 6.4 Community Response Procedure 6.4 All complaints received regarding operational air quality will be responded to in accordance with Schedule 5, Condition 2(g) of DA 211/93 consistent with Bengalla s existing Complaint s Response Procedure. During the site visit the auditors viewed copies of complaints records maintained at Bengalla, and confirmed that all of these criteria are recorded. 6.4 Landowner Notification 6.5 The notification process enables any privately owned land within 2 km of the of the open cut mining pit to request an inspection to establish the baseline condition of any buildings and/or structures on their land, or to have a previous property inspection report updated. The investigation will be completed by a suitably qualified, experienced and independent person, whose appointment has been approved by the Director-General. Baselines have been undertaken, but no impact inspections were required during the audit 6.5 BMC will then implement any appropriate measures to minimise the potential blasting impacts of the development on these buildings and/or structures. No such impacts have been reported during the audit period, and as such no further mitigation has been required. 6.5 In addition, as soon as practicable after obtaining monitoring results showing an exceedance of the relevant criteria described in Section 4, BMC will notify the affected landholder in writing of the exceedance, and provide regular monitoring results to each of these parties until results are complying with the relevant criteria again. 6.5 If the landowner of any privately-owned land claims that the buildings and/or structures on his/her land have been damaged as a result of blasting on site, then within 2 months of receiving this claim BMC will commission a suitably qualified, experienced and independent person, whose appointment has been approved by the Director-General, to investigate the claim and provide the landowner a copy of the property investigation report. Blast MP Page 4

371 Audit Protocol Blast Management Plan 6.5 If this property investigation confirms the landowner s claim, and both parties agree with these findings, then BMC will repair the damages to the satisfaction of the Director-General. 6.6 Cumulative Impact 6.6 To assist in ensuring there are no cumulative blast impacts around the Bengalla operation, verbal notifications and communications including public blasting Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that hotlines are utilised. Blasting times are reviewed in the planning stages to ensure blasting continues to be managed in this blast impacts are minimised. A copy of the final BMP will be provided to Mt Arthur Coal Mine and Mount Pleasant Project personnel. manner. Bengalla staff confirmed that this plan has been provided to Mt Arthur, and is publically available on the Bengalla website. Mt Pleasant operations have not commenced during the audit 7.0 Periodic Review 7.0 This BMP will be reviewed and, if necessary, revised (in consultation with relevant The auditors saw the review history of the government agencies) in accordance with Schedule 5, Condition 4 of DA 211/93 strategy, and found it to have been updated during the audit period in consultation with the regulators. 8.0 Continuous Improvement 8.0 BMC continually strives to improve Bengalla s environmental performance by applying the principles of best practice through the continued implementation of its ISO14001-certified EMS. Reasonable and feasible new best practice technologies will be investigated and adopted where relevant and progress will continue to be monitored using the performance indicators detailed in Section 6.3. Interviews with Bengalla staff confirmed that all blast monitors used by the site are new. Bengalla's contract with its blast monitoring equipment provider stipulates that once new equipment becomes available, then it must be used. Bengalla currently uses icon blasting sequence in its blast design, which is a form of electronic detonation. This allows for the detonation time between each hole to be much better timed, and therefore reduces community impacts. Blast MP Page 5

372 AECOM Independent Environmental Audit 8 This page has been left blank intentionally. Revision B Prepared for Bengalla Mining Company Pty Limited ABN:

373 AECOM Independent Environmental Audit Appendix X Audit Protocol: Bengalla Mining Company Post Blast Fume Generation Mitigation and Management Plan (Bengalla, 2007) Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

374 AECOM Independent Environmental Audit x-1 Appendix X Audit Protocol: Bengalla Mining Company Post Blast Fume Generation Mitigation and Management Plan (Bengalla, 2007) Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

375 Audit Protocol: Post Blast Fume Generation Mitigation Management Plan Reference Requirement Evidence Audit Finding Bengalla Mining Company Post Blast Fume Generation Mitigation and Management Plan (Bengalla, 2007) 1.0 Introduction 1 The aim of this strategy is to address known factors that can affect the generation of fume and provide information on how post blast fume is rated and reported. 3.0 The Causes of Fume in Blasting The seven main categories that contribute to post blast fume are listed below in the order in which they are encountered in the mining process Geological conditions, 2. Climate/seasonality, 3. Blast design, 4. Explosive product selection, 5. Explosive quality, 6. Contamination of explosive in the blast-hole, 7. On-bench practice. Blast Fume Page 1

376 Audit Protocol: Post Blast Fume Generation Mitigation Management Plan 4.0 Identification of Persons to Prevent Fumes Mine Planning Engineer Geologist Drill and Blast Engineer Environmental Specialist Drill and Blast Superintendent Drill and Blast Supervisor Driller Shotfirer MMU Operator Explosive Manufacturer/Supplier Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that blasting continues to be managed in this manner. 4 Blast Fume Page 2

377 Audit Protocol: Post Blast Fume Generation Mitigation Management Plan 5.0 Causes and Control Matrix The following matrix covers each potential cause and situation that may contribute to fume generation, identified in section 2 of this protocol. For each 5 potential cause, a likely indicator and control measure is outlined. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that blasting continues to be managed in this manner. In particular, Bengalla's Drill and Blast Fume Page 3

378 Audit Protocol: Post Blast Fume Generation Mitigation Management Plan Blast Fume Page 4

379 Audit Protocol: Post Blast Fume Generation Mitigation Management Plan 6.0 Documentation and Records 6 The documentation and records used for the preparation and firing of a blast are retained in the Drill and Blast Office. The records contain: During the site visit, the auditors viewed blasting records containing these data. Blast Fume Page 5

380 Audit Protocol: Post Blast Fume Generation Mitigation Management Plan Blast Fume Page 6

381 AECOM Independent Environmental Audit Appendix Y Audit Protocol: Bengalla Environmental Monitoring Program (Bengalla, 2010) Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

382 AECOM Independent Environmental Audit y-1 Appendix Y Audit Protocol: Bengalla Environmental Monitoring Program (Bengalla, 2010) Revision B 23-Dec-2013 Prepared for Bengalla Mining Company Pty Limited ABN:

383 Audit Protocol: Environmental Management Program Reference Requirement Evidence Audit Finding Bengalla Mining Company Pty Limited - Environmental Management Program (Bengalla, August 2010) 1.0 Introduction 1.1 Background 1.1 This EMP has been prepared to the satisfaction of the Department of Planning (DoP) Consultation on the Surface Water and Groundwater Monitoring Program has also been undertaken with the Department of Natural Resources (DNR). 1.2 Environmental Management System Bengalla, operate and manage their environmental impacts under the ISO14001 certified Coal and Allied (CNA) Environmental Management System (EMS) Standards are prescriptive statements of Rio Tinto s expectations in regards to health, safety, environment and quality (HSEQ) management. There are 17 elements of the HSEQ Management System standard, a further nine Rio Tinto environmental performance standards and 16 Coal and Allied Environmental Procedures. Bengalla s conformance to these standards is measured through regular internal audits and non-conformance management. 2.0 Meteorology To fulfil the above consent requirement, the meteorological station measures the following environmental variables and utilises radio telemetry to continually relay meteorological data to the Bengalla Real Time Environmental Monitoring System (RTEMS): Section of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and section 4.1 of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) confirm that these parameters continue to be monitored. During the site visit the auditors viewed correspondence from the consultant who The Bengalla Meteorological Station is sited, operated and monitored in accordance installed this monitoring system, confirming that with the requirements provided in Approved Methods for Sampling and Analysis of it complies with these requirements. This is Air Pollutants in New South Wales (DEC 2007), which nominates Australian managed as per Section 2.0 of the Bengalla Standard (AS) (Ambient Air Guide to the Siting of Sampling Units) and Mining Company Pty Limited - Environmental Methods AM-1, AM-2 and AM-4 to be followed. Management Program (Bengalla, August 2010). 3.0 Air Quality Acquisition Criteria In the event that the criteria is exceeded, BMC will upon written request of the relevant landowner, invoke the landowner acquisition procedures outlined in Schedule 4, Conditions 10 to 12 of DA211/93 (M3). 3.1 Air Quality Monitoring All air quality monitoring equipment at Bengalla is operated in accordance with the requirements provided in Approved Methods for Sampling of Air Pollutants in New South Wale s (DEC 2005) Bengalla operates and manages an air quality monitoring network in accordance with Schedule 3, Condition 23 of DA211/93 (M3) (). This network is comprised of; Four real time monitors linked to the Bengalla RTEMS; Nine High Volume Air Samplers (HVAS), (five measuring TSP, four measuring PM10); and 29 Depositional Dust Gauges. During the site visit the auditors viewed correspondence from the consultant who installed this monitoring system, confirming that it complies with these requirements. This is managed as per Section 2.0 of the Bengalla Mining Company Pty Limited - Environmental Management Program (Bengalla, August 2010). Section of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and section of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) confirms that this monitoring continued to take place during the audit Env Monitoring Pgrm Page 1

384 Audit Protocol: Environmental Management Program 3.1 Air quality monitoring is undertaken by an independent qualified consultant (Service Provider) under contract. The consultant company shall ensure all technicians are trained in the relevant sampling methods and site requirements to undertake the monitoring described in this program. The auditors viewed monitoring data records, and found the monitoring undertaken at Bengalla to comply with these requirements. 3.1 The Service Provider shall have a Quality Management and Assurance (QA) program in accord with AS/NZS ISO 9001:2008 that has inspection, testing and hold points prior to the next phase or stage of duties and activities commencement. Bengalla continues to maintain its ISO 9001 accreditation 3.1 The QA program shall incorporate all listed and referred to specifications, manufacturer s requirements, third party testing and on site testing requirements. The QA program shall use quality inspection and test plans and these shall be robust in their function, operation and requirement Compliance of these conditions could not be verified at the time of the audit. Not Compliant Evidence Required 3.1 The Service Provider shall hold quality certification to AS/NZS ISO 9001:2008 for all activities carried out, or carried out on its behalf, with field hydrology services and with certification of its regional offices. The auditors viewed monitoring data records, and found the monitoring undertaken at Bengalla to comply with these requirements. 3.1 The Service Provider s laboratories shall be certified to AS/NZS ISO 9001:2008 and The auditors viewed monitoring data records, NATA registered for chemical testing and biological testing. Accreditation must cover and found the monitoring undertaken at all relevant methods of analytical testing, including water, sediments, microbiological, Bengalla to comply with these requirements. biological and pathogenic testing Real Time Monitoring Bengalla currently utilises four E-bam monitors. These monitors require servicing in accordance with manufacturers requirements. The monitoring service provider will This monitoring continues to be undertaken at be responsible for undertaking this maintenance regime as well as providing monthly Bengalla. updates to Bengalla personnel on the operating and maintenance status of the monitors High Volume Air Sampler Bengalla currently operates eight HVAS and utilise one HVAS that belongs to Mt Arthur Coal (MAC), five of Bengalla s HVAS monitor TSP and three monitor PM10 Section of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and section of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) confirms that this monitoring continued to take place during the audit Data will also be utilised from Mt Arthur Coal (MAC) existing PM10 (PM3) monitor, as they apply to the operation of Bengalla. This monitoring continues to be undertaken at Bengalla. Env Monitoring Pgrm Page 2

385 Audit Protocol: Environmental Management Program Depositional Dust Monitoring Bengalla operates and manages 29 Depositional Dust Gauges around its operations Section of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and section of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) confirms that this monitoring continued to take place during the audit Greenhouse Gas Monitoring BMC currently calculates emissions, and convert these to a carbon dioxide equivalent tonnage to provide a Greenhouse Gas emission inventory on a monthly basis. 3.2 Management Dust Management This has since been superseded by a new update in the Bengalla Mining Company Pty Limited Air Quality and Greenhouse Gas Management Plan (Bengalla, November 2011) which only requires biannual and annual reporting on carbon dioxide emission production and abatement. This was done during the audit period, as reported in NPI and NGER reporting continued to be undertaken during the audit period as reported in section of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and in section of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013). It is recommended that this language be updated in the next version of the Environmental - Recommendatio n Made Schedule 3, Condition 22 of DA211/93 (M3) specifies Operating Conditions at Bengalla in order to reduce air quality impacts, ensuring: Visible air pollution generated is assessed regularly with operations relocated, modified and / or stopped as required; Real time air quality monitoring (24hr PM10) and meteorological data are assessed regularly with operations relocated, modified and/or stopped as required; Offending operations are ceased when the average hourly wind velocity exceeds 10 m/s; All out-of-pit mining operations (including overburden dumping, shaping and topsoil stripping) are ceased when the average hourly wind velocity exceeds 5.6 m/s; and All excavation is stopped if dust was to affect the visibility or safety on adjacent public roads. This is managed as per the Bengalla Mining Company Pty Limited Air Quality and Greenhouse Gas Management Plan (Bengalla, November 2011), which was approved by DP&I on 9 November 2012.Interviews with Bengalla staff and the operations observed by the auditors during the site visit confirmed that Bengalla continues to operate a real time environmental monitoring system which includes alarms and meteorological forecasting, linked to a weather station. Under certain weather conditions, alarms will come up at dispatch so that operations can be modified for dust. Site planning meetings are undertaken each Friday, where forward planning for operations is discussed, including the influence of meteorological conditions. It is recommended that the reference to Condition 22 be updated to Condition 21 during the next revision of the Environmental Monitoring Program. - Recommendatio n Made Env Monitoring Pgrm Page 3

386 Audit Protocol: Environmental Management Program BMC implements proactive control and management activities to minimise air quality impacts on the surrounding environment. Such measures include: Spraying recycled mine water using a fleet of water carts on trafficked haul roads; Operation of dust suppression equipment on drills used within the mine site; Rehabilitation of disturbed areas as soon as practicable to minimise the generation of wind eroded dust Operation of automatic water sprays on coal stockpile areas; Enclosed ROM hopper with automatic water sprays; Utilisation of an additional water truck, particularly on drill patterns where fine drill cuttings are concentrated; Blasting constraints configured to Bengalla s real time meteorological and temperature inversion stations; Bitumen sealing of frequently travelled roads within the CHPP; Changes in haul road configuration and utilisation where practical to reduce dust; Fully enclosed coal conveyor systems in exposed areas; and Training in dust control and dust management activities for Bengalla s employees and contractors; Minimisation of clearing ahead of mining to reduce areas disturbed. Air Quality Management procedures, of the CNA EMS, are utilised to manage air quality at Bengalla. These procedures include: Dust Management CHPP; 8.2 Air Quality - Mobile Equipment; and 8.3 Air Quality - Spontaneous Combustion Greenhouse Gas Management This was observed by the auditors during the site visit. Interviews with Bengalla staff confirmed that drill rigs are equipped as such. Interviews with Bengalla staff, a review of site records and the site inspection undertaken by the auditors confirmed that this rehabilitation program continues to be undertaken based on seasonal conditions and mining operations. This system is installed and was observed by the auditors during the site visit. This system is installed and was observed by the auditors during the site visit. Interviews with Bengalla staff confirmed that drilling operations are undertaken in this manner. Interviews with Bengalla staff and observations of the site's real-time meteorological monitoring equipment confirmed that the site continues to be operated in this manner. This was observed by the auditors during the site visit. Interviews with Bengalla staff confirmed that the site continues to be operated in this manner. This was observed by the auditors during the site visit. The auditors confirmed that this is contained within the site's generic environmental induction training package. This was observed by the auditors during the site visit Bengalla has also developed an Energy Savings Action Plan (ESAP) as required under the Energy Savings Order 2005 which was approved in April The ESAP identifies energy sources and management strategies to promote energy efficiency Bengalla also complies with the requirements of the Energy Efficiency Opportunity Act which included an energy assessment (completed in 2009) and ongoing implementation of energy saving projects. This was undertaken during the audit period as reported in section 3.3 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and section 4.6 of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) Bengalla has set energy targets which will be reported internally for the next three years. Bengalla s three energy metrics are: dragline energy usage per material moved haul energy usage per material moved CHPP energy usage per material handled Energy usage is recorded, as reported in section 3.3 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and section 4.6 of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013). Env Monitoring Pgrm Page 4

387 Audit Protocol: Environmental Management Program 4.0 Noise Acquisition Criteria Noise Monitoring Introduction In the event that the criteria is exceeded, BMC will upon written request of the relevant landowner, invoke the landowner acquisition procedures outlined in Consent Conditions 10 to 12, Schedule 4 of DA211/93 (M3). All noise monitoring at Bengalla is conducted in accordance with the requirements provided in the NSW Industrial Noise Policy (DEC 2000) Monitoring will be conducted on a quarterly basis in accordance with the notes presented in Table 2 of DA211/93 (M3) (or Table 8 of this EMP): Noise will be measured at the most affected point to determine compliance with the LAeq(15 minute) noise limits; Noise will be measured at 1 metre from the dwelling façade to determine compliance with the LA1(1 minute) noise limits or as otherwise agreed with DECCW; and Noise will be measured under meteorological conditions of: o wind speeds of up to 3 m/s at 10 metres above ground level; or o temperature inversion conditions of up to 3ºC/100m, and wind speeds of up to 2 m/s at 10 metres above ground level. Bengalla s noise monitoring system (see Figure 2) is operated in accordance with Schedule 3, Condition 8 of DA211/93 (M3) and includes: Two Real - time noise monitors linked to the Bengalla RTEMS; and Five attended noise monitoring locations (including one location N03 that is used for internal purposes only). Noise monitoring is undertaken by an independent qualified consultant (Service Provider) under contract. The consultant company shall ensure all technicians are trained in the relevant sampling methods and site requirements to undertake the monitoring described in this program. The Service Provider shall have a Quality Management and Assurance (QA) program, the QA program shall incorporate all listed and referred to specifications, manufacturer s requirements, third party testing and on site testing requirements. The QA program shall use quality inspection and test plans and these shall be robust in their function, operation and requirement Real-time Monitoring This is the methodology quoted in the quarterly noise monitoring results sighted by the auditors. Noise monitoring consultation undertook quarterly surveys at Bengalla during the audit period, as outlined in section 3.12 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and section of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013). During the site visit the auditors viewed this real time monitoring in use (via computer screen in control room). This is the methodology quoted in the quarterly noise monitoring results sighted by the auditors. Compliance of these conditions could not be verified at the time of the audit. Not Compliant Evidence Required Bengalla currently utilises two Real Time noise monitors which are linked to the RTEMS and provide continuous measurement and relay of noise levels surrounding the operation for on-site management purposes During the site visit the auditors viewed this real time monitoring in use (via computer screen in control room) Attended Monitoring Bengalla conducts attended noise monitoring around its operations at five locations as shown in and Table 14. This noise monitoring was undertaken during the audit period, as reported in section 3.12 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and section of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013). Env Monitoring Pgrm Page 5

388 Audit Protocol: Environmental Management Program Management Further, Schedule 3, Condition 7 of DA211/93 (M3) specifies measures of continuous improvement which Bengalla will implement and investigate to ensure best practice noise management, including: Implementing all reasonable and feasible best practice noise mitigation measures; Investigating ways to reduce the noise generated by the development, including maximum noise levels which may result in sleep disturbance; and Report on these investigations and the implementation and effectiveness of these measures in the AEMR. BMC also implements pro-active control and management strategies to minimise impacts on the surrounding environment which include: No active dumping and operating in exposed locations during adverse weather conditions, where noise may be exacerbated towards receptors; Extension of noise and visual bunds to the South of the active mining operation and East of the CHPP; Comply with stringent equipment sound power level requirements on BMC-owned mobile equipment as modelled; Noise attenuation fitted to all BMC mobile equipment and some fixed plant including pumps and lighting sets; Regular preventative maintenance of all mobile equipment; Noise attenuation fitted to the relocated ROM Hopper; Rigorous mine planning for the scheduling and siting of active OEA and haul roads away from Muswellbrook during night-time operations; Regular, independent noise monitoring surveys undertaken on all pieces of plant and mobile equipment; Night-time operator attended surveys undertaken at relevant locations after 10 pm, as required, to ensure compliance with noise conditions; Independent fortnightly surveys occurring throughout winter, when the operation is prone to temperature inversions and the subsequent enhancement of noise levels, as required; Apart from an isolated instance of exceedance, which was investigated and followed up, the site has generally been managed in compliance with noise criteria. Have also been required to conduct the additional noise report as required by EPL conditions. It appears from review that current best practice of noise management is being implemented on site. Various developments in online reporting are being used for community engagement purposes at industrial sites. Interviews with Bengalla staff and a review of the RTEMS installed at the site by the auditors confirmed that the site continues to be operated in this manner. These bunds were observed by the auditors during the site visit. Sound power tests are undertaken annually at Bengalla by an external noise consultant (e.g. Bengalla Mining Company: Mobile Plant Sound Power Survey 2012 (Global Acoustics, January 2013). During the site visit the auditors viewed the maintenance planning system which Bengalla has in place to ensure that its plant and equipment undergo preventative maintenance, including noise attenuation as required. During the site visit the auditors viewed the maintenance planning system which Bengalla has in place to ensure that its plant and equipment undergo preventative maintenance, as well as maintenance when repairs are required. The auditors also viewed plant being repaired in the workshop as required. This was observed by the auditors during the site visit. Bengalla's ROM Hopper has also been nominated for an award based on environmental design (including noise). Interviews with Bengalla staff confirmed that the site continues to be operated in this manner. Sound power tests are undertaken annually at Bengalla by an external noise consultant (e.g. Bengalla Mining Company: Mobile Plant Sound Power Survey 2012 (Global Acoustics, January 2013). Interviews with Bengalla staff confirmed that nightly visual and noise assessments are undertaken at three locations throughout the site to assess lighting and noise impacts. are captured. This was undertaken during the audit period, as reported in section of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and in section of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013). Ongoing noise awareness training provided to all relevant personnel including CHPP and production crews; and Regular interrogation of the RTEMS by Dispatch and CHPP Control to manage operations including utilisation of alarms. Standard E6 - Noise and Vibration Control is utilised to manage noise at Bengalla and provides the framework for Procedure 9.1 Noise. This is included in the generic Bengalla environment induction. More specific training is provided to other personnel as required. This system is installed and was observed by the auditors during the site visit. Env Monitoring Pgrm Page 6

389 Audit Protocol: Environmental Management Program 5.0 Blasting 5.2 Blast Monitoring All blast monitoring units and measuring techniques are conducted in accordance with AS Explosives Transport Storage and Use Part 2: Use of Explosives Periodic calibration of equipment will be in accordance with manufacturer s specifications. The blast monitors capture the following characteristics for each blast which triggers relevant threshold levels and relays information live to a service providers website: Location of blast monitoring site; Time and date of monitoring; Blast location and name; Peak vector sum (PVS mm/s); Air overpressure peak (dblin Peak); and Waveform trace, where applicable. During the site visit the auditors viewed copies of correspondence with Ecotech to confirm that monitoring equipment is used according to this standard. During the site visit the auditors viewed copies of calibration records to confirm this is undertaken. The auditors viewed copies of monitoring data confirming that these criteria continue to be monitored for blast impacts at Bengalla. 5.2 Bengalla operates 10 Real Time blast monitors The auditors viewed copies of monitoring data confirming that these locations continue to be monitored for blast impacts at Bengalla. 5.3 Blasting Management Bengalla implements pro-active control and management strategies to achieve best practice blasting. Such strategies include: Designing the blast to minimise the Maximum Instantaneous Charge (MIC) while achieving the desired degree of fragmentation (computer based design based on Site Law); Ensuring strict control of drill hole spacing and orientation; Adequate stemming of holes to reduce overpressure; Electronic detonation Delaying blasting if adverse weather conditions occur, such as large temperature inversions; and Monitoring of wind speed, wind direction and temperature inversion to determine blasting suitability. Accordingly, Standard E6 Noise and Vibration Control and Procedure 9.2 Blasting, are relied upon to manage blasting at Bengalla. This is managed as per the Bengalla Mining Company Post Blast Fume Generation Mitigation and Management Plan (Bengalla, 2007). Env Monitoring Pgrm Page 7

390 Audit Protocol: Environmental Management Program 6.0 Surface Water 6.1 Surface Water Monitoring Introduction All surface water quality monitoring at Bengalla is conducted in accordance with the requirements provided in Approved Methods for Sampling and Analysis of Water Pollutants in New South Wales (DEC 2004) and AS 5667:1:1998 Parts 1, 4 and 6. The auditors viewed monthly water monitoring reports where these guidelines are quoted Bengalla s SWMP includes: Six monitoring locations to monitor surface water flows and quality upstream and downstream of the mine; and Three monitoring locations to monitor the volume and quality of water discharged from the site under the HRSTS. This monitoring continues to be undertaken at Bengalla HRSTS Discharge Monitoring Bengalla operates three HRSTS monitoring points around its operations to monitor upstream and downstream of the discharge point. This monitoring continues to be undertaken at Bengalla. It is recommended that the reference to EPA03 be reviewed, as Point 3 under EPL 6538 is used for air quality monitoring. - Recommendatio n Made Bengalla monitor water quality parameters at four locations on the Hunter River as shown in Figure 3 and Table 21. To assist in internal management of water quality on site, all dams which are part of a closed water management system are sampled annually for ph, EC and TSS. Four on-site water management structures are included in the quarterly surface water monitoring program and two points on ephemeral Dry Creek monitored following a high rainfall event. The auditors viewed monthly water monitoring reports including this information. Env Monitoring Pgrm Page 8

391 Audit Protocol: Environmental Management Program 6.2 Surface Water Management 6.2 Bengalla s water management system is designed to minimise the use of fresh water from the Hunter River through maximising recycling of CHPP process water by dewatering rejects and utilising secondary quality water where possible for dust suppression. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that the site continues to be managed in this manner. 6.2 Any discharges of water that are required are managed under the guidelines of the HRSTS and MERFF. During the site visit the auditors viewed records of data obtained during discharge events, and none of the relevant criteria were found to be exceeded. The auditors also viewed copies of discharge checklists that were filled in before those discharges took place. 6.2 In addition, the Bengalla RTEMS contains a fully automated water management system that provides Bengalla with up to date information on water movement, quality and usage across the site. The RTEMS also has a range of safeguards and alarms to detect any potential discharge, leaks or water related incidents. This was observed by the auditors during the site visit. 6.2 Routine inspections of water and sedimentation dams are also conducted as an added safeguard to the system. Weekly environmental inspections are done of these structures. More detailed annual inspections are undertaken of rehabilitation works. Detailed quarterly inspections are done of the structural integrity of dams. Any resulting actions from these reviews are input into Lotus notes. 6.2 This is contained in sections and 3.6 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining The RTEMS is utilised to account for the various water sources and demands Company Pty Limited Annual Environmental experienced throughout the year, the information from which is reported in Bengalla s Management Report and Annual Review 2011 Annual Environmental Management Report (AEMR). (Bengalla, March 2012), and in sections 4.7 and 4.8 of Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) In addition to the RTEMS water management system, Standard E10 Water Management and Procedures 7.1- Water Management and 7.2- Water Discharge of the EMS are relied upon to manage surface waters at Bengalla. 7.0 Groundwater 7.0 Groundwater Impact Assessment Criteria A full chemical analysis is also undertaken at a number of monitoring bores on an annual basis. 7.1 Groundwater Monitoring All groundwater monitoring at Bengalla is conducted in accordance with AS :- 1998, Guidance on the Design of Sampling Programs, Sampling Techniques and the Preservation and Handling of samples and AS , Guidance on Sampling of Groundwaters. 7.1 Bengalla conducts monitoring at 32 groundwater monitoring points The groundwater monitoring bores within the vicinity of the Wantana Extension will be monitored on a monthly basis during mining in this area to compare groundwater quality and quantity with the predictions made in the Wantana SEE. As reported in Section of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), this monitoring was undertaken during the audit This is managed as per section of Bengalla Mining Company Pty Limited Water Management Plan (Bengalla, September 2012). Bengalla now monitors 42 groundwater locations. It is recommended that the number of groundwater monitoring locations be updated in the next revision of the Environmental Monitoring Program. The auditors viewed monthly and annual water monitoring containing this information. Monitoring results will be evaluated against the assessment criteria provided in Section 7.0 and previous data summarised in Table 22. Should a significant variation The auditors viewed monthly and annual water be apparent, then an investigation (as described in Section 7.2.2) will be undertaken monitoring containing this information. to determine the source of the impact. Env Monitoring Pgrm Page 9

392 Audit Protocol: Environmental Management Program Should the investigation determine that Bengalla s operations are impacting on the Hunter River alluvial water more than that predicted in the Wantana SEE, BMC will seek to revise the water access licence (to be sought by BMC) to account for these additional impacts. In addition to the above monitoring, BMC proposes to conduct investigations throughout 2010 to determine the transient hydraulic gradient across the Hunter River floodplain in the vicinity of the Wantana Extension between the Hunter River and the alluvial fringe of the alluvial floodplain. Where relevant the results of this investigation will be used to determine any impacts on the Hunter River alluvial system and where appropriate incorporate this process into the existing water monitoring program. To estimate the actual groundwater inflow component of this pit water, data on rainfall, pit catchment area and quantity of water pumped from the pit will continue to be collected to enable a water balance to be calculated for inclusion in the AEMR. This was undertaken during the audit period, as reported in section of Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012). Section of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), and Table 16 in Bengalla Mining Company Annual Environmental Management Report and Annual Review 2012 (Bengalla, March 2013) contain this information. 7.2 Groundwater Management Bengalla s water management system provides an effective and pro-active management tool to ensure best practice management of all water on site. 7.2 The RTEMS also has a range of safeguards and alarms to detect any potential discharge, leaks or water related incidents Routine inspections of water and sedimentation dams are also conducted as an added safeguard to the system. This was observed by the auditors during the site visit. Weekly environmental inspections are done of these structures. More detailed annual inspections are undertaken of rehabilitation works. Detailed quarterly inspections are done of the structural integrity of dams. Any resulting actions from these reviews are input into Lotus notes. The staged discharge dam continues to be regulated under the Dams Safety Act The Wantana Extension has been designed to satisfy the requirements of DECCW s Guidelines for the Management of Stream/Aquifer Systems in Coal Mining Developments (DIPNR, 2005) to ensure a sufficient barrier zone between the defined edge of the alluvium and mining of coal remains. This 150 metre barrier zone will remain as a management measure to ensure no horizontal seepage occurs from the alluvium through the endwall of the Wantana Extension. Standard 7 Water Management and Procedures 7.1- Water Management and 7.2- Water Discharge of the EMS are utilised to pro-actively manage groundwater at Bengalla. 7.2 Groundwater monitoring at Bengalla will continue to be monitored at the locations discussed in Section 7.1 and results reported on an annual basis in the AEMR. As reported in Section of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), this monitoring was undertaken during the audit 7.2 As required by Schedule 5, Condition 4 of DA 211/93, the AEMR will include an analysis of environmental monitoring data against the predictions from the Bengalla EIS, Bengalla SEE and the Wantana SEE as relevant. As reported in Section of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012), this monitoring was undertaken during the audit Unforeseen Impacts Should there be any unforseen impacts upon the water levels in the alluvial aquifer (and the investigation undertaken in Table 26 identify that Bengalla s operations are impacting on the Hunter River alluvial aquifer) then BMC will seek to manage these impacts through a revision to its water access licence entitlements under the Hunter Unregulated River and Alluvial Water Source Water Sharing Plan 2009 and the Water Management Act Env Monitoring Pgrm Page 10

393 Audit Protocol: Environmental Management Program If required the water entitlements will either be obtained from the existing water licences held by BMC or through the acquisition of water access licences for the Hunter River alluvial water source that are available on the open market. The acquisition of any additional water licences will be undertaken in consultation with DECCW and in accordance with the processes provided under the Water Management Act 2000, DECCW s Access Licence Dealing Principles and the Access Licence Dealing Rules listed under the Hunter Unregulated River and Alluvial Water Source Water Sharing Plan The outcomes of this procedure will be reported in the AEMR. The implementation of any mitigation measures will be undertaken in consultation with DoP and DECCW and will reported in the AEMR. 8.0 Rehabilitation and Flora and Fauna Monitoring Bengalla complete rehabilitation and flora and fauna monitoring. The details of this monitoring our outlined in Bengalla s Rehabilitation and Landscape Management Plan that was reviewed and approved by the Department of Primary Industries and Department of Planning in July Spontaneous Combustion and Acid Rock Drainage Spontaneous combustion and acid rock drainage (ARD) are managed in accordance with the Coal & Allied procedures 12.1 Acid mine drainage prevention and control, 9.0 and 8.3 spontaneous combustion, the Bengalla Acid Mine Drainage Management Plan, together with Rio Tinto Environmental Standard E Contaminated Sites 10.0 Bengalla operates a bioremediation compound designed to breakdown hydrocarbon concentration levels within contaminated material through the natural process of biodegradation. The bioremediation compound is comprised of individual cells in which hydrocarbon contaminated soil is contained and treated. The auditors conducted a review of the Bengalla Mining Company Pty Limited Rehabilitation Management Plan (Bengalla, April 2013), and found these conditions to have generally been complied with. Interviews with Bengalla staff and the site visit conducted by the auditors confirmed that the site continues to be managed in this manner. This facility continued to operate during the audit period, as reported in section 3.7 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012) A composite sample is taken from each cell on a quarterly basis with the following analysis completed: TPH C6-C9 TPH C10-C14 TPH C15-C28 TPH C29-C35 TOTAL TPH This monitoring was undertaken during the audit period, as reported in section 3.7 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012) A composite sample should be obtained by randomly taking initial samples (nominally 5) from each cell using a hand auger and then combining them to form the composite sample. It is important to ensure that each of the initial samples represents the entire depth of the cell. Results are to be analysed in comparison to CNA Procedure 13.1, which states that Total TPH levels are required to be <1,000ppm prior to disposal in-pit. This monitoring was undertaken during the audit period, as reported in section 3.7 of Bengalla Mining Company Pty Limited Annual Environmental Management Report 2010 (Bengalla, March 2011) and Bengalla Mining Company Pty Limited Annual Environmental Management Report and Annual Review 2011 (Bengalla, March 2012) Auditing, Review and Reporting 11.1 Criteria Exceedance Protocol 11.1 Any monitoring samples (collected by independent consultants) which are found to The auditors viewed incident response reporting be non compliant with assessment criteria must be reported, by both phone and from the site, and found these conditions to have , to the Company Representative within 24 hours of the result becoming known. been complied with. If any exceedance of the criteria, Bengalla will follow the procedure in Table 27 Env Monitoring Pgrm Page 11