Chennai Petroleum Corporation Limited (A group company of IndianOil)

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3 Chennai Petroleum Corporation Limited (A group company of IndianOil) Subject :LAYING OF 42 CRUDE OIL PIPELINE FROM CHENNAI PORT TO CPCL, MANALI Reference: F.No.10 78/2008 IA III dated 3 rd January, 2014 Status of compliance 8. Specific Conditions : S.No. Description Compliance Status for Oct 2016 to Mar (i) Proponent shall lay the pipeline at Ramakrishna Nagar and Bharat Nagar at minimum depth of 30 Noted. Identified suitable contractor as per the procedures in Dec., 2016 Annexure feet below ground by HDD method. I. The smooth and safe operation of the system shall be ensured by incorporating a computerized Requisite material concerning to SCADA system procured. SCADA (Supervisory Control and Data Automation) system. 8. (ii) Any leakage in the pipeline shall be immediately detected by the computer system and product Noted. SCADA system considered in the design.cpcl has the wherewithall to pumping shall be immediately cut off. deploy during operation. 8. (iii) Proponent shall adhere to all the commitments made vide letter dated and adopt Agreed to comply. advance safety measures as follows : 8. (iii) a) The pipeline thickness is increased from 8mm to 12.5mm for increased strength mm thickness pipelines already procured. 8. (iii) b) Pigging facility is provided to monitor the pipeline thickness to detect any corrosion in the To meet the envisaged preventive actions, materials for pigging facility has been pipeline so that preventive action can be taken to prevent occurrence of leakage. procured. Noted. Cathodic protection is considered in the design for the underground 8. (iii) c) Cathodic protection to prevent external corrosion. piping.advanced technology components have been requisitioned from authorised contractors in Dec., 2016 Annexure II. 8. (iii) d) Corrosion inhibitor is provided to prevent internal corrosion. Noted and agreed to implement prophilactic measures to suit all types of crudes that can be processed. 8. (iii) e) 3 layered polyethylene coating to prevent corrosion. Requisite material procured Annexure III. 8. (iii) f) SCADA system is provided to continuously monitor the crude flow with automatic shutdown of SCADA system facilitates continuous monitoring to take preventive action in case of pumping in the event of any leak in the pipeline. leak in the pipeline. 8. (iii) g) Leak detection system to identify any leaks with high accuracy of location is included in the project. This facility continuously monitors the crude flow in the pipeline and immediately The SCADA system to be installed has the in built function of computerized / detects any leakage. On detection of the leakage, the systems will shutdown the pipeline automatic leak detection system for safety & effective maintenance of the pipeline. through remotely operated valves.

4 8. (iii) h) Nitrogen purging facility to evacuate the crude from pipeline is provided. Nitrogen purging facility is in place. 8. (iv) Approval of Chennai Port authorities shall be obtained for laying of pipeline within the port Approval obtained on is at Annexure IV. premises. 8. (v) Extra encasement for the stretch passing near the habitation and other sensitive places shall be Noted. Higher pipeline wall thickness with 3 LPE ( 3 Layer Poly Ethelene coated) has provided so that no spillage under any accidental scenario including tsunami, earthquake, been considered. terrorist activity etc. is taken care of. 8. (vi) Necessary permission shall be obtained from PWD, Highway Division before laying of the Oil Permission obtained from State PWD on and Highways Division on 8. (vii) pipeline. A NOC / clearance for laying of pipeline shall be obtained from NHAI / Railways for right of way before initiation of the work and the same shall be submitted to the ministry is at Annexure V. Railways clearance obtained on and NOC obtained from and submitted to the Ministry are at Annexure VI,VII & VIII NHAI on 8. (viii) All the recommendations of the EMP shall be complied with letter and spirit. All the mitigation EMP and EIA are being complied in a phased manner. The mitigation measures measures submitted in the EIA report shall be prepared in a matrix format and the compliance submitted in the EIA report and the compliance for each mitigation plan was for each mitigation plan shall be submitted to MoEF along with half yearly compliance report to prepared in a matrix format and is attached as Annexure VIIIA. RO of MoEF. 8. (ix) 8. (x) Soil and water samples shall be regularly monitored along with the pipeline route to check the leakage/ contamination, if any and shall examine if any strengthening is required. Proper oil spillage contingency plan shall be put in place. booms/skimies etc. shall be provided to avoid oil spillage. Dedicated boats fitted with 8. (xi) The responses/commitments made during public hearing shall be complied with letter and spirit. Noted for compliance. 8. (xii) 8. (xiii) 8. (xiv) 8. (xv) 8. (xvi) It shall be ensured that there is no disturbances to people, houses or fishing activity as a result of the project. Will be complied during installation and operational phase. CPCL has signed one MoU with Chennai Port, along with other oil companies using ChPT, for oil spill Management. The expenses towards procurement and maintenance of equipment is being shared by CPCL & other Port users. CPCL partcipates in the periodic mock drill conducted by ChPT. CPCL, as proactive measure under CSR provisions, has extended assistance in the form of periodical medical camps, fishing nets, sewing machines, iron boxes and miscellaneous livelihood requirements. Carryout a soil characterization study at selected points on the alignment and shall submit the study report to the Ministry within four weeks. All the conditions stipulated by Tamilnadu Coastal Zone Management Authority (TNCZMA) shall Being complied to the conditions of TNCZMA. be strictly complied with. The project proponent shall set up separate environmental management cell for effective implementation of the stipulated environmental safeguards under the supervision of the senior executive. requisite safeguards. The funds earmarked for environment management plan shall be included in the budget and this shall not be diverted for any other purposes. Soil characterization study carried out along pipeline alignment and has been sent to MoE&F, Bengaluru on Annexure IX. Environmental Cell is in place since 2000 and presently being managed under a Deputy General Manager assisted by 5 supervisors and 4 supporting staff for Since 2013, about Rs. 5 crore per annum is included in the budget for the purpose of environment related activities. In addition to the above, for , Rs crore is spent for installing SO2,NOx,PM & CO analysers for 19 stacks/ Effluent analysers in 2 locations.

5 9. General Conditions : 9. (i) 9. (ii) 9. (iii) 9. (iv) 9. (v) 9. (vi) 9. (vii) The construction of the structures should be undertaken as per the plans approved by the concerned local authorities / local administration, meticulously confirming to the existing local No construction of structures is required for installing all along the pipeline route or and Central rules and regulations including the provisions of the Coastal Regulation Zone for operation. Notification, 2011 and the approved Coastal Zone Management Plan of Tamilnadu. In the event of a change in project profile or change in the implementation agency, a fresh Noted. reference shall be made to the Ministry of Environment & Forests. The Ministry reserves the right to revoke this clearance if any of the conditions stipulated are not Noted. complied with the satisfaction of the Ministry. Ministry of Environment & Forests or any other competent authority may stipulate many additional conditions or modify the existing ones, if necessary in the interest of environment and Noted. the same shall be complied with. Full support shall be extended to the officers of this Ministry / Regional office at Bangaluru by the project proponent during inspection of the project for monitoring purposes by furnishing full Noted. details and action plan including action taken report in respect of mitigation measures and other environmental protection activities. A six monthly monitoring report shall need to be submitted by the project proponents to the Being complied. The latest six monthly compliance report for the period April to Regional Office of this Ministry at Bangaluru regarding the implementation of the stipulated September 2016 submitted to the RO of the Ministry at Chennai. conditions. A copy of the clearance letter shall be marked to concerned panchayat / local NGO, if any, from whom any suggestion/ representation has been made/ received while processing the proposal. These stipulations would be enforced among others under the provisions of Water (Prevention and Control Pollution) Act 1974, the Air (Prevention and Control of Pollution) Act 1981, The Environment (Protection) Act 1986, the Public Liability (Insurance) Act 1991 and EIA Notification 1994, including the amendments and rules made thereafter. All other statutory clearance such as the approvals for storage of diesel from Chief Controller of Explosives, Fire Department, Civil Aviation department, Forest Conservation At 1980 and Wildlife (Protection) Act 1972, etc. shall be obtained, as applicable by project proponents from the respective competent authorities. The project proponent shall advertise in at least two local Newspapers widely circulated in the region, one of which shall be in vernacular language informing that the project has been accorded CRZ Clearance and copies of clearance letters are available with Tamilnadu Pollution Control Board and may also be seen on the website of the Ministry of Environment & Forests at Noted. Clearance letter forwarded to local Corporation office and Tahsildar offices Annexure X. Noted and agreed to comply. Chief Controller of Explosives ( CCoE) approval obtained on is at Annexure XI. Complied. Advertisment was done in three (3) local news papers, one in English (Indian Express on ) and two in Tamil (Dina Thanthi & Dina Mani) on The advertisement should be made within 10 days from the date of receipt of the Clearance Complied. letter and a copy of the same should be forwarded to the Regional office of this Ministry at Details were sent to MoEF, Bangaluru on Bangaluru.

6 This clearance is subject to final order of the Hon ble Supreme Court of India in the matter of Goa Foundation Vs Union of India in Writ Petition (Civil) No.460 of 2004 as may be applicable to Noted and agreed to comply. this project. A copy of the clearance letter shall be sent by the Proponent to the concerned Panchayat, Zilla Parisad / Municipal Corporation, Urban Local Body and the Local NGO, if any, from whom Noted. Clearance letter forwarded to local Corporation and Tahsildar offices and suggestion / representations, if any, were received while processing the proposal. The clearance uploaded in CPCL website. letter shall also be put up on website of the company by the proponent. Any appeal against this clearance shall lie with the National Green Tribunal, if preferred, within a period of 30 days as prescribed under Section 16 of National Green Tribunal Act, The proponent shall upload the status of compliance of the stipulated Clearance conditions, including results of monitored data on their website and shall update the same periodically. It The six monthly compliance reports have been displayed in CPCL web site. The shall simultaneously be sent to the Regional Office of MoEF, the respective Zonal Office of CPCB stipulated AAQ is being monitored and continuous online connectivity of the same and the SPCB. The criteria pollutant levels namely SPM, RSPM, SO 2 NOx (ambient levels as well to SPCB, CARE air centre. as stack emissions) or critical sectoral parameters, indicated for the project shall be monitored and displayed at a convenient location near the main gate of the company in the public domain. Noted. The project proponent shall also submit six monthly reports on the status of compliance of the stipulated clearance conditions including results of monitored data (both in hard copies as well Being complied. as by e mail) to the respective Regional Office of MoEF, the respective Zonal Office of CPCB and SPCB. The environmental statement for each financial year ending 31 st March in Form V as is mandated to be submitted by the Project proponent to the concerned State Pollution Control Form V is being submitted to SPCB, CPCB, MoE&F and CHT on regular basis. The Board as prescribed under the Environment (Protection) Rules, 1986, as amended subsequently, latest report is at Annexure XII. shall also be put on the website of the company along with the status of compliance of EC conditions and shall also be sent to the respective Regional Offices of MoEF by e mail.

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50 Annexure- VIIIA Matrix on Compliance to EIA report recommendations: S.No: EIA report recommendations Compliance status General recommendations: 1. Removal of all ignition sources No ignition sources will be available at loading and unloading point. 2. Water lines and monitors to be provided all around the plant.the water discharged at high rate through diesel engine driven fire service pumps to control the fire as well. 3. Adequate precautions to prevent static electricity 4. Provision of spill impounding areas popularly known as bunds 5. Joints in piping to be kept to minimum. Piping more than 50 mm outside diameter should have welded or welded flange joints except when connecting to equipment fitted with screwed connections. 6. To prevent the accumulation of static electricity, metal piping should be electrically continuous so that the resistances to earth of the installation does not exceed 10 6 ohms. Reference to be made to BS 5958:part 1:1980 for further information. 7. The piping design should make due allowance for any additional loading constraint imposed by backfill or underground location. 8. Corrosion protection should be provided wherever necessary eg., protective painting (above ground). Special advise should Water lines and monitors are available all around the plant. Earthing is considered for the crude oil pipeline in design stage itself to prevent static electricity. Not applicable. Noted for compliance. The design of metal piping is such that it is electrically continuous with earthing to prevent accumulation of static electricity. Piping design was made considering due allowance. The following mitigation measures are considered to prevent corrosion. Cathodic protection is

51 be sought in this matter. 9. All pipe joints underground should be welded. Specific Recommendations 1. The surrounding area has to be kept free from the sources of ignition and made sterile during the transportation and transfer operation of crude oil. 2. The piping design should conform to the codes and regulations. 3. In case of spill at the loading /unloading area, collection sump or mobile foam dispensing system can be effective in reducing vapour generation by minimizing surface area exposed to atmosphere in addition to provide containment. 4. Quality control procedures should be established to confirm the identity of material before unloading. The general practice is to use different types of connectors or different diameter lines to avoid incompatible materials into the wrong tank. This should be used in addition to the vigorous quality control program. 5. Other protective gadgets like gloves, DCP, CO2 extinguishers etc, should be available at loading and unloading areas. considered in the design for the underground piping. Corrosion inhibitor is considered to prevent internal corrosion. 3 layered polyethylene coating is considered to prevent corrosion. All pipe joints underground are welded. No ignition sources will be available at loading and unloading point. Noted for compliance. A collection sump is considered at the loading and unloading area. The line is meant only for crude oil transfer from Chennai port to CPCL premises. Quality control procedures are in place. Protective gadgets like gloves, DCP, CO2 extinguishers etc, are available.

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