Environmental Impact Assessment for Drilling of Three Exploration Wells in the Mayaro-Guayaguayare Block, Offshore Trinidad

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1 Environmental Impact Assessment for Drilling of Three Exploration Wells in the Mayaro-Guayaguayare Block, Offshore Trinidad February 2013 Prepared for: Voyager Energy (Trinidad) Ltd. Princes Court, Level 2 13/17 Keate Street Port of Spain Trinidad, West Indies Telephone: (868) Prepared by: CSA International, Inc. Trinidad & Tobago Branch Suite 108, Fitt Court 9-11 Fitt Street Woodbrook, Port of Spain Telephone: (868)

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3 Executive Summary ES.1 BACKGROUND Voyager Energy (Trinidad) Ltd. (Voyager) proposes to conduct exploratory drilling to determine if the production of hydrocarbons is viable within the Mayaro-Guayaguayare offshore block (MG Block). The MG Block is located offshore the southeastern coast of Trinidad (Figure ES.1). It covers an area of 223 km 2 and is contiguous with the shoreline from south Manzanilla to Guayaguayare Bay, with water depths ranging from approximately 9 m (30 ft) to a maximum of 24 m (80 ft) in the southern part of the block. The locations of three exploratory wells from which a minimum of one well location will be chosen are provided in Figure ES.1. In order to anticipate further exploration that may be required beyond the minimal commitment, the Certificate of Environmental Clearance (CEC) application has been made for a total of three exploration wells. ES.2 OVERVIEW OF PROJECT ACTIVITIES Voyager is committed to conducting oil and gas exploration activity in the MG Block based on an Exploration and Production Licence issued by the Ministry of Energy and Energy Affairs (MEEA). Voyager has a minimum commitment to drill one exploration well to a maximum depth of 3,200 m (10,500 ft) within the MG Block. The closest distance of any individual well to Trinidad is the MG 3 well, which is located 4 km (2.5 mi) from the shore. The other oil and gas operators in the vicinity are bptt, Bayfield Energy (now merged with Trinity Exploration and Production), and Repsol. The wells will be drilled from a mobile offshore drilling unit (MODU), a jack-up rig. Wellsite surveys (offshore) will be conducted prior to drilling to determine whether any additional site preparation is required such as removal of abandoned facilities, removal of large objects, etc. The drilling programme is estimated to take 45 to 60 days for each well. Where a well is deemed unsuccessful it will be sealed and abandoned using standard industry best practice. If the well is deemed successful, a wellhead may be installed and planning for the production phase may commence. After the drilling programme is completed, the drilling rig will be removed. Drilling operations will be supported by supply vessels and a helicopter(s). The logistics shore base for the drilling programme will be located in LaBrea, Trinidad. One of the supply vessels will be retained in a standby mode at the rig at all times for safety and emergency purposes. Helicopters will support the drilling operations from Camden, Couva. ES-1

4 Figure ES.1. Location of proposed wells in the Mayaro-Guayaguayare (MG) Block. ES-2

5 ES.3 WASTES AND EMISSIONS Drilling Muds and Cuttings For the drilling programme, Voyager has proposed to use water-based drilling fluid (also referred to as drilling mud) for the first hole section. Once this section is complete, low-toxicity synthetic-based muds (SBM) will be used for the remaining sections in the well. The cuttings brought to surface will be treated, processed, and tested before discharge to the seafloor. The treatment process minimises the amount of SBM retained on cuttings to levels ( 7%) that are acceptable to the MEEA prior to overboard discharge and which offers the best practicable environmental option. These mud systems have been used extensively by Voyager and other oil and gas operators in Trinidad and Tobago involved in the drilling of other wells in the offshore region. Other Wastes Other wastes associated with exploration operations include sanitary and domestic wastes, deck drainage, miscellaneous well fluids such as cement and blowout preventer (BOP) fluid, gas and oil processing wastes, and miscellaneous minor discharges. Sanitary wastes will be treated to prescribed standards (Water Pollution Rules of 2001 as amended in 2006) and discharged into the sea in accordance with MAROL 73/78 prescribed distances and procedures. Deck drainage and other hydrocarbon-contaminated liquid will also be treated to acceptable standards prior to overboard discharge. Spent hydrocarbon liquids, chemicals, contaminated solid material, and nonhazardous solid waste will be collected and transported to onshore facilities for treatment and/or disposal. Air Emissions Sources of air emissions will include the drilling rig, support vessels, and helicopter(s). Emissions will include combustion products from diesel or other fuel such as natural gas (e.g., unburned hydrocarbons, carbon monoxide and dioxide, oxides of nitrogen, and oxides of sulphur). ES.4 AFFECTED ENVIRONMENT Detailed synopses of the physical, biological, and socioeconomic environments associated with the MG Block, adjacent blocks, overlying waters, and onshore (along the southeast coast of Trinidad) were prepared. Characterised resources of the study area included: climate, meteorology, and air quality; geology, including subsurface conditions, bathymetry and seafloor conditions, offshore sediment condition and quality, and seismicity; water and sediment quality, including currents, hydrography, and hydrocarbons and metals; marine life, including benthos, fisheries, marine mammals, and sea turtles; ES-3

6 socioeconomic environment, including economic conditions, demography and population, employment and labor market, customs, aspirations, attitudes, fishing, stakeholder s concerns, and archaeological and cultural resources; noise; visual conditions; marine traffic; and infrastructure support services for marine activities. Field data were collected for air quality, noise, benthic organisms, marine water, and sediment quality and compared with existing data and relevant standards and guidelines. The marine baseline conditions were characteristic of open ocean conditions. ES.5 ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES The evaluation of environmental impacts and determination of appropriate mitigation measures considered routine drilling operations and potential accidents or upsets. Cumulative impacts also were identified by considering the project s impacts on other human activities in the area. The project includes drilling up to three exploration wells, well testing, and support operations. Sources of potential impacts from routine operations include: rig mobilization and installation; rig daily operation (including noise, lights, and support vessel and helicopter operation); drilling, well completion, and well testing; and rig demobilization and removal. To aid in the assessment of drill cuttings discharge and potential hydrocarbon spill impacts, dispersion modelling was conducted in 2012 by RPS ASA. For analysis of potential accidents or upsets, a 500-bbl diesel fuel spill and a 27,600-bbl oil spill from a well blowout scenario were considered. In addition, a quantitative risk assessment was prepared in 2012 by Aon Risk Solutions to determine the individual and societal risk from a well blowout. In order to assess the ecological risk posed by the drilling programme, a screening level ecological risk assessment also was conducted. Table ES.1 identifies the routine activities and accidental events that could affect various resources. Table ES.2 provides a brief explanation of impact consequence, which when combined with probability of occurrence, generates a matrix of impact significance as high, medium, low, negligible, or beneficial as shown in Table ES.3. Impacts were also categorized as: direct or indirect; reversible or irreversible; and short term (less than 5 years) or long term (longer than 5 years). ES-4

7 Table ES.1. Matrix of potential impacts. Environmental Resource Physical Biological Socioeconomic Report Section Project Activity/Source of Impact Ambient Air Quality Ambient Noise Level Seabed Topography/Sediment Quality Marine Birds Marine Turtles and Mammals Marine Fish and Plankton Benthic Communities Coastal Habitats Shipping and Maritime Industry Fisheries Health and Safety Employment Aesthetics 6.2 ROUTINE OPERATIONS RIG MOBILIZATION AND INSTALLATION Transportation Offshore X X X X X X Sanitary and Domestic Waste Disposal X Installation X X X RIG DAILY OPERATION General Physical Presence X X X X X X X Deck Drainage X Rig Engine and Generator Operation X X Sanitary and Domestic Waste Disposal X Solid Waste Disposal (accidental overboard) X X X X X X Support Vessel and Helicopter Operation X X X X X X X X DRILLING, WELL COMPLETION, AND WELL TESTING Drilling Activity X X X X X Drilling Fluid Usage, Drill Cuttings, and Muds Generation X X X X Cement Usage X X RIG DEMOBILIZATION AND REMOVAL Rig Removal X X X Return Transportation X X X X X X X ACCIDENTS OR UPSETS 6.3 The following impacts are conditional, and would occur only in the unlikely event of an accident Blowout of Gas and Condensate X X X X X X X X X X X Diesel Fuel Spill X X X X X X X X X Fires/Explosions/Venting/Flaring X X X ES-5

8 Table ES.2. Definitions of impact consequence. Consequence Beneficial Minor Moderate Severe Definition Likely to cause some enhancement to the environment or socioeconomic benefits No changes, or small adverse changes unlikely to be noticed or measurable against background conditions Adverse changes that can be monitored and/or noticed, but are within the scope of existing variability and do not meet any of the severe or moderate impact definitions One or more of the following: Localised, occasional violations of air or water quality standards or guidelines Localised contamination of sediments Localised damage to sensitive habitats such as hard bottom areas, chemosynthetic communities, mangroves, or wetlands A few deaths or injuries of protected species, occasional, temporary disruption of their critical activities (e.g., breeding, nesting, nursing), and/or localised damage to their critical habitat Localised, short-term interference with fishing activities, recreation, or tourism Localised damage to or contamination of beaches, parks, tourism areas, or other recreational resources Localised, short-term adverse impacts on the economy or socioeconomic conditions One or more of the following: Extensive, continual violation of air or water quality standards or guidelines Extensive, persistent contamination of sediments Extensive damage to sensitive habitats such as hard bottom areas, chemosynthetic communities, mangroves, or wetlands Extensive damage to nonsensitive habitats to the extent that ecosystem function and ecological relationships would be altered Numerous deaths or injuries of a protected species, continual disruption of their critical activities (e.g., breeding, nesting, nursing), and/or destruction of their critical habitat Extensive, continual interference with fishing activities, recreation, or tourism Extensive, persistent damage to or contamination of important cultural, historical, or religious sites or tourism areas Extensive, persistent adverse impacts on the economy or socioeconomic conditions A threat to public health or public safety Substantial public controversy or social unrest The probability of impact occurrence also was rated, using the following categories: Likely can reasonably be expected to occur one or more times during the project. Impacts of most routine project activities are in this category; Occasional not planned or expected, but could occur at some time during the project; Rare highly unlikely; exceptional conditions may allow the event to occur during the project; and Remote has occurred before in the industry but is extremely unlikely to occur during the project. ES-6

9 Table ES.3. Matrix combining impact consequence and probability to determine overall impact significance. Decreasing Impact Consequence LEGEND Beneficial Minor Moderate Severe Decreasing Probability Likely Beneficial High Occasional Beneficial High Rare Beneficial High Remote Beneficial Cumulative Impacts Cumulative impacts have been considered for human-related activities that have the potential to cause accumulation of environmental impacts within a particular space and timeframe. Such impacts are influenced by proximity, duration, and dilution depending on the receiving environment. There are other oil and gas related activities off the east coast of Trinidad that are ongoing and will continue to increase or decrease in the future, depending on economic and production circumstances. These activities occur to the north, south, and east of the MG Block and involve oil and gas exploration, production, and associated logistics support. The key operators involved in such activities at this time include bptt, Bayfield Energy (now merged with Trinity Exploration and Production), and Repsol. Table ES.4 includes a summary of key activities and cumulative impacts that can be associated with the drilling of the three exploration wells. ES.6 ANALYSIS OF ALTERNATIVES Drilling Rig The three main options considered for drilling the wells in the MG Block were a jack-up rig, moored semi-submersible rig, and drillship. Rig selection involves a consideration of capabilities, limitations, environmental considerations, and cost. These considerations preclude the option of the drillship. Generally speaking, there are no significant environmental advantages to either the jack-up or semi-submersible rig, especially because they are both used in similar drilling programmes, use similar muds and chemicals, and produce similar effluent discharges. Due to the relatively shallow waters in the MG Block, a jack-up rig is the most feasible option. ES-7

10 Table ES.4. Summary of key potential impacts and mitigation measures. Project Activity/ Source of Impact Resources Affected Description of Impact Impact Significance before Mitigation Mitigation Measures (in addition to standard management procedures) Residual Impact Significance ROUTINE OPERATIONS Rig Mobilization and Installation ES-8 Transportation Offshore Sanitary and Domestic Waste Disposal Ambient Air Quality Ambient Noise Levels Marine Turtles and Mammals Shipping and the Maritime Industry Fisheries Employment Support vessels would emit air pollutants that could degrade ambient air quality. Support vessel operations would emit noise. Marine turtles and mammals could be impacted by lost trash/debris, vessel strikes, and underwater noise. Shipping would be impacted by increased congestion, increased vessel movements, and risk of collision. Fisheries could be impacted by loss of equipment, loss of fishing time, increased congestion, and risk of collision. Support vessels and additional usage would offer short-term incremental employment. Support vessel sanitary waste, domestic waste, and bilge water could impact offshore (open ocean) marine water quality. Beneficial Routinely inspect and maintain support vessel/equipment engines and generators. Issue personal hearing protection (if needed) to vessel/project personnel. Restrict MODU tow and support vessel routes to established ship lanes. Conduct early consultation with relevant stakeholders. Provide Notice to Mariners. Conduct support vessel audits to ensure they are adequately and properly equipped for drilling rig transport and comply with regulatory requirements. Optimise number of trips of supply vessels and helicopters. Community liaison before and during operations. Contractually require the rig transport contractor to adhere to MARPOL 73/78 requirements for offshore disposal. to Beneficial

11 Table ES.4. (Continued). ES-9 Project Activity/ Source of Impact Installation Rig Daily Operation General Physical Presence Resources Affected Seabed Topography/ Sediment Quality Benthic Communities Ambient Noise Levels Marine Birds Marine Turtles and Mammals Marine Fish and Plankton Employment Fisheries Description of Impact Sediment would be disturbed and suspended into the water column during MODU spud can placement. Mud mounds created around MODU spud cans could alter seabed topography/sediment quality. Benthic organisms would be crushed and smothered by mud mounds created around MODU spud cans. The drilling rig would generate noise from normal operations. (This is primarily an occupational safety and health impact.). Marine birds could be attracted to the drilling rig, causing collisions or providing resting places. Marine turtles and mammals could be attracted to the drilling rig, causing distraction and disturbance. Marine fish and plankton could be attracted to the drilling rig. The drilling rig would offer short-term employment. The presence of the rig would preclude fishing within the required safety zone. Impact Significance before Mitigation to to Beneficial Mitigation Measures (in addition to standard management procedures) Conduct pre-mobilization seabed survey of proposed rig and spud cans locations. Carefully position and place the rig spud cans. Adhere to anchoring procedures to minimise drag on seafloor by jack-up legs. Issue personal hearing protection (if needed) to drilling rig/project personnel. Minimise unnecessary lights directed downwards toward water. Use task lighting where ever practical. Consult and coordinate with fishers and Fisheries Division. Conduct continual bridge watches for fauna, other vessels, and hazards. Residual Impact Significance Beneficial Aesthetics Physical presence.

12 Table ES.4. (Continued). Project Activity/ Source of Impact Resources Affected Description of Impact Impact Significance before Mitigation Mitigation Measures (in addition to standard management procedures) Residual Impact Significance ES-10 Deck Drainage Deck drainage and inherent contaminants such as hydrocarbons could alter marine water quality. All deck drainage discharges must be treated as appropriate or monitored to ensure compliance with the Water Pollution Rules. Occasionally (e.g., monthly) monitor effluent leaving the drilling rig oil-water separator system, just prior to discharge. Visually monitor daily the sea surface for sheen. Occasionally clean the deck floor of any hydrocarbons. Store all chemicals on the drilling rig and marine support vessels in designated contained areas of adequate capacity. Store and handle chemicals in compliance with MSDS and maritime standards. Maintain all hoses and conduct regular inspection for leaks. Maintain all equipment to ensure no leakages of chemicals, including hydrocarbons. Install leak detectors on containers. Restrict fuelling and servicing activities to trained personnel. Use appropriate pumps and nozzles for transfer of oils and fuels. Place disconnected hoses in containers to prevent spills from residual fuel. Transport collected spent lubricants offsite to a facility capable of treating and/or disposing of such waste. Inspect and maintain all fittings as required, use drip trays, and clean up spot spills on deck surfaces. Ensure deck drainage can be plugged/contained in the event of a spill. Ensure spill response equipment is available onsite. Follow emergency procedures and notifications in the event of leaks/spills. Prepare and implement Shipboard Oil Pollution Emergency Plan (SOPEP). Educate relevant personnel on waste handling procedures during transfer and operational usage.

13 Table ES.4. (Continued). ES-11 Project Activity/ Source of Impact Rig Engine and Generator Operation Sanitary and Domestic Waste Disposal Solid Waste Disposal (accidental overboard) Resources Affected Ambient Air Quality Ambient Noise Levels Seabed Topography/Sediment Quality Marine Birds, Turtles and Mammals Benthic Communities Description of Impact Rig engines/generators would emit air pollutants that could degrade ambient air quality. Contribution to climate change. Rig engines/generators would emit noise. (This is primarily an occupational safety and health issue.) Drilling rig sanitary and domestic waste disposal could alter marine water quality including biological oxygen demand, suspended solids, and nutrients. Primarily due to contaminated solid material which will have a localised impact. Physical presence of solid material on seafloor. If contaminated, can have localised effect sediment quality. Physical hazards to marine life; ingestion of material such as plastics can cause injury, death. Localised smothering of benthic organisms. Impact Significance before Mitigation to Mitigation Measures (in addition to standard management procedures) Routinely inspect and maintain drilling rig engines and generators. Use low sulfur diesel, if available. Issue personal hearing protection (if needed) to drilling rig/project personnel. Contractually require the rig operator to adhere to Voyager s waste management practices. Treat sanitary waste prior to discharge to ensure compliance with the Water Pollution Rules and MARPOL. Occasionally (e.g., monthly) monitor effluent leaving the drilling rig sewage treatment system, just prior to discharge. Comminute all food waste to a particle size of less than 25 mm before discharge. No discharge of treated or untreated sewage within 4 nmi of the shore. On-board sewage treatment plants to be approved by the International Maritime Organization (IMO) to ensure compliance with Annex VI of MARPOL 73/78. Maintain a Vessel and Rig Waste Log to record all waste management practices and record quantities of wastes transported to mainland. Segregate wastes as required and store in storage areas for transfer to onshore licenced materials handlers for disposal to an approved waste disposal facility. Provide induction training for waste management. Residual Impact Significance Coastal Habitats Aesthetic impacts on coastline.

14 Table ES.4. (Continued). Project Activity/ Source of Impact Resources Affected Description of Impact Impact Significance before Mitigation Mitigation Measures (in addition to standard management procedures) Residual Impact Significance ES-12 Support Vessel and Helicopter Operation) Ambient Air Quality Ambient Noise Levels Marine Birds Marine Turtles and Mammals Shipping and the Maritime Industry Support vessel and helicopter engines would emit air pollutants that could degrade ambient air quality. Contribution to climate change. Support vessel and helicopter engines would emit noise. Support vessel sanitary waste, domestic waste, and bilge water could impact offshore (open ocean) marine water quality. Support vessel and helicopter noise could disturb birds. Helicopters could strike birds. Marine turtles and mammals could be impacted by lost trash/debris, vessel strikes, and underwater noise. Shipping could be impacted by increased congestion and risk of collision. to High Routinely inspect and maintain support vessel (and helicopter) engines. Issue personal hearing protection (if needed) to vessel/project personnel. Contractually require support vessels to adhere to Voyager s Waste Management Program. Restrict support vessel routes to established shipping lanes. Plan helicopter flight paths and use established helicopter routes to avoid populated areas, wildlife areas, and bird colonies. Conduct routine helicopter flights only during daylight hours. Obtain permit from Trinidad and Tobago Civil Aviation Authority for all helicopter flights. Conduct continual bridge and cockpit watches for fauna, other vessels/aircrafts, and hazards and take avoidance measures as appropriate. Provide Notice to Mariners prior to commencement of drilling. Designate a Contact Officer as liaison with public and regulatory bodies. Establish appropriate safety zone around drilling locations and implement patrols. Implement HSE Management System (inclusive of Emergency Response Procedures). Consult with MEEA, EMA, and OSHA. Develop and implement a marine traffic management plan in collaboration with Maritime Services Division. Implement an education and awareness programme to keep users of the area informed about the drilling

15 Table ES.4. (Continued). Project Activity/ Source of Impact Resources Affected Description of Impact Impact Significance before Mitigation Mitigation Measures (in addition to standard management procedures) Residual Impact Significance Fisheries Employment Fisheries could be impacted by loss of equipment, increased congestion, and risk of collision. Support vessels would offer incremental short-term employment. to High Beneficial and emergency response in the event of an emergency. Consult with fishing groups and Fisheries Division prior to drilling. Place trained personnel on support vessels to deter fishermen or recreational boaters from entering safety zone. Conduct support vessel audits to ensure they are adequately and properly equipped and fit for purpose. Beneficial Drilling and Well Testing Ambient Air Quality Drilling would require running the rig engines/generators, which would emit air pollutants on a continual basis. ES-13 Drill Bit Operation Ambient Noise Levels Marine Turtles and Mammals Benthic Communities Drilling would require running the rig engines/generators, which would emit noise on a continual basis. Initial jetting and drilling, prior to introduction of the well casing, would generate turbidity plumes. Marine turtles and mammals could be impacted and disturbed by underwater noise associated with drilling. Benthic communities would be lost and smothered during initial jetting of the well hole into the seafloor. Routinely inspect and maintain drilling rig engines and generators. Use low-sulphur diesel, if available. Issue personal hearing protection (if needed) to drilling rig/project personnel.

16 Table ES.4. (Continued). Project Activity/ Source of Impact Resources Affected Description of Impact Impact Significance before Mitigation Mitigation Measures (in addition to standard management procedures) Residual Impact Significance ES-14 Drilling Fluid Usage, Drill Cuttings, and Muds Generation Cement Usage Seabed Topography/ Sediment Quality Marine Fish and Plankton Benthic Communities Seabed Topography/ Sediment Quality Drilling discharges would result in localised increases in suspended solids and barium in the water column around the rig. Drilling fluids and cuttings would accumulate on the seafloor and could alter seabed topography and sediment quality. Drilling discharge plumes could reduce photosynthesis, interfere with fish feeding, and affect zooplankton. Benthic communities would be smothered under settling (discharged) drilling fluids and cuttings. A cement plume would be generated as excess cement emerges from the borehole during cementing of the well casings. Seabed topography/sediment quality would be altered by excess cement emergence from the boreholes. to Use a muds/cuttings treatment system to minimise residual fluid on cuttings. Use only the proposed water-based muds (WBMs) and low toxicity synthetic-based muds (SBMs) that are approved by the Ministry of Energy and Energy Affairs (MEEA) for drilling program. Perform rig hose management/transfer procedure audits to prevent accidental releases of SBF. Visually monitor drilling fluid transfers and handling. Inspect fluid and cuttings control equipment regularly to ensure proper operations prior to commencement of drilling activities. Recycle/reprocess used drilling mud and retain on ship for reuse to the maximum extent practical. Centrifuge spent mud and discharge near-surface to the sea for dispersal by prevailing currents. The no discharge alternative of collecting the cuttings in a barge and transporting them farther offshore for disposal is an option. Monitor spent drill mud during discharge to evaluate dispersion in the marine environment. Monitor the cementing process to minimise excess cement from entering the environment.

17 Table ES.4. (Continued). ES-15 Project Activity/ Source of Impact Rig Demobilization and Removal Rig Removal Return Transportation Resources Affected Seabed Topography/ Sediment Quality Description of Impact Sediment would be disturbed and suspended into the water column during MODU spud can removal. Deep holes left by the MODU spud cans could alter seabed topography/sediment quality. Impact Significance before Mitigation Mitigation Measures (in addition to standard management procedures) No mitigation measures suggested. Residual Impact Significance Benthic Communities Benthic organisms would re-colonize the seafloor disturbed by the MODU spud cans. Support vessels would emit air Ambient Air Quality pollutants that could degrade ambient air quality. Ambient Noise Levels Support vessels would emit noise. Routinely inspect and maintain support vessel/equipment engines and generators. Support vessel sanitary waste, domestic Issue personal hearing protection (if needed) to waste, and bilge water could impact vessel/project personnel. offshore (open ocean) marine water Contractually require the rig transport contractor to quality. adhere to Voyager s waste management practices. Marine turtles and mammals could be Restrict MODU tow and support vessel routes to Marine Turtles and impacted by lost trash/debris, vessel established shipping lanes. Mammals strikes, and underwater noise. Conduct early consultation with relevant Shipping could be impacted by stakeholders. Shipping and the increased congestion and risk of Provide Notice to Mariners. Maritime Industry collision. Conduct continuous bridge watches for fauna, other vessels, and hazards. Fisheries could be impacted by loss of equipment, loss of fishing time, Conduct support vessel audits to ensure they are Fisheries increased congestion, and risk of adequately and properly equipped for drilling rig collision. transport. Employment Support vessels would offer short-term employment. Beneficial Beneficial

18 Table ES.4. (Continued). Project Activity/ Source of Impact Resources Affected Description of Impact Impact Significance before Mitigation Mitigation Measures (in addition to standard management procedures) Residual Impact Significance ACCIDENTS/UPSET CONDITIONS Ambient Air Quality A blowout vapor cloud would alter ambient air quality. Disturbed seafloor sediments and released hydrocarbons would alter marine water quality after a subsea blowout. to High ES-16 Well Blowout Seabed Topography/ Sediment Quality Marine Birds Marine Turtles and Mammals Marine Fish and Plankton Benthic Communities Coastal Habitats Shipping and the Maritime Industry Depressions/craters and seafloor oiling would result in changes to seabed topography and sediment quality. Spills could cause oiling of marine birds or have other adverse effects that could result in death or injury. Spills could cause oiling of marine turtles and mammals or have other adverse effects that could result in death or injury. Spills could cause oiling of marine fish and plankton, or other adverse effects, which could result in death or injury. Cratering and seafloor oiling could result in oiling, oil contamination, and mortality of benthic communities (e.g. seagrass beds). Spills could result in oiling, oil contamination, and mortality of coastal habitats (e.g. mangroves). Maritime traffic would be excluded from the spill-response area. A Tier-II response could require additional vessels and personnel assistance from the shipping and maritime industry. to High to High to High to High Routinely (e.g., fortnightly) test blowout preventer (BOP) equipment. Avoid potential for a blowout by preparing well designed drilling plan and equipping rig with adequate BOP systems. Carry oil absorbent packs and foam dispersant onboard in the event of a spill Follow emergency procedures and notifications in the event of leaks/spills. Prepare and implement Shipboard Oil Pollution Emergency Plan (SOPEP). Implement Voyager s Emergency Response Plan. Ensure key personnel are trained in blowout prevention. Ensure adequate equipment on rig to address Tier 1 spill and at shore base to handle Tier II spills with providers. Deploy Tier I and II equipment/resources in a manner commensurate with identified offshore and coastline risks.

19 Table ES.4. (Continued). ES-17 Project Activity/ Source of Impact Diesel Fuel Spill Resources Affected Fisheries Health and Safety Ambient Air Quality Marine Birds Marine Turtles and Mammals Marine Fish and Plankton Benthic Communities Description of Impact Fishing activities could be disrupted by spills and fish stock affected by oiling. Unconfined vapor cloud explosions (UVCEs) could affect project personnel, causing death or injury. Evaporating spills would impair ambient air quality through the introduction of VOCs. Spills would alter and degrade marine water quality. Spills could cause oiling of marine birds or have other adverse effects that could result in death or injury. Spills could cause oiling of marine turtles and mammals or have other adverse effects that could result in death or injury. Spills could cause oiling of marine fish and plankton, or other adverse effects, which could result in death or injury. Spills could result in oiling, oil contamination, and mortality of benthic communities (e.g., reefs and seagrass beds). Impact Significance before Mitigation Mitigation Measures (in addition to standard management procedures) Residual Impact Significance to High High to High to High Deploy Tier I and II equipment/resources in a manner commensurate with identified offshore and coastline risks. Visually monitor diesel fuel (and any condensate) transfers and handling. Daily (visually) monitor the sea surface for oil, fuel, and condensate sheen. Storage of all chemicals on the drilling rig and marine support vessels in designated contained areas of adequate capacity. Storage and handling of chemicals will comply with MSDS and maritime standards. Maintenance of all hoses and regular inspection for leaks. Maintenance of all equipment to ensure no leakages of chemicals, including hydrocarbons. Installation of leak detectors on containers. Restriction of fuelling and servicing activities to trained personnel. Use of appropriate pumps and nozzles for transfer of oils and fuels. Place disconnected hoses in containers to prevent spills from residual fuel. Transport collected spent lubricants offsite to a facility capable of treating and/or disposing of such waste. Inspection and maintenance of all fittings as required, use of drip trays, and clean up of spot spills on deck surfaces.

20 Table ES.4. (Continued). Project Activity/ Source of Impact Resources Affected Description of Impact Impact Significance before Mitigation Mitigation Measures (in addition to standard management procedures) Residual Impact Significance ES-18 Fires/Explosions/ Venting/Flaring Coastal Habitats Shipping and the Maritime Industry Fisheries Ambient Air Quality Health and Safety Spills could result in oiling, oil contamination, and mortality of coastal habitats (e.g., mangroves). Maritime traffic would be excluded from the spill-response area. A Tier-II response could require additional vessels and personnel assistance from the shipping and maritime industry. Fishing activities could be disrupted by spills. Fires, explosions, venting and/or emergency flaring would emit air pollutants that would degrade ambient air quality. Incomplete combustion during any fires, explosions, or emergency flaring could result in the fallout of unburned oil droplets to the sea surface. Fires and/or explosions could affect project personnel, causing death or injury. to High to High High Ensure deck drainage can be plugged/contained in the event of a spill. Carry oil absorbent packs and foam dispersant onboard in the event of a spill. Follow emergency procedures and notifications in the event of leaks/spills. Prepare and implement SOPEP. Transport collected spent lubricants for transport offsite to a facility capable of treating and/or disposing of waste of this kind. Collect hydrocarbon-contaminated run-off and transport to an approved waste management facility or treat to required standard before release to sea. Education in waste handling procedures during transfer and operational usage for relevant personnel. Review and follow Voyager s Standard Operating Procedures (SOPs) and Emergency Response Plans. Routinely inspect, maintain, and/or test all fire and explosion suppression systems. Minimise flaring and venting of gases as far as practical. Ensure proper operation of flare. Use of flare knockout tanks to prevent discharge of non-combusted hydrocarbon liquids during flaring.

21 Table ES.4. (Continued). ES-19 Project Activity/ Source of Impact Cumulative Impacts Resources Affected Ambient Air Quality Ambient Noise Levels Seabed Topography/Sediment Quality Marine Birds Marine Turtles and Mammals Marine Fish and Plankton Benthic Communities Shipping and the Maritime Industry Fisheries Health and Safety Employment Aesthetics Description of Impact Cumulative impacts may affect these resources due to an accumulation of human-induced changes over time and/or space. Impact Significance before Mitigation to Mitigation Measures (in addition to standard management procedures) Coordinate drilling activities with all other identified owners of infrastructure and operators of adjacent blocks. Seek agreements and practices which lessen overall, the extent of adverse cumulative effects. Consult and interact with fishers and communities throughout drilling campaign. EMA = Environmental Management Authority; HSE = health, safety, and environment; MARPOL 73/78 = International Convention for the Prevention of Pollution from Ships; MEEA = Ministry of Energy and Energy Affairs; MODU = mobile offshore drilling unit; MSDS = material safety data sheet; OSHA = Occupational Safety and Health Administration. Residual Impact Significance to

22 Drilling Muds and Cuttings Disposal Three options for muds and cuttings disposal have been examined and include reinjection into offshore wells, onshore treatment and disposal, and offshore treatment and overboard disposal. Based on the issues stated above, the best practical solution is treatment and disposal offshore, which is relatively simple and cost effective, and the resources are readily available on any conventional drilling rig. The technology is recognised as an internationally accepted method for the disposal of drilling fluids and cuttings. No Action Alternative The No Action alternative involves not pursuing the drilling of exploration wells in the MG Block. In this scenario there will be no environmental impacts from the proposed project, most of which have been determined to be adverse (i.e., negligible or minor). However, the beneficial economic impacts from the proposed project also will be avoided. The No Action alternative is not viable based on the contractual obligation between Voyager and MEEA to explore for hydrocarbon resources in the MG Block. ES.7 SPILL PREVENTION AND CONTINGENCY PLANS Drilling operations will target natural gas and condensate from a potential hydrocarbon-producing reservoir. Small oil spills of less than 50 bbl have the potential to occur during projects of this nature, with spills of 3 bbl being the most likely scenario. The worst case scenarios of a large 500-bbl diesel fuel spill and a 27,600-bbl oil spill from a well blowout were modeled (Appendix E). The results of the model predicted that generally after 30 days (760 hours) there is a 100% probability of a 27,600-bbl oil spill reaching Trinidad s shoreline within an average of 15 to 17 hours. This spill could result in approximately 9,000 bbl of oil washing ashore at the end of the 30-day simulation period. The worst case scenario determined by the model for the oil spill is 100% probability of 10,265 bbl of oil reaching shore within 5 hours from the MG 3 well. The results of the model also predicted that generally after 14 days (336 hours), there is a high probability (85% to 96%) of the 500-bbl diesel surface spill reaching shore from the wellsites. In such an event, the spill is expected to reach shore within an average time of 11 to 16 hours with approximately 100 bbl of diesel remaining onshore at the end of the 14-day simulation. The worst case scenario for the diesel spill is a 96% probability of reaching shore within 4 to 5 hours from the MG 1 and MG 2 wells. Voyager will maintain a stringent programme of equipment maintenance and personnel training to prevent these types of industrial accidents. In addition, Voyager has an established Emergency Response Plan (Appendix G) that will apply to the proposed drilling activity. ES.8 MONITORING PLAN Voyager will engage in several drilling and post-drilling monitoring activities aimed at measuring the effectiveness of proposed mitigation measures as well as the predicted ES-20

23 impacts associated primarily with drilling muds and cuttings discharges. Table ES.5 outlines this monitoring plan. ES.9 INTERAGENCY AND PUBLIC/NON-GOVERNMENTAL ORGANIZATION INVOLVEMENT Stakeholder Consultation To address requirements in the CEC process, Voyager conducted initial consultations to introduce the project to stakeholders in June and December 2012 at the Mayaro Civic Centre. Further, stakeholders were engaged through surveys and other meetings including: Household surveys in both Trinidad (339) and Tobago (273) Focus group meetings with key stakeholder groups including Fishing Groups o Cocorite Fishing Association o Las Cuevas Fishing Association o Alcan Fishing Association o South West Fishing Association Beach and Tourism Vendors Village Councils MEEA Ministry of Agriculture, Land and Food Production Fisheries Division Ministry of Tourism Shipping Association of Trinidad and Tobago Household surveys in Mayaro/Guayaguayare communities (365) Focus group meetings with key stakeholder groups including Fishing Groups Guayaguayare Ortoire Mayaro Fishing Association Women in Fishing Association Guest-house owners and operators Non Government Organizations (NGOs) Village Councils Ministry of Energy and Energy Affairs Ministry of Agriculture, Land and Food Production Fisheries Division Ministry of Tourism Shipping Association of Trinidad and Tobago ES-21

24 Table ES.5. Monitoring plan for exploration drilling and post-drilling activities in the Mayaro-Guayaguayare Block. ES-22 Project Activity/Source of Impact Affected Resource Monitoring Activity Frequency Rig Mobilization and Installation Inspect and maintain support vessel/equipment engines and generators Daily Maintain records for servicing and repair of engines Ambient Air Quality Before start of project Audit maintenance and repair programmes and records and periodically during Transportation Offshore Conduct visual inspection of engine exhaust drilling Ambient Noise Levels Inspect and maintain drilling rig engines and generators Daily Conduct bridge watches for fauna, other vessels, and hazards Marine Turtles and Mammals Collect statistics for the duration of the drilling on fauna activity Other Vessels including sightings, injuries, and nesting (if any) Daily, continuous Sanitary Effluent Disposal Collect effluent samples (post-treatment) and send to an Once during rig independent laboratory to determine fecal coliform, BOD 5, mobilization TSS, ph, and residual chlorine Rig Daily Operation Visually monitor the sea surface for hydrocarbon sheen Daily Collect effluent leaving the drilling rig oil-water separator system, just prior to discharge; send to an independent Monthly during drilling Deck Drainage laboratory to determine TPH levels Audit on board waste management plans for drilling rig, including waste disposal manifest for onshore disposal Periodically during drilling Inspect secondary containment for integrity Daily Inspect and maintain drilling rig engines and generators Daily Rig Engine and Generator Ambient Air Quality Before start of project Operation Audit maintenance and repair programmes and records Ambient Noise Levels and periodically during Conduct visual inspection of engine exhaust drilling Collect effluent samples (post-treatment) and send to an Sanitary Effluent Disposal independent laboratory to determine fecal coliform, BOD 5, TSS, ph, and residual chlorine Monthly during drilling Solid Waste Disposal Conduct visual watches for lost/floating debris Marine Turtles and Mammals Record types and amounts of solid waste disposed of Other Vessels Daily Ambient Air Quality Support Vessel and Helicopter Inspect and maintain support vessel (and helicopter) engines Daily Ambient Noise Levels Operation Inspect and maintain support vessel sewer treatment systems Weekly

25 Table ES.5. (Continued). ES-23 Project Activity/Source of Impact Affected Resource Monitoring Activity Frequency Marine Birds Audit on-board waste management plans for support vessels Marine Turtles and Mammals including waste disposal manifest for onshore disposal Periodically Shipping and the Maritime Conduct continuous bridge and cockpit watches for fauna, Industry other vessels/aircrafts, and hazards Fisheries Daily, continuously Drilling, Well Completion, and Well Testing Ambient Air Quality Drilling Activity Ambient Noise Levels Inspect and maintain drilling rig engines and generators Daily Marine Turtles and Mammals Conduct watches for marine fauna Daily Conduct toxicity testing on cuttings/muds discharges At least once during drilling at each wellsite Audit equipment and maintenance and repair programmes and Periodically records for solids control/shaker system Drill Cuttings and Muds Disposal Blowout of Gas and Condensate Rig Demobilization and Removal Return Transportation Marine Flora and Fauna Benthic Communities Ambient Air Quality Seabed Topography/Sediment Quality Marine Turtles and Mammals Marine Fish and Plankton Benthic Communities Conduct benthic survey at zone of deposition of cuttings Determine percent of muds retained on cuttings prior to Daily overboard discharge Review mud logs to verify volume of mud and cuttings Weekly Routinely test blowout preventer equipment Fortnightly Immediately after drilling stops; repeat 3 years after drilling to check for recovery Inspect and maintain support vessel/equipment engines and Ambient Air Quality Daily generators Ambient Noise Levels Inspect and maintain drilling rig engines and generators Daily Conduct bridge watches for fauna, other vessels, and hazards Marine Turtles and Mammals Collect statistics on fauna activity including sightings, injuries, Daily, continuous Other Vessels and nesting (if any) observed while in transit BOD 5 = biological oxygen demand, TOC = total organic carbon; TPH = total petroleum hydrocarbons; TSS = total suspended solids.

26 Formal invitations for these consultations were sent to the relevant stakeholders and advertisements were placed in one daily newspaper (The Newsday) inviting members of the public to the consultation. A panel composed of representatives from Voyager, CSR Solutions Limited (the Social Consultant for the Environmental Impact Assessment [EIA]) and CSA International, Inc. (CSA) (the Environmental Consultant for the EIA) made presentations on the project, the receiving environment, potential impacts, and mitigation measures. After the findings of the EIA were presented to the public, their comments and concerns were solicited. The key issue raised was that of social impacts as they relate to potential fisheries and employment issues (Appendix F). Final Environmental Impact Assessment In addition to stakeholder consultation, the EIA process provides for further public comment on the proposed project. Upon submission of the Final EIA to the Environmental Management Authority, copies of the final document will be made available for public comment. The public comment period allows further public participation in the EIA process. ES.10 SUMMARY Impacts to the physical, chemical, biological, and socioeconomic resources of the MG Block and the coastal portions of southeast Trinidad associated with the proposed drilling activity have been detailed in this EIA. The majority of routine, project-related impacts are considered negligible or low, with few exceptions. Accidental releases, however, can create medium to high impacts to specific resources. Implementation of proposed and available mitigation measures as well as Voyager s standard health, safety, security, and environment practices will manage these impacts to limit them as localised, short term, and reversible. No significant impacts from routine exploration drilling activities in the MG Block are anticipated. ES-24

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