Environmental Impact Assessment Report (Final Report Executive Summary)

Transcription

1 Environmental Impact Assessment Report (Final Report Executive Summary) Table of Content 1. Introduction Background of the Project Objectives of EIA Report Guideline of Environmental Impact Assessment Study Area Project Description Rationale of the Project Objective and Target of the Project Project Location Overview and Composition of the Project Shore Base Project Alternative With Project Case Without Project Case Work Plan Project Activities Preparation and Installation Phase Drilling Phase Petroleum Production Phase Completion and Demolition Phase Employment Waste and Waste Management Mud and Cutting Wastewater Solid waste and Hazardous Waste Greenhouse Gas Occupation Health, Safety, and Environmental Management Occupational health, safety, and environmental Policy Emergency Response Plan a

2 Table of Content 3. Environmental Setting Physical Environment Climate and METEOROLOGICAL CONDITIONS Geology Oceanography Sea Water Quality Sea Bed Sediment Quality Biological Environment Marine Ecology Water Animal Rare marine Animal Human Use Value Fishery Navigation Route Natural Gas Pipeline, Underwater cable, underwater installation nearby the project Tourism Underwater Archeology Quality of Life Value Socio-Economic Public Health Public Participation Implementing Area for Public Involvement Process People Concerning Issue, Opinion and Suggestion from Public Involvement Process Environmental, Social, and Health Impact Assessment Summary of Environmental Impact Significance Environmental, social, and health mitigation and monitoring measures Environmental, Social, and Health Mitigation Measures Environmental Monitoring Measures Environmental Monitoring Measures: Drilling Phase Environmental Monitoring Measures: Pre Drilling Phase and Production Phase b

3 List of Tables Table 2-1 Work Plan Table 2-2 Well size and volume of cuttings from each drilling section Table 2-3 Level of Oil Spill and Responsible Agency Table 3-1 Important Marine Animal Spawning Season in Gulf of Thailand Table 3-2 Distances between Project Location and Surrounding Sensitive Area Table 3-3 Fishery Volume in Fishery Area Zone 3 (2008) Table 4-1 Summary of Questions and Explanations from the First Public Involvement of Project Table 4-2 Summary of Questions and Explanations from the Second Public Involvement of Project Table 5-1 Summary of Environmental Impact Significance Table 5-2 Summary of Social Impact Significance Table 5-3 Summary of Health Impact Significance Table 5-4 Summary of Significant Impacts from Unexpected Events c

4 List of Figures Figure 2-1 Location of BLWPB Wellhead Platform in Block B8/38 of Bualuang Area Figure 2-2 Seafloor Survey Figure 2-3 Example of Wellhead Platform Figure 3-1 Environmental Sampling Stations of Project Environmental Sampling Stations of Project Figure 3-2 Spawning Location of Economic Fish in Gulf of Thailand Figure 3-3 Life Cycle of Mackerel Figure 3-4 Closing Area in Gulf of Thailand and Project Location d

5 Environmental Impact Assessment (Final Report Executive Summary) 1. INTRODUCTION 1.1 Background of the Project Previously, Soco Exploration (Thailand) Limited (SOCO) was awarded offshore Block B8/38 from the Ministry of Energy on 24 th October 2007 under the concession agreement number 3/2539/50. The total exploration area was 9,548 km 2. Later, SOCO returned some area of concession to the DMF. The remaining area of concession is approximately 375 km 2. The concession block is located in the middle of Gulf of Thailand. The North, South, East, and West of concession is connected to Block G4/50. Block B8/38 is 82 and 53 km far from Pathio District in Chumphon Province and Koh Tao District in Surat Thani Province, respectively. SOCO has followed the obligations of each concession period such as geological review, seismic survey, and exploration drilling. According to the survey, the concession is potential for petroleum production development. Therefore, SOCO requested for production license to produce petroleum in Bualuang Production Area inside concession Block B8/38 from the DMF in March After the EIA report of Block B8/38 offshore petroleum production in Bualuang Area was approved by ONEP on 17 October 2007, SOCO has installed wellhead platform and drilled production wells since August On 27 July 2009, Soco Exploration (Thailand) Limited transferred rights and obligation of concession agreement number 3/2539/50 revised by amendment petroleum concession (no.3) to (Salamander). Salamander holds 60 percent of the concession and being the operator in this concession. In present, there are BLWPA (Bualuang Wellhead Platform A), Floating Production Storage and Offloading Vessel (FPSO) namely Rubicon Vantage, one product pipeline, and one water injection well. Previously, Salamander has drilled 10 production wells and 2 water injection wells in Bualuang Area. However, the production capacity has been decreased. The seismic survey result in 2010 also found that petroleum reserve in Bualuang Area still has potential to produce. To maintain the production potential of Bualuang production area, it is necessary to install additional one wellhead platform and 16 production wells. Salamander plans to operate petroleum production project in Block B8/38 of Bualuang Area in quarter three of Salamander plans to install one additional wellhead platform namely Bualuang Field Bravo Platform (BLWPB). BLWPB is 110 and 65 km off Chumphon coast and Koh Tao District in Surattahani Province, respectively. After installation in quarter 3 or August 2012, the production wells will be drill in September Petroleum in Block B8/38 of Bualuang Production area will be produced in May ISET (Thailand) Limited 100 Nanglinchee Road, Chongnonsee Yannawa Bangkok t (66-2) f (66-2)

6 1.2 Objectives of EIA Report Petroleum development project requests EIA study in accordance of the Notification of Ministry of Natural Resources and Environment entitle: type and size of projects that need to submit EIA report and EIA Guideline in the government gazette page 13, volume 126, special section 125 ngo dated 31 August 2009 which enforce the petroleum production project to conduct Environmental Impact Assessment (EIA) report to Office of Natural Resources Policy and Planning (ONEP) for approval together with the permission from authorized agency or Department of Mineral Fuel (DMF). Therefore, Salamander has contracted ISET (Thailand) Limited hereafter called the Consultant, to conduct environmental, social, and health impact assessment report. Positive and negative impacts of the project were assessed and the most proper alternatives were selected by taking into account of physical resources, biological resources, human use value, and quality of life value. Mitigation measures and monitoring measures are also proposed for every phase of the project. The objectives of EIA study are as follows; 1) To report project description and occupational health, safety, and environmental management 2) To study and collect baseline data in terms of physical resources, biological resources, human use value, and quality of life value as well as socio-economics and attitude of stakeholders for impact assessment 3) To identify and to assess environmental, health, and social impacts (positive and negative) by taking into consideration of project description and environmental baseline 4) To allow stakeholders and related agencies to express their opinions and concerns as well as suggestions to mitigation and monitoring measures of the project that will reduce the potential conflict 5) To address mitigation measures to minimize potential impacts of each phase and to bring public concerns into mitigation measures 6) To propose academic and practical monitoring measures to follow up the project operations 1.3 Guideline of Environmental Impact Assessment These following guidelines are used to assess environmental impacts from petroleum production in Block B8/38 of Bualuang Area of ; 1) Notification of Ministry of Natural Resources and Environment entitle: type and size of projects that need to submit EIA report and EIA Guideline 2009 (2010) 2) EIA guideline for Offshore Petroleum Production Project, ONEP and Petroleum Institute of Thailand 3) Thailand Health Impact Assessment Guideline of ONEP (2009) - 2 -

7 4) People Participation and Social Impact Assessment Guidelines, Environmental Evaluation Division, ONEP (August 2006) 5) World Bank Guideline in Techniques for Assessing Industrial Hazard Manual, 1990 and US.EPA 550-B in Risk Management Program Guideline for Offsite Consequence Analysis to evaluate impacts regarding leak, ignite, and explosion in petroleum exploration and production 6) Draft Thailand Decommissioning Guidelines for Upstream Installations, Petroleum Institute of Thailand 1.4 Study Area The study area covers BLWPB wellhead platform, shore base, and affected area. Petroleum production activities might differently generate impacts to environmental resources, social and health in the different area. After scoping, the study area was identified as follows; 1) Environmental Impact Assessment (EIA) Study Area EIA study covers all operation in Block B8/38 in Bualuang Area including the related support area. Impacts to sea water quality, seafloor sediment quality, biological resources (plankton and benthos), sensitive ecosystem, and protected area were assessed. 2) Social Impact Assessment (SIA) Study Area Impact characteristic and extent are considered to study social impacts which affect the communities and stakeholders. The SIA study area can be divided into three groups as follows; Affected area in offshore includes wellhead platform. The study covers impacts to human use value and quality of life value such as fishery, aquaculture, transportation, transmission pipeline, underwater cable and underwater construction, aesthetic, tourism, and archeological site. The study area covers 500 m radius from the wellhead platform. Shore base Equipment, chemical substances, and waste transportation was studied in terms of attitude of local people towards shore base activities and public participation of the stakeholders. Fishery area The fishery area in Chumphon Province might be affected by the project activities. The public participation of stakeholders and socio-economics impacts were studied. 3) Health Impact Assessment (HIA) Study Area follows; HIA study considers characteristic and extent of impacts. The study area was divided into 2 groups as Offshore base Occupational health and safety impacts of all workers who work on the platform, support vessels, production and storage boat were studied. Unexpected events during project activities are also assessed

8 Shore base Occupational health and safety impacts of all workers who work in the shore base were studied. Health impacts to the surrounded communities were also assessed. Land transportation and public health service of surrounded area were studied in terms of health status and potential health impacts due to project activities. 2. PROJECT DESCRIPTION 2.1 Rationale of the Project (Bualuang) Ltd expected that petroleum production from BLWPA (Bualuang Wellhead Platform A) will be decreased in According to the 3D seismic survey in 2010 in Block B8/38 of Bualuang Area, the potential of Bualuabg area is still effective for petroleum production. The remaining rude oil is approximately 38 million barrels. In order to keep the production of Bualuang, it is necessary to expand petroleum production by installing one additional wellhead platform and drilling new production wells. It is expected that the petroleum from new wellhead platform can compensate the decreasing amount of petroleum. Moreover, the project will support using of domestic energy, reduce imported oil, maintain petroleum reserve of the country, increase national income by taxes and royalties, and to strengthen national energy security. 2.2 Objective and Target of the Project Currently, Block B8/38 includes BLWPA (Bualuang Wellhead Platform Alpha), Floating Production Storage and Offloading Vessel (FPSO) namely Rubicon Vantage, one product pipeline and one affluent pipeline. Previously, Salamander has drilled 10 production wells and 2 water injection wells. However, the production capacity has been decreased and the seismic survey in 2010 found the petroleum reserve in Bualuang Area. Block B8/38 is located at the small basin in the West. The block is separated by a hill. There is a fault in the West of basin. Thus, there is petroleum reserve in the middle of basin from Tertiary period. The depth of petroleum reserve is 1,100 1,130 m. It is expected that volume of petroleum will be approximately 11 million barrels (equivalent to oil Therefore, plans to install one additional wellhead platform namely Bualuang Wellhead Platform Bravo (BLWPB) and to drill additional 16 production wells to maintain petroleum production potential and to response the government policy in strengthening domestic energy security. 2.3 Project Location BLWPB is located in Block B8/38 of Bualuang Area in the middle of Gulf of Thailand. There will be a bridge (50 m long) connecting BLWPB to the current wellhead platform (BLWPA). The distance between BLWPB and Paknam sub-district, Muang District, Chumphon is 110 km in the East direction and the distance between BLWPB and Koh Tao, Suratthani Province is 65 km in the North East direction. BLWPB is 242 km South West to Sattahip District, Chonburi Province (Figure 2-1). The depth of seawater in the project area is approximately 55 m. The shorebase is located in Sattahip Commercial Port (Chuksamed Port) in Plutaluang sub-district, Sattahip District, Chonburi Province. The shore base is currently used to support company activities

9 Figure 2-1 Location of BLWPB Wellhead Platform in Block B8/38 of Bualuang Area - 5 -

10 2.4 Overview and Composition of the Project The project activities include installation of one wellhead platform, production well drilling, and petroleum production. The major compositions of construction are as follows; 1) Offshore new installation: One wellhead platform (BLWPB) with 50 m long bridge connecting BLWPA 2) Currently installed composition: which will be used in BLWPB project includes BLWPA which is currently operated in Bualuang Area FPSO (Floating Production Storage and Offloading) which is currently operated in Bualuang Area The shore base: located in Sattahip Commercial Port (Chuksamed Port) in Plutaluang sub-district, Sattahip District, Chonburi Province BLWPB and BLWPA will be connected by 50 m long bridge. After BLWPB installation, 26 production wells will be drilled and petroleum will be produced. Liquid from drilling will be transferred to petroleum pipeline (10 inches) along the bridge which is connected to offshore pipeline system of BLWPA. After that, all liquid will be transmitted to 3 Phase Production Separator). The separated petroleum will be stored on FPSO pending for truck transportation. 2.5 Shore Base Shore base of the project is located at Sattahip commercial port (Chuksamed Port) in Plutaluang subdistrict, Sattahip District, Chonburi Province. This shore base is currently used by Salamander to support activities in Block B8/38 of Bualuang Area. 2.6 Project Alternative With Project Case Petroleum production project supports domestic energy use, reduces amount of imported petroleum, and promotes energy security of the country. The project will also increase the national income by collecting taxes and royalties as well as employment which are benefit to national economy. In additions, the project is consistent with 5 years Petroleum Development Plan of DMF. According to this plan, 246,000 barrels/day of crude oil in 2014 must be procured from domestic sources (DMF, 2011). The alternatives of these following procedures are considered and selected (1) Alternative of wellhead platform location, (2) Alternative of production well design, (3) Alternative of drilling fluid, and (4) Alternative of cutting management. The result of alternative selection is described as follows; - 6 -

11 Alternative of BLWPB location The location of BLPWB is 50 m east to the existing wellhead platform. This location is selected by considering 3D seismic survey result in 2010 as well as petroleum drilling, seafloor and shallow gas survey of the previous projects in Bualuang Area. According to the geological data, the petroleum reserve is commercially valuable. Although the reserve structure is small, the equipment can be connected to existing production process without additional pipeline or new production process. Moreover, the sea floor and shallow gas survey in the past showed that location of wellhead platform is appropriate and safe. The previous operations found that there is no sensitive receptor around the project area. Therefore, the location is proper for platform installation Alternative of production well design Well design is depended on the specific geological condition of the area. In some cases, the location of casing seat must cover high porosity of rock formation. Otherwise, loads of drilling mud will be lost. Site selection criteria is considered by risk of drill pipe blockage which caused by decreasing of well pressure. For deep hole, well pressure and prevention of shallow rock formation are considered when selecting location of casing seat. Geological characteristics such as formation pressure and direction cleavage are needed to know in order to control well pressure. The engineer will design casing seat based on the assumption before drilling. Size of hole (Slim Hole or Conventional Hole) is considered by budget and readiness of the equipment. Small size is more economical. However, the drilling tools are other factors of size selection. Deviated drilling is one alternative for consideration to selected the appropriate option for budget, readiness of tools, and unexpected events Alternative of drilling fluid selection Drilling fluid that normally used in Gulf of Thailand includes sea water and drilling mud. There are many types of drilling mud such as Water Based Mud (WBM), Oil Based Mud (OBM), and Synthetic Based Mud (SBM). Each type of mud has different characteristic. Seawater and water based mud (WBM) will be used as drilling fluid in the upper section. Drilling fluid is usually lost in the upper drilling section because the hole is wide and formation is soft. Therefore, inexpensive drilling fluid is selected. To minimize the impacts to the environment, sea water will be used for upper section drilling and WBM will be used for medium section. However, drilling with sea water will generate great amount of cuttings. Although WBM is environmentally friendly, the effectiveness of drilling is low and may generate difficulties in drilling such as reaction with mud and salty layer. In additions, WBM lifetime is limited and the quality will be reduced by the time. Therefore, other drilling fluid is need for lower section drilling. High technology is needed to apply in lower drilling section to control the reaction between shale/ mudstone and drilling fluid which may cause obstruction of drill pipe. SBM is widely accepted that it is efficient and economical. Moreover, drilling mud must be used for drilling of hydrocarbon formation. Barite must be avoided because it will plug in the space of formation. In additions, SBM can be reused after separating from cuttings

12 Therefore, seawater will be used for upper drilling section. WBM will be used for medium drilling section while SBM will be used for lower drilling section in order to prevent technical error, to shorten drilling duration, to reduce cuttings, to save cost, and to minimize environmental impacts Alternative of Cutting Disposal Method of cutting disposal is considered by technical and practical possibility and environmental impacts. Cuttings from upper drilling section (sea water) will be directly discharged into the sea. Cutting from medium and lower section will be separated to separate mud from cutting. Then, cuttings will be collected in a big bag pending for disposal by the contractor who obtained license from Department of Industry. Mud will be reused. Therefore, cutting disposal of the project is environmentally friendly and practical Without Project Case Demand of oil consumption in Thailand has been steadily increased while domestic production is still insufficient. The capacity of domestic crude oil and condensate production is approximately 1,000,000 barrels per day which is counted only 21 percent of country demand. The remaining has to be imported from other countries. The value of petroleum import is 7.5 hundred thousand million Baht (DMF, 2011). If there is no project, Thailand must import oil from other countries. In additions, it may cause loss of country s benefit such as; 1) If there is no production in Bualuang Area, oil must be imported from other countries. Other sources of energy such as water energy and coal may be used. 2) Taxes, royalties, and income from petroleum selling will not be received. BLWPB drilling will produce oil for more than 16,000 barrels per day. Additional million barrels can be produced until end of concession in 2020 when comparing to the production of 10 existing production wells at current wellhead platform (BLWPA). The other alternative is deviation of drilling direction from existing BLWPA to drill 16 production wells in the North of East Bualuang. This alternative is not economical because it consumes long time to operate and potential assessment of East Bualuang must be conducted. The production of other resources is still in the survey stage and might be completed at the same time of end of concession in Therefore, having project is better and more appropriate alternative than no project

13 2.7 Work Plan The main activities of the project can be divided into three phases as follows; 1) Preparation and installation phase 2) Drilling phase 3) Production phase Offshore activities will be started after the EIA report is approved by ONEP. The primarily work plan is shown in Table 2-1. Table 2-1 Work Plan Activity 1/ Q1 3/ Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1. Wellhead Platform Installation 2. Production Well Drilling and Preparation 2/ 3. Petroleum Production Oct 2012 Nov 2012 June 2013 Start Production Remark: 1/ BLWPB including connection bridge to BLWPA in Bualuang Area will be constructed by Thai Nippon Steel Engineering and Construction Corp., Ltd. in Bangpakong District, Chachoengsao Province. The period of construction is approximately 1 year. Construction activities onshore of the contractor will be operated under their own authorized agencies. Therefore, onshore construction is not included in this EIA. 2/ Period = approximately 22 days/ one well 3 / Q1, Q2, Q3 and Q4 refer to Quarter 1, 2, 3 and 4 Source: Salamander (2012) BLWPB will be constructed in October 2012 and the production well drilling can be done during November 2012 June It is expected that BLWPB can produce the petroleum at the end of Quarter 2 of The expiration of BLWPB is approximately in For well completion and demolition phase, the construction of wellhead platform will be removed in accordance of Thai Law and the plan which is approved by DMF. 2.8 Project Activities The project activities include 4 major phases; preparation and installation phase, production well drilling phase, production phase, completion and demolition phase. The details of each phase are described as follows; Preparation and Installation Phase Preparation and installation phase includes informing project description to the stakeholders, seafloor and shallow gas survey, construction and mobilization of wellhead platform. Side-scan Sonar is used to survey seafloor condition of installation area in order to find out the most appropriate location for installation (Figure 2-2)

14 Source: National Oceanic and Atmospheric Administration (NOAA), U.S. Department of Commerce (2011) Figure 2-2 Seafloor Survey BLWPB will be constructed onshore by Thai Nippon Steel Engineering and Construction Corp., Ltd in Chachoengsao Province. The duration of construction is approximately 1 year. BLWPB has 4 legs (Figure 2-3). Total 16 well slots are designed to support petroleum from 16 production wells in the same time. The wellhead platform can support jack-up rig which is able to drill all 16 wells. BLWPB works by remote control from FPSO which is currently operated in Bualuang Area. There is no worker and no production on the platform. Only necessary equipment are on the platform. BLWPB is designed to be able to maintain at installation place as much as possible. Life time of BLWPB is not less than 15 years. The wellhead platform can be removed and reused in other production area. Source: SOCO Exploration (Thailand) Ltd (2008) Figure 2-3 Example of Wellhead Platform

15 The following equipment will be installed on the wellhead platform; Production Manifolds Electrical Submersible Pump (ESP) Electrical Switchgear Wellhead Controls Well Test Facilities Multiphase Flow Meter (MPFM) Controls and Shutdown System Power Generation Chemical Injection Facilities Seawater Lift Pump Diesel System Other facilitation systems which will be constructed include; Drinking/ Consumption Water Water Drainage System Firstly, wellhead platform will be lifted up by a crane then foundation pile will be installed into the seafloor. Then, the upper compositions will be combined with the legs of wellhead platform. The installation is approximately 1 month. Before mobilization of BLWPB, Salamander will contact DMF to inform about the project to Hydrographic Department, Royal Thai Navy to issue marine notification to fishing boats and transportation boats to avoid passing the area Drilling Phase Jack-up Rig will be used to drill the production wells. The jack-up rig is triangular truss legs and standardized by International Maritime Organization. Size of rig is 68 m wide, 8.5 m high, and 72 m long (99 m long including helicopter yard). The length of each leg is 154 m. There is a spud can (17 m diameter and 9.8 m high). The support area of each leg is 227 m 2. Drilling capacity is deeper than 9,000 m. Before mobilization of the rig, Salamander will contact DMF to inform about the project to Hydrographic Department, Royal Thai Navy to issue marine notification to fishing boats and transportation boats to avoid passing the area

16 Drilling rig will be mobilized by vessel and combined to wellhead platform. Two supporting vessels will be run in the area to warn the fishery boats. Fishing tools will be removed if necessary. The fishermen will be informed about wellhead platform installation. Platform installation and production well drilling will take approximately 17 days per one well. The project will drill 16 production wells. Then, the drilling rig will be moved out Well and Casing Design The depth of production well is divided into three sections; upper section, middle section, and lower section. There are two types of production wells as shown in Table 2-2. Table 2-2 Well size and volume of cuttings from each drilling section Well Design Well Size (inch) Casing Size (inch) True Vertical Depth (m) Measured Depth (m) Volume of Cutting per Well (m 3 ) Type 1 Upper section 17-1/2 13-3/ Middle section 12-1/4 9-5/8 2,600 2,600 Lower section 8-1/2 3,350 3, Type 2 Upper section 12-1/4 9-5/ Middle section 8-1/2 2,600 2,600 Lower section 6-1/8 3,350 3, Source: (Bualuang) Ltd (2011) Production Well Drilling 1) Upper Section: upper drilling size 17-1/2 inches for type 1 and 12-1/4 inches for type 2 will be drilled to 600 m depth (from drilling rig). After that, casing will be installed. Casing size 13-3/8 inches is for 17-1/2 inches of upper hole while casing size 9-5/8 inches is for 12-1/4 inches of upper hole. Cement will be plugged between surface of casing and production well. Casing is aimed to prevent collapse, to prevent cutting and rock, to prevent mud lost, and to separate rick formation from the well. Sea water will be used as drilling fluid and cuttings will be directly discharged into the sea. The duration of upper section drilling is approximately 15 hours per one well or 240 hours per 16 wells. Therefore, the total duration of drilling and cutting discharge is 10 days. 2) Medium Section: medium drilling size 12-1/4 inches for type 1 and 8-1/2 inches for type 2 will be drilled to 2,600 m depth. Water Based Mud (WBM) will be used as drilling fluid. After that, casing (size 9-5/8 inches) will be installed in the 12-1/4 inches of upper hole and plugged by cement. For 8-1/2 inches section, casing will not be installed

17 3) Lower Section: lower drilling size 8-1/2 inches for type 1 and 6-1/8 inches for type 2 will be drilled to 3,350 m depth. Casing will not be installed in this section. Synthetic Based Mud (SBM) will be used as drilling fluid. Only cuttings from upper section drilling will be discharged into the sea. The amount of cuttings from 16 wells is approximately 1,065 m 3. Cutting from medium and lower section will be separated to separate mud from cutting. Then, cuttings will be collected in a big bag pending for disposal by the contractor who obtained license from Department of Industry. Mud will be reused. Amount of cuttings from each drilling section is shown in Table Well Control and Blowout Preventor Blowout can be occurred in high pressure condition and may generate spilling which leads to huge destroy. Although the possibility of blow out is very low, the pressure inside the well will be carefully controlled. Weight of mud will be used to force the pressure and the bottom well pressure will be frequently monitored in order to adjust appropriate weight of mud. If the bottom well pressure is higher than weight of drilling mud (Kick), blowout will be occurred. Moreover, blowout preventer will be installed to prevent petroleum spill. Blowout preventor is designed to prevent uncontrollable blowout from petroleum trap. Blowout preventor will be installed before drilling medium section. On Emerald Driller, there are 2 types of valve; one annular valve and one or two rams. Since blowout preventor is very important for safety of workers and platform, the equipment will be monitored, tested, and replaced regularly in accordance of the maintenance plan Wireline Logging (data record) After drilling and casing installation, wireline logging will be conducted to record the characteristics of formation such as electric characteristic and porosity. Fluid will be also monitored to assess potential of petroleum production. There are 4 majors sections; recorder (to measure data), data recording computer on land (to record and analyses data), cable or wireline (to connect with recorder in the well, and lifting equipment (to put equipment into the well) Petroleum Production Phase Fluid from production well (crude oil, natural gas, and produced water) will be drawn by Electrical Submersible Pump (ESP). The electric is from FPSO namely Rubicon Vantage which is currently operating in Bualuang Area. Rubicon Vantage can contain maximum 40,000 barrels per day. Oil will be drawn via production manifold and pipeline (10 inches) which is connected to BLWPA at pig launcher. Then, all fluid will be transported via marine pipeline to production process on FPSO and transferred to 3 Phase Production Separator. The separated outputs are oil, water, and gas. Crude oil will be transported to the tank on FPSO pending for boat transportation. Gas will be flared at the stack. Produced water will be transferred to hydrocyclone to separate contaminated oil and produced water degasser. Then, produced water will be injected to the water injection well. Separated oil will be collected in the close container pending for disposal by contractor who obtained the license from Department of Industry

18 Salamander plans to start petroleum production in BLWPB in beginning of quarter 2 of 2013 until the end of concession or the year Completion and Demolition Phase BLWPB is designed to be used for 15 years. However, the lifetime can be expanded. When the amount of oil reserve is finished or not commercially to invest, the project will be stopped. Thai laws and concession conditions will be seriously followed when demolishing wellhead platform. Currently the concessionaires in Gulf of Thailand, DMF and Thailand Petroleum Institute are working together to publish guideline for petroleum structure demolition. 2.9 Employment Skilled labors both Thai and foreigners will work offshore. The workers will stand-by on FPSO, platform, support vessels, and shore base. Workers will live on FPSO, platform, and support vessels. Workers will be transported by boat from FPSO to wellhead platform. Therefore, there is no campsite on shore. There are 6 permanent staffs at the shore base. These staffs are already working for Salamander to support equipment and material transportation from shore base to offshore area. These staffs will work for this project. There is no camp site on the shore base Waste and Waste Management Mud and Cutting Slim hole technique will be applied in drilling production well. Slim hole technique produces less cutting than the conventional drilling. Cutting from upper drilling section (1,065 m 3 from 16 wells) will be discharged to the sea (Total volume of cuttings from three sections of 16 wells = 3,101 m 3 ). Cuttings from middle and lower section drilling sections will be transferred to solid separator to separate mud from cutting. Cuttings will be collected in a big bag pending for disposal onshore by contractor who obtains the license from Department of Industry (preliminary expect to contact Premier Oil Services). The drilling mud will be reused. Therefore, mud and cuttings from middle and lower section drilling sections will not be discharged to the sea. Amount of cuttings from each drilling section is shown in Table Wastewater Wastewater from the project includes contaminated water from drainage and wastewater from consumption. Details and method of wastewater management are described in this section

19 Wastewater from drainage Wastewater from wellhead platform, FPSO, and supporting vessels will not exceed the capacity of wastewater treatment system. Non-contaminated water includes rainwater, clean ballast water, and water for washing which will be directly discharged into the sea. Contaminated wastewater is from wellhead platform, FPSO, and supporting vessels. Contaminated wastewater management is described below; 1) Rain water, clean ballast water, and non-contaminated water from washing will be directly discharged into the sea. Rain water from machine area on the wellhead platform will be flown to open drainage system. 2) Bilge water, water from cleaning and affluent from platform and FPSO will be transferred to oily water separator on wellhead platform and FPSO to separate oil before discharging treated water into the sea. The discharged water must comply with the regulation. Oil and grease must be not more than 100 ppm. For discharging within 12 nautical miles from coast, oil and grease must be not more than 15 ppm in accordance of MARPOL 73/78 Annex 4, entitled: regulation for water pollution prevention (wastewater). Not more than 15 ppm of oil in affluent water from platform and FPSO is allowed. Separated oil and grease must be collected in the tank pending for disposal onshore. Initially, Premier Oil Services who obtained the license from Department of Industry will be contracted to manage wastes of this project Produced Water All produced water will be injected into water injection well without discharging to the sea. In case that it is necessary to stop water injection, produced water will be stored in the affluent tank (contaminated water) in order to separate oil and water. Separated water will be collected in the affluent tank (non-contaminated water) until the injection can be started. In case that the storage capacity is exceeding and injection not yet starts, the production will be temporally stopped until the system is repaired. Then, water will be injected to the water injection well as usual Wastewater from consumption and refuse Sources of wastewater from residence include; 1) Sources of wastewater from consumption are from washing and canteens in the vessels and platform. The wastewater is 80 percent of water consumption per day or 200 liters per person per day (ONEP, 1999). Therefore, the amount of wastewater will be approximately 160 liters per person per day (0.16 m 3 per person per day). 2) The amount of sewage from toilets is expected to generate 60 liters per person per day (0.06 m 3 per person per day) (Pollution Control Department, 2537). Amount of wastewater and sewage will be increased from existing situation only in the preparation and installation phase as well as drilling phase. Wastewater can be treated by water treatment system on platform and support vessels. There is no increasing amount of wastewater in the production phase since there is no workers on BLWPB and no additional employment for offshore and shore base work

20 Wastewater from platform on from more than 400 ton gross vessel will be treated before discharging in accordance of Annex 4 of MARPOL 73/78 (Thailand ratifies only Annex 1 and Annex 2). The treated affluent must contain ph in between BOD must not exceed than 25 mg/l. COD must not exceed 125 mg/l. Total suspended solid (TSS) must not exceed 35 mg/l and coliform bacteria must not exceed 100 units per 100 ml. There are 6 workers at shore base site. The wastewater from consumption is approximately 0.96 m 3 per day and the sewage is approximately 0.36 m 3 per day. Wastewater and sewage will be treated in the septic tank. However, these 6 workers are currently working for the existing activities. There is no additional worker at the shore base due to this project Solid waste and Hazardous Waste Waste from the project activities include non-hazardous and hazardous waste. Most of waste will be nonhazardous such as food scraps, sewages, wooden scrap, paper, plastic, and metal scrap. Hazardous waste includes used oil, oil contaminated water, expired chiller, fluorescent bubble, expired chemical substance, contaminated clothes, chemical container, battery, used PPEs, and chemical contaminated materials. Initially, Salamander will contract Premier Oil Services (Appendix 2-7) who obtained the license from Department of Industry to manage wastes (solid waste and hazardous waste) from this project. Non-hazardous and hazardous waste will be separated, collected, and recorded at collection point. Amount, weight, and storage on FPSO and transportation vessels must be recorded Greenhouse Gas Most of greenhouse gas emission (Carbon Dioxide, Nitrogen Oxide, and Methane) in seabed survey, rig mobilization, and wellhead platform installation will be from combustion of support vessels. In drilling phase, most of greenhouse gas emission will be from electric generator, support vessels, and gas flare. In production phase, all petroleum will be transferred to production process on FPSO in Bualuang Area. Therefore, sources of greenhouse gas emission in production phase are from electric generator, support vessels, and equipment on FPSO and support vessels. The additional activities of this project include BLWPB mobilization and production well drilling. Greenhouse gas emissions in preparation/ installation phase and drilling phase are 3, and 67, ton CO 2 equivalent respectively In the production phase, greenhouse gas emission is 134, ton CO 2 equivalent / year. The prediction of greenhouse gas emission in the production phase is assessed by maximum use of fuel and gas flare. The baseline data of existing projected is used for calculation. The periods of operation in each phase are as follows; Preparation and installation = 1 month Drilling of 16 production wells = 272 days or 9 months

21 Petroleum Production until end of concession (2020) In the production phase, greenhouse gas emission will not be increased since the production rate will be similar to the current production process. In additions, the number of supporting vessels and FPSO will be the same Occupation Health, Safety, and Environmental Management Occupational health, safety, and environmental Policy tends to promote; Safety and health of workers and other personnel Environmental protection in the project area Respect of community s need The company intends bring occupational health, safety, and environmental policy into practice. The policy will be revised and developed endlessly in order to reduce risk to human and the environment Emergency Response Plan has prepared emergency response plan to support unexpected events in Block B8/38. The emergency response plan is aimed to protect workers and contractors from accident and to reduce possibility of injury/ death during emergency situation. Emergency response plans of this project include; Medical plan Oil spill response plan Typhoon plan Medical Plan has prepared medical plan in case of sickness and injury of workers. The medical plan is aimed to provide first aid for the patient before transferring to onshore medical service and to minimize the impacts as much as possible. Moreover, Salamander has contracted International SOS Service (Thailand) Limited (ISOS) for patient evacuation service. The ISOS call center can be contacted 24 hours every day

22 Oil spill response plan Oil spill response is depended on the level of leaking, severity, type of oil, location of leaking, and dispersion. For the effectiveness of oil spill response, the severity of oil spill is classified into 3 levels in accordance of the national oil pollution prevention plan B.E as shown in Table 2-3. Table 2-3 Level of Oil Spill and Responsible Agency Level of Spill Magnitude Responsible Agency and Supporting Team Tier I less than 20 tons Field Emergency Response Team and Local Control Center area able to control the situation by using existing equipments in the field. There is no impact to outside area. Therefore, it is not necessary to request for assistance from Bangkok Head Quarter. The incident must be reported to Head Quarter. Tier II 20-1,000 tons Incident Command Post and Local Incident Management Team (LIMT) of Salamander (Bangkok Head Quarter) can control the situation. In some cases, assistance of tools from other domestic agencies such as SEACOR Environmental Services (Thailand) or other company that operated nearby, as well as Thai government. Tier III more than 1,000 tons The situation is beyond capacity of Incident Command Post and Local Incident Management Team (LIMT) of Salamander (Bangkok Head Quarter). Assistance from International Salamander, Thai government, and Oil Spill Response Limited (OSRL) is request to impede the situation. Source: (2011) Typhoon response plan has prepared Typhoon response plan. The procedures of practice for workers, contractor, and the crew are addressed. The practice is divided into 5 phases. The selected procedure is under the decision of director of Bualuang Production Area. Warning and evacuation procedure of 5 phases of Typhoon in Gulf of Thailand are summarized as follows; Warning Phase (approximately 1,150 nautical miles from the project area): The movement of typhoon is informed to warn the staffs. However, all activities will be normally operated. The movement of typhoon must be continuously monitored. Phase 1 (approximately 650 nautical miles from the project area): Emergency Response Onshore Committee at Sattahip Office must prepare for typhoon response. Typhoon response plan must be reviewed. Some activities must be temporary stopped. Then, the safety zone for evacuation will be addressed. In addition, Marine Weather Service (MWS) will report the weather and typhoon movement every 6 hours

23 Phase 2 (approximately 550 nautical miles from the project area): the movement of typhoon must be seriously monitored. All activities will be stopped. Non-related persons and some workers must be evacuated to the safety area. Phase 3 (approximately 450 nautical miles from the project area): Some staffs must be additionally evacuated. Some drilling and communicating staffs must be stood by the Bualuang Area. Then, the safety route will be defined to mobilized rig and FPSO. In addition, Marine Weather Service (MWS) will report the weather and typhoon movement every 3 hours. Phase 4 (less than or equal 350 nautical miles from the project area): Most of workers will be evacuated to the safety area. Only some workers will be standby on the platform and FPSO to mobilize the rig and FPSO to the safety zone. 3. ENVIRONMENTAL SETTING 3.1 Physical Environment Climate and METEOROLOGICAL CONDITIONS Climate condition of project area is commonly rain and high temperature all year through. The weather of project area is influenced by northeast and southwest monsoons. In southern region, there are only 2 seasons including rainy season (May to January) and summer season (February to April). According to meteorological data of Chumphon Meteorological Station between reported that annual average rainfall was mm. Maximum average rainfall was mm in November. Minimum average rainfall was 45.9 mm in February. Wind direction came from east to west direction. Monthly average wind speed was in range knots or km/hr Geology Geological condition of Gulf of Thailand consists of non-marine and Lacustrine Deposition. Middle Late Oligocene mudstone is petroleum because there are many organic matters in the rock formation. During Miocene to Pliocene Period, the basin had slowly subsided. In Middle to Late Miocene, continental plate movement caused unconformity geological condition including Pattani basin. The unconformity is the marker that indicates sediment deposition in Gulf of Thailand. Block B8/38 covers most areas of Kra-Kro basin and western basin, which is Tertiary basin. Both basins are separated by long ridge which appears in Late Miocene and Early Pliocene. The deepest location of the basin is in central basin during Pre-Tertiary Period, approximately 5,000 m and 2,000 m. Geological structure of top basin is composite fault, relating to formation lifting. Because of return of basin during Early and Middle Miocene Period, it caused fault movement of central part of Kra basin

24 3.1.3 Oceanography Gulf of Thailand covers an area of 320,000 km 2. It has deepest point less than 90 m. There are two undersea ridges separate Gulf of Thailand and South China Sea, causing seawater exchange between the both areas. There are 2 narrow ridge passes, approximately 67 m deep and 50 km wide, connecting seawater mass between Gulf of Thailand and South China Sea. In northern and eastern parts of the gulf, sea depth is less than 20 m even though the area is far from land km. In western part of the gulf is steeper slope than other areas. Sea depth is approximately 20 m between km. Ten percent of the gulf is deeper than 75 m which is in central part of the gulf, approximately 150 km from land. Therefore, oceanographic condition of Gulf of Thailand is composited from many factors including geological structure, tide, seawater current from monsoon influence, freshwater from land, upwelling and down welling, seawater mass from South China Sea etc. However, seabed of project location is flat. Sea depth is approximately 55 m Sea Water Quality Seawater quality sampling was carried out during October The sampling stations included BLWPB wellhead platform location (1 sampling station), near FPSO in Bualuang production area (1 sampling station) and 1 control station (Figure 3-1). Result of study concluded that all seawater quality samples were classified in Class 1 of Seawater Quality Standard following National Environmental Board, Volume 27, B.E.2549, Entitle; Seawater Quality Standard as notified in Royal Gazette, Volume 124, Section 11D on 1 February B.E The seawater quality standard (Class 1) indicates that it is not used for any specific propose. It is natural seawater, being used for breeding or larvae nursery area or food source or habitat of marine fauna and flora or sea grass Sea Bed Sediment Quality Seawater sediment quality sampling was carried out as same sampling station as seawater quality sampling (2 sampling stations and 1 control station). Results of seabed sediment quality analysis were compared with Draft Seabed Sediment Quality Standard of Proposed Marine of Natural Resources and Environment (Pollution Control Department, 2006). The standard determined both ERL (Effect Range Low) and ERM (Effects Range Median Values). ERL value is the low range of chemical concentration in seabed sediment that does not significantly make toxicity to sensitive living things. ERM is the moderate range of chemical concentration in seabed sediment that does not significantly make toxicity to sensitive living things. The results of seabed sediment analysis concluded that all seabed sediment samples met Draft Seabed Sediment Standard of Pollution Control Department

25 Figure 3-1 Environmental Sampling Stations of Project Environmental Sampling Stations of Project

26 3.2 Biological Environment Marine Ecology Coral reef Marine and Coastal Resources Research Center, the Central Gulf of Thailand had surveyed and evaluated coral reef in central part of Gulf of Thailand in 2009 by using Line Intercept Transect, covering an area of 3, rai. The results of survey in Chumphon province are concluded as following details (Marine and Coastal Resources Research Center, the Central Gulf of Thailand, 2010). 1) Samed Island has coral reef areas of about rai. Most coral reefs are in poor condition. Massive coral (Porites lutea) is mostly found in the area, covering an area of about percent of total coral area. Dominant coral species include Pavona spp. (2.70%) and Pocillopora damicornis (1.30%). 2) Sak Island has coral reef areas of about rai. Most of coral reefs are in moderate condition. Dominant coral species include Staghorn coral (Acopora spp.) and massive coral (Porites lutea, Pocillopora damicornis, Turbinaria sp. Diploastrea heliopora). 3) Maprao island has coral reef areas of about rai. Most of coral reefs are in moderate condition. Massive coral (Porites lutea) is mostly found, covering an area of percent of total coral area. Dominant coral species include Acopora spp (9.23%) and Pocillopora damicornis (4.87%). 4) Matra island has coral reef areas of about rai. Most of coral reefs are in good condition. Massive coral (Porites lutea) is mostly found, covering an area of percent of total coral area. Dominant coral species include Montipora spp. (3.53%) and Pocillopora damicornis (2.63%). Marine and Coastal Resources Research Center, the Central Gulf of Thailand had surveyed and evaluated coral reef distribution and its boundary by using Line Intercept Method in Tao island, Suratthani province in March The coral reef area is far from project location about 65 km. There were 8 coral sampling stations including station 1 (Muang bay), station 2 (Kluay Tuan bay), station 3 (Hin Wong bay), station 4 (Tean cape), station 5 (Kong Sai Deang island), station 6 (Mea Had bay), station 7 (Nang Yuan island) and station 8 (Had Sai Ree bay). The results of study concluded that very good coral condition areas were found in 3 stations i.e. Muang bay, Kong Sai Deang Island and Had Sai Ree bay. Good coral condition areas were found in 4 stations i.e. Kluay Tuan bay, Hin Wong bay, Mea Had bay and Nang Yuan Island. Poor coral condition area was found in 1 station i.e. Tean cape, located in east direction of Koh Tao Island. Dominant coral species that were found in almost stations include massive coral (Porites lutea) and flower coral (Pavona sp.)

27 Sea grass source Sea grass source at Teeb Island in Chumphon province is nearest project location. According to sea grass source survey at Teeb island of Marine and Coastal Resources Research Center, the Central Gulf of Thailand during March 2010 found that sea grass area was approximately 75 rai including Halodule pinifolia. The research center had surveyed sea grass at Phangan Island during 6-12 September 2009 and reported that there were 5 species of sea grass including Enkalus acoroides, Thalassia hemprichii, Halophila ovalis, Halophila minor and Halodule uninervis. Moreover, sea grass areas were found in Woktum bay, Bang Charu bay, Ban Tai bay, Chalok Lum bay and Sri Kantrang bay, covering an area of 1, rai (Marine and Coastal Resources Research Center, the Central Gulf of Thailand, 2010) Mangrove area Mangrove is an important ecosystem for human uses, located in coastal clay area and brackish. There are many benefits of mangrove including animal breeding area, larvae nursery area, aquatic animal and seabird habitats, relief severity of sea wave and typhoon. Also, mangrove tree (Rhizophoraceae) can be made to be a good charcoal which has high heat but with less smoke. In Chumphon province, mangrove forest areas distribute in 5 districts from 8 districts of the province including Muang Chumphon district, Thung Tago district, Pataew district, Sawee district and Langsuan district. In 2006, mangrove areas in the province were approximately 46, rai (Department of Marine and Coastal Resources, 2007). However, there is no mangrove forest in project location. The nearest mangrove forest from project area is Thungka-Sawee mangrove forest in Chumphon province Water Animal Most areas of Gulf of Thailand are important for fishery because many areas are spawning areas of economic fish. Western Gulf of Thailand is an important habitat and spawning area of many marine animals and economic pelagic fish i.e. Indo-Pacific Mackerel, Indian Mackerel, Spanish Mackerel, Scads or Carangids, Long Tail Tuna, Eastern Little Tuna, Sardines, Trevallies and Anchovies. According to fishery statistic data in 2008 of Department of Fishery (2010) reported that the pelagic fish which mostly caught were Anchovies, Indo-Pacific Mackerel and Sardines, respectively. Demersal fish had less economic value than pelagic fish. Demersal fish species were commonly found in Gulf of Thailand including Threadfin breams, Snappers, Grouper, Monocle Breams, Lizard fish, Barracuda etc. According to fishery statistic data in 2008 of Department of Fishery (2010) reported that the demersal fish which mostly caught were Threadfin breams, Purple-Spotted Big eye and Lizard fish, respectively. Spawning season of important marine animal in Gulf of Thailand is shown in Table 3-1. Project area is located in spawning area of Tuna and Indo-Pacific Mackerel (Figure 3-2), but not in life cycle area of Indo-Pacific Mackerel (Figure 3-3)

28 Table 3-1 Important Marine Animal Spawning Season in Gulf of Thailand Marine Animal Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 1) Indo-Pacific mackerel 2) Indian mackerel 3) Spanish mackerel 4) Long tail tuna 5) Eastern little tuna 6) Skipjack tuna 7) Carangids 8) Sardines 9) Anchovies 10) Lizard fish 11) Spotted Lizard fish 12) Threadfin breams 13) Purple-Spotted Bigeye 14) Splendid Squid Legend: Spawning Period Maximum Spawning Period Lavea Period

29 Source: Applied from Natural Resources and Environmental Situation Report, Volume 6, UNEP GEF Project on Reversing Environmental Degradation Trends in the South China Sea and Gulf of Thailand, Department of Fishery (2006) Figure 3-2 Spawning Location of Economic Fish in Gulf of Thailand

30 Source: Applied from Natural Resources and Environmental Situation Report, Volume 6, UNEP GEF Project on Reversing Environmental Degradation Trends in the South China Sea and Gulf of Thailand, Department of Fishery (2006) Figure 3-3 Life Cycle of Mackerel

31 3.2.3 Rare marine Animal Sea Turtle According to annual report in fiscal year of 2009 of Marine and Coastal Resources Research Center, the Central Gulf of Thailand reported that egg laying of sea turtle was found in Thapsakae district of Prachuapkhirikhan province, Langsuan district of Chumphon province, Thong Lang island of Chumphon province, Tao island in Phangan district of Suratthani province. Sea turtle spawning season is in May to August. The nearest sea turtle spawning area from project location is Tao Island in Suratthani province. Because sea turtle has certain habitat, food source and spawning area, therefore sea turtle must move or migrate to each area by time and season. Sea turtle migrating distance depends on its species and behavior. In Thailand, sea turtle migration had been studied in cooperation of Tokyo University, Japan, both researcher and budget. The sea turtle migrating route had been studied by using satellite system both in Gulf of Thailand and Andaman Sea. The result of study reported that sea turtle moved to its food sources in many directions and long distance for example, some sea turtle moved to Philippines, Reedang Island in Malaysia and Vietnam (Sea Turtle Conservation Center of Royal Thai Navy, 2009). Because sea turtle migrating routes have many directions, therefore, it is expected that some sea turtle may occasionally move passing project area Dolphin and Whale Dolphin and whale survey had been carried out on 20 March 2007 by using fixed wing aircraft of Thai Aircraft Conservation and Development under Royal Patronage. The survey result reported that a dolphin was found along coastal area of Chumphon. A school of dolphin (6-10 dolphins) was found in coastal areas from Chumphon to Nakhonsithammarat Province on 22 March A school of Irrawaddy dolphin and Indo-Pacific hump-backed dolphin (15 individuals) was found on 26 March 2007 (Department of Marine and Coastal Resources, 2008). On 26 October 2008, Indo-Pacific hump-backed dolphin ran aground at Koh Tao Island, Phangan district of Suratthani province. Karnchana (2007) concluded dolphin and whale survey data from interviewing that around Bryde's Whale (1-2 individuals) were found at Angthong island of Suratthani province. Killer whale and Whale Shark were found in Tao island of Suratthani province. Many dolphins were found along coastal areas from Prachuapkhirikhan to Suratthani provinces including Indo-Pacific hump-backed dolphin (20-30 individuals), Irrawaddy dolphin (5-10 individuals) and Finless porpoise dolphin (25-40 individuals). province. Whale and dolphin were found near project area i.e. Koh Tao Island, Phangan district of Suratthani

32 Dugong There is only one species of dugong in Thai water territory i.e. Dugong dugong, Muller (1776). It has been identified to be reserved animal, notified in Protected and Reserved Animals Act (B.E.2535). It is identified to be endangered species, notified in ONEP (B.E. 2540). Dugong habitat is in shallow sea along coastal area. Normally, dugong comes to find food in shallow sea in night time. For day time, it commonly swims in deep sea. All species of sea grass are dugong s food. At present, dugong is slightly found and identified to be endangered species. Because there is no survey number of dugong, intentionally therefore there is no records of number of dugong and its habitat. However, project location is in deep sea, but not in sea grass area or dugong habitat. Also, dugong has not been found in project area Environmental Sensitive Area In project area, there is no environmental sensitive area. The environmental sensitive areas around project location are shown in Table 3-2. Table 3-2 Distances between Project Location and Surrounding Sensitive Area Sensitive Area Name/Place Distance (km) Coral Reef Area Tao Island in Suratthani Province 65 Seagrass Area Teeb Island in Pateaw District, Chumphon Province 95 Mangrove Thung Ka-Sawee Bay in Chumphon Province 125 Wetland Thung Ka-Sawee Bay in Chumphon Province 125 National Park Chumphon Island National Park Human Use Value Fishery Project area is located in fishery zone 3, Gulf of Thailand. According to fishery statistic report (2006) of Department of Fishery (2008) reported that Anchovies surrounding net had the highest number of fishing. Otter board trawls (size m) had the maximum number of fishing day. Otter board trawls (size m) had the maximum numbers of net recovery and net recovery hour. Surrounding net was the fishing tool that was able to catch the highest fish volume. In fishery area zone 3, there were 9 fishing tools including otter board trawls, pair trawls, beam trawls, surrounding net, Anchovies surrounding net, Spanish Mackerel gill net, Indo-Pacific Mackerel gill net, push net and bamboo stake trap. In 2008, fish volume from all fishing tools were about 295,838 tons. Details are shown in Table

33 Table 3-3 Fishery Volume in Fishery Area Zone 3 (2008) Marine Animal Volume (Tons) Percent Pelagic fish 151, Trash fish 79, Demersal fish 23, Brushtooth Lizardfish 17, Cephalopods 19, Shrimps 3, Crabs 1, Shells Source: Department of Fishery (2010) Many areas in Gulf of Thailand i.e. Prachuapkhirikhan, Chumphon, Suratthani provinces or fishery area zone 3 etc are spawning areas of some fish larvae and larvae nursery areas. Therefore, some fishing tools have been prohibited to use in breeding and spawning seasons and larvae periods (15 February to 15 May in every yaer) in Prachuapkhirikhan, Chumphon, Suratthani provinces as notified by Ministry of Agriculture and Cooperatives (Department of Fishery, 2009). However, project location is not near the closing area of Gulf of Thailand (Figure 3-4). According to natural resource and environmental situation report, volume 6 of Department of Fishery (2006) reported about important economic fishery areas by considering from each fish life cycles. From the report, well location of project is in many fish life cycle areas including Indian Meckerel (R. kanagurta), Tuna (Thumas tonggol), Euthynnus affnis and Auxis thazard, Bigeye Scad (Selar crumenophthalmus), Sardine (Sardinella spp.), One Finlet Scad (Atule mate), Yellow Tail Round Scad (Decapterus spp.), Indo-Pacific Mackerel (Rastrelliger neglectus) and Anchovies (Stolephorus indicus). Project area is located in fishery areas, except Tuna and Anchovies

34 - 30 -

35 Figure 3-4 Closing Area in Gulf of Thailand and Project Location

36 3.3.2 Navigation Route No navigation route has been specified offshore, gulf of Thailand. The commercial vessel could navigate in any direction. The specific navigation route is indicated only in busy water traffic area e.g. large commercial port, etc. In general, seaway is located near the coast which in the area of estuary. The project area is located at a depth of m. Therefore, there are no seaway and busy traffic in the project area. However, the recommended navigation route of any vessel in Thai gulf is referred from Nautical Chart No. 045 prepared by Hydrographic Department, Royal Thai Navy. This chart showed sea depth, stream direction, stone pile location and any structure which may cause adverse effect to navigated vessels. According to data of water traffic accidents of Thailand collected by Water Transport Division, Marine Department, Thailand Transport Portal during , the maximum number of accidents were reported in 2004, 37 accidents. The annual average of accidents was 18 which were mostly caused by 48% of sinking and turning over, 22% of crashing, and 10.2% of firing and exploding. The areas where accidents mostly occurred were in Bangkok and boundary areas (70.3%), followed by Eastern gulf of Thailand (10.0%), Southern gulf of Thailand (8.8%), and Southern Andaman Sea (5.4%), respectively. If consider number of accidents according to the area type, they were occurred mostly in the water area (66.3%) and coast area (29.1%) Natural Gas Pipeline, Underwater cable, underwater installation nearby the project There were underwater public utilities available in the Thai Gulf area, including underwater fiber optic cable used for telecommunication line owned by Jasmine Submarine Telecommunications Company Limited which was TOT s concession, and underwater cable for communication owned by CAT Telecom Public Company Limited as well as natural gas pipeline owned by PTT Public Company Limited. According to verification the position of underwater installation compared with the production well. It was found that the well is in 50 m south of BLWPA well which is currently used, and 800 m in northeast of petroleum vessel production and storage Tourism Koh Tao Island in Suratthani province is nearest tourism place with the project approximately 65 km. Moreover, there are other tourism places far from the project area including Semed Island, Koh Talu Island, Chumphon Island national park etc Underwater Archeology Group of underwater archeologists, Fine Arts Department have examined the area of Bualuang production area which had never been surveyed before. Underwater archaeological place nearby Bualuang production area are (1) Tao archeological place, the nearest archeological place to the project area, approximately 55 km from the project area (2) Don Hai archeological place, approximately 103 km from the project area (3) Klang Aow archeological place, approximately 113 km from the project area. However, it is possible that there are other undiscovered archeological places such as underwater junk, not larger than 200 m, at depth 1-2 m. In this case, concessionaire could be detected by Side Scan Sonar device and will further inform group of underwater archeologist to conduct the survey

37 3.4 Quality of Life Value Socio-Economic Chumphon Province In 2010, there were approximately 489,704 populations in Chumphon province, including 243,516 male and 246,188 female. Number of household was 193,366. Population density ratio was 82 person/km 2 (Chumphon Administration Office, November 2010). Most of people were Buddhist, Muslim and Christian, respectively. There were about 4,409 teachers and 88,465 students (Educational Office Zone 1 and 2, Chumphon Province, 2010). National Economic and Social Development Board (2010) reported that major occupation of Chumphon province was agriculure. In 2009, value of gross provincial product (GPP) of Chumphon was 52,957 million baht, which was ranked the sixth GPP of southern region. Per capita GPP value was 104,809 baht. Important occupation that made highest income was agriculture, approximately 22,714 million baht. Other occupations included wholesale and retail, approximately 5,908 million baht. Most important industries of Chumphon province were agro-industries i.e. canned vegetable and fruit industries, palm oil refinery industry, freeze marine food industry and dry trash fish industry etc. In early 2009, there were 529 factories in Chumphon province with a capital of 13,286 million baht. There were about 10,708 employees. Average household income and expense were 25,179 and 16,452 baht/month. Income value was higher than expense about 65.3 percent Chonburi Province In 2011, there were approximately 1,316,293 populations in Chonburi province, including 646,266 male and 670,027 female. Population density ratio was persons /km 2. In 2009, value of gross domestic product was 460,733 million baht. Annual per capita income was 385,366 baht, which was ranked the fifth of Thailand (Office of Chonburi Province, 2011). Chonburi province is a location of Eastern Seaboard Development Project. There are many important factories and economic cultivation i.e. sugar cane and rubber Public Health In the article presents information of public health center and health of local people of Sattahip district, Chonburi province. Onshore base of project is located in the district. Therefore, project activities i.e. material and solid waste transportation in Chuksamed Seaport may cause the impact to surrounding communities. Study area was 5 km radius around shore base location, covering Sattahip and Sameasan sub-districts

38 Public Health Service According to government public health center information of Sattahip district resulted that there were 3 hospitals i.e. Somdejpranangchao Sirikit hospital, Arpakornkiatwong hospital and Sattahip km 10 hospitals. The nearest hospital from onshore base of project is Arpakornkiatwong hospital, which has 120 beds. The hospital is far from onshore base about 20 hours (9 km), by using highway no For offshore emergency case, company has signed contract with International SOS Service (Thailand) Limited (ISOS) to move patient for 24 hours by calling to Emergency Call Center of the company. Therefore, the project implementation will not impact to public health service Health Status According to patient data, classified by 21 causes of diseases, in Sattahip and Samaesan sub-districts found that top three causes of disease between including respiratory disease, blood circulation disease and endocrine disease. Top five disease surveillance to epidemiology included diarrhea, flu disease hemorrhagic conjunctivitis and pneumonia. According to death rate data by top ten chronic diseases during found that cause of death of people in Samaesan sub-district included heart disease, high blood pressure and diabetes. For Sattahip sub-district included cancer, heart disease and tuberculosis

39 4. PUBLIC PARTICIPATION According to Public Involvement Guideline for EIA Study of ONEP (2006), public involvement process must bu implemented at least 2 times. Therefore, Limited and ISET (Thailand) Ltd had continually implemented the appropriate public involvement of the project to get people opinion and suggestion all project through. 4.1 Implementing Area for Public Involvement Process According to details of project activity found that BLWPB was located in Bualuang production area in Gulf of Thailand, far from BLWPA approximately 50 m. Surrounding area of the well was fishery area. Therefore, project activities might impact to the fishery area and navigation of fishery boat or other vessels i.e. fishery boats of Chomporn province etc. Moreover, other activities i.e. material transportation, chemical substance and solid waste transportation might cause the temporary impact to local people, who lived or worked near onshore base of. The onshore base is located in Sattahip Commercial Seaport (Chuksamed Seaport), Royal Thai Navy, Sattahip sub-district, Sattahip district, Chonburi province. 4.2 People Concerning Issue, Opinion and Suggestion from Public Involvement Process Public involvement results include focus group, implementing area, methodology, presenting information, media, implementing period and number of participant are shown in Table 4-1. People opinion, concerning issue, suggestion and explanation are shown in Table

40 Table 4-1 Summary of Questions and Explanations from the First Public Involvement of Project Issue Question Explanation Cutting Management Petroleum Transportation In case of oil spill Marine Ecosystem Loss of Fishery Area Tourism Land Subsidence How does project dispose cuttings form wellhead platform drilling to prevent impact to seawater quality, seabed sediment and marine ecosystem? Will the pumped petroleum be transported by oil loading truck to other places? What is the measure for oil spill? Who is responsible person? How does project activity impact to coral reef and marine animal? How does project prepare mitigation measure for the impact? How much area of wellhead platform and FPSO? How much area of safety distance which does not allow fishery boat come in? Project activity may impact to marine environment and tourism, especially Tao island which has main income from tourism. How does the impact to the area after pumping petroleum i.e. land subsidence etc. Seawater will be used as drilling fluid at top well drilling. The cuttings from top well drilling will be released to the sea. For intermediate and bottom well drillings, drilling mud will be used as drilling fluid. The cuttings from the sections will be managed on the rig. Cuttings and mud will be separated by shale shaker. After that, cuttings will be collected in big bag to be disposed at onshore by contractor, which is registered by Department of Industry. For drilling mud, it will be reused in drilling process. Therefore, there is no drilling mud contamination to the sea. Crude oil will not be transported by oil loading truck. The crude oil will be collected in oil FPSO to wait for PTT buying order from the vessel. After that, the crude oil will be directly transported to oil refinery plant by not passing Chuksamed Seaport. In case of oil spill to the sea, company will be responsible agencies and compensate for the event. For oil spill response measure of company, the measure will be implemented following National Oil Spill Response and Water Pollution Management Plan. The measure determines oil spill response procedure by oil spill volume. In addition, project will provide offshore oil spill response equipment on the petroleum production and FPSO including boom, oil spill dispersant etc. Moreover, company has make contract with oil spill response company in Singapore. In case of oil spill in the sea, the company will use air plane to spray chemical substance, which has already been permitted by Pollution Control Department, at the oil spill area. Sea depth of project location is about m. Therefore, there is no coral reef in the area. However, the EIA study of the project is being implemented. Therefore, the mitigation measures for the impact will be presented in the second public involvement. Areas of wellhead platform and FPSO are elliptical shape, approximately 2 km long and 1 km wide. New wellhead platform will be installed far from the former platform about 50 m. Therefore, safety distance from the platform will be slightly increased that is about 500 m from wellhead platform and FPSO. Tao island is far from project area approximately 65 km. Impact to tourism may cause by water quality or marine ecosystem changes. However, EIA study of the project is being implementing. Therefore, the mitigation measures for the impact will be presented in the second public involvement. After pumping petroleum from rock formation, the rock formation is still strong. The water will be pumped in to the rock formation to push petroleum from the formation. For example, petroleum production at Sirikit field in Lan Kra Bue district, Kamphaengphet province has been conducted more than 30 years. There is no land subsidence in the area. Benefit to Local People What is the benefit of the project to local people? In addition to the royalty that DMF collects from oil trade of company to Ministry of Finance to be used as national budget. Company will provide supporting fund for other local activities including educational fund, sea rescue equipment etc. However, company is pleased to support other public activities of local communities

41 Table 4-1 (Cont d) Issue Question Explanation Occupational Health and Safety Project activities of onshore base How does project provide occupational health and safety for workers? Is there vehicle maintenance at Sattahip Seaport or not? Because, the pollution may cause by maintenance or repair activities? For occupational health and safety measure, consultant company will get all concerning issues to provide the mitigation measure. Firstly, company has provided mitigation measures for material and hazardous waste transportations. The details of all mitigation measures will be presented in second public involvement. There are no equipment maintenance or repair activities at Chuksamed Seaport. There are only equipment transportation to offshore area and offshore solid waste transportation to dispose on the land. Maintenance will be performed if equipment damage when transported to seaport and use short time to repair. However, company will consider to any impacts

42 Table 4-2 Summary of Questions and Explanations from the Second Public Involvement of Project Issue Question Explanation Solid waste Management How does project manage solid waste? Solid waste of project will be disposed following proper solid waste management system. The solid waste volume will be checked both source of waste and onshore seaport. The waste volume must be equal both offshore and onshore. After that, waste disposal company which has been certified by Ministry of Industry, will collect the waste to separate and record both volume and weight. Hazardous waste will be disposed at cement plant. Cement plant will check waste volume and weight again prior to disposal of waste. In addition, cement plant must submit waste disposal document to Salamander and Department of Industry. Cuttings Management How does cuttings release from drilling process impact to coral reef and tourism place? Releasing of cutting from drilling can cause increase of turbidity in wellhead. The highest distribution of cutting would be mot exceed 1 km radius from the wellhead. Therefore, turbidity and cutting distribution would not cause any impact to the tourist attraction and coral community of Koh Tao which were close to the project area. However, the distance from these places to project area was quite far, approximately 65 km. Wastewater Management How does project manage wastewater? Before discharge wastewater to the sea, it needs to be treated to meet the required standard. The wastewater will be mostly produced from workers from support vessels, production vessels, and storage vessels of the project. Some of wastewater produced in the production line will be re-injected to the well. Unexpected Event Gas from Production Process Land Subsidence Fishery Is it possible that all procedure can cause mistake or the accidents? In case of accident, How does Salamander company inform to fisherman and local people? How does gas from production process impact to environment? Does petroleum production area cause well? Is it possible to cause any subsidence? Since the gulf is closed during 15 February-15 May every year. Fishermen need to go further for fishing and may enter concession area. How support vessel will contact fishing vessel? Mistake or accident can cause from working process any time. However, company has strictly measures and way to prevent these mistakes and accidents as well as modern device and efficient training program which will help to manage any adverse occurrences. Company has measures and scheme to manage mistakes and accidents in any level. In case of severe accident occurs, it will be managed since the project area offshore. The severity level of accidents will be considered. Severe case which may cause an impact to community or fisherman, company will immediately inform. However, so far, no any severe case had occurred. Only minor incidences occurred i.e. slip out, etc. According to the past of petroleum production in Bua Luang production area, it was found that produced gas was very small. The project will burn at flame flares located at production or storage vessel. However, project area which is close to the project area, the distance and climate condition will help to facilitate the dilution of produced gas. Petroleum in Thai gulf is not in the form of well, but it is located in rock formation as well as small area in Thai gulf where their structural will not cause the subsidence. After petroleum is pumped from the well, water will be re-injected to the well which will help to prevent hole formation. Sirikit Onshore-Field at Lankrabue district which has been operated more than 30 years never have any report on subsidence. The installation of production well will be conducted in August, after closed gulf duration, this should be reduced the problem of contact between support vessel and fishing vessel. However, during the project operate, the support vessel will be around and give the notice to fishing vessel to not enter the safe zone, 500 m radius of project area. If fishing vessel enters production well, production and storage vessels, the company s radar will detect and give the notice to the fishing vessel. Company would ask the response from fishing vessel. If there is no response, the support vessel will approach these fishing vessels to provide the safety of fishermen and all fishing devices

43 Table 4-2 (Cont d) Issue Question Explanation Socio-Economic Can Salamander company employ local people to work with the company? For employment, company will provide job hunting company to recruit the worker. The recruitment process will be done from the specifications and skills which will be needed for any particular job. The petroleum work is required people with specific skills. The recruitment process will be conducted via the job hunting company only. Environmental Measure Monitoring A petroleum production rig has already been installed in Bualuang field. How are the monitoring results of environmental quality? Environmental quality monitoring of Block B8/38 had been implemented including seawater quality, seabed sediment. Parameters included physical and chemical properties, heavy metals. The monitoring results showed that all parameters met standard of Pollution Control Department. The data were collected from environmental monitoring activities before project commencement ( ). The petroleum production in Bualuang field would be performed in Will project monitor fish at production rig? Project will monitor plankton which is a food of fish. If plankton volume will not change, fish volume will not change. Why doesn t the project monitor seawater quality, plankton and aquatic animal in every year? Environmental quality monitoring each time requires high cost and has a limit for operation of vessel in close distance from production well. However, project will periodically monitor environmental quality during well production drilling, after production well drilling and after petroleum well drilling. This process will help to monitor the impact and environmental quality change from project implementation

44 5. ENVIRONMENTAL, SOCIAL, AND HEALTH IMPACT ASSESSMENT Project activities or unexpected events mat cause impact to environment, social and health. Therefore, project had provided environmental/social and health impact assessments. The environmental impact assessment had been studied following EIA Guideline of ONEP (1998), EIA Study Manual of Thailand (2010) and Offshore Petroleum Production EIA Manual of ONEP and Petroleum Institute of Thailand (2010). Social impact assessment had been studied in accordance with People Involvement and Social Impact Assessment Guideline of ONEP (2006). Health Impact Assessment had been studied following HIA Guideline (Third Publication) of ONEP (2010). Potential impact assessment of project had been identified by impact screening and scoping stages, including environmental issue, social issue and health issue. For unexpected event, mitigation measures had been prepared to minimize the impact (As Low As Reasonably Practicable (ALARP)), implement good practice following related laws. 5.1 Summary of Environmental Impact Significance The significant of impact can be summarized in Table 5-1 to Table 5-4. The impacts are assessed by taking into consideration of project activities in terms of environment, social, health, and unexpected event. The level of significant is used for addressing mitigation and monitoring measures of the project. Table 5-1 Summary of Environmental Impact Significance Environmental Issue Preparation and Installation Phases Seawater Quality Marine Animals and Ecosystem Production Well Drilling Phase Seawater Quality Potential Environmental Impact Wastewater discharge and contamination may cause seawater quality deterioration. Unsuitable solid waste management may cause seawater quality deterioration. Severity of Impact Significance of Impact Low Low Low Low Low Low Impact from seawater quality change Low Low Low Wastewater discharge and contamination may cause seawater quality deterioration. Low Low Low Drilling mud and cutting release Low Low Low Unsuitable solid waste management may cause seawater quality deterioration. Low Low Low Seabed Sediment Drilling mud and cutting release Moderate Low Low Seabed Sediment Quality Marine Animals and Ecosystem Petroleum Production Phase Seawater Quality Marine Animals and Ecosystem Drilling mud and cutting release Low Low Low Impact from seawater quality change Low Low Low Drilling mud and cutting release Low Low Low Wastewater discharge and contamination may cause seawater quality deterioration. Unsuitable solid waste management may cause seawater quality deterioration. Low Low Low Low Low Low Impact from seawater quality change Low Low Low Significant Level

45 Table 5-2 Summary of Social Impact Significance Environmental Issue Potential Environmental Impact Severity of Impact Significance of Impact Significant Level Exploration Drilling Preparation Phase Fishery Loss of fishery area Low Low Low Navigation Navigation route Obstruction Low Low Low Exploration Drilling and Well Testing Phases Fishery Loss of fishery area Low Low Low Navigation Navigation route Obstruction Low Low Low Well Abandonment and Rig Demobilization Fishery Loss of fishery area Low Low Low Navigation Navigation route Obstruction Low Low Low Table 5-3 Summary of Health Impact Significance Project Activity Health Impact Severity of Impact Likelihood Significant Level Implementation of each phase Occupational health of workers Insignificance-Moderate Very low Low Working accident Moderate Very low Low Table 5-4 Summary of Significant Impacts from Unexpected Events Project Activity Health Impact Severity of Impact Likelihood Significant Level Collision Material Falling Damages to the boat and injury/ death of fishermen, workers, or passenger Material falling to the sea, drilling rig, and support vessels Low Rarely Low Moderate-Low Rarely Low Oil and Chemical Leakages Fuel spill (diesel oil) Low Rarely Low Drilling mud spill Low Rarely Low Blowout Drilling chemical substance leakage Petroleum leak to the sea and outside environment Low Rarely Low Moderate Rarely Low High volume of oil spill Oil leakage from vessel Moderate Rarely Moderate Typhoon Impact to safety of offshore workers and damages to properties Low Rarely Moderate Fire Injury/ death of workers Low Rarely Moderate

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47 6. ENVIRONMENTAL, SOCIAL, AND HEALTH MITIGATION AND MONITORING MEASURES 6.1 Environmental, Social, and Health Mitigation Measures The environmental, social, and health mitigation measures of the project are set to cover all project s activities by separating for each phase. The implementation and evaluation of mitigation can be performed efficiently and the measures can prevent the impacts well. The mitigation measures of each phase are: 1) General Mitigation Measures of the Project (Table 6-1) 2) Mitigation Measures for Preparation and Installation Phase (Table 6-2) 3) Mitigation Measures for Drilling Phase (Table 6-3) 4) Mitigation Measures for Production Phase (Table 6-4)

48 Table 6-1 General Mitigation Measures of the Project General Mitigation Measures 1. Details of the mitigation and monitoring measures will be elaborately stipulated in the contracts for design, construction, and operation of the project for effective and efficient compliance with the measures. 2. Compliance of mitigation and monitoring measures report will be submitted to the Office of Natural Resources and Environmental Policy and Planning (ONEP) and Department of Mineral Fuels (DMF) according to the specified duration. 3. Public relation to inform the project detail, schedule of preparation phase, exploration drilling and wireline logging phase, well testing phase, and abandonment phase, duration, impacts, and mitigation and monitoring measures will be set prior to operate the project at least one month. 4. The project will establish a contact point to receive any complaints from public rating to the project activities. The concessionaire must morally and fairly resolve the problems and provide help to affected people as the flowchart of response to complaints in figure 1 5. If substantial complaint has been raised by people who live in the vicinity of the project area or if loss or damage to public properties has been reported, and DMF and ONEP has proved that the concessionaire has not followed the specified control and mitigation measures, the project activities must cease till the problems or damage are resolved. 6. If DMF has indicated that the there has been the impacts caused by the project s activities, the concessionaire will suspend and resolve the problem as soon as possible. 7. If any archaeological relic or remain is found during the operation, the concessionaire must stop any activities forthwith and inform DMF and/or ONEP for coorperating with Underwater Archaeological Site Academic Group of the Fine Arts Department to investigate the area. If it is proven that the archaeological site is historical significance, the concessionaire will abide by the conditions set by relevant agencies. In addition, if the fossil has been found, the concessionair will inform the local government official witin seven day since the day that it was found (Fossil Protection Act B.E. 2551). 8. In case of the concessionaire would like to change the project description or environmental mitigation measures and environmental impact monitoring measures in the approved EIA report, the concessionaire must declare all changes to DMF. If DMF has considered that there is not effect to main point of EIA consideration and there is more positive impact or as same as the measures in approved EIA, DMF can accept according to the regulation and condition of law together with sending the copy of accepted changing to ONEP. However, if DMF has considered that it may affect the main point in approved EIA, DMF has to send a report of changing to ONEP for consideration and approval by the Technical Reviewing Committee (TRC) before project s implementation. When such change has been allowed to operate, DMF has to inform the result of change to ONEP

49 Table 6-2 Mitigation Measures for Preparation and Installation Phase Environmental Element Potential Impacts Mitigation Measures Implementation Area Responsibility 1. Environmental Mitigation Measures 1.1 Air quality Greenhouse gas emission from power generators and engines on vessels increase the pollutants in the air. 1) Routine inspection and preventive maintenance as per maintenance schedule to carry on the combustion efficiency. 2) Set up appropriate operation schedule. Spend operation time to minimum and finish punctually. All project vessels 1.2 Noise The periodic noise from any activities on vessels may affect hearing of staff and contractors. 1) Routine inspection and preventive maintenance as per maintenance schedule to prevent high noise from inefficiency machines/engines. 2) Set up appropriate operation schedule. Spend operation time to minimum and finish punctually. 3) Provide personal protective equipment to staffs working in high noise area. All project vessels 1.3 Light Light and signal at night may affect some species of marine life. 1) Design a lighting system to limit the spread of light. 2) Do not use excessive lighting and provide adequate lighting in work area only. All project vessels

50 Table 6-2 (Cont d) Environmental Element Potential Impacts Mitigation Measures Implementation Area Responsibility 1.4 Seawater and seabed sediment qualities Sewage and wastewater from vessels including domestic wastewater, ballast water, and drainage from deck floor may cause the deterioration of seawater. 1) Large operating vessels (greater than 400 ton gross) will comply with MARPOL 73/78 requirements. Domestic wastewater and sewage generated on the vessels will be treated onboard prior to discharge to sea during travelling more than 12 nautical miles from the straight baselines. 2) Oil contaminated water will be de-oiled by oil/water separator prior to discharge overboard. Discharge water will be less than 15 ppm oil content. Discharged water will be less than 15 ppm oil content. The separated oil will be disposed onshore by a DIW-licensed contractor. 3) Separated oil from oil/water separator on vessels (greater than 400 ton gross) will be stored in appropriate containers for disposal onshore as same as hazardous waste management. 4) All contractors have to perform their tasks and be inspected according to Salamander s environmental, occupational health, and safety management. 5) All vessels have to comply with all regulations of Thailand and International Maritime Organization (IMO) or standards regarding vessels seaworthiness and maritime vessels. All project vessels Inappropriate waste management may cause the potential result to seawater contamination. 1) Food waste will be grounded to size of less than 25 mm. (according to MARPOL 73/78) before being discharged overboard at the distance more than 12 nautical miles from the straight baselines. All project vessels

51 Table 6-2 (Cont d) Environmental Element 1.4 Seawater and seabed sediment qualities (cont.) Potential Impacts Inappropriate waste management may cause the potential result to seawater contamination. (cont.) Mitigation Measures 2) Comply with waste management procedure for segregation, collection, and transportation. Waste will be transported by vessels to onshore facility at Sattahip Port, Chonburi and further disposal by DIW-licensed contractors. 3) All wastes disposal onshore will be recorded storage location, bulking, and weights. The waste manifest forms (i.e. waste inventory, waste manifest) are required for tracking the movement of waste from generators site to the site of its disposition to ensure the accuracy of waste management. Implementation Area All project vessels Responsibility 4) Investigate contractor s operations for waste disposal and transport to ensure that all contractors works will be in line with the same standard. 5) Regularly record, check, and update type and quantity of waste. 6) Store hazardous waste in a safe and durable container, suitable for transfer, and be placed in a location far from ignition sources until disposal. 7) Regularly inspect the waste storage area, containment, and containers

52 Table 6-2 (Cont d) Environmental Element Potential Impacts Mitigation Measures Implementation Area Responsibility 1.4 Seawater and seabed sediment qualities (cont.) Inappropriate waste management may cause the potential result to seawater contamination. (cont.) 8) Hazardous waste transportation will be undertaken by DIWlicensed transport trucks. 9) Prepare manifest for transport of hazardous waste to disposal/treatment site in compliance with the Notification of Ministry of Industry on Manifest System for Hazardous Wastes, B.E All project vessels Wellhead platform installation may cause sediment dispersion or change of seabed sediment feature. 1) Seafloor survey using side scan sonar to identify seabed feature potentially affected by the installed facilities. 2) Design the structure to be installed on the sea floor to a minimum to limit the noise floor of the sea. 3) Anchor stably and check it regularly. If the anchor moves from the left, let to new anchor. 4) Strictly monitor the installation of wellhead platform to ensure that the operation is appropriate and reduce the potential impacts. All project vessels 1.5 Marine life and ecosystem Seafloor survey, sailing, and wellhead platform installation may disturb marine mammals. 1) Limit seafloor survey area to 1 km 2 around the wellhead platform locations. 2) If marine mammal is found during operation, record number and species and report to Department of Marine and Coastal Resources (DMCR). 3) Anchor stably and check regularly. If the anchor moves from the left, let to new anchor. All project vessels

53 Table 6-2 (Cont d) Environmental Element 1.5 Marine life and ecosystem (cont.) Potential Impacts Change of seawater and seabed sediment qualities may cause the impact to marine life. Mitigation Measures 1) Follow mitigation measures as mentioned in seawater and seabed sediment qualities section. Implementation Area Installation wellhead platform area Responsibility 2. Social Environmental Mitigation Measures 2.1 Fishery Loss of fishing area due to the establishment of 500 m radius exclusion zone surrounding the wellhead platform installation location to prevent any accidents. 1) Coordinate with DMF in requesting cooperation to notify Provincial Fishery Office, Fishery Association of Thailand and in Chumphon province and relevant authorities about the project location and duration time at least one month prior to operation. 2) Coordinate with DMF to request cooperation from Hydrographic Department to issue a notice to mariners. All project vessels and installation wellhead platform area 3) Use support vessels to warn off traffic to prevent accidental collision. 4) Provide appropriate lights and warning signals on project vessels to prevent accidental collision. 5) Provide Salamander s Community Awareness Plan agreed with community s requirement. Also, provide complaints handling process

54 Table 6-2 (Cont d) Environmental Element Potential Impacts Mitigation Measures Implementation Area Responsibility 2.1 Fishery (cont.) Fishing gears may be damaged. 1) Survey project areas and the surrounding before transporting and installing of wellhead platform to ensure that there are no fishing gears in project area. 2) Record position, symbol, and number of damaged or removed fish traps during the project implementation. Provide fair and appropriate compensation via Fishery Association that there and DMF and Provincial Fishery Office to be witness. All project vessels and installation wellhead platform area Fishery Association in Chumphon province 2.2 Marine Transportation Wellhead platform transportation and sailing may disturb marine traffic. 1) Coordinate with DMF to request cooperation from Hydrographic Department to issue a notice to mariners about project s schedule. And, inform the information and schedule of project to Maine Department, and relevant provincial authorities including Provincial Governor, Public Relation Office, Energy Office, Marine Transportation Office, Fishery Office, and Fishery Associations in Chumphon province at least one month prior to wellhead platform transportation. 2) Coordinate with DMF to request cooperation from Hydrographic Department to record wellhead platform location in Marine Navigation Map of Thailand. 3) Establish 500 m radius exclusion zone around the wellhead platform. 4) Use support vessels to warn off traffic to prevent accidental collision. 5) Provide appropriate lights and warning signals on project vessels to prevent accidental collision. Relevant authorities as indicated All project vessels and installation wellhead platform area

55 Table 6-2 (Cont d) Environmental Element Potential Impacts Mitigation Measures Implementation Area Responsibility 3. Health Impact Mitigation Measures 3.1 Occupational health and safety Impacts are caused by illness and accident from work. 1) Set up a working environment properly. 2) Prepare sanitary housing for workers and provide health management systems and sanitation facilities with an adequate number of workers. 3) Provide personal protective equipment for all workers. 4) Provide appropriate first aid kit in the working area. 5) Provide training to educate staffs about the precautions of operation. 6) Provide medical service by medic on FPSO. 7) If emergency or illness / serious injury occur in project area, Salamander has to contact and coordinate with the ISOS according to the plan. 8) Staff must strictly comply with occupational health, safety, and environment policy. Wellhead platform installation area 3.2 Community health and safety May affect mental health because of concerns about the chance to get damage. 1) Provide public relation plan to create an understanding with community. 2) Provide Salamander s Community Awareness Plan agreed with community s requirement. Also, provide complaints handling process. 3) Follow mitigation measures as mentioned in seawater and seabed sediment qualities section. Community surround shore base area and along transportation routes

56 Table 6-2 (Cont d) Environmental Element Potential Impacts Mitigation Measures Implementation Area Responsibility 4. Mitigation Measures for Unplanned Events 4.1 Dropped objects Direct impact on personal i.e. injuries or fatalities Damage to structure i.e. platform The dropped objects may affect the environment. 1) Lifting path restrictions to avoid lifting over or near critical/ sensitive equipment. 2) Identify packaging, size and weights are appropriate to lift loads, ability of crane, and other equipment for lifting i.e. sling and cable. 3) The workers who control the crane and signal a lifting must be trained about the activity to be performed. 4) Recovery of dropped objects wherever practicable. All project vessels 4.2 Typhoon Direct impact on personal i.e. injuries or fatalities 4.3 Collision Damage to vessels and asset. And, direct impact on personal i.e. injuries or fatalities 1) Regularly monitor a weather condition. 2) Implement Emergency Response Plan in case of typhoon occurrence. 1) Follow mitigation measures as mentioned in marine transportation section. 2) Provide emergency response plan covering collision case. 3) Provided adequate life-saving equipment. And provide plan to check and take care them to be available with good condition. All project vessels All project vessels

57 Table 6-3 Mitigation Measures for Drilling Phase Environmental Element Potential Impacts Mitigation Measures Implementation Area Responsibility 1. Environmental Mitigation Measures 1.1 Air quality Greenhouse gas emission from power generators and engines on vessels, drilling rig, and wellhead platform increase the pollutants in the air. 1) Routine inspection and preventive maintenance as per maintenance schedule to carry on combustion efficiency. 2) Set up appropriate operation schedule. Spend operation time to minimum and finish punctually. Support vessels, drilling rig, and wellhead platform 1.2 Noise The periodic noise from any activities on vessels, drilling rig, and wellhead platform may affect hearing of staff and contractors. 1) Routine inspection and preventive maintenance as per maintenance schedule to prevent high noise from inefficiency machines/engines. 2) Set up appropriate operation schedule. Spend operation time to minimum and finish punctually. 3) Provide personal protective equipment to staffs working in high noise area. Support vessels, drilling rig, and wellhead platform 1.3 Light Light and signal at night may affect some species of marine life. 1) Design a lighting system to limit the spread of light. 2) Do not use excessive lighting and provide adequate lighting in work area only. Support vessels, drilling rig, and wellhead platform

58 Table 6-3 (Cont d) Environmental Element Potential Impacts Mitigation Measures Implementation Area Responsibility 1.4 Seawater and seabed sediment qualities Sewage and wastewater from vessels, drilling rig, and wellhead platform including domestic wastewater, ballast water, and drainage from deck floor may cause the deterioration of seawater. 1) Drilling rig and large operating vessels (greater than 400 ton gross) will comply with MARPOL 73/78 requirements. Domestic wastewater and sewage generated on the vessels will be treated onboard prior to discharge to sea during travelling more than 12 nautical miles from the straight baselines. 2) Oil contaminated water will be de-oiled by oil/water separator prior to discharge overboard. Discharge water will be less than 15 ppm oil content. Discharged water will be less than 15 ppm oil content. The separated oil will be disposed onshore by a DIW-licensed contractor. 3) Separated oil from oil/water separator on vessels (greater than 400 ton gross) will be stored in appropriate containers for disposal onshore as same as hazardous waste management. 4) Bund will be installed on drilling rig to prevent oil or chemical spill into the sea. Chemical/oil spilling on drilling rig floor will be collected and stored in closed-containers for further disposal onshore. Discharge of contaminated wastewater from vessels will be treated prior to release overboard. 5) All contractors have to perform their tasks and be inspected according to Salamander s environmental, occupational health, and safety management. 6) Comply with all regulations of Thailand and International Maritime Organization (IMO) or standards regarding vessels seaworthiness and maritime vessels. Support vessels, drilling rig, and wellhead platform

59 Table 6-3 (Cont d) Environmental Element Potential Impacts Mitigation Measures Implementation Area Responsibility 1.4 Seawater and seabed sediment qualities (cont.) Inappropriate waste management may cause the potential result to seawater contamination. 1) Food waste will be grounded to size of less than 25 mm. (according to MARPOL 73/78) before being discharged overboard at the distance more than 12 nautical miles from the straight baselines. 2) Oil contaminated water will be de-oiled by oil/water separator prior to discharge overboard. 3) Comply with waste management procedure for segregation, collection, and transportation. Waste will be transported by vessels to onshore facility at Sattahip Port, Chonburi and further disposal by DIW-licensed contractors. 4) All wastes disposal onshore will be recorded storage location, bulking, and weights. The waste manifest forms (i.e. waste inventory, waste manifest) are required for tracking the movement of waste from generators site to the site of its disposition to ensure the accuracy of waste management. 5) Investigate contractor s operations for waste disposal and transport to ensure that all contractors works will be in line with the same standard. 6) Regularly record, check, and update type and quantity of waste. 7) Store hazardous waste in a safe and durable container, suitable for transfer, and be placed in a location far from ignition sources until disposal. Support vessels, drilling rig, and wellhead platform

60 Table 6-3 (Cont d) Environmental Element Potential Impacts Mitigation Measures Implementation Area Responsibility 1.4 Seawater and seabed sediment qualities (cont.) Inappropriate waste management may cause the potential result to seawater contamination. (cont.) 8) Regularly inspect the waste storage area, containment, and containers. 9) Hazardous waste transportation will be undertaken by DIWlicensed transport trucks. 10) Prepare manifest for transport of hazardous waste to disposal/treatment site in compliance with the Notification of Ministry of Industry on Manifest System for Hazardous Wastes, B.E Support vessels, drilling rig, and wellhead platform Discharge of drilling cuttings may increase suspended solid at the point of discharge. 1) Cuttings from drilling of top hole will be discharge at the seafloor. 2) Mud and cuttings from intermediate and bottom holes drillings will be passed through solids control system to separate cuttings from mud. Separated mud will be used in the next drilling. 3) Cuttings contaminated with mud will be collected in special containers with labels to further disposal. Support vessels and drilling rig Sediment may disperse from drilling rig installation and anchoring of vessels. 1) Use spud-cans for drilling rig to reduce the penetration depth to seabed. 2) Stably anchor and regularly check it. If the anchor moves from the left, let to new anchor. 3) Strictly monitor the installation of drilling rig to ensure that the opreration is appropriate and reduce the potential impacts. Support vessels and drilling rig

61 Table 6-3 (Cont d) Environmental Element 1.5 Marine life and ecosystem Potential Impacts Change of seawater and seabed sediment qualities may cause the impact to marine life. Mitigation Measures 1) Follow mitigation measures as mentioned in seawater and seabed sediment qualities section. Implementation Area Support vessels, drilling rig, and wellhead platform Responsibility Salamander Energy (Bualuang) Limited 2. Social Environmental Mitigation Measures 2.1 Fishery Loss of fishing area due to the establishment of 500 m radius exclusion zone surrounding the drilling rig/ wellhead platform installation location to prevent any accidents. 2.2 Marine transportation Concern about a reduction of the resources caused by project activity Drilling rig mobilization and operation of support vessels may disturb marine traffic. 1) Coordinate with DMF in requesting cooperation to notify Provincial Fishery Office, Fishery Association of Thailand and in Chumphon province and relevant authorities about the project location and duration time at least one month prior to operation. 2) Coordinate with DMF to request cooperation from Hydrographic Department to issue a notice to mariners. 3) Use support vessels to warn off traffic to prevent accidental collision. 4) Provide appropriate lights and warning signals on project vessels to prevent accidental collision. 1) Provide Salamander s Community Awareness Plan agreed with community s requirement. Also, provide complaints handling process. 2) Follow mitigation measures as mentioned in seawater and seabed sediment qualities section. 1) Coordinate with DMF to request cooperation from Hydrographic Department to issue a notice to mariners about project s schedule. And, inform the information and schedule of project to Maine Department, and relevant provincial authorities including Provincial Governor, Public Relation Office, Energy Office, Marine Transportation Office, Fishery Office, and Fishery Associations in Chumphon province at least one month prior to drilling phase. 2) Establish 500 m radius exclusion zone around the drilling rig. 3) Use support vessels to warn off traffic to prevent accidental collision. 4) Provide appropriate lights and warning signals on project vessels to prevent accidental collision. Relevant authorities as indicated Support vessels, drilling rig, and wellhead platform Stakeholder in Chumphon province Drillinr rig/ wellhead platform and support vessels Salamander Energy (Bualuang) Limited Salamander Energy (Bualuang) Limited

62 Table 6-3 (Cont d) Environmental Element Potential Impacts Mitigation Measures Implementation Area Responsibility 3. Health Impact Mitigation Measures 3.1 Occupational health and safety Impacts are caused by illness and accident from work. 1) Set up a working environment properly. 2) Prepare sanitary housing for workers and provide health management systems and sanitation facilities with an adequate number of workers. 3) Provide personal protective equipment for all workers. 4) Provide appropriate first aid kit in the working area. 5) Provide training to educate staffs about the precautions of operation. 6) Provide medical service by medic on FPSO. 7) If emergency or illness / serious injury occur in project area, Salamander has to contact and coordinate with the ISOS according to the plan. 8) Set up a suitable recreation area for workers. 9) Staff must strictly comply with occupational health, safety, and environment policy. Support vessels, drilling rig, and wellhead platform 3.2 Community health and safety May affect mental health because of concerns about the chance to get damage. 1) Provide public relation plan to create an understanding with community. 2) Provide Salamander s Community Awareness Plan agreed with community s requirement. Also, provide complaints handling process. 3) Follow mitigation measures as mentioned in seawater and seabed sediment qualities section. Community surround shore base area and along transportation routes

63 Table 6-3 (Cont d) Environmental Element Potential Impacts 4. Mitigation Measures for Unplanned Events 4.1 Dropped objects Direct impact on personal i.e. injuries or fatalities Damage to structure i.e. rig floor The dropped objects may affect the environment. 4.2 Typhoon Direct impact on personal i.e. injuries or fatalities 4.3 Collision Damage to vessels and asset. And, Direct impact on personal i.e. injuries or fatalities 4.4 Blowout Blowouts during drilling can cause an uncontrolled release of hydrocarbons from well to marine environment which is affected. 4.5 Spills Impact on environment caused by the spill of mud, fuels, lubricating oil, and chemicals depend on amount of oil and chemical spill and level of toxicology of substances. Mitigation Measures 1) Lifting path restrictions to avoid lifting over or near critical/ sensitive equipment. 2) Identify packaging, size and weights are appropriate to lift loads, ability of crane, and other equipment for lifting i.e. sling and cable. 3) The workers who control the crane and signal a lifting must be trained about the activity to be performed. 4) Recovery of dropped objects wherever practicable. 1) Regularly monitor a weather condition. 2) Implement Emergency Response Plan in case of typhoon occurrence. 1) Follow mitigation measures as mentioned in marine transportation section. 2) Provide emergency response plan covering collision case. 3) Provided adequate life-saving equipment. And provide plan to check and take care them to be available with good condition. 1) Install blowout preventer and test its working before drilling. 2) Monitor down-hole pressure) and mud returns at all times. 3) Implement oil spill response plan and conduct training to handle and oil spill situation. 4) Employ experienced contractor and maintain the equipment in good condition. Contractor s workers shall be trained for blowout monitoring and prevention and have oil spill reponse plan. 1) Storage of fuels, lubricating oil, and chemicals will be provided with drip pans. 2) Storage of chemicals on support vessels and driiling rig should be the appropriate quantity used for drilling to minimize onsite storage area. 3) Chemicals storage will also take into account the compatibility of chemicals and follow standard spill prevention measures. 4) Provide the equipment for cleaning up and sweeping oil slick. 5) Drill following the oil spill response plan. Implementation Area Support vessels, drilling rig, and wellhead platform Support vessels, drilling rig, and wellhead platform Support vessels, drilling rig, and wellhead platform Drilling rig Support vessels, drilling rig, and wellhead platform Responsibility

64 Table 6-4 Mitigation Measures for Production Phase Environmental Element Potential Impacts Mitigation Measures Implementation Area Responsibility 1. Environmental Mitigation Measures 1.1 Air quality Greenhouse gas emission from power generators and engines on vessels, FPSO, and wellhead platform increase the pollutants in the air. 1.2 Noise The periodic noise from any activities on vessels, FPSO, and wellhead platform may affect hearing of staff and contractors. 1.3 Light Light and signal at night may affect some species of marine life. 1) Routine inspection and preventive maintenance as per maintenance schedule to carry on combustion efficiency. 2) Set up appropriate operation schedule. Spend operation time to minimum and finish punctually. 3) Support forestation of mangrove in Chumphon province annually to offset CO 2 emissions into the atmosphere. This activity will be consulted with Marine and Coastal Research Center, the Central Gulf of Thailand in the middle of doing things. 1) Routine inspection and preventive maintenance as per maintenance schedule to prevent high noise from inefficiency machines/engines. 2) Set up appropriate operation schedule. Spend operation time to minimum and finish punctually. 3) Provide personal protective equipment to staffs working in high noise area. 1) Design a lighting system to limit the spread of light. 2) Do not use excessive lighting and provide adequate lighting in work area only. Wellhead platform, FPSO, and all project vessels Wellhead platform, FPSO, and all project vessels Wellhead platform, FPSO, and all project vessels

65 Environmental Element 1.4 Seawater and seabed sediment qualities Table 6-4 (Cont d) Environmental Element 1.4 Seawater and seabed sediment qualities (cont.) Potential Impacts Sewage and wastewater from vessels, FPSO, and wellhead platform including domestic wastewater, ballast water, and drainage from deck floor may cause the deterioration of seawater. Potential Impacts Sewage and wastewater from vessels, FPSO, and wellhead platform including domestic wastewater, ballast water, and drainage from deck floor may cause the deterioration of seawater. (cont.) Inappropriate waste management may cause the potential result to seawater contamination. Mitigation Measures 1) Large operating vessels (greater than 400 ton gross) will comply with MARPOL 73/78 requirements. Domestic wastewater and sewage generated on the vessels will be treated onboard prior to discharge to sea during travelling more than 12 nautical miles from the straight baselines. 2) Ballast water from FPSO discharged overboard must be clean or less than 15 ppm oil content. 3) Oil contaminated water will be de-oiled by oil/water separator prior to discharge overboard. Discharge water will be less than 15 ppm oil content. Discharged water will be less than 15 ppm oil content. 4) Separated oil from oil/water separator on vessels (greater than 400 ton gross) will be stored in appropriate containers for disposal onshore as same as hazardous waste management. Mitigation Measures 5) Collect drainage water contaminated with oil to closed drainage system without discharge overboard. 6) All contractors have to perform their tasks and be inspected according to Salamander s environmental, occupational health, and safety management. 7) Comply with all regulations of Thailand and International Maritime Organization (IMO) or standards regarding vessels seaworthiness and maritime vessels. 1) Food waste will be grounded to size of less than 25 mm. (according to MARPOL 73/78) before being discharged overboard at the distance more than 12 nautical miles from the straight baselines. 2) Oil contaminated water will be de-oiled by oil/water separator prior to discharge overboard. 3) Comply with waste management procedure for segregation, collection, and transportation. Waste will be transported by vessels to onshore facility at Sattahip Port, Chonburi and further disposal by DIW-licensed contractors. 4) All wastes disposal onshore will be recorded storage location, bulking, and weights. The waste manifest forms (i.e. waste inventory, waste Implementation Area Wellhead platform, FPSO, and all project vessels Implementation Area Wellhead platform, FPSO, and all project vessels Wellhead platform, FPSO, and all project vessels Responsibility Responsibility

66 Environmental Element Table 6-4 (Cont d) Potential Impacts Mitigation Measures manifest) are required for tracking the movement of waste from generators site to the site of its disposition to ensure the accuracy of waste management. 5) Investigate contractor s operations for waste disposal and transport to ensure that all contractors works will be in line with the same standard. 6) Regularly record, check, and update type and quantity of waste. 7) Store hazardous waste in a safe and durable container, suitable for transfer, and be placed in a location far from ignition sources until disposal. 8) Regularly inspect the waste storage area, containment, and containers. 9) Hazardous waste transportation will be undertaken by DIW-licensed transport trucks. 10) Prepare manifest for transport of hazardous waste to disposal/treatment site in compliance with the Notification of Ministry of Industry on Manifest System for Hazardous Wastes, B.E Implementation Area Responsibility Environmental Element Potential Impacts Mitigation Measures Implementation Area Responsibility 1.4 Seawater and seabed sediment qualities (cont.) Low impact caused by produced water. It has to be injected into injection wells without discharge overboard. 1) Provide inspection and preventive maintenance plan of injection process and comply it strictly. 2) Produced water will be injected into injection wells. 3) If the injection process cannot operate, produced water is collected in its containers until injection process can operate. 4) If produced water cannot be injected and collected to reach a limit, the production process has to be stopped until fixing it already. Then, the produced water has to be injected normally. FPSO and wellhead platform 1.5 Marine life and ecosystem Change of seawater and seabed sediment qualities may cause the impact to marine life. 1) Follow mitigation measures as mentioned in seawater and seabed sediment qualities section. Wellhead platform, FPSO, and all project vessels 2. Social Environmental Mitigation Measures

67 Environmental Element Potential Impacts Mitigation Measures Implementation Area Responsibility 2.1 Fishery Loss of fishing area due to the establishment of 500 m radius exclusion zone surrounding the FPSO and wellhead platform installation location to prevent any accidents. 1) Use support vessels to warn off traffic to prevent accidental collision. 2) Coordinate with DMF to request cooperation from Hydrographic Department to record wellhead platform location in Marine Navigation Map of Thailand. 3) Provide appropriate lights and warning signals on project vessels to prevent accidental collision. 4) Provide Salamander s Community Awareness Plan agreed with community s requirement. Also, provide complaints handling process. 5) Provide the central offices to coordinate and receive the complaints related to project at shore base and Chumphon province. And, coordinate with relevant authorities i.e. Provincial Office to be the channels for receiving complaints. Local authority officers will contact a community relation officer or environmental officer of Salamander to inform the complaints. Wellhead platform, FPSO, and all project vessels Table 6-4 (Cont d) Environmental Element Potential Impacts Mitigation Measures Implementation Area Responsibility 2.1 Fishery (cont.) Concern about a reduction of the resources caused by project activity. 1) Follow mitigation measures as mentioned in seawater and seabed sediment qualities section. 2) Provide Salamander s Community Awareness Plan agreed with community s requirement. Also, provide complaints handling process. Stakeholder in Chumphon province and Koh Tao 3) Provide the central offices to coordinate and receive the complaints related to project at shore base and Chumphon province. And, coordinate with relevant authotities i.e. Provincial Office to be the channels for receiving complaints. Local authority officers will contact a community relation officer or environmental officer of Salamander to inform the complaints. 4) Deliver the annual compliance with mitigation and monitoring

68 Environmental Element Potential Impacts Mitigation Measures reports to relevant provincial environmental authorities of Chumphon province and Koh Tao TAO. Implementation Area Responsibility 2.2 Marine transportation Wellhead platform, FPSO, and operation of support vessels may disturb marine traffic. 1) Coordinate with DMF to request cooperation from Hydrographic Department to issue a notice to mariners about project s schedule. And, inform the information and schedule of project to Maine Department, and relevant provincial authorities including Provincial Governor, Public Relation Office, Energy Office, Marine Transportation Office, Fishery Office, and Fishery Associations in Chumphon province at least one month prior to production phase. 2) Establish 500 m radius exclusion zone around the wellhead platform and FPSO. 3) Use support vessels to warn off traffic to prevent accidental collision. 4) Provide appropriate lights and warning signals on project vessels to prevent accidental collision. Wellhead and FPSO platform,

69 Table 6-4 (Cont d) Environmental Element Potential Impacts Mitigation Measures Implementation Area Responsibility 2.2 Corporate Social Responsibility: CSR Promotion of the participation between Salamander and community Reduction of community opposition to the project. 1) Support of community projects that are consistent with Salamander s principle. Salamander has to annual support the projects including: Larvae releasing: To increase the amount of larvae in the sea. Salamander will consult with Fisheries Research and Development Center, the Central Gulf of Thailand and Chumphon Fishery Officein about appropriate species, duration time, and location for releasing. Mangrove forestation: To offset CO 2 emission into the atmosphere and to be larvae nursery. Salamander will consult with Marine and Coastal Resources Center, the Central Gulf of Thailand about appropriate species, duration time, and location for forestation. Artificial reef: To be marine life habitat, increase biological diversity, and diving point. Salamander will consult with Marine and Coastal Resources Center, the Central Gulf of Thailand, Koh Tao s TAO, and Koh Tao Saving Club about appropriate duration time, and location for this activity. Chumphon province and/or Koh Tao 3. Health Impacts Mitigation Measures 3.1 Occupational health and safety Impacts are caused by illness and accident from work. 1) Set up a working environment properly. 2) Prepare sanitary housing for workers and provide health management systems and sanitation facilities with an adequate number of workers. 3) Provide personal protective equipment for all workers. 4) Provide appropriate first aid kit in the working area. 5) Provide training to educate staffs about the precautions of operation. 6) Provide medical service by medic on FPSO. 7) If emergency or illness / serious injury occur in project area, Salamander has to contact and coordinate with the ISOS according to the plan. 8) Set up a suitable recreation area for workers. 9) Staff must strictly comply with occupational health, safety, and environment policy. Wellhead platform, and FPSO 3.2 Community health and safety May affect mental health because of concerns about the chance to get damage. 1) Provide public relation plan to create an understanding with community. 2) Provide Salamander s Community Awareness Plan agreed with community s requirement. Also, provide complaints handling process. 3) Follow mitigation measures as mentioned in seawater and seabed sediment qualities section. Community surround shore base area and along transportation routes

70 Table 6-4 (Cont d) Environmental Element Potential Impacts Mitigation Measures Implementation Area Responsibility 4. Mitigation Measures for Unplanned Events 4.1 Dropped objects Direct impact on personal i.e. injuries or fatalities Damage to structure i.e. rig floor The dropped objects may affect the environment. 1) Lifting path restrictions to avoid lifting over or near critical/ sensitive equipment. 2) Identify packaging, size and weights are appropriate to lift loads, ability of crane, and other equipment for lifting i.e. sling and cable. 3) The workers who control the crane and signal a lifting must be trained about the activity to be performed. 4) Recovery of dropped objects wherever practicable. Wellhead platform, FPSO, and all project vessels 4.2 Typhoon Direct impact on personal i.e. injuries or fatalities 1) Regularly monitor a weather condition. 2) Implement Emergency Response Plan in case of typhoon occurrence. Wellhead platform, FPSO, and all project vessels 4.3 Collision Damage to vessels and asset. And, Direct impact on personal i.e. injuries or fatalities 1) Follow mitigation measures as mentioned in marine transportation section. 2) Provide emergency response plan covering collision case. 3) Provided adequate life-saving equipment. And provide plan to check and take care them to be available with good condition. Wellhead platform, FPSO, and all project vessels

71 Table 6-4 (Cont d) Environmental Element Potential Impacts Mitigation Measures Implementation Area Responsibility 4.3 Collision (cont.) Damage to vessels and asset. And, Direct impact on personal i.e. injuries or fatalities. (cont.) 4) Two layers of hull s FPSO are required to protect the tearing up of the oil storage tank. 5) Oil storage in FPSO will be divided into sub-tanks to reduce the amount of oil spill in case of collision and hull is teared during offtaking. 6) Incoming offtake vessels sall inform production sector in field at least 4 hours before intended arrival and give the following information: name of vessel and radio call sign, INMARSAT identification number, arrival draught and trim, and Master s name. 7) The weather conditions and forecasts are closely monitored before the arrival of the offtake vessel and during offtake operation. For mooring operations the limiting significant wave height is 1.5 m and 20 knots wind. For offtake vessel already moored, the design limits for the hawser will be approached when the significant wave height reaches 2.0 m seas and 20 knots wind. 8) If an offtake vessel cannot moor on arrival at one of the facilities and wishes to anchor, it shall be within the permitted anchoring areas. Contact should be made with the offshore installation manager for information and guidance on this matter. 9) Master should note that in event of arrival with excessive trim or too light a draught, mooring may be refused. 10) Mooring master remains at all times to command of vessel. 11) The Offtake Vessels shall not anchor within the exclusion zones. An exclusion zone is centered on the Well Head Platform extends in a five hundred (500) meters radius and FPSO Rubicon Vantage extends in a nine hundred and five (905) meters radius. 12) All communication equipment between FPSO and offtake vessel are available in good condition. 13) During operation, support vessels can assist mooring as required under the command of mooring master. 14) All staffs responding offtake operation must comply with Bualuang Berthing & Terminal Handbook. Wellhead platform, FPSO, and all project vessels

72 Table 6-4 (Cont d) Environmental Element Potential Impacts Mitigation Measures Implementation Area Responsibility 4.3 Collision (cont.) Damage to vessels and asset. And, Direct impact on personal i.e. injuries or fatalities. (cont.) 15) For the complete period the offtake vessel is made fast at the facility, it shall be ready to respond to request for engine movement immediately. The offtake vessel may be required to run its main engines astern for extended periods of time on low engine revolution 16) A responsible, English speaking, Vessel officer is required to be on deck or in the control room at all times. A continuous deck watch shall be maintained to ensure the mooring hawser and cargo hose are under observation at all times. 17) During the commencement of loading, and until the full loading rate is achieved, the Mooring Master accompanied by a vessel officer, will remain at the Vessel s manifold. When the Vessel confirms that its tank valves and manifold valve are open, the Mooring Master will request the Terminal to start the loading pumps at slow rate. The Vessel will observe the flow of oil into the Vessel s tanks and once satisfied that the oil is flowing into the designated tanks, will advise the Terminal that the Vessel is ready to receive cargo at full rate. 18) After hose disconnected and all parties are ready to unmoor, the tug astern may be released or may remain moored to the Vessel s stern to assist with unmooring. The mooring master in consultation with the Master will decide the time unmooring will commence. At the completion of the transfer of cargo and the completion of all documentation before the offtake vessel is cleared for sailing. Wellhead platform, FPSO, and all project vessels 4.4 Spills Impact on environment caused by the spill of mud, fuels, lubricating oil, and chemicals depend on amount of oil and chemical spill and level of toxicology of substances. 1) Storage of fuels, lubricating oil, and chemicals will be provided with drip pans. 2) Storage of chemicals on support vessels, wellhead platform, and FPSO should be the appropriate quantity used for drilling to minimize onsite storage area. 3) Provide the equipment for cleaning up and sweeping oil slick. 4) Drill following the oil spill response plan. 5) Two layers of hull s FPSO are required to protect the tearing up of the oil storage tank. Wellhead platform, FPSO, and all project vessels

73 Table 6-4 (Cont d) Environmental Element Potential Impacts Mitigation Measures Implementation Area Responsibility 4.4 Spills (cont.) Impact on environment caused by the spill of mud, fuels, lubricating oil, and chemicals depend on amount of oil and chemical spill and level of toxicology of substances. (cont.) 6) Oil storage in FPSO will be divided into sub-tanks to reduce the amount of oil spill in case of collision and hull is teared during offtaking. 7) The weather conditions and forecasts are closely monitored before the arrival of the offtake vessel and during offtake operation. For mooring operations the limiting significant wave height is 1.5 m and 20 knots wind. For offtake vessel already moored, the design limits for the hawser will be approached when the significant wave height reaches 2.0 m seas and 20 knots wind. 8) All communication equipment between FPSO and offtake vessel are available in good condition. 9) All staffs responding offtake operation must comply with Bualuang Berthing & Terminal Handbook. Wellhead platform, FPSO, and all project vessels

74 6.2 Environmental Monitoring Measures The monitoring measures aim to monitor the efficiency of implementation of mitigation measures. The implementation are useful for improve project s operation and the efficiency of measures. The monitoring measures are set for three phase including drilling phase, pre-drilling phase, and production phase. Preparation and installation phase will be operated in short time and no significant impacts, thus the measures are not regulated. The monitoring measures presented in this section are to monitor the remaining impacts caused by project. The monitoring report will be conducted and submitted to ONEP and DMF in the further Environmental Monitoring Measures: Drilling Phase The monitoring measures of cutting volume in drilling phase is set to verify the efficiency of project s operation as shown in Table Environmental Monitoring Measures: Pre Drilling Phase and Production Phase After drilling and preparation of production wells, the petroleum production will be started until the concession expires or no commercial value. The monitoring measures are set to verify environmental impacts caused by cutting and petroleum production and monitor the impacts caused by project as shown in Table 6-6. The sampling stations for monitoring are shown in Figure

75 Table 6-5 Environmental Monitoring Measures: Drilling Phase Environmental Element Parameter Duration/Frequency Location Methodology Budget Responsibility Cuttings Quality Drill Cuttings Quality; analysis Report consisting of the following parameters: Metals - Arsenic (As) - Barium (Ba) - Cadmium (Cd) - Total Chromium (Cr) - Cropper (Cu) - Total Mercury (Hg) - Iron (Fe) - Manganese (Mn) - Nickel (Ni) - Lead (Pb) - Zinc (Zn) Once during the drilling Wellhead platform Methodology Cutting samples will be extracted using Waste Extraction Test and Leaching Test and analyzed according to the Notification of the industrial Department, B.E 2548, Re: Waste or Unusable Material Disposal, Number of Samples 3 Samples from cuttings containers 80,000 THB Salamander Energy (Bualuang) Limited

76 Table 6-6 Environmental Monitoring Measures: Pre Drilling Phase and Production Phase Environmental Element Parameter Duration/Frequency Location Methodology Budget Responsibility 1. Air Quality Emission of Greenhouse Gas (CO 2, CH 4 and N 2 O) Every year Wellhead platform FPSO Support vessel Methodology Calculation emission of greenhouse gas in tonnes of carbon dioxide equivalent units from fuel consumption of wellhead platform, FPSO and support vessels including gas flaring Include in Project s budget 2. Produced Water Produced water quantity injected into injection wells Produced water quality - Petroleum Hydrocarbon - Total mercury (Hg) - Arsenic (As) Produced water quantity: once per month Produced water quality: once before injection Tank of produced water Methodology Record produced water quality and its volume managed in any way Sampling produced water before injection to analyze water quality according to USEPA Include in Project s budget

77 Table 6-6 (cont d) Environmental Element Parameter Duration/Frequency Location Methodology Budget Responsibility 3. Seawater quality Physical Parameter - Temperature - ph - Transparency - Suspended solid - Salinity Chemical Parameter - Grease and Oil - Petroleum Hydrocarbon - DO - Metals: Arsenic (As), Barium (Ba), Cadmium (Cd), Total Chromium (Cr), Cropper (Cu), Total Mercury (Zn), Iron (Fe), Manganese (Mn), Nickel (Ni), Lead (Pb), Zinc (Zn) Sampling of initial interval (within the first 3 years of production). - Sampling once time after production start in the first year and sampling every year thereafter until the third time Sampling after first 3 years of production - If any samples of first interval are accordance with standard, should collect samples every 3 years afterward the third year in operation - If any samples of first interval are not accordance with standard, should collect samples every years afterward the third year in operation and clarify changing cause and corrective action Wellhead platform: distance 500 meter Four control stations (Figure 6-1) Methodology Sampling and analytical method to be in accordance with the Notification ofthe National Environmental Board No.27 Re: Seawater Quality BE The depth of samples are as follow - 1 m below surface water - 20 m below surface water - 40 m below surface water - 1 m above seabed Number of Sample Wellhead platform: 2 stations 4 control stations 1,500,000 THB (Including budget for Sampling and analytical seawater quality, seabed sediment, plankton and benthos

78 - 74 -

79 Table 6-6 (cont d) Environmental Element Parameter Duration/Frequency Location Methodology Budget Responsibility 4. Plankton Phytoplankton, Zooplankton and larvae Classification of taxonomy Quantity and density Operate at the same time as seawater quality sampling. Wellhead platform: distance 500 meter Four control stations (Figure 6-1) Phytoplankton Sampling method: Seawater grab sampling for 100 litres Plankton net: 20 m mesh size. Depth: 2 depths at 1 2 m below the surface and the bottom of Euphotic Zone (if restrictions. Be collected at a depth of 25 m from the surface) Zooplankton Larvae Sampling Method : Oblique haul from seabed to surface water for about 30 minutes with the speed of haul at about 2 knots Plankton net: 330 m mesh size.and keep the plankton net below 5 meters above the sea floor Sampling Method : same as zooplankton sampling Larvae Net: 550 and 330 m mesh size in the same larvae net Number of sampling station Wellhead platform:: 2 stations Control station: 4 stations Number of replications Phytoplankton: at least duplicate per depth level Zooplankton and larvae: not duplicate 1,500,000 THB (Including budget for Sampling and analytical seawater quality, seabed sediment, plankton and benthos Salamander Energy (Bualuang) Limited

80 Table 6-6 (cont d) Environmental Element Parameter Duration/Frequency Location Methodology Budget Responsibility 5. Seabed Sediment Particle size distribution Total petroleum hydrocarbons (TPH) Metal: Total Mercury (Hg), Arsenic (As), Cadmium (Cd), Barium (Ba), Lead (Pb), Copper (Cu), Total Cromium (Cr) Zinc (Zn), and Nickel (Ni) Operate at the same time as seawater quality sampling. Wellhead platform: distance 100 meter Four control stations (Figure 6-1) Sampling seabed sediment around wellhead platform and control station. The sampling method will be in accordance with the acceptable standard at that time such as. Proposed Marine and Coastal Sediment Quality Guidelines (PCD, 2549) USEPA Number of sampling station 2 stations Four control stations 1,500,000 THB (Including budget for Sampling and analytical seawater quality, seabed sediment, plankton andbenthos Salamander Energy (Bualuang) Limited 6. Benthos Classification of taxonomy Quantity and density Operate at the same time as seawater quality sampling. Wellhead platform: distance 100 meter Four control stations (Figure 6-1) Methodology Sampling method: Grab Sampler size 0.1 m2 and three or four sieves with grid diameter of 5, 2 and 1 mm.mesh size. The use of 0.5 mm.mesh size is required for clay samples. Number of sampling station 2 stations 4 control stations Number of replication triplicate per station 1,500,000 THB (Including budget for Sampling and analytical seawater quality, seabed sediment, plankton andbenthos Salamander Energy (Bualuang) Limited

81 Table 6-6 (cont d) Environmental Element Parameter Duration/Frequency Location Methodology Budget Responsibility 7. Marine Mammals Details of the mammals detected such as type number and location Date and time of mammals observed Operate at the same time as sediment sampling. All area of environmental quality sampling Record information in case marine mammals are detected during operations (if you do not found please report the truth) Include in Project budget Salamander Energy (Bualuang) Limited 8. Socio-economic and Public health Complaints of socioeconomic and publichealth caused by project activities Checking and correction (in case of complaints) Throughout duration time of project implementation Affected Comunity/Shore base area Collect the information from complaint center and provide appropriate mitigation measure Include in Project budget Salamander Energy (Bualuang) Limited 9. Occupation health and Safety Accident and spill records of project Throughout duration time of project implementation Offshore area of Project area To Record accident, leakage and emergency caused by project operation by identifying the cause. The severity of the impact and the corrective measures that have been implemented Submit summary accident investigation report Fire drill and emergency evacuation and prepare annual report Include in Project budget Salamander Energy (Bualuang) Limited Occupation health of employee who work with risk Once per year Health check up

82 Figure 6-1 Sampling Stations of Environmental Impact Monitoring