2. General Information

Transcription

1 14 Browse FLNG Development Draft Environmental Impact Statement 2. General Information Woodside, as Operator of the Browse floating liquefied natural gas (FLNG) Development, for and on behalf of Woodside Browse Pty Ltd, Shell Development (Australia) Pty Ltd (Shell), BP Developments Australia Pty Ltd (BPDA), Japan Australia LNG (MIMI Browse) Pty Ltd (MIMI) and PetroChina International Investment (Australia) Pty Ltd (PCIIA) (hereafter referred to as the Browse JV participants), proposes to commercialise hydrocarbon resources from the Brecknock, Calliance and Torosa reservoirs located in the Browse Basin, 425 km north of Broome, Western Australia (WA), using FLNG technology. The Browse FLNG Development infrastructure will be located in water depths ranging from 350 to 700 metres (m). The Browse FLNG Development includes up to three FLNG facilities, with drilling scheduled to commence approximately two years post FID and operations expected to extend for approximately 40 to 50 years. Preparation of the Draft EIS has been undertaken in consultation with the Commonwealth Department of the Environment (DOE) (Previously the Department of Sustainability, Environment, Water, Population and Communities (DSEWPaC)) and other stakeholders, and conforms with the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act Guidelines) for the Content of a Draft Environmental Impact Statement (EPBC 2013/7079) (EIS Guidelines) provided to Woodside on 9 April 2014 (Appendix A). 2.1 Title The title of the action is the Browse FLNG Development. 2.2 Proponent Woodside is Australia s largest independent oil and gas company and is one of the nation s most successful explorers, developers and producers. The company operates Australia s biggest resource development, the North West Shelf Project (NWSP) in WA. With the successful start-up of the Pluto LNG Plant in 2012, Woodside now operates six of the seven LNG processing trains in Australia. Woodside s commitment to responsible environmental management was recognised by APPEA as the recipient of awards in 2009 and Woodside was recognised in 2009 for appraisal activities at Scott Reef, including environmental research undertaken at Scott Reef in association with the Maxima 3D MSS and the Gigas 2D Pilot OBC MSS. This recognised Woodside s approach and understanding of undertaking activities in a highly sensitive environmental setting. The 2012 APPEA Environment Award recognised Woodside s partnerships with the Australian Institute of Marine Science (AIMS) and the Western Australian Museum (WAM). These long-term partnerships have improved scientists, industry s and the broader community s understandings of biodiversity and ecological function in WA s tropical marine communities. Most recently, Woodside was named the 2014 winner of the inaugural Western Australian State Department of Fisheries - Excellence in Marine Biosecurity Award. The award recognises Woodside s leadership, innovation and commitment to excellence in marine biosecurity, by taking a collaborative approach with other oil and gas operators to manage biosecurity responsibly across the sector. The Browse FLNG Development will be managed in accordance with legislation and associated regulations applicable to offshore petroleum activities to ensure that offshore petroleum activities are carried out in a manner by which the environmental impacts and risks of the activity will be reduced to ALARP and will be of an acceptable level. The Browse FLNG Development will also be managed in accordance with the EPBC Act and associated EPBC Regulations, which aim to protect Matters of National Environmental Significance (NES) in accordance with Environmental Sustainable Development (ESD) principles. Further information about Woodside s commitment to environmental excellence and the latest Sustainability report can be found at Sustainable-Development/Pages/Sustainable-Development- Report.aspx. Woodside, as the proponent of the Browse FLNG Development, can be contacted at: Browse FLNG Development browseinfo@woodside.com.au Toll free: Street address Environment Manager, Browse FLNG Development Woodside Plaza 240 St Georges Terrace Perth WA 6000 Mailing address Environment Manager, Browse FLNG Development Woodside Energy Ltd GPO Box D188 Perth WA 6840

2 Section 2 GENERAL INFORMATION Development Location and Overview The Browse FLNG Development encompasses the Brecknock, Calliance and Torosa reservoirs, which are located approximately 425 km north of Broome and approximately 290 km off the Kimberley coast in WA (Figure 2.1). These reservoirs, discovered between 1971 and 2000 are estimated to contain gross (100%) contingent resources of 14.9 tcf of dry gas and million barrels of condensate. The Browse FLNG Development aims to commercialise hydrocarbon resources through the following stages: Development drilling of the Brecknock, Calliance and Torosa reservoirs. Installation of subsea infrastructure, including anchors and mooring lines, umbilicals, flowlines, risers and manifolds. Installation, hook-up and commissioning of the FLNG facilities. Operation of the FLNG facilities, including gas processing, liquefaction, storage and export of LNG and stabilisation and export of condensate. Decommissioning of reservoir infrastructure at the end of reservoir life (approximately 40 to 50 years). Information provided in the Draft EIS is based on knowledge of the Browse FLNG Development which is currently in the BOD phase. While the Browse JV participants expect that environmental aspects and associated potential impacts described in the Draft EIS will remain unchanged overall, any substantial changes to the Browse FLNG Development concept and associated activities will be assessed as the design and stakeholder engagement process matures. The Browse FLNG Development comprises the following key components: Three drill centres at the Brecknock and Calliance reservoirs. Five drill centres at the Torosa reservoir. Other subsea infrastructure including manifolds, flowlines, umbilicals, risers and moorings. Up to three FLNG facilities (the FLNG facilities), with a potential relocation of one FLNG facility between the Brecknock and Calliance reservoirs and the Torosa reservoir at approximately mid-reservoir life. In this scenario, it is anticipated that there may be two FLNG facilities located at the Brecknock and Calliance reservoirs for approximately half the reservoir life, and two facilities located at the Torosa reservoir for approximately half the reservoir life (Figure 2.2). The Browse FLNG Development area (thereafter referred to as the Development area ) comprises the area outlined in Figure 2.1 and Figure 2.2, encompassing the extent of the retention leases Woodside propose to develop. Within the Development area, areas where development infrastructure and supporting vessels will be operated (Section 5), which exclude waters shallower than 100 m and excluding North Scott Reef and South Scott Reef, are thereafter referred to as the Development footprint.

3 16 Browse FLNG Development Draft Environmental Impact Statement Figure 2.1: Browse FLNG Development Location

4 Section 2 GENERAL INFORMATION Objectives of the Browse FLNG Development The objectives of the Browse FLNG Development are as follows: Optimise the production and recovery of hydrocarbons from the Brecknock, Calliance and Torosa reservoirs. Provide an acceptable return on investment. In doing so, the Browse FLNG Development will: Minimise its environmental footprint. Manage environmental, health, security and safety issues in accordance with recognised industry standards and Woodside s requirements. Maximise socio-economic benefits. 2.5 Development Justification The three reservoirs, Brecknock, Calliance and Torosa, are estimated to contain approximate resources of 14.9 tcf of dry gas and million barrels of condensate. For the Browse FLNG Development, this translates into the provision of approximately 40 to 50 years of cleaner energy supply to global markets. Developing LNG will support Australia s commitment to greenhouse gas emission reduction as it is less emissionintensive than all other fossil fuels and is able to contribute directly to the global reduction of greenhouse gas emissions when it is used to replace more emissions intensive fuels, such as coal. The increased use of natural gas also has several environmental benefits, such as: Reduced emissions of particulates and sulfur dioxide. Significantly lower demand for water for cooling requirements. Significant screening work was performed in support of a development proposal for the Browse resources. Five development concepts were assessed Browse to Kimberley, Browse to Burrup, Browse to Darwin, Offshore LNG, and Floating LNG. These concepts were compared using safety and technical risk, time to commercialisation, environmental sensitivity, socio-economic factors, heritage input and economic factors. After extensive assessment of a range of alternative developments, the Browse FLNG Development is considered the most likely commercially viable option to develop the resources. This concept utilises Shell s FLNG technology and Woodside s offshore development expertise. FLNG has matured as a viable technology for the commercialisation of petroleum from remote, offshore gas reservoirs. It combines the functions of an offshore gas receiving facility, with gas treatment and liquefaction plant as well as storage and offloading facilities. This results in a significantly smaller environmental footprint when compared to traditional onshore development concepts. The safety of our people is paramount. FLNG technology integrates practices, processes and equipment that are well known and proven in the oil and gas industry. The Browse FLNG Development will use the latest in processing and safety technologies and be designed to withstand severe weather conditions to protect our people and the surrounding environment. FLNG also provides the opportunity for WA to become an industrial, operational and technology centre for excellence worldwide. Building sustainable expertise can create a lasting legacy for the region in terms of ongoing jobs, business opportunity, and influence. The Browse JV participants are committed to working with the WA and Australian Governments, local communities and other relevant stakeholders to realise opportunities from the development of the Browse resources across all phases of the development. The Browse FLNG Development has the potential to make a significant contribution to the Australian and WA economies and provide long-term, sustainable local content and employment opportunities. The Browse FLNG Development will require onshore infrastructure and logistics support throughout all phases of the project to ensure efficient and safe installation and operations of the facilities. Both the onshore support infrastructure and offshore facilities will contribute to employment and business opportunities in Western Australia. In accordance with the Australia Jobs Act 2013, Woodside has an approved Australian Industry Participation Plan. The Browse FLNG Development is a mega-project expected to deliver billions of dollars in government revenue, and sustain up to 1,000 direct jobs each year during its approximately 40 to 50 year operations. 2.6 Relationship with Other Actions The Browse FLNG Development does not form part of a larger action nor is it related to other actions currently being assessed under the EPBC Act. Any other future petroleum activities planned by Woodside will be subject to separate environmental approvals as required. The Browse FLNG Development will involve vessel and helicopter movements in order to support the offshore FLNG facilities; however it is not dependent on the development of new onshore infrastructure in order to proceed (Section 5.7). The assessment and selection of appropriate supply chain and logistics support location(s) for the Browse FLNG Development is focused on utilising existing infrastructure and related services. To increase efficiency in delivering logistics support to the development, Woodside may consider leveraging future expansion plans for existing infrastructure proposed in response to broader industry needs. As the location(s) for supply chain and logistics support infrastructure are not yet determined, vessel and helicopter movements to and from a range of potential locations have been considered in the Draft EIS. Estimates of vessel movements are provided in Section 5.7, and associated potential impacts assessed in Section Environmental aspects and stakeholder engagement requirements associated with the supply chain and logistics support locations will be reviewed once location(s) have been identified, and separate approvals will be conducted as required.

5 18 Browse FLNG Development Draft Environmental Impact Statement Figure 2.2: Indicative Subsea Infrastructure Layout

6 Section 2 GENERAL INFORMATION Previous Development Options for the Browse Resources Between 2004 and 2007 various development concepts were identified as part of the Concept Select phase for the commercialisation of the Browse gas reservoirs. At the time the initial Concept Select phase was completed, FLNG had yet to mature as a viable technology, and the onshore JPP Concept was chosen to be progressed through technical and commercial evaluation. In April 2013, following completion of the technical and commercial evaluation of the JPP Concept, Woodside announced the JPP Concept did not meet the company s commercial requirements for a positive FID. Following this decision, the Browse JV participants began a review of alternative development concepts which comprised Browse to Burrup, Browse to Kimberley (a smaller onshore option at the WA Government s proposed Browse LNG Precinct JPP), Browse to a nearshore processing facility along the Kimberley Coast and floating technology. Based on advances made in FLNG technology, and supported by the outcomes of the Concept Select review process, Woodside advised the ASX on 2 September 2013 that the Browse JV participants had selected the use of Shell FLNG technology as the development concept to progress through the BOD phase. Further information relating to previous development options for the Browse Resources is presented in Section Resource Appraisal and Feasibility Studies for the Browse FLNG Development Woodside will be required to progress a range of resource appraisal activities and feasibility studies to support the commercialisation of the Browse gas reservoirs associated with the Browse FLNG Development. These activities will include seismic surveys, drilling of appraisal wells, geophysical and geotechnical surveys. All are short-term and small scale in nature and are not directly related to the development of facilities for the recovery of hydrocarbons from the Browse gas reservoirs for processing and export. These activities do not form part of the scope of the Browse FLNG Development, and will be subject to separate environmental approvals as required Other Developments in the Browse Basin A number of other petroleum activities in the Browse Basin are currently being conducted or proposed by other petroleum operators. These include: Development of the Ichthys reservoir by INPEX Browse Ltd. Development of the Prelude reservoir by Shell, using FLNG technology. Exploration and appraisal drilling of the greater Poseidon area by ConocoPhillips and Karoon Gas. Exploration drilling of the Crown / Treasury area by Santos. Exploration drilling of Schooner reservoir by Hunt Oil. Exploration drilling of Pryderi-1 well by CalEnergy Resources. Seismic exploration activities of Gwydion reservoir by IPB Petroleum. 2.7 This Document Background Woodside submitted an EPBC Act Referral to the Minister for the Environment (EPBC 2013/7079) on 4 December 2013 for the Browse FLNG Development in retention leases R-2, TR/5, WA-28-R, WA29-R, WA-30-R, WA-31-R and WA-32-R (Figure 2.3). The proposal was determined to be a Controlled Action on 10 January 2014 to be assessed by EIS. The Draft EIS Guidelines were prepared by the Minister for the Environment and published for public review based on the requirements of Section s102 of the EPBC Act and Schedule 4 of the EPBC Regulations On completion of the public review period, the EIS Guidelines were finalised and issued to Woodside on 9 April 2014 (Appendix A). The delegate of the Minister considered that the project is likely to have a significant impact on the following matters of National Environmental Significance (NES), as defined by the EPBC Act: Listed threatened species and communities. Listed migratory species. Commonwealth marine area. A summary of the EIS Guidelines is provided in Table Other Woodside Exploration Activities Woodside is active in a range of other petroleum exploration retention leases in WA. Exploration and any future appraisal activities in retention leases outside of those relevant to the proposed action are not related to the Browse FLNG Development.

7 20 Browse FLNG Development Draft Environmental Impact Statement Table 2.1: EIS Guidelines Summary Content General information Description of the action Description of the environment Impacts Proposed mitigation and management measures Offsets Other approvals and conditions Consultation Environmental record of person(s) proposing to take the action Information sources provided in the EIS Conclusion Description Provides the background and context of the action. Installation, operational and decommissioning components of the action described in sufficient detail. Details on how the works are to be undertaken (all stages of development and their timing) and design parameters for those aspects of the structures or elements of the action, including how the operation is to be managed, that may have relevant impacts and other social or economic impacts. Elements of the action with potential relevant impacts for matters protected under Part 3 of the EPBC Act. Proposed safeguards and mitigation measures to deal with relevant impacts of the action must be included. Aerial photographs, maps, figures and diagrams used where appropriate. Reference to detailed technical information in appendices where relevant. Any feasible alternatives to the action discussed, including social and economic matters. Detailed description of the environment and the surrounding areas (including State waters) that may be affected by the action, including environmental elements. Broad description of the biodiversity and biogeography of the receiving environment. Description of all of the relevant impacts of the action. Identification and addressing of cumulative impacts. Detailed assessment of any likely impact on listed threatened species and ecological communities, migratory species and the WA and Commonwealth marine environment (at the local, regional, state, national and international scale). Information on proposed mitigation and management measures to deal with the relevant impacts of the action. Specific and detailed descriptions of proposed measures based on best available knowledge at this stage of the project. Details on any measures proposed by way of offsets and the change in impacts from the proposed offset. Details on any other requirements for approval or conditions that apply, or likely to apply, to the proposed action. Any consultation about the action, including any consultation that has already taken place and proposed consultation about relevant impacts of the action. Details of the corporation s environmental policy and planning framework and any accreditations, environmental awards, and other recognition for environmental performance. Details of the source of the information, how recent the information is, how the reliability of the information was tested and the uncertainties (if any) in the information. Any further or ongoing consultations or studies outlined. An overall conclusion as to the environmental acceptability, including discussion on compliance with principles of ESD and the objects and requirements of the EPBC Act. Reasons justifying undertaking the proposal in the manner proposed. Measures proposed or required by way of mitigating, or managing any unavoidable impacts on the environment. Measures proposed by way of offset and the change in residual impacts following the offset restated.

8 Figure 2.3: Browse JV Retention Leases Section 2 GENERAL INFORMATION 21

9 22 Browse FLNG Development Draft Environmental Impact Statement Purpose The Draft EIS has been prepared by Woodside as Operator of the Browse FLNG Development to present the assessment of potential environmental impacts of the Browse FLNG Development and associated management and mitigation measures. The purpose of the Draft EIS is to provide the Commonwealth regulator with the information required to assess the proposal against the requirements of the EPBC Act. In addition, the Draft EIS is used to inform and obtain feedback from stakeholders about the development as well as demonstrating that potential impacts can be managed to an acceptable level. The Draft EIS: Describes the components of the Browse FLNG Development and the activities to be undertaken. Places the Browse FLNG Development in the context of the local and regional physical, ecological, socio-economic and cultural environment. Identifies and assesses potential impacts to the physical, ecological, socio-economic and cultural environment. Defines management and mitigation measures proposed to reduce potential adverse impacts to the environment to an acceptable level. Communicates the proposal to stakeholders to assist in providing opportunity for informed comment. Demonstrates that Woodside has a comprehensive management structure and system to implement, maintain and monitor the commitments detailed in the Draft EIS. The Draft EIS has been prepared in accordance with the EPBC Act and Schedule 4 of the Environment Protection and Biodiversity Conservation Regulations 2000, and addresses the requirements of the EIS Guidelines for this action. Appendix B cross references the relevant sections of the Draft EIS against the requirements of the EIS Guidelines Scope The scope of the Draft EIS covers the Browse FLNG Development. The scope consists of all offshore infrastructure and activities required for the recovery of hydrocarbons from the three reservoirs. Section 5 describes the infrastructure required and activities to be undertaken for the Browse FLNG Development. The Draft EIS covers the following phases of the Browse FLNG Development: Development drilling of the Brecknock, Calliance and Torosa reservoirs. Installation of subsea infrastructure, including anchors and mooring lines, umbilicals, flowlines, risers and manifolds. Installation, hook-up and commissioning of the FLNG facilities. Operation of the FLNG facilities, including gas processing, liquefaction, storage and export of LNG and stabilisation and export of condensate. Decommissioning of reservoir infrastructure at the end of reservoir life (approximately 40 to 50 years). The Browse FLNG Development will involve vessel and helicopter movements in order to support the offshore FLNG facilities; however it is not dependent on the development of new onshore infrastructure in order to proceed (Section 5.7). As the assessment and selection of appropriate supply chain and logistics support location(s) for the Browse FLNG Development is focused on utilising existing infrastructure and related services, these locations are therefore not part of the scope of the Draft EIS (Section 5). As the location(s) for supply chain and logistics support infrastructure are not yet determined, vessel and helicopter movements to and from a range of potential locations have however been considered in the Draft EIS. Estimates of vessel movements are provided in Section 5.7, and associated potential impacts assessed in Section 10.3.

10 Section 2 GENERAL INFORMATION Structure The Draft EIS structure is outlined in Table 2.2. Table 2.2: Draft EIS Structure Outline Section Title Description of Content 1 Executive Summary This section provides a summary of the key information presented in each section of the EIS. 2 General Information 3 Stakeholder Engagement This section provides an overview of the Browse FLNG Development, including its regulatory framework. This section provides an overview of the consultation process undertaken by Woodside, as well as engagement feedback relevant to the proposal received to date. 4 Development Alternatives This section provides details of concepts considered for the development of the Browse resources, and the overall assessment resulting in the FLNG concept being selected. 5 Browse FLNG Development This section provides a detailed description of the Browse FLNG Development, including proposed infrastructure, activities and associated environmental aspects for further consideration. 6 Existing Environment - Physical and Ecological This section provides a comprehensive review of the existing physical and ecological environment within which the Browse FLNG Development is proposed, including key environmental receptors to be considered as part of this EIA. 7 Existing Environment - Socio-economic and Cultural This section provides a comprehensive review of the existing socio-economic and cultural environment within which the Browse FLNG Development is proposed, including key socioeconomic and cultural receptors to be considered as part of this EIA. 8 Risk Assessment Process This section provides an overview of the risk-based assessment approach adopted by Woodside to assess environmental, socio-economic and cultural impacts associated with the Browse FLNG Development. 9 Proposed Management and Mitigation This section provides details of Woodside s proposed management and mitigation measures for implementation as part of the Browse FLNG Development, including environmental performance outcomes to be achieved Impact Assessment and Risk Significance Environmental Management Plan Outcome This section provides a detailed assessment of impacts to key receptors resulting from the Browse FLNG Development. This section provides an overview of the environmental management framework applicable to the Browse FLNG Development, including internal, external and regulatory reporting requirements. 12 Information Sources This section lists resources used to prepare the Draft EIS, including subcontractors and peer reviewers. 13 References This section references all sources of information cited in the Draft EIS. 14 Abbreviations This section indexes all abbreviations and specific terminology used in the Draft EIS. 15 Appendices This section provides a record of information, including the EIS Guidelines and a summary of the consultation undertaken.

11 24 Browse FLNG Development Draft Environmental Impact Statement 2.8 Policy, Legal and Administrative Framework Overview This section provides an overview of the legislation, standards and guidelines that are applicable to the Browse FLNG Development including: Commonwealth policy, legislation and regulations. International policies, guidelines, standards and technical guidance. Industrial policies, guidelines, standards and technical guidance. International conventions and protocols to which Australia is a signatory Commonwealth Policy Framework The following are Commonwealth Government policies regarding petroleum development and marine protection relevant to the development. Australian Offshore Petroleum Development Policy This policy encourages petroleum exploration in Australia s offshore areas and is administered by the Commonwealth Government. Commonwealth and State Government agencies issue titles to the private sector in order to facilitate exploration and development of petroleum reserves within Australia. The titleholders have an obligation to undertake exploration and/ or development of their titles. They also have an obligation to certify the nature and the extent of the reserves. Following the discovery of a petroleum resource, the titleholder may apply for a licence to produce the resource and to construct pipelines and other infrastructure. The regulatory framework for offshore petroleum development is principally provided by the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (OPGGS Act) and associated regulations, as described in more detail in Section Australia s Oceans Policy Australia s Oceans Policy is a framework for integrated and eco-system based planning and management for Australia s marine jurisdictions. The policy was introduced in Building on the existing effective sectoral and jurisdictional mechanisms, the policy promotes ecologically sustainable development (ESD) of the resources of our oceans and the encouragement of internationally competitive marine industries, while ensuring the protection of marine biological diversity. The policy also promotes Integrated Planning and Management. The policy s aims are: Exercising and protecting Australia s rights over its marine jurisdictions. Meeting its obligations under the United Nations Convention on the Law of the Sea 1982 (UNCLOS). Understanding and protecting the marine environment. The core of Australia s Oceans Policy is the development of Marine Bioregional Plans, based on large marine ecosystems, which are binding on all Commonwealth Government agencies and relevant to the environmental impact assessment processes as set out below. Marine Bioregional Plans The Marine Bioregional Plans aim to strengthen the operation of the EPBC Act to help ensure that the marine environment remains healthy and resilient. The Plans provide information on conservation values and the current and emerging pressures within each region, as well as describing conservation priorities and measures for the region. The Plans are a source of information for Government and industry to improve the way the marine environment is managed and protected (Commonwealth of Australia 2012b). The plans: Support strategic, consistent and informed decision-making under Commonwealth environment legislation in relation to Commonwealth marine areas. Support efficient administration of the EPBC Act to promote the ecologically sustainable use of the marine environment and its resources. Provide a framework for strategic intervention and investment by Government to meet policy objectives and statutory responsibilities. The Plans improve the understanding of Australian oceans by providing a consolidated picture of the biophysical characteristics and the diversity of marine life (Commonwealth of Australia 2012b). The four Marine Bioregional Plans that have been developed are South-west, North-west, North and Temperate East. The Browse FLNG Development lies within the Northwest Marine Region. The Minister will take into consideration the Marine Bioregional Plans in making an approval decision, with particular focus on Key Ecological Features (KEFs) identified within. Clean Energy and Emissions Reduction Fund The previous Commonwealth Government passed the Clean Energy Legislative package in November The package includes The Clean Energy Act 2011, which implements the carbon pricing mechanism for Australia; the Clean Energy Regulator Act 2011 and the Climate Change Authority Act 2011, which implement key elements of the governance arrangements for the carbon pricing mechanism (Commonwealth of Australia 2012a). On 17 July 2014, the Commonwealth Government passed legislation that has repealed the Clean Energy Act 2011 and related legislation that establishes the carbon pricing mechanism (Commonwealth of Australia 2014). On 18 June 2014, the Commonwealth Government introduced to Parliament a bill to develop the Emissions Reduction Fund. The Commonwealth Government will implement a Direct Action Plan which is designed to efficiently and effectively source low cost emissions reductions. The Direct Action Plan will include an Emissions Reduction Fund to provide incentives for abatement activities across the Australian economy and will complement the Carbon Farming Initiative. The design of the Emissions Reduction Fund has been finalised in the Emissions Reduction Fund White Paper, released on 24 April The policy positions contained in the White Paper were developed in consultation with business and the community. The Browse FLNG Development will comply with all relevant legislation on greenhouse gas (GHG) management.

12 Section 2 GENERAL INFORMATION 25 EPBC Act Policy Statement 2.1 Interaction between Offshore Seismic Exploration and Whales This policy encourages the goal of minimising the likelihood of injury or hearing impairment of whales, based on current scientific understanding. The aim of the policy is to: Provide practical standards to minimise the risk of acoustic injury to whales in the vicinity of seismic survey operations. Provide a framework that minimises the risk of biological consequences from acoustic disturbance from seismic survey sources to whales in biologically important habitat areas or during critical behaviours. Provide guidance to both proponents of seismic surveys and operators conducting seismic surveys about their legal responsibilities under the EPBC Act. Australian Ballast Water Management Requirements 2013 On 1 July 2001, Australia introduced mandatory ballast water management requirements to reduce the risk of introducing harmful aquatic organisms into Australia s marine environment through ship s ballast water, which are consistent with International Maritime Organisation (IMO) Guidelines for minimising the translocation of harmful aquatic species in ships ballast water. Any ballast water that has been exchanged at sea by an approved method is deemed to be acceptable for discharge in Australian ports/waters. National Biofouling Management Guidance for the Petroleum Production and Exploration Industry 2009 This guidance document aims to provide assistance to the operators of the petroleum production and exploration industry to minimise the amount of biofouling accumulating on vessels, infrastructure and submersible equipment and thereby to minimise the risk of spreading marine pests around the Australian coastline. Australian and New Zealand Guidelines for Fresh and Marine Water Quality 2000 These Guidelines are intended to provide Government, industry, consultants and community groups with a comprehensive set of tools that will enable the assessment and management of ambient water quality in a wide range of water resource types, and according to designated environmental values. The Guidelines are the recommended limits to acceptable change in water quality that will continue to protect the associated environmental values Commonwealth Legislation This section describes the key Commonwealth legislation applicable to the Browse FLNG Development. All policies and guidelines relevant to the Browse FLNG Development proposed management and mitigation measures are provided in Section 9. Environment Protection and Biodiversity Conservation Act 1999 The EPBC Act is the Commonwealth Government s primary environmental legislation. These are the principal statutes for the protection and management of matters of national environmental significance (matters of NES). The EPBC Act forms the legislative basis for the Draft EIS. Under the EPBC Act, any action that is likely to have a significant impact on matters of NES must not be taken without the approval of the Minister. Actions with the potential to impact on a matter of NES trigger the Commonwealth environmental assessment and approval process. Offshore Petroleum and Greenhouse Gas Storage Act 2006 The OPGGS Act provides a framework for all offshore petroleum exploration, recovery and production and GHG storage activities in Commonwealth waters. The Act is supported by regulations and directions that cover matters of safety, diving, petroleum resource management and environmental management. A number of assessments are required under the OPGGS Act from the Designated Regulatory Authority in order to construct, operate and decommission a petroleum or GHG storage facility. The related OPGGS (Environment) Regulations 2009 (OPGGS (E) Regulations) have been set out to ensure any petroleum activity is consistent with the ESD principles and carried out in a manner by which the environmental impacts and risks of the activity will be reduced to ALARP and will be of an acceptable level (DOE 2014). National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) is the regulator of environmental management requirements under the OPGGS Act and associated regulations including the OPGGS (E) Regulations. NOPSEMA s specific environmental management functions in Commonwealth waters involve the: Development and implementation of effective monitoring and enforcement strategies to ensure compliance under environmental management law. Investigation of accidents, occurrences and circumstances with regard to deficiencies in environmental management. Monitoring of environmental incidents and reporting of investigations, to the responsible Commonwealth Minister and State and NT Minister. Assessment of EPs, including associated Oil Pollution Emergency Plans (OPEPs). Provision of advice to people on matters relating to environmental management. Provision of information, assessments, analysis, reports, advice and recommendations to the Commonwealth Minister on petroleum and GHG storage activities. Maintenance of a record of titleholders. Provision of contracts for related services on a cost recovery basis for State/NT Governments and foreign Governments.

13 26 Browse FLNG Development Draft Environmental Impact Statement Assessments required under the OPGGS Act and associated regulations include the following: EP assessment and acceptance. OPEP assessment and acceptance. Safety Case assessment and acceptance. Petroleum production licences. Pipeline licences in Commonwealth waters. Infrastructure licences (if a facility is required to be sited outside of a proponent s production licence). Petroleum safety zones. Production Licence A petroleum production licence is required under the OPGGS Act for petroleum recovery operations in Commonwealth offshore areas. A production licence authorises the licensee to recover petroleum from an area, subject to the licensee meeting any conditions specified by the licence. The production licence is granted by the Designated Regulatory Authority, and remains in force for the duration of the oil and gas production operations for which it was granted. Infrastructure Licence An infrastructure licence is required prior to construction or operation of an infrastructure facility in an offshore area under the OPGGS Act. An infrastructure facility includes a facility engaged in petroleum processing activities that either rests on the seabed or is fixed or connected to the seabed. An infrastructure licence is granted by the Designated Regulatory Authority and remains in force for the duration of the oil and gas operations for which it was granted. Safety Case The Offshore Petroleum and Greenhouse Gas Storage (Safety) Regulations 2009 require that a Safety Case is assessed and accepted by NOPSEMA for a facility before it is installed or constructed. A Safety Case makes provision for the identification, assessment, mitigation and management of health and safety hazards and risks. A Safety Case must include a facility description, formal safety assessment and safety management system. Woodside will prepare and submit the required safety cases to NOPSEMA as the development progresses to ensure timely approvals prior to construction, installation and start-up. Environment Plan Under the OPGGS (E) Regulations, the titleholder of a petroleum or GHG storage activity must not carry out that activity unless there is an accepted EP in force for the activity. The EP must describe the activity, the receiving environment, environmental aspects and an assessment of potential impacts. In addition, an EP must contain appropriate risk-based environmental performance outcomes and standards, an implementation strategy and provide criteria for determining whether the outcomes and standards are met. Petroleum activities which will require the preparation and submission of an EP and OPEP may include (but are not limited to): Development drilling. Installation, hook up and commissioning of subsea infrastructure and FLNG facilities. Operations and maintenance. Decommissioning. These EPs will be submitted and accepted by NOPSEMA before the activities listed above commence. Oil Pollution Emergency Plan Under the OPGGS (E) Regulations, an OPEP is required as part of the EP s Implementation Strategy. Acceptance for the OPEP is required before drilling, construction or production activities can commence within a retention lease. Other Commonwealth Legislation The Browse FLNG Development is subject to further Commonwealth legislative requirements in addition to the EPBC Act and OPGGS Act, which may include but are not limited to: Australian Heritage Council Act Civil Aviation Act Energy Efficiencies Opportunities Act Environmental Protection (Sea Dumping) Act Hazardous Waste (Regulation of Exports and Imports) Act Historic Shipwrecks Act National Greenhouse and Energy Reporting Act 2007 (NGER Act). Navigation Act Protection of the Sea (Prevention of Pollution from Ships) Act Protection of the Sea (Harmful Anti-fouling Substances) Act Quarantine Act Radioactive Waste Management Act Submarine Cables and Pipelines Protection Act Waste Avoidance and Resource Recovery Act 2007.

14 Section 2 GENERAL INFORMATION State Legislation This section describes the key State legislation that is applicable to the components of the Browse FLNG Development. Environmental Protection Act 1986 This is the principal statute pertinent to environmental protection in WA. The Environmental Protection Act 1986 (EP Act) provides for the prevention, control and abatement of environmental pollution and for the conservation, preservation, protection, enhancement and management of the environment. The Environmental Protection Authority (EPA) has statutory obligations under the EP Act to conduct environmental impact assessments, initiate measures to protect the environment from environmental harm and pollution and to provide advice to the WA Minister for Environment on environmental matters. Following advice from the Commonwealth Government that maritime boundaries in the vicinity of the Development area have changed, the Browse JV participants are preparing a referral under Section 38(1) of the EP Act for components of the Browse FLNG Development occurring within WA State waters. Petroleum (Submerged Lands) Act 1982 The Petroleum (Submerged Lands) Act 1982 (PSL Act) provides the regulatory framework for the exploration and production of petroleum resources adjacent to the coast of WA. The Petroleum (Submerged Lands) (Environment) Regulations 2012 are based on the Commonwealth Offshore Petroleum and Greenhouse Gas Storage (Environment) Regulations 2009, and have the objective of ensuring petroleum or geothermal energy activities are carried out in a manner consistent with the principles of ecologically sustainable development. The WA Department of Mines and Petroleum (DMP) is the regulator of environmental management requirements under the PSL Act and associated regulations International Agreements Australia is signatory to a number of international conventions and agreements relevant to environmental protection. Those relevant to Commonwealth legislation that may apply to the Browse FLNG Development include: International Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal 1989 (Basel Convention). Agreement between the Government of Australia and the Government of the People s Republic of China for the Protection of Migratory Birds and Their Environment (commonly referred to as the China Australia Migratory Bird Agreement or CAMBA). International Convention on the Conservation of Migratory Species of Wild Animals 1979 (Bonn Convention). International Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). Convention on the International Maritime Organisation International Convention for the Prevention of Pollution from Ships, London, 1973/1978 (commonly known as MARPOL 73/78). International Convention on Civil Liability for Oil Pollution Damage, 1969 and 1992 (CLC 69; CLC 92). Agreement between the Government of Australia and the Government of Japan for the Protection of Migratory Birds and Birds in Danger of Extinction and Their Environment (commonly referred to as the Japan Australia Migratory Bird Agreement or JAMBA). Kyoto Protocol Montreal Protocol on Substances that Deplete the Ozone Layer Protocol to International Convention on the Prevention of Marine Pollution by Dumping of Waste and Other Matter, 7 November 1996 (previously known as the London Dumping Convention). Agreement between the Government of Australia and the Government of the Republic of Korea on the Protection of Migratory Birds (commonly referred to as the Republic Of Korea Australia Migratory Bird Agreement or ROKAMBA). The Convention on International Regulations for Preventing Collisions at Sea 1972 (COLREGS). UNCLOS. United Nations Framework Convention on Climate Change Australia-Indonesia Memorandum of Understanding 1974 (MoU 74). Australian and New Zealand Guidelines for Fresh and Marine Water Quality 2000.