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Stage 2 CSG water monitoring and management plan

1.0 Stage 2 CSG water monitoring and management plan

1.1 Introduction
Coal seam gas has been produced in Queensland for more than 10 years and accounts for about 80% of all gas consumed in the State. QGC is expanding its existing CSG operations through development of the Queensland Curtis LNG Project (the QCLNG Project). The QCLNG Project is developing coal seam gas in the Surat Basin in southern Queensland to supply gas to export and domestic markets (refer Figure 1). QGC, a wholly-owned subsidiary of the BG Group, is drawing on its own extensive CSG expertise as well as the wider group's international liquefied natural gas (LNG) experience to develop the world's first unconventional LNG facility. The process of extracting coal seam gas from the Walloon Coal Measures (WCM) deep underground produces water which, when treated, can be beneficially used by local farmers, industry and communities. Central to the project's success is ensuring that the integrity of the Great Artesian Basin (GAB), of which the Surat Basin is a part, is maintained. To this end, QGC has made a firm commitment to geological and hydrogeological data gathering, analysis, modelling and monitoring and the establishment of environmentally sustainable water management strategies around CSG operations. This Stage 2 WMMP outlines QGC's approach and commitment to water monitoring and management for the QCLNG Project. It is based on existing and new scientific information and approach. The Stage 2 WMMP: Highlights those tasks completed and started since project approval (October 2010) Summarises key findings from data collected and interpreted to date Sets out a schedule of tasks, delivery mechanisms and target completion dates (i.e. a plan) for SEWPAC to assess compliance against relevant approval conditions.

1.1.1 Goals and objectives

QCLNG's success rests fundamentally on maintaining the long-term integrity of the GAB, ensuring minimal impact on the sustainability of local and regional ground and surface water resources and mitigating impacts on ecological systems considered to be MNES at springs associated with GAB strata. To achieve these objectives, QGC's strategy is: Developing robust water management tools Establishing an extensive monitoring network Calculation of early warning signals and response actions Quantifying and managing potential risks and developing response strategies Implementation of responsible CSG water management and beneficial use options.

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Note: Every effort has been made to ensure this information is spatially accurate. The location of this information should not be relied on as the exact field location. "Based on or contains data provided by the State of Queensland (Department of Environment and Resource Management) 2012. In consideration of the State permitting use of this data you acknowledge and agree that the State gives no warranty in relation to the data (including accuracy, reliability, completeness, currency or suitability) and accepts no liability (including without limitation, liability in negligence) for any loss, damage or costs (including consequential damage) relating to any use of the data. Data must not be used for direct marketing or be used in breach of the privacy laws."

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Figure 1 The QCLNG gas field project area

Throughout this document, reference is made to results generated by QGCs GEN2 groundwater model. However, the Queensland Water Commission's (QWC) Underground Water Impact Review (UWIR) is due for formal release in October 2012 and will include an updated groundwater model which addresses cumulative impacts. Upon formal release of the UWIR and finalisation of associated legal arrangements regarding access to model results, QGC will update the predictions contained in this Stage 2 Water Monitoring and Management Plan.

1.2 QCLNG Snapshot

The QCLNG Gas Field Approval (EPBC 2008/4398) authorises the project area which includes the following petroleum tenures: Authority to Prospect (ATP): 574, 610, 621, 632 (portion of), 647, 648, 651, 676 and 768 (portion of) Petroleum Lease (PL): 179, 201, 228, 229, 171,180, 211, 247 Petroleum Lease Application (PLA): 212, 257, 259, 261, 262, 263, 273, 274, 275, 276, 277, 278, 279. The application, granting and conversion of petroleum lease applications is an ongoing process with the Queensland Department of Natural resources and Mines (DNRM). The list below represents all changes that have occurred with QGC tenures within the overall approved QCLNG Gas Field Approval (EPBC 2008/4398) to the 17 September 2012 ATPs converted to PLs and thereby no longer exist: ATP 610 (covered by PL 247), ATP 651 (covered by PLs 276 and 277) PLAs granted to PL: 212, 257, 263, 273, 274, 275, 276, 277, 278, 279, 398, 442, 466, 474 PLAs withdrawn: 259 (covered by grant of PL 273) PLAs applied for over ATP areas held by QGC (PLA): 392 and 393 (portion of ATP 574), 398 and 399 (portion of ATP 768), 443, 458, 459, 461 and 472 (portion of ATP 676) 442, 466 and 474 (portion of ATP 648) Petroleum Facility Licence Applications (PFL): PFL 19, PFL 22 Petroleum Facility Licence Grants (PFL): PFL 19, PFL 22. The QCLNG gas fields project area is shown at Figure 1. The approval conditions allow for the development of up to a maximum of 6,000 production wells and impacts related to gas field development over a 50-year period to 31 October 2060. It should be noted that approximately 2,000 wells will be in production at any one time, with new wells progressively brought on-line to replace maturing wells, which will be decommissioned. The gas fields component of the project covers 468,000 ha within the Walloon Fairway of the Surat Basin. Project activity is located on land between the towns of Taroom, Wandoan, Condamine, Tara, Chinchilla and Dalby.

Works will be carried out as a single stage of development and comprises: Up to 6,000 gas production wells with around 2,000 wells scheduled by mid-2014. The balance of wells will be phased in to replace declining wells over the life of the project Installation of wells and associated well pad surface equipment including wellhead separators, wellhead pumps, wellhead flares, telemetry devices and metering stations Installation of gas gathering systems (High Density Polyethylene (HDPE) and steel pipes) Completion of field compressor stations and central processing plants, including dehydration facilities, substations and power lines Development of access tracks, borrow pits, warehouses, construction and operations camps, offices and telecommunications Construction of water gathering lines, trunklines, ponds, treatment facilities and brine storage ponds Preparation of the necessary infrastructure for the beneficial use of treated CSG water Installation of above-ground 132 kv power lines to connect the new central processing plants to third party substations. Also, installation of underground and above-ground 33 kv power lines connecting central processing plant substations to field compressor stations and Water Treatment Plant substations Development of accommodation camps for construction and operations people, along with warehouses, lay down areas, communication towers and fibre optic cabling. QGC will develop the acreage outlined in Figure 1 with most blocks contributing to QCLNG production in 2014. Therefore, QGC has developed an holistic water monitoring and management plan for the entire project life to responsibly monitor and manage CSG water for the whole acreage. For all key activities a base plan has been selected and each base plan is described in the Stage 2 WMMP. If alternative strategies with better outcomes are proven over time, QGC will apply for revision of the plan. This Stage 2 WMMP covers the first stage of major gas field development and will be revised and updated no later than the commissioning of the LNG Plant, expected to be December 2013.

1.3 Addressing Regulatory Requirements

QCLNG gas field development was referred to the Federal Minister for the Environment under EPBC referral 2008/4398. The Minister approved the action on 22 October 2010, subject to certain conditions, including the submission of this Stage 2 WMMP by 23 April 2012. The implementation of the approved Stage 2 WMMP must not be later than 22 December 2012.

QGC will develop about 6,000 CSG wells. QGC works with landholders, traditional custodians of the land and environmental scientists before final decisions on site selection are made.