TECHNICAL EIA GUIDANCE MANUAL - ELAW

1 Government of India Final Draft Prepared forMinistry of Environment and Forests TECHNICAL EIA GUIDANCE MANUALFOROFFSHORE AND ONSHORE OIL & GAS EXPLORATION, DEVELOPMENT AND PRODUCTIONbyIL&FS Ecosmart LimitedHyderabadSeptember 2009 PROJECT TEAM Project Coordination Ministry of Environment & Forests Dr. (Mrs.) Nalini Bhat Advisor, Ministry of Environment and Forests Dr. (Mrs.) T. Chandni Director, Ministry of Environment and Forests Core Project Coordination Team IL&FS Environment Mr. Mahesh Babu CEO Mr. N. Sateesh Babu Vice President & Project Director Mr. Pavan Gopal Manager TECHNICAL Mr. Padmanabhachar. K Environmental Engineer Ms. Chaitanya Vangeti GIS Engineer Ms. Suman Benedicta Thomas TECHNICAL Writer Resource Person Dr. Y. R. Mehta Former Director, Gas Authority of India Limited Expert Core & Peer Committee Chairman Dr. V. Rajagopalan, IAS Principal Secretary Government of Uttar Pradesh Core Members Dr. R. K. Garg Former Chairman, EIA Committee Ministry of Environment and Forests Mr.

2 Paritosh C. Tyagi Former Chairman, Central Pollution Control Board Prof. Gautam Chairman, Central Pollution Control Board Dr. Tapan Chakraborti Director, National Environmental Engineering Research Institute Mr. K. P. Nyati Former Head, Environmental Policy, Confederation of Indian Industry Dr. Pandey Advisor, Ministry of Environment and Forests Dr. (Mrs.) Nalini Bhat Advisor, Ministry of Environment and Forests Dr. Subramaniam Advisor, Ministry of Environment and Forests Dr. B. Sengupta Former Member Secretary, Central Pollution Control Board Dr. R. C. Trivedi Former Scientist, Central Pollution Control Board Peer Members Dr. Hosabettu Former Director, Ministry of Environment and Forests Dr. B. D. Ghosh Director, Centre For High Technology Member Convener Mr. N. Sateesh Babu Project Director TECHNICAL EIA GUIDANCE MANUAL for Oil and Gas Exploration Industry September 2009 iTABLE OF CONTENTS 1. INTRODUCTION TO THE TECHNICAL EIA GUIDANCE MANUALS PROJECT 1-1 2.

3 CONCEPTUAL FACETS OF EIA 2-1 Tools for assessment and analysis 2-2 Tools for Action 2-5 Tools for Communication 2-9 Direct impacts 2-14 Indirect impacts 2-14 Cumulative impacts 2-15 Induced Impact 2-15 Criteria/Methodology to Determine the Significance of the Identified Impacts 2-16 3. ONSHORE AND OFFSHORE OIL & GAS EXPLORATION DEVELOPMENT & PRODUCTION 3-1 New significant discoveries 3-5 Exploration & production (E&P) data statistics 3-6 Industrial process 3-14 Raw material inputs and pollution outputs 3-25 Hazard identification 3-51 Hazard assessment and evaluation 3-54 Failure mode analysis 3-54 Preliminary hazard analysis (PHA) 3-55 Safety measures 3-58 Damage criteria 3-58 Consequence analysis 3-62 Purpose Project Implementation Additional Information Environment in EIA Context Pollution Control Strategy Tools for Preventive Environmental Management Objectives of EIA Types of EIA Basic EIA Principles Project Cycle Environmental Impacts Significance of Impacts Introduction Scientific Aspects Risk Potential in Bulk Storage and Handling of Hazardous Chemicals for Oil/Gas Drilling 3-51 Table of Contents TECHNICAL EIA GUIDANCE MANUAL for Oil and Gas Exploration Industry September 2009 General description of major statutes 3-63 Industry specific requirements 3-63 4.

4 OPERATIONAL ASPECTS OF EIA 4-1 Application for Prior Screening for Environmental Clearance 4-2 Siting Guidelines 4-3 Pre-feasibility Report 4-5 GUIDANCE for filling information in Form 1 4-6 Identification of Appropriate Valued Environmental Components 4-7 Methods for Identification of Impacts 4-7 Testing the significance of impacts 4-14 Terms of reference for EIA studies 4-15 EIA Team 4-27 Baseline Quality of the Environment 4-28 Significance of Impacts 4-31 Important Considerations for Mitigation Methods 4-38 Hierarchy of Elements of Mitigation Plan 4-39 Typical Mitigation Measures 4-40 Mitigation Measures on Special Environmental Issues 4-41 5. STAKEHOLDERS ROLES AND RESPONSIBILITIES 5-1 Summary of Applicable National Regulations Coverage of Offshore and Onshore Oil and Gas Exploration, Development & Production Industry under the Purview of Notification Scoping for EIA studies Environmental Impact Assessment Social Impact Assessment Risk Assessment Mitigation Measures Environmental Management Plan Reporting Public Consultation Appraisal Decision-making Post Clearance Monitoring Protocol EAC 5-3 Table of Contents TECHNICAL EIA GUIDANCE MANUAL for Oil and Gas Exploration Industry September 2009 iiiLIST OF TABLES Table 3-1.

5 Summary of the Exploration and Production Process ..3-24 Table 3-2: List of Pollutants Generated ..3-25 Table 3-3: Potential Material Outputs from Selected Oil and Gas Extraction Processes ..3-49 Table 3-4: Applicability of GOI Rules To Fuel/Chemical Storage ..3-52 Table 3-5: Properties of Fuels/Chemicals Used In Table 3-6: F&EI and TI Categories ..3-53 Table 3-7: Failure Mode Analysis ..3-54 Table 3-8: Preliminary Hazard Analysis for Process/Storage Areas ..3-56 Table 3-9: Preliminary Hazard Analysis for the Installation in Table 3-10: Damage Due to Incident Radiation Intensities ..3-59 Table 3-11: Radiation Exposure and Lethality ..3-59 Table 3-12: Damage Due to Peak over Table 3-13: Critical Concentrations for Chlorine ..3-61 Table 3-14: Scenarios Considered For MCA Table 3-15: Standards for Marine Disposal ..3-63 Table 3-16: Toxicity Limits ..3-63 Table 3-17: Onshore Discharge Table 4-1: Advantages and Disadvantages of Impact Identification Methods ..4-7 Table 4-2: Matrix of Impacts.

6 4-10 Table 4-3: List of Important Physical Environment Components and Indicators of Table of Contents TECHNICAL EIA GUIDANCE MANUAL for Oil and Gas Exploration Industry September 2009 ivTable 4-4: GUIDANCE for Accidental Risk Table 4-5: Mitigation Measures for Construction Phase ..4-40 Table 4-6: Mitigation Measures for Operation Phase ..4-40 Table 4-7: Onshore Activities - Environmental Protection Measures ..4-44 Table 4-8: Offshore Environmental Protection Measures ..4-50 Table 4-9: Structure of EIA Table 5-1: Roles and Responsibilities of Stakeholders Involved in Prior Environmental Clearance ..5-1 Table 5-2: Organization-specific Table 5-3: EAC: Eligibility Criteria for Chairperson/ Members / Secretary ..5-5 Table of Contents TECHNICAL EIA GUIDANCE MANUAL for Oil and Gas Exploration Industry September 2009 vLIST OF FIGURES Figure 2-1: Inclusive Components of Sustainable Figure 2-2: Types of Impacts ..2-14 Figure 2-3: Cumulative Impact ..2-15 Figure 3-1: Sedimentary Basins of India.

7 3-2 Figure 3-2: Categorization of Sedimentary Basins ..3-3 Figure 3-3: Sedimentary Basinal Areas ..3-4 Figure 3-4: Total Hydrocarbon Resources (as on 01-04-2006) ..3-7 Figure 3-5: Reserves and Accretion of Hydrocarbons ..3-8 Figure 3-6: Seismic Data ..3-9 Figure 3-7: Exploratory and Development Wells Drilled (2005-06)..3-10 Figure 3-8: Exploratory and Development Meterage Drilled (2005-06) ..3-11 Figure 3-9: Seismic Parties/ Vessels Deployed (2005-2006) ..3-12 Figure 3-10: Oil and Gas Production (2005-06) ..3-13 Figure 3-11: Seismic Surveys ..3-15 Figure 3-12: Drilling ..3-16 Figure 3-13: Cross-section of a Cased Well ..3-19 Figure 3-14: Typical Crude Oil/Gas Processing ..3-21 Figure 3-15: Concrete Gravity Platform ..3-22 Figure 3-16: Directional Drilling ..3-23 Figure 4-1: Prior Environmental Clearance Process for Activities Falling Under Category A ..4-2 Table of Contents TECHNICAL EIA GUIDANCE MANUAL for Oil and Gas Exploration Industry September 2009 viFigure 4-2: Approach for EIA Study.

8 4-27 Figure 4-3: Risk Assessment Conceptual Framework ..4-36 Figure 4-4: Comprehensive Risk Assessment - At a Glance ..4-37 Figure 4-5: Elements of Table of Contents TECHNICAL EIA GUIDANCE MANUAL for Oil and Gas Exploration Industry September 2009 viiACRONYMS AAQ Ambient Air Quality ADB Asian Development Bank APHA American Public Health Association B/C Benefits Cost Ratio BCM Billion Cubic Metre BIS Bureau of Indian Standards BOD Biological oxygen demand BOQ Bill of Quantities BOT Built-Operate-Transfer BLEVE (Boiling Liquid Expanding Vapour Cloud)

9 Or Vapour Cloud Explosion BPX By Product Exchange BTEX Benzene, Ethyl benzene, Toluene, and Xylenes CBM Coal Bed Methane CCA Conventional Cost Accounting CEA Central Electricity Authority CEAA Canadian Environmental Assessment Agency CER Corporate environmental reports CFE Consent for Establishment COD Chemical Oxygen Demand CP Cleaner Production CPCB Central Pollution Control Board CRZ Coastal Regulatory Zone CSR Corporate Social Responsibility CST Central Sales Tax DA Development Authorities DC Drill cuttings DfE Design for Environment DGH Directorate General of Hydrocarbons DO Dissolved Oxygen EAC Expert Appraisal Committee EBM Environmental Baseline Monitoring EcE Economic-cum-Environmental

10 ECI Environmental Condition Indicators EHS Environment Health and Safety EIA Environmental Impact Assessment EIS Environmental Information system Table of Contents TECHNICAL EIA GUIDANCE MANUAL for Oil and Gas Exploration Industry September 2009 viiiE&P Exploration and Production EPA Environmental Protection Agency EPI Environmental performance indicators EPR Extended Producers Responsibilities EMA Environmental Management Accounting EMS Environmental Management System EMP Environmental Management Plan ERPC Environment Research and Protection Centre ETP Effluent Treatment Plant FBP Final Boiling Point FCA Full Cost Assessment FE&TI Fire-Explosion and Toxicity Index FP Flash Point GEMS Global Environmental Monitoring System GGFR Global Gas Flaring Reduction GHF General Hazard Factors GHG Green House Gas GLC Ground-level Concentration GPH General Process Hazards GSPCL Gujarat State Petrochemicals Ltd H2S Hydrogen sulfide HPI Hydrocarbon Processing Industry HTL High Tide Line IL&FS Infrastructure Leasing and Financial Services ILO International Labour Organization IMD India Meteorological Department INFOTERRA Global Environmental Information Exchange Network of UNEP IVI