Environment

Protecting the environment is essential to the way AGL does business. That's why, here at AGL, a health, safety and environment approach is integrated into all business decisions and processes. It involves everyone and relates to everything AGL does.

AGL engaged AECOM Australia Pty Limited (AECOM), a leading environmental services company, to undertake a range of environmental studies to assess the potential environmental impacts of the proposed Northern Expansion of the Camden Gas Project. After initial consultation with councils, community groups, neighbours and government agencies, the key findings of the major studies confirm that the Project will not have a significant environmental impact. Some details of the investigations follow:

Noise

Ambient noise surveys were conducted to characterise and quantify the acoustical environment in the area surrounding the Surface Project Area. A background monitoring survey which included unattended continuous monitoring and operator attended monitoring was undertaken at five residential locations in the vicinity of the proposed well surface locations. Existing noise was typical of a suburban environment with noise from traffic, domestic activity, birds and animals evident during the noise surveys conducted.

It was determined that operational noise emission levels from the 12 proposed well locations are predicted to meet the relevant Project specific noise goals at all existing residential dwellings.

It is anticipated that with recommended noise mitigation measures in place for each well site that operations would not be unduly restricted as a result of noise emission levels and that the relevant construction noise goals can be achieved at all residential and other noise-sensitive locations.

Ecology - Flora and Fauna

A flora and fauna assessment was undertaken in respect of the 12 proposed well surface locations, in order to identify threatened species within the 200m environmental envelopes of proposed works. Additionally, 25 meters both sides of all access roads and gathering lines were assessed, so that significant flora or habitat areas could be avoided. The assessment included field investigations which were undertaken in over several months within the boundaries of the Surface Project Area only.

The field investigations focussed on proposed well surface locations, gathering lines and access road locations. The assessment identified that the potential impacts of the Project in terms of flora and fauna.

A range of mitigation measures have been recommended in order to manage and minimise the potential impacts in this regard. It is anticipated that the ecological impacts related to the project components would be minimal as final well surface locations would be selected to avoid areas of significant vegetation.

Aboriginal Heritage

A flora and fauna assessment was undertaken in respect of the 12 proposed well surface locations, in order to identify threatened species within the 200m environmental envelopes of proposed works. Additionally, 25 meters both sides of all access roads and gathering lines were assessed, so that significant flora or habitat areas could be avoided. The assessment included field investigations which were undertaken in over several months within the boundaries of the Surface Project Area only.

The field investigations focussed on proposed well surface locations, gathering lines and access road locations. The assessment identified that the potential impacts of the Project in terms of flora and fauna.

A range of mitigation measures have been recommended in order to manage and minimise the potential impacts in this regard. It is anticipated that the ecological impacts related to the project components would be minimal as final well surface locations would be selected to avoid areas of significant vegetation.

Subsidence

As part of the Stage 2 expansion proposal, AGL commissioned Mine Subsidence Engineering Consultants Pty Ltd (MSEC), to investigate the potential for the proposed CSG extraction to result in subsidence at the surface.

The report concluded that "the proposed extraction of coal seam methane at Camden will not create large voids in the strata, nor leave remnant pillars. The strata within the coal measures are not unconsolidated and in fact are hard and well consolidated rocks. The conditions for significant subsidence to occur are not therefore present and it is concluded that the potential for subsidence to occur as the gas is extracted is almost negligible."

The following report was prepared on completion of that study:

• AGL Camden Subsidence Report

How do we operate in the area?

• Establishment: A compound area is constructed to enable works to take place in a safe, controlled way. Once completed, the area is rehabilitated and reduced to the production footprint.
• Production: When producing gas, our well surface locations are typically less than 20 metres square. They will be designed and landscaped to fit in with the surrounding community and environment and will be as unobtrusive as possible.
• Maintenance: Inspections are routinely undertaken, but major maintenance is usually needed less than once a year.
• Rehabilitation: When the gas has been drained the equipment is removed and the site.

What is an Environmental Assessment?

An Environmental Assessment is a formal submission to the Department of Planning. It is the Government’s way of assessing the project to ensure it meets strict NSW Government standards and that it will not have significant environmental impacts.
An Environmental Assessment is made up of:

• A formal description of the project,
• An assessment of the likely effects of the project on the physical, social and economic environment,
• Identification of measures to be implemented to mitigate impacts,
• An evaluation of alternatives and justification for the project,
• An assessment of the cumulative impacts of the project,
• Specialist studies have been undertaken to address a range of environmental issues associated with the proposed works, including an assessment of noise, hazard and risk. AGL anticipates that works within the Camden North project area will start in the first half of 2011, subject to government approval.