Arrow Energy Surat Gas Project EIS

http://www.arrowenergy.com.au/page/Community/Project_Assessm ent_EIS/Surat_Gas_Project_EIS/ E Book link - http://www.qikpress.com.au/Volume-1---EIS/6015cc98ad42-4f56-9fdb-9fa400b47867

Written comments in relation to the EIS are invited from any person within the submission period. The submission period starts Friday, 16 March 2012 and ends on Thursday, 14 June 2012. Submissions should be addressed to: The Chief Executive Attention: The EIS Coordinator (Surat Gas Project) Statewide Environmental Assessments Department of Environment and Resource Management GPO Box 2454 Level 8, 400 George Street BRISBANE QLD 4001 or by email to eis@derm.qld.gov.au. The chief executive will accept all properly made submissions and may accept written submissions even if they are not properly made. A properly made submission is one that:
• • • • •

is written is signed by or for each person who made the submission states the name and address of each signatory is made to the chief executive is received on or before the last day of the submission period

For further information regarding the EIS process for this proposal, contact the EIS coordinator by calling 13 GOV (13 74 68) or emailing eis@derm.qld.gov.au.

5.2.1 Production Wells
Throughout the life of the project (35 years expected), about 7,500 production wells will be drilled across the project development area at a rate of approximately 400 wells per year.

Figure 1.2 portrays the expected number of proposed production wells in each of the five development regions over the life of the project. Production wells will generally be 300 m to 750 m deep depending on the depth of the coal seams. Extremely shallow or deep coal seams typically do not contain economically viable coal seam gas reserves. Arrow proposes to install production wells on an 800-m-grid spacing. This equates to an indicative density of one well per 65 to 130 ha (160 to 320 acres). Based on a 65-ha-block-centred layout (approximate 800-m-grid spacing), this equates to indicative production well densities of:
• • •

Forty wells in an area 5 km by 5 km. One hundred fifty wells in an area 10 km by 10 km. Three hundred wells in an area 14 km by 14 km.

Wells do not need to be placed on a precise grid and may be spaced as far apart as 1,500 m depending on such constraints such as environmental and social values, economics, reservoir characteristics and existing land use. As gas production ramps down, in-fill wells may be drilled between existing well locations to improve gas recovery and production. The life of a production well will vary in accordance with the density of wells, the gas extraction rate and the production performance of the well. Production performance is predominantly dependent on the physical characteristics of the coal. Modelling of well life is based on probabilities and averages and Arrow’s current modelling suggests an average well life of 15 to 20 years. Surface facilities associated with a production well include a water pump, a generator and separation equipment. Construction and operation of production wells are described in Section 5.5, Construction, and Section 5.6, Operations and Maintenance, respectively.

5.2.4 Water Treatment and Storage Facilities
Coal seam gas production often requires the removal of large quantities of water to depressurise coal seams to allow the gas to flow. Dewatering can take weeks or up to several years, depending on the characteristics of the coal seam. Typically, Arrow has observed a six-month timeframe to dewater a production well before gas will flow and 18 months for a well to reach peak gas production. A typical gas versus water production curve is shown in Figure 5.7. Coal seam gas water production across the project development area is variable but is estimated to average 22 GL per annum and peak at about 43 GL per annum over the life of the project. The predicted annual average coal seam gas water production rates over the life of the project are presented in Figure 5.8. Arrow maintains water balance models for long-term planning and management of coal seam gas water in connection with its existing production wells in the Walloon Coal

Measures. The modelling is reviewed and updated quarterly in alignment with the production-forecasting schedule. Such models and modelling will be applied to the planning and management of coal seam gas water across the Surat Gas Project development area. The coal seam gas water quality from the Walloon Coal Measures can vary from fresh water (water with very few other elements) to saline or highly turbid water. Coal seam gas water from the Surat Basin typically has the following characteristics:
• • • • •

pH of approximately 7 to 11. Salinity in the range of 3,000 to 8,000 mg/L (i.e., brackish) and total dissolved solids (TDS) including sodium salts, bicarbonate salts and others. Suspended solids from the well that will usually settle out over time. Other ions including calcium, magnesium, potassium, fluoride, bromine, silicon and sulphate (as SO4). Trace metals and low levels of nutrients.

Graph – volume of CSG water produced by project http://www.qikpress.com.au/Books/MXbvkDrXtEG7vJbAQNilA/OOxUtVkiLEW4WZ-kALQ-PQ/mMwVYEKtVk-f25kALR4Zw/Images/V1_F5_8.pdf Gas & water production curve – http://www.qikpress.com.au/Books/MXbvkDrXtEG7vJbAQNilA/OOxUtVkiLEW4WZ-kALQ-PQ/mMwVYEKtVk-f25kALR4Zw/Images/V1_F5_7.pdf Infrastructure required for the treatment and storage of coal seam gas water includes:
• • • •

Feedwater and treated water storage dams. Treatment facilities for coal seam gas water. Brine storage dams. Treated coal seam gas water and brine distribution infrastructure.

Water Treatment Facilities
Arrow has undertaken a comprehensive assessment to evaluate the various technologies available for the treatment of coal seam gas water. At the time of writing, reverse osmosis had been selected as the treatment technology of choice; however, Arrow will continue to investigate new and emerging technologies to evaluate their applicability to operations based on economics, energy consumption, brine recovery and environmental footprint of the technology. Each integrated processing facility will contain a reverse osmosis water treatment plant with 30 to 60 ML/d of modular water treatment capacity (Plate 5.2).

Brine Storage Dams
The reverse osmosis treatment of water will produce concentrated brine. Each integrated processing facility will contain two 1,440-ML brine dams. Brine dams are considered regulated dams and will be constructed accordingly. Map of project showing processing facilities, Goondi – Wandoan: http://www.qikpress.com.au/Books/MXbvkDrXtEG7vJbAQNilA/OOxUtVkiLEW4WZ-kALQ-PQ/mMwVYEKtVk-f25kALR4Zw/Images/V1_F5_11.pdf

10 Greenhouse Gas Emissions
10.1.3 Queensland Strategies and Schemes
Natural gas has been identified as a key transitional fuel source while renewable energy and clean coal technologies are developed. The Queensland Government’s rationale for increasing electricity sourced from natural gas is that, in comparison to coal-fired generation, natural gas produces approximately half the emissions per unit of electricity generated.

10.3.1 Existing Environment
Australia’s greenhouse gas emissions increased by 9.3% between 1990 and 2007. Queensland has the highest per capita emissions of all Australian states.

11 Climatic Adaptation
This chapter provides a summary of the existing climate and climate extremes in the vicinity of the project development area in terms of rainfall, air temperature, wind and other factors that potentially affect the management of the project. An assessment of the project’s vulnerabilities to climate change is also provided. Prediction of climate change and its effect have inherent uncertainties and best efforts to incorporate adaptation to climate change are included.

11.4.1 Rainfall, Evaporation and Drought
Predicted changes relating to reduced rainfall, higher rates of evaporation and subsequently more prevalent drought conditions could potentially affect the Surat Gas Project through:
• • •

Increased bushfire risk arising from drier conditions caused by decreased rainfall, increased evaporation and higher temperatures. Increased evaporation rates from dams, which are not expected to impact the project adversely. Increased costs associated with purchase of potable water as water supplies are affected and water infrastructure becomes more costly.

11.4.2 Air Temperature
The predicted increase in global temperatures for the three scenarios developed as part of the Garnaut review ranges from 2°C to 3.5°C by 2070. Predictions specific to the project development area, however, show potential for a 4.6°C increase in air temperature over the next 60 years, with the potential for:

11.4.3 Severe Weather Events
The Garnaut review predictions for the patterns of extreme weather events that have potential impact on the project include:
• • • •

Increased intensity of cyclones and storms. Increase in the number of days with extreme fire weather. Stronger winds arising from more frequent and severe weather events, which could increase wind shear stresses on the production facilities. More frequent flood events.

11.6 Avoidance, Mitigation and Management Measures
A proactive approach will be taken to ensure that effects of climate change are considered in the planning and design, construction, operations and decommissioning phases of the project.

Appendix D - GHG 1.2 Arrow Surat Gas Project
The conceptual Surat Gas Project design presented in the environmental impact statement (EIS) is premised upon peak gas production from Arrow’s Surat Basin gas fields of approximately 1,050 TJ/d. The peak gas production comprises 970 TJ/d for LNG production (including a 10% fuel gas requirement for facility operation) and a further 80 TJ/d for supply to the domestic gas market. Infrastructure for the project is expected to comprise:
• • • •

Approximately 7,500 production wells drilled over the life of the project at a rate of approximately 400 wells drilled per year Low pressure gas gathering lines to transport gas from the production wells to production facilities. Medium pressure gas pipelines to transport gas between field compression facilities and central gas processing and integrated processing facilities. High pressure gas pipelines to transport gas from central gas processing and integrated processing facilities to the sales gas pipeline.

Water gathering lines (located in a common trench with the gas gathering lines) to transport produced water from production wells to transfer, treatment and storage facilities. Approximately 18 production facilities across the project development area expected to comprise of six of each of the following:
o o o

Field compression facilities. Central gas processing facilities. Integrated processing facilities.

A combination of gas powered electricity generation equipment that will be colocated with production facilities and/or electricity transmission infrastructure that may draw electricity from the grid (via third party substations).

1.2.1 Field Compression Facilities
Field compression facilities will receive gas from production wells and are expected to provide 30 to 60 TJ/d of first stage gas compression. Compressed gas will be transported from field compression facilities in medium pressure gas pipelines to multistage compressors at central gas processing facilities and integrated processing facilities where the gas will be further compressed to transmission gas pipeline operating pressure and dehydrated to transmission gas pipeline quality. Produced water will bypass field compression facilities.

6.2 Greenhouse Gas Emissions Intensity of Coal Seam Gas
The most significant source of greenhouse gas emissions associated with the Arrow Surat Gas Project is the use of gas by end-users for energy production (scope 3 for this project). Electricity sourced from gas has a significant advantage over other fossil fuels with respect to greenhouse gas emissions. The majority of Australia’s electricity is currently produced by coal-fired power stations. Each unit of electricity generated from gas produces approximately 50 per cent lower full-cycle greenhouse gas emissions than conventional coal-fired electricity. Full cycle emissions account for the emissions associated with the extraction, production and transport of the fuel, and the emissions associated with combustion (Figure 2).

Appendix F - Agriculture 6 Proposed development infrastructure and activities
This section is derived from information supplied by Arrow and its representatives.

6.1 Pilot wells

Pilot wells comprise five wells drilled in a diamond-shaped arrangement with each well about 200 m apart and a single well located in the centre. Where required to confirm coal seam gas yields, additional pilot wells may need to be drilled at approximately 10 to 20 km intervals in priority exploration areas.

6.2 Production wells
Approximately 7,500 production wells and associated gas and water gathering infrastructure will be installed over the life of the Project. Wells will be drilled at a rate of approximately 400 wells per year. Gas field design will seek to arrange approximately 10 wells around common infrastructure including access tracks and gathering systems thereby reducing the extent of affected land. Typically, wells will be between 700 m and 1,500 m apart. This flexibility in their placement, including a minimum 200 m from any sensitive receptor, allows yields to be optimised and land use activities to be taken into consideration in siting the wells. Site preparation may require earthmoving equipment such as graders, excavators and bulldozers, depending on the nature of the site. Production well drilling will require a 50 t truck-mounted drilling rig or hybrid (coil) rig, casing trucks, mud tanks, huts and water trucks. The drilling lease for a standard rig is 70 m by 70 m. The drilling lease for a hybrid rig will be 85 m by 85 m. Additional track works may be required where a hybrid rig is used. Surface tank collection of drilling mud will be adopted on black soils in accordance with Arrow’s commitments. In other areas, pits may be constructed for water and drilling mud. Gas-engine generators (ranging from 3 to 8 L capacity) will be used to supply power to production wells for dewatering pumps and ancillary equipment until the gas free-flows (up to 6 months). Mufflers will be installed to reduce noise. Additional options are also being considered to power the well head dewatering pumps and ancillary equipment, such as electrical connections (Refer Section 6.6 Electricity Transmission Lines). On completion of drilling, the well site will be partially rehabilitated to a nominal 10 m by 10 m area that will be fenced to exclude stock and unauthorised access. Well production life is estimated to be 15 to 20 years. Upon decommissioning, wells will be capped, plugged and abandoned in accordance with all applicable state and federal legislative requirements.

6.3 Low pressure pipelines
A mix of 100 mm to 630 mm high-density polyethylene (HDPE) pipe and associated infrastructure (low point drains and high point vents) will be installed to a minimum depth below surface of 750 mm to top of pipe. Agreement will be made with the landowner on the final depth of burial to minimise risk of damage to infrastructure and disruption to other land uses.

An average of 1,100 m of HDPE pipe for gas and 1,100 m of HDPE pipe for water gathering lines is assumed per production well, generally located in the same trench until reaching the compression or water treatment facility site boundary. A typical 15 m right of way is required for gathering line installation, although this may range up to 25 m in practice. For areas of environmental sensitivity, the right of way can be narrowed (through the area of sensitivity), however where multiple larger 400 mm to 630 mm HDPE pipelines are installed in parallel this will require a 20 m right of way.

6.4 Medium pressure pipelines
Medium pressure gas pipelines will be constructed of a lightweight, strong, plastic composite, glass (reinforced epoxy) or lined steel pipe and have a minimum depth of burial to top of pipe of 750 mm. Agreement will be made with the landowner on the final depth of burial to minimise risk of damage to infrastructure and disruption to other land uses. Gas from field compression facilities is saturated with water. This water often collects in low points along the pipelines. This pooling of water requires the pipelines to be drained and pigged (cleaned) on a regular basis to ensure unrestricted gas flow. Approximately 15 to 25 km of medium pressure gas pipelines will be required to link field compression facilities to the inlet of central gas processing or integrated processing facilities. It is likely that coal seam water gathering lines will be located in the same easement as the medium pressure gas pipelines. A right of way of between 20 m and 30 m is likely to be required for medium pressure gas pipeline installation. For areas of environmental sensitivity, the right of way can be narrowed for short distances.

6.5 Access tracks
The extent of likely disturbance due to the construction of access tracks can be readily estimated. Where possible, Arrow proposes to use or upgrade existing access tracks in consultation with the landholder to minimise the need to construct additional access tracks. Arrow is proposing to construct permanent all weather access tracks only to significant facilities, such as integrated processing facilities and compressor stations. The disturbance would be related to the initial forming of the track, laying of track surface material, installation of drainage works and the conduct of run-on and runoff water in and around the tracks.

6.6 Electricity transmission lines
The base case being considered in the EIS is local generation of the electricity to power project requirements at both the well head, and facilities. One of the options being

considered during the design process is importing power from the Queensland electricity grid, which would require Arrow major facilities (IPFs, CGPFs and FCFs) to be to be connected to the network service provider substation by a 132 kV doublecircuit overhead line with composite insulators and an optical fibre ground wire (earth wire). A typical configuration would have a single double-circuit pole, vertical conductor configuration with line post insulation and an optical fibre ground wire. The proposed route, including the location and spacing of poles would be optimised during detailed design. The typical easement width required for overhead lines will be 45 to 60 m and the number of suspension poles versus strain poles will depend on the line route. Vegetation on the easement will be cleared in accordance with the applicable electricity line safety clearance requirements. Where possible, it is proposed to use existing formed tracks to access powerlines (e.g. to service well heads) to minimise environmental disturbance.

7 Potential impacts to agricultural enterprises
Potential impacts of the proposed development common to all elements of the proposed activities are:
• • • • • • •

soil profile function; machinery operations; specialist operations; irrigation; crop losses; changes to overland flow patterns; and associated aggregate impacts.[35]

Coal Seam Gas Water Management Options (Ch5 main report)
Although coal seam gas water is considered a waste under the Environmental Protection Act 1994 (Qld), the government may approve its use as a 'resource' on a case-by-case basis if the water has a beneficial use that would negate the need for its disposal. When used beneficially, coal seam gas water ceases to be defined as a waste. Wastes generated during the operation of water treatment and storage facilities include filters, brine, water treatment chemicals and chemical containers. The management options presented below apply to treated and untreated water. Untreated water may be suitable for any of the beneficial use options identified in Figure 5.17, depending upon the water quality requirements of the end user.

Investigations indicate that there is limited demand for the beneficial use of untreated coal seam gas water in the project development area.

Substitution of Allocations
Arrow’s preferred approach is to beneficially use coal seam gas water by substituting existing water allocations in the area, i.e., the volumes of groundwater and surface water currently extracted by third parties in accordance with existing allocations will be replaced with coal seam gas water provided by Arrow. The strategy proposes substitution of water allocations for the duration of the project, until the production of coal seam gas water ceases. Arrow has commenced discussions with relevant regulatory bodies regarding the appropriate legislative framework that would facilitate this component of Arrow’s Coal Seam Gas Water Management Strategy. It is expected that the third-party users will accept responsibility (legally and practically) for the impacts of their use of the water.

New Uses
Over the course of the project, it is anticipated that new opportunities for use of treated and untreated water will emerge and be investigated.

Injection
The benefits of injecting water are to offset the impacts of groundwater depressurisation and to provide a disposal option for any water that cannot be accommodated through beneficial use. Arrow conducted an injection feasibility study in 2010 and is preparing environmental authority applications to conduct shallow and deep aquifer injection trials. The purpose of the trials is to identify the volumes and rates of water that Arrow can sustainably inject. An injection trial would typically run for 12 months including preparation, data collection and data evaluation. Initial trials would involve drilling a single injection bore into each target aquifer. The bores will be used to collect geological data and characterise the water geochemistry of those aquifers. Further works will be required to define the extent and feasibility of injection over the project development area. The Surat Gas Project EIS assumes that the legislative framework to enable injection of coal seam gas water into shallow and deep aquifers will be developed.

Disposal to Watercourses
Disposal to watercourses will be considered in the event that beneficial uses of coal seam gas water are temporarily unavailable or the demand for water decreases and alternative disposal options are required to maintain dam integrity and safety, e.g., due to adverse climatic conditions such as prolonged rainfall or severe storms.

Coal seam gas water may be discharged, subject to holding or obtaining relevant approvals, to watercourses in a controlled manner, taking the sensitivity of the receiving watercourse into consideration. Appropriate monitoring will be required to ensure the released water adequately dilutes and does not cause any adverse effects on the receiving aquatic environment. At this stage it is anticipated that discharge to watercourses will only be conducted under emergency situations.

Ocean Outfall
Disposal of coal seam gas water to the sea via an ocean outfall pipeline is recognised as a feasible option, however it is not the preferred option. In the event that preferred coal seam gas water management options do not eventuate, the feasibility of an ocean outfall, as an emergency or alternative disposal option for coal seam gas water, will be evaluated This evaluation will be conducted at the time of detailed design of the field and facilities.

Beneficial Uses of Coal Seam Gas Water
Implementation of the proposed coal seam gas water management options will result in the distribution of coal seam gas water to the following beneficial uses:

Brine Management Options
Brine is a significant by-product of the water treatment process, which also requires specific measures to manage its storage, use and/or disposal. Assuming an average salt concentration of 4,500 mg/L, Arrow expects that treatment of coal seam gas water will generate in the order of 4.5 t of salt per megalitre of coal seam gas water. Arrow will continue to monitor coal seam gas water quality as the development progresses; however, development is planned with the assumption that similar water quality and salt concentrations will be observed across the entire project development area. Figure 5.17 displays the brine management options and the expected average and peak annual volumes of salt production. Although beneficial use is the preferred option for brine management, for the purposes of this impact assessment it is assumed that brine will be stored in dams and disposed to a suitably licenced landfill.

Selective Salt Precipitation
The concentrated brine produced through water treatment is comprised of sodium chloride (salt), carbonate and bicarbonate salts (soda ash). Arrow is consulting commercial enterprises to investigate viable opportunities for the beneficial use of brine. As part of this process, Arrow will commission selective salt precipitation trials to:

Understand the chemical composition of the brine.

• •

Identify methods to enhance precipitation of the brine. Identify viable chemical processes to transform the brine into commercial products.

Brine Injection
Should Arrow identify an appropriate formation during the exploration phase of the project, disposal of brine via injection will be considered. A criterion for injection is finding a target formation where the water quality is lower than that of the brine. To date, no such target formations have been identified.

Ocean Outfall
Disposal of brine to the sea via an ocean outfall pipeline is a feasible option that is being investigated by Arrow. As with coal seam gas water the viability of an ocean outfall will be evaluated at the time of detailed design of the field and facilities.

Suitably Licenced Landfill
An assessment of waste disposal facilities indicates that suitably licenced facilities exist in the region. It is assumed that other commercial operations will be developed to capitalise on this waste stream. Arrow will develop appropriate storage capacity to manage brine until such time as permanent disposal solutions are operational. The closest currently available suitably licenced waste disposal facility is located at Swanbank, near Ipswich. This EIS has assumed that all brine concentrate will be trucked to Swanbank.

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