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MATINDOK GAS DEVELOPMENT PROJECT

BANGGAI REGENCY CENTRAL SULAWESI

ENVIRONMENTAL MANAGEMENT PLAN

(RKL)

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RKL Matindok Gas Development Project

STATEMENT LETTER

Here with undersigned :

Name : M. Indra Kusuma Position : General Manager

Address : Pertamina Building, Annex 9th floor

Jl. Merdeka Timur No. 1A, Jakarta 10110, Indonesia Telephone: (021) 3816570

Fax : (021) 3521992

As the Project Leader and person responsible for the Matindok Gas Development Project activities, here with state that :

1. We will implement the Environmental Management and Monitoring Commitment as presented in the RKL and RPL document of the Matindok Gas Development Project Activities, in Kabupaten Banggai, Central Sulawesi Province.

2. We will bear the responsibility and consequence in accordance to applicable regulations if it is proven that we are negligent in implementing the RKL/RPL as required.

Jakarta, August 2008 The undersigned, General Manager M. INDRA KUSUMA

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RKL Matindok Gas Development Project

Based on the results of the Environmental Impact Analysis (ANDAL) studies, the Matindok Gas Development Project - PT. Pertamina EP management plan (PT Pertamina EP-PPGM) is expected to potentially bring positive and negative impacts to the environment. The expected negative impact is to be prevented and overcame, thus the positive effects will be developed through environmental management. For that purpose, an Environmental Management Plan (RKL) has been put together. This plan is based on the following government regulations:

1. Decree of The Minister of Environment Affairs No. 11 of 2006, regarding Various Kind of Business Plan and/or Activities that must be completed with Environmental Impact Analysis (EIA).

2. Decree of The Minister of Environment Affairs No. 08 of 2006, regarding the Environmental Impact Analysis Compiling Guideline.

3. Decree of The Minister of Energy and Mineral Resources No. 1457K/38/MEM/2000, regarding the Technical Guidelines of the Mine and Energy Environmental Management. This Environmental Management Plan is to be used to manage and prevent negative impacts and develop the existing positive impacts, in order to maintain the quality of the environment in and around the Matindok Gas Development Project sites.

Jakarta, March 2008 General Manajer PPGM

M. Indra Kusuma

PREFACE

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RKL Matindok Gas Development Project PREFACE TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES 1.0 INTRODUCTION 1.1. BACKGROUND I-1

1.2. OBJECTIVES AND PURPOSE I-3

1.3. BENEFITS OF ENVIRONMENTAL MANAGEMENT I-3

1.4. SENSITIVE ENVIRONMENTAL ELEMENTS I-4

2.0 APPROACH TO ENVIRONMENTAL MANAGEMENT

2.1. TECHNOLOGICAL APPROACH II-1

2.1.1 Waste Management Technology II-1

2.1.1.1 Waste from Well Drilling Activities II-1 2.1.1.2 Waste from Construction Activities and Complex

Operations of Gas Processing Facilities (GPF) II-7 2.1.1.3 Waste from Pipeline Construction Activities II-9

2.1.2 Technology to Repair Road II-10

2.1.3 Technology of Pipe Installation in River Crossing Area II-10

2.1.4 Pipe Leak Detecting Technology II-10

2.1.5 Noise and Emmission Control II-11

2.1.6 Handling of used chemicals II-11

2.2 ECONOMICAL APPROACH II-12

2.3 INSTITUTIONAL APPROACH II-15

3.0 ENVIRONMENTAL MANAGEMENT PLAN

3.1 UPSTREAM III-1

3.1.1 Air Quality III-1

3.1.2 Noise III-3

. 3.2.3 Surface Water Quality III-3

3.2.4 Sea Water Quality III-5

3.2.5 Soil Erosion III-6

3.2.6 Disturbance in Drainage and Irrigation Systems III-7

3.2.7 Traffic Safety III-8

3.2.8 Road and Bridges Damage III-12

3.2.9 Traffic Smoothness III-14

3.2.10 Vegetation III-15

3.2.11 Wild Animals III-16

3.2.12 River Biota III-18

3.2.13 Marine Biota (Plankton, Benthos, Coral Reef) III-20

3.2.14 Land Ownership Pattern III-20

3.2.15 Business Opportunity III-23

3.2.16 Social Process III-24

3.2.17 Social Stratification III-27

3.2.18 Public Attitude and Perception III-28

TABLE OF CONTENTS

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EMP Matindok Gas Development Project I-1

Chapter-

1

I

NTRODUCTION

1.1 BACKGROUND

PT. PERTAMINA EP has planned to develop a gas field, which is located in Banggai Regency, Central Sulawesi Province; this is organized by the Team of Gas Development Project of Matindok (PPGM). By the time of document compilation, complying with the Law No. 22 of 2001 regarding Natural Gas and Oil, role of PT PERTAMINA has changed, whereas the management of Upstream Oil and Gas has been shifted to the Implementing Body (Badan Pelaksana) of Oil and Gas (BPMIGAS). According to the Law No. 22 of 2001 regarding Natural Gas and Oil, PT PERTAMINA (Persero) forms a subsidiary company that is PT PERTAMINA EP, which handles the activities of Upstream Oil and Natural Gas. PT PERTAMINA-EP is formed based on Notary Deed number 4 on 13 September 2005.

PPGM is an important project for oil and natural gas industries in Indonesia and will play important roles in maintaining and strengthening Indonesia’s position as the biggest exporter of LNG in the world. The development of PPGM will improve contribution of oil and natural gas sector in rendering foreign-exchange to the country and partly for substitution of domestic oil fuel. PPGM is expected to operate in the year 2009.

The Gas Development Project of Matindok is an activity of developing complete facilities, starting from producing natural gas from both explored wells and developed wells plan coming from 5 natural gas fields, including: gas field of Donggi, Matindok, Maleoraja, Sukamaju, and Minahaki. Later, the gas is channeled through pipes to the LNG refinery, in this case the Donggi-Senoro LNG or DSLNG which will then be transported through the harbor using LNG oil tankers.

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EMP Matindok Gas Development Project I-2

The gas production capacity from Matindok Blok is estimated ± 100 MMSFCD (gross), containing ± 850 bopd, and ± 2,500 bwpd of water production, with an expected 20 years of production based on the existing gas reserve and the result of economical studies for field development. The gas product contains ± 2.5% CO2, ± 3.000 ppm total sulfur and possibly other

elements. According to the enclosure letter of the State Minister of Environmental Affairs Decree No. 11 of 2006, regarding the Kind of Plans and/or Activity that must be completed with the Environmental Impact Assesment (EIA), this activity is obligated to compile an EIA because it exceeds the EIA/AMDAL minimum limit of 30 MMSCFD.

Therefore, the project proponents of the Gas Development Project of Matindok (PT. PERTAMINA EP-PPG) is obligated to perform EIA/AMDAL studies, because this activity is expected to have major and significant impacts to the environment. This EIA/AMDAL study is an effort to prevent and overcome negative impacts and develop positive impacts.

The positive impact on the environment from the gas development activities are the increase of natural gas producing regions, fulfiling public energy needs, and stimulating other business opportunities. Besides positive impacts, this activity is also unexpectedly bring negative impacts to the environment. According to the commitment and policy of HSE PT. PERTAMINA EP-PPGM and as their concern to the surrounding environment and in accordance to the commitment of PT. PERTAMINA EP-PPGM to conduct environmental-friendly activities, PT. PERTAMINA EP-PPGM will compile the Environmental Management Plan (RKL). This Management Plan is amongst the effort to handle and manage the environment in conducting the Matindok Gas Development Project in Banggai Regency, Central Sulawesi under the existing laws and regulations.

This Management Plan (RKL) is an important document not only to the project proponents but also to other sectors, including the Local Government and the community. This Management Plan is expected to support the success of the development of mine and energy and also to support environmental-friendly development in the region. This Management Plan can also enforce other sectors to participate in implementing environmental based development. By implementing the upstream and downstream business concept, the responsibility of the implementation of the environmental management activity is also split regarding to the concept explained in the ANDAL document. The upstream environmental management is fully the

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EMP Matindok Gas Development Project I-3

responsibility of PT Pertamina EP while the downstream environmental management is of Donggi-Senoro LNG (PT DSLNG).

1.2 OBJECTIVES AND PURPOSES

The objectives and purposes of the Environmental Management Plan are as follows:

a. To minimize and manage the negative impacts on the environment during the Matindok Gas Development Project activities in Banggai Regency, Central Sulawesi Province. b. To increase the positive impacts that arise due to the Matindok Gas Development Project

activities in order to expand the benefits.

c. Application for the legislative and government regulations of environmental management.

1.3 BENEFITS OF ENVIRONMENTAL MANAGEMENT

a. Project Proponent

1. Preserve all the project activities as planned.

2. Optimize building cost and operational project management. 3. Contribute to preserve environmental caring capacity of the project 4. Coordinate the environmental management.

b. Government/related institutions

1. Avoid the overlapping usage of natural resources 2. Avoid public social anxiety

3. Ensure safety and public order

4. Preserve socio economic culture in the society

5. As the input plan for competent agencies in compiling regional and national environmental management plans

6. Recognize the competence and responsibility of each agency 7. Cost efficiency for the environmental management.

8. Optimize the project capability for social, economic and culture of the community. c. Community

1. Released from negative impacts caused by the Matindok Gas Development Project in Banggai Regency, Central Sulawesi Province.

2. Make use of positive impacts caused by the Matindok Gas Development Program in Banggai Regency, Central Sulawesi Province.

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EMP Matindok Gas Development Project I-4 1.4 SENSITIVE ENVIRONMENTAL ELEMENTS

The definition of sensitive environmental elements is parts of environmental components that are likely to suffer basic changes due to a certain project activity.

In the 5th chapter of the PERTAMINA EP-PPGM ANDAL Document: Estimation of the

major and significant impact of every activity component of the Matindok Gas Development Project, Banggai Regency, Central Sulawesi Province in pre-construction, construction and drilling, production operation and post operation phase, is estimated towards each environmental component. The impacts of the environmental component expected to suffer basic changes due to the activities are categorized as a major and significant impact whether positive or negative.

The sensitive environmental elements of the Matindok Gas Development Project of Banggai Regency, Central Sulawesi are concluded as follows:

• Geo-physico-chemical Components

Air quality, noise, surface water quality, sea water quality, soil erosion, disturbance of drainage and irrigation systems, traffic disturbance including traffic smoothness, traffic safety, road and bridge damage and sailing safety.

• Biological Components

Abundance and variety of vegetation, wild animals, river biota and marine biota. • Social Components

Land ownership pattern, business opportunity, public income, social process, social stratification and public perception.

• Public Health Component

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EMPMatindok Gas Development Project II-1

Chapter-

2

E

NVIRONMENTAL MANAGEMENT

APPROACH

The environmental management program towards the environmental components that suffers basic changes (significant impact) whether positive or negative, caused by the Matindok Gas Development Project activities plan, is conducted in three approaches, which includes technological, economical, and institutional approaches in order to prevent and overcome negative environmental impacts, and develop positive environmental impacts. Prevention is an effort to prevent negative impacts from occurrance. This effort may include adjustments of process designs, or environmental-friendly choice of equipment. Whereas to overcome negative impacts is an effort to not allow the increase of the negative impacts or to minimize or eliminate the impacts when they arose.

Besides preventing and overcoming negative impacts, the environmental management program also includes development of positive impacts.

2.1 TECHNOLOGICAL APPROACH 2.1.1 Waste Management Technology 2.1.1.1 Waste from Drilling Wells Activities

A. Drilling Mud

The drilling mud used is water based mud and synthetic oil based mud made from crude palm oil (CPO). Both muds are non-toxic. The use of these non-toxic mud decreases the possibility of ground water contamination if there is rainwater flow from mud pit.

The impact of the development well drilling operation towards the water quality occurs in the operational phase. The source of the impact comes from the following activities: • Drilling waste, in the form of used drilling water, remains of drilling mud, and

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EMPMatindok Gas Development Project II-2

• Drilling water waste from washing of drilling equipment and rig floor when the activity takes place, estimated ± 2,916 m3 (90 days x 32.4 m3/day)

• The management of the used drilling mud or mud that has been repeatedly circulated into the drilling well causing it to cross the tolerance level of solid substance, unable to be removed using separating equipments (solids control). The decrease of mud from partial loss or total loss circulation in the formation while mud was circulated through the coverless annulus and in the pipe connection is estimated ± 10% of the total initial amount of mud, therefore the remains of the drilling mud in the drilling of the development well is ± 970.1 m3.

• Solid wastes, in the form of cuttings produced by the drilling process, estimated ± 538.9 m3, counted from the surface are as follows:

- Route 30” (0-30 m), produces 3.14 x (18 x 0.0254 m)2 x 30 m = 19.7 m3 amount of cuttings - Route 20” (30-600 m), produces 3.14 x (13 x 0.0254 m)2 x 570 m = 297.9 m3 amount of cuttings - Route 13 3/8” (600-1,500 m), produces 3.14 x (8.75 x 0.0254 m)2 x 900 m = 93,0 m3 amount of cuttings - Route 9 5/8” (1,500-2,900 m), produces 3.14 x (6.125 x 0.0254 m)2 x 1,400 m = 106.4 m3 amount of cuttings. - Route 7” (2,900-3,500 m), produces 3.14 x (4.25 x 0.0254 m)2 x 600 m = 21.9 m3 amount of cuttings.

The volume of the container is ± 1,500, enough to collect ± 612 m3 rainfall (the land

width is approximately 10,000 m2, maximum rainfall up to 68 mm, rain duration for one

hour and receiving tank building coefficient = 0.9).Scheme of solid waste management is shown in figure 2.1 and figure 2.2.

B. Handling/Management

After drilling, cuttings material are tested through Toxicity Characteristic Leaching Procedure (TCLP) with Ba, Cd, Hg, Pb, Ag, Cr6+, Zn dan Cu as perimeters. If the TCLP

result shows that the solid wastes fulfill the requirements to be disposed, the used mud will be mixed with limestone and the container will be covered with top soil. If the TCLP result shows the solid waste fail to fulfill the requirements, the waste management will refer to the government policy (PP) No. 18/1999 jo PP No. 85/1999 and the practice regulation.

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EMPMatindok Gas Development Project II-3

Drilling Waste Management:

a. Fresh mud management will be conducted using MSDS and toxicity analysis of fresh mud before being used.

b. The drilling waste management that consists of liquids and solids (waste waters, mud remainder and cuttings) refers to the regulation of the Minister of Energy and Mineral Resources (ESDM) No. 045 of 2006. Several containers and pools to be used are as follows:

• Cutting container/Ground Pit 1 (15 m x 4.5 m x 4 m) used to separate solid waste (cuttings).

• Oil catcher container/Ground Pit 2 (5.6 m x 4.6 m x 1.5 m) used to separate oil and drilling water waste. If oil is found in this container, it will be sucked using a skimmer and burned in the burn pit.

• Coagulation container/Ground Pit 3 (4.2 m x 35 m x 1.5 m) used to help the material coagulation process, where in certain conditions are added with tohor and alum.

• Water disposal container/Ground Pit 4 (11 m x 3 m x 1 m), filled withpalm fiber, small rocks, and wood charcoal in order to eliminate finersolid particles, remove odor, and to clarify water.

The final waste waters produced will be analyzed with TCLP. If the result shows the waste water contains toxic and hazardous materials, it will then be managed according to the related regulations. On the contrary if the waste water does not contain any toxic and hazardous materials or still meets the standard quality, then the water will be disposed to the nearest river. The solids present in the cutting pool and container will be buried with soil and be reused for vegetation sites.

A more detailed scheme of the drilling mud management is shown in figure 2.1, while the detail designs of the ground pit, oil catcher container, coagulation tank, and water disposal tank are shown in Appendix 3.

c. Cuttings processed using oil mud will be tested for oil (oil on cuttings) by TCLP. The management of cuttings and remaining drilling mud (solid wastes) will be in accordance to the regulation of the Minister of Energy and Mineral Resources (ESDM) No. 045 of 2006, regarding Drilling Mud, Mud Wastes, and Cuttings Management on the Oil and Natural Gas Drilling Activities, and Individual Work plan on In-land Drilling Waste Management of PT PERTAMINA-EP No. C-003/EP5000/2006-S0. Drilling of wells using oil/synthetic based mud is not to be disposed to the environment but to be reconditioned for further applications.

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EMPMatindok Gas Development Project II-4 C. Liquid Waste

Waste water treatment is conducted physically and chemically. Other waste waters coming from bath rooms will be collected in septic tanks, whereas the rain water is channeled to the sewage system.

D. Domestic Waste

Domestic waste refers to the waste coming from employee’s regular activities in the location, which includes bathing, washing, and cooking. Domestic waste may be solid or liquid. With the large amount of employees and considering the morphological conditions of the surrounding environment, domestic waste has the potential to become the source of impacts.

Solid and liquid domestic wastes come from domestic employee activities, packing materials of food and drinks, and drilling materials. An effort to manage these wastes is by providing containers as follows:

• Biological waste will be collected in septic tanks (1.5 m x 2 m x 2 m).

• For solid waste coming from employee activities and degradable used packing material (food and drink packing material, mud bags, cement bags, and wood/carton packing material) will be collected and burned in the garbage container (0.75 m x 0.75 m x 1 m). Whereas the materials difficult to degrade (plastic drums and plastic) are to be collected in a certain place in the activity location. After the activity ends, the degradable materials are stocked up in the containers, whereas the materials that are difficult to degrade are brought out of the location, to be disposed in the nearestdump site.

E. Gas emission

Gas emission from DST activities will be managed as follows:

• Gas will be burned in flare pit after separated through a separator, allowing toxic gas such as H2S to break down and become non-toxic.

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EMPMatindok Gas Development Project II-5

Figure 2.1. Sketch

of

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EMPMatindok Gas Development Project II-6

Figure 2.2 Flowchart of Liquid Waste/Water Base Mud

H2S gas that exit during the formation along with the drilling mud in the drilling process

will be managed as follows:

• H2S gas contained in the drilling mud is dissolved in calcium hydroxide (Ca(OH)2)

suspension in the mud container, to form sulfide salts.

• One of the procedures to handle the unknown amount of free H2S gas, is to

temporarily stop the drilling activity and evacuate all the drilling workers and community surrounding the site. Evacuation of the community will only be done if the course of wind is headed to the settlement.

An act of prevention to detect any free H2S gas promptly:

• Facilitating the drilling installation with large fans headed towards the course of wind. • To equip H2S gas sensors in certain places such as: shaleshaker, mud tanks, and

drilling floor.

• Controlling H2S gas sensors at the hazardous state (H2S limit = 10 ppm).

• Providing Breathing Apparatus (BA) and H2S gas personal detector in the drilling

location to ensure human safety. 1. Ground Pit #1 2. Oil Catcher 3. Ground Pit #2 4. Coagulation tube (vessel) 5. Ground Pit #3 6. Filtration tube (vessel) 7. Ground Pit #4 8. Clean water tub

(vessel) 9. VSP 10. Flare Pit 11. Reserve tub (vessel) 2 4 5 3 6 7 8 9 10 1 11 WELL

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EMPMatindok Gas Development Project II-7

G. Management of Planted Pipes towards Earthquake Disaster

In the research region, there are some sources and several occurrences of seismic activity. There are also signs of possibilities of future earthquakes. This might effect the stability and integrity of the pipelines that by then will be placed by PERTAMINA EP-PPGM. Therefore, in the pipelines placements process, PT.PERTAMINA EP-PPGM has to anticipate the earthquakes by protecting the pipelines, to ensure the earthquakes will not disrupt the stability of the position and integrity of the planted pipes.

Measures to protect the pipes are as follows:

a. Pipes must be equipped with additional monolite casing.

b. The dug holes of the pipes must be given sand, making the outside layer of the planted pipes stocked in sand in which the matrix are adjustable to shape position towards the change of pattern and shape of the stocked sand area.

2.1.1.2 Waste of Construction Activities and Complex Gas Processing Facilities (GPF) Operations.

A. Liquid Waste

After the process units and pipe installation ends, a hydrostatic test is performed on the pipes and containers used in the process. This hydrostatic test will require water taken from surface water (river water). The used water from the test will then be disposed to the nearest river. If necessary, the used water will be analyzed to ensure the quality of the water based on the State Minister of Environmental Affairs Decree No. 4 of 2007 regarding Waste Water Quality Standard for Oil, Gas, and Geothermal Activities.

Liquid Waste from the Gas Processing Facilities (GPF) comes from the water formation separating system. The waste contains several pollutants especially condensate/oil, sulfur, and suspended solids. In order to be disposed in the environment (river), the waste must be processed using waste water treatment equipments or through water injection.

Liquid domestic waste from the construction employees will be collected in septic tanks.

B. Solid Waste

Solid waste such as used food packages, cans etc. will be collected and disposed to the nearest dump site (TPA), in the Banggai Regency. The domestic waste at the Gas Processing Facilities (GPF) will be collected in septic tanks. The remaining solid waste of the Gas Processing Facilities (GPF) construction will be collected and brought back by the PT. PERTAMINA EP-PPGM contractor.

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EMPMatindok Gas Development Project II-8 C. Gas emission

The production facilities of the GPF has 5 sources of gas disposal, that consists of compressor gas, Low Pressure (LP) vent, High Pressure (HP) flare, heating medium heater and power plant. From these 5 sources, HP flare is an interminent source. But based on the types of pollutants, only LP vent that contains H2S gas, while the others

contain CO2.

The management effort is done by designing equipments that meets the gas emission standard (based on the Decree of the Minister of Environmental Affairs No. 129 of 2003). Cosiderations taken in flare design are as follows:

1. Speed of emitted gas, directly related with the above diameter to obtain speed between flashback and blow out or on a certain lift-off;

2. Radiation intensity, related to the combustion heat spreading location;

3. Dispersion of remaining gas from combustion process, related to the location of the gas spread.

4. Position of equipments, related to the placement of equipment with a minimum 90 m distance from the hazardous source.

D. Sulfur Recovery Unit (SRU)

Separation of sour gas from impurities conducted by CO2/H2S removal will produce gas

emission mostly consisting CO2 and H2S. Because H2S gas is toxic, it is necessary to build

a Sulfur Recovery Unit (SRU) to process the H2S gas into sulfur in a solid or powder

state. It is estimated that 110 tons of sulfur is produced each day. Those sulfur will be collected in a special container and later on be marketed.

E. Contaminated drainage water

Around the GPF complex, an 8 km long, 60 x 30 cmsewagesystem will be built to collect rainwater, whereas the possibly oil contaminated water from the GPF complex will be collected and processed in waste water treatment facilities. Condensate/oil trapped in the waste water treatment will be sucked and repumped to the tank. Waste water from the waste water treatment will be disposed to the pools surrounding GPF. The processed water is to meet the quality standard in accordance to the Minister of Environmental Affairs Decree No. 4 of 2007, before it is disposed to the environment.

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EMPMatindok Gas Development Project II-9 F. Fire fighting agents

The Fire fighting agents used must be from halon free substances (Non-Ozone Depleting Substances/Non-ODS) to avoid damage of the ozone layer.

G. Spent completion fluid from production wells and completion activities

Liquid waste from produced water containing inorganic salts and hydrocarbon will be channeled to the waste water treatment facility and disposed to the environment after meeting the quality standard based on the Decree of the Minister of Environmental Affair No. 4 of 2007.

H. Oily Sludge

In accordance to the Pertaminan Decree No. Kpts-074/C00000/2001-S0, regarding the Sludge Waste Management Guideline on Pertamina’s operational activity, stating that oil mud can be reused, processed or sold with Pertamina’s agreement. The treatment of oil mud containing more than 20% weight is to be conducted physically-chemically, where the oil separating product can be reused, while the solids goes through TCLP. If the TCLP result is under the quality standard, solidification or land fill is necessary. And if the result is above the quality standard, it will be processed by the third party.

2.1.1.3 Waste from the Pipeline Construction Activities A. Liquid waste

Domestic liquid waste from construction workers will be collected in septic tanks. Hydrostatic tests will be performed after pipe instalations. This hydrostatic test will require water taken from surface water (river water). The used water from the test will then be disposed to the nearest river. If necessary, the used water will be analyzed to ensure the quality of the water based on the quality standard in accordance to the Minister of Environmental Affairs Decree No. 4 of 2007.

B. Solid waste

Solid waste coming from leftover pieces of pipes, used cans, and other sources will be collected and handled by the contractor of PT. PERTAMINA EP-PPGM. Domestic waste will be collected in septic tanks.

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EMPMatindok Gas Development Project II-10

The zero discharge principle is applied in the waste management system demanding facilitation of solid construction waste containers and making an effort to minimize or even prevent any waste disposal to the environment. In this case the contractor is demanded to make or provide solid construction waste containers and labor. Non-degradable waste are to be collected in certain places and later disposed to the dump site with the assistance of the local government.

2.1.2. Technology toRepairRoad

Before conducting mobility activities of heavy equipment to transport drilling equipment and material, PT. PERTAMINA EP-PPGM in association with local government institutions will conduct a road survey to ensure the class, condition and stability of the roads that will be passed by the heavy vehicles. Roads/bridges with insufficient conditions will be repaired in order to adjust to the vehicle weight. For example the Batui River bridge and other small bridges on the way to the drilling area. This is an effort to prevent road damages. If damages occur on roads/bridges caused by the activities of the PT. PERTAMINA EP-PPGM, the damaged roads/bridges will be rebuilt to the initial conditions.

2.1.3 Technology of Pipe Installation in River Crossing Area

Land pipes that cross rivers and roads will be installed using horizontal directional drilling system. The distance of the pipe ends to the river bank is around 100-150 m. The pipe will be planted in the bottom of the river around 2 m deep depending on the condition of the material in the river base. With a 26” inch pipe diameter, 0,456” inch pipe thickness with an outer casing, the risk of leaking is expected to be minimum. To protect pipes from internal and external corrosion, chemical inhibitor and cathodic protection systems are assembled.

With these systems, the environmental impacts in river water and traffic disturbance can be avoided. The horizontal drilling system is presented in figure 2.3.

2.1.4 Pipe Leak Detecting Technology

To detect any leaks on pipes during operation, a normal method will be conducted using instrumentations that can monitor flow pressure and temperature, through the leak detection system that interconnects with the SCADA (Supervisory Control and Data Acquisition) system. The operator will observe this condition, therefore when abnormal fluctuations occur in gas flow, it will immediately be investigated to confirm any leaks.

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EMPMatindok Gas Development Project II-11 2.1.5 Noise and emission control

Noise produced during the GPF operational activities could come from the gas compressor, power plant, and other instruments. Technically, noise control are conducted as follows:

• Controlling the distance of the location of the facilities with the nearestsettlement.

• Maximizing the use of lower noise emission equipments.

• Building housings that can suppress noise coming from certain noisy instruments. • Using silencers in exhaust channels of combustion engines and gas turbines. • Installing acoustic insulations in chimneys and pipes.

• Planting noise absorbing plants.

2.1.6 Handling of Used Chemicals

The management of chemical materials are as follows:

• Adjusting orders of chemicals with the needs of processes to avoid large amounts of remainders.

• Each chemical substance order must have MSDS (Material Safety Data Sheet)

• Procedures for handling, collecting, processing and stocking up used chemicals must be in accordance to the requirements written in Regulation of Head of BAPEDAL No. Kep-01/BAPEDAL/09/1995 to Kep-05/BAPEDAL/09/1995 and in the Government Regulation (PP) No. 18 of 1999 jo PP No. 85 of 1999, regarding the Waste Management of Hazardous and Toxic Substances along with the technical guidelines.

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EMPMatindok Gas Development Project II-12 2.2 ECONOMICAL APPROACH

In environmental management, the project proponent will work together with government institutions and other related parties to overcome social, economical and cultural impacts caused by the activities of the Matindok Gas Development Project. The form of this cooperation are as follows:

1. Reducing import tariffs for environmental management equipments. For example: oil separator, gas scrubber, gas filter, incinerator, silencer, desulphurization, etc.

2. Process of Land acquisition refers to the government laws and regulations, especially PP No. 36 of 2005 on Providing Land for public development.

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EMPMatindok Gas Development Project II-13

3. Giving opportunities to local citizens to be employed and involved in the activities of the Matindok Gas Development Project, considering existing needs and qualifications.

4. Supporting empowerment of the local community as a part of the community development program of PT. PERTAMINA EP-PPGM.

Pertamina PPGM is committed to perform social and environmental responsibilities in accordance to continuous environmental development principle. All activities are conducted considering economical, social, and environmental responsibilities.

Pertamina PPGM’s goal is to create and preserve a harmonic relationship with the environment and create a conducive condition to support company growth; To contribute in solving social problems; To increase company’s value and culture integrated towards company’s business strategies; As part of an effort to build image and reputation of the company in the areas surrounding operational sites and cooperating with the government to give large benefits to the community.

In the Natural Gas management of the Matindok Gas Development Area, the Community Development project includes the following activities:

a. Pertamina PPGM and Education, “Smart together with Pertamina”

1) Pertamina Scholarship

• Financial help for education.

• Supporting study groups and programs to help members of the society to reach higher levels of education.

• Pertamina offers scholarships to undergraduate students with high achievements that are financially less fortunate.

This scholarship program is expected to minimize drop outs from the elementary to the senior high school level, especially in Pertamina’s operational regions.

2) School rehabilitation and providing needed equipments

This program is to create a more conducive learning condition in order to increase student’s achievements to support the quality development of human resources in Indonesia.

• Supporting rehabilitation of damaged school buildings.

• Providing school equipments for schools located arround Pertamina’s operational activities.

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EMPMatindok Gas Development Project II-14 b. Pertamina and Health

1) Supporting health service centres (Posyandu)

Guiding health service centres (posyandu) to suport the government program and increase public participationin maintaining children and mothers’s nutrition and health levels especially in Pertamina’s operational regions. This program includes:

• The increase in quality of the facility (building and equipments)

• Motivational trainings on health and nutrition to obtain bright and strong human resources.

2) Social health activities

• Mass/free medical services for communities surrounding Pertamina’s operational activities.

• Medical consultation for less serious illness. 3) Blood donor

Humanitarian activity of Pertamina’s family members as an act of concern to help those in need.

c. Pertamina and the environment

Forest restoration and re-vegetation programs

Forest restoration and re-vegetation programs are performed as an act of company’s responsibility to maintain environment preservation. Re-vegetation is performed in critical lands in coordination with educational or other institutions that have concernd towards the environment, in former project lands. Several plants are to be planted, including productive and light protecting plants, and also mangroves to be planted on seashores.

d. Pertamina and Community Empowerment

In accordance to the spirit of the company to grow and develop together with the community, Pertamina is developing empowerment programs for communities surrounding operational regions. This effort is performed to help the growth and development of the economy and well being of the community. The program includes:

• Trainings for local workers and farmers.

• Providing business capitols for farmers, fishermen, and urban communities through Environment Deserve Partnership Program.

• Giving business and job opportunities to local workers.

Before this Community Development progran can be established, PT PERTAMINA EP_PPGM will be in coordination with the local government to confirm the activity plans in order

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EMPMatindok Gas Development Project II-15

to adjust with government programs and community necessities. This coordination, is expected to avoid any overlapping programs between PT PERTAMINA EP-PPGM and the local government. This CommunityDevelopment Program will be conducted by involving related agencies to ensure the programs reach the right target and will really benefit the communities arround PPGM’s operational regions.

2.3 INSTITUTIONAL APPROACH

To minimize the impacts caused by the Matindok Gas Development Project activities, especially social, economical, and cultural impacts, the project proponent will be in coordination with several institutions, as follows:

1. The Ministry of Environmental Affairs, as the supervisor;

2. The General Directorate of MIGAS, of the Department of Energy and Mineral Resources, the supervisor of activities related to physical-chemical and biological components;

3. The General Directorate of Land and Water Transportation of the Department of Transportation related to gas piping activities and LNG transport through Ports;

4. The Governor of the Central Sulawesi Province related to the supervision of environmental management, especially in employment.

5. Bapedalda of the Central Java Province related to the environmental management and surveillance management;

6. Transportation Agency of the Central Sulawesi Province related to the Mobility of material and equipments using the existing roads.

7. The Regent of Banggai related to the activities of the development well drilling plans and construction of Block Station, GPF, LNG mine area, ports and pipeline construction for the Matindok Gas Development Project;

8. Bapedalda of Banggai Regency related to the observation of environmental management and surveillance.

9. The Resort Police Bureau (Polres) of Banggai Regency related to management of the security and order of the community and accessibility during the pipe assembling activity, and mobility and demobility of equipments and materials;

10. The Traffic and Highway Transportation Agency, related to handling of accessibility; 11. The local government (camat and kades) in the project region, related to employment,

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EMP Matindok Gas Development Project III-1

Chapter-

3

E

NVIRONMENTAL MANAGEMENT PLAN

3.1. UPSTREAM

3.1.1 Air Quality

A. Construction Phase

1) Significant Impact and Source of Significant Impact a) Environmental Management Parameter

Air Quality, especially SO2, CO2, NOx, PM10, H2S and dust.

b) Source of Impact

• Exhaust gas emission and dust from several heavy vehicles and equipments from the equipment mobilization activity.

• Construction activity of BS and GPF. 2) Impact Criteria

Government Regulation (PP) No. 41 of 1999, regarding Ambient Air Quality. 3) Environmental Management Objective

To prevent and minimize the air pollution level 4) Environmental Management

Mobilization and demobilization of equipments

• The generator diesel machine is equipped with standard emission control and uses fuel with low containing sulphur to minimize the sulphur dioxide emission.

• Using dust supression control Construction of BS and GPF

• Providing workers with safety equipments (K3), such as masks. 5) Environmental Management Location

• Along the roads used by project vehicles especially the ones near the settlements that are included in the study boundaries.

• The BS and GPF Complex. 6) Environmental Management Period

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EMP Matindok Gas Development Project III-2

7) Environmental Management Institution a) Implementation: PT.PERTAMINA EP-PPGM b) Supervision : Bapedalda of Banggai Regency

c) Reporting : Government of Banggai Regency, Bapedalda of Central Sulawesi Province, General Directorate of Oil and Gas, and the Ministry of Environmental Affairs.

B. Operational Phase

1) Significant Impact and Source of Significant Impact a) Environmental Management Parameter

Air Quality, especially SO2, CO2, NOx, PM10, H2S and dust.

b) Source of Impact

Gas emission from prymary equipments of the operational activity in BS and GPF. 2) Impact Criteria

• Government Regulation (PP) No. 41 of 1999, regarding Ambient Air Quality. • Decree of the Minister of Environmental Affairs No. KEP-50/MENLH/11/1996,

regarding Standard Odour Level. 3) Environmental Management Objective

To prevent and minimize the air pollution level. 4) Environmental Management

• Operating Acid Gas Removal Unit (AGRU) and Sulfur Recovery Unit (SRU) facilities.

• Installing CEM (Continous Emision Monitoring). • Providing workers with safety equipments (K3). 5) Environmental Management Location

The BS and GPF Complex.

6) Environmental Management Period

During the operational activities of the BS and GPF block. 7) Environmental Management Institution

a) Implementation: PT.PERTAMINA EP-PPGM b) Supervision : Bapedalda of Banggai Regency

c) Reporting : Government of Banggai Regency, Bapedalda of Central Sulawesi Province, General Directorate of Oil and Gas, and the Ministry of Environmental Affairs.

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EMP Matindok Gas Development Project III-3 3.1.2 Noise

Construction Phase

1) Significant Impact and Source of Significant Impact a) Environmental Management Parameter

Noise

b) Source of significant Impact

Construction activities of GPF and BS facilities. 2) Impact Criteria

Decree of the State Minister of Environmental Affairs No. 48 of 1996 regarding Noise Standard.

3) Environmental Management Objective Keeping noise under the Noise Standard. 4) Environmental Management

• Noise producing during construction activities are performed in daytime only. • Use of ear plugs and earmuffs.

5) Environmental Management Location GPF and BS block.

6) Environmental Management Period

During the construction of the GPF and BS block. 7) Environmental Management Institutons

a) Implementation: PT.PERTAMINA EP-PPGM b) Supervision : Bapedalda of Banggai Regency

c) Reporting : Government of Banggai Regency, Bapedalda of Central Sulawesi

Province, General Directorate of Oil and Gas, and the Ministry of Environmental Affairs.

3.1.3 Surface Water Quality

A. Construction Phase

1) Significant Impact and Source of Significant Impact a) Environmental Management Parameter

Surface Water Quality especially pH, temperature, BOD, COD, oil and fat. b) Source of Impact

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EMP Matindok Gas Development Project III-4

Accidental spills of various materials, fuel, hydro test water waste, and traces of oil/lubricants used for the cleaning of BS and GPF equipments before being installed.

2) Impact Criteria

Government Regulation (PP) No. 82 of 2001, regarding Water Quality Management and Water Pollution Control.

3) Environmental Management Objective To prevent surface water pollution. 4) Environmental Management

Treating waste waters that contain fuel or traces of oil and lubricants from construction activities through waste water treatment or water injection before being disposed to the environment.

5) Environmental Management Location Waters in GPF and BS construction site. 6) Environmental Management Period

During construction phase of GPF and BS. 7) Environmental Management Institutions

a) Implementation: PT.PERTAMINA EP-PPGM b) Supervision : Bapedalda of Banggai Regency

c) Reporting : Government of Banggai Regency, Bapedalda of Central Sulawesi Province, General Directorate of Oil and Gas, and the Ministry of Environmental Affairs

B. Operational Phase

1) Significant Impact and Source of Significant Impact a) Environmental Management Parameter

Surface Water Quality (pH, BOD, COD, H2S, oil and fat, TSS, TDS, phenol,

Ammonia)

b) Source of Impact

Drilling of development wells and operational activities of BS and GPF. 2) Impact Criteria

• Decree of the Minister of Energy and Mineral Resources No. 045 of 2006 regarding Drilling Mud Management.

• Decree of the State Minister of Environmental Affairs No. 4 of 2007 regarding Standard Waste Water Quality For Oil,Gas and Geothermal Business and/or Activities.

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EMP Matindok Gas Development Project III-5

• Government Regulation (PP) No. 82 of 2001, regarding Water Quality Management and Water Pollution Control.

3) Environmental Management Objective To prevent surface water pollution. 4) Environmental Management

Managing formation water in waste treatment pools/containers (IPAL). 5) Environmental Management Location

Drilling waste containers (IPAL). 6) Environmental Management Period

During drilling operation.

7) Environmental Management Institutions a) Implementation: PT.PERTAMINA EP-PPGM b) Supervision : Bapedalda of Banggai Regency

c) Reporting : Government of Banggai Regency, Bapedalda of Central Sulawesi Province, General Directorate of Oil and Gas, and the Ministry of Environmental Affairs

3.1.4 Seawater Quality

Construction Phase

1) Significant Impact and Source of Significant Impact a) Environmental Management Parameter

Seawater Quality b) Source of Impact

Installation of pipelines in the sea (alternative 3). 2) Impact Criteria

Decree of the State Minister of Environmental Affairs No. 51 of 2004 regarding Seawater Quality.

3) Environmental Management Objective To prevent seawater pollution. 4) Environmental Management

• Assigning environmental officials to watch out for traces/spills of oil/lubricant in the construction activity and immediately perform the required handling and management.

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EMP Matindok Gas Development Project III-6

5) Environmental Management Location

Along the pipeline tracks that crosses the sea. 6) Environmental Management Period

During pipeline construction phase. 7) Environmental Management Institutions

a) Implementation: PT.PERTAMINA EP-PPGM b) Supervision : Bapedalda of Banggai Regency

c) Reporting : Government of Banggai Regency, Bapedalda of Central Sulawesi Province, General Directorate of Oil and Gas, and the Ministry of Environmental Affairs.

3.1.5 Soil Erosion Construction Phase

1) Significant Impact and Source of Significant Impact a) Environmental Components or Parameters

Land components with erosion parameters such as planting of vegetation and plant conservation technics.

b) Source of Impact

Land clearing and land maturation that decrease and even eliminate vegetation causing open land formation.

2) Impact Criteria

Soil erosion tolerated is a maximum of 9 tons/ha/year, considering the thick latosol soil solum (100-150 cm).

3) Environmental Management Objective To prevent and decrease erosion level. 4) Environmental Management Effort

• Planting pioneer grass (leguminose) on pipe tracks immediately.

• Building wells and simple channels in the BS and GPF locations to collect surface flows to prevent it flowing out of the location.

• Building drainage systems around the gas well location. 5) Environmental Management Location

• Gas drilling locations. • Jalar roi (pipeline edge) 6) Environmental Management Period

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EMP Matindok Gas Development Project III-7

7) Environmental Management Institution a) Implementation: PT.PERTAMINA EP-PPGM b) Supervision : Bapedalda of Banggai Regency

c) Reporting : Government of Banggai Regency, Bapedalda of Central Sulawesi Province, General Directorate of Oil and Gas, and the Ministry of Environmental Affairs.

3.1.6 Disturbance of Drainage and Irrigation systems Construction Phase

1) Significant Impact and Source of Significant Impact a) Environmental Parameter

Frequency and lasting of water puddle in pipe assembling locations (upstream) and lack of irigation water in pipe assembling locations (downstream), during the pipeline installation.

b) Source of Impact

Pipeline installation activities. 2) Impact Criteria

Normal irrigation systems and no flooding. 3) Environment Management Objective

To prevent and minimize floods, and prevent irrigation disturbance on rice fields. 4) Environmental Management Effort

• Providing connected pipes to be planted in pipeline tracks that cross the river and irrigation systems.

• Conducting pipeline installations as fast as possible when crossing rivers and irrigation systems.

• Installing drainage on irrigation channels crossed by pipelines.

• Temporarily moving irrigation channels during pipeline installation and returning it to the initial condition after installation is complete.

5) Environmental Management Location Along pipeline tracks.

6) Environmental Management Period Once during pipeline installation activity. 7) Environmental Management Institution

a) Implementation: PT.PERTAMINA EP-PPGM b) Supervision : Bapedalda of Banggai Regency

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EMP Matindok Gas Development Project III-8

c) Reporting : Government of Banggai Regency, Bapedalda of Central Sulawesi Province, General Directorate of Oil and Gas, and the Ministry of Environmental Affairs.

3.1.7 Traffic Safety A. Construction Phase

1) Significant Impacts and Source of Significant Impacts a) Environmental Management Parameter

Risk of traffic accidents. b) Source of Impact

• Mobilization of equipments and materials.

• Pipe assembling activities involving crossing of roads. 2) Impact Criteria

Traffic accidents.

3) Environmental Management Objective To prevent traffic accidents.

4) Environmental Management Effort

Equipment mobilization and material transport activities

• Schedules of transport activities are provided to avoid the morning and afternoon rush hours.

• Drivers are advised to be carefull and stay alert, especially when passing settlements and city areas (Kintom, Batui, Toili and Toili Barat).

• Socialization to local people regarding the transportation route and types of vehicles (large trucks and trailers) to be passing the areas.

• Maximum vehicle rate is 40 km/hour.

• Traffic warning signs are placed before entering the project area every 150 m for one way roads, and 50 m for two ways.

• Coordinating and cooperating with related institutions (State Electric Power Company (PLN), Telecommunication Networks (PT Telkom), etc.).

Road crossing pipeline installation

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EMP Matindok Gas Development Project III-9 Figure 3.1. Sign Placement

Note:

: project location : Safety signs R1 : direction signs

R2 : information signs 25 m from the location R3 : information signs 75 m from the location R4 : warning sign of project operation 5) Environmental Management Location

• Along the roads used as transportation routes (from Kintom untill West Toili). • Roads invoved in pipe installation.

6) Environmental Management Period

During the activities of equipment mobilization, transporting material, and pipe installation.

7) Environmental Management Institution a) Implementation: PT.PERTAMINA EP-PPGM

b) Supervision : Bapedalda of Banggai Regency, Department of Transportation of Banggai Regency

R1 R2 R3 R4 R4 R3 R2 R1

50 m 50 m 25 m

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EMP Matindok Gas Development Project III-10

c) Reporting : Government of Banggai Regency, Bapedalda of Central Sulawesi Province, General Directorate of Oil and Gas, and the Ministry of Environmental Affairs

B. Operational Phase

1) Significant Impacts and Source of Significant Impacts a) Environmental Management Parameter

Risk of traffic accidents. b) Source of Impact

Transport of condensate through land transportation. 2) Impact Criteria

Traffic accidents.

3) Environmental Management Objective To prevent traffic accidents.

4) Environmental Management Effort

• Schedules of transport activities are provided to avoid the morning and afternoon rush hours.

• Drivers are advised to be carefull and stay alert, especially when passing settlements and city areas (Kintom, Batui, Toili and Toili Barat).

• Socialization to local people regarding the transportation route and types of vehicles (large trucks and trailers) passing the areas.

• Maximum vehicle rate is 40 km/hour.

• The transport operational activities are in accordance with the The Decree of The General Directorate of Land Transportation Number: SK.725/AJ.302/DRJD/2004, regarding Transport of Toxic and Hazardous Materials (B3).

7) Environmental Management Location

Along the roads used as transportation routes (from Kintom untill West Toili). 8) Environmental Management Period

During transport of condensate by land transportation. 7) Environmental Management Institution

a) Implementation: PT.PERTAMINA EP-PPGM

b) Supervision : Bapedalda of Banggai Regency, Department of Transportation of Banggai Regency.

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EMP Matindok Gas Development Project III-11

c) Reporting : Government of Banggai Regency, Bapedalda of Central Sulawesi Province, General Directorate of Oil and Gas, and the Ministry of Environmental Affairs

C. Post-operational Phase

1) Significant Impacts and Source of Significant Impacts a) Environmental Management Parameter

Risk of traffic accidents. b) Source of Impact

Demobilization of equipments. 2) Impact Criteria

Traffic accidents.

3) Environmental Management Objective To prevent traffic accidents.

4) Environmental Management Effort

• Schedules of transport activities are provided to avoid the morning and afternoon rush hours.

• Drivers are advised to be carefull and stay alert, especially when passing settlements and city areas (Kintom, Batui, Toili and Toili Barat).

• Socialization to local people regarding the transportation route and types of vehicles (large trucks and trailers) passing the areas.

• Maximum vehicle rate is 40 km/hour. 5) Environmental Management Location

Along the roads used as transportation routes (from Kintom untill West Toili). 6) Environmental Management Period

During equipment demobilization. 7) Environmental Management Institution a) Implementation: PT.PERTAMINA EP-PPGM

b) Supervision : Bapedalda of Banggai Regency, Department of Transportation of Banggai Regency.

c) Reporting : Government of Banggai Regency, Bapedalda of Central Sulawesi Province, General Directorate of Oil and Gas, and the Ministry of Environmental Affairs

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EMP Matindok Gas Development Project III-12 3.1.8 Road and Bridge Damage

A. Construction Phase

1) Significant Impact and Source of Significant Impact a) Environmental Management Parameter

Road destruction caused by exceeding road or bridge capacity. b) Source of Impact

Equipment mobilization and transport of materials. 2) Impact Criteria

• Destruction of roads and bridges. • Complaints from the local community. 3) Environmental Management Objective

To prevent further road/bridge damages and restoring the conditions of damaged roads/bridges.

4) Environmental Management Effort

• Light reparation during on going traffic of material transport, done by giving soil compacted and then adding a thin sand-asphalt layer.

• Strengthening bridge construction by adding bridge support. • Transport done by sea transportation if impossible to pass bridge.

• Road/bridge reparation must be in concerted with Kimpraswil of Banggai Regency to determine the percentage of damage source, considering other parties that have also used the same roads.

5) Environmental Management Location

Along the roads used as material transportation routes. 6) Environmental Management Period

During construction

7) Environmental Management Institution a) Implementation: PT.PERTAMINA EP-PPGM

b) Supervision : Bapedalda of Banggai Regency, Department of transportation of Banggai Regency

c) Reporting : Government of Banggai Regency, Bapedalda of Central Sulawesi

Province, General Directorate of Oil and Gas, and the Ministry of Environmental Affairs

B. Operational Phase

1) Significant Impact and Source of Significant Impact a) Environmental Management Parameter

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EMP Matindok Gas Development Project III-13

Road destruction caused by exceeding road or bridge capacity. c) Source of Impact

Equipment mobilization and transport of condensate. 2) Impact Criteria

• Destruction of roads and bridges. • Complaints from the local community. 3) Environmental Management Objective

To prevent further road/bridge damages and restoring the conditions of damaged roads/bridges, as soon as possible.

4) Environmental Management Effort

• Light reparation during on going traffic of material transport, done by giving soil compacted and then adding a thin sand-asphalt layer.

• Strengthening bridge construction by adding bridge support.

• Road/bridge reparation must be in concerted with Kimpraswil of Banggai Regency to determine the percentage of damage source, considering other parties that have also used the same roads.

5) Environmental Management Location

Along the roads used as material transportation routes. 6) Environmental Management Period

During operational activities.

7) Environmental Management Institution a) Implementation: PT.PERTAMINA EP-PPGM

b) Supervision : Bapedalda of Banggai Regency, Department of transportation of Banggai Regency

c) Reporting : Government of Banggai Regency, Bapedalda of Central Sulawesi Province, General Directorate of Oil and Gas, and the Ministry of Environmental Affairs

C. Post-operational Phase

1) Significant Impact and Source of Significant Impact a) Environmental Management Parameter

Road destruction caused by exceeding road or bridge capacity. d) Source of Impact

Demobilization of equipments using large vehicles. 2) Impact Criteria

• Destruction of roads and bridges. • Complaints from the local community.

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EMP Matindok Gas Development Project III-14

3) Environmental Management Objective

To prevent further road/bridge damages and restoring the conditions of damaged roads/bridges.

4) Environmental Management Effort

• Light reparation during on going traffic of material transport, done by giving soil be compacted and then adding a thin sand-asphalt layer.

• Strengthening bridge construction by adding bridge support.

• Road/bridge reparation must be in concerted with Kimpraswil of Banggai Regency to determine the percentage of damage source, considering other parties that have also used the same roads.

5) Environmental Management Location

Along the roads used as material transportation routes. 6) Environmental Management Period

During demobilization.

7) Environmental Management Institution a) Implementation: PT.PERTAMINA EP-PPGM

b) Supervision : Bapedalda of Banggai Regency, Department of transportation of Banggai Regency

c) Reporting : Government of Banggai Regency, Bapedalda of Central Sulawesi Province, General Directorate of Oil and Gas, and the Ministry of Environmental Affairs

3.1.9 Traffic Smoothness Construction Phase

1) Significant impact and Source of Significant Impact

a) Environmental Management Component and Parameter Risk of traffic jam.

b) Source of Impact

• Activities of mobilization and demobilization of equipments and workers. • Activities of pipe installation that cross public roads.

2) Impact Criteria • Traffic delays

• Vehicles line up in 2 way streets. 3) Environmental Management Objective

Preventing traffic jams.

4) Environmental Management Effort

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EMP Matindok Gas Development Project III-15

Providing personels to direct the traffic.

Activities of pipe installation that cross the roads. • Providing personels to direct the traffic pipe asembly. • Installation done step by step to avoid total road breakage. 5) Environmental Management Location

Roads crossed by pipe tracks. 6) Environmental Management Period

During construction mobilization and demobilization acivities and pipeline installation. 7) Environmental Management Institution

a) Implementation: PT.PERTAMINA EP-PPGM

b) Supervision : Bapedalda of Banggai Regency, Department of transportation of Banggai Regency

c) Reporting : Government of Banggai Regency, Bapedalda of Central Sulawesi

Province, General Directorate of Oil and Gas, and the Ministry of Environmental Affairs

3.1.10 Vegetation A. Construction Phase

1) Significant Impact and Source of Significant Impact a) Environmental Parameter

Variety and density of vegetation. b) Source of Impact

• Land clearing causes open land and decrease of vegetation variety and density.

• Pipeline installation. 2) Impact Criteria

Change in variety and density of land vegetation. 3) Environmental Management Objective

To preserve variety and density of vegetation. 4) Environmental Management Effort

Revegetation around project location without disrupting construction and operational activities.

5) Environmental Management Location

Around development wells, BS and GPF facilities 6) Environmental Management Period

Once during land clearing.

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EMP Matindok Gas Development Project III-16

a) Implementation: PT.PERTAMINA EP-PPGM b) Supervision : Bapedalda of Banggai Regency

c) Reporting : Government of Banggai Regency, Bapedalda of Central Sulawesi Province, General Directorate of Oil and Gas, and the Ministry of Environmental Affairs.

B. Post-operational Phase

1) Significant Impact and Source of Significant Impact a) Environmental Parameter

Variety and density of vegetation. b) Source of Impact

Revegetation performed after closing of production wells. 2) Impact Criteria

Change in variety and density of land vegetation. 3) Environmental Management Objective

Restoring and increasing the density and variety of vegetation in the ares formerly used for operatioal activities.

4) Environmental Management Effort • Restoration to the initial condition.

• Performing revegetation using local plants considering the land width available. 5) Environmental Management Location

In the areas formerly used for gas exploiting activities. 6) Environmental Management Period

Once after operational activities end. 7) Environmental Management Institution

a) Implementation: PT.PERTAMINA EP-PPGM b) Supervision : Bapedalda of Banggai Regency

c) Reporting : Government of Banggai Regency, Bapedalda of Central Sulawesi Province, General Directorate of Oil and Gas, and the Ministry of Environmental Affairs.

3.1.11 Wild Animals A. Construction Phase

1) Significant Impact and Source of Significant Impact a) Environmental Parameter

Variety of species and abundance of animals. b) Source of Impact

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EMP Matindok Gas Development Project III-17

Land clearing causes loss of vegetation, destroying wildlife habitate, decreasing variety of species and animal abundance.

2) Impact Criteria

Change of species variety and animal abundance. 3) Environmental Management Objective

• To prevent decrease of animal variety and abundance. • Protecting endangered animal species. 4) Environmental Management Effort

Land clearing and pipe installations alternative 1 and 2.

• Revegetation around project location without disturbing construction and operational activities.

• Maintaining animal habitate by minimizing land clearing in locations used for production facilities, pipelines, BS and GPF locations.

Pipeline installation through the coast line of SM Bangkiriang (alternative 3)

Installation of construction pipes performed together with the installation of the JOB-Pertamina Senoro pipes.

5) Environmental Management Location

Locations surrounding development wells and pipes. 6) Environmental Management Period

During Construction

7) Environmental Management Institution

a) Implementation: PT.PERTAMINA EP-PPGM b) Supervision : Bapedalda of Banggai Regency

c) Reporting : Government of Banggai Regency, Bapedalda of Central Sulawesi Province, General Directorate of Oil and Gas, and the Ministry of Environmental Affairs.

B. Post-operational Phase

1) Significant Impact and Source of Significant Impact a) Environmental Parameter

Variety of species and abundance of animals. b) Source of Impact

Revegetation performed after closing of production wells. 2) Impact Criteria

Change of species variety and animal abundance. 3) Environmental Management Objective

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EMP Matindok Gas Development Project III-18

Restoring and increasing the abundance and variety of animal species in the areas formerly used for operational activities.

4) Environmental Management Effort • Restoration to the initial condition.

• Performing revegetation with local plants considering the available land width. 5) Environmental Management Location

Areas formerly used for gas exploitation. 6) Environmental Management Period

Once after operational activities end. 7) Environmental Management Institution

a) Implementation: PT.PERTAMINA EP-PPGM b) Supervision : Bapedalda of Banggai Regency

c) Reporting : Government of Banggai Regency, Bapedalda of Central Sulawesi Province, General Directorate of Oil and Gas, and the Ministry of Environmental Affairs.

3.1.12 River Biota A. Construction Phase

1) Significant Impact and Source of Significant Impact a) Environmental Parameter

Variety of species and abundance of river biota (plankton, benthos, fish). b) Source of Impact

• Disposal of water produced in hydro tests from the activities of BS and GPF construction.

• Pipeline installation activity 2) Impact Criteria

Decrease of species variety and abundance. 3) Environmental Management Objective

To prevent decrease of variety and abundance of the river biota. 4) Environmental Management Effort

Water used in hydrostatic tests from activities of BS and GPF construction and pipeline installation must be treated to meet the quality standard before being disposed to the river.

5) Environmental Management Location Location of BS and GPF, and piping sites.

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EMP Matindok Gas Development Project III-19

6) Environmental Management Period During construction.

7) Environmental Management Institution

a) Implementation: PT.PERTAMINA EP-PPGM b) Supervision : Bappedal of Banggai Regency

c) Reporting : Government of Banggai Regency, Bappedal of Central Sulawesi Province, General Directorate of Oil and Gas, and the Ministry of Environmental Affairs.

B. Operational Phase

1) Significant Impact and Source of Significant Impact a) Environmental Parameter

Variety of species and abundance of river biota (plankton, benthos, fish). b) Source of Impact

• Drilling of development wells.

• Operational production activity in GPF. 2) Impact Criteria

Decrease of species variety and abundance or index diversity. 3) Environmental Management Objective

To prevent decrease of variety and abundance of the river biota. 4) Environmental Management Effort

Treatment of liquid waste before disposal. 5) Environmental Management Location

Drilling well.

6) Environmental Management Period During operational activities.

7) Environmental Management Institution

a) Implementation: PT.PERTAMINA EP-PPGM b) Supervision : Bappedal of Banggai Regency

c) Reporting : Government of Banggai Regency, Bappedal of Central Sulawesi Province, General Directorate of Oil and Gas, and the Ministry of Environmental Affairs.

References

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