Proposed Terms of Reference for EIA studies

Augmentation of gas production facilities up to 350 MMSCFD,

de-bottlenecking & expansion of hydrocarbon processing

terminal & associated facilities at RJ-ON-90/1 Block, Barmer &

Jalore Districts and laying of export gas pipeline in existing RoU

of 700 Km length from Barmer, Rajasthan to Bhogat, Gujarat

Prepared & Submitted by:

Cairn Oil and Gas

Vedanta Limited

DLF Atria, Phase 2, Jacaranda Marg

DLF City Gurgaon – 122002 (Haryana)

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1 EXECUTIVE SUMMARY:

Cairn India Limited had merged with Vedanta Limited, effective 11th April 2017. Now Cairn Oil and Gas division, which is now part of the Vedanta Group, is a globally diversified natural resources group with wide ranging interests in aluminium, copper, zinc, lead, silver and iron ore. The Rajasthan Joint Venture (RJ JV) comprising of Vedanta Limited and Oil and Natural Gas Corporation (ONGC) Limited, is involved in hydrocarbon exploration and production activities in block RJ-ON-90/1. Cairn Oil and Gas division (Part of Vedanta Group) is the operator for the block. The block is located in the Barmer and Jalore districts of south-western Rajasthan. The block was awarded to the joint venture in 1995. The original Contract Area of the block was approximately 11,108 km2; however as per the Production Sharing Contract (PSC) conditions parts of the block that was assessed to be commercially not viable for hydrocarbon production, has been relinquished as per the terms of the PSC. Presently the RJ-ON-90/1 block comprises of three development areas (DA1, DA2 and DA3) covering an area of 3,111 km2.

As on date Vedanta Ltd. has drilled around 180 exploratory and appraisal wells and has made 38 hydrocarbon discoveries in the Block, with the Mangala discovery termed as the largest on-land hydrocarbon discovery in India. The other major discoveries in the block are the Bhagyam field and Aishwariya field, both located in the vicinity of the Mangala field. A comprehensive review of the resource potential in the Block has been carried out by Vedanta Ltd. through the application of innovative technologies and advanced geo-sciences. In addition, DeGolyer and MacNaughton have conducted an independent estimate of reserves and contingent resources, and have also reviewed the majority of the leads and prospects of the hydrocarbon resources. The details of estimates are as follows:

The potential resource of the Block is now estimated to be 6.2 billion barrels of oil equivalent (boe) in place

The Fatehgarh Formation in the main fields Mangala, Bhagyam and Aishwariya (MBA) hold 2.2 billion boe in-place, out of which the proved and probable recoverable resources base has been estimated to be 410 million boe. MBA fields have already produced 405 million boe.

The other 35 discoveries (including the Barmer Hill Formation) are estimated to hold approximately 4 billion boe in-place, out of which the gross recoverable resource is estimated to be 750 million boe. Some of these fields have already produced oil and gas of about 12 million boe.

The block also has undiscovered un-risked prospective resource potential of around 2 billion boe.

Vedanta Ltd. has so far obtained Environmental Clearance from the Ministry of Environment & Forests (MoEF), Govt. of India for producing 300,000 bopd (barrels of oil per day) from Mangala Processing Terminal (MPT) and 100 MMSCFD (million standard cubic feet per day) natural gas from Raageshwari Gas Terminal (RGT).

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The Rajasthan Joint Venture proposes to develop the northern and southern fields in the RJ-ON-90/1 block to handle 350 MMSCFD of natural gas and other associated facilities, subject to regulatory and other approvals. This document presents the Terms of Reference (TOR) for assessing the environmental impacts for augmentation of hydrocarbon production and development of other facilities from RJ-ON-90/1 block in Barmer and Jalore Districts, Rajasthan. The document has been prepared to provide details on the activities, identify the environmental issues and their significance, and agree on the scope, direction and content of the EIA.

2 PROJECT DESCRIPTION:

The potential hydrocarbon resource for the block (refer Fig – 1) is currently estimated to be 6.2 billion barrels of oil equivalent (boe) in place. The RGT processes natural gas produced from the Raageshwari Deep Gas (RDG) Field located in the southern part of the Block. A comprehensive subsurface evaluation of the resource base, based on the production history of last operational years, has resulted in the confidence that potential exists for increasing gas sales from the RGT and satellite gas fields up to 350 MMSCFD in a phased manner.. The production capacity augmentation of this project is based on the following programmes.

Planned programmes of proposed augmentation:

Upstream (Gas terminal and associated facilities augmentation): The gas production augmentation is being planned to produce from existing 100 MMSCFD to 350 MMSCFD along with condensate processing unit. The proposed upstream projects will cover the following facilities:

a. Augmentation of Raageshwari Gas Terminal (RGT) from existing 100 MMSCFD to 300 MMSCFD and 50,000 barrels of condensate. Including processing of 50,000 barrels of condensate, CNG / LPG process, storage and transport

b. Development of satellite gas fields (standalone well pads) to produce and process up to 50 MMSCFD

c. Setting up of CNG/LPG fuel filling stations up to 50 no’s in and around Rajasthan.

Upstream (Oil Terminal and associated facilities augmentation): Mangala Processing Terminal (MPT) is producing on average around 175,000 BoPD. The expansion of MPT plant is already underway to produce additional 125,000 BoPD (i.e., total 300,000 BoPD) for which the Environmental Clearance has already been obtained. The augmentation and new projects will cover the following facilities:

a. De-bottlenecking some of the facilities at Mangala Processing terminals for achieving better three phase separation including augmentation of produced water treatment system, injection water treatment system, power fluid handling system, utilities system with additional boilers/waste heat recovery system.

b. Additional processing train in northern field of capacity 510,000 barrels of fluid per day (bfpd) to handle increased water cut, i.e., total 1,903,000 bfpd

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processing capacity in RJ block (considering permission already obtained in northern field for 1,053,000 bfpd and 340,000 bfpd in southern field)

c. Setting up of total twenty (20) numbers of quick processing facilities (three phase separation) of the well fluids at various fields such as Mangala, Bhagyam and Aishwariya. The separated produced water will be injected back to the reservoir of that field. The associated gas will be used for captive power generation within the field or otherwise sent to MPT or RGT. The separated crude oil will be sent to MPT for further processing & export and or direct export to the refineries through trucks. Associated gas facilities from RJ fields will be expanded up to 250 MMSCFD from existing already permission available of 65 MMSCFD (i.e. additional associated gas of 185 MMSCFD). This will reduce the associated gas flaring i.e. wastage of gas will be minimised.

d. Augmentation and laying of new oil infield pipelines connecting well pads and terminals of various fields within RJ Block.

e. New produced water treatment system package including management of effluents to handle up to 500,000 barrels of per day.

f. Enclosed ground flare system at well pads.

g. ASP (Alkaline – 2000 MT per day; Surfactant – 300 MT per day and Polymer – 300 MT per day) flooding across various fields within RJ Block. Permission to manage, store and handle hazardous ASP chemicals as per the MISHC and applicable Rules.

h. Additional 16,500 KLD deep saline ground water abstraction (i.e., total 85,000 KLD abstraction, considering already CGWA abstraction permission obtained for 45,500 KLD and CGWA application under consideration for 23,000 KLD)

i. Drilling of up to 40 wells in one well pad (in earlier EC, permission obtained to drill up to 20 wells in single well pad) to have minimum environmental foot print.

Midstream: The gas evacuation projects will cover the following facilities:

a. Laying of new 30 inch gas pipeline for 700 km from Barmer to Bhogat to evacuate capacity up to 500 MMSCFD of natural gas

b. Laying of new 8 / 10 inch gas pipeline of ~100 km from RDG to MPT to evacuate condensate

c. Laying of new 6 / 8 inch gas pipeline of ~100 km from RDG to AGI – 5 for stabilised condensate transportation.

d. Laying of new 12 inch pipeline at various locations to connect processed crude from satellite fields to main export pipeline.

3 ENVIRONMENTAL SETTING:

The area is primarily an arid and semi-arid zone with vast areas of sand covered tracts with on bedrock of gneiss and sedimentary depositions. The entire stretch of the block is

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covered by sandy soils with golden colored sand dunes. The depth of groundwater ranges between 75 – 100 m. The aquifers are mostly brackish with pockets of sweet water in confined aquifers. The area is characterized by scanty vegetative cover and is represented by xerophyte plants. The climate is characterized by its dryness, extreme temperatures and erratic rainfall. The climate of the region is characterized by two main seasons – long hot & dry summer and a short severe winter (November to February). The study area receives scanty erratic rainfall with annual mean total rainfall of 281.8 mm (average annual rainfall 1971-2005 for Barmer). The predominant wind direction and wind speed changes from season to season and the summer months experience frequent dust storms. The area as a whole is sparsely populated with isolated pockets of habitation. The population density of Barmer district is 92 per km2 as per 2011 Census. There are no significant industrial activities. The rural populations of the Barmer district reside in scattered settlements (dhani’s). The primary occupation in the area is agriculture and rearing of livestock.

The general topography is plain with undulating terrains and sand dunes of varied heights and lengths. No major hills and valley systems, archeologically important monuments, ecologically sensitive zones are observed in RJ-ON-90/1 block. The area does not fall under seismically active zone. Barmer district is linked by road with Jaisalmer, Jodhpur, Pali, Jalore, Jaipur, Ajmer and Ahmedabad. Major Roads within the block are NH-15 (58.89 km), NH-112 (33.28 km), SH-16 (43.0 km) SH-28 (54.37 km).

Most revenue villages in the Gram Panchayats have kutcha roads or pathways exist, which keep shifting due to movement of sand. Over the years however, Vedanta Ltd.’s presence has improved road connectivity between villages. There are regular railway services connecting Barmer to Jodhpur, Jaipur and Delhi. The nearest airport is at Jodhpur located about 220 km from Barmer

Uttarlai, one of the forward airbases of South Western Air Command, is located 10 km from Barmer. There is a Border Security Force (BSF) campus contiguous with the urban area boundaries of Barmer town. There are no significant industrial activities or industrial area falling within the project area and the nearest industrial area is Balotra, which is about 130 km from Barmer. There are five industrial areas in Barmer district with about 3000 small scale units. Some isolated mining activities, machining works, gypsum manufacture, small-scale textile dying and printing, leather products manufacture, brick kilns, bentonite grinding, cement bricks manufacture, embroidery, and tailoring, flour mills, granite cutting and polishing, guar gum, non-edible oil, oil mills, plaster of paris (PoP), stone crushing, wooden furniture manufacturing are carried out.

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Fig -1 Details of hydrocarbon discovery sites at RJ-ON 90/1 block.

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4 PROPOSED TERMS OF REFERENCE FOR ENVIRONMENTAL IMPACT ASSESSMENT (EIA):

An environmental impact assessment study is proposed to ascertain impacts from the increase in production capacity at RGT and also development of the individual satellite fields contributing hydrocarbon and water production and intra and interfiled pipelines for evacuations. This EIA study will cover all existing and potential production fields feeding at RJ-ON block and also processing and evacuation facilities. The EIA will take into consideration of the primary environmental baseline monitoring in the entire block and planned to be carried out for the period October – December 2017 (post monsoon season), however Vedanta Ltd. is also carrying out periodic environmental monitoring on a regular basis starting year 2008.

4.1 Components of the EIA study:

The various components of this EIA will constitute of the following;

Determination of existing environmental & social baseline conditions based on primary information to be collected during post-monsoon 2017 for this project, referring previous EIA studies, environmental monitoring data available with Vedanta Ltd., outcomes of other environmental studies and secondary information from government & other recognized sources. Study area of 10-km radius will be maintained from all the project components.

Detailed description of proposed and existing facilities that will include control measures for preventing / reducing environmental impacts.

Identification and assessment of impacts from proposed production facilities, resource consumption and any potential incremental environmental load due to enhancement of hydrocarbon production capacity and proposed additional fluid handling capacity. The assessment will take into account controls that are already in place for addressing environmental impacts.

Assessment of socio-economic impacts from capacity enhancement

Land use pattern study of the project and adjoining area

Biodiversity study of the project affected area

Traffic assessment study

Quantitative risk assessment (QRA) for storage and handling of the hazardous substances. The risk assessment will be based on reports of extensive earlier risk assessment studies that have been carried out e.g. HAZID, HAZOP, COMAH etc.

4.1.1 Study of Environmental and Social Baseline Condition

4.1.1.1 Proposed Environmental Baseline: This capacity augmentation project shall involve developmental activities at the RGT terminal, satellite field, CNG/LPG processing stations. The whole RJ-ON-90/1 block is considered for determination of environmental and social baseline with focus on prospective fields. The details of primary environmental baseline to be carried out for this project are as below:

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S. No Environmental Attribute

Monitoring Scope

1 Ambient air quality (AAQ)

Approximate 25 Locations in RJON-90/1 block. Bi-weekly ambient air quality (AAQ) monitoring shall be carried out from March to May 2013 for the following 14 parameters.

Parameters: Sulphur Dioxide - (SO2) μg/m3; Nitrogen Dioxide - (NO2) μg/m3, Particulate Matter (Size less than 10μm) or PM10, μg/m3; Particulate Matter (Size less than 2.5μm) or PM2.5, μg/m3; Ozone (O3) μg/m3; Lead (Pb) μg/m3; Carbon Monoxide (CO) mg/m3; Ammonia (NH3) μg/m3; Benzene (C6H6) μg/m3; Benzo(a)Pyrene (BaP) Particulate phase only ng/m3; Arsenic (As) ng/m3; Nickel (Ni) ng/m3; HC μg/m3 (both methane and non-methane); and VOC μg/m3

The sampling locations will be strategically identified using software and mathematical modelling and taking into considerations factors such as meteorological conditions, receptor locations, predominant up & down wind directions and earlier simulation modelling results i.e. maximum GLC zones.

2 Water quality Ground water from 20 locations shall be analysed for parameters as per IS-10500 and EPA Act as applicable. If any surface water bodies found in the study block, the same shall be collected and studied as per IS-10500 and EPA Act as applicable.

3 Soil quality 20 composite soil samples shall be collected from three different levels up to a depth of 100 cm’s and shall be analysed for the parameters such as grain size, pH, salinity, electrical conductivity, organic carbon, NPK, TDS, Na, Mg, Ca, Cl-, F- etc.

4 Ambient noise levels Noise monitoring will be carried at about 25 locations by using Integrated noise meter on half an hour observations for 24 hours at each location. Noise sampling locations include those at immediate vicinity of terminals, satellite fields, nearby villages and road intersection.

The observed data shall be compiled and statistical analysis be done for L10, L50, L90, Leq dB(A), Lday, Lnight and Ldn.

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Climate and meteorology – Information on prevailing climatic condition and meteorological data shall be collected from IMD station at Barmer for a 20 year period (1990- 2010). Meteorological data shall also be collected at three stations within the block. The meteorological parameters will include temperature, relative humidity, rainfall, cloud cover and wind speed & direction.

Physiography and land use – The physiography and land use in the study area will be studied with special emphasis on changes that have occurred after Vedanta Ltd.’s developmental activities in the block. This study would be carried out using satellite images.

Hydrology – Water required for the project is being met through extraction of saline ground water from Thumbli aquifer after desalination. Water from the aquifer is not suitable for agricultural or domestic consumption. Regular monitoring and assessment of Thumbli as well as other local aquifers are being conducted by Vedanta Ltd. from year 2005. Information from existing monitoring data and other existing study reports will be used to assess the hydrological conditions in the area. There are no significant surface water bodies in the study area except Luni River which is non-perennial.

Geology – The geological profile including lithological sequence in the area will be studied using extensive data available with Vedanta Ltd.

Ecology & Biodiversity – There are no notified national parks or sanctuaries in the study area. The nearest ecologically sensitive habitat is the Desert National Park, which is more than 100 km’s away. Biodiversity in the development areas has already been studied by Arid Forest Research Institute (AFRI). Information from the report will be used for assessment of ecology and biodiversity impacts, if any.

Socio-economic profile – The socio-economic profile and demography of the area will be mapped through focussed primary survey and secondary information from 2011 Census data and district handbook.

Transportation: Traffic study at all major junctions on highway used for trucking will be done on 24 hour basis for two days (once during a weekday and once during a holiday).

4.1.2 Identification and Assessment of Impacts

The proposed production augmentation project will have impacts on the environment during site preparation, field development and site restoration. The parameters likely to be affected are air quality, water quality, soil quality; noise levels, etc. on account of gaseous emissions, liquid effluent discharges, resultant particulates, generation of solid wastes, etc., will be identified.

The impact from various field and terminal operations will also be identified and assessed. A comparison of assessed impacts would be carried out against impacts assessed in earlier EIA reports. This comparison would provide clear indication on an increase or reduction in overall environmental footprint based on the final detailed process design as against the basic project plans. The assessment techniques used will include simulation modelling, environmental risk assessment methods and professional judgement of specialists.

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More specifically the identification and assessment of impacts would cover the following:

Description on potential sources of pollution and natural resource consumption This includes emission sources, water consumption, waste water streams, waste generation, noise generating sources, fuel consumption.

Impacts on air environment

o Emission characteristics (from sources like captive power plant, emergency gas engine generators, flare stack, trucks and crude storage tanks)

o Using point source, area source and line source models to assess ground level concentrations of pollutants and effect on ambient air quality

o Analysis of findings considering receptors and AAQ standards

Impact on water environment

o Description on points of water consumption with quality & quantity requirements

o Water abstraction and assessment of impacts based on yield potential of deep saline aquifers

o Identify and characterise wastewater streams and evaluate the effectiveness and adequacy of existing management measures (treatment / reuse / recycle / discharge)

o Assessment of impacts due to increase in production and recommend management measures

Impact on ambient noise quality

o Description on noise generation sources (turbines, gas engines, DG sets, pumps, crude oil tankers) and sound levels

o Assessment of propagation of sound using noise prediction models and based on onsite monitoring results.

Impact on land environment

o Description on waste generation quantities, characteristics and management from existing facilities and operations

o Estimation of wastes from increase in production, if any and adequacy assessment of existing / planned facilities

o Assessing need for additional land acquisition and its impacts

Socio-economic impacts

o Identification and description about key stakeholders and their interaction with Vedanta Ltd.’s operations

o Assessment of impacts from Vedanta Ltd.’s operations and Corporate Social Responsibility (CSR) initiatives in the region

o Identification and assessment of incremental impacts due to increase in production

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Ecology and Biodiversity impacts

o Identification and description about local ecology and biodiversity (including desert)

o Assessment of ecology and biodiversity impacts due to the block development contributed by Vedanta Ltd.’s operations and propose suitable mitigation measures

Traffic impacts

o Study of the possible Impacts of the traffic including the assessment of impacts from the rig production drilling and well completion rig movements, crude trucking operations, vehicular traffic, construction trucks/vehicular movements etc.

o Propose suitable mitigation measures towards development of the effective journey management plan comprising of effective routes to be used, roads strengthening (if required), traffic impact minimising measures etc.

Risk Assessment

o Safety risk studies will be performed and included in the EIA report. This will cover the identification of activities that have potential to cause safety risk and hazardous scenarios. Risk mitigation measures will be delineated and included in the EIA study.

Occupational Health & Safety Management Plan

o All machines to be used in the construction and operation will conform to the relevant Indian Standards (IS) codes / International Standards and Codes, will be kept in good working order and properly maintained.

o The entire workforce involved in the handling of materials and chemicals will be provided with proper PPEs.

o The workplace must be equipped with fire detectors, alarm systems and fire-fighting equipment.

o Health problems of the workforce shall be taken care of by providing basic health care facilities.

4.1.3 Project Benefits

This project is of great importance to the country and region in meeting energy demands. This project is slated to generate huge revenues for the state as well as central government thereby promoting social and development in the region. The details would be addressed in the EIA report.

4.1.4 Public Hearing/ Public Consultation

Since there are no land acquisitions as part of this upstream project development in Rajasthan except few parcels of land that shall be acquired within the existing facilities of the midstream operations, Vedanta Ltd. would humbly request the honourable Expert Appraisal Committee (EAC) to consider for exemption of Public Hearing / Public Consultation.

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Public Hearing and Public Consultation was carried out in Barmer and Jalore District of Rajasthan as part of the previous Environmental Clearances on 22nd October 2013 and 25th October 2013 respectively. Public Hearing was scheduled on 12th December 2014 for midstream at Virangam Dist. Ahmedabad. All the concerns raised during these Public Hearings were addressed and closed appropriately and no pending concerns are open.

As the Public Hearings were held between October 2013 and December 2014 we request to exempt the Public Hearing as part of this Terms of Reference (TOR).

However, Vedanta is committed in closely working with the communities at large through planned CSR programmes.

4.1.5 Environment Management Plan

This section of the EIA will provide description on environment protection measures that are to be in place to minimise the adverse environmental impacts that may arise during the construction, operation and restoration phase of this project. The augmentation project will be designed in such a manner that during its operation phase it is likely to cause minimal impact to the surrounding environment. There is almost zero surface disposal of any solid or liquid waste. The facility shall meet its water demand only from the abundant supply of sub-surface saline water and does not cause any demand on the fresh water resource of the area. Its energy demands are met by utilizing the associated gas produced from well fluid phase separation, any shortfall augmented from the Raageshwari gas field; and the excess power requirement shall be sourced from the grid. A closed drain system routes all liquid discharges to the Off Spec tank which circulates it back to the inlet manifold for reprocessing. All vapour emissions from vessels & tanks are directed to the Vapour Recovery system where it is conditioned and compressed to be fed back into the fuel gas system. There are HP & LP flares provided for flaring the gases in case of any upset or emergency situation. There will be no cold venting from the facility. All wastewater /eject water / wash water will be normally routed to the injection water system for reinjection into the oil reservoir. In case of any operational issue, a specific waste stream cannot be mingled with the injection stream, provision of solar evaporation pond and deep dump wells have been provided for disposal without any harm to the environment. A dedicated secure landfill facility complying with the national standards on landfill design is being developed and shall be expanded for storage and disposal of non-recyclable hazardous and non-hazardous wastes.

An environmental monitoring and management plan will be developed for the sensitive elements of the environment that may require monitoring during augmentation and operation phase. The EMP will also reflect statutory requirements, Vedanta Ltd.’s own corporate operational guidelines and international guidance provided by the oil and gas industry for onshore installations. Cognizance will also be taken of all the applicable standards and guidelines (amongst others) in the preparation of the EMP.

This EMP section will also cover the administrative aspects of implantation of the EMP. Vedanta Ltd. has a robust organisational setup at site as well as in the corporate office to ensure that the EMP measures are implemented effectively.