ENVIRONMENTAL ENVIRONMENTAL OVERVIEWOVERVIEW

ofof

OPERATIONS OPERATIONS MAY 2006MAY 2006

Picture courtesy of DOE

Picture courtesy of Andrew Milham

Environmental Overview of Environmental Overview of BNEL’sBNEL’sOperationsOperations

The development of the The development of the Petroleum Industry in a Petroleum Industry in a sound environmental sound environmental Manner.Manner.

Environmental Overview of Environmental Overview of BNEL’sBNEL’sOperationsOperations

How BNEL along with the GOB (DOE) are How BNEL along with the GOB (DOE) are working together to achieve:working together to achieve:

‘‘the development of the the development of the petroleum industry in a sound petroleum industry in a sound environmental manner.’environmental manner.’

Environmental Overview of Environmental Overview of BNEL’sBNEL’sOperationsOperations

What BNEL is doing to comply with What BNEL is doing to comply with Belize’s environmental legislations.Belize’s environmental legislations.

Giving an overview of environmental issues Giving an overview of environmental issues involve with involve with BNEL’sBNEL’s operations covering its operations covering its

ExplorationExplorationDevelopment and ProductionDevelopment and ProductionStorage Storage TransportationTransportation

Environmental Overview of Environmental Overview of BNEL’sBNEL’sOperationsOperations

Current measures that are in place to Current measures that are in place to mitigate or prevent potential impacts on mitigate or prevent potential impacts on the environment.the environment.

Measures that BNEL will be putting in Measures that BNEL will be putting in place to continuously improve on current place to continuously improve on current mitigation measures.mitigation measures.

Environmental Compliance PlansEnvironmental Compliance Plans

Department of the Environment and BNEL Department of the Environment and BNEL agreed to an environmental compliance agreed to an environmental compliance plan for the drilling of the exploration and plan for the drilling of the exploration and development wells.development wells.

This institutes best practice measures to This institutes best practice measures to prevent, control and mitigate potential prevent, control and mitigate potential negative environmental impact and safety negative environmental impact and safety impact.impact.

Environmental Baseline StudyEnvironmental Baseline Study

Operational SitesOperational Sites

Spanish Lookout well sites Spanish Lookout well sites Iguana Creek Gathering StationIguana Creek Gathering StationBig Creek Storage AreaBig Creek Storage Area

Spanish Lookout

Big Creek

Environmental Baseline StudyEnvironmental Baseline Study

Include sampling and analysis of soil, Include sampling and analysis of soil, water and air, to determine current levels water and air, to determine current levels of environmental quality at and around of environmental quality at and around the sites. the sites. Information obtained from the study will:Information obtained from the study will:

Serve as an indicator for long term monitoring Serve as an indicator for long term monitoring of the Petroleum Industryof the Petroleum IndustryServe as a support for development of the Serve as a support for development of the Environmental Impact Assessment Report & Environmental Impact Assessment Report & be a major part of this report.be a major part of this report.

Environmental Impact AssessmentEnvironmental Impact Assessment(EIA)(EIA)

Required in the Production PhaseRequired in the Production Phase

Request received from Dept. of Env. for Request received from Dept. of Env. for EIA Report to be prepared for future EIA Report to be prepared for future operationsoperations

BNE in process preparing project proposal BNE in process preparing project proposal and draft TOR for the EIA Report and draft TOR for the EIA Report

Environmental OverviewEnvironmental OverviewExplorationExploration

Seismic Surveys:Seismic Surveys:Cutting of paths ~ 5ft wideCutting of paths ~ 5ft widePath not necessarily in straight line to avoid Path not necessarily in straight line to avoid cutting of trees cutting of trees –– allow for quick reallow for quick re--vegetation vegetation (within approx. 6 months)(within approx. 6 months)Trucks used mainly in areas were there are Trucks used mainly in areas were there are roads access.roads access.Noise Noise -- minimalminimal

“Bicycle” Drill

Environmental OverviewEnvironmental OverviewExplorationExploration

Seismic Surveys:Seismic Surveys:

Equipment used: Equipment used: DigipulseDigipulse truck or truck or

Biodegradable charges Biodegradable charges -- placed in holes drilled and placed in holes drilled and covered, not notable at end of surveycovered, not notable at end of survey

“Bicycle” Drill

3.5 “ diameter hole10-15’ deep

Environmental OverviewEnvironmental OverviewExplorationExploration

Drilling Activities:Drilling Activities:Drilling mud (clay & water Drilling mud (clay & water –– disposed of at disposed of at site approved by the DOE)site approved by the DOE)

Noise Noise –– ((For safety and technical reasons the For safety and technical reasons the drilling operations are carried out by working drilling operations are carried out by working on a continuous 24 hour basis. This also on a continuous 24 hour basis. This also minimises the time the rig is on site.) minimises the time the rig is on site.)

Environmental OverviewEnvironmental OverviewExplorationExploration

Drilling Activities:Drilling Activities:The borehole itself would be progressively The borehole itself would be progressively lined with steel casing which would be lined with steel casing which would be cemented in place, thus protecting cemented in place, thus protecting underground water resources. underground water resources. SafetySafety

Detectors available on site and personnel trained Detectors available on site and personnel trained to handle this emergency.to handle this emergency.Rig is equipped with BlowRig is equipped with Blow--out preventorout preventor

Environmental OverviewEnvironmental OverviewField Development/ProductionField Development/Production

Flaring /Venting of associated gas:Flaring /Venting of associated gas:currently being flaredcurrently being flared

pipeline to be built (2 pipeline to be built (2 –– 3 3 mthsmths.) to a .) to a gathering and processing system that will gathering and processing system that will allow for the gas to be used for power allow for the gas to be used for power generation. Power to be utilized by BNEL.generation. Power to be utilized by BNEL.

Environmental OverviewEnvironmental OverviewField Development/ProductionField Development/Production

Map with Map with BNE’sBNE’s wells and gathering point.wells and gathering point.

Iguana Creek - Future Tank Farm Site

Environmental OverviewEnvironmental OverviewStorageStorage

Spill prevention and safety:Spill prevention and safety:Well site storage facilitiesWell site storage facilitiesBig Creek StorageBig Creek Storage

In place: containment walls (100%) of largest tank volume; In place: containment walls (100%) of largest tank volume; oil water separator; spillage kits (clean oil water separator; spillage kits (clean ––up materials, etc.) up materials, etc.) Tanks are built to API standard & have received certificationTanks are built to API standard & have received certificationFire trucks & a vacuum truck to be in placeFire trucks & a vacuum truck to be in place

Storage tanks at well site showing bund walls

Construction - Big Creek Storage (containment walls & base of storage tank)

Picture courtesy of the DOE

Portion of storage tank at Big Creek certified to API standard

Picture courtesy of the DOE

Environmental OverviewEnvironmental OverviewTransportationTransportation

Spill Spill Prevention PreventionPrevention PreventionVigilant monitoring of truckers to ensure compliance to strict Vigilant monitoring of truckers to ensure compliance to strict safety standardssafety standardsBNEL has developed an “Oil Spill Response Procedure for BNEL has developed an “Oil Spill Response Procedure for onshore and offshore loading.”onshore and offshore loading.”

OnshoreOnshoreSpillage kits located at SLO & Big Creek Spillage kits located at SLO & Big Creek 2 Fire trucks expected within 2 month. Training of personnel2 Fire trucks expected within 2 month. Training of personnelVacuum truck is on its way Vacuum truck is on its way To establish contract with heavy equipment owners along To establish contract with heavy equipment owners along transport route to provide additional support.transport route to provide additional support.

Vacuum TruckVacuum Truck

Foam Fire Truck

Environmental OverviewEnvironmental OverviewTransportation Transportation

Offshore:Offshore:Transfer process inspected by key agency including Transfer process inspected by key agency including DOE and international personnelDOE and international personnelContainment booms placed around barge and tanker Containment booms placed around barge and tanker during transferduring transferSmall skiffs stationed to monitor boom at all times. Small skiffs stationed to monitor boom at all times. Tanker/barge equipped with safety devices. Tanker/barge equipped with safety devices.

BNEL is seeking membership to the Clean BNEL is seeking membership to the Clean Caribbean & Americas organization that provides Caribbean & Americas organization that provides prompt response to marine oil spills in the prompt response to marine oil spills in the region.region.

Picture courtesy of Andrew Milham

The development of the Petroleum Industry in a sound environmental Manner.

The development of the Petroleum Industry in a sound environmental Manner.