falcon seismic emp 2 executive summary

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    Exploration Right Environmental Management Programme Report:

    Seismic Survey, Southern Karoo Basin

    Falcon Oil & Gas Ltd

    EXECUTIVE SUMMARY

    Introduction

    1.1 BackgroundFalcon Oil & Gas Ltd (Falcon) is applying for an

    Exploration Right in terms of the Mineral and Petroleum

    Resources Development Act 28 of 2002 (MPRDA) to

    conduct natural gas exploration by means of a seismic

    survey in the southern part of the Great Karoo Basin,

    South Africa.

    The application area (refer to Figure 1) encompasses

    more than 2 500 farms and farm portions (1 239 title

    deeds). Falcon proposes to conduct seismic data

    acquisition on a limited number of these only (see

    Section 2.3 below).

    1.2 Legal RequirementsSection 5(4) of the MPRDA states that any proponent

    may not explore for petroleum or commence with any

    work incidental thereto on any area without:

    An approved Environmental ManagementProgramme (EMP);

    An Exploration Right; and

    Notifying and consulting with the landowners or

    lawful occupiers of the land in question.

    In order to apply for an Exploration Right, Falcon

    completed the prescribed Application Form and

    submitted it to the Petroleum Agency of South Africa(PASA) the designated agency regulating petroleum

    exploration and production in terms of the MPRDA on

    31 August 2010. PASA accepted the Application Form

    on 7 September 2010 (PASA Reference No: 12/3/208/1)

    and instructed Falcon to notify and consult with

    National Environmental Management: Biodiversity

    Act (Act No. 10 of 2004);

    National Heritage Resources Act (Act No. 25 of

    1999); and

    National Water Act (Act No. 36 of 1998).

    Project Description

    2.1 Background and Motivation

    Falcons proposed seismic survey exploration

    programme is intended to assist in determining whether

    the unquantified shale gas known to occur in the

    application area constitutes a commercially viablenatural gas resource.

    Natural (methane) gas provides a cleaner form of

    energy than coal or oil. Shale gas exploration is,

    therefore, strategically important to identify and assess

    potential sources of natural gas which could provide

    alternative energy sources to South Africa.

    Should the seismic survey results indicate the presence

    of a potentially viable shale gas resource, Falcon may

    apply to PASA for the right to conduct further

    exploration in the form of exploration well drilling,

    which would be necessary to ascertain the commercial

    viability of the resource. If production of gas were to be

    pursued, Falcon would have to apply for a Production

    Right.

    This EMP Report is concerned with the seismic survey

    exploration programme only since the location and

    extent, as well as the potential viability of any shale gas

    resource, are not known at present.

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    FOUD/dalc 424473_Falcon_Seismic EMP_Executive Summary_FINAL January 2011

    Figure 1: Map of the application area, key environmental characteristics and the preliminary seismic survey lines.

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    2.3 Seismic Field Data Acquisition

    Falcon has identified preliminary locations (routes) for

    the survey lines (see Figure 1). These lines will be

    finalised during Year 1 of the exploration programme

    and will be amended as far as possible to incorporatelandowner concerns and environmental constraints.

    Wherever possible, seismic lines will follow existing

    roads, tracks and other previously disturbed areas.

    Up to 1 000km seismic data will be acquired using the

    shot hole method. This involves drilling 5m-deep shot

    holes at approximately 50m intervals along the seismic

    lines. The holes will be drilled using one of a number ofsmall types of portable drilling rigs, depending on the

    local conditions.

    Small explosive charges placed in each hole and

    detonated in a controlled manner create and transmit

    pulses of acoustic energy into the ground. Different

    geological strata will reflect this back to the surface and

    geophones (receivers) placed along the seismic lines willpick up and record the time taken for the sound wave to

    reflect back to the surface. This information is then

    interpreted to form a picture of the geological layers in

    the survey area.

    Falcon will appoint a contractor to undertake the

    seismic data acquisition activities in the field. A seismic

    crew of roughly 18 to 22 staff, with equipmentcomprising around four 4x4 vehicles (bakkies), two

    vehicle-mounted drills (one of which will be small and

    specifically designed for off-road areas) and three small

    transportation trucks, will be active in the field for the

    expected 6 to 8-month duration of the seismic survey.

    The Affected Environment

    The southern Karoo region has a semi-arid climate with

    hot summers and very cold winters. Rainfall in the area

    is generally low and the area has experienced severe

    drought over the last few years.

    level. Groundwater is used extensively in the Karoo and

    abstraction takes place year-round.

    Air quality in the application area is generally good as

    there is little industrial development or other sources of

    air pollutants in the vicinity, although dust levels are

    likely to be relatively high in the arid Karoo conditions.

    The application area is rural in nature and generally

    quiet. Any noise that is generated is typical of

    agricultural areas and comes from agricultural vehicles,

    machinery and road traffic.

    The application area is vast and encompasses a

    significant diversity of habitats and vegetation types in

    four ecoregions or biomes. The bulk of the application

    area falls within the semi-arid Nama Karoo Biome. The

    Succulent Karoo Biome makes up the western quarter

    of the application area where there are also some

    relatively small areas on the escarpment that are part of

    the Fynbos Biome. In the eastern quarter of the study

    area there are relatively small patches that fall within

    the Thicket Biome.

    The application area is dominated by two Nama Karoo

    vegetation types, namely Gamka Karoo (central area)

    and Eastern Lower Karoo (eastern area), and the

    preliminary seismic lines transect these two vegetation

    types for the most part. None of the vegetation types

    that occur in the application area is listed as threatened,

    although most types have high proportions of SouthAfrican endemics. Some dwarf succulent species, for

    example, have very restricted ranges and specialized

    habitat requirements, making them very sensitive to

    disturbance.

    Although large parts of the application area comprise

    natural veld (with some degraded areas) there are no

    completely pristine areas remaining in the Karoo,largely due to the effects of grazing.

    The application area largely hosts animals with

    extensive distributions, although diversity and

    endemism among invertebrates and reptiles is high in

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    disappeared, some species do still occur or have been

    reintroduced into protected areas or private game

    farms, along with some non-indigenous species.

    Very few formally protected areas fall within or overlap

    with the application area and the preliminary seismic

    survey lines are located well away from these, although

    a number privately-owned game and other farms that

    are managed for conservation and/or ecotourism

    purposes do fall within the application area.

    Several areas identified as focus areas for protected

    area expansion by the National Protected Areas

    Expansion Strategy (NPAES) also occur in the application

    area. In addition, the preliminary seismic survey lines

    also traverse a number of areas highlighted on the

    Critical Biodiversity Area (CBA) maps for the region.

    The cultural/heritage resources in the application area

    consist of archaeological sites ranging from Early Stone

    Age occupation right into the historical period, most of

    which are well represented elsewhere and not unique

    to the Karoo. Historical period sites, such as historic

    farmsteads and towns with associated formal and

    informal burial grounds are also present.

    The greater Karoo Basin is very important for its

    palaeontological resources. The application area is rich

    in known fossil sites, particularly in the western half and

    in the Sundays River valley in the east.

    The application area comprises the districts of Ceres,

    Laingsburg, Prince Albert and Beaufort West in the

    Western Cape; Fraserburg and Sutherland in the

    Northern Cape and Aberdeen, Graaff Reinet,

    Jansenville, Willowmore and Pearston in the Eastern

    Cape (see Figure 1). Most of these towns fall just

    outside the application area. The larger settlements

    that fall within the application area include Merweville,

    Leeu-Gamka, Rietbron, Aberdeen and Jansenville.

    The majority of the land within the application area is

    privately owned farmland, mostly used for raising

    livestock (sheep, goats and some cattle) and game for

    optimisation) measures designed to reduce the

    significance of negative impacts (or enhance benefits).

    Seismic data acquisition activities will move along

    rapidly (up to 10km per day) and direct impacts will

    therefore mostly be of very short duration. Impacts will

    also mostly be limited to the project footprint and, as

    activities will mostly take place on previously disturbed

    areas, would be of limited intensity.

    A summary of the significance of the potential impacts

    and key recommended mitigation measures is provided

    in Table 1. Potential impacts have all been assessed to

    be insignificant or of very low or low significance with

    the implementation of the recommended mitigation

    measures, which have all been incorporated as

    management actions into the EMP (see below).

    Environmental Management Programme

    The primary purpose of the EMP is to detail the

    management and control measures required to ensure

    that the mitigation measures identified to minimise

    potential negative impacts are effectively implemented,

    and that all seismic survey exploration activities are

    conducted in a sustainable and environmentally

    responsible manner.

    5.1 Roles and Responsibilities

    Several role-players will be involved in theenvironmental management of the seismic survey

    activities. These role-players and their responsibilities

    are:

    PASA responsible for monitoring Falcons

    compliance with the conditions of the Exploration

    Right and the EMP;

    Falcon has overall responsibility for the

    implementation of and compliance with the

    conditions of the Exploration Right and the EMP.

    During seismic data acquisition activities, Falcon will

    be represented on site by a full-time Site Agent;

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    environmental concerns or project aspects will be

    compiled and implemented during the seismic survey

    exploration programme, including the following:

    Land Use Agreements will be drawn up with each

    landowner and will set out management measures

    and requirements for working on private property

    (including compensation arrangements);

    Vegetation Management Plans will be

    implemented where the final seismic surveys lines

    cannot avoid natural vegetation in specific areas of

    concern within the application area;

    An Environmental Awareness Plan will beimplemented to ensure that all staff are aware of

    the content and requirements of the EMP and their

    environmental responsibilities in this regard;

    A Grievance Mechanism will be implemented to

    ensure that IAPs can register complaints and that

    these will be addressed quickly and adequately; and

    Compliance Monitoring will take place through

    daily monitoring checklists completed by the

    Seismic Contractor and signed off by the Falcon Site

    Agent, as well as fortnightly EMP compliance

    reports compiled by the ECO.

    5.3 Environmental Specifications and Management

    Actions

    The mitigation (and optimisation measures) identified

    during impact assessment are incorporated into the

    EMP as the key environmental specifications and

    management actions that Falcon (and the Seismic

    Contractor) commit to implement during all activities in

    the field during the seismic exploration programme.

    5.4 Financial Provision

    Falcon must make financial provision for environmental

    management of the seismic exploration activities,

    including rehabilitation. Financial provision is calculated

    based on the requirements of the EMP.

    The main concerns raised by IAPs with regard to the

    proposed seismic exploration activities related to:

    Potential impacts on water resources, specifically

    groundwater;

    Landowner rights and compensation; and

    Potential impacts on vegetation (and grazing).

    Many of the concerns and objections raised by IAPs did

    not pertain to the proposed seismic survey exploration

    programme per se, but related to the renewed interest

    in the Karoo for potential gas production in general and

    the implications of possible future gas production for

    the region. These concerns could not be addressed in

    the EMP as the activities that they relate to are not

    included in the application to PASA since they are not

    currently proposed and no details are available. Any

    predictions with respect to such activities would

    therefore be premature and, at best, speculative and

    theoretical.

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