1. MANSURIYA GAS PROJECT ENVIRONMENTAL IMPACT ASSESSMENT
EIA RESULTS
PRESENTATION
27 MARCH 2012

2. CONTENTS Introduction Project Description Regulatory Requirements
Environmental Conditions
Impacts and Mitigations
Management and Monitoring
Conclusions and Recommendations
Discussion 1

3. 1.0 introduction 2

4. INTRODUCTION EIA Objectives
1.1
Establish the existing environmental baseline conditions at the project site.
Identify the key issues and sensitive receptors.
Identify the nature and scale of potential impacts associated with the planned activities and accidental events.
Describe mitigation measures for the identified significant potential environmental impacts, including any post completion mitigation measures.
Outline an environmental monitoring plan for the project, including any post completion monitoring requirements.
Review TPOC environmental policy and HSE management procedures.
Assess compliance of the project against relevant Iraqi regulation and international environmental guidelines. 3

5. INTRODUCTION EIA Methodology
1.2
Project Information
Environment (Secondary Info.)
Legislation and Regulations
Scoping and Key Issue Identification (Scoping Report)
Project Design and Alternatives
Baseline Environmental and Socio- Economic Conditions
Detailed Legislative Review
Stakeholders Consultations
Baseline Environmental Survey
Identification of Aspects
Identification of Impacts
Quantitative / Qualitative Assessments
Alternative Actions
Mitigation
Comments and Review
Monitoring Plan
Findings and Recommendations (Environmental Impact Assessment Report) 4

6. INTRODUCTION EIA Report Outline
1.3
Executive Summary
Introduction (including scope and objectives of the EIA and methodology)
Policy, Legal and Administrative Framework
Description of the Project
Description/Evaluation of Baseline Environmental Conditions
Assessment of Environmental Impacts and Mitigation Measures
Alternatives
Environmental Management Plan
Summary, Conclusions and Recommendations
References
Appendices 5

7. 2.0 project descripton 6

8. Project Objectives/Rationale
PROJECT DESCRIPTION
Project Objectives/Rationale
2.1
MANSURIYA FIELD
MANSURIYA GAS POWER STATION
SADER GAS POWER STATION
QUDS GAS POWER STATION
DURA
REFINERY
10 km
140 km
2.5 km
LPG pipeline
Dry gas pipeline
Condensate pipeline
120 km
48 km
LPG FILLING STATION
Produce fuel gas for power plants:
Quds Power Station and Sader Power Station in Baghdad (existing)
Mansuriya Power Station (planned)
Condensate separated from the gas will be transported to the Dura Refinery for further processing via the existing pipeline
LPG produced will be supplied to a filling station in Mansuriya 7

9. N HAMRIN LAKE PROJECT DESCRIPTION Project Location 2.2 10 km BAGHDAD
BAQUBAH
MANSURIYA FIELD
40 km
IRAN
IRAQ
HAMRIN LAKE N 8

10. Well and Facilities Location
PROJECT DESCRIPTION N 18 9 19 20 29 8 6 26 15 23 24 13 14 22 28 25 17 11 12 16 21 3 5 1 2
2000 m
Well and Facilities Location
2.3
25 WELLS
LEGENDS
- WELLS
- MANIFOLDS
- FLOWLINES
Two (2) processing trains MMSCFD 9

11. PROCESSING FACILITIES
PROJECT DESCRIPTION
PROCESSING FACILITIES
2.4
SULPHUR PELLETIZING
SRU & TGTU
SALES GAS COMPRESSION
TAIL GAS
FLUIDS FROM WELLS
GAS COMPRESSION
INCINERATION (THERMAL OXIDIZER)
INLET SEPARATOR
TRAIN - 2
TRAIN - 1
GAS DEHYDRATION
CONDENSATE STABILIZATION & OFF-GAS COMPRESSION
SULPHUR
LPG EXPORT
DURA REFINERY
COMMON FACILITIES
FUEL GAS FOR POWER STATIONS
COMMON UTILITIES
** SRU – 2x50%; TGTU – 1x100%; Incinerator – 2x50%
ACID GAS REMOVAL UNIT
NGL EXTRACTION (TURBOEXPANDER)
LPG FRACTIONATION & STORAGE
ACID GAS REMOVAL UNIT
INLET SEPARATOR
NGL EXTRACTION (TURBOEXPANDER) 10

12. Process Water Treatment System Potable Water System
PROJECT DESCRIPTION
UTILITIES
2.5
Process Water Treatment System
Potable Water System
Demineralized Water System
Boiler Feed Water System
Instrument Plant Air System
Nitrogen System
Firewater System
Sewage Treatment System
Diesel Storage and Distribution
Power Generation Package 11

13. ERW (explosive remnants of war) clearing Earthworks and road works
PROJECT DESCRIPTION
CONSTRUCTION PHASE
2.7
ERW (explosive remnants of war) clearing
Earthworks and road works
Civil works
Mechanical and piping works, painting and insulation works
Electrical, instrumentation and communications works
Temporary facilities 12

14. 3.0 regulatory requirements13

15. REGULATORY REQUIREMENTS
IRAQI LAWS
3.1
Law No. 27 of 2009 for the Protection and Improvement of Environment - principal environmental legislation in Iraq and provides the legal framework and establishes responsibilities for environmental protection.
EIA procedure in Iraq. (Iraq EIA Diagram)
Regulation No. 25 of 1967 – Protection of Rivers and Public Water from Pollution.
Regulation No. 2 for Protection of Water Resources)
Other laws and regulation:
Gaseous and/or solid air emissions must be treated to comply with the local air quality specifications;
Solid waste must be treated by sanitary dumping or burning; and
Hazardous or toxic solid wastes must be disposed of in officially allocated sites.
Regulatory Guidelines 15

16. REGULATORY REQUIREMENTS INTERNATIONAL GUIDELINES
3.2
United Nations Convention to Combat Desertification (UNCCD)
International Convention on Biological Diversity, 1992
World Bank Guidelines:
World Bank Guideline on Wastewater (Environmental Guidelines, 2010)
World Bank Guideline on Waste Management
World Bank Environmental, Health and Safety (EHS) Guidelines for Petroleum Refining 15

17. 4.0 environmental condition16

18. ENVIRONMENTAL CONDITION
Baseline Surveys
4.1
Scope
Analysis Required
Parameters / Method
Walkover Survey
N/A
Site walkover survey undertaken to assess the existing environmental site conditions and identify any environmental sensitive receptors within the vicinity of the project site.
Surface Water Quality
Water sampling and laboratory analysis
BOD; COD; Heavy metals (Ag, Al, Ba, Cd, Co, Cr, Cu, Fe, Mn, Ni, Pb, Sb, Zn, Hg, As, Se); Total Petroleum Hydrocarbons (TPH); Polynuclear Aromatic Hydrocarbons (PAH); BTEXN = Benzene, Toluene, Ethylene, Xylenes, Naphthalene; Nutrients (Total N, total P, ammonia, nitrate, nitrite, phosphate); Total Dissolved Solids (TDS); pH; Cyanides; Phenols.
Soil Quality
Soil sampling and laboratory analysis
General soil quality parameters (pH, EC, F and SO4); Heavy metals (Ag, Al, Ba, Be, Cd, Co, Cr, Cu, Fe, Mn, Ni, Pb, Sb, Zn, Hg, As); Total Petroleum Hydrocarbons (TPH); Polynuclear Aromatic Hydrocarbons (PAH); BTEXN = Benzene, Toluene, Ethylene, Xylenes, Naphthalene; Nutrients (Total N, Total P, ammonia, nitrate, nitrite, phosphate); Organic Matter; Acid sulphate; Chlorides.
Air Quality
2-week monitoring using diffusion tubes
Sulphur Dioxide (SO2), Nitrogen Dioxide (NO2), Hydrogen, Sulphide (H2S), Ozone ( O3)
15-minute spot monitoring
Carbon monoxide (CO) and PM10
Noise
15-minute measurement
LAeq, LAmax, LAmin, LA90, LA10. 17

19. ENVIRONMENTAL CONDITION
Water Quality
4.2
Twenty (20) surface water samples
Parameters:
BOD
COD
Heavy metals (Ag, Al, Ba, Cd, Co, Cr, Cu, Fe, Mn, Ni, Pb, Sb, Zn, Hg, As, Se)
Total Petroleum Hydrocarbons (TPH)
Polynuclear Aromatic Hydrocarbons (PAH)
BTEXN (Benzene, Toluene, Ethylene, Xylenes, Naphthalene)
Nutrients (Total N, total P, ammonia, nitrate, nitrite, phosphate)
Total Dissolved Solids (TDS) pH
Cyanides
Phenols 18

20. ENVIRONMENTAL CONDITION
Water Quality
4.2 W1 W2 W3 W4 W5 W6 W7 W8 W9
W10
W11
W12
W13
W14
W15
W16
W17
W18
W19
W20
3 km N
Concentration (mg/l)
Station
WHO Standard
Cadmium
Cadmium exceedance in all locations (Sources of cadmium - steel industry, plastics and batteries; wastewater; fertilizers and local air pollution)
Manganese exceedance in one sample (W1) 19

21. ENVIRONMENTAL CONDITION
Soil Quality
4.3
10 Test pits (depth of cm)
Composite samples (90 cm, 50cm and 10 cm)
Parameters:
General soil quality parameters (pH, EC, F and SO4);
Heavy metals (Ag, Al, Ba, Be, Cd, Co, Cr, Cu, Fe, Mn, Ni, Pb, Sb, Zn, Hg, As)
Total Petroleum Hydrocarbons (TPH)
Polynuclear Aromatic Hydrocarbons (PAH)
BTEXN (Benzene, Toluene, Ethylene, Xylenes, Naphthalene)
Nutrients (Total N, Total P, ammonia, nitrate, nitrite, phosphate)
Organic matter
Acid sulphate
Chlorides 20

22. ENVIRONMENTAL CONDITION
Soil Quality
4.3 N
5 km S1 S2 S4 S3 S5 S6 S7 S8 S9
S10
Soil quality parameters are all well within the relevant limit (Dutch Intervention Values) NO CONTAMINATION
in the surveyed area 21

23. ENVIRONMENTAL CONDITION Air Quality Monitoring
4.4
Passive Diffusion Tubes at 10 monitoring locations for the following parameters (duration 2 to 3 weeks):
Sulphur Dioxide (SO2)
Nitrogen Dioxide (NO2)
Hydrogen Sulphide (H2S)
Ozone ( O3)
Hand held meters (15 minutes at each location) for the following parameters:
Carbon Monoxide (CO)
PM10 (Particulate Matter less than 10 Microns) 22

24. ENVIRONMENTAL CONDITION Air Quality Monitoring
4.4
Diffusion Tubes:
♦ SO2
♦ NO2
♦ O3
♦ H2S
DustTrack Dust Meter: M10
CO Meter 23

25. ENVIRONMENTAL CONDITION
Air Quality
4.4
Ambient concentrations of SO2, O3, NO2 and H2S) are well within the applicable standard.
Maximum concentration of SO2, O3 and NO2 are about 15%, 49% and 13% of applicable standards, respectively.
H2S concentrations are all below the analytical limit of detection (i.e ppb).
Maximum rambient PM10 concentration at AN7 (i.e. 230 µg/m3), exceeds the Iraqi standard (i.e µg/m3 for 24-hour averaging period) by about 50%. This exceedance can be attributed to wind-blown sand from the adjacent road
Maximum ambient CO concentration recorded is 2.17 mg/m3, is only about 21% of the Iraqi standard N
Hamrin Lake
Mansuriya Gas Field
6km 24

26. ENVIRONMENTAL CONDITION
Noise
4.5
Ten (10) locations for a duration of 15 minutes
Measures A-weighted SPL
LAeq
Average A-weighted SPL
LAmax
Maximum A-weighted SPL
L10..90
Percentile A-weighted SPL
LAmin
Minimum A-weighted SPL
RION NA-32 Type-1 Integrating Precision sound level meter, fitted with A and C filter 25

27. ENVIRONMENTAL CONDITION
Noise
4.5
Location
Description (1)
AN1
Camp Mansoor village
AN2
Mansuriya Village
AN3
Al Saada Village
AN4
Hamrin Village
AN5
Al Sada Village
AN6
Hamdan Arabs Village
AN7
Saloom Village
AN8
Open desert area
AN9
Hilly area
AN10
Desert area next to a river
- LAmin
- LAmax
- LAeq
- Iraqi Noise Limit
Exceedances at AN6 [58.8 dB(A)] and AN7 [58.4 dB(A)], respectively) exceeded the can be attributed to the few vehicles passing on nearby roads and natural noise sources such as flowing water in the river and irrigation canal. N
Iraqi allowable noise limit for residential areas - 55 dB(A)
6km 26

28. ENVIRONMENTAL CONDITION Topography and Geology
4.6
Mansuriya Gas Field
8.0 km
PROJECT SITE
Hamrin Lake N
The project site:
Alluvial plain
Generally hilly, with the highest elevation at about 190m) 27

29. ENVIRONMENTAL CONDITION
Ecology
4.7 A B N
Mountain Area
Hamrin Lake B
Plains
Hamrin River near the discharge gate of the Hamrin Dam F
Sparsely vegetated open field C D D
Mountain Area E
Farms / Villages A G H C
Sparsely vegetated open field, used for farming during rainy season
5km
Hamrin River E F G H
Farm areas irrigation canal, tributary of the main Hamrin River
Pomegranate plantation, mostly dry and dead during the survey
Open within Mansuriya used for farming during rainy season
Pond/lake within Mansuriya field 28

30. ENVIRONMENTAL CONDITION
Ecology
4.7
Farmlands (growing oranges, dates and pomegranates) irrigated through the rivers and canals from the Hamrin Lake and inland ponds. Most the farms adjacent to project site are dry and non-producing at the time of the survey due limited irrigation water reaching these areas in the past 2 to 3 years.
Mountain Area
Hamrin Lake N
Plains
Freshwater rivers and irrigation canals originating from the Hamrin Lake. The level of water in the rivers and canals varies, depending on the amount of water released at the Hamrin Dam which releases water once a week. Most of this habitat is located outside the project footprint.
Farms Villages
Ponds and lakes, inland standing freshwaters surrounded by aquatic or terrestrial plants, i.e. reeds (Phragmites australis) and Typha (Typha domingensis).
Open and hilly areas with sparsely distributed vegetation (shrubs). Some of these areas are used for farming during rainy season. 29

31. ENVIRONMENTAL CONDITION
Socioeconomics
4.8
DIYALA PROVINCE
17,685 km2
Capital – Ba’quba
59% urban area
6 Districts (Project site located in Khanaqin)
Electricity - 65% from national grid (1st Qtr 2011); Hamrin Power Plant – 12 MW
Main economic sectors - wholesale and retail trade (food/beverages), agriculture (horticulture) and light manufacturing (carpentry/metal works)
Orange capital of the Middle East
46% of population has irregular supply of drinking water N
Population Distribution by District 30

32. ENVIRONMENTAL CONDITION
Socioeconomics
4.9
Ethnic and Religious Composition of Diyala Province N 31

33. ENVIRONMENTAL CONDITION
Socioeconomics
4.9 A B D C E F G
Camp Mansoor Village
Mansuriya Village
Al Sada Village
Hamrin Village
Al Saada Village
Hamdan Arabs Village
Saloom Village N
5 km N
Villages in the Vicinity of Mansuriya Field 32

34. ENVIRONMENTAL CONDITION
Environmental Component Likely-to-be Affected
4.10
No ecological habitats of particular significance within the project footprint
Relocation of the residents of Hamrin Village, which is within the project footprint
Local supply of basic resources in the area, i.e. water N 33

35. 5.0 impacts and mitigation34

36. ENVIRONMENTAL IMPACTS
CONSTRUCTION PHASE
5.1
Aspect
Reference No.
Activity / Potential Impact
Significance
Noise
MGP-C-N1
Increased ambient noise level due to the operation of equipment and vehicle
Minor
Air Quality
MGP -C-A1
Emission of combustion gases (i.e. NOx, So, PM and CO) from the operation of equipment, diesel generator sets and vehicles
Negligible
MGP-C-A2
Dust generation due to vehicles movement and construction activities such as trenching, site preparation, etc.
MGP-C-A3
Emission of NO2, SO2, PM and CO from flaring during commissioning
Liquid Discharges
MGP-C-L1
Sewage from temporary sanitary facilities at construction site
MGP-C-L2
Dewatering effluent
MGP-C-L3
Used hydrotest water discharge
MGP-C-L4
Leaks and damage to fuel or chemical storage tanks
Solid Wastes
MGP-C-W1
General construction, domestic wastes and hazardous wastes, i.e. batteries, maintenance wastes, chemical waste, etc.
Terrestrial Ecology
MGP-C-T1
Loss and disturbance of habitats resulting from site preparation and construction
Socio-economic
MGP-C-S1
Job opportunities
Positive
MGP-C-S2
Increased demand on basic resources and utilities due to the influx of construction personnel and workers
MGP-C-S3
Relocation of Hamrin Village
Moderate
MGP-C-S4
Land-use impact, particularly on areas within the gas field that is being used in farming during rainy season. 35

37. ENVIRONMENTAL IMPACTS
DRILLING
5.1
Aspect
Reference No.
Activity / Potential Impact
Significance
Waste
MGP-O-D1
Disposal of drilling mud and cuttings
Minor
Air Quality
Emission of NO2, SO2, CO from flaring during well testing
Moderate
Noise
Increased ambient noise level due to noise generation during drilling
Negligible 36

38. ENVIRONMENTAL IMPACTS
OPERATION
5.1
Aspect
Reference No.
Activity / Potential Impact
Significance
Air Quality
MGP-O-A1
Emission of NO2, SO2, CO from power generation
Minor
MGP-O-A2
Emission of NO2, SO2, CO from flaring during operations
MGP-O-A3
Emission of NO2, SO2, CO from incineration of off-gas, tail gas and vent gases
MGP-O-A5
Emission of NO2, SO2, CO from combustion of fuel gas in steam boilers
MGP-O-A6
Emission of NO2, SO2, CO from combustion of fuel gas in the export gas compressor turbine
MGP-O-A7
Emission of NO2, SO2, CO from combustion of fuel gas in the regeneration gas heater
Noise
MGP-O-N1
Increased ambient noise level due to operation of the compressor station and associated facilities
Liquid Discharges
MGP-O-L1
Process drains
Negligible
MGP-O-L2
Produced water discharge
MGP-O-L3
Boiler blowdown
MGP-O-L4
Sewage generation
MGP-O-L5
Rain runoff
Solid Wastes
MGP-O-W1
General operational wastes (i.e. maintenance wastes, solid wastes from pipeline drain during pigging, etc.)
Socio-economic
MGP-O-S1
Job opportunities; Improved local economy
Positive
Accidental Event
MGP-O-AC1
Accidental release of gas and condensate due to pipeline or equipment rupture
Moderate 34

39. Construction phase Drilling operations Operation phase MITIGATIONS 5.238

40. 6.0 management & monitoring39

41. MANAGEMENT & MONITORING
ENVIRONMENTAL MANAGEMENT
6.1
Construction Environmental Management Plan (CEMP) and Operational Environmental Management Plan (OEMP) should be developed.
An Environmental Management Group (EMG) should be created.
HSE induction and training procedures should be developed as part of the project’s HSE Plan. 40

42. MANAGEMENT & MONITORING
ENVIRONMENTAL MONITORING
6.2
Emission/ Discharge
Parameter
Method
Location and Frequency
Remark
Air Quality
SO2, NOX, CO PM
Continuous emission monitoring system (CEMS)
Continuous
Periodic stack emission monitoring
Gas turbines emission stacks during commissioning and annually thereafter.
Provision for sampling ports for all emission source
SO2, NOX, CO PM, H2S,VOC
Ambient air monitoring
Quarterly
Location of sensitive receptors during operation should be considered.
Noise
LAeq, LAmax and LAmin dB(A)
Spot monitoring with hand held noise monitor
At facility’s perimeter fence and accommodation areas during commissioning and quarterly thereafter
Effluents
pH, temperature, COD/BOD, TOC, turbidity, salinity and dissolved oxygen
Periodic laboratory analysis of a representative sample
Produced water and treated wastewater
Waste
Quantity per waste type and final disposal method
Regular inspection and waste manifest
Point of generation
Record (waste manifest) should be maintained. 41

43. 7.0 conclusions and recommendations42

44. CONCLUSIONS & RECOMMENDATIONS
7.1
None of the identified potential environmental impacts can be considered as significant.
The relocation of the Hamrin Village, which is located within the project footprint, is a key issue that needs to be addressed. 43