Lahendong 5&6 Revised ESIA Report - Volume IV Environmental and Social Management Plan February 2011 Pertamina Geothermal Energy Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized
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There is an opportunity for capacity building within PGE to improve the provision of training for the on-site
environmental engineer in order to effectively identify and manage environmental issues associated with
the construction of Lahendong Units 5&6. In part, this is due to lack of environmental specialists within the
Jakarta head office team available to provide the necessary guidance. PGE has taken steps to introduce
new quarterly co-ordination meetings for all of its on-site environmental engineers starting in January 2011
during which training briefings can be facilitated. These quarterly meetings will include all site
environmental engineers from PGE’s operational sites and projects (there are currently nine projects in
total) with PGE head office environmental specialists briefing the site environmental engineers on the
following (but not limited to):
� Updates in any relevant Indonesian environmental regulation;
� Updates in any relevant PGE environmental management systems / procedures;
� Environmental issues arising at other sites for wider dissemination on lessons learnt in order to prevent
repeat occurrences across PGE projects;
� Guest lectures from external agencies when possible (e.g. KLH).
The success of this quarterly co-ordination programme for on-site environmental engineers and also
ongoing monitoring of projects is subject to sufficient environmental specialists being available in the head
office. Currently, the head office includes one environmental specialist who is responsible for the
implementation of environmental management across all operational sites (three sites as PGE and five
sites as joint operation contract or venture) and all projects under development (nine projects in total as of
January 2011). For all projects, this one environmental specialist is responsible for ensuring all
requirements of RPL/RKL or UPL/UKL are met as well as managing the letting of contracts for the AMDAL
and UKL/UPL processes associated with new projects. This also involves co-ordination with various
government agencies to secure AMDAL or UPL/UKL approval (further taking into account that for any one
project, a number of AMDALs or UKL/UPLs may be required to accommodate the overall geothermal
project development as is the case for Lahendong Units 5&6).
In addition, this individual environmental specialist is responsible for the implementation of the PGE
environmental management system and oversight of all on-site environmental engineers. With the
increase training burden for on-site environmental engineers as identified above, this workload is
considered to be far in excess of what the current individual environmental specialist can be expected to
perform and it is therefore identified that additional environmental specialists are required in the head
office. All projects / on-site environmental engineers would further benefit from a greater frequency of
project environmental audits from head office environmental specialists.
PGE currently recognises the shortage in environmental staff in the head office and currently has an
environmental manager position identified. In addition to this environmental manager position, PGE also
has another vacancy for an environmental specialist to supplement the existing environmental specialist.
With these new resources in place, PGE will have sufficient head office resource in order to effectively
provide guidance and oversight for the on-site environmental engineer in the implementation of this ESMP.
PGE has further committed to ongoing training of the head office environmental specialists with a mixture
of internal and external training courses. External training courses include those run within Indonesia by
external agencies such as KLH or EBTKE and also courses specifically in geothermal environmental
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issues run internationally by higher education establishments in countries such as New Zealand and
Iceland.
The environmental manager, head office environmental specialist and site environmental engineer posts
will be responsible for the range of environmental aspects set out in Sections 4 and 5 of this ESMP.
2.3.2 Social Staff
Similar to environmental staff, there is an opportunity for capacity building within PGE to improve the
provision of training for the on-site Public Relations Officer (PRO) in order to effectively identify and
manage social issues associated with the construction of Lahendong Units 5&6. For the Lahendong Units
5&6 project, there is one PRO employed on-site. In addition, contractors are required to have a
Community Liaison Officer (CLO) identified to work in conjunction with the PGE PRO. One PRO per site is
sufficient and no further capacity is needed. However, there is a requirement for further training for the on-
site PRO as this individual will be responsible in part for the adherence to the Land Acquisition and
Resettlement Policy Framework in the event of any future land acquisition required to support the project.
In addition, the PRO will be required to assist with the implementation of various commitments included
within this ESMP. For example, implementation of the Community Grievance Mechanism, HIV / AIDS
awareness programme, malaria awareness programme and the traffic safety sessions for children.
As for environmental staff, there is insufficient capacity in head office for overall co-ordination / support to
site based PRO. Much of this requirement falls upon the two public relations and government relations
members of staff responsible for all PGE operations and projects with input on consultations from the
single environmental specialist. Currently, PGE has one further position identified for recruitment thereby
expanding the number of head office public relations and government relations staff from two to three
(including one manager). This additional recruitment will alleviate staff shortages in the Head Office and
will enable more frequent visits to the Lahendong Units 5&6 project thereby enabling training of the public
relations specialist on-site to be facilitated.
The head office public relations and government relations and the site PRO posts will be involved in the
mitigation and enhancement activities set out in Sections 4.2 and 5.2 of this ESMP.
2.4 Contractors’ EHS Management
Although not a requirement, preference will be given to selection of contractors who are ISO 14001:2004
and OHSAS 18001:2007 accredited or have equivalent accreditation. This standard places strong
emphasis on the need for continuous improvement of the environment and health and safety management
systems and resultant environmental and health and safety management performance. In particular, for
the power plant and steamfield, as part of the tender process for the construction phase there will be a
requirement that both the EPC contractors, drilling contractors and their respective local partners provide
copies of their EHS policy, procedures, an overview of their management system and an example
construction EHS management plan for review. In addition the EPC contractors and drilling contractors will
be required to include within their proposal for a dedicated EHS professional to be part of the project team
based on site full time.
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PGE’s appointed EPC contractors and drilling contractors will be required to agree to the following actions:
� Implement the requirements of the construction ESMP as defined in this Volume IV below;
� Provide a construction site layout plan that identifies key activity area including laydown,
accommodation and welfare blocks, parking etc. prior to commencement of works;
� Produce detailed method statements relating to key activities that include specific reference to
requirements of the plans contained herein during the project progression;
� Provide all training necessary to oversee and implement ESMP requirements
� Be responsible for producing comprehensive suite of EHS management and coordination procedures;
and
� Identify a full time person on site with dedicated EHS responsibilities to oversee works on site.
The EPC contractors and drilling contractors project management organisation will be required to be
responsible for sub-contractors’ performance, including ensuring that sub-contractors adhere to the
requirements of the construction ESMP.
The PCDP identifies the need for the EPC contractors and drilling contractors to identify someone within
their full time team to act as Community / Stakeholder Liaison Officer (CLO). This person will be the first
point of contact between PGE and the EPC contractors / drilling contractors for coordinating the
implementation of the PCDP including advance notification of works with the potential to impact on wider
stakeholders and the community, and for processing and closing out of community grievances.
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3.1 Overview
In parallel to the general ESMP, a number of topic specific documents are required. Prior to each new
phase in the development (such as any new wellpad development / additional wells drilling during
construction or operation), and prior to commissioning of the plant, PGE will develop a number of plans,
policies and procedures to ensure adequate management and monitoring of social and environmental
aspects. Table 3.1 below summarises key policies required. Given the current start of activities at Clusters
26, 27 and 32, timescales for policies relevant to drilling and construction activities have been set as
immediate. PGE’s current management system already covers a number of the policies identified below.
Table 3.1 also makes reference to the requirements to implement or produce a number of management
plans. It is intended that these framework plans will be elaborated by PGE to complement its existing
Environmental, Health and Safety Management System specifically for the Project. Where relevant and
under respective contracts, drilling contractors and the EPC contractors (power plant and SAGS) should be
required to implement corresponding arrangements (as directed within the ESMP). As a minimum, the
following is likely to be required:
� Site waste management plan;
� Recruitment plan;
� Retrenchment plan;
� Waste management plan;
� Traffic management plan;
� Temporary worker accommodation management plan; and
� Chance finds procedure.
Frameworks for these plans are provided within this Volume.
3.2 Identification of Indonesian Geothermal Environment Forum
During the course of elaborating this international quality ESIA, PGE has identified a number of
requirements for internal capacity building (see Section 2.3 above) as well as the need for various
monitoring government agencies to be more familiar with key issues to be addressed by the geothermal
industry as a whole. Although the requirement for government agency capacity building has been
identified, it is beyond PGE’s remit as a private company to be responsible for training government
agencies that have an institutional responsibility for monitoring PGE’s project development activities.
Furthermore, the identification of need for institutional agency capacity building should be done in
agreement with the overall Indonesia geothermal industry, not PGE operating in isolation as part of a
project specific ESMP. Such a collective endeavour will ensure that any agency capacity building is aimed
at serving the requirements of the Indonesian geothermal industry as a whole to be benefit of all industry
stakeholders.
In order to further a collective endeavour, PGE is committed to the formation of an industry-wide
geothermal environment forum with invitations extended to all existing operators within Indonesia. Interest
has also been registered by other geothermal operators. A regular Indonesian geothermal environment
forum meeting represents an opportunity for environmental issues facing the geothermal industry as a
whole to be discussed, agreed and presented as a collective for discussion with government stakeholders
(notably KLH). Such an approach will enable the geothermal industry as a whole to identify potential
obstructive barriers to geothermal development as well as raising awareness of important responsibilities
for the geothermal industry to be cognisant of (such as robust assessment of potentially harmful emissions
3. Plans, Policies and Procedures
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to local communities and more regular identification of precautionary abatement to address such
emissions). A geothermal environment forum can propose and agree with the government a potentially
more streamlined environmental management process for operations where a potential re-designed
UKL/UPL process can be configured bespoke to the geothermal industry allowing more focus on issues
that are considered of greatest / most importance.
In order to provide impetus for the geothermal forum formation, for its effective operation, and for securing
necessary support from all member geothermal operators, Mott MacDonald recommends that PGE
represents to the Indonesian government the need for an initial grant mechanism request to be made to,
for example, an international donor agency. This could be administered via KLH and / or technical
department New Energy, Renewable and Energy Conservation - EBTKE (under Ministry of Energy and
Mineral Resources). An initial estimate of meaningful start-up budget for the forum is $300,000 with an
annual budget thereafter of $100,000. As a suggestion, the start-up budget would be aimed at external
support engagement to independently elaborate objectives for the geothermal environment forum (collating
objective aims from all respective operators), an external chair for an inauguration workshop event drawing
on a range of national and international contributors. The event organiser would be responsible for
collating the findings of the forum together with identification of priority issues to be taken forward in future
forum workshops with an eventual aim of presenting an industry consensus to relevant government
agencies.
It is hoped that through the formation of an Indonesian geothermal forum, the industry as a whole can build
capacity which can thereafter be communicated through to relevant government agencies.
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Table 3.1: Plans, Policies and Procedures
Aspect Plan / Policy Objective / Content Timescale PGE Department Responsibility
Institutional Monitoring Responsibility
Recruitment Recruitment policy
(See Section 6.2)
Retrenchment plan
(See Section 6.3)
Equity in local employment benefits / minimise social conflict. Prohibit the use of child and forced labour /promote non-discrimination and equal opportunities. Refer to:
• IFC PS2 – Labour and Working Conditions and ILO Fundamental Human Rights Conventions: Elimination of Forced and Compulsory Labour (Conventions 29/105) – ratified 1950/1999;
• Elimination of Discrimination in Respect of Employment and Occupation (Conventions 100/111) – ratified 1958/1999;
• Abolition of Child Labour (Conventions 138/182) – ratified 1999/2000; ILO Core Labour Standard
• Law No. 13 of 2003 regarding Manpower
Immediately. Policy to be disclosed.
Overall responsibility of recruitment policy / retrenchment policy with Head Office Human Resources.
Project Manager (construction) / General Manager (operation) responsible for implementation at project / operation level.
Labour Agency at Regency Government Level
Community Complaints
Community Grievance mechanism
(See Volume II, Section 6.10)
Formalised process by which grievances can be raised by the local community during construction and operation and to allow structured investigation by PGE to review the validity, responsibility and response / action.
Immediately. Policy to be disclosed.
Overall responsibility of community grievance mechanism with Corporate Secretary
Project Manager (construction) / General Manager (operation) responsible for implementation at project / operation level.
Communication Agency at Regency Government Level
Labour Complaints
Labour Grievance mechanism
(See Section 6.4)
Formalised process by which grievances can be raised by the workforce during construction and operation and to allow structured investigation by PGE to review the validity, responsibility and response / action.
Immediately. Policy to be disclosed.
Overall responsibility of labour grievance mechanism with Head Office Human Resources.
Project Manager (construction) / General Manager (operation) responsible for implementation at project / operation level.
Labour Agency at Regency Government Level
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Aspect Plan / Policy Objective / Content Timescale PGE Department Responsibility
Institutional Monitoring Responsibility
Occupational Health and Safety
OHS management plan
(Existing PGE SMK3LL)
Safe working environment, procedures and culture. Further policies / procedures to be developed on top of SMK3LL if need identified through site audits
IFC PS2 – Labour and Working Conditions
World Bank Group EHS General Guidelines on Occupational Health and Safety (OHS)
Ministry of Manpower Letter No. SE-01/MEN/1997, H2S exposure limit
As needed Overall responsibility of OHS management plan with Head Office QHSE.
Project Manager (construction) / General Manager (operation) responsible for implementation at project / operation level.
Directorate General of New Renewable Energy and Energy Conservation (EBTKE) (under Ministry of Energy and Mineral Resources)
Chemicals and fuels. Spent oils and lubricants.
Management procedures.
Spill response plan
(Existing PGE SMK3LL / requirements of UKL/UPL)
Appropriate storage, transfer and use of chemicals and fuel on site.
Identify responsibilities and equipment required to deal with a spill.
Immediately. Procedures to be communicated to contractors.
Prior to commissioning for operations related procedures
Overall responsibility of spill response plan with Head Office QHSE.
Project Manager (construction) / General Manager (operation) responsible for implementation at project / operation level.
Implementation and effectiveness to be reported to BLH through the UKL/UPL process
Groundwater quality
Investigation and remediation strategy
Action plan to assess any reduction in groundwater quality in the villages and measures to be implemented, including stopping the source if identified and providing alternative water sources.
Immediately – formalising current practices
Before commissioning for operation phase procedures.
Overall responsibility of groundwater investigation and remediation with Head Office QHSE.
Project Manager (construction) / General Manager (operation) responsible for implementation at project / operation level.
BLH at Regency Government level; Ministry of Environment
Waste Waste Management Plan
(see Section 6.5)
See Section 6.5.
Identify measures for minimisation of waste and safe disposal of construction / operation wastes
Immediately. WMP to be developed by / communicated to contractors.
Overall responsibility of waste management plan with Head Office QHSE.
Project Manager (construction) / General Manager (operation) responsible for implementation at project / operation level.
BLH at Regency Government level; Ministry of Environment
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Aspect Plan / Policy Objective / Content Timescale PGE Department Responsibility
Institutional Monitoring Responsibility
Drilling muds and cuttings
Management procedures.
Spill response plan
(Existing PGE SMK3LL / requirements of UKL / UPL)
Appropriate storage, handling, testing, transport and reuse of drilling mud or cuttings on site or disposal.
Identify responsibilities and equipment required to deal with a spill
Immediately. Procedures to be communicated to contractors
Overall responsibility of spill response plan with Head Office QHSE.
Project Manager (construction) / General Manager (operation) responsible for implementation at project / operation level.
BLH at Regency Government level; Ministry of Environment
Transport Traffic Management Plan
(see Section 6.6)
See Section 6.6 Prior to main mobilisation / demobilisation periods. Plan to be developed with / by contractors.
Project Manager (construction) / General Manager (operation) responsible for implementation at project / operation level.
Regency Government and local police
Archaeology Chance finds procedure
(see Section 6.8)
See Section 6.8. In particular, the procedure should include:
• Definition of cultural resources / archaeological features
• Ownership of the artefact
• Recognition
• Procedure upon discovery:
− Conditions and requirements for work stoppage
− Fencing and protection of the find
− Internal reporting
− Expert analysis
− Instructions for moveable finds
Immediately. Procedures to be communicated to contractors / requirement within contractors contracts.
Overall responsibility of chance finds procedure with Head Office QHSE.
Project Manager (construction) responsible for implementation at project level.
Notification to the Preservation of Archaeological Heritage Office (Balai Pelestarian Peninggalan Purbakala) and Archaeology Office (Balai Arkeologi).
BLH at Regency Government level; Ministry of Environment
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Aspect Plan / Policy Objective / Content Timescale PGE Department Responsibility
Institutional Monitoring Responsibility
Brine / condensate
Brine management plan
Minimise and control brine discharges during well production tests or in case of a reinjection failure during operation. Plan to involve secondary containment and procedure to reroute the brine / condensate, brine treatment (heat, pH etc.) prior to discharge if required, community warning
Available before commissioning and during operational life of project
Overall responsibility of brine management plan with Vice President of Management Operations and Utilities.
Project Manager (construction) / General Manager (operation) responsible for implementation at project / operation level.
Directorate General of New Renewable Energy and Energy Conservation (EBTKE) (under Ministry of Energy and Mineral Resources);
BLH at Regency Government level; Ministry of Environment
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4.1 Overview
The construction ESMP is summarised in the following tables. These include measures to be transposed
into each contractor’s ESMP (EPC contractors for power plant and SAGS and drilling contractors) or work
procedures. Reference is also made to the above plans and procedures for PGE to work with its
contractors to ensure adequate implementation. PGE will review and approve the EPC Contractors and
drilling contractors respective HSE Plans to ensure continuity with PGE HSE requirements (including
commitment to this ESMP).
All mitigation measures and monitoring requirements applicable to wells drilling during Project
development should also be applied for make up wells drilling during operation and maintenance. The
ESMP shall be updated (in particular roles and responsibilities) and relevant requirements should be
included as part of each new drilling contract.
The following sub-sections address individual project construction activities identifying specific mitigation
and monitoring measures associated with environmental and social aspects where relevant and as
required.
Table 4.1 sets out the structure of the construction ESMP as presented over the following sub-sections.
Equity in local employment benefits / minimise social conflict
Employment generation
PGE Recruitment Policy (see Section 6.2) to specifically include requirement to prioritise local employment taking into account available skills. Requirement to also be reflected in contractor’s employment policy.
(refer to Section 6.2) (refer to Section 6.2)
Ongoing implementation
Disclosed Recruitment Policy in Site Office and Kepala Desa offices of local villages.
Village committee meeting minutes.
Included in normal human resources and site management budget.
Local skills development
Employment generation
Local employment to be prioritised, contractor to provide additional specialised training to local workforce in skills required by contractor (i.e. administrator, driving etc).
World Bank Operational Policy 4.01 Environmental Assessment
PGE Project Manager
EPC Contractors
Ongoing implementation
Addition of local skills development requirement of EPC Contractor contract.
Records of specialised training for local staff provided by EPC Contractors to PGE. PGE to monitor EPC Contractors and ensure that they are providing local skills development.
Certificates from EPC Contractors issued to employees (copied to PGE) detailing training received / new skills acquired while employed.
PGE monitoring to be included in site management budget.
Contractor local skills development to be included in costs of EPC contracts.
Labour Grievance Mechanism
Labour management
Development, formalisation and disclosure of staff grievance polices and mechanisms for complaints about unfair treatment or unsafe living or working conditions without reprisal. (see Section 6.4)
IFC PS2 – Labour and Working Conditions
(see Section 6.4)
PGE Human Resources
EPC Contractors and drilling contractors
(see Section 6.4)
Ongoing implementation
Documented grievance mechanism established.
Maintenance of complaints log and resolution process.
Included in normal human resources and site management budget.
Include clauses for contractors in line with PGE’s labour management procedures and welfare safeguard measures (as embodied within the existing PGE SMK3LL).
Law No. 1 of 1970 regarding Work Safety;
Law No. 23 of 1992 regarding Health;
IFC PS2 – Labour and Working Conditions, terms of employment to be in line with ILO standards.
Ministry of Manpower Letter No. SE-01/MEN/1997, H2S exposure limit.
PGE Project Manager / Human Resources
EPC Contractors and drilling contractors
Apply to all new EPC / drilling contracts.
PGE to review and approved Contractors HSE Plan to ensure continuity with PGE HSE requirements (including commitment to this ESMP).
Included in normal human resources and Site management budget.
Identify and Remove OHS hazards
Labour management
OHS assessment / schedule of audits.
Law No. 1 of 1970 regarding Work Safety;
Law No. 23 of 1992 regarding Health;
IFC PS2 – Labour and Working Conditions;
World Bank Group EHS General Guidelines on Occupational Health and Safety (OHS) / Geothermal sector specific guidelines.
Ministry of Manpower Letter No. SE-01/MEN/1997, H2S exposure limit.
PGE Project Manager / OHS Engineer
Daily inspections (observations of non-compliance will be reported only), annual OHS audit or at least two audits during contract scope.
As part of CSMS (Contractor Safety Management System) Audit Program
Restrict access to sites, especially hazardous areas
Safeguarding community health, safety and security
Appropriate fencing / signage around site perimeter and where necessary, certain key site installations during periods when construction activity is low such as completed wellhead Christmas trees / drilling mud ponds.
Appoint site security personnel (appropriate vetted and trained as per the requirements of the EPC / steamfield contractors Terms of Reference)
IFC PS4 – Community Health, Safety and Security
World Bank Group EHS General Guidelines on Community Health and Safety (CHS)
PGE Project Manager to request from contractor
PGE Procurement
EPC Contractors and drilling contractors
Apply to new EPC / drilling contracts.
Provision / review of the following documentation:
Description / photographs of fencing / signage around site perimeter.
EPC / drilling contractors to provide PGE with CV and training certification of security personnel proposed as per contract requirements.
Site registry identification system.
Fencing of existing clusters not yet fenced: PGE estimated cost of $90,000 per cluster (includes perimeter fencing, pond fencing in wood and wellhead fencing).
New clusters – cost of fencing to be included in infrastructure contractor scope.
Security measures to be included within Contractors scope.
Minimise traffic hazards within community
Safeguarding community health, safety and security
Road safety plans / maximum speed limits for site and access routes. Implement Traffic Management Plan (refer to Section 6.6).
Contractor programme to monitor and enforce safety plans, accident reporting and statistics, establish penalties for violations.
IFC PS4 – Community Health, Safety and Security
World Bank Group EHS General Guidelines on Community Health and Safety (CHS)
PGE Project Manager / PGE OHS Engineer
EPC Contractors and drilling contractors
Apply to new EPC / drilling contracts.
Road Safety Plan documentation including identification of maximum speed limits for site and access routes. To be defined under PGE HSE requirements. PGE to review and approve Contractors HSE Plan to ensure continuity with PGE HSE requirements (including commitment to this ESMP and implementation of Traffic Management Plan - refer to Section 6.6).
Requirement for contractor programme of monitoring
Reporting of accidents and statistics as part of OHS performance records.
Included in routine PGE site management expenses.
Contractor to develop and implement safety plans as part of their scope.
Safeguard the well-being and improve the living standards of those whose land is acquired, avoid involuntary resettlement (last resort)
Land acquisition for non-forest area
Continue using current willing buyer / willing seller practices. Only pursue expropriation as a last resort and follow Land Acquisition and Resettlement Policy Framework included in ESIA Volume III.
Refer to Land Acquisition and Resettlement Policy Framework (ESIA Volume III) which includes identification of Indonesian Land Law (including expropiation)
PGE Project Manager / PRO / land acquisition team
Ongoing throughout construction
Following documentation:
-Initial site description and land acquisition plan;
-Schedule of survey, socialisation activities and inventory;
-Land acquisition report — submitted for corporate agreement;
-Minutes of negotiation;
-Summary compensation data (land and other assets);
-Payment date;
-Date of transfer of revised certificates to owners; and
In cases where expropriation is followed as a last resort, preparation of a Land Acquisition Plan acceptable to the Bank, as specified in the Policy Framework before proceeding.
Included in normal project management budget.
PGE socialization to describe land acquisition procedures and grievance mechanisms for all people involved in land acquisition negotiations – included in normal project management budget.
Protection of surface water supply quantity for local users and the environment
River abstraction for drilling activities
Prior to any new river abstractions, identify any local users downstream as far as Tompaso II (Maasem River), Tember (Panasen River) and Kanonang I (Ranaan and Tempok Rivers).
Choose abstraction flow rate and timing to minimise impacts on water course and to ensure minimal stream flow maintained.
Where this cannot be achieved, before drilling construction, PGE to construct new water supply pipeline from alternative source to ensure community water supply unaffected.
World Bank Group EHS General Guidelines on Community Health and Safety / Geothermal sector specific guidelines.
PGE PRO / Project Manager / Environmental Engineer
EPC Contractors and drilling contractors
Monitoring throughout Construction
Contractors to record quantity of water abstracted and timing of abstractions.
PGE to review Contractors abstraction records.
PGE to undertake river flow measurements before, during and after abstraction periods.
No complaints from downstream users (as recorded under Community Perception in UKL/UPL).
PGE review included in normal project management budget.
Contractor monitoring measures to be included within Contractors scope.
PGE to purchase a water current meter for use in flow measurements. Estimated cost - $250 one-off. One off training for PGE environmental engineer on how to take river flow measurements estimated cost - $1,000.
Potential additional costs in event of alternative water supply – approximately $5,000 per water supply.
Protection of surface water quality for local users and the environment
Vegetation clearance, earth moving
Use good construction practices to prevent erosion and sediment reaching water courses, including:
• Bunding off the working area to avoid any sediment from the workings entering local water courses;
• Minimising vegetation clearance; and
• If any temporary or permanent diversion of water courses or natural flow paths ensure that diversion works are of adequate capacity.
Government Regulation No. 82 of 2001 regarding the Management of Water Quality and Water Pollution Control.
PGE Project Manager / Environmental Engineer
EPC Contractors and drilling contractors
Mitigation throughout Construction.
Monitoring on quarterly basis (as per UKL/UPL).
Collection of surface water samples and analysis by accredited laboratory (as per monitoring locations in Figure 4.1 which are in addition to current UKL/UPL monitoring).
No deterioration in pre-project river water quality.
Mitigation included in routine PGE site management expenses.
Estimated cost for water quality monitoring $1,500 per quarter over and above current UKL/UPL budget for monitoring implementation.
Protection of surface water quality for local users and the environment
Pollution of surface water from drilling muds or water from testing wells
Use of water based drilling muds as opposed to oil-based drilling muds.
Recycling of drilling muds.
Design adequate capacity of treatment ponds / water filters to safely manage quantities of waste water arising.
Storage ponds to have concrete impermeable lining to ensure water-tightness.
Ponds monitored and cleared of silt periodically to maintain integrity of treatment and drainage system.
Government Regulation No. 82 of 2001 regarding the Management of Water Quality and Water Pollution Control.
World Bank Group EHS General Guidelines on Wastewater and Ambient Water Quality / Geothermal sector specific guidelines.
PGE Project Manager, Environmental Engineer
Drilling contractors
Mitigation throughout construction. Monitoring on quarterly basis (as per UKL/UPL requirements)
Requirement for contractors to implement mitigation as part of drilling contracts.
Collection of surface water samples and analysis by accredited laboratory (as per monitoring locations in Figure 4.1 which are in addition to current UKL/UPL monitoring).
No incidents of discharge of incompletely treated effluent.
Regular review by on-site environmental engineer. Quarterly on-site audit by head office staff.
Mitigation installation included within current drilling infrastructure construction contract scope.
Maintenance of ponds and site drainage system by PGE estimated at $15,000 per year per cluster.
Estimated cost for water quality monitoring $1,500 per quarter over and above current UKL/UPL budget for monitoring implementation.
Regular review included in routine PGE site management expenses.
Increased audit frequency from head office (quarterly) estimated $4,000 expenses per year.
Protection of surface water quality for local users and the environment
Well blow out / overflow of settling ponds
Drains from wells to route effluent fluids to settling ponds. In case of an overflow, PGE to determine whether downstream users affected and if required construct new water supply pipeline from alternative source to ensure community water supply unaffected.
Government Regulation No. 82 of 2001 regarding the Management of Water Quality and Water Pollution Control.
World Bank Group EHS General Guidelines on Wastewater and Ambient Water Quality / Geothermal sector specific guidelines.
PGE site manager / PRO / OHS Engineer, Environmental Engineer
Drilling contractors
Mitigation throughout construction.
Monitoring following well blow out / overflow events.
Collection of surface water samples and analysis by accredited laboratory (in the event of overflow). Monitoring locations dependent upon area of overflow using professional judgement with typical sampling points including representative upstream location, immediate downstream location from overflow, prior to nearest downstream community and after confluence with other tributaries.
Mitigation included in routine PGE site management expenses.
Estimated cost for water quality monitoring $1,500 per overflow event.
Potential additional costs in event of alternative water supply – approximately $5,000 per water supply.
To protect water courses from contamination from fuel or chemical spills
Storage, transportation and use of chemical and fuel on development site
Development of relevant procedures to avoid and minimise risk of spills, including but not limited to the following.
• All chemicals and fuels are to be stored in designated sites with impermeable surface and adequate bunding to prevent accidental contamination.
• Storage areas to be located away from surface waters.
• Suitable spill kits to be provided within storage areas and near any fuelling/ loading areas.
Government Regulation No 74 of 2001 regarding Hazardous and Toxic Material Management.
Government Regulation No. 82 of 2001 regarding the Management of Water Quality and Water Pollution Control.
World Bank Group EHS General Guidelines on Wastewater and Ambient Water Quality; Hazardous Materials Management / Geothermal sector specific guidelines.
PGE Project Manager, Environmental Engineer
EPC Contractors and drilling contractors
Mitigation throughout construction.
Daily inspections by PGE of Contractor (observations of non-compliance will be reported only); At least two formal audits of Contractor by PGE during contract scope.
As part of CSMS (Contarctor Safety Management System) Audit Program.
Requirement for contractors to implement mitigation as part of EPC / drilling contracts.
No spills affecting surface water quality.
PGE to audit Contractor storage areas against mitigation requirements, for example, check availability of spill kits, adequate bunded storage for chemicals and fuels.
Mitigation (excluding spill kits) included within current drilling contract scope. Future EPC / drilling contract scope to include spill kits as well (estimated cost of $5,000 for two wheeled locker spill kits per cluster location).
Monitoring included in routine PGE site management expenses.
To protect groundwater from contamination from fuel or chemical spills
Storage, transportation and use of chemical and fuel on development site
Development of relevant procedures to avoid and minimise risk of spills, including but not limited to the following:
• All chemicals and fuels are to be stored in designated sites with impermeable surface and adequate bunding to prevent accidental contamination.
• Suitable spill kits to be provided within storage areas and near any fuelling/ loading areas.
Goverment Regulation No 74 of 2001 regarding Hazardous and Toxic Material Management.
World Bank Group EHS General Guidelines on Wastewater and Ambient Water Quality; Hazardous Materials Management / Geothermal sector specific guidelines.
PGE Project Manager / Environmental Engineer
EPC Contractors and drilling contractors
Mitigation throughout construction.
Daily inspections by PGE of Contractor (observations of non-compliance will be reported only); At least two formal audits of Contractor by PGE during contract scope.
Requirement for contractors to implement mitigation as part of EPC / drilling contracts.
No spills affecting surface water quality.
PGE to audit Contractor storage areas against mitigation requirements, for example, check availability of spill kits, adequate bunded storage for chemicals and fuels.
Mitigation (excluding spill kits) included within current steamfield contract scope. Future EPC / drilling construction contract scope to include spill kits as well (estimated cost of $5,000 for two wheeled locker spill kits per cluster location).
Monitoring included in routine PGE site management expenses
To protect groundwater resource during land clearance and excavation
Vegetation clearance and land levelling
Provide baseline of current springs to ensure any potential new springs created by excavation can be identified as such.
Provide baseline of current community water supply wells. If community groundwater wells affected either deepen affected wells or if required construct new water supply pipeline from alternative source to ensure community water supply unaffected.
Decree of Minister of Health Regulation No. 416 of 1990 regarding Requirements for Monitoring of Water Quality
World Bank Group EHS General Guidelines on Community Health and Safety / Geothermal sector specific guidelines.
PGE Project Manager / Environmental Engineer
EPC Contractors and drilling contractors
Survey / monitoring for springs to be undertaken ahead of site activities.
Survey / monitoring for community wells to be undertaken on quarterly basis (as per UKL/UPL requirements).
Site walkover, identification of spring locations and flow rate (using a simple weir or bucket measurement). Site walkover, identification of representative community well locations and water depth (using a dip meter or plumb line). To be undertaken in area surrounding construction site (up to 1km radius depending on location of known springs / community wells). Collection of community water well sample from representative community well and analysis by accredited laboratory.
$1,500 per year for site walkover and measurements of springs and representative community wells over and above current UKL/UPL budget for monitoring implementation.
Potential additional costs in event of alternative water supply – approximately $5,000 per water supply.
Well designs to employ deep set surface casing to prevent blow outs (the uncontrolled discharge of deep aquifer water/steam into the upper aquifer or to the surface).
World Bank Group EHS Geothermal sector specific guidelines.
Avoid noise nuisance generated by on-site plant and activities
Site preparation excavation and foundations, construction and drilling
Position noise generating plant as far from the edge of the site as possible.
Construction machinery and vehicles that may be in intermittent use to be shut down between work periods.
Material stockpiles and other structures effectively utilised, where practicable, to screen sensitive receptors from noise from on-site construction activities.
Construction machinery with directional noise features positioned to minimise the potential for noise disturbance.
Hours of general construction activity (excluding specific drilling activities) restricted to avoid sensitive periods of the day (e.g. religious event) and also to avoid night working typically following World Bank night-time noise guidelines (22:00 to 07:00).
If construction activities cause breaches of Indonesian and World Bank standards as identified through monitoring, noise barriers of no less than 10kg/m2 surface density should be put in place at properties (ensuring that the noise source is entirely hidden from the receptor).
Minister of the Environment Decree No. 48 Year 1996 regarding Noise Standard.
World Bank Group EHS General Guidelines on Noise Management
PGE Project Manager, Environmental Engineer
EPC Contractors and drilling contractors
Mitigation to be included as requirement of all new EPC / drilling contracts.
Monitoring frequency: weekly or upon receipt of noise complaints via community grievance mechanism.
Requirement for contractors to implement mitigation as part of EPC / drilling contracts.
PGE to monitor noise levels using sound level meter at the nearest residential properties to construction activities for comparison against standards.
Record and investigate complaints using sound level meter via the community grievance mechanism.
Contractor to include noise mitigation measures as part of their scope.
Contractor to include option within their scope for suitable quality sound attenuation barriers as directed by PGE Invitation To Tender.
PGE purchase of sound level meter – one off cost of approximately $5000.
Ongoing sound level meter calibration approximately $350 per year.
One off external training course for Environmental Engineer for sound level meter approximately $1000.
If additional noise barrier is required following noise monitoring, estimated PGE cost at $400 per square metre (excluding contractors scope).
Vegetation clearance, earthworks, and spoil disposal during construction.
In the event of additional cluster / site development, pre-clearance surveys for endangered species and breeding birds, burrowing mammals, reptiles and amphibians.
Law No. 5 of 1990 regarding Conservation of Natural Resources and Ecosystems
Law No. 41 of 1999 regarding Forestry.
PGE Environmental Engineer
Local Environmental Consultant
Surveys undertaken on six monthly basis throughout construction
Ecological survey of potential additional cluster locations to be undertaken within revised UKL/UPL.
Monitoring estimated at $1,500 for each additional cluster.
Control of non-native plant species
Vegetation clearance, earthworks, and spoil disposal during construction.
Use of native species as part of any re-vegetation programme during construction.
Identification of non-native plant species and their extent within development boundary: Treatment of materials contaminated by invasive plant material e.g. seeds, roots etc.
Where necessary based on above findings, development of non-native species management plan.
Law No. 5 of 1990 regarding Conservation of Natural Resources and Ecosystems
Law No. 41 of 1999 regarding Forestry.
PGE Environmental Engineer
Local Environmental Consultant
Surveys undertaken on six monthly basis throughout construction
Ecological survey of Project components once per year for identification of invasive non-native species.
Implementation of non-native species plan where necessary.
Monitoring estimated at $1,500 for each Project component per year. $10,500 in total assuming seven main Project components (existing and potential cluster sites and power plant location) if all potential additional clusters developed.
Development and implementation of non-native species management plan estimated at $1,500 per year if required.
Prohibit hunting, cultivation and deforestation by PGE and contractor staff members.
EPC Contractors and drilling contractors to instruct all personnel with regards to the prohibition and clearly advise of disciplinary action associated with non compliance.
Law No. 5 of 1990 regarding Conservation of Natural Resources and Ecosystems
Law No. 41 of 1999 regarding Forestry.
PGE Project Manager / Environmental Engineer
EPC Contractors and drilling contractors
Brochure to be issued to all new members of staff as part of employment induction.
To be defined under PGE HSE requirements. PGE to review Contractors HSE Plan including disciplinary action measures to ensure continuity with PGE HSE requirements (including commitment to this ESMP).
Members of staff to receive brochure which identifies prohibition of hunting and deforestation.
Staff to sign acknowledging receipt of brochure.
Contractor requirement to implement measures to prevent hunting.
Included in routine PGE site management expenses.
Hunting prevention measures to be included within EPC and drilling Contractors scope through acceptance of PGE HSE requirements.
PGE production of hunting and deforestation prohibition brochures estimated at $1,500 one-off cost.
Protection of watershed protection forest
Drilling and plant construction activities
Strict prohibition of contractors to undertake any construction activities within 500m of the watershed protection forest boundary or outside defined Project boundaries.
The prescribed construction boundary limit shall be clearly demarcated.
PGE to implement disciplinary action for non compliance.
Law No. 5 of 1990 regarding Conservation of Natural Resources and Ecosystems
Law No. 41 of 1999 regarding Forestry.
PGE project manager / Environmental Engineer
EPC Contractors and drilling contractors
Throughout Construction.
Disciplinary action for violation to be specified in all new EPC / drilling contracts.
To be defined under PGE HSE requirements. PGE to review Contractors HSE Plan including disciplinary action measures to ensure continuity with PGE HSE requirements (including commitment to this ESMP).
PGE Environmental Engineer to inspect construction areas on monthly basis.
Maintenance of record of violations where observed and disciplinary action imposed on contractor.
Mitigation to be included within EPC and drilling contractors scope.
Monitoring included in routine PGE site management expenses.
Construction and operation of weirs during Project construction period for abstraction. Brine and condensate pipeline construction adjacent to rivers.
Weirs built to facilitate water abstraction at the WPS should be opened regularly where possible to minimise impacts on aquatic ecology.
Revegetate 25m buffer zone (if Project approval received for construction of pipeline parallel to River Panasen through Indonesian environmental assessment process) between brine / condensate pipeline and Panasen River (2.5km stretch) with native species thereby enhancing the river bank biodiversity through replacement of agriculture with semi-natural riparian habitat. Also provides further protection of aquatic ecology through prevention of unlikely spill from pipeline entering Panasen River.
Government Regulation No.35 of 1991 regarding Rivers.
Presidential Decree No. 32 of 1990 regarding Management of Protected Areas.
Regulation of Minister of Public Work No. 63 of 1993 regarding Line Border Rivers, Regional Benefits River, River Region, and Former River courses.
PGE Environmental Engineer
EPC Contractors and drilling contractors
Throughout Construction and upon completion of construction activities.
Contractor to record quantity of water abstracted and timing of abstractions.
PGE to review Contractors abstraction records.
PGE to undertake river flow measurements before, during and after abstraction periods.
PGE review included in normal project management budget.
Contractor monitoring measures to be included within Contractors scope.
Revegetation with native species of 2.5km stretch 25m river buffer zone to be included within Project Management Budget.
PGE to purchase a water current meter for use in flow measurements. Estimated cost - $250 one-off. Training for PGE environmental engineer on how to take river flow measurements estimated cost - $1,000.
Locate activities and rock / earth stockpiles away from receptors.
Cover vehicles loads and stockpiles.
Minimise amounts of material and avoid double handling.
Hard-standing in high activity areas and water spraying
Minimise dust nuisance
Traffic and vehicle movements
Contractor to implement and develop framework Transport Management Plan provided in Section 6.6.
Water spraying if required.
Government Regulation No. 41 of 1999 regarding Air Pollution Control
World Bank Group EHS General Guidelines on Air Emissions and Ambient Air Quality
PGE Project Manager / Environmental Engineer
EPC Contractors and drilling contractors
Layout to be agreed 4 weeks before start of works
Mitigation ongoing Throughout Construction.
PGE bi-weekly visual inspections (violations to be reported only).
Quarterly monitoring of TSPs.
PGE Environmental Engineer to undertake bi-weekly visual checks of construction areas.
Maintenance of record of violations where observed and disciplinary action imposed on contractor.
Quarterly monitoring of TSP as per UKL/UPL requirements.
Mitigation to be included within Contractors scope.
Monitoring included in routine PGE site management expenses.
Minimise construction machinery / vehicle emissions
Construction traffic and machinery
Use of modern (less than 5 years old) vehicle / construction fleet to minimise emissions. Regular servicing of machinery.
Locate generators away from receptors (workers’ camps and residents)
Government Regulation No. 41 of 1999 regarding Air Pollution Control
World Bank Group EHS General Guidelines on Air Emissions and Ambient Air Quality
PGE Project Manager / Environmental Engineer
EPC Contractors and drilling contractors
Layout to be agreed 4 weeks before start of works
Mitigation ongoing Throughout Construction.
PGE Environmental Engineer to undertake bi-weekly visual checks of construction vehicles (violation to be report only).
Contractor to maintain servicing records for all machinery.
PGE to review Contractors servicing records at beginning of contract and thereafter on 6 months basis for longer term contracts lasting more than 6 months.
Mitigation to be included within Contractors scope.
Monitoring included in routine PGE site management expenses.
Waste generated as a result of day to day drilling and construction activities
Implement Waste Management Plan (WMP) which identifies measures for minimisation of waste and safe disposal of construction wastes (refer to Section 6.5).
Appropriate facilities/containers for segregation and temporary storage of general wastes on site and establishment of regular disposal to licensed third party landfill or recycling where possible.
Use of water based drill muds and recycling of drill muds. Storage of muds in lined ponds and of cuttings in dedicated houses. Regular removal of muds from the settling ponds for re-injection into total loss wells where available or storage and subsequent treatment of the muds as relevant waste category as determined by Indonesia regulation;
Disposal of hazardous waste by third party licensed by MOE. Segregation of waste streams for reusing and recycling. Identify reuse and recycle options of non hazardous waste with local community; Identification of appropriate site(s) for excavation material disposal, away from sensitive surface / ground water features;
Government Regulation No. 18 of 1999 as amended by No 85 of 1999 regarding Management of Toxic and Hazardous Wastes.
MOE Regulation No. 18 of 2009 on Licensing Procedures for Management of Hazardous and Toxic Waste.
BAPEDAL Decree No. KEP-01 – 05 / 1995 on Technical Procedures and Requirements on Storages and Collections of Hazardous and Toxic Wastes; Wastes Manifests; Wastes Management.
World Bank Group EHS General Guidelines on Waste Management / Geothermal Power Generation.
PGE Project Manager / Environmental Engineer / PRO
EPC Contractors and drilling contractors
Mitigation throughout construction phase.
PGE daily inspections (observations of non-compliance will be reported only), annual waste audit or at least two audits during contract scope.
Toxicity testing of drilling muds prior to removal from ponds when not re-injecting.
To be defined under PGE HSE requirements. PGE to review Contractors HSE Plan to ensure continuity with PGE HSE requirements (including commitment to this ESMP with inclusion of a Waste Management Plan as identified in Section 6.5).
PGE review / audit of contractors HSE plan including waste management procedures as part of audit programme (CSMS).
PGE audit reports, including photographs (where relevant) and documentation of suitable storage measures, documentation of approved waste disposal facility, transfer notes, and/or contractor employed to collect wastes.
Toxicity testing of hazardous wastes such as drilling muds.
Contractors to include mitigation within their scope/costs.
Monitoring included in routine PGE site management expenses.
Cover of vulnerable soil with erosion resistant material and re-vegetation.
Special focus should be on this during the rainy season.
N/A
International best practice.
PGE Project Manager / Environmental Engineer
EPC Contractors and drilling contractors
Mitigation throughout construction phase.
PGE daily inspections (observations of non-compliance will be reported only).
To be defined under PGE HSE requirements. PGE to review Contractors HSE Plan to ensure continuity with PGE HSE requirements (including commitment to this ESMP and mitigation measures as identified).
PGE review / audit of contractors HSE plan as part of audit programme (CSMS).
Contractor to include mitigation as part of their scope under EPC / drilling contracts.
Monitoring included in routine PGE site management expenses.
Stabilise slopes to prevent landslides
Soil excavation, levelling and construction.
All cuts of slopes should be stabilised with appropriate walls or other structures to ensure slope stability and prevent mudflows or landslides.
N/A
International best practice.
PGE Project Manager / Environmental Engineer
EPC Contractors and drilling contractors
Mitigation throughout construction phase.
PGE daily inspections (observations of non-compliance will be reported only).
To be defined under PGE HSE requirements. PGE to review Contractors HSE Plan to ensure continuity with PGE HSE requirements (including commitment to this ESMP and mitigation measures as identified).
PGE review / audit of contractors HSE plan as part of audit programme (CSMS).
Contractor to include mitigation as part of their scope under EPC / drilling contracts.
Monitoring included in routine PGE site management expenses.
Maintain and monitor water channels to prevent erosion
Soil excavation, levelling and construction.
Concrete water drainages system to direct water and prevent bank erosion.
N/A
International best practice.
PGE Project Manager / Environmental Engineer
EPC Contractors and drilling contractors
Mitigation throughout construction phase.
PGE daily inspections (observations of non-compliance will be reported only).
To be defined under PGE HSE requirements. PGE to review Contractors HSE Plan to ensure continuity with PGE HSE requirements (including commitment to this ESMP and mitigation measures as identified).
PGE review / audit of contractors HSE plan as part of audit programme (CSMS).
Contractor to include mitigation as part of their scope under EPC / drilling contracts.
Monitoring included in routine PGE site management expenses.
To protect land and soil from contamination from drilling mud and cuttings and other potential hazardous wastes
Collection, storage, transport of drilling muds and cuttings.
Use of water based drill muds and recycling of drill muds.
Storage of muds in concrete lined ponds and of cuttings in dedicated houses;
Regular removal of muds from the settling ponds for re-injection into total loss wells where available or storage and subsequent treatment of the muds as relevant waste category as determined by Indonesia regulation;
Government Regulation No. 18 of 1999 as amended by No 85 of 1999 regarding Management of Toxic and Hazardous Wastes.
MOE Regulation No. 18 of 2009 on Licensing Procedures for Management of Hazardous and Toxic Waste.
BAPEDAL Decree No. KEP-01 – 05 / 1995 on Technical Procedures and Requirements on Storages and Collections of Hazardous and Toxic Wastes; Wastes Manifests; Wastes Management.
Bank Group EHS General Guidelines on Contaminated Land / Geothermal Power Generation.
Dutch Soil Quality Standards
PGE Project Manager / Environmental Engineer
Contractor
Mitigation throughout construction phase.
PGE daily inspections (observations of non-compliance will be reported only).
Toxicity testing of drilling muds prior to removal from ponds when not re-injecting.
To be defined under PGE HSE requirements. PGE to review Contractors HSE Plan to ensure continuity with PGE HSE requirements (including commitment to this ESMP with inclusion of a Waste Management Plan as identified in Section 6.5).
PGE review / audit of contractors HSE plan including waste management procedures as part of audit programme (CSMS).
Toxicity testing of hazardous wastes such as drilling muds.
Contractor to include use of water based drilling muds within their scope/costs.
PGE to include storage provision / removal of muds and auditing / toxicity testing in routine PGE site management expenses.
To protect land and soil from contamination from fuel or chemical storage facilities or spent oils, lubricants storage
Storage, transport and use of chemical and fuel on development site
Appropriate facilities / containers for segregation and temporary storage of chemicals / fuel on site including impermeable surfaces and adequate bunding.
Training of Contractor employees by Contractor.
Government Regulation No. 74 of 2001 regarding Management of Hazardous and Toxic Material
World Bank Group EHS General Guidelines on Contaminated Land / Geothermal Power Generation.
PGE Project Manager / Environmental Engineer
Contractor
Mitigation throughout construction phase.
PGE daily inspections (observations of non-compliance will be reported only).
To be defined under PGE HSE requirements. PGE to review Contractors HSE Plan to ensure continuity with PGE HSE requirements (including commitment to this ESMP with inclusion of a Waste Management Plan as identified in Section 6.5).
PGE review / audit of contractors HSE plan including waste management procedures as part of audit programme (CSMS).
Contractor to include mitigation with possible exception of fuel storage where omitted under contract within their scope/costs.
PGE to include fuel storage provision if not in EPC / drilling contracts and auditing in routine PGE site management expenses.
To protect land and soil from contamination from well test brine
Collection and storage of brine during horizontal well testing
Storage of brine in concrete lined ponds until potential future reinjection.
Develop brine management plan to minimise risk of brine discharges.
Decree of Mining and Energy No 02.P/20/M/PE/1990 regarding exploration and exploitation of safety work on geothermal resources
World Bank Group EHS General Guidelines on Contaminated Land / Geothermal Power Generation.
PGE Vice President of Management Operations and Utilities / Project Manager (construction) responsible for implementation at project level.
Mitigation throughout construction phase (well test).
PGE to implement Brine Management Plan.
Regular review of brine management plan implementation by on-site environmental engineer during periods of well production tests. Audit of brine management plan under quarterly HSE and Operations head office visit if and when visit coincides with period of well testing.
Mitigation installation included within current infrastructure drilling construction contract scope.
Maintenance of ponds and site drainage system by PGE estimated at $15,000 per year per cluster.
Minimise road hazards, congestion and damage to road infrastructure
Traffic Management
Contractor to implement and develop framework Transport Management Plan provided in Section 6.6.
National laws and permitting requirements
PGE Project Manager
EPC Contractors and drilling contractors
Apply to all new EPC / drilling contracts.
To be defined under PGE HSE requirements. PGE to review Contractors HSE Plan to ensure continuity with PGE HSE requirements (including commitment to this ESMP and implementation of Traffic Management Plan - refer to Section 6.6).
PGE review / audit of contractors HSE plan including traffic management plan as part of audit programme (CSMS).
Reporting of accidents and statistics by Contractor to PGE.
PGE / Contractor to develop and implement Traffic Management Plan depending on requirements of individual construction contracts.
Review and auditing included in routine PGE site management expenses.
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Lahendong 5&6 Revised ESIA Report - Volume IV
4.13 Archaeology and Cultural Heritage Management (Construction)
Contractors to establish a chance finds procedure (refer to sub-section 6.8)
WB’s Physical Cultural Resources Policy Guidebook
World Bank Operational Policy 4.11
PGE Project Manager
EPC Contractors and drilling contractors
Apply to all new EPC / drilling contracts.
To be defined under PGE HSE requirements. PGE to review Contractors HSE Plan to ensure continuity with PGE HSE requirements (including commitment to this ESMP and development of a chance finds procedure as identified in Section 6.8).
Reporting / notification of finds to the Preservation of Archaeological Heritage Office (Balai Pelestarian Peninggalan Purbakala) and Archaeology Office (Balai Arkeologi).
Implementation of chance finds procedure included in routine PGE site management expenses.
Training for PGE environmental engineer on how to recognise physical cultural resources estimated cost - $5,000.
Contractor to implement chance find procedure as part of their scope.
Cost apportionment in the event of a chance find of physical cultural resource resulting in suspension of works to be addressed within the terms of EPC / drilling contracts.
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Lahendong 5&6 Revised ESIA Report - Volume IV
Figure 4.1: Proposed Monitoring Locations – Construction
Source: Mott MacDonald
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Lahendong 5&6 Revised ESIA Report - Volume IV
5.1 Overview
The operation ESMP is summarised in the following tables. These include measures to be transposed in
PGE’s detailed work procedures.
As mentioned previously, all mitigation measures and monitoring requirements applicable to wells drilling
during Project development should also be applied for make up wells drilling during operation. The ESMP
shall be updated (in particular roles and responsibilities) and relevant requirements should be included as
part of each new drilling contract.
The following sub-sections address individual project operation activities identifying specific mitigation and
monitoring measures associated with environmental and social aspects where relevant and as required.
Table 5.1 sets out the structure of the operation ESMP as presented over the following sub-sections.
Development and adoption of PGE retrenchment plan for permanent PGE staff (see Section 6.3).
Law No. 13 of 2003 regarding Manpower
IFC PS2 – Labour and Working Conditions
PGE General Manager / Human Resources
Within 1st year of power plant beginning operations
Disclosed retrenchment policy / plan documentation to all permanent PGE staff.
Included in normal operation and human resources management budget.
Increase knowledge of safety risks related to tampering with steam pipes to avoid damage and safety incidents
Safeguarding community health, safety and security
Health and safety awareness sessions for local communities living / working near pipes to discourage tampering.
IFC PS4 – Community Health, Safety and Security
World Bank Group EHS General Guidelines on Community Health and Safety (CHS)
PGE General Manager / HSE Manager / PRO
Brochure raising health and safety awareness to be issued to community prior to pipes becoming operational.
Community to receive brochure which raises health and safety awareness.
Community to sign acknowledging receipt of brochure.
PGE production of health and safety awareness brochures estimated at $6,000 as one-off.
Distribution of health and safety awareness brochures to be included in routine PGE site management expenses.
Equity in local employment benefits / minimise social conflict
Employment generation
PGE Recruitment Policy (see Section 6.2) to specifically include requirement to prioritise local employment taking into account available skills.
(refer to Section 6.2) (refer to Section 6.2)
Ongoing implementation
Disclosed Recruitment Policy in Site Office and Kepala Desa offices of local villages.
Village committee meeting minutes.
Included in normal operation and human resources management budget.
Local skills development
Employment generation
Local employment to be prioritised; where possible PGE to provide vocational training schemes to local workforce employed for a minimum of one year via supply companies in skills required by power plant operation (i.e. administrator, driving etc).
World Bank Operational Policy 4.01 Environmental Assessment
PGE General Manager / Human Resources
Ongoing implementation
Records of specialised training for local staff maintained by PGE.
Certificates issued by PGE to employees detailing training received / new skills acquired while employed.
PGE identified budget of up to $150 per person per day to be invested in local skills development. Not possible to determine total cost budget until staffing numbers known and quantity of training required.
Development, formalisation and disclosure of staff grievance polices and mechanisms for complaints about unfair treatment or unsafe living or working conditions without reprisal. (see Section 6.4)
IFC PS2 – Labour and Working Conditions
(see Section 6.4)
PGE General Manager / Human Resources
(see Section 6.4)
Ongoing implementation
Documented grievance mechanism established.
Maintenance of complaints log and resolution process.
Included in normal operation and human resources management budget.
Protecting the workforce
Labour management
Implement PGE’s labour management procedures and welfare safeguard measures (as embodied within the existing PGE SMK3LL).
Law No. 1 of 1970 regarding Work Safety;
Law No. 23 of 1992 regarding Health;
IFC PS2 – Labour and Working Conditions, terms of employment to be in line with ILO standards.
PGE General Manager / Human Resources / HSE Manager
Implement throughout operation.
Daily inspections (observations of non-compliance will be reported only), annual HSE audit.
HSE audit reports, corrective measures and action plan, photographs where relevant demonstrating corrective measures implemented.
Accident statistics.
Included in normal operation and human resources management budget.
Community Grievance Mechanism
Safeguarding community health, safety and security
Develop formally documented grievance mechanism and resolution process. See Section 6.10 of ESIA Volume II.
Reinjection Minimise risk of brine / condensate discharge through implementation of reinjection system and provision of adequate sized concrete lined storage ponds / system shut down in case of reinjection failure.
Develop brine management plan to minimise risk of brine discharges.
In the event of emergency discharge of brine / condensate to surface waters, treatment will be undertaken prior to discharge of effluent to comply with Indonesian discharge geothermal effluent standard.
Protect paddy area from failure of 2.5km brine pipeline stretch south of Kamanga I and II through routing along line of Panasen River with 25m buffer zone between pipeline and river.
MOE Regulation No.04 of 2007 regarding wastewater quality from oil and gas and geothermal exploration and production
Government Regulation No.82 of 2001 regarding the Management of Water Quality and Water Pollution Control.
Government Regulation No.35 of 1991 regarding Rivers.
Presidential Decree No. 32 of 1990 regarding Management of Protected Areas.
Regulation of Minister of Public Work No. 63 of 1993 regarding Line Border Rivers, Regional Benefits River, River Region, and Former River courses.
World Bank Group EHS Geothermal sector specific guidelines.
PGE Vice President to Management Operations and Utilities / General Manager / Operations Manager / Maintenance Manager / HSE Manager
Mitigation throughout Operation.
Monitoring on quarterly basis (as per UKL/UPL).
PGE to implement Brine Management Plan.
Regular review of brine management plan implementation by on-site environmental engineer during operation. Audit of brine management plan under annual HSE and Operations head office visit.
Collection of surface water samples and analysis by accredited laboratory (as per monitoring locations in Figure 5.1 which are in addition to current UKL/UPL monitoring).
No deterioration in pre-project river water quality as result of PGE effluent discharges.
Mitigation included in normal operation management budget.
Estimated cost for water quality monitoring $1,500 per quarter over and above current UKL/UPL budget for monitoring implementation.
Review and audit process included in normal operation management budget.
To protect water courses from contamination from fuel or chemical spills
Storage, transportation and use of chemical and fuel on development site
Development of relevant procedures to avoid and minimise risk of spills, including but not limited to the following.
• All chemicals and fuels are to be stored in designated sites with impermeable surfaces and adequate bunding to prevent accidental contamination.
• Storage areas to be located away from surface waters.
• Suitable spill kits to be provided within storage areas and near any fuelling/ loading areas.
Government Regulation No 74 of 2001 regarding Management of Hazardous and Toxic Material
Government Regulation No. 82 of 2001 regarding the Management of Water Quality and Water Pollution Control.
World Bank Group EHS General Guidelines on Wastewater and Ambient Water Quality; Hazardous Materials Management / Geothermal sector specific guidelines.
PGE General Manager / HSE Manager
Mitigation throughout Operation.
Daily internal inspections by PGE HSE staff (observations of non-compliance will be reported only); Annual HSE audit during Operation.
PGE to implement mitigation as part of operational procedures.
No spills affecting surface water quality.
PGE HSE staff to inspect storage areas against mitigation requirements, for example, check availability of spill kits, adequate bunded storage for chemicals and fuels.
Protection of groundwater supply quantity for local users
Potential groundwater abstraction for power plant operation
In the event of groundwater abstraction for power plant operation, PGE to provide baseline of current community water supply wells. If community groundwater wells affected either deepen affected wells or if required construct new water supply pipeline from alternative source to ensure community water supply unaffected.
Record quantity of groundwater abstracted and timing of abstractions.
Decree of. Minister of Health Regulation No. 416 of 1990 regarding requirements for monitoring of water quality
World Bank Group EHS General Guidelines on Community Health and Safety / Geothermal sector specific guidelines.
PGE General Manager / HSE Manager / PRO
Annual survey of community well locations.
Sampling of representative community wells to be undertaken on quarterly basis.
Site walkover, identification of representative community well locations and water depth (using a dip meter or plumb line). To be undertaken in area surrounding operational abstraction points (up to 1km radius depending on location of known community wells). Collection of community water well sample from representative well and analysis by accredited laboratory (as per UKL/UPL requirements).
PGE to record quantity of water abstracted and timing of abstractions.
No complaints from downstream users (as recorded under Community Perception in UKL/UPL through questionnaire response).
$1,500 per year for site walkover and measurements of representative community wells over and above current UKL/UPL budget for monitoring implementation.
Potential additional costs in event of alternative water supply – approximately $5,000 per water supply.
Ancillary plant to be of low noise design and employ sound attenuation. Building design to include acoustic absorption material. Use of acoustic enclosures for steam turbines and associated equipment, inlet and exhaust silencers, duct mounted attenuators, acoustic louvers and vibration isolation systems. Use of insulation, enclosures, three sided pens, and low noise trims for generators and transformers.
Maintain equipment / acoustic enclosures to ensure noise levels do not increase over time.
Hours of general maintenance activity restricted to avoid sensitive periods of the day (e.g. religious event) and also to avoid night working typically following World Bank night-time noise guidelines (22:00 to 07:00).
If operational activities cause breaches of Indonesian and World Bank standards as identified through monitoring, noise barriers of no less than 10kg/m2 surface density should be put in place at affected properties (ensuring that the noise source is entirely hidden from the receptor).
MOE Decree No. 48 Year 1996 regarding Noise Standard.
World Bank Group EHS General Guidelines on Noise Management
PGE General Manager / HSE Manager / PRO
Mitigation ongoing throughout operation.
Monitoring frequency: quarterly or upon receipt of noise complaints via community grievance mechanism.
PGE to monitor noise levels using sound level meter at the nearest residential properties to operational activities for comparison against standards. To be undertaken on a quarterly basis as per UKL/UPL requirements.
Record and investigate complaints using sound level meter via the community grievance mechanism.
Mitigation measures to be included in the design scope for the EPC Contractor.
Ongoing sound level meter calibration approximately $350.
If additional noise barrier is required following noise monitoring, estimated PGE cost at $400 per square meter.
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Lahendong 5&6 Revised ESIA Report - Volume IV
5.6 Ecology Management (Operation)
As ecological impacts during operation are mostly indirect, refer to water, air, noise and waste sections.
To ensure the health and safety of workers and the community
Operational emissions from the Power Plant Site
H2S monitoring of the steam line serving the Power Plant.
MOE Regulation No.21 of 2008, on Air Emissions from Thermal Power Plants.
PGE General Manager / Operations Manager / HSE Manager
Monitor steam line for H2S content in NCGs on monthly basis.
Monitored H2S concentrations to meet the emission limit standard.
Included in normal operation management budget.
To ensure the health and safety of workers and the community
Steam / H2S accidental release from steam pipeline rupture
Installation of pressure relief valve and rupture disks in steam pipeline to minimise risk of pipeline rupture / control point of rupture. If pressure in pipeline drops pipeline failure, steam will be automatically diverted to the rock muffler.
Manual valves included to isolate steam supply. Detection of pipeline rupture through steam pressure monitoring. In event of steam pipeline rupture, manually close emergency valves to isolate steam supply.
Manually inspect that steam release stopped from rupture following isolation of steam supply.
In the unlikely event that emergency valves cannot be closed, the wells will be shut down as a last resort.
World Bank Group EHS Guidelines on Geothermal Power Generation.
PGE General Manager / Operations Manager / HSE Manager
Throughout operation
No adverse health effects for workers / local community.
Physical mitigation included as part of Project design.
Response included in normal operation management budget.
To ensure the health and safety of workers and the community
Operational emissions from Power Plant site
Air Quality / H2S Monitoring Programme (see Section 7)
WHO ambient air quality guideline for H2S.
PGE General Manager / HSE Manager
Initial year of ambient monitoring to be reviewed after first year of operation. If measured concentrations well within WHO guideline, discontinue monitoring and revert to UKL/UPL requirements
Monitored ambient H2S concentrations to meet the WHO ambient air quality guideline at residential receptors and not result in health effects on the local community.
First year costs of $14,000 in total for two portable ambient monitoring equipment (including purchase cost, shipping, calibration and training) plus subsequent ongoing annual costs of around $3,000 if required.
To ensure the health and safety of workers
Operational emissions from the Power Plant Site
Provide personal protective equipment, such as dust masks where dust levels are likely to be excessive.
Provision of facility emergency response teams, and workers in locations with high risk of exposure with personal H2S monitors, self-contained breathing apparatus and emergency oxygen supplies, and training in their safe and effective use.
Provision of adequate ventilation of occupied buildings to avoid accumulation of H2S.
Provide workers with a fact sheet or other readily available information about the chemical composition of H2S with an explanation of potential implications for human health and safety.
Confined space procedures (as per WB/IFC guidance)
Ministry of Manpower Letter No. SE-01/MEN/1997 regarding Ambient Threshold Limit of Chemical Factor in Working Environment
World Bank Group EHS Guidelines on Geothermal Power Generation.
PGE General Manager / HSE Manager
Throughout operation
Monitored H2S concentrations to meet the occupational limit.
No adverse health effects for workers.
Included in normal operation management budget.
PGE production of H2S safe working brochures estimated at $1,500 one-off cost.
Monitoring included in routine PGE site management expenses.
Implement waste management plan framework, refer to Section 6.5.
Government Regulation No. 18 of 1999 as amended by No 85 of 1999 regarding Management of Toxic and Hazardous Wastes.
MOE Regulation No. 18 of 2009 on Licensing Procedures for Management of Hazardous and Toxic Waste.
BAPEDAL Decree No. KEP-01 – 05 / 1995 on Technical Procedures and Requirements on Storages and Collections of Hazardous and Toxic Wastes; Wastes Manifests; Wastes Management.
World Bank Group EHS General Guidelines on Waste Management / Geothermal Power Generation.
PGE General Manager / HSE Manager
Mitigation throughout operation phase.
PGE daily inspections (observations of non-compliance will be reported only), annual HSE audit.
PGE to develop and implement Waste Management Plan (refer to Section 6.5) as part of standard operational procedures.
PGE internal audit reports, including photographs where relevant and documentation of suitable storage measures, documentation of approved waste disposal facility, transfer notes, and/or contractor employed to collect wastes.
Record quantities of all wastes generated from different waste streams as part of overall site waste inventory.
Maintain records of hazardous wastes disposed off-site.
To protect land and soil from contamination from fuel or chemical storage facilities or spent oils, lubricants storage
Storage, transport and use of chemical and fuel on operational sites
Appropriate facilities / containers for segregation and permanent storage of chemicals / fuel on site including impermeable surfaces and adequate bunding. Temporary storage facilities available for maintenance periods.
Internal training of PGE operational shift staff / maintenance staff.
Government Regulation No. 74 of 2001 regarding Management of Hazardous and Toxic Material
World Bank Group EHS General Guidelines on Contaminated Land / Geothermal Power Generation.
PGE General Manager / HSE Manager
Mitigation throughout operation phase.
HSE monthly housekeeping walkover (observations of non-compliance will be reported only),
Internal annual HSE audit.
Requirement for PGE to implement mitigation as part of operational procedures.
Monthly HSE manager site walkover to observe site housekeeping.
PGE internal audit reports, including photographs where relevant and documentation of suitable storage measures, inventory of chemical storage maintained, documentation of spills / clean up / corrective actions.
To protect land and soil from contamination from brine / condensate
Steam field operation.
Minimise risk of brine / condensate discharge through implementation of reinjection system and provision of adequate sized concrete lined storage ponds / system shut down in case of reinjection failure.
Develop Brine Management Plan to minimise risk of brine discharges.
In the event of emergency discharge of brine / condensate to land, treatment will be undertaken prior to discharge of effluent to comply with Indonesian discharge geothermal effluent standard.
MOE Regulation No.04 of 2007 regarding wastewater quality from oil and gas and geothermal exploration and production
Government Regulation No. 82 of 2001 regarding the Management of Water Quality and Water Pollution Control.
World Bank Group EHS Geothermal sector specific guidelines.
PGE Vice President for Management Operations and Utilities / General Manager / Operations Manager / Maintenance Manager / HSE Manager
Annual survey of community well locations.
Sampling of representative community wells to be undertaken on quarterly basis.
PGE to implement Brine Management Plan.
Regular review of brine management plan implementation by on-site environmental engineer during operation. Audit of brine management plan under annual HSE / Operations head office visit.
Site walkover, identification of community well locations and water depth (using a dip meter or plumb line). To be undertaken in area surrounding operational abstraction points (up to 1km radius depending on location of known community wells). Collection of community water well sample from representative community well and analysis by accredited laboratory (as per UKL/UPL requirements).
PGE to record quantity of water abstracted and timing of abstractions.
No complaints from downstream users (as recorded under Community Perception in UKL/UPL through questionnaire response).
Mitigation included in normal operation management budget.
$1,500 per year for site walkover and measurements of representative community wells over and above current UKL/UPL budget for monitoring implementation.
Review and audit process included in normal operation management budget.
Potential additional costs in event of alternative water supply – approximately $5,000 per water supply.