EIA Report of Proposed WB Financed CBM Development and Utilization Demonstration Project of Shanxi
Energy CBM Investment Controlling Co., Ltd.
(Part IV Due Diligence Report)
China
E1886 v. 5
Shanxi Coalbed Methane Development
and Utilization Project
Environmental Impact
Assessment
(Part IV: Due deligence review for linkage issues)
April 10, 2008
Shanxi Energy CBM Investment Holding
Co., Ltd.
1
Coal Industry Taiyuan Design & Research Institute
guo huan ping zheng jia zi No.1303
EIA Report of Proposed WB Financed CBM Development and Utilization Demonstration Project of Shanxi
Energy CBM Investment Controlling Co., Ltd.
(Part IV Due Diligence Report)
Table of Contents
1. Project Overview...................................................................................................... 1
1.1 Pipeline from Zheng 6 Station to Central Treatment Plant ................................. 1
1.2 CBM Central Treatment Plant in Qinshui Basin ................................................. 1
1.3 Qinshui Basin CBM Development Project with a Capacity of 500 Million m3
per Annum (Fanzhuang Block) .................................................................................. 2
1.4 Project Construction Schedule ............................................................................. 3
2. EIA Progress ............................................................................................................. 4
2.1 Examining and Approving Opinions ................................................................... 4
3．Major Environmental Impact and Environmental Protection measures ........ 9
3.1 Pipeline from Zheng 6 Station to Central Treatment Plant ................................. 9
3.2 CBM Central Treatment Plant in Qinshui Basin ...............................................10
3.3 Qinshui Basin CBM Development Project with a Capacity of 500 Million m3
per Annum ................................................................................................................12
4. Environmental Management Plan .......................................................................14
4.1 Environmental Management ..............................................................................14
4.2 Environmental Monitoring Plan ........................................................................15
4.1 Pipeline from Zheng 6 Station to Central Treatment Plant ............................... 15
4.2 CMB Central Treatment Plant and 500 million m3/year CMB Capacity ..........16
Building Project in Qinshui Basin ...........................................................................16
5. Analysis of Project Similarities and Differences ................................................17
5.1 Similarities .........................................................................................................17
5.2 Differences .........................................................................................................17
6. Project Progress .....................................................................................................17
2
Coal Industry Taiyuan Design & Research Institute
guo huan ping zheng jia zi No.1303
EIA Report of Proposed WB Financed CBM Development and Utilization Demonstration Project of Shanxi
Energy CBM Investment Controlling Co., Ltd.
(Part IV Due Diligence Report)
1. Project Overview
The proposed WB-financed CBM development and utilization demonstration project
of Shanxi Energy CBM Investment Holding Co., Ltd. relates to the pipeline from
Zheng 6 Station to the Central Treatment Plant, the CBM Central Treatment Plant in
Qinshui Basin and the Qinshui Basin CBM Development Project with an Annual
Capacity of 500 million m3, to be constructed by North China Oilfield Branch of
PetroChina Company Limited.
See Table1-1-1 for the relevant geographical location of the proposed WB-financed
CBM development and utilization demonstration project of Shanxi Energy CBM
Investment Controlling Co., Ltd.
1.1 Pipeline from Zheng 6 Station to Central Treatment Plant
The pipeline will be laid southeastward, along Provincial Highway S331, from
Zheng-6 Gas-collecting Station, passing by Zhengzhuang Town, Zheng-5 Gascollecting Station, Pigging Stations, Xiaoquangou, etc., arriving nearby Beizhai River;
eastward along Provincial Highway, passing by Zhangjiayao, Qianzhuang,
Xiaoyueyang; northward along the trunk line valve chamber, Changjiazhuang and
Jinfeng, arriving at the Central Processing Plant, with a total length of 20km. See
Table 1-1 for the project components.
Table 1-1-1 Composition of Pipeline from Zheng 6 Station to Central Treatment
Plant
Item
Engineering volume
Trunk roadΦ508×20km
Major engineering volume
Passing through highway at 7 sites
Passing through river at 4 sites
Passing through gully at 7 sites
Accompanying road (km)
4.4
1.2 CBM Central Treatment Plant in Qinshui Basin
The scale of the Central Treatment Plant is 30×108m3/a (scale of Phase I:
10×108m3/a). During Phase I, 2 sets of filter separator (total scale: 6 sets), 1 set of
TEG dehydration plant (total scale: 3 sets), 4 sets of CBM compressor unit (total
scale: 8 sets) and other auxiliary facilities including blank nitriding station, 110kv
transformer substation, flare and venting system, heat supply system, water supply
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Coal Industry Taiyuan Design & Research Institute
guo huan ping zheng jia zi No.1303
EIA Report of Proposed WB Financed CBM Development and Utilization Demonstration Project of Shanxi
Energy CBM Investment Controlling Co., Ltd.
(Part IV Due Diligence Report)
and drainage system and fire fighting system, will be installed.
Located at about 700m to the northwest of Jinfeng Village, Qinshui County, the
Central Treatment Plant mainly receives the CBM produced by PetroChina from
Fanzhuang Block and that produced by such enterprises as Zhonglianmei and Jinmei
Group from the surrounding areas in Qinshui Basion.
The CBM in the various blocks of Qinshui Basin first enters from the gas-collecting
station, through the pipeline, into the gas distributing and pigging system, which is
responsible for accepting the tube cleaner during the pigging operation; then enters
the filter separator, which functions to separate gas with liquid from the virgin gas;
then enters the pressurizer for pressurization, increasing the pressure from 0.9Mpa to
6.0Mpa; then enters the TEG dehydration plant for ensuring the transmission water
dew point; finally enters West-to-East gas transmission pipeline after metering.
1.3 Qinshui Basin CBM Development Project with a Capacity of 500
Million m3 per Annum (Fanzhuang Block)
Pilot CBM development in central Fangzhuang Block will be conducted with
multilateral directional horizontal drilling method and that in the northern and
southern parts of the Block will be conducted with vertical well and cluster well
pressurization and hydrofracturing method. The vertical well and cluster well CBM
development in the northern and southern parts will be divided into two stages:
development with the first batch of wells and development of scale. A total of 760
CBM wells and an effective number of 685 wells will be deployed in the first batch
well group CBM development area and the scale development area in the southern
and northern parts.
See Table 1-3-1 for the project composition and project description.
Table 1-3-1: Project Composition and Project Description.
Project name:
Qinshui Basin CBM Development Project with a Capacity of 500
Million m3 per Annum
Scale
Gas
producing
well
Gas output
685 wells for 5.0×108m3/a
Phase I
Gas collecting station
7 stations
2
Coal Industry Taiyuan Design & Research Institute
guo huan ping zheng jia zi No.1303
EIA Report of Proposed WB Financed CBM Development and Utilization Demonstration Project of Shanxi
Energy CBM Investment Controlling Co., Ltd.
(Part IV Due Diligence Report)
603 wells for
Phase II
Main work
Gas well, gas collecting station, gas extraction pipeline (431km),
gas collecting pipeline (52km)
1.4 Project Construction Schedule
See Table 1-4-1 for Project Construction Schedule.
Table 1-4-1: Construction Schedule
Project contents
Construction
scale
Expected
operation Construction
time of projects
unit
Commenced in June
2008 and put into
operation in June
2009
Pipeline from Zheng 6
Station
to
Central 20km
Treatment Plant
Commenced in April
2008 and put into PetroChina
operation in July 2008 North China
Oilfield
599 vertical wells Branch
have been constructed
Qinshui Basin CBM
so far and other wells
Development
Project 500 million m3 /
will start construction
with a Capacity of 500 year
in March 2008 and put
Million m3 per Annum
into
operation
in
November 2008
Central Treatment Plant
10.0×108m3/a
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Coal Industry Taiyuan Design & Research Institute
guo huan ping zheng jia zi No.1303
EIA Report of Proposed WB Financed CBM Development and Utilization Demonstration Project of Shanxi
Energy CBM Investment Controlling Co., Ltd.
(Part IV Due Diligence Report)
2. EIA Progress
The EIA of the pipeline project from Zheng 6 Station to the Central Treatment Plant
is underway, and an EIA agency has been commissioned to conduct EIA. The EIA
report is expected to be completed by March 2008 and submitted to Shanxi
Provincial Environmental Protection Bureau by March to April 2008, and Shanxi
Provincial Environmental Protection Bureau is expected to complete project
examination and approval by May 2008.
In June 2007, The EIA on Qinshui Basin CBM Central Treatment Plant and on
Qinshui Basin CBM Development Project with an annual capacity of 500
million m3 was commissioned by PetroChina North China Oilfield Branch to
Taiyuan University of Technology EIA Center (guo huan ping zheng yi zi No.
1313), and EIA Statements on the Construction Project of Qinshui Basin CBM
Central Treatment Plant and EIA Statements on the Construction Project of Qinshui
Basin CBM Development with An Annual Capacity of 500 Million m3 were already
completed and Shanxi Provincial Environmental Protection Bureau issued its
examining and approving opinions on September 13, 2007.
2.1 Examining and Approving Opinions
(1) Examining and approving opinions of EIA Statements on the Construction Project
of Qinshui Basin CBM Central Treatment Plant
Examing and Approving Opinions:
I. We agree in principle with the experts panel's technical review opinions and the
preliminary review opinions of Jincheng Municipal Environmental Protection Bureau
and Qinshui County Environmental Protection Bureau on EIA Statements on Qinshui
Basin CBM Central Treatment Plant Project (hereinafter referred to as EIA
Statements).
II. Your company plans to implement a CBM Central Treatment Plant Project at
700m northwest to Jinfeng Village, Duanshi Town, Qinshui County, Jincheng
Municipality. The total project investment is RMB319.42 million, of which the
environmental protection investment is RMB10.717 million. The main components
of the project include, gas collecting and distribution device, pressurizing device,
dehydration plant, in-plant gas transmission pipeline and other auxiliary and public
works. On the premise that the various environmental protection measures and
ecological protection measures stipulated in the EIA Statements are strictly carried
out, our Bureau agrees on the construction of this project. At the same time, the
following activities should be emphasized in this project:
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Coal Industry Taiyuan Design & Research Institute
guo huan ping zheng jia zi No.1303
EIA Report of Proposed WB Financed CBM Development and Utilization Demonstration Project of Shanxi
Energy CBM Investment Controlling Co., Ltd.
(Part IV Due Diligence Report)
The location of the Central Treatment Plant and the Emergency Servicing Center
should avoid farmland, woodland and surface water body and should utilize unused
land as much as possible. During the construction process, attention should be paid to
protection of surface mellow soil of the farmland and the surface farmland should be
restored immediately after completion of the construction. The construction period
should be minimized in order to reduce disturbance to the surround residents,
farmland and environment.
Gas burning boiler should be used in this project for heating purpose, and the number
of times of enabling the flare blowdown system should be controlled strictly to
ensure that the discharge of various pollutants conforms consistently to the standards.
A landfill-type effluent treatment device with a treatment capacity of 1m3/h should be
set up in the Central Treatment Plant and the Emergency Servicing Center
respectively to treat the industrial effluent and domestic sewage produced. The exit
water should be recycled for plant greening and road sprinkling and should not be
discharged outside.
The waste residue produced during pigging operation should be sent to specified sites
for landfill treatment. The domestic garbage should be sent to Duanshi Town to be
treated together with the local domestic garbage.
Low-noise equipment should be selected for this project. The high noise equipment
such as blowdown pipe and compressor should be deployed far from the villages and
such noise reduction measures as enclosed machine room and sound insulator should
be adopted to ensure the factory boundary noise does not cause much impact upon
the living of the residents in the surrounding villages.
Attention
course of
the links
measures
the risks.
should be paid to the risks of leakage, fire and explosion accidents in the
CBM transportation and storation in this project; the management level of
causing risks should be improved; proper risk prevention and control
and emergency risk response pre-plans should be formulated to minimize
Environmental management and monitoring plans should be carried out earnestly and
necessary monitoring instruments and equipment should equipped to have a timely
command of pollutant discharge state and take corresponding measures and ensure
the long-term consistent compliance of pollutant discharge; noncompliant discharge
5
Coal Industry Taiyuan Design & Research Institute
guo huan ping zheng jia zi No.1303
EIA Report of Proposed WB Financed CBM Development and Utilization Demonstration Project of Shanxi
Energy CBM Investment Controlling Co., Ltd.
(Part IV Due Diligence Report)
and accident discharge should be strictly prohibited.
The Povincial Environmental Supervision Team, Jincheng Municipal Environmental
Protection Bureau and Qinshui County Environmental Bureau should perform on-site
supervision and inspection during the construction period of this project according to
their respective responsibilities.
The project cannot be put into formal operation until it passes environmental
protection acceptance check after its completion.
Handling person: Li Wenbin
Shanxi Provincial Environmental Protection Bureau
13 September 2007
It can be seen from the above examining and approving opinions that Shanxi
Provincial Environmental Protection Bureau approved the construction of Qinshui
Basin CBM Central Treatment Plant facilities on the premise of carrying out he
various environmental protection measures and ecological protection measures
provided in the EIA Statements.
(2) Examining and approving opinions of EIA Statements on the Construction of
Qinshui Basin CBM Development Project with An Annual Capacity of 500 Million
m3
Examining and Approving Opinions:
I. We agree in principle with the experts panel's technical review opinions and the
preliminary review opinions of Jincheng Municipal Environmental Protection Bureau
and Qinshui County Environmental Protection Bureau on EIA Statements on Qinshui
Basin CBM Development Project with an Annual Capacity of 500 Million m 3
(hereinafter referred to as EIA Statements.
II. Your company plans to implement a CBM development project with an annual
capacity of in Qinshui, Jincheng and a supporting project of CBM Central Treatment
Plant (with Statements attached). The total project investment is RMB1.66487
billion, of which the environmental protection investment is RMB82.3612 million.
The main components of the project include gas wells, gas collecting stations, gas
extracting pipeline, gas collecting pipeline and other supporting & auxiliary works.
On the premise that the various environmental protection measures and ecological
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Coal Industry Taiyuan Design & Research Institute
guo huan ping zheng jia zi No.1303
EIA Report of Proposed WB Financed CBM Development and Utilization Demonstration Project of Shanxi
Energy CBM Investment Controlling Co., Ltd.
(Part IV Due Diligence Report)
protection measures stipulated in the EIA Statements are strictly carried out, our
Bureau agrees on the construction of this project. At the same time, the following
activities should be emphasized in this project:
Route selection and direction of the pipeline network should be further optimized and
attention should be paid to ecological protection and restoration during the laying of
483km pipeline network (of which the gas extracting pipeline is 431km and the gas
collecting pipeline is 52km). The construction period should be minimized in order to
reduce disturbance to the surround residents, farmland and environment.the surplus
backfill earthwork of 8369.2m3 produced during project construction should be
treated on a proper dumping site and should not be piled up arbitrarily.
The location of earth taking and dumping sites should avoid the area with good
vegetation and shall not be used until upon further confirmation of local
environmental protection authority. The operation of earth taking and dumping
should stricly follow the methods and procedures stipulated in the Statements and the
vegetation should be restored in time; the temporarily occupied land should be
restored in time to alleviate impact upon the regional ecological environment.
The air pollutants, wate pollutants, solid wastes and noise pollution produced during
project construction and operation should be controlled and managed according to
the various environmental protection and ecological protection measures stipulated in
the Statements to ensure the consistent compliance of discharge of various pollutants.
The CBM discharged during trial collecting period and from pigging operation
should be treated with such method as flare burning and then be discharged after
meeting the standards.
The construction scope should be delineated and the environmental protection
supervision should be strengthened during the construction period. The
environmental protection responsibilities and tasks should be defined clearly in the
contracts with the construction units and the supervision units to ensure that the
various environmental protection measures stipulated in the Statements are carried
out properly.
Attention should be paid to the risks of leakage and fire accidents in the course of
CBM transportation in this project; proper risk prevention and control measures and
emergency risk response pre-plans should be formulated, management during the
operation period strengthened and the environmental management level improved, to
prevent occurence of accidents.
7
Coal Industry Taiyuan Design & Research Institute
guo huan ping zheng jia zi No.1303
EIA Report of Proposed WB Financed CBM Development and Utilization Demonstration Project of Shanxi
Energy CBM Investment Controlling Co., Ltd.
(Part IV Due Diligence Report)
Environmental management and monitoring plans should be carried out earnestly
and necessary monitoring instruments and equipment should equipped to have a
timely command of pollutant discharge state and take corresponding measures and
ensure the long-term consistent compliance of pollutant discharge; noncompliant
discharge and accident discharge should be strictly prohibited.
Within three months of test run after the completion of the project, application should
be made to our Bureau for environmental protection acceptance check. The project
cannot be put into formal operation until it passes environmental protection
acceptance check after its completion.
The Povincial Environmental Supervision Team, Jincheng Municipal Environmental
Protection Bureau and Qinshui County Environmental Bureau should perform on-site
supervision and inspection during the construction period of this project according to
their respective responsibilities.
Handling person: Li Wenbin
Shanxi Provincial Environmental Protection Bureau
13 September 2007
It can be seen from the above examining and approving opinions that Shanxi
Provincial Environmental Protection Bureau approved the construction of Qinshui
Basin CBM Central Treatment Plant facilities (sic, it should be “Construction of
Qinshui Basin CBM Development Project with An Annual Capacity of 500 Million
m3”) on the premise of carrying out the various environmental protection measures
and ecological protection measures provided in the EIA Statements. At the same time,
within three months upon the completion and test run of the project, it should be
reported to Shanxi Provincial Environmental Protection Bureau for project
completion environmental protection acceptance check. Only after the project passes
the acceptance check can it be put into formal operation.
8
Coal Industry Taiyuan Design & Research Institute
guo huan ping zheng jia zi No.1303
EIA Report of Proposed WB Financed CBM Development and Utilization Demonstration Project of Shanxi
Energy CBM Investment Controlling Co., Ltd.
(Part IV Due Diligence Report)
3 ． Major Environmental Impact and Environmental Protection
measures
3.1 Pipeline from Zheng 6 Station to Central Treatment Plant
The EIA on this project component is under preparation. We learned from Shanxi
Qinshui Basin CBM Development Plan with An Annual Capacity of 10×108m3/a that
the major environmental impact and environmental protection measures for this
project component are as follows:
The construction of both the station and the pipeline involves direct occupation of
woodland and farmland, interference with a large area of surface soil and surface
vegetation and disruption of the original balance of the earth’s surface. Under the act
of wind force, the root system of the vegetation and the sandlot under protection of
solidified surface would be made exposed again, and the soil structure would become
loose and form a new wind erosion surface. If the vegetation is not restored and
reconstructed in time, every new slope of the soil and every new rut would become a
new erosion point, aggravating water loss and soil erosion and severely affecting the
safety of the station.
The main impact of station construction upon the surface vegetation lies in
permanent occupation of land, destruction of the vegetation on the occupied land and
the destruction of the vegetation surround the temporarily occupied land during
station construction. In addition to permanent destruction of the vegetation within the
area occupied by the station, the surface vegetation within the scope of 20-50m
around the station would also be destructed due to temporary land occupation. As the
station is large, the area under destructive impact would also be large. Therefore,
after completion of the project, the surface vegetation within the scope of about 50m
outside the enclosing wall of the station should be planted and restored.
During construction, the current woodland and grassland in the project area must be
protected, and indiscriminate and illegal felling and burning of trees should be
strictly prohibited. It is required that the survival rate of forestation should reach
about 90% and the greening coefficient of the station area should not be less than
20%.
Measures to be taken to protect the ecological environment:
(1) The project construction and the vegetation restoration project should be
conducted simultaneously and their completion must be subject to unified acceptance
check.
9
Coal Industry Taiyuan Design & Research Institute
guo huan ping zheng jia zi No.1303
EIA Report of Proposed WB Financed CBM Development and Utilization Demonstration Project of Shanxi
Energy CBM Investment Controlling Co., Ltd.
(Part IV Due Diligence Report)
(2) The construction period should be minimized, the scope of construction operation
should be delimited and shall not be expanded at random and the operation should
follow stipulations; the construction operation scope of vehicles and heavy
machinery should be put under strict control and management, cluttering of
construction materials is strictly prohibited and a proper stockyard should be
specified to prevent expansion of disruption to vegetation.
(3) The construction season should be selected on the basic of local conditions and
the biological characteristics of the surface vegetation to avoid the plant growing
period and minimize its damage to the ecological environment. When the
construction is conducted in a section with good surface soil, the surface soil should
be piled up separately and backfilled by layer so as to maintain the original living
environment of the plants as much as possible and facilitate the restoration of
vegetation. During backfilling, a proper accumulation layer should be set aside to
prevent surface depression and water loss and soil erosion caused by precipitation
and run-off.
(4) Nursery stocks should be planted in and around the station/site to make up the
surrounding environment.
At the same time, during project construction, attention should be paid to installation,
inspection and maintenance of the sealing face of equipment and pipe to reduce
CMB leakage; hermetical pigging process should be adopted to reduce gas venting
amount during pigging operation and thus to reduce environmental pollution caused
by hydrocarbons.
3.2 CBM Central Treatment Plant in Qinshui Basin
We learned from EIA Statements on the Construction Project of Qinshui Basin CBM
Central Treatment Plant prepared by Taiyuan University of Technology EIA Center
(guo huan ping zheng jia zi No.1313) that the major environmental impact and
environmental protection measures of this project component are as follows:
(1) Impact of Atmospheric Pollution
The major pollutants caused by the dehydration plant during the operation period, the
heating boiler room, boiler room during emergency repairing, gas discharged by
canteen through use of fuel gas and the smoke discharged by the flare and venting
system are a tiny amount of soot and NO X, and their emission concentration is far
below the control index and has little impact upon the atmospheric environment.
During overhauling of gas transmission pipeline or accident venting, the CBM is
10
Coal Industry Taiyuan Design & Research Institute
guo huan ping zheng jia zi No.1303
EIA Report of Proposed WB Financed CBM Development and Utilization Demonstration Project of Shanxi
Energy CBM Investment Controlling Co., Ltd.
(Part IV Due Diligence Report)
discharged after being burned through the flare and venting system on a yearly or
semester basis. It is a non-continuous discharge pollution source, and generally the
venting discharge time is within 1 hour, so its environmental impact can be restored
naturally. However, management and maintenance should be strengthened to avoid
venting pollution discharge. In case of venting, the operation should be steady and
abrupt turn-on or turn-off should be avoided in order to improve venting treatment
efficiency.
(2) Impact of Water Pollution
The industrial effluent and domestic sewage produced during the operation period,
after being collected, enter the integrated oil and water separating device and a
underground sewage treatment facility respectively for treatment. After its quality of
reaches Standard Grade I pursuant to Comprehensive Effluent Discharge Standards
(GB8978-1996), the treated water will be used for greening or sprinkling against
dustfall.
(3) Environmental Impact of Solid Waste
Solid wastes mainly include waste residue from pigging, sludge from effluent
treatment and domestic garbage. The waste residue from pigging will be transported
to specified sites for landfill treatment; the sludge will, after being desiccated, be
transported together with the domestic garbage to Dunshi Town for treatment
together with the local domestic garbage.
(4) Impact on Ambient Sound
Regarding the areas and equipment with a big noise, such measures as division of
area, shock absorption and sound insulation techniques and installation of noise
eliminators will be adopted to prevent noise diffusion; sound insulators will be
installed on such equipment as pumps and electric machines, and in addition, the
vibration of pumps should also be controlled; for the noise produced by mechanical
vibration, such soft materials as rubber may be used to make into spacer or spring
piece may be underlaid to reduce the transmission of vibration; regarding prevention
of traffic noise, speed of motor vehicles, horn blowing or use of high tone
loudspeakers should be limited in order to reduce the impact of traffic noise on the
environment; around the industrial site and along the highway, trees should be
planted to form green shelter to block and absorb noise, beautify the environment,
insulate sound and damp dust; persons coming into and going out of high-noise area
should be equipped with anti-noise earplug or earmuff to reduce the harm of noise to
the workers’ health.
11
Coal Industry Taiyuan Design & Research Institute
guo huan ping zheng jia zi No.1303
EIA Report of Proposed WB Financed CBM Development and Utilization Demonstration Project of Shanxi
Energy CBM Investment Controlling Co., Ltd.
(Part IV Due Diligence Report)
3.3 Qinshui Basin CBM Development Project with a Capacity of 500
Million m3 per Annum
We learned from EIA Statements on the Construction Project of Qinshui Basin CBM
Development Project with An Annual Capacity of 500 Million m 3 prepared by
Taiyuan University of Technology EIA Center (guo huan ping zheng jia zi No.1313)
that the major environmental impact and environmental protection measures of this
project component are as follows:
(1) Impact on Water Environment
During normal production, the total water discharge volume of gas wells in the gas
field is 858.81m3/d, the lavatory in the gas collecting station is a dry one with antiseepage treatment. The excrements are cleaned up regularly and transported as crop
field manure. No canteen or bathroom is built in the station. The domestic garbage
comes from the workers’ daily life water use, the quantity produced by each gas
collecting station is 0.32 m3/d, and the total quantity of domestic sewage produced is
2.24 m3/d. The gas well effluent produced by the CBM Project in Fanzhuang Block
can reach the discharge standard. The domestic sewage has a small amount and can
be splashed on site and evaporated naturally, without affecting local water
environment.
(2) Impact on Ambient Air
The project does not produce gas emissions at normal operation state. But at certain
conditions like overhauling or gas venting at the time of accident, CH 4 burning and
explosion accidents may be caused. CBM venting must be conducted after burning
through venting flare, which would make CH4 convert into CO2, thus effectively
reduce the risk of CBM discharge accidents of the project. In addition, such
supporting preventive measures as installation of auto block valve on gas collecting
and transmission pipelines, regular ball passing, corrosion protection and production
safety check, smooth communication, etc. must also be taken, which can minimize
the impact of accident risks.
(3) Impact on Ambient Sound
The noise sources of this project mainly include noise from such equipment as
compressor unit. Such measures as installation of the high noise equipment such as
compressor indoors and sound absorbing treatment of interior walls should be taken
to prevent the diffusion and spread of noise.
(4) Impact of Solid Wastes on Environment
The solid wastes produced in this project mainly include the domestic garbage from
12
Coal Industry Taiyuan Design & Research Institute
guo huan ping zheng jia zi No.1303
EIA Report of Proposed WB Financed CBM Development and Utilization Demonstration Project of Shanxi
Energy CBM Investment Controlling Co., Ltd.
(Part IV Due Diligence Report)
the gas collecting station, with a quantity of 12.78t/d. In order to prevent pollution on
the environment caused by garbage, the domestic garbage in the gas collecting
station will be collected in a centralized manner and put into bags, and is then
transported by enclosed garbage truck to Duanshi Town for treatment together with
local domestic garbage.
(5) Analysis of Environmental Impact
①Environmental Impact Analysis during Well Drilling Period (Construction Period)
The environmental impact during the drilling period includes the pollution on
environment caused by effluent, gas emissions, solid wastes and noise produced in
the well drilling process and the disruption to surface vegetation and soil erosion
caused by setting construction sites, laying pipelines, and constructing access roads.
I. The fugitive emission source (road dust emission and construction dust emission)
in the construction process, after such measures as sprinkling, dust damping, proper
arrangement of transportation time interval and direction (i.e., kept off from
residential quarters) are taken, would have little impact upon the environment; of the
pollutants such as SO2, N02, CO, only NO2 slightly exceeds the standard, but due to
the short construction period and absence of other pollution sources in the project
area, its adverse impact is acceptable.
II. In the drilling process, the waste drilling liquid would not pollute the water body
environment after being solidified. The flushing waste water on the well site is
recycled and is not discharged to the outside. The living facilities of construction
workers will be settled through the community. During the well drilling period, there
is basically no adverse impact upon the water body environment.
III. The solid wastes will be landfilled, and the surface land will be greened or
reclaimed after landfilling. This can meet the environmental protection requirements.
IV. The construction noise produced during the well drilling period slightly exceeds
the standard through natural attenuation and background value composition. Due to
such factors as the sound proofing effect of the walls of residential houses and short
construction duration, the adverse impact is slight and short.
V. The surface vegetation damaged during the well drilling period main includes
grass and shrub and a small quantity of crops. The soil erosion amount during the
well drilling period of this project is 3595.52t. After proper ecological alleviation
measures are taken during and after construction, the impact is slight.
13
Coal Industry Taiyuan Design & Research Institute
guo huan ping zheng jia zi No.1303
EIA Report of Proposed WB Financed CBM Development and Utilization Demonstration Project of Shanxi
Energy CBM Investment Controlling Co., Ltd.
(Part IV Due Diligence Report)
② Environmental Impact Analysis during Production Period (Operation Period)
During the production period, the pollutant discharge is very small on normal
conditions, mainly including the domestic sewage and garbage, coalbed water and
gas emission during pigging.
I. During the operation period, as there is a small number of staff members with
scattered inhabitation, the domestic sewage produced is sprinkled on site in the
station and evaporated naturally; the domestic garbage, after being centralized, is
transported regularly to Duanshi Town for treatment together with the local garbage.
II. The gas emissions from pigging operation are treated with flare burning method,
and the product is CO2 and vapor. As the burning time is short and it is a nonrecurring project activity, this treatment method is feasible.
III. After being treated with the method of presedimentation, the coalbed water
complies with the discharge standard and agro-irrigation water standard and does not
have much adverse impact upon the ground water environment of the assessed area.
IV. After the site is greened, the noise within the boundary of the site complies with
the standard and there is no adverse impact upon the surround environment during
the production period.
V. After the successful experience of other gas fields in preventing and controlling
risks are utilized as a reference and complete measures taken, plus strict regulations,
it can be said that a minor gas leakage can be controlled in time and will not develop
into a big risk. Based on analogy estimate, the safe radius of the low-pressure gas
transmission technique is within 10m.
4. Environmental Management Plan
4.1 Environmental Management
A health, safety and environment management system, or HSE management system
for short, will be set up for these projects carried out by PetroChina North China
Oilfield according to the relevant regulations of PetroChina.
HSE management system refers to an overall system composed of organizations,
functions, practices, procedures, processes and resources of implementing health,
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guo huan ping zheng jia zi No.1303
EIA Report of Proposed WB Financed CBM Development and Utilization Demonstration Project of Shanxi
Energy CBM Investment Controlling Co., Ltd.
(Part IV Due Diligence Report)
safety and environment management. It consists of many elements, which are
combined organically through advanced and scientific running mode and form a set
of structured dynamic management system through correlation and interaction. In
terms of its functions, it is an effective management mode of conducting pre-risk
analysis, identifying the likely harms and consequences, adopting effective
prevention and control measures to prevent their occurrence so as to reduce the
possible personal injury, property loss and environmental pollution. The system puts
special emphasis on prior prevention and continuous improvement and is a
mechanism of a high degree of self-restraint, self-improvement and self-motivation.
4.2 Environmental Monitoring Plan
4.1 Pipeline from Zheng 6 Station to Central Treatment Plant
The environmental impact appraisal of the pipeline from Zheng 6 Station to the
Central Treatment Plant is under preparation. Based on our investigation, the
prepared environmental impact assessment report will include the monitoring scheme,
which will cover monitoring on major environmental impact factors by the
construction stage and the operation stage. The main monitoring items include:
Ambient air: TSP, PM10, SO2, NO2, non-methane total hydrocarbon;
Water environment: COD, BOD, SS, petroleum, ammonia nitrogen;
Noise : noise level LeqdB(A)
Solid waste: quantity and treatment methods.
The environmental monitoring of this project will be performed jointly by
PetroChina Environmental Monitoring Station and Jincheng Municipal
Environmental Protection Monitoring Station.
Jincheng Municipal Environmental Monitoring Station is a national class II
environmental monitoring station capable of issuing monitoring report independent
of administrative interference and ensuring the correctness and truthfulness of the
monitoring results. It is able to undertake independent thirty-party impartial
inspection. The Station passed the provincial measurement certification assessment in
1990; then it passed re-assessment and certificate renewal of national measurement
certification successively in 1995 and 2001 and acquired the Metrological
Qualification Certificate No. (01) Metrological (Jin) Letter (U0015).
The environmental monitoring station built by PetroChina North China Oilfield itself
is equipped with the necessary monitoring equipment, mainly including
comprehensive atmospheric sampler, BOD5 incubator, COD5 determinator, analytical
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Coal Industry Taiyuan Design & Research Institute
guo huan ping zheng jia zi No.1303
EIA Report of Proposed WB Financed CBM Development and Utilization Demonstration Project of Shanxi
Energy CBM Investment Controlling Co., Ltd.
(Part IV Due Diligence Report)
balance, spectrophotometer, water velocimeter, non-dispersive infrared oil content
analyzer, general sound level meter, refrigerator, glassware instrument (set), chemical
reagents, which can meeting the needs of routine monitoring. The Station needs the
assistance of Jincheng Municipal Environmental Protection Monitoring Station to
complete the monitoring plan for this project.
The monitoring expenses will be listed in the environmental impact assessment
report.
4.2 CMB Central Treatment Plant and 500 million m3/year CMB Capacity
Building Project in Qinshui Basin
We learned from the environmental impact statement of this project and PetroChina
North China Oilfield Branch that the environmental monitoring scheme of this
project will be divided into the construction period and the operation period.
The monitoring scheme for the construction period, based on the project construction
characteristics and major environmental impacts, will, generally on a biyearly basis,
monitor the main environmental factors of ambient air, water environment, sound
environment and solid waste.
The monitoring during the operation period will include monitoring on major
polluting sources and current environment quality. The polluting sources include
water treatment station, industrial effluent treatment station, noise, pigging waste
residue, domestic garbage, etc., usually monitored on a monthly basis. Monitoring on
current environment quality mainly covers ambient air, water environment and sound
environment, and the monitoring items include:
Ambient air: TSP, PM10, SO2, NO2, non-methane total hydrocarbon;
Water environment: COD, BOD, SS, petroleum, ammonia nitrogen;
Noise : noise level LeqdB(A)
The monitoring on current environment quality will be performed on a biyearly basis
jointly by PetroChina Environmental Monitoring Station and Jincheng Municipal
Environmental Protection Monitoring Station. The monitoring expense is about
RMB400,000 Yuan per annum.
See 4.1 for the capability of the monitoring agencies.
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EIA Report of Proposed WB Financed CBM Development and Utilization Demonstration Project of Shanxi
Energy CBM Investment Controlling Co., Ltd.
(Part IV Due Diligence Report)
5. Analysis of Project Similarities and Differences
5.1 Similarities
The project subject unit related to all the three projects is PetroChina North China
Oilfield Branch, and all the three projects are developed in Qinshui County and are
under the supervision of Shanxi Provincial Environmental Protection Bureau,
Jincheng Municipal Environmental Protection Bureau and Qinshui County
Environmental Bureau.
The environmental management of the CBM development and utilization
demonstration project of Shanxi Energy CBM Investment Holding Co., Ltd. and that
of the three correlated projects will be conducted within the same management
framework. Meanwhile, PetroChina NorthChina Oilfield Branch has set up its own
environmental management organ dedicated to environmental management work and
at the same time subject to supervision of Shanxi Provincial Environmental
Protection Bureau, Jincheng Municipal Environmental Protection Bureau and
Qinshui County Environmental Bureau.
5.2 Differences
PetroChina NorthChina Oilfield Branch will set up its own environmental monitoring
station equipped with certain monitoring equipment and monitoring personnel. The
environmental monitoring will be conducted jointly by this station and Jincheng
Municipal Environmental Protection Monitoring Station.
The environmental monitoring program of the CBM development and utilization
demonstration project of Shanxi Energy CBM Investment Holding Co., Ltd. will be
completely commissioned to Jincheng Municipal Environmental Protection &
Monitoring Station, and this will spare the trouble of training environmental
monitoring personnel and purchasing environmental monitoring equipment. In view
that it is difficult for its own environmental monitoring station to meet the needs of
environmental monitoring of this project, the company will make full use of the
technical equipment of Jincheng Municipal Environmental Protection & Monitoring
Station.
6. Project Progress
In order to speed up the preliminary preparation work of the CBM Project, Shanxi
Energy Industrial Co., Ltd. entered into CBM Strategic Cooperation Agreement with
PetroChina North China Oilfield Branch in December 2006. In July 2007, it signed
CBM Cooperative Development Agreement with PetroChina North China Oilfield
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Coal Industry Taiyuan Design & Research Institute
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EIA Report of Proposed WB Financed CBM Development and Utilization Demonstration Project of Shanxi
Energy CBM Investment Controlling Co., Ltd.
(Part IV Due Diligence Report)
Branch to jointly develop the 49.14km2 CBM field of Zhengzhuang Block of Qinshui
Coal Field and other related projects.
So far, PetroChina North China Oilfield Branch has completed the construction of
599 wells and will complete the construction of all the production wells by
November 2008, the gas transmission pipeline from Zheng 6 Station to Central
Treatment Plant by October 2008 and the construction of the Central Treatment Plant
by July 2008.
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