Water Management Challenges and Trends Facing the Coal Seam Gas and Mining Industries in Queensland

Lindsay DelzoppoGeneral Manager, OperationsEnvironment and Natural Resource Regulation DivisionQueensland Department of Environment and Natural Resource Management

Israeli Delegation - Water Technologies for the Coal Seam Gas & Mining IndustriesBrisbane, 18 May 2011

Outline of Presentation Current water management issues for Queensland

Coal Seam Gas (CSG)- protection of groundwater resources - quantity and quality

- desalination and use/disposal of treated CSG water

- management of salts and brines

- protection of soils, vegetation and biodiversity;

- surface waters, world heritage values; noise; air; amenity

Coal Mining

- water supply sources

- flood management

- dewatering of flooded pits and storages

Qld Water Links with Israel Water Expertise

October 2007 – D-G of DERM, John Bradley, was member of a Trade Delegation to Israel to inspect water technology.

Met Director of the Israel Water Authority, sharing information on:- recycled water policy

- hydrologic risk analysis

- climate change contingencies

- desalination investment strategies

- demand management and market reform.

Current Key Water Management Issues

Commission of Inquiry – Jan 2011 Floods.

Environmental Recovery – Reconstruction.

CSG Industry Water and Salt Management

Second generation Water Resource Plans (allocations) & Environmental Values (water quality)

Urban water security (drought/climate change) and water costs (water use efficiency)

Coal Mine water management.

Total rainfall 28 Nov 2010 – 17 Jan 2011

Wivenhoe Dam at 197% = 2.26 Million ML

.

Upper reaches of Wivenhoe Dam (<20%) in drought

.

The CSG Industry in Queensland

Queensland Coal and CSG Production

Surat

Basin

Bowen

Basin

All named basins have

current exploration

The Great Artesian Basin (GAB)The Great Artesian Basin (GAB)

A Typical CSG / LNG Project

Hundreds of CSG wells in Surat or Bowen Basin gas fields

Pumping of large amounts of slightly saline water (releasing pressure) from the coal seam releases adsorbed methane gas

CSG water RO treatment plants, water re-use and disposal

300-400km gas pipelines from the gas fields to Gladstone

Liquefied natural gas (LNG) plant on Curtis Island – export terminal containing LNG production and loading facilities (none built yet)

Coal Seam Gas Fields

.

CSG Fields

.

CSG Water Extraction

Groundwater extraction is an accepted, unavoidable,

consequence of CSG extraction.

2010 – 2,700 wells

2015 – 10,000 wells

2025 – 30,000 wells

CSG extraction could produce 125 - 280 GL /year

Managing Impacts of CSG Extraction

Great Artesian Basin (GAB), groundwater dependent ecosystems and water supplies to towns and landholders.

Potential for aquifer recharge

Preventing CSG water, brine and salts damaging the environment, water resources and soils.

Reuse and disposal of treated CSG water

Natural stream flow regimes

Good quality agricultural soils

Impacts on environmentally sensitive/conservation areas.

Cumulative impacts of multiple CSG projects – including groundwater and surface water impacts.

Key Principles of CSG Water Management - 2009

CSG producers responsible for disposal of CSG water

Evaporation ponds to be discontinued as main means disposing CSG water

Producers to treat water to a quality set by DERM

CSG Water Management Plans approval stage with annual reporting against agreed criteria

Adaptive approvals regime.

CSG Water Policy - 2010

Preferred options for use of CSG water: aquifer injection (if matching quality) untreated use where no impact appropriate treatment and re-use for agricultural, industrial,

potable purposes (now highly regulated0

Non-preferred options disposal via evaporation dams disposal to surface waters disposal to land

Groundwater Regulatory Framework - 2011

Unlimited groundwater extraction is allowed under Petroleum

and Gas Act 2004

Make good’ provisions for all water bores, groundwater dependent ecosystems and adjacent aquifers under the Water Act 2000

Clearly specified trigger thresholds for bores and springs

QWC role to monitor and model the predictive and cumulative impacts of CSG activities and produce Underground Water Impact Reports

Salt Management Hierarchy

1. Reuse to create useable or saleable salts or products

2. Inject brine underground when it can be demonstrated that there will be no adverse impacts.

3. Dispose to the ocean through pipelines - ensuring no local impacts.

4. Dispose of solid salt into a waste disposal facility.

Salinity in Murray Darling Basin is a particular concern.

Possibly 300,000 tonnes of salts per year (sodium bicarbonate, soda ash, table salt, caustic soda and calcium carbonate)

Coal Mining

Managing supply sources in droughtFlood water managementDewatering of flooded pits, storages

and tailings damsProtecting mine water impacts on

aquatic ecosystems and drinking water supplies

Environmental Regulation of Coal Mining in Queensland

DERM regulates mines under Environmental Protection Act 1994

EIS undertaken for larger resource development projects

Coal Mines have Environmental Authorities which set out:

enforceable environmental performance requirements

monitoring programs

reporting requirements

• Jan/Feb 2008• Fairbairn Dam

overflowed flooding Emerald

Department of Environment and Resource Management

Ensham Mine Pre-flood Ensham Mine flood peak

• Ensham Coal Mine most severely affected mine

• 150,000 ML of trapped floodwater

• Authorised discharge to the Nogoa River

• Salinity increased as discharge continued

• Domestic/drinking water supplies affected

• Concerns over aquatic ecosystems impacts

Department of Environment and Resource Management

DERM Reviewed Performance of all Coal Mines in the Fitzroy Basin

Key Recommendations:

1. Better, and more consistent environmental conditions needed for mine water discharges

2. Develop local water quality guidelines for the Fitzroy Basin

3. Develop models for assessing cumulative impacts across the Basin (IQQM).

New Water Conditions for Coal Mines - 2009

Conditions largely based on protecting: Aquatic Ecosystems – 1000 EC downstream Drinking Water - 750 EC in receiving waters

Minimum 1:4 dilution for mine discharges Release contaminant trigger investigation levels for metals Receiving Water Environmental Monitoring Plans

Major flooding of Coal Mines in 2010-11

Monitoring data and conditions being refined in 2011

Queensland Mineral Exploration Expenditure by Mineral Sought - 2005 to 2010

0

10

20

30

40

50

60

70

80

90

Coal

Selectedbase metals

Copper

Gold

Total other$A M

illi

on

s

Source: ABS (8412.0 - Mineral and Petroleum Exploration, Australia, Jun 2010)

GFC

WET

Conclusion

Coal Mining and CSG Sectors in Queensland are large and growing – involving investments of many billions of dollars

Sound water, wastewater and groundwater management is vital to the success of these sectors

Sheer scale of mining and CSG activities presents opportunities for those with expertise in large-scale water and wastewater management and treatment

Current Queensland Exploration and Development Activity

473

315260

760

100

200

300

400

500

600

Grassroots Exploration AdvancedExploration

Feasibility Study

Coal (70 companies)

Minerals (258 companies)96

4289

19

Source: Intierra – September 2010