lFl .sf{f, grgqr rnrqaeU-r Oi! lndia Limited-I (A Government of lndia Enterprise)

Conquering Newer Horizons

I{EF PROJECT, OIL INDIAUMITED

DULTAJAN - 786 602, ASSAM (tNDtA)

REGISTERED OFFICE : DULIAJAN

gPdqMH - \szq qo?, ersq (qrfr)qft6fl orqtilq : gftramn

ANNgxr/RE - 3Tel :0374-2807451

:0374-2807461Fax :0374-2801799E-mail : nef@oilindia.in

Reference: NEF: 02 I 2-985 I 2014

Joint Director (SfMinistry of Environment and ForestsNorth Eastern Regional OfficeLaw-U-Sib, LumbatngenNear MTC Workshop, Shillong-793 O2l

Date: 27 ILI12014

Email: moefenv 1 3shil@qmail.comFax: 0364-2536041

Subject: Six monthiy EC compliance reports for the period from lst Aprii, 2OL4 to30ft September, 2Ol4 on the status of compliance of the stipulated EC conditions.

EC No: F. No. J- 1 10 1l 1877 12007-IA II (I) dated 3d August, 2012.Block: Exploratory Drillingrn MZ-ONN-2004 I l, in the districts of Arzawl, Lunglei,

Mamit and Serchhip in the state of Mozoram by M/s Oil India Limited.

Well name: MZ#3.

S1. No. Condition Compliance statusA. Specific conditions:

(i) As proposed, only 6 nos. exploratory wells shallbe drilled. No additional wells shall be drilledwithout prior permission this Ministry.

Agreed to comply

(ii) As proposed, flo drilling of well and anyconstruction work shall be carried out in forestland.

Agreed to comply

(iii) Gas produced during testing shall be flared withappropriate flaring booms. The flare systemshall be designed as per good oil field practicesOISD guidelines. The stack height shall beprovided as per the regulatory requirements andemissions from stacks will meet theMOEF/CPCB guidelines.

Flare boomsprovided for flaringduring testing As perOISD guidelines. A11

OISD/CPCB/MoEFguidelines followed.

are

(iv) Ambient air quality shall be monitored near theclosest human settlements as per the NationalAmbient Air Quality Emission Standards (NAAQ)issued by the Ministry vide GSR No. 826(E)dated 16th November'2OO9 for PM10,PM2.5,SO2, NOx, CO,CH4,HC, non-methane HC etc.

Ambient air quality ofthe Nearby areamonitored as per NAAQemission standards.(Test report enclosed|

(v) Mercury shall be analysed in air, water and driilcuttings twice during drilling period.

Complied(Test report enclosed)

(vi) Approach road shall be made pucca to minimiseqeneration of suspended dust.

Complied

(vii) The Company shall make the arrangement forcontrol of noise from the drilling activity.Acoustic enclosures to the DG sets and properstack height shall be provided as per the CPCBguidelines.

Noise barriers areconstructed forreduction of Noise Level.Noise levels aremonitored at suitableperiod. DG sets areprovided with stackheights. People workingnear the sets areprovided with ear muffs.

(viii)Total fresh water requirement from groundwater source shall not exceed 25 m3ldaylwelland prior permission shall be obtained from theconcerned agency.

Fresh waterrequirement being metby tanker supply.

(ix) The company shall construct the garland drainall around the drilling site to prevent runoff ofany oil containing waste into the nearby waterbodies.Separate drainage system shall be created for oilcontaminated and non-oil contaminated.Effluent shall be properly treated and treatedwaste water shall confirm to CPCB standards.

Constructed the garlanddrains all around thedrilling sites.Effluent water is beingreused/re-cycled aftertreatment with mobileETP.

(x) Good sanitation facility shall be provided at thedrill site. Domestic sewage shall be disposed-offthrough septic tankl soak pit.

Complied

(xi) Drilling wastewater including drill cuttings washwater shall be collected in disposal pit lined withHDPE lining evaporated or treated and shallcomply with the notified standards for on-shoredisposal. The membership of common TSDFshali be obtained for the disposal of drillcuttings and hazardous waste. Otherwise,secured land fill shall be created at the site asper the design approved by the CPCB and obtainauthorisation from the SPCB. Copy of theauthorisation or membership of TSDF shall besubmitted to Ministry's Regional Office atShillong.

Drilling waste water anddrili cuttings washwater are collected inHDPE lined waste pitand left for soiarevaporation.Waste Water collected inthe Effluent Pit istreated with ETP andTested.(Test reports aresubmitted to MizoramState Pollution ControlBoard-Test reportenclosed)

(xii) Oil spillage prevention and mitigation schemeshall be prepared. In case of oilspillage/contamination, action plan shall beprepared to clean the site by adopting proventechnolosv. The recvclable waste foil sludse) and

Spent oil wili bedisposed off to theAuthorised recyclers.

spent oil shall be disposed of to the authorisedrecyclers.

(xiii) The company shall comply with the guidelinesfor disposal of solid waste, drill cutting anddrilling fluids for onshore drilling operationnotified vide GSR, 546(E) dated 30th August,2005.

Complied.(Barite test report forMercury& cadmiumenclosed).

(xiv) The Company shall take necessary measures toprevent fire hazards, containing oil spill and soilremediation as needed. Possibility of usingground flare shall be explored. At place ofground flaring, the overhead flaring stack withknockout drums shall be installed to minimizegaseous emissions during operation.

Fire fighting equipmentprovided as perorsD- 189.Flaring will be donethrough flare stackduring testing for briefperiod only.

(xv) The Company shall develop a contingency planfor HzS release including all necessary aspectsfrom evacuation to resumption of normaloperations. The workers should be provided withpersonal HzS detectors in locations of high riskof exposure along with self-containing breathingapparatus.

No HzS is expected inthe field.Portable HzS gasdetectors are providedfor monitoring.

(xvi) The company shall carry out long termsubsidence study by collecting baseline databefore initiating drilling operation till the projectlasts. The data so collected shall be submittedsix monthly to the Ministry and its RegionalOffice at Shillone.

Subsidence study yet tobe taken up

(xvii) Blow Out Preventer (BOP) system shall beinstalled to prevent well blowouts during drillingoperations,Blow Out Prevention measures during drillingshall focus on maintaining well bore hydrostaticpressure by proper pre-well planning anddrilling fluid logging etc.

BOP's are installed.

(xviii) Emergency Response Plan (ERP) shall be basedon the guidelines prepared by OISD, DGMS, andGovt. of India.

Being prepared.

(xix) The company shall take measures aftercompletion of drilling process by well pluggingand secured enclosures, decommissioning of rigupon abandonment of the well and drilling siteshall be restored the area in original condition.In the event that no economic quantity ofhydrocarbon is found a full abandonment planshall be implemented for the drilling site inaccordance with applicable Indian PetroleumRegulations. Remote monitorins of the site shall

In the event of noeconomic quantity ofhydrocarbon is found,wells will be abandonedas per applicable norms.

be done.

(xx) Occupational health surveillance of the workersshall be carried out as per the prevailing Actsand Rules.

Periodic medicalexamination (PME) isdone as per norms.

(xxi) In case the commercial viability of the project isestablished, the company shall prepare adetailed plan for development of oi1 and gasfields for the above block and obtain freshclearance from the Ministry.

In case commercialviability Established,the company willprepare a detaileddevelopment plan andapply for fresh clearancefrom the Ministrv.

(xxii) Restoration of the project site shall be carriedout satisfactorily and report shall be sent to theMinistry's Regional Office at Shillong.

Restoration of the siteshall be done as pernorms.

(xxiii) Oil content in the drill cuttings shall bemonitored by some authorised agency andreport shall be sent to the Ministry's RegionalOffice at Shillong.

Oil content in the drillcuttings is beingmonitored by thirdparty authorised agency(ETP test reportenclosedl.

(xxiv) Under corporate social responsibility (CSR),sufficient provision shall be made for healthimprovement, education, water and electricitysupply etc. in and around the project.

OIL providing adequatefunds under CSRscheme.

(xxv) A11 diesel and lubricant storage tanks shall bebunded.

Complied.

(xxvi) Company shall have own EnvironmentManagement Cell having qualified persons withproper background.

HSE setup is functionalin the company to carryout these functions.

(xxvii) A11 the commitment made regarding issuesraised during the public hearing/consultationmeeting held on 18t1, August, 2011, 23ra August,2oll, 25h August, 2OI1 and 30ft August 2ollfor Serchhip, Aizawl, Mamit and Aizawl districtsshail be satisfactorily implemented.

Shall be implemented.

(xxviii) Company shall prepare and circulate theenvironmental policy.

Being circulated.

(""i*) Company shall prepare operating manual inrespect of all activities. It shall cover all safety &environment related issues and system.Measures to be taken for protection. One set ofenvironmental manual shall be made availableat the drill site/ oroiect site.

MoEF approved EIAreports are available.Environmentalprotection measuressuggested in the reportare beins adhered.

Awareness shall be created at each level of themanagement. A11 the schedules and results ofenvironmental monitoring shall be available atthe project site office.

(xxx) Drill site shall be at least 500m away from theschool.

Complied

(xxxi) All personnel including those from thecontractors shall be trained and made fullyaware of the hazards, risks and controls inplace.

Being complied

B. General Conditions

(i) The project authorities must strictly adhere tothe stipulations made by the Mizoram PollutionControl Board (MPCB), State Government andany other statutory authority.

The observations raisedby the statutoryauthorities like MPCB,DGMS, OISD arecompiled as and whenraised.

(ii) No further expansion or modification in theproject shal1 be carried out without priorapproval of the Ministry of Environment &Forests. In case of deviations or alternations inthe project proposal from those submitted tothis Ministry for clearance, a fresh referenceshall be made to the Ministry to assess theadequacy of conditions imposed and to addadditional environmental protection measuresrequired, if any.

Drilling activities areconducted as per theapproval received fromMoEF.

(iii) The project authorities must strictly comply withthe rules and regulations under Manufacture,storage and import of hazardous chemicalsRules, 2000 as amended subsequently. Priorapprovals from Chief Inspectorate of Factories,Chief Controller of Explosives, Pire SafetyInspectorate etc., must be obtained, whereverapplicable.

Drilling operations arecarried out as perDGMS, OMR- 1984 andOISD standards.

(iv) The overall noise levels in and around the plantarea shall be kept well within the standards byproviding noise control measures includingacoustic hoods, silencers, enclosures, etc., on allsources of noise generation. The ambient noiselevels shall conform to the standards prescribedunder EPA Rules, 1989 vtz. 75 dBA (day time)and 70 dBA (night time).

Noise level beingmonitored (Test reportenclosed).Acoustic barriers areprovided for the gen setsto minimise the noiselevels with in specifiedlimits. E,ar muffsorovided for the oersons

working near thegensets. The ambientnoise levels are beingmonitored reeularlv.

(") A separate Environmental Management Cellequipped with full-fledged laboratory facilitiesmust be set up to carry out the environmentalmanagement and monitoring functions.

Complied.

(vi) A copy of the clearance letter shal1 be sent bythe proponent to the concerned panchayat, ZilaParishad/ Municipal Corporation, Urban Loca1Body and the local NGO, if any from whomsuggestions/representations, if dny, werereceived while processing the proposal. Theclearance shall also be put on the web site of thecompany by the proponent.

Complied

(vii) The project proponent shall upload the status ofcompliance of stipulated environment clearanceconditions, including the results of themonitored data on their web site and shallupdate the same periodically. It shallsimultaneously be sent to the Regional Office ofthe MOEF, the respective Zonal Office of CPCBand the MPCB. The criteria pollutant levelsnamely, PMro, SOz, NOx, HC (Methane & nonmethane), VOCs (ambient levels as well as stackemissions) or critical sectorial parametersindicated for the projects shall be monitored anddisplayed at a convenient location near the maingate of the company in the public domain.

Being complied

(viii) The project proponent shall also submit sixmonthly compliance reports on the status of thecompliance of the stipulated environmentalconditions including the results of the monitoreddata (both in hard copies as well as by e-mail) tothe Regional Office of MOEF, the respectivezonal of CPCB and the MPCB. The RegionalOffice of this Ministry/CPCB/MPCB shallmonitor the stipulated conditions.

Being complied.

(ix) The environmental statement for each financialyear ending 3lst March in the form-V ismandated to be submitted by the projectproponent to the concerned state pollutioncontrol board as prescribed under theEnvironment (protection) Rules 1986 asamended subsequently shall also be put on the

Environmentalstatement will besubmitted to the StatePollution Control Boardas per norms at the endof the financial yearQO14-151.

web site of the company along with the status ofcompliance of environmental conditions andshall also be sent to the respective regionaloffices of the MOEF by email.

(x) The Project Proponent shall inform the publicthat the project has been accordedenvironmental clearance by the Ministry andcopies of the clearance letter are available withthe MPCB and may also be seen at Website ofthe Ministry and Forests athttp:/www.envfor.nic.in. This shall be advertisedwithin seven days of the issue of this letter atleast two local newspapers that are widelycirculated in the region of which one shall be inthe vernacular language of the localityconcerned and a copy of the same shall beforwarded to the Regional office. Company policyand other relevant information being displayedin front of each locations. Details of theenvironmental clearance are published in thelocal newspapers.

Details of theenvironmental clearanceare published in thelocal newspapers.

(xi) The Project Authorities shall inform the RegionalOffice as well as the Ministry, the date offinancial closure and final approval of theproject by the concerned authorities and thedate of commencing the land development work.

All the project detailsare provided to thestatutory authorities.Project Details:(i) EC obtained on

3l08l2or2.(ii)Consent to establish

(from MPCB) 3'dOctober, 2OL2.

(iii) Land developmentwork started inNovember,2Ol2(Work Order issuedate 0l.ll.2OI2l

GSR 546(E) dt. SOth August, 2OO5. Disposal of Drill Cutting and DrillingFluids for On-shore Installations:

(a) Drill Cuttings (DC) originating from on-shore orlocations close to shore line and separatedfrom Water Base Mud (WBM) should beproperly washed and unusable drilling fluids(DF) such as WBM, Oil Base Mud (OBM), andSynthetic Base Mud (SBM) should be disposedof in a well-designed pit lined with imperviousliner located off-site or on-site. The disposal pitshould be provided additionally with leachate

Only WBM used. Mud isrecycled and reused.Cuttings and un usedmud is washed andcollected in imperviousHDFE lined pit in thedrill site designed as perspecifications.

collection system. Design aspects of theimpervious waste disposal pit; capping ofdisposal pit should be informed by the oilindustry to State Pollution Control Board(SPCB) at the time of obtaining consent.

(b) Use of diesel base mud is prohibited. OnlyWBM should be used for on-shore oil drillingoperations.

OnIy water based mud(WBM) is used

(c) In case of any problem due to geologicalformation for drilling, low toxicity OBM havingaromatic content<l%o should be used. If theoperators intend to use suchOBM to mitigate specific hole problem/ SBM itshould be intimated to Ministry ofEnvironment and Forests/State PollutionControl Board.

Only water based mud(WBM) is used

(d) The chemical additives used for thepreparation of DF should have low toxicity i.e.

toxicity or toxicity test conducted on locallyavailable sensitive sea species. The chemicalsused (mainly organic constituents) should bebiodegradable.

A11 additives used in themud are having 96 hrs.

rngll.(Toxicity test reportenclosedf

(e) DC separated from OBM after washing shouldhave oil content at < 10 gm/kg for disposal intodisposal pit.

Only water based mud(WBM) is used.

(0 The waste pit after it is filled up shall becovered with impervious liner, over which, athick layer of native soil with proper top slopeis provided.

Will be complied.

(g) Low toxicity OBM should be made available atinstallation during drilling operation.

OBM not used

(h) Drilling wastewater including DC wash watershould be collected in the disposal pitevaporated or treated and should comply withthe notified standards for onshore disoosal.

Complied

(i) Barite used in preparation of DF shall notcontain Hgrl mglkg & Cd> 3mg/kg.

Barites used containsCd<3mg/l andHg< 1mg/1.(Test report enclosedl

0) Total material acquired for preparation of drillsite must be restored after completion ofdrillins ooeration leavins no waste material at

After completion ofdrilling all the materialis removed from the site

site. SPCB should be informed about therestoration work.

and site is restoredback.

(k) In case, environmentally acceptable methodsfor disposal of drill waste such as (a) injectionto a formation through casing annuals, ifconditions allow (b) land farming at suitablelocation (c) bio-remediation (d) incineration or(e) solidification can be considered, in suchcases oil industry is required to submitproposal to Ministry of Environment andForests/State Pollution Control Board(MoEF/ SPCB) for apnroval.

Noted for compliance.

STATUS OF OTHER DRILLING LOCATIONS

Location Present Status RemarksLoc. MZ- 8 Plinth

Preparation &Pre-DrillingActivities

Rig foundation work completed.

Loc. MZ- 2 Approach andPlinth

Preparation

Civil works for approach road & plinthpreparation are in progress.

Loc. MZ-l Rig FoundationConstruction

Loc. MZ-4ls

Preparatoryprocess for Land

acquisition.

Civil Survey completed.

The above is for your kind information, please.

Thanking you,

Yours faithfullyOil India Limited

CC:

Group General Manager-NEF Project. i/c

1. Director, Monitoring Cell, MoEF, Paryavaran Bhawan, CGO Complex, LodhiRoad, New Delhi-110 003.

2. Zonal Office, Central Pollution Control Board, "TUM-SIR", Lower Motinagar,Near Fire Brigade Head Quarter, Shillong-7gs Ol4.

3. Chairman, Mizoram State Pollution Control Board, Silver House,Tuikhuahtlang, Aizawl-796 001 , Mizoram.

4. Principal Chief Conservator of Forests, Department of Environment andForests, Ttrikhuahtlang, Aizawl-796 001 , Mizoram

(B J Reddy)Group General Manager-NEF Project. i/c

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