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Government of Montserrat

Background Information Document

Environment and Social Impact Assessment For

Geothermal – Drilling of Exploratory Production Wells

Prepared and Submitted By

September 2012

Contents Page

1.0 Introduction ..............................................................................................................................................3

1.1 Brief Description .....................................................................................................................................3 1.2 Purpose of Document ...........................................................................................................................3 1.3 Audience ...................................................................................................................................................3

2.0 The Project ...............................................................................................................................................4 2.1 Project Background ...............................................................................................................................4 2.2 Project Description ................................................................................................................................7 2.3 Project Purpose ......................................................................................................................................9 2.4 Project Technical information ..........................................................................................................10 2.5 Project Location....................................................................................................................................11

3.0 The Environmental and Social Impact Assessment ..................................................................12 3.1 Project Team ..........................................................................................................................................12 3.2 Environmental Impact Assessment (EIA) .....................................................................................13

3.2.1 EIA Scoping ..................................................................................................................................13 3.2.2 Environmental Stakeholder Engagement............................................................................16 3.2.4 Environmental Baseline Data ..................................................................................................17 3.2.5 Environmental Impacts .............................................................................................................17 3.2.6 Development of an Environmental Impact Management Plan (EIMP) ........................18

3.3 Social Impact Assessment (SIA)......................................................................................................19 3.3.1 SIA Scoping ..................................................................................................................................20 3.3.2 Social Stakeholder Engagement ............................................................................................23 3.3.3 Social Stakeholder Feedback..................................................................................................24 3.3.4 Socioeconomic Baseline Data ................................................................................................24 3.3.5 Social Impacts .............................................................................................................................25 3.3.6 Development of a Social Impact Management Plan (SIMP) ...........................................26

3.4 Review Institutional Capacity and Feedback ...............................................................................26 References ............................................................................................................................................................27

Montserrat Geothermal ESIA

1.0 Introduction

1.1 Brief Description

Atom Solutions Inc. has been contracted to provide specialist environmental

services to the Government of Montserrat for the effective management of

geothermal test drilling and related activities on the Island. The assignment

comprises an Environmental and Social Impact Assessment (ESIA) for the

proposed drilling of two production wells, including Environmental and Social

Management Plans to guide and monitor the performance of the drilling

contractor.

1.2 Purpose of Document

This document is intended to be the main source of information about the test

drilling project. Its purpose is to:-

Introduce the proposed project

Explain the ESIA process

Be a source of reference for the project

1.3 Audience

The primary audience for this document will be:

Stakeholder Ministries

Businesses

Non-Government Organizations (NGOs)

General Public


2.0 The Project

2.1 Project Background

The island of Montserrat is a UK Overseas Territory, located in the Leeward

Islands of the Eastern Caribbean, part of the Lesser Antilles Island Chain.

Montserrat is approximately 16 km long and 11 km wide, with a total surface area

of approximately 40 km2 and a population of 4,922 (2011 Census). The island is

the most mountainous of the Leeward Islands and is dominated by the Soufrière

Hills Volcano.

The GDP per capita is approximately U$ 8,400 (2006 data). There is limited

economic activity on the island including mining and quarrying, construction,

financial and professional services and tourism. Volcanic eruptions in 1995

destroyed the capital city and enforced the permanent relocation of inhabitants

from two-thirds of the island. Since then the territory has been dependent on UK

aid, with DFID currently providing 54% of Montserrat's recurrent budget in the

form of budget support. Montserrat's economy is 100% fossil fuel based with the

Government of Montserrat spending £ 1.7 million annually on fuel imports. This is

unsustainable from an environmental, climate change and economic perspective.

Given its volcanic origins, Montserrat has the potential for geothermal electrical

power generation as an alternative to a power supply based on imported fossil

fuels.


The exploration and exploitation of Montserrat's potential geothermal resource is

one of the Government of Montserrat's highest development priorities. However,

it is an innovative area for energy development with high up front cost.

Several studies have been undertaken to identify potentially exploitable

geothermal sources on the island. The most recent of these (including that

undertaken by EGS) have concentrated on an area which lies within the Weekes

Valley area between Garibaldi Hill and St George’s Hill, in a zone that is in the

volcanic risk area (but considered safe from direct volcanic threat) where day

time access is now possible. However, mud slides in the Belham River may

interrupt access into the potential development area if there is heavy rainfall.

See location map for proposed drilling below.


Figure 1 - Drilling Location


In 2010 a DFID funded study assessed the geothermal potential of Montserrat.

This built on the findings of other research commissioned since 1997 and

concluded that there is high probability that Montserrat has considerable

geothermal resources. The most conservative research suggests that there is a

75-80% chance of at least 5 MW of power available.

In 2011 DFID commissioned an economic assessment that assessed the

commercial viability for resources of different sizes e.g. 2-5 MW, <25 MW and

>50 MW. This assessment determined that a 2 MW production capacity had the

most favourable economic rate of return and would be sufficient for Montserrat’s

immediate and medium-term requirements.

2.2 Project Description

Recognising the high cost of mobilisation of drilling equipment to Montserrat, it is

proposed to proceed directly to the drilling of two production size wells rather

than smaller pre-production exploration ‘slim holes’ that would then need to be

followed by production wells. Given the very small area able to be explored within

the accessible zone, the drilling of slim holes before the production wells is not

expected to influence the well locations and may unreasonably delay what is an

already relatively costly development.


Each well will be drilled to a depth of 2000 ft. The target area is sited on St.

George’s Hill. Well #1 will be drilled to the bottom of the clay cap at the boundary

between the high and low resistivity zones. The zone targeted is the intersection

between orthogonal fault/fracture systems as indicated by resistivity data and

high MEQ activity in 1995 as well as surface fault mapping. It is proposed that

this area has the highest probability of having both hot fluid and locally high

permeability. Well #2 is planned to test the areal extent of the resource within the

accessible area around St George’s Hill.

The Government of Montserrat (GoM) is establishing a Geothermal Project

Management Unit (PMU) to oversee the proposed drilling of the two production

sized wells. It is anticipated that the PMU will draw technical support through a

number of associated tenders for drilling management, well site preparation and

specialist support services for well logging, analysis and testing. The services

under this tender are seen essentially as a “turnkey” delivery of two production

wells as specified by the GoM. The Drill Services Contractor (DSC) will supply all

equipment, materials, consumables and services for the completion of the drilling

programme.

The Drilling Services Contractor will provide a suitably sized drilling rig and

associated equipment and operational personnel. In addition, the Drilling

Services Contractor will be required to arrange and manage, either from within its

own resources or through competent and recognised service companies, the

provision of all materials required to complete the drilling programme as


described in these documents, mud engineering, casing and cementing services

and the provision of all pipe work, silencer and appropriate structures from well

head to test pit for production testing.

Drilling water supply requirements are estimated at 3500 litres per minute with

backup storage available through “ponding” at one or both drilling sites.

2.3 Project Purpose

The purpose of this consultancy is to ensure that:

Any potential negative environmental and social impacts associated with

drilling activities are clearly identified.

All geothermal test drilling activities are managed in order to avoid or

minimise negative environmental and social impacts.

Opportunities are identified for creating/enhancing beneficial

environmental and social effects/benefits, where possible.

Stakeholders have opportunities to contribute to the process of

environmental assessment and management and are kept informed of its

progress.

The proposed drilling is an exploratory phase for a potential geothermal

development and any power plant installation will be dependent on the outcome.

The location of the drilling operation is in a volcanic exclusion zone where there

are currently no inhabitants and into which access is restricted.


2.4 Project Technical information

Technical information for the production wells as proposed is given below.

Location St Georges Bay Hill Well A01 Coordinates Eastings 376295.3604 Northings

1848341.1684 Well B01 Coordinates Eastings 376382.7624 Northings

1848844.2617

Drilling and Casing Programme Section Depth Casing Details

Open Hole Metres 26” 40 to 60 20" 94 lb/ft, H-40, BT &C

casing cemented back to the surface

17 ½ “ 250 to 350 13 3/8" 68 lb/ft, K-55, BT &C casing cemented back to the surface.

12 ¼ “ 800 to 1000 9 5/8" 47 lb/ft, K-55, BT&C casing cemented back to the surface.

9 5/8 “ 1500 to 2000 7" 26 lb/ft, K-55, BT&C slotted liner. This casing shall extend from approximately three joints above the 9 5/8” production casing shoe to the final well depth.

Wellhead Completion Test Pressure 13 3/8” 3000 wellhead flange with adaptor spool 10” to 13 3/8”

1000 psi

10” 900 Master Valve with 2 x 1 3/8” 900 side valves

1000 psi


2.5 Project Location

The area between St. Georges Hill and Garibaldi Hill is considered the most

practical place to test for a geothermal system from a geologic, logistics and

safety perspective. Two major morphological features dominate the prospect

area. Garibaldi Hill is located south of the Old Road Bay, filled with mudflows

since the last eruption, and north of the Fox’s Bay. St George’s Hill is located

east of Garibaldi Hill, surrounded on its east and south part by the pyroclastic

flows of the most recent eruptions. This area will be the primary focus of the

ESIA, which should be carried out in accordance with the requirements of the

Physical Planning Act 2002 (Cap. 8.03) in order to identify the potential

environmental and social of the drilling activities and develop appropriate

mitigation measures in the form of an Environmental and Social Management

Plan.

The potential impact zones will be the drilling location itself and surrounding

areas; the extent of the impact zone beyond the drilling site will be determined by

the ESIA consultant. As the site is in an area where only day time access is

allowed, the impact on local communities is likely to be relatively limited.


3.0 The Environmental and Social Impact Assessment

3.1 Project Team

The team structure for this project is shown below. The resources utilized in the

execution of such roles are shown in the table.

Project Manager

(Atom)

EnvironmentalSpecialist

(Atom)

Communications Specialist

(Montserrat)

Hydro-Geologist

(Atom)

Social/Legal Specialist

(Atom)

BiodiversitySpecialist

(Government)

Resources Roles

Dr. Erwin Edwards (EE) Project Management

Energy/Climate Change Specialist

Socio-economic Impact

Communications

Mr. Cathal Healy-Singh (CH) Environmental Impact Specialist

Ms. Paula Bourne (PB) Social Impact Specialist


Environmental Impact Specialist

Legal Services

Government Resource (GOV) Biodiversity Specialist

Mr. Pramenath Narinesingh (PN) Hydro-geologist

3.2 Environmental Impact Assessment (EIA)

3.2.1 EIA Scoping

A preliminary desktop assessment undertaken by the Government of Montserrat

in March 2012, generated a provisional list of impacts and issues to be assessed

in the impact assessment. See list below:

Impacts on surface water

Impacts on groundwater

Solid and liquid wastes

Air quality

Stakeholder perceptions

Noise and vibration

Transport

Impacts on fauna

Impacts on flora

Impacts that may occur due to accidental events

Impacts on social activities during normal access times

Impact of community traditions/culture

Potential economic disruptions

Impact on legal land right

Health and Safety


The proposed drilling sites are within a restricted zone with limited access. They

were selected because of its geothermal potential and because it is relatively

safe from pyroclastic flows, being shielded by St. George’s Hill. The closest

distance to residents is 1,600m. All drill fluids will be stored adjacent to the well in

dedicated waterproof concrete structures with 960 m3 capacity. On completion of

drilling it is proposed that the liquid component is re-injected into the well. The

solid component can be left in the concrete tank, capped and integrated into

future geothermal extraction if the well yield proves viable.

The drill sites are downwind of the volcano. Baseline SO2 (sulphur dioxide), acid

rain and seismic activity are regularly monitored by the MVO. Because of these

conditions the following impacts are not expected to be significant:

Greenhouse gas emissions

Atmospheric heat pollution

Soil and land contamination

Land use conflicts

Land take

Erosion from water discharge

Marine impacts

Subsidence

Induced landslides

Induced seismicity

Visual

Public health and safety

Tourism

Archaeological


However, all relevant impacts will be assessed during the scoping phase and a

definitive list prepared to include any areas not currently identified.

Scoping is a critical, early step in the preparation of an EIA. The scoping process

identifies the issues that are likely to be of most importance during the EIA and

eliminates those that are of little concern. Typically, this process concludes with

the establishment of Terms of Reference for the preparation of an EIA. In this

way, scoping ensures that EIA studies are focused on the significant effects and

time and money are not wasted on unnecessary investigations. A detailed

understanding of the logistics for landing, transporting and mobilizing the drill rig

for the drilling operation, the materials used, duration and occupational risks will

also be part of the scoping exercise.

The purpose of scoping is to identify:

The important issues to be considered in an EIA

The appropriate time and space boundaries of the EIA study

The information necessary for decision-making

The significant effects and factors to be studied in detail.

Meetings were held with the focal point in the Contracting Ministry. This is the

Director of the Public Works Department in the Ministry of in the Ministry of

Communications, Works and Labour. Meetings were also held with the

Montserrat Volcano Observatory, the Water and Wastewater Division of the

Utilities Company and the Departments of Environment and Planning in the

Ministry of Agriculture, Land, Housing and Environment. Meetings will also be


held with key Government entities. Site visits also formed part of the Scoping

exercise. The purpose is to view and characterize the proposed drill sites as well

as the drill rig transport route from the jetty, the drainage catchment in which the

drilling will take place, key infrastructure and other activities which may be taking

place within the study in order to establish the Study Boundary.

Key to the scoping exercise is to establish risks to the project because of its

proximity to the volcano. Emergency response and evacuation routes will also be

documented.

3.2.2 Environmental Stakeholder Engagement

Meetings will be facilitated between the public, stakeholders, government and the

project team. Internal meetings and interviews will also be held with stakeholders

from critical ministries including but not limited to those with responsibility for

development, planning, transport and tourism.

Other Key institutional stakeholders in the drilling operations include the selected

drilling Contractor, Public Works Department in the Ministry of Communications,

Works and Labour, the Montserrat Volcano Observatory, the Water and

Wastewater Division in the Utilities Company, the department of Environment in

the Ministry of Agriculture, land Housing and Environment and the Royal

Montserrat Police Service (RMPS). The RMPS is responsible for security of the

current unsafe zone and for supervising access to the zone


3.2.3 Environmental Stakeholder Feedback

Feedback will be actively solicited from all attendees at our scheduled meetings

and those who are interested in the project. Electronic media will be used where

appropriate to facilitate easy communication with the project team. All findings

will be compiled in a report and used as input to the final Environmental

Management Plans to manage the drilling period. Comments may be sent to

[email protected] .

3.2.4 Environmental Baseline Data

Atom will execute all the studies necessary to explore the selected potential

impacts of the environmental factors. A number of potential impacts have been

identified for baseline data. However given the selected location, several impacts

may be insignificant. All impacts will be considered initially to ensure the

assessment is thorough and control/reference data is documented. All such data

will be collected on-site and analysed to determine significance.

3.2.5 Environmental Impacts

The consultancy will clearly identify any potential negative and positive

environmental impacts associated with drilling activities. Having identified any

potential negative impacts, the Atom team will develop specific strategies and

actions to enhance potential environmental benefits and minimise or mitigate


negative impacts. It will also include a monitoring component which will allow

government to monitor the drilling process and the execution of specific actions

in relation to minimisation, mitigation or enhancement. It will focus primarily on

drilling activities.

For any potential opportunities to create or enhance beneficial environmental

effects, strategies and plans will be developed to maximize such benefits if

possible.

It is recognized that action plans required to support the drilling operations will

also address the emergency response to possible increased volcanic activity

including an emergency evacuation plan to the shore line to a stand by marine

vessel.

3.2.6 Development of an Environmental Impact Management Plan (EIMP)

Framework

The EIMP will present a framework for the control, mitigation, monitoring and

auditing if necessary, to prevent or limit potentially adverse environmental

impacts from the drill operations. In addition to the monitoring of environmental

mitigation measures directly associated with the drilling, the monitoring and

communication of risks associated with volcanic activity is critical because the


drill site is located in a ‘controlled access’ area. An emergency prevention,

response and evacuation plan will form part of the EIMP framework.

Management System

The EMP will identify a management system where defined resources have

specific roles and responsibilities. The EIMP must be integrated into all activities

of the drilling contractor. It is the shared responsibility of the stakeholders to

ensure that all persons associated with the drilling operations are orientated and

familiar with the EMP and follow all its recommendations.

3.3 Social Impact Assessment (SIA)

Planners, decision makers and technocrats alike have increasingly recognised

the importance of the social impact assessment process as critical to better

understanding the social issues which may arise from major development and

the consequences of programmes, and policies. Consequently, a Social Impact

Assessment has now become an important part of the project preparation

process. Goldman and Baum (2000) define Social Impact Assessment (SIA) as

a method of analyzing what impact actions may have on the social aspects of the

environment.

The IOCPGSIA (2003) defines social impacts as “the consequences to human

populations of any public or private actions that alter the ways in which people

live, work, play, relate to one another, organize to meet their needs, and


generally cope as members of society”. The term also includes cultural impacts

involving changes to the norms, values, and beliefs that guide and rationalize

their cognition of themselves and their society.” Social Impacts can be positive or

negative.

There are several steps which are necessary to undertake the Social Impact

Assessment process. These are defined in the context of this specific project

which involves the drilling of two Geothermal Testing Holes.

3.3.1 SIA Scoping

Atom has compiled a list of preliminary impacts and issues to be examined in the

impact assessment. See list below:

Stakeholder perceptions

Transport

Impacts that may occur due to accidental events

Impacts on social activities during normal access times

Stress on social support systems

Impact of community traditions/culture

Potential economic disruptions

Impact on legal land rights

Health and Safety concerns for workers

Loss of access to Government/other buildings to conduct business

Change in the supply/cost of utilities

Loss of housing or community resources

Health and Safety


In order to complete the scoping exercise a number of steps were necessary.

Defining the Impact Area

The impact area is a well-defined area which is expected to be affected by the

project activities. In this specific case, the location for the drilling of test holes

has already been identified. The impact zone will therefore be the area

immediately surrounding the drilling location including the Volcano Exclusion

Zone and where access is restricted. It is an area which is already prohibited to

the general public. Discussions with the local authorities will provide further

information on the level of access to the project location and this accompanied by

some community level discussions and a physical study of the surrounding

communities will help to determine the full extent of impact area.

Available Data/Information

A thorough review of information available on similar types of projects often

offers an initial basis for the identification of potential impacts. It is therefore an

instrumental exercise and a great deal of preliminary effort will be put into this

process. This process is usually most beneficial if baseline conditions are similar

to those of the present project. Therefore, where actual impact data on similar

projects within Montserrat or the region can be identified, they would be helpful in

the assessment process.


Screening

The Screening exercise requires the examination of the potential impacts from a

neutral perspective. This helps in determining the scope of detailed SIA that

would be subsequently carried out. In this process, the potential impacts can be

scanned to determine which can be classified as having no impact. These will be

eliminated in the screening process, leaving the opportunity to focus on the

impacts which are relevant to the project

Field Surveys

This Scoping exercise will involve field work. It is critical to undertake surveying

of the local environment to validate the issues which have been borne out in the

screening exercise. This part of the process will involve the review of the social

activities of the potentially affected population, inclusive of the movement of

persons, community activity, economic activity within the community and

activities within the Volcano Exclusion Zone. The methods that will be

incorporated into this Scoping Exercise will include a review of:

Official Census

Land Title Records

Official Socioeconomic Reports

Other administrative records

Key Informant discussions with Government Ministries

Key Informant Questionnaires

Public Consultations


3.3.2 Social Stakeholder Engagement

Stakeholders are persons in the community, groups or institutions which are

likely to be affected by a proposed intervention (either negatively or positively), or

those which can affect the outcome of the intervention. After defining the impact

zone, these groups become clearer. However, not only those in the impact zone

may be affected since there are those persons who also have an interest as a

result of benefits to be derived. The various stakeholders will be identified

through a process of consultation within the community. The process of

identification will include determining:

Who are the direct beneficiaries of the project

Who are adversely affected by the project

Groups whose support would be helpful in the successful completion of the

drilling exercise

Groups whose opposition would be detrimental to the successful completion

of the drilling exercise

Vulnerable groups within the immediate community

Hence included in this group may be persons likely to find work, persons who

may traverse the immediate surroundings of the project location or those who

may have property in the immediate surrounds, along with those who may stand

to gain indirectly from an economic point of view.


3.3.3 Social Stakeholder Feedback

Feedback will be actively solicited from all attendees at our scheduled meetings.

It would also involve interaction with special interest groups and stakeholders,

government officials and relevant community organisations. A canvassing of the

potentially affected community is required to ensure that all concerned interest

groups are given a voice. Social issues can often be qualitative in nature,

involving feelings, norms and patterns of a community. Therefore, examination,

observation and open discussion all form part of this process. Electronic media

will be used where appropriate to facilitate easy communication with the project

team. All findings will be compiled in a report and used as input to the final Social

Management Plans to manage the drilling period. Comments may be sent to

[email protected]

3.3.4 Socioeconomic Baseline Data

A socio-economic review is required in order to determine the level of economic

activity within the affected community. Economic indicators from local economic

and social reports will be utilized to develop a profile of the state of the

Montserrat economy. There is no community within the Exclusion Zone, but if

the surrounding area has residential and economic activity as determined by the

Screening Process, the socio-economic profile of this area will be studied. In

addition, the drilling activities are likely to have some impact on the employment

situation within the country in the short-term. However temporary, the impact of


this activity must still be examined and measured and incorporated into the

Management Plan.

3.3.5 Social Impacts

The identification and assessment of the impacts can be conducted once all of

the preceding information is gathered and a solid picture of the project, issues

and potential impacts have been identified. A probability assessment on the

extent and consequences of those impacts on social values will be undertaken.

Based upon the severity of the impact (from high to low) the impact may be

deemed unacceptable or appropriate mitigation measures may be recommended

to reduce the extent of the impact or to soften the impact.

Because of the qualitative nature of some social impacts, a comparative ranking

methodology may not always be possible. It is therefore very important to

consult the affected groups in determining which impacts likely affect them more

severely since the SIA specialist must be most concerned with provision of relief

to the community. Impacts which are classified as positive also need to be

managed in order to ensure that maximum benefit results from them. The

importance of the Management Plan cannot be overstated since that is the tool

for controlling the stated impacts.


3.3.6 Development of a Social Impact Management Plan (SIMP)

Once the severity of the impacts is identified, the development of a Social Impact

Management Plan (SIMP) or a mitigation plan will be undertaken. This Plan will

identify all of the impacts which need to be managed, the corresponding levels

and the recommendation for mitigation. It would also include a monitoring facility

and indicators to measure both the impact and the success of the recommended

mitigation measures. Impacts are however dynamic in nature, consequently the

Plan will be a living document and allow for continuous changes where

necessary.

3.4 Review Institutional Capacity and Feedback

Draft documents will be reviewed by selected stakeholders, DfID and other key

persons. It will also be necessary to review the institutional capacity to ensure

resources and the required skill sets exist to implement and monitor the two

management plans.


References

Goldman, Laurence and Scott Baum 2000 “Introduction” in Laurence R Goldman (ed)

2000 Social Impact Analysis: An Applied Anthropology Manual Oxford/New York: Berg

IOCPG (Interorganizational Committee on Principles and Guidelines for Social Impact

Assessment) 2003 “Principles and Guidelines for Social Impact Assessment in the

USA” Impact Assessment and Project Appraisal, volume 21, number 3, September

2003 (pg 231)

Government of Montserrat 2010 “Final Report Geothermal Exploration in Montserrat,

Caribbean” GOM

Government of Montserrat 2012 “Terms of Reference for Montserrat Geothermal Test

Drilling”, GOM

Government of Montserrat 2002 “PHYSICAL PLANNING ACT and Subsidiary

Legislation, Revised Edition” , GOM

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