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2 DOCUMENT DISTRIBUTION Copy No. Name Hard Copy Electronic Copy 00 Document Control 01 Sean Kildare 02 Hitoshi Okawa 03 Henk Feyen 04 Eric Koning 05 Reinoud Blok 06 Phil Grainger 07 Nicolas Wirtz 08 Daniel Loden 09 Pam Simpson 10 Department of Sustainability, Environment, Water, Population and Communities NOTICE All information contained with this document has been classified by INPEX as Public - Other and must only be used in accordance with that classification. Any use contrary to this document's classification may expose the recipient and subsequent user(s) to legal action. If you are unsure of restrictions on use imposed by the classification of this document you must refer to the INPEX Information Security Classification Directive or seek clarification from INPEX. Uncontrolled when printed. Document no.: X075-AH-STR-0001 ii

3 TABLE OF CONTENTS 1 PREFACE INTRODUCTION Project description Purpose BACKGROUND ENVIRONMENTAL OFFSET PROGRAMS Collaboration with the Northern Territory Details of environmental offsets programs Darwin Harbour integrated marine monitoring and research program Conservation status of coastal dolphins in the Northern Territory Habitat mapping for Darwin Harbour region (including Bynoe Harbour) Conservation management of marine megafauna in the western Top End Publication of Kimberley research data Coastal dolphin research Funding of Australian Research Council Linkage projects PROTECTION OF TERRESTRIAL AND MARINE HABITAT Purpose and objectives Scope Methodology Funding arrangement Timing COMMUNCIATION AND CONSULTATION Communication Consultation with DSEWPaC REVIEW...36 LIST OF TABLES Table 4-1: Environmental offset programs... 9 Table 4-2: Preliminary Implementation Plan Darwin Harbour integrated marine monitoring and research program...12 Table 4-3: Preliminary Implementation Plan conservation status of dolphins in the Northern Territory...13 Table 4-4: Preliminary implementation plan habitat mapping for Darwin Harbour15 Table 4-5: Preliminary Implementation Plan conservation management of marine megafauna in the western Top End...17 Table 4-6: Preliminary Implementation Plan publication of Kimberley research data...19 Table 4-7: Preliminary Implementation Plan coastal dolphin research...21 Table 4-8: Preliminary Implementation Plan UNSW ARC Linkage Project Grant No. LP Document no.: X075-AH-STR-0001 iii

4 Table 4-9: Preliminary Implementation Plan Proposed CDU ARC Linkage Project...25 Table 5-1: Indicative terrestrial habitat site selection criteria...29 Table 5-2: Indicative marine habitat site selection criteria...29 Table 5-3: Indicative schedule for terrestrial and marine conservation sites...30 Table 6-1: Indicative Schedule of INPEX consultation with DSEWPaC...33 LIST OF FIGURES Figure 2-1: Location of the Ichthys Field showing the proposed gas export pipeline route... 3 Figure 4-1: Northern Territory western Top End...18 Document no.: X075-AH-STR-0001 iv

5 1 PREFACE Abbreviation AIMS ARC CDU CPF DCM DLP DSEWPaC EA Act EIS EPBC Act FPSO HOA INPEX LNG LPG NLC NRETAS NT SOISOA Definition Australian Institute of Marine Science Australian Research Council Charles Darwin University central processing facility Department of Chief Minister (NT) (Northern Territory) Department of Lands and Planning (Commonwealth) Department of Sustainability, Environment, Water, Population and Communities Environmental Assessment Act (NT) environmental impact statement Environment Protection and Biodiversity Conservation Act 1999 (Cwlth) floating production, storage and offtake (facility) Heads of Agreement INPEX Operations Australia Pty Ltd liquefied natural gas liquefied petroleum gas Northern Land Council Department of Natural Resources, Environment, the Arts and Sport (NT) Northern Territory State Key Laboratory of Satellite Ocean Environment Dynamics (China) Total Total E&P Australia (before 1 July 2011); Total E&P Ichthys (after 1 July 2011) UNSW University of New South Wales Document no.: X075-AH-STR-0001 Page 1 of 36

6 2 INTRODUCTION 2.1 Project description In August 1998, INPEX CORPORATION (as Indonesia Petroleum, Ltd.) was awarded a petroleum exploration permit for permit area WA-285-P in the northern Browse Basin about 200 km north-west of Western Australia s Kimberley coast, at the western edge of the Timor Sea. That same year, the subsidiary company INPEX Browse, Ltd. was established. INPEX Browse, Ltd. s exploration drilling program from March 2000 to February 2001 resulted in a significant gas and condensate discovery in what is now called the Ichthys Field. Based on that discovery, INPEX commenced the Ichthys Gas Field Development Project (the Project). In August 2006 INPEX transferred a 24% participating interest in the Project to Total E&P Australia (Total). Total has had a long-standing partnership with INPEX elsewhere in the world and also has in-depth experience and expertise with oil & gas projects, including liquefied natural gas (LNG). In September 2008 the Ichthys Joint Venture (between INPEX Browse, Ltd. and Total E&P Australia 1 ) announced the selection of Blaydin Point on Middle Arm Peninsula in Darwin Harbour as the site for the Project's onshore LNG processing facilities. In September 2009, Petroleum Retention Lease WA-37-R over the Ichthys Field was granted to INPEX as the Operator 2 of the Ichthys Project. The area covered by the lease is approximately 912 km 2 (Figure 2-1). 1 Following the formal restructuring of the Ichthys Project which took place on 1 July 2011, the companies participating in the Ichthys Joint Venture are now INPEX Ichthys Pty Ltd (registered 5 April 2011) and Total E&P Ichthys (registered 9 May 2011). 2 Also following the formal restructuring of the Ichthys Project on 1 July 2011, the Operator of the Project is no longer INPEX Browse, Ltd., but INPEX Operations Australia Pty Ltd (registered 5 April 2011). Document no.: X075-AH-STR-0001 Page 2 of 36

7 Figure 2-1: Location of the Ichthys Field showing the proposed gas export pipeline route Offshore, INPEX intends to install a floating central processing facility (CPF) to develop the Ichthys Field. The greater part of the condensate will be transferred from the field via a subsurface pipeline to a nearby floating production, storage and offtake (FPSO) facility where it will be treated and transferred to offtake tankers for export. Natural gas from the field will be directed through an approximately 889-km-long gas export pipeline from the field to the onshore facilities at Blaydin Point on Middle Arm Peninsula in Darwin Harbour for processing into LNG and liquefied petroleum gas (LPG). A small percentage of the condensate will also be sent to Blaydin Point via the gas export pipeline and shipped from Darwin after treatment. The Project s infield facilities, including the greater part of the offshore component of the subsea pipeline, fall under Commonwealth jurisdiction, while the nearshore and onshore facilities in Darwin fall under Northern Territory (NT) jurisdiction. The nearshore infrastructure will consist of an approximately 27-km length of the subsea gas export pipeline from the mouth of Darwin Harbour to the pipeline shore crossing on the western side of Middle Arm Peninsula; a module offloading facility on Blaydin Point for receiving prefabricated gas-processing modules; a two-berth product loading jetty on the north-western end of Blaydin Point; and a navigation channel, turning basin and berthing pocket for the product tankers. Document no.: X075-AH-STR-0001 Page 3 of 36

8 The onshore facilities at Blaydin Point will include an 8-km-long onshore pipeline corridor from the shore-crossing area to the Blaydin Point gas-processing plant; two gas liquefaction trains, each capable of producing approximately 4.2 Mt/a of LNG; an LPG (propane and butane) fractionation plant; a condensate stabilisation plant; seven storage tanks (two for LNG, three for condensate, one for propane and one for butane); and associated utilities and administration facilities. The Project was assessed under the Northern Territory s Environmental Assessment Act (EA Act) and the Commonwealth s Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) in 2010 and 2011 as an environmental impact statement. The Northern Territory s Minister for Natural Resources, Environment and Heritage approved the Project under the EA Act on 17 May 2011, attaching a set of recommendations to his assessment report 3. The Commonwealth s Minister for Sustainability, Environment, Water, Population and Communities handed down his Approval Decision for the Project under the EPBC Act on 27 June 2011, together with a set of ministerial conditions Purpose The purpose of this document is to detail INPEX s Coastal Offset Strategy in accordance with Condition 11 of the Commonwealth s Approval Decision. It includes: high-level details on the implementation of offsets outlined in Condition 11(a) commitments to time frames and funding arrangements for the provision of permanent protection of approximately 2000 ha of terrestrial vegetation and mangroves as outlined in Condition 11(b) commitments to time frames and funding arrangements for the provision of permanent protection of marine habitat as outlined in Condition 11(c). 3 Department of Natural Resources, Environment, the Arts and Sport Ichthys Gas Field Development Project, Blaydin Point: INPEX Browse, Ltd. environmental assessment report and recommendations. Assessment Report 65. Environment and Heritage Division, Department of Natural Resources, Environment, the Arts and Sport, Darwin, Northern Territory. Viewed online on 21 December 2011 at < assessment/register/inpex/pdf/assessment_report_nretas.pdf>. 4 Burke, The Hon. T. (Commonwealth Minister for Sustainability, Environment, Water, Population and Communities) Approval decision: Ichthys offshore and onshore processing facilities and subsea pipeline (EPBC 2008/4208) conditions attached to the approval. Department of Sustainability, Environment, Water, Population and Communities, Canberra, ACT. Viewed online on 29 December 2011 at < epbc/notices/assessments/2008/4208/approval.pdf>. Document no.: X075-AH-STR-0001 Page 4 of 36

9 3 BACKGROUND In 2007, the Department of Sustainability, Environment, Water, Population and Communities (DSEWPaC) released its Environment Protection and Biodiversity Conservation Act 1999 Draft Environmental Offsets Policy 5 in recognition of the importance of delivering high-quality conservation outcomes for matters protected under the EPBC Act. The draft policy defines environmental offsets as measures which provide compensation for those impacts which cannot be adequately reduced through avoidance and mitigation, and offsets are seen as a means for counterbalancing residual environmental impacts arising from developments assessed under Part 9 of the EPBC Act. The Draft Environmental Offsets Policy provides for the application of environmental offsets as an approval condition under the EPBC Act. INPEX recognised the importance of environmental offsets to compensate any significant residual environmental impacts arising from the Project during the environmental approvals process in The Northern Territory and Commonwealth governments had previously determined that the Project should be formally assessed at the environmental impact statement (EIS) level. INPEX submitted its Draft EIS in July 2010 and, after a period of public review, published its EIS Supplement in April In the EIS Supplement (Section 4.9 page 137 of the EIS Supplement), INPEX committed to a number of environmental offsets which included the following: a long-term boat-based survey of coastal dolphins in Darwin Harbour to improve understanding of their abundance, distribution and critical resource needs participation in a proposed integrated marine monitoring and research program for Darwin Harbour support of the Australian Research Council (ARC) Linkage Projects scheme. INPEX has committed to supporting two ARC Linkage research proposals in Darwin Harbour and will make a significant contribution in cash or in kind that will be equal to, or greater than, ARC funding of the projects the publication of the results of the extensive biological and ecological studies undertaken by INPEX along the Western Australian Kimberley coastline to support the preparation of its EIS. A tripartite process was established during environmental approvals process between the Department of Chief Minister (DCM) (representing the Northern Territory Government), DSEWPaC and INPEX to negotiate an environmental offset package. In May 2011, the Northern Territory Government provided a letter to the Acting Secretary of the DSEWPaC outlining the agreements reached between INPEX and the government on various environmental offsets that INPEX would voluntarily commit to should the Project be approved. The environmental offsets outlined in the this letter may be summarised as follows: greenhouse gas offsets: $37 million over 20 years for savannah-burning projects in the Daly River area and the Delissaville Wagait Larrakia 5 Department of the Environment and Water Resources Draft policy statement: use of environmental offsets under the Environment Protection and Biodiversity Conservation Act Department of the Environment and Water Resources, Canberra, ACT. Viewed online on 28 December 2011 at < publications/pubs/draft-environmental-offsets.pdf>. Document no.: X075-AH-STR-0001 Page 5 of 36

10 Aboriginal Land Trust area; and agreement to use best endeavours to source carbon credits under any future statutory obligation from Territory suppliers if they are compliant and market-competitive environmental offsets: $51 million over 40 years for seven other environmental projects social and community development: $3 million to assist with the establishment of a Hydrocarbon Centre of Excellence at Charles Darwin University. As noted above, the Commonwealth Minister for the Environment granted approval of the Project on 27 June 2011 under the EPBC Act. The Approval Decision included a condition (as Condition 11) for INPEX to submit a Coastal Offset Strategy (this document), to implement various environmental offset programs, and to set aside for permanent protection terrestrial and marine habitat in the Northern Territory. The voluntary environmental offsets agreed by INPEX and outlined in the Northern Territory Government s letter to the DSEWPaC in May 2011 were incorporated into Condition 11 of the Commonwealth Minister s Approval Decision to become legally enforceable commitments. These environmental offsets are described in Condition 11 of the Approval Decision as follows: The person taking action must submit for the Minister's approval a Coastal Offset Strategy for the protection of listed threatened species and listed migratory species impacted by the proposal in Darwin Harbour. The Coastal Offset Strategy must include: a) High level details on the implementation of the following offsets outlined in the Northern Territory's letter to the Acting Secretary of the Department of Sustainability, Environment, Water, Population and Communities dated 23 May 2011, including a commitment and indicative schedule for the development of detailed sub-plans for each offset program publication of data collected for the Browse Basin and Kimberley coastline an integrated monitoring and research program for Darwin Harbour habitat mapping for Darwin Harbour Region (including Bynoe Harbour) funding of Australian Research Council Linkage project conservation management of marine megafauna in the western Top End research on the conservation status, distribution and habitat use of coastal dolphins. b) Provision for the permanent protection of approximately 2000 ha of terrestrial vegetation and mangroves, or of an area as otherwise agreed by the Minister and provision for the management of the protected area(s) for the life of the project; Note 1: Permanent protection can include the acquisition and inclusion of an area in the conservation estate, covenanting arrangements on private land, other formal agreements with private landholders, or permanent changes to management regimes on Crown or Aboriginal land. Note 2: This condition does not limit the provision of these offsets in synergy with any conditions of any other approving party. c) Provision for the permanent protection of marine habitat for inshore dolphins, marine turtles and Dugong that is preferably, but not necessarily, adjacent to the protected mangrove vegetation and provision for the management of the protected area(s) for the life of the project; Note 1: Permanent protection can include the acquisition and inclusion of an area in the conservation estate, covenanting arrangements on private land, other formal agreements with private landholders, or permanent changes to management regimes on Crown or Aboriginal land. Note 2: This condition does not limit the provision of these offsets in synergy with any conditions of any other approving party. Document no.: X075-AH-STR-0001 Page 6 of 36

11 The Coastal Offset Strategy must include commitments to timeframes and funding arrangements, and be made available on the proponent's website. The strategy must be submitted for approval at least three months before construction activities commence in Darwin Harbour. No construction activities may commence in Darwin Harbour until the Coastal Offset Strategy is approved. The environmental offsets set in Condition 11 include direct and indirect offsets, and are designed to compensate for residual environmental impacts associated with the Project, in accordance with the Draft Environmental Offsets Policy. For the purposes of this Coastal Offset Strategy, the environmental offsets outlined in Condition 11 of the Approval Decision are placed in two broad categories: Environmental offset programs: Offset programs listed in Condition 11(a). Protection of habitat: The provision for the permanent protection of approximately 2000 ha of terrestrial vegetation and mangroves as described in Condition 11(b) and marine habitat as described in Condition 11(c). Document no.: X075-AH-STR-0001 Page 7 of 36

12 4 ENVIRONMENTAL OFFSET PROGRAMS 4.1 Collaboration with the Northern Territory In order to formalise the implementation of the Project's environmental offset programs, a heads of agreement (HOA) has been developed between the Northern Territory Government and the Ichthys Joint Venture participants INPEX and Total. The HOA was drafted in May 2011 and executed in June The HOA outlines the collaborative approach that will be undertaken by the three parties to implement $91 million of offsets for the Project, which are categorised as follows: environmental offsets (detailed in this Coastal Offset Strategy) greenhouse gas emissions (greenhouse gas emissions offsets detailed in the HOA are not included in the scope of this Coastal Offset Strategy as they are not part of Condition 11. Reference is made to these offsets to provide a broader overview of INPEX s offset commitments) social and community development (social and community development programs detailed in the HOA are not included in the scope of this Coastal Offset Strategy as they are not part of Condition 11. Reference is made to these offsets to provide a broader overview of INPEX s offset commitments). Obligations in the HOA include the establishment of a formal consultation process and reporting requirements between the Territory, INPEX and Total. The HOA also includes a legally enforceable commitment to develop a Detailed Agreement to further build on the obligations in the HOA. A Detailed Agreement was drafted in August 2011, and is currently being reviewed by the Northern Territory Government, INPEX and Total. The Detailed Agreement is expected to be finalised and executed in The Detailed Agreement will reinforce the commitment to the environmental offset programs, including INPEX s commitment to spending $91 million to fund offset programs, and will describe the funding arrangements and annual budget plans. The Detailed Agreement will outline the obligations of the Company (INPEX on behalf of the Ichthys Project) and the Northern Territory Government, including the requirement for parties to develop, manage, resource and implement offset programs. It will also provide for a Steering Committee with representatives from the Northern Territory Government and INPEX to ensure that the implementation of the environmental offset programs remains a collaborative process between the parties. The intent of the Steering Committee will be to act as a forum for consultation about the offset programs. The Detailed Agreement will also include obligations for reporting and auditing. The Detailed Agreement will be implemented following the Ichthys Project s final investment decision (FID) of the Project. Detailed plans for the environmental offset programs are currently being prepared in anticipation of the Project's FID, after which the Detailed Agreement and funding of the environmental offset programs can commence. Further information regarding each environmental offset program, and preliminary plans for each program, is provided in Sections to Document no.: X075-AH-STR-0001 Page 8 of 36

13 4.2 Details of environmental offsets programs The environmental offset programs listed in Condition 11(a) are as follows: publication of data collected for the Browse Basin and Kimberley coastline an integrated monitoring and research program for Darwin Harbour habitat mapping for Darwin Harbour Region (including Bynoe Harbour) funding of Australian Research Council Linkage project conservation management of marine megafauna in the western Top End research on the conservation status, distribution and habitat use of coastal dolphins. These programs have been further defined in the HOA and in the draft Detailed Agreement, with some of these programs being managed by the Northern Territory Government ( Territory-run 6 ), while other programs will be managed by INPEX ( Company-run 7 ). Table 4-1 describes which programs are Territory-run and which are Company-run, and how this relates to Condition 11(a). Table 4-1: Environmental offset programs Heads of Agreement program title Party Responsible for Delivery Condition 11(a) Program Darwin Harbour integrated marine monitoring and research program Territory-run An integrated monitoring and research program for Darwin Harbour Conservation status of coastal dolphins in the Northern Territory Territory-run Research on the conservation status, distribution and habitat use of coastal dolphins Habitat mapping for Darwin region (including Bynoe Harbour) Territory-run Habitat mapping for Darwin Harbour region (including Bynoe Harbour) Conservation management of marine megafauna in the western Top End Territory-run Conservation management of marine megafauna in the western Top End Publication of Kimberley research Company-run Publication of data collected for the Browse Basin and Kimberley coastline Coastal dolphin research Company-run Research on the conservation status, distribution and habitat use of coastal dolphins. Supporting two Australian Research Council Linkage Projects Company-run Funding of Australian Research Council Linkage project Fire and landscape management for greenhouse gas offset (savannah burning fire management) in the Daly River area and the Delissaville Wagait Larrakia Land Trust area Company-run Greenhouse offset gas Not included in the scope of this Coastal Offset Strategy 6 Territory-run means environmental offset programs managed by the Northern Territory Government which INPEX will support by making a financial contribution. 7 Company-run means environmental offset programs managed by INPEX. Document no.: X075-AH-STR-0001 Page 9 of 36

14 Heads of Agreement program title Party Responsible for Delivery Condition 11(a) Program Establishment of north Australian Hydrocarbon Centre of Excellence at Charles Darwin University Company-run Socio-economic offset Not included in the scope of this Coastal Offset Strategy Darwin Harbour integrated marine monitoring and research program The intent of an integrated marine monitoring and research programme is to provide greater understanding of the biophysical pattern and ecological process in Darwin Harbour, and subsequently improve knowledge of potential risks posed by coastal developments to marine health and resilience in Darwin Harbour. This offset program will be managed by the Northern Territory Government. INPEX is providing a financial contribution to assist with this program. INPEX has met twice (May and August 2011) with the government and other Northern Territory stakeholders to discuss the development of the marine monitoring and research program. Terms of reference and a detailed work plan have been prepared and an Interim Management Committee has been formed, which will operate until December 2012, while the Darwin Harbour integrated monitoring and research program is being designed. The design of the monitoring and research program, including species and activities that will be included in the program, is governed by the Northern Territory Government, with input from the Interim Management Committee and a scientific advisory panel. Separate to the environmental offset programs, INPEX is undertaking nearshore monitoring during construction of the Ichthys Project. The nearshore monitoring involves collecting data in Darwin Harbour for various ecological elements including sediment quality and bio-indicators, intertidal sedimentation and mangrove community health, seagrass, coral, water quality, soft bottom benthos, marine pests, fish, primary productivity, benthic fauna and EPBC Act 1999 Listed species (dugongs, marine turtles and marine mammals). While the nearshore monitoring program is not directly related to the environmental offsets programs and focuses on monitoring potential impacts from project construction activities, including dredging, vessel movements and construction of marine facilities, INPEX is committed to providing data from the nearshore monitoring program to the Darwin Harbour integrated monitoring and research program and is working with the Interim Management Committee to support the design of the Darwin Harbour integrated monitoring and research program where practicable. Once the program has been designed, the governance framework will be changed for the implementation stage of the program. Negotiations between the Northern Territory Government and INPEX are continuing to establish the most effective way to administer the INPEX funds for the monitoring and research program. This offset program provides for robust long-term monitoring and reporting, and is being designed by the Northern Territory Government with input from the Interim Management Committee and scientific advisory panel to achieve the following outcomes: to increase confidence in the management of Darwin Harbour and the commitment of Harbour users to protect key values Document no.: X075-AH-STR-0001 Page 10 of 36

15 to increase awareness and understanding of the influences on Darwin Harbour s marine condition to provide sound, evidence-based assessments of change in Darwin Harbour s marine condition, and triggering of appropriate and timely responses from regulators to provide the ability to better adjust monitoring systems and management responses for Darwin Harbour as understanding and capability improve. This offset program will provide the following benefits: It will lead to improved knowledge of Darwin Harbour s marine environment. It will provide an improved understanding of potential future impacts of Darwin Harbour use. It will contribute to the scientific knowledge of Darwin Harbour. It will contribute to improvement in environmental management of Darwin Harbour. It will contribute to a robust framework for assessing long-term marine impacts in Darwin Harbour. INPEX has committed $20 million over 40 years to assist the Territory Government with the Darwin Harbour integrated monitoring and research program. The funds will be paid annually in accordance with the Detailed Agreement; details of payment will be finalised when the Detailed Agreement is signed by Northern Territory Government and Company. INPEX has set aside a budget to fund this program. A preliminary implementation plan for the Darwin Harbour Integrated Marine Monitoring and Research Program is provided in Table 4-2. This preliminary plan is indicative only; further information will be provided in the program s detailed Implementation Plan. As this is a Territory-run program (Table 4-2), the detailed Implementation Plan is being developed by the Northern Territory Government. Document no.: X075-AH-STR-0001 Page 11 of 36

16 Table 4-2: Contents Preliminary Implementation Plan Darwin Harbour integrated marine monitoring and research program Description Purpose and objectives Specific objectives being developed by the Territory Government include: improving understanding of Darwin Harbour ecosystems and ecosystem health providing evidence to support sound environmental planning and management improving coordination of monitoring, research and information sharing building local monitoring and research capacity fostering community awareness and stewardship of the Darwin Harbour region to elicit community behavioural change. Scope This offset program will focus on marine, estuarine and freshwater monitoring and research of the Darwin Harbour region. The scope will include: status of wildlife populations condition of habitats and their characteristic communities spatially dominant (matrix) habitats availability, configuration and condition of special habitats. Methodology The methodology being developed by the Territory Government with input from the Interim Management Committee and scientific advisory panel includes steps to: establish a governance framework to manage the marine monitoring and research program undertake a gap analysis that reviews existing monitoring and research programs, gaps, new research needs and funding priorities design a holistic monitoring and research program for the Darwin Harbour region and a framework for integrating current research and monitoring projects develop processes for public engagement, Aboriginal engagement, peer review, evaluation of the monitoring and research program and adaptive management. Consultation process This program will be managed by the Territory Government. This offset program will be completed in collaboration with INPEX, Geoscience Australia, the Australian Institute of Marine Science, Charles Darwin University, the Northern Territory Government, DSEWPaC; the Darwin Harbour Advisory Committee, the Larrakia Development Corporation and other industry contributors. INPEX is a stakeholder in this program, and will be provided with progress reports. Document no.: X075-AH-STR-0001 Page 12 of 36

17 Contents Timing Description Preparatory work and formation of the Interim Management Committee commenced in Implementation of the program is scheduled for 2013, the project will be ongoing. Key Milestone Indicative Dates Provide final detailed Implementation Plan to DSEWPaC 31 Dec Deliverables Reporting requirements will be developed by the Territory Government, and are anticipated to include: Scientific data Reports (at least annually) on the status of the Harbour and its dependent systems. Anticipated to expand upon the existing Report Cards produced by the Aquatic Research branch of the NT Department of Natural Resources, Environment, The Arts and Sport (NRETAS). INPEX shall provide reports to DSEWPaC within 2 weeks of receiving the final version of reports from the Territory Government Conservation status of coastal dolphins in the Northern Territory The intent of this offset program is primarily to estimate the overall population size of coastal dolphin species in the Northern Territory. This program will identify particular locations and habitats, and provide a baseline estimate of coastal dolphin abundance. This is a Territory-run project, and the scope, methodology and schedule will be developed by the Northern Territory Government. The Northern Territory Government will provide details of the program to INPEX and will report on the offset program s progress. INPEX has committed to providing a financial contribution to this program, and has set aside a budget of $0.8 million for the Territory Government to use in developing and implementing this offset program. The timeframe for funding is 2 years or as otherwise negotiated in the Detailed Agreement. Funds will be provided as a cash contribution that will be paid annually in accordance with the Detailed Agreement; details of payment will be finalised when the Detailed Agreement is signed by Northern Territory Government and Company. A preliminary implementation plan for the Conservation Status of Dolphins in the NT is provided in Table 4-3. This preliminary plan is indicative only, and will be further revised by the Northern Territory Government during development of its detailed Implementation Plan. Table 4-3: Contents Purpose and objectives Preliminary Implementation Plan conservation status of dolphins in the Northern Territory Description This program will contribute to long-term accumulation of knowledge of the region s inshore dolphin populations and provides significant supporting information for interpreting the results of the impact assessments. Specific objectives will be developed by the Northern Territory Government, and will include: Determining the size and distribution of regional populations Document no.: X075-AH-STR-0001 Page 13 of 36

18 Contents Description Assessing current and future threats to coastal dolphin populations in the Territory Assessing the conservation status of coastal dolphin populations in the Territory and Enhancing the capacity of local landowners for long term and ongoing monitoring. Scope This offset program will focus on the coastal waters of the Northern Territory. The scope will include: three species of dolphins (Orcaella heinsohni, Sousa chinensis, Tursiops aduncus). Methodology The methodology will be developed by the Northern Territory Government. Consultation process This program will be managed by the Northern Territory Government. INPEX is a stakeholder in this program, and will be provided with progress reports. Timing The schedule is being developed by the Northern Territory Government. Key Milestone Indicative Dates Provide final detailed Implementation Plan to DSEWPaC 31 August 2013 Deliverables Reporting requirements will be developed by the Territory Government, and are anticipated to include: Scientific data Northern Territory Government Reports INPEX shall provide reports to DSEWPaC within 2 weeks of receiving the final version of reports from the Territory Government Habitat mapping for Darwin Harbour region (including Bynoe Harbour) The intent of this offset program is to provide baseline data of the existing marine habitats and characteristics of the Darwin Harbour region. This is a Territory-run offset program, and the Northern Territory Government will develop the scope, methodology and schedule for habitat mapping. INPEX has made a commitment of $2.64 million as a financial contribution to the habitat mapping. This offset program will present the following environmental benefits: It will improve knowledge of the marine habitats in the Darwin Harbour region. It will improve understanding of potential future impacts of Darwin Harbour use. It will contribute to scientific knowledge. It will improve in environmental management of Darwin Harbour. INPEX is committed to funding this offset program, and has set aside a budget of $2.64 million over 4 years to fund this program. The funding will be paid annually in accordance with the Detailed Agreement; details of payment will be finalised when the Detailed Agreement is signed by Northern Territory Government and Company. Document no.: X075-AH-STR-0001 Page 14 of 36

19 A preliminary implementation plan for habitat mapping for Darwin Harbour is provided in Table 4-4. This preliminary plan is indicative only; a detailed implementation plan will be developed by the Northern Territory Government which will provide further detail. Table 4-4: Contents Preliminary implementation plan habitat mapping for Darwin Harbour Description Purpose and objectives This program will improve knowledge of the Darwin Harbour region marine habitats. Specific objectives will be developed by the Northern Territory Government and include to: produce adequate habitat maps of the Darwin Region including Bynoe Harbour provide baseline information. Scope This offset program will focus on Darwin Harbour and Bynoe Harbour. The scope will be developed by the Northern Territory Government. Methodology The methodology will be developed by the Northern Territory Government. The methodology will include broad scale maps produced from remote sensing and production of habitat maps. Consultation process This program will be managed by the Northern Territory Government. INPEX is a stakeholder in this program and will be provided with progress reports. Timing The schedule is being developed by the Northern Territory Government. Key Milestone Indicative Dates Provide final detailed Implementation Plan to DSEWPaC 31 Dec Deliverables Reporting requirements will be developed by the Territory Government, and are anticipated to include: Scientific data Northern Territory Government reports. INPEX shall provide reports to DSEWPaC within 2 weeks of receiving the final version of reports from the Territory Government Conservation management of marine megafauna in the western Top End The intent of this offset program is to provide for Aboriginal co-management of dugong, coastal dolphins and marine turtles in the western Top End, extending from Darwin to the Moyle River. Figure 4-1 provides an overview of the western Top End where it is intended to implement this program. This offset program will be managed by the Northern Territory Government, and provides for Aboriginal groups to actively manage dugong, dolphins and marine turtles through the establishment and development of marine wildlife managers operating from Darwin Belyuen, Channel Point and Wadeye and through the authorisation of wildlife co-management plans. INPEX is a financial contributor to this program and has set aside a budget of $24 million in cash contributions to assist with this program. Document no.: X075-AH-STR-0001 Page 15 of 36

20 This offset program will be designed by the Northern Territory Government to compensate for potential loss and degradation of dugong, dolphin and marine turtle habitat in Darwin Harbour by providing positive conservation measures and protecting values important to the local communities over a large area of the Northern Territory coast. A range of benefits will be provided by this offset program including the following: It will provide positive conservation outcomes for dugong, coastal dolphins and marine turtles. It will improve management of dugong, coastal dolphins and marine turtles through implementation of wildlife co-management plans. It will provide community benefits including development of natural resource management skills, training for Aboriginal wildlife rangers and employment in regions with limited economic activity. INPEX has made a commitment to funding this offset program, and has set aside a budget of $24 million over 22 years to assist the Territory Government with conservation management of marine megafauna in the western Top End. The funds will be paid annually in accordance with the Detailed Agreement; details of payment will be finalised when the Detailed Agreement is signed by Northern Territory Government and Company. A preliminary implementation plan for conservation management of marine megafauna in the western Top End is provided in Table 4-5. This preliminary plan is indicative only, and will be further revised by the Northern Territory Government during development of the detailed Implementation Plan. Document no.: X075-AH-STR-0001 Page 16 of 36

21 Table 4-5: Contents Preliminary Implementation Plan conservation management of marine megafauna in the western Top End Description Purpose and objectives Specific objectives developed by the Northern Territory Government include: improve knowledge of the distribution and relative abundance of dolphins, dugong and turtles in the region and understanding of influences on population status reduce anthropogenic mortality of marine megafauna through active management and monitoring enhance research and management capability in Indigenous ranger groups. Scope This offset program will be focused on the western Top End (Darwin to the Moyle River). The scope will include: three species of dolphins (Orcaella heinsohni, Sousa chinensis, Tursiops aduncus) dugong marine turtles. Methodology The methodology being developed by the NT Government includes steps to: undertake broad-scale surveys of coastal dolphin distribution and habitat preferences consolidate dugong distribution and abundance data, and undertaken new quantitative surveys of dugongs create local management teams at Darwin Belyuen, Channel Point and Wadeye undertake local estimates of cetacean, dugong and marine turtle abundance and finer-scale habitat use develop regional management plans for populations of targeted species select cetacean, sirenian and marine turtle sanctuaries for exclusion or active management of significant threats consolidate regional management plans into formal species management programs. Consultation process This program will be managed by the Northern Territory Government. Stakeholder consultation will be managed by the Northern Territory Government, and will include DSEWPaC, traditional owners and local communities. INPEX is a stakeholder in this program, and will be provided with progress reports. Timing The schedule is being developed by the Northern Territory Government. Key Milestone Indicative Dates Provide final detailed Implementation Plan to DSEWPaC 31 Dec Deliverables Protected areas Reporting requirements will be developed by the Territory Government, and are anticipated to include: Scientific data NRETAS reports Wildlife management plans Document no.: X075-AH-STR-0001 Page 17 of 36

22 Contents Description INPEX shall provide reports to DSEWPaC within 2 weeks of receiving the final version of reports from the Territory Government. Figure 4-1: Northern Territory western Top End Document no.: X075-AH-STR-0001 Page 18 of 36

23 4.2.5 Publication of Kimberley research data The intent of this offset program is to publish the results of the extensive biological and ecological studies undertaken by INPEX in the Browse Basin and along the Western Australian Kimberly coastline. This offset program will be managed by INPEX. The book will be developed by INPEX, in collaboration with the agencies and consultancies who were involved in the surveys during 2007 and 2009, including RPS, the Western Australian Museum, Halfmoon Biosciences, Centre for Whale Research, Aecom Australia and URS. Between 2007 and 2009, INPEX commissioned various studies of the Kimberley region, including: investigations of fauna on the Maret Islands and other islands in the Bonaparte Archipelago flora and vegetation surveys on the Maret Islands, East Montalivet Island, Berthier Island, Albert Island and Lamarck Island marine sediment and water quality surveys around the Maret Islands and offshore waters surveys of intertidal and subtidal communities on the Maret Islands cetacean and other marine megafauna studies in the Browse Basin and around the Maret Islands marine turtle studies in the northwest Kimberley region investigations into the sources of sea noise in the Browse Basin and Maret Islands. Much of this environmental data is considered ground-breaking because very few detailed surveys have been undertaken in these remote areas. By publishing these data, INPEX is making important information available to the scientific community, regulatory authorities and general community and this will provide the following benefits: It will assist in improving knowledge of the biological and ecological values of the Kimberley region. It will contribute to scientific datasets. It will inform environmental assessment of future projects in the Kimberley region. A preliminary implementation plan for Publication of Kimberley Research Data is provided in Table 4-6. This preliminary plan is indicative only, and will be further revised by INPEX during development of the detailed Implementation Plan. Table 4-6: Contents Purpose and Objectives Scope Preliminary Implementation Plan publication of Kimberley research data Description Aim is to publish the results of the extensive biological and ecological studies undertaken by INPEX along the Western Australian Kimberley coastline. This offset program will be focused on data collected from the Western Australian Kimberley coastline including Browse Basin, Bonaparte Archipelago and mainland Kimberley coast. Document no.: X075-AH-STR-0001 Page 19 of 36

24 Contents Description Data collected in the Northern Territory will not be included in this publication. Methodology Consultation Process Funding Arrangement Timing Review and edit the Kimberley region research reports prepared by INPEX and consultants between 2007 and 2009 for inclusion in a book that will be made publicly available. Consultation with agencies and consultants involved in the surveys will be ongoing throughout development of the book. $0.75 million over 12 months. INPEX has set aside budget to fund this program. 12-month project Key milestone Date Status Establish a budget for the publication of Kimberley biological research data Sept Complete Commence engagement with consultative authors Dec Commenced Develop detailed Implementation Plan Jan Commenced Review the suitability of reports for publication. Nov. to Dec Complete Develop a book format to present the reports, including structure and Table of Contents based on the reports chosen for publication. Jan. to March 2012 Commenced INPEX to provide draft detailed Implementation plan to DSEWPaC INPEX to provide final detailed Implementation Plan to DSEWPaC 31 May 2012 To be commenced 2 July 2012 To be commenced Edit reports where required to meet requirements of scientific publications. March Aug to Commenced Peer review of the reports being included in the book July to Sept To be commenced Prepare the book (e.g. write Introduction text, layout of publications, design accompanying figures, formatting) March Sept to To be commenced Undertake an internal review process of the draft book Oct. to Nov To be commenced Finalise book Nov To be commenced Typesetting and printing of book Dec to Feb To be commenced Document no.: X075-AH-STR-0001 Page 20 of 36

25 Contents Description Distribution of book 31 March 2013 To be commenced Deliverables Research papers compiled into a publicly available book Coastal dolphin research INPEX is in negotiations with the Northern Territory Government and DSEWPaC to determine the best use of this funding and to develop a detailed sub-plan for implementation. INPEX has committed to a budget of $2.5 million over 4 years for the coastal dolphin research. A preliminary implementation plan for Coastal Dolphin Research is provided in Table 4-7. This preliminary plan is indicative only, and will be further revised by INPEX during development of the detailed Implementation Plan. Table 4-7: Contents Purpose and objectives Scope Methodology Consultation Process Timing Preliminary Implementation Plan coastal dolphin research Description The purpose is to undertake coastal dolphin research in the Northern Territory. This offset program focuses on coastal dolphins. The methodology will be developed by INPEX, in consultation with the Northern Territory Government and DSEWPaC. This program will be managed by INPEX. 4-year project Key milestone Date Status Establish budget for coastal dolphin research Sept Complete Undertake negotiations with Northern Territory government and DSEWPaC to develop the coastal dolphin research program July to Dec To be commenced Develop detailed Implementation Plan July to Dec To be commenced INPEX to provide draft detailed Implementation plan to DSEWPaC INPEX to provide final detailed Implementation Plan to DSEWPaC 25 Jan 2013 To be commenced 31 May 2013 To be commenced Deliverables Scientific data Document no.: X075-AH-STR-0001 Page 21 of 36

26 Contents Description Reporting requirements will be developed by INPEX, and are anticipated to include: Scientific data Annual reporting INPEX shall provide final reports to DSEWPaC Funding of Australian Research Council Linkage projects The intent of this offset program is to benefit the community and increase knowledge of environmental processes by contributing to national research through the ARC Linkage program, which promotes research partnerships between researchers and other agencies including business, industry and government. INPEX has committed to making significant cash contributions to two ARC Linkage projects, and negotiations commenced in 2011 to find and support appropriate projects. INPEX has entered into an ARC Linkage Collaborative Research Agreement to assist with funding a University of New South Wales (UNSW) project entitled Understanding and predicting sediment distribution and net transport in estuaries and coastal oceans with an emphasis on muddy bottom layers. The partner organisations also involved in this project are the AIMS and the State Key Laboratory of Satellite Ocean Environment Dynamics (SOISOA) of China. This project commenced in March INPEX has made a commitment to this program of $0.015 million over 3 years. Funding for the UNSW project, Understanding and predicting sediment distribution and net transport in estuaries and coastal oceans with an emphasis on muddy bottom layers, will be split into three cash contributions of $ in the first year, $ in the second year and $ in the third year (2011 to 2013). INPEX has identified a second project to fund with Charles Darwin University (CDU) and AIMS that intends to establish a microbial baseline of Darwin Harbour. The CDU has lodged a submission to the Australian Research Council, and INPEX is committed to funding this project if the submission is successful. INPEX will provide funding as a cash contribution, and has made a commitment to provide $0.06 million over 3 years. If this project is successful, funding for the CDU AIMS microbial baseline of Darwin Harbour project will be split into three cash contributions of $20 000, provided annually (2012 to 2014). The general benefits of this offset program include support of Australian researchers, contribution to scientific knowledge and improved environmental management of Darwin Harbour. Each of the two ARC Linkage projects has its own specific environmental offset benefits; the UNSW project will make a major contribution to understanding mud transport and siltation problems in muddy ports and coastal waters while the CDU project will improve knowledge and understanding of microbes (including pathogens) in sediments, water and fish of the Darwin Harbour. Document no.: X075-AH-STR-0001 Page 22 of 36