COAL BED METHANE (CBM): EXPERIENCE WITH THE WATERBERG CBM PROJECT

GCS Water and Environment (Pty) Ltd has been involved as an Independent Environmental Assessment Practitionar since 2000 with the Waterberg Coal Bed Methane (CBM) 1st 5 Spot Project. The project has received approval for the Standard Environmental Management Plan (SEMP) in terms of the Mineral and Petroleum Resources Development Act, 2002 (Act No 28 of 2002), & General Authorisation (GA) Approval in terms of the National Water Act, 1998 (Act No 36 of 1998).

The Waterberg CBM 1st 5 Spot Production Test:

• • Began gas production in June 2004;
  • Ascertained the economic viability of the potential resource;
  • Was initated as a practical method of testing whether gas can be produced
    in economic quantities and for resource modelling;
  • Leaned itself to technology development in terms of engineering, sustainable
    water treatment;
  • Consists of
    • 5 pilot gas production wells,
    • 4 HDPE lined storage ponds; and
    • Reverse Osmosis (RO) water treatment plant.
      • Test period was extended to gain further information for evaluation of the

project feasibility & gas well performance; and

• • • • Has proved minimal environmental impact.

5 Spot Gas Well Design

• • • Cased, cemented & perforated at the production zone only;
    • Precludes water abstraction or drainage from other aquifers elsewhere in the
      geological succession; and
    • Coal seam dewatering should have negligible impact on aquifers higher in the
      stratigraphy, including those accessed by the local community for domestic & livestock water use.

Potable RO product:

• • • Used at Bulklip offices;
    • Piped to calcrete burrow pit; and
    • Used for watering of game, livestock & indigenous bird life.

RO brine:

• • • Stored in ponds;
    • Recirculative solar evaporation system (up to 250% enhancement, 1-10 m3/day);
    • Combustion evaporator (~17 m3/day, sustainable option); and
    • Salts stored in ponds -removal through Roshcon bins.

Annaul Performance Assessment Reviews (PAR) conducted for the Waterberg CBM 5 Spot Test Site since 2004.

ENVIRONMENTAL AUTHORISATIONS

GCS Water and Environment (Pty) Ltd can assist clients with the necessary environmental authorisaitons required for proposed CBM projects. This will typically involve the following (in terms of South African legislation or similar for other countries ):

• • • • • Application for Production Rights in terms of the MPRDA;
        • Application for Listed Activities in terms of the National Environmental Management Act, 1998 (Act No. 107 of 1998);
        • Application for Listed Activities in terms of the National Environemntal Management: Waste Act, 2008 (Act No. 59 of 2008); and
        • Application for water use in terms of the National Water Act, 1998 (Act No. 36 of 1998).

ENVIRONMENTAL SPECIALIST ASESSMENTS

GCS Water and Environment (Pty) Ltd can assist clients with the following specialist assessments as part of the planning/application phases of l CBM projects:

• • • • • Hydrocensus;
        • Water Quality Monitoring;
        • Biodiversity (Fauna & Flora) Assessments;
        • Wetland and Biodiversity Assessments:
        • Soil, Land Use & Land Capability Assessments;
        • Hydrological Assessments (including Water and Salt Balance and Storm Water Management Plans);
        • Geohydrological Assessments (including groundwater modelling);and
        • Social Impact Assessment and Public Consultaiton Process.

WORK CONDUCTED FOR CBM: – GCS PROJECT DATA