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E607 rev. ENVIRONMENTAL MANAGEMENT PLAN (EMP) Stargard Geothermal District Heat Project Stargard, June 2002 Version updated: June 20, 2005 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized

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E607 rev.

ENVIRONMENTAL MANAGEMENT PLAN (EMP) Stargard Geothermal District Heat Project

Stargard, June 2002 Version updated: June 20, 2005

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Table of Content

A. Inroduction 4

B. Potential Environmental Impacts 5

C. Environmental Permits 6

D. Mitigation Plan 7

E. Monitoring Plan 12

F. Schedule 15

G. Institutional Arrangements 16

H. Consultation with Local NGOs and Project-Affected Groups 21

List of Annexes Annex 1 Geothermal Water Analysis 17 Annex 2 Emission Reductions after Completion of the

Geothermal Project 21

Annex 3 Map 22

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List of Abbreviations μg Micrograms (10-6 Gram) °C Degree Celsius CO Carbon Monoxide CO2 Carbon Dioxide dB Decibel DH District Heating EMP Environmental Management Plan GJ Gigajoule (109 Joule) GS Przedsiębiorstwo Usług Ciepłowniczych Geotermia STARGARD Sp. z

o.o. (The Stargard Geothermal Company Ltd.) km Kilometer (103 Meter) m² Square Meter mbar Millibar (10-3 bar) 1 bar = 105 Pascal = 105 Newton per Square Meter mg Milligrams (10-3 Gram) mval/dm3 Milligram Equivalent Weight per liter n.a. not applicable Nm³ Standard cubic meter of gas (0 °C, 1013.25 mbar) NO Nitrogen Monoxide NO2 Nitrogen Dioxide NOx Nitrogen Oxides PCF Prototype Carbon Fund PEC Przedsiębiorstwo Energetyki Cieplnej Sp. z o.o. (The Local District

Heating Company Ltd.) PLN Polish Zloty PM Particulate Matter PM10 Particulate matter, maximum aerodynamic diameter of 10 Micrometer SO2 Sulphur Dioxide TSP Total Suspended Particulates WB The World Bank This is an updated version of the mitigation and monitoring plans agreed with the client in June 2002 and updated in June 2005. Stipulations for the construction period were verified, stipulations for project operations are applied since the project start-up in March 2005.

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A. Introduction The Project development objective is the reduction in the emissions of carbon dioxide through displacement of coal-fired district heat with renewable heat produced from geothermal energy.

The key performance indicators are the amount of geothermal heat produced by the project and the emission reductions that the PCF purchases, which will be verified and certified by independent parties.

Stargard Szczeciński has a well-developed district heating system that supplies more than 60% of the heat demands of the City. The total heat supply is from an efficient coal-fired heat-only-boiler plant with a total installed capacity of about 116 MWt. The annual peak demand for the district heat system is 85 MWt and annual heat demands ex plant are 800 to 850 TJ. Heat demands have been reduced by about 25% in the last seven years due primarily to efficiency improvements on the supply and demand side. During the last few years heat demand has stabilized however.

Heat distribution is through a 49 km network that includes about 362 substations. Both space heating and potable hot water are supplied. Heating of households and industrial consumers, not connected to the district heating system, is supplied by individual boilers and stoves fired primarily by coal. Less than 10 percent of the total heat demand in Stargard is met by gas or oil-fired systems.

The proposed Project provides for a geothermal base-load heating plant with an installed capacity of about 14 MWt. The Project consists of two components: (a) the “underground plant” consisting of a new geothermal doublet (production well and directional re-injection well, drilled to a depth of up to 2700 m) which will be located close to the existing coal fired DH-plant; and (b) the “above-ground plant” and connections, comprising a plant building which houses heat exchangers, electrical equipment and installations, process equipment and controls, as well as internal piping; and the connection to the existing district heating (DH) network of Stargard. A new administrative building is also included in the scope.

Private investors from Poland and Denmark have formed a limited liability company in 1999 to exploit this deposit and to replace a substantial portion of coal-generated heat by clean geothermal energy. The new company, Geotermia Stargard (GS) has concluded a long term agreement between GS and the local DH Company PEC in 2002. This was amended and updated on November 30, 2004 and provides for a sales price for geothermal heat (estimated at 310 TJ/a) of PLN13.98/GJ (2005-terms; equivalent to US$ 4.66/GJ), which is highly competitive. The geothermal heat will displace about 36% of the heat now provided from coal-fired heat only boilers. CO2 emissions will be reduced accordingly. The life of the geothermal well is estimated to be at least 25 years.

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The Environmental Management Plan is based on O.P 4.01 of the World Bank where it is stated as “ An instrument that details (a) the measures to be taken during the implementation and operation of a project to eliminate or off set adverse environmental impacts or to reduce them to acceptable levels; and (b) the actions needed to implement these measures. B. Potential Environmental Impacts The Project will promote the mitigation of greenhouse gas emissions that contribute to global climate change through the generation and sale of high-quality validated ERs. At the national level, the project will contribute to improved air quality by substituting clean energy production from a renewable energy resource for fossil-based heat generation. Local environmental impacts are believed to be minimal. There are some disruptions from project construction although the geothermal well already exists. An impermeable reservoir has been constructed at the drilling site and is being used for gathering geothermal waters during testing of the well. Drilling mud has been handled expertly for re-circulation and according to environmental standards. Noise will be limited as pumps have been incorporated into the geothermal loop or contained in sound-proofed housing. The local environment and local residents of Stargard will benefit from reduced coal use and the reduced emissions of related pollutants. The project is proposed to be environmental assessment category B and safeguards screening category S2. The main risks ex ante for environmental damage and impacts were as follows:

• Risk of damaging soil and road surfaces during construction works; • Risk of intrusion of geothermal water into the surface or deeper layers of the

ground during well drilling; • Risk of contamination of ground water during well drilling; • Risk of damaging impact on the surface of the liquid waste generated by the

process of washing out the cuttings during drilling; • Risk of de-stabilization of geological formations caused by well drilling; • Risk of causing damage to environmentally sensitive areas on the ground;

These risks were minimized through appropriate mitigation measures as per EMP of 2002, prepared in close cooperation between the Geotermia Stargard Staff and a visiting World Bank team, and updated in June 2004. Construction is now complete (except for the surface re-injection pump) and the system has started operations on March 29, 2005. There are several identified environmental impacts during the operation phase:

• Impact on the Ina river of geothermal water discharged from the reservoir; • Potential impact on the ground water of geothermal water stored in the reservoir

as a result of unexpected leakage; • Noise generated in the surface plant around the DH pumps.

These impacts are minimized through agreed measures as follows: • Discharged brines will be diluted with cleaned municipal sewage waters;

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• Ground water contamination to be monitored to allow timely counter measures; • Noise abatement below 70 dB will be sufficient in the industrial area location.

• The updated EMP (June 2005) reflects additional requirements for operations of the plant (discharge permit limits the amount of geothermal brine to no more than 172 m³/d, and obligates GS to dilute brine with cleaned sewage from municipality treatment plan).

C. Environmental Permits • Environmental Impact Assessmnet, August 2001. This was done prior to construction

and prior to the water permit. After issuance of the water permit no new EA or EIA was required.

• Construction permit • Well drilling permits • No permit for air emissions necessary • Noise level check through inspection (noise of the pumps and compressors has been

muffled through appropriate measures as insulation, coverage in buildings, etc. • Water permit (Water decision No. OS.DM.6220-22-4/02 dated 16.10.2002)

The updated EMP (June 2005) reflects additional requirements for operations of the plant. A discharge permit limits the amount of geothermal brine to no more than 172m³/d, and obligates GS to dilute brine with cleaned sewage from municipality treatment plan. The discharge of the plant goes to the municipal treatment plant and is diluted with the waste water at the ratio of 1 part brine and 3.5 parts waste water. No other limits are set. The quantitative limit was set in regards to the low flow of the nearby river.

• Limits on the chloride/total solids content and temperature: The dilution of the settled water with treated waste water is designed to meet the standards of effluents into the river (see page 29 of the EIA). Quantities and mineral content are measured at the time of releasing settled waters, as standards are set (less than 35 ppm of chlorides and sulphites). The temperature is in line with ambient temperature as the waters have settled for a long period of time. The basin is emptied about once or twice per year. In the meantime the water the overflow or effluent from filter cleaning sits in the basin and is diluted by rain water in the first place.

• No critical natural habitats effected by the discharge • The location is a huge industrial side, no residential quarters within 500 m

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A. MITIGATION PLAN

Cost Institutional Responsibility Comments (e.g. secondary

impacts)

Monitored according

to monitoring

item Issue ID

Phase Issue Mitigating Measure

Investment Operation Install Operate

1 Construction • Solid and liquid wastes generated during well drilling are approximately 131 m³ and 960 m3 respectively per kilometre of well depth. The total amount of solid and liquid wastes is 5476 m3.

• The impact on the surface of the liquid waste generated by the process of washing out the cuttings during drilling.

• The drilling contractor deposited of drilling waste in an environmentally safe manner on MPGK (municipality owned entity) dumping ground. Solid and liquid wastes are used to reclaim the ground

• In order to minimize the impact of the liquid waste on the surface, it was collected in reusable steel containers located near the drilling rig. After collection, the liquid waste was used together with the solid waste to reclaim the ground in municipality dumping site and a plot in Kluczewo Suger Producing Company. The steel container when emptied was taken away by the contractor and reused in other drilling projects.

It was included in the contract lump sum and it was the

contractor’s problem how to

properly utilise the wastes and how

much it will cost.

The selected turnkey contractor for well drilling works on

account of state and local regulations

Geological and Mining Law –

Dz.U. 1994.27.96 Water Law – Dz.U.

2001.115.1229

There is one vertical production well with a total depth (length) of 2672 m and one directional injection well with a total depth of app. 2600 m and a length of 3080m. According to the Polish Geological and Mining Law the liquid and solid wastes in question do not have to be detoxed taking into account their chemical composition.

3 6

2 Construction • Risk of contamination of ground water during well drilling (the groundwater suitable for drinking is located in the upper subsurface horizons – mostly, not more than 30 meters deep).

• Carbon steel casings (pipes) grouted into the rock separate the drilling tool and drilling fluids from the subsurface environment; the steel casings of smaller diameter are inserted into casings of large diameter – starting with a 13⅜ - inch casing for the first 410 m under ground and ending with a 9⅝ - inch pipe inserted directly into the geothermal reservoir at a depth of 2672 m. Each new casing is firmly grouted into the previous one, excluding direct contact of the drilling tool or chemicals with the groundwater. The second well (GT2) was drilled in the same maner

It was included in the contract price

and it was the contractor’s task to take suitable precautions to

minimise the risk and the cost itself

– if any.

The selected turnkey contractor

for well drilling

None

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Cost Institutional Responsibility Comments (e.g. secondary

impacts)

Monitored according

to monitoring

item Issue ID

Phase Issue Mitigating Measure

Investment Operation Install Operate

3 Construction • Risk of intrusion of geothermal water onto the surface during drilling.

n.a. n.a. n.a. n.a. n.a. This risk is next to none because the hydrostatic pressure in the geothermal reservoir is not sufficient to create an artesian effect. The geothermal water level is stable at about 20 m below surface.

None

4 Construction • Interruption of traffic during pipeline construction

The time period and the way of road occupation for pipeline construction works was agreed with the local authorities based on the binding regulations in Stargard.

It was included in the contract price.

The selected turnkey contactor

None

5 Construction • Damaging of soil and road surfaces during construction works for pipelines and heating plants. Permanent mechanical soil degradation will affect an approximately 3-meter wide strip of land corresponding to the area excavated for laying the pipelines.

This 3-meter strip, together with the broader area used for construction activities was undergoing reclamation (soil rehabilitation) to bring it as close to the former conditions of use as possible. The pipeline layout mainly followed existing streets, which reduced the risk of land-use changes.

Included in turnkey pipeline construction cost

The selected turnkey contractor

for pipeline construction

The geothermal pipeline between the two wells has a length of 50m. The DH preinsulated pipeline (2 x DN 350) connecting GS and PEC has a length of 200m. The brine discharge pipeline to the Ina river (φ 90 PE) has a length of 3970m.

4 9 10

6 Construction • Damaging or removal of trees caused by pipe laying and construction of buildings

Before start of all construction works a visual survey of the affected area had to be done together with local authorities. Administration decision was taken to remove six trees.

1600 PLN. The selected turnkey contractor

9

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Cost Institutional Responsibility Comments (e.g. secondary

impacts)

Monitored according

to monitoring

item Issue ID

Phase Issue Mitigating Measure

Investment Operation Install Operate

7 Construction • Risk of de-stabilization of geological formations caused by well drilling

• Risk of causing damage to environmentally sensitive areas on the ground

• To minimize this risk, the type of drilling mud was precisely selected to each well interval drilled. This avoided the creation of large caverns, which are responsible for destabilisation of geological formations.

• The drilling rig was placed in such a site where there are no residential buildings within a radius of 60 m (damage effects are thereby minimised in case the drilling rig falls over – stipulation comes from the Mining and Geological Law). The first well was drilled 100% vertically. The second well was situated 11 m from the first one and drilled to a depth of 400 m vertically and then was deviated in the North direction where there are no sensitive areas (unbuilt areas - meadows).

No costs are involved

The selected turnkey contractor

None

8 Construction • Solid waste accumulation (waste not directly related to the drilling process).

The contract requires the contractor to - Store contaminants in tanks and

dispose of them in a MPGK (municipality company) dump in Leczyca

- Disposal of solid waste (trash, debris, organic refuse, scrap construction material, etc.) according to municipal requirements

It was included in the contract price.

The selected turnkey contractor

6

9 Construction • Risk of accidental discharge of waters during production tests of wells.

The risk is rather insignificant due to the fact that the water level in the well is below surface. In the event of any unexpected water leakages from the surface equipment, the submersible pump will immediately be stopped, thus preventing contamination of the surrounding area.

Pump will be stopped

automatically

Comment [VL1]: I have inserted this as my best guess.

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Cost Institutional Responsibility Comments (e.g. secondary

impacts)

Monitored according

to monitoring

item Issue ID

Phase Issue Mitigating Measure

Investment Operation Install Operate

10 Construction and operation

• Risk of discharge of geothermal waters to the river arising from testing of new wells and during the operation time. Geothermal waters have a mineralization of 127 g/l. The content of chlorides and sulphates is 70 g/l.

• A geothermal water storage basin with a capacity of 4000 m3 lined with impermeable geo-membrane is located in the vicinity of the wells. The basin is used to store test geothermal waters, as well as geothermal discharges when cleaning filters.

• The cooled waters will subsequently be discharged to the Ina river..GS was permited by county authority (Water decision No. OS.DM.6220-22-4/02 dated 16.10.2002) to discharge the sewage in the form of salty waste geothermal waters into surface waters during well testing and operational time. It allows to discharge not more than 172 m³/d, and obligates GS to dilute brine with cleaned sewage from municipality treatment plan.

• PLN 200,000.00

The selected

turnkey contractor

GS’s maintenance

staff

The discharge pump discharges the brine with flow rates between min. and max. values of 5 and 20 m3/h respectively, according to the actual river flow. Within these flowrate limits all norms for first class rivers will be fulfilled. The first batch of around 3000 m³ from test time was pumped to the river, second one also from test time was diluted with sewage from municipality treatment plan. The brine will be diluted with cleaned sewage automatically.

12 13 14

11 Construction • Noise and dust from the construction sites

No mitigation measure is needed (see comment)

The selected turnkey contractor

Noise and dust were generated by operation of the drilling rig and welding machines, but did not exceed a limit of 70 dB within a radius of 15 m. The generated noise was not burdensome to the surroundings as the project is implemented in an industrial area.

None

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Cost Institutional Responsibility Comments (e.g. secondary

impacts)

Monitored according

to monitoring

item Issue ID

Phase Issue Mitigating Measure

Investment Operation Install Operate

12 Operation • Risk of intrusion of geothermal water onto the surface during operation as a result of an unexpected leakage from the surface equipment.

• The risk is rather insignificant due to the fact that the water level in the well is below surface. The submersible pump will immediately be stopped, thus preventing contamination of the surrounding area. A leakage Detection System will be used in the preinsulated geothermal pipeline connecting the wells with the surface plant, which will detect a potential failure in advance.

The cost of a Leakage Detection

system (about PLN 100,000) will be covered by GS

from cash generation or environmental

funds.

GS’s maintenance

staff is responsible

for an emergency shut down.

None

13 Operation • Impacts on soil and groundwater aquifers from possible pipeline leakages

• A typical Leakage Detection System will be applied to the DH pipelines laid between GS and PEC. This system is incorporated in the overhaul plant control system, which will automatically close remotely controlled shut-off valves in case any leakages occur.

See above GS None

14 Operation • Risk of exceeding of admissible levels of noise emission during operation

The noise is generated mainly by the DH circulating pumps with a noise level of about 60 dB around the pumps. The generated noise will not be burdensome to the surroundings. As the project is implemented in an industrial area, noise emissions are acceptable below an agreed level of 70 dB

11

15 Operation • Risk of pollution water circulating in district heating system as a result of unexpected leakages in the heat exchanger

Leakage Detection System will be applied to heat exchanger

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Cost

B. MONITORING PLAN Responsibility

Monitoring

Item ID

Phase What parameter is to be monitored?

Unit of the parameter

Averaging period where applicable

Where is the

parameter to be

monitored?

How is the parameter to be monitored/

type of monitoring equipment?

When is the parameter to be monitored-

frequency of measurement or

continuous?

Why Is the parameter to be monitored (optional)?

Investment

Operation Install Operate Related with mitigat

ion issue

1 Baseline

Coal stockpile at the beginning and end of the year plus coal delivery data to monitor and check the total coal consumption of the district heating boilers.

Ton/year

On the basis of “Monitoring Plan” defined in purchase agreement

Once a year To demonstrate the reduction in coal consumption due to introduction of geothermal heat under the project

Included in PEC O&M Costs.

PEC

2 Baseline Pollutants (CO2, CO, SO2, NO2, Dust, Soot, Benzopyrene)

Ton/year One calendar year

n.a. Calculated on the basis of coal consumption and emission coefficients published by the Ministry of Environment

Once a year • To demonstrate the reduction in emissions over time as the old boilers are retired (or used less) due to introduction of geothermal heat under the project.

• Emission data is also required by environmental authorities to calculate environmental fees.

Included in PEC O&M Costs.

GS

3 Construct. Amount of drilling cuttings disposed of

Tons n.a. Entire project area

Capacity and number of lorries

Once during drilling works

n.a. Included in the contract with the drilling company

n.a. ”Naftgaz” Wolomin

n.a. 1

4 Construct. Area of land affected by drilling/construction works

m² n.a. Entire project area

Visual examination

once after works completion

n.a. Included in the contract with the drilling company

n.a. ”Naftgaz” Wolomin

n.a. 5 6

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Cost Responsibility Monitoring

Item ID

Phase What parameter is to be monitored?

Unit of the parameter

Averaging period where applicable

Where is the

parameter to be

monitored?

How is the parameter to be monitored/

type of monitoring equipment?

When is the parameter to be monitored-

frequency of measurement or

continuous?

Why Is the parameter to be monitored (optional)?

Investment

Operation Install Operate Related with mitigat

ion issue

5 Construct. Area of land reclaimed

m² n.a. Entire project area

Visual examination

once after works completion

n.a. Included in the turnkey construction costs

n.a. Turnkey contractors

n.a.

6 Construct. Quantity (by type) and handling of disposed solid and liquid wastes (including wastes arising from well drilling)

Tons /year n.a. Entire project area

Qualification and quantification according to Polish waste management standards on the disposal receipts

Once after works completion

n.a. Included in the contract with the drilling company

n.a. Turnkey contractors

n.a. 1 8

7 Construct. Geothermal water chemical analysis - enclosed

n.a. Sampling time

Well head The amount of each element or compound contained in the geothermal water is determined according to the Polish Standards which precisely describe methods, procedures, the type and quantity of chemical reagents to be used.

When pumping To assess geothermal water mineralization and corrosion properties

Included in the turnkey geological assistance costs

n.a. Turnkey contractors

n.a.

8 Construct. Geothermal water curing properties – enclosed

n.a. Sampling time

Well head The amount of each element or compound contained in the geothermal water is determined according to the Polish Standards which precisely describe methods, procedures and the type and quantity of chemical reagents to be used.

When pumping To assess geothermal water curing properties

Included in the turnkey geological assistance costs

n.a. GS n.a.

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Cost Responsibility Monitoring

Ite

Phase What parameter is to be monitored?

Unit of the parameter

Averaging period where applicable

Where is the

parameter to be

monitored?

How is the parameter to be monitored/

type of monitoring equipment?

When is the parameter to be monitored-

frequency of measurement or

Why Is the parameter to be monitored (optional)?

Investment

Operation Install Operate Related with mitigat

ion issue

m ID

continuous?

9 Construct. Area of land affected by laying pipelines

n.a.

Entire project area

Visual examinationVisual examination

once after works completion

n.a.

Included in the turnkey construction costs

n.a. Turnkey contractors

n.a. 5

10 Construct. Area of land reclaimed which has been affected by laying pipelines

n.a.

Entire project area

Visual examination Visual examination

Once after works completion

n.a. Included in turnkey construction costs

n.a. Turnkey contractors

n.a. 5

11 Operation Noise level generated dB n.a. In the surface plant around the DH pumps

Once during the commissioning of the plant

To commission the plant and obtain an operation permit

n.a. Included in investment GS costs

n.a. SANEPID (Polish Sanitary Inspection Office)

14

12 Operation Chemical analysis of Geothermal water

n.a. n.a. Water from the basin

Before basin discharging

To assess geothermal water impact to river water, and to fulfil the water permission obligation

GS operational cost

GS

13 Operation Chemical analysis of River Ina water.

n.a. n.a. Up and down of discharging place

Every time when basin will be discharged

To confirm that flora and fauna of the river were not damaged, and to fulfil the water permission obligation

GS operational cost

GS

14 Operation Amount of geothermal water

m³ n.a. On the brine discharge line

Electromagnetic flowmeter

Every time when basin will be discharged

To confirm that flora and fauna of the river were not damaged, and to fulfil the water permission obligation

GS operational cost

GS

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C. SCHEDULE

Schedule for environment related activities (updated June 2005)

Quarter1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4th YEAR 2002 2003 2004 2005 Testing and Start-up of Operations Mitigation Activities

Preparation of drilling sites (impermeable liner etc.) Disposal of solid and liquid wastes arising from well drilling and filter cleaning Information to local authorities because of traffic influences of pipeline construction Disposal of soil and water contaminated by solid waste materials Installation of a Leakage Detection System for DH connection to PEC Installation of a Leakage Detection System under the basin

Monitoring Activities Measuring of geothermal water composition Monitoring of ambient air quality in Stargard Szczeciński

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D. INSTITUTIONAL ARRANGEMENTS

The President of GEOTERMIA Stargard Sp. zoo. (GP) is personally responsible for taking care of environmental issues during construction and operation periods. The President of GP has nominated in early 2005 a qualified employee who will be responsible for day-to-day collection of environmental data. The employee is trained in the environmental requirements of the Plant operations in conformity with Polish Environmental Law.

E. CONSULTATION WITH LOCAL NGOs AND PROJECT-AFFECTED GROUPS

Regarding public consultation, representatives of relevant groups of people have been invited to participate in both administration procedures: for “water permission” according to the Polish Water Law, and “construction permission” according to the Polish Construction Law. Especially those local residents potentially affected by the project in any significant way have been invited. There was no interest, however. Therefore a public meeting was not held. Construction is now completed, consultations at this stage of the project are deemed to be unnecessary. For better familiarization of local residents with the project and its major benefits, a meeting will be organized prior to the constuction of the planned “Geothermal Business Development and Dissemination Center”. All representatives of appropriate local groups will be invited personally.

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Annex 1 Geothermal water analysis Location: Stargard Szczeciński Place of Derive: Stargard GT 1 /2428-2670 m/ Date of Derive: 07.01.2002

Type of indicator

Unit Results

1 Lead mg/dm3 0,004 2 Zinc mg/dm3 0,026 3 Copper mg/dm3 ≤0,005 4 Cadmium mg/dm3 <0,001 5 Chrome mg/dm3 0,008 6 Cobalt mg/dm3 ≤0,005 7 Nickel mg/dm3 <0,005 < below the detectable limit ≤ insignificant quantity ION BALANCE

Cations Results Unit 1 Calcium 110,4486 mval/dm3 2 Magnesium 42,2179 mval/dm3 3 Iron 1,4499 mval/dm3 4 Manganese 0,0655 mval/dm3 5 Ammonia 0,9972 mval/dm3 6 Sodium 1 761,7500 mval/dm3 7 Potassium 8,7552 mval/dm3 TOTAL 1 925,6843 mval/dm3

Anions Results Unit 1 Bicarbonates 3,4014 mval/dm3 2 Chlorides 1 917,6000 mval/dm3 3 Sulphates 33,8416 mval/dm3 4 Fluorides 0,0631 mval/dm3 5 Nitrites 0,0009 mval/dm3 6 Nitrates 0,5080 mval/dm3 7 Phosphates 0,0009 mval/dm3 TOTAL 1 955,4159 mval/dm3

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Location: Stargard Szczecinski Date of Derive: 07.01.2002 Place of Derive: Stargard GT 1 /2428 – 2670 m/–before filtration 1 Turbidity 25 (precipitate) MgSiO3 2 Colour 550 MgPb/dm3 3 Odour z2R - 4 pH 6,6 pH 5 Total hardness 153,6 mval/dm3 6 Total hardness 7 679,8 Mg CaCO3/dm3 7 Non carb./carb hardness 150,2/3,4 mval/dm3 8 Calcium hardness 110,7 mval/dm3 9 Magnesium hardness 42,9 mval/dm3 10 Total alkalinity 3,4 mval/dm3 11 Alkalinity 0,0 mval/dm3 12 Alkalinity phenolph. 0,0 mval/dm3 13 Total acidity/miner. 3,8/0,0 mval/dm3 14 Iron 27,00 mg Fe/dm3 15 Manganese 1,80 mg Mn/dm3 16 Calcium 2 213,4 mg Ca/dm3 17 Chlorides 68 000,0 mg Cl/dm3 18 Magnesium 513,6 mg Mg/dm3 19 Fluorides 1,2 mg F/dm3 20 Ammonia 18,0 mg NH4/dm3 21 Nitrites 0,046 mg NO2/dm3 22 Nitrates 30,98 mg NO3/dm3 23 Hydrogen sulphides 0,0 mg S/dm3 24 Sulphates 1 627,9 mg SO4/dm3 25 Phosphates 0,03 mg PO4/dm3 26 Carbon dioxide free 72,6 mg CO2/dm3 27 Oxygen dissolved 1,89 mg O2/dm3 28 Oxygen demand 74,0 mg O2/dm3 29 Total dissolved solids 120 515 mg/dm3 30 Torrefaction residue 119 385 mg/dm3 31 Torrefaction lost 1 130 mg/dm3 32 Electric conductivity 166,4 mS/dm3 33 Carbon dioxide aggressive - mgCO2/dm3 34 Sodium 40 500 mgNa/dm3 35 Potassium 342,0 mgK/dm3 36 Bicarbonates 207,4 mg/dm3 37 Silica 46,0 mgSiO2/dm3 38 Aluminium 0,10 mgAl/dm3 39 Density 1,078 g/cm3 The content of Barium (Ba) is 9,1 mg/dm3 and Strontium (Sr) is 11,4 mg/dm3.

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Location: Stargard Szczeciński Place of Derive: Stargard GT 2 III Date of Derive: 14-21.04.2004 No. Indicator Unit measure Result 1 Colour mg/l 7 2 Turbidity pH 6,03 3 Total hardness (CaCO3) mg/l 9150,0 4 Total alkalinity mmol/l 3,50 5 Alkalinity phenolph. mval/l 0,00 6 Total acidity/miner. mval/l 6,20/0,00 7 Iron (Fe) mg/l 18,50 8 Manganese (Mn) mg/l 1,36 9 Calcium (Ca) mg/l 2605,2 10 Magnesium (Mg) mg/l 643,9 11 Chlorides (Cl) mg/l 69000 12 Fluorides (F) mg/l 1,102 13 Ammonia (NH4) mg/l 18,49 14 Nitrites (NO2) mg/l 0,012 15 Nitrates (NO3) mg/l 41,61 16 Carbon dioxide free (CO2) mg/l 83,6 17 Carbon dioxide aggress.

(CO2) mg/l 0,0

18 Dry solid mg/l 132745 19 Sodium (Na) mg/l 42000 20 Potassium (K) mg/l 250 21 HCO3 mg/l 213,5 No. Indicator Unit measure Result 1 Turbidity NTU 5 2 Odour - Not acceptable 3 Hydrogen sulphides (H2S) - 4 Sulphates (SO4) mg/l 1640 5 Electric transmission MS/cm 173,2 6 Silicon dioxide (SiO2) mg/l 18,0 7 Aluminium (Al) mg/l - 8 Phosphates (PO4) mg/l 0,50 9 Oxygen dissolved (O2) mg/l 1,76 10 Oxygenation (O2) mg/l 21,6 11 Bromides (Br) mg/l 94,1 12 Iodides(J) mg/l 9,6 13 Density G/cm 1,081

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Date of Derive: 20.11.2003 No. Indicator Unit measure Brine from reservoir

1 Reaction pH 6,2 2 Suspension mg/l 20,5 3 Nitrogen mg/l - 4 Chlorides (Cl) 64900 5 Sulphurs mg/l 1972 Date of Derive: 20.11.2003

No. Indicator Unit measure Ina River water before discharging

1 Reaction pH 7,8 2 Sulphurs mg/l 62 3 Chlorides (Cl) mg/l 30,6 Date of Derive: 01.12.2003

No. Indicator Unit measure Brine+sewage

1 Reaction pH 7,4 2 Suspension mg/l 20,5 3 Nitrogen mg/l 11,3 4 Chlorides (Cl) mg/l 14100 5 Sulphurs mg/l 589 Date of Derive: 08.12.2003 No. Indicator Unit measure Ina River water after

discharging

1 Reaction pH 7,7 2 Sulphurs mg/l 63 3 Chlorides (Cl) mg/l 59 Date of Derive: 15.12.2003 No. Indicator Unit measure Ina River water before

discharging

1 Reaction pH 7,6 2 Sulphurs mg/l 67 3 Chlorides (Cl) mg/l 32

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Annex 2 Emission reductions after completion of the geothermal project

Emission of polluting elements from the PEC district heating plant was subject to investigation in the Feasibility Study District Heating Modernisation and Environmental Project city of Stargard Szczeciński financed by PHARE EU and the World Bank (Project number ZZ 96.03, Contract number 96-1031.00). The PEC district heating plant is equipped with seven coal fired boilers (two 29,3 MW and five 11,6 MW) with a total power output of 116,3 MW generating ex plant from 800 to 850 TJ per year. Coal with an average heat value 26,0 MJ/kg and a sulphur content of 0,6 % is combusted at the PEC district heating plant to meet the heat demand of the city of Stargard. The geothermal system is expected to supply PEC Stargard Sp. z o.o. with approx. 310 TJ per year substituting 15.589 tons of coal which will cause the following reductions of the main pollutants:

Stargard District Heat Emissions for 2003

254

112

19

84 70

2

165

73

12

55 45

10

50

100

150

200

250

300

SO2 NO2 CO CO2 Dust Soot

CO

2 10

00 M

T/a;

Oth

ers

Mt/a

Without Geo With Geo

Over the coming years, PEC must be able to meet new emission limits, which will be difficult to achieve with the current PEC flue gas system. However, introduction of the geothermal supply will help to reduce the total emissions sufficiently to meet standards.

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Annex 3 Map

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